Farmers & Merchants Bancshares, Inc. Files 2023 Annual Report

TL;DR

<b>Farmers & Merchants Bancshares, Inc. reported $4.29 billion in assets and $3.12 million in net income for FY2023.</b>

AI Summary

Farmers & Merchants Bancshares, Inc. (FMFG) filed a Annual Report (10-K) with the SEC on March 11, 2024. Total assets reached $4,285,247,000 for the fiscal year ending December 31, 2023. Net income for the fiscal year ending December 31, 2023, was $3,116,966. Earnings per share (EPS) for the fiscal year ending December 31, 2023, was $0.63. Total debt was $0 for the fiscal year ending December 31, 2023. The company reported $3,071,214 in cash for the fiscal year ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking Farmers & Merchants Bancshares, Inc., this filing contains several important signals. The filing provides a comprehensive overview of the company's financial performance and position for the fiscal year 2023, including detailed financial statements and risk factors. Investors can use this 10-K filing to assess the bank's profitability, asset management, and overall financial health, informing investment decisions.

Risk Assessment

Risk Level: low — Farmers & Merchants Bancshares, Inc. shows low risk based on this filing. The company operates in the highly regulated banking industry, which presents inherent risks related to economic conditions and compliance, as detailed in the risk factors section.

Analyst Insight

Monitor the company's loan portfolio performance and interest rate sensitivity in upcoming filings to assess future profitability.

Financial Highlights

total Assets

4,285,247,000

total Debt

0

net Income

3,116,966

eps

0.63

cash Position

3,071,214

Key Numbers

• 4,285,247,000 — Total Assets (As of December 31, 2023)
• 3,116,966 — Net Income (For the fiscal year ended December 31, 2023)
• 0.63 — Earnings Per Share (For the fiscal year ended December 31, 2023)
• 0 — Total Debt (As of December 31, 2023)
• 3,071,214 — Cash (As of December 31, 2023)

Key Players & Entities

• Farmers & Merchants Bancshares, Inc. (company) — Filer
• MD (location) — State of Incorporation

FAQ

Industry Context

Farmers & Merchants Bancshares, Inc. operates within the savings institutions sector, focusing on traditional banking services.

Regulatory Implications

As a financial institution, the company is subject to extensive regulation by federal and state authorities, impacting its operations and compliance requirements.

What Investors Should Do

1. Analyze the trends in deposit accounts and other financial services over the past three fiscal years.
2. Review the company's capital structure, including common stock and retained earnings, for stability.
3. Examine any disclosed risk factors related to the banking industry and economic conditions.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-03-11: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This 10-K filing covers the fiscal year ending December 31, 2023, providing updated financial data compared to the previous year's filings.

Key Financial Figures

• $21.63 — the right to receive cash in the amount $21.63 (the "Per Share Consideration"). Immedi
• $7.8 million — ayment of the merger consideration with $7.8 million in cash and the proceeds of a $17 milli
• $17 million — 8 million in cash and the proceeds of a $17 million term loan obtained from a third-party.
• $800 million — nsolidated assets totaled approximately $800 million and stockholders' equity was approximat
• $52.2 million — stockholders' equity was approximately $52.2 million. Banking Activities The Bank has bee
• $681 million — y 19,475 deposit accounts, representing $681 million in deposits. At December 31, 2023, the
• $523 million — its. At December 31, 2023, the Bank had $523 million in loans, representing 65% of its total
• $183 million — ty and income. The current portfolio of $183 million represented approximately 24% of the to

Filing Documents

• fmfg20231231_10k.htm (10-K) — 3889KB
• ex_635567.htm (EX-19) — 42KB
• ex_634912.htm (EX-21) — 2KB
• ex_634913.htm (EX-23.1) — 2KB
• ex_634914.htm (EX-31.1) — 14KB
• ex_634915.htm (EX-31.2) — 14KB
• ex_634916.htm (EX-32) — 8KB
• a01.jpg (GRAPHIC) — 6KB
• logo03.jpg (GRAPHIC) — 6KB
• 0001437749-24-007276.txt (&nbsp;) — 18432KB
• fmfg-20231231.xsd (EX-101.SCH) — 112KB
• fmfg-20231231_cal.xml (EX-101.CAL) — 104KB
• fmfg-20231231_def.xml (EX-101.DEF) — 787KB
• fmfg-20231231_lab.xml (EX-101.LAB) — 672KB
• fmfg-20231231_pre.xml (EX-101.PRE) — 841KB
• fmfg20231231_10k_htm.xml (XML) — 4364KB

Business

Business 2 ITEM 1A.

Risk Factors

Risk Factors 11 ITEM 1B. Unresolved Staff Comments 20 ITEM 1C. Cybersecurity 20 ITEM 2.

Properties

Properties 22 ITEM 3.

Legal Proceedings

Legal Proceedings 22 ITEM 4. Mine Safety Disclosures 22 PART II 23 ITEM 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23 ITEM 6. [Reserved] 23 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 45 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 97 ITEM 9A.

Controls and Procedures

Controls and Procedures 97 ITEM 9B. Other Information 99 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 99 PART III 99 ITEM 10. Directors, Executive Officers and Corporate Governance 99 ITEM 11.

Executive Compensation

Executive Compensation 99 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 99 ITEM 14. Principal Accountant Fees and Services 100 PART IV 101 ITEM 15. Exhibits and Financial Statement Schedules 101 ITEM 16. Form 10-K Summary 102

Forward-Looking Statements

Forward-Looking Statements As used in this Annual Report on Form 10-K, the terms the "Company", "we", "us", and "our" refer to Farmers and Merchants Bancshares, Inc. and, unless the context clearly requires otherwise, its consolidated subsidiaries. Some of the statements contained in this annual report may include projections, predictions, expectations or statements as to beliefs or future events or results or refer to other matters that are not historical facts. Such statements constitute forward-looking statements and are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking statements are based on various factors and were derived using numerous assumptions. In some cases, you can identify forward-looking statements by words like "may", "will", "should", "expect", "plan", "anticipate", "intend", "believe", "estimate", "predict", "potential", or "continue" or the negative of those words and other comparable words. You should be aware that those statements reflect only our predictions. If known or unknown risks or uncertainties should materialize, or if underlying assumptions should prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind when reading this annual report and not place undue reliance on these forward-looking statements. Factors or events that could cause our actual results to differ from our forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. The following factors are among those that may cause actual results to differ materially from our forward-looking statements in this annual report: unexpected changes in the housing market, business markets, and/or general economic conditions in our market area, or a slower-than-anticipated economic recovery, which might lead

BUSINESS

BUSINESS General Farmers and Merchants Bancshares, Inc. is a Maryland corporation chartered on August 8, 2016 that is registered with the Board of Governors of the Federal Reserve System (the "Federal Reserve") as a bank holding company under the Bank Holding Company Act of 1956, as amended (the "BHC Act"). At the time it registered as a bank holding company, the Company also elected to become a financial holding company, which allows it to engage in certain activities, and own shares or control of certain entities, that are in addition to those permissible for an entity that is a bank holding company only. Effective November 1, 2016, the Company consummated a bank holding company reorganization involving the Bank pursuant to which the Bank became a wholly-owned subsidiary of the Company and all of the Bank's stockholders became stockholders of the Company. Effective on October 1, 2020, the Company consummated its acquisition of Carroll Bancorp, Inc. ("Carroll") and its wholly-owned subsidiary, Carroll Community Bank through a series of mergers (collectively, the "Merger"). Each share of common stock of Carroll ("Carroll Common Stock") that was outstanding immediately prior to the effective time of the Merger (the "Effective Time") was converted into the right to receive cash in the amount $21.63 (the "Per Share Consideration"). Immediately prior to the Effective Time, there were 1,146,913 outstanding shares of Carroll Common Stock, all of which were converted into the Per Share Consideration. The Company funded the payment of the merger consideration with $7.8 million in cash and the proceeds of a $17 million term loan obtained from a third-party. The Company's primary business activities are serving as the parent company of the Bank and holding a series investment in First Community Bankers Insurance Co., LLC, a Tennessee "series" limited liability company and licensed protected cell captive insurance company ("FCBI"). The Company owns 100% of one series of

View Full Filing

View this 10-K filing on SEC EDGAR