Skip to main content

Farmers & Merchants Bank of Long Beach Reports 2025 Third Quarter and Year-to-Date Results

Farmers & Merchants Bank of Long Beach seeks to keep all shareholders directly informed about the Bank’s activities. To do so, we must be able to reach you. Since the default setting by most brokerages is “Objecting” for such direct communication, please check with your representative to be certain your records reflect that you are a “Non-Objecting Beneficial Owner,” also known as “NOBO.” This will assure that you receive communications directly from F&M in a timely manner. Please contact us if you have questions.

Farmers & Merchants Bank of Long Beach (“F&M” or the “Bank”) (OTCQX: FMBL) today reported financial results for the third quarter and nine-months ended September 30, 2025. F&M also announced that its Board of Directors has authorized a new $10 million stock repurchase program.

“F&M’s third-quarter performance underscores the strength and stability that define our brand,” said W. Henry Walker, Chief Executive Officer. “We continue to benefit from a loyal and stable deposit base, along with a conservative approach to lending that has served our clients, shareholders, and communities well through a range of economic cycles. The consistency of our results reflects a culture focused on sound banking fundamentals and long-term relationships. We reported measurable improvements in net interest margin and net income for the third quarter, with all of F&M’s capital ratios well in excess of regulatory requirements for a ‘well-capitalized’ financial institution. Subsequent to the close of the third quarter, we were gratified to have closed on a $200 million equity investment in the Bank by a large financial services company that purchased 16,261 shares of non-voting Series A Preferred Stock, which is the economic equivalent of the Bank’s common stock.”

Daniel Walker, F&M’s Executive Chairman, added, “The operating environment for regional banks is beginning to show some signs of balance, as inflation trends ease and the pace of rate cuts is coming into clearer focus. While we remain cautious about the timing and shape of economic normalization and how it will impact F&M, the recent equity investment in the Bank further enhances our already strong balance sheet, and we are optimistic about the long-term opportunities for us to further grow our franchise and deliver sustainable value for all of our stakeholders. Our commitment to prudent growth, operational excellence, and enhanced shareholder value remains unwavering.”

Operating Results

For the third quarter of 2025, total interest and dividend income amounted to $109.1 million, compared with $113.6 million in the third quarter of 2024. Total interest and dividend income for the nine months ended September 30, 2025 amounted to $318.9 million, compared with $330.9 million reported for the nine months ended September 30, 2024.

Total interest expense for the third quarter of 2025 was $39.9 million, compared with $53.2 million a year ago. Interest expense for the nine months ended September 30, 2025 was $118.6 million, compared to $156.0 million reported for the same period in 2024.

Net interest income before provision for credit losses for the third quarter of 2025 rose to $69.3 million, from $60.4 million for the third quarter of 2024. Net interest income before provision for credit losses for the nine months ended September 30, 2025 was $200.3 million, compared with $174.9 million for the nine months ended September 30, 2024.

F&M’s net interest margin improved to 2.47% for the third quarter of 2025, from 2.02% for the third quarter of 2024. Net interest margin was 2.39% for the nine months ended September 30, 2025, compared with 1.95% for the same period in 2024.

For the third quarter of 2025, the Bank recorded a $1.9 million recapture of provision for credit losses, compared with a $3.7 million recapture of provision for credit losses in the third quarter of 2024. For the nine months ended September 30, 2025, the Bank recorded a $600 thousand recapture of provision for credit losses, compared with a $7.2 million recapture of provision for credit losses for the nine months ended September 30, 2024.

Total non-interest income was $4.4 million for the third quarter of 2025, compared with non-interest income of $4.5 million for the same period last year. For the nine months ended September 30, 2025, total non-interest income was $13.2 million, compared with $23.3 million for the nine months ended September 30, 2024.

Total non-interest expense for the third quarter of 2025 was $51.3 million, compared with $48.6 million for the third quarter of 2024. Non-interest expense for the nine months ended September 30, 2025, was $148.8 million, compared with $148.4 million for the nine months ended September 30, 2024.

Third quarter 2025 net income increased to $18.1 million, or $147.32 per diluted share, from $14.3 million, or $115.17 per diluted share, for the third quarter of 2024. Net income for the nine months ended September 30, 2025 was $48.8 million, or $396.30 per diluted share, compared with $40.9 million, or $325.64 per diluted share, for the nine months ended September 30, 2024.

Balance Sheet

Gross loans were $6.24 billion as of September 30, 2025, compared with $6.47 billion as of December 31, 2024. The Bank’s allowance for loan losses totaled $89.9 million, or 1.44 % of loans held-for-investment at September 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 September 30, 2025 amounted to $8.87 billion, compared with $8.77 billion at December 31, 2024. Noninterest-bearing deposits represented 33.9% of total deposits at September 30, 2025, and 33.2% at December 31, 2024.

Securities sold under repurchase agreements decreased to $977.7 million at September 30, 2025, from $991.9 million at December 31, 2024. Borrowings were $300.0 million at September 30, 2025, a decrease of $200.0 million from $500.0 million at December 31, 2024.

Total assets at September 30, 2025 were $11.62 billion, compared with $11.69 billion at December 31, 2024. Total stockholders’ equity was $1.40 billion at September 30, 2025, up from $1.37 billion at December 31, 2024.

Capital

The Bank’s total risk-based capital ratio was 19.65%; its tier 1 risk-based capital ratio was 18.40%, with a common equity tier 1 capital ratio of 18.40%, and a tier 1 leverage ratio of 12.15%, as of September 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

Reflecting confidence in the Bank’s long-term outlook, the Board of Directors has authorized a new stock repurchase program, authorizing the Bank to repurchase up to $10 million of its common stock from time to time through May 9, 2026.

Under the new stock repurchase program, the Bank may purchase shares of its common stock from time to time 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 repurchases at any time and anticipates that any such repurchases will be funded from existing cash and cash equivalents or future cash flow. The new stock repurchase program does not obligate the Bank to repurchase any specific number of shares in any particular period.

During the nine months ended September 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 its previous $10 million stock repurchase plan, which has expired.

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.

Forward-Looking Statements

In addition to the historical information contained herein, this press release may contain forward-looking statements about Farmers & Merchants Bank of Long Beach, including, but not limited to, opportunities to further grow the Bank’s franchise. Readers should understand that such forward-looking statements are neither promises nor guarantees and are subject to various risks and uncertainties, many of which are beyond the Bank’s control. Such risks and uncertainties could cause actual results and actions to differ materially from those contemplated. Factors that could cause or contribute to such differences include, but are not limited to, credit, market, operational, liquidity and interest rate risks associated with the Bank’s business and operations, changes in interest rates, changes in general business and economic conditions, changes in banking laws and regulations, loan losses, increases in expenses, changes in rates charged on loans and earned on investments, accounting estimates and judgments, changes in rates on deposits, competition effects, the amount of non-interest income earned, adverse consequences caused by the coronavirus pandemic, as well as other factors. Given these factors, readers should not place undue reliance on any forward-looking statement.

FARMERS & MERCHANTS BANK OF LONG BEACH
Income Statements (Unaudited)
(In thousands, except share and per share data)
 
Three Months Ended September 30, Nine Months Ended September 30,

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 
Interest and dividend income:
 
Loans

$

76,868

 

$

75,743

 

$

227,818

 

$

225,253

 

Investment securities

 

15,661

 

 

20,545

 

 

52,272

 

 

60,619

 

Interest-bearing deposits in financial institutions

 

16,150

 

 

16,857

 

 

37,443

 

 

43,573

 

Investments in FHLB and FRB stock

 

455

 

 

456

 

 

1,360

 

 

1,455

 

 
Total interest and dividend income

 

109,134

 

 

113,601

 

 

318,893

 

 

330,900

 

 
Interest expense:
 
Deposits

 

28,631

 

 

31,789

 

 

82,975

 

 

88,567

 

Securities sold under repurchase agreements

 

8,267

 

 

9,783

 

 

24,870

 

 

28,876

 

Borrowings

 

2,982

 

 

11,677

 

 

10,782

 

 

38,567

 

 
Total interest expense

 

39,880

 

 

53,249

 

 

118,627

 

 

156,010

 

 
Net interest income before provision for credit losses

 

69,254

 

 

60,352

 

 

200,266

 

 

174,890

 

 
Provision for credit losses
 
Loans

 

(3,600

)

 

(1,600

)

 

(1,500

)

 

(3,100

)

Investment securities

 

-

 

 

-

 

 

-

 

 

-

 

Reserve for unfunded loan commitments

 

1,700

 

 

(2,100

)

 

900

 

 

(4,100

)

 
Total provision for credit losses

 

(1,900

)

 

(3,700

)

 

(600

)

 

(7,200

)

 
Net interest income after provision for credit losses

 

71,154

 

 

64,052

 

 

200,866

 

 

182,090

 

 
Non-interest income:
 
Service charges on deposit accounts

 

2,024

 

 

1,884

 

 

6,061

 

 

5,570

 

Card income

 

239

 

 

226

 

 

735

 

 

665

 

Other income

 

2,156

 

 

2,432

 

 

6,428

 

 

17,114

 

 
Total non-interest income

 

4,419

 

 

4,542

 

 

13,224

 

 

23,349

 

 
Non-interest expense:
 
Salaries and employee benefits

 

32,460

 

 

29,677

 

 

94,755

 

 

91,428

 

FDIC and other insurance expense

 

2,066

 

 

2,506

 

 

6,085

 

 

8,017

 

Occupancy expense

 

4,032

 

 

4,057

 

 

11,980

 

 

11,856

 

Software and equipment expense

 

4,453

 

 

4,456

 

 

13,344

 

 

13,187

 

Other real estate owned expense

 

-

 

 

83

 

 

13

 

 

332

 

Professional and legal services

 

3,362

 

 

3,198

 

 

7,866

 

 

8,795

 

Marketing expense

 

1,418

 

 

900

 

 

4,319

 

 

2,857

 

Other expense

 

3,556

 

 

3,713

 

 

10,429

 

 

11,953

 

 
Total non-interest expense

 

51,347

 

 

48,590

 

 

148,791

 

 

148,425

 

 
Income before income tax expense

 

24,226

 

 

20,004

 

 

65,299

 

 

57,014

 

 
Income tax expense

 

6,095

 

 

5,658

 

 

16,476

 

 

16,132

 

 
Net income

$

18,131

 

$

14,346

 

$

48,823

 

$

40,882

 

 
Basic earnings per common share

$

148.46

 

$

115.98

 

$

399.75

 

$

333.03

 

Diluted earnings per common share

$

147.32

 

$

115.17

 

$

396.30

 

$

325.64

 

Basic weighted-average shares outstanding

 

122,126

 

 

123,696

 

 

122,134

 

 

122,757

 

Diluted weighted-average shares outstanding

 

123,071

 

 

124,563

 

 

123,198

 

 

125,545

 

 
FARMERS & MERCHANTS BANK OF LONG BEACH
Balance Sheets (Unaudited)
(In thousands, except share and per share data)
 
Sep. 30, 2025 Dec. 31, 2024
 
Assets
 
Cash and due from banks:
Non-interest-bearing balances

$

69,014

 

$

72,319

 

Interest-bearing balances

 

1,606,878

 

 

976,039

 

 
Total cash and due from banks

 

1,675,892

 

 

1,048,358

 

Securities available-for-sale, at fair value

 

145,325

 

 

281,219

 

Securities held-to-maturity, at amortized cost net of allowance for credit losses

 

3,357,368

 

 

3,687,417

 

Loans held for sale

 

590

 

 

1,132

 

Gross loans

 

6,243,380

 

 

6,467,991

 

Unamortized deferred loan fees, net

 

(9,768

)

 

(8,811

)

Allowance for credit losses on loans

 

(89,875

)

 

(96,585

)

 
Loans, net

 

6,143,737

 

 

6,362,595

 

 
Investments in FHLB and FRB stock, at cost

 

22,255

 

 

22,472

 

Bank premises and equipment, net

 

121,130

 

 

118,474

 

Deferred tax assets, net

 

42,510

 

 

42,427

 

Other assets

 

112,688

 

 

125,975

 

 
Total assets

$

11,621,495

 

$

11,690,069

 

 
 
Liabilities and Stockholders' Equity
 
Liabilities:
 
Deposits:
Non-interest-bearing deposits

$

3,006,696

 

$

2,908,598

 

Interest-bearing deposits

 

1,777,206

 

 

2,047,524

 

Savings and money market savings

 

3,064,817

 

 

2,784,678

 

Time deposits

 

1,023,622

 

 

1,028,793

 

 
Total deposits

 

8,872,341

 

 

8,769,593

 

Securities sold under repurchase agreements

 

977,737

 

 

991,869

 

Borrowings

 

300,000

 

 

500,000

 

Other liabilities

 

67,902

 

 

59,724

 

 
Total liabilities

 

10,217,980

 

 

10,321,186

 

 
Stockholders' Equity:
 
Common Stock, par value $20; authorized 250,000 shares; 122,126 and 122,728 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

 

2,443

 

 

2,455

 

Additional paid-in capital

 

164,637

 

 

169,136

 

Retained earnings

 

1,237,792

 

 

1,199,221

 

Accumulated other comprehensive loss

 

(1,357

)

 

(1,929

)

 
Total stockholders' equity

 

1,403,515

 

 

1,368,883

 

 
Total liabilities and stockholders' equity

$

11,621,495

 

$

11,690,069

 

 

Contacts

Kevin Tiber

President

562-499-4829

Roger Pondel

PondelWilkinson Inc.

Investor Relations

310-279-5980

investor@pondel.com

Recent Quotes

View More
Symbol Price Change (%)
AMZN  222.03
+5.55 (2.56%)
AAPL  262.77
+0.53 (0.20%)
AMD  238.03
-2.53 (-1.05%)
BAC  51.52
-0.52 (-1.00%)
GOOG  251.34
-5.68 (-2.21%)
META  733.27
+1.10 (0.15%)
MSFT  517.66
+0.87 (0.17%)
NVDA  181.16
-1.48 (-0.81%)
ORCL  275.15
-2.03 (-0.73%)
TSLA  442.60
-4.83 (-1.08%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.