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Cash Flow, Debt, & Refinancing for Virginia Small Business Owners

September 30, 2021/in Bank Products and Services

Are you wondering if you should refinance a small business loan? Many businesses experienced the unexpected last year, and now it’s time to get back on track or strengthen your existing operation. Small business debt consolidation or refinancing could be an important part of your strategy this year. In this article, we’ll explain how to refinance business debt, cover the pros and cons, and show you how to get started. If you have any questions, call us at (540) 896-8941.

What is Debt Refinancing?

When you refinance debt, you take out a new loan (usually with better terms and/or interest rate) and use it to pay off the old loan. The main benefits of refinancing include saving money on interest, reducing your monthly payment amount, and/or changing the loan term.

When it comes to business debt, consolidating your existing loan(s) with a lower-interest commercial loan can boost your cash flow by lowering your monthly payment and shortening your repayment period.

What to consider before refinancing small business debt

There’s more than one reason to consider refinancing your small business loan(s). Perhaps the payments you’re making on your current business loan primarily go toward interest rather than principal. Refinancing your business loan, also known as debt consolidation, can help you qualify for a longer-term loan with more affordable rates. Here are the most important factors to consider before applying:

Debt refinancing does involve paying interest on any interest already compounded in your current loan.
Does the loan you’re looking to refinance have prepayment penalties? Check the fine print first.
Have interest rates fallen since you took out your current loan? Consolidating your business debt into a lower interest loan could free up extra cash to put toward other needs and expenses.
Has your total debt level changed since the original loan was made? Business lenders will want to know the debt-service coverage ratio (DSCR) for your company. DSCR is used to calculate your business’s solvency and ability to repay your debt. So if you’ve taken on more debt recently, you may have trouble qualifying for an attractive refinance loan.

Now that you’ve considered different factors, your ultimate decision should depend on what you’re hoping to get out of your debt refinance. For example, in spite of a downside, loan consolidation may still be the right move for your business if you’re looking for a longer repayment term, lower interest rate, and/or less frequent payments.

5 Questions to ask your business lender about debt refinancing

When pursuing any kind of business loan, including debt refinancing, don’t be afraid to ask questions. Your business lender is here to help you review all business loan options and find the best solution to meet your needs. Here are some of the things you may have questions about:

How long will my new loan term be?
What are the closing fees?
Will the loan have a fixed or variable interest rate?
Is there a prepayment penalty?
If I don’t qualify for debt refinancing now, what can I do to improve my application next time?

Debt Consolidation vs. Refinancing

While debt consolidation and debt refinancing can be used interchangeably, there are some differences between the two. Here’s what you need to know:

Debt consolidation is a type of debt refinancing.
The purpose of debt consolidation is to take several different loans or credit card balances and pay them all off with one new loan.
Debt refinancing generally takes one loan and replaces it with a new one to achieve a better interest rate and loan terms.
The process of applying for debt consolidation or refinancing is the same. You’ll need to provide basic information about your business’s financial situation and credit history. You’ll also need to list the debt(s) you will be paying off with the new loan.

Pros and Cons of Debt Refinancing

As with any big financial decision, it’s important to weigh the pros and cons first.

Potential Downsides of Refinancing

Prepayment penalty: Does your current loan have a prepayment penalty? If so, how much? You may still save more in interest by refinancing, but it’s something to check out. Also, if you really need to reduce your monthly debt payment to improve your cash flow, it may still be worth paying the prepayment penalty.
Getting stuck in a debt cycle: If this isn’t your first time refinancing, you may want to take a closer look at your business’s financial situation. Will refinancing this time help you pay the debt off or are you just perpetuating a debt cycle for your business?

Benefits of Debt Refinancing

Lower your monthly payment to improve cash flow and invest in your business.
Lower your interest rate to save money and off your debt faster.
Potentially improve your credit score
Refinance into a larger loan to take “cash out” and invest in your business or meet working capital needs.

How does debt refinancing work?

To start the debt refinancing process, apply for a new business loan from your business lender. At F&M Bank, we offer a variety of business loans, including small business financing through the SBA and traditional term loans for qualified borrowers. And as a longtime community bank, we are dedicated to investing in and supporting small businesses throughout the Shenandoah Valley. Our business lenders pride themselves on building lifelong relationships with clients.

Learn more about debt refinancing from F&M Bank!

Since 1908, F&M Bank has been offering business banking services in the Shenandoah Valley and beyond. Trust the future of your business to our expert lending team. Wherever you are in the Shenandoah Valley, from Harrisonburg to Staunton, you can contact a member of our team or visit one of your local branches in Augusta, Page, Rockingham, or Shenandoah county to learn more about debt refinancing or to apply for a new business loan today.

Our friendly and experienced business lending team is ready to answer your questions and help you make the best choices for your company. Have questions? Get in touch today!

F&M Bank Participates in United Way’s Day of Action

September 24, 2021/in In the Community

By JILLIAN LYNCH Daily News-Record

For nonprofits, anything that can save money to channel it more effectively toward the cause is a go.

Small improvements, like painting a wall in the office, landscaping or donating old equipment are jobs that take up time for nonprofit workers themselves or money to hire labor to complete them, which can take away from their mission.

During United Way of Harrisonburg and Rockingham County’s annual Day of Action on Wednesday, volunteers took to local nonprofit organizations, like Big Brothers Big Sisters of Harrisonburg-Rockingham County, The Arc of Harrisonburg and Rockingham and the Boys and Girls Clubs of Harrisonburg and Rockingham County to complete acts of service for the organizations, so they can focus their resources on serving the community.

“United Way is a macro-level organization that works with a lot of community issues from a 30,000-foot view, if you will,” said Laura Toni-Holsinger, executive director of the local United Way. “During the pandemic … we’ve seen firsthand how human service organizations have had an increase in the need for their services. That sort of thing takes a toll when you’re in that for 15 months plus.”

The annual event, which has been going on for more than 45 years, is organized by United Way, whose vision is “strategically convening community partners to create measurable social change.”

“This day is a nice reminder to [the nonprofits] that there’s a lot of people in their corner … supporting them,” Toni-Holsinger said. “Even if it’s moving some furniture today or painting a bunch of walls … I think anything that we can do to spread some joy and light and encouragement is important.”

United Way changed the name of the event, formerly known as the Day of Caring, this year to better reflect its impact, according to Toni-Holsinger.

She said the day often results in a compound effect: first volunteers help improve the nonprofits, but the service opportunity also connects the volunteers with the mission behind the group they’re helping.

That often leads to greater connections between the community and nonprofits.

“We changed the name of Day of Action for people … as a call to action. So not just for people to learn and serve today but to … get involved in the community all year-round. And that’s what we’re already seeing,” Toni-Holsinger said. “[Through Day of Action] people are volunteering at a nonprofit and learning about an issue and later get involved as maybe a volunteer or a donor or a board member.”

The Day of Action, which saw over 600 volunteers in 2019, was hosted virtually this year and featured a virtual opening ceremony with guest speakers Odicci Alexander, former James Madison University softball pitcher, and Robert Anthony, an amputee, athlete and motivational speaker.

Heather Denman, executive director of The Arc of Harrisonburg and Rockingham, an organization that promotes inclusion and human rights of people with intellectual and developmental disabilities, guided a group of volunteers through a list of tasks that assisted in condensing administrative space into former programming space to cut costs as more services take place in clients’ homes and less often in the programming space.

“Most people think of United Way as a funding agency, but they do so much more,” Denman said. “[Day of Action is] a really important day to connect with volunteers from the community, have more folks learn about [the Arc’s] mission and what we do, and basically make new friends.”

Holly Thorne, director of marketing for F&M Bank, came along with a team of co-workers to volunteer at the Big Brothers Big Sisters office, painting and refurbishing the newly christened conference room. Thorne said she’s worked with F&M Bank in Harrisonburg for nine years and has been involved with United Way’s day of service each year.

“There’s so much need in the community,” Thorne said. “And that’s one thing about [F&M Bank] — it’s a community bank so it’s part of our big focus: helping where we can, when we can. Our team is really committed to doing this sort of thing and volunteering on boards, and being members of civic organizations is very important to us.”

This year, the day also included virtual workshops with topics including “What the Heck is Happening in Our Community for Affordable Housing?” hosted by Our Community Place, “Value of a School Garden Program,” hosted by James Madison University, and a presentation by the Valley Program for Aging Services on being a part of the “Dementia Friends” program.

More service projects were planned for the day, but outdoor projects were rescheduled for later due to the rain.

Lindsey Douglas, executive director of Big Brothers Big Sisters of Harrisonburg-Rockingham County, said the Day of Action provides much value to the nonprofits.

“It is always helpful,” Douglas said. “When you’re a nonprofit, you’re trying to make the most of every dollar and really put it back into the community and for us, put it back into the impact of one-to-one mentoring. And so when staff or paid helpers don’t have to do jobs like painting or organizing, then they can put more of their energy towards actually implementing services. It helps every dollar donated to the organization go further.”

The Day of Action also kicks off United Way’s annual fundraising effort.

Toni-Holsinger said money donated goes to United Way’s work to support the ALICE population in Harrisonburg — people who are working, but struggling to make ends meet — and to the nonprofit’s mission of connecting community groups in meaningful ways.

Courtesy of Daily News Record

Benefits of Banking Local for Small Businesses in the Shenandoah Valley

September 14, 2021/in Bank Products and Services

Small business owners encounter many challenges in running a local business—banking shouldn’t be one of them. If you’re looking for the best bank for small business, look no further than Main Street. Your local bank offers the same products and services as the bigger banks, but with more flexibility in making lending decisions and saving you money on interest and fees. As reported by a 2020 Community Banking Study from the FDIC:

“Community banks provide their local communities with valuable products and services, including offering various loan products to business owners and developers, small businesses, and farms … Community banks also continue to meet the credit needs of less economically vibrant areas, such as rural counties experiencing population outflows.”

So, whether you are a relatively new small business owner looking to build a banking relationship, or you’re not satisfied with your current lender and looking for better rates/terms, keep reading to learn all the benefits of banking locally for small businesses in the Shenandoah Valley.

Personalized Banking Experience

One of the biggest decisions you can make is how to choose a bank for your business. When you choose a local bank like F&M for your business banking needs, you get more than a banker or lender. Instead, consider us the newest member of your team. We build relationships with our business clients to support your needs and growth throughout the life of your business.

So, what does a personalized banking experience look like?

Anticipating your individual needs
Customizing loans and other services to meet your needs
Providing information and advice to support your business goals
Making ourselves available when you have a question

With personalized service, you are never just another account number. It saves you time to work with a local bank that knows your community and your business’s place in it. By anticipating your individual needs, we can make recommendations before you even realize it’s time to take the next step. Take it from Barren Ridge Vineyards in Fishersville, Augusta County:

“We have found F&M Bank to be everything a local bank should be: a bank that heard our story and believed in and supported our vision.”

Plus, we care about the same things you do. From volunteering with local charities to cheering for our kids at local sporting events, don’t be surprised if you run into your local business banker outside of the bank!

Customized Financing with Competitive Rates

When it comes to lending options for small business, local banks represent more than their share of the market:

“Community banks represent 15 percent of the industry’s total loans but 30 percent of its CRE loans, 36 percent of small business loans, and 70 percent of agricultural loans,” according to the same FDIC study. This shows that while local banks may have a relatively small footprint, they are the lender of choice for many small businesses and farmers. Let’s take a closer look at the reasons why:

Local banks often have more flexibility. With lending decisions made locally, there is more flexibility to lend to small businesses and customize financing.
Community banks offer lower fees and interest rates. In part because they are locally owned, local banks are able to help businesses save money on loan rates and fees for other business bank accounts and services. Every dollar saved makes a difference to a small business.
You don’t have to give up convenience. Local banks tend to offer the same perks and services as bigger banks such as online and mobile banking, remote check capture, credit card processing, and more.
We understand local needs and concerns. Community banks are part of the local economy, which thrives when local businesses are thriving. That’s why we are often able to approve small business loans that would likely be rejected by bigger banks.

As you can see, it pays to build a relationship with your local banker. When you need financing, we will make every effort to provide you with affordable loan terms and rates.

Community Focused, Just Like You!

If you’re still wondering, should I bank locally for my small business lending needs, keep in mind that the money you put into your local bank through deposits and interest paid on loans gets reinvested in your community through other loans and donations to nonprofits.

“F&M Bank is an exemplary model of what it means to be a community bank. Their support and involvement with local business and nonprofits is unparalleled, and we are proud to partner with them,” writes Kristi Williams, President & CEO United Way of Staunton, Augusta Co. & Waynesboro (SAW)

Local banks support the community in many ways, such as sponsoring local sports teams, financing construction in the community, and helping small businesses get on their feet and grow. So, when you choose a local bank for your business banking and lending needs, you are also reinvesting in the community. Larger banks often lack those social ties and interconnected relationships with the local economy and community.

Partner with F&M Bank for your business banking needs!

Are you looking for the best business lender in the Shenandoah Valley? For the past century, F&M Bank has helped local businesses like yours grow and thrive. Whether you’re expanding, remodeling, or making a business move, we tailor your loan to meet your needs. Our team walks you through the process and guides your experience with the personable attention your business deserves.

To get started, visit or call one of our convenient locations across Augusta, Rockingham, Shenandoah, and Frederick counties.

Protect Your Business from Check Fraud with Positive Pay from F&M Bank

September 2, 2021/in Bank Products and Services, Personal Finance

More and more people are falling victim to financial fraud and check fraud can affect your small business as well. While many business owners have simply stopped using checks, many of those same customers continue to use checks to pay their business expenses.

So how do you protect yourself and your business from fraudulent checks? If ceasing to use or accept checks in your business is not an option, there are other ways to prevent check fraud from impacting your business.

One way is to add Positive Pay to protect your commercial checking account.

→ Positive Pay matches the account number, check number, issue date, payee and dollar amount of each check presented for payment against a list of checks previously authorized and issued by your company.

→ Each time a check or series of checks are issued, a file of those checks containing the check number, issue date, payee and dollar amount is uploaded into online banking by your company. If a potential fraud occurs, you will receive an alert in online banking and be prompted to approve or reject the payment

→ Ways to reduce false positives and therefore work load of company employees:

Upload files of issued checks as they are dispersed. Any check not uploaded to the system presented for payment will reject;
Follow font best practices and guidelines (as shared by F&M Bank)

Interested in learning more? You have options!

→ Contact your local banker

→ Reach out to us online

Use the Support feature when you are logged into online or mobile banking to start a conversation.

F&M Bank Corp. Announces Appointment of Three Board Members

September 2, 2021/in In the Community, Press Releases

Timberville, VA (September 2, 2021) – F&M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces the appointment of three new corporate members as of the July 2021 meeting of the board of directors. The new members are Daphyne Saunders Thomas with James Madison University; John Willingham with Stoneridge Companies; and Hannah Hutman with Hoover Penrod, PLC.

“Our Board of Directors is comprised of a dedicated team of community leaders committed to providing strength, stability and longevity to the businesses and communities of the Shenandoah Valley,” said Mark Hanna, President and CEO of F&M Bank Corp. “We are excited to channel Hannah, Daphyne and John’s talent, expertise and energy into furthering our mission and vision.”

Daphyne Saunders Thomas served as the endowed Adolph Coors Professor of Business Administration chair until her retirement and is currently a professor emerita at James Madison University. A graduate of The Washington and Lee University School of Law, she joined the College of Business faculty in 1981, and completed her MBA at JMU. Thomas earned her undergraduate degree at Virginia Tech. She currently teaches graduate classes for James Madison University for the Executive Leadership MBA and for the Master of Accounting programs. She was a co-founder and co-director of the CyberCity Summer Program, a nationally award-winning summer technology program for middle and high school students from underrepresented populations. Thomas also previously chaired the Harrisonburg Electric Commission and is a former chair of the Harrisonburg/Rockingham Community Services Board. She currently serves on the boards of numerous non-profit organizations, including Sunnyside Communities, The Explore More Children’s Museum, The Community Services Board Halfway House, The JMU College of Visual and Performing Arts Advisory Board, The Harrisonburg/Rockingham Child Daycare Center and The Community Foundation of Harrisonburg/Rockingham Grants and Scholarship committee. Previous gubernatorial appointments include service on the Commonwealth Transportation Board, the Jamestown Yorktown Foundation, the Outstanding Virginian Day, and the Selective Service System Board. She serves on the audit and ORC committees of the F & M Corporate Board.

John Willingham, CPA, is President of Stoneridge Companies, a multi-faceted real estate development, construction and realty company based in Winchester, VA. Additionally, he is the President of Total Remodeling, a regional sunroom and outdoor living contractor. Previously, John was a business banking manager and senior commercial lender for Wells Fargo, CFO of a publicly traded community bank, and was in public accounting with Yount, Hyde and Barbour, P.C. and PricewaterhouseCoopers. He currently serves as Chairman for the Frederick Winchester Service Authority and is a member of the board for Grafton Integrated Health Network. Previously, he served 12 years as a City Councilor for the City of Winchester and was President of Council for 5 years.

Hannah Hutman is a partner at the law firm of Hoover Penrod, PLC, in Harrisonburg. Her practice includes representing creditors, trustees, and debtors in bankruptcy proceedings and insolvency related matters. Hannah has represented national and regional banks in all aspects of commercial loan transactions and collections, including restructuring obligations, asset liquidations and dispositions, and foreclosure. Hannah is a member of the panel of Chapter 7 trustees for the Western District of Virginia. In addition, Hannah provides legal counsel and services in entity formation and governance matters, financing transactions, contracts, and business asset transfers. She is a former Chair of the Board of Governors of the Bankruptcy Law Section for the Virginia State Bar. Hannah is “AV” rated by Martindale-Hubbell, has routinely been listed in Super Lawyers as a Rising Star, selected as a member of Virginia’s “Legal Elite,” and included in the American Bankruptcy Institute’s 2018 class of “40 under 40.” She received her J.D. from the Marshall Wythe School of Law at the College of William and Mary in Williamsburg, Virginia and her B.A, summa cum laude, from Columbia Union College in Takoma Park, Maryland. Hannah lives in Harrisonburg with her husband Matt and two sons.

F&M Bank Announces Third Annual Local Business You Love Contest

August 27, 2021/in In the Community, Press Releases

F&M Bank is excited to announce the return of its “Local Business You Love” contest for a third year, kicking off on September 1^st. Throughout September, F&M Bank will ask Shenandoah Valley residents to nominate their favorite local business to win $10,000. First round nominations will be accepted September 1 – 17, 2021 on the F&M Bank website.

As a community bank dedicated to the Shenandoah Valley, we consistently look for ways to support small business and Virginia-based organizations. Encouraging public participation in the contest has proven to be a fun way for our bank to boost awareness and publicity for locally owned businesses.

Mark Hanna, President and CEO, states, “In 2019, a group of F&M Bank employees created the ‘Local Business You Love’ contest to celebrate and recognize the positive impact local businesses have made in our footprint. The contest has proven to be a tremendous success evident from the community support shown by Shenandoah Valley residents. We are thrilled to host the contest again this year to help amplify the small businesses who continue to persevere through extremely difficult seasons.”

First round nominations will be accepted online through September 17th^st at 5pm. A panel of F&M Bank employees will then determine the Top 10 based on nomination relevance. On September 30^th, the Top 10 will be announced, a round of public voting will begin, and the $10,000 winner will be announced later in the fall at a reception honoring the Top 10 contestants.

More information regarding the Local Business You Love Contest, including the nomination form and a complete list of rules and regulations, can be found at www.fmbankva.com/bizyoulove.

For more information, please contact Holly Thorne, marketing@fmbankva.com.

Understanding a HELOC and How To Use It: A Guide For Shenandoah Valley Homeowners

July 29, 2021/in Bank Products and Services, Mortgage

Your home is an investment in many ways, and once you accrue equity in your home, you have it at your disposal for financial uses. If you’ve been wondering why apply for a HELOC, we’ll walk you through what a HELOC is, all the things you can use it for, and how to make the most out of your HELOC. Whether you’ve built home equity from paying down your mortgage and/or the appreciating value of your house within the market, you can benefit from your ownership of the home to finance projects and consolidate debt.

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving credit account, similar to a credit card, that provides a credit limit for a certain amount of time (the draw period). You only draw funds from the account when you need to, make payments on what you borrowed, and use the credit line again until the end of the draw period.

While a HELOC is similar to a credit card account, the primary difference between the two is what kind of interest rate you can get. Because HELOCs are secured by your home equity, you can get a much lower rate than you would with a credit card. So, financing home renovations and other large expenses with a HELOC is usually more affordable than using a credit card or personal loan. Depending on how much equity you have in your home, you may also be able to get a higher credit limit with your HELOC than with a credit card or personal loan.

The other attractive benefit of a HELOC is its flexibility. Unlike a Home Equity Loan, you don’t receive a lump sum that you have to use right away. In fact, some people use the HELOC as an emergency account. You can open it now and won’t owe anything until you first draw funds. Then you can use your HELOC as many times as you want to (up to the credit limit) through the draw period.

Using a HELOC for Home Renovation

Have you been dreaming of a brand new kitchen? Need to add an addition to your home to create office space or room for a new baby? A Home Equity Line of Credit is a convenient way to finance your home renovation.

Benefits

Lower interest rates
Option to make interest-only payments
Possible tax deduction for interest paid on HELOC if the funds are used to buy, build or substantially improve your residence. Please consult your tax advisor regarding your particular situation.
Potential ROI when you sell your home from renovations financed through your HELOC
Variety of uses such as updating your home to meet your needs, improve energy efficiency, and more.
Great option for when you’re looking to sell your home but want to increase its value first

Using a HELOC For Debt Consolidation

Are you drowning in credit card debt? Do you have so many different monthly debt payments, it’s hard to keep track?

Debt consolidation means taking out a new loan to pay off multiple debt accounts, such as credit card balances, personal loans, student loans, and more. Consolidating your debt with a HELOC could help you save money on interest and reduce the number of monthly bills you need to keep track of. And since HELOCs are so flexible, you may still have some credit left over to use on other things, or you can pay off your HELOC balance before using it again.

Using a HELOC For a Second Home or Investment Property

Whether you’re looking to purchase a vacation home or an investment property, you can use your HELOC to come up with a down payment on your second property and/or to make improvements and repairs to a second property you already own.

Financing Education Expenses

Whether you’re a parent with a child approaching college age, or an adult homeowner looking to return to school, a HELOC can also be used to pay for tuition and associated expenses with higher education, as well as private schools. Pay as you go and make interest-only payments if you need to keep your costs down while in school.

Paying Off Medical Debt

Whether you just got hit with a high medical bill, or you know an expensive surgery or treatment is coming up, you can use your HELOC as an emergency fund or to pay off medical debt. As mentioned earlier, HELOCs offer lower rates than credit cards, so it could be a more affordable way to pay your medical bills or any other large, unexpected expense that comes up. Preserve retirement savings and use your HELOC instead.

Tips For Getting The Most Out of Your HELOC

While there are many advantages to having a HELOC, you can get the most of your new Home Equity Line of Credit by following these tips:

Make on-time payments to avoid a late fee.
Pay more than just the interest due if possible.
Know when your HELOC draw period ends.
Review the terms of your HELOC and be mindful of fees.
Understand the closing costs associated with your HELOC.
Best used for smaller projects and expenses.
Try to use your HELOC, pay off what you borrow, and then use it again instead of maxing out your credit limit.

Apply for a HELOC From F&M Bank!

Looking for a HELOC lender in the Shenandoah valley? F&M Mortgage is a true local mortgage company that has served the community since 1999. Contact us to learn more or start the process of applying for a Home Equity Line of Credit. You can also apply online whenever you like, or visit your local branch office in Staunton, Harrisonburg, Winchester, or one of our locations in Augusta, Page, Rockingham, Frederick, or Shenandoah county to speak with a loan officer about your options.

F & M Bank Corp. Announces Second Quarter Earnings and Dividend

July 28, 2021/in Press Releases

TIMBERVILLE, VA / ACCESSWIRE / July 27, 2021 / F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank today reported net income available to common shareholders of $3.2 million and diluted earnings per common share of $0.93 for the quarter ending June 30, 2021.

These earnings are driven by growth in net interest income despite margin compression, growth in non-interest income due to our subsidiary organizations and improved asset quality and economic conditions.

Net interest income reflects year over year growth. As yields on earning assets continue to decline the Company has been able to support net interest income with savings in interest expense and growth in the investment portfolio.

Noninterest income remained strong in the second quarter at $6.4 million year to date this reflects an increase over June 30, 2020 which totaled $5.7million in the heart of the mortgage refinance boom. Growth is primarily driven by continued high volumes of mortgage originations, growth in our wealth management division, and title division.

Continued improvements in asset quality and economic conditions resulted in the ability to reduce the allowance for loan losses to 1.31% of loans held for investment (1.35% excluding PPP loans) which was accretive to income $1.975 million year to date or $1.250 million in the 2^nd quarter.

Paycheck Protection Program (“PPP”) & CARES Act

During 2021, the Company processed 363 Paycheck Protection Program (PPP) loans that totaled $23.8 million; PPP loans processed during 2020 and 2021 YTD totaled 1,080 loans for $87.1 million. In addition to an insignificant amount of PPP loan payoffs, the Company has processed a total of $64.4 million of forgiveness on 809 loans program to date resulting in a remaining balance of PPP loans of $22.7 million. As of June 30, 2021, one loan remains in a COVID related loan payment deferral status.

Selected financial highlights include:

Net income of $3.2 million for the quarter ended June 30, 2021 and $7.02 million year to date.
Net interest margin of 3.27%.
Total deposits increased $92.6 million and $188.7 million, respectively for the quarter and for the trailing 12 months as the bank continues to grow our composition of DDA accounts and decrease balances of Time Deposits.
Total loans increased $16.0 million and $36.7 million, respectively for the quarter and for the trailing 12 months (excluding PPP loans).
Nonperforming assets decreased to 0.50% of total assets at the end of the quarter from 0.68% on 12/31/20 and 0.57% on 6/30/20.
Negative Provision for Loan Losses of $1,250,000 for the quarter ended June 30, 2021, and $1,975,000 year to date.
Allowance for loan losses totaled 1.31% of loans held for investment (1.35% excluding PPP loans).

Mark Hanna, President, commented “ We are pleased with June 30, 2021 year to date earnings of $7.02 million. Our mortgage, title, and wealth management divisions continue to drive strong noninterest income. Loans continue to grow at a modest pace driven by Agriculture, C&I, CRE, and Dealer through a generally tepid lending environment. Our net interest margin of 3.27% reflects a historical decline but remains strong especially given the changes in our balance sheet and the current rate environment. F&M continues to gain relationships in our legacy and new markets adding to an already highly liquid balance sheet as the bank implements strategic solutions to leverage these assets.”

On July 23, 2021, our Board of Directors declared a second quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $29.00 per share this constitutes a 3.59% yield on an annualized basis. The dividend will be paid on August 30, 2021, to shareholders of record as of August 14, 2021.”

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 twelve banking offices in Rockingham, Shenandoah, and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA, a loan production office in Winchester, 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) 896-1705.

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

	2021									2020
		Q2			Q1		YTD				Q2			Q1		YTD
Net Income (000’s)	$	3,220		$	3,801		$	7,021		$	2,626		$	1,189		$	3,815
Net Income available to Common	$	3,154		$	3,736		$	6,890		$	2,560		$	1,123		$	3,683
Earnings per common share – basic	$	0.98		$	1.17		$	2.15		$	0.80		$	0.35		$	1.15
Earnings per common share – diluted	$	0.93		$	1.11		$	2.04		$	0.76		$	0.35		$	1.11
Return on Average Assets		1.22	%		1.56	%		1.39	%		1.17	%		0.58	%		1.70	%
Return on Average Equity		13.06	%		15.96	%		14.78	%		11.50	%		5.23	%		16.70	%
Dividend Payout Ratio		26.53	%		22.22	%		24.19	%		32.50	%		74.29	%		45.22	%

Net Interest Margin		3.13	%		3.44	%		3.27	%		3.55	%		3.97	%		3.75	%
Yield on Average Earning Assets		3.56	%		3.92	%		3.72	%		4.20	%		4.88	%		4.52	%
Yield on Average Interest Bearing Liabilities		0.62	%		0.70	%		0.66	%		0.92	%		1.27	%		1.09	%
Net Interest Spread		2.94	%		3.22	%		3.06	%		3.28	%		3.61	%		3.43	%

Provision for Loan Losses (000’s)	$	(1,250	)	$	(725	)	$	(1,925	)	$	800		$	1,500		$	2,300
Net Charge-offs	$	(272	)	$	45		$	(227	)	$	203		$	453		$	656
Net Charge-offs as a % of Loans		-0.16	%		0.03	%		-0.03	%		0.12	%		0.30	%		0.10	%
Non-Performing Loans (000’s)	$	5,532		$	5,783		$	5,532		$	4,465		$	4,168		$	4,465
Non-Performing Loans to Total Assets		0.50	%		0.57	%		0.50	%		0.45	%		0.50	%		0.45	%
Non-Performing Assets (000’s)	$	5,532		$	5,783		$	5,532		$	5,625		$	5,504		$	5,625
Non-Performing Assets to Assets		0.50	%		0.57	%		0.50	%		0.57	%		0.66	%		0.57	%

Efficiency Ratio		76.07	%		68.00	%		72.00	%		65.33	%		70.51	%		67.79	%

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.
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 investments portfolio and Other Real Estate Owned. 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

INCOME STATEMENT	Unaudited 2021			Audited 2020
Interest and Dividend Income	$	17,565,650		$	18,101,844
Interest Expense		2,137,253			3,090,815
Net Interest Income		15,428,397			15,011,029
Non-Interest Income		6,441,307			5,681,703
Provision for Loan Losses		(1,975,000	)		2,300,000
Impairment of long lived assets		171,109			19,193
Other Non-Interest Expenses		15,959,140			14,385,236
Income Before Income Taxes		7,714,455			3,988,303
Provision for Income Taxes		693,126			173,250
Net Income	$	7,021,329		$	3,815,053
Dividend on preferred stock		130,896			131,746
Net Income available to common shareholders	$	6,890,433		$	3,683,307
Average Common Shares Outstanding		3,205,074			3,199,183
Net Income Per Common Share Dividends Declared		2.15.52			1.15.52

BALANCE SHEET	Unaudited June 30, 2021			Audited June 30, 2020
Cash and Due from Banks	$	15,415,037		$	16,950,810
Interest Bearing Bank Deposits		3,901,543			1,199,474
Federal Funds Sold		166,698,000			68,548,000
Loans Held for Sale		8,854,680			90,403,042
Loans Held for Investment		661,125,556			661,528,802
Less Allowance for Loan Losses		(8,726,540	)		(10,033,466	)
Net Loans Held for Investment		652,399,016			651,495,336
Securities		198,814,465			93,381,484
Other Assets		59,217,012			59,623,971
Total Assets	$	1,105,299,753		$	981,602,117

Deposits	$	955,344,337		$	766,651,982
Long Term Debt		31,309,498			100,585,081
Other Liabilities		18,434,164			22,063,159
Total Liabilities		1,005,087,999			889,300,222
Preferred Stock		4,558,298			4,591,623
Common Equity		95,653,456			87,710,272
Stockholders’ Equity		100,211,754			92,301,895
Total Liabilities and Stockholders’ Equity	$	1,105,299,753		$	981,602,117
Book Value Per Common Share	$	29.80		$	27.44
Tangible Book Value Per Common Share	$	29.98		$	27.51

CONTACT:
Carrie Comer EVP/Chief Financial Officer
540-896-1705 or ccomer@fmbankva.com

SOURCE: F & M Bank Corp.

View source version on accesswire.com:
https://www.accesswire.com/657238/F-M-Bank-Corp-Announces-Second-Quarter-Earnings-and-Dividend

F&M Bank Announces New Office in Winchester

July 16, 2021/in In the Community, Press Releases

TIMBERVILLE, VA., July 16, 2021 — F&M Bank Corp. (OTCQX:FMBM), holding company for F&M Bank, announced today the opening of a new commercial office in downtown Winchester. The office is located on the third floor of the historic Odd Fellows building at 45 E. Boscawen Street. Earlier in 2021, F&M Bank welcomed a local commercial team with 141 years of combined experience to spearhead the Company’s move into the northern Shenandoah Valley market. Led by Chief Strategy Officer & Northern Market Executive, Mike Wilkerson, the team consists of commercial relationship managers John Sargent and Jon Reimer; and business relationship specialist Gail Pryde.

“We are thrilled to grow into the vibrant City of Winchester and surrounding Frederick County,” said Mike Wilkerson. The “’Top of Virginia’ is a thriving, local economy and is contiguous to F&M’s existing Shenandoah Valley footprint. We look forward to contributing to the continued success of the region and supporting the needs of the agricultural industry, commercial and small businesses, and nonprofit organizations.

Mr. Wilkerson is available for further comment. Please contact Holly Thorne at marketing@fmbankva.com.

About F&M Bank
F&M Bank Corp. (OTCQX: FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and since 1908, has served the Shenandoah Valley through its banking subsidiary F&M Bank, with full-service branches and a wide variety of financial services, including home loans through F&M Mortgage, and real estate settlement services and title insurance through VSTitle. 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 $1 billion in assets with more than 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.

Guide to Home Renovation Loans in the Shenandoah Valley

July 16, 2021/in Mortgage

Do you have a home renovation project on your to-do list?

Whether you are preparing your home for sale or looking to improve your existing space, renovation financing can help you modernize your kitchen, update your bathroom, add an extra bedroom, and more. Renovation loans can also be obtained when you purchase a home that needs fixing up.

Here in the Shenandoah Valley, local real estate markets are heating up. You may have more equity in your home than you realize. Whether you’re still in the dreaming phase or ready to hire a contractor, let’s explore what renovation loans are and the different types of financing you can obtain.

What are renovation loans?

There isn’t one type of home renovation or home improvement loan. We’ll explore the different options for renovation loans below; for now, all you need to know is that a home renovation loan is any type of financing used to renovate or improve your loan.

Why use a renovation loan?

There are many reasons to finance home renovations. Here are a few examples:

Take out a home renovation loan when you buy your house to make a fixer-upper livable.
It can be cheaper to finance an addition and other improvements to your existing home instead of covering the costs of selling it and buying a new one.
You may be able to sell your home quicker and for a higher price if you do a complete renovation first.

What can renovation loans be used for?

There is almost no limit to what your home renovation financing can be used for. From cosmetic improvements to essential repairs, here are some ideas:

Roof repairs
New siding
Updated windows
New flooring
Installing/updating heating and cooling systems
Solar panels and other energy improvements
Mold remediation/waterproofing
New kitchen or bathroom that would add value to the house
Addition to add square footage/another bedroom
Get rid of termites and other unwanted pests

Home Renovation Costs in the Shenandoah Valley

Overall, the cost of a general home renovation project in Staunton, VA ranges from a minimum of $8,249 to a max cost of $65,998 with an average of $37,123.

In Harrisonburg, the range is $8,850 to $70,807 and the average is $39,828.

Let’s look at average costs for specific types of renovation projects:

Kitchen Remodel

The average cost in Staunton is $20,686.
The average cost in Harrisonburg is $21,283.

Bathrooms

The average cost in Harrisonburg is $9,208.
The average cost in Staunton is $8,242.

Pool Installation

The average cost of inground pool installation is $8,192 in Harrisonburg and $7,242 in Staunton.

The Pros and Cons of Using Renovation Loans

As with any financing decision, there are both benefits and risks to taking on a renovation loan. Our experienced mortgage team can help you weigh the pros and cons of your own situation so you can find the best solution for your home renovation needs.

Pros

Structured payments
Begin your project right away
Home equity loans usually have fixed rates, meaning your monthly payment is likely to stay the same each month.
You can move any unused money from your loan to an interest-bearing account to earn interest.
Interest rates for HELOC are low–and usually lower than personal loans or credit cards.
The flexibility of choosing what renovation projects to use the loan for

Cons

If the market value of your home declines, you may end up owing more on your mortgage and home renovation loan than your house could theoretically sell for. However, this is less of a risk if you plan to stay in your home long-term.
A home equity loan is a secured loan against your house so if you stop making payments the bank can take possession of your house.
The process of applying for a home renovation loan can be as involved and lengthy as applying for a mortgage, depending on the type of financing you choose.

Renovation Loan Options

When it comes to renovation financing, homeowners have many options to choose from. For homeowners in the Shenandoah Valley, F&M Mortgage offers renovation loans with as little as 5% down payment. Are all loan options created equal? Here’s what you need to know:

Home Equity Lines of Credit (HELOC): For homeowners who have ongoing renovation projects. A HELOC is a revolving account that can be used, paid back, and used again. Must have enough equity in your home (the difference between its current market value and any mortgage balances you have).
Home Equity Loan: A term loan, usually with a fixed rate and predictable monthly payments. Best for homeowners who need to finance just one (bigger) renovation project and want to pay off what they owe over a long period of time. Must have enough equity in your home.
Personal Loans: A decent option for homeowners without enough equity to qualify a secured renovation loan. However, an unsecured personal loan will usually have a higher rate. Best for smaller, less expensive projects.
Credit Cards: We don’t recommend using credit cards to fund home renovation projects and purchases unless you can re-pay the amount owed within the same billing cycle.
Cash-Out Refinance: Replace your existing mortgage with a new loan and get up to 80% of your home’s market value back in cash. Recommended for home improvement projects that add value to your house, but can be used for anything, including non-renovation expenses like college tuition.

New Purchase Renovation/Improvement Loans

FHA 203k Rehab Loan: Requires only a 3.5% down payment and you can receive up to $35k for repairs and renovations. Minimum 640 credit score and available for first-time buyers or refinancing.
Fannie Mae HomeStyle Renovation Loan: A combination purchase and renovation loan that provides up to $25k for renovations and improvements.
Freddie Mac Renovation Mortgage: Provides permanent financing to replace Interim Construction Financing. Can be used for land purchases, site-built homes, and renovations/repairs to existing homes.
VA Renovation Loan: No down payment and no private mortgage insurance.

Virginia Laws and Regulations

Check with your local municipality regarding permitting requirements. Here are two statewide rules to keep in mind as well:

Must obtain a permit before starting most large home renovations, and the house must be inspected before obtaining a permit.
Must provide the state with building plans, contractor licenses, and other applicable documentation.

Apply for a home equity loan or HELOC today!

Visit a branch near you or Contact Us to get started on your Home Equity Line of Credit with Free Debit Card Today.

Current F&M Bank Customers – Send us a message in Online Banking or Mobile Banking to get started!

Archive for year: 2021