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 RECORD QUARTERLY AND YEAR TO DATE
EARNINGS AND DIVIDEND INCREASE
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CONTACT:
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Neil Hayslett, EVP/Chief Administrative
Officer
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540-896-8941or NHayslett@FMBankVA.com
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TIMBERVILLE,
VA—October 21, 2016—F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank, announces its
financial results for the third quarter and year to date ending
September 30, 2016.
Selected
highlights for the quarter and year to date include:
●
Net
income of $2.6 million and $7.0 million, respectively;
●
Net
income per common share increased 14.04% YTD;
●
Net
interest margin of 4.33%;
●
Net
interest income YTD increased $1.4 million;
●
Loans
held for investment increased $34.0 million YTD;
●
Return
on Average Assets of 1.43% for the third quarter;
Dean Withers, President and CEO, commented
“We
are pleased to announce record third quarter and year to date
earnings of $2.601 million and $7.049 million. These results
represent increases of 18.82% and 13.04% for the respective
periods. Loan demand continues to be strong with the growth in
loans held for investment totaling $34.0 million year to date.
Deposit growth has also accelerated in the last two quarters with
the year to date increase now totaling $33.2 million. Our net
interest margin at 4.33% has been stable over the last several
quarters and continues to drive our extraordinary
results.”
Withers continued, “During the third
quarter, we opened our twelfth branch in Grottoes, Virginia and
began construction on our thirteenth branch in Fishersville,
Virginia. These branches will supplement the two branches we opened
in 2015 in Staunton and Craigsville to further strengthen the
growth of our southern market.” Withers stated, “On
October 20, 2016 our Board of Directors declared a third quarter
dividend of $.22 per share to common shareholders. This is an
increase of $.02 (10%) over the prior quarter and $.03 (15.79%)
over the prior year. Based on our most recent trade price of $25.00
per share this constitutes a 3.52% yield on an annualized basis.
The dividend will be paid on November 17, 2016, to shareholders of
record as of November 3, 2016.” Highlights of our financial performance are
included below.
F
& M Bank Corp. is an independent, locally-owned, community bank
holding company, offering a full range of financial services,
through its subsidiary, Farmers & Merchants Bank’s twelve
banking offices in Rockingham, Shenandoah, Page and Augusta
Counties, Virginia. The Bank also provides additional services
through two loan production offices located in Penn Laird, VA and
Fishersville, VA and through its subsidiary, VBS Mortgage 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
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2016
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2015
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||||||
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Q3
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Q2
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Q1
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YTD
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Q3
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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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$2,601
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$2,358
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$2,090
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$7,049
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$2,189
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$2,176
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$1,871
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$6,236
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Net
Income available to Common
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$2,474
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$2,231
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$1,962
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$6,667
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$2,062
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$2,049
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$1,743
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$5,854
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Earnings
per common share
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$0.75
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$0.68
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$0.60
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$2.03
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$0.63
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$0.62
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$0.53
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$1.78
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Return
on Average Assets
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1.43%
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1.35%
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1.27%
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1.35%
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1.38%
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1.42%
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1.25%
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1.32%
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Return
on Average Equity
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11.99%
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11.08%
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10.07%
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11.03%
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10.97%
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11.63%
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10.38%
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10.50%
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Dividend
Payout Ratio
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29.22%
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29.46%
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31.81%
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30.07%
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30.16%
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29.03%
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33.96%
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30.34%
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Net
Interest Margin
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4.23%
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4.37%
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4.39%
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4.33%
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4.41%
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4.46%
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4.46%
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4.45%
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Yield
on Average Earning Assets
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4.80%
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4.90%
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4.91%
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4.87%
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4.88%
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4.93%
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4.94%
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4.92%
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Yield
on Average Interest Bearing Liabilities
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0.79%
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0.75%
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0.74%
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0.76%
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0.67%
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0.66%
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0.67%
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0.66%
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Net
Interest Spread
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4.01%
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4.15%
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4.17%
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4.11%
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4.21%
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4.27%
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4.27%
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4.26%
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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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$300
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$300
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Net
Charge-offs
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$497
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$671
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$42
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$1,210
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$45
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$24
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$86
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$155
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Net
Charge-offs as a % of Loans
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0.34%
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0.47%
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0.03%
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0.28%
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0.03%
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0.02%
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0.07%
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0.04%
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Non-Performing
Loans (000's)
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$6,196
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$5,545
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$6,709
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$6,196
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$6,386
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$7,299
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$7,174
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$6,386
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Non-Performing
Loans to Total Assets
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0.83%
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0.76%
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0.98%
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0.83%
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0.97%
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1.13%
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1.11%
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0.97%
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Non-Performing
Assets (000's)
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$8,370
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$8,331
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$9,486
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$8,370
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$9,081
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$9,744
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$9,943
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$9,081
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Non-Performing
Assets to Assets
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1.12%
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1.14%
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1.38%
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1.12%
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1.38%
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1.50%
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1.54%
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1.38%
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Efficiency
Ratio
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59.68%
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60.35%
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61.19%
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60.39%
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57.99%
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59.65%
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60.36%
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58.96%
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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 large percentage of its income to
expenses.
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For Nine
Months
Ended September
30
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INCOME
STATEMENT
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Unaudited
2016
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Unaudited
2015
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Interest and
Dividend Income
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$23,763,034
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$21,834,518
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Interest
Expense
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2,645,378
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2,105,120
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Net Interest
Income
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21,117,656
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19,729,398
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Non-Interest
Income
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2,738,999-
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2,880,037
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Provision for Loan
Losses
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-
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300,000
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Other Non-Interest
Expenses
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14,465,845
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13,371,621
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Income Before
Income Taxes
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9,390,810
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8,937,814
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Provision for
Income Taxes
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2,187,368
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2,586,293
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Less Minority
Interest income
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154,200
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115,397
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Net
Income
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$7,049,242
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$6,236,124
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Dividend on
preferred stock
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382,500
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382,500
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Net Income
available to common shareholders
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$6,666,742
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$5,853,624
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Average Common
Shares Outstanding
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3,286,165
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3,292,709
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Net Income Per
Common Share
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2.03
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1.78
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Dividends
Declared
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.61
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.54
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BALANCE
SHEET
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Unaudited
September 30,
2016
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Unaudited
September 30,
2015
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Cash and Due from
Banks
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$7,718,975
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$6,420,254
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Interest Bearing
Bank Deposits
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285,630
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489,849
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Federal Funds
Sold
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4,151,000
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-
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Loans Held for
Sale
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83,164,093
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55,481,773
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Loans Held for
Investment
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578,088,508
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540,414,615
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Less
Allowance for Loan Losses
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(7,570,826)
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(8,869,905)
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Net
Loans Held for Investment
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570,517,682
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531,544,710
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Securities
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38,641,591
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24,143,104
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Other
Assets
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40,813,107
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38,021,163
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Total
Assets
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$745,292,078
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$656,100,853
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Deposits
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$527,823,741
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$483,816,907
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Short Term
Debt
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51,228,742
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38,239,340
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Long Term
Debt
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65,089,286
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38,892,857
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Other
Liabilities
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13,624,827
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13,313,770
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Total
Liabilities
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657,766,596
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574,262,874
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Preferred
Stock
|
9,425,123
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9,425,123
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Common
Equity
|
78,100,359
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72,412,856
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Stockholders’
Equity
|
87,525,482
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81,837,979
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Total
Liabilities and Stockholders’ Equity
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$745,292,078
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$656,100,853
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Book Value Per
Common Share
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$23.56
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$21.72
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Tangible Book Value
Per Common Share
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$23.77
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$21.99
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SOURCE:
F & M Bank Corp.
CONTACT:
Neil Hayslett, EVP/Chief Administrative Officer
540-896-8941 or
NHayslett@FMBankVA.com