Six Keys to More Successful Investing

A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful, and all investing involves risk, including the possible loss of principal, here are six basic principles that may help you invest more successfully.

Long-term compounding can help your nest egg grow

It’s the “rolling snowball” effect. Put simply, compounding pays you earnings on your reinvested earnings. The longer you leave your money at work for you, the more exciting the numbers get. For example, imagine an investment of $10,000 at an annual rate of return of 8 percent. In 20 years, assuming no withdrawals, your $10,000 investment would grow to $46,610. In 25 years, it would grow to $68,485, a 47 percent gain over the 20-year figure. After 30 years, your account would total $100,627. (Of course, this is a hypothetical example that does not reflect the performance of any specific investment.)

This simple example also assumes that no taxes are paid along the way, so all money stays invested. That would be the case in a tax-deferred individual retirement account or qualified retirement plan. The compounded earnings of deferred tax dollars are the main reason experts recommend fully funding all tax-advantaged retirement accounts and plans available to you.

While you should review your portfolio on a regular basis, the point is that money left alone in an investment offers the potential of a significant return over time. With time on your side, you don’t have to go for investment “home runs” to be successful.

 

Endure short-term pain for long-term gain

Riding out market volatility sounds simple, doesn’t it? But what if you’ve invested $10,000 in the stock market and the price of the stock drops like a stone one day? On paper, you’ve lost a bundle, offsetting the value of compounding you’re trying to achieve. It’s tough to stand pat.

There’s no denying it — the financial marketplace can be volatile. Still, it’s important to remember two things. First, the longer you stay with a diversified portfolio of investments, the more likely you are to reduce your risk and improve your opportunities for gain. Though past performance doesn’t guarantee future results, the long-term direction of the stock market has historically been up. Take your time horizon into account when establishing your investment game plan. For assets you’ll use soon, you may not have the time to wait out the market and should consider investments designed to protect your principal. Conversely, think long-term for goals that are many years away.

Second, during any given period of market or economic turmoil, some asset categories and some individual investments historically have been less volatile than others. Bond price swings, for example, have generally been less dramatic than stock prices. Though diversification alone cannot guarantee a profit or ensure against the possibility of loss, you can minimize your risk somewhat by diversifying your holdings among various classes of assets, as well as different types of assets within each class.

 

Spread your wealth through asset allocation

Asset allocation is the process by which you spread your dollars over several categories of investments, usually referred to as asset classes. The three most common asset classes are stocks, bonds, and cash or cash alternatives such as money market funds. You’ll also see the term “asset classes” used to refer to subcategories, such as aggressive growth stocks, long-term growth stocks, international stocks, government bonds (U.S., state, and local), high-quality corporate bonds, low-quality corporate bonds, and tax-free municipal bonds. A basic asset allocation would likely include at least stocks, bonds (or mutual funds of stocks and bonds), and cash or cash alternatives.

There are two main reasons why asset allocation is important. First, the mix of asset classes you own is a large factor — some say the biggest factor by far — in determining your overall investment portfolio performance. In other words, the basic decision about how to divide your money between stocks, bonds, and cash can be more important than your subsequent choice of specific investments.

Second, by dividing your investment dollars among asset classes that do not respond to the same market forces in the same way at the same time, you can help minimize the effects of market volatility while maximizing your chances of return in the long term. Ideally, if your investments in one class are performing poorly, assets in another class may be doing better. Any gains in the latter can help offset the losses in the former and help minimize their overall impact on your portfolio.

 

Consider your time horizon in your investment choices

In choosing an asset allocation, you’ll need to consider how quickly you might need to convert an investment into cash without loss of principal (your initial investment). Generally speaking, the sooner you’ll need your money, the wiser it is to keep it in investments whose prices remain relatively stable. You want to avoid a situation, for example, where you need to use money quickly that is tied up in an investment whose price is currently down.

Therefore, your investment choices should take into account how soon you’re planning to use your money. If you’ll need the money within the next one to three years, you may want to consider keeping it in a money market fund or other cash alternative whose aim is to protect your initial investment. Your rate of return may be lower than that possible with more volatile investments such as stocks, but you’ll breathe easier knowing that the principal you invested is relatively safe and quickly available, without concern over market conditions on a given day. Conversely, if you have a long time horizon — for example, if you’re investing for a retirement that’s many years away — you may be able to invest a greater percentage of your assets in something that might have more dramatic price changes but that might also have greater potential for long-term growth.

Note: Before investing in a mutual fund, consider its investment objectives, risks, charges, and expenses, all of which are outlined in the prospectus, available from the fund. Consider the information carefully before investing. Remember that an investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporate or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund.

 

Dollar cost averaging: investing consistently and often

Dollar cost averaging is a method of accumulating shares of an investment by purchasing a fixed dollar amount at regularly scheduled intervals over an extended time. When the price is high, your fixed-dollar investment buys less; when prices are low, the same dollar investment will buy more shares. A regular, fixed-dollar investment should result in a lower average price per share than you would get buying a fixed number of shares at each investment interval. A workplace savings plan, such as a 401(k) plan that deducts the same amount from each paycheck and invests it through the plan, is one of the most well-known examples of dollar cost averaging in action.

Remember that, just as with any investment strategy, dollar cost averaging can’t guarantee you a profit or protect you against a loss if the market is declining. To maximize the potential effects of dollar cost averaging, you should also assess your ability to keep investing even when the market is down.

An alternative to dollar cost averaging would be trying to “time the market,” to predict how the price of the shares will fluctuate in the months ahead so you can make your full investment at the absolute lowest point. However, market timing is generally unprofitable guesswork. The discipline of regular investing is a much more manageable strategy, and it has the added benefit of automating the process.

 

Buy and hold, don’t buy and forget

Unless you plan to rely on luck, your portfolio’s long-term success will depend on periodically reviewing it. Maybe economic conditions have changed the prospects for a particular investment or an entire asset class. Also, your circumstances change over time, and your asset allocation will need to reflect those changes. For example, as you get closer to retirement, you might decide to increase your allocation to less volatile investments, or those that can provide a steady stream of income.

Another reason for periodic portfolio review: your various investments will likely appreciate at different rates, which will alter your asset allocation without any action on your part. For example, if you initially decided on an 80 percent to 20 percent mix of stock investments to bond investments, you might find that after several years the total value of your portfolio has become divided 88 percent to 12 percent (conversely, if stocks haven’t done well, you might have a 70-30 ratio of stocks to bonds in this hypothetical example). You need to review your portfolio periodically to see if you need to return to your original allocation.

To rebalance your portfolio, you would buy more of the asset class that’s lower than desired, possibly using some of the proceeds of the asset class that is now larger than you intended. Or you could retain your existing allocation but shift future investments into an asset class that you want to build up over time. But if you don’t review your holdings periodically, you won’t know whether a change is needed. Many people choose a specific date each year to do an annual review.

 

Contact us today for an assessment.

 

Prepared by Broadridge Investor Communications Solutions, Inc.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

 

NOT FDIC-INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. MAY GO DOWN IN VALUE.

 

Eleven Things to Keep in Mind in a Crazy Market

Keeping your cool can be hard to do when the market goes on one of its periodic roller-coaster rides. It’s useful to have strategies in place that prepare you both financially and psychologically to handle market volatility. Here are 11 ways to help keep yourself from making hasty decisions that could have a long-term impact on your ability to achieve your financial goals.

 

  1. Have a game plan

game plan

Having predetermined guidelines that recognize the potential for turbulent times can help prevent emotion from dictating your decisions. For example, you might take a core-and-satellite approach, combining the use of buy-and-hold principles for the bulk of your portfolio with tactical investing based on a shorter-term market outlook. You also can use diversification to try to offset the risks of certain holdings with those of others. Diversification may not ensure a profit or protect against a loss, but it can help you understand and balance your risk in advance. And if you’re an active investor, a trading discipline can help you stick to a long-term strategy. For example, you might determine in advance that you will take profits when a security or index rises by a certain percentage, and buy when it has fallen by a set percentage.

 

  1. Know what you own and why you own it

When the market goes off the tracks, knowing why you originally made a specific investment can help you evaluate whether your reasons still hold, regardless of what the overall market is doing. Understanding how a specific holding fits in your portfolio also can help you consider whether a lower price might actually represent a buying opportunity.

And if you don’t understand why a security is in your portfolio, find out. That knowledge can be particularly important when the market goes south, especially if you’re considering replacing your current holding with another investment.

 

  1. Remember that everything is relative

Most of the variance in the returns of different portfolios can generally be attributed to their asset allocations. If you’ve got a well-diversified portfolio that includes multiple asset classes, it could be useful to compare its overall performance to relevant benchmarks. If you find that your investments are performing in line with those benchmarks, that realization might help you feel better about your overall strategy.

Even a diversified portfolio is no guarantee that you won’t suffer losses, of course. But diversification means that just because the S&P 500 might have dropped 10% or 20% doesn’t necessarily mean your overall portfolio is down by the same amount.

 

  1. Tell yourself that this too shall pass

The financial markets are historically cyclical. Even if you wish you had sold at what turned out to be a market peak, or regret having sat out a buying opportunity, you may well get another chance at some point. Even if you’re considering changes, a volatile market can be an inopportune time to turn your portfolio inside out. A well-thought-out asset allocation is still the basis of good investment planning.

 

  1. Be willing to learn from your mistakes

Anyone can look good during bull markets; smart investors are produced by the inevitable rough patches. Even the best investors aren’t right all the time. If an earlier choice now seems rash, sometimes the best strategy is to take a tax loss, learn from the experience, and apply the lesson to future decisions. Expert help can prepare you and your portfolio to both weather and take advantage of the market’s ups and downs. There is no assurance that working with a financial professional will improve investment results.

 

  1. Consider playing defense

 

During volatile periods in the stock market, many investors re-examine their allocation to such defensive sectors as consumer staples or utilities (though like all stocks, those sectors involve their own risks and are not necessarily immune from overall market movements). Dividends also can help cushion the impact of price swings.

 

  1. Stay on course by continuing to save

 

Even if the value of your holdings fluctuates, regularly adding to an account designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, your bottom-line number might not be quite so discouraging.

If you’re using dollar-cost averaging — investing a specific amount regularly regardless of fluctuating price levels — you may be getting a bargain by buying when prices are down. However, dollar-cost averaging can’t guarantee a profit or protect against a loss. Also consider your ability to continue purchases through market slumps; systematic investing doesn’t work if you stop when prices are down. Finally, remember that the return and principal value of your investments will fluctuate with changes in market conditions, and shares may be worth more or less than their original cost when you sell them.

 

  1. Use cash to help manage your mindset

 

Cash can be the financial equivalent of taking deep breaths to relax. It can enhance your ability to make thoughtful decisions instead of impulsive ones. If you’ve established an appropriate asset allocation, you should have resources on hand to prevent having to sell stocks to meet ordinary expenses or, if you’ve used leverage, a margin call. Having a cash cushion coupled with a disciplined investing strategy can change your perspective on market volatility. Knowing that you’re positioned to take advantage of a downturn by picking up bargains may increase your ability to be patient.

 

  1. Remember your road map

Solid asset allocation is the basis of sound investing. One of the reasons a diversified portfolio is so important is that strong performance of some investments may help offset poor performance by others. Even with an appropriate asset allocation, some parts of a portfolio may struggle at any given time. Timing the market can be challenging under the best of circumstances; wildly volatile markets can magnify the impact of making a wrong decision just as the market is about to move in an unexpected direction, either up or down. Make sure your asset allocation is appropriate before making drastic changes.

 

  1. Look in the rear-view mirror

If you’re investing long term, sometimes it helps to take a look back and see how far you’ve come. If your portfolio is down this year, it can be easy to forget any progress you may already have made over the years. Though past performance is no guarantee of future returns, of course, the stock market’s long-term direction has historically been up. With stocks, it’s important to remember that having an investing strategy is only half the battle; the other half is being able to stick to it. Even if you’re able to avoid losses by being out of the market, will you know when to get back in? If patience has helped you build a nest egg, it just might be useful now, too.

 

  1. Take it easy

 

If you feel you need to make changes in your portfolio, there are ways to do so short of a total makeover. You could test the waters by redirecting a small percentage of one asset class to another. You could put any new money into investments you feel are well-positioned for the future, but leave the rest as is. You could set a stop-loss order to prevent an investment from falling below a certain level, or have an informal threshold below which you will not allow an investment to fall before selling. Even if you need or want to adjust your portfolio during a period of turmoil, those changes can — and probably should — happen in gradual steps. Taking gradual steps is one way to spread your risk over time, as well as over a variety of asset classes.

 

Schedule a free portfolio review with our advisors.

 

Prepared by Broadridge Investor Communications Solutions, Inc.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

 

NOT FDIC-INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. MAY GO DOWN IN VALUE.

 

Handling Market Volatility

Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when your money is at stake. Though there’s no foolproof way to handle the ups and downs of the stock market, the following common-sense tips can help.

 

Don’t put your eggs all in one basket

Diversifying your investment portfolio is one of the key tools for trying to manage market volatility. Because asset classes often perform differently under different market conditions, spreading your assets across a variety of investments such as stocks, bonds, and cash alternatives has the potential to help reduce your overall risk. Ideally, a decline in one type of asset will be balanced out by a gain in another, though diversification can’t eliminate the possibility of market loss.

One way to diversify your portfolio is through asset allocation. Asset allocation involves identifying the asset classes that are appropriate for you and allocating a certain percentage of your investment dollars to each class (e.g., 70% to stocks, 20% to bonds, 10% to cash alternatives). A worksheet or an interactive tool may suggest a model or sample allocation based on your investment objectives, risk tolerance level, and investment time horizon, but that shouldn’t be a substitute for expert advice.

 

Focus on the forest, not on the trees

focus on forest

As the market goes up and down, it’s easy to become too focused on day-to-day returns. Instead, keep your eyes on your long-term investing goals and your overall portfolio. Although only you can decide how much investment risk you can handle if you still have years to invest, don’t overestimate the effect of short-term price fluctuations on your portfolio.

 

Look before you leap

When the market goes down and investment losses pile up, you may be tempted to pull out of the stock market altogether and look for less volatile investments. The modest returns that typically accompany low-risk investments may seem attractive when more risky investments are posting negative returns.

But before you leap into a different investment strategy, make sure you’re doing it for the right reasons. How you choose to invest your money should be consistent with your goals and time horizon.

For instance, putting a larger percentage of your investment dollars into vehicles that offer asset preservation and liquidity (the opportunity to easily access your funds) may be the right strategy for you if your investment goals are short term and you’ll need the money soon, or if you’re growing close to reaching a long-term goal such as retirement. But if you still have years to invest, keep in mind that stocks have historically outperformed stable-value investments over time, although past performance is no guarantee of future results. If you move most or all of your investment dollars into conservative investments, you’ve not only locked in any losses you might have, but you’ve also sacrificed the potential for higher returns. Investments seeking to achieve higher rates of return also involve a higher degree of risk.

 

 Look for the silver lining

Opportunity to buy shares

A down market, like every cloud, has a silver lining. The silver lining of a down market is the opportunity to buy shares of stock at lower prices. One of the ways you can do this is by using dollar-cost averaging. With dollar-cost averaging, you don’t try to “time the market” by buying shares at the moment when the price is lowest. In fact, you don’t worry about price at all. Instead, you invest a specific amount of money at regular intervals over time. When the price is higher, your investment dollars buy fewer shares of an investment, but when the price is lower, the same dollar amount will buy you more shares. A workplace savings plan, such as a 401(k) plan in which the same amount is deducted from each paycheck and invested through the plan, is one of the most well-known examples of dollar-cost averaging in action.

 

For example, let’s say that you decided to invest $300 each month. As the illustration shows, your regular monthly investment of $300 bought more shares when the price was low and fewer shares when the price was high:

 

Although dollar-cost averaging can’t guarantee you a profit or avoid a loss, a regular fixed dollar investment may result in a lower average price per share over time, assuming you continue to invest through all types of market conditions.

(This hypothetical example is for illustrative purposes only and does not represent the performance of any particular investment. Actual results will vary.)

 

Making dollar-cost averaging work for you

  • Get started as soon as possible. The longer you have to ride out the ups and downs of the market, the more opportunity you have to build a sizable investment account over time.
  • Stick with it. Dollar-cost averaging is a long-term investment strategy. Make sure you have the financial resources and the discipline to invest continuously through all types of market conditions, regardless of price fluctuations.
  • Take advantage of automatic deductions. Having your investment contributions deducted and invested automatically makes the process easy and convenient.

 

Don’t stick your head in the sand

check portfolio at least once a year

While focusing too much on short-term gains or losses is unwise, so is ignoring your investments. You should check your portfolio at least once a year —more frequently if the market is particularly volatile or when there have been significant changes in your life.

You may need to rebalance your portfolio to bring it back in line with your investment goals and risk tolerance. Rebalancing involves selling some investments in order to buy others. Investors should keep in mind that selling investments could result in a tax liability. Don’t hesitate to get expert help if you need it to decide which investment options are right for you.

 

Don’t count your chickens before they hatch

balance between risk and return

As the market recovers from a down cycle, elation quickly sets in. If the upswing lasts long enough, it’s easy to believe that investing in the stock market is a sure thing. But, of course, it never is. As many investors have learned the hard way, becoming overly optimistic about investing during the good times can be as detrimental as worrying too much during the bad times. The right approach in all kinds of markets is to be realistic. Have a plan, stick with it, and strike a comfortable balance between risk and return.

 

Contact us today for an assessment.

 

 

Calan Jansen

Vice President at F&M Bank
Infinex Financial Advisor with F&M Financial Services, Inc.

 

 

Prepared by Broadridge Investor Communications Solutions, Inc.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

NOT FDIC-INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. MAY GO DOWN IN VALUE.

F&M Bank Corp Announces First Quarter 2022 Earnings

F & M Bank Corp. News and Financials

TIMBERVILLE, VA—April 25, 2022—F & M Bank Corp. (OTCQX: FMBM), parent company (the Company) of Farmers & Merchants Bank today reported net income of $2.5 million for quarter ending March 31, 2022.

Mark Hanna, President, commented “First quarter of 2022 has been a strong quarter for F&M bank with net income of $2.5 million. Deposits grew this quarter another 2.96% and have been deployed into $3 million of net loan growth, excluding PPP and $58 million of new investments in bonds to capitalize on the rising rate environment.   We continue to focus strategically on improving our infrastructure and enhancing our digital experience as we expand our reach to organically acquire new banking relationships.  Our greater scale, coupled with improvements in asset quality, position F&M for continued success.”

Selected financial highlights include:

  • Net income of $2.5 million for the quarter ended March 31, 2022.
  • Total deposit increase of $32.0 million (2.96%) and $249.5 million (28.9%), respectively for the quarter and for the trailing twelve months.
  • Loans held for investment increase of $3.0 million (.46%) and $35.1 million (5.64%), respectively for the quarter and for the trailing twelve months (excluding PPP loans).
  • Nonperforming assets as a percent of total assets decreased to .39% from .45% at year end and .57% on March 31, 2021.
  • Past due loans still accruing decreased to 0.36% of loans held for investment (net of PPP) from 0.49% at year end and 0.52% on March 31, 2021.
  • Recovery of Provision for Loan Losses of $450,000 for the quarter.
  • Allowance for loan losses of 1.12% of loans held for investment, excluding PPP.

 

BALANCE SHEET

Loans

Loans held for investment; net of PPP have grown 5.64% since March 31, 2021.  The Agriculture, C&I, CRE and dealer portfolios have experienced growth throughout the quarter and year to date, while the Company has seen a reduction in consumer loans specifically in the 1-4 family residential loan area.

 

LOAN PORTFOLIO
(dollars in thousands) 3/31/2022 12/31/2021 Change 3/31/2021 Change
Commercial  $         290,452  $     286,500  $       3,952  $    267,792  $       22,660
Agriculture               82,460           81,879             581          70,556           11,904
Dealer             111,238         107,346           3,892          96,370           14,868
Consumer             169,617         173,556         (3,939)        183,046         (13,429)
Other                 3,733             5,205         (1,472)            4,608              (875)
Loans held for Investment, net of PPP  $         657,500  $     654,486  $       3,014  $    622,372  $       35,128

 

Investments

The Company has continued to leverage excess funds into the available for sale (AFS) investment portfolio in the first quarter of 2022 growing $57.9 million to $462 million.  The portfolio is a strong mix of U.S. Treasuries, Agencies, Mortgaged-backed securities, Municipals, and Corporate bonds.  The average tax equivalent yield on the portfolio is 1.54% which has equated to $1.5 million in income for the first quarter compared to $461 thousand in the same quarter last year.

 

AFS INVESTMENT PORTFOLIO
(dollars in thousands) 3/31/22 12/31/21 Change 3/31/21 Change
US Treasury  $        42,868  $        29,482  $       13,386  $        29,421  $        13,447
Agency          158,540          133,714  $       24,826            24,877  $       133,663
Mortgage-Backed Securities          197,594          183,647  $       13,947            85,406  $       112,188
Municipals            32,674            34,337  $        (1,663)            20,692  $        11,982
Corporates            30,146            22,702  $         7,444            11,307  $        18,839
Total Securities  $       461,822  $       403,882  $       57,940  $       171,703  $       290,119
 
Securities Quarterly Income  $             1,497  $             1,102  $               395  $                 461  $             1,036

 

Deposits

The Company’s deposit growth during the first quarter of 2022 has been in noninterest bearing accounts ($17.6 million) and money market accounts and savings accounts ($21.1 million) with a decline in NOW and other transactional accounts ($3.6 million) and time deposits ($3.2 million).  The Company continues to strategically focus on building primary banking relationships.

 

DEPOSIT PORFOLIO
(dollars in thousands) 3/31/22 12/31/21 CHANGE 3/31/21 CHANGE
Non Interest Bearing  $       298,676  $         280,993  $           17,683  $         252,265  $           46,411
NOW & Other Transactional           188,342             191,969               (3,627)             119,076               69,266
Money market and Savings           504,611             483,476               21,135             363,377             141,234
Certificates of deposit           120,666             123,857               (3,191)             128,034               (7,368)
Total Deposits  $    1,112,295  $      1,080,295  $           32,000  $         862,752  $         249,543

 

Asset Quality

Nonperforming loans as a percent of total assets (net of PPP) continue to decline from 0.57% on March 31, 2021 to 0.39% at March 31, 2022.  In addition, classified loans and past due loans declined from the previous twelve months from 9.69% to 6.17% and 0.52% to 0.36%, respectively (net of PPP).

 

(dollars in thousands) 3/31/2022 12/31/2021 3/31/2021
Non-performing Loans
Non-accrual loans  $           4,751  $               5,465  $             5,755
Over 90 & on Accrual                    48                       43                      28
Total Non-performing Loans  $           4,799  $               5,508  $             5,783
NPL As A % of Total Assets, net of PPP 0.39% 0.45% 0.57%
Watch Total  $         21,901  $             24,140  $           30,681
As A % Of Loans, net of PPP 3.31% 3.67% 4.88%
Substandard Total  $         18,969  $             19,713  $           30,179
As A % Of Loans, net of PPP 2.86% 2.99% 4.80%
Total Watch List  $         40,870  $             43,853  $           60,860
Total Classified As A % of Total Loans, net of PPP 6.17% 6.66% 9.69%
Past Due Loans
30-59 Days Past Due  $           2,093  $               2,751  $             2,730
60-89 Days Past Due                  273                      432                    495
90+ Days Past Due                    48                       43                      28
Total Past Due Loans  $           2,414  $               3,226  $             3,253
Deliquency %, net of PPP 0.36% 0.49% 0.52%

 

Allowance for Loan and Lease Losses

The allowance for loan losses as a percentage of loans held for investment, net of PPP has declined from 1.56% at March 31, 2021 to 1.12% at March 31, 2022.  This decline has been driven by improved asset quality in regard to non-performing, classified and past due loans.  Uncertainty in the economy related to the war in Ukraine, inflation and supply chain issues were factored into the allowance for loan losses this quarter as well as growth in the portfolio over the trailing twelve months.  The resulting reversal of provision was accretive to quarterly earnings by $450 thousand.

 

3/31/2022 12/31/2021 3/31/2021
(dollars in thousands)
Provision for Loan Losses  $     (450)  $      (590)  $     (725)
Allowance for Loan and Leases Losses  $     7,389  $      7,748  $     9,704
ALLL as a % of Loans Held for Investment, net of PPP 1.12% 1.18% 1.56%

 

INCOME STATEMENT

Net Interest Income

Net interest income reflects growth over the year ended 12/31/21 and quarter ended 3/31/21 of $177 thousand and $380 thousand, respectively.  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 while seeking opportunities to leverage the growth in liquidity into higher yielding assets.  During the quarter the Company was able to purchase bonds as the market yields climbed.  This should add to net interest income in future quarters.

 

Margin compression has reduced the net interest margin from 3.44% on March 31, 2021, to 2.82% on March 31, 2022.  To mitigate this compression, the Company has continued to invest excess funds into securities with better yields.  The Company has also slightly reduced cost of funds since March 31, 2021 to 34 basis points through maintaining deposit rates, debt reduction and growth in noninterest bearing deposits.

 

Noninterest Income

Noninterest income of $2.5 million for the quarter was slightly higher than year end 12/31/21 of $2.4 million but a decline from March 31, 2021, which was $3.4 million.   Mortgage originations have declined as rates have increased, as a result the Company is focused on expanding mortgage originators into our newer markets, continuing to utilize our title company and growing our wealth management division.

 

Noninterest expense

Focusing on infrastructure enhancements, digital processes and expanding into our newer markets has resulted in growth in noninterest expense of 11.25% in the trailing twelve months.  Some of the growth is attributed to the charitable donation of a property to the local community, disposing of non-income producing properties and eliminating outdated products.

 

Paycheck Protection Program

The Company processed 1,080 Paycheck Protection Program (“PPP”) & CARES Act loans during 2020 and 2021 totaling $87.1 million.  Fees associated with these loans are amortized over the life of the loan or recognized fully when repaid or forgiven.  The Company holds $2.1 million in PPP loans as of March 31, 2022 and recognized $169,000 in PPP fee income in the first quarter.

 

Dividends Declaration

            On April 21, 2022, our Board of Directors declared a fourth quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $30.00 per share this constitutes a 3.47% yield on an annualized basis. The dividend will be paid on May 30, 2022, to shareholders of record as of May 15, 2022.”

 

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, and Augusta Counties, Virginia and the city of Winchester, VA. 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.

 

F & M Bank Corp.

Key Statistics

2022 2021
Q1 Q4 Q3 Q2 Q1
Net Income (000’s)  $      2,528  $           1,380  $            2,337  $            3,220  $           3,801
Net Income available to Common  $      2,528  $           1,379  $            2,272  $            3,154  $           3,736
Earnings per common share – basic  $        0.74  $             0.39  $              0.71  $              0.98  $             1.17
Earnings per common share – diluted  $        0.74  $             0.40  $              0.68  $              0.93  $             1.11
Return on Average Assets 0.89% 0.46% 0.81% 1.22% 1.56%
Return on Average Equity 10.51% 5.42% 9.18% 13.06% 15.96%
Dividend Payout Ratio excluding Special Dividend 35.14% 66.67% 36.62% 26.53% 22.22%
Net Interest Margin 2.82% 2.48% 2.95% 3.13% 3.44%
Yield on Average Earning Assets 3.17% 3.15% 3.35% 3.56% 3.92%
Yield on Average Interest Bearing Liabilities 0.49% 0.96% 0.57% 0.62% 0.70%
Net Interest Spread 2.68% 2.19% 2.78% 2.94% 3.22%
Provision for Loan Losses (000’s)  $       (450)  $            (590)  $            (235)  $         (1,250)  $            (725)
Net Charge-offs  $         (92)  $                72  $                 61  $            (272)  $                45
Net Charge-offs as a % of Loans -0.01% 0.04% 0.04% -0.16% 0.03%
Non-Performing Loans (000’s)  $      4,799  $           5,508  $            5,430  $            5,532  $           5,783
Non-Performing Loans to Total Assets 0.39% 0.45% 0.46% 0.50% 0.57%
Non-Performing Assets (000’s)  $      4,799  $           5,508  $            5,430  $            5,532  $           5,783
Non-Performing Assets to Assets 0.39% 0.45% 0.46% 0.50% 0.57%
Efficiency Ratio 78.68% 82.13% 75.99% 76.07% 68.00%

 

(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 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.

         

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.

 

 

SOURCE:         F & M Bank Corp.

CONTACT:        Carrie Comer EVP/Chief Financial Officer

540-896-1705 or ccomer@fmbankva.com

 

F & M Bank Corp. Announces Record Annual Earnings For 2021

TIMBERVILLE, VA / ACCESSWIRE / January 26, 2022 / F & M Bank Corp. (OTCQX:FMBM), parent company (the Company) of Farmers & Merchants Bank today reported net income available to common shareholders of $10.5 million and diluted earnings per common share of $3.12 for the year ending December 31, 2021.

Mark Hanna, President, commented “We are pleased with December 31, 2021 year to date earnings of $10.5 million. These results represent the most profitable year in our 114-year history. Our deposit growth of 68.3% over the last two years is significantly higher than our peers and indicative of our ability to create organic growth. We continue to focus strategically on improving our infrastructure and enhancing our digital experience as we expand our reach to acquire new banking relationships. Our greater scale, coupled with improvements in asset quality, position F&M for continued success.”

Selected financial highlights include:

  • Net income of $1.3 million for the quarter ended December 31, 2021, and $10.5 million year to date.
  • Total deposit increase of $50.0 million (4.85%) and $261.7 million (31.97%), respectively for the quarter and for the year.
  • Total loan increase of $13.6 million (2.11%) and $31.9 (5.09%) million, respectively for the quarter and for the year (excluding PPP loans).
  • Nonperforming assets decreased to 0.45% of total assets at the end of the quarter from 0.68% at year end 2020.
  • Past due loans still accruing decreased to 0.48% of loans held for investment at the end of the quarter from 1.07% at year end 2020 (excluding PPP loans).
  • Recovery of Provision for Loan Losses of $590,000 for the quarter and $2,821,000 year to date.
  • Allowance for loan losses of 1.16% of loans held for investment (1.18% excluding PPP loans).

Balance Sheet

The Company has experienced significant deposit growth during the year. This growth enabled the Company to expand the investment portfolio as well as make strategic reductions in its long-term debt.

The Company’s deposit growth has continued to exceed peer performance going back to 2019. The growth has been in noninterest bearing accounts ($33.3 million), interest bearing demand ($71.6 million) and savings and money market accounts ($163 million) with a decline in time deposits ($6.2 million). The Company continues to strategically focus on building primary banking relationships.

The investment portfolio has expanded to a balance of $413.2 million at the quarter ended December 31, 2021, which reflects growth of $295.3 million since December 31, 2020. The portfolio is a strong mix of U.S. Treasuries, Agencies, Municipals, Corporate bonds and other investments. The Company recognized $525,000 in security losses in fourth quarter of 2021, as lower yielding securities were sold and replaced with higher yielding securities to position the Company for future success.

The Company prepaid several long term FHLB borrowings to leverage our liquidity and reduce our cost of funds in future periods. These borrowings were paid down $11.3 million year to date and have a remaining balance of $10 million.

Loans held for investment; net of PPP have grown 5.09% since December 31, 2020. The Agriculture, C&I, CRE and dealer portfolios have experienced growth throughout the quarter and year to date, while the Company has seen a reduction in loan balances on 1-4 family residential secured loans during this low-rate environment.

Improvements in nonperforming loans and past due loans, as well as economic stability and improved underwriting have allowed the Company to reduce the Allowance for Loan Losses from 1.64% on December 31, 2020, to 1.18% on December 31, 2021, excluding PPP loans.

These strategies have positioned F&M for future growth in our current footprint as we continue to evaluate opportunities for expansion.

Income Statement

The 2021 earnings are driven by growth in net interest income, strong non-interest income due to our subsidiary organizations, improved asset quality and fees earned under the Paycheck Protection Program.

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 while seeking opportunities to leverage the growth in liquidity into higher yielding assets.

Margin compression has reduced the net interest margin from 3.61% on December 31, 2020, to 3.00% on December 31, 2021. To mitigate this compression, the Company has decreased its cost of funds by 24 basis points through rate adjustments, debt reduction and growth in noninterest bearing deposits.

Noninterest income of $11.8 million for the year was primarily driven by mortgage originations, growth in our wealth management division, and title division. These entities have performed well and are preparing to expand into additional areas within our Company footprint in the near future.

As stated above, continued improvements in asset quality and economic conditions resulted in the ability to reduce the allowance for loan losses to 1.16% of loans held for investment (1.18% excluding PPP loans) which was accretive to income by $2.8 million year to date, and $590 thousand in the fourth quarter.

Fees recognized under the Paycheck Protection Program (see below) totaled $212,000 for the quarter and $2.10 million year to date.

This year the Company disposed of non-income producing properties creating a loss of $333,000 and renegotiated contracts with vendors resulting in one time increases in noninterest expense of $500,000 for 2021. These moves will better position the organization for the future.

Paycheck Protection Program

The Company processed 1,080 Paycheck Protection Program (“PPP”) & CARES Act loans during 2020 and 2021 totaling $87.1 million. Fees associated with these loans are amortized over the life of the loan or recognized fully when repaid or forgiven. The Company holds $7.9 million in PPP loans as of December 31, 2021 and expects to recognize approximately $225,000 in PPP fee income from these loans in 2022.

Preferred Stock Redemption

On September 1, 2021, the Company gave notice to preferred shareholders that it would redeem all Series A Preferred Stock on October 29, 2021. As a result of this announcement, 180,261 shares of the 205,327 shares of preferred stock converted to common shares and 25,066 shares were redeemed for cash.

Dividends Declaration

On January 21, 2022, our Board of Directors declared a fourth quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $31.38 per share this constitutes a 3.31% yield on an annualized basis. The dividend will be paid on March 1, 2022, to shareholders of record as of February 14, 2022.”

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, and Augusta Counties, Virginia and the city of Winchester, VA. 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
Q4 Q3 Q2 Q1 YTD YTD
Net Income (000’s)
$ 1,380 $ 2,337 $ 3,220 $ 3,801 $ 10,738 $ 8,788
Net Income available to Common
$ 1,379 $ 2,272 $ 3,154 $ 3,736 $ 10,541 $ 8,525
Earnings per common share – basic
$ 0.39 $ 0.71 $ 0.98 $ 1.17 $ 3.25 $ 2.66
Earnings per common share – diluted
$ 0.40 $ 0.68 $ 0.93 $ 1.11 $ 3.12 $ 2.56
Return on Average Assets
0.46 % 0.81 % 1.22 % 1.56 % 0.98 % 0.92 %
Return on Average Equity
5.42 % 9.18 % 13.06 % 15.96 % 10.84 % 9.46 %
Dividend Payout Ratio excluding Special Dividend
66.67 % 36.62 % 26.53 % 22.22 % 32.00 % 39.10 %
Net Interest Margin
2.48 % 2.95 % 3.13 % 3.44 % 3.00 % 3.61 %
Yield on Average Earning Assets
3.15 % 3.35 % 3.56 % 3.92 % 3.41 % 4.27 %
Yield on Average Interest Bearing Liabilities
0.96 % 0.57 % 0.62 % 0.70 % 0.60 % 0.94 %
Net Interest Spread
2.19 % 2.78 % 2.94 % 3.22 % 2.81 % 3.33 %
Provision for Loan Losses (000’s)
$ (590 ) $ (235 ) $ (1,250 ) $ (725 ) $ (2,800 ) $ 3,300
Net Charge-offs/(recoveries)
$ 72 $ 61 $ (272 ) $ 45 $ (94 ) $ 1,215
Net Charge-offs/(recoveries) as a % of Loans
0.04 % 0.04 % -0.16 % 0.03 % -0.01 % 0.18 %
Non-Performing Loans (000’s)
$ 5,508 $ 5,430 $ 5,532 $ 5,783 $ 5,508 $ 6,537
Non-Performing Loans to Total Assets
0.45 % 0.46 % 0.50 % 0.57 % 0.45 % 0.68 %
Non-Performing Assets (000’s)
$ 5,508 $ 5,430 $ 5,532 $ 5,783 $ 5,508 $ 6,537
Non-Performing Assets to Assets
0.45 % 0.46 % 0.50 % 0.57 % 0.45 % 0.68 %
Efficiency Ratio
82.13 % 75.99 % 76.07 % 68.00 % 75.44 % 67.51 %
  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 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

For Twelve Months
Ended December 31,
Unaudited 2021 Audited 2020
INCOME STATEMENT
Interest and Dividend Income
$ 35,576,485 $ 36,792,403
Interest Expense
4,301,238 5,728,482
Net Interest Income
31,275,247 31,063,921
Non-Interest Income
11,828,813 12,190,916
Provision for Loan Losses
(2,800,000 ) 3,300,000
Loss on sale of securities
524,772
Impairment of long lived assets
171,109 19,193
Other Non-Interest Expenses
33,147,451 29,938,920
Income Before Income Taxes
12,060,728 10,035,110
Provision for Income Taxes
1,323,015 1,141,742
Less Minority Interest (Income)/Loss
(105,193 )
Net Income
$ 10,737,713 $ 8,788,175
Dividend on preferred stock
196,344 262,642
Net Income available to common shareholders
$ 10,541,369 $ 8,525,533
Average Common Shares Outstanding
3,414,306 3,199,883
Net Income Per Common Share
3.09 2.66
Dividends Declared
1.04 1.04
Unaudited
December 31, 2021
Audited
December 31, 2020
BALANCE SHEET
Cash and Due from Banks
$ 8,579,007 $ 11,181,164
Interest Bearing Bank Deposits
2,874,772 1,243,519
Federal Funds Sold
76,667,000 65,983,000
Loans Held for Sale
4,886,534 58,753,055
Loans Held for Investment
662,421,694 661,328,888
Less Allowance for Loan Losses
(7,747,792 ) (10,474,960 )
Net Loans Held for Investment
654,673,903 650,853,928
Securities
413,216,778 117,897,486
Other Assets
58,443,571 61,018,331
Total Assets
$ 1,219,341,565 $ 966,930,483
Deposits
$ 1,080,294,540 $ 818,581,503
Long Term Debt
21,772,052 33,201,631
Other Liabilities
16,819,462 19,517,664
Total Liabilities
1,118,886,054 871,300,798
Preferred Stock
4,558,298
Common Equity
100,455,511 91,071,387
Stockholders’ Equity
100,455,511 95,629,685
Total Liabilities and Stockholders’ Equity
$ 1,219,341,565 $ 966,930,483
Book Value Per Common Share
$ 29.42 $ 28.43
Tangible Book Value Per Common Share
$ 29.96 $ 28.42

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/685279/F-M-Bank-Corp-Announces-Record-Annual-Earnings-For-2021

F&M Bank Welcomes Director of Digital Banking, Charles Driest, to its Growing Team

F&M Bank’s leadership team welcomes Charles Driest as Senior Vice President & Director of Digital Banking. Mr. Driest joins F&M Bank most recently from Essex Bank and brings with him over 13 years of digital banking experience.

Mr. Driest commented, “I’m excited to contribute my experience and expertise to a talented banking team; we will deliver robust digital capabilities that provide our customers with a rich customer experience however they choose to engage with F&M Bank.”

In this role, Charles will support the company’s strategic growth initiatives, technology infrastructure, and digital banking services. F&M Bank’s President and CEO, Mark Hanna commented, “We are thrilled Charles has joined the F&M Bank family as we continue to grow and develop our digital banking offerings and technology infrastructures. He brings a wealth of experience to this position and will be integral to our growth moving forward.”
Charles earned a Master’s in Business Administration with a concentration in Finance from St. John’s University, Peter J Tobin College of Business. Charles is currently entering his final year of Virginia Bankers’ School of Bank Management held in Charlottesville, VA.

About F&M Bank

F&M Bank (FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and serves the Shenandoah Valley with 13 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. F&M Bank has grown to $1.2 billion in assets and employs over 200 employees across the organization. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

###

How to Open a New Account Online

ONLINE ACCOUNT OPENING 

Open a browser and navigate to https://www.fmbankva.com/

If you are an F&M Bank customer with an online banking user ID and password, enter that information at the top right to login.

If you need to enroll in online and mobile banking, choose Enroll in Online Banking directly beneath the login portal.

Step 1 to enroll in online banking from a computer

 

 

 

 

 

 

 

Enter your User ID and password to login to online banking and open your new account.

Setup Online Banking step 2

 

 

 

 

 

 

 

 

 

Please note, for security purpose, two-factor authentication is required. A temporary passcode by text message, phone call, or by Authy app if previously installed.

Setup Online Banking step 4

 

 

 

 

 

 

 

 

 

 

 

Click once on the three dotted button at top right (…)

Choose Add an account and on the next screen, click on Open an Account.

 

Step 4 to open a new account

 

 

 

 

 

 

 

 

 

 

If you do not have an F&M Bank account, choose New Account to get started.

If you are an F&M Bank customer, choose Existing Customer to get started.

Apply Today New Account Instructions

 

 

 

 

 

 

 

 

Please note: After 15 minutes of inactivity, the process will time out for your security.

 

On the next screen, click on Personal.

Type of Account_Personal option

 

 

 

 

 

 

 

Here, you will choose your preferred banking location along with the account you would like to open: Checking, Savings, Money Market or CD. You are only a few steps away from your new account!

Getting Started Open an Account step 1

 

 

 

 

 

 

 

 

 

 

 

Be sure to click the + sign to choose your debit card option.

 

Getting started open an account step 2

 

 

 

 

 

 

On the next screens you will enter your personal information, contact details, joint account, and beneficiary status, and upload a photo of your Driver’s License or State Issued Photo ID. If you are a current F&M Bank customer, some of the information will auto-fill for your convenience.

Getting Started Open an Account step 3

 

 

 

 

 

 

 

 

Once you complete the steps listed above, you will be prompted to review disclosures, and electronically sign to approve your new account.

Getting Started Open an Account step 4

 

 

 

 

 

 

 

Within two business days, you will receive a confirmation email from F&M Bank. If no action is taken, you will receive a reminder email after ten days.

Congratulations on your new F&M Bank account! We value your business!

 

 

How to Make a Loan Payment with Online and Mobile Banking

Making your personal or auto loan payment is simple and easy with online and mobile banking from F&M Bank. If you have previously enrolled in online banking, please skip to Step 2. If you are not enrolled in online banking, please follow Step 1 to enroll.

STEP 1 – ON YOUR COMPUTER

Online Banking

Open a web browser and type accounts.fmbankva.com/enroll and enter your:

    • Social Security number
    • Account number
    • Email address
    • Phone number

STEP 1 – ON YOUR PHONE

Mobile Banking

    • Open the camera app on your phone;
    • Open your phone camera app and place over QR code below;
    • Open the link that appears on your screen;
    • Download the F&M Mobile Banking App and click “Enroll”

QR Code for quick access to enroll in F&M Bank's online banking

 

 

 

 

 

 

QR code not working for you? No problem! Simply open the App Store for iPhone or Google Play for Android and search for “F&M Mobile – VA” (image shown below) to enroll.

 Image of F&M Bank logo

 

 

 

 

 

To make your loan payment, follow these simple steps!

STEP 2: Under “Select account type,” click on “Personal”

STEP 3: Enter your Loan Account Number

STEP 4: Enter your Social Security Number and Date of Birth

STEP 5: Click “Continue” and follow the simple instructions

Once you’ve enrolled, you’ll be able to schedule your payment by clicking on “Loan Information” and then selecting “Pay from another bank.”

Check out instructions for how to make your loan payment on the F&M Bank blog:
fmbankva.com/how-to-make-a-loan-payment-online

Set up payments within F&M Online and Mobile Banking.

If you are currently enrolled in F&M Online & Mobile Banking, you can pay your loan by clicking on “Loan” and select “Pay from Another Bank” to setup your external account.

 

Types of Account Ownership

At F&M Bank, we seek to help you understand the different types of account ownership available to you. Ultimately, it is your sole responsibility to determine the full legal effect of maintaining the type of account ownership you choose. Please read below for the definitions of each account ownership option.

INDIVIDUAL ACCOUNT

An individual account is an account owned by only one person.  With the account owner dies, the ownership of the funds passes, subject to applicable law, to the account owner’s estate.  If the account, however, is designated as Payable on Death (POD), the funds will be distributed to the account’s beneficiaries.

JOINT ACCOUNTS

A joint account is owned by two or more individuals. The following applies to joint accounts:

  • RIGHTS OF SURVIVORSHIP: When one owner dies, all funds in the account will pass to the surviving owners. When there is only one surviving account owner, the account will be considered an individual account, with funds passing to the estate of the last deceased owner unless the account is designated as Payable on Death (POD).
  • ACCOUNT CONTROL: Any owner may transact business on the account without restriction by or notice to other owners. Any owner may withdraw or transfer funds, close the account, or request stop payments, for example.  F&M Bank is not required to notify any owner of another owner’s activity on the account, but all owners are entitled to information on that account activity.
  • ACCOUNT LIABILITY: If the account is overdrawn, garnished, or otherwise compromised, all owners,  regardless of who initiates or benefits from any transaction, are equally and legally responsible for account activity.
  • CHANGES IN OWNERSHIP: To keep a clear and succinct line of ownership, the removal of any living owner will require the joint account in question to be closed and reopened with a new account number under the new ownership designation.  In the event of an owner’s death, however, the surviving owner(s) may keep the same account; we recommend that they  amend the current account to remove the deceased owner’s name by providing a death certificate; the amended account contract will require the signatures of all surviving parties.

TRUST ACCOUNTS:   Trust accounts help direct and distribute your assets in the way you intend, and avoid probate upon your death.  We encourage customers to consult with their attorneys regarding the establishment and maintenance of a Trust if you feel this might be beneficial for you. Since a trust is recognized as a legal entity separate from the individual trustees, any instrument payable to the trust or to individuals designated as trustee or trust representative must be deposited into an account titled to the trust or else negotiated through special endorsement.

CUSTODIAL ACCOUNTS: Accounts held under the Uniform Transfers to Minors Act (UTMA) allow a custodian—usually a parent or legal guardian– to manage funds owned in the name and Tax Identification Number of the minor.  Although the funds belong to the minor, only the custodian has account authority until he/she opts to close the account and transfer the funds directly to the account owner. The Commonwealth of Virginia allows only two custodians per account.

REPRESENTATIVE PAYEE ACCOUNTS: A recipient of Social Security or SSI funds who is unable to handle his or her own finances may have a Representative Payee (Rep Payee) named for them by the Social Security Administration.  The recipient owns the funds but does not have transaction authority on the account; only the Rep Payee may transact business. The designated representative will be responsible for receiving and managing the funds, and is obligated to use those funds for the recipient’s care.  Only Social Security or SSI funds may be received into the account; no other funds may be comingled. Upon the death of a Rep Payee, a new Rep Payee must be designated to act on behalf of the beneficiary.  Upon death of the beneficiary the funds are payable to his or her estate, and the Rep Payee’s authority is no longer valid.  To open a Rep Payee account, we require a copy of the Social Security Administration’s letter and valid government issued ID for the Rep Payee.

ESTATE ACCOUNTS: To establish an estate account, we require the death certificate and court qualification papers naming the executor or administrator for the deceased.  The EIN for the estate can be obtained through the IRS at WWW.IRS.GOV .

ACCOUNT DESIGNATIONS

  • PAYABLE ON DEATH: Individual or joint account owners may designate beneficiaries for their accounts, with account funds Payable on Death (POD) of the last surviving owner. Any living beneficiary should prepare to provide valid government issued ID and an official copy of the owner’s death certificate.  Funds designated as POD are not included in the owner’s estate.
  • AUTHORIZED SIGNER: An Authorized Signer designated by individual or joint account owners may transact business on behalf of the owner(s) but does not own the account for his or her own personal benefit.  The account owner is ultimately responsible for the authorized signer’s account activity and may remove an authorized signer at the owner’s discretion.  The authorized signer, however, cannot affect any change in ownership of the account.  PLEASE NOTE that the authority granted by the owner(s) ceases with the death of the last owner; no transactions are authorized after the date of the owner’s death.
  • POWER OF ATTORNEY: F&M Bank recommends that anyone acting in the legal capacity of Power of Attorney (POA) or Agent-in-Fact (AIF) be represented as such in the Account Agreement. An agent or agents designated as POA by an individual or by joint account owners may transact business on behalf of the owner(s) but does not own the account for his or her own personal benefit. Any access to or control of the account will be determined by the POA document itself.  Again, the authority granted through the POA ceases with the death of the owner granting that power.

An authorized signer or POA must be identified by full regulatory compliance.

 

 

 

 

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

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 

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