Farmers & Merchants Bank of Long Beach Reports 2024 Fourth Quarter and Full Year Results
“Profitable operations were achieved for both the fourth quarter and full 2024 year, demonstrating the Bank’s financial strength, resilience to the challenging external banking environment, and dedication to prudent financial management,” said W. Henry Walker, Chief Executive Officer of F&M Bank. “At year-end, the Bank’s balance sheet remained strong, with all capital ratios far exceeding regulatory requirements.
“During the fourth quarter, the Board and management team took decisive action to enhance F&M’s future operating performance by selling low-yielding fixed-rate securities and deploying the proceeds into higher-earnings securities. Despite a one-time impact on 2024 earnings, the sale is expected to facilitate growth in net interest margin (NIM), return on assets (ROA), and net income.”
Daniel Walker, F&M’s Executive Chairman, added, “The decision to reposition F&M’s balance sheet, in addition to enhancing future operating performance, will benefit all of our stakeholders, including better aligning the Bank to meet the increasing lending needs of new and existing clients throughout the region.”
Operating Results
For the fourth quarter of 2024, total interest and dividend income amounted to
Total interest expense for the fourth quarter of 2024 was
Net interest income before provision for credit losses for both the fourth quarter of 2024 and fourth quarter of 2023 remained unchanged at
F&M’s net interest margin was
For the fourth quarter of 2024, the Bank recorded a provision for credit losses of
Total non-interest income was
The Bank sold
Total non-interest expense for the fourth quarter of 2024 was
Fourth quarter 2024 net income was
Balance Sheet
Gross loans were
The Bank’s total deposits rose to
Securities sold under repurchase agreements increased to
Total assets at December 31, 2024, were
Capital
Capital ratios are the foundation of safety in all banks, and F&M continues to exceed most national and regional banks in this area, as well as exceeding regulatory capital requirements to meet the definition of a “well-capitalized” financial institution. The Bank’s total risk-based capital ratio was
Stock Repurchase Program
During the twelve months ended December 31, 2024, the Bank repurchased 3,066 shares of its common stock for
About Farmers & Merchants Bank of Long Beach
Founded in
Safe Harbor Statement
This press release contains forward-looking statements, including, but not limited to, improved operating performance, and improvements in NIM, ROA and net income, that are subject to various risks and uncertainties. Such statements that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's expectations include fluctuation in market rates of interest, loan and deposit pricing, adverse changes in national and economic conditions, including conditions in the Bank’s specific market areas, among others. Forward-looking statements are made as of the date of this press release, and the Bank does not intend to update such statements except as required by law.
FARMERS & MERCHANTS BANK OF LONG BEACH |
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Income Statements (Unaudited) |
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(In thousands, except per share data) |
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2024 |
|
2023 |
|
2024 |
|
2023 |
|
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Interest and dividend income: | |||||||||||||||||
Loans | $ |
75,021 |
|
$ |
76,432 |
|
$ |
300,274 |
|
$ |
299,723 |
|
|||||
Investment securities |
|
19,034 |
|
|
20,895 |
|
|
79,653 |
|
|
87,511 |
|
|||||
Investments in FHLB and FRB stock |
|
459 |
|
|
443 |
|
|
1,914 |
|
|
1,672 |
|
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Interest-bearing deposits in financial institutions |
|
14,341 |
|
|
10,199 |
|
|
57,914 |
|
|
26,615 |
|
|||||
Total interest and dividend income |
|
108,855 |
|
|
107,969 |
|
|
439,755 |
|
|
415,521 |
|
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Interest expense: | |||||||||||||||||
Deposits |
|
30,439 |
|
|
24,978 |
|
|
119,006 |
|
|
81,556 |
|
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Securities sold under repurchase agreements |
|
8,735 |
|
|
9,287 |
|
|
37,611 |
|
|
31,499 |
|
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Borrowings |
|
7,375 |
|
|
11,414 |
|
|
45,942 |
|
|
39,398 |
|
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Total interest expense |
|
46,549 |
|
|
45,679 |
|
|
202,559 |
|
|
152,453 |
|
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Net interest income before provision for credit losses |
|
62,306 |
|
|
62,290 |
|
|
237,196 |
|
|
263,068 |
|
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Provision for credit losses | |||||||||||||||||
Loans |
|
600 |
|
|
1,100 |
|
|
(2,500 |
) |
|
(700 |
) |
|||||
Investment securities |
|
- |
|
|
- |
|
|
- |
|
|
100 |
|
|||||
Reserve for unfunded loan commitments |
|
- |
|
|
(1,100 |
) |
|
(4,100 |
) |
|
(3,000 |
) |
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Total provision for credit losses |
|
600 |
|
|
- |
|
|
(6,600 |
) |
|
(3,600 |
) |
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Net interest income after provision for credit losses |
|
61,706 |
|
|
62,290 |
|
|
243,796 |
|
|
266,668 |
|
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Non-interest income: | |||||||||||||||||
Service charges on deposit accounts |
|
1,971 |
|
|
1,818 |
|
|
7,541 |
|
|
6,971 |
|
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Other real estate owned income |
|
1,318 |
|
|
- |
|
|
1,318 |
|
|
- |
|
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Loss on sale of securities |
|
(10,141 |
) |
|
- |
|
|
(10,141 |
) |
|
- |
|
|||||
Card income |
|
187 |
|
|
315 |
|
|
852 |
|
|
1,272 |
|
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Other income |
|
2,886 |
|
|
2,018 |
|
|
20,000 |
|
|
8,204 |
|
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Total non-interest income |
|
(3,779 |
) |
|
4,151 |
|
|
19,570 |
|
|
16,447 |
|
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Non-interest expense: | |||||||||||||||||
Salaries and employee benefits |
|
31,878 |
|
|
26,881 |
|
|
123,306 |
|
|
120,419 |
|
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FDIC and other insurance expense |
|
2,093 |
|
|
3,249 |
|
|
10,110 |
|
|
9,172 |
|
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Occupancy expense |
|
3,979 |
|
|
4,071 |
|
|
15,835 |
|
|
15,712 |
|
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Software and equipment expense |
|
4,475 |
|
|
4,471 |
|
|
17,662 |
|
|
16,025 |
|
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Other real estate owned expense |
|
38 |
|
|
- |
|
|
370 |
|
|
- |
|
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Professional and legal services |
|
1,800 |
|
|
2,524 |
|
|
10,595 |
|
|
8,121 |
|
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Marketing expense |
|
1,871 |
|
|
1,485 |
|
|
4,728 |
|
|
7,730 |
|
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Other expense |
|
5,411 |
|
|
7,080 |
|
|
17,364 |
|
|
24,004 |
|
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Total non-interest expense |
|
51,545 |
|
|
49,761 |
|
|
199,970 |
|
|
201,183 |
|
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Income before income tax expense |
|
6,382 |
|
|
16,680 |
|
|
63,396 |
|
|
81,932 |
|
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Income tax expense |
|
2,386 |
|
|
3,832 |
|
|
18,518 |
|
|
11,925 |
|
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Net income | $ |
3,996 |
|
$ |
12,848 |
|
$ |
44,878 |
|
$ |
70,007 |
|
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Basic earnings per common share | $ |
32.46 |
|
$ |
104.34 |
|
$ |
365.52 |
|
$ |
568.23 |
|
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Diluted earnings per common share | $ |
32.18 |
|
$ |
101.61 |
|
$ |
358.63 |
|
$ |
553.79 |
|
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Basic weighted-average shares outstanding |
|
123,121 |
|
|
123,135 |
|
|
122,778 |
|
|
123,202 |
|
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Diluted weighted-average shares outstanding |
|
124,178 |
|
|
126,446 |
|
|
125,138 |
|
|
126,413 |
|
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FARMERS & MERCHANTS BANK OF LONG BEACH | ||||||||
Balance Sheets (Unaudited) | ||||||||
(In thousands, except share and per share data) | ||||||||
Dec. 31, 2024 | Dec. 31, 2023 | |||||||
Assets | ||||||||
Cash and due from banks: | ||||||||
Noninterest-bearing balances | $ |
72,319 |
|
$ |
74,595 |
|
||
Interest-bearing balances |
|
976,039 |
|
|
548,874 |
|
||
Total cash and due from banks |
|
1,048,358 |
|
|
623,469 |
|
||
Securities available-for-sale, at fair value |
|
281,219 |
|
|
115,883 |
|
||
Securities held-to-maturity, at amortized cost |
|
3,687,417 |
|
|
4,301,060 |
|
||
Loans held for sale |
|
1,132 |
|
|
- |
|
||
Gross loans |
|
6,467,991 |
|
|
6,756,207 |
|
||
Unamortized deferred loan fees, net |
|
(8,811 |
) |
|
(11,469 |
) |
||
Allowance for credit losses on loans |
|
(96,585 |
) |
|
(97,900 |
) |
||
Loans, net |
|
6,362,595 |
|
|
6,646,838 |
|
||
Investments in FHLB and FRB stock, at cost |
|
22,472 |
|
|
22,798 |
|
||
Bank premises and equipment, net |
|
118,474 |
|
|
125,929 |
|
||
Deferred tax assets, net |
|
42,427 |
|
|
45,723 |
|
||
Other assets |
|
125,975 |
|
|
154,154 |
|
||
Total assets | $ |
11,690,069 |
|
$ |
12,035,854 |
|
||
Liabilities and Stockholders' Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand deposits | $ |
2,908,598 |
|
$ |
2,880,315 |
|
||
Interest-bearing demand deposits |
|
2,047,524 |
|
|
2,069,275 |
|
||
Savings and money market savings |
|
2,784,678 |
|
|
2,661,312 |
|
||
Time deposits |
|
1,028,793 |
|
|
1,059,166 |
|
||
Total deposits |
|
8,769,593 |
|
|
8,670,068 |
|
||
Securities sold under repurchase agreements |
|
991,869 |
|
|
909,376 |
|
||
Borrowings |
|
500,000 |
|
|
1,000,000 |
|
||
Other liabilities |
|
59,724 |
|
|
104,965 |
|
||
Total liabilities |
|
10,321,186 |
|
|
10,684,409 |
|
||
Stockholders' Equity: | ||||||||
Common Stock, par value |
||||||||
122,728 and 123,135 shares issued and outstanding at | ||||||||
December 31, 2024 and December 31, 2023, respectively |
|
2,455 |
|
|
2,463 |
|
||
Additional paid-in capital |
|
169,136 |
|
|
184,483 |
|
||
Retained earnings |
|
1,199,221 |
|
|
1,169,759 |
|
||
Accumulated other comprehensive loss |
|
(1,929 |
) |
|
(5,260 |
) |
||
Total stockholders' equity |
|
1,368,883 |
|
|
1,351,445 |
|
||
Total liabilities and stockholders' equity | $ |
11,690,069 |
|
$ |
12,035,854 |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250123320333/en/
Kevin Tiber
President
562-499-4829
Roger Pondel
PondelWilkinson Inc.
Investor Relations
310-279-5980
investor@pondel.com
Source: Farmers & Merchants Bank of Long Beach