LONG BEACH, Calif.--(BUSINESS WIRE)--Farmers & Merchants Bank of Long Beach (OTCQB: FMBL) today reported financial results for the first quarter ended March 31, 2014.
“Interest income was up 9 percent in the first quarter, demonstrating the solid traction that the Bank’s recently expanded lending and retail teams continue to achieve,” said Henry Walker, president of Farmers & Merchants Bank of Long Beach. “As we grow our topline, we maintain a long-term view that investing in the Bank’s people and infrastructure will help us achieve new heights and provide superior service to new and existing clients.”
For the three months ended March 31, 2014, interest income advanced to $43.3 million from $39.6 million in the first quarter of 2013. Interest expense for the 2014 first quarter was $1.6 million, compared with $1.5 million last year.
Net interest income for the 2014 first quarter rose to $41.7 million from $38.1 million for the first quarter of 2013. Farmers & Merchants’ net interest margin was 3.40% for the 2014 first quarter, compared with 3.28% a year ago.
The Bank did not have a provision for loan losses in the first quarter of 2014, nor in the same period a year ago, reflecting the continued strength of the loan portfolio. The Bank’s allowance for loan losses as a percentage of loans outstanding was 1.98% at March 31, 2014, compared with 2.50% at March 31, 2013; the decrease being indicative of loan growth, coupled with strong loan quality.
Non-interest income was $6.6 million for the 2014 first quarter, compared with $10.2 million for the first quarter a year ago. Non-interest income for the 2013 first quarter included a $3.6 million gain on the sale of a branch building.
Non-interest expense for the 2014 first quarter was $28. 2 million, compared with $23.8 million for the same period last year. The increase in the 2014 first quarter is reflective of investments in talent and human capital, new awareness and customer-generation marketing campaigns and other real estate owned expenses.
Net income for the 2014 first quarter totaled $14.1 million, or $107.38 per diluted share, compared with net income of $16.7 million, or $127.77 per diluted share, for the 2013 first quarter.
At March 31, 2014, net loans increased to $2.53 billion from $2.40 billion at December 31, 2013. The Bank’s deposits totaled $3.98 billion at the end of the 2014 first quarter, compared with $3.83 billion at December 31, 2013. Non-interest bearing deposits represented 39.1% of total deposits at March 31, 2014, versus 38.5% of total deposits at December 31, 2013. Total assets increased to $5.36 billion at the close of the 2014 first quarter from $5.21 billion at December 31, 2013.
Additional paid-in capital was $112.04 million at March 31, 2014, versus $12.04 million at the end of 2013, reflecting a transfer of $100 million from retained earnings to additional paid-in capital for regulatory purposes regarding investments in bank premises.
At March 31, 2014, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 25.36%, a Tier 1 risk-based capital ratio of 24.10%, and a Tier 1 leverage ratio of 14.60%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 6.00% and 5.00%, respectively.
“F&M’s solid loan growth and the sound and stable characteristics of its balance sheet are indicative of the strategic initiatives and core fundamentals that ultimately enhance the Bank’s position of strength,” said Daniel Walker, chief executive officer and chairman of the board. “Now in F&M’s 107th year of service, we continue to maintain the Bank’s bedrock values, while expanding our presence and preparing for future growth. We are very proud of our continued standing as one of California's strongest banks.”
About Farmers & Merchants Bank of Long Beach
Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank has 23 branches in Los Angeles and Orange Counties. The Bank specializes in commercial and small business banking along with business loan programs. Farmers & Merchants Bank of Long Beach is a California state chartered bank with deposits insured by the Federal Deposit Insurance Corporation (Member FDIC) and an Equal Housing Lender. For more information about F&M, please visit www.fmb.com.
|FARMERS & MERCHANTS BANK OF LONG BEACH|
|Income Statements (Unaudited)|
|(In thousands except per share data)|
|Three Months Ended March 31,|
|Deposits with banks||53||207|
|Total interest income||43,306||39,635|
|Federal funds purchased||4||-|
|Securities sold under repurchase agreements||274||273|
|Total interest expense||1,626||1,534|
|Net interest income||41,680||38,101|
|Provision for loan losses||-||-|
|Net interest income after provision for loan losses||41,680||38,101|
|Service charges on deposit accounts||1,133||1,154|
|Gains on sale of securities||425||536|
|Other real estate owned income||165||310|
|Merchant bankcard income||2,274||2,174|
|Total non-interest income||6,588||10,240|
|Salaries and employee benefits||15,679||13,340|
|FDIC and other insurance expense||752||1,692|
|Other real estate owned expense||621||(817||)|
|Amortization of public welfare investments||2,117||2,020|
|Merchant bankcard expense||1,787||1,721|
|Legal and professional services||944||748|
|Total non-interest expense||28,194||23,773|
|Income before income tax expense||20,074||24,568|
|Income tax expense||6,015||7,839|
|Basic and diluted earnings per common share||$||107.38||$||127.77|
|FARMERS & MERCHANTS BANK OF LONG BEACH|
|Balance Sheets (Unaudited)|
|(In thousands except share and per share data)|
|Mar. 31, 2014||Dec. 31, 2013|
|Cash and due from banks:|
|Loan held for sale||263||465|
|Less allowance for loan losses||(51,280||)||(51,251||)|
|Less unamortized deferred loan fees, net||(1,663||)||(1,704||)|
|Other real estate owned,net||13,237||14,502|
|Public welfare investments||53,016||27,722|
|Bank premises and equipment, net||65,429||66,212|
|Net deferred tax assets||23,664||23,512|
|Liabilities and Stockholders' Equity|
|Demand, non-interest bearing||$||1,556,932||$||1,475,888|
|Demand, interest bearing||416,942||413,291|
|Savings and money market savings||1,145,556||1,080,774|
|Securities sold under repurchase agreements||564,923||595,991|
Common Stock, par value $20; authorized 250,000 shares; issued and outstanding 130,928 shares
|Additional paid-in capital||112,044||12,044|
|Accumulated other comprehensive income||2,320||2,096|
|Total stockholders' equity||770,570||759,167|
|Total liabilities and stockholders' equity||$||5,356,808||$||5,214,586|