Farmers & Merchants Bank of Long Beach Reports 2023 Second-Quarter Results
Farmers & Merchants Bank of Long Beach reports financial results for Q2 2023, with total interest and dividend income rising to $102.3 million from $81.2 million in Q2 2022. Net interest income for Q2 2023 was $65.1 million compared to $78.1 million in Q2 2022. Net income for Q2 2023 was $18.1 million compared to $29.1 million in Q2 2022. Gross loans remained stable at $6.82 billion. Deposits decreased to $8.89 billion from $9.14 billion. Total assets increased to $12.27 billion.
Positive
Total interest and dividend income rose to $102.3 million in Q2 2023, an increase of 26% compared to Q2 2022. Net interest income decreased by 16% to $65.1 million in Q2 2023. Gross loans remained stable at $6.82 billion. Total assets increased to $12.27 billion.
Negative
Net income decreased by 38% to $18.1 million in Q2 2023 compared to Q2 2022. Deposits decreased to $8.89 billion from $9.14 billion.
07/19/2023 - 08:05 AM
LONG BEACH, Calif. --(BUSINESS WIRE)--
Farmers & Merchants Bank of Long Beach (OTCQX: FMBL) today reported financial results for the second quarter and six-months ended June 30, 2023.
“For 116 years, our first priority has always been, and continues to be, safeguarding our clients’ deposits through challenging economic times. F&M continues to accomplish this priority with capital levels far in excess of minimum regulatory requirements and a quality loan portfolio, which are testaments to our commitment to safety and soundness, as shown by our second quarter results,” said Henry Walker, president of Farmers & Merchants Bank of Long Beach. “The current turbulence facing the banking sector is not the first and will not be the last. The rapid rise in interest rates over the prior year will challenge earnings for the banking sector and for Farmers & Merchants Bank in the near-term, but it will not challenge the safety of F&M for our depositors.”
Income Statement
For the three months ended June 30, 2023, total interest and dividend income rose to $102.3 million $81.2 million $199.6 million $156.4 million
Total interest expense for the 2023 second quarter was $37.3 million $3.0 million $63.7 million $5.7 million
Net interest income for the 2023 second quarter was $65.1 million $78.1 million $135.9 million $150.7 million
Net interest margin was 1.93% for the 2023 second quarter, versus 2.76% in the 2022 second quarter. Net interest margin was 2.31% for the first half of 2023, compared with 2.69% for the same period in 2022.
There was no provision for credit losses for the 2023 and 2022 second quarters or for the first half of 2023. For the first half of 2022, the Bank recorded a $1.0 million
Total non-interest income was $4.4 million $4.7 million $8.2 million $9.8 million
Total non-interest expense for the 2023 second quarter was $50.8 million $46.9 million $99.1 million $90.6 million
Net income for the 2023 second quarter was $18.1 million $143.69 $29.1 million $228.51 $39.8 million $314.54 $56.9 million $445.33
Balance Sheet
At June 30, 2023, gross loans amounted to $6.82 billion $6.77 billion $98.9 million 1.45% of loans held-for-investment at June 30, 2023, compared with $76.5 million 1.13% of loans, held-for-investment at December 31, 2022.
The Bank’s deposits were $8.89 billion $9.14 billion
Non-interest-bearing deposits represented 34.7% of total deposits at June 30, 2023, versus 36.7% of total deposits at December 31, 2022.
Total assets increased to $12.27 billion $12.05 billion
At June 30, 2023, Farmers & Merchants Bank’s total risk-based capital ratio was 16.93% ; its tier 1 risk-based capital ratio was 15.68% , with a common equity tier 1 capital ratio of 15.68% , and a tier 1 leverage ratio of 10.86% . The minimum ratios for capital adequacy for a well-capitalized bank are 10.00% , 8.00% , 6.50% and 5.00% , respectively.
“As we move through 2023 and start to focus on 2024, we look for opportunities in the marketplace resulting from the disruption caused by the unprecedented interest rate increases, and we are finding it in strong customer growth,” said Daniel Walker, chief executive officer and chairman of the board. “F&M intends to emerge as an even more robust bank, as we have in prior periods of economic turbulence since our founding in 1907.”
About Farmers & Merchants Bank of Long Beach
Founded in Long Beach in 1907 by C.J. Walker, Farmers & Merchants Bank provides white-glove service to clients at 26 branches from San Clemente to Santa Barbara , as well as through its Online and Mobile Banking platforms. The Bank offers 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 .
FARMERS & MERCHANTS BANK OF LONG BEACH
Income Statements (Unaudited)
(In thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2023
2022
2023
2022
Interest and dividend income:
Loans
$
74,632
$
57,048
$
147,107
$
112,767
Investment securities
22,345
22,219
45,158
40,888
Investments in FHLB and FRB stock
414
286
814
558
Interest-bearing deposits in financial institutions
4,957
1,613
6,557
2,209
Total interest and dividend income
102,348
81,166
199,636
156,422
Interest expense:
Deposits
19,611
2,042
33,569
4,029
Securities sold under repurchase agreements
7,274
997
13,294
1,675
Borrowings
10,390
-
16,881
-
Total interest expense
37,275
3,039
63,744
5,704
Net interest income
65,073
78,127
135,892
150,718
Provision for credit losses
-
-
-
(1,000
)
Net interest income after provision for credit losses
65,073
78,127
135,892
151,718
Non-interest income:
Service charges on deposit accounts
1,810
1,565
3,354
3,100
Card income
370
1,074
600
2,044
Other income
2,206
2,097
4,267
4,665
Total non-interest income
4,386
4,736
8,221
9,809
Non-interest expense:
Salaries and employee benefits
30,915
29,437
62,708
58,547
FDIC and other insurance expense
1,846
1,014
3,604
2,014
Occupancy expense
3,711
3,853
7,538
7,401
Software and equipment expense
3,803
3,771
7,663
7,413
Professional and legal services
2,353
1,962
3,483
3,427
Marketing expense
2,669
2,196
3,551
3,217
Other expense
5,522
4,688
10,567
8,577
Total non-interest expense
50,819
46,921
99,114
90,596
Income before income tax expense
18,640
35,942
44,999
70,931
Income tax expense
491
6,853
5,227
14,007
Net income $
18,149
$
29,089
$
39,772
$
56,924
Basic earnings per common share
$
147.28
$
233.52
$
322.75
$
455.13
Diluted earnings per common share
$
143.69
$
228.51
$
314.54
$
445.33
Basic weighted-average shares outstanding
123,228
124,566
123,228
125,071
Diluted weighted-average shares outstanding
126,301
127,297
126,444
127,823
FARMERS & MERCHANTS BANK OF LONG BEACH
Balance Sheets (Unaudited)
(In thousands, except share and per share data)
June 30, 2023 Dec. 31, 2022
Assets
Cash and due from banks:
Noninterest-bearing balances
$
70,537
$
75,489
Interest-bearing balances
487,076
67,369
Total cash and due from banks
557,613
142,858
Securities available-for-sale, at fair value
117,897
123,919
Securities held-to-maturity, at amortized cost
4,552,612
4,789,522
Gross loans
6,824,991
6,765,391
Allowance for loan losses
(98,861
)
(76,503
)
Unamortized deferred loan fees, net
(13,377
)
(14,429
)
Loans, net
6,712,753
6,674,459
Investments in FHLB and FRB stock, at cost
22,702
27,088
Bank premises and equipment, net
122,698
118,228
Deferred tax assets, net
43,453
31,538
Other assets
138,487
147,132
Total assets $
12,268,215
$
12,054,744
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing demand deposits
$
3,087,354
$
3,355,298
Interest-bearing demand deposits
2,049,638
2,212,509
Savings and money market savings
2,725,261
2,668,334
Time deposits
1,032,476
906,355
Total deposits
8,894,729
9,142,496
Securities sold under repurchase agreements
930,489
785,912
Borrowings
1,000,000
700,000
Other liabilities
118,129
113,254
Total liabilities
10,943,347
10,741,662
Stockholders' Equity:
Common Stock, par value $20
123,228 shares issued and outstanding at
June 30, 2023 and December 31, 2022
2,465
2,465
Additional paid-in capital
181,104
177,433
Retained earnings
1,148,270
1,140,897
Accumulated other comprehensive loss
(6,971
)
(7,713
)
Total stockholders' equity
1,324,868
1,313,082
Total liabilities and stockholders' equity $
12,268,215
$
12,054,744
View source version on businesswire.com: https://www.businesswire.com/news/home/20230719982203/en/
John Hinrichs
Roger Pondel
investor@pondel.com
Source: Farmers & Merchants Bank of Long Beach
What was the net interest income for Q2 2023?
The net interest income for Q2 2023 was $65.1 million.
What was the net income for Q2 2023?
The net income for Q2 2023 was $18.1 million.
What was the gross loan amount at the end of Q2 2023?
The gross loan amount at the end of Q2 2023 was $6.82 billion.
What were the total assets at the end of Q2 2023?
The total assets at the end of Q2 2023 were $12.27 billion.
What were the deposits at the end of Q2 2023?
The deposits at the end of Q2 2023 were $8.89 billion.
