Farmers & Merchants Bank of Long Beach Reports 2013 Fourth-Quarter and Full-Year Results (1/16/14)
-- Net Loans Grew 24% in Year-Over-Year Comparison --
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, 2013.
“Our strong loan growth in 2013 reflects the hard work and results-driven focus of F&M’s newly expanded lending team,” said Henry Walker, president of Farmers & Merchants Bank of Long Beach. “The Bank’s position of strength was further enhanced during the year with additional strategic hires, as well as the opening of two new branches – Corona del Mar and Downey.
“F&M is entering 2014 with the financial health, vigor and core values that have been hallmarks of the Bank since its inception in 1907,” Walker added.
Income Statement
For the 2013 fourth quarter, total interest income was $43.5 million, compared with $40.4 million in the fourth quarter of 2012. Total interest income for the year ended December 31, 2013 was $163.2 million, compared with $171.1 million reported for 2012.
Interest expense for the 2013 fourth quarter was $1.6 million, essentially in line with interest expense for the same quarter in 2012. Interest expense for the full 2013 year declined to $6.2 million from $7.0 million in 2012, reflecting the protracted low interest rate environment.
Farmers & Merchants’ net interest income for the 2013 fourth quarter was $41.9 million, compared with net interest income of $38.8 million for the same quarter of 2012. Net interest income for 2013 was $157.0 million, versus $164.1 million in 2012.
Farmers & Merchants’ net interest margin was 3.30% for the year ended December 31, 2013, compared with 3.65% in the previous year.
The Bank did not have a provision for loan losses in 2013, nor in 2012, amid continued strength in the quality of its loan portfolio. The Bank’s allowance for loan losses as a percentage of loans outstanding was 2.09% at December 31, 2013, compared with 2.57% at December 31, 2012.
Non-interest income was $7.2 million for the 2013 fourth quarter, compared with $6.2 million in the 2012 fourth quarter. Non-interest income for the full 2013 year totaled $37.8 million, versus $26.6 million for 2012.
Non-interest expense for the 2013 fourth quarter was $27.2 million, compared with $26.4 million for the same period last year. Non-interest expense for the year ended December 31, 2013 was $104.3 million, compared with $98.5 million last year.
The Bank’s net income for the 2013 fourth quarter was $15.0 million, or $114.41 per diluted share, compared with $13.2 million, or $101.13 per diluted share, in the 2012 fourth quarter. The Bank’s net income for 2013 was $62.2 million, or $474.80 per diluted share, compared with $63.4 million, or $484.13 per diluted share, for 2012.
Balance Sheet
At December 31, 2013, net loans totaled $2.40 billion, compared with $1.93 billion at December 31, 2012. The Bank’s deposits grew to $3.83 billion at the end of 2013, from $3.69 billion at December 31, 2012. Non-interest bearing deposits represented 38.5% of total deposits at December 31, 2013, versus 40.0% of total deposits at December 31, 2012. Total assets increased to $5.21 billion at the close of 2013 from $5.00 billion at December 31, 2012.
At December 31, 2013, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 27.45%, a Tier 1 risk-based capital ratio of 26.20%, and a Tier 1 leverage ratio of 14.48%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 6.00% and 5.00%, respectively.
“Our solid loan growth was approached with the conservative lending standards that are fundamental to F&M’s strength,” said Daniel Walker, chief executive officer and chairman of the board. “Additionally, our new branch openings are indicative of the opportunities we see in Southern California, as we continue to serve a region where a strong and stable banking partner is a key ingredient of an economy on the mend.”
About Farmers & Merchants Bank
Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank has 23 branches in Los Angeles and Orange Counties. The Bank specializes in commercial and small business banking along with business loan programs. Farmers & Merchants Bank of Long Beach 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 www.fmb.com.
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