SOURCE: F & M Bank Corp.

F & M Bank Corp.

October 20, 2014 08:55 ET

F & M Bank Corp. Reports Record Earnings for 3rd Quarter and Year to Date 2014

TIMBERVILLE, VA--(Marketwired - Oct 20, 2014) - F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the third quarter and it's recently declared third quarter dividend.

                         
Selected Financial Highlights:   2014     2013  
    Q3     YTD     Q3     YTD  
Net Income (000's)   $ 1,569     $ 4,236     $ 1,183     $ 3,532  
Earnings per share   $ 0.47     $ 1.38     $ 0.47     $ 1.41  
Net Interest Margin     4.36 %     4.29 %     3.98 %     4.01 %
Allowance for loan losses     1.70 %     1.70 %     1.74 %     1.74 %
Provision for loan losses (000's)   $ 750     $ 2,250     $ 1,000     $ 3,025  
Non-Performing Loans (000's)   $ 7,053     $ 7,053     $ 12,338     $ 12,338  
Equity to Assets     11.59 %     11.59 %     9.30 %     9.30 %
Efficiency Ratio     56.14 %     57.78 %     57.72 %     56.91 %
                                 
                                 

Dean Withers, President and CEO, commented, "We're very pleased to announce both record quarterly earnings as well as record earnings through three quarters. Third quarter earnings increased 32.6% versus prior year, to $1.569 million and year to date earnings of $4.236 million increased 19.9%. The sharp increase in earnings is due primarily to a very strong net interest margin and an excellent efficiency ratio. The net interest margin improvement resulted from continued decreases in the cost of funds, reductions in low yielding fed funds and strong loan growth." Withers continued, "Loans held for investment increased $28 million year to date with most of the growth derived from our Dealer Finance Division and our Fishersville Loan Production Office."

Withers stated, "We continue our recent trend of improvement in our non-performing loans which have decreased $5.3 million (42.8%) compared to the same period in 2013 and now constitute 1.39% of loans held for investment, vs. 2.57% during the same period in 2013. We are ahead of pace to meet our 2014 goals for improvement in both our non-performing and criticized asset ratios." Withers continued, "On October 16, 2014, our Board of Directors declared a third quarter dividend of $0.17 per share. Based on our most recent trade price of $19.24 per share, this dividend constitutes a 3.53% yield on an annualized basis. The dividend will be paid on November 7, 2014, to shareholders of record as of October 31, 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.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 Nine Months
Ended September 30
 
INCOME STATEMENT   Unaudited
2014
      Unaudited
2013
 
Interest and Dividend Income   $ 19,838,232     $ 19,565,817  
Interest Expense     2,776,643       3,699,628  
  Net Interest Income     17,061,589       15,866,189  
Non-Interest Income     2,705,229       3,091,899  
Provision for Loan Losses     2,250,000       3,025,000  
Other Non-Interest Expenses     11,462,755       10,829,854  
  Income Before Income Taxes     6,054,063       5,103,234  
Provision For Income Taxes     1,844,035       1,465,467  
Less Minority Interest income (loss)     23,300       105,860  
Net Income   $ 4,236,328     $ 3,531,907  
Average Shares Outstanding     3,061,432       2,501,990  
Net Income Per Common Share     1.38       1.41  
Dividends Declared     .51       .51  
                 
                 
                 

BALANCE SHEET
  Unaudited
September 30, 2014
      Unaudited
September 30, 2013
 
Cash and Due From Banks   $ 6,155,742     $ 6,964,491  
Interest Bearing Bank Deposits     1,038,662       1,021,333  
Federal Funds Sold     16,165,000       24,464,000  
Loans Held for Sale     16,131,118       2,776,572  
Loans Held for Investment     506,845,616       479,211,895  
  Less Allowance for Loan Losses     (8,601,293 )     (8,338,981 )
  Net Loans Held for Investment     498,244,323       470,872,914  
Securities     19,298,256       16,901,937  
Other Assets     37,539,741       33,148,718  
  Total Assets   $ 594,572,842     $ 556,149,965  
                 
Deposits   $ 487,640,625     $ 461,767,657  
Short Term Debt     3,783,809       3,480,308  
Long Term Debt     15,000,000       16,678,571  
Subordinated DebtOther Liabilities     10,191,000
9,043,174
      10,191,000
12,296,555
 
  Total Liabilities     525,658,608       504,414,091  
Stockholders' Equity     68,914,234       51,735,874  
  Total Liabilities and Stockholders' Equity   $ 594,572,842     $ 556,149,965  
Book Value Per Common Share   $ 20.61     $ $20.66  
                 
                 

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