F&M Bank Corp Announces First Quarter 2022 Earnings

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F & M Bank Corp. News and Financials

TIMBERVILLE, VA—April 25, 2022—F & M Bank Corp. (OTCQX: FMBM), parent company (the Company) of Farmers & Merchants Bank today reported net income of $2.5 million for quarter ending March 31, 2022.

Mark Hanna, President, commented “First quarter of 2022 has been a strong quarter for F&M bank with net income of $2.5 million. Deposits grew this quarter another 2.96% and have been deployed into $3 million of net loan growth, excluding PPP and $58 million of new investments in bonds to capitalize on the rising rate environment.   We continue to focus strategically on improving our infrastructure and enhancing our digital experience as we expand our reach to organically acquire new banking relationships.  Our greater scale, coupled with improvements in asset quality, position F&M for continued success.”

Selected financial highlights include:

  • Net income of $2.5 million for the quarter ended March 31, 2022.
  • Total deposit increase of $32.0 million (2.96%) and $249.5 million (28.9%), respectively for the quarter and for the trailing twelve months.
  • Loans held for investment increase of $3.0 million (.46%) and $35.1 million (5.64%), respectively for the quarter and for the trailing twelve months (excluding PPP loans).
  • Nonperforming assets as a percent of total assets decreased to .39% from .45% at year end and .57% on March 31, 2021.
  • Past due loans still accruing decreased to 0.36% of loans held for investment (net of PPP) from 0.49% at year end and 0.52% on March 31, 2021.
  • Recovery of Provision for Loan Losses of $450,000 for the quarter.
  • Allowance for loan losses of 1.12% of loans held for investment, excluding PPP.

 

BALANCE SHEET

Loans

Loans held for investment; net of PPP have grown 5.64% since March 31, 2021.  The Agriculture, C&I, CRE and dealer portfolios have experienced growth throughout the quarter and year to date, while the Company has seen a reduction in consumer loans specifically in the 1-4 family residential loan area.

 

LOAN PORTFOLIO
(dollars in thousands) 3/31/2022 12/31/2021 Change 3/31/2021 Change
Commercial  $         290,452  $     286,500  $       3,952  $    267,792  $       22,660
Agriculture               82,460           81,879             581          70,556           11,904
Dealer             111,238         107,346           3,892          96,370           14,868
Consumer             169,617         173,556         (3,939)        183,046         (13,429)
Other                 3,733             5,205         (1,472)            4,608              (875)
Loans held for Investment, net of PPP  $         657,500  $     654,486  $       3,014  $    622,372  $       35,128

 

Investments

The Company has continued to leverage excess funds into the available for sale (AFS) investment portfolio in the first quarter of 2022 growing $57.9 million to $462 million.  The portfolio is a strong mix of U.S. Treasuries, Agencies, Mortgaged-backed securities, Municipals, and Corporate bonds.  The average tax equivalent yield on the portfolio is 1.54% which has equated to $1.5 million in income for the first quarter compared to $461 thousand in the same quarter last year.

 

AFS INVESTMENT PORTFOLIO
(dollars in thousands) 3/31/22 12/31/21 Change 3/31/21 Change
US Treasury  $        42,868  $        29,482  $       13,386  $        29,421  $        13,447
Agency          158,540          133,714  $       24,826            24,877  $       133,663
Mortgage-Backed Securities          197,594          183,647  $       13,947            85,406  $       112,188
Municipals            32,674            34,337  $        (1,663)            20,692  $        11,982
Corporates            30,146            22,702  $         7,444            11,307  $        18,839
Total Securities  $       461,822  $       403,882  $       57,940  $       171,703  $       290,119
 
Securities Quarterly Income  $             1,497  $             1,102  $               395  $                 461  $             1,036

 

Deposits

The Company’s deposit growth during the first quarter of 2022 has been in noninterest bearing accounts ($17.6 million) and money market accounts and savings accounts ($21.1 million) with a decline in NOW and other transactional accounts ($3.6 million) and time deposits ($3.2 million).  The Company continues to strategically focus on building primary banking relationships.

 

DEPOSIT PORFOLIO
(dollars in thousands) 3/31/22 12/31/21 CHANGE 3/31/21 CHANGE
Non Interest Bearing  $       298,676  $         280,993  $           17,683  $         252,265  $           46,411
NOW & Other Transactional           188,342             191,969               (3,627)             119,076               69,266
Money market and Savings           504,611             483,476               21,135             363,377             141,234
Certificates of deposit           120,666             123,857               (3,191)             128,034               (7,368)
Total Deposits  $    1,112,295  $      1,080,295  $           32,000  $         862,752  $         249,543

 

Asset Quality

Nonperforming loans as a percent of total assets (net of PPP) continue to decline from 0.57% on March 31, 2021 to 0.39% at March 31, 2022.  In addition, classified loans and past due loans declined from the previous twelve months from 9.69% to 6.17% and 0.52% to 0.36%, respectively (net of PPP).

 

(dollars in thousands) 3/31/2022 12/31/2021 3/31/2021
Non-performing Loans
Non-accrual loans  $           4,751  $               5,465  $             5,755
Over 90 & on Accrual                    48                       43                      28
Total Non-performing Loans  $           4,799  $               5,508  $             5,783
NPL As A % of Total Assets, net of PPP 0.39% 0.45% 0.57%
Watch Total  $         21,901  $             24,140  $           30,681
As A % Of Loans, net of PPP 3.31% 3.67% 4.88%
Substandard Total  $         18,969  $             19,713  $           30,179
As A % Of Loans, net of PPP 2.86% 2.99% 4.80%
Total Watch List  $         40,870  $             43,853  $           60,860
Total Classified As A % of Total Loans, net of PPP 6.17% 6.66% 9.69%
Past Due Loans
30-59 Days Past Due  $           2,093  $               2,751  $             2,730
60-89 Days Past Due                  273                      432                    495
90+ Days Past Due                    48                       43                      28
Total Past Due Loans  $           2,414  $               3,226  $             3,253
Deliquency %, net of PPP 0.36% 0.49% 0.52%

 

Allowance for Loan and Lease Losses

The allowance for loan losses as a percentage of loans held for investment, net of PPP has declined from 1.56% at March 31, 2021 to 1.12% at March 31, 2022.  This decline has been driven by improved asset quality in regard to non-performing, classified and past due loans.  Uncertainty in the economy related to the war in Ukraine, inflation and supply chain issues were factored into the allowance for loan losses this quarter as well as growth in the portfolio over the trailing twelve months.  The resulting reversal of provision was accretive to quarterly earnings by $450 thousand.

 

3/31/2022 12/31/2021 3/31/2021
(dollars in thousands)
Provision for Loan Losses  $     (450)  $      (590)  $     (725)
Allowance for Loan and Leases Losses  $     7,389  $      7,748  $     9,704
ALLL as a % of Loans Held for Investment, net of PPP 1.12% 1.18% 1.56%

 

INCOME STATEMENT

Net Interest Income

Net interest income reflects growth over the year ended 12/31/21 and quarter ended 3/31/21 of $177 thousand and $380 thousand, respectively.  As yields on earning assets continue to decline the Company has been able to support net interest income with savings in interest expense and growth in the investment portfolio while seeking opportunities to leverage the growth in liquidity into higher yielding assets.  During the quarter the Company was able to purchase bonds as the market yields climbed.  This should add to net interest income in future quarters.

 

Margin compression has reduced the net interest margin from 3.44% on March 31, 2021, to 2.82% on March 31, 2022.  To mitigate this compression, the Company has continued to invest excess funds into securities with better yields.  The Company has also slightly reduced cost of funds since March 31, 2021 to 34 basis points through maintaining deposit rates, debt reduction and growth in noninterest bearing deposits.

 

Noninterest Income

Noninterest income of $2.5 million for the quarter was slightly higher than year end 12/31/21 of $2.4 million but a decline from March 31, 2021, which was $3.4 million.   Mortgage originations have declined as rates have increased, as a result the Company is focused on expanding mortgage originators into our newer markets, continuing to utilize our title company and growing our wealth management division.

 

Noninterest expense

Focusing on infrastructure enhancements, digital processes and expanding into our newer markets has resulted in growth in noninterest expense of 11.25% in the trailing twelve months.  Some of the growth is attributed to the charitable donation of a property to the local community, disposing of non-income producing properties and eliminating outdated products.

 

Paycheck Protection Program

The Company processed 1,080 Paycheck Protection Program (“PPP”) & CARES Act loans during 2020 and 2021 totaling $87.1 million.  Fees associated with these loans are amortized over the life of the loan or recognized fully when repaid or forgiven.  The Company holds $2.1 million in PPP loans as of March 31, 2022 and recognized $169,000 in PPP fee income in the first quarter.

 

Dividends Declaration

            On April 21, 2022, our Board of Directors declared a fourth quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $30.00 per share this constitutes a 3.47% yield on an annualized basis. The dividend will be paid on May 30, 2022, to shareholders of record as of May 15, 2022.”

 

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, and Augusta Counties, Virginia and the city of Winchester, VA. The Bank also provides additional services through a loan production office located in Penn Laird, VA, a loan production office in Winchester, 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.

 

F & M Bank Corp.

Key Statistics

2022 2021
Q1 Q4 Q3 Q2 Q1
Net Income (000’s)  $      2,528  $           1,380  $            2,337  $            3,220  $           3,801
Net Income available to Common  $      2,528  $           1,379  $            2,272  $            3,154  $           3,736
Earnings per common share – basic  $        0.74  $             0.39  $              0.71  $              0.98  $             1.17
Earnings per common share – diluted  $        0.74  $             0.40  $              0.68  $              0.93  $             1.11
Return on Average Assets 0.89% 0.46% 0.81% 1.22% 1.56%
Return on Average Equity 10.51% 5.42% 9.18% 13.06% 15.96%
Dividend Payout Ratio excluding Special Dividend 35.14% 66.67% 36.62% 26.53% 22.22%
Net Interest Margin 2.82% 2.48% 2.95% 3.13% 3.44%
Yield on Average Earning Assets 3.17% 3.15% 3.35% 3.56% 3.92%
Yield on Average Interest Bearing Liabilities 0.49% 0.96% 0.57% 0.62% 0.70%
Net Interest Spread 2.68% 2.19% 2.78% 2.94% 3.22%
Provision for Loan Losses (000’s)  $       (450)  $            (590)  $            (235)  $         (1,250)  $            (725)
Net Charge-offs  $         (92)  $                72  $                 61  $            (272)  $                45
Net Charge-offs as a % of Loans -0.01% 0.04% 0.04% -0.16% 0.03%
Non-Performing Loans (000’s)  $      4,799  $           5,508  $            5,430  $            5,532  $           5,783
Non-Performing Loans to Total Assets 0.39% 0.45% 0.46% 0.50% 0.57%
Non-Performing Assets (000’s)  $      4,799  $           5,508  $            5,430  $            5,532  $           5,783
Non-Performing Assets to Assets 0.39% 0.45% 0.46% 0.50% 0.57%
Efficiency Ratio 78.68% 82.13% 75.99% 76.07% 68.00%

 

(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.

         

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.

 

 

SOURCE:         F & M Bank Corp.

CONTACT:        Carrie Comer EVP/Chief Financial Officer

540-896-1705 or ccomer@fmbankva.com

 

Building a Diverse Investment Portfolio: A Guide for New Investors in the Shenandoah Valley

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Looking for investment help in the Shenandoah Valley?  You’ve come to the right place. At F&M Financial Services, we know that investing can feel intimidating when you’re not familiar with the various investment options and terminology. In this article, we’ll cover the basics of building a diversified investment portfolio. From defining common terms to explaining different approaches to investing, you’ll have a better understanding of your investment portfolio. Of course, if you have specific questions or need advice about your portfolio, contact one of our Osaic Institutions Financial Advisors in Harrisonburg, Rockingham County, and Shenandoah County.

Where can I monitor stock values?

Local investors in the Shenandoah Valley can find a real-time market report and see our 14 most popular stocks on the Local Market Dashboard page. Looking for local investing help? Consider investing in local publicly-owned businesses with roots in the Shenandoah Valley. The dashboard provides a bird’s eye view of current share prices on the most popular local stocks, as well as important national indicators such as the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite.

How to diversify your investments

Generally, diversifying* your investment portfolio is a reasonable approach to realizing steady long-term growth of your finances. Understand your various investment options and how they could support your investment goals:

What is a stock?**

Individual stocks represent a share of ownership in a publicly-traded company. Investors can buy stocks ‘a la carte” in the hope that they will increase in value over time. For example, investors who purchased individual Apple stock in 1980 would have seen their bet pay off very well in the years since, if they held onto it.

However, not every bet pays off and it’s hard to know at the Initial Public Offering which companies will become wildly successful like Apple or Tesla, and which will flame out. That’s why many investors prefer to mitigate the risk of individual stock values by investing in index funds or ETFs.

For example, the Dow Jones is a stock market index tracking 30 of the largest blue-chip companies on the stock exchange. You could choose an ETF (Exchange-Traded Fund) that tracks the Dow Jones. ETFs provide broad market exposure to potentially give your portfolio more stability and less risk.

Similarly, the S&P 500 is a stock market index following 500 of the top publicly traded U.S. companies. You can invest in index funds and ETFs that track the S&P.

Lastly, the Nasdaq Composite Index features stocks that are exclusively listed on the Nasdaq stock exchange. It is more tech-heavy than the Dow or S&P and the total number of stocks in the Nasdaq can change often.

What is a bond?

A bond is a unit of corporate debt that can be traded as an asset. Bonds are considered less risky than stocks to invest in because bonds have a fixed interest rate. However, the trade-off for that stability is usually a lower rate of return. That’s why building a diversified portfolio means having both higher-risk/higher-rate-of-return assets like stocks as well as more reliable/lower-rate-of-return assets like bonds.

What is a Mutual Fund?***

Unlike index funds and ETFs, which are not actively managed and only follow stocks, a mutual fund is defined by the U.S. Securities and Exchange Commission as:

A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share represents an investor’s part ownership in the fund and the income it generates.

 

Because mutual funds already contain a diversified portfolio of stocks, bonds, and short-term debt, buying shares in a mutual fund can be an easy way to diversify your own portfolio.

When it comes to index funds and ETFs vs. mutual funds, one of the main differences is that the cost of management fees tends to be lower for ETFs on average when compared to Mutual Funds. Mutual funds are sold by prospectus only, which may be obtained from a financial professional and should be read carefully before investing. Investors should consider the risks, investment objectives, fees, expenses, and charges disclosed in the prospectus.

CDs, Savings Accounts, and Money Market Accounts

As you approach retirement age, you’ll want to keep a portion of your investment portfolio in a more liquid account where you can earn some interest while having access to the next year or two of cash for living expenses. F&M Bank offers Certificates of Deposit (CDs), Free and Premium Savings Accounts, and Money Market to meet your liquidity needs.       

Should I include Real Estate in My Investment Portfolio?

During your investment research, you may have heard of the 20% rule. If you are unfamiliar, the idea is that some investors find value in allocating at least 20% of your portfolio into investments that are outside of the stock market itself. It is popular for many investors to fill this 20% with real estate. This is not a hard and fast rule, however. Some investors may be more comfortable with a smaller or larger percentage of their funds being in real estate. Regardless, it can be a good idea to consider this as a piece of your overall investing strategy. Our financial advisors can help you understand what allocation would be the best fit for you. You also can learn more about F&M Bank’s mortgage lending options to get started with funding a real estate purchase.

Consider Your Risk Tolerance

We’ve covered the risk levels of various investment vehicles such as stocks, bonds, and mutual funds. But you also need to consider your personal tolerance for risk when deciding how much of your portfolio to allocate to different types of investments.

 

How much time do you have?

Generally, the younger you are the more aggressive you can afford to be with risk. A temporary setback can be overcome with time, while someone close to retirement will want to be more moderate or conservative. However, age isn’t the only factor to consider. Your comfort level with risk, long-term investment goals, and current income are also important.

 

As a general rule of thumb, a portfolio for each risk level would look like:

 

  • Aggressive: About 80% stocks and 20% bonds
  • Moderate: About 50% stocks and 50% bonds
  • Conservative: About 20% stocks and 80% bonds

 

Contact our financial advisors in the Shenandoah Valley to discuss your personal risk tolerance and how to diversify your portfolio accordingly.

Build your investment portfolio with a team you trust!

If you’re looking for Wealth Management services in Virginia, our financial planners guide you through your options for how to invest your money in VA to ensure you understand your investment portfolio and are comfortable with our strategy. Schedule an appointment with an Osaic Institutions Financial Advisor with F&M Financial Services at any of our locations today!

 

Meet your financial advisor in Edinburg & Broadway, VA!

Meet your financial advisor in Harrisonburg & Staunton, VA!

 

*Diversification is a method of helping to manage risk. It does not assure a profit or the avoidance of loss.

**Past performance is not a guarantee of future results.

*** Mutual funds are sold by prospectus only, which may be obtained from a financial professional and should be read carefully before investing. Investors should consider the risks, investment objectives, fees, expenses, and charges disclosed in the prospectus. Investment objectives, fees, expenses, and charges disclosed in the prospectus.

 

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

 

F & M Bank Corp. Announces Record Annual Earnings For 2021

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TIMBERVILLE, VA / ACCESSWIRE / January 26, 2022 / F & M Bank Corp. (OTCQX:FMBM), parent company (the Company) of Farmers & Merchants Bank today reported net income available to common shareholders of $10.5 million and diluted earnings per common share of $3.12 for the year ending December 31, 2021.

Mark Hanna, President, commented “We are pleased with December 31, 2021 year to date earnings of $10.5 million. These results represent the most profitable year in our 114-year history. Our deposit growth of 68.3% over the last two years is significantly higher than our peers and indicative of our ability to create organic growth. We continue to focus strategically on improving our infrastructure and enhancing our digital experience as we expand our reach to acquire new banking relationships. Our greater scale, coupled with improvements in asset quality, position F&M for continued success.”

Selected financial highlights include:

  • Net income of $1.3 million for the quarter ended December 31, 2021, and $10.5 million year to date.
  • Total deposit increase of $50.0 million (4.85%) and $261.7 million (31.97%), respectively for the quarter and for the year.
  • Total loan increase of $13.6 million (2.11%) and $31.9 (5.09%) million, respectively for the quarter and for the year (excluding PPP loans).
  • Nonperforming assets decreased to 0.45% of total assets at the end of the quarter from 0.68% at year end 2020.
  • Past due loans still accruing decreased to 0.48% of loans held for investment at the end of the quarter from 1.07% at year end 2020 (excluding PPP loans).
  • Recovery of Provision for Loan Losses of $590,000 for the quarter and $2,821,000 year to date.
  • Allowance for loan losses of 1.16% of loans held for investment (1.18% excluding PPP loans).

Balance Sheet

The Company has experienced significant deposit growth during the year. This growth enabled the Company to expand the investment portfolio as well as make strategic reductions in its long-term debt.

The Company’s deposit growth has continued to exceed peer performance going back to 2019. The growth has been in noninterest bearing accounts ($33.3 million), interest bearing demand ($71.6 million) and savings and money market accounts ($163 million) with a decline in time deposits ($6.2 million). The Company continues to strategically focus on building primary banking relationships.

The investment portfolio has expanded to a balance of $413.2 million at the quarter ended December 31, 2021, which reflects growth of $295.3 million since December 31, 2020. The portfolio is a strong mix of U.S. Treasuries, Agencies, Municipals, Corporate bonds and other investments. The Company recognized $525,000 in security losses in fourth quarter of 2021, as lower yielding securities were sold and replaced with higher yielding securities to position the Company for future success.

The Company prepaid several long term FHLB borrowings to leverage our liquidity and reduce our cost of funds in future periods. These borrowings were paid down $11.3 million year to date and have a remaining balance of $10 million.

Loans held for investment; net of PPP have grown 5.09% since December 31, 2020. The Agriculture, C&I, CRE and dealer portfolios have experienced growth throughout the quarter and year to date, while the Company has seen a reduction in loan balances on 1-4 family residential secured loans during this low-rate environment.

Improvements in nonperforming loans and past due loans, as well as economic stability and improved underwriting have allowed the Company to reduce the Allowance for Loan Losses from 1.64% on December 31, 2020, to 1.18% on December 31, 2021, excluding PPP loans.

These strategies have positioned F&M for future growth in our current footprint as we continue to evaluate opportunities for expansion.

Income Statement

The 2021 earnings are driven by growth in net interest income, strong non-interest income due to our subsidiary organizations, improved asset quality and fees earned under the Paycheck Protection Program.

Net interest income reflects year over year growth. As yields on earning assets continue to decline the Company has been able to support net interest income with savings in interest expense and growth in the investment portfolio while seeking opportunities to leverage the growth in liquidity into higher yielding assets.

Margin compression has reduced the net interest margin from 3.61% on December 31, 2020, to 3.00% on December 31, 2021. To mitigate this compression, the Company has decreased its cost of funds by 24 basis points through rate adjustments, debt reduction and growth in noninterest bearing deposits.

Noninterest income of $11.8 million for the year was primarily driven by mortgage originations, growth in our wealth management division, and title division. These entities have performed well and are preparing to expand into additional areas within our Company footprint in the near future.

As stated above, continued improvements in asset quality and economic conditions resulted in the ability to reduce the allowance for loan losses to 1.16% of loans held for investment (1.18% excluding PPP loans) which was accretive to income by $2.8 million year to date, and $590 thousand in the fourth quarter.

Fees recognized under the Paycheck Protection Program (see below) totaled $212,000 for the quarter and $2.10 million year to date.

This year the Company disposed of non-income producing properties creating a loss of $333,000 and renegotiated contracts with vendors resulting in one time increases in noninterest expense of $500,000 for 2021. These moves will better position the organization for the future.

Paycheck Protection Program

The Company processed 1,080 Paycheck Protection Program (“PPP”) & CARES Act loans during 2020 and 2021 totaling $87.1 million. Fees associated with these loans are amortized over the life of the loan or recognized fully when repaid or forgiven. The Company holds $7.9 million in PPP loans as of December 31, 2021 and expects to recognize approximately $225,000 in PPP fee income from these loans in 2022.

Preferred Stock Redemption

On September 1, 2021, the Company gave notice to preferred shareholders that it would redeem all Series A Preferred Stock on October 29, 2021. As a result of this announcement, 180,261 shares of the 205,327 shares of preferred stock converted to common shares and 25,066 shares were redeemed for cash.

Dividends Declaration

On January 21, 2022, our Board of Directors declared a fourth quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $31.38 per share this constitutes a 3.31% yield on an annualized basis. The dividend will be paid on March 1, 2022, to shareholders of record as of February 14, 2022.”

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, and Augusta Counties, Virginia and the city of Winchester, VA. The Bank also provides additional services through a loan production office located in Penn Laird, VA, a loan production office in Winchester, 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
Q4 Q3 Q2 Q1 YTD YTD
Net Income (000’s)
 $ 1,380 $ 2,337 $ 3,220 $ 3,801 $ 10,738 $ 8,788
Net Income available to Common
 $ 1,379 $ 2,272 $ 3,154 $ 3,736 $ 10,541 $ 8,525
Earnings per common share – basic
 $ 0.39 $ 0.71 $ 0.98 $ 1.17 $ 3.25 $ 2.66
Earnings per common share – diluted
 $ 0.40 $ 0.68 $ 0.93 $ 1.11 $ 3.12 $ 2.56
Return on Average Assets
 0.46 % 0.81 % 1.22 % 1.56 % 0.98 % 0.92 %
Return on Average Equity
 5.42 % 9.18 % 13.06 % 15.96 % 10.84 % 9.46 %
Dividend Payout Ratio excluding Special Dividend
 66.67 % 36.62 % 26.53 % 22.22 % 32.00 % 39.10 %
Net Interest Margin
 2.48 % 2.95 % 3.13 % 3.44 % 3.00 % 3.61 %
Yield on Average Earning Assets
 3.15 % 3.35 % 3.56 % 3.92 % 3.41 % 4.27 %
Yield on Average Interest Bearing Liabilities
 0.96 % 0.57 % 0.62 % 0.70 % 0.60 % 0.94 %
Net Interest Spread
 2.19 % 2.78 % 2.94 % 3.22 % 2.81 % 3.33 %
Provision for Loan Losses (000’s)
 $ (590 ) $ (235 ) $ (1,250 ) $ (725 ) $ (2,800 ) $ 3,300
Net Charge-offs/(recoveries)
 $ 72 $ 61 $ (272 ) $ 45 $ (94 ) $ 1,215
Net Charge-offs/(recoveries) as a % of Loans
 0.04 % 0.04 % -0.16 % 0.03 % -0.01 % 0.18 %
Non-Performing Loans (000’s)
 $ 5,508 $ 5,430 $ 5,532 $ 5,783 $ 5,508 $ 6,537
Non-Performing Loans to Total Assets
 0.45 % 0.46 % 0.50 % 0.57 % 0.45 % 0.68 %
Non-Performing Assets (000’s)
 $ 5,508 $ 5,430 $ 5,532 $ 5,783 $ 5,508 $ 6,537
Non-Performing Assets to Assets
 0.45 % 0.46 % 0.50 % 0.57 % 0.45 % 0.68 %
Efficiency Ratio
 82.13 % 75.99 % 76.07 % 68.00 % 75.44 % 67.51 %
  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 Twelve Months
Ended December 31,
Unaudited 2021 Audited 2020
INCOME STATEMENT
Interest and Dividend Income
 $ 35,576,485 $ 36,792,403
Interest Expense
 4,301,238 5,728,482
Net Interest Income
 31,275,247 31,063,921
Non-Interest Income
 11,828,813 12,190,916
Provision for Loan Losses
 (2,800,000 ) 3,300,000
Loss on sale of securities
 524,772 –
Impairment of long lived assets
 171,109 19,193
Other Non-Interest Expenses
 33,147,451 29,938,920
Income Before Income Taxes
 12,060,728 10,035,110
Provision for Income Taxes
 1,323,015 1,141,742
Less Minority Interest (Income)/Loss
 – (105,193 )
Net Income
 $ 10,737,713 $ 8,788,175
Dividend on preferred stock
 196,344 262,642
Net Income available to common shareholders
 $ 10,541,369 $ 8,525,533
Average Common Shares Outstanding
 3,414,306 3,199,883
Net Income Per Common Share
 3.09 2.66
Dividends Declared
 1.04 1.04
Unaudited
December 31, 2021
Audited
December 31, 2020
BALANCE SHEET
Cash and Due from Banks
 $ 8,579,007 $ 11,181,164
Interest Bearing Bank Deposits
 2,874,772 1,243,519
Federal Funds Sold
 76,667,000 65,983,000
Loans Held for Sale
 4,886,534 58,753,055
Loans Held for Investment
 662,421,694 661,328,888
Less Allowance for Loan Losses
 (7,747,792 ) (10,474,960 )
Net Loans Held for Investment
 654,673,903 650,853,928
Securities
 413,216,778 117,897,486
Other Assets
 58,443,571 61,018,331
Total Assets
 $ 1,219,341,565 $ 966,930,483
Deposits
 $ 1,080,294,540 $ 818,581,503
Long Term Debt
 21,772,052 33,201,631
Other Liabilities
 16,819,462 19,517,664
Total Liabilities
 1,118,886,054 871,300,798
Preferred Stock
 – 4,558,298
Common Equity
 100,455,511 91,071,387
Stockholders’ Equity
 100,455,511 95,629,685
Total Liabilities and Stockholders’ Equity
 $ 1,219,341,565 $ 966,930,483
Book Value Per Common Share
 $ 29.42 $ 28.43
Tangible Book Value Per Common Share
 $ 29.96 $ 28.42

CONTACT:
Carrie Comer EVP/Chief Financial Officer
540-896-1705 or ccomer@fmbankva.com

SOURCE: F & M Bank Corp.

View source version on accesswire.com:
https://www.accesswire.com/685279/F-M-Bank-Corp-Announces-Record-Annual-Earnings-For-2021

F&M Bank Welcomes Director of Digital Banking, Charles Driest, to its Growing Team

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F&M Bank’s leadership team welcomes Charles Driest as Senior Vice President & Director of Digital Banking. Mr. Driest joins F&M Bank most recently from Essex Bank and brings with him over 13 years of digital banking experience.

Mr. Driest commented, “I’m excited to contribute my experience and expertise to a talented banking team; we will deliver robust digital capabilities that provide our customers with a rich customer experience however they choose to engage with F&M Bank.”

In this role, Charles will support the company’s strategic growth initiatives, technology infrastructure, and digital banking services. F&M Bank’s President and CEO, Mark Hanna commented, “We are thrilled Charles has joined the F&M Bank family as we continue to grow and develop our digital banking offerings and technology infrastructures. He brings a wealth of experience to this position and will be integral to our growth moving forward.”
Charles earned a Master’s in Business Administration with a concentration in Finance from St. John’s University, Peter J Tobin College of Business. Charles is currently entering his final year of Virginia Bankers’ School of Bank Management held in Charlottesville, VA.

About F&M Bank

F&M Bank (FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and serves the Shenandoah Valley with 13 full-service branches and a wide variety of financial services including home loans through F&M Mortgage and real estate settlement services and title insurance through VSTitle. F&M Bank has grown to $1.2 billion in assets and employs over 200 employees across the organization. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

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How to Open a New Account Online

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ONLINE ACCOUNT OPENING 

Open a browser and navigate to https://www.fmbankva.com/

If you are an F&M Bank customer with an online banking user ID and password, enter that information at the top right to login.

If you need to enroll in online and mobile banking, choose Enroll in Online Banking directly beneath the login portal.

Step 1 to enroll in online banking from a computer

 

 

 

 

 

 

 

Enter your User ID and password to login to online banking and open your new account.

Setup Online Banking step 2

 

 

 

 

 

 

 

 

 

Please note, for security purpose, two-factor authentication is required. A temporary passcode by text message, phone call, or by Authy app if previously installed.

Setup Online Banking step 4

 

 

 

 

 

 

 

 

 

 

 

Click once on the three dotted button at top right (…)

Choose Add an account and on the next screen, click on Open an Account.

 

Step 4 to open a new account

 

 

 

 

 

 

 

 

 

 

If you do not have an F&M Bank account, choose New Account to get started.

If you are an F&M Bank customer, choose Existing Customer to get started.

Apply Today New Account Instructions

 

 

 

 

 

 

 

 

Please note: After 15 minutes of inactivity, the process will time out for your security.

 

On the next screen, click on Personal.

Type of Account_Personal option

 

 

 

 

 

 

 

Here, you will choose your preferred banking location along with the account you would like to open: Checking, Savings, Money Market or CD. You are only a few steps away from your new account!

Getting Started Open an Account step 1

 

 

 

 

 

 

 

 

 

 

 

Be sure to click the + sign to choose your debit card option.

 

Getting started open an account step 2

 

 

 

 

 

 

On the next screens you will enter your personal information, contact details, joint account, and beneficiary status, and upload a photo of your Driver’s License or State Issued Photo ID. If you are a current F&M Bank customer, some of the information will auto-fill for your convenience.

Getting Started Open an Account step 3

 

 

 

 

 

 

 

 

Once you complete the steps listed above, you will be prompted to review disclosures, and electronically sign to approve your new account.

Getting Started Open an Account step 4

 

 

 

 

 

 

 

Within two business days, you will receive a confirmation email from F&M Bank. If no action is taken, you will receive a reminder email after ten days.

Congratulations on your new F&M Bank account! We value your business!

 

 

How to Make a Loan Payment with Online and Mobile Banking

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Making your personal or auto loan payment is simple and easy with online and mobile banking from F&M Bank. If you have previously enrolled in online banking, please skip to Step 2. If you are not enrolled in online banking, please follow Step 1 to enroll.

STEP 1 – ON YOUR COMPUTER

Online Banking

Open a web browser and type accounts.fmbankva.com/enroll and enter your:

    • Social Security number
    • Account number
    • Email address
    • Phone number

STEP 1 – ON YOUR PHONE

Mobile Banking

    • Open the camera app on your phone;
    • Open your phone camera app and place over QR code below;
    • Open the link that appears on your screen;
    • Download the F&M Mobile Banking App and click “Enroll”

QR Code for quick access to enroll in F&M Bank's online banking

 

 

 

 

 

 

QR code not working for you? No problem! Simply open the App Store for iPhone or Google Play for Android and search for “F&M Mobile – VA” (image shown below) to enroll.

Image of F&M Bank logo

 

 

 

 

 

To make your loan payment, follow these simple steps!

STEP 2: Under “Select account type,” click on “Personal”

STEP 3: Enter your Loan Account Number

STEP 4: Enter your Social Security Number and Date of Birth

STEP 5: Click “Continue” and follow the simple instructions

Once you’ve enrolled, you’ll be able to schedule your payment by clicking on “Loan Information” and then selecting “Pay from another bank.”

Check out instructions for how to make your loan payment on the F&M Bank blog:
fmbankva.com/how-to-make-a-loan-payment-online

Set up payments within F&M Online and Mobile Banking.

If you are currently enrolled in F&M Online & Mobile Banking, you can pay your loan by clicking on “Loan” and select “Pay from Another Bank” to setup your external account.

 

Types of Account Ownership

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At F&M Bank, we seek to help you understand the different types of account ownership available to you. Ultimately, it is your sole responsibility to determine the full legal effect of maintaining the type of account ownership you choose. Please read below for the definitions of each account ownership option.

INDIVIDUAL ACCOUNT

An individual account is an account owned by only one person.  With the account owner dies, the ownership of the funds passes, subject to applicable law, to the account owner’s estate.  If the account, however, is designated as Payable on Death (POD), the funds will be distributed to the account’s beneficiaries.

JOINT ACCOUNTS

A joint account is owned by two or more individuals. The following applies to joint accounts:

  • RIGHTS OF SURVIVORSHIP: When one owner dies, all funds in the account will pass to the surviving owners. When there is only one surviving account owner, the account will be considered an individual account, with funds passing to the estate of the last deceased owner unless the account is designated as Payable on Death (POD).
  • ACCOUNT CONTROL: Any owner may transact business on the account without restriction by or notice to other owners. Any owner may withdraw or transfer funds, close the account, or request stop payments, for example.  F&M Bank is not required to notify any owner of another owner’s activity on the account, but all owners are entitled to information on that account activity.
  • ACCOUNT LIABILITY: If the account is overdrawn, garnished, or otherwise compromised, all owners,  regardless of who initiates or benefits from any transaction, are equally and legally responsible for account activity.
  • CHANGES IN OWNERSHIP: To keep a clear and succinct line of ownership, the removal of any living owner will require the joint account in question to be closed and reopened with a new account number under the new ownership designation.  In the event of an owner’s death, however, the surviving owner(s) may keep the same account; we recommend that they  amend the current account to remove the deceased owner’s name by providing a death certificate; the amended account contract will require the signatures of all surviving parties.

TRUST ACCOUNTS:   Trust accounts help direct and distribute your assets in the way you intend, and avoid probate upon your death.  We encourage customers to consult with their attorneys regarding the establishment and maintenance of a Trust if you feel this might be beneficial for you. Since a trust is recognized as a legal entity separate from the individual trustees, any instrument payable to the trust or to individuals designated as trustee or trust representative must be deposited into an account titled to the trust or else negotiated through special endorsement.

CUSTODIAL ACCOUNTS: Accounts held under the Uniform Transfers to Minors Act (UTMA) allow a custodian—usually a parent or legal guardian– to manage funds owned in the name and Tax Identification Number of the minor.  Although the funds belong to the minor, only the custodian has account authority until he/she opts to close the account and transfer the funds directly to the account owner. The Commonwealth of Virginia allows only two custodians per account.

REPRESENTATIVE PAYEE ACCOUNTS: A recipient of Social Security or SSI funds who is unable to handle his or her own finances may have a Representative Payee (Rep Payee) named for them by the Social Security Administration.  The recipient owns the funds but does not have transaction authority on the account; only the Rep Payee may transact business. The designated representative will be responsible for receiving and managing the funds, and is obligated to use those funds for the recipient’s care.  Only Social Security or SSI funds may be received into the account; no other funds may be comingled. Upon the death of a Rep Payee, a new Rep Payee must be designated to act on behalf of the beneficiary.  Upon death of the beneficiary the funds are payable to his or her estate, and the Rep Payee’s authority is no longer valid.  To open a Rep Payee account, we require a copy of the Social Security Administration’s letter and valid government issued ID for the Rep Payee.

ESTATE ACCOUNTS: To establish an estate account, we require the death certificate and court qualification papers naming the executor or administrator for the deceased.  The EIN for the estate can be obtained through the IRS at WWW.IRS.GOV .

ACCOUNT DESIGNATIONS

  • PAYABLE ON DEATH: Individual or joint account owners may designate beneficiaries for their accounts, with account funds Payable on Death (POD) of the last surviving owner. Any living beneficiary should prepare to provide valid government issued ID and an official copy of the owner’s death certificate.  Funds designated as POD are not included in the owner’s estate.
  • AUTHORIZED SIGNER: An Authorized Signer designated by individual or joint account owners may transact business on behalf of the owner(s) but does not own the account for his or her own personal benefit.  The account owner is ultimately responsible for the authorized signer’s account activity and may remove an authorized signer at the owner’s discretion.  The authorized signer, however, cannot affect any change in ownership of the account.  PLEASE NOTE that the authority granted by the owner(s) ceases with the death of the last owner; no transactions are authorized after the date of the owner’s death.
  • POWER OF ATTORNEY: F&M Bank recommends that anyone acting in the legal capacity of Power of Attorney (POA) or Agent-in-Fact (AIF) be represented as such in the Account Agreement. An agent or agents designated as POA by an individual or by joint account owners may transact business on behalf of the owner(s) but does not own the account for his or her own personal benefit. Any access to or control of the account will be determined by the POA document itself.  Again, the authority granted through the POA ceases with the death of the owner granting that power.

An authorized signer or POA must be identified by full regulatory compliance.

 

 

 

 

Protect Your Business from Check Fraud with Positive Pay from F&M Bank

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More and more people are falling victim to financial fraud and check fraud can affect your small business as well. While many business owners have simply stopped using checks, many of those same customers continue to use checks to pay their business expenses.

So how do you protect yourself and your business from fraudulent checks? If ceasing to use or accept checks in your business is not an option, there are other ways to prevent check fraud from impacting your business.

One way is to add Positive Pay to protect your commercial checking account.

→ Positive Pay matches the account number, check number, issue date, payee and dollar amount of each check presented for payment against a list of checks previously authorized and issued by your company.

→ Each time a check or series of checks are issued, a file of those checks containing the check number, issue date, payee and dollar amount is uploaded into online banking by your company. If a potential fraud occurs, you will receive an alert in online banking and be prompted to approve or reject the payment

→ Ways to reduce false positives and therefore work load of company employees:

  • Upload files of issued checks as they are dispersed. Any check not uploaded to the system presented for payment will reject;
  • Follow font best practices and guidelines (as shared by F&M Bank)

Interested in learning more? You have options!

→ Contact your local banker 

→ Reach out to us online

Use the Support feature when you are logged into online or mobile banking to start a conversation.

How to Protect Seniors Against Cybercrimes and Scams

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Many of the crimes that occur in real life happen on the internet too. Credit card fraud, identity theft, embezzlement, and more, all can be and are being done online. Seniors and the elderly are often targeted for these cybercrimes. They tend to be more trusting than younger people and usually have better credit, and more wealth. This makes them more attractive to scammers. Seniors are considered easy targets by criminals because they might not know how to report cybercrimes against them. In some cases, seniors can experience shame and guilt over the scam. They may also fear that their families will lose trust in their ability to continue to manage their own finances.
Cybercrimes Targeting Seniors
 Here are some common cyber scams used against senior citizens and how to avoid them:

Tech support scam: Criminals pose as technology support representatives and offer to fix non-existent computer issues. The scammers can gain remote access to victims’ devices and their stored sensitive information.

Government impersonation scam: Criminals pose as government employees and threaten to arrest or prosecute victims unless they agree to provide payments.

Financial scam: Criminals target potential victims using illegitimate credentials from legitimate services, such as reverse mortgages or credit repair.

Romance scam: Criminals pose as interested romantic partners on social media or dating websites, particularly targeting women and those who are recently widowed.

A new twist is to use the romance scam to recruit victims for other illegal activity. This could include using the victim’s bank account to launder illegally obtained money or apply for benefits in another person’s name. Institutions may become suspicious, especially if these transactions are out of character. They may close the victim’s account, or even refer the account for prosecution, putting the senior citizen at risk for legal action.
Tips to Protect Seniors Against Cybercrimes
 Here are some tips on how to protect yourself or someone you love from cybercrimes:

If you use social media, limit the amount of personal information you post and only add people that you know.

Resist the scammer’s urge for you to act quickly. Scammers are very skilled at manipulating emotions and will fabricate an emergency to persuade a victim to act without thinking.

Search for information about the proposed offer and any contact information given by the scammer. There are people and agencies online or in your community who can tell you if an individual or business is a scam. Never be afraid to ask other people for help.

Never send money or personally identifiable information to unverified people or businesses. Be suspicious about anyone who demands gift cards as payment.

Use reputable antivirus software and firewalls and make sure you regularly update them. If possible, configure your device to automatically download and install updates.

Disconnect from the internet and shut down your device if you see unusual pop-ups or get a locked screen. Pop-ups are often used by criminals to spread malicious software.

Be cautious what you download. Never open email attachments from someone you don’t know.
What to Do if You’re Targeted by a Scammer
 If you think you are being targeted by a scammer:

Never share financial account information, and do not allow anyone access to your accounts.

Monitor your accounts and credit for unusual activity, such as large sums of money that you did not deposit or loans that you did not apply for.

Contact your local law enforcement agency to file a report and notify your financial institutions.
Sources https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/
elder-fraudhttps://www.cisa.gov/publication/stopthinkconnect-older-american-resourceshttps://cybersecurityventures.com/3-cyber-fraud-tactics-targeting-seniors-and-why-theyre-so-effective/

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MDU3NmM3ZDUxMWViOGJiNzBiYjkwMmVlZDg0ZQ==

https://learn.cisecurity.org/ms-isac-subscription

F&M Financial Service Advisors Calan Jansen and Matt Robinson Earn Top 50 Ranking by Infinex Investments, Inc

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Press Release
For Immediate Release

June 22, 2021, Timberville, VA ‐‐ F&M Bank Corp. is pleased to announce that F&M Financial Services Advisors Calan Jansen and Matt Robinson have both been ranked among the Top 50 Infinex Financial Professionals, based on 2020 Gross Dealer Concession (GDC).

Calan Jansen, who provides investment services to clients in the Broadway and Edinburg offices of F&M Bank, ranked #14 of 50. Matt Robinson, who serves Harrisonburg and Rockingham County from his Cross Keys Road office, ranked at the #48 spot. The Top 50 producers were announced at a virtual ceremony held by Infinex Investments, Inc., in late May.

Photo of Calan Jansen

 

 

 

 

 

 

Securities offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Farmers & Merchants Financial Services, Inc. is a subsidiary of Farmers & Merchants Bank. Infinex is not affiliated with either entity.

Securities and Insurance Products:

Not Insured by FDIC or any Federal Government Agency May Lose Value Not a Deposit of or Guaranteed by the Bank or any Bank Affiliate

About Infinex Financial Group

In 2018, Infinex celebrated its 25th anniversary as an independent broker/dealer focused on serving the investment, insurance and wealth management needs of financial institutions.  Currently, Infinex supports over 230 community-based programs and more than 800 financial professionals.  The firm, headquartered in Meriden, Conn., with offices in Napa, Calif., and Midlothian, Va., has a unique history of being formed by financial institutions and owned by financial institutions. To learn more about Infinex Financial Group, visit www.infinexgroup.com.

About F&M Bank

F&M Bank (FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and since 1908, has served the Shenandoah Valley with full-service branches and a wide variety of financial services including home loans through F&M Mortgage and real estate settlement services and title insurance through VSTitle. Both individuals and businesses find the organization’s local decision-making, and up-to-date technology provide the kind of responsive, knowledgeable, and reliable service that only a progressive community bank can. F&M Bank has grown to $1 billion in assets with more than 175 full and part-time employees. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

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