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First Quarter 2019 Earnings and Dividends

F & M Bank Corp. Announces First Quarter Earnings and Dividend Press Release | 04/29/2019

TIMBERVILLE, VA / ACCESSWIRE / April 29, 2019 / F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter ending March 31, 2019.

Selected highlights for the quarter include:

  • Net income of $1.29 million;
  • Net interest margin of 4.67%;
  • Net interest income increased $270,000;
  • Loans held for investment increased $5.4 million and $21.5 million, respectively for the quarter and trailing 12 months;
  • Total deposits increased $9.5 million and $32.2 million, respectively for the quarter and for the trailing 12 months.

Mark Hanna, President, commented ”Our first quarter earnings of $1,29 million were weighed down by an increase in our provision for loan losses and a write-down on a piece of OREO property. While this is a $686,000 decrease compared to the first quarter of 2018, our pre-tax core operating earnings increased slightly in 2019 to $3.06 million versus $3.020 million in 2018. Core operating earnings excludes provision for loan losses and $268.000 of OREO losses in 2019. Core operating earnings continue to be fueled by a strong net interest margin of 4.67%.”

Mr. Hanna continued, ‘Non-performing loans and assets were virtually flat versus fourth quarter and down significantly versus second and third quarter 2018. We continue to work through several long-term problem assets, many of which pre-date the last recession. During the first quarter we charged $1,450,000 to the provision for loan losses and had net charge-offs of $1,757,000. These charge-offs put us in a better position to move some of these problem assets off of our balance sheet within the coming quarters.”

Mr. Hanna further stated, ”We continue to be busy with new and updated facilities. In March we completed the relocation of our Edinburg branch to a completely renovated office at 300 Stoney Creek Blvd, Edinburg. We anticipate that our Stuarts Draft Office, located at 2782 Stuarts Draft Highway will open in July. While the level of branching that we have undertaken in recent years has added to our overhead costs, we are beginning to realize the benefits of the deposit growth across our footprint as evidenced by our quarterly and year over year deposit growth.

On April 24, 2019 our Board of Directors declared a first quarter dividend of $.25 per share to common shareholders. Based on our most recent trade price of $31.40 per share this constitutes a 3.18% yield on an annualized basis. The dividend will be paid on May 15, 2019, to shareholders of record as of May 1, 2019.”

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 thirteen 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 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

Net Income (000’s)
Net Income available to Common
Earnings per common share
Return on Average Assets
Return on Average Equity
Dividend Payout Ratio exc Special Dividend
Dividend Payout Ratio with Special Dividend
Net Interest Margin
Yield on Average Earning Assets
Yield on Average Interest Bearing Liabilities
Net Interest Spread
Provision for Loan Losses (000’s)
Net Charge-offs
Net Charge-offs as a % of Loans
Non-Performing Loans (000’s)
Non-Performing Loans to Total Assets
Non-Performing Assets (000’s)
Non-Performing Assets to Assets
Efficiency Ratio
  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 Three Months
Ended March 31,
Interest and Dividend Income
Interest Expense
Net Interest Income
Non-Interest Income
Provision for Loan Losses1,450,000680,000
Other Non-Interest Expenses
Income Before Income Taxes
Provision for Income Taxes
Less Minority Interest (income)/loss
Net Income
Dividend on preferred stock
Net Income available to common shareholders
Average Common Shares Outstanding
Net Income Per Common Share
Dividends Declared
March 31, 2019
March 31, 2018
Cash and Due from Banks
Interest Bearing Bank Deposits
Federal Funds Sold
Loans Held for Sale
Loans Held for Investment
Less Allowance for Loan Losses
Net Loans Held for Investment
Other Assets
Total Assets
Short Term Debt
Long Term Debt
Other Liabilities
Total Liabilities
Preferred Stock
Common Equity
Stockholders’ Equity
Total Liabilities and Stockholders’ Equity
Book Value Per Common Share
Tangible Book Value Per Common Share


Neil Hayslett, EVP/Chief Operating Officer
540-896-8941 or

SOURCE: F & M Bank Corp.