Farmers & Merchants Bancshares Q2 Net Income Rises 58% to $1.9M on Wider Margins
FMFG sits 48% above its 52-week low of $12.51 on elevated volume (4.0× avg).
Summary
Farmers & Merchants Bancshares reported Q2 2026 net income of $1.9 million, up 58% from a year ago, driven by a wider net interest margin and no loan-loss provisions. Six-month earnings reached $3.7 million, and book value per share rose to $20.72.
Key Events · Earnings and Guidance · FMFG
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Q2 Net Income Up 58%
Net income reached $1.9 million, or $0.58 per share, compared to $1.2 million, or $0.38 per share, in Q2 2025. Six-month net income was $3.7 million, or $1.14 per share, versus $2.4 million, or $0.74 per share, in the first half of 2025.
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Net Interest Margin Expansion
Net interest income rose $2.1 million for the six months as the net yield on interest-earning assets widened to 3.27% from 2.92% a year earlier, driven by higher asset yields and a lower cost of interest-bearing liabilities.
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Zero Credit Provisions
The company recorded no provision for credit losses in the first half of 2026, compared to a $268,000 provision in the same period of 2025, reflecting stable asset quality with nonperforming assets at just 0.19% of total assets.
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Book Value Growth
Book value per share increased to $20.72 at June 30, 2026, up from $20.02 at year-end 2025, despite a $12.9 million unrealized loss on the available-for-sale securities portfolio.
Analysis · FMFG · Finance
Second-quarter earnings jumped 58% year-over-year as net interest margin expanded and credit costs remained at zero. The bank grew loans and deposits while repaying higher-cost borrowings, pushing book value per share to $20.72. The results extend a strong first-half trend and suggest the community bank is gaining earnings momentum in a favorable rate environment.
At the time of this filing, FMFG was trading at $18.50 on OTC in the Finance sector, with a market capitalization of approximately $59.9M. The 52-week trading range was $12.51 to $26.00. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.