Farmers & Merchants Bank of Long Beach (OTCBB: FMBL) today reported financial results for the fourth quarter and full year ended December 31, 2011.
“Farmers & Merchants Bank has reported double-digit percent increases in year-over-year net income for the past three years, coupled with a strong balance sheet,” said Henry Walker, chief executive officer of Farmers & Merchants Bank of Long Beach. “As the global and domestic economies continue to challenge the banking industry as a whole, we believe Farmers & Merchants is well positioned to attract customers who seek a community bank with financial strength and personalized service.”
For the 2011 fourth quarter, total interest income was $43.3 million, compared with $44.0 million in the fourth quarter of 2010. Total interest income for the year ended December 31, 2011 was $178.6 million, compared with $178.9 million reported for the same period in 2010.
Interest expense for the 2011 fourth quarter declined to $2.0 million from $2.7 million in the same quarter of 2010, attributed primarily to the roll over of long-term time deposits. Interest expense for the year totaled $9.5 million, compared with $12.0 million for the same period in 2010.
The Bank’s net interest income for the 2011 fourth quarter was $41.3 million, in line with the $41.3 million of net interest income for the same quarter of 2010. Net interest income for 2011 was $169.2 million, versus $166.9 million in 2010. Farmers & Merchant’s net interest margin was 4.08% for the year ended December 31, 2011, compared with 4.23% in the previous year.
The Bank’s provision for loan losses decreased to $5.5 million in the fourth quarter of 2011 from $6.5 million in the 2010 fourth quarter amid stabilizing economic conditions. Provision for loan losses declined to $14.2 million in 2011 from $26.0 million for 2010. The Bank’s allowance for loan losses as a percentage of loans outstanding was 2.80% at December 31, 2011, compared with 2.69% at December 31, 2010.
Non-interest income was $4.0 million for the 2011 fourth quarter, compared with $4.2 million in the 2010 fourth quarter. Non-interest income for the full 2011 year totaled $13.9 million, compared with $15.4 million for 2010.
Non-interest expense for the 2011 fourth quarter was $19.9 million, compared with $16.7 million for the same period last year. Non-interest expense for the year ended December 31, 2011 was $78.4 million, compared with $74.4 million last year.
The Bank’s net income for the 2011 fourth quarter was $13.8 million, or $105.29 per diluted share, compared with $15.3 million, or $117.16 per diluted share, in the 2010 fourth quarter. The Bank’s net income for 2011 rose to $59.1 million, or $451.53 per diluted share, from $53.0 million, or $405.06 per diluted share, for 2010.
At December 31, 2011, net loans increased to $2.03 billion from $2.01 billion at December 31, 2010. The Bank’s deposits grew 13.0% to $3.39 billion at the end of 2011, from $3.00 billion at December 31, 2010. Non-interest bearing deposits represented 37.2% of total deposits at December 31, 2011, versus 33.4% of total deposits at December 31, 2010. Total assets increased to $4.66 billion at the close of 2011 from $4.26 billion at December 31, 2010.
At December 31, 2011, Farmers & Merchants Bank remained “well-capitalized” under all regulatory categories, with a total risk-based capital ratio of 27.94%, a Tier 1 risk-based capital ratio of 26.67%, and a Tier 1 leverage ratio of 14.26%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 6.00% and 5.00%, respectively.
“Farmers & Merchants Bank finished 2011 with an 11 percent increase in full-year net income and a 13 percent increase in total deposits, a testament to our strength and stability in a tough economic environment,” said Daniel Walker, president and chairman of the board. “We remain focused on the fundamentals that have contributed to the Bank’s success for 105 years.”
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.
|FARMERS & MERCHANTS BANK OF LONG BEACH|
|Income Statements (Unaudited)|
|Three Months Ended Dec 31,||Year ended December 31,|
|Securities held to maturity||11,303||11,768||48,734||47,563|
|Securities available for sale||3,118||3,311||13,980||14,666|
|Deposits with banks||224||85||497||774|
|Total interest income||43,312||43,960||178,606||178,931|
|Securities sold under agreement to repurchase||294||449||1,535||2,043|
|Total interest expense||2,003||2,668||9,455||12,042|
|Net interest income||41,309||41,292||169,151||166,889|
|Provision for loan losses||5,450||6,500||14,200||25,950|
|Net int. income after provision for loan losses||35,859||34,792||154,951||140,939|
|Service charges on deposit accounts||1,481||1,240||5,114||5,073|
|Gains on sale of securities||71||-||174||870|
|Merchant bankcard fees||354||286||1,257||1,209|
|Total non-interest income||4,014||4,218||13,905||15,431|
|Salaries and employee benefits||9,850||9,631||41,814||40,165|
|FDIC and other insurance expense||1,643||1,265||4,671||4,881|
|Other real estate owned expense, net||1,081||(520||)||3,441||6,298|
|Legal and professional fees||1,321||689||3,896||2,436|
|Marketing and promotional expense||1,096||692||3,934||3,004|
|Total non-interest expense||19,864||16,733||78,428||74,428|
|Income before income tax expense||20,009||22,277||90,428||81,942|
|Income tax expense||6,223||6,938||31,310||28,909|
|Basic and diluted earnings per common share||$||105.29||$||117.16||$||451.53||$||405.06|
FARMERS & MERCHANTS BANK OF LONG BEACH
|Balance Sheets (Unaudited)|
|Dec. 31, 2011||Dec. 31, 2010|
|Cash and due from banks:|
|Less allowance for loan losses||(58,463||)||(55,627||)|
|Less unamortized deferred loan fees, net||(418||)||(426||)|
|Bank premises and equipment||55,155||51,650|
|Other real estate owned||23,036||37,300|
|Accrued interest receivable||16,464||17,134|
|Deferred tax asset||28,583||27,032|
|Liabilities and stockholders' equity|
|Demand, non-interest bearing||$||1,263,162||$||1,004,272|
|Demand, interest bearing||300,984||261,961|
|Savings and money market savings||909,794||754,446|
|Securities sold under agreements to repurchase||555,992||628,192|
|Accrued interest payable and other liabilities||39,659||7,141|
Common Stock, par value $20; authorized
250,000 shares; issued and outstanding
|Other comprehensive income||8,845||6,556|
|Total stockholders' equity||670,216||623,080|
|Total liabilities and stockholders' equity||$||4,659,345||$||4,262,406|
Executive Vice President
562-437-0011, ext. 5035
Corporate and Investor Relations
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