F & M Bank Corp. Announces First Quarter Earnings

TIMBERVILLE, VA / ACCESSWIRE / April 28, 2017 / F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter ending March 31, 2017.

Selected highlights for the quarter include:

Net income of $2.3;
Net interest margin of 4.39%;
Net interest income increased $305,000;
Return on Average Assets of 1.29% YTD;
Non-performing assets decreased $2.3 million (24.3%) versus the same period in 2016.

Dean Withers, President and CEO, commented, “We are pleased to announce first quarter earnings of $2.3 million. This represents an increase of 14.22% over first quarter of 2016. Loan and deposit growth were basically flat for the quarter which reflects typical first quarter results for the Bank. Our net interest margin at 4.39% has been stable over the last several quarters and continues to drive our extraordinary results. Non-performing assets ticked slightly higher compared to year end 2016, but are significantly below first quarter 2016.”

Withers continued, “In April, we opened our thirteenth branch just outside of Fishersville, Virginia. This branch, along with the Grottoes Branch opened in 2016 and two branches we opened in 2015 in Staunton and Craigsville, will further strengthen the growth of our southern market.”

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, VBS Mortgage and VS Title, 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

2017

2016

Net Income (000’s)

2,345

2,518

2,601

2,358

2,090

Net Income available to Common

2,241

2,414

2,474

2,231

1,962

Earnings per common share

0.68

0.74

0.75

0.68

0.60

Return on Average Assets

1.29

1.35

1.43

1.35

1.27

Return on Average Equity

10.84

11.53

11.99

11.08

10.07

Dividend Payout Ratio

32.12

29.83

26.56

27.99

31.81

Net Interest Margin

4.39

4.32

4.23

4.37

4.39

Yield on Average Earning Assets

4.93

4.88

4.80

4.90

4.91

Yield on Average Interest Bearing Liabilities

0.77

0.79

0.75

0.74

Net Interest Spread

4.16

4.09

4.01

4.15

4.17

Provision for Loan Losses (000’s)

–

Net Charge-offs

227

497

671

Net Charge-offs as a % of Loans

0.15

0.02

0.34

0.47

0.03

Non-Performing Loans (000’s)

5,091

4,870

6,196

5,545

6,709

Non-Performing Loans to Total Assets

0.71

0.65

0.83

0.76

0.98

Non-Performing Assets (000’s)

7,184

7,004

8,370

8,331

9,486

Non-Performing Assets to Assets

1.00

0.94

1.12

1.14

1.38

Efficiency Ratio (NOTE: 2016 reflect change in subsidiary presentation)

62.90

57.00

58.83

58.30

61.21

(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 34%. 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 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.

For Three Months

Ended March 31,

INCOME STATEMENT

Unaudited

2017

Unaudited

2016

Interest and Dividend Income

8,004,769

7,634,436

Interest Expense

879,100

813,556

Net Interest Income

7,125,669

6,820,880

Non-Interest Income

1,971,452

1,145,425

Provision for Loan Losses

–

Other Non-Interest Expenses

5,860,117

5,179,288

Income Before Income Taxes

3,237,004

2,787,017

Provision for Income Taxes

877,081

693,703

Less Minority Interest income

14,986

3,763

Net Income

2,344,937

2,089,551

Dividend on preferred stock

104,343

127,500

Net Income available to common shareholders

2,240,594

1,962,051

Average Common Shares Outstanding

3,271,272

3,285,373

Net Income Per Common Share

.68

.60

Dividends Declared

.22

.19

BALANCE SHEET

Unaudited

March 31, 2017

Unaudited

March 31, 2016

Cash and Due from Banks

8,003,170

7,001,425

Interest Bearing Bank Deposits

1,090,496

1,300,614

Federal Funds Sold

3,019,000

–

Loans Held for Sale

37,698,696

66,468,292

Loans Held for Investment

591,005,528

556,893,697

Less Allowance for Loan Losses

(7,316,628

)

(8,739,809

)

Net Loans Held for Investment

583,688,900

548,153,888

Securities

37,952,434

25,888,234

Other Assets

43,432,983

39,225,323

Total Assets

714,885,679

688,037,776

Deposits

536,560,173

495,702,478

Short Term Debt

20,000,000

46,624,663

Long Term Debt

53,045,000

47,178,571

Other Liabilities

17,190,649

14,298,539

Total Liabilities

626,795,822

603,804,251

Preferred Stock

7,608,873

9,425,123

Common Equity

80,480,984

74,808,402

Stockholders’ Equity

88,089,857

84,233,525

Total Liabilities and Stockholders’ Equity

714,885,679

688,037,776

Book Value Per Common Share

24.59

22.77

Tangible Book Value Per Common Share

24.59

22.61

CONTACT:

Neil Hayslett, EVP/Chief Administrative Officer
540-896-8941 or NHayslett@FMBankVA.com

SOURCE: F & M Bank Corp.

ReleaseID: 460877

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