Long Beach Bank Eyes New Branches
in Central and South County
Farmers and Merchants Bank of Long Beach has nearly half of its 16 branches in Orange County and says it is looking to add more here.
“We are pushing for growth in Orange County,” said Daniel Walker, an executive vice president with the bank.
Farmers and Merchants counts seven OC branches,five in North County and one each in Lake Forest and San Juan Capistrano. The bank is looking to Irvine, Newport Beach and Huntington Beach for new sites, according to Walker.
With $454 million in OC deposits, Farmers and Merchants ranked No. 9 on the Business Journal’s 2001 list of commercial banks operating here. In February, the bank reported a 6% increase in OC deposits vs. the same period in 2000.
Farmers and Merchants is looking to expand its mortgage banking services, Walker said. It also is seeking to expand its merchant bank card business, which includes point-of-sale terminals and Internet credit card processing. About 15% of the bank’s lending is to small businesses.
With consolidation in OC’s banking sector, Farmers and Merchants is betting it can grow as a niche player in between big names such as Washington Mutual Inc., Bank of America Inc. and a handful of smaller banks operating here.
Farmers and Merchants’ managers also like OC because that’s where they live. Walker lives in Orange and his brother Henry lives in Huntington Beach.
The Walkers are the great-grandsons of C.J. Walker, who founded Farmers and Merchants Bank in Long Beach in 1907. They were handed the reins of the bank from their father. And the next generation of Walkers is in place: Daniel’s 24-year old son, Matthew, works at the bank’s Garden Grove office as an assistant manager.
C.J. Walker started the business on a few moral, ethical and religious principles that still guide the bank today. The Walkers are Christians and they aren’t afraid to tell you.
“This is a Christian bank. The bank was founded on family and church, and serving the communities. When we hire management, we express what type of bank we are. The people that join us in management understand those ideals,” Daniel Walker said.
The bank also uses its religious affiliation to do more business. While attracting religious people as consumers, the bank also has been courting groups looking to build churches, synagogues and other religious facilities.
“It’s not only good strategy for business. It is a positive event for us,” Henry Walker said.
The Walkers say the bank’s creed helps in getting new business.
“Our reputation precedes us. People know what we offer and how we do business,” Henry said.
Farmers and Merchants hands out dividends to shareholders, but the majority of the bank’s profits go directly to its capital reserves. That has made Farmers and Merchants one of the most capitalized banks in the nation and earned it top marks from federal regulators and bank examiners. n
