Farmers & Merchants Bank of Long Beach Experiences Influx of Deposits Amidst Period of Banking Turbulence

Farmers & Merchants Bank of Long Beach (OTCQX: FMBL) (F&M Bank) said today it is experiencing a steady inflow of new deposits from existing and new clients in response to the recent turbulence in the banking industry.

“We are pleased to welcome our new clients, comprised of businesses and consumers, as they are attracted to F&M Bank during this turbulent period in the banking sector. Our dedication to strong, sound and conservative management and banking policies has enabled the Bank to weather economic recessions, world wars, natural disasters, and interest rate volatility, and today’s environment is no exception,” said Daniel K. Walker, Chairman of the Board and CEO.

“We would like to remind clients, shareholders and the communities we serve of F&M’s strong financial position, commitment to safeguarding our clients’ deposits and serving all of our stakeholders in the same professional manner as we have for more than 116 years.”

F&M Bank remains California's strongest, as evidenced by:

• Strong liquidity, to support all operations and depositor needs, as well as access to significant funding, if ever needed.
• Capital reserves that are more than three times the federally mandated requirement to be deemed “well-capitalized.”
• Capital reserves sufficient to protect depositors against any unrealized securities losses and remain at two-times the regulatory “well-capitalized” standard.
• 115 years of profitability (a perfect record).
• 106 years of dividends without a decrease (a perfect record).
• A balanced and safe loan-to-deposit ratio at 67.7%.
• A strong loan portfolio, with a loan-to-value ratio of less than 50% - one of the strongest in the country.
• A stable and diversified client and deposit base developed over 116 years, with no reliance on a particular client type or sector.
• No exposure to crypto currencies or crypto-based collateral.
• No exposure to off-balance sheet hedging or related activities.

“F&M Bank is led by a team of experienced executive officers who have nearly 400 combined years of experience managing banks of all sizes. We look ahead with optimism and plans for 2023 including opening two new branch offices and continued investments in technology infrastructure to serve our clients even better. Our executive officers are available 24/7 to speak with clients and prospects, as needed,” Walker added.

About Farmers & Merchants Bank

Founded in Long Beach in 1907 by C.J. Walker, F&M Bank provides white-glove service to clients at 26 branches from San Clemente to Santa Barbara, as well as through Online and Mobile Banking platforms. The Bank offers commercial and small business banking, business loan programs, home loans, and a robust offering of consumer retail banking products, including checking, savings and youth accounts. F&M Bank is a California state-chartered bank with deposits insured by the Federal Deposit Insurance Corporation (Member FDIC) and an Equal Housing Lender. NMLS #537388. For more information about F&M, please visit the website, www.FMB.com.

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