Farmers and Merchants Bancshares, Inc. Reports Earnings of $1.8 Million, or $0.56 per Share, for the Three Months Ended March 31, 2026
Rhea-AI Summary
Farmers and Merchants Bancshares (OTC: FMFG) reported net income of $1.8 million for Q1 2026, or $0.56 per share, a 57% increase versus Q1 2025. Net interest income rose 23% to $6.772 million, driven by higher yields and larger average earning assets. Return on average equity reached 11.03%. Asset quality showed zero non-accrual loans at March 31, 2026. Book value per share increased to $20.43, which includes an unrealized AFS investment loss of $13.2 million net of tax. Deposits and securities AFS balances declined modestly versus year-end 2025.
Positive
- Net income +57% to $1.825M in Q1 2026
- Net interest income +23% to $6.772M
- EPS $0.56 (basic and diluted) for Q1 2026
- Return on average equity 11.03% (up 281 bps vs 8.22%)
- Book value per share increased to $20.43 (from $18.44)
Negative
- Noninterest income down 16.1% to $431K
- Unrealized AFS investment loss $13.2M reduced equity, net of tax
- Effective tax rate rose to 25.8% from 21.3%
News Market Reaction – FMFG
In the Apr 24 session, FMFG gained 4.49%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HAMPSTEAD, Md., April 24, 2026 (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, 2026 was
Net interest income was
There was no provision for credit losses for the quarter ended March 31, 2026 versus a
Noninterest income decreased to
Noninterest expense was
Income taxes increased by
Total assets were
Deposits decreased by
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, “After coming off of a strong 2025, we are pleased to have carried that momentum into the first quarter of 2026. Year over year, our first quarter earnings increased
About the Company
The Company is the financial holding company for Farmers and Merchants Bank, a Maryland-chartered community bank headquartered in Hampstead, Maryland. Founded in 1919, the Bank has served the deposit, lending, and financial needs of consumers and businesses across Carroll and Baltimore Counties for more than a century. The Bank operates eight locations along Route 30, 795, 140, 26, and 45 corridors, including offices in Hampstead, Upperco, Owings Mills, Reisterstown, Westminster, Eldersburg, Greenmount, and Towson. Certain broker-dealers make a market in the common stock of Farmers and Merchants Bancshares, Inc., and trades are reported through the OTCID Basic Market under the symbol “FMFG”. For more information, visit fmb1919.bank.
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 data | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 * | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 48,162 | $ | 46,113 | ||||
| Federal funds sold and other interest-bearing deposits | 571 | 566 | ||||||
| Cash and cash equivalents | 48,733 | 46,679 | ||||||
| Certificates of deposit in other banks | 100 | 100 | ||||||
| Securities available for sale, at fair value | 112,456 | 118,730 | ||||||
| Securities held to maturity, at amortized cost less allowance for credit | ||||||||
| losses of | 21,227 | 21,055 | ||||||
| Equity security, at fair value | 551 | 550 | ||||||
| Restricted stock, at cost | 3,713 | 3,693 | ||||||
| Mortgage loans held for sale | 344 | 714 | ||||||
| Loans, less allowance for credit losses of | 628,298 | 633,144 | ||||||
| Premises and equipment, net | 7,042 | 7,141 | ||||||
| Accrued interest receivable | 2,467 | 2,535 | ||||||
| Deferred income taxes, net | 6,510 | 6,277 | ||||||
| Other real estate owned, net | 1,673 | 1,673 | ||||||
| Bank owned life insurance | 15,453 | 15,353 | ||||||
| Goodwill and other intangibles, net | 7,016 | 7,018 | ||||||
| Other assets | 7,811 | 7,296 | ||||||
| Total Assets | $ | 863,394 | $ | 871,958 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Deposits | ||||||||
| Noninterest-bearing | $ | 122,965 | $ | 117,098 | ||||
| Interest-bearing | 588,331 | 603,361 | ||||||
| Total deposits | 711,296 | 720,459 | ||||||
| Securities sold under repurchase agreements | 3,452 | 4,317 | ||||||
| Federal Home Loan Bank of Atlanta advances | 62,700 | 62,700 | ||||||
| Long-term debt, net of issuance costs | 12,048 | 12,036 | ||||||
| Accrued interest payable | 762 | 1,278 | ||||||
| Other liabilities | 7,035 | 6,508 | ||||||
| Total liabilities | 797,293 | 807,298 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, par value $.01 per share, | ||||||||
| authorized 5,000,000 shares; issued and outstanding | ||||||||
| 3,235,707 shares in 2026 and 3,229,795 shares in 2025 | 32 | 32 | ||||||
| Additional paid-in capital | 32,253 | 32,148 | ||||||
| Retained earnings | 47,035 | 45,210 | ||||||
| Accumulated other comprehensive loss | (13,219 | ) | (12,730 | ) | ||||
| Total Stockholders’ equity | 66,101 | 64,660 | ||||||
| Total liabilities and stockholders’ equity | $ | 863,394 | $ | 871,958 | ||||
| * Derived from audited consolidated financial statements | ||||||||
| Farmers and Merchants Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) Amounts in thousands except per share data | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Interest income | ||||||||
| Loans, including fees | $ | 9,762 | $ | 8,366 | ||||
| Investment securities – taxable | 845 | 1,051 | ||||||
| Investment securities – tax exempt | 141 | 156 | ||||||
| Federal funds sold and other interest earning assets | 402 | 313 | ||||||
| Total interest income | 11,150 | 9,886 | ||||||
| Interest expense | ||||||||
| Deposits | 3,505 | 4,249 | ||||||
| Securities sold under repurchase agreements | 16 | 17 | ||||||
| Federal Home Loan Bank advances | 599 | 12 | ||||||
| Long-term debt | 258 | 113 | ||||||
| Total interest expense | 4,378 | 4,391 | ||||||
| Net interest income | 6,772 | 5,495 | ||||||
| Provision for credit losses | – | 30 | ||||||
| Net interest income after provision for credit losses | 6,772 | 5,465 | ||||||
| Noninterest income | ||||||||
| Service charges on deposit accounts | 157 | 165 | ||||||
| Mortgage banking income | 58 | 29 | ||||||
| Bank owned life insurance income | 100 | 105 | ||||||
| Fair value adjustment of equity security | (3 | ) | 9 | |||||
| Gain on settlement of fair value hedge | – | 94 | ||||||
| Other fees and commissions | 119 | 112 | ||||||
| Total noninterest income | 431 | 514 | ||||||
| Noninterest expense | ||||||||
| Salaries | 2,077 | 2,207 | ||||||
| Employee benefits | 694 | 382 | ||||||
| Occupancy | 345 | 328 | ||||||
| Furniture and equipment | 465 | 335 | ||||||
| Professional services | 143 | 173 | ||||||
| Automated teller machine and debit card expenses | 169 | 168 | ||||||
| Federal Deposit Insurance Corporation premiums | 101 | 199 | ||||||
| Postage, delivery, and armored carrier | 66 | 78 | ||||||
| Advertising | 57 | 56 | ||||||
| Other real estate owned expense | 44 | 5 | ||||||
| Other | 581 | 567 | ||||||
| Total noninterest expense | 4,742 | 4,498 | ||||||
| Income before income taxes | 2,461 | 1,481 | ||||||
| Income taxes | 636 | 316 | ||||||
| Net income | $ | 1,825 | $ | 1,165 | ||||
| Earnings per common share – basic | $ | 0.56 | $ | 0.37 | ||||
| Earnings per common share – diluted | $ | 0.56 | $ | 0.37 | ||||
| Farmers and Merchants Bancshares, Inc. and Subsidiaries Selected Consolidated Financial Data (Unaudited) Amounts in thousands except per share data | ||||||||||||
| As of or For the Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| OPERATING DATA | ||||||||||||
| Interest income | $ | 11,150 | $ | 9,886 | $ | 9,066 | ||||||
| Interest expense | 4,378 | 4,391 | 3,892 | |||||||||
| Net interest income | 6,772 | 5,495 | 5,174 | |||||||||
| Provision for credit losses | – | 30 | – | |||||||||
| Net interest income after provision for credit losses | 6,772 | 5,465 | 5,174 | |||||||||
| Noninterest income | 431 | 514 | 504 | |||||||||
| Noninterest expense | 4,742 | 4,498 | 4,112 | |||||||||
| Income before income taxes | 2,461 | 1,481 | 1,566 | |||||||||
| Income taxes | 636 | 316 | 346 | |||||||||
| Net income | $ | 1,825 | $ | 1,165 | $ | 1,220 | ||||||
| PER SHARE DATA | ||||||||||||
| Net income (Basic and diluted) | ||||||||||||
| Dividends | ||||||||||||
| Book value | ||||||||||||
| KEY RATIOS | ||||||||||||
| Return on average assets | 0.84 | % | 0.57 | % | 0.61 | % | ||||||
| Return on average equity | 11.03 | % | 8.22 | % | 9.40 | % | ||||||
| Efficiency ratio | 65.83 | % | 75.23 | % | 72.42 | % | ||||||
| Dividend payout ratio | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
| Net yield on interest-earning assets | 3.28 | % | 2.81 | % | 2.69 | % | ||||||
| Tier 1 capital leverage ratio | 9.73 | % | 9.48 | % | 9.39 | % | ||||||
| Farmers and Merchants Bancshares, Inc. | ||||||||||||
| Selected Consolidated Financial Data | ||||||||||||
| (Unaudited) | ||||||||||||
| Amounts in thousands except per share data | ||||||||||||
| As of or For the Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| AT PERIOD END | ||||||||||||
| Total assets | $ | 863,394 | $ | 817,558 | $ | 794,593 | ||||||
| Gross loans | 632,756 | 604,352 | 541,398 | |||||||||
| Cash and cash equivalents | 48,733 | 22,697 | 25,633 | |||||||||
| Debt Securities | 133,683 | 145,569 | 182,325 | |||||||||
| Deposits | 711,296 | 735,598 | 655,978 | |||||||||
| Borrowings | 74,748 | 10,858 | 71,742 | |||||||||
| Stockholders’ equity | 66,101 | 58,548 | 53,077 | |||||||||
| SELECTED AVERAGE BALANCES | ||||||||||||
| Total assets | $ | 867,193 | $ | 816,760 | $ | 799,841 | ||||||
| Gross loans | 637,922 | 593,653 | 534,566 | |||||||||
| Cash and cash equivalents | 44,808 | 26,648 | 37,224 | |||||||||
| Debt Securities | 154,616 | 169,215 | 208,134 | |||||||||
| Deposits | 697,518 | 634,274 | 550,010 | |||||||||
| Borrowings | 74,740 | 4,946 | 69,551 | |||||||||
| Stockholders’ equity | 66,193 | 54,127 | 51,928 | |||||||||
| ASSET QUALITY | ||||||||||||
| Nonperforming assets | $ | 1,673 | $ | 3,789 | $ | 1,898 | ||||||
| Nonperforming assets/total assets | 0.19 | % | 0.46 | % | 0.24 | % | ||||||
| Allowance for credit losses/total loans | 0.70 | % | 0.71 | % | 0.80 | % | ||||||
Contact: Mr. Gary A. Harris
President and Chief Executive Officer
(410) 374-1510, ext. 1104
