Farmers & Merchants Bank of Long Beach Reports 2025 Second Quarter Results

Jul 22 2025 13:05 BST

LONG BEACH, Calif.--(BUSINESS WIRE)--Jul. 22, 2025-- Farmers & Merchants Bank of Long Beach (“F&M” or the “Bank”) (OTCQX: FMBL) today reported financial results for the second quarter ended June 30, 2025.

"As we enter the second half of 2025, all of our stakeholders—customers, shareholders, F&M team members, and community partners—should find great comfort in the Bank’s continued strength and stability,” said W. Henry Walker, Chief Executive Officer. "Our solid deposit base, conservative loan portfolio, and balance sheet integrity remain cornerstones of our long-term strategy. All of our capital ratios not only meet, but far exceed regulatory requirements, underscoring the disciplined, resilient foundation we have built over time."

Daniel Walker, F&M’s Executive Chairman, added, "Loan demand across the communities we serve remains stable, a testament to the trust we have earned and the value we continue to provide. By offering competitive rates and maintaining a prudent approach to lending, our team is actively supporting local growth, while preserving F&M’s financial health. Combined with our experienced, talented management team, we are well-positioned to reach our next growth plateau and to continue delivering results that benefit all those we serve."

Operating Results

For the second quarter of 2025, total interest and dividend income amounted to $105.1 million, compared with $108.7 million in the second quarter of 2024. Total interest and dividend income for the six months ended June 30, 2025 decreased to $209.8 million from $217.3 million reported for the six months ended June 30, 2024.

Total interest expense for the second quarter of 2025 was $38.2 million, compared with $51.6 million a year ago. Interest expense for the six months ended June 30, 2025 was $78.7 million, compared to $102.8 million reported for the same period in 2024.

Net interest income before provision for credit losses for the second quarter of 2025 rose to $66.9 million, from $57.1 million for the second quarter of 2024. Net interest income before provision for credit losses for the six months ended June 30, 2025 was $131.0 million, compared with $114.5 million for the six months ended June 30, 2024.

F&M’s net interest margin improved to 2.42% for the second quarter of 2025, from 1.92% for the second quarter of 2024. Net interest margin was 2.35% for the six months ended June 30, 2025, compared with 1.92% for the same period in 2024.

For the second quarter of 2025, the Bank recorded a $3.3 million provision for credit losses, compared with a $1.0 million recapture of provision for credit losses in the second quarter of 2024. For the six months ended June 30, 2025, the Bank recorded a $1.3 million provision for credit losses, compared with a $3.5 million recapture of provision for credit losses for the six months ended June 30, 2024.

Total non-interest income was $4.5 million for the second quarter of 2025, compared with non-interest income of $10.6 million for the same period last year. For the six months ended June 30, 2025, total non-interest income was $8.8 million, compared with $18.8 million for the six months ended June 30, 2024.

Total non-interest expense for the second quarter of 2025 was $49.4 million, compared with $49.8 million for the second quarter of 2024. Non-interest expense for the six months ended June 30, 2025 was $97.4 million, compared with $99.8 million for the six months ended June 30, 2024.

Second quarter 2025 net income increased to $13.9 million, or $112.71 per diluted share, from $13.5 million, or $107.86 per diluted share for the second quarter of 2024. Net income for the six months ended June 30, 2025 was $30.7 million, or $249.01 per diluted share, compared with $26.5 million, or $210.54 per diluted share, for the six months ended June 30, 2024.

Balance Sheet

Gross loans were $6.47 billion as of June 30, 2025 and December 31, 2024. The Bank’s allowance for loan losses totaled $97.5 million, or 1.51% of loans held-for-investment at June 30, 2025, compared with $96.6 million, or 1.50% of loans held-for investment at December 31, 2024.

The Bank’s total deposits at June 30, 2025 amounted to $8.69 billion, compared with $8.77 billion at December 31, 2024. Noninterest-bearing deposits represented 34.2% of total deposits at June 30, 2025, and 33.2% at December 31, 2024.

Securities sold under repurchase agreements decreased to $956.3 million at June 30, 2025, from $991.9 million at December 31, 2024. Borrowings were $300.0 million at June 30, 2025, a decrease of $200.0 million from $500.0 million at December 31, 2024.

Total assets at June 30, 2025 were $11.40 billion, compared with $11.69 billion at December 31, 2024. Total stockholders’ equity was $1.39 billion at June 30, 2025, up from $1.37 billion at December 31, 2024.

Capital

All of F&M’s regulatory capital ratios are well in excess of regulatory requirements for a “well-capitalized” financial institution. The Bank’s total risk-based capital ratio was 19.16%; its tier 1 risk-based capital ratio was 17.91%, with a common equity tier 1 capital ratio of 17.91%, and a tier 1 leverage ratio of 12.18%, as of June 30, 2025. The minimum ratios for capital adequacy for a “well-capitalized” bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively.

Stock Repurchase Program

During the six months ended June 30, 2025, the Bank repurchased 704 shares of its common stock for $4.0 million on the open market at an average repurchase price of $5,661.92 per share. Under the stock purchase program, the Bank may purchase shares of its common stock through various means, including open market transactions and privately negotiated transactions, in each case, subject to applicable requirements and laws.

To the extent the Bank repurchases shares, the number of shares repurchased and the timing of any repurchases will depend on a number of factors, including, but not limited to, stock price, trading volume, regulatory requirements, general business conditions and other factors. The Bank may choose to modify, suspend or discontinue such proposed purchases at any time and anticipates that any such repurchases will be funded from existing cash and cash equivalents or future cash flow. The stock repurchase program does not obligate the Bank to repurchase any specific number of shares in any particular period.

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 27 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 share and per share data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2025			2024			2025			2024

Interest and dividend income:

Loans	$	76,008	$	74,025		$	150,950		$	149,510
Investment securities		17,362		19,703			36,611			40,074
Interest-bearing deposits in financial institutions		11,278		14,475			21,293			26,716
Investments in FHLB and FRB stock		448		460			905			999

Total interest and dividend income		105,096		108,663			209,759			217,299

Interest expense:

Deposits		26,995		29,319			54,344			56,778
Securities sold under repurchase agreements		8,221		9,483			16,603			19,093
Borrowings		2,963		12,767			7,800			26,890

Total interest expense		38,179		51,569			78,747			102,761

Net interest income before provision for credit losses		66,917		57,094			131,012			114,538

Provision for credit losses

Loans		2,100		-			2,100			(1,500	)
Investment securities		-		-			-			-
Reserve for unfunded loan commitments		1,200		(1,000	)		(800	)		(2,000	)

Total provision for credit losses		3,300		(1,000	)		1,300			(3,500	)

Net interest income after provision for credit losses		63,617		58,094			129,712			118,038

Non-interest income:

Service charges on deposit accounts		1,996		1,877			4,037			3,686
Card income		292		214			496			439
Other income		2,194		8,473			4,272			14,682

Total non-interest income		4,482		10,564			8,805			18,807

Non-interest expense:

Salaries and employee benefits		31,424		30,974			62,295			61,751
FDIC and other insurance expense		1,941		2,637			4,019			5,511
Occupancy expense		3,986		3,909			7,948			7,799
Software and equipment expense		4,447		4,468			8,891			8,731
Other real estate owned expense		5		212			13			249
Professional and legal services		2,414		3,102			4,504			5,597
Marketing expense		1,682		919			2,901			1,957
Other expense		3,547		3,533			6,873			8,240

Total non-interest expense		49,446		49,754			97,444			99,835

Income before income tax expense		18,653		18,904			41,073			37,010

Income tax expense		4,773		5,370			10,381			10,474

Net income	$	13,880	$	13,534		$	30,692		$	26,536

Basic earnings per common share	$	113.74	$	111.12		$	251.29		$	217.01
Diluted earnings per common share	$	112.71	$	107.86		$	249.01		$	210.54
Basic weighted-average shares outstanding		122,030		121,792			122,138			122,282
Diluted weighted-average shares outstanding		123,145		125,481			123,257			126,038

FARMERS & MERCHANTS BANK OF LONG BEACH
Balance Sheets (Unaudited)
(In thousands, except share and per share data)

	Jun. 30, 2025			Dec. 31, 2024

Assets

Cash and due from banks:
Non-interest-bearing balances	$	82,499		$	72,319
Interest-bearing balances		1,137,443			976,039

Total cash and due from banks		1,219,942			1,048,358
Securities available-for-sale, at fair value		61,725			281,219
Securities held-to-maturity, at amortized cost net of allowance for credit losses		3,446,813			3,687,417
Loans held for sale		626			1,132
Gross loans		6,467,871			6,467,991
Unamortized deferred loan fees, net		(9,498	)		(8,811	)
Allowance for credit losses on loans		(97,528	)		(96,585	)

Loans, net		6,360,845			6,362,595

Investments in FHLB and FRB stock, at cost		22,284			22,472
Bank premises and equipment, net		120,005			118,474
Deferred tax assets, net		43,446			42,427
Other assets		119,853			125,975

Total assets	$	11,395,539		$	11,690,069


Liabilities and Stockholders' Equity

Liabilities:

Deposits:
Non-interest-bearing deposits	$	2,971,470		$	2,908,598
Interest-bearing deposits		1,744,930			2,047,524
Savings and money market savings		2,929,334			2,784,678
Time deposits		1,042,313			1,028,793

Total deposits		8,688,047			8,769,593
Securities sold under repurchase agreements		956,310			991,869
Borrowings		300,000			500,000
Other liabilities		62,830			59,724

Total liabilities		10,007,187			10,321,186

Stockholders' Equity:

Common Stock, par value $20; authorized 250,000 shares; 122,126 and 122,728 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively		2,443			2,455
Additional paid-in capital		164,398			169,136
Retained earnings		1,223,081			1,199,221
Accumulated other comprehensive loss		(1,570	)		(1,929	)

Total stockholders' equity		1,388,352			1,368,883

Total liabilities and stockholders' equity	$	11,395,539		$	11,690,069

View source version on businesswire.com: https://www.businesswire.com/news/home/20250721154987/en/

Kevin Tiber
President
562-499-4829

Roger Pondel
PondelWilkinson Inc.
Investor Relations
310-279-5980
investor@pondel.com

Source: Farmers & Merchants Bank of Long Beach

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Farmers & Merchants Bank of Long Beach Reports 2025 Second Quarter Results