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FARMERS & MERCHANTS BANK OF LONG BEACH REPORTS 2021 FIRST - QUARTER RESULTS Company Release - 4/15/2021 LONG BEACH , Calif .-- ( BUSINESS WIRE ) -- Farmers & Merchants Bank of Long Beach ( " F & M " or the " Bank " ) ( OTCQB : FMBL ) today reported financial results for the quarter ended March 31 , 2021 . " We are pleased to report on an outstanding first quarter for 2021 , as total assets surpassed the milestone $ 10 billion mark for the first time , and further increases were achieved in total deposits and net loans , " said Henry Walker , president of Farmers & Merchants Bank of Long Beach . " The Bank's conservative policies and disciplined business approach enabled us to respond quickly and effectively to the challenges posed by the COVID - 19 pandemic . As vaccination efforts continue throughout our state and nation , we will continue to meet the needs of our clients through the extraordinary efforts of our dedicated F & M team . " Income Statement For the three months ended March 31 , 2021 , interest and dividend income rose to $ 73.9 million from $ 69.1 million a year ago . Interest expense for the 2021 first quarter was $ 3.4 million , compared with $ 8.0 million in the same period last year . Farmers & Merchants ' net interest income for the 2021 first quarter increased to $ 70.5 million from $ 61.2 million for the first quarter of 2020 . Farmers & Merchants ' net interest margin was 2.87 % for the first quarter ended March 31 , 2021 , compared with 3.28 % at the end of the same period last year . The Bank's provision for loan losses in the first quarter of 2021 was $ 2,000,000 , versus $ 800,000 in the first quarter of 2020. The Bank's allowance for loan losses as a percentage of loans outstanding was 1.32 % at March 31 , 2021 , compared with 1.44 % at March 31 , 2020 . Non - interest income was $ 5.1 million for the 2021 first quarter , compared with $ 4.6 million for the 2020 first quarter . Non - interest expense for the 2021 first quarter was $ 41.9 million , versus $ 43.6 million for the same period last year . The Bank's net income for the 2021 first quarter was $ 25.3 million , or $ 197.51 per diluted share , from $ 17.9 million , or $ 139.50 per diluted share , in the 2020 first quarter . Balance Sheet At March 31 , 2021 , net loans totaled $ 5.53 billion , compared with $ 5.33 billion at December 31 , 2020. The Bank's total deposits rose to $ 8.24 billion at the end of the 2021 first quarter , up from $ 7.62 billion at December 31 , 2020. Non - interest - bearing deposits represented 38.1 % of total deposits at March 31 , 2021 compared with 37.9 % at December 31 , 2020. Total assets grew to $ 10.45 billion at the close of the 2021 first quarter from $ 9.87 billion at December 31 , 2020 . At March 31 , 2021 , Farmers & Merchants Bank remained " well - capitalized " under all regulatory categories , with a total risk - based capital ratio of 19.22 % , a tier 1 risk - based capital ratio of 18.00 % , a common equity tier 1 capital ratio of 18.00 % , and a tier 1 leverage ratio of 12.18 % . The minimum ratios for capital adequacy for a well - capitalized bank are 10.00 % , 8.00 % , 6.50 % and 5.00 % , respectively . " Proceeding into 2021 , F & M continues to successfully navigate an evolving business and economic environment , as demonstrated by our first quarter results , " said Daniel Walker , chief executive officer and chairman of the board . " Despite the protracted period of low interest rates , the Bank remains financially strong . F & M is well positioned to perform effectively , with high levels of capital and liquidity , diversified revenue streams , and an exceptional core deposit base . " During the first quarter of 2021 , the Bank repurchased 139 shares of its common stock at an average price of $ 7,714.91 per share , pursuant to a stock repurchase program announced in April 2020 , under which the board of directors authorized the repurchase of up to $ 20 million of the Bank's common stock . To the extent the Bank repurchases additional shares under this program , which expires December 31 , 2021 , the timing and number of shares repurchased will depend on a variety of factors , including , but not limited to , stock price , trading volume , regulatory requirements , general business conditions and others . The Bank may choose to modify , suspend , or discontinue such proposed repurchases at any time without prior notice , and the share repurchase program does not obligate the Bank to acquire any specific number of shares in any period . About Farmers & Merchants Bank Founded in Long Beach in 1907 by C.J. Walker , Farmers & Merchants Bank provides white - glove service to clients at 25 branches across Orange County , Long Beach , the South Bay and 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 consumer 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 Bank's website , www.fmb.com . FARMERS & MERCHANTS BANK OF LONG BEACH Income Statements ( Unaudited ) ( In thousands , except per share data ) Three Months Ended Mar. 31 , 2021 2020 Interest and dividend income : 60,273 51,325 Loans $ $ 13,075 16,745 Investment securities 262 348 Investments in FHLB and FRB stock 257 728 Interest - bearing deposits in financial institutions 73,867 69,146 Total interest and dividend income Interest expense : 2,494 5,690 Deposits 893 2,300 Securities sold under repurchase agreements 3,387 7,990 Total interest expense 70,480 61,156 Net interest income 2,000 800 Provision for loan losses 68,480 60,356 Net interest income after provision for loan losses Non - interest income : 1,325 1,527 Service charges on deposit accounts 573 870 Card income 3,198 2,240 Other income 5,096 4,637 Total non - interest income Non - interest expense : 27,878 27,701 Salaries and employee benefits 853 445 FDIC and other insurance expense 3,254 3,333 Occupancy expense 3,535 3,320 Software and equipment expense 13 Other real estate owned expense 1,340 1,161 Professional and legal services 679 1,768 Marketing expense 4,322 5,912 Other expense 41,874 43,640 Total non - interest expense 31,702 21,353 Income before income tax expense 6,427 3,409 Income tax expense 25,275 17,944 Net income $ 199.64 139.61 Basic earnings per common share 197.51 139.50 Diluted earnings per common share 126,607 128,528 Basic weighted - average shares outstanding 127,970 128,630 Diluted weighted - average shares outstanding FARMERS & MERCHANTS BANK OF LONG BEACH Balance Sheets ( Unaudited ) Assets ( In thousands , except share and per share data ) Mar. 31 , 2021 Dec. 31 , 2020 Cash and due from banks : Noninterest - bearing balances $ 77,874 72,109 $ 927,877 939,566 Interest - bearing balances 1,005,751 1,011,675 Total cash and due from banks 146,482 137,373 Securities available - for - sale , at fair value 3,506,580 3,131,213 Securities held - to - maturity , at amortized cost 21,493 22,893 Loans held for sale 5,629,832 Gross loans ( 74,171 ) 5,414,814 ( 72,267 ) Allowance for loan losses ( 21,774 ) ( 15,747 ) Unamortized deferred loan fees , net Loans , net 5,533,887 5,326,800 966 966 Other real estate owned , net 20,257 20,257 Investments in FHLB and FRB stock , at cost 103,466 103,615 Bank premises and equipment , net 27,830 26,489 Deferred tax assets , net 87,065 90,497 Other assets Total assets Liabilities and Stockholders ' Equity Liabilities : $ 10,453,777 9,871,778 $ Deposits : $ 3,138,863 2,889,012 Noninterest - bearing demand deposits $ 2,040,460 Interest - bearing demand deposits 2,256,003 1,788,133 2,129,755 Savings and money market savings 806,989 810,726 Time deposits 8,242,315 Total deposits 1,007,841 Securities sold under repurchase agreements 38,508 7,617,626 1,062,348 47,962 Other liabilities Total liabilities Stockholders ' Equity : Common Stock , par value $ 20 ; authorized 250,000 shares ; 126,478 and 126,617 shares issued and outstanding at March 31 , 2021 and December 31 , 2020 , respectively Additional paid - in capital Retained earnings Accumulated other comprehensive income Total stockholders ' equity Total liabilities and stockholders ' equity 9,288,664 8,727,936 2,530 2,532 91,321 90,516 1,069,806 1,047,949 1,456 2,845 1,165,113 1,143,842 $ 10,453,777 9,871,778 View source version on businesswire.com : https://www.businesswire.com/news/home/20210415005266/en/ John Hinrichs Executive Vice President 562-437-0011 , ext . 4835 Roger Pondel PondelWilkinson Inc. 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