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

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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.

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

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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

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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

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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 

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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 that 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, consisting of John Sargent, SVP, and Jonathan Reimer, SVP, Commercial Relationship Managers; and Gail Pryde, Business Relationship Specialist.

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.

National Ag Day with F&M Bank

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National Ag Day

 

National Ag Day is March 22, 2022!  Virginia’s agricultural production is one of the most diverse in the nation. Many Virginia commodities and products rank in the top 10 among all U.S. states.  Our local farmers, and other agriculture experts, represent a leading group of industry movers and shakers that support our economy and sustain life for our region, and beyond.

 

 

Virginia is home to over 43,000 farms that cover nearly 8 million acres across the Commonwealth.  98% of all farms in the United States are family-owned and operated.  These families sacrifice a lot to feed our communities and sustain life throughout our region.  F&M strives to thank farmers throughout the year and we encourage our community to take a moment next week to thank a local farmer as we celebrate our farming community!

 

Farming is the biggest private industry in Virginia

 

F&M has been supporting local farmers for over 100 years.  We’ve helped farmers navigate several economic cycles from recessions and droughts to boom periods with flourishing production.  These experiences and partnerships have helped us develop tailored products that include equipment financing, land expansion, cattle purchases, waste management funding, and lines of credit.

 

Learn More about our line of Ag products, or contact one of our Agri-Business specialists at agribusiness@fmbankva.com.

 

 

 

F&M Bank Receives Greater Augusta County Chamber of Commerce’s Business Excellence Award

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Augusta Regional Chamber Announces 2022 Business Excellence Awards Winners

Reprinted with permission from the Greater Augusta Regional Chamber of Commerce

Fishersville, February 16, 2021– As the premier business organization serving Augusta County, Staunton, and Waynesboro, the Greater Augusta Regional Chamber of Commerce represents over 550 diverse businesses that work together to stimulate the economy for this outstanding community. Through the annual Business Excellence Awards, the Chamber is able to recognize the outstanding success of exemplary businesses and individual leaders. Courtney Thompson, President & CEO of the Chamber said, “We are so excited to announce our Business Excellence award winners. We had numerous excellent businesses, organizations and individuals nominated this year and these winners really represent the best of the best.”

The Chamber is very proud to announce the winners of the 2022 Business Excellence Awards:

● New Business of the Year: RX Coffee & More
● Small Business of the Year: Staunton Innovation Hub
● Large Business of the Year: F & M Bank
● Woman Owned Business of the Year: SweetNanaCakes
● Nonprofit of the Year: Blue Ridge Area Food Bank
● Young Professional of the Year: Debbie Irwin, Shenandoah Community Capital Fund
● Citizen of the Year: Dan Layman, Community Foundation of the Central Blue Ridge

The Chamber will honor each of these winners and deliver its year in review at the Business Excellence Awards on March 10 at Hotel 24 South. For more information about the winners or the event, contact Courtney Thompson at (540) 324-1133 or courtney@augustava.com.

F&M Bank to Participate in the 2022 VBA Bank Day Scholarship Program

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VBA Bank Day Scholarship Program

The third Tuesday in March was declared Bank Day by the Virginia General Assembly in 1991 and F&M Bank has been proud to host students for this important program.  Each year this scholarship program awards local Virginia high school rising seniors the opportunity to spend time learning about the banking industry. F&M Bank members will educate these students on their job roles and the various bank departments; including the loan process, the importance of good credit, the profile of a qualified borrower, and how F&M Bank is involved in the community.

From their experience, participating students will write an essay for the chance to win a scholarship. Six regional scholarships of $2,500 each will be awarded, and from those six winners an overall statewide winner will be chosen. The statewide winner will receive an additional $5,000 scholarship – $7,500 in total. There will also be six honorable mention scholarships of $1,000 each. In all, twelve students will receive scholarships totaling $26,000.

If interested in signing up for the program, click here.

For more information, or if you have any questions, please contact Nicole Davis, Marketing Specialist, at ndavis@fmbankva.com or 540-437-3471.

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

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

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

Selected financial highlights include:

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

Balance Sheet

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

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

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

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

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

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

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

Income Statement

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

Net interest income reflects year over year growth. As yields on earning assets continue to decline the Company has been able to support net interest income with savings in interest expense and growth in the investment portfolio while seeking opportunities to leverage the growth in liquidity into higher yielding assets.

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

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

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

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

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

Paycheck Protection Program

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

Preferred Stock Redemption

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

Dividends Declaration

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

F & M Bank Corp. is an independent, locally owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s thirteen banking offices in Rockingham, Shenandoah, and Augusta Counties, Virginia and the city of Winchester, VA. The Bank also provides additional services through a loan production office located in Penn Laird, VA, a loan production office in Winchester, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-1705.

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

F & M Bank Corp.
Key Statistics

 2021 2020
Q4 Q3 Q2 Q1 YTD YTD
Net Income (000’s)
 $ 1,380 $ 2,337 $ 3,220 $ 3,801 $ 10,738 $ 8,788
Net Income available to Common
 $ 1,379 $ 2,272 $ 3,154 $ 3,736 $ 10,541 $ 8,525
Earnings per common share – basic
 $ 0.39 $ 0.71 $ 0.98 $ 1.17 $ 3.25 $ 2.66
Earnings per common share – diluted
 $ 0.40 $ 0.68 $ 0.93 $ 1.11 $ 3.12 $ 2.56
Return on Average Assets
 0.46 % 0.81 % 1.22 % 1.56 % 0.98 % 0.92 %
Return on Average Equity
 5.42 % 9.18 % 13.06 % 15.96 % 10.84 % 9.46 %
Dividend Payout Ratio excluding Special Dividend
 66.67 % 36.62 % 26.53 % 22.22 % 32.00 % 39.10 %
Net Interest Margin
 2.48 % 2.95 % 3.13 % 3.44 % 3.00 % 3.61 %
Yield on Average Earning Assets
 3.15 % 3.35 % 3.56 % 3.92 % 3.41 % 4.27 %
Yield on Average Interest Bearing Liabilities
 0.96 % 0.57 % 0.62 % 0.70 % 0.60 % 0.94 %
Net Interest Spread
 2.19 % 2.78 % 2.94 % 3.22 % 2.81 % 3.33 %
Provision for Loan Losses (000’s)
 $ (590 ) $ (235 ) $ (1,250 ) $ (725 ) $ (2,800 ) $ 3,300
Net Charge-offs/(recoveries)
 $ 72 $ 61 $ (272 ) $ 45 $ (94 ) $ 1,215
Net Charge-offs/(recoveries) as a % of Loans
 0.04 % 0.04 % -0.16 % 0.03 % -0.01 % 0.18 %
Non-Performing Loans (000’s)
 $ 5,508 $ 5,430 $ 5,532 $ 5,783 $ 5,508 $ 6,537
Non-Performing Loans to Total Assets
 0.45 % 0.46 % 0.50 % 0.57 % 0.45 % 0.68 %
Non-Performing Assets (000’s)
 $ 5,508 $ 5,430 $ 5,532 $ 5,783 $ 5,508 $ 6,537
Non-Performing Assets to Assets
 0.45 % 0.46 % 0.50 % 0.57 % 0.45 % 0.68 %
Efficiency Ratio
 82.13 % 75.99 % 76.07 % 68.00 % 75.44 % 67.51 %
  1. The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 21%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.
  2. The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investments portfolio and Other Real Estate Owned. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

F & M Bank Corp.
Financial Highlights

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

CONTACT:
Carrie Comer EVP/Chief Financial Officer
540-896-1705 or ccomer@fmbankva.com

SOURCE: F & M Bank Corp.

View source version on accesswire.com:
https://www.accesswire.com/685279/F-M-Bank-Corp-Announces-Record-Annual-Earnings-For-2021

F&M Bank & Old Dominion Realty Announce Collaboration and Community Challenge to Support Dolly Parton’s Imagination Library

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TIMBERVILLE, VA., December 8, 2021 — F&M Bank Corp. (OTCQX:FMBM), holding company for F&M Bank, and Old Dominion Realty are excited to collaborate on supporting Dolly Parton’s Imagination Library (DPIL).  DPIL is a monthly book gifting program that mails free, high-quality books to children, ages 5 and under, currently residing in Harrisonburg and Rockingham County. This new initiative set forth locally by The Community Foundation of Harrisonburg and Rockingham County intends to create excitement about reading and build literacy for local youth.

Old Dominion Realty and F&M Bank are donating $2,500 each and are challenging local businesses and community members to also contribute to the cause. F&M Bank has also committed to double its contribution if community businesses collectively raise $20,000 by year-end 2021.

“We are thrilled to support the advancement of education among tomorrow’s leaders within our own community. The Dolly Parton Imagination Library will provide an early love for reading and we hope other local businesses will step forward in support,” said Mark Hanna, CEO F&M Bank. Harvard University Center on the Developing Child states that 85% of a child’s intellect, social skills, and personality develop during the first five years of life. Communities with the Imagination Library have documented a 70% increase in families reading to their children, as reported by The Community Foundation of Harrisonburg and Rockingham County.

To donate and learn more about the benefits of Dolly Parton’s Imagination Library visit https://cfhr.fcsuite.com/erp/donate/list

Mr. Hanna is available for further comment. Please contact Jacob Mowry at marketing@fmbankva.com or Jessica Herring at Jessica Herring Jessica@odrva.com.