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First Farmers and Merchants

OTCPK:FFMH
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FFMH
OTCPK
$199M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

First Farmers and Merchants Corporation operates as the bank holding company for First Farmers and Merchants Bank that provides various banking and financial services in Tennessee and Alabama. The last earnings update was 51 days ago. More info.


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FFMH Share Price and Events
7 Day Returns
0%
OTCPK:FFMH
2.9%
US Banks
1.6%
US Market
1 Year Returns
-
OTCPK:FFMH
-8.1%
US Banks
3.2%
US Market
FFMH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
First Farmers and Merchants (FFMH) 0% -0.6% 6.2% - 57.9% -
US Banks 2.9% 1.7% 15% -8.1% 50.7% 42.7%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • No trading data on FFMH.
  • No trading data on FFMH.
Price Volatility
FFMH
Industry
5yr Volatility vs Market

FFMH Value

 Is First Farmers and Merchants undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of First Farmers and Merchants to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for First Farmers and Merchants.

OTCPK:FFMH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $26.95 * 8.5%
$2.28
Book Value of Equity per Share Median Book Value from the past 5 years. $26.95
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:FFMH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.641 (1 + (1- 21%) (22.44%))
0.836
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.836 * 5.96%)
7.71%

Discounted Cash Flow Calculation for OTCPK:FFMH using Excess Returns Model Model

The calculations below outline how an intrinsic value for First Farmers and Merchants is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

OTCPK:FFMH Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.5% – 7.71%) * $26.95)
$0.20
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.20 / (7.71% - 2.73%)
$4.03
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $26.95 + $4.03
$30.98
OTCPK:FFMH Discount to Share Price
Calculation Result
Value per share (USD) From above. $30.98
Current discount Discount to share price of $44.62
= -1 x ($44.62 - $30.98) / $30.98
-44.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of First Farmers and Merchants is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for First Farmers and Merchants's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are First Farmers and Merchants's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:FFMH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.17
OTCPK:FFMH Share Price ** OTCPK (2019-03-12) in USD $44.62
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 13.41x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of First Farmers and Merchants.

OTCPK:FFMH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OTCPK:FFMH Share Price ÷ EPS (both in USD)

= 44.62 ÷ 3.17

14.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First Farmers and Merchants is overvalued based on earnings compared to the US Banks industry average.
  • First Farmers and Merchants is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does First Farmers and Merchants's expected growth come at a high price?
Raw Data
OTCPK:FFMH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
4%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for First Farmers and Merchants, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on First Farmers and Merchants's assets?
Raw Data
OTCPK:FFMH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $29.18
OTCPK:FFMH Share Price * OTCPK (2019-03-12) in USD $44.62
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.26x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
OTCPK:FFMH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:FFMH Share Price ÷ Book Value per Share (both in USD)

= 44.62 ÷ 29.18

1.53x

* Primary Listing of First Farmers and Merchants.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First Farmers and Merchants is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess First Farmers and Merchants's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. First Farmers and Merchants has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FFMH Future Performance

 How is First Farmers and Merchants expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover First Farmers and Merchants, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is First Farmers and Merchants expected to grow at an attractive rate?
  • First Farmers and Merchants's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • First Farmers and Merchants's earnings growth is positive but not above the United States of America market average.
  • Unable to compare First Farmers and Merchants's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OTCPK:FFMH Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:FFMH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 4%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.3%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:FFMH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:FFMH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 55 14
2018-09-30 55 13
2018-06-30 54 12
2018-03-31 53 11
2017-12-31 52 15 10
2017-09-30 51 11
2017-06-30 49 10
2017-03-31 48 10
2016-12-31 48 12 10
2016-09-30 48 10
2016-06-30 48 10
2016-03-31 48 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • First Farmers and Merchants's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if First Farmers and Merchants is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:FFMH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from First Farmers and Merchants Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:FFMH Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.17
2018-09-30 2.85
2018-06-30 2.70
2018-03-31 2.46
2017-12-31 2.29
2017-09-30 2.37
2017-06-30 2.28
2017-03-31 2.21
2016-12-31 2.22
2016-09-30 2.14
2016-06-30 2.13
2016-03-31 2.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if First Farmers and Merchants will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess First Farmers and Merchants's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
First Farmers and Merchants has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FFMH Past Performance

  How has First Farmers and Merchants performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare First Farmers and Merchants's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • First Farmers and Merchants's year on year earnings growth rate has been positive over the past 5 years.
  • First Farmers and Merchants's 1-year earnings growth exceeds its 5-year average (37% vs 5.6%)
  • First Farmers and Merchants's earnings growth has not exceeded the US Banks industry average in the past year (37% vs 43.2%).
Earnings and Revenue History
First Farmers and Merchants's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from First Farmers and Merchants Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:FFMH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 55.17 14.20 35.26
2018-09-30 54.54 12.79 31.55
2018-06-30 53.71 12.18 30.88
2018-03-31 52.73 11.11 30.82
2017-12-31 51.69 10.36 30.55
2017-09-30 50.59 10.76 30.16
2017-06-30 49.48 10.39 29.42
2017-03-31 48.29 10.10 28.44
2016-12-31 47.69 10.31 27.41
2016-09-30 47.51 10.02 27.41
2016-06-30 47.58 10.12 27.34
2016-03-31 47.91 10.28 27.70
2015-12-31 47.84 10.31 27.84
2015-09-30 47.24 10.70 26.80
2015-06-30 47.00 10.70 26.55
2015-03-31 46.63 10.60 26.16
2014-12-31 45.56 10.24 25.87
2014-09-30 45.87 9.70 27.02
2014-06-30 45.10 9.03 26.85
2014-03-31 44.93 8.82 27.15
2013-12-31 45.57 9.61 27.02
2013-09-30 45.12 8.74 28.32
2013-06-30 44.44 8.64 28.25
2013-03-31 44.00 8.34 28.03
2012-12-31 43.05 9.40 24.76
2012-09-30 42.42 7.51 27.24
2012-06-30 42.45 7.85 26.79
2012-03-31 41.86 7.78 26.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • First Farmers and Merchants has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • First Farmers and Merchants used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if First Farmers and Merchants improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess First Farmers and Merchants's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
First Farmers and Merchants has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FFMH Health

 How is First Farmers and Merchants's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of First Farmers and Merchants's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from First Farmers and Merchants Company Filings, last reported 2 months ago.

OTCPK:FFMH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 129.98 44.58 40.52
2018-09-30 124.67 57.49 37.55
2018-06-30 123.60 35.44 30.50
2018-03-31 122.10 32.08 32.17
2017-12-31 123.38 31.22 50.46
2017-09-30 123.90 41.68 33.49
2017-06-30 121.89 49.62 40.90
2017-03-31 119.38 27.60 39.95
2016-12-31 117.71 42.58 33.08
2016-09-30 122.23 26.05 81.95
2016-06-30 122.56 25.81 72.85
2016-03-31 124.47 25.00 102.06
2015-12-31 117.79 24.18 62.23
2015-09-30 119.96 36.45 29.26
2015-06-30 115.53 26.41 31.36
2015-03-31 118.54 24.83 35.89
2014-12-31 114.58 22.83 30.30
2014-09-30 110.60 27.37 38.99
2014-06-30 109.31 20.74 37.17
2014-03-31 106.99 20.06 69.00
2013-12-31 104.20 18.10 55.41
2013-09-30 107.42 21.03 42.80
2013-06-30 107.46 20.90 32.13
2013-03-31 114.44 21.87 51.85
2012-12-31 112.80 27.17 70.40
2012-09-30 115.98 30.19 52.12
2012-06-30 113.27 28.77 53.00
2012-03-31 112.22 27.39 64.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • First Farmers and Merchants has an acceptable proportion of non-loan assets held.
  • First Farmers and Merchants's liabilities are made up of primarily low risk sources of funding.
  • Loans at First Farmers and Merchants are broadly funded by customer deposits.
  • First Farmers and Merchants's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • First Farmers and Merchants has a sufficient allowance for bad loans.
  • First Farmers and Merchants has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess First Farmers and Merchants's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. First Farmers and Merchants has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FFMH Dividends

 What is First Farmers and Merchants's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.88%
Current annual income from First Farmers and Merchants dividends.
If you bought $2,000 of First Farmers and Merchants shares you are expected to receive $38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • First Farmers and Merchants's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • First Farmers and Merchants's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:FFMH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 470 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:FFMH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-29 0.840 1.926
2018-10-22 0.800 1.900
2018-03-07 0.780 1.831
2018-01-25 0.780 1.963
2017-03-17 0.750 2.155
2016-10-13 0.760 2.635
2016-03-15 0.740 2.645
2015-06-01 0.740 3.512
2013-12-05 0.740 3.364
2011-12-02 0.740 3.410
2011-02-15 0.740 2.643
2010-08-06 0.740 2.545

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, First Farmers and Merchants has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but First Farmers and Merchants only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of First Farmers and Merchants's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess First Farmers and Merchants's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can First Farmers and Merchants afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. First Farmers and Merchants has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FFMH Management

 What is the CEO of First Farmers and Merchants's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Randy Stevens
COMPENSATION $814,116
AGE 66
TENURE AS CEO 16.8 years
CEO Bio

Mr. Thomas Randall Stevens, also known as Randy, has been the Chief Executive Officer at First Farmers Merchants Corp. and its subsidiary, First Farmers and Merchants Bank(a/k/a Merchants National Bank of Columbia (the Bank)) since June 30, 2002. Mr. Stevens served as the President of Merchants National Bank of Columbia since December 31, 1995 and also of First Farmers and Merchants Corp., since April 1996. He served as Executive Vice President and Chief Administrative Officer of Merchants National Bank in 1990. He was employed by Merchants National Bank in 1973 served as Commercial Bank Officer since 1974. He served as Assistant Vice President of Merchants National Bank of Columbia since 1976 and served as Vice President since 1979. He served as a Vice President and Trust Officer of Merchants National Bank since 1982 and First Vice President since 1984. He served as Vice President of Merchants National Bank in 1991. He served as the President and Chief Operating Officer of Merchants National Bank since December 31, 1995 and President and Chief Operating Officer of First Farmers And Merchants Corp. since April, 1996. He has been the Chairman of First Farmers Merchants Corp. and First Farmers and Merchants Bank since April 19, 2005. Mr. Stevens has been a Director of First Farmers & Merchants Bank and First Farmers and Merchants Corp. since 1991.

CEO Compensation
  • Randy's compensation has been consistent with company performance over the past year.
  • Insufficient data for Randy to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the First Farmers and Merchants management team in years:

3.8
Average Tenure
57
Average Age
  • The tenure for the First Farmers and Merchants management team is about average.
Management Team

Randy Stevens

TITLE
Chairman & CEO
COMPENSATION
$814K
AGE
66
TENURE
16.8 yrs

Brian Williams

TITLE
President & Director
COMPENSATION
$275K
AGE
48
TENURE
3.2 yrs

Bobby Krimmel

TITLE
Treasurer & CFO
COMPENSATION
$190K
AGE
36
TENURE
3.8 yrs

Leslie Brooks

TITLE
Davidson County President
COMPENSATION
$176K

M. Church

TITLE
President of Maury County

R. Holland

TITLE
President of Williamson County

Stephanie Harlan

TITLE
Corporate Secretary

Waymon Hickman

TITLE
Senior Chairman of the Board and Honorary Director
COMPENSATION
$244K
AGE
83

Paul Butts

TITLE
Senior Executive of Retail Banking

Billy Harvel

TITLE
Vice President
Board of Directors Tenure

Average tenure and age of the First Farmers and Merchants board of directors in years:

8.9
Average Tenure
66
Average Age
  • The tenure for the First Farmers and Merchants board of directors is about average.
Board of Directors

Tim Pettus

TITLE
Vice Chairman
COMPENSATION
$502K
AGE
66
TENURE
3.2 yrs

Randy Stevens

TITLE
Chairman & CEO
COMPENSATION
$814K
AGE
66
TENURE
13.9 yrs

Brian Williams

TITLE
President & Director
COMPENSATION
$275K
AGE
48
TENURE
2.9 yrs

Waymon Hickman

TITLE
Senior Chairman of the Board and Honorary Director
COMPENSATION
$244K
AGE
83

Virgil Moore

TITLE
Senior Chairman of the Board and Honorary Director

Tom Gordon

TITLE
Director
COMPENSATION
$40K
AGE
66
TENURE
33.2 yrs

Sonny Scoggins

TITLE
Director
COMPENSATION
$29K
AGE
68
TENURE
10.9 yrs

Dalton Mounger

TITLE
Director
COMPENSATION
$68K
AGE
67
TENURE
8.9 yrs

Jonathan Edwards

TITLE
Director
COMPENSATION
$57K
AGE
57
TENURE
8.9 yrs

Jeff Aiken

TITLE
Director
AGE
54
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess First Farmers and Merchants's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. First Farmers and Merchants has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FFMH News

Simply Wall St News

FFMH Company Info

Description

First Farmers and Merchants Corporation operates as the bank holding company for First Farmers and Merchants Bank that provides various banking and financial services in Tennessee and Alabama. The company’s deposit products include personal and business checking and savings, Christmas club, individual retirement, NOW, and money market accounts, as well as demand deposits and certificates of deposit. Its loan portfolio comprises personal mortgages; home equity lines of credit; debit and credit cards; personal loans, including auto, boat, motorcycle, RV, and camper loans, as well as other consumer loans; and business loans, such as commercial mortgages, equipment lending and leasing, construction lending, accounts receivable financing, lines of credit, and other products. The company operates through 21 financial service centers in Davidson, Dickson, Giles, Hickman, Lawrence, Marshall, Maury, and Williamson counties. First Farmers and Merchants Corporation was founded in 1909 and is based in Columbia, Tennessee.

Details
Name: First Farmers and Merchants Corporation
FFMH
Exchange: OTCPK
Founded: 1909
$198,623,565
4,451,447
Website: http://www.myfirstfarmers.com
Address: First Farmers and Merchants Corporation
816 South Garden Street,
Columbia,
Tennessee, 38401,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK FFMH Common Stock Pink Sheets LLC US USD 28. May 2009
Number of employees
Current staff
Staff numbers
0
First Farmers and Merchants employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 00:14
End of day share price update: 2019/03/12 00:00
Last earnings filing: 2019/01/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.