Exhibit 99.1
 
F & M Bank Corp.---News and Financials
F & M BANK CORP. ANNOUNCES THIRD QUARTER EARNINGS AND DIVIDEND
 CONTACT:       Neil Hayslett, EVP/Chief Operating Officer 
 540-896-8941 or NHayslett@FMBankVA.com
 
TIMBERVILLE, VA—October 25, 2018 —F & M Bank Corp. (OTCQX: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the quarter ending September 30, 2018.
 
Selected highlights for the quarter and year to date include:
 
Quarterly net income of $2.52 million;
 
Net interest margin of 4.56%, an increase of 8 BPs compared to one year ago;
 
Loans held for investment increased $26.8 million or 4.3% in the last 12 months;
 
Net interest income increased $367 thousand compared to the third quarter 2017;
 
Annualized Return on Average Assets of 1.29% for the third quarter and 1.09% year to date;
.
 
Mark Hanna, President and CEO, commented “We are very pleased to announce third quarter earnings of $2.52 million, which is comparable to the same period last year and an increase of $828 thousand versus the second quarter . Growth in loans held for investment totaled $12.7 million for the third quarter of 2018 and $26.8 million year over year. Our net interest margin at 4.56% remains strong and continues to be driven by our strong loan to asset ratio. Non-performing assets increased marginally versus second quarter and we continue to work closely with our borrowers to rehabilitate several larger problem assets.”
 
Hanna stated, “On October 18, 2018 our Board of Directors declared a third quarter dividend of $.25 per share to common shareholders. Based on our most recent trade price of $34.14 per share this constitutes a 2.93% yield on an annualized basis. The dividend will be paid on November 15, 2018, to shareholders of record as of November 1, 2018.” 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 thirteen 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 (DBA 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 statements following the date of this press release.
 
 
 
 
F&M Bank Corp.
Key Statistics
 
 
 
2018
 
 
2017
 
 
 
Q3
 
 
Q2
 
 
Q1
 
 
YTD
 
 
Q3
 
 
Q2
 
 
Q1
 
 
YTD
 
Net Income (000's)
 $2,515 
 $1,687 
 $1,973 
 $6,175 
 $2,550 
 $2,328 
 $2,345 
 $7,223 
Net Income available to Common
 $2,412 
 $1,583 
 $1,870 
 $5,865 
 $2,447 
 $2,223 
 $2,241 
 $6,911 
Earnings per common share
 $0.75 
 $0.49 
 $0.57 
 $1.81 
 $0.75 
 $0.68 
 $0.68 
 $2.11 
 
    
    
    
    
    
    
    
    
Return on Average Assets
  1.29%
  0.91%
  1.11%
  1.09%
  1.34%
  1.28%
  1.29%
  1.30%
Return on Average Equity
  10.82%
  7.38%
  8.75%
  8.98%
  11.28%
  10.48%
  10.84%
  10.83%
Dividend Payout Ratio exc Special Dividend
  33.49%
  51.37%
  43.53%
  41.50%
  31.91%
  34.07%
  32.12%
  32.67%
Dividend Payout Ratio with Special Dividend
    
    
  78.35%
  52.56%
    
    
    
    
 
    
    
    
    
    
    
    
    
Net Interest Margin
  4.56%
  4.64%
  4.78%
  4.65%
  4.48%
  4.51%
  4.39%
  4.47%
Yield on Average Earning Assets
  5.30%
  5.29%
  5.38%
  5.32%
  5.08%
  5.08%
  4.93%
  5.05%
Yield on Average Interest Bearing Liabilities
  1.04%
  0.94%
  0.87%
  0.95%
  0.85%
  0.78%
  0.77%
  0.82%
Net Interest Spread
  4.26%
  4.35%
  4.51%
  4.37%
  4.23%
  4.30%
  4.16%
  4.23%
 
    
    
    
    
    
    
    
    
Provision for Loan Losses (000's)
 $450 
 $1,350 
 $680 
 $2,480 
    
 $- 
 $- 
 $- 
Net Charge-offs
 $283 
 $660 
 $309 
 $1,252 
 $274 
 $100 
 $227 
 $601 
Net Charge-offs as a % of Loans
  0.18%
  0.42%
  0.20%
  0.26%
  0.18%
  0.07%
  0.15%
  0.13%
Non-Performing Loans (000's)
 $15,240 
 $14,977 
 $7,730 
 $15,240 
 $5,662 
 $5,677 
 $5,091 
 $5,662 
Non-Performing Loans to Total Assets
  1.96%
  1.94%
  1.06%
  1.96%
  0.74%
  0.76%
  0.71%
  0.74%
Non-Performing Assets (000's)
 $17,303 
 $17,011 
 $9,758 
 $17,303 
 $7,810 
 $7,685 
 $7,184 
 $7,810 
Non-Performing Assets to Assets
  2.23%
  2.21%
  1.34%
  2.23%
  1.02%
  1.03%
  1.00%
  1.02%
 
    
    
    
    
    
    
    
    
Efficiency Ratio
  66.71%
  65.80%
  66.52%
  66.35%
  62.12%
  63.67%
  66.85%
  64.13%
 
(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 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.
(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 greater percentage of its income to expenses.
 
 
 
 
 
 
F & M Bank Corp.
Financial Highlights
 
 
 
 
For Nine Months
Ended September 30,
 
INCOME STATEMENT
 
Unaudited
2018
 
 
Unaudited
2017
 
Interest and Dividend Income
 $27,033,431 
 $24,954,457 
Interest Expense
  3,397,582 
  2,861,460 
  Net Interest Income
  23,635,849 
  22,092,997 
Non-Interest Income
  5,878,900 
  5,939,934 
Provision for Loan Losses
  2,480,000 
  - 
Other Non-Interest Expenses
  20,079,656 
  18,125,666 
  Income Before Income Taxes
  6,955,093 
  9,907,265 
Provision for Income Taxes
  790,099 
  2,632,971 
Less Minority Interest income
  (10,065)
  51,643 
Net Income
 $6,175,059 
 $7,222,651 
Dividend on preferred stock
  309,969 
  312,009 
Net Income available to common shareholders
 $5,865,090 
 $6,910,642 
Average Common Shares Outstanding
  3,245,032 
  3,271,863 
Net Income Per Common Share
  1.81 
  2.11 
Dividends Declared
  .95 
  .69 
 
 
BALANCE SHEET
 
Unaudited
September 30, 2018
 
 
Unaudited
September 30, 2017
 
Cash and Due from Banks
 $10,304,924 
 $8,800,422 
Interest Bearing Bank Deposits
  805,332 
  945,395 
Federal Funds Sold
  6,313,000 
  - 
Loans Held for Sale
  38,595,354 
  58,177,450 
Loans Held for Investment
  646,783,590 
  619,959,738 
  Less Allowance for Loan Losses
  (7,272,741)
  (6,941,982)
  Net Loans Held for Investment
  639,510,849 
  613,017,756 
Securities
  22,223,677 
  36,407,258 
Other Assets
  57,852,296 
  46,336,325 
    Total Assets
 $775,605,432 
 $763,684,606 
 
    
    
Deposits
 $588,985,157 
 $562,379,965 
Short Term Debt
  30,000,000 
  42,128,000 
Long Term Debt
  46,326,151 
  50,840,363 
Other Liabilities
  17,633,477 
  17,180,327 
  Total Liabilities
  682,944,785 
  672,528,655 
Preferred Stock
  7,487,873 
  7,528,873 
Common Equity
  85,172,773 
  83,627,078 
Stockholders’ Equity
  92,660,646 
  91,155,951 
    Total Liabilities and Stockholders’ Equity
 $775,605,431 
 $763,684,606 
Book Value Per Common Share
 $26.42 
 $25.58 
Tangible Book Value Per Common Share
 $26.59 
 $25.42 
 
SOURCE:         
F & M Bank Corp.
CONTACT:
Neil Hayslett, EVP/Chief Operating Officer
 
540-896-8941 or NHayslett@FMBankVA.com
 
 

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