First Farmers and Merchants (FFMH) AI Stock Analysis

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First Farmers and Merchants

(Other OTC:FFMH)

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Rating:86Outperform

Price Target:$70.00▲(7.69% Upside)

Action:reiterated

Date:08/06/26

First Farmers and Merchants earns a high overall score of 86, driven by its excellent financial strength, including zero debt and robust cash flow, combined with a bullish technical trend. Valuation is reasonable, providing a margin of safety. The stock's low beta adds stability. While revenue growth has been inconsistent, the company's solid margins and capital structure position it well for future performance.

Positive Factors

Conservative balance sheetZero reported debt and expanding equity materially strengthen financial flexibility and loss-absorbing capacity. Over the coming months this reduces refinancing and interest-rate risk, supports lending capacity, and allows the bank to absorb localized credit stress without relying on external capital.

Negative Factors

Choppy revenue growthIrregular revenue trends weaken predictability of future earnings and complicate planning for lending and deposit pricing. Over a multi-month horizon, inconsistent top-line performance can strain margins and capital allocation choices when loan demand or fee income swings across local markets.

First Farmers and Merchants (FFMH) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $254.81M
Dividend Yield: 1.79%
Average Volume (3M): 936
Price to Earnings (P/E): 12.0
Beta (1Y): 0.11
Revenue Growth: 6.26%
EPS Growth: 15.00%
Country: US
Employees: 243
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

First Farmers and Merchants Business Overview & Revenue Model

Company Description

First Farmers and Merchants Corporation (FFMH) functions as the parent entity for First Farmers and Merchants Bank, delivering a comprehensive suite of banking and financial solutions to clients in Tennessee and Alabama. Its diverse array of deposit...

How the Company Makes Money

FFMH primarily makes money through traditional banking revenue sources: (1) Net interest income: The company earns interest and fees on loans and other interest-earning assets (e.g., loans to consumers and businesses, and securities if held), and pay...

First Farmers and Merchants Financial Statement Overview

Summary

First Farmers and Merchants demonstrates strong financial health with high profitability (net margin 22.9%, operating margin 28.0%), a debt-free balance sheet, and robust cash flow generation (operating cash flow $20.3M, coverage 31.2x). Revenue growth has been uneven but margins remain attractive.

Income Statement

85Very Positive

Balance Sheet

92Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	84.21M	81.26M	59.05M	73.94M	65.37M	64.32M
Gross Profit	71.57M	67.34M	59.05M	57.55M	62.13M	61.94M
EBITDA	26.88M	24.44M	20.95M	21.14M	24.07M	21.16M
Net Income	20.68M	18.62M	16.04M	16.05M	18.05M	15.62M
Balance Sheet
Total Assets	1.77B	1.79B	1.77B	1.87B	1.94B	1.97B
Cash, Cash Equivalents and Short-Term Investments	48.53M	102.38M	46.53M	25.46M	28.95M	94.86M
Total Debt	0	1.95M	0	104.00M	25.00M	0
Total Liabilities	1.59B	1.62B	1.63B	1.75B	1.85B	1.81B
Stockholders Equity	177.77M	171.53M	137.58M	124.15M	96.57M	158.54M
Cash Flow
Free Cash Flow	0	18.92M	30.77M	17.11M	15.31M	21.18M
Operating Cash Flow	0	20.28M	31.29M	17.73M	16.42M	22.63M
Investing Cash Flow	0	53.75M	117.61M	86.72M	-116.40M	-223.79M
Financing Cash Flow	0	-18.18M	-127.74M	-107.99M	27.33M	166.02M

First Farmers and Merchants Technical Analysis

Technical Analysis SentimentPositive

Last Price65.00

Price Trends

50DMA63.00Positive

100DMA60.82Positive

200DMA56.64Positive

Market Momentum

MACD0.33Negative

RSI59.87Neutral

STOCH81.84Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFMH, the sentiment is Positive. The current price of 65.00 is above the 20-day moving average (MA) of 62.88, above the 50-day MA of 63.00, and above the 200-day MA of 56.64, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 81.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFMH.

First Farmers and Merchants Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

FFMH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VABK	86Outperform	$279.46M	10.43	14.18%	2.80%	7.74%	49.05%
FFMH	86Outperform	$256.54M	12.00	12.29%	1.79%	6.26%	15.00%
PEBK	84Outperform	$240.50M	10.61	13.87%	2.27%	2.08%	30.78%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPBK	65Neutral	$225.18M	7.46	12.79%	3.45%	7.57%	28.18%
MRBK	63Neutral	$223.07M	9.59	11.30%	2.91%	1.05%	13.95%

* Financial Sector Average

Performance Comparison

FFMH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FFMH	First Farmers and Merchants Corporation	65.00	19.86	43.99%
PEBK	Peoples Bancorp Of North Carolina	44.03	15.41	53.85%
MRBK	Meridian Bank	18.70	4.23	29.25%
OPBK	Op Bancorp	15.08	2.19	16.99%
VABK	Virginia National Bankshares Corporation	51.51	13.36	35.03%
FBLA	FB Bancorp, Inc.	16.70	4.51	37.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026

First Farmers and Merchants AI Stock Analysis

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