LONG BEACH, Calif.--(BUSINESS WIRE)--
Farmers & Merchants Bank of Long Beach (OTCBB:FMBL) today reported
financial results for the third quarter ended September 30, 2009.
"Results for the third quarter were positive, despite the continuing
challenges in the general economy," said Henry Walker, chief executive
officer of Farmers & Merchants Bank of Long Beach. "We have experienced
a level of stabilization in our loan portfolio, as we continue to
maintain a conservative approach with regard to lending practices.
"These times call for closely monitoring all aspects of our business
while we further our fundamental objective to continuously improve the
customer experience, whether in person or online," Walker added.
Income Statement
For the 2009 third quarter, interest income increased 5.7% to $48.0
million from $45.4 million in the comparable prior-year period,
principally reflecting growth in the Bank's loan portfolio and
investment securities. Interest income for the nine-month period ended
September 30, 2009 rose to $142.7 million, from $135.4 million reported
for the same period in 2008.
Interest expense for the 2009 third quarter declined to $4.3 million,
from $8.9 million for the third quarter of 2008, primarily related to
the declining interest rate environment. Interest expense for the
nine-month period ended September 30, 2009 declined to $14.6 million,
from $28.0 million for the year-to-date period in 2008.
Net interest income for the 2009 third quarter rose 19.7% to $43.6
million from $36.4 million for the third quarter of 2008. Net interest
income increased to $128.1 million for the first nine months of 2009,
from $107.5 million for the same period in 2008.
The Bank's provision for loan losses was $7.7 million for the third
quarter of 2009, compared with $10.0 million in the second quarter of
2009, and $19.5 million in the third quarter of 2008. Provision for loan
losses totaled $25.7 million for the first nine months of 2009, versus
$29.3 million for the same period in 2008. The Bank's allowance for loan
losses as a percentage of loans outstanding was 2.92% at September 30,
2009, compared with 2.75% at June 30, 2009.
Non-interest income was $3.3 million for the 2009 third quarter, versus
$3.5 million for the third quarter a year ago. Non-interest income was
$9.5 million for the first nine months of 2009, compared with $11.0
million for the same period in 2008.
Non-interest expense for the 2009 third quarter was $19.8 million,
versus $14.8 million for the same period a year ago. Non-interest
expense for the nine-month period ended September 30, 2009 was $60.3
million, compared with $46.7 million for the same period a year ago. The
increase in non-interest expense was principally attributable to other
real estate owned expenses and significantly higher FDIC insurance
premiums following the failure of a number of U.S. banks.
The Bank's net income for the 2009 third quarter rose to $11.4 million,
or $87.35 per diluted share, from $4.0 million, or $30.24 per diluted
share, in the same period a year ago. The Bank's net income for the
first nine months of 2009 increased to $30.6 million, or $233.51 per
diluted share, from $26.8 million, or $195.06 per diluted share for the
same period in 2008.
Balance Sheet
At September 30, 2009, net loans increased to $1.97 billion from $1.95
billion at December 31, 2008. The Bank's deposits totaled $2.82 billion
at the end of the 2009 third quarter, up from $2.68 billion at December
31, 2008. Non-interest bearing deposits represented 30.7% of total
deposits at September 30, 2009, versus 30.3% of total deposits at
December 31, 2008. Total assets increased to $3.94 billion at the close
of the 2009 third quarter, compared with $3.64 billion at December 31,
2008.
At September 30, 2009, Farmers & Merchants Bank remained
"well-capitalized" under all regulatory categories, with a total
risk-based capital ratio of 26.46%, a Tier 1 risk-based capital ratio of
25.19%, and a Tier 1 leverage ratio of 14.30%. The minimum ratios for
capital adequacy for a well-capitalized bank are 10.00%, 6.00% and
5.00%, respectively.
"Our balance sheet reflects the sound strategies that have been in place
at Farmers & Merchants Bank for more than a century," said Daniel
Walker, president and chairman of the board. "The Bank's strong capital
ratios represent management's dedication to serving in the best
interests of our customers and shareholders at a time when liquidity is
a highly valued attribute in our industry."
About Farmers & Merchants Bank of Long Beach
Farmers & Merchants Bank of Long Beach provides personal and business
banking services through 22 offices in Los Angeles and Orange Counties.
Founded in 1907 by C.J. Walker, the Bank specializes in commercial and
small business banking along with business loan programs.
FARMERS & MERCHANTS BANK OF LONG BEACH
Balance Sheets (unaudited)
Sept. 30, 2009 Dec. 31, 2008
Assets
Cash and due from banks:
Noninterest-bearing balances $ 55,039,793 $ 59,028,599
Interest-bearing balances 90,115,934 150,668,294
Investment securities 1,701,437,709 1,386,358,588
Gross loans 2,033,454,284 2,000,951,253
Allowance for loan losses (59,380,003 ) (53,794,344 )
Net loans 1,974,074,281 1,947,156,909
Bank premises and equipment 53,365,215 55,531,620
Other real estate owned 21,333,246 -
Accrued interest receivable 17,099,346 14,853,715
Other assets 30,376,945 23,674,204
Total assets $ 3,942,842,469 $ 3,637,271,929
Liabilities and stockholders' equity
Liabilities:
Deposits:
Demand, non-interest bearing $ 866,629,609 $ 809,671,161
Demand, interest bearing 232,443,425 225,485,095
Savings and money market savings 621,962,707 507,521,371
Time deposits 1,097,655,374 1,133,141,414
Total deposits 2,818,691,115 2,675,819,041
Federal funds purchased 5,000,000 -
Securities sold under agreements to 516,901,275 393,201,735
repurchase
Accrued interest payable and other 17,423,675 7,329,241
liabilities
Total liabilities 3,358,016,065 3,076,350,017
Stockholders' Equity:
Common Stock, par value $20; authorized
250,000 shares; issued and outstanding 2,618,560 2,618,560
130,928 shares
Surplus 12,043,783 12,043,783
Retained earnings 558,999,056 536,674,669
Other comprehensive income 11,165,005 9,584,900
Total stockholders' equity 584,826,404 560,921,912
Total liabilities and stockholders' equity $ 3,942,842,469 $ 3,637,271,929
FARMERS & MERCHANTS BANK OF LONG BEACH
Income Statements (unaudited)
Three Months ended Sept. 30, Nine Months ended Sept. 30,
2009 2008 2009 2008
Interest income:
Loans $ 30,452,442 $ 28,944,210 $ 91,565,448 $ 84,889,034
Securities held 12,776,531 10,828,806 36,767,590 33,307,788
to maturity
Securities
available for 4,544,140 5,038,316 13,985,412 15,441,753
sale
Federal funds - 572,637 - 1,803,207
sold
Deposits with 178,870 - 369,813 -
banks
Total interest 47,951,983 45,383,969 142,688,263 135,441,782
income
Interest expense:
Deposits 3,595,670 7,169,001 12,586,435 21,045,916
Securities sold
under agreement 726,658 1,766,395 2,008,286 6,903,900
to repurchase
Federal funds - 1,936 - 11,596
purchased
Total interest 4,322,328 8,937,332 14,594,721 27,961,412
expense
Net interest 43,629,655 36,446,637 128,093,542 107,480,370
income
Provision for 7,700,000 19,512,368 25,700,000 29,250,101
loan losses
Net interest
income after 35,929,655 16,934,269 102,393,542 78,230,269
provision for
loan losses
Non-interest
income:
Service charges
on deposit 1,443,983 1,536,537 4,403,680 4,403,609
accounts
Merchant bankcard 331,265 421,477 893,290 1,129,247
fees
Escrow fees 228,592 288,082 521,217 944,405
Other 1,320,718 1,230,536 3,651,444 4,531,711
Total
non-interest 3,324,558 3,476,632 9,469,631 11,008,972
income
Non-interest
expense:
Salaries and 10,009,980 9,040,295 30,133,043 29,793,658
employee benefits
FDIC and other 1,377,380 565,357 5,365,458 884,657
insurance expense
Occupancy expense 1,663,530 1,525,944 4,556,385 4,162,140
Equipment expense 1,240,237 1,095,396 3,739,455 3,106,125
Other real estate
owned expense, 3,209,810 - 8,625,041 -
net
Legal and 579,433 563,856 1,658,906 1,888,107
professional fees
Marketing and
promotional 389,119 526,950 1,401,614 1,896,540
expense
Printing and 225,997 201,690 727,317 748,292
supplies
Postage and 309,435 353,590 984,179 988,168
delivery
Other 807,239 913,214 3,080,519 3,258,663
Total
non-interest 19,812,160 14,786,292 60,271,917 46,726,350
expense
Income before
income tax 19,442,053 5,624,610 51,591,256 42,512,891
expense
Income tax 8,006,120 1,666,384 21,018,404 15,721,105
expense:
Net income $ 11,435,933 $ 3,958,225 $ 30,572,852 $ 26,791,786
Basic earnings $ 87.35 $ 30.24 $ 233.51 $ 195.06
per common share
Diluted earnings $ 87.35 $ 30.24 $ 233.51 $ 195.06
per common share
Source: Farmers & Merchants Bank of Long Beach
Contact: Farmers & Merchants Bank of Long Beach
John Hinrichs, Executive Vice President
562-437-0011, ext. 5035
or
PondelWilkinson Inc.
Corporate and Investor Relations
Evan Pondel, 310-279-5980
investor@pondel.com