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

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TIMBERVILLE, VA / ACCESSWIRE / January 26, 2022 /ย 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 fourthย 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 orย ccomer@fmbankva.com

SOURCE:ย F & M Bank Corp.

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F&M Bank & Old Dominion Realty Announce Collaboration and Community Challenge to Support Dolly Partonโ€™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 Partonโ€™s Imagination Library (DPIL).ย  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.

โ€œWe are thrilled to support the advancement of education among tomorrowโ€™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,โ€ said Mark Hanna, CEO F&M Bank. Harvard University Center on the Developing Child states that 85% of a childโ€™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 Partonโ€™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.

 

Press Release: Daniel Scott joins Agricultural and Rural Programs Team

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For Immediate Release | November 10, 2021 | Timberville, VA โ€โ€ F&M Bankโ€™s executive leadership is pleased to welcome Daniel Scott to its growing agricultural team. In spring 2021, Daniel joined the company as a Commercial Relationship Manager and recently assumed oversight of the organizationโ€™s southern agricultural market, which includes Augusta County and adjacent counties.

Daniel brings a strong background to F&M with over three yearsโ€™ experience in the banking industry, all of which have been focused in agricultural financing. Daniel graduated from Eastern Mennonite University, receiving a Bachelor of Science in Business Administration and Minor in Accounting and Human Resource Management. In his role at F&M, Daniel looks forward to building relationships with many of the Valleyโ€™s Ag Producers, which is his top priority. โ€œThis Valley has been built on hand-shake commitments and hard work. By being a consistent and reliable resource, I can help each farmer continue to grow in any direction they want to go. In his spare time, Daniel enjoys time with his family,ย  going hunting, and playing golf.

โ€œWe are thrilled to welcome Daniel to F&M Bank ag team,โ€ said Bobby Williams. โ€œAugusta County, and surrounding markets, are major contributors to the $70 billion per year agricultural economy in Virginia and provide more than 334,000 jobs in the Commonwealth. As a Commercial Relationship Manager, Daniel brings a wealth of knowledge to this role, and we look forward to his continued success as part of the F&M family.โ€

About F&M Bank

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

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

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F & M Bank Corp. Announces Third Quarter Earnings and Dividend | Press Releaseย |ย 10/28/2021

TIMBERVILLE, VA / ACCESSWIRE / October 28, 2021 /ย F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank today reported net income available to common shareholders of $2.2 million and diluted earnings per common share of $0.68 for the quarter ending September 30, 2021.

Selected financial highlights include:

  • Net income of $2.2 million for the quarter ended September 30, 2021, and $9.2 million year to date.
  • Net interest margin of 2.95% for the quarter ended September 20, 2021, and 3.15% year to date.
  • Total deposits increased $74.9 million and $236.7 million, respectively for the quarter and for the trailing 12 months as the bank continues to grow our composition of DDA accounts and decrease balances of Time Deposits.
  • Total loans increased $7.5 million (1.18%) and $34.7 (5.69%) million, respectively for the quarter and for the trailing 12 months (excluding PPP loans).
  • Nonperforming assets decreased to 0.46% of total assets at the end of the quarter from 0.68% on 12/31/20.
  • Negative Provision for Loan Losses of $235,000 for the quarter ended June 30, 2021, and $2,210,000 year to date.
  • Allowance for loan losses totaled 1.28% of loans held for investment (1.30% excluding PPP loans).

Balance Sheet

The Company has experienced significant deposit growth during the quarter and the trailing 12 months resulting in growth in our investment portfolio and reduction of debt.

The investment portfolio has grown to a balance of $281 million at the quarter ended September 30, 2021, which reflects growth of $164.1 million since December 31, 2020. The portfolio is a strong mix of U.S. Treasuries, Agencies, Municipals, Corporate bonds and other investments.

Loans held for investment; net of PPP has grown $18.3 million 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 1-4 family during this low-rate environment.

The Company prepaid several long-term FHLB borrowings with excess funds to leverage our liquidity and reduce our cost of funds in future periods. Long-term debt has been paid down $11.3 million year to date.

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

Income Statement

Earnings are driven by growth in net interest income, growth in non-interest income due to our subsidiary organizations, improved asset quality and economic conditions 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.

Noninterest income remained strong in the third quarter at $9.4 million. Year to date this reflects an increase over September 30, 2020, which totaled $9.0 million. Growth is primarily driven by continued high volumes of mortgage originations, growth in our wealth management division, and title division.

Continued improvements in asset quality and economic conditions resulted in the ability to reduce the allowance for loan losses to 1.28% of loans held for investment (1.30% excluding PPP loans) which was accretive to income $2.21 million year to date or $235 thousand in the 3rdย quarter.

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. During the quarter ended September 30, 2021, the Company recognized $534,000 PPP fees and $1.89 million year to date.

Mark Hanna, President, commented “We are pleased with September 30, 2021, year to date earnings of $9.2 million. We continue to see strong performance from our mortgage, title, and wealth management divisions as reflected in our strong noninterest income. Loan growth in Agriculture, C&I, CRE, and Dealer have driven our results in a generally tepid lending environment. As reflected in our deposit growth of 50% over the last 18-24 months, F&M continues to gain relationships in our legacy and new markets adding to an already highly liquid balance sheet as the bank implements strategic solutions to leverage these assets.”

On October 21, 2021, our Board of Directors declared a second quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $28.85 per share this constitutes a 3.60% yield on an annualized basis. The dividend will be paid on November 29, 2021, to shareholders of record as of November 14, 2021.”

On September 1, 2021, the Company gave notice to our Preferred shareholders that we would redeem all Series A Preferred Stock on October 29, 2021. These transactions will be reflected in fourth quarter financial information.

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 twelve banking offices in Rockingham, Shenandoah, and Augusta Counties, Virginia. 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
Q3 Q2 Q1 YTD Q3 Q2 Q1 YTD
Net Income (000’s)
 $ 2,337 $ 3,220 $ 3,801 $ 9,358 $ 2,207 $ ,626 $ 1,189 $ 6,022
Net Income available to Common
 $ 2,272 $ 3,154 $ 3,736 $ 9,162 $ 2,142 $ ,560 $ 1,123 $ 5,825
Earnings per common share – basic
 $ 0.71 $ 0.98 $ 1.17 $ 2.86 $ 0.67 $ 0.80 $ 0.35 $ 1.82
Earnings per common share – diluted
 $ 0.68 $ 0.93 $ 1.11 $ 2.72 $ 0.65 $ 0.76 $ 0.35 $ 1.76
Return on Average Assets
 0.82 % 1.22 % 1.56 % 1.19 % 0.88 % 1.17 % 0.58 % 0.81 %
Return on Average Equity
 9.29 % 13.06 % 15.96 % 12.80 % 9.44 % 11.50 % 5.23 % 8.69 %
Dividend Payout Ratio
 36.62 % 26.53 % 22.22 % 27.27 % 38.81 % 32.50 % 74.29 % 42.86 %
Net Interest Margin
 2.95 % 3.13 % 3.44 % 3.15 % 3.33 % 3.55 % 3.97 % 3.60 %
Yield on Average Earning Assets
 3.35 % 3.56 % 3.92 % 3.59 % 3.94 % 4.20 % 4.88 % 4.31 %
Yield on Average Interest Bearing Liabilities
 0.57 % 0.62 % 0.70 % 0.63 % 0.87 % 0.92 % 1.27 % 1.00 %
Net Interest Spread
 2.78 % 2.94 % 3.22 % 2.96 % 3.07 % 3.28 % 3.61 % 3.31 %
Provision for Loan Losses (000’s)
 $ (235 ) $ (1,250 ) $ (725 ) $ (2,210 ) $ 1,000 $ 800 $ 1,500 $ 3,300
Net Charge-offs
 $ 61 $ (272 ) $ 45 $ (166 ) $ 208 $ 203 $ 453 $ 864
Net Charge-offs as a % of Loans
 0.04 % -0.16 % 0.03 % -0.03 % 0.12 % 0.12 % 0.30 % 0.17 %
Non-Performing Loans (000’s)
 $ 5,430 $ 5,532 $ 5,783 $ 5,430 $ 4,254 $ 4,465 $ 4,168 $ 4,254
Non-Performing Loans to Total Assets
 0.46 % 0.50 % 0.57 % 0.46 % 0.42 % 0.45 % 0.50 % 0.42 %
Non-Performing Assets (000’s)
 $ 5,430 $ 5,532 $ 5,783 $ 5,430 $ 4,420 $ 5,625 $ 5,504 $ 4,420
Non-Performing Assets to Assets
 0.46 % 0.50 % 0.57 % 0.46 % 0.44 % 0.57 % 0.66 % 0.44 %
Efficiency Ratio
 75.99 % 76.07 % 68.00 % 73.33 % 65.35 % 65.33 % 70.51 % 66.94 %
  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
2021
Audited
2020
Interest and Dividend Income
 $ 26,620,575 $ 27,280,319
Interest Expense
 3,225,595 4,515,221
Net Interest Income
 23,394,980 22,765,098
Non-Interest Income 9,396,570 9,016,182
Provision for Loan Losses
 (2,210,000 ) 3,300,000
Impairment of long lived assets 171,109 19,193
Other Non-Interest Expenses
 24,459,938 21,788,981
Income Before Income Taxes
 10,370,503 6,673,106
Provision for Income Taxes
 1,012,474 545,418
Less Minority Interest (Income)/Loss
 – (105,193 )
Net Income
 $ 9,358,029 $ 6,022,495
Dividend on preferred stock
 196,344 197,194
Net Income available to common shareholders
 $ 9,161,685 $ 5,825,301
Average Common Shares Outstanding
 3,210,577 3,197,718
Net Income Per Common Share
 2.86 1.82
Dividends Declared .78 .78
BALANCE SHEET
Unaudited
September 30, 2021
Audited
September 30, 2020
Cash and Due from Banks
 $ 12,024,076 $ 14,504,566
Interest Bearing Bank Deposits
 2,887,093 1,237,866
Federal Funds Sold
 165,666,000 73,407,000
Loans Held for Sale 3,610,269 88,038,925
Loans Held for Investment
 655,830,788 672,524,536
Less Allowance for Loan Losses
 (8,430,992 ) (10,825,739 )
Net Loans Held for Investment
 647,399,796 661,698,797
Securities
 280,995,364 118,888,764
Other Assets
 58,076,497 57,647,889
Total Assets
 $ 1,170,659,095 $ 1,015,423,807
Deposits
 $ 1,030,291,684 $ 793,535,570
Long Term Debt
 21,763,989 106,510,013
Other Liabilities
 16,925,436 21,698,045
Total Liabilities
 1,068,981,109 921,743,628
Preferred Stock
 4,558,298 4,591,623
Common Equity
 97,119,688 89,088,179
Stockholders’ Equity
 101,677,986 93,680,179
Total Liabilities and Stockholders’ Equity
 $ 1,170,659,095 $ 1,015,423,807
Book Value Per Common Share
 $ 30.24 $ 27.85
Tangible Book Value Per Common Share
 $ 30.44 $ 27.84

CONTACT:

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

SOURCE:ย F&M Bank Corp

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F&M Bank Corp. Announces Appointment of Three Board Members

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Timberville, VA (September 2, 2021) โ€“ F&M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces the appointment of three new corporate members as of the July 2021 meeting of the board of directors. The new members are Daphyne Saunders Thomas with James Madison University; John Willingham with Stoneridge Companies; and Hannah Hutman with Hoover Penrod, PLC.

โ€œOur Board of Directors is comprised of a dedicated team of community leaders committed to providing strength, stability and longevity to the businesses and communities of the Shenandoah Valley,โ€ said Mark Hanna, President and CEO of F&M Bank Corp. โ€œWe are excited to channel Hannah, Daphyne and Johnโ€™s talent, expertise and energy into furthering our mission and vision.โ€

Daphyne ThomasDaphyne Saunders Thomas served as the endowed Adolph Coors Professor of Business Administration chair until her retirement and is currently a professor emerita at James Madison University. ย A graduate of The Washington and Lee University School of Law, she joined the College of Business faculty in 1981, and completed her MBA at JMU.ย  Thomas earned her undergraduate degree at Virginia Tech. She currently teaches graduate classes for James Madison University for the Executive Leadership MBA and for the Master of Accounting programs. She was a co-founder and co-director of the CyberCity Summer Program, a nationally award-winning summer technology program for middle and high school students from underrepresented populations. Thomas also previously chaired the Harrisonburg Electric Commission and is a former chair of the Harrisonburg/Rockingham Community Services Board. She currently serves on the boards of numerous non-profit organizations, including Sunnyside Communities, The Explore More Childrenโ€™s Museum, The Community Services Board Halfway House, The JMU College of Visual and Performing Arts Advisory Board, The Harrisonburg/Rockingham Child Daycare Center and The Community Foundation of Harrisonburg/Rockingham Grants and Scholarship committee. Previous gubernatorial appointments include service on the Commonwealth Transportation Board, the Jamestown Yorktown Foundation, the Outstanding Virginian Day, and the Selective Service System Board.ย  She serves on the audit and ORC committees of the F & M Corporate Board.

ย 

John Willingham


John Willingham, CPA, is President of Stoneridge Companies, a multi-faceted real estate development, construction and realty company based in Winchester, VA. Additionally, he is the President of Total Remodeling, a regional sunroom and outdoor living contractor. Previously, John was a business banking manager and senior commercial lender for Wells Fargo, CFO of a publicly traded community bank, and was in public accounting with Yount, Hyde and Barbour, P.C. and PricewaterhouseCoopers.ย  He currently serves as Chairman for the Frederick Winchester Service Authority and is a member of the board for Grafton Integrated Health Network. Previously, he served 12 years as a City Councilor for the City of Winchester and was President of Council for 5 years.

 

 

 

Hannah HutmanHannah Hutman is a partner at the law firm of Hoover Penrod, PLC, in Harrisonburg. Her practice includes representing creditors, trustees, and debtors in bankruptcy proceedings and insolvency related matters. Hannah has represented national and regional banks in all aspects of commercial loan transactions and collections, including restructuring obligations, asset liquidations and dispositions, and foreclosure. Hannah is a member of the panel of Chapter 7 trustees for the Western District of Virginia.ย  In addition, Hannah provides legal counsel and services in entity formation and governance matters, financing transactions, contracts, and business asset transfers.ย  She is a former Chair of the Board of Governors of the Bankruptcy Law Section for the Virginia State Bar. Hannah is โ€œAVโ€ rated by Martindale-Hubbell, has routinely been listed in Super Lawyers as a Rising Star, selected as a member of Virginiaโ€™s โ€œLegal Elite,โ€ and included in the American Bankruptcy Instituteโ€™s 2018 class of โ€œ40 under 40.โ€ย  She received her J.D. from the Marshall Wythe School of Law at the College of William and Mary in Williamsburg, Virginia and her B.A, summa cum laude, from Columbia Union College in Takoma Park, Maryland.ย  Hannah lives in Harrisonburg with her husband Matt and two sons.

F&M Bank Announces Third Annual Local Business You Love Contest

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F&M Bank is excited to announce the return of its โ€œLocal Business You Loveโ€ contest for a third year, kicking off on September 1st. Throughout September, F&M Bank will ask Shenandoah Valley residents to nominate their favorite local business to win $10,000. First round nominations will be accepted September 1 โ€“ 17, 2021 on the ย F&M Bank website.

As a community bank dedicated to the Shenandoah Valley, we consistently look for ways to support small business and Virginia-based organizations. Encouraging public participation in the contest has proven to be a fun way for our bank to boost awareness and publicity for locally owned businesses.

Mark Hanna, President and CEO, states, โ€œIn 2019, a group of F&M Bank employees created the โ€˜Local Business You Loveโ€™ contest to celebrate and recognize the positive impact local businesses have made in our footprint. The contest has proven to be a tremendous success evident from the community support shown by Shenandoah Valley residents. We are thrilled to host the contest again this year to help amplify the small businesses who continue to persevere through extremely difficult seasons.โ€

First round nominations will be accepted online through September 17thst at 5pm. A panel of F&M Bank employees will then determine the Top 10 based on nomination relevance. On September 30th, the Top 10 will be announced, a round of public voting will begin, and the $10,000 winner will be announced later in the fall at a reception honoring the Top 10 contestants.

More information regarding the Local Business You Love Contest, including the nomination form and a complete list of rules and regulations, can be found at www.fmbankva.com/bizyoulove.

For more information, please contact Holly Thorne, marketing@fmbankva.com.

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

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TIMBERVILLE, VA / ACCESSWIRE / July 27, 2021 /ย F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank today reported net income available to common shareholders of $3.2 million and diluted earnings per common share of $0.93 for the quarter ending June 30, 2021.

These earnings are driven by growth in net interest income despite margin compression, growth in non-interest income due to our subsidiary organizations and improved asset quality and economic conditions.

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.

Noninterest income remained strong in the second quarter at $6.4 million year to date this reflects an increase over June 30, 2020 which totaled $5.7million in the heart of the mortgage refinance boom. Growth is primarily driven by continued high volumes of mortgage originations, growth in our wealth management division, and title division.

Continued improvements in asset quality and economic conditions resulted in the ability to reduce the allowance for loan losses to 1.31% of loans held for investment (1.35% excluding PPP loans) which was accretive to income $1.975 million year to date or $1.250 million in the 2ย ndย quarter.

Paycheck Protection Program (โ€œPPPโ€) & CARES Act

During 2021, the Company processed 363 Paycheck Protection Program (PPP) loans that totaled $23.8 million; PPP loans processed during 2020 and 2021 YTD totaled 1,080 loans for $87.1 million. In addition to an insignificant amount of PPP loan payoffs, the Company has processed a total of $64.4 million of forgiveness on 809 loans program to date resulting in a remaining balance of PPP loans of $22.7 million. As of June 30, 2021, one loan remains in a COVID related loan payment deferral status.

Selected financial highlights include:

  • Net income of $3.2 million for the quarter ended June 30, 2021 and $7.02 million year to date.
  • Net interest margin of 3.27%.
  • Total deposits increased $92.6 million and $188.7 million, respectively for the quarter and for the trailing 12 months as the bank continues to grow our composition of DDA accounts and decrease balances of Time Deposits.
  • Total loans increased $16.0 million and $36.7 million, respectively for the quarter and for the trailing 12 months (excluding PPP loans).
  • Nonperforming assets decreased to 0.50% of total assets at the end of the quarter from 0.68% on 12/31/20 and 0.57% on 6/30/20.
  • Negative Provision for Loan Losses of $1,250,000 for the quarter ended June 30, 2021, and $1,975,000 year to date.
  • Allowance for loan losses totaled 1.31% of loans held for investment (1.35% excluding PPP loans).

Mark Hanna, President, commented โ€œย We are pleased with June 30, 2021 year to date earnings of $7.02 million. Our mortgage, title, and wealth management divisions continue to drive strong noninterest income. Loans continue to grow at a modest pace driven by Agriculture, C&I, CRE, and Dealer through a generally tepid lending environment. Our net interest margin of 3.27% reflects a historical decline but remains strong especially given the changes in our balance sheet and the current rate environment. F&M continues to gain relationships in our legacy and new markets adding to an already highly liquid balance sheet as the bank implements strategic solutions to leverage these assets.โ€

On July 23, 2021, our Board of Directors declared a second quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $29.00 per share this constitutes a 3.59% yield on an annualized basis. The dividend will be paid on August 30, 2021, to shareholders of record as of August 14, 2021.โ€

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bankโ€™s twelve banking offices in Rockingham, Shenandoah, and Augusta Counties, Virginia. 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 atย www.fmbankva.comย or by calling (540) 896-1705.

This press release may contain โ€œforward-looking statementsโ€ 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
Q2 Q1 YTD Q2 Q1 YTD
Net Income (000โ€™s)
 $ 3,220 $ 3,801 $ 7,021 $ 2,626 $ 1,189 $ 3,815
Net Income available to Common
 $ 3,154 $ 3,736 $ 6,890 $ 2,560 $ 1,123 $ 3,683
Earnings per common share โ€“ basic
 $ 0.98 $ 1.17 $ 2.15 $ 0.80 $ 0.35 $ 1.15
Earnings per common share โ€“ diluted
 $ 0.93 $ 1.11 $ 2.04 $ 0.76 $ 0.35 $ 1.11
Return on Average Assets
 1.22 % 1.56 % 1.39 % 1.17 % 0.58 % 1.70 %
Return on Average Equity
 13.06 % 15.96 % 14.78 % 11.50 % 5.23 % 16.70 %
Dividend Payout Ratio
 26.53 % 22.22 % 24.19 % 32.50 % 74.29 % 45.22 %
Net Interest Margin
 3.13 % 3.44 % 3.27 % 3.55 % 3.97 % 3.75 %
Yield on Average Earning Assets
 3.56 % 3.92 % 3.72 % 4.20 % 4.88 % 4.52 %
Yield on Average Interest Bearing Liabilities
 0.62 % 0.70 % 0.66 % 0.92 % 1.27 % 1.09 %
Net Interest Spread
 2.94 % 3.22 % 3.06 % 3.28 % 3.61 % 3.43 %
Provision for Loan Losses (000โ€™s)
 $ (1,250 ) $ (725 ) $ (1,925 ) $ 800 $ 1,500 $ 2,300
Net Charge-offs
 $ (272 ) $ 45 $ (227 ) $ 203 $ 453 $ 656
Net Charge-offs as a % of Loans
 -0.16 % 0.03 % -0.03 % 0.12 % 0.30 % 0.10 %
Non-Performing Loans (000โ€™s)
 $ 5,532 $ 5,783 $ 5,532 $ 4,465 $ 4,168 $ 4,465
Non-Performing Loans to Total Assets
 0.50 % 0.57 % 0.50 % 0.45 % 0.50 % 0.45 %
Non-Performing Assets (000โ€™s)
 $ 5,532 $ 5,783 $ 5,532 $ 5,625 $ 5,504 $ 5,625
Non-Performing Assets to Assets
 0.50 % 0.57 % 0.50 % 0.57 % 0.66 % 0.57 %
Efficiency Ratio
 76.07 % 68.00 % 72.00 % 65.33 % 70.51 % 67.79 %
  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 Companyโ€™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

INCOME STATEMENT
Unaudited
2021
Audited
2020
Interest and Dividend Income
 $ 17,565,650 $ 18,101,844
Interest Expense
 2,137,253 3,090,815
Net Interest Income
 15,428,397 15,011,029
Non-Interest Income 6,441,307 5,681,703
Provision for Loan Losses
 (1,975,000 ) 2,300,000
Impairment of long lived assets
 171,109 19,193
Other Non-Interest Expenses 15,959,140 14,385,236
Income Before Income Taxes
 7,714,455 3,988,303
Provision for Income Taxes
 693,126 173,250
Net Income
 $ 7,021,329 $ 3,815,053
Dividend on preferred stock
 130,896 131,746
Net Income available to common shareholders
 $ 6,890,433 $ 3,683,307
Average Common Shares Outstanding
 3,205,074 3,199,183
Net Income Per Common Share
Dividends Declared
 2.15.52 1.15.52
BALANCE SHEET
Unaudited
June 30, 2021
Audited
June 30, 2020
Cash and Due from Banks
 $ 15,415,037 $ 16,950,810
Interest Bearing Bank Deposits
 3,901,543 1,199,474
Federal Funds Sold
 166,698,000 68,548,000
Loans Held for Sale
 8,854,680 90,403,042
Loans Held for Investment 661,125,556 661,528,802
Less Allowance for Loan Losses
 (8,726,540 ) (10,033,466 )
Net Loans Held for Investment
 652,399,016 651,495,336
Securities
 198,814,465 93,381,484
Other Assets
 59,217,012 59,623,971
Total Assets
 $ 1,105,299,753 $ 981,602,117
Deposits
 $ 955,344,337 $ 766,651,982
Long Term Debt
 31,309,498 100,585,081
Other Liabilities
 18,434,164 22,063,159
Total Liabilities
 1,005,087,999 889,300,222
Preferred Stock
 4,558,298 4,591,623
Common Equity
 95,653,456 87,710,272
Stockholdersโ€™ Equity
 100,211,754 92,301,895
Total Liabilities and Stockholdersโ€™ Equity
 $ 1,105,299,753 $ 981,602,117
Book Value Per Common Share
 $ 29.80 $ 27.44
Tangible Book Value Per Common Share
 $ 29.98 $ 27.51

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

SOURCE:ย F & M Bank Corp.

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F&M Bank Announces New Office in Winchester

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TIMBERVILLE, VA., July 16, 2021 — F&M Bank Corp. (OTCQX:FMBM), holding company for F&M Bank, announced today the opening of a new commercial office in downtown Winchester. The office is located on the third floor of the historic Odd Fellows building at 45 E. Boscawen Street. Earlier in 2021, F&M Bank welcomed a local commercial team with 141 years of combined experience to spearhead the Companyโ€™s move into the northern Shenandoah Valley market. Led by Chief Strategy Officer & Northern Market Executive, Mike Wilkerson, the team consists of commercial relationship managers John Sargent and Jon Reimer; and business relationship specialist Gail Pryde.

โ€œWe are thrilled to grow into the vibrant City of Winchester and surrounding Frederick County,โ€ said Mike Wilkerson. The โ€œโ€™Top of Virginiaโ€™ is a thriving, local economy and is contiguous to F&Mโ€™s existing Shenandoah Valley footprint. We look forward to contributing to the continued success of the region and supporting the needs of the agricultural industry, commercial and small businesses, and nonprofit organizations.

Mr. Wilkerson is available for further comment. Please contact Holly Thorne at marketing@fmbankva.com.

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

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

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Press Release
For Immediate Release

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

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

Photo of Calan Jansen

 

 

 

 

 

 

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

Securities and Insurance Products:

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

About Infinex Financial Group

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

About F&M Bank

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

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