F&M Bank Corp 8-K, filed Jan 28, 2021
F&M Bank Corp (FMBM)
8-K
2021-01-28
For: 2021-01-28
View Original
Added on
April 06, 2026
About this 8-K
F&M Bank Corp filed this 8-K on January 28, 2021.
Items reported
- Item 2.01: Completed an acquisition or sale of assets
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event
reported): January 28,
2021
___________
(Exact
name of registrant as specified in its charter)
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(State or other
jurisdiction
of
incorporation)
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(Commission File
Number)
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(IRS
Employer
Identification
No.)
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(Address of
principal executive offices)
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(Zip
Code)
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Registrant’s telephone number, including
area code: (540) 896-8941
Not Applicable
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
Securities
registered pursuant to Section 12(b) of the Act:
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Title of each
class
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Trading
Symbol(s)
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Name of each
exchange
on which
registered
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None
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Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2
of the Securities Exchange Act of 1934.
Emerging growth company
☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ☐
Item 2.02.
Results of Operations and Financial Condition.
On
January 28, 2021, F & M Bank Corp. (the “Company”)
issued a press release announcing results for the quarter and year
ended December 31, 2020 and fourth quarter dividend. A copy of the
press release is attached as Exhibit 99.1.
The information in this Form 8-K, and the exhibit hereto, is being
furnished and shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended,
nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such
filing.
Item 9.01.
Financial Statements and Exhibits.
(d)
Exhibits.
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Exhibit
No.
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Description
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Press release
dated January 28, 2021.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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F & M Bank Corp.
(Registrant)
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Date:
January 28, 2021
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By:
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/s/
Carrie A. Comer
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Carrie A. Comer
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Executive
Vice President and Chief Financial Officer
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EXHIBIT
INDEX
Exhibit 99.1
F & M Bank Corp.---News and Financials
F & M BANK CORP. ANNOUNCES FOURTH QUARTER EARNINGS AND
DIVIDEND
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CONTACT:
Carrie Comer, EVP/Chief Financial Officer
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540-896-1705 or
ccomer@fmbankva.com
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TIMBERVILLE,
VA—January 28, 2021—F & M Bank Corp. (OTCQX: FMBM),
parent company of Farmers & Merchants Bank, announces its
financial results for the fourth quarter and year ending December
31, 2020 and fourth quarter dividend to shareholders.
As
the global pandemic continues, the company continually assesses our
procedures to maintain the safety of our customers, employees and
community while serving their financial needs. Farmers &
Merchants Bank continues to operate our branches in a drive-thru
only capacity daily, with courier pick up and by appointment lobby
transactions.
CARES ACT & Paycheck Protection Program
(“PPP”)
During
2020, the Company processed 717 Paycheck Protection Program (PPP)
loans which totaled $62.7 million. In addition to an insignificant
amount of PPP loan pay offs, the Company processed $27.8 million of
loan forgiveness on 266 loans resulting in a remaining balance of
PPP loans of $34.9 million. The Company began accepting
applications on January 15, 2021 for additional PPP loans pursuant
to the Consolidated Appropriations Act, 2021.
In
addition, we have processed 1,223 individual loan deferrals. As of
December 31, 2020, 198 loans remain in deferral with a balance of
$14.6 million which represents 2.3% of loans outstanding exclusive
of PPP balances.
Winchester Loan Production Office (LPO) & Expansion into
Waynesboro Virginia
The
Company has opened a loan production office in the Winchester, VA
market in the first quarter of 2021. Mike Wilkerson has joined
F&M to lead an experienced team of bankers as we enter a very
strong and growing economy in the Northern Shenandoah Valley. In
addition, on January 27, 2021, F&M announced we entered into a
purchase and assumption agreement with Carter Bankshares, Inc. for
a banking office in the City of Waynesboro, Virginia. Expanding
into the Waynesboro market was a strategic initiative of F&M
Bank given the market opportunity and to better serve our existing
client base in the Shenandoah Valley.
Selected financial highlights for the quarter and year to date
include:
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Net
income of $2.77 million and $8.79 million,
respectively.
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Net
interest margin of 3.81% and 3.61%, respectively.
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Total
deposits increased $25.0 million and $176.9 million, respectively
for the quarter and for the trailing 12 months.
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Total
loans increased $16.5 million and $23.0million, respectively for
the quarter and for the trailing 12 months (excluding PPP
loans).
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Nonperforming
assets decreased to 0.68% of total assets at the end of the quarter
from 0.89% on 12/31/19, after a slight increase in the fourth
quarter from 0.44% at 9/30/20.
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Allowance
for loan losses totaled 1.58% of loans held for investment (1.67%
excluding PPP loans).
Mark Hanna, President, commented
“We
are pleased to announce fourth quarter and year-to-date earnings of
$2.77 million and $8.79 million respectively. Recognition of fees
earned on PPP loans forgiven and credit quality improvements that
resulted in no provision for loan losses in the fourth quarter,
spurred the performance in the fourth quarter. Exceptional years in
our mortgage and title companies, as well as well as our ability to
maintain similar net interest income to 2019 have driven the
year-to-date results. Our net interest margin of 3.61% shows a
historical decline but remains strong especially given the changes
in our balance sheet and the current rate environment.
F&M’s liquidity has increased significantly over the last
four quarters and we are implementing strategic solutions to
leverage these assets including deploying $99.9 million into the
investment portfolio since year end 2019. Despite the current
low-rate environment, these strategies should augment our net
interest margin in the future.”
Mr. Hanna stated, “Nonperforming assets
have continued to improve, decreasing $680 thousand since year end
2019. We feel these efforts put F&M in a strong position to
manage the current economic uncertainty while seeking opportunities
for continued growth in the communities we
serve.”
Mr. Hanna continued, “As we kick off the New
Year, we are excited about the opportunities in our new markets of
Winchester and Waynesboro Virginia. Mike Wilkerson and his team add
experience and energy in a strong Winchester market in the Northern
Shenandoah Valley and expanding into the Waynesboro market provides
additional market opportunity and better service to our existing
customers.”
On
January 21, 2021 our Board of Directors declared a third quarter
dividend of $.26 per share to common shareholders. Based on our
most recent trade price of $23.75 per share this constitutes a
4.38% yield on an annualized basis. The dividend will be paid on
March 1, 2021, to shareholders of record as of February 14,
2021.”
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 eleven
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, 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
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2020
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2019
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Q4
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Q3
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Q2
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Q1
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YTD
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YTD
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Net
Income (000's)
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$2,766
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$2,207
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$2,626
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$1,189
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$8,788
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$4,509
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Net
Income available to Common
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$2,700
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$2,142
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$2,560
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$1,123
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$8,525
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$4,194
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Earnings
per common share - basic
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$0.84
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$0.67
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$0.80
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$0.35
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$2.66
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$1.32
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Earnings
per common share - diluted
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$2.56
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$1.30
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Return
on Average Assets
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1.12%
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0.88%
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1.17%
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0.58%
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0.99%
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0.57%
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Return
on Average Equity
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11.75%
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9.44%
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11.50%
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5.23%
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9.39%
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4.93%
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Dividend
Payout Ratio excluding Special Dividend
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30.95%
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38.81%
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32.50%
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74.29%
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39.10%
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77.27%
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Net
Interest Margin
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3.81%
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3.60%
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3.75%
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3.97%
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3.61%
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4.33%
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Yield
on Average Earning Assets
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4.77%
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4.31%
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4.52%
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4.88%
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4.27%
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5.27%
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Yield
on Average Interest Bearing Liabilities
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1.33%
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0.99%
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1.09%
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1.27%
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0.94%
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1.30%
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Net
Interest Spread
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3.44%
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3.32%
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3.43%
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3.61%
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3.33%
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3.97%
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Provision
for Loan Losses (000's)
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$-
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$1,000
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$800
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$1,500
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$3,300
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$7,405
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Net
Charge-offs
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$351
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$208
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$203
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$453
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$1,215
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$4,255
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Net
Charge-offs as a % of Loans
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0.21%
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0.12%
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0.12%
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0.30%
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0.18%
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0.71%
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Non-Performing
Loans (000's)
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$6,537
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$4,254
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$4,465
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$4,168
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$6,537
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$5,728
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Non-Performing
Loans to Total Assets
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0.68%
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0.42%
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0.45%
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0.50%
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0.68%
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0.70%
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Non-Performing
Assets (000's)
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$6,537
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$4,420
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$5,625
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$5,504
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$6,537
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$7,217
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Non-Performing
Assets to Assets
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0.68%
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0.44%
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0.57%
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0.66%
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0.68%
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0.89%
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Efficiency
Ratio
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69.10%
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65.35%
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65.33%
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70.51%
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67.51%
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69.03%
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(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 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
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INCOME
STATEMENT
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Unaudited
2020
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Audited
2019
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Interest and
Dividend Income
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$36,792,403
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$38,210,304
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Interest
Expense
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5,728,482
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6,818,488
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Net Interest
Income
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31,063,921
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31,391,816
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Non-Interest
Income
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12,190,916
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9,919,954
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Provision for Loan
Losses
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3,300,000
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7,405,000
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Impairment of long
lived assets
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19,193
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-
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Other Non-Interest
Expenses
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29,938,920
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29,517,995
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Income Before
Income Taxes
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10,035,110
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4,388,775
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Provision for
Income Taxes
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1,141,742
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(250,304)
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Less Minority
Interest (income)/loss
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(105,193)
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(130,276)
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Net
Income
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$8,788,175
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$4,508,803
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Dividend on
preferred stock
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262,642
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314,589
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Net Income
available to common shareholders
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$8,525,533
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$4,194,214
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Average Common
Shares Outstanding
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3,199,883
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3,189,288
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Net
Income Per Common Share
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2.66
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1.32
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Dividends
Declared
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1.04
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1.02
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BALANCE
SHEET
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Unaudited
December 31,
2020
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Audited
December 31,
2019
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Cash and Due from
Banks
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$11,181,164
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$8,118,889
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Interest Bearing
Bank Deposits
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1,243,519
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1,125,616
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Federal Funds
Sold
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65,983,000
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66,559,096
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Loans Held for
Sale
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58,753,055
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66,798,436
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Loans Held for
Investment
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661,328,888
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603,425,471
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Less
Allowance for Loan Losses
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(10,474,960)
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(8,389,846)
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Net
Loans Held for Investment
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650,853,928
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595,035,625
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Securities
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117,897,486
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18,015,488
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Other
Assets
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61,018,331
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58,345,513
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Total
Assets
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$966,930,483
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$813,998,663
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Deposits
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$818,581,503
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$641,709,480
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Short Term
Debt
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-
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10,000,000
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Long Term
Debt
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33,201,631
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53,200,675
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Other
Liabilities
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19,517,664
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17,513,319
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Total
Liabilities
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871,300,798
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722,423,474
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Preferred
Stock
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4,558,298
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4,591,623
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Common
Equity
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91,071,387
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86,983,566
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Stockholders’
Equity
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95,629,685
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91,575,189
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Total
Liabilities and Stockholders’ Equity
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$966,930,483
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$813,998,663
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Book Value Per
Common Share
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$28.43
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$27.11
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Tangible Book Value
Per Common Share
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$28.42
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$26.95
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SOURCE:
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F
& M Bank Corp.
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CONTACT:
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Carrie
Comer EVP/Chief Financial Officer
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540-896-1705 or ccomer@fmbankva.com
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