0001654954-17-009577.txt : 20171020 0001654954-17-009577.hdr.sgml : 20171020 20171020110236 ACCESSION NUMBER: 0001654954-17-009577 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20171020 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20171020 DATE AS OF CHANGE: 20171020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: F&M BANK CORP CENTRAL INDEX KEY: 0000740806 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 541280811 STATE OF INCORPORATION: VA FISCAL YEAR END: 1201 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13273 FILM NUMBER: 171146276 BUSINESS ADDRESS: STREET 1: P.O. BOX 1111 CITY: TIMBERVILLE STATE: VA ZIP: 22853 BUSINESS PHONE: 540-896-8941 MAIL ADDRESS: STREET 1: P. O. BOX 1111 CITY: TIMBERVILLE STATE: VA ZIP: 22853 8-K 1 fmbm_8k.htm CURRENT REPORT Blueprint
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 20, 2017
___________
 
F & M Bank Corp.
(Exact name of registrant as specified in its charter)
 
Virginia
(State or other jurisdiction
of incorporation)
000-13273
(Commission File Number)
54-1280811
(IRS Employer
Identification No.)
 
P.O. Box 1111Timberville, Virginia  
(Address of principal executive offices)
22853
(Zip Code)
 
Registrant’s telephone number, including area code: (540) 896-8941
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company   
 
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
 

 
 
 
Item 2.02.                        Results of Operations and Financial Condition.
 
On October 20, 2017, F & M Bank Corp. (the “Company”) issued a press release announcing results for the quarter ended September 30, 2017. A copy of the press release is attached as Exhibit 99.1.
 
The information in this Form 8-K, and the exhibit hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
 
Item 9.01.                        Financial Statements and Exhibits.
 
(d)           
Exhibits.
 
Exhibit No.
Description
 
Press Release dated October 20, 2017
 
 
 
 
 
 
 
 
SIGNATURES
     
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
F & M Bank Corp.
 
 
 
 
 
Date: October 20, 2017
By:  
/s/ Neil W. Hayslett
 
 
 
Neil W. Hayslett 
 
 
 
Executive Vice President and Chief Administrative Officer 
 
 
     
 
 
 
 
 
 
EXHIBIT INDEX
 
Exhibit No.           Description
 
Press Release dated October 20, 2017.
 
 
 
 
 
 
 
 
 
 
 
 
 
EX-99.1 2 fmbm_ex991.htm PRESS RELEASE DATED OCTOBER 20, 2017 Blueprint
  Exhibit 99.1
 
F & M Bank Corp.---News and Financials
 
F & M BANK CORP. ANNOUNCES THIRD QUARTER EARNINGS AND DIVIDEND INCREASE
 
CONTACT:
Neil Hayslett, EVP/Chief Administrative Officer
540-896-8941 or NHayslett@FMBankVA.com
 
TIMBERVILLE, VA—October 20, 2017 —F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the quarter ending September 30, 2017.
 
Selected highlights for the quarter include:
 
Net income of $2.55;
 
Net interest margin of 4.48%;
 
Net interest income increased $413,000;
 
Return on Average Assets of 1.34%;

Dean Withers, President and CEO, commented “We are pleased to announce third quarter earnings of $2.55 million, which is in line with the same period last year. Growth in loans held for investment totaled $16.6 million for the third quarter of 2017 and $41.9 million compared to the same period last year. Our net interest margin at 4.48% continues to be driven by our strong loan to asset ratio. Non-performing assets are relatively stable versus second quarter and have decreased $560,000 versus the same period in 2016.”
 
Withers stated, “On October 19, 2017 our Board of Directors declared a third quarter dividend of $.24 per share to common shareholders. This is an increase of $.01 over the prior quarter and $.02 over the same period last year. Based on our most recent trade price of $30.45 per share this constitutes a 3.15% yield on an annualized basis. The dividend will be paid on November 16, 2017, to shareholders of record as of November 2, 2017.” 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    
 
 
 
Q3
 
 
Q2
 
 
Q1
 
 
YTD
 
 
Q3
 
 
Q2
 
 
Q1
 
 
YTD
 
Net Income (000's)
  2,550 
  2,328 
  2,345 
  7,223 
  2,601 
  2,358 
  2,090 
  7,049 
Net Income available to Common
  2,447 
  2,223 
  2,241 
  6,911 
  2,474 
  2,231 
  1,962 
  6,667 
Earnings per common share
  0.75 
  0.68 
  0.68 
  2.11 
  0.75 
  0.68 
  0.60 
  2.03 
 
    
    
    
    
    
    
    
    
Return on Average Assets
  1.34%
  1.28%
  1.29%
  1.30%
  1.43%
  1.35%
  1.27%
  1.35%
Return on Average Equity
  11.28%
  10.48%
  10.84%
  10.83%
  11.99%
  11.08%
  10.07%
  11.03%
Dividend Payout Ratio
  31.91%
  34.07%
  32.12%
  32.67%
  29.22%
  29.46%
  31.81%
  30.07%
 
    
    
    
    
    
    
    
    
Net Interest Margin
  4.48%
  4.51%
  4.39%
  4.47%
  4.23%
  4.37%
  4.39%
  4.33%
Yield on Average Earning Assets
  5.08%
  5.08%
  4.93%
  5.05%
  4.80%
  4.90%
  4.91%
  4.87%
Cost of Average Interest Bearing Liabilities
  0.85%
  0.78%
  0.77%
  0.82%
  0.79%
  0.75%
  0.74%
  0.76%
Net Interest Spread
  4.23%
  4.30%
  4.16%
  4.23%
  4.01%
  4.15%
  4.17%
  4.11%
 
    
    
    
    
    
    
    
    
Provision for Loan Losses (000's)
    
 $- 
 $- 
 $- 
 $- 
 $- 
 $- 
 $- 
Net Charge-offs
 $274 
 $100 
 $227 
 $601 
 $497 
 $671 
 $42 
 $1,210 
Net Charge-offs as a % of Loans
  0.18%
  0.07%
  0.15%
  0.13%
  0.34%
  0.47%
  0.03%
  0.28%
Non-Performing Loans (000's)
 5,662 
 $5,677 
 $5,091 
 $5,662 
 $6,196 
 $5,545 
 $6,709 
 $6,196 
Non-Performing Loans to Total Assets
  0.74%
  0.76%
  0.71%
  0.74%
  0.83%
  0.76%
  0.98%
  0.83%
Non-Performing Assets (000's)
  $7,810 
 $7,685 
 $7,184 
 $7,810 
 $8,370 
 $8,331 
 $9,486 
 $8,370 
Non-Performing Assets to Assets
  1.02%
  1.03%
  1.00%
  1.02%
  1.12%
  1.14%
  1.38%
  1.12%
 
    
    
    
    
    
    
    
    
Efficiency Ratio (NOTE: reflects change in subsidiary presentation)
  62.12%
  63.67%
  63.27%
  63.01%
  60.70%
  59.64%
  63.59%
  61.26%
 
(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.
 
 
 
 
F & M Bank Corp.
Financial Highlights
 
 
 
 For Nine Months
 Ended September 30,
 
INCOME STATEMENT
 
 Unaudited
 2017
 
 
 Unaudited
 2016
 
Interest and Dividend Income
 $24,954,457 
 $23,792,877 
Interest Expense
  2,861,460 
  2,645,378 
  Net Interest Income
  22,092,997 
  21,147,499 
Non-Interest Income
  5,939,934 
  4,115,586 
Provision for Loan Losses
  - 
  - 
Other Non-Interest Expenses
  18,125,666 
  15,872,275 
  Income Before Income Taxes
  9,907,265 
  9,390,810 
Provision for Income Taxes
  2,632,971 
  2,187,368 
Less Minority Interest income
  51,643 
  154,200 
Net Income
 $7,222,651 
 $7,049,242 
Dividend on preferred stock
  312,009 
  382,500 
Net Income available to common shareholders
 $6,910,642 
 $6,666,742 
Average Common Shares Outstanding
  3,271,863 
  3,286,165 
Net Income Per Common Share
  2.11 
  2.03 
Dividends Declared
  .69 
  .61 
 
BALANCE SHEET
 
 Unaudited
 September 30, 2017
 
 
 Unaudited
 September 30, 2016
 
Cash and Due from Banks
 $8,800,422 
 $7,718,975 
Interest Bearing Bank Deposits
  945,395 
  285,630 
Federal Funds Sold
  - 
  4,151,000 
Loans Held for Sale
  58,177,450 
  83,164,093 
Loans Held for Investment
  619,959,738 
  578,088,508 
  Less Allowance for Loan Losses
  (6,941,982)
  (7,570,826)
  Net Loans Held for Investment
  613,017,756 
  570,517,682 
Securities
  36,407,258 
  38,705,043 
Other Assets
  46,336,325 
  40,749,655 
    Total Assets
 $763,684,606 
 $745,292,078 
 
    
    
Deposits
 $562,379,965 
 $527,823,741 
Short Term Debt
  42,128,000 
  51,228,742 
Long Term Debt
  50,840,363 
  65,089,286 
Other Liabilities
  17,180,327 
  13,624,827 
  Total Liabilities
  672,528,655 
  657,766,596 
Preferred Stock
  7,528,873 
  9,425,123 
Common Equity
  83,627,078 
  78,100,359 
Stockholders’ Equity
  91,155,951 
  87,525,482 
    Total Liabilities and Stockholders’ Equity
 $763,684,606 
 $745,292,078 
Book Value Per Common Share
 $25.58 
 $23.77 
Tangible Book Value Per Common Share
 $25.42 
 $23.56 
 
SOURCE:     
F & M Bank Corp.
CONTACT:     
Neil Hayslett, EVP/Chief Administrative Officer
 
540-896-8941 or NHayslett@FMBankVA.com