Farmers and Merchants Bancshares, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net interest income of $3,623,306 compared to $3,415,687 a year ago. Income before income taxes was $1,456,261 compared to $1,634,015 a year ago. Net income was $1,409,836 or $0.85 per basic and diluted share compared to $1,081,074 or $0.66 per basic and diluted share a year ago. The increase of $328,762 was due to a $207,619 increase in net interest income and a $506,516 decrease in income taxes, offset by a $117,631 decrease in noninterest income, and an increase of $252,742 in noninterest expenses. For the year, the company reported net interest income of $14,005,377 compared to $13,515,755 a year ago. The increase in net interest income was due to an increase in average interest earning assets of $27 million, offset by a decline in the net yield of 20 basis points. Income before income taxes was $5,935,949 compared to $6,798,427 a year ago. Net income was $4,302,864 or $2.60 per basic and diluted share compared to $4,268,222 or $2.61 per basic and diluted share a year ago. The increase of $34,642 over 2015 was due to an increase in net interest income of $489,622 and a decrease in income taxes of $897,120, offset by a decrease in noninterest income of $521,063 and an increase in noninterest expense of $831,037. Return on average equity was 11.29% in 2016 compared to 12.26% in 2015. Return on average assets was 1.19% in 2016 compared to 1.29% in 2015.