TIMBERVILLE, VA -- (Marketwired) -- 04/24/13 -- F & M Bank Corp. (OTCQB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the first quarter and it's recently declared first quarter dividend.
Selected Financial Highlights: 2013 Q1 2012 Q1 2012 Q4 ----------- ----------- -----------Net Income (000's) $ 1,216 $ 1,135 $ 1,244Earnings per share 0.49 0.46 0.49Net Interest Margin 3.98% 3.88% 4.03%Allowance for loan losses 1.77% 1.62% 1.75%Provision for loan losses (000's) $ 900 $ 900 $ 1,500Non-Performing Loans (000's) $ 11,685 $ 17,704 $ 13,386Equity to Assets 8.86% 8.42% 8.27%Efficiency Ratio 57.74% 56.11% 50.82%
Dean Withers, President and CEO, commented, "We're pleased to announce that our first quarter earnings for 2013 total $1.216 million, which is a 7.14% increase over the first quarter 2012. Our core earnings continue to benefit from improving net interest income, which increased $324,000 in the first quarter of 2013." Withers continued, "During the first quarter of 2013, our cost of funds declined $418,000 when compared to the prior year. We continue to see incremental benefits from rate reductions we have enacted on various deposit products. Our costs of FHLB borrowings has declined significantly as our borrowings continue to re-price at significantly lower rates. We have also reduced our reliance on FHLB borrowings as a result of strong deposit growth."
Withers stated, "Non-performing loans at $11.68 million decreased $1.70 million compared to year end 2012 and $6.02 million compared to the first quarter 2012. The majority of the risk in our loan portfolio continues to be associated with real estate development lending. While there has been increasing real estate sales and price stabilization, it is not uniform across all markets and price points. As such, we continue our efforts to increase our loan loss reserves via funding levels that exceed actual losses." Withers continued, "On April 23, 2013, our Board of Directors declared a first quarter dividend of $0.17 per share. Based on our most recent trade price of $17.75 per share, this dividend constitutes a 3.83% yield on an annualized basis. The dividend will be paid on May 15, 2013, to shareholders of record as of May 3, 2013." 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.