F&M Bank – Farmers & Merchants Bank Names New Chief of Development and New Chief Credit Officer

 

F&M Bank – Farmers & Merchants Bank Names New Chief of Development and New Chief Credit Officer

For Immediate Release | Timberville, VA. August 24, 2022 – F&M Bank, a subsidiary of F&M Bank Corp., is pleased to announce the promotion of Paul Eberly to Chief Development Officer and Jason Withers to Chief Credit Officer. This change is made in response to the company’s expanding loan portfolio in the small business and agricultural industries.

Eberly, former Chief Credit Officer for F&M Bank, stated “I’m honored to work with a company that prioritizes our local agricultural needs, and I’m thrilled to work more directly with our local farmers and to support our initiatives in this space.”

Withers has been with F&M Bank since April 2021 and has over 15 years of commercial credit experience. Jason commented, “I look forward to expanding my role and managing our credit portfolio as F&M Bank continues to support the ever-changing financing needs of our communities.”  Withers has deep ties to the Shenandoah Valley and graduated from Coastal Carolina University.

Mark Hanna, F&M Bank’s President & CEO, is available for additional comment. Please call (540) 896-1743 or contact Jacob Mowry at jmowry@fmbankva.com.

About F&M Bank

F&M Bank Corp. (OTCQX: FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and since 1908, has served the Shenandoah Valley through its banking subsidiary F&M Bank, with full-service branches and a wide variety of financial services, including home loans through F&M Mortgage, and real estate settlement services and title insurance through VSTitle. Both individuals and businesses find the organization’s local decision-making, and up-to-date technology provides 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 Announces 33% Increase in Starting Wages

Timberville, VA. August 4, 2022 – F&M Bank, a subsidiary of F&M Bank Corp, increased its employees’ starting wages from $15 to $20 per hour, a 33% increase, effective August 1, 2022.  This minimum hourly pay rate is substantially above the Commonwealth of Virginia’s minimum hourly rate of $11.00 and the federal minimum hourly wage rate of $7.25.

“Our employees are our greatest asset, and we are committed to maintaining a living wage for all members of the F&M team,” said F&M Bank CEO, Mark Hanna.  “This increase is made possible by the incredible effort and dedication our team puts forth to support the financial needs of our communities.”

F&M Bank’s commitment to its employees is also reflected in the Company’s Employee Stock Ownership Plan (ESOP), which is designed to help support employees’ retirement goals by growing retirement funds in direct correlation with the success of their daily work. Other benefits provided by the company include a Quarterly Wellness Reimbursement for employees prioritizing their health, a $10,000 tuition reimbursement for continued education, an above-average starting Paid Time Off allotment and opportunities for internal advancement.

“We are excited by the productivity of our team and the things we have been able to accomplish,” commented Melody Emswiler, F&M Bank Chief Human Resources Officer, “This increase is a reflection that at F&M we are committed to our employees, and we value them. We want to share our success that has been accomplished by serving our community.”

F&M Bank was recently named among the top three best banks in Virginia by Virginia Living Magazine.  For a complete list of career opportunities at F&M Bank, please visit their careers page.

About F&M Bank

F&M Bank Corp. (OTCQX: FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and since 1908, has served the Shenandoah Valley through its banking subsidiary F&M Bank, with full-service branches and a wide variety of financial services, including home loans through F&M Mortgage, and real estate settlement services and title insurance through VSTitle. Both individuals and businesses find the organization’s local decision-making, and up-to-date technology provides 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.

F & M Bank: all-in on the Success of the Shenandoah Valley Marketplace

Interview with Mark C. Hanna, President & CEO of F&M Bank, conducted by: Bud Wayne, Editorial Executive, CEOCFO Magazine

Mark HannaF & M Bank Corp.
(OTCQX: FMBM)
www.fmbankva.com

CEOCFO: Mr. Hanna, has your role at F & M Bank Corp. changed since we spoke in December of 2019?
Mr. Hanna: No, I have the same title and responsibilities as before but the bank has changed for the last few years and with that some of the focus has shifted.

CEOCFO: Has there been any significant changes to your team over the past few years?
Mr. Hanna: Yes, we have several new additions to our team. Our Chief Credit Officer retired in September of 2020 and we replaced that gentleman with Paul Eberly who was working for us as head of our AG lending team. He is now our Chief Credit Officer. Barton Black was realigned to Chief Operating Officer. We brought in a gentleman named Garth Knight, he is Our Chief Banking Officer and heads up all the retail as we determine what our consumers are looking for from the bank in the future and how we leverage our retail franchise.

We were very fortunate about a year-and-a-half ago to bring over a very strong group of individuals that moved us into a new market. We expanded our footprint slightly since we last talked, and we added the Winchester market which is contiguous to our existing footprint but it pushes us a little bit north and up I-81 corridor and possibly a little bit west. In Winchester we picked up a group of six individuals and that group was led by a gentleman named Mike Wilkerson. He is a fantastic leader and was a business banking manager for the Mid-Atlantic with Wells Fargo. He is now our Chief Lending Officer.

Stephanie Shillingburg is still with us, her title shifted to Chief Experience Officer. She takes on our operations and technology side of the house to look at processes, infrastructure and technology, to make sure that we have everything in place that our clients are looking for as we continue to grow. We are about $1.25 billion today which is a pretty good increase from when we last talked in December of 2019.

CEOCFO: Are you still community and small to midsized business focused?
Mr. Hanna: Very much. We added one market to the northern part of our market but we are still a contiguous footprint and still very much in the same communities that we served. We remain focused on the Shenandoah Valley. Yes, the driving force for us is going to be the commercial and small business segment. We have a full-service bank and continue to reach out to the consumer needs as well but the growth is going to come primarily from the small to mid-sized business community.

CEOCFO: Would you tell us about the businesses in your community? Is agriculture, manufacturing, distribution, commercial real estate development, and residential real estate development still the strength of community, providing jobs and community development?
Mr. Hanna: Very much so, all those areas that you mentioned are robust here in our footprint. We are F &M Bancorp, which stands for Farmers and Merchants. We have been around for 114 years. We were not aggressive a few years ago in the “farmers” part of that equation and we brought aboard a gentleman named Paul Eberly. He has added people like Bobby Williams and Daniel Scott to our Agricultural efforts. Our Ag loans have been the fastest-growing segment of our loan portfolio.

We have an indirect automotive finance team that has done an exceptional job. They continue to outperform all expectations in good markets and bad. We are looking at strategies to maybe deepen our relationships with some of the dealer clients that that group has cultivated over the years. That is an area of focus for us.

CEOCFO: Which of the different industries that you serve provides the greatest revenue potential for your bank today?
Mr. Hanna: It is pretty broad-based. Like I said, probably the fastest-growing segment of our portfolio has been in AG the last several years. We are in some very strong agricultural markets such as Rockingham County where the bank has its roots is the #1 AG producing region in the Commonwealth of Virginia. We have a strong presence in Augusta County which is actually the second AG producing county in Virginia. AG is a big piece of our business as we move forward and we think it is going to be an outsized piece of our growth as we move forward.

The businesses that we serve are pretty diversified. We have had a lot of success in what I would call the C&I base, commercial and industrial. We have added a lot of manufacturing companies and distribution companies over the last several years and those are great because pretty much those businesses rely on operating lines, they need real estate loans but that is for their plant and equipment. We have been successful with those businesses also because they tend to be relational as opposed to making a real estate or equipment loan, when you have a business operating line to provide capital for receivables and inventory, we have leveraged that to really grow deposits significantly.

All banks have benefitted with deposit growth over the pandemic or at least I think most banks. We have actually grown more than double the industry norm in terms of our deposit growth and I attribute a lot of that to a big focus that we made in going after deposit clients and the types of clients that would tie back to that C&I space.

CEOCFO: What are some of your product offerings and where do you see the greatest growth coming from?
Mr. Hanna: We focused a lot on trying to ramp-up our deposit capabilities. Areas where we have invested would be online banking, mobile banking and what businesses would call treasury services and cash management products. We have added a lot in terms of digital, really all geared to supporting that. It is not all deposit focused; we are working on an online lending portal, an automated small business lending system that we think will really help the small businesses in our community. Those are the primary focuses.

CEOCFO: Are you still 50/50 split between being a business/commercial bank and a consumer bank or has there been a change there over the past 2 years?
Mr. Hanna: It has probably shifted, not that we have any fewer consumers today, as a matter of fact we have more. I think we reach more consumers today but I think more of our growth has occurred in the commercial space, and with that it is more of an economies of scale. A typical household account may bring the deposit balance in a checking account to $2500 give or take.

We are bringing in some large commercial accounts that in many cases have three to five million dollars in checking account balances and even some above that. While we are seeing growth on the commercial side, it is the size of those relationships that is probably tipping the scale. We are probably a little bit more commercial to consumer at this point but we are not turning our back on either market, to be sure.

CEOCFO: Would you tell us about your investment division and how it is performing today?
Mr. Hanna: Our broker dealer is Infinex Financial Group out of Connecticut. Infinex has more than 750 registered financial advisors, and we have two of the top-performing individuals with us at F & M. They consistently rank on the top 25-50 of that broker dealer platform nationwide. We have continued to invest around that team. We have two more financial advisors today that we did not have a year ago. They are providing support and helping us grow in new markets, so we are excited about where the investment team is headed.

CEOCFO: With the rise of online banking and mobile apps, and COVID, is the personal touch still important for you and your customers or do you find with the newer generations that are in the workforce these things don’t matter as much?
Mr. Hanna: I think it is both. There was a shift even before the pandemic, to digital. It is happening everywhere. With COVID, most industries I think accelerated some of that shift to a more digital consumption-based for banking and household items. We see it in grocery shopping of all things. We are no different. Our clients pivoted and use far more digital services than they did going into the pandemic. We see that what they value is a combination. They want and require the digital products and services but they also want the personal relationships. They want to know they can rely on personal touch when there is a problem or a question, a challenge or opportunity.

They also appreciate the opportunity to come into our branch and pick up the phone and talk to people that will commit the time to understand what is impacting them, and then bring their skills to providing recommendations and solutions to their needs. If it was all going digital, we would realize that we couldn’t spend the resources on digital as some of the large national banks can but we think that at least in the markets that we serve that there is a strong number of folks that appreciate the personal touch in conjunction with having the full array of digital products and services. That is where we are trying to play that divide, if you will.

CEOCFO: Has there been many changes in the communities you service? Are you seeing more expanding and growing urban and sub-urban areas? Are there more people from D.C. coming over to Virginia?
Mr. Hanna: Our communities have certainly grown. You think of all the high-growth areas of the country, we are not in the top-five percent but we have certainly seen growth. During the pandemic one of the things that we saw was folks leaving urban areas and seeking out more suburban areas. Working from home became more popular, the ability to work remotely with less time in the office. We saw that in our footprint and our communities. We saw a number of folks move here from more densely populated areas.

We have a number of farmettes, farms or beautiful homes in suburban type markets with mountain views and outdoor activities. We have definitely seen growth as people have moved here to take advantage of our communities. We also have a strong economy. We have one of the strongest agricultural bases here. We have a number of universities and colleges in our footprint. James Madison is one of the fastest-growing universities in Virginia and our economy has benefitted from that. We have a fairly robust industrial base.

I-81 that cuts through the Shenandoah Valley is one of the main trucking routes along the east coast. That brings logistics, distribution and a number of opportunities for more economic growth in our footprint. If I had to characterize it all, I think we have seen solid growth across many industries and for many reasons which I think is healthy and a positive for where we are.

CEOCFO: Has changes in your community affected your growth strategy?
Mr. Hanna: Over the years we had moved away from the AG markets a little bit, but we now have put a huge emphasis on being very active in the agricultural communities.

In terms of the growth changing who we are, the answer to that is no. We want to serve the communities we are in, in their entirety. We think we do a good job of reaching out to everybody in all industries.

CEOCFO: When we last spoke you had 14 branches. Has there been any changes there?
Mr. Hanna: We had opened up a number of de novo branches over the past 5-8 years and we ended up closing three branches, I believe it was the summer of 2020. They were in markets where we could not get the growth that we needed to support the investment and the overhead that it took to operate those branches. After much discussion with the board we realized there just was not a path to get to a sustainable level of clients and deposits that would offset the costs to support those offices. We closed three branches, but on the flipside we bought a branch from another bank in Waynesboro which is a large economy in our footprint and we were not in that area, so that was a good acquisition for us.

As I mentioned earlier, we moved into the Winchester market. In April of this year, we opened up the branch to serve that market and plans are in place to open another branch in the Winchester market. I am not quite sure when that will be ready, we have acquired the real estate and we are doing some renovations to it. We expect that branch will be ready probably first quarter of next year depending on construction time.

CEOCFO: Is branding a focus for you? Is there a look and feel so when they look at a bank, they know it is F & M BANK?
Mr. Hanna: We are striving for that. We have a branch template so we have several branches that look very much the same. We have some unique branches that are not based on that template, maybe because of age or how they came in but we have worked to create design elements that connect all of our offices to a fairly similar look on the exterior and most of the design elements on the interior are common. We are trying new things with technology especially with some of our newer branches.

Sometimes we will try things in an office and see what the customer adoption of that technology is, and if it is successful, we have plans maybe to roll it out to all our branches. If it is not successful, then at least we tried and we know what does not really gain any traction. I would not say that all branches are the same but we do try to create consistency in look and markets. That said, we have been in Rockingham County, the center of our footprint, for 114 years.

So back to your question about branding and name recognition. In Rockingham Country and Harrisonburg, the F & M name is very strong. We have been around for a long time and most everybody knows the bank. I think we have a strong perception of who we are and what we do in our communities. As we move our footprint into new markets such as Winchester, and a few years before that it was Augusta County, we have to go into those markets and build that awareness and perception. We have to create the brand and identity and what we stand for. That is obviously easier said than done. Marketing helps but it is a lot of one-one-one efforts to build relationships and let people know who we are and what we stand for.

CEOCFO: Since 2019, we have seen COVID and now inflation and economic challenges? How have you helped your customers deal with these challenges?
Mr. Hanna: I think a lot of it is just on a one-off level. We have done a number of things. Early in the pandemic before PPP came out, we worked with some community organizations to launch small business lending grants in all three of the markets we were in at the time which was Shenandoah County, Rockingham County, Harrisonburg and Augusta County, Staunton area. We gave $100 thousand across our footprint to fund grants to small businesses that were struggling at the onset of the pandemic, so that would have been around March of 2020, because PPP rolled-out just after we started those efforts. We have done a lot to try to educate and inform clients in terms of resources that were out there because a lot of the resources that were out there are not bank resources. There are things like the ERC and EIDL loans that are not issued through banks. We tried to bring ourselves up to speed so that we could tell our clients what resources were out there and direct them accordingly.

As their businesses grow and local communities prosper, the bank certainly has a symbiotic relationship with our communities, that we will grow and prosper as well. Even if it is not a bank product or service, or even if it is people that do not bank with F&M, if their business is growing and the economy is growing, we feel there is a benefit to the bank. A rising tide lifts all ships. We brought ourselves up to speed and educated ourselves so that we could be consultative to our clients during these tough times. I think those are the biggest things that we have done.

We have been very active in the small business grant programs but we continue to be active with all civic organizations and our communities. We are very active in terms of giving back financially in our communities but it is not just the banks resources, we encourage all of our employees to get out and be active and involved in civic organizations and put boots on the ground and give back. Our folks have taken to that and we have an active workforce that understands that there is much we can do to help others in our communities.

CEOCFO: What is your current funding position? Is reaching out to investors important for F & M today?
Mr. Hanna: Oh absolutely it always is. Our funding position in terms of the banks funding and liquidity, we are very liquid. When you and I talked back in December of 2019, our loan and deposit ratio was probably close to 110%, we did not have enough deposits to fund the loans on our books at that time, so we were borrowing from FHLB and other sources. Today we have changed that. In 2018 we were 112% loan to deposit and today we are about 59% loan to deposit ratio. We have grown deposits significantly over the last 2.5 to 3 years. A lot of that is pandemic related and a lot is just our focus on growing deposits and the investments we made in products and services we offer. That is part of our funding.

The other part that you may be referring to is the investor base. We are a publicly traded company and our investors are extremely important. We have three critical stakeholders and if we lose sight of any of those three, we are going to fail. That is our clients, employees, and shareholders. Our shareholders are critically important. We do spend a lot of time trying to reach out and communicate with them.

It is not always easy because many of our shares are held in what we call street names, so we do not always know who our shareholders are but we like to certainly make ourselves accessible to them. We get a lot of calls and questions and to the degree that we can we like to share how the bank is doing and what we are trying to accomplish. We love to talk to our shareholders and get their questions and get their thoughts as well.

CEOCFO: In closing, how important is F & M Bank to the growth of the Shenandoah Valley that you serve? Is community involvement important for you?
Mr. Hanna: We have five core values and the #1 core value is community. We take our communities very seriously. Many banks are kind of hopscotching to different places to get into high growth economic markets. I respect those decisions. We are grounded right here in the Shenandoah Valley. We are not jumping around to go to the hot new sexy market. We moved into Winchester which I said was contiguous to our northern most markets, so that was a logical move for us and a logical extension of our existing footprint.

We are all-in on the success of the Shenandoah Valley marketplace. As I said earlier it is very much a symbiotic relationship. We feel that as the Shenandoah Valley economy grows and prospers, F&M bank should grow and prosper along with it. We also feel that as F&M bank grows and prospers, we think we are a big contributor to the growth of the Shenandoah Valley economy. We think it is good for all parties.

We like to encourage folks who have deep roots in the Shenandoah Valley to understand that relationship and hopefully support F&M and know that if they entrust F&M with their financial needs, that we will be reinvesting back into our communities. We hope that will also makes their business, their community, their neighborhoods, their civic needs, even stronger. We hope that they get that connection.

F&M Bank – Farmers & Merchants Bank Announce Investment in BankTech Ventures Fund

Timberville, VA. August 2, 2022 – F&M Bank, also known as Farmers & Merchants Bank, announced today that it has committed to be an investor in BankTech Ventures, LP (“BTV” or the “Fund”), a strategic investment fund with the mission to support community banks through investment and education around banking technology. With general partners from The Venture Center, the Independent Community Bankers of America (“ICBA”), Hovde Group and two leading community banks, Coastal Community Bank and Sunwest Bank, BankTech Ventures partners with premier community banks to identify emerging technologies for investment and use by them.

 

Supported and endorsed by the ICBA and The Venture Center, which was named Finovate’s 2020 Best Accelerator of the Year, BankTech Ventures is building an ecosystem that pairs community banks with emerging technology companies that can serve banks’ immediate needs whether it be regulatory, customer acquisition, process improvement, or other areas of focus. The Fund ultimately aims to provide its bank investors with the opportunity to obtain significant research & development “spend” at a much lower cost than if undertaken in-house, as well as strong returns from the underlying company investments. With a limited partner base of over 100 community banks across the US, the strategic value of the fund’s ecosystem for both bank-focused startups and community banks is unprecedented.

 

“Through our affiliation with the ICBA’s ThinkTECH Accelerator program, F&M Bank has initiated partnerships with several of the past and current emerging financial technology companies,” said Mark Hanna, President & CEO of F&M Bank.  “We have been extremely impressed with the management of these companies and the services they provide which will enable F&M to better serve our clients and our communities.  Expanding our commitment to innovation in the form of a financial investment in BankTech Ventures was the next logical step in aligning our mutual interests with these emerging businesses.”

 

“We are thrilled to welcome F&M Bank to BankTech Ventures,” said Carey Ransom, Managing Director of BankTech Ventures. “From our first conversation with them, their commitment to innovation was clear, and they have already been a valuable participant in our ecosystem – collaborating with our team, other banks, and the startup companies with bank-enabling solutions. We look forward to the continued partnership.”

 

BankTech Ventures, LP (www.banktechventures.com) has raised over $100M for its first fund and has over 100 initial limited partners, including F&M Bank. The fund has already made 6 investment and continues to evaluate several investment opportunities. In addition to Ransom, the fund’s other general partners are Eric Sprink, CEO of Coastal Community Bank; Carson Lappetito, President of Sunwest Bank; Steve Hovde, Chairman & CEO of Hovde Group; Charles Potts, Chief Innovation Officer, ICBA; and Wayne Miller, Executive Director, The Venture Center.

 

Mark Hanna, F&M Bank’s President & CEO, is available for additional comment. Please call (540) 896-1743 or contact Jacob Mowry at jmowry@fmbankva.com

 

About F&M Bank

F&M Bank Corp. (OTCQX: FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and since 1908, has served the Shenandoah Valley through its banking subsidiary F&M Bank, with full-service branches and a wide variety of financial services, including home loans through F&M Mortgage, and real estate settlement services and title insurance through VSTitle. Both individuals and businesses find the organization’s local decision-making, and up-to-date technology provide the kind of responsive, knowledgeable, and reliable service that only a progressive community bank can. F&M Bank has grown to $1 billion in assets with more than 175 full and part-time employees. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

 

About BankTech Ventures, LP.

Established in 2021, BankTech Ventures, LP is the first venture fund created for and by key leaders in community banking, bank technology and fintech. BTV serves the community banking ecosystem through strategic investments, education and collaboration with its limited partners and ICBA members by delivering a de-risked and/or fully vetted network of leading and emerging bank technology companies to enhance a community bank’s value, as well as aim for strong returns from the underlying investments in these companies. Learn more at www.banktechventures.com.

F & M Bank Corp. Announces Second Quarter 2022 Earnings And Dividend

TIMBERVILLE, VA / ACCESSWIRE / July 28, 2022 / F & M Bank Corp. (OTCQX:FMBM), parent company (the Company) of Farmers & Merchants Bank today reported earnings for quarter ending June 30, 2022.

Mark Hanna, President, commented “ F&M Bank had earnings of $1.8 million in the second quarter of 2022 which were driven by strong loan demand within our Shenandoah Valley Communities. Loans outstanding grew $32 million in the past quarter as we continue to build a solid pipeline of future opportunities. Given challenging economic and market conditions, we strive to maintain our disciplined approach to growth, pricing and underwriting. Our investment portfolio continues to contribute meaningfully to earnings and our deposits growth has leveled off with a slight decline during the quarter. While we did add $600 thousand to our provision for loan losses this quarter due to the loan growth and economic uncertainty, our core operating earnings are strong and growing. The strategic focus of developing our team, improving our infrastructure, and maintaining our asset quality while developing lasting relationships in our community continues to position F&M for future success.”

Selected financial highlights include:

  • Net income of $1.8 million for the quarter ended June 30, 2022.
  • Total deposit decreases of $12 million (1.09%), increases of $20.0 million (1.84%) and increases of $144.9 million (15.16%), respectively for the quarter, year to date and for the trailing twelve months.
  • Loans held for investment increase of $32.3 million (4.92%), $35.3 million (5.40%) and $51.6 million (8.08%), respectively for the quarter, year to date and for the trailing twelve months (excluding PPP loans).
  • Nonperforming loans as a percent of total assets decreased to .15% from .45% at year end and .50% on June 30, 2021.
  • Provision for loan losses of $600 thousand for the quarter and $150 thousand year to date.
  • 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 8.08% since June 30, 2021, and 9.97% since December 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.

(dollars in thousands)
6/30/2022 12/31/2021 Change 6/30/2021 Change
Commercial
$ 311,126 $ 286,500 $ 24,626 $ 277,475 $ 33,651
Agriculture
91,269 81,879 9,390 74,205 17,064
Dealer
119,758 107,346 12,412 101,435 18,323
Consumer
164,771 173,556 (8,785 ) 179,993 (15,222 )
Other
2,901 5,205 (2,304 ) 5,119 (2,218 )
Loans held for Investment, net of PPP
$ 689,825 $ 654,486 $ 35,339 $ 638,227 $ 51,598

Investments

The Company has continued to leverage excess funds into the available for sale (AFS) investment portfolio in the second quarter of 2022. Since the beginning of the year, the investment portfolio has gown $42.9 million to $447 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 1.67% which has equated to $2.0 million in income compared to $536 thousand in the same period last year.

AFS INVESTMENT PORTFOLIO

($000s)
6/30/22 12/31/21 Change 6/30/21 Change
US Treasury
$ 46,737 $ 29,482 $ 17,255 $ 29,406 $ 17,331
Agency
156,148 133,714 $ 22,434 24,735 $ 131,413
Mortgage Backed Securities
171,031 183,647 $ (12,616 ) 91,426 $ 79,605
Municipals
43,686 34,337 $ 9,349 29,332 $ 14,354
Corporates
29,221 22,702 $ 6,519 13,755 $ 15,466
Total Securities
$ 446,823 $ 403,882 $ 42,941 $ 188,654 $ 258,169
Securities Quarterly Income
$ 1,970 $ 1,102 $ 868 $ 536 $ 1,434

Deposits

During the second quarter of 2022, the Company experienced a slight decline in deposits. However, growth for the year is 1.84%. The Company continues to strategically focus on building primary banking relationships which is reflected in the $11 million growth in noninterest bearing accounts.

DEPOSIT PORFOLIO

(dollars in thousands)
6/30/22 12/31/21 Change 6/30/21 Change
Non Interest. Bearing
$ 291,728 $ 280,993 $ 10,735 $ 269,618 $ 22,110
NOW & Other Transactional
193,037 191,969 1,068 150,323 42,714
Money market and Savings
500,108 483,476 16,632 403,714 96,394
Certificates of deposit
115,337 123,857 (8,520 ) 131,689 (16,352 )
Total Deposits
$ 1,100,210 $ 1,080,295 $ 19,915 $ 955,344 $ 144,866
1.84 15.16

Asset Quality

Nonperforming loans as a percent of total assets (net of PPP) continue to decline from 0.50% on June 30, 2021, to 0.15% on June 30, 2022. Classified loans declined from the previous twelve months from 9.14% to 6.82%, respectively (net of PPP). The Company did experience a slight increase in delinquencies from 0.37% on June 30, 2021, to 0.59% at June 30, 2022 with the majority of the increase in the 30-59 days.

(000’s)
6/30/2022 12/31/2021 6/30/2021
Non-performing Loans
Non-accrual loans
$ 1,851 $ 5,465 $ 5,532
Over 90 & on Accrual
55 43
Total Non-performing Loans
$ 1,906 $ 5,508 $ 5,532
NPL As A % of Total Assets, net of PPP
0.15 % 0.45 % 0.50 %
Watch Total
$ 31,663 $ 24,140 $ 36,406
As A % Of Loans, net of PPP
4.56 % 3.67 % 5.65 %
Substandard Total
$ 15,738 $ 19,713 $ 22,423
As A % Of Loans, net of PPP
2.27 % 2.99 % 3.48 %
Total Watch List
$ 47,401 $ 43,853 $ 58,829
Total Classified As A % of Total Loans, net of PPP
6.82 % 6.66 % 9.14 %
Past Due Loans
30-59 Days Past Due
$ 3,304 $ 2,751 $ 1,640
60-89 Days Past Due
762 432 716
90+ Days Past Due
41 43
Total Past Due Loans
$ 4,107 $ 3,226 $ 2,356
Deliquency %, net of PPP
0.59 % 0.49 % 0.37 %
Performing TDRs
Real estate
1,914 1,930 2,547
Commercial
2,082 2,826 2,167
HE
148 669
Other
86 95 831

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 1.35% on June 30, 2021, to 1.12% on June 30, 2022. This decline has been driven by improved asset quality as evidenced by the decline in nonperforming assets and classified loans. Uncertainty in the economy related to the war in Ukraine, inflation, supply chain issues, increase in past due loans, growth in the portfolio over the trailing twelve months and the increase in interest rates were all factored in the allowance for loan loss calculation resulting in a provision for loan losses of $600 for the quarter and $150 for the year.

Three months ended Six months ended
6/30/2022 3/31/2022 6/30/2021 6/30/2022 6/30/2021
(000’s)
Provision for Loan Losses
$ 600 $ (450 ) $ (1,250 ) $ 150 $ (1,975 )
Allowance for Loan and Leases Losses
$ 7,798 $ 7,389 $ 8,705 $ 7,798 $ 8,705
ALLL as a % of Loans Held for Investment, net of PPP
1.12 % 1.12 % 1.35 % 1.12 % 1.35 %

INCOME STATEMENT

Net Interest Income

Quarterly net interest income reflects growth of $1 million over first quarter and $1.3 million over June 30, 2021. This growth is attributed to the income produced by the investment portfolio that has continued to grow in the second quarter of 2022, increases in variable rate loan rates, growth in the loan portfolio and the lower cost of funds.

Margin compression has reduced the net interest margin from 3.12% on June 30, 2021, to 2.97% on June 30, 2022, however for the second consecutive quarter net interest margin increased from the December 31, 2021, margin of 2.82%. We are seeing the results of the Company’s efforts to mitigate compression by continuing to invest excess funds into securities with better yields and growth in the loan portfolio. The Company has also slightly reduced cost of funds since June 30, 2021, to 36 basis points through maintaining deposit rates and growth in noninterest bearing deposits.

F&M Bank Corp, Wednesday, July 27, 2022, Press release picture

Noninterest Income

Noninterest income of $2.4 million for the quarter is slightly lower than first quarter ($2.5 million) and a decline from June 30, 2021, which was $3.0 million. Mortgage originations have declined as rates have increased. As a result, the Company is focused on expanding mortgage originators into our newer markets and offering variable rate products to our mortgage customers. The Company is also continuing to utilize our title company and growing our wealth management division.

Noninterest expense

Focusing on infrastructure enhancements, developing our team and expanding into our newer markets has resulted in growth in noninterest expense of 3.6% in the trailing twelve months.

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 $671 thousand in PPP loans as of June 30, 2022, and recognized $54 thousand in PPP fee income in the second quarter.

Dividends Declaration

On July 21, 2022, our Board of Directors declared a second quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $25.48 per share this constitutes a 4.08% yield on an annualized basis. The dividend will be paid on August 29, 2022, to shareholders of record as of August 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.

F & M Bank Corp.
Key Statistics

2022 2021
Q2 Q1 YTD Q2 Q1 YTD
Net Income (000’s)
$ 1,789 $ 2,528 $ 4,317 $ 3,220 $ 3,801 $ 7,021
Net Income available to Common
$ 1,789 $ 2,528 $ 4,317 $ 3,154 $ 3,736 $ 6,890
Earnings per common share – basic
$ 0.51 $ 0.74 $ 1.25 $ 0.98 $ 1.17 $ 2.15
Earnings per common share – diluted
$ $ $ $ 0.93 $ 1.11 $ 2.04
Return on Average Assets
0.58 % 0.83 % 0.76 % 1.22 % 1.56 % 1.39 %
Return on Average Equity
8.97 % 10.88 % 8.92 % 13.06 % 15.96 % 14.78 %
Dividend Payout Ratio
50.98 % 35.14 % 41.60 % 26.53 % 22.22 % 24.19 %
Net Interest Margin
3.15 % 2.82 % 2.97 % 3.13 % 3.44 % 3.27 %
Yield on Average Earning Assets
3.50 % 3.17 % 3.32 % 3.56 % 3.92 % 3.72 %
Yield on Average Interest Bearing Liabilities
0.48 % 0.49 % 0.49 % 0.62 % 0.70 % 0.66 %
Net Interest Spread
3.02 % 2.68 % 2.83 % 2.94 % 3.22 % 3.06 %
Provision for Loan Losses (000’s)
$ 600 $ (450 ) $ 150 $ (1,250 ) $ (725 ) $ (1,975 )
Net Charge-offs
$ 192 $ (92 ) $ 100 $ (272 ) $ 45 $ (227 )
Net Charge-offs as a % of Loans
0.03 % -0.01 % 0.02 % -0.16 % 0.03 % -0.03 %
Non-Performing Loans (000’s)
$ 1,906 $ 4,799 $ 1,906 $ 5,532 $ 5,783 $ 5,532
Non-Performing Loans to Total Assets
0.15 % 0.39 % 0.15 % 0.50 % 0.57 % 0.50 %
Non-Performing Assets (000’s)
$ 2,103 $ 4,799 $ 2,103 $ 5,532 $ 5,783 $ 5,532
Non-Performing Assets to Assets
0.17 % 0.39 % 0.17 % 0.50 % 0.57 % 0.50 %
Efficiency Ratio
75.73 % 78.68 % 77.14 % 76.07 % 68.00 % 72.00 %
  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.

Income Statement

Three months ended Six months ended
6/30/2022 Unaudited 3/31/2022 Audited 6/30/2021 Audited 6/30/2022 Unaudited 6/30/2021 Unaudited
(dollars in thousands)
Interest and Dividend Income
$ 10,009 $ 9,061 $ 8,819 $ 19,070 $ 17,566
Interest Expense
1,008 1,004 1,069 2,012 2,137
Net Interest Income
9,001 8,057 7,750 17,058 15,429
Non-Interest Income
2,368 2,483 3,086 4,851 6,441
Provision for Loan Losses
600 (450 ) (1,250 ) 150 (1,975 )
Loss on sale of securities
97 97
Impairment of long-lived assets
Other Non-Interest Expenses
8,752 8,550 8,444 17,302 16,130
Income Before Income Taxes
1,920 2,440 3,642 4,360 7,715
Provision for Income Taxes
131 (88 ) 422 43 693
Net Income
$ 1,789 $ 2,528 $ 3,220 $ 4,317 $ 7,022
Dividend on preferred stock
66 66
Net Income available to common shareholders
$ 1,789 $ 2,528 $ 3,154 $ 4,317 $ 6,956
Average Common Shares Outstanding
3,452,711 3,434,892 3,207,978 3,443,850 3,206,534
Net Income Per Common Share
$ 0.51 $ 0.74 0.98 $ 1.25 $ 2.15
Dividends Declared
$ 0.26 $ 0.26 $ 0.26 $ 0.26 $ 0.26

Balance Sheet

6/30/2022 Unaudited 12/31/2021 Audited Change 6/30/2021 Unaudited Change
(dollars in thousands)
Cash and Due from Banks
$ 13,636 $ 8,579 $ 5,057 $ 15,415 $ (1,779 )
Interest Bearing Bank Deposits
187 2,875 $ (2,688 ) 3,901 $ (3,714 )
Federal Funds Sold
3,430 76,667 $ (73,237 ) 166,698 $ (163,268 )
Loans Held for Sale
5,448 4,887 $ 561 8,855 $ (3,407 )
Loans Held for Investment
690,497 662,422 $ 28,075 660,956 $ 29,541
Less Allowance for Loan Losses
(7,798 ) (7,748 ) $ (50 ) (8,727 ) $ 929
Net Loans Held for Investment
682,699 654,674 $ 28,025 652,229 $ 30,470
Securities
456,635 413,217 $ 43,418 198,814 $ 257,821
Other Assets
59,517 58,443 $ 1,074 59,063 $ 454
Total Assets
$ 1,221,552 $ 1,219,342 $ 2,210 $ 1,104,975 $ 116,577
Deposits
1,100,210 1,080,295 $ 19,915 955,344 $ 144,866
Long Term Debt
11,788 21,772 $ (9,984 ) 31,310 $ (19,522 )
Other Liabilities
47,604 16,819 $ 30,785 18,109 $ 29,495
Total Liabilities
1,159,602 1,118,886 $ 40,716 1,004,763 $ 154,839
Preferred Stock
$ 4,558 $ (4,558 )
Common Equity
71,950 100,456 $ (28,506 ) 95,654 $ (23,704 )
Stockholders’ Equity
71,950 100,456 $ (28,506 ) 100,212 $ (28,262 )
Total Liabilities and Stockholders’ Equity
$ 1,231,552 $ 1,219,342 $ 12,210 $ 1,104,975 $ 126,577
Book Value Per Common Share
$ 21.01 $ 29.42 $ 29.80
Tangible Book Value Per Common Share
$ 20.06 $ 28.47 $ 29.98

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/710009/F-M-Bank-Corp-Announces-Second-Quarter-2022-Earnings-And-Dividend

F&M Bank Welcomes Commercial Lender Ben Thompson to its Growing Team

F&M Bank’s leadership team welcomes Ben Thompson to his new role as a Commercial Relationship Manager. Mr. Thompson joins F&M Bank most recently from National Bank and brings with him 6 years of retail and commercial banking experience.

Ben commented, “I’m excited to join this well-established banking team. I look forward to making new connections and growing relationships to provide our clients a best-in-class community banking experience.”

In this role, Ben will build client relationships, supporting small and large Virginia-based businesses. F&M Bank’s President Senior Vice President and Market Leader, Katherine Preston commented, “We are thrilled to have Ben join the commercial team. He brings a wealth of client experience and finance knowledge to this position and will be integral to our strategic goals moving forward.”

Ben earned a bachelor’s degree from Radford University. He enjoys spending time with family, golfing, and fishing and is passionate about assisting in a client’s success. Ben will support the bank’s market service area and be based at the Crossroads bank branch in Harrisonburg, VA.

Contact Ben at the “Get in Touch” form directly below!

Best of Virginia 2022

F&M Bank has been grateful to play a part in the growth of Virginia’s economy and remains committed to being a locally owned and publicly traded community bank right here where we all live, work and play.

In May 2022, Virginia Living Magazine announced results for its “Best of Virginia” annual list following a readers’ survey conducted earlier in the year. Our teammates are beyond humbled to be recognized among the top three Best Banking Services in the Shenandoah Valley region.  Thank you, readers, neighbors and friends, for your vote. We appreciate it!

Follow us out on the OTC Market Index: #FMBM. Look for @fmbankva on social media channels for the latest news, events and community updates!

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 Opens Old Town Winchester Banking Center 

A second branch location will follow in late 2022

TIMBERVILLE, Va. (April 25, 2022) – On Monday, April 18, F&M Bank continued its growth in Winchester with a new banking center located in historic Old Town Winchester. This is F&M Bank’s 13th branch in Virginia. Later in 2022, a second Winchester branch location is slated to open west of Old Town on Amherst Street.

F&M Bank identified Winchester as a strategic growth opportunity due to its thriving local economy, prospering businesses, robust non-profit network, and a community that’s committed to preserving its history while at the same time looking to the future.

“As a bank with more than 100 years of history we look to do business with people and communities that align with our values – and for us, Winchester is a perfect match,” said Mike Wilkerson, Chief Lending Officer and Winchester Market Executive. “The ‘Top of Virginia’ is thriving and our sweet spots of agriculture, non-profit and business banking reflect the needs of our community. In a world of bank consolidation and branch closures, F&M is committed to organic growth and market expansion. When we expand our ability to serve our customers, everybody wins.”

In January 2021, F&M Bank opened a commercial banking and loan production office in the Winchester market with an experienced banking team who has a 20-year history of working together. This northern Shenandoah Valley market has accrued over $36 million in deposits and $21 million in loans. Mr. Wilkerson leads the team which consists of John Sargent, SVP and Jonathan Reimer, SVP who are Commercial Relationship Managers, Gail Pryde and Ronda Gross, Business Relationship Specialists, and Bill Steele, VP, Senior Credit Analyst.

Today, with the announcement of its Old Town location opening, this team is excited to leverage their 150 years of combined banking experience to deliver customized loan, deposit, and cash management solutions to business and personal customers.

Lauren Fravel has been named as Banking Center Specialist for the Old Town Winchester location. Lauren brings over 25 years of experience to the team and is eager to welcome new customers. The banking center will also employ associates for F&M Mortgage and VS Title in the coming months.

The branch is located at 3 South Cameron Street, at the corner of Boscawen and Cameron Streets. Hours are 8:30am am to 5:00 pm with extensive digital offerings available online and on the F&M Bank mobile app.