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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 EARNINGS
CONTACT:
Neil Hayslett, EVP/Chief Administrative
Officer
540-896-8941 or
NHayslett@FMBankVA.com
TIMBERVILLE,
VA—February 2, 2018—F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank, announces its
financial results for the fourth quarter and year ending December
31, 2017.
Selected
highlights for the quarter and year to date include:
●
Net
income of $1.8 million and $9.0 million, respectively;
●
Net
income excluding tax law change of $2.6 million and $9.8 million,
respectively;
●
Net
interest margin of 4.53%;
●
Loans
held for investment increased $25.3 million YTD;
●
Return
on Average Assets of 1.21% YTD.
Mark Hanna, President, commented
“We
are pleased to announce fourth quarter and year to date earnings of
$1.787 million and $9.010 million, respectively. These results
included the one-time deferred tax asset adjustment of $811,000 as
a result of the tax law passed in late 2017. Prior to this
adjustment the quarter and year end results would have been an
increase over the same period in 2016 by 3.18% and 2.65%,
respectively. In addition, return on average assets would have been
1.32% without the one-time deferred tax adjustment. Loan demand
continues to be strong with the growth in loans held for investment
totaling $25.3 million year to date. Deposit growth also
accelerated in the second half of 2017 with the year to date
increase now totaling $32.1 million. Our net interest margin at
4.53% has been stable over the last several quarters and continues
to drive our results.”
Hanna continued, “During the 2017, we
opened our thirteenth branch in Fishersville, Virginia and
relocated a smaller branch in Harrisonburg, VA to a larger location
in Rockingham County. These branches will supplement the growth of
our southern market and enhance visibility in the
Harrisonburg/Rockingham County 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 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
|
2017
|
2016
|
||
|
Q4
|
YTD
|
Q4
|
YTD
|
Net
Income (000's)
|
$1,787
|
$9,010
|
$2,518
|
$9,567
|
Net
Income available to Common
|
$1,684
|
$8,595
|
$2,414
|
$9,081
|
Earnings
per common share
|
$0.52
|
$2.63
|
$0.74
|
$2.77
|
|
|
|
|
|
Return
on Average Assets
|
0.93%
|
1.21%
|
1.35%
|
1.34%
|
Return
on Average Equity
|
7.84%
|
10.01%
|
11.53%
|
11.18%
|
Dividend
Payout Ratio
|
48.08%
|
35.67%
|
29.83%
|
28.92%
|
|
|
|
|
|
Net
Interest Margin
|
4.68%
|
4.52%
|
4.32%
|
4.34%
|
Yield
on Average Earning Assets
|
5.28%
|
5.11%
|
4.88%
|
4.89%
|
Cost
of Average Interest Bearing Liabilities
|
0.87%
|
0.83%
|
0.79%
|
0.77%
|
Net
Interest Spread
|
4.41%
|
4.28%
|
4.09%
|
4.12%
|
|
|
|
|
|
Provision
for Loan Losses (000's)
|
-
|
-
|
-
|
-
|
Net
Charge-offs
|
$898
|
$1,499
|
$28
|
$1,238
|
Net
Charge-offs as a % of Loans
|
0.58%
|
0.24%
|
0.02%
|
0.21%
|
Non-Performing
Loans (000's)
|
$7,102
|
$7,102
|
$4,870
|
$4,870
|
Non-Performing
Loans to Total Assets
|
0.94%
|
0.94%
|
0.65%
|
0.65%
|
Non-Performing
Assets (000's)
|
$9,086
|
$9,086
|
$7,004
|
$7,004
|
Non-Performing
Assets to Assets
|
1.21%
|
1.21%
|
0.94%
|
0.94%
|
|
|
|
|
|
Efficiency
Ratio (NOTE: reflects change in subsidiary
presentation)
|
63.54%
|
63.01%
|
59.43%
|
60.79%
|
(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 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
|
For Twelve
Months
Ended December
31,
|
|
INCOME
STATEMENT
|
Unaudited
2017
|
Audited
2016
|
Interest and
Dividend Income
|
$34,095,349
|
$32,094,773
|
Interest
Expense
|
3,896,889
|
3,599,410
|
Net
Interest Income
|
30,198,460
|
28,495,363
|
Gross Security
Gains (Losses)
|
(41,914)
|
|
Non-Interest
Income
|
7,934,620
|
3,664,011
|
Provision for Loan
Losses
|
-
|
-
|
Other Non-Interest
Expenses
|
24,719,017
|
19,298,572
|
Income Before
Income Taxes
|
13,372,149
|
12,860,802
|
Provision for
Income Taxes
|
4,330,404
|
3,099,305
|
Less Minority
Interest income
|
31,461
|
194,012
|
Net
Income
|
$9,010,284
|
$9,567,485
|
Dividend on
preferred stock
|
415,331
|
486,843
|
Net Income
available to common shareholders
|
$8,594,953
|
$9,080,642
|
Average Common
Shares Outstanding
|
3,269,713
|
3,282,335
|
Net Income Per
Common Share
|
2.63
|
2.77
|
Dividends
Declared
|
.94
|
.80
|
3
BALANCE
SHEET
|
Unaudited
December
31,
2017
|
Audited
December
31,
2016
|
Cash and Due from
Banks
|
$10,622,352
|
$7,755,158
|
Interest Bearing
Bank Deposits
|
1,284,351
|
673,811
|
Federal Funds
Sold
|
-
|
7,926,000
|
Loans Held for
Sale
|
39,774,515
|
62,734,803
|
Loans Held for
Investment
|
616,974,067
|
591,636,497
|
Less
Allowance for Loan Losses
|
(6,044,365)
|
(7,543,289)
|
Net
Loans Held for Investment
|
610,929,702
|
584,093,208
|
Securities
|
41,242,965
|
39,410,750
|
Other
Assets
|
49,416,495
|
42,295,110
|
Total
Assets
|
$753,270,380
|
$744,888,910
|
|
|
|
Deposits
|
$569,176,519
|
$537,085,312
|
Short Term
Debt
|
25,296,000
|
40,000,000
|
Long Term
Debt
|
49,732,532
|
64,237,143
|
Other
Liabilities
|
17,790,459
|
16,884,636
|
Total
Liabilities
|
661,995,510
|
658,207,091
|
Stockholders’
Equity
|
91,274,870
|
86,681,819
|
Total
Liabilities and Stockholders’ Equity
|
$753,270,380
|
$744,888,910
|
Book Value Per
Common Share
|
$25.73
|
$24.12
|
Tangible Book Value
Per Common Share
|
$25.64
|
$24.18
|
SOURCE: F & M Bank Corp.
CONTACT: Neil Hayslett, EVP/Chief Administrative
Officer
540-896-8941 or
NHayslett@FMBankVA.com
4