/EINPresswire.com/ -- TIMBERVILLE, VA -- (Marketwired) -- 01/25/16 -- F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the full year and fourth quarter ended December 31, 2015, as well as its recently declared fourth quarter dividend. Selected highlights for the year include:

• Net income of $8.4 million
  
  
• Net interest margin of 4.39%
  
  
• Charge-offs decreased to $243 thousand, the lowest level since 2006
  
  
• Non-Performing Assets Ratio decreased to 1.30%, the lowest level since 2008
  
  
• Loan held for investment increased $25.9 million
  

Dean Withers, President and CEO, commented, "We are extremely pleased to announce record earnings for the second year in a row. Our fourth quarter earnings increased 37% to $2.181 million and full year earnings increased 45% to $8.417 million. The significant increase can be attributed to our very strong net interest margin, growth in earning assets and a reduction in the provision for loan losses." Withers stated, "Loan demand slowed compared to 2014, however full year growth in loans held for investment still totaled $25.9 million. Additional loan growth could have been achieved, however we were very disciplined in our approach and did not chase lower rate/longer term deals that were available in the market. We believe now that the Federal Reserve has begun to tighten monetary policy that our strategy will benefit our net interest margin well into the future."

Withers continued, "Non-performing loans continue to decrease, both nominally and as a percentage of loans held for investment. Due to this trend we significantly decreased our funding of the provision for loan losses to $300 thousand vs. $2.25 million in 2014. We have now completed three consecutive quarters without funding the provision, however, with the significant reduction in charge-offs still maintain a very healthy allowance for loan losses of 1.61% of loans held for investment." Withers concluded, "On January 21, 2016, our Board of Directors declared a fourth quarter dividend of $0.19 per share. Based on our most recent trade price of $22.50 per share, this dividend constitutes a 3.38% yield on an annualized basis. The dividend will be paid on February 18, 2015, to shareholders of record as of February 4, 2015." 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 nine 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

                                             2015              2014
                                      ----------------- -----------------
                                         Q4       YTD     Q4        YTD
                                      -------- -------- ------   --------
  Net Income (000's)                  $  2,181 $  8,417 $1,592   $  5,802
  Net Income available to Common      $  2,053 $  7,907 $1,464   $  5,674
  Earnings per common share           $   0.62 $   2.40 $ 0.44   $   1.82

  Return on Average Assets                1.33%    1.31%  1.06%      1.00%
  Return On Average Equity               10.59%   10.46%  8.86%      8.65%
  Dividend Payout Ratio                  30.65%   30.42% 38.64%     37.36%

  Net Interest Margin (1)                 4.39%    4.43%  4.29%      4.30%
  Yield on Average Earning Assets         4.88%    4.91%  4.91%      4.97%
  Yield on Average Interest Bearing
   Liabilities                            0.71%    0.68%  0.86%      0.91%
  Net Interest Spread                     4.17%    4.23%  4.05%      4.06%

  Provision for Loan Losses (000's)   $      - $    300 $    -   $  2,250
  Net Charge-offs (000's)             $     88 $    243 $ (124)  $  1,709
  Net Charge-offs as a % of Loans         0.02%    0.04% (0.02%)     0.33%
  Non-Performing Loans (000's)                 $  6,526          $  6,975
  Non-Performing Loans to Total Assets             0.98%             1.15%
  Non-Performing Assets (000's)                $  8,654          $ 10,482
  Non-Performing Assets to Assets                  1.30%             1.73%


  Efficiency Ratio                       58.93%   58.96% 60.62%     58.51%

(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 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 Twelve Months
                                                     Ended December 31
                                                  Unaudited     Unaudited
                INCOME STATEMENT                     2015          2014
Interest and Dividend Income                    $  29,352,677 $  26,772,057
Interest Expense                                    2,875,609     3,647,722
                                                ------------- -------------
  Net Interest Income                              26,477,068    23,124,335
Non-Interest Income                                 3,896,000     3,530,335

Provision for Loan Losses                             300,000     2,250,000
Other Non-Interest Expenses                        17,985,878    15,655,914
                                                 ------------  ------------
  Income Before Income Taxes                       12,087,190     8,748,756
  Provision For Income Taxes                        3,505,606     2,901,496

Less Minority Interest income                         164,575        45,653
                                                ------------- -------------
Net Income                                      $   8,417,009 $   5,801,607
                                                ------------- -------------
Dividend on preferred stock                           510,000       127,500
                                                ------------- -------------
Net Income available to common shareholders     $   7,907,009 $   5,674,107
                                                ============= =============
Average Common Shares Outstanding                   3,290,812     3,119,333
Net Income Per Common ShareDividends Declared            2.40          1.82
                                                          .73           .68



BALANCE SHEET                                      Unaudited     Unaudited
                                                 December 31,  December 31,
                                                     2015          2014
Cash and Due From Banks                         $   6,923,065 $   6,241,016
Interest Bearing Bank Deposits                      1,596,382       910,527
Federal Funds Sold                                               16,051,000
Loans Held for Sale                                57,805,529    13,381,941
Loans Held for Investment                         544,053,477   518,201,574
  Less Allowance for Loan Losses                   (8,781,453)   (8,724,731)
                                                ------------- -------------
  Net Loans Held for Investment                   535,272,024   509,476,843
Securities                                         25,329,103    22,304,902
Other Assets                                       38,223,537    36,941,873
                                                ------------- -------------
  Total Assets                                  $ 665,149,640 $ 605,308,102
                                                ============= =============

Deposits                                        $ 494,669,756 $ 491,504,536
Short Term Debt                                    24,954,051    14,358,492
Long Term Debt                                     48,160,714     9,875,000
Other Liabilities                                  14,414,707    11,771,671
                                                ------------- -------------
  Total Liabilities                               582,199,228   527,509,699
Stockholders' Equity                               82,950,412    77,798,403
                                                ------------- -------------
  Total Liabilities and Stockholders' Equity    $ 665,149,640 $ 605,308,102
                                                ============= =============
Book Value Per Common Share                     $       22.38 $       20.77
                                                ============= =============
Tangible Book Value Per Common Share            $       22.21 $       20.54
                                                ============= =============

CONTACT:
Neil Hayslett
EVP/Chief Administrative Officer
540-896-8941
NHayslett@FMBankVA.com

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