SOURCE: F & M Bank Corp.

F & M Bank Corp.

July 21, 2014 10:47 ET

F & M Bank Corp. Reports Record Earnings for 2nd Quarter 2014

TIMBERVILLE, VA--(Marketwired - Jul 21, 2014) -  F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the second quarter and its recently declared second quarter dividend.

           
Selected Financial Highlights: 2014     2013  
  Q2     Q1     YTD     Q2     Q1     YTD  
Net Income (000's) $ 1,484     $ 1,183     $ 2,667     $ 1,133     $ 1,216     $ 2,349  
Earnings per share   0.45       0.46       0.91       0.45       0.49       0.94  
Net Interest Margin   4.35 %     4.16 %     4.26 %     4.04 %     3.98 %     4.03 %
Allowance for loan losses   1.61 %     1.66 %     1.61 %     1.72 %     1.77 %     1.72 %
Provision for loan losses (000's) $ 750     $ 750     $ 1,500     $ 1,125     $ 900     $ 2,025  
Non-Performing Loans (000's) $ 7,382     $ 11,058     $ 7,382     $ 13,888     $ 11,685     $ 13,888  
Equity to Assets   11.91 %     11.67 %     11.91 %     9.15 %     8.42 %     9.15 %
Efficiency Ratio   57.72 %     60.91 %     58.67 %     55.31 %     57.74 %     56.51 %
                                               

Dean Withers, President and CEO, commented, "Second quarter earnings increased 30.9% versus prior year, to $1.484 million. We are very pleased to report that this is a record for any single quarter in our history. The sharp increase is due primarily to continued growth in our net interest margin, which increased to 4.35%.The primary drivers of the improved net interest margin are a continued decrease in the cost of deposits and a reduction in low yielding federal funds deposits as a result of loan growth." Withers continued, "Loans held for investment have increased $24.5 million in the last twelve months as a result of continued strong growth in our Dealer Finance Division and our Fishersville Loan Production Office."

Withers stated, "Also contributing to our improved earnings is the decrease in the provision for loan losses as a result of improvements in non-performing loans. Non-performing loans at $7.4 million decreased $6.5 million (46.8%) compared to the same period in 2013 and $3.7 million (33.2%) compared to the first quarter 2014. We are ahead of pace to meet our 2014 goals for improvement in both our non-performing and criticized asset ratios." Withers continued, "On July 17, 2014, our Board of Directors declared a second quarter dividend of $0.17 per share. Based on our most recent trade price of $17.95 per share, this dividend constitutes a 3.79% yield on an annualized basis. The dividend will be paid on August 8, 2014, to shareholders of record as of July 29, 2014." 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.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. 

   
   
F & M Bank Corp. Financial Highlights  
    For Six Months
Ended June 30
 
INCOME STATEMENT   Unaudited 2014     Unaudited 2013  
Interest and Dividend Income   $ 12,965,371     $ 13,108,149  
Interest Expense     1,869,638       2,505,938  
  Net Interest Income     11,095,733       10,602,211  
Non-Interest Income     1,710,245       2,035,064  
Provision for Loan Losses     1,500,000       2,025,000  
Other Non-Interest Expenses     7,539,354       7,167,974  
  Income Before Income Taxes     3,766,624       3,444,301  
Provision For Income Taxes     1,117,775       1,019,616  
Less Minority Interest income (loss)     (18,092 )     75,476  
Net Income   $ 2,666,941     $ 2,349,209  
Average Shares Outstanding     2,945,363       2,501,218  
Net Income Per Common Share     .91       .94  
Dividends Declared     .34       .34  
             
             
             
BALANCE SHEET   Unaudited
June 30, 2014
    Unaudited
June 30, 2013
 
Cash and Due From Banks   $ 8,413,665     $ 5,181,365  
Interest Bearing Bank Deposits     934,913       585,325  
Federal Funds Sold     3,337,000       20,400,000  
Loans Held for Sale     13,696,850       16,741,372  
Loans Held for Investment     495,306,477       470,851,701  
  Less Allowance for Loan Losses     (7,995,149 )     (8,090,097 )
  Net Loans Held for Investment     487,311,328       462,761,604  
Securities     19,124,724       16,661,648  
Other Assets     36,624,218       34,583,784  
  Total Assets   $ 569,442,698     $ 556,915,098  
                 
Deposits   $ 472,249,851     $ 455,320,200  
Short Term Debt     3,294,870       3,012,634  
Long Term Debt     7,500,000       26,857,143  
Subordinated Debt     10,191,000       10,191,000  
Other Liabilities     8,389,514       10,573,792  
  Total Liabilities     501,625,235       505,954,769  
Stockholders' Equity     67,817,463       50,960,329  
  Total Liabilities and Stockholders' Equity   $ 569,442,698     $ 556,915,098  
Book Value Per Common Share   $ 20.62     $ 20.36  

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