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FARMERS & MERCHANTS BANK OF LONG BEACH REPORTS 2026 SECOND QUARTER AND YEAR - TO - DATE FINANCIAL RESULTS Company Release - 7/14/2026 Note to our Stockholders : We value our relationship with our stockholders and want to keep you updated about what's happening at the Bank . To do this , we need to be able to contact you directly . If your F & M shares are held through your brokerage , your account may be designated as an " Objecting Beneficial Owner , " ( or " OBO " ) . Please ask your broker to designate you as a " Non - Objecting Beneficial Owner , " ( or " NOBO " ) . This way , you'll receive our updates directly from F & M in a timely manner . If you have questions , call us at 562-499-4829 or email Kevin.Tiber@FMB.com . LONG BEACH , Calif .-- ( BUSINESS WIRE ) -- Farmers & Merchants Bank of Long Beach ( " F & M " or the " Bank " ) ( OTCQX : FMBL ) today reported financial results for the second quarter ended June 30 , 2026 . " The positive operating trends and favorable comparisons in F & M's financial performance are continuing , " said W. Henry Walker , Chief Executive Officer . “ Our second- quarter results reflected the strength of a proven banking model that has served our clients and shareholders well through many different economic cycles over more than a century . Thus far into 2026 , the Federal Reserve's steady interest rate environment is allowing us to expand net interest margin and maintain a strong balance sheet with a stable deposit base . " The Bank's performance is the product of consistent execution over many years , which again was exemplified at quarter's end , with F & M's capital ratios far exceeding the regulatory capital requirements to meet the definition of a ' well - capitalized ' financial institution . " Daniel Walker F & M's Executive Chairman of the Board , said , " While rates held steady and there were no headline - making developments in the banking sector during the quarter , that is often when the fundamentals matter most . We believe that shareholder value is driven through discipline and prudence , rather than pursuing short - term opportunities . The 2026 second quarter was another example of the validity of that approach . " As we proceed into the second half of the year , we continue to focus on credit quality and thoughtful loan growth , with a talented staff that is dedicated to providing the personal service our clients expect . " Operating Results For the second quarter of 2026 , total interest and dividend income increased to $ 115.3 million , from $ 105.1 million in the second quarter of 2025. Total interest and dividend income for the six months ended June 30 , 2026 increased to $ 227.4 million from $ 209.8 million reported for the six months ended June 30 , 2025 . Total interest expense for the second quarter of 2026 was $ 35.2 million , compared with $ 38.2 million in the second quarter of 2025. Interest expense for the six months ended June 30 , 2026 was $ 69.6 million , compared with $ 78.7 million a year ago . Net interest income before provision for credit losses for the second quarter of 2026 increased to $ 80.1 million , from $ 66.9 million for the second quarter of 2025. Net interest income before provision for credit losses for the six months ended June 30 , 2026 was $ 157.8 million , compared with $ 131.0 million for the six months ended June 30 , 2025 . F & M's net interest margin improved to 2.81 % for the second quarter of 2026 , from 2.42 % for the second quarter of 2025. Net interest margin was 2.76 % for the six months ended June 30 , 2026 , compared with 2.35 % for the same period in 2025 . For the second quarter of 2026 , the Bank recorded a $ 3.3 million recapture of provision for credit losses , compared with a $ 3.3 million provision for credit losses recorded in the second quarter of 2025. For the six months ended June 30 , 2026 , the Bank recorded a $ 2.7 million recapture of provision for credit losses , compared with a $ 1.3 million provision for credit losses for the six months ended June 30 , 2025 . Total non - interest income was $ 18.9 million for the second quarter of 2026 , compared with $ 4.5 million for the same period last year . For the six months ended June 30 , 2026 , total non - interest income was $ 23.1 million , compared with $ 8.8 million for the six months ended June 30 , 2025 . Total non - interest expense for the second quarter of 2026 was $ 55.3 million , compared with $ 49.4 million for the second quarter of 2025. Non - interest expense for the six months ended June 30 , 2026 was $ 107.7 million , compared with $ 97.4 million for the six months ended June 30 , 2025 . Second quarter 2026 net income increased to $ 35.5 million , or $ 256.32 per diluted share , from $ 13.9 million , or $ 112.71 per diluted share , for the second quarter of 2025 . Net income for the six months ended June 30 , 2026 was $ 57.4 million , or $ 413.60 per diluted share , compared with $ 30.7 million , or $ 249.01 per diluted share , for the six months ended June 30 , 2025 . Balance Sheet Gross loans were $ 6.65 billion as of June 30 , 2026 , compared with $ 6.08 billion as of December 31 , 2025. The Bank's allowance for loan losses totaled $ 84.0 million at June 30 , 2026 and December 31 , 2025 , representing 1.27 % of loans held - for - investment at June 30 , 2026 , and 1.39 % of loans held - for investment at December 31 , 2025 . F & M's total deposits at June 30 , 2026 amounted to $ 8.76 billion , compared with $ 8.95 billion at December 31 , 2025. Noninterest - bearing deposits represented 33.53 % of total deposits at June 30 , 2026 , and 34.58 % at December 31 , 2025 . Securities sold under repurchase agreements increased to $ 1.02 billion at June 30 , 2026 , from $ 883.2 million at December 31 , 2025. Borrowings were $ 300 million at June 30 , 2026 and December 31 , 2025 . Total assets at June 30 , 2026 , were $ 11.77 billion , compared with $ 11.80 billion at December 31 , 2025. Total stockholders ' equity was $ 1.64 billion at June 30 , 2026 and $ 1.61 billion at 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 June 30 , 2026 , the Bank's total risk - based capital ratio was 21.86 % ; tier 1 risk - based capital ratio was 20.65 % ; common equity tier 1 capital ratio was 18.25 % ; and tier 1 leverage ratio was 13.95 % . 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 six months ended June 30 , 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 $ 10 million stock repurchase plan that expired on May 9 , 2026. The Board of Directors has approved an additional stock repurchase plan of up to $ 10 million through December 31 , 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 . An approved 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 Farmers & Merchants Bank of Long Beach ( F & M ) provides a distinctive white - glove banking experience through 27 Southern California branches , from San Clemente to Santa Barbara , and through its secure online and mobile banking platforms . Founded in 1907 by C.J. Walker , and today proudly led by the fourth generation of the Walker family , the Bank has devoted more than a century to building trusted relationships , rooted in personal service , integrity , safety and community commitment . Combining the strength and sophistication of a regional institution with the warmth and responsiveness of a community bank , F & M provides a wide range of commercial and consumer banking services designed to help businesses , individuals and families thrive at every stage of growth . With assets exceeding $ 11 billion , F & M is a California state- chartered bank , with deposits insured by the Federal Deposit Insurance Corporation ( FDIC ) , and is an Equal Housing Lender . Please visit www.fmb.com for more information . FARMERS & MERCHANTS BANK OF LONG BEACH Income Statements ( Unaudited ) ( In thousands , except share and per share data )