--Net Loans Hit Record High of $3.07 Billion--
LONG BEACH, Calif.--(BUSINESS WIRE)--
Farmers & Merchants Bank of Long Beach (OTCBB: FMBL) today reported
financial results for the first quarter ended March 31, 2015.
“F&M’s lending team produced strong growth for the Bank in the 2015
first quarter, with net loans gaining four percent,” said Henry Walker,
president of Farmers & Merchants Bank. “Our commercial real estate and
construction loan portfolios experienced healthy gains, as the Bank
continues to help finance new business developments in the Southern
California economy.”
Income Statement
For the three months ended March 31, 2015, interest and dividend income
was $48.7 million, compared with $43.3 million in the first quarter of
2014. Interest expense for the 2015 first quarter was $1.7 million,
compared with $1.6 million in the same period a year ago.
Farmers & Merchants’ net interest income for the 2015 first quarter was
$46.9 million, compared with net interest income of $41.7 million for
the first quarter in 2014.
Farmers & Merchant’s net interest margin was 3.57% for the first quarter
ended March 31, 2015, compared with 3.40% at the end of the same period
last year.
The Bank did not have a provision for loan losses in the first quarter
of 2015, nor in 2014, amid continued strength in its loan portfolio. The
Bank’s allowance for loan losses as a percentage of loans outstanding
was 1.68% at March 31, 2015, compared with 1.98% at March 31, 2014, as
loan growth and loan quality remain strong.
Non-interest income was $7.0 million for the 2015 first quarter,
compared with $6.6 million in the 2014 first quarter.
Non-interest expense for the 2015 first quarter was $29.3 million,
versus $28.2 million for the same period last year.
The Bank’s net income for the 2015 first quarter advanced to $16.7
million, or $127.76 per diluted share, from $14.1 million, or $107.38
per diluted share, in the 2014 first quarter.
Balance Sheet
At March 31, 2015, net loans totaled $3.07 billion, compared with $2.96
billion at December 31, 2014. The Bank’s deposits totaled $4.18 billion
at the end of 2015 first quarter, compared with $4.20 billion at
December 31, 2014. Non-interest bearing deposits represented 37.8% of
total deposits at March 31, 2015, versus 37.3% of total deposits at
December 31, 2014. Total assets were to $5.56 billion at the close of
2015 first quarter, compared with $5.58 billion at December 31, 2014.
At March 31, 2015, Farmers & Merchants Bank remained “well-capitalized”
under all regulatory categories, with a total risk-based capital ratio
of 21.42%, a tier 1 risk-based capital ratio of 20.17%, a common equity
tier 1 capital ratio of 20.17%, and a tier 1 leverage ratio of 14.63%.
The minimum ratios for capital adequacy for a well-capitalized bank are
10.00%, 8.00%, 6.50% and 5.00%, respectively.
“As F&M’s loan portfolio makes steady gains, the Bank continues to
maintain a healthy balance sheet with robust capital ratios,” said
Daniel Walker, chief executive officer and chairman of the board.
“Additionally, we are enhancing the layouts of several branches to
improve the customer experience, as F&M strives to further solidify its
relationship with the communities it serves.”
About Farmers & Merchants Bank
Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank
has 24 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, |
| | | | 2015 |
|
|
| 2014 |
| | | | | | | |
|
| Interest and dividend income: | | | | | | | | |
| | | | | | | |
|
|
Loans
| | | |
$
|
35,197
| | | |
$
|
28,870
|
|
Investment securities
| | | | |
12,889
| | | | |
14,383
|
|
Investments in FHLB and FRB stock
| | | | |
499
| | | | |
6
|
|
Interest-bearing deposits in financial institutions
| | | |
|
92
| | | |
|
53
|
| | | | | | | |
|
|
Total interest and dividend income
| | | |
|
48,677
| | | |
|
43,312
|
| | | | | | | |
|
| Interest expense: | | | | | | | | |
| | | | | | | |
|
|
Deposits
| | | | |
1,480
| | | | |
1,348
|
|
Securities sold under repurchase agreements
| | | | |
267
| | | | |
274
|
|
Other borrowings
| | | |
|
-
| | | |
|
4
|
| | | | | | | |
|
|
Total interest expense
| | | |
|
1,747
| | | |
|
1,626
|
| | | | | | | |
|
|
Net interest income
| | | | |
46,930
| | | | |
41,686
|
| | | | | | | |
|
| Provision for loan losses | | | |
|
-
| | | |
|
-
|
| | | | | | | |
|
|
Net interest income after provision for loan losses
| | | |
|
46,930
| | | |
|
41,686
|
| | | | | | | |
|
| Non-interest income: | | | | | | | | |
| | | | | | | |
|
|
Service charges on deposit accounts
| | | | |
1,023
| | | | |
1,133
|
|
Gains on sale of securities available for sale
| | | | |
-
| | | | |
425
|
|
Other real estate owned income
| | | | |
1,315
| | | | |
165
|
|
Merchant bankcard income
| | | | |
2,285
| | | | |
2,274
|
|
Other income
| | | |
|
2,353
| | | |
|
2,585
|
| | | | | | | |
|
|
Total non-interest income
| | | |
|
6,976
| | | |
|
6,582
|
| | | | | | | |
|
| Non-interest expense: | | | | | | | | |
| | | | | | | |
|
|
Salaries and employee benefits
| | | | |
16,960
| | | | |
15,679
|
| FDIC and other insurance expense
| | | | |
789
| | | | |
752
|
|
Occupancy expense
| | | | |
1,993
| | | | |
1,772
|
|
Software and equipment expense
| | | | |
1,661
| | | | |
1,481
|
|
Other real estate owned expense
| | | | |
8
| | | | |
621
|
|
Amortization of public welfare investments
| | | | |
2,118
| | | | |
2,117
|
|
Merchant bankcard expense
| | | | |
1,983
| | | | |
1,787
|
|
Professional and legal services
| | | | |
870
| | | | |
944
|
|
Marketing expense
| | | | |
1,064
| | | | |
1,488
|
|
Other expense
| | | |
|
1,880
| | | |
|
1,553
|
| | | | | | | |
|
|
Total non-interest expense
| | | |
|
29,326
| | | |
|
28,194
|
| | | | | | | |
|
|
Income before income tax expense
| | | | |
24,580
| | | | |
20,074
|
| | | | | | | |
|
| Income tax expense | | | |
|
7,852
| | | |
|
6,015
|
| | | | | | | |
|
| Net income | | | | $ | 16,728 | | | | $ | 14,059 |
| | | | | | | |
|
|
Basic and diluted earnings per common share
| | | |
$
|
127.76
| | | |
$
|
107.38
|
|
|
|
|
| FARMERS & MERCHANTS BANK OF LONG BEACH |
| Balance Sheets (Unaudited) |
| (In thousands except share and per share data) |
|
|
|
|
|
| Mar. 31, 2015 |
|
|
| Dec. 31, 2014 |
| | | | | | | |
|
| Assets | | | | | | | | |
| | | | | | | |
|
|
Cash and due from banks:
| | | | | | | | |
|
Noninterest-bearing balances
| | | |
$
|
58,014
| | | | |
$
|
55,322
| |
|
Interest-bearing balances
| | | |
|
59,826
|
| | | |
|
137,826
|
|
| | | | | | | |
|
|
Total cash and due from banks
| | | | |
117,840
| | | | | |
193,148
| |
|
Securities available-for-sale, at fair value
| | | | |
210,866
| | | | | |
215,223
| |
|
Securities held-to-maturity, at amortized cost
| | | | |
1,944,155
| | | | | |
2,008,064
| |
|
Loans held for sale
| | | | |
8,839
| | | | | |
1,751
| |
|
Gross loans
| | | | |
3,129,844
| | | | | |
3,010,018
| |
|
Allowance for loan losses
| | | | |
(52,745
|
)
| | | | |
(50,804
|
)
|
|
Unamortized deferred loan fees, net
| | | |
|
(3,813
|
)
| | | |
|
(3,064
|
)
|
| | | | | | | |
|
|
Loans, net
| | | |
|
3,073,286
|
| | | |
|
2,956,150
|
|
| | | | | | | |
|
|
Other real estate owned, net
| | | | |
2,342
| | | | | |
3,406
| |
|
Investments in FHLB and FRB stock, at cost
| | | | |
28,440
| | | | | |
28,440
| |
|
Public welfare investments
| | | | |
42,717
| | | | | |
45,457
| |
|
Bank premises and equipment, net
| | | | |
85,074
| | | | | |
85,002
| |
|
Deferred tax assets, net
| | | | |
24,416
| | | | | |
23,829
| |
|
Other assets
| | | |
|
21,922
|
| | | |
|
20,769
|
|
| | | | | | | |
|
| Total assets | | | | $ | 5,559,897 |
| | | | $ | 5,581,239 |
|
| | | | | | | |
|
| | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | |
| | | | | | | |
|
| Liabilities: | | | | | | | | |
| | | | | | | |
|
|
Deposits:
| | | | | | | | |
|
Noninterest-bearing demand deposits
| | | |
$
|
1,581,967
| | | | |
$
|
1,567,046
| |
|
Interest-bearing demand deposits
| | | | |
470,425
| | | | | |
552,432
| |
|
Savings and money market savings
| | | | |
1,291,707
| | | | | |
1,228,584
| |
|
Time deposits
| | | |
|
838,104
|
| | | |
|
852,211
|
|
| | | | | | | |
|
|
Total deposits
| | | | |
4,182,203
| | | | | |
4,200,273
| |
|
Securities sold under repurchase agreements
| | | | |
527,390
| | | | | |
546,758
| |
|
Other liabilities
| | | |
|
29,722
|
| | | |
|
27,647
|
|
| | | | | | | |
|
| Total liabilities | | | |
| 4,739,315 |
| | | |
| 4,774,678 |
|
| | | | | | | |
|
| Stockholders' Equity: | | | | | | | | |
| | | | | | | |
|
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
| |
|
Retained earnings
| | | | |
703,739
| | | | | |
689,892
| |
|
Accumulated other comprehensive income
| | | |
|
2,180
|
| | | |
|
2,006
|
|
| | | | | | | |
|
| Total stockholders' equity | | | |
| 820,582 |
| | | |
| 806,561 |
|
| | | | | | | |
|
| Total liabilities and stockholders' equity | | | | $ | 5,559,897 |
| | | | $ | 5,581,239 |
|
|
|
Farmers & Merchants Bank of Long Beach
John Hinrichs,
562-437-0011, ext. 4835
Executive Vice President
or
PondelWilkinson
Inc.
Evan Pondel, 310-279-5980
Investor Relations
investor@pondel.com
Source: Farmers & Merchants Bank of Long Beach