SOURCE: F & M Bank Corp.

F & M Bank Corp.

April 23, 2014 09:06 ET

F & M Bank Corp. Reports 1st Quarter 2014 Financial Results

TIMBERVILLE, VA--(Marketwired - Apr 23, 2014) - F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter and its recently declared first quarter dividend. 

   
Selected Financial Highlights:  
    2014 Q1     2013 Q1     2013 Q4  
Net Income (000's)   $ 1,183     $ 1,216     $ 1,184  
Earnings per share     0.46       0.49       0.46  
Net Interest Margin     4.16 %     3.98 %     4.07 %
Allowance for loan losses     1.65 %     1.77 %     1.71 %
Provision for loan losses (000's)   $ 750     $ 900     $ 750  
Non-Performing Loans (000's)   $ 11,050     $ 11,685     $ 12,581  
Equity to Assets     11.67 %     8.86 %     9.79 %
Efficiency Ratio     60.91 %     57.74 %     61.89 %
                         

Dean Withers, President and CEO, commented, "First quarter earnings for 2014 total $1.183 million, which is virtually unchanged from fourth quarter 2013 and down slightly from the first quarter 2013. We're very pleased that our first quarter earnings are at these levels considering the significant slowdown in mortgage banking activities. Our core earnings continue to benefit from improving net interest margin, which increased to 4.16% in the first quarter." Withers continued, "As previously announced on March 21st we completed a $12 million capital raise that has significantly increased our capital ratios and better positions us to take advantage of growth opportunities within our various markets."

Withers stated, "Non-performing loans at $11.05 million decreased $1.53 million compared to year end 2013 and $.63 million compared to the first quarter 2013. We continue to see progress in our workout plans with several borrowers and we are on pace to meet our 2014 goals for improvement in both our non-performing and criticized asset ratios." Withers continued, "On April 17, 2014, our Board of Directors declared a first quarter dividend of $0.17 per share. Based on our most recent trade price of $18.65 per share, this dividend constitutes a 3.65% yield on an annualized basis. The dividend will be paid on May 12, 2014, to shareholders of record as of April 30, 2014." 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.farmersandmerchants.biz 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. 

SOURCE: F & M Bank Corp.        

   
F & M Bank Corp.
Financial Highlights
 
    For Three Months
Ended March 31
 
INCOME STATEMENT   Unaudited
2014
    Unaudited
2013
 
Interest and Dividend Income   $ 6,290,763     $ 6,599,082  
Interest Expense     950,231       1,278,129  
  Net Interest Income     5,340,532       5,320,953  
Non-Interest Income     775,960       894,754  
Provision for Loan Losses     750,000       900,000  
Other Non-Interest Expenses     3,738,198       3,603,453  
  Income Before Income Taxes & Securities Transactions     1,628,294       1,712,254  
Securities Gains (Losses)                
Provision For Income Taxes     475,524       468,292  
Less Minority Interest income (loss)     (29,951 )     28,386  
Net Income   $ 1,182,721     $ 1,215,576  
Average Shares Outstanding     2,598,639       2,500,473  
Net Income Per Common Share     .46       .49  
Dividends Declared     .17       .17  
                 
                 
                 

BALANCE SHEET
  Unaudited
March 31, 2014
    Unaudited
March 31, 2013
 
Cash and Due From Banks   $ 7,188,824     $ 5,845,092  
Interest Bearing Bank Deposits     842,033       978,396  
Federal Funds Sold     27,988,000       27,244,000  
Loans Held for Sale     5,577,806       21,130,211  
Loans Held for Investment     486,327,054       465,742,100  
  Less Allowance for Loan Losses     (8,009,279 )     (8,259,185 )
  Net Loans Held for Investment     478,317,775       457,482,915  
Securities     19,391,046       19,090,090  
Other Assets     33,838,105       34,723,397  
  Total Assets   $ 573,143,589     $ 566,494,101  
                 
Deposits   $ 471,543,989     $ 458,979,703  
Short Term Debt     3,696,874       3,172,055  
Long Term Debt     11,500,000       32,285,714  
Subordinated Debt     10,191,000
      10,191,000
 
Other Liabilities     9,343,704       11,701,655  
  Total Liabilities     506,275,567       516,330,127  
Stockholders' Equity     66,868,022       50,163,974  
  Total Liabilities and Stockholders' Equity   $ 573,143,589     $ 566,494,101  
Book Value Per Common Share   $ 20.34     $ 20.06  
                 

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