SOURCE: F & M Bank Corp.

F & M Bank Corp.

October 22, 2015 08:45 ET

F & M Bank Corp. Announces Dividend Increase, Record Quarterly and Year to Date Earnings

TIMBERVILLE, VA--(Marketwired - Oct 22, 2015) - F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the third quarter and it's recently declared third quarter dividend. 

             
Selected Financial Highlights:   2015     2014  
    Q3     YTD     Q3     YTD  
Net Income (000's)   $ 2,189     $ 6,236     $ 1,569     $ 4,236  
Net Income available to Common   $ 2,062     $ 5,854     $ 1,569     $ 4,236  
Earnings per share     0.63       1.78       0.47       1.38  
Net Interest Margin     4.41 %     4.45 %     4.36 %     4.29 %
Allowance for loan losses     1.64 %     1.64 %     1.70 %     1.70 %
Provision for loan losses (000's)   $ -     $ 300     $ 750     $ 2,250  
Non-Performing Loans (000's)   $ 6,386     $ 6,386     $ 7,053     $ 7,053  
Equity to Assets     12.47 %     12.47 %     11.59 %     11.59 %
Efficiency Ratio     57.05 %     58.97 %     56.14 %     57.78 %
                                 

Dean Withers, President and CEO, commented, "Our third quarter earnings for 2015 totaled $2.19 million, which is an increase of over 39.5% compared to 2014. We continue to achieve record quarterly earnings on the strength of our net interest margin and efficiency ratio." Withers continued, "Loans held for investment increased 6.6% or $33.5 million in the past twelve months. Loans held for sale increased $39.4 million compared to the same period in 2014, fueled by lower secondary market interest rates and an improving real estate market."

Withers stated, "The decrease in our non-performing loans and the sharp decline in charge offs has enabled us to reduce our provision for loan losses, while maintaining a healthy allowance for loan losses of 1.64%. We continue to experience improvement in our criticized asset ratio which further supports the reduced provision." Withers continued, "On October 20, 2015, our Board of Directors declared a third quarter dividend of $0.19 per share. Based on our most recent trade price of $24.00 per share, this dividend constitutes a 3.16% yield on an annualized basis. The dividend will be paid on November 16, 2015, to shareholders of record as of November 4, 2015." Highlights of the company's financial performance are included below.

F & M Bank Corp. is an independent, locally-owned, community bank holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank's ten banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through two loan production offices located in Penn Laird, VA and Fishersville, VA and through its subsidiary, VBS Mortgage located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.

This press release may contain "forward-looking statements" as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release. 

   
F & M Bank Corp. Financial Highlights  
   
    For Nine Months
Ended September 30
 
INCOME STATEMENT   Unaudited
2015
    Unaudited
2014
 
Interest and Dividend Income   $ 21,834,518     $ 19,838,232  
Interest Expense     2,105,120       2,776,643  
  Net Interest Income     19,729,398       17,061,589  
Non-Interest Income     2,880,037       2,705,229  
Provision for Loan Losses     300,000       2,250,000  
Other Non-Interest Expenses     13,371,621       11,462,755  
  Income Before Income Taxes     8,937,814       6,054,063  
Provision For Income Taxes     2,586,293       1,844,035  
Less Minority Interest income     115,397       26,300  
Net Income   $ 6,236,124     $ 4,236,328  
Dividend on preferred stock     382,500       -  
Net Income available to common shareholders   $ 5,853,624     $ 4,236,328  
Average Common Shares Outstanding     3,292,709       3,061,432  
Net Income Per Common Share     1.78       1.38  
Dividends Declared     .54       .51  
                 
                 
BALANCE SHEET   Unaudited
September 30, 2015
    Unaudited
September 30, 2014
 
Cash and Due From Banks   $ 6,420,254     $ 6,155,742  
Interest Bearing Bank Deposits     489,849       1,038,662  
Federal Funds Sold     -       16,165,000  
Loans Held for Sale     55,481,773       16,131,118  
Loans Held for Investment     540,414,615       506,845,616  
  Less Allowance for Loan Losses     (8,869,905 )     (8,601,293 )
  Net Loans Held for Investment     531,544,710       498,244,323  
Securities     24,143,104       19,298,256  
Other Assets     38,021,163       37,539,741  
  Total Assets   $ 656,100,853     $ 594,572,842  
                 
Deposits   $ 483,816,907     $ 487,640,625  
Short Term Debt     38,239,340       3,783,809  
Long Term Debt     38,892,857       15,000,000  
Subordinated Debt     -       10,191,000  
Other Liabilities     13,313,770       9,043,174  
  Total Liabilities     574,262,874       525,658,608  
Stockholders' Equity     81,837,979       68,914,234  
  Total Liabilities and Stockholders' Equity   $ 656,100,853     $ 594,572,842  
Book Value Per Common Share   $ 22.05     $ 20.94  
                 
                 

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