LONG BEACH, Calif.--(EON: Enhanced Online News)--Farmers & Merchants Bank of Long Beach (OTCBB:FMBL) today reported financial results for the third quarter ended September 30, 2013.
“We achieved continued growth in the third quarter in key metrics, including loans and deposits, reflecting the strength of our brand and the F&M team in a highly competitive landscape”
“We achieved continued growth in the third quarter in key metrics, including loans and deposits, reflecting the strength of our brand and the F&M team in a highly competitive landscape,” said Henry Walker, president of Farmers & Merchants Bank of Long Beach. “During the quarter, F&M demonstrated its commitment to maintaining its leadership in the region by expanding our executive management team with the appointment of Melissa Lanfre as the Bank’s chief operating officer.”
For the 2013 third quarter, interest income amounted to $40.9 million, compared with $41.5 million earned in the 2012 third quarter, reflecting the protracted low interest rate environment. Interest income for the nine-month period ended September 30, 2013 was $119.7 million, compared with $130.7 million reported for the same period in 2012.
Interest expense for the 2013 third quarter declined to $1.6 million from $1.7 million in last year’s third quarter. Interest expense for the nine-month period ended September 30, 2013 declined to $4.6 million from $5.4 million reported for the same period last year.
Net interest income for the 2013 third quarter was $39.3 million, compared with $39.8 million for the third quarter of 2012, and $115.1 million for the first nine months of 2013, versus $125.3 million for the same period in 2012.
Farmers & Merchants’ net interest margin was 3.28% for the 2013 third quarter, compared with 3.51% for the 2012 third quarter. Net interest margin was 3.25% for the first nine months of 2013, compared with 3.76% for the same period in 2012.
The Bank did not have a provision for loan losses in the first nine months of 2013, nor in the same period a year ago, amid continued strength in the quality of its loan portfolio. The Bank’s allowance for loan losses as a percentage of loans outstanding was 2.32% at September 30, 2013, compared with 2.57% at December 31, 2012.
Non-interest income increased to $10.5 million for the 2013 third quarter from $9.5 million in the third quarter a year ago. Non-interest income was $30.6 million for the nine-month period ended September 30, 2013, compared with $20.4 million for the same period in 2012.
Non-interest expense for the 2013 third quarter was $27.9 million, versus $28.1 million for the same period last year. Non-interest expense for the first nine months of 2013 was $77.0 million, compared with $72.2 million last year.
Net income for the 2013 third quarter increased to $15.1 million, or $114.95 per diluted share, from $14.9 million, or $113.68 per diluted share, in the year-ago period. The Bank’s net income for the first nine months of 2013 was $47.2 million, or $360.39 per diluted share, compared with $50.1 million, or $383.02 per diluted share, for the same period in 2012.
At September 30, 2013, net loans totaled $2.18 billion, compared with $1.93 billion at December 31, 2012. The Bank’s deposits totaled $3.84 billion at the end of the 2013 third quarter, compared with $3.69 billion at December 31, 2012. Non-interest bearing deposits represented 40.4% of total deposits at September 30, 2013, versus 40.0% of total deposits at December 31, 2012. Total assets increased to $5.15 billion at the close of the 2013 third quarter, compared with $4.99 billion at the close of the prior year.
At September 30, 2013, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 28.72%, a Tier 1 risk-based capital ratio of 27.46%, and a Tier 1 leverage ratio of 14.43%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 6.00% and 5.00%, respectively.
“Results for the third quarter demonstrate F&M’s sound and stable reputation, which continues to pervade throughout Southern California,” said Daniel Walker, chief executive officer and chairman of the board. “Additionally, the strength of our balance sheet positions us well, as we embark on the next phase of growth and development for the Bank.”
About Farmers & Merchants Bank
Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank has 21 branches in L.A. 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 Sept. 30,||Nine Months Ended Sept. 30,|
|Deposits with banks||105||294||457||764|
|Total interest income||40,887||41,522||119,676||130,683|
|Securities sold under repurchase agreements||283||305||839||854|
|Total interest expense||1,551||1,738||4,592||5,366|
|Net interest income||39,336||39,784||115,084||125,317|
|Provision for loan losses||-||-||-||-|
|Net interest income after provision for loan losses||39,336||39,784||115,084||125,317|
|Service charges on deposit accounts||1,135||1,110||3,403||3,462|
|Gains on sale of securities||-||-||1,048||42|
|Other real estate owned income||3,275||2,504||3,275||2,504|
|Merchant bankcard income||2,448||3,418||7,010||6,644|
|Total non-interest income||10,481||9,509||30,630||20,432|
|Salaries and employee benefits||13,536||11,695||40,260||35,259|
|FDIC and other insurance expense||1,303||1,634||4,702||4,813|
|Other real estate owned expense||712||2,905||243||3,443|
|Amortization of public welfare investments||2,020||1,866||6,061||5,897|
|Merchant bankcard expense||1,904||2,902||5,564||5,072|
|Legal and professional services||970||883||2,719||1,929|
|Total non-interest expense||27,916||28,051||77,025||72,165|
|Income before income tax expense||21,901||21,242||68,689||73,584|
|Income tax expense||6,851||6,359||21,504||23,436|
|Basic and diluted earnings per common share||$||114.95||$||113.68||$||360.39||$||383.02|
|FARMERS & MERCHANTS BANK OF LONG BEACH|
|Balance Sheets (Unaudited)|
|(In thousands except share and per share data)|
|Sept. 30, 2013||Dec. 31, 2012|
|Cash and due from banks:|
|Loan held for sale||1,663||2,365|
|Less allowance for loan losses||(51,621||)||(50,994||)|
|Less unamortized deferred loan fees, net||(708||)||(364||)|
|Other real estate owned, net||14,298||17,696|
|Public welfare investments||29,743||35,804|
|Bank premises and equipment, net||65,911||60,504|
|Net deferred tax assets||24,452||26,060|
|Liabilities and Stockholders' Equity|
|Demand, non-interest bearing||$||1,549,200||$||1,474,215|
|Demand, interest bearing||379,142||346,991|
|Savings and money market savings||1,070,754||1,011,029|
|Securities sold under repurchase agreements||527,728||551,293|
Common Stock, par value $20; authorized 250,000
|Additional paid-in capital||12,044||12,044|
|Other comprehensive income||2,813||7,427|
|Total stockholders' equity||751,189||717,259|
|Total liabilities and stockholders' equity||$||5,145,387||$||4,988,961|