First Farmers and Merchants Corporation Reports First Quarter Net Income up 22.4% to $5.5 Million

Apr 27 2026 12:00 BST

Net Interest Margin grows to 3.54%

COLUMBIA, Tenn.--(BUSINESS WIRE)--Apr. 27, 2026-- First Farmers and Merchants Corporation (OTCID: FFMH), the holding company for First Farmers and Merchants Bank, today announced its results for the first quarter of 2026, delivering a historic performance marked by record organic earnings and the ninth consecutive quarter of net interest margin expansion.

“First Farmers has entered 2026 with distinct momentum,” stated Brian K. Williams, Chairman and Chief Executive Officer. “$5.5 million in net income represents the highest level of organic operating earnings in our 117-year history. While our previous all-time quarterly record in 2019 was supported by a significant one-time real estate gain, today’s results are driven entirely by the strength of our core banking operations.”

Key highlights of First Farmers’ results for the first quarter of 2026 include:

Net income increased 22.4% to $5.5 million from $4.5 million for the year-earlier quarter. Net income per common share increased 24.3% to $1.38 from $1.11 in the first quarter of 2025. Net income increased 16.4% from $4.7 million, or $1.18, per common share, reported in the fourth quarter of 2025;
Adjusted net income, which excludes special items, increased 31.3% to $5.5 million, or $1.39 per common share, compared with $4.2 million, or $1.04 per common share, for the year-earlier quarter. First quarter adjusted net income increased 17.3% from $4.7 million, or $1.18 per common share, reported in the fourth quarter of 2025 (see “Non-GAAP Financial Measures” section);
Wealth management and trust services achieved a record quarterly revenue level of $1.3 million, up 8.5% from the first quarter of 2025;
Total loans increased $7.0 million from the fourth quarter of 2025, representing a 2.8% annualized growth rate for the period, and increased $9.5 million, or 0.9%, compared to the first quarter of 2025;
Net interest income increased 16.9% to $14.8 million from $12.6 million for the first quarter of 2025 and was up 3.7% from $14.2 million for the fourth quarter of 2025;
Provision for credit losses expense decreased to $60,000 from $325,000 for the first quarter of 2025 and was up from no provision for credit losses for the fourth quarter of 2025;
Net interest margin expanded for the ninth consecutive quarter to 3.54%, representing a 52-basis point increase year-over-year and a 17-basis point increase from the fourth quarter of 2025;
Average core deposits grew $27.9 million, or 2.1%, year-over-year; and
Book value per share increased 19.0% to $43.85 from $36.85 in the first quarter of 2025 and increased 1.6% from $43.17 for the fourth quarter of 2025.

“We are encouraged by the early traction of our growth initiatives,” Williams continued. “During the quarter, we officially established our Chattanooga loan and deposit production office and strengthened our mortgage banking leadership. While macro-economic uncertainty continues to influence the broader lending environment, the health of our regional economy was supportive of modest loan growth to start the year, and we remain optimistic given the level of our current loan pipeline.”

“Our performance this quarter reflects the continued benefit of our funding advantage and disciplined balance sheet management,” said Jill A. Giles, Chief Financial Officer. “A meaningful reduction in interest expense drove our ninth consecutive quarter of net interest margin expansion. At 3.54%, our margin reached its highest level since mid-2019, representing a 17-basis point increase over the sequential fourth quarter of 2025. We also saw an improved start to the year in our non-interest income sources, highlighted by record quarterly revenue for our wealth management and trust business and building momentum in our mortgage banking activities.”

“Our strong earnings power is supporting improved operational efficiency across the franchise,” Giles added. “The improvement in our efficiency ratio to 61.64%, more than 500 basis points better than the prior-year quarter, underscores the scalability of our model as we invest in infrastructure and talent. Combined with more than $6.8 billion in administered trust assets, our diversified income streams are providing the stable foundation required to execute our long-term growth strategy.”

First Quarter 2026 Results of Operations

	For the three months ended
($ in thousands, except per share data)	3/31/2026			12/31/2025			3/31/2025			1Q26 vs. 4Q25					1Q26 vs. 1Q25
										Change			% Change		Change			% Change
Interest income	$	17,569		$	17,569		$	16,311		$	-		0.0	%	$	1,258		7.7	%
Interest expense		2,799			3,325			3,679			(526	)	(15.8	%)		(880	)	(23.9	%)
Net interest income	$	14,770		$	14,244		$	12,632		$	526		3.7	%	$	2,138		16.9	%

Net interest income, FTE	$	14,916		$	14,382		$	12,935		$	534		3.7	%	$	1,981		15.3	%
Net interest margin		3.54	%		3.37	%		3.02	%	+17 bps					+52 bps

Provision for credit losses	$	60		$	-		$	325		$	60		NM		$	(265	)	NM

Total non-interest income	$	3,297		$	3,473		$	3,481		$	(176	)	(5.1	%)	$	(184	)	(5.3	%)

Total non-interest expense	$	11,251		$	11,975		$	10,440		$	(724	)	(6.0	%)	$	811		7.8	%

Net income for common shareholders	$	5,462		$	4,693		$	4,461		$	769		16.4	%	$	1,001		22.4	%
Weighted average shares outstanding - basic		3,972,154			3,976,190			4,034,047			(4,036	)	(0.1	%)		(61,893	)	(1.5	%)
Weighted average shares outstanding – diluted		3,978,224			3,983,535			4,042,108			(5,311	)	(0.1	%)		(63,884	)	(1.6	%)
Basic earnings per share	$	1.38		$	1.18		$	1.11		$	0.20		16.9	%	$	0.27		24.3	%
Diluted earnings per share	$	1.37		$	1.18		$	1.10		$	0.19		16.1	%	$	0.27		24.5	%

Adjusted net income⁽¹⁾	$	5,482		$	4,675		$	4,174		$	807		17.3	%	$	1,308		31.3	%
Adjusted basic earnings per share⁽¹⁾	$	1.39		$	1.18		$	1.04		$	0.21		17.8	%	$	0.35		33.7	%
Adjusted diluted earnings per share⁽¹⁾	$	1.38		$	1.18		$	1.03		$	0.20		16.9	%	$	0.35		34.0	%
⁽¹⁾ See Non-GAAP Financial Measures
NM -Not meaningful

Net income for the first quarter of 2026 increased by $1.0 million, or 22.4%, compared to the year-earlier quarter. The higher net income was primarily due to growth in net interest income and a decrease in provision expense for credit losses offset in part by an increase in total non-interest expense. Growth in net interest income for the first quarter of 2026 was attributable to the reduction in interest expense for deposits reflecting continued repricing of higher-cost deposits and disciplined funding management. The Company’s net interest margin expanded for the ninth consecutive quarter. The 52‑basis‑point year‑over‑year increase in net interest margin was attributable to higher‑yielding loans and investment securities, along with continued easing in deposit cost pressures. Total non-interest expense increased $811,000, or 7.8%, compared to the first quarter of 2025 primarily due to an increase in salaries and employee benefits expense of $586,000, as well as software support and other technology expenses of $117,000. Non-interest income declined $184,000 primarily driven by a one-time gain on redemption of bank-owned life insurance recognized in the year-earlier period. Excluding this one-time item, adjusted non-interest income increased by $130,000 due to higher wealth management and trust service fee income of $99,000 for the first quarter of 2026.

Net income for the first quarter of 2026 increased $769,000, or 16.4%, compared to the sequential fourth quarter. The improvement in earnings was due to an increase in net interest income and a decrease in total non-interest expense, offset in part by a decrease in non-interest income. Net interest income increased compared to the sequential quarter as the net interest margin expanded by 17 basis points. Non-interest expense decreased as salaries and employee benefits declined by $864,000, mostly related to the normalization of performance-based employee incentives and benefits compared to the sequential fourth quarter of 2025. The Company recorded $60,000 in provision for credit losses expense in the first quarter of 2026 due to an increase in unfunded loan commitment balances. No provision expense was recorded in the prior quarter.

Balance Sheet Trends

	For the three months ended
($ in thousands)	3/31/2026		12/31/2025		3/31/2025		1Q26 vs. 4Q25				1Q26 vs. 1Q25
							Change		% Change		Change			% Change
Total assets	$	1,796,452	$	1,787,973	$	1,777,078	$	8,479	0.5	%	$	19,374		1.1	%
Total liabilities		1,622,725		1,616,350		1,628,736		6,375	0.4	%		(6,011	)	(0.4	%)
Total shareholders' equity		173,727		171,623		148,342		2,104	1.2	%		25,385		17.1	%
Securities		603,287		582,267		609,098		21,020	3.6	%		(5,811	)	(1.0	%)
Loans, net of deferred fees		1,012,674		1,005,688		1,003,200		6,986	0.7	%		9,474		0.9	%

Deposits		1,601,309		1,593,259		1,605,898		8,050	0.5	%		(4,589	)	(0.3	%)
Borrowings		-		-		-		-	0.0	%		-		0.0	%

For the first quarter of 2026, investment securities increased by $21.0 million from the sequential fourth quarter to $603 million, or 33.6% of total assets, but decreased $5.8 million from $609.1 million, or 34.3% of total assets, from the first quarter of 2025. Outstanding loan balances grew $7.0 million, representing a 2.8% annualized growth rate, from the sequential fourth quarter to $1.013 billion and increased by $9.5 million, or 0.9%, from the first quarter of 2025. Loan growth was modest in the first quarter of 2026 as macro-economic uncertainty continues to have an impact on borrower sentiment, though the Company is seeing early productivity and traction from its new business banking and Chattanooga regional expansion initiatives.

Total deposits increased $8.1 million, or 0.5%, from the sequential fourth quarter to $1.601 billion, but decreased $4.6 million, or 0.3%, from the first quarter of 2025. The increase in deposits compared to the sequential quarter was related to core deposit growth of $30.7 million, offset in part by a decline in municipal deposits of $8.1 million and in surge deposits of $8.0 million. The decrease in total deposits compared to the first quarter of 2025 was driven by a decrease in brokered deposits of $38.0 million and surge deposits of $6.4 million, offset in part by increases of $27.9 million in core deposits, $5.4 million in other commercial deposits, and $4.0 million in municipal deposits.

The Company had no outstanding borrowings as of March 31, 2026, December 31, 2025, and March 31, 2025, respectively. The stability of the Company’s core deposits reduced its dependency on non-core funding in the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025.

For the first quarter of 2026, total shareholders’ equity increased by $2.1 million from the sequential fourth quarter to $173.7 million and grew $25.4 million from the first quarter of 2025. The increase in total shareholders’ equity from the fourth quarter of 2025 was primarily driven by net income of $5.5 million offset in part by dividends paid of $1.1 million, stock repurchases of $712,000, and a decline of $1.5 million in accumulated other comprehensive income. The decrease in accumulated other comprehensive income resulted from an increase in the unrealized loss adjustment to the available-for-sale securities portfolio that totaled $2.0 million, net of tax. The available‑for‑sale securities portfolio declined in value during the quarter, primarily because of higher market interest rates relative to the sequential fourth quarter. The book value per share improved 1.6% from the sequential fourth quarter to $43.85 and increased 19.0% compared to the first quarter of 2025, reflecting the tangible shareholder value created by the bank’s disciplined balance sheet strategy.

Asset Quality

	For the three months ended
($ in thousands)	3/31/2026			12/31/2025			3/31/2025			1Q26 vs. 4Q25					1Q26 vs. 1Q25
										Change			% Change		Change			% Change
Allowance for credit losses to total loans		0.79	%		0.80	%		0.82	%	-1 bps					-3 bps
Provision for credit losses	$	60		$	-		$	325		$	60		NM		$	(265	)	NM
Net charge-offs to average loans, annualized		0.01	%		0.01	%		0.00	%	0 bps					+1 bps
Total non-performing loans to total loans		0.13	%		0.16	%		0.13	%	-3 bps					0 bps

Total non-performing loans	$	1,332		$	1,573		$	1,281		$	(241	)	(15.3	%)	$	51		4.0	%

Total non-performing assets	$	1,527		$	1,795		$	1,281		$	(268	)	(14.9	%)	$	246		19.2	%
NM – Not meaningful

Overall, the Company’s asset quality metrics remained strong and stable during the quarter, reflecting a continued prudent approach to credit risk management in the current economic environment, and compare favorably to peer group averages. Non-performing loans were $1.3 million, or 0.13% of total loans, down from $1.6 million, or 0.16% of total loans, from the sequential fourth quarter of 2025 and were flat from $1.3 million, or 0.13% of total loans, from the first quarter of 2025. Net charge-offs to average loans were 0.01% for the first quarter of 2026 compared with net charge-offs to average loans of 0.01% for the sequential quarter and net charge-offs of 0.00% for the first quarter of 2025. No provision expense was recorded to the allowance for credit losses for loans during the first quarter of 2026. The allowance for credit losses represented 0.79% of total loans outstanding for the first quarter of 2026 compared with 0.80% for the sequential fourth quarter and 0.82% for the first quarter of 2025. The allowance for credit losses for unfunded commitments increased to $725,000, or 0.25% of total unfunded commitments, for the first quarter of 2026 compared with 0.25% for the sequential fourth quarter of 2025 and increased from $545,000, or 0.21% of total unfunded commitments, for the first quarter of 2025. The Company recorded $60,000 in provision for credit losses expense in the first quarter of 2026, which was primarily driven by an increase in unfunded loan commitment balances rather than a shift in underlying credit quality.

Capital Management Initiatives

	For the three months ended
($ in thousands, except per share data)	3/31/2026			12/31/2025			3/31/2025			1Q26 vs. 4Q25				1Q26 vs. 1Q25
										Change		% Change		Change			% Change
Tangible common stockholders' equity to tangible assets		9.21	%		9.14	%		7.87	%	+7 bps				+134 bps
Leverage capital ratio		10.97	%		10.86	%		10.21	%	+11 bps				+76 bps
Tier 1 capital ratio		17.59	%		17.49	%		16.68	%	+10 bps				+91 bps
Total Risk-based capital ratio		18.36	%		18.27	%		17.46	%	+9 bps				+90 bps

Total shares repurchased		14,299			8,097			20,000			6,202	76.6	%		(5,701	)	(28.5	%)
Average repurchase price per share	$	49.81		$	45.36		$	35.83		$	4.45	9.8	%	$	13.98		39.0	%

First Farmers’ capital ratios improved both sequentially and year-over-year and remain well-above the regulatory minimum guidelines. Tier 1 capital reached 17.59% while the Total Risk-based capital ratio grew to 18.36%. This robust capital base provides significant flexibility to both invest in the strategic growth initiatives previously outlined and return value to shareholders through dividends and the Company’s share repurchase program. During the first quarter of 2026, First Farmers repurchased 14,299 shares of the Company’s common stock in the open market and in privately negotiated transactions at an average price of $49.81 with prices ranging from $49.00 to $50.00 per share in accordance with the Company’s stock repurchase program. First quarter 2026 stock repurchases increased 76.6% compared to the sequential fourth quarter of 2025 and were down 28.5% compared to the year-earlier quarter. Authorization to repurchase approximately 185,701 shares remains under the current program, which is set to expire in December 2026, unless extended or otherwise completed.

About First Farmers and Merchants Corporation and First Farmers and Merchants Bank

First Farmers and Merchants Corporation is the holding company for First Farmers and Merchants Bank, a community bank serving the Tennessee area through 22 locations in seven counties and one production office in Chattanooga. As of March 31, 2026, First Farmers reported total assets of approximately $1.8 billion, total shareholders’ equity of approximately $174 million, and administered trust assets of $6.8 billion. For more information about First Farmers, visit us on the Web at www.myfirstfarmers.com under “Investor Relations.”

Cautionary Note Regarding Forward Looking Statements

This news release may contain certain “forward-looking statements” that represent First Farmers’ expectations or beliefs concerning future events and often use words or phrases such as “opportunities,” “prospects,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions. Such forward-looking statements contained herein represent the current expectations, plans or forecast of First Farmers’ and are about matters that are inherently subject to risks and uncertainties. These statements are not guarantees of future results or performance and readers are cautioned to not place undue reliance on them, whether included in this news release or made elsewhere from time to time by First Farmers or on its behalf. First Farmers disclaims any obligation to update such forward-looking statements.

Non-GAAP Financial Measures

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. First Farmers management uses non-GAAP financial measures, including: (i) adjusted net income and (ii) adjusted basic earnings per share, in its analysis of the Company’s performance. These non-GAAP financial measures exclude the following from net income: write-down of other real estate owned, securities gains and losses, gain on redemption of bank-owned life insurance, and the income tax effect of adjustments. Management believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company.

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES PRESENTED IN EARNINGS RELEASE
($ in thousands, except per share data)

	For the three months ended
	3/31/2026		3/31/2025			12/31/2025
Total non-interest income	$	3,297	$	3,481		$	3,473
Write-down of other real estate owned		27		-			-
Gain on equity securities		-		-			(25	)
Gain on redemption of bank-owned life insurance		-		(287	)		-
Adjusted non-interest income	$	3,324	$	3,194		$	3,448

Total non-interest expense	$	11,251	$	10,440		$	11,975

Net income as reported	$	5,462	$	4,461		$	4,693
Total adjustments, net of tax¹		20		(287	)		(18	)
Adjusted net income	$	5,482	$	4,174		$	4,675

Basic earnings per share	$	1.38	$	1.11		$	1.18
Total adjustments, net of tax¹		0.01		(0.07	)		-
Adjusted basic earnings per share	$	1.39	$	1.04		$	1.18

Diluted earnings per share	$	1.37	$	1.10		$	1.18
Total adjustments, net of tax¹		0.01		(0.07	)		-
Adjusted diluted earnings per share	$	1.38	$	1.03		$	1.18

(1) The effective tax rate of 26.1% is used to determine net of tax amounts.

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

		(unaudited)
		March 31,			December 31,
	($ in thousands, except per share data)	2026			2025⁽¹⁾
ASSETS	Cash and due from banks	$	26,508		$	22,903
	Interest-bearing deposits	57,335			79,477
	Federal funds sold	131			80
	Total cash and cash equivalents	83,974			102,460
	Securities:
	Available-for-sale	578,222			556,275
	Held-to-maturity (fair market value $22,155 and $23,383)	22,751			23,678
	Equity securities	2,314			2,314
	Loans held-for-sale	590			887
	Loans, net of deferred fees	1,012,674			1,005,688
	Allowance for credit losses	(8,025		)	(8,037		)
	Net loans	1,004,649			997,651
	Bank premises and equipment, net	28,707			28,803
	Bank-owned life insurance	36,292			36,129
	Goodwill	9,018			9,018
	Deferred tax asset	15,225			14,691
	Other assets	14,710			16,067
	TOTAL ASSETS	$	1,796,452		$	1,787,973
LIABILITIES	Deposits:
	Noninterest-bearing	$	493,038		$	484,552
	Interest-bearing	1,108,271			1,108,707
	Total deposits	1,601,309			1,593,259
	Accounts payable and accrued liabilities	21,416			23,091
	TOTAL LIABILITIES	1,622,725			1,616,350
SHAREHOLDERS’ E QUITY	Common stock - $10 par value per share, 8,000,000 shares authorized; 3,959,841 and 3,972,865 shares issued and outstanding as of the periods presented	39,598			39,729
	Retained earnings	168,012			164,267
	Additional paid-in-capital	165			156
	Accumulated other comprehensive loss	(34,143		)	(32,624		)

	Total shareholders’ equity attributable to First Farmers and Merchants Corporation	173,632			171,528
	Noncontrolling interest - preferred stock of subsidiary	95			95
	TOTAL SHAREHOLDERS’ EQUITY	173,727			171,623

	TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,796,452		$	1,787,973

⁽¹⁾ Derived from audited financial statements as of December 31, 2025.

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)

		For the three months ended March 31,
	($ in thousands, except per share data)	2026			2025
INTEREST AND	Interest and fees on loans	$	14,068		$	13,477
DIVIDEND	Income on investment securities
INCOME	Taxable interest	2,488			2,091
	Exempt from federal income tax	419			430
	Interest from federal funds sold and other	594			313
	Total interest income	17,569			16,311
INTEREST	Interest on deposits	2,799			3,636
EXPENSE	Interest on other borrowings	-			43
	Total interest expense	2,799			3,679
	Net interest income	14,770			12,632
	Provision for credit losses	60			325
	Net interest income after provision	14,710			12,307
NON-INTEREST	Mortgage banking activities	100			13
INCOME	Wealth management and trust fee income	1,264			1,165
	Service fees on deposit accounts	1,523			1,534
	Investment services fee income	90			100
	Earnings on bank-owned life insurance	163			174
	Gain on redemption of bank-owned life insurance	-			287
	Write-down of other real estate owned	(27		)	-
	Other non-interest income	184			208
	Total non-interest income	3,297			3,481
NON-INTEREST	Salaries and employee benefits	6,507			5,921
EXPENSE	Net occupancy expense	643			635
	Depreciation expense	431			403
	Data processing expense	625			618
	Software support and other computer expense	1,341			1,224
	Legal and professional fees	277			238
	Audit and exam expenses	164			190
	Advertising and promotions	135			241
	FDIC insurance premium expense	201			200
	Other non-interest expense	927			770
	Total non-interest expense	11,251			10,440
	Income before provision for income taxes	6,756			5,348
	Provision for income taxes	1,294			887
	Net income before non-controlling interest - dividends on preferred stock of subsidiary	5,462			4,461
	Non-controlling interest - dividends on preferred stock subsidiary	-			-
	Net income for common shareholders	$	5,462		$	4,461

	Weighted average shares outstanding – basic	3,972,154			4,034,047
	Weighted average shares outstanding - diluted	3,978,224			4,042,108
	Earnings per share	$	1.38		$	1.11
	Diluted earnings per share	$	1.37		$	1.10

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)

	For the three months ended
($ in thousands, except per share data)	3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
Results of Operations:
Interest income	$	17,569		$	17,569		$	17,331		$	16,598		$	16,311
Interest expense	2,799			3,325			3,674			3,529			3,679
Net interest income	14,770			14,244			13,657			13,069			12,632
Provision for credit losses	60			-			-			-			325
Non-interest income	3,297			3,473			3,351			3,655			3,481
Non-interest expense and non-controlling interest – preferred stock of subsidiary	11,251			11,975			11,006			11,045			10,440
Income before income taxes	6,756			5,742			6,002			5,679			5,348
Income taxes	1,294			1,049			1,160			1,054			887
Net income for common shareholders	$	5,462		$	4,693		$	4,842		$	4,625		$	4,461
Per Share Data:
Basic earnings per share	$	1.38		$	1.18		$	1.21		$	1.15		$	1.11
Diluted earnings per share	$	1.37		$	1.18		$	1.21		$	1.15		$	1.10
Book value per share	$	43.85		$	43.17		$	41.22		$	39.02		$	36.85
Weighted average shares outstanding per quarter - basic	3,972,154			3,976,190			3,994,144			4,013,067			4,034,047
Weighted average shares outstanding per quarter - diluted	3,978,224			3,983,535			4,001,832			4,020,755			4,042,108
Financial Condition Data and Ratios:
Total securities	$	603,287		$	582,267		$	580,555		$	589,905		$	609,098
Available-for-sale securities, fair market value	$	578,222		$	556,275		$	554,123		$	562,764		$	581,649
Available-for-sale securities, amortized cost	$	625,103		$	601,126		$	604,742		$	620,335		$	646,319
Loans, net of deferred fees	$	1,012,674		$	1,005,688		$	1,015,365		$	1,004,340		$	1,003,200
Allowance for credit losses	$	(8,025	)	$	(8,037	)	$	(8,160	)	$	(8,196	)	$	(8,236	)
Total assets	$	1,796,452		$	1,787,973		$	1,745,176		$	1,745,297		$	1,777,078
Total deposits	$	1,601,309		$	1,593,259		$	1,558,329		$	1,566,383		$	1,605,898
Net interest income, on a fully taxable-equivalent basis	$	14,916		$	14,382		$	13,803		$	13,201		$	12,935
Net interest margin	3.54		%	3.37		%	3.23		%	3.14		%	3.02		%
Efficiency	61.64		%	66.74		%	63.73		%	66.34		%	66.74		%

Asset Quality Data and Ratios:
Total non-performing assets	$	1,527		$	1,795		$	1,513		$	1,319		$	1,281
Non-performing assets to total assets	0.09		%	0.10		%	0.09		%	0.08		%	0.07		%
Allowance for credit losses to total loans	0.79		%	0.80		%	0.80		%	0.82		%	0.82		%
Net charge-offs to average loans (annualized)	0.01		%	0.01		%	0.01		%	0.01		%	0.00		%

View source version on businesswire.com: https://www.businesswire.com/news/home/20260427584026/en/

For additional information contact
Jill A. Giles
Chief Financial Officer
(931) 380-8284

Source: First Farmers and Merchants Corporation

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First Farmers and Merchants Corporation Reports First Quarter Net Income up 22.4% to $5.5 Million