SOURCE: F & M Bank Corp.

F & M Bank Corp.

January 26, 2015 09:00 ET

F & M Bank Corp. Announces Record Earnings and Dividend Increase

TIMBERVILLE, VA--(Marketwired - Jan 26, 2015) -  F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the full year and fourth quarter ended December 31, 2014, as well as its recently declared fourth quarter dividend.

           
Selected Financial Highlights: 2014     2013  
  Q4     YTD     Q4     YTD  
Net Income (000's) $ 1,566     $ 5,802     $ 1,184     $ 4,716  
Earnings per common share $ 0.44     $ 1.82     $ 0.46     $ 1.88  
Net Interest Margin   4.29 %     4.30 %     4.07 %     4.02 %
Allowance for loan losses   1.68 %     1.68 %     1.71 %     1.71 %
Provision for loan losses (000's) $ -     $ 2,250     $ 750     $ 3,775  
Non-Performing Loans (000's) $ 6,975     $ 6,975     $ 12,581     $ 12,581  
Equity to Assets   13.10 %     13.10 %     9.79 %     9.79 %
Efficiency Ratio   60.62 %     58.51 %     61.89 %     58.15 %
                               

Dean Withers, President and CEO, commented, "We're very pleased to announce record earnings for 2014. Our fourth quarter earnings increased 32.26% versus prior year, to $1.566 million and full year earnings of $5.802 million increased $1.086 million or 23.03%. The significant increase in earnings is due primarily to a very strong net interest margin of 4.30% for the full year." Withers stated, "Loan demand continued at a robust pace in the fourth quarter, as the total portfolio increased $11.3 million for the quarter and $39.7 million for the full year, with most of the growth derived from our Dealer Finance Division and our Fishersville Loan Production Office." Withers continued, "Non-performing loans now equal 1.35% of the loan portfolio vs. 2.63% at year end 2013. On a nominal basis non-performing loans have decreased $5.6 million (44.6%) compared to the prior period."

Withers continued, "We also completed our second capital raise of the year in December with the issuance of $10 million in preferred stock, proceeds of which were used to pay off all of our subordinated debt. This is yet another positive step in reducing our funding costs and growing our capital base in order to leverage growth opportunities" Withers concluded, "On January 22, 2015, our Board of Directors declared a fourth quarter dividend of $0.18 per share, which is an increase of $.01 per share or a 5.88% increase. Based on our most recent trade price of $19.75 per share, this dividend constitutes a 3.65% yield on an annualized basis. The dividend will be paid on February 20, 2015, to shareholders of record as of February 5, 2015." A summary balance sheet and income statement 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 nine 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.
Financial Highlights
 
    For Twelve Months
Ended December 31
INCOME STATEMENT   Unaudited
2014
  Unaudited
2013
Interest and Dividend Income   $ 26,772,057   $ 25,965,584
Interest Expense     3,647,722     4,772,743
Net Interest Income     23,124,335     21,192,841
Non-Interest Income     3,530,335     4,032,429
Provision for Loan Losses     2,250,000     3,775,000
Other Non-Interest Expenses     15,655,914     14,719,995
Income Before Income Taxes     8,748,756     6,730,275
Provision For Income Taxes     2,901,496     1,907,297
Less Minority Interest income     45,653     107,185
Net Income   $ 5,801,607   $ 4,715,793
Dividend on preferred stock     127,500     -
Net Income available to common shareholders   $ 5,674,107   $ 4,715,793
Average Common Shares Outstanding     3,119,333     2,504,015
Net Income Per Common Share     1.82     1.88
Dividends Declared     .68     .68
             
             
BALANCE SHEET   Unaudited
December 31,
2014
    Unaudited
December 31,
2013
 
Cash and Due From Banks   $ 6,241,016     $ 5,834,596  
Interest Bearing Bank Deposits     910,527       708,049  
Federal Funds Sold     16,051,000       2,000  
Loans Held for Sale     13,381,941       3,804,425  
Loans Held for Investment     518,201,574       478,453,008  
  Less Allowance for Loan Losses     (8,724,731 )     (8,184,376 )
  Net Loans Held for Investment     509,476,843       470,268,632  
Securities     22,304,902       38,485,768  
Other Assets     36,212,278       33,684,697  
Total Assets   $ 604,578,507     $ 552,788,167  
                 
Deposits   $ 491,504,536     $ 464,149,244  
Short Term Debt     14,358,492       3,423,078  
Long Term Debt     9,875,000       11,500,000  
Subordinated Debt     -       10,191,000  
Other Liabilities     9,625,803       9,383,610  
  Total Liabilities     525,363,831       498,646,932  
Stockholders' Equity     79,214,676       54,141,235  
  Total Liabilities and Stockholders' Equity   $ 604,578,507     $ 552,788,167  
Book Value Per Common Share   $ 21.20     $ 21.56  

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