Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

FOR FURTHER INFORMATION CONTACT:

April 23, 2019

 
   

Farmers and Merchants Bancshares, Inc.

Contact:     Mr. James R. Bosley, Jr.

4510 Lower Beckleysville Rd, Suite H

President

Hampstead, Maryland  21074

410-374-1510, ext. 104

 

 

FARMERS AND MERCHANTS BANCSHARES, INC. REPORTS 2019 FIRST QUARTER EARNINGS OF $0.65 PER SHARE

 

HAMPSTEAD, MARYLAND (April 23, 2019) – Farmers and Merchants Bancshares, Inc. (the “Company”), the parent of Farmers and Merchants Bank (the “Bank”), announced that net income for the three months ended March 31, 2019 was $1,096,287, or $0.65 per share, compared to $1,122,118, or $0.67 per share, for the same period in 2018, a decrease of $25,831 or 2%.

 

Net interest income for the three months ended March 31, 2019 was $4,168 higher than the same period last year due to a $13 million increase in average interest-earning assets, offset by a decline in the taxable equivalent net yield on interest earning assets to 3.73%, from 3.87% for the first quarter of 2018. The provision for loan losses decreased by $37,000 to $13,000 for the three months ended March 31, 2019 when compared to $50,000 recorded for the same period last year. Noninterest income increased by $52,116, primarily as a result of the gain on the sale of SBA loans. Noninterest expense increased by $125,996 in the first quarter of 2019 when compared to the same period last year due to usual salary increases and related employee benefit costs, higher occupancy costs, and higher other costs which are primarily professional fees. Income taxes were $6,881 lower for the quarter ended March 31, 2019 when compared to the same quarter in 2018.

 

The Company’s return on average equity during the first quarter of 2019 was 9.49%, compared to 10.58% during the first quarter of 2018. The Company’s return on average assets was 1.05% in 2019, compared to 1.11% during the same period last year.

 

Total assets at March 31, 2019 were $428 million, an increase of $11 million from the $417 million recorded at December 31, 2018. The loan portfolio decreased by $6 million to $335 million at March 31, 2019 from $341 million at December 31, 2018. Deposits increased by $10 million to $365 million at March 31, 2019 from $355 million at the end of 2018. The book value of the common stock of the Company was $27.75 per share at March 31, 2019, compared to $26.97 per share at the end of 2018.

 

James R. Bosley, Jr., President and CEO, commented “We are pleased to start 2019 with strong earnings despite continuing pressure on our interest margin. During 2019, please join us as will celebrate the Bank’s 100th year. We’d like to thank our founders, directors, employees and especially our customers and the communities we serve for helping us reach this milestone.”

 

 

 

 

About the Company

 

Farmers and Merchants Bancshares, Inc. is a financial holding company and the parent of Farmers and Merchants Bank. Farmers and Merchants Bank was chartered in Maryland in 1919, and is currently celebrating 100 years of service to the community. The Bank serves the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30 and Route 795 corridors from Owings Mills, Maryland to the Pennsylvania State line. The main office is located in Upperco, Maryland, with seven additional branches in Owings Mills, Hampstead, Greenmount, Reisterstown, and Westminster. Certain broker-dealers make a market in the common stock of Farmers and Merchants Bancshares, Inc., and trades are reported through NASDAQ’s Over-The-Counter Bulletin Board under the symbol “FMFG.OB.

 

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

 

   

March 31,

   

December 31,

 
   

2019

   

2018

 
   

(Unaudited)

         

Assets

 
                 

Cash and due from banks

  $ 20,088,893     $ 11,480,608  

Federal funds sold and other interest-bearing deposits

    6,724,288       3,137,629  

Cash and cash equivalents

    26,813,181       14,618,237  

Certificate of deposit in other bank

    100,000       100,000  

Securities available for sale

    30,601,771       26,591,991  

Securities held to maturity

    18,065,993       18,127,067  

Equity security at fair value

    514,717       503,827  

Federal Home Loan Bank stock, at cost

    503,700       575,800  

Mortgage loans held for sale

    417,465       573,638  

Loans, less allowance for loan losses of $2,529,209 and $2,501,955

    335,142,379       340,900,635  

Premises and equipment

    5,032,002       5,075,310  

Accrued interest receivable

    1,014,800       990,529  

Deferred income taxes

    1,100,714       1,179,454  

Other real estate owned

    210,150       210,150  

Bank owned life insurance

    7,093,740       7,053,354  

Other assets

    1,873,120       657,885  
    $ 428,483,732     $ 417,157,877  
                 

Liabilities and Stockholders' Equity

 
                 

Deposits

               

Noninterest-bearing

  $ 60,431,904     $ 62,717,520  

Interest-bearing

    304,755,581       291,995,483  

Total deposits

    365,187,485       354,713,003  

Securities sold under repurchase agreements

    9,132,795       11,012,000  

Federal Home Loan Bank of Atlanta advances

    3,000,000       3,000,000  

Accrued interest payable

    350,206       311,489  

Other liabilities

    4,114,849       2,726,678  
      381,785,335       371,763,170  

Stockholders' equity

               

Common stock, par value $.01 per share, authorized 5,000,000 shares; issued and outstanding 1,682,997 shares in 2018 and 2017

    16,830       16,830  

Additional paid-in capital

    27,324,794       27,324,794  

Retained earnings

    19,626,222       18,621,382  

Accumulated other comprehensive loss

    (269,449 )     (568,299 )
      46,698,397       45,394,707  
    $ 428,483,732     $ 417,157,877  

 

 

 

 

Farmers and Merchants Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

 

Three Months Ended March 31,

 

2019

   

2018

 
                 

Interest income

               

Loans, including fees

  $ 4,160,086     $ 3,933,155  

Investment securities - taxable

    152,317       154,860  

Investment securities - tax exempt

    160,607       142,763  

Federal funds sold and other interest earning assets

    74,526       26,968  

Total interest income

    4,547,536       4,257,746  
                 

Interest expense

               

Deposits

    775,531       438,410  

Securities sold under repurchase agreements

    25,299       34,389  

Federal Home Loan Bank advances and other borrowings

    20,553       62,962  

Total interest expense

    821,383       535,761  

Net interest income

    3,726,153       3,721,985  
                 

Provision for loan losses

    13,000       50,000  
                 

Net interest income after provision for loan losses

    3,713,153       3,671,985  
                 

Noninterest income

               

Service charges on deposit accounts

    152,060       161,840  

Mortgage banking income

    32,719       54,193  

Bank owned life insurance income

    40,386       39,905  

Unrealized gain(loss) on equity security

    7,845       (11,429 )

Gain on sale of SBA loans

    130,015       60,508  

Other fees and commissions

    29,371       35,263  

Total noninterest income

    392,396       340,280  
                 

Noninterest expense

               

Salaries

    1,326,783       1,283,510  

Employee benefits

    381,964       367,454  

Occupancy

    214,420       177,533  

Furniture and equipment

    155,147       161,616  

Other

    676,972       639,177  

Total noninterest expense

    2,755,286       2,629,290  
                 

Income before income taxes

    1,350,263       1,382,975  

Income taxes

    253,976       260,857  

Net income

  $ 1,096,287     $ 1,122,118  
                 

Earnings per share - basic and diluted

  $ 0.65     $ 0.67  

 

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