F & M Bank Corp. Announces Second Quarter Earnings and Dividend
F & M Bank Corp. (OTCQX:FMBM) reported a net income of $3.2 million and diluted earnings per share of $0.93 for Q2 2021. Growth was driven by increased net interest income, despite margin compression, and strong non-interest income, totaling $6.4 million year-to-date. The bank improved asset quality, reducing the allowance for loan losses to 1.31%. Total deposits rose by $92.6 million for the quarter and $188.7 million over the past year. The Board declared a $0.26 dividend per share, yielding 3.59% annually, payable August 30, 2021.
- Net income of $3.2 million for Q2 2021.
- Year-to-date non-interest income of $6.4 million, up from $5.7 million.
- Allowance for loan losses reduced to 1.31% of loans held for investment.
- Total deposits increased by $92.6 million for the quarter.
- Declared a $0.26 dividend per share, yielding 3.59% annually.
- Net interest margin declined to 3.27%.
- Loan growth was modest, reflecting a tepid lending environment.
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
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
Continued improvements in asset quality and economic conditions resulted in the ability to reduce the allowance for loan losses to
Paycheck Protection Program ("PPP") & CARES Act
During 2021, the Company processed 363 Paycheck Protection Program (PPP) loans that totaled
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 from0.68% on 12/31/20 and0.57% 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
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
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.
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https://www.accesswire.com/657238/F-M-Bank-Corp-Announces-Second-Quarter-Earnings-and-Dividend
FAQ
What are FMBM's earnings for the second quarter of 2021?
How much did FMBM's total deposits increase in Q2 2021?
What is the dividend declared by FMBM for the second quarter of 2021?
What was the net interest margin for FMBM as of June 30, 2021?
How has FMBM's non-interest income changed year-to-date in 2021?
