SOURCE: F & M Bank Corp.

F & M Bank Corp.

April 29, 2016 11:15 ET

F & M Bank Corp. Announces Earnings

TIMBERVILLE, VA--(Marketwired - Apr 29, 2016) -  F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter ended March 31, 2016. Selected highlights for the year include:

  • Net income of $2.1 million
  • Net interest margin of 4.39%
  • Net interest income increased $495 thousand
  • Charge-offs of only $42 thousand
  • Loan held for investment increased $12.8 million

Dean Withers, President and CEO, commented, "We are pleased to announce first quarter earnings of $2.1 million. This represents our best first quarter ever and is an 11.7% increase over the comparable quarter in 2015. Loan demand was strong across all lines of business and geographic markets with the growth in loans held for investment totaling $12.8 million."

Withers continued, "Non-performing loans were virtually unchanged from year end and are down marginally from the same period in 2015. A large portion of the non-performing loans are to a few borrowers in the construction and land development portfolios. With indications of a number of properties under contract and strong construction demand we expect these past dues to decline as we move into the spring and summer seasons. We have now completed four consecutive quarters without funding the provision for loan losses, yet due to nominal charge-offs our allowance for loan losses remains strong at 1.57% of loans held for investment." Highlights of our 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 eleven banking offices in Rockingham, Shenandoah and Page 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.  
Key Statistics  
   
  2016     2015  
  Q1     Q4     Q3     Q2     Q1  
Net Income (000's) $ 2,090     $ 2,181     $ 2,189     $ 2,176     $ 1,871  
Net Income available to Common $ 1,962     $ 2,053     $ 2,062     $ 2,049     $ 1,743  
Earnings per common share $ 0.60     $ 0.62     $ 0.63     $ 0.62     $ 0.53  
                                       
Return on Average Assets   1.27 %     1.33 %     1.39 %     1.42 %     1.25 %
Return On Average Equity   10.07 %     10.59 %     11.28 %     11.63 %     10.38 %
Dividend Payout Ratio   31.67 %     30.65 %     28.57 %     29.03 %     33.96 %
                                       
Net Interest Margin   4.39 %     4.39 %     4.41 %     4.46 %     4.46 %
Yield on Average Earning Assets   4.91 %     4.88 %     4.88 %     4.93 %     4.94 %
Yield on Average Interest Bearing Liabilities   0.74 %     0.71 %     0.67 %     0.66 %     0.67 %
Net Interest Spread   4.17 %     4.17 %     4.21 %     4.27 %     4.27 %
                                       
Provision for Loan Losses (000's) $ -     $ -     $ -     $ -     $ 300  
Net Charge-offs $ 42     $ 88     $ 45     $ 24     $ 86  
Net Charge-offs as a % of Loans   0.01 %     0.02 %     0.01 %     0.005 %     0.02 %
Non-Performing Loans (000's) $ 6,709     $ 6,526     $ 6,386     $ 7,299     $ 7,174  
Non-Performing Loans to Total Assets   0.98 %     0.98 %     0.97 %     1.13 %     1.11 %
Non-Performing Assets (000's) $ 9,486     $ 8,918     $ 8,848     $ 9,744     $ 9,943  
Non-Performing Assets to Assets   1.38 %     1.34 %     1.35 %     1.50 %     1.54 %
                                       
Efficiency Ratio   61.19 %     58.93 %     57.05 %     59.65 %     60.36 %
                                       
(1) The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 34%. The Company's net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.
   
(2) The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a large percentage of its income to expenses.
   
   
F & M Bank Corp.  
Financial Highlights  
       
    For Three Months
Ended March 31
 
INCOME STATEMENT   Unaudited
2016
    Unaudited
2015
 
Interest and Dividend Income   $ 7,634,436     $ 7,010,955  
Interest Expense     813,556       685,108  
  Net Interest Income     6,820,880       6,325,847  
Non-Interest Income     699,354       744,817  
Provision for Loan Losses     -       300,000  
Other Non-Interest Expenses     4,733,217       4,382,488  
  Income Before Income Taxes     2,787,017       2,388,176  
Provision For Income Taxes     693,703       491,956  
Less Minority Interest income     3,763       25,669  
Net Income   $ 2,089,551     $ 1,870,551  
Dividend on preferred stock     127,500       127,500  
Net Income available to common shareholders   $ 1,962,051     $ 1,743,051  
Average Common Shares Outstanding     3,285,373       3,292,872  
Net Income Per Common ShareDividends Declared     .60
.19
      .53
.18
 
                 
                 
                 
BALANCE SHEET   Unaudited
March 31, 2016
    Unaudited
March 31, 2015
 
Cash and Due From Banks   $ 7,001,425     $ 6,708,483  
Interest Bearing Bank Deposits     1,300,614       816,070  
Federal Funds Sold     -       -  
Loans Held for Sale     66,468,292       59,225,763  
Loans Held for Investment     556,893,697       526,649,487  
  Less Allowance for Loan Losses     (8,739,809 )     (8,938,465 )
  Net Loans Held for Investment     548,153,888       517,711,022  
Securities     25,888,234       24,415,364  
Other Assets     39,225,323       36,443,684  
    Total Assets   $ 688,037,776     $ 645,320,386  
                 
Deposits   $ 495,702,478     $ 483,426,995  
Short Term Debt     46,624,663       45,763,311  
Long Term Debt     47,178,571       24,750,000  
Other Liabilities     14,298,539       12,237,956  
    Total Liabilities     603,804,251       566,178,262  
Preferred Stock     9,425,123       9,125,123  
Common Equity     74,808,402       69,717,001  
  Stockholders' Equity     84,233,525       79,142,124  
    Total Liabilities and Stockholders' Equity   $ 688,037,776     $ 645,320,386  
Book Value Per Common Share   $ 22.77     $ 21.17  
Tangible Book Value Per Common Share   $ 22.61     $ 20.92  

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