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First Farmers and Merchants Bank (OTCMKTS:FFMH) Stock In Focus After Recent Development

Pete Matthews , , , ,

Holding company for First Farmers and Merchants Bank (OTCMKTS:FFMH), First Farmers and Merchants Corporation on October 24, 2022, announced double-digit growth in net income for quarter three of the year as compared to the previous year’s quarter three.

Trading Data

On Monday, FFMH stock ended flat at $27 with more than 800 shares, compared to its average volume of 631 shares. The stock moved within a range of $27.00 – 27.00 after opening trading at $27.08.

First Farmers and Merchants Corporation Reports Improved Third Quarter Results

Brian K. Williams, Chairman and Chief Executive Officer of First Farmers said that the company’s growth in net income for quarter three benefited from the lower non-interest expense, higher net interest income, growth in net interest margin as well as continued organic loan growth. Williams added that the firm is on track for reporting record net income for the year based on the year-to-date performance as well as expectations for continued growth in quarter four.

The CEO also said that the Board of Directors had approved the increase of 9.5% in the cash dividend to $0.23 per share. This demonstrates the robust financial performance in the year as well as the positive outlook for the future. Williams opined that the increase in cash dividends as well as higher stock repurchases show the Board’s focus on delivering long-term shareholder value.

As per the CEO, First Farmers’ efficiency ratio improved in quarter three demonstrating growth in revenue as well as discipline in the cost structure. The company expects the new platform on improving service to customers well as create further opportunities for deposit production and future loan.

Robert E. Krimmel, Chief Financial Officer said that the majority of year-to-date 2022 earnings were generated by the bank’s core operations and shows growth in the loan portfolio.

Traders Corner

FFMH stock is trading below the 20-Day and 50-Day Moving averages of $29 and $28 respectively. Moreover, the stock is trading below the 200-Day moving average of $33.

Pete Matthews

Pete attended the University of Colorado and still calls the centennial state home. He chases trout in the summer and snowboards in the winter. He is fascinated with the markets and has a strong interest in nanocap stocks and crypto currency.