Farmers & Merchants Bank of Long Beach (“F&M” or the “Bank”) (OTCQX: FMBL) today reported financial results for the first quarter ended March 31, 2026.
“F&M recorded another outstanding quarter, with improvements achieved in all measures of operating performance, compared with the comparable prior year period,” said W. Henry Walker, Chief Executive Officer. “Our balance sheet remained strong at quarter end, and F&M’s capital ratios again exceeded most national and regional banks in our area, as well as the regulatory capital requirements to meet the definition of a ‘well-capitalized’ financial institution.
“Our performance reflects F&M’s disciplined strategy, executed in a supportive, dynamic operating environment, and we have benefited, in part, from a more favorable and stable interest rate backdrop, which, in turn, is allowing us to expand net interest margin and maintain a resilient deposit base. Also, credit quality across our portfolio has remained stable, supported by our legacy of prudent, conservative underwriting standards.”
Daniel Walker, F&M’s Executive Chairman of the Board, said, “Beyond our traditional banking services, we continue to make progress on efficiency initiatives, further enhancing and leveraging technology and implementing ongoing cost discipline. We were pleased that in the preceding fourth quarter, the Bank closed a $200 million equity investment by a large financial services company.
“Combined with macroeconomic tailwinds and improved fundamentals following the stressful period of the past several years, we are confident of continued progress over the long-term,” Mr. Walker added.
Operating Results
For the first quarter of 2026, total interest and dividend income increased to $112.1 million, from $104.7 million in the first quarter of 2025. Total interest expense for the first quarter of 2026 was $34.4 million, versus $40.6 million in the first quarter of 2025.
Net interest income before provision for credit losses for the first quarter of 2026 increased to $77.7 million, from $64.1 million for the first quarter of 2025. F&M’s net interest margin improved to 2.71% for the first quarter of 2026, from 2.28% for the first quarter of 2025.
For the first quarter of 2026, the Bank recorded a $600,000 provision for credit losses, compared with a $2.0 million recapture of provision for credit losses recorded in the first quarter of 2025.
Total non-interest income was $4.2 million for the first quarter of 2026, compared with $4.3 million for the same period last year. Total non-interest expense for the first quarter of 2026 was $52.4 million, compared with $48.0 million for the first quarter of 2025.
First quarter 2026 net income increased to $21.9 million, or $157.45 per diluted share, from $16.8 million, or $136.27 per diluted share, for the first quarter of 2025.
Balance Sheet
Gross loans were $6.34 billion as of March 31, 2026, compared with $6.08 billion as of December 31, 2025. The Bank’s allowance for loan losses totaled $85.2 million, or 1.35% of loans held-for-investment at March 31, 2026, compared with $84.0 million, or 1.39% of loans held-for investment at December 31, 2025.
F&M’s total deposits at March 31, 2026 amounted to $8.94 billion, compared with $8.95 billion at December 31, 2025. Noninterest-bearing deposits represented 34.97% of total deposits at March 31, 2026, and 34.58% at December 31, 2025.
Securities sold under repurchase agreements increased to $962.0 million at March 31, 2026, from $883.2 million at December 31, 2025. Borrowings were $300 million at March 31, 2026 and December 31, 2025.
Total assets at March 31, 2026, were $11.86 billion, compared with $11.80 billion at December 31, 2025. Total stockholders’ equity was $1.61 billion at March 31, 2026 and December 31, 2025.
Capital
Capital ratios are the foundation of safety in all banks, and F&M continues to exceed most national and regional banks in this area, as well as exceeding regulatory capital requirements to meet the definition of a “well-capitalized” financial institution. As of March 31, 2026, the Bank’s total risk-based capital ratio was 21.94%; tier 1 risk-based capital ratio was 20.69%; common equity tier 1 capital ratio was 18.23%; and tier 1 leverage ratio was 13.61%. The minimum capital adequacy ratios for a “well-capitalized” bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively.
Stock Repurchase Program
During the first quarter of 2026, the Bank repurchased 876 shares of its common stock for $7.4 million on the open market at an average repurchase price of $8,397.23 per share, under the current $10 million stock repurchase plan that was announced in October 2025 and expires May 9, 2026.
Under the stock repurchase 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 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.
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, the ability to diversify and add a significant number of quality loans to the Bank’s portfolio, and positioning for accelerated, profitable growth. 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.
(Financial Tables Follow)
| FARMERS & MERCHANTS BANK OF LONG BEACH | |||||||
| Income Statements (Unaudited) | |||||||
| (In thousands, except share and per share data) | |||||||
|
Three Months Ended March 31, |
|||||||
|
2026 |
2025 |
||||||
| Interest and dividend income: | |||||||
| Loans |
$ |
75,412 |
|
$ |
74,942 |
|
|
| Investment securities |
|
26,094 |
|
|
19,249 |
|
|
| Interest-bearing deposits in financial institutions |
|
9,684 |
|
|
10,015 |
|
|
| Investments in FHLB and FRB stock |
|
928 |
|
|
457 |
|
|
| Total interest and dividend income |
|
112,118 |
|
|
104,663 |
|
|
| Interest expense: | |||||||
| Deposits |
|
24,823 |
|
|
27,349 |
|
|
| Securities sold under repurchase agreements |
|
6,680 |
|
|
8,382 |
|
|
| Borrowings |
|
2,918 |
|
|
4,837 |
|
|
| Total interest expense |
|
34,421 |
|
|
40,568 |
|
|
| Net interest income before provision for credit losses |
|
77,697 |
|
|
64,095 |
|
|
| Provision (recapture) for credit losses | |||||||
| Loans |
|
1,000 |
|
|
– |
|
|
| Reserve for unfunded loan commitments |
|
(400 |
) |
|
(2,000 |
) |
|
| Total provision (recapture) for credit losses |
|
600 |
|
|
(2,000 |
) |
|
| Net interest income after provision (recapture) for credit losses |
|
77,097 |
|
|
66,095 |
|
|
| Non-interest income: | |||||||
| Service charges on deposit accounts |
|
2,076 |
|
|
2,041 |
|
|
| Card income |
|
209 |
|
|
204 |
|
|
| Other income |
|
1,914 |
|
|
2,078 |
|
|
| Total non-interest income |
|
4,199 |
|
|
4,323 |
|
|
| Non-interest expense: | |||||||
| Salaries and employee benefits |
|
34,376 |
|
|
30,871 |
|
|
| FDIC and other insurance expense |
|
1,616 |
|
|
2,078 |
|
|
| Occupancy expense |
|
4,079 |
|
|
3,962 |
|
|
| Software and equipment expense |
|
4,856 |
|
|
4,444 |
|
|
| Other real estate owned expense |
|
– |
|
|
8 |
|
|
| Professional and legal services |
|
2,102 |
|
|
2,090 |
|
|
| Marketing expense |
|
1,436 |
|
|
1,219 |
|
|
| Other expense |
|
3,965 |
|
|
3,326 |
|
|
| Total non-interest expense |
|
52,430 |
|
|
47,998 |
|
|
| Income before income tax expense |
|
28,866 |
|
|
22,420 |
|
|
| Income tax expense |
|
6,984 |
|
|
5,608 |
|
|
| Net income |
$ |
21,882 |
|
$ |
16,812 |
|
|
| Basic earnings per common share |
$ |
159.00 |
|
$ |
137.52 |
|
|
| Diluted earnings per common share |
$ |
157.45 |
|
$ |
136.27 |
|
|
| Basic weighted-average shares outstanding |
|
121,357 |
|
|
122,248 |
|
|
| Diluted weighted-average shares outstanding |
|
122,555 |
|
|
123,373 |
|
|
| FARMERS & MERCHANTS BANK OF LONG BEACH | |||||||
| Balance Sheets (Unaudited) | |||||||
| (In thousands, except share and per share data) | |||||||
| Mar. 31, 2026 | Dec. 31, 2025 | ||||||
| Assets | |||||||
| Cash and due from banks: | |||||||
| Noninterest-bearing balances |
$ |
84,393 |
|
$ |
65,062 |
|
|
| Interest-bearing balances |
|
762,757 |
|
|
1,344,503 |
|
|
| Total cash and due from banks |
|
847,150 |
|
|
1,409,565 |
|
|
| Securities available-for-sale, at fair value |
|
1,287,303 |
|
|
839,350 |
|
|
| Securities held-to-maturity, at amortized cost net of allowance for credit losses |
|
3,173,770 |
|
|
3,266,193 |
|
|
| Loans held for sale |
|
– |
|
|
1,447 |
|
|
| Gross loans |
|
6,339,650 |
|
|
6,076,581 |
|
|
| Unamortized deferred loan fees, net |
|
(10,681 |
) |
|
(10,479 |
) |
|
| Allowance for loan losses |
|
(85,242 |
) |
|
(84,020 |
) |
|
| Loans, net |
|
6,243,727 |
|
|
5,982,082 |
|
|
| Investments in FHLB and FRB stock, at cost |
|
27,917 |
|
|
22,262 |
|
|
| Bank premises and equipment, net |
|
121,849 |
|
|
121,894 |
|
|
| Deferred tax assets, net |
|
41,355 |
|
|
39,839 |
|
|
| Other assets |
|
113,527 |
|
|
114,428 |
|
|
| Total assets |
$ |
11,856,598 |
|
$ |
11,797,060 |
|
|
| Liabilities and Stockholders’ Equity | |||||||
| Liabilities: | |||||||
| Deposits: | |||||||
| Noninterest-bearing demand deposits |
$ |
3,125,700 |
|
$ |
3,095,295 |
|
|
| Interest-bearing demand deposits |
|
1,715,943 |
|
|
1,751,037 |
|
|
| Savings and money market savings |
|
3,112,546 |
|
|
3,084,461 |
|
|
| Time deposits |
|
983,978 |
|
|
1,020,001 |
|
|
| Total deposits |
|
8,938,167 |
|
|
8,950,794 |
|
|
| Securities sold under repurchase agreements |
|
962,036 |
|
|
883,234 |
|
|
| Borrowings |
|
300,000 |
|
|
300,000 |
|
|
| Other liabilities |
|
48,216 |
|
|
56,745 |
|
|
| Total liabilities |
|
10,248,419 |
|
|
10,190,773 |
|
|
| Stockholders’ Equity: | |||||||
| Preferred Stock; issued 16,261 shares |
|
190,884 |
|
|
190,884 |
|
|
| Common Stock, par value $20; authorized 250,000 shares; 120,926 and 121,802 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively |
|
2,419 |
|
|
2,436 |
|
|
| Additional paid-in capital |
|
155,143 |
|
|
162,243 |
|
|
| Retained earnings |
|
1,269,401 |
|
|
1,251,367 |
|
|
| Accumulated other comprehensive loss |
|
(9,668 |
) |
|
(643 |
) |
|
| Total stockholders’ equity |
|
1,608,179 |
|
|
1,606,287 |
|
|
| Total liabilities and stockholders’ equity |
$ |
11,856,598 |
|
$ |
11,797,060 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260420059874/en/
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