LONG BEACH, Calif.--(BUSINESS WIRE)--Farmers & Merchants Bank of Long Beach (OTCQB: FMBL) today reported financial results for the first quarter ended March 31, 2017.
“First-quarter financial results reflect strong growth in our loan portfolio, in addition to continued investments in technology and human capital, as we further enhance the deployment of F&M’s products and services in our 110th year of serving Southern California,” said Henry Walker, president of Farmers & Merchants Bank. “Prudent maintenance of the Bank’s financial health, including targeted investments in renewable energy resulting in a significant reduction of income tax expense, remains a cornerstone of the Bank’s ongoing business strategy.”
For the three months ended March 31, 2017, interest and dividend income rose to $57.4 million from $54.9 million a year ago. Interest expense for the 2017 first quarter was $3.1 million, compared with $2.4 million in the same period last year.
Farmers & Merchants’ net interest income for the 2017 first quarter increased to $54.3 million from $52.5 million for the first quarter of 2016.
Farmers & Merchants’ net interest margin was 3.42% for the first quarter ended March 31, 2017, compared with 3.60% at the end of the same period last year.
The Bank did not have a loan loss provision in the first quarter of 2017, nor in the first quarter of 2016. The Bank’s allowance for loan losses as a percentage of loans outstanding was 1.58% at March 31, 2017, compared with 1.70% at March 31, 2016.
Non-interest income was $9.1 million for the 2017 first quarter, compared with $6.3 million for the 2016 first quarter. Non-interest expense for the 2017 first quarter was $36.7 million, versus $31.9 million for the same period last year.
The Bank’s net income for the 2017 first quarter advanced to $20.2 million, or $154.11 per diluted share, from $18.1 million, or $138.28 per diluted share, in the 2016 first quarter.
At March 31, 2017, net loans totaled $3.54 billion, compared with $3.40 billion at December 31, 2016. The Bank’s total deposits rose to $5.22 billion at the end of the 2017 first quarter from $5.12 billion at December 31, 2016. Non-interest bearing deposits represented 39.3% of total deposits at March 31, 2017, versus 37.7% of total deposits at December 31, 2016. Total assets grew to $6.83 billion at the close of the 2017 first quarter from $6.73 billion at December 31, 2016.
At March 31, 2017, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 20.81%, a tier 1 risk-based capital ratio of 19.56%, a common equity tier 1 capital ratio of 19.56%, and a tier 1 leverage ratio of 13.72%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively.
“F&M’s strong first-quarter results are a testament to fundamentals that have contributed to the Bank’s financial health since its inception in 1907, including conservative lending practices and a robust balance sheet,” said Daniel Walker, chief executive officer and chairman of the board. “As F&M’s asset size continues to grow, we remain steadfast in our commitment to the core values our clients know and trust.”
About Farmers & Merchants Bank
Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank has 24 branches across Orange County, Long Beach and the South Bay. The Bank specializes in commercial and small business banking, business loan programs, home loans, and a robust offering of consumer retail banking products, including checking, savings and youth accounts. Farmers & Merchants Bank 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 the website, www.fmb.com.
|FARMERS & MERCHANTS BANK OF LONG BEACH|
|Income Statements (Unaudited)|
|(In thousands except per share data)|
|Three Months Ended March 31,|
|Interest and dividend income:|
|Investments in FHLB and FRB stock||446||399|
|Interest-bearing deposits in financial institutions||139||153|
|Total interest and dividend income||57,383||54,912|
|Securities sold under repurchase agreements||763||440|
|Total interest expense||3,120||2,370|
|Net interest income||54,263||52,542|
|Provision for loan losses||-||-|
|Net interest income after provision for loan losses||54,263||52,542|
|Service charges on deposit accounts||959||1,008|
|Other real estate owned income||17||12|
|Merchant bankcard income||2,612||2,423|
|Total non-interest income||9,121||6,268|
|Salaries and employee benefits||21,002||19,026|
|FDIC and other insurance expense||632||858|
|Software and equipment expense||1,976||1,776|
|Other real estate owned expense||30||(43||)|
|Merchant bankcard expense||2,151||1,837|
|Professional and legal services||75||1,027|
|Total non-interest expense||36,651||31,863|
|Income before income tax expense||26,733||26,947|
|Income tax expense||6,556||8,842|
|Basic and diluted earnings per common share||$||154.11||$||138.28|
|FARMERS & MERCHANTS BANK OF LONG BEACH|
|Balance Sheets (Unaudited)|
|(In thousands except share and per share data)|
|Mar. 31, 2017||Dec. 31, 2016|
|Cash and due from banks:|
|Total cash and due from banks||153,479||148,715|
|Securities available-for-sale, at fair value||204,306||182,320|
|Securities held-to-maturity, at amortized cost||2,718,760||2,762,877|
|Loans held for sale||4,044||6,080|
|Allowance for loan losses||(56,954||)||(56,867||)|
|Unamortized deferred loan fees, net||(5,183||)||(5,314||)|
|Other real estate owned, net||-||791|
|Investments in FHLB and FRB stock, at cost||20,690||20,690|
|Bank premises and equipment, net||89,710||87,775|
|Deferred tax assets, net||29,151||30,281|
|Liabilities and Stockholders' Equity|
|Noninterest-bearing demand deposits||$||2,049,161||$||1,931,931|
|Interest-bearing demand deposits||803,824||868,380|
|Savings and money market savings||1,512,568||1,460,669|
|Securities sold under repurchase agreements||611,577||540,035|
|Common Stock, par value $20; authorized 250,000|
|shares; issued and outstanding 130,928 shares||2,619||2,619|
|Additional paid-in capital||112,044||112,044|
|Accumulated other comprehensive income||770||463|
|Total stockholders' equity||927,786||910,313|
|Total liabilities and stockholders' equity||$||6,834,068||$||6,729,058|