Farmers & Merchants Bancshares, Inc. reported a net income of $1.825 million for the first quarter of 2026, a significant increase from $1.165 million in the same period of 2025. This translates to earnings per share of $0.56, up from $0.37 year-over-year. The company's total interest income rose to $11.150 million, a 12.8% increase from $9.886 million in the prior year, primarily driven by higher interest income from loans, which increased by $1.396 million to $9.762 million. Interest expense remained stable at $4.378 million, resulting in a net interest income of $6.772 million, compared to $5.495 million in the previous year.
In terms of asset management, total assets decreased by $9.0 million, or 1.0%, to $862.9 million as of March 31, 2026, down from $871.9 million at the end of 2025. This decline was largely attributed to a $6.3 million decrease in available-for-sale securities and a $4.8 million reduction in loans. Total liabilities also fell by $10.5 million, or 1.3%, primarily due to a $9.2 million decrease in total deposits, which included a significant reduction in brokered CDs. Conversely, stockholders' equity increased by $1.4 million to $66.1 million, bolstered by the net income generated during the quarter.
Operationally, the company saw a slight decrease in its loan portfolio, which totaled $633.6 million at the end of March 2026, down from $638.3 million at the end of 2025. The allowance for credit losses on loans increased to $4.458 million, reflecting a proactive approach to managing credit risk. The company reported no nonaccrual loans, indicating a stable credit quality within its portfolio. Additionally, the company maintained a watch list of loans totaling $39.3 million, slightly down from $39.8 million at the end of 2025, suggesting ongoing vigilance in monitoring potential credit risks.
Looking ahead, Farmers & Merchants Bancshares, Inc. remains focused on maintaining its capital adequacy and liquidity. The company is categorized as "well capitalized" under regulatory standards, with capital ratios exceeding the minimum requirements. Management anticipates that the current economic environment will continue to influence its operations, particularly in terms of interest rates and loan demand. The company is committed to strategic growth while managing risks associated with its lending practices and investment portfolio.
About Farmers & Merchants Bancshares, Inc.
Farmers and Merchants Bancshares, Inc. is a Maryland-based bank holding company operating Farmers and Merchants Bank, a community bank serving Maryland since 1919. It offers retail and commercial banking services, including loans, deposits, mortgage lending, and treasury services. The company also owns a captive insurance subsidiary to manage risk and enhance operational efficiency, focusing on regional markets with a competitive, relationship-driven business model.
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