Farmers and Merchants Bancshares Inc., the parent of Farmers and Merchants Bank announced that net income for the nine months ended Sept. 30 was $3,132,902, or $1.89 per common share, compared to $2,893,028, or $1.75 per common share, for the same period in 2016, an increase of $239,874. The bank's return on average equity during the nine months ended Sept. 30 was 10.29 percent compared to 10.19 percent during the same period in 2016. The bank's return on average assets was 1.06 percent for the nine months ended Sept. 30 compared to 1.08 percent for the same period of 2016. Total assets of $398 million at Sept. 30 increased from $380 million at Dec. 31, 2016. Loans increased to $320 million at Sept. 30, compared to $295 million at Dec. 31, 2016, an increase of 8 percent.