F&M Bank Corp. Announces 4th Quarter Earnings and Dividend

Company Release – 1/31/2019 10:00 AM ET

TIMBERVILLE, VA / ACCESSWIRE / January 31, 2019 / F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ending December 31, 2018.

Selected highlights for the quarter and year to date include:

  • Net income of $2.9 million and $9.1 million, respectively;
  • Non-performing assets dropped $4.65 million or 26.90% during the fourth quarter;
  • Net interest margin rose to 4.68%;
  • Loans held for investment increased $21.8 million YTD;
  • Return on Average Assets of 1.48% and 1.19%, respectively.

Mark Hanna, President, commented “We are pleased to announce fourth quarter and year to date earnings of $2.9 million and $9.1 million, respectively. The fourth quarter results represent a record for quarterly earnings which was driven by an increasing net interest margin. Our margin increased due to our asset sensitive balance sheet which resulted in a $2.6 million increase in interest income and a $935 thousand increase in interest expense. Loans held for investment increased $21.8 million or 3.54% versus the prior year. Deposit growth also accelerated in the second half of the year to $22.1 million or 3.89%.”

Hanna continued, “During the fourth quarter we made significant progress in addressing our problem assets. Previously we had announced that two large loans were placed on non-accrual during the second quarter, resulting in our significant allowance for loan loss funding in the first half of the year. During the fourth quarter we were successful in collecting on one of these loans and we recognized a partial write-down on the other based on the appraised value and continued payment delinquency. As a result of these and other collection efforts our problem assets decreased from $17.3 million to $12.6 million.” Highlights of our financial performance are included below.

Hanna stated, “On January 23rd our Board of Directors declared a fourth quarter dividend of $.25 per share to common shareholders. Based on our most recent trade price of $30.30 per share this constitutes a 3.30% yield on an annualized basis. The dividend will be paid on February 15, 2019, to shareholders of record as of February 1, 2019.”

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s thirteen banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, VBS Mortgage, LLC (DBA F&M Mortgage) and VSTitle, LLC 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.
Key Statistics

2018 2017
Net Income (000’s)
$ 2,910 $ 2,515 $ 1,687 $ 1,973 $ 9,085 $ 9,010
Net Income available to Common
$ 2,807 $ 2,412 $ 1,583 $ 1,870 $ 8,672 $ 8,595
Earnings per common share
$ 0.87 $ 0.75 $ 0.49 $ 0.57 $ 2.68 $ 2.63
Return on Average Assets
1.48 % 1.29 % 0.91 % 1.11 % 1.19 % 1.62 %
Return on Average Equity
12.51 % 10.82 % 7.38 % 8.75 % 9.89 % 13.34 %
Dividend Payout Ratio exclude Special Dividend
28.83 % 33.33 % 51.37 % 43.53 % 37.34 % 26.25 %
Dividend Payout Ratio with Special Dividend
78.35 % 44.81 %
Net Interest Margin
4.68 % 4.56 % 4.64 % 4.78 % 4.65 % 4.47 %
Yield on Average Earning Assets
5.50 % 5.30 % 5.29 % 5.38 % 5.35 % 5.05 %
Yield on Average Interest Bearing Liabilities
1.14 % 1.04 % 0.94 % 0.87 % 1.00 % 0.82 %
Net Interest Spread
4.36 % 4.26 % 4.35 % 4.51 % 4.35 % 4.23 %
Provision for Loan Losses (000’s)
$ 450 $ 450 $ 1,350 $ 680 $ 2,930 $
Net Charge-offs
$ 2,483 $ 283 $ 660 $ 309 $ 3,735 $ 1,499
Net Charge-offs as a % of Loans
1.55 % 0.18 % 0.42 % 0.20 % 0.58 % 0.24 %
Non-Performing Loans (000’s)
$ 10,205 $ 15,240 $ 14,977 $ 7,730 $ 10,205 $ 4,870
Non-Performing Loans to Total Assets
1.31 % 1.96 % 1.94 % 1.06 % 1.31 % 0.65 %
Non-Performing Assets (000’s)
$ 12,648 $ 17,303 $ 17,011 $ 9,758 $ 12,648 $ 7,004
Non-Performing Assets to Assets
1.62 % 2.23 % 2.21 % 1.34 % 1.62 % 0.94 %
Efficiency Ratio
65.06 % 66.71 % 65.80 % 66.52 % 65.50 % 63.01 %
(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 21%. 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 greater percentage of its income to expenses.

F & M Bank Corp.
Financial Highlights

For Twelve Months Ended December 31,
Interest and Dividend Income
$ 36,707,958 $ 34,095,349
Interest Expense
4,832,063 3,896,889
Net Interest Income
31,875,895 30,198,460
Gross Security Gains (Losses)
(41,914 )
Non-Interest Income
8,003,003 7,934,620
Provision for Loan Losses
Other Non-Interest Expenses
26,743,762 24,719,017
Income Before Income Taxes
10,205,136 13,372,149
Provision for Income Taxes
1,110,169 4,330,404
Less Minority Interest income
10,050 31,461
Net Income
$ 9,084,917 $ 9,010,284
Dividend on preferred stock
413,191 415,331
Net Income available to common shareholders
$ 8,671,726 $ 8,594,953
Average Common Shares Outstanding
3,238,177 3,269,713
Net Income Per Common Share
2.68 2.63
Dividends Declared
1.20 .94
December 31,
December 31,
Cash and Due from Banks
$ 9,521,741 $ 10,622,352
Interest Bearing Bank Deposits
1,390,181 1,284,351
Federal Funds Sold
Loans Held for Sale
55,909,812 39,774,515
Loans Held for Investment
638,798,885 616,974,067
Less Allowance for Loan Losses
(5,239,699 ) (6,044,365 )
Net Loans Held for Investment
633,559,186 610,929,702
21,843,918 41,242,965
Other Assets
58,028,442 49,416,495
Total Assets
$ 780,253,280 $ 753,270,380
$ 591,325,319 $ 569,176,519
Short Term Debt
40,116,000 25,296,000
Long Term Debt
40,218,073 49,732,532
Other Liabilities
16,682,537 17,790,459
Total Liabilities
688,341,929 661,995,510
Stockholders’ Equity
91,911,351 91,274,870
Total Liabilities and Stockholders’ Equity
$ 780,253,280 $ 753,270,380
Book Value Per Common Share
$ 26.84 $ 25.73
Tangible Book Value Per Common Share
$ 26.91 $ 25.64


Neil Hayslett, EVP/Chief Operating Officer

SOURCE: F&M Bank Corp

Insights from Paul Eberly – Shenandoah Valley’s Agribusiness Resource

Paul Eberly

Paul E. Eberly, Senior Vice President – Agricultural & Rural Programs Leader

80 Cross Keys Road Harrisonburg, VA 22801


NMLS# 1060550

Question: Describe your experience in the ag industry.

I received a Bachelor of Science in Animal & Poultry Science from Virginia Tech, with a Minor in Agricultural & Applied Economics. I worked for Farm Credit for nearly 14 years prior to joining the bank; 8 years as Corporate Credit Analyst completing credit analysis and developing solutions for customers in an Agribusiness Unit, 4  years as Regional Sales & Lending Manager overseeing an 8 person lending team focused on Commercial Agriculture (farming) loans in a region between Lexington, Halifax and Abingdon, VA, and 2 years as Director of Risk & Reporting where I was tasked with improving the organization’s data reporting and management, as well as portfolio risk management. I have worked with and financed all aspects of agriculture in Virginia, from tobacco to dairy, agribusiness to poultry, agritourism to beef and everything in between.


Question: How would your ag clients describe you?

Someone that always returns phone calls and is extremely accessible. A problem solver that looks at the long range goals of the farm to design financing that meets the client’s short term needs and long term goals. Knowledgeable regarding agriculture and the relationship between how production changes can impact financial results and vice versa.


Question: How would your family describe you?

Driven to succeed in whatever I do, but also outgoing, warm, and friendly.


Question: What’s most important to you professionally and/or personally?

I feel I have been blessed with a strong understanding of credit, finance, accounting etc. and how they can impact an agricultural operation. I feel it is my calling to use the abilities I have been blessed with to serve the agribusinesses and farmers in our community.  This is very important to me, and I consider myself lucky to do this in the Shenandoah Valley where I was born and raised!


Question: Do you personally volunteer or support any charitable organizations?

I am a member of Cooks Creek Presbyterian Church, volunteer at my children’s schools, and plan to join and be active in the West Rockingham Ruritans club.


Question: What is the most rewarding part of your work?

Listening to a producer to gain an understanding of their short and long term needs and goals, developing a solution that meets their wishes and seeing them succeed over the long run! The fact that I now get to do this in my own community makes it that much sweeter!


Question: From your experience working in ag over the years, what’s your top advice for seasoned ag businesses owners? How about for young farmers?

For seasoned producers:

Understand your cost of production! This is critical in every aspect of agricultural or agribusiness production. Understanding your costs on a per lb., per cwt. or other per unit basis will enable you to make crucial decisions better

When you are growing, beware of growing too fast! Often times, we have the ability to increase production / sales, but growing too fast can leave you in a working capital pinch.  As hard as it is, sometimes the best thing you can do during aggressive expansion is to take a year off and let your balance sheet catch up to your growth!

If the next generation is interested in taking over your operation, early is never early enough in terms of transition planning. Make sure that your vision for their future aligns with their interests.  Nothing is more encouraging to the next generation than including them at a younger age in the decision making process!

For young producers:

Sometimes, starting small, whether it is renting a facility or ground to operate on is a great option to get started. Do not feel like you have to be able to “buy the operation” out of the gate.

There is a multitude of assistance and information out there to help you get started – whether it is Virginia Cooperative Extension, USDA or other services, if you make the right contacts and ask the right questions, you would be surprised at who is willing to help you out!


Question: What trends are you anticipating for the ag industry in the year ahead?

I shy away from being a prognosticator on agriculture! One thing that I do believe will continue is the consolidation within agriculture.  However, I do believe that there are many smaller operations that will continue to be successful and profitable.  While larger operations can take advantage of economies of scale, smaller operations are easier to adjust and diversify.

It might not all happen in the next year, but the trend in agriculture is that farmers are going to have to become more like businessmen in the future. Every decision needs to be made after careful consideration of the impact to the bottom line, not only this year, but beyond.  Farmers in the future will have to be agronomists, bookkeepers, nutritionists and sometimes weathermen among many others to be successful!


Do you have a question for Paul?

For all things related to agricultural and rural community programs across the Shenandoah Valley, Paul is your resource. He can be reached directly at 540-217-6410 or peberly@fmbankva.com. Make sure to look for Paul as he visits our farming communities in Rockingham, Page, Augusta, and Shenandoah counties.


PRESS RELEASE: F&M Bank Welcomes Paul Eberly as Vice President, Agricultural and Rural Programs Leader

PRESS RELEASE: F&M Bank Welcomes Paul Eberly as Vice President, Agricultural and Rural Programs Leader

For Immediate Release

Photo of Paul Eberly

January 16, 2019 | Timberville, VA ‐‐ F&M Bank is pleased to welcome Paul Eberly as Vice President, Agricultural and Rural Programs Leader to its growing organization. Paul brings with him over 13 years of experience in agricultural lending, sales, and credit within the Farm Credit System. Paul will use his expertise to meet the needs of F&M Bank’s agricultural and rural customers in each of its market areas.

“I am excited about the opportunity to work with F&M Bank to be a financial partner for our farming and rural communities.  As the state’s largest agricultural production region, the Shenandoah Valley deserves a financial partner who understands their needs and has a history of over 110 years of building relationships and reinvesting in the community,” said Mr. Eberly.

Raised in Dayton with strong ties to the agricultural community, Paul now resides in Singers Glen with his wife Whitney and four children. Paul is a member of Cooks Creek Presbyterian Church and enjoys spending time with his family on their land. Please look for Paul as he visits our farming communities and seeks input into how F&M Bank can better serve their financial service needs.

About F&M Bank

F&M Bank serves the Shenandoah Valley with 13 full-service branches, a network of ATMs, and a wide variety of financial services including home loans through F&M Mortgage and titling services through VS Title. 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. F&M Bank has grown to over $770 million in assets and boasts over 175 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.


The F&M Bank Guide to the Best Nonprofit Resources in the Shenandoah Valley and Beyond!

At F&M Bank, community has always come first. We understand the valuable role nonprofits play in creating thriving towns and communities. That’s why we encourage our employees to support local causes and, as a company, F&M donates time and resources to local charities and events. We are proud to have the top spot in deposit share for Harrisonburg-Rockingham County, and we also strive to be the top bank for nonprofit organizations across the Shenandoah Valley. In that vein, we created this comprehensive directory of nonprofit resources to support your organization. From free nonprofit resources to member organizations, you’ll find it all in our best-of list. If you’re looking for a nonprofit bank account, we can help with that, too!

County-level Resources for Nonprofits

In honor of our 110th anniversary in 2018, F&M Corp. donated money to three local community foundations, each featured in this section. The donor-advised funds will provide gifts to community organizations. Other highlights from the year include our sponsorship of a Habitat for Humanity home build nine F&M employees’ involvement with United Way’s Day of Caring. We are grateful for these opportunities to bring our community closer together and strengthen the nonprofit organizations doing important work in the Shenandoah Valley.

Rockingham County

Rockingham County

  • The Great Community Give: An initiative of The Community Foundation, April 17th is “a single day of giving to partnered local nonprofits.” F&M Bank is proud to be a featured sponsor of this important event. You can sign up to be a partnered nonprofit here.

Page County

Page County

  • Luray-Page County Chamber of Commerce: Represents local businesses and non-profit organizations. Member benefits include networking events, free advertising, educational resources, and more.

Shenandoah County

Shenandoah County

  • Shenandoah County Chamber of Commerce Nonprofit Council: A supportive organization for nonprofits to help them grow and connect with the community they serve. Take advantage of the committee’s networking events, such as the Community Volunteer Fair during National Volunteer Week in April. The Nonprofit Council also offers educational presentations, resource sharing, and advocacy on behalf of Shenandoah County’s nonprofit community.
  • Shenandoah Community Foundation: The motto of this Woodstock-based organization is “Connecting people who care with causes that matter.” They support nonprofits in Shenandoah County and surrounding communities by offering grants and endowment management.

Augusta County

Augusta County

State-level Resources for Nonprofits in Virginia

VA nonprofit resources

Our statewide directory includes free online resources for nonprofits, grant resources for nonprofits, and more.

  • ConnectVA: A Richmond-based organization dedicated to a thriving nonprofit community. Use their educational resources, list your nonprofit in the directory, and connect with other nonprofit professionals in the discussion forum. There is even an “Item Exchange” page that works like a Freecycle group specifically for nonprofits. Have a piece of office equipment you no longer use? Looking for something? Trade furniture and equipment here.
  • The Planning Council: Headquartered in Norfolk, The Planning Council can help human services-focused nonprofits with data, research, and grants. Use the contact form on their Community Engagement Services page.
  • Virginia Grants: Search for a state grant that matches your field of interest. Opportunities include alcohol education and prevention, land and water conservation, wildlife protection, Civil War battlefields, community services, and more.

Bonus: National and Online Resources for Nonprofits

Other Nonprofit Resources

Stay rooted in your community while leveraging nonprofit technology resources and other resources for nonprofit organizations from across the country.

  • Google Ad Grants: Qualifying nonprofits can use $10,000 in “in-kind Google Ads advertising every month.” When people search for organizations with similar missions, they’ll see your message. This helps you grow brand awareness and increase your donations and volunteers.
  • gov Assistance Listings: Search for federal government grants and other types of financial assistance for your nonprofit.
  • GrantSelect: Calling itself “the practical online grants resource,” you can search its platform for funding related to your project or mission.
  • Volunteer Match: Consider this LinkedIn for the nonprofit world. Potential volunteers can search for causes in their area (a search for Harrisonburg, VA, for example, returns a variety of results) and connect with related organizations to volunteer and donate. Join for $9.95/month.
  • Nonprofit Answer Guide: Operated by the Center for Nonprofit Management, this treasure trove of educational resources includes every topic you need to learn about to succeed in the nonprofit world. CNM also offers consulting, training, and coaching.
  • BoardSource: This membership program offers year-round support to help you improve your board and mission. Resources include downloadable tools and templates, networking, mentoring, and articles.
  • Alliance for Nonprofit Management: A nationwide group of nonprofit consultants and other professionals. Offers a full menu of events, resources, and programs, as well as an annual conference.
  • Techsoup: Purchase the tech you need at special discounts just for nonprofits.
  • Nonprofit Library: Join for free and get access to over 50 resources written by nonprofit professionals for nonprofit organizations.

Local Nonprofit Support from F&M Bank

F&M Bank Supports Nonprofits

As a longtime community bank, F&M has always been committed to supporting local nonprofits through time, resources, and convenient banking services. With our Local Promise Deposit Account Package, you’ll have access to convenience services, technology, treasury management, merchant services, and more. We’ve also partnered with the Shenandoah Chapter of the Association of Fundraising Professionals to bring you the training resources and networking opportunities you’ve been looking for. Interested in opening a business non-profit checking account? Visit one of our convenient locations in Augusta, Page, Rockingham and Shenandoah counties or in the cities of Harrisonburg and Staunton to speak with a member of our team.

F&M Bank Participates in Scholarship Program

During March, Virginia high school seniors will have the opportunity to spend the day shadowing bankers at F&M Bank as part of Bank Day, a statewide effort sponsored by the Virginia Bankers Association (VBA) Education Foundation and the VBA Emerging Bank Leaders. The purpose of the day is to expose students to the banking industry and provide an opportunity for the students to learn about banking, financial services and the vital role F&M Bank plays in its community.

The third Tuesday in March was declared Bank Day by the Virginia General Assembly in 1991 and F&M Bank is proud to host students for this important program.  From their experience, participating students will write an essay for the chance to win a scholarship. Six regional scholarships of $2,500 each will be awarded, and from those six winners an overall statewide winner will be chosen. The statewide winner will receive an additional $5,000 scholarship – $7,500 in total. There will also be six honorable mention scholarships of $1,000 each. In all, twelve students will receive scholarships totaling $26,000.

During their visit, the students will visit various bank departments; learn about the loan process, the importance of good credit, the profile of a qualified borrower, appropriate etiquette during a job interview, how F&M Bank is involved in the community, the Federal Reserve System, payments, etc.

“Bank Day is one of the best short-term, hands-on experiences that a classroom teacher can offer their students—the opportunity to go inside the bank vault, to watch customer/bank officer interaction, to learn about the many services that banks offer, and to start the networking that often leads to part-time and summer jobs, scholarships, and a start on a career path in the financial world,” said Bruce Whitehurst, president & CEO of the Virginia Bankers Association.

F&M Bank will offer three different locations/dates for bank day shadowing*:

March 12th – F&M Bank Harrisonburg, 80 Cross Keys Road

March 14th –  F&M Bank Timberville, 205 S Main Street

March 19th – F&M Bank Staunton, 30 Gosnell Crossing

If interested in signing up for the program, click here.

For more information, or if you have any questions, please contact Kelsey Dean, Marketing Specialist, at kwdean@fmbankva.com or 540-896-1741.

*Make up dates are scheduled in the event there is inclement weather. March 19th (Harrisonburg), March 20th (Timberville), and March 21st (Staunton).

Have You Made These 5 Financial Resolutions?

By now, most people have made their resolutions for self-improvement in the new year. While the most popular resolutions tend to focus on physical health, the start of a new year is also a perfect time to prioritize your financial wellness.

Ready to get started? Read on.

5 Ways to Up Your Money Game in 2019


Make a Budget and Stick to it. Budgeting is one of most effective ways to manage your money. Creating and monitoring a budget allows you to track your expenses, adapt to changes, and achieve your financial milestones. Budgeting can also help you save for emergencies and plan for the long run – including retirement.

Use our online budget building tool to break your budget down into simple, easy steps and get started!


Build Your Emergency Savings. Unexpected expenses happen more often than we like to think. According to a 2018 Bankrate study, more than half of Americans are not financially prepared to cover the costs that come with emergencies, such as illness, job loss, or even home and auto repairs.

Get more information on the immediate steps you can take this year to start and grow your savings.


Plan for Your Retirement Now. Less than half of Americans take the steps needed to set themselves up for a secure retirement. While saving for the future is easy to put off in favor of more immediate needs, the earlier you start, the more opportunity you’ll have to grow your savings over time.

There’s no better time than now to start planning for retirement. Learn about options, like IRAs and 401(k) plans, with our free retirement education.


Get Ahead of Your Taxes. Taxes are confusing, and many people get bogged down by complex terms and lengthy paperwork. However, your taxes don’t need to be a source of anxiety. In fact, getting ahead of your taxes can reap many benefits, including lowering stress and having early access to a refund for year-long planning.

Make filing your taxes a breeze with tips from our five-minute interactive learning module.


Take Control of Your Credit. Your credit score can have significant impacts on your financial security and flexibility. Many people have never had the opportunity to learn what a credit score is, what factors impact a credit score, and what actions they can take to make sure their score is healthy.

Take a few minutes to understand the factors that impact your credit score and you’ll be well on your way to building a more secure financial future.


This article was developed as part of F&M Bank’s partnership with EVERFI, Inc.