Farmers and Merchants Bancshares, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016
January 23, 2017
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Farmers and Merchants Bancshares, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net interest income of $3,623,306 compared to $3,415,687 a year ago. Income before income taxes was $1,456,261 compared to $1,634,015 a year ago. Net income was $1,409,836 or $0.85 per basic and diluted share compared to $1,081,074 or $0.66 per basic and diluted share a year ago. The increase of $328,762 was due to a $207,619 increase in net interest income and a $506,516 decrease in income taxes, offset by a $117,631 decrease in noninterest income, and an increase of $252,742 in noninterest expenses.
For the year, the company reported net interest income of $14,005,377 compared to $13,515,755 a year ago. The increase in net interest income was due to an increase in average interest earning assets of $27 million, offset by a decline in the net yield of 20 basis points. Income before income taxes was $5,935,949 compared to $6,798,427 a year ago. Net income was $4,302,864 or $2.60 per basic and diluted share compared to $4,268,222 or $2.61 per basic and diluted share a year ago. The increase of $34,642 over 2015 was due to an increase in net interest income of $489,622 and a decrease in income taxes of $897,120, offset by a decrease in noninterest income of $521,063 and an increase in noninterest expense of $831,037. Return on average equity was 11.29% in 2016 compared to 12.26% in 2015. Return on average assets was 1.19% in 2016 compared to 1.29% in 2015.
Farmers and Merchants Bank is a Maryland commercial bank engaged in a general commercial and retail banking business. The Bank provides a range of personal banking services designed to meet the needs of local consumers. Its deposit services include checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts. The Bank also offers repurchase agreements and remote check deposits. The Bank grants available credit for residential mortgages, construction loans, home equity lines, personal installment loans and other consumer financing. It is also engaged in financing commerce and industry by providing credit and deposit services for small to medium sized businesses and the agricultural community in the Bankâs market area. Its main office is located in Upperco, Maryland, and it has six additional full-service branches located in the Maryland communities of Hampstead, Greenmount, Reisterstown, Owings Mills, Eldersburg, and Westminster.