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

TIMBERVILLE, VA–(Marketwired – Jul 22, 2016) – F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the second quarter ended June 30, 2016.

Selected highlights for the year include:

Net income of $4.4 million

Net interest margin of 4.39%

Net interest income increased $889 thousand

Loans held for investment increased $21.9 million

Non-performing loans have decreased $1 million

Dean Withers, President and CEO, commented, “We are pleased to announce record second quarter and year to date earnings of $2.358 million and $4.448 million. These results represent increases of 8.4% and 9.9% for the respective periods. Loan demand continues to be strong with the growth in loans held for investment totaling $21.9 million year to date. Our net interest margin at 4.39% has been stable over the last several quarters and continues to drive our extraordinary results.”

Withers continued, “Non-performing loans have decreased $1 million from year end and $1.7 million from the same period in 2015. A strong local economy and robust real estate sales have both aided the continued improvement in our non-performing loans.” Withers stated, “On July 21, 2016 our Board of Directors declared a second quarter dividend of $.20 per share to common shareholders. This is an increase of $.01 over the prior quarter and $.02 over the prior year. Based on our most recent trade price of $24.00 per share this constitutes a 3.33% yield on an annualized basis. The dividend will be paid on August 18, 2016, to shareholders of record as of August 4, 2016.” Highlights of our 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 twelve 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.

1) The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 34%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.

2) The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a large percentage of its income to expenses.

CONTACT:
Neil Hayslett
EVP/Chief Administrative Officer
540-896-8941
NHayslett@FMBankVA.com

 

F&M Bank Nationally Recognized as Top-Producing Lender

TIMBERVILLE, VA—July 22, 2016— Farmers & Merchants Bank, a locally owned independent community bank headquartered in Timberville, VA, is proud to be nationally recognized as a top-producing lender by Independent Banker.

The award winning magazine, produced by the Independent Community Bankers of America, named Farmers & Merchants Bank one of the top 50 community banks across the United States. This honor distinguishes Farmers & Merchants as a community bank with a proven record of successfully responding to the needs of its community and providing loans to individuals, families, and small businesses.

Farmers & Merchants ranked in the top 10 banks nationwide in total overall lending. A successful, community bank holding over $650 million in total assets, Farmers & Merchants ranked number 3 with 89.1% of total loans to total assets, a jump in the rankings from number 14 in 2015. Of the 50 banks holding $500 million plus in assets, Farmers & Merchants was one of only four Virginia banks awarded, and the only Virginia bank to break the top 30. This is an impressive recognition for a locally owned and operated community bank.

Farmers & Merchants Bank prides itself on strong customer service and relationships, and this award is a reflection of the service of dedicated employees and the thriving communities served by Farmers & Merchants Bank.

About F&M Bank

F&M Bank serves the Shenandoah Valley with eleven full-service branches, a network of ATMs, and a wide variety of financial services. Both individuals and businesses find the organization's local decision-making, and up-to-date technology provide the kind of responsive, knowledgeable, and reliable service that only a progressive community bank can. Farmers & Merchants Bank has grown to over $650 million in assets — celebrating its most successful year in history in 2015 — and boasts over 160 full and part-time employees. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

How To Report Lost and Stolen Cards

Customers are now able to use online banking to report debit cards as lost or stolen, or to activate new cards that are mailed to them. This feature is available in the Options tab in F&M Bank's Online Banking portal. 

To report your debit card as lost or stolen, or to activate a card, click on the ATM/Debit Card tab. A screen will appear listing the cards associated with your accounts, and will indicate the card is in one of the statuses below:

  • Active  
    • You will have the option to mark as Lost/Stolen.
       
  • In Process Card Order
    • You will have the option to mark as Activate. This means you can now activate a new card without visiting an ATM!
       
  • Mark as Lost/Stolen
    • Use this in the event that the card appears to be lost in the mail.

When you click the box that indicates Lost/Stolen, you will be directed to a confirmation page to verify that the card is to be blocked. At that point, the card will be instantly hotcarded on our card system, meaning transactions will be blocked.  Please contact the bank for a new card. New cards can either be mailed to you or instantly issued at your local branch.

*Please note that once a card is reported as Lost/Stolen the card cannot be switched back to Active if the card is found.*  

A member of our Customer Support team will monitor hotcards from Online Banking on a daily basis and will make up to three attempts to contact you by phone to determine which options for a replacement card best suits your needs (either mailed or issued at a branch). 

Customers can still use the phone hotline to report lost or stolen cards or to activate their card and can still contact any bank employee. 

We hope that you will enjoy this additional option for your convenience!

F&M Bank Breaks Ground in Fishersville

F&M Bank Plans for 4th Branch in Augusta County, VA

TIMBERVILLE, VA—July 5, 2016— Farmers & Merchants Bank, a locally owned independent community bank headquartered in Timberville, VA, is excited to announce it will soon break ground on its 13th branch in Fishersville, VA.

The ground breaking ceremony will take place on Tuesday, July 19th from 11:30 am – 12:30 pm at the intersection of Myers Corner and Route 250 in Fishersville. Myers Corner is a 139-acre mixed-use real estate development in the Fishersville area of Augusta County, Virginia. Myers Corner is located across Route 250 (Jefferson Highway) from the Woodrow Wilson Rehabilitation Center, Wilson Elementary School, Wilson Middle School, and Wilson Memorial High School.

The Greater Augusta Regional Chamber of Commerce, public officials, and F&M Bank staff and board members will be in attendance and available for comment. The public is invited to attend the event and stay for a light lunch following the ceremony. Bridgestone Construction will begin construction of the new branch mid-July.

F&M Bank currently operates bank branches in Craigsville and Staunton, a loan production office in Fishersville, and a new branch scheduled to open in Grottoes mid-July 2016. The much anticipated Fishersville branch is slated to open early 2017 with Jonathan Lindsay taking the helm as branch manager. Lindsay has been with F&M since 2015 and is currently the assistant branch manager at F&M Bank in Bridgewater.

About F&M Bank

F&M Bank serves the Shenandoah Valley with eleven full-service branches, a network of ATMs, and a wide variety of financial services. Both individuals and businesses find the organization's local decision-making, and up-to-date technology provide the kind of responsive, knowledgeable, and reliable service that only a progressive community bank can. Farmers & Merchants Bank has grown to over $650 million in assets — celebrating its most successful year in history in 2015 — and boasts over 160 full and part-time employees. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

Local Business Profile

Check out our Q&A with locally owned and operated businesses in the Valley!

We interviewed Skip Frost, Executive Agent of Integrity Insurance.

Q: When did your business open? Is it locally owned?
A: We opened in February of 2013, so we’re new, but bring over 35 years of insurance experience. We are locally owned. The business is owned by myself and two partners – Brian Showalter and Brandon Crawford. Brian and I are both from Bridgewater and Brandon is from Broadway.

Q: What types of services/products do you offer?
A: We specialize in Commercial Lines Insurance, e.g., Business owner’s policies, Commercial Property, General Liability, Worker’s Compensation, Etc.

Q: Why did you decide to open your business in the Valley?
A: We love the valley! It’s home to us and we enjoy all the valley has to offer. From a business perspective, the area has done very well in terms of business growth amidst a struggling economy. With JMU, EMU, Bridgewater College and others, there will always be a steady influx of young entrepreneurs which will continue to contribute to the economic growth of this area.

Q: Name one thing people may not know about you or your business?
A: We set ourselves apart by taking a team approach with all of our clients. Every client has the expertise of, and access to, three agents. From the quoting process through policy delivery and beyond, the Integrity Team works diligently to be sure that our clients receive the best coverage with the most affordable premiums.

Q: Just for fun, what is your favorite song?
A: Someday by Rob Thomas.

Integrity Insurance is located at 410 Neff Avenue, Suite 400, in Harrisonburg.

Find out more about this local business that serves all of Virginia by visiting their website: http://www.integritygroupva.com/ or by giving them a call: 540-433-0200.