FARMERS & MERCHANTS BANK

Rooted in Tradition

Determined to create a sound financial institution that would serve the people of Long Beach, C.J. Walker and his wife established Farmers & Merchants Bank (F&M) on November 23, 1907. Since that time, F&M has worked to improve life in Long Beach under the leadership of the Walker family. From successfully weathering the Great Depression to diligently working to restore the financial stability of businessmen devastated by the 1994 Northridge earthquake, F&M has maintained its commitment to its customers and community. C.J. Walker retired in 1937, leaving leadership of the bank to his son, Gus, who in 1979 passed this responsibility to his son, Kenneth. Kenneth Walker currently heads F&M, along with his sons, Daniel and Henry. Through consistent and careful management by the founding family, F&M has grown to become one of the strongest and most financially secure banks in California.

The founders of Farmers & Merchants Bank designed their organization to address the needs of commercial banking customers. F&M established its focus upon the principles of conservatism, customer service, honesty and integrity. And it has maintained this focus by instituting practices that embody these values: relationship banking, community philanthropy, technology investments and accelerated loan approval processes. Guided by its original values and time-honored practices, F&M has sustained its financial strength throughout the century, while maintaining its commitment to servicing the needs of its business and retail clients, many of whom can trace their involvement with F&M back two or three generations.

F&M maintains a capital ratio four times higher than the limit set by the FDIC. Because of its conservative lending practices and investment strategies, F&M earned the reputation of being "perhaps the 'most sound' bank in the United States," according to a 1999 study by Jack Norberg, an analyst at Standard Investment Chartered, Inc. Moreover, F&M was the only California bank in its class to receive a perfect financial rating from Bank Financial Quarterly, a nationally recognized asset rating service.

In 2003, Weiss Ratings, Inc. rated F&M as the strongest bank in Southern California and the fourth strongest bank in the United States. Weiss Ratings, Inc. is a Florida-based independent provider of advisory information for financial services companies and financial investments.

Today, F&M operates 20 branches in the Orange County, Long Beach and the South Bay, serving each community with a full range of advanced business, personal and online banking services. Its commitment to keeping the bank strong, conservative and relationship-based continues to guide F&M's charter for the future. Substantial investments in overhauling and upgrading its technology infrastructure position the institution to expand its operations throughout Southern California while maintaining its high standards for customer service excellence.

Website: www.fmb.com