On October 22, 2026, Farmers and Merchants Bancshares, Inc. issued a press release detailing its financial results for the nine months ended September 30, 2026. The company reported net income of $5.7 million, or $1.76 per common share (basic and diluted), for the nine-month period. This represents an increase from $4.1 million, or $1.28 per share, reported for the same period in 2025.
For the third quarter of 2026, net income was $2.0 million, or $0.62 per share, compared to $1.7 million, or $0.53 per share, in the prior year's third quarter. The company’s annualized return on average assets for the nine months ended September 30, 2026, was 0.88%, compared to 0.65% in 2025. The annualized return on average equity was 11.58% for the nine months, up from 9.24% in the prior year.
Net interest income for the nine months ended September 30, 2026, was $2.9 million higher than in 2025. This increase was driven by a widening net yield on interest-earning assets, which rose to 3.32% from 2.98% in the prior year. The yield on earning assets increased to 5.40%, while the cost of interest-bearing liabilities decreased to 2.58%.
Noninterest income decreased by $46,000 for the nine months ended September 30, 2026, compared to the same period in 2025. This decrease was attributed to the non-recurrence of a fair value hedge gain of $94,000 and a gain on insurance proceeds of $73,000 from the prior year. These were offset by increases in mortgage banking revenue, bank owned life insurance income, and gains on the sale of SBA loans.
Noninterest expense increased by $917,000 for the nine months ended September 30, 2026, primarily due to a $730,000 rise in salaries and benefits resulting from new staffing additions and incentives. The company did not record a provision for credit losses for the nine months ended September 30, 2026, whereas it recorded a $595,000 provision in the prior year.
At September 30, 2026, total assets decreased to $865.4 million from $872.0 million at December 31, 2025. Loans, net of the allowance for credit losses, increased to $655.0 million from $633.1 million. Total borrowings decreased by $4.6 million to $74.4 million, primarily due to the repayment of $5.0 million in Federal Home Loan Bank advances. The book value of the company’s common stock increased to $20.70 per share at September 30, 2026, from $20.02 per share at December 31, 2025.
