Garth Knight Joins Executive Team of F&M Bank
F&M Bank’s senior leadership team and board of directors welcome Garth Knight to the organization as Executive Vice President and Chief Lending Officer. Mr. Knight joins F&M Bank with over 15 years of banking experience. He comes to the organization from Wells Fargo, based in McLean, Virginia, where he served as Business Acquisition Manager for the Mid-Atlantic region.
Prior to his role as Business Acquisition Manager, Mr. Knight oversaw the Carolinas Region as a Business Banking Manager. His experience also extends to retail, mortgage and auto lending in South Carolina, Georgia and Florida markets. Mr. Knight earned a Bachelor of Arts in Communications at Newberry College in Newberry, South Carolina.
Mr. Knight’s strong lending background, proven sales strategy, and leadership will be an asset to the executive team. As Chief Lending Officer, Mr. Knight will monitor the bank’s loan portfolio while guiding the business development team to grow strong commercial relationships.
“I am thrilled to be part of the F&M family”, says Mr. Knight. “The Shenandoah Valley is an area I have grown to love over the years, and I could not be more excited to become a member of this outstanding community.”
F&M Bank’s President and CEO, Mark Hanna commented, “We are delighted to welcome Garth to the F&M Bank family. His skills and experience will be an asset to lead our sales efforts as we aggressively seek to grow strong commercial banking relationships in the Shenandoah Valley. Garth has a background successfully coaching, mentoring, and building teams that will bring the best service possible to our client relationships.”
F&M Bank Provided $60M in PPP Loans for 600 Local Businesses
F&M Bank announced today that it has processed more than 600 loans totaling approximately $60 million under the Small Business Administration’s Paycheck Protection Program (PPP) to help local small businesses support payroll and related costs, saving numerous jobs within the Shenandoah Valley. The average loan size was approximately $95K as of May 26, 2020. The PPP, which was originally launched on April 3 to address economic challenges caused by the COVID-19 pandemic, provides forgivable, government-guaranteed loans for the nation’s small businesses, which account for roughly 48 percent of the U.S. workforce.
“As relationship bankers and dedicated members of this community, we are doing everything we can to protect the vibrancy of our small businesses, which serve as the economic engines for our local economy,” said Mark Hanna, President & CEO of F&M Bank. “I’m so proud of our staff, who have worked around the clock to process these loans and ensure that critical funds were able to get in the hands of those who needed it most. We will continue processing applications until all remaining PPP funds are accounted for.”
In addition to its PPP funding efforts, F&M Bank continues to help the community during this time. Driven by the organization’s core value of community betterment, executive management put a plan in motion to donate $100,000 to establish loan and grant programs throughout the bank’s Shenandoah Valley footprint. To ensure this donation was properly managed and distributed, F&M Bank partnered with various community organizations and county governments. From clothing boutiques to coffee shops and eateries, locally owned and operated institutions were able to receive much-needed relief prior to the establishment of the CARES Act.
“Community banks stepped in to provide a helping hand to local small businesses—something that they do during both good times and challenging ones,” Independent Community Bankers of America President and CEO Rebeca Romero Rainey said. “Providing more than half of the nation’s small business loans, community banks prioritize the needs of their local customers and communities and quickly adapt and respond during times of crisis. By providing the lion’s share of PPP loans, community banks have served an essential role in helping small businesses survive amid COVID-19, while saving countless jobs across our nation.”
According to the SBA summary of loan approvals through May 16, lenders with less than $50 billion in assets accounted for nearly 65 percent of approved loans—totaling 4.3 million—and more than 62 percent of the approved dollar amount—estimated at $513 billion since launch of the PPP. Nationwide, community banks have received an average of nearly 200 loan applications through the program ranging in size from less than $50,000 to more than $500,000, according to a recent ICBA survey.
About ICBA
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
F & M Bank Corp. Announces Branch Closures, First Quarter Earnings And First Quarter Dividend
F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces three branch closures, its financial results for the first quarter ending March 31, 2019 and first quarter dividend to shareholders.
F&M Bank Corp. has worked diligently during the COVID-19 global pandemic to meet the needs of our customers by providing Paycheck Protection Plan (PPP) loans through the Small Business Administration, processing loan deferrals and continuing to operate our core services while practicing social distancing. As of April 27, 2020, we have processed 531 PPP loans for a total of $51.5 million, processed 683 deferrals and continued to operate our branches in a drive-thru only capacity daily, with courier pickup and by appointment account opening.
We are far from seeing an end to the effects of the pandemic on our businesses and economy, however the efforts of our management and staff to support our communities has been tremendous and is a testament to community banking. This includes an early initiative to fund $100,000 in small business grant programs to support our community in the Shenandoah Valley managing through the impacts of COVID-19. .
As part of our ongoing strategic efforts to reduce overhead, we have made the difficult decision to consolidate three of our branch locations in Craigsville, Grottoes and Luray, VA. While these physical locations will close on July 31, 2020, client accounts will remain supported at neighboring offices. Impacted employees from these branches will be offered comparable positions within the organization.
Selected financial highlights for the quarter include:
- Net income of $1.19 million.
- Net interest margin of 3.97%.
- Loans held for investment increased $6.2 million for the quarter
- Total deposits increased $37.6 million and $78.5 million, respectively for the quarter and for the trailing 12 months.
- Nonperforming loans decreased to 0.50% at the end of the quarter from 0.70% of total assets on 12/31/2019 and 1.36% on 6/30/2019.
Mark Hanna, President, commented “Our first quarter earnings of $1.19 million were weighed down by an increase in our provision for loan losses due to economic factors related to COVID-19. These results are similar to first quarter of 2019, despite the sale of a portion of our dealer portfolio and a correction to the expensing of dealer commissions. Our net interest margin of 3.97% shows a historical decline but still remains strong in the current environment. Our balance sheet liquidity has increased significantly over the last two quarters and we are implementing strategic solutions to leverage these assets.”
Mr. Hanna continued, ‘Nonperforming loans have improved dramatically over prior year, decreasing $6.4 million since first quarter of 2019, and also decreasing $1.6 million since year end 2019. Efforts continue to maintain our goal of 0.50% of total assets.
On April 24, 2020 our Board of Directors declared a first quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $17.25 per share this constitutes a 6.03% yield on an annualized basis. The dividend will be paid on June 1, 2020, to shareholders of record as of May 15, 2020.”
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 fourteen 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, 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) 896-8941.
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 statement
s following the date of this press release.
- 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.
CONTACT: Carrie Comer, EVP/Chief Financial Officer; 540-896-8941 or ccomer@fmbankva.com
SOURCE: F&M Bank Corp
F&M Bank Appoints Rick Williams and Roger Decker to Board
F&M Bank is excited to announce the appointment of Rick Williams and Roger Decker to the F&M Bank Augusta County Community Board.
Rick Williams boasts over thirty years in the insurance industry and currently owns and operates R G Williams Insurance Agency, Inc. His broad knowledge of insurance coverages, risks and exposures, as well as his experience working in Virginia government, allows him to serve his insurance clients with unique expertise and insight. Rick handles all farm, business and life insurance coverages for agency clients.
Mr. Williams is an active community member and currently serves on the Buyer’s Committee for the Augusta County 4H/FFA Market Animal Show as well as a Director for the Waynesboro Heritage Foundation and Museum. He is currently serving on the Augusta County Agricultural/Forestal District Advisory Committee. Rick and his wife, Diane, have been life-long residents of the Shenandoah Valley and currently reside in Stuarts Draft.
Roger Decker has worked in the real estate industry since 1987 and currently owns and operates Decker Realty in Staunton with his wife, Monya. Roger specializes in the sale of farms and land in the Shenandoah Valley and is typically a top seller of farms in Augusta County. Both he and his wife recently achieved the coveted GRI (Graduate Realtor Institute) designation.
Prior to moving to Virginia from Pennsylvania, Mr. Decker worked as an HVAC designer for four years. He then began working for his family’s real estate development business for seven years. Roger returned to school, received his Bachelor of Science from James Madison University and entered the building industry in Virginia as a Class A contractor. Mr. Decker has been a licensed realtor since 2002 and broker operating his own office since 2009.
F & M Bank Corp. Announces Earnings
F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ended December 31, 2019.
Selected highlights for the quarter and year to date include:
- Net income of $1.9 million and $4.6 million, respectively;
- Non-performing assets decreased $2.43 million during the fourth quarter and $5.43 million year to date;
- Net interest margin 3.81% and 4.33%. respectively;
- Total deposits increased $23.3 million and $50.4 million, respectively for the quarter and year to date.
Mark Hanna, President, commented, “We are pleased to announce fourth quarter and year-to-date earnings of $1.9 million and $4.6 million, respectively. Although these results are lower than prior year, we made great progress in positioning F&M Bank for continued success by substantially reducing our Non-performing assets and growing Core deposit relationships. It is important to note that Fourth Quarter earnings were reduced by several non-recurring items related to dealer deferred cost amortization, pension costs and severance benefits. Our margin decreased as a result of lower loan balances due primarily to sales of indirect dealer loans which occurred during the second half of the year and unrecognized dealer loan costs. Our provision for loan losses increased in 2019 due to higher levels of substandard loans and identification of problem credits. We feel the allowance for loan losses reflects the current risk in our loan portfolio. As we push into 2020, we feel that we are well positioned to leverage our surplus liquidity with organic loan growth and continued improvement in reducing our funding costs.
Hanna continued, “During the fourth quarter we made significant progress in addressing our problem assets. Previously we had announced that two large loans were placed on non-accrual during the second quarter, resulting in our significant allowance for loan loss funding in the first half of the year. During the fourth quarter we were successful in collecting on one of these loans and we recognized a partial write-down on the other based on the appraised value and continued payment delinquency. As a result of these and other collection efforts our problem assets decreased from $17.3 million to $12.6 million.” Highlights of our financial performance are included below.
Restatement of 2018 Financial Statements: In November 2019, as a result of the sale of a portion of the Bank’s indirect dealer loan accounts, management discovered a system input error that prevented the deferred costs associated with dealer loans originated after a certain date from amortizing properly. This error in accounting resulted in a restatement of calendar year 2018 earnings of $261,728, net of tax and a correction of $248,090, net of tax for years prior to 2018 which is reflected as a reduction to retained earnings in the restated 2018 consolidated financial statements. The 2019 earnings properly reflect the amortization, which resulted in reduction of earnings of $184,890, net of tax.
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 fourteen 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, LLC (DBA F&M Mortgage) and VSTitle, LLC 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.
- 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 services 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.
CONTACT: Carrie Comer, EVP/Chief Financial Officer
540-896-8941 or ccomer@FMBankVA.com
F&M Bank Announces Officer Promotions
F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective January 24, 2020.
Bank Officer:
Ann Kirtley, Elkton Branch Coordinator
Carrie Grimes, Timberville Branch Coordinator
Christy Trail, Woodstock Branch Coordinator
Emily Rhodes, Credit Analyst
Mary Pavlovskaya, Business Deposit Services Officer
Teri Hasley, Deposit Operations Manager
Assistant Vice President:
Ashley Lam, Crossroads and Grottoes Branch Manager
Jessica Fletcher, Dealer Finance Associate
John Coffman, Woodstock Branch Manager
Jordan Dean, Commercial Relationship Manager
Matt Hill, Commercial Relationship Manager
Vice President:
Calan Jansen, Infinex Financial Advisor
Matt Robinson, Infinex Financial Advisor
Sarah Prusak, Business Deposit Services Officer
Senior Vice President:
Natalie Strickler-Alt, Northern Area Market Manager
Sara Berry, Southern Area Market Manager
Paul Eberly, Agricultural & Rural Programs Leader
For more information, please contact Kelsey Dean, Marketing Specialist at (540) 217-6410, or email marketing@fmbankva.com.
F & M Bank Corp. Announces Dividend
F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its recently declared third quarter dividend.
Mark Hanna, President, commented “On January 24, 2020, our Board of Directors declared a fourth quarter dividend of $0.26 per share. Based on our most recent trade price of $28.13 per share, this dividend constitutes a 3.70% yield on an annualized basis. The dividend will be paid on March 2, 2020, to shareholders of record as of February 14, 2020.”
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 fourteen 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, 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) 896-8941.
CONTACT: Carrie Comer, EVP/Chief Financial Officer
540-896-8941 or ccomer@fmbankva.com
