Farmers & Merchants Bank of Long Beach Reports 2018 Fourth-Quarter and Full-Year Results
LONG BEACH, Calif.--(BUSINESS WIRE)--Jan 22, 2019--Farmers & Merchants Bank of Long Beach (OTCQB: FMBL) today reported financial results for the fourth quarter and full year ended December 31, 2018.
“Farmers and Merchants Bank achieved strong results for 2018, bolstered by a 9% increase in loan growth for the year that reflected the Bank’s solid reputation for responsive customer service and its competitive position in the marketplace,” said Henry Walker, president of Farmers & Merchants Bank. “As a 112-year-old regional bank with 25 branches, we provide high touch, white glove client service, coupled with top technology, fulfilling the niche of California’s strongest.”
For the 2018 fourth quarter, total interest and dividend income was $68.9 million, compared with $62.0 million in the fourth quarter of 2017. Total interest and dividend income for the year ended December 31, 2018 was $261.0 million, compared with $238.9 million reported for 2017.
Interest expense for the 2018 fourth quarter was $6.5 million, compared with $4.0 million in the same period a year ago. Interest expense for 2018 was $21.9 million versus $14.4 million in 2017.
Farmers & Merchants’ net interest income for the 2018 fourth quarter was $62.4 million, compared with net interest income of $58.1 million for the fourth quarter in 2017. Net interest income for 2018 was $239.1 million, versus $224.6 million in 2017.
Net interest margin for the fourth quarter 2018 was 3.56%, compared with net interest margin of 3.44% for the same period in 2017. Farmers & Merchants’ net interest margin was 3.45% for the year ended December 31, 2018, compared with 3.43% in the previous year.
Farmers & Merchants’ provision for loan losses was $500.0 thousand in the fourth quarter of 2018, while the Bank did not record a loan loss provision in the same period a year ago. The Bank’s provision for loan losses was $2.5 million for the year ended December 31, 2018, compared with a loan loss provision of $1.0 million for the year ended December 31, 2017. The Bank’s allowance for loan losses as a percentage of loans outstanding was 1.47% at December 31, 2018, compared with 1.53% at December 31, 2017.
Non-interest income was $4.6 million for the 2018 fourth quarter, compared with non-interest income of $6.5 million for the 2017 fourth quarter. Non-interest income for 2018 totaled $18.2 million, compared with $28.9 million in 2017.
Non-interest expense for the 2018 fourth quarter was $38.2 million, compared with $42.3 million for the same period last year. Non-interest expense for the year ended December 31, 2018 was $146.1 million, compared with $161.8 million last year.
The Bank’s net income for the 2018 fourth quarter was $22.1 million, or $169.17 per diluted share, compared with net income of $11.5 million, or $87.53 per diluted share, for the 2017 fourth quarter. The Bank’s net income for 2018 was $85.6 million, or $654.07 per diluted share, compared with $64.8 million, or $494.65 per diluted share, for 2017.
At December 31, 2018, net loans totaled $4.19 billion, compared with $3.83 billion at December 31, 2017. The Bank’s deposits grew to $5.58 billion at the end of 2018, from $5.39 billion at December 31, 2017. Non-interest-bearing deposits represented 37.6% of total deposits at December 31, 2018 and the end of 2017. Total assets increased to $7.31 billion at the close of 2018 from $6.99 billion at December 31, 2017.
At December 31, 2018, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 19.87%, a tier 1 risk-based capital ratio of 18.63%, a common equity tier 1 capital ratio of 18.63%, and a tier 1 leverage ratio of 14.04%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively.
“The strength of F&M’s brand is consistent with the excellent health of our balance sheet and the growth we achieved during the past year,” said Daniel Walker, chief executive officer and chairman of the board of Farmers & Merchants Bank. “Entering the new year, we are well positioned to continue our leadership role in the communities we serve, and extend deep gratitude to our customers, special thanks to our employees for their dedication and teamwork, and appreciation to all of our stockholders.”
About Farmers & Merchants Bank
Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank has 25 branches across Orange County, Long Beach, the South Bay and Santa Barbara. The Bank specializes in commercial and small business banking, business loan programs, home loans, and a robust offering of consumer retail banking products, including checking, savings and youth accounts. Farmers & Merchants Bank 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 the website, www.fmb.com.
*An accounting standard effective for 2018 requires a net presentation of revenues and expenses for the Bank’s merchant and debit card products; periods prior to 2018 have not been restated.
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KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: SMALL BUSINESS PROFESSIONAL SERVICES BANKING CONSULTING FINANCE COMMUNICATIONS PUBLIC RELATIONS/INVESTOR RELATIONS
SOURCE: Farmers & Merchants Bank
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PUB: 01/22/2019 08:05 AM/DISC: 01/22/2019 08:05 AM