Attached files
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| 8-K - CURRENT REPORT - F&M BANK CORP | fmbm_8k.htm |
Exhibit
99.1
F & M Bank Corp.---News and Financials
F & M BANK CORP. ANNOUNCES SECOND QUARTER EARNINGS AND DIVIDEND
INCREASE
|
CONTACT:
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Neil Hayslett, EVP/Chief Administrative
Officer
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540-896-8941 or
NHayslett@FMBankVA.com
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TIMBERVILLE,
VA—July 25, 2017 —F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank, announces its
financial results for the quarter ending June 30,
2017.
Selected
highlights for the quarter include:
●
Net
income of $2.3;
●
Net
interest margin of 4.51%;
●
Net
interest income increased $533,000;
●
Return
on Average Assets of 1.28% YTD;
.
Dean Withers, President and CEO, commented
“We
are pleased to announce second quarter earnings of $2.3 million,
which is in line with the same period last year. Growth in loans
held for investment totaled $12.4 million for the second quarter of
2017 and $38.3 million compared to the same period last year. Our
net interest margin at 4.51% has been increasing due to a lessening
reliance on lower yielding loans held for sale and continues to
drive our results. Non-performing assets ticked slightly higher
compared to year end 2016, but are below second quarter
2016.”
Withers stated, “On July 20, 2017 our
Board of Directors declared a second quarter dividend of $.23 per
share to common shareholders. This is an increase of $.01 over the
prior quarter and $.03 over the prior year. Based on our most
recent trade price of $29.45 per share this constitutes a 3.12%
yield on an annualized basis. The dividend will be paid on August
17, 2017, to shareholders of record as of August 3,
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.
1
F&M
Bank Corp.
Key
Statistics
|
|
2017
|
|
2016
|
|
||
|
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Q2
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Q1
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YTD
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Q2
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Q1
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YTD
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Net
Income (000's)
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2,328
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2,345
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$4,673
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$2,358
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$2,090
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$4,448
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Net
Income available to Common
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2,223
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2,241
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$4,464
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$2,231
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$1,962
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$4,193
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Earnings
per common share
|
0.68
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0.68
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$1.36
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$0.68
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$0.60
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$1.28
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|
|
|
|
|
|
|
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Return
on Average Assets
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1.28%
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1.29%
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1.28%
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1.35%
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1.27%
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1.30%
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Return
on Average Equity
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10.48%
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10.84%
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10.60%
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11.08%
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10.07%
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10.53%
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Dividend
Payout Ratio
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34.07%
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32.12%
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32.98%
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29.46%
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31.81%
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30.47%
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Net
Interest Margin
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4.51%
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4.39%
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4.45%
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4.37%
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4.39%
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4.39%
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Yield
on Average Earning Assets
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5.08%
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4.93%
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5.01%
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4.90%
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4.91%
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4.92%
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Cost
of Average Interest Bearing Liabilities
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0.78%
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0.77%
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0.78%
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0.75%
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0.74%
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0.75%
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Net
Interest Spread
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4.30%
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4.16%
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4.23%
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4.15%
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4.17%
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4.17%
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|
|
|
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Provision
for Loan Losses (000's)
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$-
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$-
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$-
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$-
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$-
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$-
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Net
Charge-offs
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$100
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$227
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$327
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$671
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$42
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$713
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Net
Charge-offs as a % of Loans
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0.07%
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0.15%
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0.11%
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0.47%
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0.03%
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0.24%
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Non-Performing
Loans (000's)
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$5,677
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$5,091
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$5,677
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$5,545
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$6,709
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$5,545
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Non-Performing
Loans to Total Assets
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0.76%
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0.71%
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0.76%
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0.76%
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0.98%
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0.76%
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Non-Performing
Assets (000's)
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$7,685
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$7,184
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$7,685
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$8,331
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$9,486
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$8,331
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Non-Performing
Assets to Assets
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1.03%
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1.00%
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1.03%
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1.14%
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1.38%
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1.14%
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Efficiency
Ratio (NOTE: reflects change in subsidiary
presentation)
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63.65%
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63.29%
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63.47%
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59.64%
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63.59%
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61.56%
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(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.
2
F
& M Bank Corp.
Financial
Highlights
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For Six
Months
Ended June
30,
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|
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INCOME
STATEMENT
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Unaudited
2017
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Unaudited
2016
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Interest and
Dividend Income
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$16,265,977
|
$15,577,974
|
|
Interest
Expense
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1,830,777
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1,675,312
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Net
Interest Income
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14,435,200
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13,902,662
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Non-Interest
Income
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3,927,500
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2,581,020
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Provision for Loan
Losses
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-
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-
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Other Non-Interest
Expenses
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11,971,269
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10,413,184
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Income Before
Income Taxes
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6,391,431
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6,070,498
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Provision for
Income Taxes
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1,686,480
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1,532,648
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Less Minority
Interest income
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31,786
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90,173
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Net
Income
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$4,673,165
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$4,447,677
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Dividend on
preferred stock
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208,686
|
255,000
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Net Income
available to common shareholders
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$4,464,479
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$4,192,677
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Average Common
Shares Outstanding
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3,272,318
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3,285,916
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Net Income Per
Common Share
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1.36
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1.28
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Dividends
Declared
|
.45
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.39
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BALANCE
SHEET
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Unaudited
June
30,
2017
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Unaudited
June
30,
2016
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Cash and Due from
Banks
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$7,875,821
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$7,316,135
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Interest Bearing
Bank Deposits
|
614,644
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1,275,061
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Federal Funds
Sold
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3,174,000
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-
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Loans Held for
Sale
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51,766,953
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98,074,001
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Loans Held for
Investment
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603,434,882
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565,135,623
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Less
Allowance for Loan Losses
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(7,216,176)
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(8,067,818)
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Net
Loans Held for Investment
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596,218,706
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557,067,805
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Securities
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39,106,847
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25,014,203
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Other
Assets
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45,505,787
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41,290,701
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Total
Assets
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$744,262,758
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$730,037,906
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Deposits
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$536,486,237
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$504,710,581
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Short Term
Debt
|
50,000,000
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59,417,530
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Long Term
Debt
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51,937,857
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66,196,429
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Other
Liabilities
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16,165,865
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13,731,263
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Total
Liabilities
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654,589,959
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644,055,803
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Preferred
Stock
|
7,588,873
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9,425,123
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Common
Equity
|
82,083,926
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76,556,980
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Stockholders’
Equity
|
89,672,799
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85,982,103
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Total
Liabilities and Stockholders’ Equity
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$744,262,758
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$730,037,906
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Book Value Per
Common Share
|
$25.07
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$23.20
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Tangible Book Value
Per Common Share
|
$24.95
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$23.11
|
SOURCE:
F
& M Bank Corp.
CONTACT:
Neil
Hayslett, EVP/Chief Administrative Officer
540-896-8941 or
NHayslett@FMBankVA.com
3