F & M Bank Corp. Reports 1st Quarter 2014 Financial Results

Company Release - 4/23/2014 9:06 AM ET

TIMBERVILLE, VA -- (Marketwired) -- 04/23/14 -- F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter and its recently declared first quarter dividend.

Selected Financial Highlights:
                                                2014 Q1   2013 Q1   2013 Q4
                                               --------  --------  --------
Net Income (000's)                             $  1,183$  1,216$  1,184
Earnings per share                                 0.46      0.49      0.46
Net Interest Margin                                4.16%     3.98%     4.07%
Allowance for loan losses                          1.65%     1.77%     1.71%
Provision for loan losses (000's)              $    750$    900$    750
Non-Performing Loans (000's)                   $ 11,050$ 11,685$ 12,581
Equity to Assets                                  11.67%     8.86%     9.79%
Efficiency Ratio                                  60.91%    57.74%    61.89%

Dean Withers, President and CEO, commented, "First quarter earnings for 2014 total $1.183 million, which is virtually unchanged from fourth quarter 2013 and down slightly from the first quarter 2013. We're very pleased that our first quarter earnings are at these levels considering the significant slowdown in mortgage banking activities. Our core earnings continue to benefit from improving net interest margin, which increased to 4.16% in the first quarter." Withers continued, "As previously announced on March 21st we completed a $12 million capital raise that has significantly increased our capital ratios and better positions us to take advantage of growth opportunities within our various markets."

Withers stated, "Non-performing loans at $11.05 million decreased $1.53 million compared to year end 2013 and $.63 million compared to the first quarter 2013. We continue to see progress in our workout plans with several borrowers and we are on pace to meet our 2014 goals for improvement in both our non-performing and criticized asset ratios." Withers continued, "On April 17, 2014, our Board of Directors declared a first quarter dividend of $0.17 per share. Based on our most recent trade price of $18.65 per share, this dividend constitutes a 3.65% yield on an annualized basis. The dividend will be paid on May 12, 2014, to shareholders of record as of April 30, 2014." Highlights of the company's 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.farmersandmerchants.biz 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.

SOURCE: F & M Bank Corp.

                              F & M Bank Corp.
                            Financial Highlights
                                                      For Three Months
                                                       Ended March 31
INCOME STATEMENT                                  Unaudited     Unaudited
                                                     2014          2013
Interest and Dividend Income                     $  6,290,763$  6,599,082
Interest Expense                                      950,231     1,278,129
                                                 ------------  ------------
 Net Interest Income                                5,340,532     5,320,953
Non-Interest Income                                   775,960       894,754
Provision for Loan Losses                             750,000       900,000
Other Non-Interest Expenses                         3,738,198     3,603,453
                                                 ------------  ------------
 Income Before Income Taxes & Securities
  Transactions                                      1,628,294     1,712,254
Securities Gains (Losses)
Provision For Income Taxes                            475,524       468,292
Less Minority Interest income (loss)                  (29,951)       28,386
                                                 ------------  ------------
Net Income                                       $  1,182,721$  1,215,576
Average Shares Outstanding                          2,598,639     2,500,473
Net Income Per Common Share                               .46           .49
Dividends Declared                                        .17           .17



                                                   Unaudited     Unaudited
BALANCE SHEET                                      March 31,     March 31,
                                                     2014          2013
Cash and Due From Banks                          $  7,188,824$  5,845,092
Interest Bearing Bank Deposits                        842,033       978,396
Federal Funds Sold                                 27,988,000    27,244,000
Loans Held for Sale                                 5,577,806    21,130,211
Loans Held for Investment                         486,327,054   465,742,100
 Less Allowance for Loan Losses                    (8,009,279)   (8,259,185)
                                                 ------------  ------------
 Net Loans Held for Investment                    478,317,775   457,482,915
Securities                                         19,391,046    19,090,090
Other Assets                                       33,838,105    34,723,397
                                                 ------------  ------------
 Total Assets                                    $573,143,589$566,494,101

Deposits                                         $471,543,989$458,979,703
Short Term Debt                                     3,696,874     3,172,055
Long Term Debt                                     11,500,000    32,285,714
Subordinated Debt                                  10,191,000    10,191,000

Other Liabilities                                   9,343,704    11,701,655
                                                 ------------  ------------
 Total Liabilities                                506,275,567   516,330,127
Stockholders' Equity                               66,868,022    50,163,974
                                                 ------------  ------------
 Total Liabilities and Stockholders' Equity      $573,143,589$566,494,101
Book Value Per Common Share                      $      20.34$      20.06

CONTACT:
Neil Hayslett
EVP/CFO
Farmers & Merchants Bank
540-896-8941
NHayslett@FMBankVA.com

Source: F & M Bank Corp.