SOURCE: F & M Bank Corp.

F & M Bank Corp.

April 17, 2015 11:10 ET

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

TIMBERVILLE, VA--(Marketwired - Apr 17, 2015) - F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter and it's recently declared first quarter dividend. 

             
Selected Financial Highlights:            
    2015 Q1     2014 Q1  
Net Income (000's)   $ 1,871     $ 1,183  
Net Income Available to Common Shareholders     1,743       1,183  
Earnings per Common Share     0.53       0.46  
Net Interest Margin     4.46 %     4.16 %
Allowance for loan losses     1.70 %     1.65 %
Provision for loan losses (000's)   $ 300     $ 750  
Non-Performing Loans (000's)   $ 7,174     $ 11,050  
Equity to Assets     12.26 %     11.67 %
Efficiency Ratio     60.36 %     60.91 %
                 

Dean Withers, President and CEO, commented, "Our first quarter earnings for 2015 totaled $1.87 million, which is an increase of over 58% compared to 2014. We continue to achieve record quarterly earnings on the strength of a rising net interest margin." Withers continued, "The margin improvement has been fueled by strong loan demand across multiple loan categories; including dealer finance, residential mortgage and commercial. Our loans held for investment have increased $40.3 compared to the same period in 2014. Lower secondary market interest rates and an improving real estate market have also resulted in a significant increase in loans held for sale."

Withers stated, "Non-performing loans at $7.17 million decreased $3.87 million compared to March 31, 2014 and have remained stable over the last two quarters. The improvement in both our non-performing and criticized asset ratios has enabled us to reduce our provision for loan losses, while continuing to grow our allowance for loan losses." Withers continued, "On April 16, 2014, our Board of Directors declared a first quarter dividend of $0.18 per share. Based on our most recent trade price of $20.20 per share, this dividend constitutes a 3.56% yield on an annualized basis. The dividend will be paid on May 14, 2015, to shareholders of record as of April 30, 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 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 Three Months
Ended March 31
 
INCOME STATEMENT   Unaudited
2015
    Unaudited
2014
 
Interest and Dividend Income   $ 7,010,955     $ 6,290,763  
Interest Expense     685,108       950,231  
  Net Interest Income     6,325,847       5,340,532  
Non-Interest Income     901,648       775,960  
Provision for Loan Losses     300,000       750,000  
Other Non-Interest Expenses     4,382,488       3,738,198  
  Income Before Income Taxes     2,545,007       1,628294  
Provision For Income Taxes     648,787       475,524  
Less Minority Interest income     25,669       (29,951 )
Net Income   $ 1,870,551     $ 1,182,721  
Dividend on preferred stock     127,500       -  
Net Income available to common shareholders   $ 1,743,051     $ 1,182,721  
Average Common Shares Outstanding     3,292,872       2,598,639  
Net Income Per Common Share     .53       .46  
Dividends Declared     .18       .17  
                 
                 
                 
BALANCE SHEET   Unaudited
March 31, 2015
    Unaudited
March 31, 2014
 
Cash and Due From Banks   $ 6,708,483     $ 7,188,824  
Interest Bearing Bank Deposits     816,070       842,033  
Federal Funds Sold     -       27,988,000  
Loans Held for Sale     59,225,763       5,577,806  
Loans Held for Investment     526,649,487       486,327,054  
  Less Allowance for Loan Losses     (8,938,465 )     (8,009,279 )
  Net Loans Held for Investment     517,711,022       478,317,775  
Securities     24,415,364       19,391,046  
Other Assets     36,443,684       33,838,105  
  Total Assets   $ 645,320,386     $ 573,143,589  
                 
Deposits   $ 483,426,995     $ 471,543,989  
Short Term Debt     45,763,311       3,696,874  
Long Term Debt     24,750,000       11,500,000  
Subordinated Debt     -       10,191,000  
Other Liabilities     12,237,956       9,343,704  
  Total Liabilities     566,178,262       506,275,567  
Stockholders' Equity     79,142,124       66,868,022  
  Total Liabilities and Stockholders' Equity   $ 645,320,386     $ 573,143,589  
Book Value Per Common Share   $ 21.16     $ 20.34  
                 

Contact Information

  • CONTACT:
    Neil Hayslett
    EVP//Chief Administrative Officer
    Farmers & Merchants Bank
    540-896-8941
    NHayslett@FMBankVA.com