TIMBERVILLE, VA / ACCESSWIRE / May 2, 2018 / F & M Bank Corp. FMBM, the 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, the 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 exclude 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
|
%
|
||||||||||||||||||
|
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
|
0.87
|
%
|
0.87
|
%
|
0.85
|
%
|
0.78
|
%
|
0.77
|
%
|
||||||||||
|
Net Interest Spread
|
4.51
|
%
|
4.41
|
%
|
4.23
|
%
|
4.30
|
%
|
4.16
|
%
|
||||||||||
|
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 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 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, 2018
|
Unaudited
March 31, 2018
|
||||||
|
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
|
||||
CONTACT:
Neil Hayslett,
EVP/Chief Operating Officer
540-896-8941 or NHayslett@FMBankVA.com
SOURCE: F & M Bank Corp.
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