Farmers & Merchants Bank of Long Beach Reports 2013 First Quarter Results (4/23/13)
-- Total Assets Increase to Record $5.07 Billion --
LONG BEACH, Calif.--(BUSINESS WIRE)--Farmers & Merchants Bank of Long Beach (OTCBB: FMBL) today reported financial results for the first quarter ended March 31, 2013.
"Farmers & Merchants achieved a new milestone in the first quarter, with the Bank’s total assets surpassing the $5 billion mark for the first time,” said Henry Walker, president of Farmers & Merchants Bank of Long Beach. “This achievement demonstrates the Bank’s vitality during a challenging environment for our industry. Steady and stable growth is a Farmers & Merchants hallmark that has long attracted customers to the Bank.”
For the three months ended March 31, 2013, interest income was $39.6 million, compared with $46.3 million in the first quarter of 2012; the decrease reflects the very competitive pricing environment for loans. Interest expense for the 2013 first quarter declined to $1.5 million from $1.8 million in the first quarter of 2012, primarily related to the continuance of the low interest rate environment.
Net interest income for the 2013 first quarter was $38.1 million, compared with $44.4 million for the first quarter of 2012. Farmers & Merchants’ net interest margin was 3.32% for the 2013 first quarter, compared with 4.07% in the 2012 first quarter.
The Bank did not have a provision for loan losses in the first quarter of 2013, nor in the same period a year ago, reflecting the asset quality of the Bank’s loan portfolio. The Bank’s allowance for loan losses as a percentage of loans outstanding was 2.50% at March 31, 2013, compared with 2.86% at March 31, 2012.
Non-interest income was $9.7 million for the 2013 first quarter, which included a one-time gain of $3.6 million from the sale of a closed branch building in North Long Beach. Non-interest income was $6.4 million for the first quarter a year ago.
Net income for the 2013 first quarter totaled $16.7 million, or $127.78 per diluted share, compared with net income of $18.5 million, or $141.48 per diluted share, for the 2012 first quarter.
At March 31, 2013, net loans increased to $1.97 billion from $1.93 billion at December 31, 2012. The Bank’s deposits totaled $3.74 billion at the end of the 2013 first quarter, compared with $3.69 billion at December 31, 2012. Non-interest bearing deposits represented 39.4% of total deposits at March 31, 2013, versus 40.0% of total deposits at December 31, 2012. Total assets increased to $5.07 billion at the close of the 2013 first quarter from $4.99 billion at December 31, 2012.
At March 31, 2013, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 29.80%, a Tier 1 risk-based capital ratio of 28.54%, and a Tier 1 leverage ratio of 14.44%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 6.00% and 5.00%, respectively.
“We made strategic investments in people during the first quarter to further enhance our lending and marketing activities, while continuing to maintain the fundamentals that support a healthy balance sheet,” said Daniel Walker, chief executive officer and chairman of the board. “To continue down the path of reaching new audiences, we enhanced the breadth of our marketing team, naming Adam Michaelson as Chief Marketing Officer. Adam’s marketing acumen and experience in the financial services industry are well positioned for F&M, and we welcome him to the team.”
About Farmers & Merchants Bank of Long Beach
Farmers & Merchants Bank of Long Beach provides personal and business banking services through 21 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. http://www.businesswire.com/news/home/20130423005578/en/Farmers-Merchants-Bank-Long-Beach-Reports-2013