Farmers and Merchants Bancshares, Inc. Reports Earnings of $1.2 Million, or $0.37 per Share, for the Three Months Ended March 31, 2025
Rhea-AI Summary
Farmers and Merchants Bank reported Q1 2025 net income of $1.2 million, or $0.37 per share, maintaining stable earnings compared to Q1 2024. The bank's net interest income increased by $321,000 to $5.5 million, driven by higher yields on earning assets and loan growth.
Key performance metrics include:
- Return on average equity: 8.22% (down from 9.40%)
- Return on average assets: 0.57% (down from 0.61%)
- Average loans increased by $59.1 million to $593.7 million
- Total assets reached $817.6 million
The bank's loan portfolio shows strong performance with only four non-accrual loans totaling $2.6 million. The new Towson Commercial Banking Office, opened in June 2024, has generated $29 million in new commercial loans and $8 million in deposits. Despite unrealized losses in the investment portfolio, the bank maintains strong liquidity with access to approximately $337.8 million.
Positive
- Net interest income increased by $321,000 to $5.5M in Q1 2025
- Loan portfolio grew by $17.1M to $600M in Q1 2025
- Strong loan quality with only 4 non-accrual loans totaling $2.6M
- New Towson office generated $29M in commercial loans and $8M in deposits since June 2024
- Yield on earning assets improved by 35 basis points to 5.03%
- Strong liquidity position with access to $337.8M
Negative
- Net income per share decreased to $0.37 from $0.39 YoY
- Return on equity declined to 8.22% from 9.40% YoY
- Return on assets decreased to 0.57% from 0.61% YoY
- Higher cost of funds at 2.70% vs 2.48% YoY
- Noninterest expenses increased by $386,000 YoY
- Total deposits decreased by $23.2M from December 2024
AI-generated analysis. How Rhea-AI works. Not financial advice.
HAMPSTEAD, Md., April 29, 2025 (GLOBE NEWSWIRE) -- Farmers and Merchants Bancshares, Inc. (the “Company”), the parent company of Farmers and Merchants Bank (the “Bank” and, together with the Company, “we”, “us” and “our”), announced that net income for the quarter ended March 31, 2025 was
Net interest income was
A provision for credit losses of
Noninterest income increased slightly to
Noninterest expense was
Income taxes decreased by
Total assets were
The book value of the Company’s common stock increased to
Our Federal Home Loan Bank facility, other borrowing lines available, unpledged securities, brokered deposit access, and cash and cash equivalents provided us with access to approximately
Gary A. Harris, President and CEO, commented “Our loan growth remains strong with a
About the Company
The Company is a financial holding company and the parent company of the Bank. The Bank was chartered in Maryland in 1919 and has over 100 years of service to the community. The Bank serves the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30, Route 795, Route 140, Route 26, and Route 45 corridors. The main office is located in Upperco, Maryland, with seven additional Maryland branches in Owings Mills, Hampstead, Greenmount, Reisterstown, Westminster, Eldersburg, and Towson. Certain broker-dealers make a market in the common stock of Farmers and Merchants Bancshares, Inc., and trades are reported through the OTC Markets Group’s Pink Market under the symbol “FMFG”.
Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “will,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Farmers and Merchants Bancshares, Inc. with the Securities and Exchange Commission entitled “Risk Factors”.
| Farmers and Merchants Bancshares, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) | |||||||
| Dollars in thousands except per share and share data | |||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 21,779 | $ | 63,962 | |||
| Federal funds sold and other interest-bearing deposits | 918 | 697 | |||||
| Cash and cash equivalents | 22,697 | 64,659 | |||||
| Certificates of deposit in other banks | 100 | 100 | |||||
| Securities available for sale, at fair value | 123,780 | 125,713 | |||||
| Securities held to maturity, at amortized cost less allowance for credit | |||||||
| losses of | 21,135 | 20,499 | |||||
| Equity security, at fair value | 530 | 518 | |||||
| Restricted stock, at cost | 715 | 921 | |||||
| Mortgage loans held for sale | 240 | 157 | |||||
| Loans, less allowance for credit losses of | 600,048 | 582,993 | |||||
| Premises and equipment, net | 7,316 | 7,349 | |||||
| Accrued interest receivable | 2,376 | 2,439 | |||||
| Deferred income taxes, net | 7,246 | 7,606 | |||||
| Other real estate owned, net | 1,176 | 1,176 | |||||
| Bank owned life insurance | 15,429 | 15,324 | |||||
| Goodwill and other intangibles, net | 7,024 | 7,026 | |||||
| Other assets | 7,746 | 8,163 | |||||
| Total assets | $ | 817,558 | $ | 844,643 | |||
| Liabilities and Stockholders' Equity | |||||||
| Deposits | |||||||
| Noninterest-bearing | $ | 104,379 | $ | 107,197 | |||
| Interest-bearing | 631,219 | 651,609 | |||||
| Total deposits | 735,598 | 758,806 | |||||
| Securities sold under repurchase agreements | 5,482 | 5,564 | |||||
| Federal Home Loan Bank of Atlanta advances | - | 5,000 | |||||
| Long-term debt, net of issuance costs | 10,858 | 11,329 | |||||
| Accrued interest payable | 766 | 1,003 | |||||
| Other liabilities | 6,306 | 6,669 | |||||
| Total liabilities | 759,010 | 788,371 | |||||
| Stockholders' equity | |||||||
| Common stock, par value $.01 per share, | |||||||
| authorized 5,000,000 shares; issued and outstanding | |||||||
| 3,175,347 shares in 2025 and 3,166,653 shares in 2024 | 32 | 32 | |||||
| Additional paid-in capital | 31,294 | 31,136 | |||||
| Retained earnings | 42,777 | 41,613 | |||||
| Accumulated other comprehensive loss | (15,555 | ) | (16,509 | ) | |||
| Total stockholders' equity | 58,548 | 56,272 | |||||
| Total liabilities and stockholders' equity | $ | 817,558 | $ | 844,643 | |||
| Farmers and Merchants Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) | ||||||
| Dollars in thousands except per share data | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| Interest income | ||||||
| Loans, including fees | $ | 8,366 | $ | 6,882 | ||
| Investment securities - taxable | 1,051 | 1,579 | ||||
| Investment securities - tax exempt | 156 | 137 | ||||
| Federal funds sold and other interest earning assets | 313 | 468 | ||||
| Total interest income | 9,886 | 9,066 | ||||
| Interest expense | ||||||
| Deposits | 4,249 | 3,101 | ||||
| Securities sold under repurchase agreements | 17 | 23 | ||||
| Federal Home Loan Bank advances | 12 | 13 | ||||
| Federal Reserve Bank advances | - | 622 | ||||
| Long-term debt | 113 | 134 | ||||
| Total interest expense | 4,391 | 3,893 | ||||
| Net interest income | 5,495 | 5,174 | ||||
| Provision for credit losses | 30 | - | ||||
| Net interest income after provision for credit losses | 5,465 | 5,174 | ||||
| Noninterest income | ||||||
| Service charges on deposit accounts | 165 | 195 | ||||
| Mortgage banking income | 29 | 5 | ||||
| Bank owned life insurance income | 105 | 90 | ||||
| Fair value adjustment of equity security | 9 | (4 | ) | |||
| Gain on sale of investment securities | 94 | - | ||||
| Gain on insurance proceeds, net | - | 143 | ||||
| Other fees and commissions | 112 | 75 | ||||
| Total noninterest income | 514 | 504 | ||||
| Noninterest expense | ||||||
| Salaries | 2,207 | 1,976 | ||||
| Employee benefits | 382 | 606 | ||||
| Occupancy | 328 | 246 | ||||
| Furniture and equipment | 335 | 242 | ||||
| Professional services | 173 | 205 | ||||
| Automated teller machine and debit card expenses | 168 | 135 | ||||
| Federal Deposit Insurance Corporation premiums | 199 | 98 | ||||
| Postage, delivery, and armored carrier | 78 | 82 | ||||
| Advertising | 56 | 48 | ||||
| Other real estate owned expense | 5 | 3 | ||||
| Other | 567 | 471 | ||||
| Total noninterest expense | 4,498 | 4,112 | ||||
| Income before income taxes | 1,481 | 1,566 | ||||
| Income taxes | 316 | 346 | ||||
| Net income | $ | 1,165 | $ | 1,220 | ||
| Earnings per common share - basic | $ | 0.37 | $ | 0.39 | ||
| Earnings per common share - diluted | $ | 0.37 | $ | 0.39 | ||
| Farmers and Merchants Bancshares, Inc. | |||||||||||
| Selected Consolidated Financial Data | |||||||||||
| (Unaudited) | |||||||||||
| Dollars in thousands except per share data | |||||||||||
| As of or For the Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | 2023 | |||||||||
| OPERATING DATA | |||||||||||
| Interest income | $ | 9,886 | $ | 9,066 | $ | 7,051.53 | |||||
| Interest expense | 4,391 | 3,892 | 1,395 | ||||||||
| Net interest income | 5,495 | 5,174 | 5,657 | ||||||||
| Provision for credit losses | 30 | - | (270 | ) | |||||||
| Net interest income after provision for credit losses | 5,465 | 5,174 | 5,927 | ||||||||
| Noninterest income | 514 | 504 | 382 | ||||||||
| Noninterest expense | 4,498 | 4,112 | 3,757 | ||||||||
| Income before income taxes | 1,481 | 1,566 | 2,552 | ||||||||
| Income taxes | 316 | 346 | 651 | ||||||||
| Net income | $ | 1,165 | $ | 1,220 | $ | 1,901 | |||||
| PER SHARE DATA | |||||||||||
| Net income (Basic and diluted) | $ | 0.37 | $ | 0.39 | $ | 0.62 | |||||
| Dividends | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||
| Book value | $ | 18.44 | $ | 17.03 | $ | 16.53 | |||||
| KEY RATIOS | |||||||||||
| Return on average assets | 0.57 | % | 0.61 | % | 1.05 | % | |||||
| Return on average equity | 8.22 | % | 9.40 | % | 15.49 | % | |||||
| Efficiency ratio | 75.23 | % | 72.42 | % | 59.55 | % | |||||
| Dividend payout ratio | 0.00 | % | 0.00 | % | 0.00 | % | |||||
| Net yield on interest-earning assets | 2.81 | % | 2.69 | % | 3.24 | % | |||||
| Tier 1 capital leverage ratio | 9.48 | % | 9.39 | % | 9.97 | % | |||||
| Farmers and Merchants Bancshares, Inc. | |||||||||||
| Selected Consolidated Financial Data | |||||||||||
| (Unaudited) | |||||||||||
| Dollars in thousands except per share data | |||||||||||
| As of or For the Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | 2023 | |||||||||
| AT PERIOD END | |||||||||||
| Total assets | $ | 817,558 | $ | 794,593 | $ | 722,679 | |||||
| Gross loans | 604,352 | 541,398 | 525,485 | ||||||||
| Cash and cash equivalents | 22,697 | 25,633 | 9,566 | ||||||||
| Securities | 145,569 | 182,325 | 146,300 | ||||||||
| Deposits | 735,598 | 655,978 | 637,309 | ||||||||
| Borrowings | 10,858 | 71,742 | 24,625 | ||||||||
| Stockholders' equity | 58,548 | 53,077 | 50,757 | ||||||||
| SELECTED AVERAGE BALANCES | |||||||||||
| Total assets | $ | 816,760 | $ | 799,841 | $ | 723,106 | |||||
| Gross loans | 593,653 | 534,566 | 525,516 | ||||||||
| Cash and cash equivalents | 26,648 | 37,224 | 8,719 | ||||||||
| Securities | 169,215 | 208,134 | 169,873 | ||||||||
| Deposits | 634,274 | 550,010 | 501,185 | ||||||||
| Borrowings | 4,946 | 69,551 | 36,124 | ||||||||
| Stockholders' equity | 54,127 | 51,928 | 49,071 | ||||||||
| ASSET QUALITY | |||||||||||
| Nonperforming assets | $ | 3,789 | $ | 1,898 | $ | 1,898 | |||||
| Nonperforming assets/total assets | 0.46 | % | 0.24 | % | 0.26 | % | |||||
| Allowance for credit losses/total loans | 0.71 | % | 0.80 | % | 0.87 | % | |||||
| Contact: | Mr. Gary A. Harris President and Chief Executive Officer (410) 374-1510, ext. 1104 |
