TMCnet News
Farmers & Merchants Bank of Long Beach Reports 2021 First-Quarter ResultsFarmers & Merchants Bank of Long Beach ("F&M" or the "Bank") (OTCQB: FMBL) today reported financial results for the quarter ended March 31, 2021. "We are pleased to report on an outstanding first quarter for 2021, as total assets surpassed the milestone $10 billion mark for the first time, and further increases were achieved in total deposits and net loans," said Henry Walker, president of Farmers & Merchants Bank of Long Beach. "The Bank's conservative policies and disciplined business approach enabled us to respond quickly and effectively to the challenges posed by the COVID-19 pandemic. As vaccination efforts continue throughout our state and nation, we will continue to meet the needs of our clients through the extraordinary efforts of our dedicated F&M team." Income Statement For the three months ended March 31, 2021, interest and dividend income rose to $73.9 million from $69.1 million a year ago. Interest expense for the 2021 first quarter was $3.4 million, compared with $8.0 million in the same period last year. Farmers & Merchants' net interest income for the 2021 first quarter increased to $70.5 million from $61.2 million for the first quarter of 2020. Farmers & Merchants' net interest margin was 2.87% for the first quarter ended March 31, 2021, compared with 3.28% at the end of the same period last year. The Bank's provision for loan losses in the first quarter of 2021 was $2,000,000, versus $800,000 in the first quarter of 2020. The Bank's allowance for loan losses as a percentage of loans outstanding was 1.32% at March 31, 2021, compared with 1.44% at March 31, 2020. Non-interest income was $5.1 million for the 2021 first quarter, compared with $4.6 million for the 2020 first quarter. Non-interest expense for the 2021 first quarter was $41.9 million, versus $43.6 million for the same period last year. The Bank's net income for the 2021 first quarter was $25.3 million, or $197.51 per diluted share, from $17.9 million, or $139.50 per diluted share, in the 2020 first quarter. Balance Sheet At March 31, 2021, net loans totaled $5.53 billion, compared with $5.33 billion at December 31, 2020. The Bank's total deposits rose to $8.24 billion at the end of the 2021 first quarter, up from $7.62 billion at December 31, 2020. Non-interest-bearing deposits represented 38.1% of total deposits at March 31, 2021 compared with 37.9% at December 31, 2020. Total assets grew to $10.45 billion at the close of the 2021 first quarter from $9.87 billion at December 31, 2020. At March 31, 2021, Farmers & Merchants Bank remained "well-capitalized" under all regulatory categories, with a total risk-based capital ratio of 19.22%, a tier 1 risk-based capital ratio of 18.00%, a common equity tier 1 capital ratio of 18.00%, and a tier 1 leverage ratio of 12.18%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively. "Proceeding into 2021, F&M continues to successfully navigate an evolving business and economic environment, as demonstrated by our first quarter results," said Daniel Walker, chief executive officer and chairman of the board. "Despite the protracted period of low interest rates, the Bank remains financially strong. F&M is well positioned to perform effectively, with high levels of capital and liquidity, diversified revenue streams, and an exceptional core deposit base." During the first quarter of 2021, the Bank repurchased 139 shares of its common stock at an average price of $7,714.91 per share, pursuant to a stock repurchase program announced in April 2020, under which the board of directors authorized the repurchase of up to $20 million of the Bank's common stock. To the extent the Bank repurchases additional shares under this program, which expires December 31, 2021, the timing and number of shares repurchased will depend on a variety of factors, including, but not limited to, stock price, trading volume, regulatory requirements, general business conditions and others. The Bank may choose to modify, suspend, or discontinue such proposed repurchases at any time without prior notice, and the share repurchase program does not obligate the Bank to acquire any specific number of shares in any period. About Farmers & Merchants Bank Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank provides white-glove service to clients at 25 branches across Orange (News - Alert) County, Long Beach, the South Bay and 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 consumer 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 Bank's website, www.fmb.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210415005266/en/ |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
