First Farmers and Merchants Corporation (OTC: FFMH), the holding company for First Farmers and Merchants Bank, today announced strong financial results for the second quarter of 2025. Net income rose 22.0% to $4.6 million, or $1.15 per share, while book value per share surged 27.2% year-over-year to $39.02.
Brian K. Williams, Chairman and CEO, attributed this success to the dedication of the company’s workforce, saying the results reflect the team’s commitment to both customers and community. He emphasized that despite a complex national outlook, Middle Tennessee remains a growth market, where the bank’s disciplined approach enables it to selectively support high-quality lending opportunities.
Key metrics included a 19.3% increase in net interest income to $13.1 million, and an expanded net interest margin of 3.14%, marking six consecutive quarters of growth. Provision for credit losses fell to zero, while average core deposits rose 3.5% year-over-year.
Williams highlighted strategic investments in talent as a priority, noting the recruitment of experienced leaders in business banking and wealth management. He added that enhancements in the mortgage division are expected to deliver gains in the second half of 2025.
Jill A. Giles, CFO, credited the improvement in net interest margin to a shift toward lower-cost funding sources and proactive repricing of assets. She noted that increased operating expenses were a deliberate investment in employee incentives and benefit modernization to attract and retain top-tier talent.
Key Quote
“I am incredibly proud of our team for delivering another strong quarter, with net income increasing 22.0% and book value per share surging 27.2% from the prior year,” stated Brian K. Williams, Chairman and Chief Executive Officer of First Farmers. “This performance is a direct result of the dedication of our entire banking team, who are deeply committed to our customers and our community.”
