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 EARNINGS & DIVIDEND
CONTACT:
Neil Hayslett, EVP/Chief Operating
Officer
540-896-8941 or NHayslett@FMBankVA.com
TIMBERVILLE,
VA—January 31, 2019—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, 2018.
Selected
highlights for the quarter and year to date include:
●
Net
income of $2.9 million and $9.1 million, respectively;
●
Non-performing
assets dropped $4.65 million or 26.90% during the fourth
quarter;
●
Net
interest margin rose to 4.68%;
●
Loans
held for investment increased $21.8 million YTD;
●
Return
on Average Assets of 1.48% and 1.19%, respectively.
Mark Hanna, President, commented
“We
are pleased to announce fourth quarter and year to date earnings of
$2.9 million and $9.1 million, respectively. The fourth quarter
results represent a record for quarterly earnings which was driven
by an increasing net interest margin. Our margin increased due to
our asset sensitive balance sheet which resulted in a $2.6 million
increase in interest income and a $935 thousand increase in
interest expense. Loans held for investment increased $21.8 million
or 3.54% versus the prior year. Deposit growth also accelerated in
the second half of the year to $22.1 million or
3.89%.”
Hanna continued, “During the fourth
quarter we made significant progress in addressing our problem
assets. Previously we had announced that two large loans were
placed on non-accrual during the second quarter, resulting in our
significant allowance for loan loss funding in the first half of
the year. During the fourth quarter we were successful in
collecting on one of these loans and we recognized a partial
write-down on the other based on the appraised value and continued
payment delinquency. As a result of these and other collection
efforts our problem assets decreased from $17.3 million to $12.6
million.” Highlights of
our financial performance are included below.
Hanna stated, “On January 23rd
our Board of Directors declared a fourth quarter dividend of $.25
per share to common shareholders. Based on our most recent trade
price of $30.30 per share this constitutes a 3.30% yield on an
annualized basis. The dividend will be paid on February 15, 2019,
to shareholders of record as of February 1,
2019.”
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, LLC (DBA F&M
Mortgage) and VSTitle, LLC 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
|
|
2018
|
2017
|
||||
|
|
Q4
|
Q3
|
Q2
|
Q1
|
YTD
|
YTD
|
|
Net
Income (000's)
|
$2,910
|
$2,515
|
$1,687
|
$1,973
|
$9,085
|
$9,010
|
|
Net
Income available to Common
|
$2,807
|
$2,412
|
$1,583
|
$1,870
|
$8,672
|
$8,595
|
|
Earnings
per common share
|
$0.87
|
$0.75
|
$0.49
|
$0.57
|
$2.68
|
$2.63
|
|
|
|
|
|
|
|
|
|
Return
on Average Assets
|
1.48%
|
1.29%
|
0.91%
|
1.11%
|
1.19%
|
1.62%
|
|
Return
on Average Equity
|
12.51%
|
10.82%
|
7.38%
|
8.75%
|
9.89%
|
13.34%
|
|
Dividend
Payout Ratio exclude Special Dividend
|
28.83%
|
33.33%
|
51.37%
|
43.53%
|
37.34%
|
26.25%
|
|
Dividend
Payout Ratio with Special Dividend
|
|
|
|
78.35%
|
44.81%
|
|
|
|
|
|
|
|
|
|
|
Net
Interest Margin
|
4.68%
|
4.56%
|
4.64%
|
4.78%
|
4.65%
|
4.47%
|
|
Yield
on Average Earning Assets
|
5.50%
|
5.30%
|
5.29%
|
5.38%
|
5.35%
|
5.05%
|
|
Yield
on Average Interest Bearing Liabilities
|
1.14%
|
1.04%
|
0.94%
|
0.87%
|
1.00%
|
0.82%
|
|
Net
Interest Spread
|
4.36%
|
4.26%
|
4.35%
|
4.51%
|
4.35%
|
4.23%
|
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses (000's)
|
$450
|
$450
|
$1,350
|
$680
|
$2,930
|
$-
|
|
Net
Charge-offs
|
$2,483
|
$283
|
$660
|
$309
|
$3,735
|
$1,499
|
|
Net
Charge-offs as a % of Loans
|
1.55%
|
0.18%
|
0.42%
|
0.20%
|
0.58%
|
0.24%
|
|
Non-Performing
Loans (000's)
|
$10,205
|
$15,240
|
$14,977
|
$7,730
|
$10,205
|
$4,870
|
|
Non-Performing
Loans to Total Assets
|
1.31%
|
1.96%
|
1.94%
|
1.06%
|
1.31%
|
0.65%
|
|
Non-Performing
Assets (000's)
|
$12,648
|
$17,303
|
$17,011
|
$9,758
|
$12,648
|
$7,004
|
|
Non-Performing
Assets to Assets
|
1.62%
|
2.23%
|
2.21%
|
1.34%
|
1.62%
|
0.94%
|
|
|
|
|
|
|
|
|
|
Efficiency
Ratio
|
65.06%
|
66.71%
|
65.80%
|
66.52%
|
65.50%
|
63.01%
|
(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
F
& M Bank Corp.
Financial
Highlights
|
|
For Twelve
Months
Ended December
31,
|
|
|
INCOME
STATEMENT
|
Unaudited
2018
|
Audited
2017
|
|
Interest and
Dividend Income
|
$36,707,958
|
$34,095,349
|
|
Interest
Expense
|
4,832,063
|
3,896,889
|
|
Net Interest
Income
|
31,875,895
|
30,198,460
|
|
Gross Security
Gains (Losses)
|
-
|
(41,914)
|
|
Non-Interest
Income
|
8,003,003
|
7,934,620
|
|
Provision for Loan
Losses
|
2,930,000
|
-
|
|
Other Non-Interest
Expenses
|
26,743,762
|
24,719,017
|
|
Income Before
Income Taxes
|
10,205,136
|
13,372,149
|
|
Provision for
Income Taxes
|
1,110,169
|
4,330,404
|
|
Less Minority
Interest income
|
10,050
|
31,461
|
|
Net
Income
|
$9,084,917
|
$9,010,284
|
|
Dividend on
preferred stock
|
413,191
|
415,331
|
|
Net Income
available to common shareholders
|
$8,671,726
|
$8,594,953
|
|
Average Common
Shares Outstanding
|
3,238,177
|
3,269,713
|
|
Net Income Per
Common Share
|
2.68
|
2.63
|
|
Dividends
Declared
|
1.20
|
.94
|
|
BALANCE
SHEET
|
Unaudited
December
31,
2018
|
Audited
December
31,
2017
|
|
Cash and Due from
Banks
|
$9,521,741
|
$10,622,352
|
|
Interest Bearing
Bank Deposits
|
1,390,181
|
1,284,351
|
|
Federal Funds
Sold
|
-
|
-
|
|
Loans Held for
Sale
|
55,909,812
|
39,774,515
|
|
Loans Held for
Investment
|
638,798,885
|
616,974,067
|
|
Less
Allowance for Loan Losses
|
(5,239,699)
|
(6,044,365)
|
|
Net
Loans Held for Investment
|
633,559,186
|
610,929,702
|
|
Securities
|
21,843,918
|
41,242,965
|
|
Other
Assets
|
58,028,442
|
49,416,495
|
|
Total
Assets
|
$780,253,280
|
$753,270,380
|
|
|
|
|
|
Deposits
|
$591,325,319
|
$569,176,519
|
|
Short Term
Debt
|
40,116,000
|
25,296,000
|
|
Long Term
Debt
|
40,218,073
|
49,732,532
|
|
Other
Liabilities
|
16,682,537
|
17,790,459
|
|
Total
Liabilities
|
688,341,929
|
661,995,510
|
|
Stockholders’
Equity
|
91,911,351
|
91,274,870
|
|
Total
Liabilities and Stockholders’ Equity
|
$780,253,280
|
$753,270,380
|
|
Book Value Per
Common Share
|
$26.84
|
$25.73
|
|
Tangible Book Value
Per Common Share
|
$26.91
|
$25.64
|
SOURCE:
F
& M Bank Corp.
CONTACT:
Neil
Hayslett, EVP/Chief Operating Officer
540-896-8941 or
NHayslett@FMBankVA.com
3