Farmers & Merchants Bank of Long Beach Reports 2026 Third Quarter and Year-to-Date Financial Results
Key Highlights
- ➤Q3 net loss $36.8 million, or $264.89 per diluted share
- ➤Net interest margin rose to 3.16% from 2.47% year over year
- ➤$991.9 million of low-yielding municipal bonds sold for repositioning
- ➤Gross loans increased to $6.95 billion from $6.08 billion at year-end
- ➤Full-year 2026 net income expected despite third-quarter repositioning loss
Expert Statements
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“During the third quarter, we completed an important step toward enhancing long-term earnings power, increasing balance sheet flexibility and supporting future growth, with the strategic repositioning of F&M’s investment securities portfolio.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“We were able to replace legacy securities yielding 1.43% with securities and loans at sharply higher current market yields, which will increase net interest margin, improve the Bank’s future profitability and allow us to meet increased client borrowing needs.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“While the non-recurring loss on sale of securities resulted in a net loss for the 2026 third quarter, the Bank expects to report net income for the full 2026 year.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“On an operating basis, general market conditions remain tight relative to acquiring low-cost deposits, but favorable trends are continuing.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“The recently announced Federal Reserve increase in interest rates is expected to bode well for us, with both bonds and loans already repricing at higher rates.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“Moreover, we are investing in technology, including the use of AI, along with attracting new talent and implementing strategies for growth in the years ahead.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“For the third quarter, F&M’s capital ratios again far exceeded the regulatory capital requirements to meet the definition of a ‘well-capitalized’ financial institution.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“At F&M, we believe that strong performance starts with getting the fundamentals right.”
W. Henry Walker, Chief Executive Officer of Farmers & Merchants Bank of Long Beach
“Our team remains focused on operating efficiently, prudently managing risk and maintaining the standards of service and reliability that have long defined our Bank.”
Daniel Walker, Executive Chairman of the Board of Farmers & Merchants Bank of Long Beach
“Our operating performance reflects the strength of a banking model built on trust, personal relationships and a long-term perspective.”
Daniel Walker, Executive Chairman of the Board of Farmers & Merchants Bank of Long Beach
“We are proud of what our team has accomplished and remain committed to serving our customers and communities as we foster the high standards of service and reliability that have long been hallmarks of our Bank and position F&M for continued growth.”
Daniel Walker, Executive Chairman of the Board of Farmers & Merchants Bank of Long Beach
“Proceeding toward the close of 2026, we look forward to celebrating F&M’s 119(th) anniversary and to the start of 120 years of service, today in Los Angeles, Orange and Santa Barbara Counties.”
Farmers & Merchants Bank of Long Beach Reports 2026 Third Quarter and Year-to-Date Financial Results
Farmers & Merchants Bank of Long Beach (“F&M” or the “Bank”) (OTCQX: FMBL) today reported financial results for the third quarter and nine-months ended September 30, 2026.
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