EX-99.1 2 fmbm_ex991.htm PRESS RELEASE Blueprint
  Exhibit 99.1
 
F & M Bank Corp.---News and Financials
F & M BANK CORP. ANNOUNCES RECORD QUARTERLY AND YEAR TO DATE EARNINGS AND DIVIDEND INCREASE
 
 CONTACT: 
 Neil Hayslett, EVP/Chief Administrative Officer 
 540-896-8941or NHayslett@FMBankVA.com
 
TIMBERVILLE, VA—October 21, 2016—F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the third quarter and year to date ending September 30, 2016.
 
Selected highlights for the quarter and year to date include:
 
●
Net income of $2.6 million and $7.0 million, respectively;
 
●
Net income per common share increased 14.04% YTD;
 
●
Net interest margin of 4.33%;
 
●
Net interest income YTD increased $1.4 million;
 
●
Loans held for investment increased $34.0 million YTD;
 
●
Return on Average Assets of 1.43% for the third quarter;
 
Dean Withers, President and CEO, commented “We are pleased to announce record third quarter and year to date earnings of $2.601 million and $7.049 million. These results represent increases of 18.82% and 13.04% for the respective periods. Loan demand continues to be strong with the growth in loans held for investment totaling $34.0 million year to date. Deposit growth has also accelerated in the last two quarters with the year to date increase now totaling $33.2 million. Our net interest margin at 4.33% has been stable over the last several quarters and continues to drive our extraordinary results.”
 
Withers continued, “During the third quarter, we opened our twelfth branch in Grottoes, Virginia and began construction on our thirteenth branch in Fishersville, Virginia. These branches will supplement the two branches we opened in 2015 in Staunton and Craigsville to further strengthen the growth of our southern market.” Withers stated, “On October 20, 2016 our Board of Directors declared a third quarter dividend of $.22 per share to common shareholders. This is an increase of $.02 (10%) over the prior quarter and $.03 (15.79%) over the prior year. Based on our most recent trade price of $25.00 per share this constitutes a 3.52% yield on an annualized basis. The dividend will be paid on November 17, 2016, to shareholders of record as of November 3, 2016.” Highlights of our financial performance are included below.
 
F & M Bank Corp. is an independent, locally-owned, community bank holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s twelve banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through two loan production offices located in Penn Laird, VA and Fishersville, VA and through its subsidiary, VBS Mortgage 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
 
 
 
2016 
 
 
2015 
 
 
 
Q3
 
 
Q2
 
 
Q1
 
 
YTD
 
 
Q3
 
 
Q2
 
 
Q1
 
 
YTD
 
Net Income (000's)
 $2,601 
 $2,358 
 $2,090 
 $7,049 
 $2,189 
 $2,176 
 $1,871 
 $6,236 
Net Income available to Common
 $2,474 
 $2,231 
 $1,962 
 $6,667 
 $2,062 
 $2,049 
 $1,743 
 $5,854 
Earnings per common share
 $0.75 
 $0.68 
 $0.60 
 $2.03 
 $0.63 
 $0.62 
 $0.53 
 $1.78 
 
    
    
    
    
    
    
    
    
Return on Average Assets
  1.43%
  1.35%
  1.27%
  1.35%
  1.38%
  1.42%
  1.25%
  1.32%
Return on Average Equity
  11.99%
  11.08%
  10.07%
  11.03%
  10.97%
  11.63%
  10.38%
  10.50%
Dividend Payout Ratio
  29.22%
  29.46%
  31.81%
  30.07%
  30.16%
  29.03%
  33.96%
  30.34%
 
    
    
    
    
    
    
    
    
Net Interest Margin
  4.23%
  4.37%
  4.39%
  4.33%
  4.41%
  4.46%
  4.46%
  4.45%
Yield on Average Earning Assets
  4.80%
  4.90%
  4.91%
  4.87%
  4.88%
  4.93%
  4.94%
  4.92%
Yield on Average Interest Bearing Liabilities
  0.79%
  0.75%
  0.74%
  0.76%
  0.67%
  0.66%
  0.67%
  0.66%
Net Interest Spread
  4.01%
  4.15%
  4.17%
  4.11%
  4.21%
  4.27%
  4.27%
  4.26%
 
    
    
    
    
    
    
    
    
Provision for Loan Losses (000's)
 $- 
 $- 
 $- 
 $- 
 $- 
 $- 
 $300 
 $300 
Net Charge-offs
 $497 
 $671 
 $42 
 $1,210 
 $45 
 $24 
 $86 
 $155 
Net Charge-offs as a % of Loans
  0.34%
  0.47%
  0.03%
  0.28%
  0.03%
  0.02%
  0.07%
  0.04%
Non-Performing Loans (000's)
 $6,196 
 $5,545 
 $6,709 
 $6,196 
 $6,386 
 $7,299 
 $7,174 
 $6,386 
Non-Performing Loans to Total Assets
  0.83%
  0.76%
  0.98%
  0.83%
  0.97%
  1.13%
  1.11%
  0.97%
Non-Performing Assets (000's)
 $8,370 
 $8,331 
 $9,486 
 $8,370 
 $9,081 
 $9,744 
 $9,943 
 $9,081 
Non-Performing Assets to Assets
  1.12%
  1.14%
  1.38%
  1.12%
  1.38%
  1.50%
  1.54%
  1.38%
 
    
    
    
    
    
    
    
    
Efficiency Ratio
  59.68%
  60.35%
  61.19%
  60.39%
  57.99%
  59.65%
  60.36%
  58.96%
 
(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 large percentage of its income to expenses.
 
 
 
 
 
 
For Nine Months
Ended September 30
 
INCOME STATEMENT
 
Unaudited
2016
 
 
Unaudited
2015
 
Interest and Dividend Income
 $23,763,034 
 $21,834,518 
Interest Expense
  2,645,378 
  2,105,120 
Net Interest Income
  21,117,656 
  19,729,398 
Non-Interest Income
  2,738,999- 
  2,880,037 
Provision for Loan Losses 
  - 
  300,000 
Other Non-Interest Expenses 
  14,465,845 
  13,371,621 
Income Before Income Taxes
  9,390,810 
  8,937,814 
Provision for Income Taxes
  2,187,368
 
  2,586,293
 
Less Minority Interest income   
  154,200
 
  115,397
 
Net Income
 $7,049,242 
 $6,236,124 
Dividend on preferred stock
  382,500 
  382,500 
Net Income available to common shareholders
 $6,666,742 
 $5,853,624 
Average Common Shares Outstanding
  3,286,165 
  3,292,709 
Net Income Per Common Share
  2.03 
  1.78 
Dividends Declared   
  .61
 
  .54
 
 
 
BALANCE SHEET
 
Unaudited
September 30, 2016
 
 
Unaudited
September 30, 2015
 
Cash and Due from Banks
 $7,718,975 
 $6,420,254 
Interest Bearing Bank Deposits
  285,630 
  489,849 
Federal Funds Sold
  4,151,000 
  - 
Loans Held for Sale
  83,164,093 
  55,481,773 
Loans Held for Investment 
  578,088,508 
  540,414,615 
  Less Allowance for Loan Losses
  (7,570,826)
  (8,869,905)
  Net Loans Held for Investment
  570,517,682 
  531,544,710 
Securities
  38,641,591 
  24,143,104 
Other Assets
  40,813,107 
  38,021,163 
    Total Assets
 $745,292,078 
 $656,100,853 
 
    
    
Deposits
 $527,823,741 
 $483,816,907 
Short Term Debt
  51,228,742 
  38,239,340 
Long Term Debt
  65,089,286 
  38,892,857 
Other Liabilities
  13,624,827 
  13,313,770 
  Total Liabilities
  657,766,596 
  574,262,874 
Preferred Stock
  9,425,123 
  9,425,123 
Common Equity
  78,100,359 
  72,412,856 
  Stockholders’ Equity
  87,525,482 
  81,837,979 
    Total Liabilities and Stockholders’ Equity
 $745,292,078 
 $656,100,853 
Book Value Per Common Share
 $23.56 
 $21.72 
Tangible Book Value Per Common Share
 $23.77 
 $21.99 
 
SOURCE:                  F & M Bank Corp.
CONTACT:               Neil Hayslett, EVP/Chief Administrative Officer
                                  540-896-8941 or NHayslett@FMBankVA.com