Head to Head Survey: First National Bank Alaska (OTCMKTS:FBAK) vs. Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL)

Earnings and Valuation

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

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

First National Bank Alaska has lower revenue, but higher earnings 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.

Risk and Volatility

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

Institutional and Insider Ownership

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

Profitability

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

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

Dividends

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 an annual dividend of $16.00 per share and has a dividend yield of 5.3%. Farmers & Merchants Bank of Long Beach pays out 20.8% of its earnings in the form of a dividend. First National Bank Alaska pays out 65.4% 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.

Summary

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

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.

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.