Farmers & Merchants Bank Unveils Strong 2024 Financials

Farmers & Merchants Bank of Long Beach Reports 2024 Financial Success

Farmers & Merchants Bank of Long Beach (“F&M” or the “Bank”) (OTCQX: FMBL) recently announced its financial results for the fourth quarter and full year ending December 31, 2024. With strong performance indicators, the bank affirmed its resilience in the challenging banking landscape.

Key Highlights of the Financial Year

In 2024, F&M demonstrated profitable operations throughout the year, highlighting its commitment to sound financial management. W. Henry Walker, the Bank’s Chief Executive Officer, emphasized that the continued profitable results reflect the Bank's steadfast financial strength.

As part of its strategy, F&M took decisive measures to enhance its future operating performance by selling low-yielding fixed-rate securities. The proceeds have been reinvested into higher-earning securities, aiming to improve net interest margin (NIM), return on assets (ROA), and overall net income.

Operating Results Overview

For the fourth quarter of 2024, total interest and dividend income reached $108.9 million, a modest increase from $108.0 million in the previous year. For the entire year, total interest and dividend income grew to $439.8 million from $415.5 million recorded in 2023.

However, total interest expense also saw an uptick, amounting to $46.5 million in the fourth quarter compared to $45.7 million a year earlier. Over the whole year, interest expenses surged to $202.6 million from $152.5 million in 2023.

Net Income Insights

Fourth quarter net income decreased to $4.0 million, translating to $32.18 per diluted share, compared to $12.8 million or $101.61 per diluted share in the same period last year. For full-year net income, F&M reported $44.9 million, or $358.63 per diluted share, versus the $70.0 million or $553.79 per diluted share from 2023.

Balance Sheet Performance and Growth

As of December 31, 2024, gross loans recorded at F&M totaled $6.47 billion, down from $6.76 billion in 2023. Conversely, the bank's allowance for loan losses remained consistent at $96.6 million, approximately 1.50% of loans held-for-investment.

Total deposits also showed growth, rising to $8.77 billion compared to $8.67 billion a year earlier, with noninterest-bearing deposits constituting 33.2% of the total. Furthermore, total assets were reported at $11.69 billion, down from $12.04 billion in 2023.

Capital Adequacy and Stability

F&M continues to position itself as a financially rigorous institution by surpassing national and regional banks in capital ratios, which are fundamental for maintaining safety and stability. As of year-end 2024, the total risk-based capital ratio stood at 18.77%, well above regulatory requirements.

Stock Repurchase Program

In a strategic move, F&M repurchased 3,066 shares of its common stock for $15.4 million throughout the year, indicating its commitment to enhancing shareholder value. The bank plans to continue share repurchases based on multiple factors, including stock price and trading volume.

About Farmers & Merchants Bank of Long Beach

Founded in 1907 by C.J. Walker, Farmers & Merchants Bank serves clients with tailored banking solutions through its 27 branches from San Clemente to Santa Barbara and online banking platforms. With a focus on commercial and small business banking, F&M remains a stellar player in California's banking landscape.

Frequently Asked Questions

What were the main financial results for F&M in 2024?

F&M reported profitable operations for both the fourth quarter and the full year, with total interest income increasing to $439.8 million.

How did net income change in 2024?

Net income for 2024 decreased to $44.9 million, or $358.63 per diluted share, compared to $70.0 million or $553.79 per diluted share in 2023.

What actions did F&M take concerning its securities?

F&M sold $136 million in qualified held-to-maturity securities and $65 million in lower-yielding available-for-sale securities, reinvesting into higher-yielding options.

What is the status of F&M's capital ratios?

The capital ratios at F&M exceeded regulatory requirements; the total risk-based capital ratio was 18.77% as of December 31, 2024.

How does F&M serve its community?

F&M provides a range of commercial banking services, including loans, deposit accounts, and comprehensive online and mobile banking options across Southern California.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. If any of the material offered here is inaccurate, please contact us for corrections.