Farmers and Merchants Bank of Long Beach (FMBL) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 results reflect resilience and strong capital ratios amid a challenging environment for regional banks.

• Focus remains on conservative lending, stable loan portfolio, and attracting new clients.

• Board authorized an additional $10 million stock repurchase, following a $10 million program in January.

Financial highlights

• Net income for Q2 2024 was $13.5 million ($107.86/diluted share), down from $18.1 million ($143.69/diluted share) in Q2 2023.

• Total interest and dividend income rose to $108.7 million from $102.3 million year-over-year.

• Net interest income before provision for credit losses was $57.1 million, down from $65.1 million year-over-year.

• Non-interest income increased to $10.6 million from $4.4 million, driven by a $6.3 million gain from Visa stock conversion.

• Total non-interest expense was $49.8 million, slightly down from $50.8 million year-over-year.

Outlook and guidance

• Growth in lower-cost deposits is expected to help scale expenses and enhance profitability over time.

• Yield on the loan portfolio is improving, but HTM securities continue to pressure earnings.