TIMBERVILLE, VA / ACCESSWIRE / July 27, 2021 / F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank today reported net income available to common shareholders of $3.2 million and diluted earnings per common share of $0.93 for the quarter ending June 30, 2021.
These earnings are driven by growth in net interest income despite margin compression, growth in non-interest income due to our subsidiary organizations and improved asset quality and economic conditions.
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.
Noninterest income remained strong in the second quarter at $6.4 million year to date this reflects an increase over June 30, 2020 which totaled $5.7million in the heart of the mortgage refinance boom. Growth is primarily driven by continued high volumes of mortgage originations, growth in our wealth management division, and title division.
Continued improvements in asset quality and economic conditions resulted in the ability to reduce the allowance for loan losses to 1.31% of loans held for investment (1.35% excluding PPP loans) which was accretive to income $1.975 million year to date or $1.250 million in the 2 nd quarter.
Paycheck Protection Program (“PPP”) & CARES Act
During 2021, the Company processed 363 Paycheck Protection Program (PPP) loans that totaled $23.8 million; PPP loans processed during 2020 and 2021 YTD totaled 1,080 loans for $87.1 million. In addition to an insignificant amount of PPP loan payoffs, the Company has processed a total of $64.4 million of forgiveness on 809 loans program to date resulting in a remaining balance of PPP loans of $22.7 million. As of June 30, 2021, one loan remains in a COVID related loan payment deferral status.
Selected financial highlights include:
- Net income of $3.2 million for the quarter ended June 30, 2021 and $7.02 million year to date.
- Net interest margin of 3.27%.
- Total deposits increased $92.6 million and $188.7 million, respectively for the quarter and for the trailing 12 months as the bank continues to grow our composition of DDA accounts and decrease balances of Time Deposits.
- Total loans increased $16.0 million and $36.7 million, respectively for the quarter and for the trailing 12 months (excluding PPP loans).
- Nonperforming assets decreased to 0.50% of total assets at the end of the quarter from 0.68% on 12/31/20 and 0.57% on 6/30/20.
- Negative Provision for Loan Losses of $1,250,000 for the quarter ended June 30, 2021, and $1,975,000 year to date.
- Allowance for loan losses totaled 1.31% of loans held for investment (1.35% excluding PPP loans).
Mark Hanna, President, commented “ We are pleased with June 30, 2021 year to date earnings of $7.02 million. Our mortgage, title, and wealth management divisions continue to drive strong noninterest income. Loans continue to grow at a modest pace driven by Agriculture, C&I, CRE, and Dealer through a generally tepid lending environment. Our net interest margin of 3.27% reflects a historical decline but remains strong especially given the changes in our balance sheet and the current rate environment. F&M continues to gain relationships in our legacy and new markets adding to an already highly liquid balance sheet as the bank implements strategic solutions to leverage these assets.”
On July 23, 2021, our Board of Directors declared a second quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $29.00 per share this constitutes a 3.59% yield on an annualized basis. The dividend will be paid on August 30, 2021, to shareholders of record as of August 14, 2021.”
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 twelve banking offices in Rockingham, Shenandoah, and Augusta Counties, Virginia. 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 |
|
|
|
|
|
|
|
Q2 |
|
|
|
Q1 |
|
|
YTD |
|
|
|
Q2 |
|
|
|
Q1 |
|
|
YTD |
|
|
Net Income (000’s)
|
|
$ |
3,220 |
|
|
$ |
3,801 |
|
|
$ |
7,021 |
|
|
$ |
2,626 |
|
|
$ |
1,189 |
|
|
$ |
3,815 |
|
|
Net Income available to Common
|
|
$ |
3,154 |
|
|
$ |
3,736 |
|
|
$ |
6,890 |
|
|
$ |
2,560 |
|
|
$ |
1,123 |
|
|
$ |
3,683 |
|
|
Earnings per common share – basic
|
|
$ |
0.98 |
|
|
$ |
1.17 |
|
|
$ |
2.15 |
|
|
$ |
0.80 |
|
|
$ |
0.35 |
|
|
$ |
1.15 |
|
|
Earnings per common share – diluted
|
|
$ |
0.93 |
|
|
$ |
1.11 |
|
|
$ |
2.04 |
|
|
$ |
0.76 |
|
|
$ |
0.35 |
|
|
$ |
1.11 |
|
|
Return on Average Assets
|
|
|
1.22 |
% |
|
|
1.56 |
% |
|
|
1.39 |
% |
|
|
1.17 |
% |
|
|
0.58 |
% |
|
|
1.70 |
% |
|
Return on Average Equity
|
|
|
13.06 |
% |
|
|
15.96 |
% |
|
|
14.78 |
% |
|
|
11.50 |
% |
|
|
5.23 |
% |
|
|
16.70 |
% |
|
Dividend Payout Ratio
|
|
|
26.53 |
% |
|
|
22.22 |
% |
|
|
24.19 |
% |
|
|
32.50 |
% |
|
|
74.29 |
% |
|
|
45.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
|
|
|
3.13 |
% |
|
|
3.44 |
% |
|
|
3.27 |
% |
|
|
3.55 |
% |
|
|
3.97 |
% |
|
|
3.75 |
% |
|
Yield on Average Earning Assets
|
|
|
3.56 |
% |
|
|
3.92 |
% |
|
|
3.72 |
% |
|
|
4.20 |
% |
|
|
4.88 |
% |
|
|
4.52 |
% |
|
Yield on Average Interest Bearing Liabilities
|
|
|
0.62 |
% |
|
|
0.70 |
% |
|
|
0.66 |
% |
|
|
0.92 |
% |
|
|
1.27 |
% |
|
|
1.09 |
% |
|
Net Interest Spread
|
|
|
2.94 |
% |
|
|
3.22 |
% |
|
|
3.06 |
% |
|
|
3.28 |
% |
|
|
3.61 |
% |
|
|
3.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses (000’s)
|
|
$ |
(1,250 |
) |
|
$ |
(725 |
) |
|
$ |
(1,925 |
) |
|
$ |
800 |
|
|
$ |
1,500 |
|
|
$ |
2,300 |
|
|
Net Charge-offs
|
|
$ |
(272 |
) |
|
$ |
45 |
|
|
$ |
(227 |
) |
|
$ |
203 |
|
|
$ |
453 |
|
|
$ |
656 |
|
|
Net Charge-offs as a % of Loans
|
|
|
-0.16 |
% |
|
|
0.03 |
% |
|
|
-0.03 |
% |
|
|
0.12 |
% |
|
|
0.30 |
% |
|
|
0.10 |
% |
|
Non-Performing Loans (000’s)
|
|
$ |
5,532 |
|
|
$ |
5,783 |
|
|
$ |
5,532 |
|
|
$ |
4,465 |
|
|
$ |
4,168 |
|
|
$ |
4,465 |
|
|
Non-Performing Loans to Total Assets
|
|
|
0.50 |
% |
|
|
0.57 |
% |
|
|
0.50 |
% |
|
|
0.45 |
% |
|
|
0.50 |
% |
|
|
0.45 |
% |
|
Non-Performing Assets (000’s)
|
|
$ |
5,532 |
|
|
$ |
5,783 |
|
|
$ |
5,532 |
|
|
$ |
5,625 |
|
|
$ |
5,504 |
|
|
$ |
5,625 |
|
|
Non-Performing Assets to Assets
|
|
|
0.50 |
% |
|
|
0.57 |
% |
|
|
0.50 |
% |
|
|
0.57 |
% |
|
|
0.66 |
% |
|
|
0.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
|
|
|
76.07 |
% |
|
|
68.00 |
% |
|
|
72.00 |
% |
|
|
65.33 |
% |
|
|
70.51 |
% |
|
|
67.79 |
% |
- 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.
- 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
|
INCOME STATEMENT
|
|
Unaudited
2021
|
|
|
Audited
2020
|
|
|
Interest and Dividend Income
|
|
$ |
17,565,650 |
|
|
$ |
18,101,844 |
|
|
Interest Expense
|
|
|
2,137,253 |
|
|
|
3,090,815 |
|
|
Net Interest Income
|
|
|
15,428,397 |
|
|
|
15,011,029 |
|
| Non-Interest Income |
|
|
6,441,307 |
|
|
|
5,681,703 |
|
|
Provision for Loan Losses
|
|
|
(1,975,000 |
) |
|
|
2,300,000 |
|
|
Impairment of long lived assets
|
|
|
171,109 |
|
|
|
19,193 |
|
| Other Non-Interest Expenses |
|
|
15,959,140 |
|
|
|
14,385,236 |
|
|
Income Before Income Taxes
|
|
|
7,714,455 |
|
|
|
3,988,303 |
|
|
Provision for Income Taxes
|
|
|
693,126 |
|
|
|
173,250 |
|
|
Net Income
|
|
$ |
7,021,329 |
|
|
$ |
3,815,053 |
|
|
Dividend on preferred stock
|
|
|
130,896 |
|
|
|
131,746 |
|
|
Net Income available to common shareholders
|
|
$ |
6,890,433 |
|
|
$ |
3,683,307 |
|
|
Average Common Shares Outstanding
|
|
|
3,205,074 |
|
|
|
3,199,183 |
|
|
Net Income Per Common Share
Dividends Declared
|
|
|
2.15.52 |
|
|
|
1.15.52 |
|
|
BALANCE SHEET
|
|
Unaudited
June 30, 2021
|
|
|
Audited
June 30, 2020
|
|
|
Cash and Due from Banks
|
|
$ |
15,415,037 |
|
|
$ |
16,950,810 |
|
|
Interest Bearing Bank Deposits
|
|
|
3,901,543 |
|
|
|
1,199,474 |
|
|
Federal Funds Sold
|
|
|
166,698,000 |
|
|
|
68,548,000 |
|
|
Loans Held for Sale
|
|
|
8,854,680 |
|
|
|
90,403,042 |
|
| Loans Held for Investment |
|
|
661,125,556 |
|
|
|
661,528,802 |
|
|
Less Allowance for Loan Losses
|
|
|
(8,726,540 |
) |
|
|
(10,033,466 |
) |
|
Net Loans Held for Investment
|
|
|
652,399,016 |
|
|
|
651,495,336 |
|
|
Securities
|
|
|
198,814,465 |
|
|
|
93,381,484 |
|
|
Other Assets
|
|
|
59,217,012 |
|
|
|
59,623,971 |
|
|
Total Assets
|
|
$ |
1,105,299,753 |
|
|
$ |
981,602,117 |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$ |
955,344,337 |
|
|
$ |
766,651,982 |
|
|
Long Term Debt
|
|
|
31,309,498 |
|
|
|
100,585,081 |
|
|
Other Liabilities
|
|
|
18,434,164 |
|
|
|
22,063,159 |
|
|
Total Liabilities
|
|
|
1,005,087,999 |
|
|
|
889,300,222 |
|
|
Preferred Stock
|
|
|
4,558,298 |
|
|
|
4,591,623 |
|
|
Common Equity
|
|
|
95,653,456 |
|
|
|
87,710,272 |
|
|
Stockholders’ Equity
|
|
|
100,211,754 |
|
|
|
92,301,895 |
|
|
Total Liabilities and Stockholders’ Equity
|
|
$ |
1,105,299,753 |
|
|
$ |
981,602,117 |
|
|
Book Value Per Common Share
|
|
$ |
29.80 |
|
|
$ |
27.44 |
|
|
Tangible Book Value Per Common Share
|
|
$ |
29.98 |
|
|
$ |
27.51 |
|
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/657238/F-M-Bank-Corp-Announces-Second-Quarter-Earnings-and-Dividend
Daphyne Saunders Thomas served as the endowed Adolph Coors Professor of Business Administration chair until her retirement and is currently a professor emerita at James Madison University. A graduate of The Washington and Lee University School of Law, she joined the College of Business faculty in 1981, and completed her MBA at JMU. Thomas earned her undergraduate degree at Virginia Tech. She currently teaches graduate classes for James Madison University for the Executive Leadership MBA and for the Master of Accounting programs. She was a co-founder and co-director of the CyberCity Summer Program, a nationally award-winning summer technology program for middle and high school students from underrepresented populations. Thomas also previously chaired the Harrisonburg Electric Commission and is a former chair of the Harrisonburg/Rockingham Community Services Board. She currently serves on the boards of numerous non-profit organizations, including Sunnyside Communities, The Explore More Children’s Museum, The Community Services Board Halfway House, The JMU College of Visual and Performing Arts Advisory Board, The Harrisonburg/Rockingham Child Daycare Center and The Community Foundation of Harrisonburg/Rockingham Grants and Scholarship committee. Previous gubernatorial appointments include service on the Commonwealth Transportation Board, the Jamestown Yorktown Foundation, the Outstanding Virginian Day, and the Selective Service System Board. She serves on the audit and ORC committees of the F & M Corporate Board.
Hannah Hutman is a partner at the law firm of Hoover Penrod, PLC, in Harrisonburg. Her practice includes representing creditors, trustees, and debtors in bankruptcy proceedings and insolvency related matters. Hannah has represented national and regional banks in all aspects of commercial loan transactions and collections, including restructuring obligations, asset liquidations and dispositions, and foreclosure. Hannah is a member of the panel of Chapter 7 trustees for the Western District of Virginia. In addition, Hannah provides legal counsel and services in entity formation and governance matters, financing transactions, contracts, and business asset transfers. She is a former Chair of the Board of Governors of the Bankruptcy Law Section for the Virginia State Bar. Hannah is “AV” rated by Martindale-Hubbell, has routinely been listed in Super Lawyers as a Rising Star, selected as a member of Virginia’s “Legal Elite,” and included in the American Bankruptcy Institute’s 2018 class of “40 under 40.” She received her J.D. from the Marshall Wythe School of Law at the College of William and Mary in Williamsburg, Virginia and her B.A, summa cum laude, from Columbia Union College in Takoma Park, Maryland. Hannah lives in Harrisonburg with her husband Matt and two sons.
