TIMBERVILLE, VA--(Marketwired - Jan 25, 2016) - F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the full year and fourth quarter ended December 31, 2015, as well as its recently declared fourth quarter dividend. Selected highlights for the year include:

  • Net income of $8.4 million

  • Net interest margin of 4.39%

  • Charge-offs decreased to $243 thousand, the lowest level since 2006

  • Non-Performing Assets Ratio decreased to 1.30%, the lowest level since 2008

  • Loan held for investment increased $25.9 million

Dean Withers, President and CEO, commented, "We are extremely pleased to announce record earnings for the second year in a row. Our fourth quarter earnings increased 37% to $2.181 million and full year earnings increased 45% to $8.417 million. The significant increase can be attributed to our very strong net interest margin, growth in earning assets and a reduction in the provision for loan losses." Withers stated, "Loan demand slowed compared to 2014, however full year growth in loans held for investment still totaled $25.9 million. Additional loan growth could have been achieved, however we were very disciplined in our approach and did not chase lower rate/longer term deals that were available in the market. We believe now that the Federal Reserve has begun to tighten monetary policy that our strategy will benefit our net interest margin well into the future."

Withers continued, "Non-performing loans continue to decrease, both nominally and as a percentage of loans held for investment. Due to this trend we significantly decreased our funding of the provision for loan losses to $300 thousand vs. $2.25 million in 2014. We have now completed three consecutive quarters without funding the provision, however, with the significant reduction in charge-offs still maintain a very healthy allowance for loan losses of 1.61% of loans held for investment." Withers concluded, "On January 21, 2016, our Board of Directors declared a fourth quarter dividend of $0.19 per share. Based on our most recent trade price of $22.50 per share, this dividend constitutes a 3.38% yield on an annualized basis. The dividend will be paid on February 18, 2015, to shareholders of record as of February 4, 2015." Highlights of our financial performance are included below.

F & M Bank Corp. is an independent, locally-owned, community bank holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank's nine banking offices in Rockingham, Shenandoah and Page Counties, Virginia. The Bank also provides additional services through two loan production offices located in Penn Laird, VA and Fishersville, VA and through its subsidiary, VBS Mortgage located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-8941.

This press release may contain "forward-looking statements" as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

   
   
F&M Bank Corp.
Key Statistics		  
                 
 2015  2014  
 Q4  YTD  Q4  YTD  
Net Income (000's) $ 2,181   $ 8,417   $ 1,592   $ 5,802  
Net Income available to Common $ 2,053   $ 7,907   $ 1,464   $ 5,674  
Earnings per common share $ 0.62   $ 2.40   $ 0.44   $ 1.82  
                         
Return on Average Assets   1.33 %   1.31 %   1.06 %   1.00 %
Return On Average Equity   10.59 %   10.46 %   8.86 %   8.65 %
Dividend Payout Ratio   30.65 %   30.42 %   38.64 %   37.36 %
                         
Net Interest Margin (1)   4.39 %   4.43 %   4.29 %   4.30 %
Yield on Average Earning Assets   4.88 %   4.91 %   4.91 %   4.97 %
Yield on Average Interest Bearing Liabilities   0.71 %   0.68 %   0.86 %   0.91 %
Net Interest Spread   4.17 %   4.23 %   4.05 %   4.06 %
                         
Provision for Loan Losses (000's) $ -   $ 300   $ -   $ 2,250  
Net Charge-offs (000's) $ 88   $ 243   $ (124 ) $ 1,709  
Net Charge-offs as a % of Loans   0.02 %   0.04 %   (0.02 %)   0.33 %
Non-Performing Loans (000's)       $ 6,526         $ 6,975  
Non-Performing Loans to Total Assets         0.98 %         1.15 %
Non-Performing Assets (000's)       $ 8,654         $ 10,482  
Non-Performing Assets to Assets         1.30 %         1.73 %
                         
                         
Efficiency Ratio   58.93 %   58.96 %   60.62 %   58.51 %
     
(1)   The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 34%. The Company's net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.
(2)   The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a large percentage of its income to expenses.
     
     
F & M Bank Corp.Financial Highlights  
   
 For Twelve Months
Ended December 31		  
INCOME STATEMENTUnaudited
2015		  Unaudited
2014		  
Interest and Dividend Income $ 29,352,677   $ 26,772,057  
Interest Expense   2,875,609     3,647,722  
  Net Interest Income   26,477,068     23,124,335  
Non-Interest Income   3,896,000
    3,530,335
 
Provision for Loan Losses   300,000     2,250,000  
Other Non-Interest Expenses   17,985,878     15,655,914  
  Income Before Income Taxes   12,087,190     8,748,756  
  Provision For Income Taxes   3,505,606
    2,901,496
 
Less Minority Interest income   164,575     45,653  
Net Income $ 8,417,009   $ 5,801,607  
Dividend on preferred stock   510,000     127,500  
Net Income available to common shareholders $ 7,907,009   $ 5,674,107  
Average Common Shares Outstanding   3,290,812     3,119,333  
Net Income Per Common ShareDividends Declared   2.40
.73		     1.82
.68		  
             
             
             
BALANCE SHEET  Unaudited
December 31, 2015		    Unaudited
December 31, 2014		  
Cash and Due From Banks $ 6,923,065   $ 6,241,016  
Interest Bearing Bank Deposits   1,596,382     910,527  
Federal Funds Sold         16,051,000  
Loans Held for Sale   57,805,529     13,381,941  
Loans Held for Investment   544,053,477     518,201,574  
  Less Allowance for Loan Losses   (8,781,453 )   (8,724,731 )
  Net Loans Held for Investment   535,272,024     509,476,843  
Securities   25,329,103     22,304,902  
Other Assets   38,223,537     36,941,873  
  Total Assets $ 665,149,640   $ 605,308,102  
             
Deposits $ 494,669,756   $ 491,504,536  
Short Term Debt   24,954,051     14,358,492  
Long Term Debt   48,160,714     9,875,000  
Other Liabilities   14,414,707     11,771,671  
  Total Liabilities   582,199,228     527,509,699  
Stockholders' Equity   82,950,412     77,798,403  
  Total Liabilities and Stockholders' Equity $ 665,149,640   $ 605,308,102  
Book Value Per Common Share $ 22.38   $ 20.77  
Tangible Book Value Per Common Share $ 22.21   $ 20.54