F&M Bank Opens New Location in Waynesboro, VA
Pictured above: 2020 Calendar Photo entry submitted by Makeba Robinson
NEWS RELEASE
FOR IMMEDIATE RELEASE: F&M Bank Opens New Location in Waynesboro, VA
TIMBERVILLE, VAโApril 23, 2021โ F&M Bank, a locally owned independent community bank headquartered in Rockingham County is excited to announce the opening of its newest location in Waynesboro, VA on Monday, April 26, 2021. The full-service branch located at 2701 West Main Street expands the $1 billion community bankโs presence to four banking offices in the Augusta County market and 12 offices serving the greater Shenandoah Valley.
โThe F&M Bank team is delighted to grow into the vibrant City of Waynesboro โ a thriving, local economy,โ said Mark Hanna, President & CEO. โWith this growth, we remain focused on serving the Shenandoah Valley and contiguous markets as an independent bank for the long-term. The decision to expand into Waynesboro supports our strategic initiative of organic expansion in core markets to better serve the banking needs of our communities.โ
In January 2021, F&M Bank entered into an agreement with Carter Bankshares, Inc. to acquire the branch, and associated client relationships, which recently received regulatory approvals. The Company also welcomes two Carter Bank & Trust employees, Lisa Shiflet and Breanna Rodgers to the F&M Bank family.
Mr. Hanna is available for further comment. Please contact Holly Thorne at marketing@fmbankva.com, (540) 217-6409
Carolyn Burnett joins Commercial Banking Team
F&M Bankโs executive leadership is pleased to welcome Carolyn Burnett to its growing commercial team. Carolyn joins F&M Bank as Senior Vice President, Commercial Relationship Manager with a focus in Augusta County.
Carolyn brings a strong background to F&M with a Bachelor of Business Administration in Finance from James Madison University and over 14 yearsโ experience managing commercial banking relationships. In her role at F&M, Carolyn looks forward to working with business managers to understand their needs and help them to achieve their financial goals.” In her spare time, Carolyn serves on the board of directors for the Center for Nonprofit Excellence and on the loan advisory committee for the Community Investment Collaborative. She is also an active supporter and volunteer for the Blue Ridge Area Food Bank and Habitat for Humanity.
F&M Bankโs President and CEO, Mark Hanna commented, โAs an experienced commercial banker serving the Valley market, Carolyn brings a wealth of knowledge and expertise to her role. We are excited to welcome her to our Augusta County team.โ
John Sargent joins Commercial Banking Team
F&M Bankโs executive leadership is pleased to welcome John Sargent to its growing commercial team in Winchester/Frederick County.
For Immediate Release | April 16, 2021 | Timberville, VA โโ F&M Bankโs executive leadership is pleased to welcome John Sargent to its growing commercial team. John joins F&M Bank as Vice President, Commercial Relationship Manager with a focus in Winchester and Frederick County.
John brings a strong background to F&M with over 14 yearsโ experience in the banking industry, the last eight focused in commercial banking. John graduated from Sherando High School and Longwood University, receiving a Bachelor of Science in Business Administration with a concentration in marketing, and a minor in psychology.
In his new role at F&M, John looks forward to being a trusted advisor and friend to local business owners in his community. โI enjoy supporting, educating, and advising business partners on the best way for them to see their business grow financially. ย Establishing relationships with business owners is my top priority and I look forward to growing and supporting the Winchester Community.โ
In his spare time, John participates as a member of New Life Christian Church in Winchester and volunteers as a coach for Frederick County National Little League.
โWe are thrilled to welcome John to F&M Bank team,โ said Mark Hanna, President & CEO. โThe greater Winchester area is vibrant, boasting a thriving, local economy and is contiguous to our Shenandoah County footprint. As a Commercial Relationship Manager, John brings a wealth of knowledge to this role and we look forward to his continued success as part of the F&M family.โ
ย
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.
For more information, please contact Holly Thorne, (540) 217-6409, marketing@fmbankva.com.
###
F & M Bank Corp. Announces Fourth Quarter Earnings and Dividend
TIMBERVILLE, VA / ACCESSWIRE / January 28, 2021 /ย F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ending December 31, 2020 and fourth quarter dividend to shareholders.
As the global pandemic continues, the company continually assesses our procedures to maintain the safety of our customers, employees and community while serving their financial needs. Farmers & Merchants Bank continues to operate our branches in a drive-thru only capacity daily, with courier pick up and by appointment lobby transactions.
CARES ACT & Paycheck Protection Program (“PPP”)
During 2020, the Company processed 717 Paycheck Protection Program (PPP) loans which totaled $62.7 million. In addition to an insignificant amount of PPP loan pay offs, the Company processed $27.8 million of loan forgiveness on 266 loans resulting in a remaining balance of PPP loans of $34.9 million. The Company began accepting applications on January 15, 2021 for additional PPP loans pursuant to the Consolidated Appropriations Act, 2021.
In addition, we have processed 1,223 individual loan deferrals. As of December 31, 2020, 198 loans remain in deferral with a balance of $14.6 million which represents 2.3% of loans outstanding exclusive of PPP balances.
Winchester Loan Production Office (LPO) & Expansion into Waynesboro Virginia
The Company has opened a loan production office in the Winchester, VA market in the first quarter of 2021. Mike Wilkerson has joined F&M to lead an experienced team of bankers as we enter a very strong and growing economy in the Northern Shenandoah Valley. In addition, on January 27, 2021, F&M announced we entered into a purchase and assumption agreement with Carter Bankshares, Inc. for a banking office in the City of Waynesboro, Virginia. Expanding into the Waynesboro market was a strategic initiative of F&M Bank given the market opportunity and to better serve our existing client base in the Shenandoah Valley.
Selected financial highlights for the quarter and year to date include:
- Net income of $2.77 million and $8.79 million, respectively.
- Net interest margin of 3.81% and 3.61%, respectively.
- Total deposits increased $25.0 million and $176.9 million, respectively for the quarter and for the trailing 12 months.
- Total loans increased $16.5 million and $23.0million, respectively for the quarter and for the trailing 12 months (excluding PPP loans).
- Nonperforming assets decreased to 0.68% of total assets at the end of the quarter from 0.89% on 12/31/19, after a slight increase in the fourth quarter from 0.44% at 9/30/20.
- Allowance for loan losses totaled 1.58% of loans held for investment (1.67% excluding PPP loans).
Mark Hanna, President, commented “We are pleased to announce fourth quarter and year-to-date earnings of $2.77 million and $8.79 million respectively. Recognition of fees earned on PPP loans forgiven and credit quality improvements that resulted in no provision for loan losses in the fourth quarter, spurred the performance in the fourth quarter. Exceptional years in our mortgage and title companies, as well as well as our ability to maintain similar net interest income to 2019 have driven the year-to-date results. Our net interest margin of 3.61% shows a historical decline but remains strong especially given the changes in our balance sheet and the current rate environment. F&M’s liquidity has increased significantly over the last four quarters and we are implementing strategic solutions to leverage these assets including deploying $99.9 million into the investment portfolio since year end 2019. Despite the current low-rate environment, these strategies should augment our net interest margin in the future.”
Mr. Hanna stated, “Nonperforming assets have continued to improve, decreasing $680 thousand since year end 2019. We feel these efforts put F&M in a strong position to manage the current economic uncertainty while seeking opportunities for continued growth in the communities we serve.”
Mr. Hanna continued,ย “As we kick off the New Year, we are excited about the opportunities in our new markets of Winchester and Waynesboro Virginia. Mike Wilkerson and his team add experience and energy in a strong Winchester market in the Northern Shenandoah Valley and expanding into the Waynesboro market provides additional market opportunity and better service to our existing customers.”
On January 21, 2021 our Board of Directors declared a third quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $23.75 per share this constitutes a 4.38% yield on an annualized basis. The dividend will be paid on March 1, 2021, to shareholders of record as of February 14, 2021.”
F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s eleven banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-1705.
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
2020 | 2019 | |||||||||||||||||||||||
Q4 | Q3 | Q2 | Q1 | YTD | YTD | |||||||||||||||||||
Net Income (000’s)
|
$ | 2,766 | $ | 2,207 | $ | 2,626 | $ | 1,189 | $ | 8,788 | $ | 4,509 | ||||||||||||
Net Income available to Common
|
$ | 2,700 | $ | 2,142 | $ | 2,560 | $ | 1,123 | $ | 8,525 | $ | 4,194 | ||||||||||||
Earnings per common share – basic
|
$ | 0.84 | $ | 0.67 | $ | 0.80 | $ | 0.35 | $ | 2.66 | $ | 1.32 | ||||||||||||
Earnings per common share – diluted
|
$ | 2.56 | $ | 1.30 | ||||||||||||||||||||
Return on Average Assets
|
1.12 | % | 0.88 | % | 1.17 | % | 0.58 | % | 0.99 | % | 0.57 | % | ||||||||||||
Return on Average Equity
|
11.75 | % | 9.44 | % | 11.50 | % | 5.23 | % | 9.39 | % | 4.93 | % | ||||||||||||
Dividend Payout Ratio excluding Special Dividend
|
30.95 | % | 38.81 | % | 32.50 | % | 74.29 | % | 39.10 | % | 77.27 | % | ||||||||||||
Net Interest Margin
|
3.81 | % | 3.60 | % | 3.75 | % | 3.97 | % | 3.61 | % | 4.33 | % | ||||||||||||
Yield on Average Earning Assets
|
4.77 | % | 4.31 | % | 4.52 | % | 4.88 | % | 4.27 | % | 5.27 | % | ||||||||||||
Yield on Average Interest Bearing Liabilities
|
1.33 | % | 0.99 | % | 1.09 | % | 1.27 | % | 0.94 | % | 1.30 | % | ||||||||||||
Net Interest Spread
|
3.44 | % | 3.32 | % | 3.43 | % | 3.61 | % | 3.33 | % | 3.97 | % | ||||||||||||
Provision for Loan Losses (000’s)
|
$ | – | $ | 1,000 | $ | 800 | $ | 1,500 | $ | 3,300 | $ | 7,405 | ||||||||||||
Net Charge-offs
|
$ | 351 | $ | 208 | $ | 203 | $ | 453 | $ | 1,215 | $ | 4,255 | ||||||||||||
Net Charge-offs as a % of Loans
|
0.21 | % | 0.12 | % | 0.12 | % | 0.30 | % | 0.18 | % | 0.71 | % | ||||||||||||
Non-Performing Loans (000’s)
|
$ | 6,537 | $ | 4,254 | $ | 4,465 | $ | 4,168 | $ | 6,537 | $ | 5,728 | ||||||||||||
Non-Performing Loans to Total Assets
|
0.68 | % | 0.42 | % | 0.45 | % | 0.50 | % | 0.68 | % | 0.70 | % | ||||||||||||
Non-Performing Assets (000’s)
|
$ | 6,537 | $ | 4,420 | $ | 5,625 | $ | 5,504 | $ | 6,537 | $ | 7,217 | ||||||||||||
Non-Performing Assets to Assets
|
0.68 | % | 0.44 | % | 0.57 | % | 0.66 | % | 0.68 | % | 0.89 | % | ||||||||||||
Efficiency Ratio
|
69.10 | % | 65.35 | % | 65.33 | % | 70.51 | % | 67.51 | % | 69.03 | % |
- 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.
- 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 2020 |
Audited 2019 |
||||||
Interest and Dividend Income
|
$ | 36,792,403 | $ | 38,210,304 | ||||
Interest Expense
|
5,728,482 | 6,818,488 | ||||||
Net Interest Income
|
31,063,921 | 31,391,816 | ||||||
Non-Interest Income
|
12,190,916 | 9,919,954 | ||||||
Provision for Loan Losses
|
3,300,000 | 7,405,000 | ||||||
Impairment of long lived assets
|
19,193 | – | ||||||
Other Non-Interest Expenses
|
29,938,920 | 29,517,995 | ||||||
Income Before Income Taxes
|
10,035,110 | 4,388,775 | ||||||
Provision for Income Taxes
|
1,141,742 | (250,304 | ) | |||||
Less Minority Interest (income)/loss
|
(105,193 | ) | (130,276 | ) | ||||
Net Income
|
$ | 8,788,175 | $ | 4,508,803 | ||||
Dividend on preferred stock
|
262,642 | 314,589 | ||||||
Net Income available to common shareholders
|
$ | 8,525,533 | $ | 4,194,214 | ||||
Average Common Shares Outstanding
|
3,199,883 | 3,189,288 | ||||||
Net Income Per Common Share
|
2.66 | 1.32 | ||||||
Dividends Declared
|
1.04 | 1.02 |
BALANCE SHEET
|
Unaudited December 31, 2020 |
Audited December 31, 2019 |
||||||
Cash and Due from Banks
|
$ | 11,181,164 | $ | 8,118,889 | ||||
Interest Bearing Bank Deposits
|
1,243,519 | 1,125,616 | ||||||
Federal Funds Sold
|
65,983,000 | 66,559,096 | ||||||
Loans Held for Sale
|
58,753,055 | 66,798,436 | ||||||
Loans Held for Investment
|
661,328,888 | 603,425,471 | ||||||
Less Allowance for Loan Losses
|
(10,474,960 | ) | (8,389,846 | ) | ||||
Net Loans Held for Investment
|
650,853,928 | 595,035,625 | ||||||
Securities
|
117,897,486 | 18,015,488 | ||||||
Other Assets
|
61,018,331 | 58,345,513 | ||||||
Total Assets
|
$ | 966,930,483 | $ | 813,998,663 | ||||
Deposits
|
$ | 818,581,503 | $ | 641,709,480 | ||||
Short Term Debt
|
– | 10,000,000 | ||||||
Long Term Debt
|
33,201,631 | 53,200,675 | ||||||
Other Liabilities
|
19,517,664 | 17,513,319 | ||||||
Total Liabilities
|
871,300,798 | 722,423,474 | ||||||
Preferred Stock
|
4,558,298 | 4,591,623 | ||||||
Common Equity
|
91,071,387 | 86,983,566 | ||||||
Stockholders’ Equity
|
95,629,685 | 91,575,189 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 966,930,483 | $ | 813,998,663 | ||||
Book Value Per Common Share
|
$ | 28.43 | $ | 27.11 | ||||
Tangible Book Value Per Common Share
|
$ | 28.42 | $ | 26.95 |
CONTACT:
Carrie Comer
EVP/Chief Financial Officer
540-896-1705 orย ccomer@fmbankva.com
SOURCE:ย F & M Bank Corp.
View source version on accesswire.com:
https://www.accesswire.com/626442/F-M-Bank-Corp-Announces-Fourth-Quarter-Earnings-and-Dividend
F&M Bank Announces Expansion into City of Waynesboro
TIMBERVILLE, VA, January 27, 2021 — F&M Bank Corp. (OTCQX:FMBM), holding company for F&M Bank announced today its intention to open a new location in the City of Waynesboro, VA, expanding the $1B community bankโs presence to four banking offices in the Augusta County market and 12 offices serving the greater Shenandoah Valley.
โF&Mโs executive team is delighted to grow into the vibrant City of Waynesboro โ a thriving, local economy where many of our customers live, work and play,โ said Mark Hanna, President & CEO. โOur focus remains on serving the Shenandoah Valley and contiguous markets as an independent bank for the long-term. The decision to expand into Waynesboro supports our strategic initiative of organic growth in core markets to better serve the banking needs of our communities.โ
F&M Bank has entered into an agreement with Carter Bankshares, Inc. ย to acquire the branch, and associated client relationships, located at 2701 West Main Street in Waynesboro. This agreement is subject to regulatory approvals and customary closing conditions and is expected to be completed early in the second quarter of 2021.
Mr. Hanna 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.
Forward-looking Statements
Certain information contained in this discussion may include โforward-looking statementsโ within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements related to the branch expansion and F&Mโs future operations and are generally identified by phrases such as โF&M expects,โ โF&M believesโ or words of similar import. Although F&M believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could have a material adverse effect on F&Mโs operations and future prospects include, but are not limited to, difficulties or unexpected costs in combining the acquired branch on the proposed terms or anticipated schedule; deposit attrition, customer losses and business disruption in connection with the branch acquisition; expected growth opportunities may not be realized; changes in interest rates, general economic conditions, or legislative and regulatory policies; and other risk factors and cautionary language included in F&Mโs Annual Report on Form 10-K for the year ended December 31, 2019, and other filings with the Securities and Exchange Commission. We undertake no obligation to update these statements following the date of this press release.
F&M Bank Welcomes Mike Wilkerson and Jonathan Reimer to Winchester Team
F&M Bank is excited to announce its expansion into the Northern Shenandoah Valley market. Mike Wilkerson, Chief Strategy Officer & Northern Market Executive, and Jonathan Reimer, Vice President & Commercial Relationship Manager, will spearhead F&M Bankโs growth into Winchester and Frederick County.
โWe are thrilled to welcome Mike Wilkerson and Jonathan Reimer to F&M Bank,โ said Mark Hanna, President & CEO. โThe greater Winchester area is vibrant, boasting a thriving, local economy and is contiguous to our Shenandoah County footprint. As a Commercial Relationship Manager, Mr. Reimer has successfully cultivated and developed community partnerships, and under Mr. Wilkersonโs guidance and direction, we look forward to continued success.โ
Mike Wilkerson joins F&M Bank with near 40 years of banking experience to include retail, small business, commercial lending, and leadership. He has successfully built and developed teams throughout Western Virginia and the Shenandoah Valley.
โF&M Bank was the right choice for my career based on the family-oriented culture, exceptional leadership team, and the bankโs progressive momentum,โ said Mr. Wilkerson. โThe organization is focused on serving the Shenandoah Valley and remaining an independent bank for the long-term.โ
A current resident of Winchester, Mr. Wilkerson plays an active role in the community. He volunteers for numerous organizations and currently serves on the Virginia Community College Foundation Board as well as a member of the Finance & Investment Committee.
Jonathan Reimer brings 10 years of commercial lending experience to F&M Bank. He began his career as a credit analyst, transitioned into small business lending, and most recently served the Winchester market as a commercial relationship manager.
โF&M Bank has a long tradition of intimately understanding its customers and their businesses. This merges nicely with my banking career and my teamโs approach to serving our clients,โ said Mr. Reimer. โI look forward to helping F&M Bank enter Winchester and delivering Banking You Love from People Who Care!โ
Mr. Reimer is dedicated to community service. He currently sits on the board of directors for the Shenandoah Valley Discovery Museum and is an active member of the Winchester Rotary Club.
F&M Bank Announces Employee Promotions
F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective December 17, 2020.
Bank Officer:
- Robin Layman, Branch Specialist (Edinburg)
Assistant Vice President:
- Carlie Kelly, Credit Analyst
- Ashley McClure, Branch Manager (Bridgewater)
- Emily Rhodes, Credit Analyst
- Mary Pavlovskaya, Business Deposit Services Officer
Additionally, we would like to congratulate Angela Smith on her recent promotion to Branch Manager of the North Augusta office.
F&M Bank Corp. Announces Third Quarter Earnings and Dividend
F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the third quarter ending September 30, 2020 and third quarter dividend to shareholders.
As the global pandemic continues, the company continually assesses our procedures to maintain the safety of our customers, employees and community while serving their financial needs. Farmers & Merchants Bank continues to operate our branches in a drive-thru only capacity daily, with courier pick up and by appointment lobby transactions.
As of September 30, 2020, we had processed 717 Paycheck Protection Program (PPP) loans for a balance of $62.6 million. These loans are funded by participation in the Federal Reserve Paycheck Protection Program Lending Facility. In addition, we have processed 922 individual loan deferrals. As of September 30, 2020, 99 loans remain in deferral with a balance of $19.1 million which represents 3.1% of loans outstanding exclusive of PPP balances.
Selected financial highlights for the quarter include:
- Net income of $2.21 million.
- Net interest margin of 3.60%.
- Total deposits increased $26.9 million and $175.1 million, respectively for the quarter and for the trailing 12 months.
- Nonperforming loans decreased to 0.42% of total assets at the end of the quarter from 0.45% on 6/30/20 and 0.98% on 9/30/2019.
- Allowance for loan losses totaled 1.57% of loans held for investment (1.72% excluding PPP loans).
Mark Hanna, President, commented “Our third quarter earnings of $2.21 million is a slight improvement over second quarter for core earnings ($2.06 million), second quarter total earnings ($2.63 million) included recognition of $567,000 for implementation of a mortgage rate lock derivative associated with our mortgage company pipeline. Our net interest margin of 3.60% shows a historical decline but remains strong especially given the changes in our balance sheet. F&M’s liquidity has increased significantly over the last four quarters and we are implementing strategic solutions to leverage these assets including deploying $102.7 million into the investment portfolio since year end 2019. Despite the current low-rate environment, these strategies should augment our net interest margin in the future.”
Mr. Hanna continued, “Nonperforming loans have improved dramatically over prior year, decreasing $3.7 million since third quarter of 2019, and $1.5 million since year end 2019. We feel these efforts put F&M in a strong position to manage the current economic uncertainty while seeking opportunities for continued growth in the communities we serve.”
On October 23, 2020 our Board of Directors declared a third quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $19.21 per share this constitutes a 5.41% yield on an annualized basis. The dividend will be paid on November 30, 2020, to shareholders of record as of November 14, 2020.”
F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s eleven banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.
This press release may contain “forward-looking statements” as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.
F & M Bank Corp.
Key Statistics
2020 | 2019 | |||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | YTD | Q3 | Q2 | Q1 | YTD | |||||||||||||||||||||||||
Net Income (000’s)
|
$ | 2,207 | $ | 2,626 | $ | 1,189 | $ | 6,022 | $ | (186 | ) | $ | 1,634 | $ | 1,287 | $ | 2,735 | |||||||||||||||
Net Income available to Common
|
$ | 2,142 | $ | 2,560 | $ | 1,123 | $ | 5,825 | $ | (265 | ) | $ | 1,556 | $ | 1,208 | $ | 2,499 | |||||||||||||||
Earnings per common share – basic
|
$ | 0.67 | $ | 0.80 | $ | 0.35 | $ | 1.82 | $ | (0.08 | ) | $ | 0.48 | $ | 0.38 | $ | 0.78 | |||||||||||||||
Earnings per common share – diluted
|
$ | 0.65 | $ | 0.76 | $ | 0.35 | $ | 1.76 | ||||||||||||||||||||||||
Return on Average Assets
|
0.88 | % | 1.17 | % | 0.58 | % | 0.81 | % | -0.09 | % | 0.83 | % | 0.67 | % | 0.46 | % | ||||||||||||||||
Return on Average Equity
|
9.44 | % | 11.50 | % | 5.23 | % | 8.68 | % | -0.81 | % | 7.12 | % | 5.68 | % | 4.00 | % | ||||||||||||||||
Dividend Payout Ratio
|
38.81 | % | 32.50 | % | 74.29 | % | 42.86 | % | -325.00 | % | 52.08 | % | 65.79 | % | 97.44 | % | ||||||||||||||||
Net Interest Margin
|
3.33 | % | 3.55 | % | 3.97 | % | 3.60 | % | 4.39 | % | 4.47 | % | 4.67 | % | 4.52 | % | ||||||||||||||||
Yield on Average Earning Assets
|
3.94 | % | 4.20 | % | 4.88 | % | 4.31 | % | 5.35 | % | 5.42 | % | 5.54 | % | 5.46 | % | ||||||||||||||||
Yield on Average Interest Bearing Liabilities
|
0.87 | % | 0.92 | % | 1.27 | % | 1.00 | % | 1.34 | % | 1.33 | % | 1.21 | % | 1.29 | % | ||||||||||||||||
Net Interest Spread
|
3.07 | % | 3.28 | % | 3.61 | % | 3.31 | % | 4.01 | % | 4.09 | % | 4.33 | % | 4.17 | % | ||||||||||||||||
Provision for Loan Losses (000’s)
|
$ | 1,000 | $ | 800 | $ | 1,500 | $ | 3,300 | $ | 3,750 | $ | 1,600 | $ | 1,450 | $ | 6,800 | ||||||||||||||||
Net Charge-offs
|
$ | 208 | $ | 203 | $ | 453 | $ | 864 | $ | 817 | $ | 483 | $ | 1,757 | $ | 3,057 | ||||||||||||||||
Net Charge-offs as a % of Loans
|
0.12 | % | 0.12 | % | 0.30 | % | 0.17 | % | 0.52 | % | 0.30 | % | 1.09 | % | 0.65 | % | ||||||||||||||||
Non-Performing Loans (000’s)
|
$ | 4,254 | $ | 4,465 | $ | 4,168 | $ | 4,254 | $ | 7,978 | $ | 11,688 | $ | 10,587 | $ | 7,978 | ||||||||||||||||
Non-Performing Loans to Total Assets
|
0.42 | % | 0.45 | % | 0.50 | % | 0.42 | % | 0.98 | % | 1.45 | % | 1.36 | % | 0.98 | % | ||||||||||||||||
Non-Performing Assets (000’s)
|
$ | 4,420 | $ | 5,625 | $ | 5,504 | $ | 4,420 | $ | 9,649 | $ | 13,657 | $ | 12,761 | $ | 9,649 | ||||||||||||||||
Non-Performing Assets to Assets
|
0.44 | % | 0.57 | % | 0.66 | % | 0.44 | % | 1.19 | % | 1.69 | % | 1.64 | % | 1.19 | % | ||||||||||||||||
Efficiency Ratio
|
65.35 | % | 65.33 | % | 70.51 | % | 66.94 | % | 67.63 | % | 65.32 | % | 67.15 | % | 66.70 | % | ||||||||||||||||
- 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.
- The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investments portfolio and Other Real Estate Owned. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.
F & M Bank Corp.
Financial Highlights
For Nine Months
Ended September 30,
|
||||||||
INCOME STATEMENT
|
Unaudited
2020
|
Unaudited
2019
|
||||||
Interest and Dividend Income
|
$ | 27,280,319 | $ | 29,279,627 | ||||
Interest Expense
|
4,515,221 | 5,025,175 | ||||||
Net Interest Income
|
22,765,098 | 24,254,452 | ||||||
Non-Interest Income
|
9,016,182 | 6,909,369 | ||||||
Provision for Loan Losses
|
3,300,000 | 6,800,000 | ||||||
Impairment of long lived assets
|
19,193 | – | ||||||
Other Non-Interest Expenses
|
21,788,981 | 21,597,748 | ||||||
Income Before Income Taxes
|
6,673,106 | 2,766,076 | ||||||
Provision for Income Taxes
|
545,418 | (74,786) | ||||||
Less Minority Interest (income)/loss
|
(105,193) | (106,161) | ||||||
Net Income
|
$ | 6,022,495 | $ | 2,734,661 | ||||
Dividend on preferred stock
|
197,194 | 235,966 | ||||||
Net Income available to common shareholders
|
$ | 5,825,301 | $ | 2,498,695 | ||||
Average Common Shares Outstanding
|
3,197,718 | 3,175,192 | ||||||
Net Income Per Common Share
Dividends Declared
|
1.82.78 | .78.76 | ||||||
BALANCE SHEET
|
Unaudited
September 30, 2020
|
Unaudited
September 30, 2019
|
||||||
Cash and Due from Banks
|
$ | 14,504,566 | $ | 14,324,290 | ||||
Interest Bearing Bank Deposits
|
1,237,866 | 1,599,711 | ||||||
Federal Funds Sold
|
73,407,000 | 12,963,000 | ||||||
Loans Held for Sale
|
88,038,925 | 80,862,723 | ||||||
Loans Held for Investment | 672,524,536 | 631,828,822 | ||||||
Less Allowance for Loan Losses
|
(10,825,739) | (8,982,258) | ||||||
Net Loans Held for Investment
|
661,698,797 | 622,846,564 | ||||||
Securities
|
118,888,764 | 20,084,814 | ||||||
Other Assets
|
57,647,889 | 60,556,108 | ||||||
Total Assets
|
$ | 1,015,423,807 | $ | 813,237,210 | ||||
Deposits
|
$ | 793,535,570 | $ | 618,434,553 | ||||
Short Term Debt
|
– | 20,000,000 | ||||||
Long Term Debt
|
106,510,013 | 64,308,789 | ||||||
Other Liabilities
|
21,698,045 | 19,600,307 | ||||||
Total Liabilities
|
921,743,628 | 722,343,649 | ||||||
Preferred Stock
|
4,591,623 | 5,591,623 | ||||||
Common Equity
|
89,088,556 | 85,301,938 | ||||||
Stockholders’ Equity
|
93,680,179 | 90,893,561 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 1,015,423,807 | $ | 813,237,210 | ||||
Book Value Per Common Share
|
$ | 27.85 | $ | 26.86 | ||||
Tangible Book Value Per Common Share
|
$ | 27.84 | $ | 26.89 | ||||
CONTACT:
Carrie Comer
EVP/Chief Financial Officer
540-896-8941 orย ccomer@fmbankva.com
F&M Bank Announces Officer Promotions
F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective September 24, 2020.
Senior Vice President:ย
- Bobby Williams, Agricultural & Rural Programs Leader
Vice President:ย
- Donna Brown, Commercial Relationship Manager
- Jordan Dean, Commercial Relationship Manager
- Ryan May, Relationship Manager (Dealer Finance)
Assistant Vice President:
- Jason Crum, Branch Manager (Stuarts Draft)
- Mary Campbell, Assistant Branch Manager (Broadway)
- Debbie Koogler, Branch Manager (Myers Corner, Staunton)
- Angela Smith, Assistant Branch Manager (North Augusta, Staunton)
- Teri Hasley, Deposit Operations Manager