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

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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.

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How to Open a New Account Online

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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

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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

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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

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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.

How to Protect Seniors Against Cybercrimes and Scams

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Many of the crimes that occur in real life happen on the internet too. Credit card fraud, identity theft, embezzlement, and more, all can be and are being done online. Seniors and the elderly are often targeted for these cybercrimes. They tend to be more trusting than younger people and usually have better credit, and more wealth. This makes them more attractive to scammers. Seniors are considered easy targets by criminals because they might not know how to report cybercrimes against them. In some cases, seniors can experience shame and guilt over the scam. They may also fear that their families will lose trust in their ability to continue to manage their own finances.
Cybercrimes Targeting Seniors
 Here are some common cyber scams used against senior citizens and how to avoid them:

Tech support scam: Criminals pose as technology support representatives and offer to fix non-existent computer issues. The scammers can gain remote access to victims’ devices and their stored sensitive information.

Government impersonation scam: Criminals pose as government employees and threaten to arrest or prosecute victims unless they agree to provide payments.

Financial scam: Criminals target potential victims using illegitimate credentials from legitimate services, such as reverse mortgages or credit repair.

Romance scam: Criminals pose as interested romantic partners on social media or dating websites, particularly targeting women and those who are recently widowed.

A new twist is to use the romance scam to recruit victims for other illegal activity. This could include using the victim’s bank account to launder illegally obtained money or apply for benefits in another person’s name. Institutions may become suspicious, especially if these transactions are out of character. They may close the victim’s account, or even refer the account for prosecution, putting the senior citizen at risk for legal action.
Tips to Protect Seniors Against Cybercrimes
 Here are some tips on how to protect yourself or someone you love from cybercrimes:

If you use social media, limit the amount of personal information you post and only add people that you know.

Resist the scammer’s urge for you to act quickly. Scammers are very skilled at manipulating emotions and will fabricate an emergency to persuade a victim to act without thinking.

Search for information about the proposed offer and any contact information given by the scammer. There are people and agencies online or in your community who can tell you if an individual or business is a scam. Never be afraid to ask other people for help.

Never send money or personally identifiable information to unverified people or businesses. Be suspicious about anyone who demands gift cards as payment.

Use reputable antivirus software and firewalls and make sure you regularly update them. If possible, configure your device to automatically download and install updates.

Disconnect from the internet and shut down your device if you see unusual pop-ups or get a locked screen. Pop-ups are often used by criminals to spread malicious software.

Be cautious what you download. Never open email attachments from someone you don’t know.
What to Do if You’re Targeted by a Scammer
 If you think you are being targeted by a scammer:

Never share financial account information, and do not allow anyone access to your accounts.

Monitor your accounts and credit for unusual activity, such as large sums of money that you did not deposit or loans that you did not apply for.

Contact your local law enforcement agency to file a report and notify your financial institutions.
Sources https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/
elder-fraudhttps://www.cisa.gov/publication/stopthinkconnect-older-american-resourceshttps://cybersecurityventures.com/3-cyber-fraud-tactics-targeting-seniors-and-why-theyre-so-effective/

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MDU3NmM3ZDUxMWViOGJiNzBiYjkwMmVlZDg0ZQ==

https://learn.cisecurity.org/ms-isac-subscription

F&M Financial Service Advisors Calan Jansen and Matt Robinson Earn Top 50 Ranking by Infinex Investments, Inc

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Press Release
For Immediate Release

June 22, 2021, Timberville, VA ‐‐ F&M Bank Corp. is pleased to announce that F&M Financial Services Advisors Calan Jansen and Matt Robinson have both been ranked among the Top 50 Infinex Financial Professionals, based on 2020 Gross Dealer Concession (GDC).

Calan Jansen, who provides investment services to clients in the Broadway and Edinburg offices of F&M Bank, ranked #14 of 50. Matt Robinson, who serves Harrisonburg and Rockingham County from his Cross Keys Road office, ranked at the #48 spot. The Top 50 producers were announced at a virtual ceremony held by Infinex Investments, Inc., in late May.

Photo of Calan Jansen

 

 

 

 

 

 

Securities offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Farmers & Merchants Financial Services, Inc. is a subsidiary of Farmers & Merchants Bank. Infinex is not affiliated with either entity.

Securities and Insurance Products:

Not Insured by FDIC or any Federal Government Agency May Lose Value Not a Deposit of or Guaranteed by the Bank or any Bank Affiliate

About Infinex Financial Group

In 2018, Infinex celebrated its 25th anniversary as an independent broker/dealer focused on serving the investment, insurance and wealth management needs of financial institutions.  Currently, Infinex supports over 230 community-based programs and more than 800 financial professionals.  The firm, headquartered in Meriden, Conn., with offices in Napa, Calif., and Midlothian, Va., has a unique history of being formed by financial institutions and owned by financial institutions. To learn more about Infinex Financial Group, visit www.infinexgroup.com.

About F&M Bank

F&M Bank (FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and since 1908, has served the Shenandoah Valley 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.

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F & M Bank Corp. Announces Record Quarterly Earnings & Reaches $1 Billion In Assets In First Quarter 2021

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News and Financials |

F & M Bank Corp. Announces Record Quarterly Earnings & Reaches $1 Billion In Assets In First Quarter 2021

Contact: Carrie Comer, EVP/Chief Financial Officer, (540) 896-1705 or ccomer@fmbankva.com

TIMBERVILLE, VA—April 26, 2021—F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank today reported net income available to common shareholders of $3.8 million and diluted earnings per common share of $1.11 for the first quarter ending March 31, 2021.

Record Quarterly Earnings

The bank is reporting record quarterly earnings in the first quarter of 2021 of $3.8 million while continuing to position the company for success over the long term.  F&M Bank continues to strengthen its solid financial position with historic levels of liquidity and historically strong capital base as we grew to over $1 Billion in Assets.

“With continued strong asset quality metrics and improved optimism for economic recovery due to COVID-19 vaccines and government stimulus, we believe that credit losses will not be as high as initially anticipated and that loan growth will continue to improve.  Coupled with the significant growth in our client base over the past year, we remain optimistic that F&M Bank is well positioned to deliver profitable growth and continue to build long term value for our shareholders,” said Mark Hanna, president and chief executive officer.

Non-Interest Income

Noninterest income increased to $3.4 million for the quarter ended March 31, 2021 from $3.2 million in the prior quarter and $2.4 million in the quarter ended March 31, 2020.  Growth is primarily driven by continued high volumes of mortgage originations, growth in our wealth management division, and title division.  Volumes in these areas more than offset the decreases in deposit service charges.

Paycheck Protection Program (“PPP”) & CARES Act

During 2021, the Company processed 280 Paycheck Protection Program (PPP) loans that totaled $20.2 million; PPP loans processed during 2020 and 2021 YTD totaled 997 loans for $83.4 million. In addition to an insignificant amount of PPP loan payoffs, the Company has processed a total of $46.4 million of forgiveness on 560 loans program to date resulting in a remaining balance of PPP loans of $37.0 million. The Company is continuing to accept PPP applications, and processing applications for forgiveness.

In addition, we have granted 35 individual loan deferrals in 2021, for a total of 1,266 deferrals since COVID began. As of March 31, 2021, 52 loans remain in deferral with a balance of $11.8 million or 1.7% of total loans.

Waynesboro Branch Opening & Branch Lobbies Reopen

The bank is set to open a new branch in the Waynesboro market on April 26, 2021.  This will expand our presence in Augusta County to serve the community’s financial needs with our full suite of branch services.  Branch lobbies at all our locations were reopened to the public on April 12, 2021.  We will continue to assess our procedures to maintain the safety of our customers, employees, and community as we move forward.

Selected financial highlights for the quarter include:

  • Quarterly net income of $3.8 million
  • Net interest margin of 3.44%.
  • Total deposits increased $44.2 million and $183.4 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 $12.8 million for the trailing 12 months (excluding PPP loans).
  • Nonperforming assets decreased to 0.57% of total assets at the end of the quarter from 0.68% on 12/31/20 and .66% on 3/31/20.
  • Negative Provision for Loan Losses of $725,000
  • Allowance for loan losses totaled 1.46% of loans held for investment (1.54% excluding PPP loans).

Mark Hanna, President, commented “We are pleased with first quarter earnings of $3.8 million.  Our mortgage and title companies, continue to see volumes in excess of expectations which drives noninterest income growth.  Our net interest margin of 3.44% shows a historical decline but remains strong especially given the changes in our balance sheet and the current rate environment.  Net interest income reflected a 4% increase over March 31, 2020.  F&M’s liquidity has increased significantly over the last four quarters and we are implementing strategic solutions to leverage these assets including deploying $64.2 million into the investment portfolio since year end 2020.  Despite the current low-rate environment, these strategies should augment our net interest margin in the future.” 

Mr. Hanna stated, “Nonperforming assets have continued to improve, decreasing $754 thousand since year end 2020.  We feel these efforts put F&M in a strong position to leverage a more optimistic economic forecast while seeking opportunities for continued growth in the communities we serve.”

On April 21, 2021 our Board of Directors declared a first quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $28.19 per share this constitutes a 3.69% yield on an annualized basis. The dividend will be paid on May 31, 2021, to shareholders of record as of May 15, 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 eleven banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA.  Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-1705.

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    
Q1 Q4 Q3 Q2 Q1
Net Income (000’s)  $3,801  $2,766  $2,207  $2,626  $1,189
Net Income available to Common  $3,736  $2,700  $2,142  $2,560  $1,123
Earnings per common share – basic  $1.17  $0.84  $0.67  $ 0.80  $0.35
Earnings per common share – diluted
Return on Average Assets 1.56% 1.12% 0.88% 1.17% 0.58%
Return on Average Equity 15.96% 11.75% 9.44% 11.50% 5.23%
Dividend Payout Ratio excluding Special Dividend 22.22% 30.95% 38.81% 32.50% 74.29%
Net Interest Margin 3.44% 3.81% 3.60% 3.75% 3.97%
Yield on Average Earning Assets 3.92% 4.77% 4.31% 4.52% 4.88%
Yield on Average Interest Bearing Liabilities 0.70% 1.33% 0.99% 1.09% 1.27%
Net Interest Spread 3.22% 3.44% 3.32% 3.43% 3.61%
Provision for Loan Losses (000’s)  $(725)  $-  $1,000  $ 800  $1,500
Net Charge-offs  $45  $ 351  $208  $203  $453
Net Charge-offs as a % of Loans 0.03% 0.21% 0.12% 0.12% 0.30%
Non-Performing Loans (000’s)  $  5,783  $6,537  $4,254  $4,465  $4,168
Non-Performing Loans to Total Assets 0.57% 0.68% 0.42% 0.45% 0.50%
Non-Performing Assets (000’s)  $5,783  $6,537  $ 4,420  $5,625  $5,504
Non-Performing Assets to Assets 0.57% 0.68% 0.44% 0.57% 0.66%
Efficiency Ratio 68.00% 69.10% 65.35% 65.33% 70.51%

 

(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 Three Months Ended March 31,
INCOME STATEMENT Unaudited 2021 Audited 2020
Interest and Dividend Income $8,746,348 $9,110,585
Interest Expense 1,068,509 1,706,084
  Net Interest Income 7,677,839 7,404,501
Non-Interest IncomeProvision for Loan Losses

Other Non-Interest Expenses

 3,355,044(725,000)

7,685,337

 2,428,5181,500,000

7,119,604
  Income Before Income Taxes 4,072,546 1,213,415
Provision for Income TaxesLess Minority Interest (income)/loss 271,294  (38,371) (62,429)
Net Income $3,801,252   $1,189,357
Dividend on preferred stock 65.448   65,873
Net Income available to common shareholders $3.735.804   $1,123,494
Average Common Shares Outstanding 3,205,074   3,204,084
Net Income Per Common ShareDividends Declared  1.17.26  .35.26
BALANCE SHEET Unaudited March  31, 2021  Audited March 31, 2020
Cash and Due from Banks $12,088,442 $8,528,494
Interest Bearing Bank Deposits 1,541,581 1,645,590
Federal Funds Sold  90,099,000  78,944,000
Loans Held for SaleLoans Held for Investment 15,922,810659,373,490 60,765,429609,585,135
  Less Allowance for Loan Losses (9,704,286)  (9,437,359)
  Net Loans Held for Investment  649,669,204  600,147,776
Securities 182,091,328 19,838,180
Other Assets   58,817,489    57,597,524
    Total Assets $1,010,229,854   $828,466,993
Deposits $862,751,952 $679,310,203
Long Term Debt 32,158,578 42,089,286
Other Liabilities 17,791,953 15,633,317
  Total Liabilities 912,702,483 737,032,806
Preferred Stock 4,558,298 4,591,623
Common Equity 92,969,073 86,842,564
Stockholders’ Equity 97,527,371 91,434,187
    Total Liabilities and Stockholders’ Equity $1,010,229,854 $828,466,993
Book Value Per Common Share $28.99   $27.20
Tangible Book Value Per Common Share $29.33   $26.05
     

Source: F & M Bank Corp.

Contact: Carrie Comer EVP/Chief Financial Officer, (540) 896-1705 or ccomer@fmbankva.com

Federal Tax Filing Season Starts Soon

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The IRS has announced that the federal income tax filing season for tax year 2020 returns begins on Friday, February 12, 2021. Although tax seasons frequently begin in late January, the additional time will allow the IRS to update its programming and test its system to take into account any changes made by the Consolidated Appropriations Act, 2021 (CAA 2021), signed into law on December 27, 2020. Last-minute changes to tax law have already been included in IRS tax forms and instructions.

Tips for making filing easier

To speed refunds and help with tax filing, the IRS suggests the following:

  • Make sure you have received Form W-2 and other earnings information, such as Form 1099, from employers and payers. The dates for furnishing such information to recipients vary by form, but they are generally not required before February 1, 2021. You may need to allow additional time for mail delivery.
  • The federal individual income tax returns, Form 1040 and Form 1040-SR (available for seniors born before January 2, 1956), and instructions are available on irs.gov.
  • File electronically and use direct deposit.
  • Check irs.gov for the latest tax information.

Key filing dates

Here are several important dates to keep in mind.

  • January 12. IRS Free File opened. Free File allows you to file your federal income tax return for free [if your adjusted gross income (AGI) is $72,000 or less] using tax preparation and filing software. You can use Free File Fillable Forms even if your AGI exceeds $72,000 (but these apparently are not available until February 12). You can already file with an IRS Free File partner, but tax returns will not be transmitted to the IRS before February 12. Tax software companies may also be accepting tax filings in advance.
  • February 12. IRS begins accepting and processing individual tax returns.
  • February 22. Projected date for the irs.gov Where’s My Refund tool being updated for those claiming the earned income tax credit (EITC) and the additional child tax credit (ACTC).
  • First week of March. Tax refunds begin reaching those claiming the EITC and ACTC for those who file electronically with direct deposit and no issues on their tax returns.
  • April 15. Deadline for filing 2020 tax returns (or requesting an extension).
  • October 15. Deadline to file for those who requested an extension on their 2020 tax returns.

Tax refunds

The IRS encourages taxpayers seeking a tax refund to file their tax return as soon as possible. The IRS anticipates most tax refunds being issued within 21 days of the IRS receiving a tax return if the return is filed electronically with direct deposit and there are no issues with the tax return. To avoid delays in processing, the IRS encourages people to avoid paper tax returns whenever possible.

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Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

Preparing, Protecting, & Managing Your 401(k) During Economic Uncertainty

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Since the Coronavirus (COVID-19) pandemic started to affect the American economy in March, the stock market has been fluctuating along with the news headlines. For many people, especially those close to retiring in Virginia, 401(k) management is a big concern. As a longtime community bank serving the Shenandoah Valley, we have plenty of experience helping our customers navigate historic crises. In this article, our Wealth Management team offers its best advice for preparing, protecting, and managing your retirement savings throughout economic uncertainty and recession.

3 Foolproof Ways to Prepare Your 401(k) For a Recession

You can take these steps now if you’re still employed, or save the advice for a post-coronavirus world.

1.  Start and grow your emergency savings account.

An emergency fund is the foundation of healthy finances. If you haven’t started one yet, aim for a small starter goal, such as $500 or $1,000. That’s enough to cover any unexpected expenses, such as a car or home repair, or medical bill. Once you reach your goal, use the momentum from your “win” to keep going, one month of living expenses at a time, until you’ve saved 6 months to a year of your basic monthly budget. Depending on how secure your job and industry are, you may not need quite that much. However, the 2020 Coronavirus pandemic has taught all of us the necessity of preparing for the unexpected.

An emergency savings is for large, unexpected expenses that you can’t cover with your monthly budget alone.

Once you have a good thing going with your emergency fund, resist the temptation to use it for non-emergencies. For example, down payments on a house or car should be saved for separately. Your emergency fund is for the large expenses you didn’t see coming and can’t cover with your monthly budget. In other words, an emergency fund keeps you from going into debt. And, if you lose your job, it could keep you out of bankruptcy.

2.  Reduce spending and look for “extra” money.

When times are good, everyone should be focused on paying down debt and/or building savings. For example, consider the extra money you typically receive in a year:

  • Annual or quarterly bonuses
  • Gift money on your birthday and other holidays
  • Tax refund
  • One-time inheritance
  • Contest or lottery winnings

While it can be tempting to spend this money right away, try to earmark at least half to put in your emergency savings account or to pay down credit card and/or car/personal loan balances. When a downturn or recession comes, you will be glad to have a bigger emergency fund or a smaller line item in your budget for monthly debt payments.

Another way to “find” extra money is to pare down discretionary spending on food and drinks, entertainment, subscriptions, etc. For example, if you are staying at home right now, you can put the money you save on transportation and discretionary purchases into your emergency fund or make an extra debt payment.

3.  Take advantage of free matching money at work.

Always take advantage of an employer’s contribution match to grow your 401(k) savings more quickly.
Are you leaving money on the table? Many employers will match up to a certain percentage of your own retirement account contribution. To grow your 401(k) savings more quickly, make sure you’re putting enough in to take full advantage of your employer’s match.

3 Surefire Ways to Protect Your 401(k) From a Recession

Now that we’re in what could be an economic recession, here’s what you can do to protect your retirement investing.

1.  Adjust risk to your age. 

Investing is a long game, but as you near retirement age, your risk tolerance diminishes. That doesn’t mean you should pull all of your money out of the market–you need to earn interest on it to keep up with the pace of inflation. What it does mean is that your investment approach should be adjusted to lessen risk. You should be able to do this yourself by logging into your retirement account. If you work with a financial planner, they can help you adjust your portfolio allocation to meet the specific needs of your retirement goals.

If you’re worried about having enough money in your 401(k) for retirement, the IRS permits “catch-up contributions” of an extra $6,000/year for people aged 50 and up.

2.  Diversify your investments.

Diversifying your investments can help reduce the risk of a bad stock negatively impacting your portfolio.

Whatever stage of life you’re in, diversifying your investments can help reduce the risk of one bad stock negatively impacting your entire portfolio. Instead of trying to pick and choose stocks on your own, go for low-cost index funds that provide exposure to a lot of companies in different industries and sectors. Our Wealth Management team can also help you optimize your investment portfolio.

3.  Keep contributing.

One of the best ways to protect your 401(k) is to continue making regular contributions. For example, don’t get scared by the changing market and lower your automatic payroll deduction. If your income or financial situation has changed in the wake of the pandemic, at least let your 401(k) balance keep growing by leaving it alone. When you find another job, you can start contributing again.

3 Tips for Managing Your 401(k) During a Recession

Similarly, here’s how to stay the course for however long this lasts.

1.  Do nothing.

Don’t try to “beat the market”. Investing is a long-term game.

If you’re an everyday investor who doesn’t know much about the stock market, your best option is to do nothing. If you make changes out of an emotional reaction to scary headlines, you’ll likely do more harm than good to your portfolio. Aside from a few outliers, most people don’t “beat the market.” Stay the course, talk to your financial advisor, and remember that investing is a long-term game.

2.  Stay invested in necessities.

Allocating assets to investments of essential items can help off-set any negative hits your portfolio may take during a recession. Essential items and services can be more “stable” investments since they don’t see as much of a drop in usage from consumers during recessions.

However, we are not recommending that you move your entire portfolio to essential-service investments. As mentioned earlier, you want to avoid making large changes to your portfolio at the same time.

3.  Ask for help.

Ask your Financial Advisor for help managing your investment portfolio if you have concerns or uncertainty.

If you’re concerned about managing your investment portfolio and finances, talk to a financial advisor. A professional wealth manager can help you evaluate your options and help you make the best wealth-building decisions for you.

Make an appointment with one of our Osaic Institutions Financial Advisors today!

Our Osaic Institutions financial advisors are experienced at planning for your future. We can guide you through retirement planning, personal insurance, and short-term financial goals to create a plan you can commit to and follow. Meet our experienced financial advisors and make your appointment today!

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal