SOURCE: F & M Bank Corp.

F & M Bank Corp.

July 27, 2015 09:00 ET

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

TIMBERVILLE, VA--(Marketwired - Jul 27, 2015) - F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the second quarter and it's recently declared second quarter dividend. 

             
Selected Financial Highlights:   2015     2014  
    Q2     Q1     YTD     Q2     Q1     YTD  
Net Income (000's)   $ 2,176     $ 1,871     $ 4,047     $ 1,484     $ 1,183     $ 2,667  
Net Income available to Common   $ 2,049     $ 1,743     $ 3,792     $ -     $ 1,183     $ 2,667  
Earnings per share     0.62       0.53       1.15       0.45       0.46       0.91  
Net Interest Margin     4.46 %     4.46 %     4.46 %     4.35 %     4.16 %     4.26 %
Allowance for loan losses     1.67 %     1.70 %     1.67 %     1.61 %     1.66 %     1.61 %
Provision for loan losses (000's)   $ -     $ 300     $ 300     $ 750     $ 750     $ 1,500  
Non-Performing Loans (000's)   $ 7,299     $ 7,174     $ 7,299     $ 7,382     $ 11,058     $ 7,382  
Equity to Assets     12.43 %     12.26 %     12.43 %     11.91 %     11.67 %     11.91 %
Efficiency Ratio     59.65 %     60.36 %     60.00 %     56.62 %     60.91 %     58.67 %
                                                 

Dean Withers, President and CEO, commented, "Our second quarter earnings for 2015 totaled $2.18 million, which is an increase of over 47% compared to 2014. We continue to achieve record quarterly earnings on the strength of our net interest margin." Withers continued, "Loans held for investment increased 7.6% or $37.5 million in the past twelve months. Loans held for sale increased $42.1 million compared to the same period in 2014, fueled by lower secondary market interest rates and an improving real estate market."

"We are ecstatic about the early success of our newest branch, which opened on June 15th in Staunton, VA. We have been serving Augusta County for over two years with a loan production office in Fishersville. This new branch gives us greater opportunities to meet all the financial needs of our growing customer base in this market," commented Withers.

Withers stated, "The continued stability in our non-performing loans has enabled us to reduce our provision for loan losses, while maintaining a healthy allowance for loan losses of 1.67%. We continue to experience improvement in our criticized asset ratio which further supports the reduced provision." Withers continued, "On July 21, 2015, our Board of Directors declared a second quarter dividend of $0.18 per share. Based on our most recent trade price of $21.05 per share, this dividend constitutes a 3.42% yield on an annualized basis. The dividend will be paid on August 18, 2015, to shareholders of record as of August 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 nine 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 Six Months
Ended June 30
 
INCOME STATEMENT   Unaudited
2015
  Unaudited
2014
 
Interest and Dividend Income   $ 14,383,982   $ 12,965,371  
Interest Expense     1,383,329     1,869,638  
  Net Interest Income     13,000,653     11,095,733  
Non-Interest Income      1,739,821      1,710,245  
Provision for Loan Losses     300,000     1,500,000  
Other Non-Interest Expenses     8,882,243     7,539,354  
  Income Before Income Taxes     5,558,231     3,766,624  
Provision For Income Taxes      1,434,923      1,117,775  
Less Minority Interest income     76,124     (18,092 )
Net Income   $ 4,047,184   $ 2,666,941  
Dividend on preferred stock     255,000     -  
Net Income available to common shareholders   $ 3,792,184   $ 2,666,941  
Average Common Shares Outstanding     3,293,510     2,945,363  
Net Income Per Common Share      1.15      .91  
Dividends Declared     .36     .34  
               
             
BALANCE SHEET   Unaudited
June 30,
2015
    Unaudited
June 30,
2014
 
Cash and Due From Banks   $ 6,290,636     $ 8,413,665  
Interest Bearing Bank Deposits     528,054       934,913  
Federal Funds Sold     -       3,337,000  
Loans Held for Sale      55,761,519        13,696,850  
Loans Held for Investment     532,805,332       495,306,477  
  Less Allowance for Loan Losses     (8,914,344 )     (7,995,149 )
  Net Loans Held for Investment     523,890,988       487,311,328  
Securities     24,179,119       19,124,724  
Other Assets     35,265,324       36,624,218  
  Total Assets   $ 647,915,640     $ 569,442,698  
                 
Deposits   $ 482,770,490     $ 472,249,851  
Short Term Debt     48,087,143       3,294,870  
Long Term Debt     24,321,429       7,500,000  
Subordinated Debt      -        10,191,000  
Other Liabilities     12,2219,594       8,389,514  
  Total Liabilities     567,398,656       501,625,235  
Stockholders' Equity     80,516,984       67,817,463  
  Total Liabilities and Stockholders' Equity   $ 647,915,640     $ 569,442,698  
Book Value Per Common Share   $ 21.58     $ 20.62  
                 

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