Thu, May 15, 8:53 PM (28 days ago)
**Farmers and Merchants Bancshares, Inc. (FMBI, FMFG)** **Q1 2025 Financial Performance** **Revenue & Profit Margins:** - **Total Revenue:** $9.9 million (up 9.0% YoY) - **Net Interest Income:** $5.5 million (up 6.8% YoY) - **Noninterest Income:** $514,000 (up 2.0% YoY) - **Net Income:** $1.2 million (flat YoY) - **Earnings per Share (EPS):** $0.37 (down 5.1% YoY) **Cash Flow:** - **Net Cash Provided by Operating Activities:** $590,000 (up 21.9% YoY) - **Net Cash Used in Investing Activities:** $13.8 million (down 3.2% YoY) - **Net Cash Used in Financing Activities:** $28.8 million (up 411.5% YoY) **Earnings Changes:** - **Provision for Credit Losses:** $30,000 (up from $0 YoY) - **Income Tax Expense:** $316,000 (down 8.7% YoY) **Quarterly Performance Discussion:** - **Loans:** Increased by $17.0 million (2.9%) to $600.0 million, driven by commercial real estate and commercial loans. - **Deposits:** Decreased by $23.2 million (3.1%) to $735.6 million, due to competition and higher interest rates. - **Investment Securities:** Decreased by $1.3 million (0.9%) to $144.9 million. - **Other Real Estate Owned (OREO):** Stable at $1.2 million. - **Noninterest Expense:** Increased by $386,000 (9.4%) to $4.5 million, due to various operational costs. **Trends & Uncertainties:** - **Interest Rate Sensitivity:** Management monitors interest rate changes and their impact on the portfolio. - **Credit Quality:** Watch list loans increased to $12.7 million, but management believes the allowance for credit losses is adequate. - **Liquidity:** Management believes adequate liquidity sources are available to meet needs over the next 12 months. **Future Operations Impact:** - **Loan Growth:** Continued growth expected due to new lending staff and stabilizing interest rates. - **Deposit Competition:** Expected to continue due to higher interest rates. - **Regulatory Environment:** Management monitors changes in regulations and their potential impact on operations. **Capital Standards:** - **Common Equity Tier 1 Risk-Based Capital Ratio:** 11.54% (well above the 6.5% minimum) - **Tier 1 Risk-Based Capital Ratio:** 11.54% (well above the 8.0% minimum) - **Total Risk-Based Capital Ratio:** 12.23% (well above the 10.0% minimum) - **Tier 1 Leverage Ratio:** 9.48% (well above the 5.0% minimum) **Ticker:** FMFG **Market Impact:** FMBI's stable net income and strong capital ratios indicate a solid financial position. However, traders should monitor deposit trends, loan growth, and interest rate changes for potential impacts on future performance. Portfolio managers may consider FMBI for its consistent earnings and strong capital position, but should assess deposit competition and interest rate risks. Finance professionals should note the stable net income and strong capital ratios, but also consider the potential impacts of deposit trends and interest rate changes.