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FARMERS & MERCHANTS BANK OF LONG BEACH REPORTS 2021 SECOND - QUARTER RESULTS Company Release - 7/14/2021 LONG BEACH , Calif .-- ( BUSINESS WIRE ) -- Farmers & Merchants Bank of Long Beach ( OTCQB : FMBL ) today reported financial results for the second quarter and six - months ended June 30 , 2021 . " F & M again achieved growth in key measurements of performance for the second quarter of 2021 , " said Henry Walker , president . " Total assets , total deposits , net loans and net income all increased over the prior year period . The Bank's performance demonstrated resiliency during the protracted low interest rate environment , as well as the outstanding work our entire team is doing to serve and attract increasing numbers of business and individual clients . " Income Statement For the three months ended June 30 , 2021 , total interest and dividend income rose to $ 77.8 million from $ 74.7 million in the second quarter of 2020. Total interest and dividend income for the first half of 2021 increased to $ 151.6 million from $ 143.9 million reported for the first half of 2020 . Total interest expense for the 2021 second quarter was $ 3.1 million , compared with $ 6.7 million in the second quarter of 2020 . Interest expense for the first half of 2021 was $ 6.5 million , versus $ 14.7 million reported for the corresponding period last year . Net interest income for the 2021 second quarter advanced to $ 74.7 million from $ 68.0 million for the second quarter of 2020 , with the increase primarily reflecting the recognition of net loan fees and interest income from Paycheck Protection Program ( PPP ) loans . Net interest income for the first half of 2021 increased to $ 145.2 million from $ 129.2 million for the six months ended June 30 , 2020 . Net interest margin was 2.96 % for the 2021 second quarter , versus 3.13 % in the 2020 second quarter . Net interest margin was 2.91 % for the first half of 2021 , compared with 3.20 % for the same period in 2020 . The Bank had no provision for loan losses in the second quarter of 2021 , compared with $ 4.7 million for loan losses in the second quarter of 2020. For the first half of 2021 , the provision for loan losses was $ 2.0 million , compared with $ 5.5 million in the corresponding period last year . The Bank's allowance for loan losses as a percentage of loans outstanding was 1.36 % at June 30 , 2021 , compared with 1.34 % at December 31 , 2020 . Total non - interest income was $ 5.4 million for the 2021 second quarter , compared with $ 4.3 million for the same period a year ago . In the first half of 2021 , total non - interest income was $ 10.5 million , compared with $ 8.9 million for the six months ended June 30 , 2020 . Total non - interest expense for the 2021 second quarter was $ 41.4 million , compared with $ 42.6 million for the same period last year . Non - interest expense for the first half of 2021 was $ 83.3 million , compared with $ 86.2 million for the first half of 2020 . Net income for the 2021 second quarter was $ 30.4 million , or $ 236.95 per diluted share , compared with $ 20.6 million , or $ 160.52 per diluted share , for the 2020 second quarter . Net income for the first half of 2021 was $ 55.7 million , or $ 434.39 per diluted share , compared with $ 38.6 million , or $ 300.12 per diluted share , for the six months ended June 30 , 2020 . Balance Sheet At June 30 , 2021 , net loans increased to $ 5.36 billion from $ 5.33 billion at December 31 , 2020. The Bank's deposits rose to $ 8.37 billion at the end of the 2021 second quarter from $ 7.62 billion at December 31 , 2020 , continuing , in part , to reflect a general flight to safety , as well as funding of PPP loans . Non - interest - bearing deposits represented 39.0 % of total deposits at June 30 , 2021 , versus 37.9 % of total deposits at December 31 , 2020. Total assets increased to $ 10.68 billion at the close of the 2021 second quarter from $ 9.87 billion at December 31 , 2020 . At June 30 , 2021 , Farmers & Merchants Bank's total risk - based capital ratio was 18.96 % ; its tier 1 risk - based capital ratio was 17.78 % , with a common equity tier 1 capital ratio of 17.78 % , and a tier 1 leverage ratio of 11.93 % . The minimum ratios for capital adequacy for a well - capitalized bank are 10.00 % , 8.00 % , 6.50 % and 5.00 % , respectively . " F & M's growth over the past 113 - plus years has been built on a culture of relationships during good as well as challenging times , serving businesses and individuals and enriching lives , " said Daniel Walker , chief executive officer and chairman of the board . " Through it all , we are unwavering in our mandate to maintain conservative fiscal policies , with strong capital ratios that exceed requirements . We had an excellent first half of 2021 , thanks to our hard - working , talented F & M team and our loyal clients throughout the communities we serve . " As announced in April 2020 , the board of directors authorized the repurchase up to $ 20 million of the Bank's common stock as part of a stock repurchase program that expires on December 31 , 2021. As part of this program , the Bank repurchased 370 shares of its common stock during the second quarter of the current fiscal year at an average price of $ 8,179.75 per share . Year to date , the Bank repurchased a total of 509 shares of its common stock at an average price of $ 8,052.81 per share . To the extent the Bank repurchases additional shares pursuant to this program , 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 anticipates that any such repurchases will be funded from existing cash and cash equivalents or future cash flow . The share repurchase program does not obligate the Bank to acquire any specific number of shares in any 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 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 June 30 , Six Months Ended June 30 , 2021 2020 2021 2020 Interest and dividend income : $ 62,291 $ 59,020 $ 122,564 $ 110,345 Loans 14,924 15,345 27,999 32,090 Investment securities 298 171 560 519 Investments in FHLB and FRB stock 256 211 513 939 Interest - bearing deposits in financial institutions Total interest and dividend income 77,769 74,747 151,636 143,893 Interest expense : 2,253 4,452 Deposits 842 2,253 4,747 1,735 10,142 4,553 Securities sold under repurchase agreements 3,095 6,705 6,482 14,695 Total interest expense 74,674 68,042 145,154 129,198 Net interest income 4,700 2,000 Provision for loan losses 74,674 63,342 143,154 5,500 123,698 Net interest income after provision for loan losses Non - interest income : 1,361 1,192 2,686 2,719 Service charges on deposit accounts 835 578 1,408 1,448 Card income 3,167 2,531 6,365 4,771 Other income 5,363 4,301 10,459 8,938 Total non - interest income Non - interest expense : 26,852 27,715 54,730 55,416 Salaries and employee benefits 861 738 1,714 1,183 FDIC and other insurance expense 3,444 3,561 6,698 6,894 Occupancy expense 3,449 3,579 6,984 6,898 Software and equipment expense 7 20 Other real estate owned expense 1,412 1,663 2,752 2,824 Professional and legal services 1,111 1,155 1,790 2,923 Marketing expense 4,310 4,143 8,632 10,056 Other expense 41,446 42,554 83,320 86,194 Total non - interest expense 38,591 25,089 70,293 46,442 Income before income tax expense 8,160 4,459 14,587 7,868 Income tax expense $ 30,431 $ 20,630 $ 55,706 $ 38,574 Net income $ 240.92 $ Basic earnings per common share $ 236.95 $ 160.53 $ 440.51 $ 160.52 $ 434.39 $ 300.15 300.12 Diluted earnings per common share 126,309 128,508 126,457 128,518 Basic weighted - average shares outstanding 128,424 128,521 128,239 128,531 Diluted weighted - average shares outstanding FARMERS & MERCHANTS BANK OF LONG BEACH Balance Sheets ( Unaudited ) ( In thousands , except share and per share data ) June 30 , 2021 Dec. 31 , 2020 Assets Cash and due from banks : Noninterest - bearing balances 73,903 $ $ 937,358 72,109 939,566 Interest - bearing balances 1,011,261 1,011,675 Total cash and due from banks 147,402 137,373 Securities available - for - sale , at fair value 3,899,259 3,131,213 Securities held - to - maturity , at amortized cost 15,896 22,893 Loans held for sale 5,455,970 5,414,814 Gross loans ( 74,172 ) ( 72,267 ) Allowance for loan losses ( 18,157 ) ( 15,747 ) Unamortized deferred loan fees , net 5,363,641 5,326,800 Loans , net 966 966 Other real estate owned , net 20,042 20,257 Investments in FHLB and FRB stock , at cost 103,313 103,615 Bank premises and equipment , net 28,691 26,489 Deferred tax assets , net 93,676 90,497 Other assets 10,684,147 9,871,778 Total assets Liabilities and Stockholders ' Equity Liabilities : Deposits : 3,263,345 2,889,012 Noninterest - bearing demand deposits $ $ 2,001,944 1,788,133 Interest - bearing demand deposits 2,307,252 2,129,755 Savings and money market savings 799,430 810,726 Time deposits 8,371,971 Total deposits 1,080,453 Securities sold under repurchase agreements 40,183 7,617,626 1,062,348 47,962 Other liabilities 9,492,607 8,727,936 Total liabilities Stockholders ' Equity : Common Stock , par value $ 20 ; authorized 250,000 126,108 and 126,617 shares issued and outstanding at June 30 , 2021 and December 31 , 2020. respectively 2,522 2,532 Additional paid - in capital 90,176 90,516 1,096,830 1,047,949 Retained earnings 2,012 2,845 Accumulated other comprehensive income Total stockholders ' equity 1,191,540 10,684,147 1,143,842 9,871,778 Total liabilities and stockholders ' equity View source version on businesswire.com : https://www.businesswire.com/news/home/20210714005249/en/ John Hinrichs Executive Vice President 562-437-0011 , ext . 4835 Roger Pondel PondelWilkinson Inc. Investor Relations 310-279-5980 investor@pondel.com Source : Farmers & Merchants Bank of Long Beach