Reviewing Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) & First National Bank Alaska (OTCMKTS:FBAK)

Institutional & Insider Ownership

7.6% of Farmers & Merchants Bank of Long Beach shares are owned by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.3%. Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 1.3%. First National Bank Alaska pays out 65.4% of its earnings in the form of a dividend. Farmers & Merchants Bank of Long Beach pays out 20.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares First National Bank Alaska and Farmers & Merchants Bank of Long Beach’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	29.19%	14.98%	1.55%
Farmers & Merchants Bank of Long Beach	15.22%	4.89%	0.59%

Risk & Volatility

First National Bank Alaska has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bank of Long Beach has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Valuation and Earnings

This table compares First National Bank Alaska and Farmers & Merchants Bank of Long Beach”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$265.67 million	3.60	$77.54 million	$24.48	12.32
Farmers & Merchants Bank of Long Beach	$449.19 million	2.22	$68.35 million	$538.20	15.42

First National Bank Alaska has higher earnings, but lower revenue than Farmers & Merchants Bank of Long Beach. First National Bank Alaska is trading at a lower price-to-earnings ratio than Farmers & Merchants Bank of Long Beach, indicating that it is currently the more affordable of the two stocks.

Summary

Farmers & Merchants Bank of Long Beach beats First National Bank Alaska on 7 of the 13 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

About Farmers & Merchants Bank of Long Beach

Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in Los Angeles, Orange, and Santa Barbara Counties. It offers checking, savings, Christmas club savings, health savings, market rate savings, and money market accounts; demand and time deposits; certificates of deposit; and individual retirement account. The company also provides personal, home, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit and debit cards. In addition, it offers account management, receivables and payables, and risk management services; commercial lending services; and faith-based and healthcare banking services, as well as online and mobile banking services. Farmers & Merchants Bank of Long Beach was founded in 1907 and is headquartered in Long Beach, California.