LONG BEACH, Calif.--(BUSINESS WIRE)--Farmers & Merchants Bank of Long Beach (OTCQB: FMBL) today reported financial results for the first quarter ended March 31, 2018.
“F&M achieved strong first-quarter financial results, as we posted solid gains in interest and dividend income, while also decreasing our non-interest expenses,” said Henry Walker, president of Farmers & Merchants Bank. “At the same time, we continued to invest in F&M’s infrastructure, as the Bank grows and enhances its presence in Southern California.”
For the three months ended March 31, 2018, interest and dividend income rose to $61.7 million from $57.4 million a year ago. Interest expense for the 2018 first quarter was $4.4 million, compared with $3.1 million in the same period last year.
Farmers & Merchants’ net interest income for the 2018 first quarter increased to $57.3 million from $54.3 million for the first quarter of 2017.
Farmers & Merchants’ net interest margin was 3.37% for the first quarter ended March 31, 2018, compared with 3.42% at the end of the same period last year.
The Bank did not have a loan loss provision in the first quarter of 2018, nor in the first quarter of 2017. The Bank’s allowance for loan losses as a percentage of loans outstanding was 1.51% at March 31, 2018, compared with 1.58% at March 31, 2017.
Non-interest income was $6.8 million for the 2018 first quarter, compared with $9.1 million for the 2017 first quarter. Non-interest expense for the 2018 first quarter was $35.2 million, versus $36.7 million for the same period last year.
The Bank’s net income for the 2018 first quarter advanced to $21.0 million, or $160.65 per diluted share, from $20.2 million, or $154.11 per diluted share, in the 2017 first quarter.
At March 31, 2018, net loans totaled $3.88 billion, compared with $3.83 billion at December 31, 2017. The Bank’s total deposits rose to $5.47 billion at the end of the 2018 first quarter from $5.39 billion at December 31, 2017. Non-interest bearing deposits represented 37.9% of total deposits at March 31, 2018, versus 37.6% of total deposits at December 31, 2017. Total assets grew to $7.11 billion at the close of the 2018 first quarter from $6.99 billion at December 31, 2017.
At March 31, 2018, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 20.23%, a tier 1 risk-based capital ratio of 18.98%, a common equity tier 1 capital ratio of 18.98%, and a tier 1 leverage ratio of 13.80%. 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 first-quarter asset size of more than $7 billion represents a new milestone for the Bank, which we accomplished by adhering to our sound, conservative management and operating practices,” said Daniel Walker, chief executive officer and chairman of the board. “Strong and steady growth have long been hallmarks of F&M, and we remain focused on this strategy in the Bank’s 111th year of serving its community.”
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||356||446|
|Interest-bearing deposits in financial institutions||353||139|
|Total interest and dividend income||61,683||57,414|
|Securities sold under repurchase agreements||1,503||763|
|Total interest expense||4,360||3,120|
|Net interest income||57,323||54,294|
|Provision for loan losses||-||-|
|Net interest income after provision for loan losses||57,323||54,294|
|Service charges on deposit accounts||1,026||959|
|Other real estate owned income||-||17|
|Merchant bankcard income||2,881||2,612|
|Total non-interest income||6,794||9,090|
|Salaries and employee benefits||22,096||21,002|
|FDIC and other insurance expense||653||632|
|Software and equipment expense||2,571||1,976|
|Other real estate owned expense||22||30|
|Merchant bankcard expense||2,321||2,151|
|Professional and legal services||1,196||75|
|Total non-interest expense||35,216||36,651|
|Income before income tax expense||28,901||26,733|
|Income tax expense||7,867||6,556|
|Basic and diluted earnings per common share||$||160.65||$||154.11|
|FARMERS & MERCHANTS BANK OF LONG BEACH|
|Balance Sheets (Unaudited)|
|(In thousands except share and per share data)|
|Mar. 31, 2018||Dec. 31, 2017|
|Cash and due from banks:|
|Total cash and due from banks||183,315||100,116|
|Securities available-for-sale, at fair value||163,616||187,102|
|Securities held-to-maturity, at amortized cost||2,683,559||2,657,796|
|Loans held for sale||12,735||15,038|
|Allowance for loan losses||(59,508||)||(59,502||)|
|Unamortized deferred loan fees, net||(6,175||)||(5,611||)|
|Investments in FHLB and FRB stock, at cost||20,690||20,690|
|Bank premises and equipment, net||96,520||95,550|
|Deferred tax assets, net||21,093||20,726|
|Liabilities and Stockholders' Equity|
|Noninterest-bearing demand deposits||$||2,076,834||$||2,026,237|
|Interest-bearing demand deposits||1,014,021||925,308|
|Savings and money market savings||1,616,483||1,643,859|
|Securities sold under repurchase agreements||641,793||614,410|
Common Stock, par value $20; authorized 250,000 shares; issued and outstanding 130,928 shares
|Additional paid-in capital||112,044||112,044|
|Accumulated other comprehensive income||(1,044||)||87|
|Total stockholders' equity||976,012||959,120|
|Total liabilities and stockholders' equity||$||7,114,221||$||6,991,578|