Exhibit 99.1
F & M Bank Corp.---News and Financials
F & M BANK CORP. ANNOUNCES RECORD EARNINGS AND DIVIDEND PAYMENT
CONTACT: Neil Hayslett, EVP/Chief Administrative Officer | 540-896-8941 or NHayslett@FMBankVA.com |
TIMBERVILLE, VA—January 25, 2016—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 | ||||||||
INCOME STATEMENT | Unaudited 2015 | Unaudited 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 Share | ||||||||
Dividends Declared | 2.40 .73 | 1.82 .68 |
BALANCE SHEET | Unaudited December 31, 2015 | Unaudited December 31, 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 |
OURCE: F & M Bank Corp.
CONTACT: Neil Hayslett, EVP/Chief Administrative Officer
540-896-8941 or NHayslett@FMBankVA.com