Farmers & Merchants Bank of Long Beach (FMBL) reported strong financial results for the first quarter of 2024, showcasing resilient performance despite external challenges. The bank's net interest income, total interest and dividend income, and non-interest income all saw positive growth. However, net income saw a decline compared to the same period last year. The balance sheet remained stable with a slight decrease in gross loans but maintained a dependable deposit base. Capital ratios exceeded regulatory requirements, reflecting the bank's strength and stability. The stock repurchase program also demonstrated the bank's commitment to enhancing shareholder value.
La Farmers & Merchants Bank of Long Beach (FMBL) ha riportato ottimi risultati finanziari per il primo trimestre del 2024, mostrando una performance resiliente nonostante le sfide esterne. Gli utili netti d'interesse, i totali d'interesse e i dividendi, e i redditi non derivanti da interessi hanno tutti registrato una crescita positiva. Tuttavia, l'utile netto ha subito un calo rispetto allo stesso periodo dell'anno precedente. Il bilancio è rimasto stabile con una leggera diminuzione nei prestiti lordi ma ha mantenuto una base di depositi affidabile. I rapporti di capitale hanno superato i requisiti regolatori, riflettendo la forza e la stabilità della banca. Il programma di riacquisto di azioni ha inoltre dimostrato l'impegno della banca nel valorizzare il capitale degli azionisti.
El Farmers & Merchants Bank of Long Beach (FMBL) reportó resultados financieros sólidos para el primer trimestre de 2024, demostrando un desempeño resiliente a pesar de los desafíos externos. Los ingresos netos por intereses, los ingresos totales por intereses y dividendos, y los ingresos no provenientes de intereses, todos experimentaron un crecimiento positivo. Sin embargo, el ingreso neto disminuyó en comparación con el mismo período del año anterior. El balance general se mantuvo estable con una ligera disminución en los préstamos brutos pero mantuvo una base de depósitos confiable. Las ratios de capital superaron los requisitos regulatorios, reflejando la fortaleza y estabilidad del banco. El programa de recompra de acciones también demostró el compromiso del banco con el aumento del valor para los accionistas.
롱비치의 파머스 앤 머천트은행(FMBL)이 2024년 첫 분기에 강력한 재무 성과를 보고했습니다. 외부 도전에도 불구하고 견고한 성과를 보였습니다. 순이자 수익, 총이자 및 배당 수익, 비이자 수익 모두 긍정적인 성장을 보였습니다. 그러나 순이익은 지난해 같은 기간에 비해 감소했습니다. 대차대조표는 소폭의 대출 감소에도 불구하고 안정적인 예금 기반을 유지했습니다. 자본비율은 규제 요건을 초과하여 은행의 강점과 안정성을 반영했습니다. 주식 매입 프로그램은 또한 주주 가치 증대에 대한 은행의 헌신을 보여주었습니다.
La Farmers & Merchants Bank of Long Beach (FMBL) a rapporté des résultats financiers solides pour le premier trimestre de 2024, en affichant une performance résiliente malgré les défis externes. Les revenus nets d'intérêts, les revenus totaux d'intérêts et de dividendes, ainsi que les revenus non liés aux intérêts ont tous connu une croissance positive. Toutefois, le revenu net a diminué par rapport à la même période l'année dernière. Le bilan est resté stable avec une légère baisse des prêts bruts mais a maintenu une base de dépôts fiable. Les ratios de capitaux ont dépassé les exigences réglementaires, reflétant la force et la stabilité de la banque. Le programme de rachat d'actions a également démontré l'engagement de la banque à accroître la valeur pour les actionnaires.
Die Farmers & Merchants Bank of Long Beach (FMBL) berichtete starke Finanzergebnisse für das erste Quartal 2024 und zeigte eine widerstandsfähige Leistung trotz externer Herausforderungen. Das Nettozins-Einkommen, die Gesamtzins- und Dividendeneinkommen, sowie das nicht zinsabhängige Einkommen verzeichneten alle ein positives Wachstum. Allerdings verzeichnete der Reingewinn im Vergleich zum Vorjahreszeitraum einen Rückgang. Die Bilanz blieb stabil mit einem leichten Rückgang bei den Bruttokrediten, behielt jedoch eine zuverlässige Einlagenbasis. Die Kapitalquoten übertrafen die regulatorischen Anforderungen, was die Stärke und Stabilität der Bank widerspiegelt. Das Aktienrückkaufprogramm zeigte ebenfalls das Engagement der Bank, den Aktionärswert zu steigern.
Positive
Strong financial performance in the first quarter of 2024
Resilient performance despite external challenges
Growth in net interest income, total interest and dividend income, and non-interest income
Decrease in net income compared to the same period last year
Stable balance sheet with a slight decrease in gross loans
Dependable deposit base
Capital ratios exceeding regulatory requirements
Stock repurchase program enhancing shareholder value
Negative
None.
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, 2024.
“F&M’s performance for the first three months of 2024 met internal expectations during this transitional year and again demonstrated the Bank’s resiliency to the continued external challenges facing regional banks throughout the nation,” said W. Henry Walker, Chief Executive Officer. “With stringent adherence to our historically conservative lending policies and prudent financial controls to safeguard our clients’ deposits, we achieved profitable operations for the first quarter, along with capital ratios that far exceeded regulatory requirements.
“The repricing of assets for the year is centered in loans and securities and is expected to exceed $1.2 billion in 2024. The high quality of our loan portfolio is reflected in our delinquency rate, which was significantly less than one-tenth of one percent in the first quarter and is a testament to our stringent lending policies.”
Daniel Walker, F&M’s Executive Chairman of the Board, said, “We are pleased to continue our focus on Orange County, with the opening of our 27th location. Our new Laguna Beach branch is strategically situated on a major thoroughfare in Orange County, which is an important and growing marketing region for F&M. Persistently high interest rates will continue to challenge near-term earnings, but we have conviction in our time-tested commitment to stringent credit quality standards in both our loan and securities portfolios, even if some yield must be sacrificed along the way.
“F&M is in a strong competitive position in the markets we serve. Management remains focused on improving net interest margin over the long term, as the key to driving earnings, and, in turn, enhancing long-term stockholder value,” he added.
Operating Results
For the three months ended March 31, 2024, total interest and dividend income rose to $108.6 million from $97.3 million in the first quarter of 2023. Total interest expense for the first quarter of 2024 was $51.2 million, compared with $26.5 million in the first quarter of 2023.
Net interest income before provision for credit losses for the first quarter of 2024 was $57.4 million versus $70.8 million for the first quarter of 2023. F&M’s net interest margin was 1.91% for the first quarter of 2024, versus 2.43% in the first quarter of 2023.
The Bank recorded a recapture of provision for credit losses of $2.5 million in the first quarter of 2024 due to strong recoveries and a reduced level of unfunded loan commitments, compared with no net provision for credit losses for the first quarter of 2023.
Non-interest income was $8.2 million for the first quarter of 2024, compared with $3.8 million in the first quarter of 2023. Total non-interest expense for the first quarter of 2024 was $50.1 million, compared with $48.3 million in the first quarter of 2023, which reflected management’s focus on controlling expenses.
First quarter 2024 net income was $13.0 million, or $102.71 per diluted share, compared with $21.6 million, or $170.86 per diluted share, for the first quarter of 2023.
Balance Sheet
Gross loans were $6.60 billion as of March 31, 2024, compared with $6.76 billion at December 31, 2023. The Bank’s allowance for loan losses totaled $97.5 million, or 1.48% of loans held-for-investment at March 31, 2024, compared with $97.9 million, or 1.45% of loans held-for-investment, at December 31, 2023.
F&M continues to reflect a dependable, stable deposit base. The Bank’s total deposits were $8.60 billion at March 31, 2024, compared with $8.67 billion at December 31, 2023. Noninterest-bearing deposits represented 32.6% of total deposits at March 31, 2024, versus 33.2% of total deposits at December 31, 2023. Securities sold under repurchase agreements grew to $942.5 million at March 31, 2024, from $909.4 million at December 31, 2023.
Borrowings increased to $1.20 billion as of March 31, 2024, from $1.0 billion as of December 31, 2023. Executive management made the strategic decision to secure additional borrowings in the first quarter without incurring additional net interest expense, while providing ample liquidity for the upcoming tax season.
Total assets were $12.19 billion as of March 31, 2024, compared with $12.04 billion at December 31, 2023. Total stockholders’ equity was $1.36 billion at March 31, 2024.
Capital
Capital ratios are the foundation of safety in all banks, and F&M continues to exceed national banks and peer banks in this area. All of Farmers & Merchants Bank’s capital ratios exceeded regulatory capital requirements to meet the definition of a “well-capitalized” financial institution. The Bank’s total risk-based capital ratio was 18.02%; its tier 1 risk-based capital ratio was 16.77%, with a common equity tier 1 capital ratio of 16.77%, and a tier 1 leverage ratio of 11.09%, as of March 31, 2024. 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 first quarter of 2024, the Bank repurchased 1,165 shares of its common stock on the open market at an average repurchase price of $4,978.26 per share, pursuant to the stock repurchase program announced in January 2024, under which the board of directors authorized the repurchase of up to $10 million of the Bank’s common stock. To the extent the Bank repurchases additional shares under this program, which expires December 31, 2024, 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 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.
FARMERS & MERCHANTS BANK OF LONG BEACH
Income Statements (Unaudited)
(In thousands, except per share data)
Three Months Ended March 31,
2024
2023
Interest and dividend income:
Loans
$
75,485
$
72,475
Investment securities
20,371
22,813
Investments in FHLB and FRB stock
539
400
Interest-bearing deposits in financial institutions
12,241
1,600
Total interest and dividend income
108,636
97,288
Interest expense:
Deposits
27,459
13,958
Securities sold under repurchase agreements
9,610
6,020
Borrowings
14,123
6,491
Total interest expense
51,192
26,469
Net interest income before provision for credit losses
57,444
70,819
Provision for credit losses
Loans
(1,500
)
-
Investment securities
-
100
Reserve for unfunded loan commitments
(1,000
)
(100
)
Total provision for credit losses
(2,500
)
-
Net interest income after provision for credit losses
59,944
70,819
Non-interest income:
Service charges on deposit accounts
1,809
1,544
Card income
225
230
Other income
6,209
2,061
Total non-interest income
8,243
3,835
Non-interest expense:
Salaries and employee benefits
30,777
31,793
FDIC and other insurance expense
2,874
1,758
Occupancy expense
3,890
3,827
Software and equipment expense
4,263
3,860
Other real estate owned expense
37
-
Professional and legal services
2,495
1,130
Marketing expense
1,038
882
Other expense
4,707
5,045
Total non-interest expense
50,081
48,295
Income before income tax expense
18,106
26,359
Income tax expense
5,104
4,736
Net income
$
13,002
$
21,623
Basic earnings per common share
$
105.90
$
175.47
Diluted earnings per common share
$
102.71
$
170.86
Basic weighted-average shares outstanding
122,772
123,228
Diluted weighted-average shares outstanding
126,592
126,552
FARMERS & MERCHANTS BANK OF LONG BEACH
Balance Sheets (Unaudited)
(In thousands, except share and per share data)
Mar. 31, 2024
Dec. 31, 2023
Assets
Cash and due from banks:
Noninterest-bearing balances
$
58,340
$
74,595
Interest-bearing balances
1,014,066
548,874
Total cash and due from banks
1,072,406
623,469
Securities available-for-sale, at fair value
110,592
115,883
Securities held-to-maturity, at amortized cost
4,175,781
4,301,060
Gross loans
6,602,292
6,756,207
Allowance for loan losses
(97,501
)
(97,900
)
Unamortized deferred loan fees, net
(9,986
)
(11,469
)
Loans, net
6,494,805
6,646,838
Other real estate owned, net
2,929
-
Investments in FHLB and FRB stock, at cost
22,858
22,798
Bank premises and equipment, net
125,281
125,929
Deferred tax assets, net
47,574
45,723
Other assets
138,857
154,154
Total assets
$
12,191,083
$
12,035,854
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposits
$
2,800,304
$
2,880,315
Interest-bearing demand deposits
2,080,451
2,069,275
Savings and money market savings
2,661,382
2,661,312
Time deposits
1,055,492
1,059,166
Total deposits
8,597,629
8,670,068
Securities sold under repurchase agreements
942,472
909,376
Borrowings
1,200,000
1,000,000
Other liabilities
94,266
104,965
Total liabilities
10,834,367
10,684,409
Stockholders' Equity:
Common Stock, par value $20; authorized 250,000 shares; 121,970 and 123,135 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively
Roger Pondel
PondelWilkinson Inc.
Investor Relations
310-279-5980
investor@pondel.com
Source: Farmers & Merchants Bank of Long Beach
FAQ
What were Farmers & Merchants Bank of Long Beach's (FMBL) total interest and dividend income for the first quarter of 2024?
Farmers & Merchants Bank of Long Beach reported total interest and dividend income of $108.6 million for the first quarter of 2024.
What was FMBL's net interest margin for the first quarter of 2024?
FMBL's net interest margin was 1.91% for the first quarter of 2024.
What was the net income of FMBL for the first quarter of 2024?
Farmers & Merchants Bank of Long Beach (FMBL) reported a net income of $13.0 million for the first quarter of 2024.
How did FMBL's gross loans change from December 31, 2023, to March 31, 2024?
FMBL's gross loans decreased from $6.76 billion at December 31, 2023, to $6.60 billion at March 31, 2024.
What were FMBL's total assets as of March 31, 2024?
Farmers & Merchants Bank of Long Beach (FMBL) had total assets of $12.19 billion as of March 31, 2024.
What were FMBL's capital ratios as of March 31, 2024?
FMBL's total risk-based capital ratio was 18.02%, tier 1 risk-based capital ratio was 16.77%, common equity tier 1 capital ratio was 16.77%, and tier 1 leverage ratio was 11.09% as of March 31, 2024.
Did FMBL repurchase any shares of its common stock in the first quarter of 2024?
Yes, FMBL repurchased 1,165 shares of its common stock on the open market in the first quarter of 2024.
What was the average repurchase price of FMBL's common stock in the first quarter of 2024?
The average repurchase price of FMBL's common stock in the first quarter of 2024 was $4,978.26 per share.
An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
