Attached files
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| 8-K - CURRENT REPORT - F&M BANK CORP | fmbm-20201231.htm |
Exhibit 99.1
F & M Bank Corp.---News and Financials
F & M BANK CORP. ANNOUNCES THIRD QUARTER EARNINGS AND
DIVIDEND
CONTACT:
Carrie Comer, EVP/Chief Financial
Officer
540-896-8941 or
ccomer@fmbankva.com
TIMBERVILLE,
VA—October 26, 2020—F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank, announces its
financial results for the third quarter ending September 30, 2020
and third quarter dividend to shareholders.
As
the global pandemic continues, the company continually assesses our
procedures to maintain the safety of our customers, employees and
community while serving their financial needs. Farmers &
Merchants Bank continues to operate our branches in a drive-thru
only capacity daily, with courier pick up and by appointment lobby
transactions.
As
of September 30, 2020, we had processed 717 Paycheck Protection
Program (PPP) loans for a balance of $62.6 million. These loans are
funded by participation in the Federal Reserve Paycheck Protection
Program Lending Facility. In addition, we have processed 922
individual loan deferrals. As of September 30, 2020, 99 loans
remain in deferral with a balance of $19.1 million which represents
3.1% of loans outstanding exclusive of PPP balances.
Selected
financial highlights for the quarter include:
●
Net
income of $2.21 million.
●
Net
interest margin of 3.60%.
●
Total
deposits increased $26.9 million and $175.1 million, respectively
for the quarter and for the trailing 12 months.
●
Nonperforming
loans decreased to 0.42% of total assets at the end of the quarter
from 0.45% on 6/30/20 and 0.98% on 9/30/2019.
●
Allowance
for loan losses totaled 1.57% of loans held for investment (1.72%
excluding PPP loans).
Mark Hanna, President, commented
“Our
second quarter earnings of $2.21 million is a slight improvement
over second quarter for core earnings ($2.06 million), second
quarter total earnings ($2.63 million) included recognition of
$567,000 for implementation of a mortgage rate lock derivative
associated with our mortgage company pipeline. Our net interest
margin of 3.60% shows a historical decline but remains strong
especially given the changes in our balance sheet. F&M’s
liquidity has increased significantly over the last four quarters
and we are implementing strategic solutions to leverage these
assets including deploying $102.7 million into the investment
portfolio since year end 2019. Despite the current low-rate
environment, these strategies should augment our net interest
margin in the future.”
Mr. Hanna continued, “Nonperforming loans
have improved dramatically over prior year, decreasing $3.7 million
since third quarter of 2019, and $1.5 million since year end 2019.
We feel these efforts put F&M in a strong position to manage
the current economic uncertainty while seeking opportunities for
continued growth in the communities we
serve.”
On
October 23, 2020 our Board of Directors declared a third quarter
dividend of $.26 per share to common shareholders. Based on our
most recent trade price of $19.21 per share this constitutes a
5.41% yield on an annualized basis. The dividend will be paid on
November 30, 2020, to shareholders of record as of November 14,
2020.”
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 eleven
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 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
|
|
2020
|
2019
|
||||||
|
|
Q3
|
Q2
|
Q1
|
YTD
|
Q3
|
Q2
|
Q1
|
YTD
|
|
Net
Income (000's)
|
$2,207
|
$2,626
|
$1,189
|
$6,022
|
$(186)
|
$1,634
|
$1,287
|
$2,735
|
|
Net
Income available to Common
|
$2,142
|
$2,560
|
$1,123
|
$5,825
|
$(265)
|
$1,556
|
$1,208
|
$2,499
|
|
Earnings
per common share - basic
|
$0.67
|
$0.80
|
$0.35
|
$1.82
|
$(0.08)
|
$0.48
|
$0.38
|
$0.78
|
|
Earnings
per common share - diluted
|
$0.65
|
$0.76
|
$0.35
|
$1.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on Average Assets
|
0.88%
|
1.17%
|
0.58%
|
0.81%
|
-0.09%
|
0.83%
|
0.67%
|
0.46%
|
|
Return
on Average Equity
|
9.44%
|
11.50%
|
5.23%
|
8.68%
|
-0.81%
|
7.12%
|
5.68%
|
4.00%
|
|
Dividend
Payout Ratio
|
38.81%
|
32.50%
|
74.29%
|
42.86%
|
-325.00%
|
52.08%
|
65.79%
|
97.44%
|
|
|
|
|
|
|
|
|
|
|
|
Net
Interest Margin
|
3.33%
|
3.55%
|
3.97%
|
3.60%
|
4.39%
|
4.47%
|
4.67%
|
4.52%
|
|
Yield
on Average Earning Assets
|
3.94%
|
4.20%
|
4.88%
|
4.31%
|
5.35%
|
5.42%
|
5.54%
|
5.46%
|
|
Yield
on Average Interest Bearing Liabilities
|
0.87%
|
0.92%
|
1.27%
|
1.00%
|
1.34%
|
1.33%
|
1.21%
|
1.29%
|
|
Net
Interest Spread
|
3.07%
|
3.28%
|
3.61%
|
3.31%
|
4.01%
|
4.09%
|
4.33%
|
4.17%
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses (000's)
|
$1,000
|
$800
|
$1,500
|
$3,300
|
$3,750
|
$1,600
|
$1,450
|
$6,800
|
|
Net
Charge-offs
|
$208
|
$203
|
$453
|
$864
|
$817
|
$483
|
$1,757
|
$3,057
|
|
Net
Charge-offs as a % of Loans
|
0.12%
|
0.12%
|
0.30%
|
0.17%
|
0.52%
|
0.30%
|
1.09%
|
0.65%
|
|
Non-Performing
Loans (000's)
|
$4,254
|
$4,465
|
$4,168
|
$4,254
|
$7,978
|
$11,688
|
$10,587
|
$7,978
|
|
Non-Performing
Loans to Total Assets
|
0.42%
|
0.45%
|
0.50%
|
0.42%
|
0.98%
|
1.45%
|
1.36%
|
0.98%
|
|
Non-Performing
Assets (000's)
|
$4,420
|
$5,625
|
$5,504
|
$4,420
|
$9,649
|
$13,657
|
$12,761
|
$9,649
|
|
Non-Performing
Assets to Assets
|
0.44%
|
0.57%
|
0.66%
|
0.44%
|
1.19%
|
1.69%
|
1.64%
|
1.19%
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
Ratio
|
65.35%
|
65.33%
|
70.51%
|
66.94%
|
67.63%
|
65.32%
|
67.15%
|
66.70%
|
(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 investments
portfolio and Other Real Estate Owned. 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
2020
|
Unaudited
2019
|
|
Interest and
Dividend Income
|
$27,280,319
|
$29,279,627
|
|
Interest
Expense
|
4,515,221
|
5,025,175
|
|
Non-Interest
Income
|
9,016,182
|
6,909,369
|
|
Provision for Loan
Losses
|
3,300,000
|
6,800,000
|
|
Impairment of long
lived assets
|
19,193
|
-
|
|
Net
Interest Income
|
22,765,098
|
24,254,452
|
|
Other Non-Interest
Expenses
|
21,788,981
|
21,597,748
|
|
Income
Before Income Taxes
|
6,673,106
|
2,766,076
|
|
Provision for
Income Taxes
|
545,418
|
(74,786)
|
|
Less Minority
Interest (income)/loss
|
(105,193)
|
(106,161)
|
|
Net
Income
|
$6,022,495
|
$2,734,661
|
|
Dividend on
preferred stock
|
197,194
|
235,966
|
|
Net Income
available to common shareholders
|
$5,825,301
|
$2,498,695
|
|
Average Common
Shares Outstanding
|
3,197,718
|
3,175,192
|
|
Net Income Per
Common Share
|
1.82
|
.78
|
|
Dividends
Declared
|
.78
|
.76
|
|
BALANCE
SHEET
|
Unaudited
September
30,
2020
|
Unaudited
September
30,
2019
|
|
Cash and Due from
Banks
|
$14,504,566
|
$14,324,290
|
|
Interest Bearing
Bank Deposits
|
1,237,866
|
1,599,711
|
|
Federal Funds
Sold
|
73,407,000
|
12,963,000
|
|
Loans Held for
Sale
|
88,038,925
|
80,862,723
|
|
Loans Held for
Investment
|
672,524,536
|
631,828,822
|
|
Less
Allowance for Loan Losses
|
(10,825,739)
|
(8,982,258)
|
|
Net
Loans Held for Investment
|
661,698,797
|
622,846,564
|
|
Securities
|
118,888,764
|
20,084,814
|
|
Other
Assets
|
57,647,889
|
60,556,108
|
|
Total
Assets
|
$1,015,423,807
|
$813,237,210
|
|
|
|
|
|
Deposits
|
$793,535,570
|
$618,434,553
|
|
Short Term
Debt
|
-
|
20,000,000
|
|
Long Term
Debt
|
106,510,013
|
64,308,789
|
|
Other
Liabilities
|
21,698,045
|
19,600,307
|
|
Total
Liabilities
|
921,743,628
|
722,343,649
|
|
Preferred
Stock
|
4,591,623
|
5,591,623
|
|
Common
Equity
|
89,088,556
|
85,301,938
|
|
Stockholders’
Equity
|
93,680,179
|
90,893,561
|
|
Total
Liabilities and Stockholders’ Equity
|
$1,015,423,807
|
$813,237,210
|
|
Book Value Per
Common Share
|
$27.85
|
$26.86
|
|
Tangible Book Value
Per Common Share
|
$27.84
|
$26.89
|
SOURCE:
F
& M Bank Corp.
CONTACT:
Carrie
Comer EVP/Chief Financial Officer
540-896-8941 or
ccomer@fmbankva.com