Farmers & Merchants Bank of Long Beach Reports First Quarter 2022 Results
Farmers & Merchants Bank of Long Beach Reports First Quarter 2022 Results

LONG BEACH, Calif.–(BUSINESS WIRE)–Farmers & Merchants Bank of Long Beach (“F&M” or the “Bank”) (OTCQB: FMBL) today released its financial results for the quarter ended March 31, 2022.

“F&M performed well in the first quarter of 2022, despite the rigors of a difficult economic climate, characterized by low interest rates, geopolitical uncertainty and the lingering effects of the pandemic,” said Henry Walker, president of Farmers & Merchants Bank of Long Beach. . “We are pleased that core deposits continued to grow, as did our total assets, both of which reached record levels.”

income statement

For the quarter ended March 31, 2022, interest and dividend income reached $75.3 million, compared to $73.9 million a year ago. Interest expense for the first quarter of 2022 decreased to $2.7 million from $3.4 million in the same period last year.

Farmers & Merchants net interest income for the first quarter of 2022 increased to $72.6 million from $70.5 million for the first quarter of 2021. Net interest margin was 2. 60% for the first quarter of 2022, compared to 2.87% for the same period last year.

The Bank recorded a loan loss provision recovery of $1.0 million in the first quarter of 2022, compared to a loan loss provision of $2.0 million in the first quarter of 2021. on bank loans as a percentage of loans outstanding was 1.31% as of March 31. , 2022, compared to 1.32% at March 31, 2021.

Non-interest income was $5.1 million for the first quarter of 2022, equal to the first quarter of 2021. Non-interest expense for the first quarter of 2022 is amounted to $43.7 million, compared to $41.9 million for the same period last year.

The Bank’s net income for the first quarter of 2022 reached $27.8 million, or $217.02 per diluted share, compared to $25.3 million, or $197.51 per diluted share, in the first quarter of 2021 .

Balance sheet

As of March 31, 2022, net lending totaled $5.40 billion, compared to $5.37 billion as of December 31, 2021. The Bank’s total deposits increased to $9.36 billion at the end of the first quarter December 31, 2022, compared to $9.24 billion as of December 31, 2021. -Interest-bearing deposits represented 38.4% of total deposits as of March 31, 2022, which is the same as December 31, 2021. Total assets increased reached a record $11.67 billion at the end of the first quarter of 2022, compared to $11.44 billion at December 31, 2021.

As of March 31, 2022, Farmers & Merchants Bank remained “well capitalized” across all regulatory categories, with a Total Risk Based Capital Ratio of 18.67%, a Tier 1 Risk Based Capital Ratio of 17, 63%, a Tier 1 Tier 1 capital ratio of 17.63% and a Tier 1 leverage ratio of 10.91%. The minimum capital adequacy ratios for a well capitalized bank are 10.00%, 8.00%, 6.50% and 5.00% respectively.

“The positive first quarter results continued to demonstrate the financial strength of the Bank, as well as the dedication of our dedicated and attentive team to meeting the needs of customers,” said Daniel Walker, Chief Executive Officer and Chairman of the Board. . “It is gratifying that our relationships with our customers continue to grow, reflecting in part the flight to safety experienced during the height of the pandemic, when we were able to help businesses and consumers in times of need. Today we send our thoughts and prayers to the citizens of Ukraine who are enduring a humanitarian horror that is sparking new global economic strains. Over the past 115+ years, the Bank has withstood the effects of many wars and economic cycles and will continue to serve all of our stakeholders well.

During the first quarter of 2022, the Bank repurchased 309 common shares at an average price of $8,210.21 per share, pursuant to a share repurchase program announced in January 2022, under which the Board of Directors authorized the repurchase of up to $20 million of the Bank’s common shares. To the extent that the Bank repurchases additional shares under this program, which expires on December 31, 2023, the timing and number of shares repurchased will depend on various factors, including, but not limited to, the price share price, trading volume, regulatory requirements, general trading conditions and the like. The Bank may choose to modify, suspend or discontinue these proposed buybacks at any time and without notice, and the share buyback program does not require the Bank to acquire a specific number of shares during a period.

About the Farmers and Traders Bank

Founded in Long Beach in 1907 by CJ Walker, Farmers & Merchants Bank provides premium service to customers at 25 branches from San Clemente to Santa Barbara, as well as through its online and mobile banking platforms. The Bank offers business and small business banking, business loan programs, home loans and a strong offering of consumer retail banking products, including checking, savings and youth accounts. Farmers & Merchants Bank is a California 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.

LONG BEACH FARMERS AND MERCHANTS BANK
Income statements (unaudited)
(In thousands, except per share data)
Quarter ended March 31

2022

2021

Interest and dividend income:
Loans $

55,719

$

60,273

Investment security

18,669

13,075

Investments in FHLB and FRB shares

272

262

Remunerated deposits with financial institutions

596

257

Total interest and dividend income

75,256

73,867

Interest charges:
Deposits

1,987

2,494

Securities sold in repo

678

893

Total interest expense

2,665

3,387

Net interest income

72,591

70,480

Allowance for loan losses

(1,000

)

2,000

Net interest income after provision for loan losses

73,591

68,480

Non-interest income:
Service charges on deposit accounts

1,535

1,325

Card revenue

970

573

Other income

2,568

3,198

Total non-interest income

5,073

5,096

Non-interest charges:
Salaries and benefits

29 110

27,878

FDIC and other insurance costs

1,000

853

Occupancy costs

3,548

3,254

Software and hardware costs

3,642

3,535

Professional and legal services

1,465

1,340

Marketing costs

1,021

679

Other expenses

3,889

4,335

Total non-interest expense

43,675

41,874

Profit before income tax expense

34,989

31,702

income tax expense

7,154

6,427

Net revenue $

27,835

$

25,275

Basic earnings per common share $

221.65

$

199.64

Diluted earnings per common share $

217.02

$

197.51

Basic Weighted Average Shares Outstanding

125,581

126,607

Diluted weighted average number of shares outstanding

128,256

127,970

LONG BEACH FARMERS AND MERCHANTS BANK
Balance sheets (unaudited)
(In thousands, except per share and per share data)
March 31, 2022 December 31, 2021
Assets
Cash and bank assets:
Non-interest bearing balances $

75 121

$

49,025

Interest bearing balances

1,103,691

1,252,646

Total cash and bank receivables

1,178,812

1,301,671

Securities available for sale, at fair value

131,088

139,947

Securities held to maturity, at amortized cost

4,721,132

4,366,821

Loans held for sale

8,592

9,430

Gross loans

5,476,293

5,453,279

Allowance for loan losses

(71,895

)

(72,880

)

Unamortized deferred borrowing costs, net

(7,573

)

(8,650

)

Loans, net

5,396,825

5,371,749

Other real estate held, net

966

966

Investments in FHLB and FRB shares, at cost

20,025

20,031

Bank premises and equipment, net

114,453

115,827

Net deferred tax assets

27,747

27,939

other assets

73,753

83,879

Total assets $

11,673,393

$

11,438,260

Liabilities and equity
Passives:
Deposits:
Sight deposits not bearing interest $

3,597,306

$

3,552,248

Remunerated sight deposits

2,268,861

2,187,998

Savings and monetary savings

2,784,355

2,755,862

Term deposits

708,645

745,382

Total deposits

9,359,167

9,241,490

Securities sold in repo

1,023,291

916 672

Other liabilities

31,666

38,536

Total responsibilities

10,414,124

10,196,698

Equity:
Common shares, par value $20; authorized 250,000 shares;
125,319 and 125,628 shares issued and outstanding
as of March 31, 2022 and December 31, 2021 respectively

2,506

2,513

Premium

88,845

89,972

Retained earnings

1,171,982

1,147,661

Accumulated other comprehensive income

(4,064

)

1,416

Full shareholder equity

1,259,269

1,241,562

Total Liabilities and Equity $

11,673,393

$

11,438,260

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