First Farmers and MerchantsFFMH 64 Return-on-Tangible-Equity is 13.36% as of Mar. 2026, which is 4% above its 10-year median of 12.79. GuruFocus rates FFMH with a GF Score™ of 64/100 and a GF Value™ of $45.43 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,523 Banks companies, First Farmers and Merchants ranks better than 59.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. First Farmers and Merchants's annualized net income for the quarter that ended in Mar. 2026 was $21.85 Mil. First Farmers and Merchants's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $163.56 Mil. Therefore, First Farmers and Merchants's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.36%.
The historical rank and industry rank for First Farmers and Merchants's Return-on-Tangible-Equity or its related term are showing as below:
FFMH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.92 Med: 12.79 Max: 15.84
Current: 12.77
During the past 8 years, First Farmers and Merchants's highest Return-on-Tangible-Equity was 15.84%. The lowest was 9.92%. And the median was 12.79%.
FFMH's Return-on-Tangible-Equity is ranked better than 59.29% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs FFMH: 12.77
First Farmers and Merchants (OTCPK:FFMH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
First Farmers and Merchants Return-on-Tangible-Equity Related Terms
First Farmers and Merchants Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First Farmers and Merchants Return-on-Tangible-Equity Chart
FFMH vs PEBK, OPBK, CZWI: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, First Farmers and Merchants's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Farmers and Merchants Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, First Farmers and Merchants's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where First Farmers and Merchants's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.36% mean?
First Farmers and Merchants (FFMH) has a Return-on-Tangible-Equity of 13.36% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Farmers and Merchants and its competitors. This is near median its historical median of 12.79. Over the past decade, First Farmers and Merchants' Return-on-Tangible-Equity has ranged from 9.92 to 15.84. According to the industry distribution chart, First Farmers and Merchants ranks #620 out of 1523 companies in the Banks industry, placing it in the top 40.7%.
Is First Farmers and Merchants' Return-on-Tangible-Equity too high?
First Farmers and Merchants' current Return-on-Tangible-Equity of 13.36% is near median its 10-year median of 12.79. Over the past 10 years, this metric has ranged from a low of 9.92 to a high of 15.84. The Banks industry median Return-on-Tangible-Equity is 11.20. First Farmers and Merchants' value of 13.36% is 19.3% above this industry median. Based on the distribution chart, First Farmers and Merchants ranks #620 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, First Farmers and Merchants has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Farmers and Merchants' Return-on-Tangible-Equity compare to PEBK and OPBK?
According to the Banks industry distribution chart, First Farmers and Merchants ranks #620 out of 1523 companies for Return-on-Tangible-Equity. This puts First Farmers and Merchants in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. First Farmers and Merchants' value of 13.36% is 19.3% above this benchmark. Historically, First Farmers and Merchants' own Return-on-Tangible-Equity has ranged from 9.92 to 15.84 over the past decade. While the company's 10-year median is 12.79 vs. the industry median of 11.20, First Farmers and Merchants has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Farmers and Merchants's current Return-on-Tangible-Equity of 13.36% is 19.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Farmers and Merchants and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Farmers and Merchants's current Return-on-Tangible-Equity is 13.36%, which is near median its own 10-year median of 12.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Farmers and Merchants stock overvalued right now?
Based on GuruFocus' analysis, First Farmers and Merchants (FFMH) is currently considered Modestly Overvalued. The stock's GF Value™ is $45.43, compared to a current price of $57.75 — trading 27.1% above its estimated fair value. The current Return-on-Tangible-Equity is 13.36%, which is near median its 10-year median of 12.79 and 19.3% above the Banks industry median of 11.20. First Farmers and Merchants' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For First Farmers and Merchants (FFMH), the current Return-on-Tangible-Equity is 13.36% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Farmers and Merchants (FFMH) Overvalued in 2026?
Based on GuruFocus' analysis, First Farmers and Merchants stock appears to be overvalued.
The current stock price of $57.75 is trading 27.1% above its estimated GF Value™ of $45.43.
GuruFocus considers First Farmers and Merchants to be Modestly Overvalued.
Key valuation signals for FFMH:
Return-on-Tangible-Equity: 13.36% (near median its 10-year median of 12.79)
GF Value™: $45.43 vs. price of $57.75 (27.1% above fair value)
Industry Position: 19.3% above the Banks median (#620 of 1523)
No single metric tells the full story. See the FFMH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Farmers and Merchants Corp is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary. The Bank is engaged in providing a full range of banking and financial services, including lending, investing of funds, obtaining deposits, trust, and wealth management operations, and other financing activities to individual and corporate customers in the Middle Tennessee area. The Bank is subject to competition from other financial institutions. It has one reportable segment, which is banking and financial services.
64GF Score
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