F&M Bank Welcomes Mike Wilkerson and Jonathan Reimer to Winchester Team

F&M Bank is excited to announce its expansion into the Northern Shenandoah Valley market. Mike Wilkerson, Chief Strategy Officer & Northern Market Executive, and Jonathan Reimer, Vice President & Commercial Relationship Manager, will spearhead F&M Bank’s growth into Winchester and Frederick County.

“We are thrilled to welcome Mike Wilkerson and Jonathan Reimer to F&M Bank,” said Mark Hanna, President & CEO. “The greater Winchester area is vibrant, boasting a thriving, local economy and is contiguous to our Shenandoah County footprint. As a Commercial Relationship Manager, Mr. Reimer has successfully cultivated and developed community partnerships, and under Mr. Wilkerson’s guidance and direction, we look forward to continued success.”

Mike Wilkerson | EVP F&M Bank

 

Mike Wilkerson joins F&M Bank with near 40 years of banking experience to include retail, small business, commercial lending, and leadership. He has successfully built and developed teams throughout Western Virginia and the Shenandoah Valley.

“F&M Bank was the right choice for my career based on the family-oriented culture, exceptional leadership team, and the bank’s progressive momentum,” said Mr. Wilkerson. “The organization is focused on serving the Shenandoah Valley and remaining an independent bank for the long-term.”

A current resident of Winchester, Mr. Wilkerson plays an active role in the community. He volunteers for numerous organizations and currently serves on the Virginia Community College Foundation Board as well as a member of the Finance & Investment Committee.

 

Jon Reimer

 

Jonathan Reimer brings 10 years of commercial lending experience to F&M Bank. He began his career as a credit analyst, transitioned into small business lending, and most recently served the Winchester market as a commercial relationship manager.

“F&M Bank has a long tradition of intimately understanding its customers and their businesses. This merges nicely with my banking career and my team’s approach to serving our clients,” said Mr. Reimer. “I look forward to helping F&M Bank enter Winchester and delivering Banking You Love from People Who Care!”

Mr. Reimer is dedicated to community service. He currently sits on the board of directors for the Shenandoah Valley Discovery Museum and is an active member of the Winchester Rotary Club.

F&M Bank Announces Employee Promotions

F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective December 17, 2020.

Bank Officer:

  • Robin Layman, Branch Specialist (Edinburg)

Assistant Vice President:

  • Carlie Kelly, Credit Analyst
  • Ashley McClure, Branch Manager (Bridgewater)
  • Emily Rhodes, Credit Analyst
  • Mary Pavlovskaya, Business Deposit Services Officer

Additionally, we would like to congratulate Angela Smith on her recent promotion to Branch Manager of the North Augusta office.

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

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the third quarter ending September 30, 2020 and third quarter dividend to shareholders.

As the global pandemic continues, the company continually assesses our procedures to maintain the safety of our customers, employees and community while serving their financial needs. Farmers & Merchants Bank continues to operate our branches in a drive-thru only capacity daily, with courier pick up and by appointment lobby transactions.

As of September 30, 2020, we had processed 717 Paycheck Protection Program (PPP) loans for a balance of $62.6 million. These loans are funded by participation in the Federal Reserve Paycheck Protection Program Lending Facility. In addition, we have processed 922 individual loan deferrals. As of September 30, 2020, 99 loans remain in deferral with a balance of $19.1 million which represents 3.1% of loans outstanding exclusive of PPP balances.

Selected financial highlights for the quarter include:

  • Net income of $2.21 million.
  • Net interest margin of 3.60%.
  • Total deposits increased $26.9 million and $175.1 million, respectively for the quarter and for the trailing 12 months.
  • Nonperforming loans decreased to 0.42% of total assets at the end of the quarter from 0.45% on 6/30/20 and 0.98% on 9/30/2019.
  • Allowance for loan losses totaled 1.57% of loans held for investment (1.72% excluding PPP loans).

Mark Hanna, President, commented “Our third quarter earnings of $2.21 million is a slight improvement over second quarter for core earnings ($2.06 million), second quarter total earnings ($2.63 million) included recognition of $567,000 for implementation of a mortgage rate lock derivative associated with our mortgage company pipeline. Our net interest margin of 3.60% shows a historical decline but remains strong especially given the changes in our balance sheet. F&M’s liquidity has increased significantly over the last four quarters and we are implementing strategic solutions to leverage these assets including deploying $102.7 million into the investment portfolio since year end 2019. Despite the current low-rate environment, these strategies should augment our net interest margin in the future.”

Mr. Hanna continued, “Nonperforming loans have improved dramatically over prior year, decreasing $3.7 million since third quarter of 2019, and $1.5 million since year end 2019. We feel these efforts put F&M in a strong position to manage the current economic uncertainty while seeking opportunities for continued growth in the communities we serve.”

On October 23, 2020 our Board of Directors declared a third quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $19.21 per share this constitutes a 5.41% yield on an annualized basis. The dividend will be paid on November 30, 2020, to shareholders of record as of November 14, 2020.”

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s eleven banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.

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

2020 2019
Q3 Q2 Q1 YTD Q3 Q2 Q1 YTD
Net Income (000’s)
$ 2,207 $ 2,626 $ 1,189 $ 6,022 $ (186 ) $ 1,634 $ 1,287 $ 2,735
Net Income available to Common
$ 2,142 $ 2,560 $ 1,123 $ 5,825 $ (265 ) $ 1,556 $ 1,208 $ 2,499
Earnings per common share – basic
$ 0.67 $ 0.80 $ 0.35 $ 1.82 $ (0.08 ) $ 0.48 $ 0.38 $ 0.78
Earnings per common share – diluted
$ 0.65 $ 0.76 $ 0.35 $ 1.76
Return on Average Assets
0.88 % 1.17 % 0.58 % 0.81 % -0.09 % 0.83 % 0.67 % 0.46 %
Return on Average Equity
9.44 % 11.50 % 5.23 % 8.68 % -0.81 % 7.12 % 5.68 % 4.00 %
Dividend Payout Ratio
38.81 % 32.50 % 74.29 % 42.86 % -325.00 % 52.08 % 65.79 % 97.44 %
Net Interest Margin
3.33 % 3.55 % 3.97 % 3.60 % 4.39 % 4.47 % 4.67 % 4.52 %
Yield on Average Earning Assets
3.94 % 4.20 % 4.88 % 4.31 % 5.35 % 5.42 % 5.54 % 5.46 %
Yield on Average Interest Bearing Liabilities
0.87 % 0.92 % 1.27 % 1.00 % 1.34 % 1.33 % 1.21 % 1.29 %
Net Interest Spread
3.07 % 3.28 % 3.61 % 3.31 % 4.01 % 4.09 % 4.33 % 4.17 %
Provision for Loan Losses (000’s)
$ 1,000 $ 800 $ 1,500 $ 3,300 $ 3,750 $ 1,600 $ 1,450 $ 6,800
Net Charge-offs
$ 208 $ 203 $ 453 $ 864 $ 817 $ 483 $ 1,757 $ 3,057
Net Charge-offs as a % of Loans
0.12 % 0.12 % 0.30 % 0.17 % 0.52 % 0.30 % 1.09 % 0.65 %
Non-Performing Loans (000’s)
$ 4,254 $ 4,465 $ 4,168 $ 4,254 $ 7,978 $ 11,688 $ 10,587 $ 7,978
Non-Performing Loans to Total Assets
0.42 % 0.45 % 0.50 % 0.42 % 0.98 % 1.45 % 1.36 % 0.98 %
Non-Performing Assets (000’s)
$ 4,420 $ 5,625 $ 5,504 $ 4,420 $ 9,649 $ 13,657 $ 12,761 $ 9,649
Non-Performing Assets to Assets
0.44 % 0.57 % 0.66 % 0.44 % 1.19 % 1.69 % 1.64 % 1.19 %
Efficiency Ratio
65.35 % 65.33 % 70.51 % 66.94 % 67.63 % 65.32 % 67.15 % 66.70 %
  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 Nine Months
Ended September 30,
INCOME STATEMENT
Unaudited
2020
Unaudited
2019
Interest and Dividend Income
$ 27,280,319 $ 29,279,627
Interest Expense
4,515,221 5,025,175
Net Interest Income
22,765,098 24,254,452
Non-Interest Income
9,016,182 6,909,369
Provision for Loan Losses
3,300,000 6,800,000
Impairment of long lived assets
19,193
Other Non-Interest Expenses
21,788,981 21,597,748
Income Before Income Taxes
6,673,106 2,766,076
Provision for Income Taxes
545,418 (74,786)
Less Minority Interest (income)/loss
(105,193) (106,161)
Net Income
$ 6,022,495 $ 2,734,661
Dividend on preferred stock
197,194 235,966
Net Income available to common shareholders
$ 5,825,301 $ 2,498,695
Average Common Shares Outstanding
3,197,718 3,175,192
Net Income Per Common Share
Dividends Declared
1.82.78 .78.76
BALANCE SHEET
Unaudited
September 30, 2020
Unaudited
September 30, 2019
Cash and Due from Banks
$ 14,504,566 $ 14,324,290
Interest Bearing Bank Deposits
1,237,866 1,599,711
Federal Funds Sold
73,407,000 12,963,000
Loans Held for Sale
88,038,925 80,862,723
Loans Held for Investment 672,524,536 631,828,822
Less Allowance for Loan Losses
(10,825,739) (8,982,258)
Net Loans Held for Investment
661,698,797 622,846,564
Securities
118,888,764 20,084,814
Other Assets
57,647,889 60,556,108
Total Assets
$ 1,015,423,807 $ 813,237,210
Deposits
$ 793,535,570 $ 618,434,553
Short Term Debt
20,000,000
Long Term Debt
106,510,013 64,308,789
Other Liabilities
21,698,045 19,600,307
Total Liabilities
921,743,628 722,343,649
Preferred Stock
4,591,623 5,591,623
Common Equity
89,088,556 85,301,938
Stockholders’ Equity
93,680,179 90,893,561
Total Liabilities and Stockholders’ Equity
$ 1,015,423,807 $ 813,237,210
Book Value Per Common Share
$ 27.85 $ 26.86
Tangible Book Value Per Common Share
$ 27.84 $ 26.89

CONTACT:

Carrie Comer
EVP/Chief Financial Officer
540-896-8941 or ccomer@fmbankva.com

F&M Bank Announces Officer Promotions

F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective September 24, 2020.

Senior Vice President: 

  • Bobby Williams, Agricultural & Rural Programs Leader

Vice President: 

  • Donna Brown, Commercial Relationship Manager
  • Jordan Dean, Commercial Relationship Manager
  • Ryan May, Relationship Manager (Dealer Finance)

Assistant Vice President:

  • Jason Crum, Branch Manager (Stuarts Draft)
  • Mary Campbell, Assistant Branch Manager (Broadway)
  • Debbie Koogler, Branch Manager (Myers Corner, Staunton)
  • Angela Smith, Assistant Branch Manager (North Augusta, Staunton)
  • Teri Hasley, Deposit Operations Manager

F&M Bank Welcomes Katherine Preston and Kevin Nixon to Commercial Team

We are excited to welcome Katherine Preston, Senior Vice President & Valley Market Executive, and Kevin Nixon, Vice President & Commercial Relationship Manager, to the F&M Bank family.

Katherine PrestonKatherine joins the Senior Leadership Team and brings with her over 20 years of banking experience to include retail, small business, and commercial lending, most recently serving as Vice President and Business Services Officer at BB&T.

“I am thrilled to join a talented team and support the businesses and organizations in Rockingham, Augusta and Shenandoah Counties as Valley Market Executive. In my new role, I look forward to growing strong professional partnerships and fostering continued success in the communities I know and love.”

“We are proud to have Katherine come on board as the Shenandoah Valley Market Executive,” says Garth Knight, Executive Vice President and Chief Lending Officer. “Katherine brings two decades of experience serving her commercial clients at the highest level. She also is a tremendous leader, developing team members and building relationships in her community. The future is bright at F&M Bank with Katherine leading our Commercial Team!”

A lifetime resident of the Shenandoah Valley, Katherine is committed to volunteering and taking part in community investment programs that benefit local needs. She has participated in the United Way Day of Caring and Dancing with the Stars of the ‘Burg in 2017 to support the Harrisonburg-Rockingham Child Day Care Center. She also has enjoyed dedicating 18 years to her daughter’s school and PTSA boards.

Katherine is also a graduate of the Virginia Bankers School of Bank Management, RMA-ECU Commercial Lending School, and the BB&T Banking School at Wake Forest University. Her strong connection to the community and her extensive knowledge of the industry will be an asset as she leads the F&M Commercial Team to continued success throughout the Shenandoah Valley.

Kevin NixonKevin Nixon, Vice President and Commercial Relationship Manager, to the Harrisonburg-Rockingham County Commercial Team. Kevin brings with him over 13 years of commercial lending experience, most recently serving as a Business Development Officer at First Bank.

“I look forward to helping the team here at F&M Bank continue providing excellent customer service and community support. I hope to carry on the proud history that F&M Bank is known for in the Shenandoah Valley,” says Kevin.

“We are excited to welcome Kevin Nixon to the F&M family as a Commercial Relationship Manager,” says Garth Knight, Executive Vice President and Chief Lending Officer. “Kevin brings many years of experience serving clients in the Shenandoah Valley. He is community driven and exemplifies what it means to be a leader.”

Active in his community, Kevin holds membership with the Rockingham County Rotary and Covenant Presbyterian Church. He is a past board member for the United Way of Greater Augusta.

Prior to his career in banking, Kevin owned and operated a business upon receiving his Master of Business Administration degree from Medaille College. His commercial lending knowledge paired with his entrepreneurial background will be a great asset to the F&M team.

F&M Bank Announces the Senior Leadership Promotions of Paul Eberly and Bobby Williams

F&M Bank is excited to announce the Senior Leadership promotions of Paul Eberly and Bobby Williams.

Paul Eberly blog

 

Paul Eberly, Senior Vice President and Agricultural and Programs Leader, will assume the position of Executive Vice President & Chief Credit Officer following the retirement of Ed Strunk. Paul will lead the credit administration, retail loan administration, and loan operations departments.

“We are thrilled to welcome Paul to the executive team,” said Mark Hanna, President & CEO. “He has done a remarkable job developing the Agricultural Division. Under his leadership, our loan portfolio has grown exponentially as his passion for delivering outstanding customer service is evident. I look forward to working alongside Paul at the executive level.”

Paul will be an integral part of the Agricultural Division and will continue to provide consultative credit solutions to the community in his new role.

 

Bobby Williams blog

 

 

Bobby Williams, Vice President and Commercial Relationship Manager, will assume the position of Agricultural and Rural Programs Leader as Paul Eberly transitions to executive leadership. Bobby joined F&M Bank in April of 2020, and his connection to the ag community has been a great asset to the team.

“Bobby has been a tremendous banker for many years, and we are excited to announce his promotion,” said Garth Knight, Executive Vice President and Chief Lending Officer. “In a very short time at F&M Bank, he has done an outstanding job growing the ag portfolio. He is a great leader and perfect candidate to guide our Agricultural Division for many years to come.”

F&M Bank Welcomes Brooke Zirk to Commercial Team

Brooke Zirk

F&M Bank is pleased to welcome Brooke Zirk, Vice President and Commercial Relationship Manager, to the Harrisonburg and Rockingham County Commercial Team. Brooke brings with her over 15 years of banking experience to include both consumer and commercial lending. Her consultative approach to finance will be an asset to the F&M team.

“I am so happy to be joining the team at F&M Bank where people and communities are our top priorities,” said Brooke. “Throughout my banking career in the Shenandoah Valley, I have developed wonderful relationships with my customers. I look forward to continuing those relationships and giving back to my community.”

“We are thrilled to welcome Brooke to the F&M family. She brings a wealth of banking experience and a deep commitment to serving her customers and community. Brooke is a tremendous asset to have, and we look forward to her building long-lasting relationships at F&M,” commented Garth Knight, Executive Vice President and Chief Lending Officer.

Originally from Roanoke, Brooke relocated to Harrisonburg to attend Bridgewater College. She currently resides with her husband, two boys, and their dog in Broadway. In her free time, Brooke loves biking, painting, and spending time with her family.

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

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the second quarter ending June 30, 2020 and second quarter dividend to shareholders.

As the global pandemic continues, the company continually assesses our procedures to maintain the safety of our customers, employees and community while serving their financial needs. Farmers & Merchants Bank continues to operate our branches in a drive-thru only capacity daily, with courier pick up and by appointment lobby transactions.

As of June 30, 2020, we had processed 676 Paycheck Protection Program (PPP) loans for a balance of $59.9 million. These loans are funded by participation in the Federal Reserve Paycheck Protection Program Lending Facility. In addition, we have processed 922 individual loan deferrals. As of June 30, 2020, 155 loans remain in deferral with a balance of $24.5 million.

Selected financial highlights for the quarter include:

  • Net income of $2.63 million.
  • Net interest margin of 3.55%.
  • Total deposits increased $87.3 million and $158.2 million, respectively for the quarter and for the trailing 12 months.
  • Nonperforming loans decreased to 0.45% of total assets at the end of the quarter from 0.50% on 3/31/20 and 1.45% on 6/30/2019.
  • Allowance for loan losses are 1.47% of loans held for investment (1.61% excluding PPP loans).

Mark Hanna, President, commented “Our second quarter earnings of $2.63 million is an improvement over the first quarter which was more heavily weighed down by provision expenses related to COVID-19. The second quarter also reflects recognition of $267,000 in Small Business Administration fees related to PPP loans and recognition of $567,000 for implementation of a mortgage rate lock derivative associated with our mortgage company pipeline. Our net interest margin of 3.55% shows a historical decline but still remains strong in the current environment. Our balance sheet liquidity has increased significantly over the last three quarters and we are implementing strategic solutions to leverage these assets including deploying $73.5 million into the investment portfolio in the second quarter. These strategies should improve out net interest margin in the future.”

Mr. Hanna continued, ‘Nonperforming loans have improved dramatically over prior year, decreasing $7.2 million since second quarter of 2019, and also decreasing $1.3 million since year end 2019″.

On July 24, 2020 our Board of Directors declared a first quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $18.50 per share this constitutes a 5.62% yield on an annualized basis. The dividend will be paid on August 31, 2020, to shareholders of record as of August 14, 2020.”

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s eleven (as of July 31, 2020) 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 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

2020 2019
Q2 Q1 YTD Q2 Q1 YTD
Net Income (000’s)
$ 2,626 $ 1,189 $ 3,815 $ 1,634 $ 1,287 $ 2,921
Net Income available to Common
$ 2,560 $ 1,123 $ 3,683 $ 1,556 $ 1,208 $ 2,764
Earnings per common share – basic
$ 0.80 $ 0.35 $ 1.15 $ 0.48 $ 0.38 $ 0.86
Earnings per common share – diluted
$ 0.76 $ 0.35 $ 1.11 $ 0.47 $ 0.37 $ 0.84
Return on Average Assets
1.17 % 0.58 % 1.71 % 0.83 % 0.67 % 0.74 %
Return on Average Equity
11.50 % 5.23 % 16.69 % 7.12 % 5.68 % 6.40 %
Dividend Payout Ratio excluding Special Dividend
32.50 % 74.29 % 45.22 % 52.08 % 65.79 % 58.14 %
Net Interest Margin
3.55 % 3.97 % 3.75 % 4.47 % 4.67 % 4.57 %
Yield on Average Earning Assets
4.20 % 4.88 % 4.52 % 5.42 % 5.54 % 5.48 %
Yield on Average Interest Bearing Liabilities
0.92 % 1.27 % 1.09 % 1.33 % 1.21 % 1.26 %
Net Interest Spread
3.28 % 3.61 % 3.43 % 4.09 % 4.33 % 4.22 %
Provision for Loan Losses (000’s)
$ 800 $ 1,500 $ 2,300 $ 1,600 $ 1,450 $ 3,050
Net Charge-offs
$ 203 $ 453 $ 656 $ 483 $ 1,757 $ 2,240
Net Charge-offs as a % of Loans
0.12 % 0.30 % 0.20 % 0.30 % 1.09 % 0.70 %
Non-Performing Loans (000’s)
$ 4,465 $ 4,168 $ 4,465 $ 11,688 $ 10,587 $ 11,688
Non-Performing Loans to Total Assets
0.45 % 0.50 % 0.45 % 1.45 % 1.36 % 1.45 %
Non-Performing Assets (000’s)
$ 5,625 $ 5,504 $ 5,625 $ 13,657 $ 12,761 $ 13,657
Non-Performing Assets to Assets
0.57 % 0.66 % 0.57 % 1.69 % 1.64 % 1.69 %
Efficiency Ratio
65.33 % 70.51 % 67.79 % 65.32 % 67.15 % 66.20 %

(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 Six Months Ended
June 30,
INCOME STATEMENT
Unaudited
2020
Unaudited
2019
Interest and Dividend Income
$ 18,101,844 $ 19,313,133
Interest Expense
3,090,815 3,224,392
Net Interest Income
15,011,029 16,088,741
Non-Interest Income
5,681,703 4,265,082
Provision for Loan Losses
2,300,000 3,050,000
Impairment of long lived assets
19,193
Other Non-Interest Expenses
14,385,236 14,121,689
Income Before Income Taxes
3,988,303 3,182,134
Provision for Income Taxes
173,250 232,317
Less Minority Interest (income)/loss
(28,589 )
Net Income
$ 3,815,053 $ 2,921,228
Dividend on preferred stock
131,746 157,373
Net Income available to common shareholders
$ 3,683,307 $ 2,763,855
Average Common Shares Outstanding
3,199,183 3,200,119
Net Income Per Common Share
1.15 .86
Dividends Declared
.52 .50
BALANCE SHEET
Unaudited
June 30,
2020
Unaudited
June 30,
2019
Cash and Due from Banks
$ 16,950,810 $ 8,075,243
Interest Bearing Bank Deposits
1,199,474 768,029
Federal Funds Sold
68,548,000 5,937,000
Loans Held for Sale
90,403,042 78,405,674
Loans Held for Investment
661,528,802 636,407,632
Less Allowance for Loan Losses
(10,033,466 ) (6,050,257 )
Net Loans Held for Investment
651,495,336 630,357,375
Securities
93,381,484 23,524,719
Other Assets
59,623,971 59,880,840
Total Assets
$ 981,602,117 $ 806,948,880
Deposits
$ 766,651,982 $ 608,470,178
Short Term Debt
40,000,000
Long Term Debt
100,585,081 47,916,889
Other Liabilities
22,063,159 18,487,049
Total Liabilities
889,300,222 714,874,116
Preferred Stock
4,591,623 5,591,623
Common Equity
87,710,272 86,483,141
Stockholders’ Equity
92,301,895 92,074,764
Total Liabilities and Stockholders’ Equity
$ 981,602,117 $ 806,948,880
Book Value Per Common Share
$ 27.44 $ 27.18
Tangible Book Value Per Common Share
$ 27.51 $ 27.23

CONTACT:
F & M Bank Corp.
Carrie Comer, EVP & Chief Financial Officer
540-896-8941 or ccomer@fmbankva.com

Garth Knight Joins Executive Team of F&M Bank

F&M Bank’s senior leadership team and board of directors welcome Garth Knight to the organization as Executive Vice President and Chief Lending Officer. Mr. Knight joins F&M Bank with over 15 years of banking experience. He comes to the organization from Wells Fargo, based in McLean, Virginia, where he served as Business Acquisition Manager for the Mid-Atlantic region.

Garth Knight

Prior to his role as Business Acquisition Manager, Mr. Knight oversaw the Carolinas Region as a Business Banking Manager. His experience also extends to retail, mortgage and auto lending in South Carolina, Georgia and Florida markets. Mr. Knight earned a Bachelor of Arts in Communications at Newberry College in Newberry, South Carolina.

Mr. Knight’s strong lending background, proven sales strategy, and leadership will be an asset to the executive team. As Chief Lending Officer, Mr. Knight will monitor the bank’s loan portfolio while guiding the business development team to grow strong commercial relationships.

“I am thrilled to be part of the F&M family”, says Mr. Knight. “The Shenandoah Valley is an area I have grown to love over the years, and I could not be more excited to become a member of this outstanding community.”

F&M Bank’s President and CEO, Mark Hanna commented, “We are delighted to welcome Garth to the F&M Bank family. His skills and experience will be an asset to lead our sales efforts as we aggressively seek to grow strong commercial banking relationships in the Shenandoah Valley. Garth has a background successfully coaching, mentoring, and building teams that will bring the best service possible to our client relationships.”