Archive for category: Press Releases

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

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

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

Selected financial highlights for the quarter include:

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

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

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

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

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s eleven (as of July 31, 2020) banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us at www.fmbankva.com or by calling (540) 896-8941.

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

F & M Bank Corp.
Key Statistics

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

(1) The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 21%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.

(2) The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investments portfolio and Other Real Estate Owned. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

F & M Bank Corp.
Financial Highlights

		For Six Months Ended June 30,
INCOME STATEMENT		Unaudited 2020				Unaudited 2019
Interest and Dividend Income		$	18,101,844			$	19,313,133
Interest Expense			3,090,815				3,224,392
Net Interest Income			15,011,029				16,088,741
Non-Interest Income			5,681,703				4,265,082
Provision for Loan Losses			2,300,000				3,050,000
Impairment of long lived assets			19,193				–
Other Non-Interest Expenses			14,385,236				14,121,689
Income Before Income Taxes			3,988,303				3,182,134
Provision for Income Taxes			173,250				232,317
Less Minority Interest (income)/loss			–				(28,589	)
Net Income		$	3,815,053			$	2,921,228
Dividend on preferred stock			131,746				157,373
Net Income available to common shareholders		$	3,683,307			$	2,763,855
Average Common Shares Outstanding			3,199,183				3,200,119
Net Income Per Common Share			1.15				.86
Dividends Declared			.52				.50

BALANCE SHEET		Unaudited June 30, 2020				Unaudited June 30, 2019
Cash and Due from Banks		$	16,950,810			$	8,075,243
Interest Bearing Bank Deposits			1,199,474				768,029
Federal Funds Sold			68,548,000				5,937,000
Loans Held for Sale			90,403,042				78,405,674
Loans Held for Investment			661,528,802				636,407,632
Less Allowance for Loan Losses			(10,033,466	)			(6,050,257	)
Net Loans Held for Investment			651,495,336				630,357,375
Securities			93,381,484				23,524,719
Other Assets			59,623,971				59,880,840
Total Assets		$	981,602,117			$	806,948,880
Deposits		$	766,651,982			$	608,470,178
Short Term Debt			–				40,000,000
Long Term Debt			100,585,081				47,916,889
Other Liabilities			22,063,159				18,487,049
Total Liabilities			889,300,222				714,874,116
Preferred Stock			4,591,623				5,591,623
Common Equity			87,710,272				86,483,141
Stockholders’ Equity			92,301,895				92,074,764
Total Liabilities and Stockholders’ Equity		$	981,602,117			$	806,948,880
Book Value Per Common Share		$	27.44			$	27.18
Tangible Book Value Per Common Share		$	27.51			$	27.23

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

 

 

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces three branch closures, its financial results for the first quarter ending March 31, 2019 and first quarter dividend to shareholders.

F&M Bank Corp. has worked diligently during the COVID-19 global pandemic to meet the needs of our customers by providing Paycheck Protection Plan (PPP) loans through the Small Business Administration, processing loan deferrals and continuing to operate our core services while practicing social distancing. As of April 27, 2020, we have processed 531 PPP loans for a total of $51.5 million, processed 683 deferrals and continued to operate our branches in a drive-thru only capacity daily, with courier pickup and by appointment account opening.

We are far from seeing an end to the effects of the pandemic on our businesses and economy, however the efforts of our management and staff to support our communities has been tremendous and is a testament to community banking. This includes an early initiative to fund $100,000 in small business grant programs to support our community in the Shenandoah Valley managing through the impacts of COVID-19. .

As part of our ongoing strategic efforts to reduce overhead, we have made the difficult decision to consolidate three of our branch locations in Craigsville, Grottoes and Luray, VA. While these physical locations will close on July 31, 2020, client accounts will remain supported at neighboring offices. Impacted employees from these branches will be offered comparable positions within the organization.

Selected financial highlights for the quarter include:

• Net income of $1.19 million.
• Net interest margin of 3.97%.
• Loans held for investment increased $6.2 million for the quarter
• Total deposits increased $37.6 million and $78.5 million, respectively for the quarter and for the trailing 12 months.
• Nonperforming loans decreased to 0.50% at the end of the quarter from 0.70% of total assets on 12/31/2019 and 1.36% on 6/30/2019.

Mark Hanna, President, commented “Our first quarter earnings of $1.19 million were weighed down by an increase in our provision for loan losses due to economic factors related to COVID-19. These results are similar to first quarter of 2019, despite the sale of a portion of our dealer portfolio and a correction to the expensing of dealer commissions. Our net interest margin of 3.97% shows a historical decline but still remains strong in the current environment. Our balance sheet liquidity has increased significantly over the last two quarters and we are implementing strategic solutions to leverage these assets.”

Mr. Hanna continued, ‘Nonperforming loans have improved dramatically over prior year, decreasing $6.4 million since first quarter of 2019, and also decreasing $1.6 million since year end 2019. Efforts continue to maintain our goal of 0.50% of total assets.

On April 24, 2020 our Board of Directors declared a first quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $17.25 per share this constitutes a 6.03% yield on an annualized basis. The dividend will be paid on June 1, 2020, to shareholders of record as of May 15, 2020.”

Highlights of our financial performance are included below.

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s fourteen 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 statement

s following the date of this press release.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 21%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.
2. The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investments portfolio and Other Real Estate Owned. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

SOURCE: F&M Bank Corp

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ended December 31, 2019.

Selected highlights for the quarter and year to date include:

• Net income of $1.9 million and $4.6 million, respectively;
• Non-performing assets decreased $2.43 million during the fourth quarter and $5.43 million year to date;
• Net interest margin 3.81% and 4.33%. respectively;
• Total deposits increased $23.3 million and $50.4 million, respectively for the quarter and year to date.

Mark Hanna, President, commented, “We are pleased to announce fourth quarter and year-to-date earnings of $1.9 million and $4.6 million, respectively. Although these results are lower than prior year, we made great progress in positioning F&M Bank for continued success by substantially reducing our Non-performing assets and growing Core deposit relationships. It is important to note that Fourth Quarter earnings were reduced by several non-recurring items related to dealer deferred cost amortization, pension costs and severance benefits. Our margin decreased as a result of lower loan balances due primarily to sales of indirect dealer loans which occurred during the second half of the year and unrecognized dealer loan costs. Our provision for loan losses increased in 2019 due to higher levels of substandard loans and identification of problem credits. We feel the allowance for loan losses reflects the current risk in our loan portfolio. As we push into 2020, we feel that we are well positioned to leverage our surplus liquidity with organic loan growth and continued improvement in reducing our funding costs.

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

Restatement of 2018 Financial Statements: In November 2019, as a result of the sale of a portion of the Bank’s indirect dealer loan accounts, management discovered a system input error that prevented the deferred costs associated with dealer loans originated after a certain date from amortizing properly. This error in accounting resulted in a restatement of calendar year 2018 earnings of $261,728, net of tax and a correction of $248,090, net of tax for years prior to 2018 which is reflected as a reduction to retained earnings in the restated 2018 consolidated financial statements. The 2019 earnings properly reflect the amortization, which resulted in reduction of earnings of $184,890, net of tax.

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 services industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONTACT: Carrie Comer, EVP/Chief Financial Officer
540-896-8941 or ccomer@FMBankVA.com