F & M Bank Corp. Announces Earnings
/EINPresswire.com/ -- TIMBERVILLE, VA -- (Marketwired) -- 04/29/16 -- F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter ended March 31, 2016. Selected highlights for the year include:
- Net income of $2.1 million
- Net interest margin of 4.39%
- Net interest income increased $495 thousand
- Charge-offs of only $42 thousand
- Loan held for investment increased $12.8 million
Dean Withers, President and CEO, commented, "We are pleased to announce first quarter earnings of $2.1 million. This represents our best first quarter ever and is an 11.7% increase over the comparable quarter in 2015. Loan demand was strong across all lines of business and geographic markets with the growth in loans held for investment totaling $12.8 million."
Withers continued, "Non-performing loans were virtually unchanged from year end and are down marginally from the same period in 2015. A large portion of the non-performing loans are to a few borrowers in the construction and land development portfolios. With indications of a number of properties under contract and strong construction demand we expect these past dues to decline as we move into the spring and summer seasons. We have now completed four consecutive quarters without funding the provision for loan losses, yet due to nominal charge-offs our allowance for loan losses remains strong at 1.57% of loans held for investment." 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 eleven banking offices in Rockingham, Shenandoah and Page 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
2016 2015
-------- --------------------------------------
Q1 Q4 Q3 Q2 Q1
-------- -------- -------- -------- --------
Net Income (000's) $ 2,090 $ 2,181 $ 2,189 $ 2,176 $ 1,871
Net Income available to
Common $ 1,962 $ 2,053 $ 2,062 $ 2,049 $ 1,743
Earnings per common share $ 0.60 $ 0.62 $ 0.63 $ 0.62 $ 0.53
Return on Average Assets 1.27% 1.33% 1.39% 1.42% 1.25%
Return On Average Equity 10.07% 10.59% 11.28% 11.63% 10.38%
Dividend Payout Ratio 31.67% 30.65% 28.57% 29.03% 33.96%
Net Interest Margin 4.39% 4.39% 4.41% 4.46% 4.46%
Yield on Average Earning
Assets 4.91% 4.88% 4.88% 4.93% 4.94%
Yield on Average Interest
Bearing Liabilities 0.74% 0.71% 0.67% 0.66% 0.67%
Net Interest Spread 4.17% 4.17% 4.21% 4.27% 4.27%
Provision for Loan Losses
(000's) $ - $ - $ - $ - $ 300
Net Charge-offs $ 42 $ 88 $ 45 $ 24 $ 86
Net Charge-offs as a % of
Loans 0.01% 0.02% 0.01% 0.005% 0.02%
Non-Performing Loans
(000's) $ 6,709 $ 6,526 $ 6,386 $ 7,299 $ 7,174
Non-Performing Loans to
Total Assets 0.98% 0.98% 0.97% 1.13% 1.11%
Non-Performing Assets
(000's) $ 9,486 $ 8,918 $ 8,848 $ 9,744 $ 9,943
Non-Performing Assets to
Assets 1.38% 1.34% 1.35% 1.50% 1.54%
Efficiency Ratio 61.19% 58.93% 57.05% 59.65% 60.36%
(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.
F & M Bank Corp.
Financial Highlights
For Three Months
Ended March 31
INCOME STATEMENT Unaudited Unaudited
2016 2015
Interest and Dividend Income $ 7,634,436 $ 7,010,955
Interest Expense 813,556 685,108
------------ ------------
Net Interest Income 6,820,880 6,325,847
Non-Interest Income 699,354 744,817
Provision for Loan Losses - 300,000
Other Non-Interest Expenses 4,733,217 4,382,488
------------ ------------
Income Before Income Taxes 2,787,017 2,388,176
Provision For Income Taxes 693,703 491,956
Less Minority Interest income 3,763 25,669
------------ ------------
Net Income $ 2,089,551 $ 1,870,551
------------ ------------
Dividend on preferred stock 127,500 127,500
------------ ------------
Net Income available to common shareholders $ 1,962,051 $ 1,743,051
============ ============
Average Common Shares Outstanding 3,285,373 3,292,872
Net Income Per Common ShareDividends Declared .60 .53
.19 .18
BALANCE SHEET Unaudited Unaudited
March 31, March 31,
2016 2015
Cash and Due From Banks $ 7,001,425 $ 6,708,483
Interest Bearing Bank Deposits 1,300,614 816,070
Federal Funds Sold - -
Loans Held for Sale 66,468,292 59,225,763
Loans Held for Investment 556,893,697 526,649,487
Less Allowance for Loan Losses (8,739,809) (8,938,465)
------------ ------------
Net Loans Held for Investment 548,153,888 517,711,022
Securities 25,888,234 24,415,364
Other Assets 39,225,323 36,443,684
------------ ------------
Total Assets $688,037,776 $645,320,386
============ ============
Deposits $495,702,478 $483,426,995
Short Term Debt 46,624,663 45,763,311
Long Term Debt 47,178,571 24,750,000
Other Liabilities 14,298,539 12,237,956
------------ ------------
Total Liabilities 603,804,251 566,178,262
Preferred Stock 9,425,123 9,125,123
Common Equity 74,808,402 69,717,001
------------ ------------
Stockholders' Equity 84,233,525 79,142,124
------------ ------------
Total Liabilities and Stockholders' Equity $688,037,776 $645,320,386
============ ============
Book Value Per Common Share $ 22.77 $ 21.17
============ ============
Tangible Book Value Per Common Share $ 22.61 $ 20.92
============ ============
CONTACT:
Neil Hayslett
EVP/Chief Administrative Officer
540-896-8941
NHayslett@FMBankVA.com
