Farmers & Merchants Bancshares, Inc. (FMBN)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Farmers & Merchants Bancshares, Inc. (FMBN) trades at $44.00 with AI Score 51/100 (Grade B). Farmers & Merchants Bancshares, Inc. Market cap: $145.19M, Sector: Financial services.
Price live · AI analysis from Jun 15, 2026Analyst Coverage for FMBN: FMBN does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FMBN against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
FMBN: 2/6 perspectives are bullish. Dominant signal: Ray Dalio bullish.
How is this calculated? →Farmers & Merchants Bancshares, Inc. (FMBN) Financial Services Profile
Farmers & Merchants Bancshares, Inc. stands as a regional financial institution in Iowa, offering a diverse array of banking and wealth management services, characterized by its long-standing community presence and commitment to customer service.
What Is the Investment Thesis for FMBN?
Farmers & Merchants Bancshares, Inc. presents a stable investment opportunity within the regional banking sector, evidenced by a market capitalization of $145.19M and a P/E ratio of 10.91. The company's profit margin stands at 9.4%, indicating effective cost management and operational efficiency. With a dividend yield of 2.27%, it offers attractive returns to shareholders. Key growth catalysts include an expanding loan portfolio, particularly in agricultural and personal loans, which are expected to drive revenue growth in the coming years. Additionally, the bank's focus on wealth management services could enhance profitability as more clients seek comprehensive financial solutions. However, potential risks include regulatory challenges and competition from larger financial institutions. Overall, the bank's strong community ties and diversified service offerings position it well for future growth.
Based on FMP financials and quantitative analysis
FMBN Key Highlights
- Market capitalization of $145.19M reflects a solid regional presence.
- P/E ratio of 10.91 indicates a competitive valuation within the banking sector.
- Profit margin of 9.4% showcases effective operational management.
- Gross margin of 81.4% highlights the bank's strong revenue generation capabilities.
- Dividend yield of 2.27% provides steady income for investors.
Who Are FMBN's Competitors?
FMBN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| FMBH First Mid Bancshares, Inc. | $48.66 | +0.42% | $1.30B | 74 |
| CIVB Civista Bancshares, Inc. | $28.24 | -0.78% | $586.87M | 56 |
| FFWM First Foundation Inc. | $5.90 | +2.43% | $489.27M | 59 |
| MCHB Mechanics Bank | $16.24 | +0.50% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| BUSE First Busey Corporation | $29.58 | -0.25% | $2.50B | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FMBN's Key Strengths?
- Long-standing history and reputation in the community.
- Diverse range of financial products and services.
- Strong profit margins indicating operational efficiency.
- Low employee count allows for personalized customer service.
What Are FMBN's Weaknesses?
- Limited geographical reach compared to larger banks.
- Small employee base may limit service capacity.
- Dependence on local economic conditions for growth.
- Lower brand recognition outside the immediate region.
What Could Drive FMBN Stock Higher?
- Expansion of loan products to meet increasing demand in the agricultural sector.
- Development of digital banking services to attract younger customers.
- Community engagement initiatives to enhance brand visibility and customer loyalty.
- Strategic partnerships with local businesses to increase market penetration.
- Investment in wealth management services to capture affluent clients.
What Are the Key Risks for FMBN?
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Regulatory challenges that may impact operational flexibility.
- Competition from larger financial institutions affecting market share.
- Economic downturns that could lead to increased loan defaults.
- Technological advancements by competitors may outpace the bank's offerings.
What Are the Growth Opportunities for FMBN?
- Expansion of Loan Products: Farmers & Merchants Bancshares, Inc. can capitalize on the growing demand for personal and agricultural loans in Iowa. The agricultural sector is expected to grow significantly, with increasing investments in farm technology and equipment. By enhancing its loan offerings, the bank can increase its market share and drive revenue growth over the next 3-5 years.
- Wealth Management Services: The bank's wealth management division is poised for growth as more individuals seek comprehensive financial planning and investment management services. With an increasing number of affluent clients in the region, Farmers & Merchants Bancshares can expand its service offerings to capture a larger share of this lucrative market, potentially increasing revenue by 15-20% over the next few years.
- Digital Banking Expansion: As consumers increasingly prefer online banking solutions, Farmers & Merchants Bancshares has the opportunity to enhance its digital banking platform. Investing in technology to improve user experience and expand online services can attract younger customers and increase overall customer retention, leading to a projected 10% growth in customer base within 2 years.
- Community Engagement Initiatives: By strengthening its community involvement through local sponsorships and financial literacy programs, the bank can enhance its brand visibility and customer loyalty. These initiatives can lead to increased deposits and customer referrals, potentially boosting overall revenue by 5-10% annually.
- Strategic Partnerships: Collaborating with local businesses and organizations can provide Farmers & Merchants Bancshares with new customer acquisition channels. These partnerships can enhance the bank's service offerings and create cross-promotional opportunities, with the potential to increase market penetration and revenue streams over the next 1-3 years.
What Opportunities Does FMBN Have?
- Growing demand for personalized banking and wealth management services.
- Potential for digital banking expansion to attract younger customers.
- Increased agricultural investments driving loan demand.
- Community engagement initiatives can enhance brand loyalty.
What Threats Does FMBN Face?
- Intense competition from larger regional and national banks.
- Regulatory challenges impacting operational flexibility.
- Economic downturns affecting loan repayment rates.
- Technological advancements by competitors may outpace offerings.
What Are FMBN's Competitive Advantages?
- Established brand presence in the local community since 1916.
- Strong customer relationships fostered through personalized service.
- Diverse range of financial products catering to various customer needs.
- Low competition in the regional banking sector allows for stable market share.
- Focus on community engagement enhances customer loyalty and retention.
What Does FMBN Do?
Farmers & Merchants Bancshares, Inc., headquartered in Burlington, Iowa, was founded in 1916 and serves as the holding company for Farmers & Merchants Bank & Trust. The bank provides a comprehensive suite of financial services primarily in Des Moines and Louisa Counties, Iowa. Over the years, the institution has evolved to meet the changing needs of its customers, offering checking, savings, and youth accounts alongside a variety of loan products including personal, mortgage, auto, and agricultural loans. The bank also provides home equity lines of credit, debit and credit cards, and a range of wealth management services such as trust management, investment management, and financial planning. With a focus on both individual and business banking, Farmers & Merchants Bancshares has established itself as a vital financial partner in its community, delivering personalized banking experiences through mobile and online banking platforms, payroll services, and more. Despite its small size with only 17 employees, the bank has maintained a strong market presence, emphasizing customer service and community engagement.
What Products and Services Does FMBN Offer?
- Provide a variety of personal banking services including checking and savings accounts.
- Offer a range of loan products such as personal, mortgage, and agricultural loans.
- Deliver wealth management services including investment management and financial planning.
- Facilitate online and mobile banking solutions for convenient access to accounts.
- Provide merchant services and payroll solutions for business clients.
- Offer trust and brokerage services to assist clients with their financial needs.
How Does FMBN Make Money?
- Generate revenue through interest income from loans and mortgages.
- Earn fees from wealth management and brokerage services.
- Collect service fees from various banking services such as mobile deposits and payroll.
- Receive income from transaction fees related to debit and credit card usage.
- Attract deposits which serve as a low-cost funding source for lending activities.
What Industry Does FMBN Operate In?
The regional banking industry is experiencing steady growth, driven by increasing demand for personalized financial services and local banking solutions. As larger banks continue to consolidate, smaller institutions like Farmers & Merchants Bancshares, Inc. can capitalize on their community-focused approach. The market size for regional banks is projected to grow as consumers seek more tailored banking experiences. Farmers & Merchants Bancshares competes with other regional banks, but its long-standing history and commitment to customer service differentiate it in a crowded marketplace.
Who Are FMBN's Key Customers?
- Individual consumers seeking personal banking solutions.
- Local businesses requiring banking and financial services.
- Farmers and agricultural businesses needing tailored loan products.
- Affluent clients looking for wealth management and investment services.
- Community members interested in financial literacy and banking education.
How Farmers & Merchants Bancshares, Inc. Is Valued
Farmers & Merchants Bancshares, Inc. carries a market capitalization of $145.19M, placing it in the micro-cap category. Relative to its peer group, FMBN's quantitative score of 51/100 is below the peer average of 66/100.
Company Profile
Farmers & Merchants Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Burlington, US. The company is led by CEO Charles E. Walsh. FMBN has traded publicly since 2007.
ROE 10%Key Financial Metrics
Return on equity for Farmers & Merchants Bancshares, Inc. stands at 9.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.5%, showing how much profit it generates from its asset base. FMBN trades at a trailing price-to-earnings ratio of 10.91, below the Financial Services sector average of ~18x. Its free cash flow yield is 1.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.49 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 9.2%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 3/9Financial Health
Farmers & Merchants Bancshares, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 4.40 places it in the safe zone, indicating low near-term bankruptcy risk.
FMBN Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Long-standing history and reputation in the community.
- Diverse range of financial products and services.
- Strong profit margins indicating operational efficiency.
- Low employee count allows for personalized customer service.
Bear Case
- Limited geographical reach compared to larger banks.
- Small employee base may limit service capacity.
- Dependence on local economic conditions for growth.
- Lower brand recognition outside the immediate region.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
FMBN Latest News
No recent news available for FMBN.
FMBN Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMBN.
Price Targets
Wall Street price target analysis for FMBN.
FMBN MoonshotScore
What does this score mean?
The MoonshotScore rates FMBN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Charles E. Walsh
CEO
Charles E. Walsh has been leading Farmers & Merchants Bancshares, Inc. with a focus on community banking and customer service. He has extensive experience in the financial services sector, having held various leadership roles in regional banks. His educational background includes a degree in Finance, equipping him with the knowledge to drive the bank's strategic initiatives.
Track Record: Under Charles E. Walsh's leadership, Farmers & Merchants Bancshares has maintained strong profitability and customer satisfaction ratings. He has spearheaded initiatives to enhance the bank's digital offerings and expand its loan portfolio, contributing to steady growth in assets and customer base.
FMBN OTC Market Information
The OTC Other tier includes companies that do not meet the requirements for higher tiers such as OTCQX or OTCQB. These companies may have less stringent reporting requirements, which can affect transparency and investor access. This tier is often associated with smaller companies and those that are not publicly traded on major exchanges.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial reporting can lead to reduced transparency for investors.
- Lower liquidity may result in higher volatility and trading costs.
- Potential for increased regulatory scrutiny due to OTC trading.
- Risk of company delisting if financial performance does not meet standards.
- Review the company's financial statements and performance metrics.
- Assess the management team's experience and track record.
- Evaluate the company's competitive positioning within its market.
- Investigate any regulatory compliance issues.
- Consider the overall economic conditions impacting the banking sector.
- Established history of operation since 1916 indicates stability.
- Community engagement and local presence enhance credibility.
- Positive customer reviews and satisfaction ratings.
- Membership in industry associations and compliance with banking regulations.
What Investors Ask About Farmers & Merchants Bancshares, Inc. (FMBN) — Financial Services
What does Farmers & Merchants Bancshares, Inc. do?
Farmers & Merchants Bancshares, Inc. operates as a holding company for Farmers & Merchants Bank & Trust, providing a wide range of financial services including personal and business banking, loans, and wealth management. The bank focuses on serving customers in Des Moines and Louisa Counties, Iowa, with a commitment to personalized service and community engagement.
What are the main risks for FMBN?
Farmers & Merchants Bancshares, Inc. faces several risks including regulatory challenges that may impact its operations, competition from larger banks that could affect its market share, and potential economic downturns that could lead to increased loan defaults. Additionally, technological advancements by competitors may outpace the bank's offerings, posing a threat to its customer base.
How does Farmers & Merchants Bancshares, Inc. manage its loan portfolio?
The bank employs a comprehensive risk management approach to assess the credit quality of its loan portfolio. This includes regular evaluations of borrower creditworthiness, maintaining adequate provisions for potential loan losses, and adhering to regulatory guidelines. By focusing on quality lending practices, Farmers & Merchants Bancshares aims to minimize risks associated with defaults and ensure stable financial performance.
What are the key factors to evaluate for FMBN?
Farmers & Merchants Bancshares, Inc. (FMBN) holds an AI score of 51/100 (moderate). Not financial advice.
How frequently does FMBN data refresh on this page?
FMBN prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven FMBN's recent stock price performance?
Farmers & Merchants Bancshares, Inc. (FMBN) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Long-standing history and reputation in the community. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FMBN overvalued or undervalued right now?
Valuing Farmers & Merchants Bancshares, Inc. (FMBN) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying FMBN?
Before investing in Farmers & Merchants Bancshares, Inc. (FMBN), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The financial data provided is based on the latest available information and may be subject to change.