F&M Bank Corp. Reports First Quarter 2024 Earnings and Quarterly Dividend
F&M Bank Corp. reported strong first quarter 2024 results with a net income of $1.2 million or $0.35 per share, total assets of $1.32 billion, total loans of $825.9 million, and total deposits of $1.16 billion. The company experienced growth in loans and deposits, increased interest income, reduced operational expenses, and continued strong asset quality. The Bank's net interest margin decreased by two basis points to 2.64% on a linked quarter basis. Noninterest income decreased slightly, while noninterest expenses saw a significant decline. Shareholders' equity decreased slightly due to dividend payments. The company declared a first quarter dividend of $0.26 per share, offering a 6.75% yield. The loan portfolio remains diversified, with residential mortgage and automobile loans being the largest segments. Asset quality remains stable with NPLs at 0.47% of total assets. The Bank recorded a provision for credit losses of $823,000, reflecting net loan charge-offs and loan growth. Overall, F&M Bank Corp. demonstrated positive financial performance in the first quarter of 2024.
Strong first quarter 2024 results with a net income of $1.2 million or $0.35 per share.
Total assets of $1.32 billion, total loans of $825.9 million, and total deposits of $1.16 billion, showing growth in loans and deposits.
Increased interest income, reduced operational expenses, and continued strong asset quality.
Net interest margin decreased slightly to 2.64% on a linked quarter basis.
Declared a first quarter dividend of $0.26 per share, offering a 6.75% yield to shareholders.
Loan portfolio remains diversified with residential mortgage and automobile loans as the largest segments.
Asset quality remains stable with NPLs at 0.47% of total assets.
Shareholders' equity decreased slightly due to dividend payments.
Noninterest income decreased slightly, while noninterest expenses saw a significant decline.
The Bank recorded a provision for credit losses of $823,000, reflecting net loan charge-offs and loan growth.
Tangible book value per common share decreased slightly to $21.201.
F&M reports solid first quarter results, shows strong start in 2024.
See associated, unaudited summary consolidated financial data for additional information.
TIMBERVILLE, VA / ACCESSWIRE / April 30, 2024 / F&M Bank Corp. (the "Company" or "F&M"), (OTCQX:FMBM), the parent company of Farmers & Merchants Bank ("F&M Bank" or the "Bank"), today reported results for the quarter ended March 31, 2024.
Net income was
At March 31, 2024, the Company had total assets of
"On behalf of everyone at F&M, I am pleased to share our financial results for first quarter 2024," said Mike Wilkerson, chief executive officer. "During the quarter, we achieved positive trends in these key areas: increased revenue, increased interest income, increased net income, reduced operational expenses, deposit and loan growth, and continued strong asset quality.
"These results are directly related to the execution of our strategic plan to position our Company for the future. During the remainder of 2024, we expect to benefit from several initiatives including: maturing bond investments that should be converted into higher yielding loans or bonds, an ongoing review of operational efficiency that focuses on providing exceptional customer experience, a revised compensation plan for our board of directors of
"As I shared in our 2024 Annual Report, our number one priority is to generate "sufficient and sustainable profit" and everyone at F&M Bank is committed to this goal. It is exciting to see how our team has embraced this commitment, as shown in their desire to help determine our culture as a community bank. Our financial results are just one way we, our customers, shareholders, and the Shenandoah Valley, benefit from their knowledge and understanding of what community banking means.
"To our shareholders, from all of us at F&M Bank Corp., thank you for your investment, trust, and support. If you bank with us, your business is appreciated. Banking with us is one of the best ways for you to support your investment. If you do not bank with us yet, we invite you to visit any of our fourteen branch locations in the Shenandoah Valley."
FIRST QUARTER INCOME STATEMENT REVIEW
Overview
Net income for first quarter 2024 was
Interest income for first quarter 2024 was
During first quarter 2024, the Bank recorded an
Net Interest Income
For first quarter 2024, net interest income totaled
Compared to first quarter 2023, net interest income increased by
Noninterest Income
Noninterest income, which includes gains and losses, totaled
Compared to first quarter 2023, noninterest income increased by
Noninterest Expenses
Noninterest expenses totaled
Compared to the same quarter in 2023, noninterest expenses declined
BALANCE SHEET REVIEW
On March 31, 2024, assets totaled
Investment securities decreased by
Total deposits on March 31, 2024, were
Shareholders' equity decreased by
LIQUIDITY
The Company's on-balance sheet asset liquidity includes cash and cash equivalents, unpledged investment securities, and loans held for sale, which totaled
The Bank has access to off-balance sheet liquidity through unsecured Federal funds lines totaling
The Bank is scheduled to receive
LOAN PORTFOLIO
The Company's loan portfolio is diversified with its two largest segments being residential mortgage loans originated through its subsidiary F&M Mortgage, and automobile loans originated by its dealer finance division. Following is a breakdown of the loan portfolio composition as of March 31, 2024, and December 31, 2023 (dollars in thousands):
| March 31, 2024 | December 31, 2023 | |||||||||||||||
Loan Category | Balance | Percentage of Total Portfolio | Balance | Percentage of Total Portfolio | ||||||||||||
Residential mortgage | $ | 209,147 | 25.32 | % | $ | 204,344 | 24.86 | % | ||||||||
Automobile | 119,785 | 14.50 | % | 122,924 | 14.95 | % | ||||||||||
Non owner-occupied commercial real estate | 101,237 | 12.26 | % | 106,181 | 12.92 | % | ||||||||||
Owner-occupied commercial real estate | 88,660 | 10.74 | % | 92,362 | 11.23 | % | ||||||||||
Secured by farmland | 82,048 | 9.93 | % | 81,657 | 9.93 | % | ||||||||||
Commercial and industrial (includes agricultural loans) | 61,451 | 7.44 | % | 58,734 | 7.14 | % | ||||||||||
Other construction and loan development loans | 52,812 | 6.39 | % | 47,749 | 5.81 | % | ||||||||||
Home equity lines of credit | 46,087 | 5.58 | % | 45,749 | 5.56 | % | ||||||||||
Residential construction loans | 32,397 | 3.92 | % | 30,488 | 3.71 | % | ||||||||||
Credit card and other consumer loans | 16,354 | 1.98 | % | 17,278 | 2.10 | % | ||||||||||
Multi-family | 10,699 | 1.30 | % | 8,203 | 1.00 | % | ||||||||||
Other | 5,195 | 0.64 | % | 6,423 | 0.79 | % | ||||||||||
Total | $ | 825,872 | 100.00 | % | $ | 822,092 | 100.00 | % | ||||||||
ASSET QUALITY AND ALLOWANCE FOR CREDIT LOSSES
Nonperforming loans (NPLs) as a percentage of total assets were
The Bank recorded a provision for credit losses of
DIVIDEND DECLARATION
On April 18, 2024, our Board of Directors declared a first quarter dividend of
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ABOUT US
F&M Bank Corp. is an independent, locally owned, financial holding company offering a full range of financial services through our subsidiary, Farmers & Merchants Bank's (F&M Bank) fourteen banking offices in Rockingham, Shenandoah, and Augusta counties, Virginia, and the cities of Winchester and Waynesboro, Virginia. The Company also owns F&M Mortgage, a mortgage lending subsidiary, and VSTitle, a title company subsidiary. Founded in 1908 as a community venture to serve the farmers and merchants of the Shenandoah Valley, where both the Company and the Bank are headquartered, F&M Bank remains more committed than ever to the success of the agricultural industry, small business ventures, and the nonprofit sector. F&M's values, which are gregarious, resolute, original, and wholehearted (G.R.O.W.), combined with our brand pillars of sustenance, security, and enrichment, shape the Company's decision-making, philanthropy, and volunteerism. The only publicly traded organization based in Rockingham County, we offer a diverse suite of financial products and services and a strong team dedicated to living our mission of being the financial partner of choice in the Shenandoah Valley, both today and tomorrow, as we have been since 1908. Additional information may be found by visiting our website, fmbankva.com.
NON-GAAP FINANCIAL MEASURES
The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible common equity and tangible book value per share, to supplement the evaluation of the Company's financial condition and performance. Management believes presentation of these non-GAAP financial measures provides useful supplemental information that is essential to a proper understanding of the Company's operating results. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A definition of GAAP to non-GAAP measures is included in the footnotes to table accompanying this release.
FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking statements" as defined by federal securities laws, which are subject to significant risks and uncertainties. These include statements regarding future plans, strategies, results, or expectations that are not historical facts, and are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "will," "estimate," "project" or similar expressions. These statements are based on estimates and assumptions, and our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Our actual results could differ materially from those 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 local and national economies or market conditions; changes in interest rates; regulations and accounting principles; changes in policies or guidelines; loan demand and asset quality, including values of real estate and other collateral; deposit flow; the impact of competition from traditional or new sources; and other factors. 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.
Summary Consolidated Financial Data (unaudited)
Dollars in Thousands, except for per share data
| Quarter to Date | ||||||||||||||||||||
| 3/31/2024 | 12/31/2023 (3) | 9/30/2023 (3) | 6/30/2023 (3) | 3/31/2023 (3) | ||||||||||||||||
Condensed Balance Sheet | ||||||||||||||||||||
Cash and cash equivalents | $ | 52,486 | $ | 23,717 | $ | 22,159 | $ | 36,505 | $ | 31,273 | ||||||||||
Investment securities | 369,744 | 379,557 | 383,502 | 394,868 | 398,960 | |||||||||||||||
Loans held for sale | 1,385 | 1,119 | 2,028 | 881 | 1,242 | |||||||||||||||
Gross loans | 825,872 | 822,092 | 805,602 | 776,260 | 756,920 | |||||||||||||||
Allowance for credit losses | (8,408 | ) | (8,321 | ) | (9,166 | ) | (8,769 | ) | (8,546 | ) | ||||||||||
Goodwill | 3,082 | 3,082 | 3,082 | 3,082 | 3,082 | |||||||||||||||
Other assets | 72,053 | 73,350 | 75,212 | 75,543 | 69,944 | |||||||||||||||
Total Assets | $ | 1,316,214 | $ | 1,294,596 | $ | 1,282,419 | $ | 1,278,370 | $ | 1,252,875 | ||||||||||
Noninterest bearing deposits | $ | 267,106 | $ | 264,254 | $ | 277,219 | $ | 277,578 | $ | 284,060 | ||||||||||
Interest bearing deposits | 889,237 | 868,982 | 856,691 | 859,534 | 821,175 | |||||||||||||||
Total Deposits | 1,156,343 | 1,133,236 | 1,133,910 | 1,137,112 | 1,105,235 | |||||||||||||||
Short-term debt | 60,000 | 60,000 | 60,000 | 47,000 | 55,000 | |||||||||||||||
Long-term debt | 6,943 | 6,932 | 6,922 | 6,911 | 6,901 | |||||||||||||||
Other liabilities | 15,194 | 16,105 | 14,567 | 15,153 | 13,104 | |||||||||||||||
Total Liabilities | 1,238,480 | 1,216,273 | 1,215,399 | 1,206,176 | 1,180,240 | |||||||||||||||
Shareholders' equity | 77,734 | 78,323 | 67,020 | 72,194 | 72,635 | |||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,316,214 | $ | 1,294,596 | $ | 1,282,419 | $ | 1,278,370 | $ | 1,252,875 | ||||||||||
Condensed Income Statement | ||||||||||||||||||||
Interest income and fees on loans | $ | 13,352 | $ | 13,061 | $ | 12,525 | $ | 11,517 | $ | 10,854 | ||||||||||
Interest income and fees on loans held for sale | 17 | 22 | 19 | 25 | 22 | |||||||||||||||
Income on cash and securities | 2,151 | 2,074 | 2,028 | 2,082 | 2,097 | |||||||||||||||
Total Interest Income | 15,520 | 15,157 | 14,572 | 13,624 | 12,973 | |||||||||||||||
Interest expense on deposits | 6,337 | 6,108 | 5,811 | 5,216 | 4,042 | |||||||||||||||
Interest expense on short-term debt | 996 | 812 | 702 | 523 | 992 | |||||||||||||||
Interest expense on long-term debt | 116 | 116 | 115 | 116 | 112 | |||||||||||||||
Total Interest Expense | 7,449 | 7,036 | 6,628 | 5,855 | 5,146 | |||||||||||||||
Net Interest Income | 8,071 | 8,121 | 7,944 | 7,769 | 7,827 | |||||||||||||||
Provision for (recovery of) credit losses | 823 | (134 | ) | 620 | 539 | - | ||||||||||||||
Noninterest income | 2,391 | 2,464 | 2,572 | 2,752 | 2,366 | |||||||||||||||
Noninterest expense | 8,423 | 10,482 | 8,922 | 10,172 | 9,189 | |||||||||||||||
Income tax benefit | (1 | ) | (220 | ) | (44 | ) | (431 | ) | (51 | ) | ||||||||||
Net Income | $ | 1,217 | $ | 457 | $ | 1,018 | $ | 241 | $ | 1,055 | ||||||||||
Per Share Data | ||||||||||||||||||||
Earnings per common share - basic | $ | 0.35 | $ | 0.13 | $ | 0.29 | $ | 0.07 | $ | 0.30 | ||||||||||
Book Value per Share | 22.11 | 22.47 | 19.43 | 20.75 | 20.86 | |||||||||||||||
Tangible Book Value per Share (1) | 21.20 | 21.55 | 18.50 | 19.82 | 19.93 | |||||||||||||||
Key Performance Ratios | ||||||||||||||||||||
Return on Average Assets | 0.37 | % | 0.14 | % | 0.32 | % | 0.08 | % | 0.34 | % | ||||||||||
Return on Average Equity | 6.24 | % | 2.49 | % | 5.80 | % | 1.33 | % | 5.97 | % | ||||||||||
Noninterest Income / Average Assets | 0.72 | % | 0.76 | % | 0.80 | % | 0.87 | % | 0.77 | % | ||||||||||
Noninterest Expense / Average Assets | 2.53 | % | 3.23 | % | 2.76 | % | 3.22 | % | 2.98 | % | ||||||||||
Efficiency Ratio (2) | 78.67 | % | 96.79 | % | 82.81 | % | 94.43 | % | 87.95 | % | ||||||||||
Net Interest Margin | 2.64 | % | 2.66 | % | 2.67 | % | 2.66 | % | 2.76 | % | ||||||||||
Earning Asset Yield | 5.07 | % | 4.96 | % | 4.87 | % | 4.65 | % | 4.57 | % | ||||||||||
Cost of Interest Bearing Liabilities | 3.14 | % | 3.00 | % | 2.87 | % | 2.61 | % | 2.40 | % | ||||||||||
Cost of Funds | 2.45 | % | 2.37 | % | 2.26 | % | 2.04 | % | 1.83 | % | ||||||||||
Net Interest Spread | 2.62 | % | 2.59 | % | 2.61 | % | 2.61 | % | 2.74 | % | ||||||||||
Net Charge-offs | $ | 807 | $ | 770 | $ | 193 | $ | 344 | $ | 166 | ||||||||||
Net Charge-offs as a % of Avg Loans | 0.39 | % | 0.38 | % | 0.10 | % | 0.18 | % | 0.09 | % | ||||||||||
Non-Performing Loans | $ | 6,246 | $ | 6,469 | $ | 3,586 | $ | 1,997 | $ | 1,782 | ||||||||||
Non-Performing Loans to Total Assets | 0.47 | % | 0.50 | % | 0.28 | % | 0.16 | % | 0.14 | % | ||||||||||
Non-Performing Assets | $ | 6,246 | $ | 6,524 | $ | 3,586 | $ | 1,997 | $ | 1,782 | ||||||||||
Non-Performing Assets to Total Assets | 0.47 | % | 0.50 | % | 0.28 | % | 0.16 | % | 0.14 | % | ||||||||||
ACLL as a % of Total Loans | 1.02 | % | 1.01 | % | 1.14 | % | 1.13 | % | 1.13 | % | ||||||||||
Loans to Deposits | 71.42 | % | 72.54 | % | 71.05 | % | 68.27 | % | 68.48 | % | ||||||||||
(1) Tangible book value per share is calculated by subtracting goodwill and other intangibles from total shareholders' equity and dividing the result by the common shares outstanding. Tangible book value per share is a non-GAAP financial measure that management believes provides investors with important information that may be related to the valuation of common stock.
(2) The Efficiency Ratio equals noninterest expenses divided by the sum of tax equivalent net interest income and noninterest income. Noninterest income excludes gains (losses) on securities transactions and low-income housing partnership losses. Noninterest expense excludes amortization of intangibles.
(3) Certain reclassifications have been made in the 2023 financial information to conform to reporting for the 2024 presentation. These reclassifications are not considered material and had no impact on prior year's net income, balance sheet or shareholders' equity.
FOR MORE INFORMATION, CONTACT
Lisa F. Campbell | EVP | Chief Financial Officer
540-896-1705
fmbankva.com
SOURCE: F&M Bank Corp
View the original press release on accesswire.com
FAQ
What was F&M Bank Corp.'s net income for the first quarter of 2024?
F&M Bank Corp. reported a net income of $1.2 million or $0.35 per share for the first quarter of 2024.
What was the total assets of F&M Bank Corp. as of March 31, 2024?
F&M Bank Corp. had total assets of $1.32 billion as of March 31, 2024.
What was the total loans and total deposits of F&M Bank Corp. as of March 31, 2024?
F&M Bank Corp. had total loans of $825.9 million and total deposits of $1.16 billion as of March 31, 2024.
What was the net interest margin for F&M Bank Corp. in the first quarter of 2024?
The net interest margin for F&M Bank Corp. decreased slightly to 2.64% on a linked quarter basis in the first quarter of 2024.
What dividend did F&M Bank Corp. declare for the first quarter of 2024?
F&M Bank Corp. declared a first quarter dividend of $0.26 per share to common shareholders, offering a 6.75% yield.
