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Farmers & Merchants Bank of Long Beach Reports 2010 Fourth-Quarter and Full-Year Results

^{Published on 2011-01-20 14:50:24 - Market Wire}
 

LONG BEACH, Calif.--([ BUSINESS WIRE ])--Farmers & Merchants Bank of Long Beach (OTCBB:FMBL) today reported financial results for the fourth quarter and full year ended December 31, 2010.

"Our robust balance sheet is important to both existing and new customers because it demonstrates Farmers & Merchantsa™ commitment to long-term relationships"

aFarmers & Merchants Bank finished 2010 with strength, reduced operating expenses for the 2010 fourth quarter and continued profitability during an important transitional period for the industry and economy as a whole,a said Henry Walker, chief executive officer of Farmers & Merchants Bank of Long Beach. aEven though the economic environment continues to pose challenges, we enter 2011 well positioned to continue our legacy of providing a superior banking experience.a

Income Statement

For the 2010 fourth quarter, total interest income was $44.0 million, compared with $46.9 million in the fourth quarter of 2009. Total interest income for the year ended December 31, 2010 was $178.9 million, compared with $189.6 million reported for the same period in 2009.

Interest expense for the 2010 fourth quarter declined to $2.7 million from $3.8 million in the same quarter of 2009, primarily amid a lower interest rate environment. Interest expense for the year totaled $12.0 million, compared with $18.4 million for the same period in 2009.

The Banka™s net interest income for the 2010 fourth quarter was $41.3 million, compared with $43.1 million in the same quarter of 2009, and was $166.9 million for the full-year 2010, versus $171.2 million in 2009. Farmers & Merchanta™s net interest margin was 4.23% for the year ended December 31, 2010, compared with 4.60% in the previous year.

The Banka™s provision for loan losses decreased to $6.5 million in the fourth quarter of 2010 from $15.1 million in the 2009 fourth quarter, as economic conditions continued to stabilize. Provision for loan losses declined to $26.0 million in 2010 from $40.8 million for 2009. The Banka™s allowance for loan losses as a percentage of loans outstanding was 2.69% at December 31, 2010, compared with 2.85% at December 31, 2009.

Non-interest income rose to $4.2 million for the 2010 fourth quarter, compared with $3.7 million in the 2009 fourth quarter. Non-interest income for the full 2010 year totaled $15.4 million, compared with $13.1 million for 2009.

Non-interest expense for the 2010 fourth quarter was $16.7 million, compared with $17.3 million for the same period last year. Non-interest expense for the year ended December 31, 2010 was $74.4 million, compared with $77.5 million last year. Farmers & Merchantsa™ overhead efficiency ratio was 39.88% for 2010, compared with 41.26% for 2009.

The Banka™s net income for the 2010 fourth quarter increased to $15.3 million, or $117.16 per diluted share, from $10.1 million, or $77.31 per diluted share, in the 2009 fourth quarter. The Banka™s net income for 2010 rose to $53.0 million, or $405.06 per diluted share, from $40.7 million, or $310.82 per diluted share, for 2009.

Balance Sheet

At December 31, 2010, net loans increased to $2.01 billion from $1.97 billion at December 31, 2009. The Banka™s deposits grew 5.7% to $3.0 billion at the end of 2010, from $2.8 billion at December 31, 2009. Non-interest bearing deposits represented 33.4% of total deposits at December 31, 2010, versus 31.6% of total deposits at December 31, 2009. Total assets increased to $4.26 billion at the close of 2010 from $3.98 billion at December 31, 2009.

At December 31, 2010, Farmers & Merchants Bank remained awell-capitalizeda under all regulatory categories, with a total risk-based capital ratio of 26.59%, a Tier 1 risk-based capital ratio of 25.33%, and a Tier 1 leverage ratio of 14.31%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 6.00% and 4.00%, respectively.

aOur robust balance sheet is important to both existing and new customers because it demonstrates Farmers & Merchantsa™ commitment to long-term relationships,a said Daniel Walker, president and chairman of the board. aOur disciplined approach to banking is rooted in more than a century of experience, a distinguishing factor in an industry that requires a solid foundation.a

About Farmers & Merchants Bank of Long Beach

Farmers & Merchants Bank of Long Beach provides personal and business banking services through 22 offices in Los Angeles and Orange Counties. Founded in 1907 by C.J. Walker, the Bank specializes in commercial and small business banking along with business loan programs.