F & M Bank Corp. Announces Earnings

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ended December 31, 2019.

Selected highlights for the quarter and year to date include:

  • Net income of $1.9 million and $4.6 million, respectively;
  • Non-performing assets decreased $2.43 million during the fourth quarter and $5.43 million year to date;
  • Net interest margin 3.81% and 4.33%. respectively;
  • Total deposits increased $23.3 million and $50.4 million, respectively for the quarter and year to date.

Mark Hanna, President, commented, “We are pleased to announce fourth quarter and year-to-date earnings of $1.9 million and $4.6 million, respectively. Although these results are lower than prior year, we made great progress in positioning F&M Bank for continued success by substantially reducing our Non-performing assets and growing Core deposit relationships. It is important to note that Fourth Quarter earnings were reduced by several non-recurring items related to dealer deferred cost amortization, pension costs and severance benefits. Our margin decreased as a result of lower loan balances due primarily to sales of indirect dealer loans which occurred during the second half of the year and unrecognized dealer loan costs. Our provision for loan losses increased in 2019 due to higher levels of substandard loans and identification of problem credits. We feel the allowance for loan losses reflects the current risk in our loan portfolio. As we push into 2020, we feel that we are well positioned to leverage our surplus liquidity with organic loan growth and continued improvement in reducing our funding costs.

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.

Restatement of 2018 Financial Statements: In November 2019, as a result of the sale of a portion of the Bank’s indirect dealer loan accounts, management discovered a system input error that prevented the deferred costs associated with dealer loans originated after a certain date from amortizing properly. This error in accounting resulted in a restatement of calendar year 2018 earnings of $261,728, net of tax and a correction of $248,090, net of tax for years prior to 2018 which is reflected as a reduction to retained earnings in the restated 2018 consolidated financial statements. The 2019 earnings properly reflect the amortization, which resulted in reduction of earnings of $184,890, net of tax.

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 fourteen 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.
















  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 services 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.

























 Carrie Comer, EVP/Chief Financial Officer
540-896-8941 or ccomer@FMBankVA.com


F&M Bank Announces Officer Promotions

F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective January 24, 2020.

Bank Officer

Ann Kirtley, Elkton Branch Coordinator

Carrie Grimes, Timberville Branch Coordinator

Christy Trail, Woodstock Branch Coordinator

Emily Rhodes, Credit Analyst

Mary Pavlovskaya, Business Deposit Services Officer

Teri Hasley, Deposit Operations Manager

Assistant Vice President:

Ashley Lam, Crossroads and Grottoes Branch Manager

Jessica Fletcher, Dealer Finance Associate

John Coffman, Woodstock Branch Manager

Jordan Dean, Commercial Relationship Manager

Matt Hill, Commercial Relationship Manager

Vice President:

Calan Jansen, Infinex Financial Advisor

Matt Robinson, Infinex Financial Advisor

Sarah Prusak, Business Deposit Services Officer

Senior Vice President:

Natalie Strickler-Alt, Northern Area Market Manager

Sara Berry, Southern Area Market Manager

Paul Eberly, Agricultural & Rural Programs Leader

For more information, please contact Kelsey Dean, Marketing Specialist at (540) 217-6410, or email marketing@fmbankva.com.

F & M Bank Corp. Announces Dividend

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its recently declared third quarter dividend.

Mark Hanna, President, commented “On January 24, 2020, our Board of Directors declared a fourth quarter dividend of $0.26 per share. Based on our most recent trade price of $28.13 per share, this dividend constitutes a 3.70% yield on an annualized basis. The dividend will be paid on March 2, 2020, to shareholders of record as of February 14, 2020.

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 fourteen 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, F&M Mortgage and VSTitle, both of which are 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.

CONTACT: Carrie Comer, EVP/Chief Financial Officer
540-896-8941 or ccomer@fmbankva.com

Anne Keeler and Lindsay King Named to F&M Board

Photo of board member, Anne Keeler Lindsay King


F&M Bank is excited to announce the appointment of Anne Keeler (pictured left) to the F&M Bank Board of Directors and Lindsay King (pictured right) to the F&M Bank Harrisonburg-Rockingham Community Board.

Anne Keeler is the Vice President for Finance and Treasurer at Bridgewater College. She earned her Bachelor of Science from Virginia Tech and Master of Science in Accounting from James Madison University. Prior to her arrival at Bridgewater College, Anne was responsible for the performance of an eight-member specialty finance group in her position as agribusiness sales manager at a financial institution. Ms. Keeler is also a Director of the Rockingham Group and currently serves as the Audit Committee Chair of that board. She is a member of the Virginia Society of Certified Public Accountants.

Lindsay King is a Marketing Lecturer at James Madison University. She earned her Bachelor of Science in Finance from Virginia Tech, a Master of Business Administration from James Madison University and is currently pursuing her Ph.D. at James Madison University’s School of Strategic Leadership Studies. Professionally, Ms. King is interested in Leadership Studies including leader/employee health and well-being as related to organizational productivity.

With the appointment of Anne Keeler and Lindsay King, impressive and unique skill sets are added to the Boards. We congratulate and welcome both Anne and Lindsay to the F&M family.

Jean Estep Retires After 66 Years of Service

Please, join F&M Bank in celebrating Jean Estep on her retirement effective December 31, 2019.

Jean joined F&M Bank in 1953 as a teller and worked her way through the ranks. In 1973 she was promoted to Assistant Cashier, Assistant Vice President in 1975, Vice President in 1978, and in 2008 she transitioned into an operations role within the bank’s customer support center.

Dedicating a career to one organization in today’s business environment is a feat worth celebrating alone, but 66 years of dedicated service to the same institution is remarkable! Jean Estep set the bar extremely high for employees of F&M Bank, and she is an inspiration to all.

Congratulations, Jean, on an extraordinary career!

Pictured above, Jean Estep poses with the F&M Bank Board of Directors.

F&M Bank to Participate 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, students will visit with various bank departments; learn about the banking 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 and more!

“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 Timberville, 205 S Main Street
  • March 17th – F&M Bank Harrisonburg, 80 Cross Keys Road
  • March 19th – F&M Bank Staunton, 30 Gosnell Crossing

Sign up for the program.

For more information, please contact Kelsey Dean, Marketing Specialist, at kwdean@fmbankva.com or 540-217-6410.

Tax Season Is Also Theft Season

Tax-related identity theft occurs when someone uses your stolen personal information, including your Social Security Number, to file a tax return claiming your refund. According to the IRS, reversing the damage caused by tax related identity theft can be a frustrating and complex process for victims. In addition, scammers will use tax season as an opportunity to commit fraud, pretending to be the IRS, and asking consumers for cash, or asking consumers to convert cash to gift cards which is an easy way to transmit cash without the possibility of detection when the card is used. Protecting your identity is critical year-round but especially important during the busy tax season.

It’s important to protect yourself and prevent instances of tax related crimes. Give yourself a fighting chance and learn the best way to stay protected from the devastating effects of tax-related identity theft.

According to the Federal Trade Commission (FTC) and Internal Revenue Service (IRS), some examples of scams this tax season are:

Robocalls – Scammers use computers to dial thousands of phone numbers, pretending they’re calling from the IRS, hoping to find victims who respond to their threatening statements. These criminals claim you owe taxes and demand that you pay immediately, usually with a gift card or prepaid debit card. The IRS does not initiate contact with taxpayers via phone.

IRS Imposters – These are the scammers who send out emails, pretending they are from the IRS. The imposters may use part of your real identity to convince you that their claim is valid. They will tell you that you owe taxes and demand that you pay up or face prosecution. Or they will ask you to verify that you have paid your taxes, asking for personal information and bank account numbers to obtain data that can be used later to commit identity theft.

The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

Refund Thieves – Criminals will gather or purchase your stolen personal information, create a bogus tax return and file the return with the IRS, claiming your refund. When you then file your legitimate return by mail, the IRS will send you a notice or letter saying that more than one return was filed for you. If you try to e-file, the IRS will reject your tax return as a duplicate filing. In either case, you are left with the difficult task of convincing the IRS that it wasn’t you that filed the return and received the refund the first time.

If tax fraud or any other identity theft strikes you are not alone. F&M Bank is here to help. Identity Theft Protection services are provided free with our Cash Back and Cash Rewards checking accounts, or options are available for purchase.