News Details

LONG BEACH, Calif.--(BUSINESS WIRE)-- Farmers & Merchants Bank of Long Beach (“F&M” or the “Bank”) (OTCQX: FMBL) today reported financial results for the first quarter ended March 31, 2025.

“I am proud of F&M’s results for the 2025 first quarter, which exhibited the Bank’s resiliency during an increasingly challenging and unsettled external environment,” said W. Henry Walker, Chief Executive Officer of F&M Bank. “Our performance benefited from F&M’s legacy of prudent fiscal management and culture of safety and service excellence. We are proceeding into 2025 from a position of strength, with a healthy balance sheet, capital ratios that continue to far exceed regulatory requirements, and a talented, committed team of banking professionals throughout our organization.”

Daniel Walker, F&M’s Executive Chairman, added, “While heightened uncertainty in the general economy is taking center stage, F&M continues to uphold its core values as it has for the past 118 years through all economic cycles. We will continue do the right thing for our depositors and borrowers, our investors, and for all of our stakeholders in the communities we serve.”

Operating Results

For the first quarter of 2025, total interest and dividend income amounted to $104.7 million, compared with $108.6 million in the first quarter of 2024. Total interest expense for the first quarter of 2025 was $40.6 million, compared with $51.2 million a year ago.

Net interest income before recapture of provision for credit losses for the 2025 first quarter rose to $64.1 million, from $57.4 million for the first quarter of 2024. F&M’s net interest margin improved to 2.28% for the first quarter of 2025, from 1.91% for the first quarter of 2024.

For the first quarter of 2025, the Bank recorded a $2.0 million recapture of provision for credit losses, compared with a $2.5 million recapture of provision for credit losses in the first quarter of 2024.

Total non-interest income was $4.3 million for the first quarter of 2025, compared with non-interest income of $8.2 million last year. Total non-interest expense for the first quarter of 2025 was $48.0 million, compared with $50.1 million for the first quarter of 2024.

First quarter 2025 net income increased to $16.8 million, or $136.27 per diluted share, from $13.0 million, or $102.71 per diluted share for the first quarter of 2024.

Balance Sheet

Gross loans were $6.43 billion as of March 31, 2025, compared with $6.47 billion at December 31, 2024. The Bank’s allowance for loan losses totaled $96.6 million, or 1.50% of loans held-for-investment at both March 31, 2025 and December 31, 2024.

The Bank’s total deposits at March 31, 2025 amounted to $8.70 billion, compared with $8.77 billion at December 31, 2024. Noninterest-bearing deposits represented 34.3% of total deposits at March 31, 2025, and 33.2% at December 31, 2024.

Securities sold under repurchase agreements decreased to $960.5 million at March 31, 2025, from $991.9 million at December 31, 2024. Borrowings were $400.0 million at March 31, 2024, a decrease of $100.0 million from $500.0 million at December 31, 2024.

Total assets at March 31, 2025 were $11.49 billion, compared with $11.69 billion at December 31, 2024. Total stockholders’ equity was $1.38 billion at March 31, 2025, up from $1.37 billion at December 31, 2024.

Capital

All of F&M’s regulatory capital ratios are well in excess of regulatory requirements for a “well-capitalized” financial institution. The Bank’s total risk-based capital ratio was 19.16%; its tier 1 risk-based capital ratio was 17.91%, with a common equity tier 1 capital ratio of 17.91%, and a tier 1 leverage ratio of 11.89%, as of March 31, 2025. The minimum ratios for capital adequacy for a “well-capitalized” bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively.

Stock Repurchase Program

During the three months ended March 31, 2025, the Bank repurchased 704 shares of its common stock for $4.0 million on the open market at an average repurchase price of $5,661.92 per share. Under the stock purchase program, the Bank may purchase shares of its common stock through various means, including open market transactions and privately negotiated transactions, in each case, subject to applicable requirements and laws.

To the extent the Bank repurchases shares, the number of shares repurchased and the timing of any repurchases will depend on a number of factors, including, but not limited to, stock price, trading volume, regulatory requirements, general business conditions and other factors. The Bank may choose to modify, suspend or discontinue such proposed purchases at any time and anticipates that any such repurchases will be funded from existing cash and cash equivalents or future cash flow. The stock repurchase program does not obligate the Bank to repurchase any specific number of shares in any particular period.

About Farmers & Merchants Bank of Long Beach

Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank provides white-glove service to clients at 27 branches from San Clemente to Santa Barbara, as well as through its Online and Mobile Banking platforms. The Bank offers 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.