First Farmers and Merchants (FFMH) AI Stock Analysis

3 Followers

First Farmers and Merchants

(Other OTC:FFMH)

Select Model

Rating:82Outperform

Price Target:$75.00▲(16.28% Upside)

Action:reiterated

Date:11/07/26

The overall score of 82 reflects a financially robust regional bank with a pristine, debt-free balance sheet and strong cash flow. The primary strength is its exceptional financial performance, which provides a solid foundation. Valuation is attractive with a low P/E and stable dividend. Technicals confirm a positive trend, though overbought stochastic levels introduce a note of caution for short-term entry. The lack of earnings call data and corporate events limits forward-looking qualitative insight.

Positive Factors

Conservative Balance SheetA debt-free reported balance sheet gives the bank substantial financial flexibility and reduces interest and refinancing pressure. Meaningful equity growth further strengthens loss absorption capacity, supports lending through different conditions, and provides a durable foundation for future capital allocation.

Negative Factors

Uneven Revenue GrowthThe sharp change from a material revenue decline to a rebound shows that top-line performance has not followed a stable progression. Uneven growth can make operating planning less predictable, limit confidence in recurring expansion, and place greater importance on maintaining margins.

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

Market Cap: $252.60M
Dividend Yield: 1.80%
Average Volume (3M): 734
Price to Earnings (P/E): 12.1
Beta (1Y): 0.13
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...

First Farmers and Merchants Financial Statement Overview

Summary

The bank demonstrates strong financial health with a net profit margin of 22.9%, zero debt, and robust cash flow generation. Operating cash flow of $20.3M exceeds net income, and free cash flow conversion is high at 93%. The debt-free balance sheet and 31.2x operating cash flow coverage ratio provide exceptional stability, though revenue growth has been uneven.

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	85.82M	81.26M	59.05M	73.94M	65.37M	64.32M
Gross Profit	73.83M	67.34M	59.05M	57.55M	62.13M	61.94M
EBITDA	28.00M	24.44M	20.95M	21.14M	24.07M	21.16M
Net Income	21.29M	18.62M	16.04M	16.05M	18.05M	15.62M
Balance Sheet
Total Assets	1.76B	1.79B	1.77B	1.87B	1.94B	1.97B
Cash, Cash Equivalents and Short-Term Investments	23.34M	102.38M	46.53M	25.46M	28.95M	94.86M
Total Debt	33.50M	1.95M	0	104.00M	25.00M	0
Total Liabilities	1.59B	1.62B	1.63B	1.75B	1.85B	1.81B
Stockholders Equity	169.92M	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 Price64.50

Price Trends

50DMA63.33Positive

100DMA61.68Positive

200DMA57.42Positive

Market Momentum

MACD0.47Negative

RSI55.70Neutral

STOCH50.00Neutral

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 64.50 is above the 20-day moving average (MA) of 63.88, above the 50-day MA of 63.33, and above the 200-day MA of 57.42, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, 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
FFMH	82Outperform	$254.57M	12.08	12.29%	1.80%	6.26%	15.00%
VABK	81Outperform	$293.10M	10.91	14.18%	2.67%	7.74%	49.05%
PEBK	75Outperform	$236.76M	10.46	13.87%	2.30%	2.08%	30.66%
OPBK	70Outperform	$223.39M	7.41	12.79%	3.61%	7.48%	28.18%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MRBK	57Neutral	$197.15M	8.32	11.30%	3.45%	-2.24%	-4.58%

* 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	64.50	18.99	41.73%
PEBK	Peoples Bancorp Of North Carolina	43.41	14.47	49.98%
MRBK	Meridian Bank	16.22	2.22	15.82%
OPBK	Op Bancorp	14.97	2.77	22.68%
VABK	Virginia National Bankshares Corporation	53.89	15.54	40.50%
FBLA	FB Bancorp, Inc.	16.80	4.63	38.04%

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: Nov 07, 2026

First Farmers and Merchants AI Stock Analysis