SOURCE: F & M Bank Corp.

January 24, 2013 14:57 ET

F & M Bank Corp. Reports 4th Quarter and Full Year Financial Results

TIMBERVILLE, VA--(Marketwire - Jan 24, 2013) - F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ending December 31, 2012 and its recently declared fourth quarter dividend.

Year to date net income for 2012 totaled $4.901 million, an increase of 4.54% over 2011 earnings which totaled $4.688 million. Net income for the fourth quarter of 2012 totaled $1.244 million, compared to $1.433 million of earnings for the same period in 2011.

                         
Selected Financial Highlights:                        
    2012 YTD     2011 YTD     2012 Q4     2011 Q4  
Net Income (000's)   $ 4,901     $ 4,688     $ 1,244     $ 1,433  
Earnings per share     1.96       1.91       0.49       0.57  
Net Interest Margin     3.95 %     3.87 %     4.03 %     3.98 %
Allowance for loan losses     1.75 %     1.54 %     1.75 %     1.54 %
Provision for loan losses (000's)   $ 4,200     $ 4,000     $ 1,500     $ 900  
Non-Performing Loans (000's)   $ 13,386     $ 14,776     $ 13,386     $ 14,776  
Equity to Assets     8.27 %     8.15 %     8.27 %     8.15 %
Efficiency Ratio     54.03 %     55.43 %     50.82 %     53.40 %
                                 

Dean Withers, President and CEO, commented, "This is our third consecutive year of earnings improvement and, for the first time since 2005, we have achieved record earnings on a nominal basis. While we are pleased with these results, this level of earnings does not reflect our pre-recession performance relative to traditional measures of Return on Assets and Return on Equity." Withers continued, "We are cautiously optimistic that 2013 will result in the further, slow progress in reducing non-performing loans. As I stated in our last quarterly earnings announcement, we are seeing signs of modest improvement in both the local housing and commercial real estate markets. However, we still believe at this time that it is important to build our reserves, as there are still some borrowers that are struggling to recover from the lingering effects of the recession."

Withers stated, "Economic activity in our markets appears to be picking up, as we've seen an improvement in recent loan demand. This improved demand crosses multiple business lines, as we are seeing good growth in our Dealer Finance Division, strong interest in our new Fishersville Loan Production Office and improved loan demand in our established markets. On January 17, 2013, our Board of Directors declared a fourth quarter dividend of $0.17 per share. This is an increase of $.01 per share, compared to the prior year and prior quarter. Based on our most recent trade price of $16 per share, this dividend constitutes a 4.25% yield on an annualized basis. The dividend will be paid on February 8, 2013, to shareholders of record as of January 29, 2013." 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 Twelve Months
Ended December 31
 
INCOME STATEMENT   Unaudited
2012
    Audited
2011
 
Interest and Dividend Income   $ 27,224,539     $ 27,680,179  
Interest Expense     6,294,071       7,718,651  
  Net Interest Income     20,930,468       19,961,528  
Non-Interest Income     3,704,153       3,178,195  
Provision for Loan Losses     4,200,000       4,000,000  
Other Non-Interest Expenses     13,361,377       12,891,818  
  Income Before Income Taxes & Securities Transactions     7,073,244       6,247,905  
Securities Gains (Losses)             1,024,539  
Provision For Income Taxes     2,026,193       2,522,728  
Less Minority Interest     145,967       61,525  
Net Income   $ 4,901,084     $ 4,688,191  
Average Shares Outstanding     2,496,300       2,449,864  
Net Income Per Common Share     1.96       1.91  
Dividends Declared     .64       .60  
                 
                 
                 
BALANCE SHEET   Unaudited
December 31, 2012
    Audited
December 31, 2011
 
Cash and Due From Banks   $ 7,960,633     $ 6,813,243  
Interest Bearing Bank Deposits     1,283,581       1,187,996  
Federal Funds Sold             2,180,601  
Loans Held for Sale     77,206,517       60,542,812  
Loans Held for Investment     465,819,073       451,570,491  
  Less Allowance for Loan Losses     (8,154,074 )     (6,936,904 )
  Net Loans Held for Investment     457,664,999       444,633,587  
Securities     18,807,173       22,107,621  
Other Assets     33,981,232       29,268,015  
  Total Assets   $ 596,904,135     $ 566,773,875  
                 
Deposits   $ 453,795,539     $ 435,946,623  
Short Term Debt     34,597,352       18,538,963  
Long Term Debt     37,714,286       47,107,143  
Subordinated Debt     10,191,000       10,191,000  
Other Liabilities     11,221,998       8,770,427  
  Total Liabilities     547,520,175       520,554,156  
Stockholders' Equity     49,383,960       46,179,719  
  Total Liabilities and Stockholders' Equity   $ 596,904,135     $ 566,733,875  
Book Value Per Common Share   $ 19.76     $ 18.53  
                 
                 
                 

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