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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 FIRST QUARTER EARNINGS
CONTACT:
|
Neil
Hayslett, EVP/Chief Operating Officer
|
540-896-8941 or NHayslett@FMBankVA.com
|
TIMBERVILLE,
VA—May 2, 2018—F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank, announces its
financial results for the first quarter ending March 31,
2018.
Selected
highlights for the quarter include:
●
Net
income of $1.97 million;
●
Net
interest margin of 4.78%;
●
Net
interest income increased $638,000;
●
Return
on Average Assets of 1.11%;
●
Loans
held for investment increased $31.7 million, or 5.4%, compared to
one year ago;
●
Total
deposits increased $32.0 million, or 6.0%, compared to one year
ago.
Mark Hanna, President, commented
“We
are pleased to announce first quarter earnings of $1.97 million.
While this is a $372,000 decrease compared to the first quarter of
2017, our pre-tax core operating earnings increased $287,000 in
2018 to a total of $3.02 million versus $2.73 million in 2017. Core
operating earnings excludes the 2018 provision for loan losses and
$462,000 of non-recurring net gains in 2017. Loans and deposits
both increased approximately $32 million in the prior 12 months.
This growth continues to drive our net interest margin which rose
to 4.78% versus 4.68% and 4.39% when compared to the prior quarter
and the first quarter of 2017, respectively.” Mr. Hanna
continued, ‘Non-performing loans and assets have ticked
upward the last two quarters. As a result, we funded our allowance
for loan losses for the first time since the first quarter of 2015.
During the first quarter we charged $680,000 to the provision for
loan losses and had net charge-offs of $309,000. This resulted in
the allowance for loan loss balance increasing $371,000 as compared
to year end 2017.”
Mr. Hanna further stated, “We continue to be
busy with new and updated facilities. In February we completed the
relocation of our Timberville branch to a newly constructed office
at 165 New Market Road, Timberville. Going forward our office at
205 S. Main Street, Timberville will be used totally for
administration and operations function. We also purchased the
former SunTrust Bank building in Edinburg to relocate our Edinburg
branch from a leased facility. After quarter-end we completed the
purchase the former Carter Bank branch in Stuarts Draft. Once
renovated, Stuarts Draft will become our fourteenth branch, and
will further strengthen our growth in the Augusta 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, 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
|
2018
|
2017
|
|||
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Net
Income (000's)
|
$1,973
|
$1,787
|
$2,550
|
$2,328
|
$2,345
|
Net
Income available to Common
|
$1,870
|
$1,684
|
$2,447
|
$2,223
|
$2,241
|
Earnings
per common share
|
$0.57
|
$0.52
|
$0.75
|
$0.68
|
$0.68
|
|
|
|
|
|
|
Return
on Average Assets
|
1.11%
|
0.93%
|
1.34%
|
1.28%
|
1.29%
|
Return
on Average Equity
|
8.75%
|
7.84%
|
11.28%
|
10.48%
|
10.84%
|
Dividend
Payout Ratio exc. Special Dividend
|
43.53%
|
48.08%
|
32.00%
|
33.82%
|
32.12%
|
Dividend
Payout Ratio with Special Dividend
|
78.35%
|
|
|
|
|
|
|
|
|
|
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Net Interest Margin 1
|
4.78%
|
4.68%
|
4.48%
|
4.51%
|
4.39%
|
Yield
on Average Earning Assets
|
5.38%
|
5.28%
|
5.08%
|
5.08%
|
4.93%
|
Yield
on Average Interest Bearing Liabilities
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0.87%
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0.87%
|
0.85%
|
0.78%
|
0.77%
|
Net
Interest Spread
|
4.51%
|
4.41%
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4.23%
|
4.30%
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4.16%
|
|
|
|
|
|
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Provision
for Loan Losses (000's)
|
$680
|
$-
|
$-
|
$-
|
$-
|
Net
Charge-offs
|
$309
|
$898
|
$274
|
$100
|
$227
|
Net
Charge-offs as a % of Loans
|
0.20%
|
0.58%
|
0.18%
|
0.07%
|
0.15%
|
Non-Performing
Loans (000's)
|
$7,626
|
$7,102
|
$5,662
|
$5,677
|
$5,091
|
Non-Performing
Loans to Total Assets
|
1.05%
|
.94%
|
.74%
|
.76%
|
.71%
|
Non-Performing
Assets (000's)
|
$9,654
|
$9,086
|
$7,810
|
$7,685
|
$7,184
|
Non-Performing
Assets to Assets
|
1.32%
|
1.21%
|
1.02%
|
1.03%
|
1.00%
|
Efficiency
Ratio 2
|
66.53%
|
62.12%
|
62.12%
|
63.67%
|
63.27%
|
(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
|
For Three Months
Ended March 31,
|
|
INCOME
STATEMENT
|
Unaudited
2018
|
Unaudited
2017
|
Interest and
Dividend Income
|
$8,742,630
|
$8,004,769
|
Interest
Expense
|
979,295
|
879,100
|
Net
Interest Income
|
7,763,335
|
7,125,669
|
Non-Interest
Income
|
1,733,057
|
1,929,538
|
Provision for Loan
Losses
|
680,000
|
-
|
Other
Non-Interest Expenses
|
6,476,020
|
5,860,117
|
Income
Before Income Taxes
|
2,340,372
|
3,195,090
|
Provision for
Income Taxes
|
378,634
|
877,081
|
Less Minority
Interest (income)/loss
|
10,835
|
26,928
|
Net
Income
|
$1,972,573
|
$2,344,937
|
Dividend on
preferred stock
|
103,323
|
104,343
|
Net Income
available to common shareholders
|
$1,869,250
|
$2,240,594
|
Average Common
Shares Outstanding
|
3,255,291
|
3,271,272
|
Net Income Per
Common Share
|
.57
|
.68
|
Dividends
Declared
|
.45
|
.22
|
BALANCE
SHEET
|
Unaudited
March 31, 2017
|
Unaudited
March 31, 2017
|
Cash and Due from
Banks
|
$8,481,487
|
$8,003,170
|
Interest Bearing
Bank Deposits
|
886,054
|
1,090,496
|
Federal Funds
Sold
|
|
3,019,000
|
Loans
Held for Sale
|
33,231,067
|
37,698,696
|
Loans Held for
Investment
|
622,721,611
|
591,005,528
|
Less
Allowance for Loan Losses
|
(6,415,485)
|
(7,316,628)
|
Net
Loans Held for Investment
|
616,306,126
|
583,688,900
|
Securities
|
20,039,046
|
37,952,434
|
Other
Assets
|
50,043,918
|
43,432,983
|
Total
Assets
|
$728,987,698
|
$714,885,679
|
|
|
|
Deposits
|
$568,599,936
|
$536,560,173
|
Short Term
Debt
|
3,640,000
|
20,000,000
|
Long Term
Debt
|
48,542,305
|
53,045,000
|
Other
Liabilities
|
16,544,403
|
17,190,649
|
Total
Liabilities
|
637,326,644
|
626,795,822
|
Preferred
Stock
|
7,528,873
|
7,608,873
|
Common
Equity
|
84,132,181
|
80,480,984
|
Stockholders’
Equity
|
91,661,054
|
88,089,857
|
Total
Liabilities and Stockholders’ Equity
|
$728,987,698
|
$714,885,679
|
Book Value Per
Common Share
|
$25.84
|
$24.59
|
Tangible Book Value
Per Common Share
|
$25.99
|
$24.49
|
SOURCE:
F
& M Bank Corp.
CONTACT:
Neil
Hayslett, EVP/Chief Operating Officer
540-896-8941 or
NHayslett@FMBankVA.com