Attached files
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| 8-K - PRIMARY DOCUMENT - F&M BANK CORP | fmbm-20211231.htm |
Exhibit 99.1
F & M Bank Corp.---News and Financials
F & M BANK CORP. ANNOUNCES RECORD QUARTERLY EARNINGS AND
REACHES $1 BILLION IN ASSETS IN FIRST QUARTER
2021
CONTACT:
Carrie Comer, EVP/Chief Financial
Officer
540-896-1705 or
ccomer@fmbankva.com
TIMBERVILLE,
VA—April 26, 2021—F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank today reported net
income available to common shareholders of $3.8 million and diluted
earnings per common share of $1.11 for the first quarter ending
March 31, 2021.
Record Quarterly Earnings
The
bank is reporting record quarterly earnings in the first quarter of
2021 of $3.8 million while continuing to position the company for
success over the long term. F&M Bank continues to strengthen
its solid financial position with historic levels of liquidity and
historically strong capital base as we grew to over $1 Billion in
Assets.
“With continued strong asset quality metrics
and improved optimism for economic recovery due to COVID-19
vaccines and government stimulus, we believe that credit losses
will not be as high as initially anticipated and that loan growth
will continue to improve. Coupled with the significant growth in
our client base over the past year, we remain optimistic that
F&M Bank is well positioned to deliver profitable growth and
continue to build long term value for our
shareholders,” said Mark Hanna, president and chief
executive officer.
Non-Interest Income
Noninterest
income increased to $3.4 million for the quarter ended March 31,
2021 from $3.2 million in the prior quarter and $2.4 million in the
quarter ended March 31, 2020. Growth is primarily driven by
continued high volumes of mortgage originations, growth in our
wealth management division, and title division. Volumes in these
areas more than offset the decreases in deposit service
charges.
Paycheck Protection Program (“PPP”) & CARES
Act
During 2021, the
Company processed 280 Paycheck Protection Program (PPP) loans that
totaled $20.2 million; PPP loans processed during 2020 and 2021 YTD
totaled 997 loans for $83.4 million. In addition to an
insignificant amount of PPP loan payoffs, the Company has processed
a total of $46.4 million of forgiveness on 560 loans program to
date resulting in a remaining balance of PPP loans of $37.0
million. The Company is continuing to accept PPP applications, and
processing applications for forgiveness.
In
addition, we have granted 35 individual loan deferrals in 2021, for
a total of 1,266 deferrals since COVID began. As of March 31, 2021,
52 loans remain in deferral with a balance of $11.8 million or 1.7%
of total loans.
The
bank is set to open a new branch in the Waynesboro market on April
26, 2021. This will expand our presence in Augusta County to serve
the community’s financial needs with our full suite of branch
services. Branch lobbies at all our locations were reopened to the
public on April 12, 2021. We will continue to assess our procedures
to maintain the safety of our customers, employees, and community
as we move forward.
Selected financial highlights for the quarter include:
●
Quarterly
net income of $3.8 million
●
Net
interest margin of 3.44%.
●
Total
deposits increased $44.2 million and $183.4 million, respectively
for the quarter and for the trailing 12 months as the bank
continues to grow our composition of DDA accounts and decrease
balances of Time Deposits.
●
Total
loans increased $12.8 million for the trailing 12 months (excluding
PPP loans).
●
Nonperforming
assets decreased to 0.57% of total assets at the end of the quarter
from 0.68% on 12/31/20 and .66% on 3/31/20.
●
Negative
Provision for Loan Losses of $725,000
●
Allowance
for loan losses totaled 1.46% of loans held for investment (1.54%
excluding PPP loans).
Mark Hanna, President, commented
“We
are pleased with first quarter earnings of $3.8 million. Our
mortgage and title companies, continue to see volumes in excess of
expectations which drives noninterest income growth. Our net
interest margin of 3.44% shows a historical decline but remains
strong especially given the changes in our balance sheet and the
current rate environment. Net interest income reflected a 4%
increase over March 31, 2020. F&M’s liquidity has
increased significantly over the last four quarters and we are
implementing strategic solutions to leverage these assets including
deploying $64.2 million into the investment portfolio since year
end 2020. Despite the current low-rate environment, these
strategies should augment our net interest margin in the
future.”
Mr. Hanna stated, “Nonperforming assets
have continued to improve, decreasing $754 thousand since year end
2020. We feel these efforts put F&M in a strong position to
leverage a more optimistic economic forecast while seeking
opportunities for continued growth in the communities we
serve.”
On
April 21, 2021 our Board of Directors declared a first quarter
dividend of $.26 per share to common shareholders. Based on our
most recent trade price of $28.19 per share this constitutes a
3.69% yield on an annualized basis. The dividend will be paid on
May 31, 2021, to shareholders of record as of May 15,
2021.”
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) 896-1705.
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
|
|
2021
|
2020
|
|||
|
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Net
Income (000's)
|
$3,801
|
$2,766
|
$2,207
|
$2,626
|
$1,189
|
|
Net
Income available to Common
|
$3,736
|
$2,700
|
$2,142
|
$2,560
|
$1,123
|
|
Earnings
per common share - basic
|
$1.17
|
$0.84
|
$0.67
|
$0.80
|
$0.35
|
|
Earnings
per common share - diluted
|
|
|
|
|
|
|
Return
on Average Assets
|
1.56%
|
1.12%
|
0.88%
|
1.17%
|
0.58%
|
|
Return
on Average Equity
|
15.96%
|
11.75%
|
9.44%
|
11.50%
|
5.23%
|
|
Dividend
Payout Ratio excluding Special Dividend
|
22.22%
|
30.95%
|
38.81%
|
32.50%
|
74.29%
|
|
|
|
|
|
|
|
|
Net
Interest Margin
|
3.44%
|
3.81%
|
3.60%
|
3.75%
|
3.97%
|
|
Yield
on Average Earning Assets
|
3.92%
|
4.77%
|
4.31%
|
4.52%
|
4.88%
|
|
Yield
on Average Interest Bearing Liabilities
|
0.70%
|
1.33%
|
0.99%
|
1.09%
|
1.27%
|
|
Net
Interest Spread
|
3.22%
|
3.44%
|
3.32%
|
3.43%
|
3.61%
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses (000's)
|
$(725)
|
$-
|
$1,000
|
$800
|
$1,500
|
|
Net
Charge-offs
|
$45
|
$351
|
$208
|
$203
|
$453
|
|
Net
Charge-offs as a % of Loans
|
0.03%
|
0.21%
|
0.12%
|
0.12%
|
0.30%
|
|
Non-Performing
Loans (000's)
|
$5,783
|
$6,537
|
$4,254
|
$4,465
|
$4,168
|
|
Non-Performing
Loans to Total Assets
|
0.57%
|
0.68%
|
0.42%
|
0.45%
|
0.50%
|
|
Non-Performing
Assets (000's)
|
$5,783
|
$6,537
|
$4,420
|
$5,625
|
$5,504
|
|
Non-Performing
Assets to Assets
|
0.57%
|
0.68%
|
0.44%
|
0.57%
|
0.66%
|
|
|
|
|
|
|
|
|
Efficiency
Ratio
|
68.00%
|
69.10%
|
65.35%
|
65.33%
|
70.51%
|
(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 Three
Months
Ended March
31,
|
|
|
INCOME
STATEMENT
|
Unaudited
2021
|
Audited
2020
|
|
Interest and
Dividend Income
|
$8,746,348
|
$9,110,585
|
|
Interest
Expense
|
1,068,509
|
1,706,084
|
|
Net
Interest Income
|
7,677,839
|
7,404,501
|
|
Non-Interest
Income
|
3,355,044
|
2,428,518
|
|
Provision for Loan
Losses
|
(725,000)
|
1,500,000
|
|
Other Non-Interest
Expenses
|
7,685,337
|
7,119,604
|
|
Income
Before Income Taxes
|
4,072,546
|
1,213,415
|
|
Provision for
Income Taxes
|
271,294
|
(38,371)
|
|
Less Minority
Interest (income)/loss
|
-
|
(62,429)
|
|
Net
Income
|
$3,801,252
|
$1,189,357
|
|
Dividend on
preferred stock
|
65.448
|
65,873
|
|
Net Income
available to common shareholders
|
$3.735.804
|
$1,123,494
|
|
Average Common
Shares Outstanding
|
3,205,074
|
3,204,084
|
|
Net Income Per
Common Shar
|
1.17
|
.35
|
|
Dividends
Declared
|
.26
|
.26
|
|
BALANCE
SHEET
|
Unaudited
December
31,
2021
|
Audited
March
31,
2020
|
|
Cash and Due from
Banks
|
$12,088,442
|
$8,528,494
|
|
Interest Bearing
Bank Deposits
|
1,541,581
|
1,645,590
|
|
Federal Funds
Sold
|
90,099,000
|
78,944,000
|
|
Loans Held for
Sale
|
15,922,810
|
60,765,429
|
|
Loans Held for
Investment
|
659,373,490
|
609,585,135
|
|
Less
Allowance for Loan Losses
|
(9,704,286)
|
(9,437,359)
|
|
Net
Loans Held for Investment
|
649,669,204
|
600,147,776
|
|
Securities
|
182,091,328
|
19,838,180
|
|
Other
Assets
|
58,817,489
|
57,597,524
|
|
Total
Assets
|
$1,010,229,854
|
$828,466,993
|
|
|
|
|
|
Deposits
|
$862,751,952
|
$679,310,203
|
|
Long Term
Debt
|
32,158,578
|
42,089,286
|
|
Other
Liabilities
|
17,791,953
|
15,633,317
|
|
Total
Liabilities
|
912,702,483
|
737,032,806
|
|
Preferred
Stock
|
4,558,298
|
4,591,623
|
|
Common
Equity
|
92,969,073
|
86,842,564
|
|
Stockholders’
Equity
|
97,527,371
|
91,434,187
|
|
Total
Liabilities and Stockholders’ Equity
|
$1,010,229,854
|
$828,466,993
|
|
Book Value Per
Common Share
|
$28.99
|
$27.20
|
|
Tangible Book Value
Per Common Share
|
$29.33
|
$26.05
|
|
|
|
|
SOURCE:
F & M Bank Corp.
CONTACT:
Carrie Comer EVP/Chief Financial Officer
540-896-1705 or
ccomer@fmbankva.com