W. Henry Walker, chief executive of Farmers & Merchants Bank, can trace his company’s deep involvement in the community to 1907, the year when his great grandfather C.J. Walker founded the bank.
“It’s our belief structure that dates back to my great grandparents,” Walker told the Business Journal. “We have a responsibility to give back. That belief structure is foundational.”
F&M Bank, as it is often known, has risen to one of Orange County’s most prominent banks with 15 branches and more than $4 billion in deposits. Companywide, it has grown from $1.5 billion in assets 30 years ago to $12 billion in 2023, making it one of the nation’s largest banks. It is lightly traded with a $710 million market cap (OTC Markets: FMBL).
F&M Bank says it’s been supporting local communities in Orange County for over 68 years.
In 2024, F&M provided over $3.3 million in donations, sponsorships, in-kind donations and access to grant programs to over 750 organizations across Southern California, with Orange County organizations garnering more than $1.5 million.
It has supported events as diverse the Arts & Learning Conservatory to The Wooden Floor to Farmhouse Rescue. Last year, it held 200 hours of workshops to teach more than 2,000 youngsters about the importance of understanding their finances.
4th Generation
Walker’s first job at the bank came at age 16 when he was tasked with delivering gingerbread to the branches during the holidays, a family tradition. Brother Dan Walker’s first job with the bank was at 14 when he ran the elevator at the headquarters in Long Beach. Both moved up the ranks, working in just about every job at the bank.
About a year ago, Henry Walker was promoted from president to CEO, taking over from brother Dan Walker, who now has the title of executive chairman. They are the fourth generation of the family to work at the bank.
The brothers have inherited a proud legacy that includes the bank surviving two world wars, recessions, the Spanish flu and the Internet bubble crash. It’s never had an operating loss. Since 1916, it has paid dividends, which has never decreased.
More recently, it was able to avoid the 2008 financial meltdown that took down so many banks because the pair didn’t issue subprime mortgages. It avoided problems during the pandemic by helping its customers obtain emergency loans. During an early 2022 interview with the Business Journal, the brothers presciently predicted the Federal Reserve raising rates and pending problems with high-rise office buildings.
During the pandemic, the brothers said their first concern was the health of their employees.
They attribute their growth to often talking with their employees, proudly pointing out that more than 100 employees have been with the bank for at least 15 years.
The Strategy
Its business strategy is to develop “relationships” with customers by being able to offer top-level service.
“We are a service organization, and we beat the competition on service every day,” Walker said.
Another part of its strategy is community involvement.
It donates to five core areas: human services, arts, faith, education and health care. For example, this year it sponsored the nonprofit organization Su Casa’s grant application for $60,000 in funding to help support their programs addressing domestic violence in LA and Orange Counties.
Some of Walker’s favorite recent events include Big Brothers and Big Sisters as well as the Pacific Symphony’s “Family Musical Mornings” that are 45-minute concerts to set young audiences “on the path to a lifelong love of music.” Walker, whose bank has sponsored the event for 20 years, enjoys seeing children learning about the joys of classical music.
The bank can often be found lending to nonprofit organizations, such as issuing a loan to help build Costa Mesa’s new $94 million Orange County Museum of the Arts, which opened in 2022.
Its Specialty Lending Department coordinates Tax-Exempt Financing for qualifying entities, allowing their nonprofit clients to obtain loans without the tax implications. The bank says that means more money can be utilized for programs or other important expenses that help their constituents.
Bank officials determine the loans based on community support for the organization such as pledges.
“It’s a culmination of those things that lead to a yes decision,” Walker said.
The community involvement does more than attract customers, Walker said.
“It does position our brand in the marketplace as one that is caring, that has humility,” Walker said. “It’s not just for bringing in business. These are things that we firmly believe. It’s also good for our employees. They want to feel good about the company they work for.”
