Business
First Farmers and Merchants Corporation Reports Improved First Quarter Results
First Farmers and Merchants Corporation Reports Improved First Quarter Results.
About this update from First Farmers & Merchants Corp.
[{"type":"text","content":"\nFirst Farmers and Merchants Corporation (OTC Pink: FFMH), the holding company for First Farmers and Merchants Bank, today announced high-single-digit growth in net income and double-digit growth in adjusted net income for the first quarter of 2023 compared with 2022.\n\n\nKey highlights of First Farmers’ results for the first quarter of 2023 include:\n\n\n\nNet income rose 9.0% to $4.0 million from $3.7 million for the year-earlier quarter. Net income per common share increased 10.6% to $0.94 from $0.85 in the first quarter of 2022. Net income decreased 20.2% from $5.0 million, or $1.17, per common share, reported in the fourth quarter of 2022;\n\n\n\nAdjusted net income, which excludes special items, rose 14.9% to $4.4 million, or $1.03 per common share, compared with $3.9 million, or $0.89 per common share, for the year earlier quarter. First quarter adjusted income declined 12.4% from $5 million, or $1.17 per common share, reported in the fourth quarter of 2022 (see “Non-GAAP Financial Measures” section);\n\n\n\nNet interest income increased 9.8% to $12.2 million from $11.1 million from the year-earlier quarter but was down 3.9% from $12.7 million for the fourth quarter of 2022;\n\n\n\nNet loans grew by $7 million, or 2.8% annualized, for the quarter to $964 million;\n\n\n\nUninsured deposits not covered by FDIC insurance were $229 million, or 12.9% of total deposits;\n\n\n\nBook value per share increased 13.9% to $25.72 from $22.59 for the fourth quarter of 2022; and\n\n\n\nThe Company adopted the current expected credit losses (“CECL”) methodology during the first quarter of 2023 and did not record any allowance for credit losses during the quarter compared to provision credit for loan and lease losses of $320,000 for the year earlier quarter.\n\n\n\nCommenting on the results, Brian K. Williams, Chairman and Chief Executive Officer of First Farmers, said, “Our first quarter 2023 performance represents a solid start with year-over-year growth in earnings, loan growth in line with expectations, stability in deposit levels, and continued strength in our capital position. We reported positive momentum in our book value per share for the second consecutive quarter with the growth rate reaching 30.6% since the third quarter of 2022. The key driver in the improved book value per share is the r...