F&M Bank Corp. Announces Second Quarter Earnings

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the second quarter ending June 30, 2019.

Selected highlights for the quarter include:

  • Net income of $1.63 million;
  • Net interest margin of 4.47% for the quarter and 4.57% YTD;
  • Net interest income increased $208,000;
  • Non-Interest Income increased $477,000 or 23.9% compared to the second quarter 2018;
  • Total deposits increased $7.6 million and $39.9 million, respectively for the quarter and for the trailing 12 months.

Mark Hanna, President, commented “Our second quarter earnings of $1.63 million is comparable to the same period last year and an increase of $347,000 versus the first quarter. We continue to enjoy strong pre-tax core operating earnings which increased in 2019 to $3.44 million versus $3.21 million in Q2 2018. Core operating earnings continue to be fueled by a strong net interest margin of 4.47%. The margin did decrease versus the first quarter due to a combination of non-accrual adjustments and an increase in short-term mortgage loans held for sale that offer lower yields than our longer-term loan portfolio. We are also particularly pleased with our increase in non-interest income, which reflects stronger results for both our mortgage and title company subsidiaries.”

Mr. Hanna continued, “Non-performing assets have increased $.9 million versus the first quarter 2019 but have decreased $3.1 million compared to second quarter 2018. During the second quarter we charged $1.6 million to the provision for loan losses. We continue to work through several long-term problem assets and the additional provisioning positions us to move these assets off our balance sheet later this year. The additional provision also captures revisions to our loan loss methodology designed to reflect risks within our loan portfolio resulting from the increase in our non-performing asset ratios in recent quarters.”

Mr. Hanna further stated, “We are excited to announce that our fourteenth branch located at 2782 Stuarts Draft Highway, Stuarts Draft, VA is slated to open later this month. As previously announced our board approved an increase in our quarterly dividend from $.25 to $.26. This dividend is payable on August 16th to shareholders of record as of August 2nd.”

Highlights of our financial performance are included below.

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, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.

This press release may contain “forward-looking statements” as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

  1. The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 21%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.
  2. The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial 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.

Financial Highlights

CONTACT: Neil Hayslett, EVP/Chief Operating Officer
540-896-8941
NHayslett@FMBankVA.com

Barton Black Joins Executive Team of F&M Bank

Barton Black, Chief Strategy and Risk Officer

F&M Bank’s senior leadership team and board of directors welcome Barton Black to a newly created role in the organization as Executive Vice President, Chief Strategy and Risk Officer.

Mr. Black joins F&M Bank with over 25 years of banking experience.  He comes to the bank from Strategic Risk Associates based in Richmond Virginia where he was Managing Director.  He has also held various leadership roles at Capital One, Hibernia National Bank based in New Orleans, and Deloitte.

Mr. Black brings a strong banking background to F&M having focused on Strategy, Finance, Risk, Operations, and Products throughout his career.  In addition to Hibernia and Capital One, he has worked with numerous banks across Virginia, North Carolina, and South Carolina driving bank integrations, developing and supporting growth strategies, enabling operational scale, and strengthening risk management.

As Chief Strategy & Risk Officer at F&M Bank, Barton will be responsible for developing and executing the overall strategy for the corporation and ensuring the bank operates with an appropriate risk management culture that enables the bank to reach its goals.

F&M Bank’s President and CEO, Mark Hanna commented, “We are excited Barton has joined our family at F&M Bank.  He brings a wealth of experience in driving banks towards their ultimate goals.  We have known Barton for five years in a consulting role and know he is a great fit for our organization.”

Mr. Black earned a Bachelor of Science in Accounting at Louisiana State University.  He has CPA certification and is a graduate of BAI’s Graduate School of Banking Operations and IT at Vanderbilt University.

F&M Bank Ranked Nationally by American Banker Magazine

We are happy to report F&M Bank’s placement in the American Banker’s Top 200 list again in 2019 for our 3-year ROAE (Return on Average Equity) of 10.45%. Over 600 banks are included in the American Banker survey, making this recognition quite an honor. This year F&M Bank ranked 116th overall and 6th among the Virginia banks that made the list. Virginia accounts for approximately 40 of the 601 banks included in the survey.

To read the complete article from American Banker Magazine, click here.

First Quarter 2019 Earnings and Dividends

F & M Bank Corp. Announces First Quarter Earnings and Dividend Press Release | 04/29/2019

TIMBERVILLE, VA / ACCESSWIRE / April 29, 2019 / F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter ending March 31, 2019.

Selected highlights for the quarter include:

  • Net income of $1.29 million;
  • Net interest margin of 4.67%;
  • Net interest income increased $270,000;
  • Loans held for investment increased $5.4 million and $21.5 million, respectively for the quarter and trailing 12 months;
  • Total deposits increased $9.5 million and $32.2 million, respectively for the quarter and for the trailing 12 months.

Mark Hanna, President, commented ”Our first quarter earnings of $1,29 million were weighed down by an increase in our provision for loan losses and a write-down on a piece of OREO property. While this is a $686,000 decrease compared to the first quarter of 2018, our pre-tax core operating earnings increased slightly in 2019 to $3.06 million versus $3.020 million in 2018. Core operating earnings excludes provision for loan losses and $268.000 of OREO losses in 2019. Core operating earnings continue to be fueled by a strong net interest margin of 4.67%.”

Mr. Hanna continued, ‘Non-performing loans and assets were virtually flat versus fourth quarter and down significantly versus second and third quarter 2018. We continue to work through several long-term problem assets, many of which pre-date the last recession. During the first quarter we charged $1,450,000 to the provision for loan losses and had net charge-offs of $1,757,000. These charge-offs put us in a better position to move some of these problem assets off of our balance sheet within the coming quarters.”

Mr. Hanna further stated, ”We continue to be busy with new and updated facilities. In March we completed the relocation of our Edinburg branch to a completely renovated office at 300 Stoney Creek Blvd, Edinburg. We anticipate that our Stuarts Draft Office, located at 2782 Stuarts Draft Highway will open in July. While the level of branching that we have undertaken in recent years has added to our overhead costs, we are beginning to realize the benefits of the deposit growth across our footprint as evidenced by our quarterly and year over year deposit growth.

On April 24, 2019 our Board of Directors declared a first quarter dividend of $.25 per share to common shareholders. Based on our most recent trade price of $31.40 per share this constitutes a 3.18% yield on an annualized basis. The dividend will be paid on May 15, 2019, to shareholders of record as of May 1, 2019.”

Highlights of our financial performance are included below.

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, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.

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

2019
2018
Q1Q4Q3Q2Q1
Net Income (000’s)
$1,287$2,910$2,515$1,687$1,973
Net Income available to Common
$1,208$2,807$2,412$1,583$1,870
Earnings per common share
$0.38$0.87$0.75$0.49$0.57
Return on Average Assets
0.67%1.48%1.29%0.91%1.11%
Return on Average Equity
5.68%12.51%10.82%7.38%8.75%
Dividend Payout Ratio exc Special Dividend
65.79%28.83%33.33%51.37%43.53%
Dividend Payout Ratio with Special Dividend
78.35%
Net Interest Margin
4.67%4.68%4.56%4.64%4.78%
Yield on Average Earning Assets
5.54%5.50%5.30%5.29%5.38%
Yield on Average Interest Bearing Liabilities
1.21%1.14%1.04%0.94%0.87%
Net Interest Spread
4.33%4.36%4.26%4.35%4.51%
Provision for Loan Losses (000’s)
$1,450$450$450$1,350$680
Net Charge-offs
$1,757$2,483$283$660$309
Net Charge-offs as a % of Loans
1.09%1.55%0.18%0.42%0.20%
Non-Performing Loans (000’s)
$10,587$10,205$15,240$14,977$7,730
Non-Performing Loans to Total Assets
1.36%1.31%1.96%1.94%1.06%
Non-Performing Assets (000’s)
$12,761$12,648$17,303$17,011$9,758
Non-Performing Assets to Assets
1.64%1.62%2.23%2.21%1.34%
Efficiency Ratio
67.15%63.09%66.71%65.80%66.52%
  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
2019
Unaudited
2018
Interest and Dividend Income
$9,531,545$8,742,630
Interest Expense
1,497,914979,295
Net Interest Income
8,033,6317,763,335
Non-Interest Income
1,789,1841,733,057
Provision for Loan Losses1,450,000680,000
Other Non-Interest Expenses
7,029,4636,476,020
Income Before Income Taxes
1,343,3522,340,372
Provision for Income Taxes
79,062378,634
Less Minority Interest (income)/loss
22,24010,835
Net Income
$1,286,530$1,972,573
Dividend on preferred stock
78,750103,323
Net Income available to common shareholders
$1,207,780$1,869,250
Average Common Shares Outstanding
3,210,0423,255,291
Net Income Per Common Share
.38.57
Dividends Declared
.25.45
BALANCE SHEET
Unaudited
March 31, 2019
Unaudited
March 31, 2018
Cash and Due from Banks
$9,271,766$8,481,487
Interest Bearing Bank Deposits
1,015,015886,054
Federal Funds Sold
5,073,000
Loans Held for Sale
44,528,47733,231,067
Loans Held for Investment
644,213,269622,721,611
Less Allowance for Loan Losses
(4,932,482)(6,415,485)
Net Loans Held for Investment
639,280,787616,306,126
Securities
21,634,29920,039,046
Other Assets
59,004,53950,043,918
Total Assets
$779,807,883$728,987,698
Deposits
$600,835,607$568,599,936
Short Term Debt
30,000,0003,640,000
Long Term Debt
39,024,98148,542,305
Other Liabilities
17,972,29916,544,403
Total Liabilities
687,832,887637,326,644
Preferred Stock
5,591,6237,528,873
Common Equity
86,383,37384,132,181
Stockholders’ Equity
91,974,99691,661,054
Total Liabilities and Stockholders’ Equity
$779,807,883$728,987,698
Book Value Per Common Share
$26.96$25.84
Tangible Book Value Per Common Share
$27.96$25.99

CONTACT:

Neil Hayslett, EVP/Chief Operating Officer
540-896-8941 or NHayslett@FMBankVA.com

SOURCE: F & M Bank Corp.

Officer Promotions at F&M Bank

PRESS RELEASE: Employee Promotions

For Immediate Release

Farmers & Merchants Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective March 25, 2019.

Vice President: 

Kay Dean
Jackie Burner

Assistant Vice President: 

Barbara Bartley

Bank Officer: 

Donna O’Byrne
Kelsey Dean
Sharrie Harrison
Ashley McClure
Jessica Luce

For more information, please email marketing@fmbankva.com.

 

About F&M Bank

F&M Bank serves the Shenandoah Valley with 13 full-service branches, a network of ATMs, and a wide variety of financial services including home loans through F&M Mortgage and titling services through VS Title. 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 over $770 million in assets and boasts over 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 Corp. Announces 4th Quarter Earnings and Dividend

Company Release – 1/31/2019 10:00 AM ET

TIMBERVILLE, VA / ACCESSWIRE / January 31, 2019 / F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ending December 31, 2018.

Selected highlights for the quarter and year to date include:

  • Net income of $2.9 million and $9.1 million, respectively;
  • Non-performing assets dropped $4.65 million or 26.90% during the fourth quarter;
  • Net interest margin rose to 4.68%;
  • Loans held for investment increased $21.8 million YTD;
  • Return on Average Assets of 1.48% and 1.19%, respectively.

Mark Hanna, President, commented “We are pleased to announce fourth quarter and year to date earnings of $2.9 million and $9.1 million, respectively. The fourth quarter results represent a record for quarterly earnings which was driven by an increasing net interest margin. Our margin increased due to our asset sensitive balance sheet which resulted in a $2.6 million increase in interest income and a $935 thousand increase in interest expense. Loans held for investment increased $21.8 million or 3.54% versus the prior year. Deposit growth also accelerated in the second half of the year to $22.1 million or 3.89%.”

Hanna continued, “During the fourth quarter we made significant progress in addressing our problem assets. Previously we had announced that two large loans were placed on non-accrual during the second quarter, resulting in our significant allowance for loan loss funding in the first half of the year. During the fourth quarter we were successful in collecting on one of these loans and we recognized a partial write-down on the other based on the appraised value and continued payment delinquency. As a result of these and other collection efforts our problem assets decreased from $17.3 million to $12.6 million.” Highlights of our financial performance are included below.

Hanna stated, “On January 23rd our Board of Directors declared a fourth quarter dividend of $.25 per share to common shareholders. Based on our most recent trade price of $30.30 per share this constitutes a 3.30% yield on an annualized basis. The dividend will be paid on February 15, 2019, to shareholders of record as of February 1, 2019.”

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, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, VBS Mortgage, LLC (DBA F&M Mortgage) and VSTitle, LLC located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.

This press release may contain “forward-looking statements” as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

F&M Bank Corp.
Key Statistics

20182017
Q4Q3Q2Q1YTDYTD
Net Income (000’s)
$2,910$2,515$1,687$1,973$9,085$9,010
Net Income available to Common
$2,807$2,412$1,583$1,870$8,672$8,595
Earnings per common share
$0.87$0.75$0.49$0.57$2.68$2.63
Return on Average Assets
1.48%1.29%0.91%1.11%1.19%1.62%
Return on Average Equity
12.51%10.82%7.38%8.75%9.89%13.34%
Dividend Payout Ratio exclude Special Dividend
28.83%33.33%51.37%43.53%37.34%26.25%
Dividend Payout Ratio with Special Dividend
78.35%44.81%
Net Interest Margin
4.68%4.56%4.64%4.78%4.65%4.47%
Yield on Average Earning Assets
5.50%5.30%5.29%5.38%5.35%5.05%
Yield on Average Interest Bearing Liabilities
1.14%1.04%0.94%0.87%1.00%0.82%
Net Interest Spread
4.36%4.26%4.35%4.51%4.35%4.23%
Provision for Loan Losses (000’s)
$450$450$1,350$680$2,930$
Net Charge-offs
$2,483$283$660$309$3,735$1,499
Net Charge-offs as a % of Loans
1.55%0.18%0.42%0.20%0.58%0.24%
Non-Performing Loans (000’s)
$10,205$15,240$14,977$7,730$10,205$4,870
Non-Performing Loans to Total Assets
1.31%1.96%1.94%1.06%1.31%0.65%
Non-Performing Assets (000’s)
$12,648$17,303$17,011$9,758$12,648$7,004
Non-Performing Assets to Assets
1.62%2.23%2.21%1.34%1.62%0.94%
Efficiency Ratio
65.06%66.71%65.80%66.52%65.50%63.01%
(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 investment portfolio. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

F & M Bank Corp.
Financial Highlights

For Twelve Months Ended December 31,
INCOME STATEMENT
Unaudited
2018
Audited
2017
Interest and Dividend Income
$36,707,958$34,095,349
Interest Expense
4,832,0633,896,889
Net Interest Income
31,875,89530,198,460
Gross Security Gains (Losses)
(41,914)
Non-Interest Income
8,003,0037,934,620
Provision for Loan Losses
2,930,000
Other Non-Interest Expenses
26,743,76224,719,017
Income Before Income Taxes
10,205,13613,372,149
Provision for Income Taxes
1,110,1694,330,404
Less Minority Interest income
10,05031,461
Net Income
$9,084,917$9,010,284
Dividend on preferred stock
413,191415,331
Net Income available to common shareholders
$8,671,726$8,594,953
Average Common Shares Outstanding
3,238,1773,269,713
Net Income Per Common Share
2.682.63
Dividends Declared
1.20.94
BALANCE SHEET
Unaudited
December 31,
2018
Audited
December 31,
2017
Cash and Due from Banks
$9,521,741$10,622,352
Interest Bearing Bank Deposits
1,390,1811,284,351
Federal Funds Sold
Loans Held for Sale
55,909,81239,774,515
Loans Held for Investment
638,798,885616,974,067
Less Allowance for Loan Losses
(5,239,699)(6,044,365)
Net Loans Held for Investment
633,559,186610,929,702
Securities
21,843,91841,242,965
Other Assets
58,028,44249,416,495
Total Assets
$780,253,280$753,270,380
Deposits
$591,325,319$569,176,519
Short Term Debt
40,116,00025,296,000
Long Term Debt
40,218,07349,732,532
Other Liabilities
16,682,53717,790,459
Total Liabilities
688,341,929661,995,510
Stockholders’ Equity
91,911,35191,274,870
Total Liabilities and Stockholders’ Equity
$780,253,280$753,270,380
Book Value Per Common Share
$26.84$25.73
Tangible Book Value Per Common Share
$26.91$25.64

CONTACT:

Neil Hayslett, EVP/Chief Operating Officer
540-896-8941
NHayslett@FMBankVA.com

SOURCE: F&M Bank Corp

PRESS RELEASE: F&M Bank Welcomes Paul Eberly as Vice President, Agricultural and Rural Programs Leader

PRESS RELEASE: F&M Bank Welcomes Paul Eberly as Vice President, Agricultural and Rural Programs Leader

For Immediate Release

Photo of Paul Eberly

January 16, 2019 | Timberville, VA ‐‐ F&M Bank is pleased to welcome Paul Eberly as Vice President, Agricultural and Rural Programs Leader to its growing organization. Paul brings with him over 13 years of experience in agricultural lending, sales, and credit within the Farm Credit System. Paul will use his expertise to meet the needs of F&M Bank’s agricultural and rural customers in each of its market areas.

“I am excited about the opportunity to work with F&M Bank to be a financial partner for our farming and rural communities.  As the state’s largest agricultural production region, the Shenandoah Valley deserves a financial partner who understands their needs and has a history of over 110 years of building relationships and reinvesting in the community,” said Mr. Eberly.

Raised in Dayton with strong ties to the agricultural community, Paul now resides in Singers Glen with his wife Whitney and four children. Paul is a member of Cooks Creek Presbyterian Church and enjoys spending time with his family on their land. Please look for Paul as he visits our farming communities and seeks input into how F&M Bank can better serve their financial service needs.

About F&M Bank

F&M Bank serves the Shenandoah Valley with 13 full-service branches, a network of ATMs, and a wide variety of financial services including home loans through F&M Mortgage and titling services through VS Title. 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 over $770 million in assets and boasts over 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 Corp. Announces 3rd Quarter Earnings and Dividend

TIMBERVILLE, VA—October 25, 2018 —F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the quarter ending September 30, 2018.

Selected highlights for the quarter and year to date include:

  • Quarterly net income of $2.52 million;
  • Net interest margin of 4.56%, an increase of 8 BPs compared to one year ago;
  • Loans held for investment increased $26.8 million or 4.3% in the last 12 months;
  • Net interest income increased $367 thousand compared to the third quarter 2017;
  • Annualized Return on Average Assets of 1.29% for the third quarter and 1.09% year to date;

Mark Hanna, President and CEO, commented “We are very pleased to announce third quarter earnings of $2.52 million, which is comparable to the same period last year and an increase of $828 thousand versus the second quarter .  Growth in loans held for investment totaled $12.7 million for the third quarter of 2018 and $26.8 million year over year.  Our net interest margin at 4.56% remains strong and continues to be driven by our strong loan to asset ratio.  Non-performing assets increased marginally versus second quarter and we continue to work closely with our borrowers to rehabilitate several larger problem assets.”

Hanna stated, “On October 18, 2018 our Board of Directors declared a third quarter dividend of $.25 per share to common shareholders. Based on our most recent trade price of $34.14 per share this constitutes a 2.93% yield on an annualized basis. The dividend will be paid on November 15, 2018, to shareholders of record as of November 1, 2018.”  Highlights of our financial performance are included below.

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, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, VBS Mortgage (DBA F&M Mortgage) and VSTitle, both of which are located in Harrisonburg, VA.  Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.

This press release may contain “forward-looking statements” as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

(1) The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 34%. 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 investment portfolio. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

SOURCE: F & M Bank Corp.

CONTACT: Neil Hayslett, EVP/Chief Operating Officer

540-896-8941 or NHayslett@FMBankVA.com

Dean Withers Named Community Banker of the Year

On October 15th, the Virginia Association of Community Banks presented Dean Withers, former President and CEO of F&M Bank, with the Community Banker of the Year award.

Originally from Augusta County, VA, Dean graduated from James Madison University and the Louisiana State University Graduate School of Banking. He joined F&M Bank as Vice President of Loans in 1993 and worked his way through the ranks to become F&M Bank’s President and CEO in 2004. Under his leadership, F&M Bank experienced tremendous growth and success. The bank more than doubled in asset size from approximately $350 million to a current value of $770 million.

During this time, he also expanded the Bank’s geographic footprint from six to thirteen locations throughout the Shenandoah Valley and broadened its service offerings to include a mortgage affiliate, a loan production office, an automotive dealer finance division, and a title agency. This growth and expansion evolved organically without ever requiring a bank merger or seeking a tax payer bailout. The progress can be attributed to conservative decision making, sharp business acumen, as well as a vision of staying true to F&M Bank’s roots.

Over the years, Dean has served as Chairman of the VACB and has committed himself to shaping the community banking industry through his involvement with numerous Virginia Bankers Association committees. Dean has also remained active in civic and community organizations.

In December 2017, Dean passed the torch to Mark Hanna, current President and CEO, but remains active on the F&M Bank Board of Directors. You can often find him around the branches dropping by to visit staff or support their customer appreciation events. Sincere with his efforts to shape F&M as a true community bank, Dean is instrumental in seeing the potential in F&M staff and positioning them for success. Dean is well known at F&M Bank for being approachable, a good listener, and a champion of encouragement for personal and professional growth, as well as the impetus for active community involvement for which F&M Bank employees have come to be known.

Of his relationship with Dean, F&M Bank board member Chris Runion, states, “I have had the privilege and pleasure to work with Dean throughout my career and his support and engagement has been instrumental in our business success. The financial performance of the Bank during Dean’s leadership and his commitment to our community speak for itself, however, I believe his defining attribute is his empowerment of people.”

On behalf of all employees at F&M Bank, we would like to congratulate Dean on this well-deserved accomplishment! Your leadership has been exemplary.

 

Dean withers - community banker of the year

F&M Bank Tops Deposits in Harrisonburg-Rockingham County

For the second year in a row, F&M Bank is proud to claim the top spot in deposit share in the Harrisonburg-Rockingham County market. The Federal Deposit Insurance Corp.’s most recent data show that F&M Bank topped all banks in the metropolitan statistical area (MSA) for deposits held.

As of June 30, 2018, F&M Bank held $440.3 million in deposits for customers in its eight Rockingham branches, or 18.75 percent of the total market. That represented a $23.8 million increase over the previous year.

Mark Hanna, President and CEO, states, “Holding the top spot in the MSA is an extremely important accolade, especially as we engage with shareholders and potential investors. This accomplishment speaks to our bank’s integrity and deep-rooted history in Rockingham County. Our community sees value in supporting a local, financial institution.”

In 2017, F&M Bank unseated large regional and national financial institutions to claim the top spot, and it is quite an accomplishment for a small, community bank to maintain this position. Bank leadership credits success to the institution’s ability to reflect the changing demographics of the community.

The bank broadened its reach to the younger business community by developing a community advisory board to draw candid feedback from active community members and business leaders under 40. Holly Thorne, Marketing Director, states, “The advisory board members are our community, and F&M understands the value they bring to the table. It’s a logical choice and natural fit to engage them in helping to shape our bank’s future.”

Media Contact: Neil Hayslett, EVP/Chief Operating Officer 540-896-8941 or NHayslett@FMBankVA.com