First Farmers and Merchants Corporation Reports Third Quarter Net Income Up 12.7% to $5.5 Million
Key Highlights
- ➤Net income increased 12.7% to $5.5 million year-over-year
- ➤Loans increased $62.8 million, representing 24.4% annualized growth
- ➤Net interest income increased 14.9% to a record $15.7 million
- ➤Net interest margin expanded to 3.71%, its eleventh consecutive quarterly increase
- ➤Quarterly dividend increased 10.3% to $0.32 per share
Expert Statements
Brian K. Williams, Chairman and Chief Executive Officer of First Farmers and Merchants Corporation
“What stood out in our third quarter was the sheer execution and dedication of our banking teams across Tennessee”
Brian K. Williams, Chairman and Chief Executive Officer of First Farmers and Merchants Corporation
“We’ve talked over the past couple of quarters about the depth of our commercial and business banking pipelines but seeing our lenders convert that into more than $62 million in net loan growth, while competing in one of the most competitive banking environments in the country, is a tremendous credit to their hard work.”
Brian K. Williams, Chairman and Chief Executive Officer of First Farmers and Merchants Corporation
“What makes me most proud of this performance is our team didn’t compromise pricing or credit discipline to get there.”
Brian K. Williams, Chairman and Chief Executive Officer of First Farmers and Merchants Corporation
“Quality volume, paired with steady earning-asset yields, fueled our eleventh consecutive quarter of margin expansion and generated record net interest income.”
Brian K. Williams, Chairman and Chief Executive Officer of First Farmers and Merchants Corporation
“As we look ahead to the fourth quarter, our loan pipelines remain supportive across Middle and East Tennessee, though we are naturally managing the balance sheet with typical year-end seasonal payoffs in mind.”
Brian K. Williams, Chairman and Chief Executive Officer of First Farmers and Merchants Corporation
“At the same time, our leadership team and Board of Directors are deeply engaged in planning the next phase of our long-term strategy for 2027 and beyond.”
Brian K. Williams, Chairman and Chief Executive Officer of First Farmers and Merchants Corporation
“The momentum we generated this quarter demonstrates what is possible when you build on a fortress balance sheet, stick to your relationship principles, and empower a remarkably strong team of bankers to execute.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“Our earnings momentum is a direct result of our deliberate focus on balance sheet optimization.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“Over the past year, we have intentionally shifted our earning-asset composition by strategically deploying liquidity and investment cash flows into higher-yielding relationship loans.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“This disciplined approach drove our eleventh consecutive quarter of net interest margin expansion to 3.71%.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“On the funding side, our core non-interest-bearing deposits remain exceptionally stable, representing approximately 30% of total deposits.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“This core stability gave us the capacity to easily absorb the seasonal, forecasted municipal drawdowns that typically occur in the third quarter.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“Rather than trying to predict where interest rates might head, we manage the bank through continuous scenario testing, which keeps our balance sheet resilient and ready for any environment.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“We are also seeing outstanding execution across our fee-based business lines, highlighted by a record quarter in our wealth management and trust division.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“Our trust team continues to win new relationships and expand existing ones, driven heavily by their intentional focus on multigenerational wealth transfer strategies.”
Jill A. Giles, Chief Financial Officer of First Farmers and Merchants Corporation
“We are leveraging this strong core earnings power to invest in the bank’s future, whether that is expanding our commercial presence in markets like Chattanooga, continuing to add top-tier production talent, or undertaking significant, customer-facing enhancements to our digital banking platforms.”
First Farmers and Merchants Corporation Reports Third Quarter Net Income Up 12.7% to $5.5 Million
First Farmers and Merchants Corporation (OTCID: FFMH), the holding company for First Farmers and Merchants Bank, today announced its results for the third quarter of 2026, reflecting continued growth and profitability, including robust 24.4% annualized loan growth, a 12.7% increase in net income, and an eleventh consecutive quarter of net interest margin expansion.
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