Critical Survey: First National of Nebraska (OTCMKTS:FINN) versus Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL)

Volatility & Risk

Farmers & Merchants Bank of Long Beach has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, First National of Nebraska has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Institutional & Insider Ownership

7.6% of Farmers & Merchants Bank of Long Beach shares are owned by institutional investors. Comparatively, 0.7% of First National of Nebraska shares are owned by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are owned by insiders. Comparatively, 41.7% of First National of Nebraska shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 1.4%. First National of Nebraska pays an annual dividend of $160.00 per share and has a dividend yield of 1.2%. Farmers & Merchants Bank of Long Beach pays out 26.1% of its earnings in the form of a dividend.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bank of Long Beach	$459.33 million	2.07	$44.88 million	$428.48	18.20
First National of Nebraska	$3.23 billion	1.16	$412.43 million	N/A	N/A

First National of Nebraska has higher revenue and earnings than Farmers & Merchants Bank of Long Beach.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bank of Long Beach	12.08%	3.84%	0.46%
First National of Nebraska	N/A	N/A	N/A

Summary

Farmers & Merchants Bank of Long Beach beats First National of Nebraska on 7 of the 11 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 of Nebraska

First National of Nebraska, Inc. operates as the bank holding company for First National Bank of Omaha that provides various banking products and services. The company offers checking, savings, and individual retirement accounts; certificates of deposit; and credit cards. It also provides personal loans and lines of credit; auto loans; mortgage loans; home equity lines of credit and loans; small business loans and lines of credit; small business administration loans; and commercial lending solutions. In addition, the company offers treasury management, debt consolidation, financial planning, retirement planning, wealth management, merchant, and payroll services; and personal, commercial, and farm insurance products. Further, it provides solutions for agribusiness, commercial real estate, healthcare, transportation, and correspondent banking; investment services, such as capital market and institutional asset management; and digital banking services. First National of Nebraska, Inc. was founded in 1857 and is headquartered in Omaha, Nebraska.