Business & Finance
Business and Finance
Business and Finance
Thu, April 21, 2011
Wed, April 20, 2011 Farmers & Merchants Bank of Long Beach Reports 2011 First-Quarter Results
LONG BEACH, Calif.--([ BUSINESS WIRE ])--Farmers & Merchants Bank of Long Beach (OTCBB:FMBL) today reported financial results for the first quarter ended March 31, 2011.
"During the first quarter, the Banka™s conservative lending practices and maintenance of liquidity were important factors that speak to more than century of experience serving Southern California."
aWe maintained solid performance in the first quarter, despite global market uncertainty,a said Henry Walker, chief executive officer of Farmers & Merchants Bank of Long Beach. aCore deposits continued to grow during the quarter, as customers sought stability amid a challenging economic environment.a
Income Statement
For the three months ended March 31, 2011, interest income was $45.3 million, unchanged from the comparable prior-year period. Interest expense for the 2011 first quarter declined to $2.6 million from $3.3 million in the first quarter of 2010, primarily related to the continued low interest rate environment.
Net interest income for the 2011 first quarter rose 1.7% to $42.7 million from $42.0 million for the first quarter of 2010.
The Banka™s provision for loan losses equaled $700,000 in the first quarter of 2011, compared with $6.5 million in the preceding fourth quarter, and $6.8 million in the first quarter of 2010. The Banka™s allowance for loan losses as a percentage of loans outstanding was 2.75% at March 31, 2011, compared with 2.69% at December 31, 2010.
Non-interest income was $3.3 million for the 2011 first quarter versus $3.4 million for the first quarter a year ago. Non-interest expense for the 2011 first quarter was $21.3 million, compared with $17.2 million for the same period last year.
The Bank's net interest margin remained strong for the 2011 first quarter at 4.29%.
Net income for the 2011 first quarter totaled $15.3 million, or $117.18 per diluted share, compared with net income of $13.3 million, or $101.59 per diluted share, for the 2010 first quarter.
Balance Sheet
At March 31, 2011, net loans increased to $2.02 billion from $2.01 billion at December 31, 2010. The Banka™s deposits totaled $3.07 billion at the end of the 2011 first quarter, compared with $3.00 billion at December 31, 2010. Non-interest bearing deposits represented 34.5% of total deposits at March 31, 2011, versus 33.4% of total deposits at December 31, 2010. Total assets increased to $4.40 billion at the close of the 2011 first quarter from $4.26 billion at December 31, 2010.
At March 31, 2010, Farmers & Merchants Bank remained awell-capitalizeda under all regulatory categories, with a total risk-based capital ratio of 26.98%, a Tier 1 risk-based capital ratio of 25.72%, and a Tier 1 leverage ratio of 14.52%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 6.0% and 4.0%, respectively.
aBeginning the year with a strong balance sheet is imperative, particularly at a time when customers are seeking a banking partner with established fundamentals,a said Daniel Walker, president and chairman of the board. aDuring the first quarter, the Banka™s conservative lending practices and maintenance of liquidity were important factors that speak to more than century of experience serving Southern California.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.
FARMERS & MERCHANTS BANK OF LONG BEACH Balance Sheets (unaudited) (in thousands) | ||||||||||
| Mar. 31, 2011 | Dec. 31, 2010 | |||||||||
| Assets | ||||||||||
| Cash and due from banks: | ||||||||||
| Noninterest-bearing balances | $ | 55,373 | $ | 49,628 | ||||||
| Interest-bearing balances | 165,052 | 48,509 | ||||||||
| Investment securities | 1,982,791 | 1,977,343 | ||||||||
| Gross loans | 2,078,885 | 2,070,493 | ||||||||
| Less allowance for loan losses | (57,094 | ) | (55,627 | ) | ||||||
| Less unamortized deferred loan fees, net | (569 | ) | (426 | ) | ||||||
| Net loans | 2,021,222 | 2,014,440 | ||||||||
| Bank premises and equipment | 51,673 | 51,650 | ||||||||
| Other real estate owned | 43,334 | 37,300 | ||||||||
| Accrued interest receivable | 17,963 | 17,134 | ||||||||
| Deferred tax asset | 28,582 | 27,032 | ||||||||
| Other assets | 32,616 | 39,370 | ||||||||
| Total assets | $ | 4,398,606 | $ | 4,262,406 | ||||||
| Liabilities and stockholders' equity | ||||||||||
| Liabilities: | ||||||||||
| Deposits: | ||||||||||
| Demand, non-interest bearing | $ | 1,058,592 | $ | 1,004,272 | ||||||
| Demand, interest bearing | 276,993 | 261,961 | ||||||||
| Savings and money market savings | 788,338 | 754,446 | ||||||||
| Time deposits | 947,030 | 983,314 | ||||||||
| Total deposits | 3,070,953 | 3,003,993 | ||||||||
| Securities sold under agreements to repurchase | 676,870 | 628,192 | ||||||||
| Accrued interest payable and other liabilities | 15,239 | 7,141 | ||||||||
| Total liabilities | 3,763,062 | 3,639,326 | ||||||||
| Stockholders' Equity: | ||||||||||
| Common Stock, par value $20; authorized 250,000 | ||||||||||
| shares; issued and outstanding 130,928 shares | 2,619 | 2,619 | ||||||||
| Surplus | 12,044 | 12,044 | ||||||||
| Retained earnings | 614,453 | 601,861 | ||||||||
| Other comprehensive income | 6,428 | 6,556 | ||||||||
| Total stockholders' equity | 635,544 | 623,080 | ||||||||
| Total liabilities and stockholders' equity | $ | 4,398,606 | $ | 4,262,406 | ||||||
FARMERS & MERCHANTS BANK OF LONG BEACH Income Statements (unaudited) (in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| Interest income: | ||||||||
| Loans | $ | 29,399 | $ | 29,008 | ||||
| Securities held to maturity | 12,420 | 11,871 | ||||||
| Securities available for sale | 3,381 | 4,203 | ||||||
| Deposits with banks | 60 | 218 | ||||||
| Total interest income | 45,260 | 45,300 | ||||||
| Interest expense: | ||||||||
| Deposits | 2,133 | 2,772 | ||||||
| Securities sold under agreement to repurchase | 435 | 536 | ||||||
| Total interest expense | 2,568 | 3,308 | ||||||
| Net interest income | 42,692 | 41,992 | ||||||
| Provision for loan losses | 700 | 6,750 | ||||||
| Net int. income after provision for loan losses | 41,992 | 35,242 | ||||||
| Non-interest income: | ||||||||
| Service charges on deposit accounts | 1,171 | 1,308 | ||||||
| Gains on sale of securities | 7 | 442 | ||||||
| Merchant bankcard fees | 264 | 254 | ||||||
| Escrow fees | 205 | 149 | ||||||
| Other | 1,642 | 1,198 | ||||||
| Total non-interest income | 3,289 | 3,351 | ||||||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 10,690 | 10,235 | ||||||
| FDIC and other insurance expense | 1,118 | 1,049 | ||||||
| Occupancy expense | 1,258 | 1,327 | ||||||
| Equipment expense | 1,315 | 1,211 | ||||||
| Other real estate owned expense, net | 1,492 | 560 | ||||||
| Legal and professional fees | 751 | 497 | ||||||
| Marketing and promotional expense | 805 | 705 | ||||||
| Printing and supplies | 226 | 221 | ||||||
| Postage and delivery | 268 | 289 | ||||||
| Other | 3,334 | 1,057 | ||||||
| Total non-interest expense | 21,257 | 17,151 | ||||||
| Income before income tax expense | 24,024 | 21,442 | ||||||
| Income tax expense | 8,682 | 8,141 | ||||||
| Net income | $ | 15,342 | $ | 13,301 | ||||
| Basic and diluted earnings per common share | $ | 117.18 | $ | 101.59 | ||||
