Business
First Farmers and Merchants Corporation Reports Improved Third Quarter Results
First Farmers and Merchants Corporation Reports Improved Third 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 double digit growth in net income for the third quarter of 2022, compared with the prior year’s third quarter.\n\n“First Farmers’ growth in net income for the third quarter benefited from higher net interest income, lower non-interest expense, growth in our net interest margin and continued organic loan growth,” stated Brian K. Williams, Chairman and Chief Executive Officer of First Farmers. “We are on pace to report record net income for 2022 based on our year-to-date performance and our expectations for continued growth in the fourth quarter.\n\n“Our Board of Directors recently approved a 9.5% increase in our cash dividend to $0.23 per share, highlighting our strong financial performance in 2022 and our positive outlook for the future. We believe the increase in our cash dividend and recent increases in our stock repurchases demonstrate our Board’s focus on delivering long-term shareholder value,” continued Williams.\n\nKey highlights of First Farmers’ results for the third quarter of 2022 include:\n\n\nNet income rose 18.0% to $4.8 million in the third quarter of 2022 compared with $4.1 million in the third quarter of 2021. Net income per common share was $1.12 in the third quarter of 2022 compared with $0.94 in the third quarter of 2021. Net income rose 5.8% from $4.5 million, or $1.05 per common share, in the second quarter of 2022;\n\n\nAdjusted net income, which excludes special items, rose 22.1% to a record $4.8 million, or $1.12 per common share, compared with $3.9 million, or $0.91 per common share, for the year-earlier quarter. Third quarter adjusted net income rose 7.9% from $4.5 million, or $1.03 per common share, reported in the second quarter of 2022 (see non-GAAP reconciliation);\n\n\nNet interest income before provision increased 7.3% to $12.5 million from $11.6 million for the year-earlier quarter;\n\n\nNet loans grew 1.1% from the second quarter of 2022 (4.2% annualized) and were up 5.4% from the third quarter of 2021 after excluding SBA Paycheck Protection (“SBA PPP”) loans; and\n\n\nTotal nonperforming assets dropped to $711,000, or 0.04% of total assets.\n\n\nWilliams continued, “First Farmers’ effi...