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
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CONTACT:
Neil Hayslett, EVP/Chief Operating
Officer
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540-896-8941 or
NHayslett@FMBankVA.com
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TIMBERVILLE,
VA—July 25, 2018—F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank, announces its
financial results for the second quarter ending June 30,
2018.
Selected
highlights for the quarter include:
●
Net
income of $1.69 million;
●
Net
interest margin of 4.64% an increase of 13 BPs compared to one year
ago;
●
YTD
Net interest income increased $1,175,000;
●
Loans
held for investment increased $30.7 million, or 5.1%, compared to
one year ago;
●
Total
deposits increased $32.1 million, or 6.0%, compared to one year
ago;
●
Non-Performing
Loans to Assets increase to 1.94% due to two large relationships
that were placed on non-accrual status.
Mark Hanna, President, commented
“Net income for the
second
quarter totaled $1.69 million. While this is a $641,000 decrease
compared to the second quarter of 2017, our pre-tax core operating
earnings increased $709,000 in 2018 to a total of $3.04 million
versus $2.33 million in 2017. Core operating earnings excludes the
2018 provision for loan losses. Loans and deposits increased
approximately $31 million and $32 million, respectively, in the
prior 12 months. This growth continues to drive our net interest
margin which rose to 4.64% versus 4.51% when compared to the second
quarter of 2017, despite the increase in nonperforming
loans.”
Mr. Hanna continued, ‘Non-performing loans and assets
increased significantly versus the prior quarter. All of the
increase is related to two large commercial relationships. While we
continue to work with these borrowers, we recognized a $1.35
million provision for loan losses in the second quarter to reflect
our updated assessment of the value of these assets. This
additional provision resulted in the allowance for loan loss
balance increasing $1,061,000 as compared to year end
2017.”
Hanna further stated, “During the second
quarter we completed the rebranding of VBS Mortgage to F&M
Mortgage to more closely align our marketing efforts across the
companies. On July 19, 2018 our Board of Directors declared a
second quarter dividend of $.25 per share to common shareholders.
Based on our most recent trade price of $37.55 per share this
constitutes a 2.66% yield on an annualized basis. The dividend will
be paid on August 16, 2018, to shareholders of record as of August
2, 2018.”
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, F&M Mortgage and VSTitle, 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
riskfactors 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
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2018
|
2017
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||||
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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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$1,687
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$1,973
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$3,660
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$2,328
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$2,345
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$4,673
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Net Income
available to Common
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$1,583
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$1,870
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$3,453
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$2,223
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$2,241
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$4,464
|
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Earnings per common
share
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$0.49
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$0.57
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$1.06
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$0.68
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$0.68
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$1.36
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|
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Return on Average
Assets
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0.91%
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1.11%
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0.98%
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1.28%
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1.29%
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1.28%
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Return on Average
Equity
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7.38%
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8.75%
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8.06%
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10.48%
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10.84%
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10.60%
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Dividend Payout
Ratio exc Special Dividend
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51.32%
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43.53%
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47.10%
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33.82%
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32.35%
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33.09%
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Dividend Payout
Ratio with Special Dividend
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-
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78.35%
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65.95%
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Net Interest
Margin
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4.64%
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4.78%
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4.73%
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4.51%
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4.42%
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4.46%
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Yield on Average
Earning Assets
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5.29%
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5.38%
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5.37%
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5.08%
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4.99%
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5.03%
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Yield on Average
Interest Bearing Liabilities
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0.94%
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0.87%
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0.91%
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0.78%
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0.80%
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0.78%
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Net Interest
Spread
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4.35%
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4.51%
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4.46%
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4.30%
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4.19%
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4.25%
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|
|
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Provision for Loan
Losses (000's)
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$1,350
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$680
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$2,030
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$-
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$-
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$-
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Net
Charge-offs
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$660
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$309
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$969
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$100
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$227
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$327
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Net Charge-offs as
a % of Loans
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0.42%
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0.20%
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0.31%
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0.07%
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0.15%
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0.09%
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Non-Performing
Loans (000's)
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$14,977
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$7,730
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$14,977
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$5,677
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$5,091
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$5,677
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Non-Performing
Loans to Total Assets
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1.94%
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1.06%
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1.94%
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0.76%
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0.71%
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0.76%
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Non-Performing
Assets (000's)
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$17,011
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$9,758
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$17,011
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$7,685
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$7,184
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$7,685
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Non-Performing
Assets to Assets
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2.21%
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1.34%
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2.21%
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1.03%
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1.00%
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1.03%
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|
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Efficiency
Ratio
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65.62%
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66.52%
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66.06%
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66.38%
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66.85%
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66.62%
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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 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.
F
& M Bank Corp.
Financial
Highlights
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For
Six Months
Ended
June 30,
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INCOME
STATEMENT
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Unaudited
2018
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Unaudited
2017
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Interest and
Dividend Income
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$17,704,577
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$16,265,977
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Interest
Expense
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2,093,930
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1,830,777
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Net
Interest Income
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15,610,647
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14,435,200
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Non-Interest
Income
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3,731,640
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3,927,500
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Provision for Loan
Losses
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2,030,000
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-
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Other Non-Interest
Expenses
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13,109,715
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11,971,269
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Income
Before Income Taxes
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4,202,572
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6,391,431
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Provision for
Income Taxes
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537,915
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1,686,480
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Less Minority
Interest (income)/loss
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(4,832)
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(31,786)
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Net
Income
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$3,659,825
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$4,673,165
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Dividend on
preferred stock
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206,646
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208,686
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Net Income
available to common shareholders
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$3,453,179
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$4,464,479
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Average Common
Shares Outstanding
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3,253,007
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3,271,318
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Net Income Per
Common Share
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1.06
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1.36
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Dividends
Declared
|
.70
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.45
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BALANCE
SHEET
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Unaudited
June
30, 2018
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Unaudited
June
30, 2017
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Cash and Due from
Banks
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$9,734,887
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$7,875,821
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Interest Bearing
Bank Deposits
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1,565,043
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614,644
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Federal Funds
Sold
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2,064,000
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3,174,000
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Loans Held for
Sale
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49,820,520
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51,766,953
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Loans Held for
Investment
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634,122,196
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603,434,882
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Less
Allowance for Loan Losses
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(7,105,287)
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(7,216,176)
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Net
Loans Held for Investment
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627,016,909
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596,218,706
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Securities
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23,156,192
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39,106,847
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Other
Assets
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57,310,216
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45,505,787
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Total
Assets
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$770,667,767
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$744,262,758
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Deposits
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$568,565,909
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$536,486,237
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Short Term
Debt
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46,000,000
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50,000,000
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Long Term
Debt
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47,434,221
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51,937,857
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Other
Liabilities
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16,903,229
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16,165,865
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Total
Liabilities
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678,903,359
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654,589,959
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Preferred
Stock
|
7,487,873
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7,588,873
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Common
Equity
|
84,276,535
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82,083,926
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Stockholders’
Equity
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91,764,408
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89,672,799
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Total
Liabilities and Stockholders’ Equity
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$770,667,767
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$744,262,758
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Book Value Per
Common Share
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$25.99
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$25.07
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Tangible Book Value
Per Common Share
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$26.15
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$24.95
|
SOURCE:
F
& M Bank Corp.
CONTACT:
Neil Hayslett, EVP/Chief Operating Officer
540-896-8941 or
NHayslett@FMBankVA.com