F & M Bank Corp. · OTC:FMBM
F & M Bank — Shareholder Meeting (May 2022)
25 slides from F & M Bank's shareholder meeting presentation, May 26, 2022
Slide 1: 2022 Annual Meeting
2022 ANNUAL MEETING F&M Bank Corp.
Slide 2: 2022 Annual Meeting Agenda
2022 ANNUAL MEETING AGENDA Call to order by Chairman Mike Pugh Appointment of three inspectors to determine whether proxies are in proper form and whether a quorum is represented. Garth Knight, Stephanie Shillingburg and Candy Barkley Report of Proxy Committee from Garth Knight Polls closed Recogniz
Slide 3: Board of Directors
BOARD OF DIRECTORS Pictured left to right (back to front): Mike Pugh, Chris Runion, Dan Harshman, John Willingham, Peter Wray, Larry Caplinger, Ray Burkholder, Daphyne Thomas, Anne Keeler, Hannah Hutman, Mark Hanna, Dean Withers
Slide 4: Executive Team
EXECUTIVE TEAM dm A sim do Balen mies Carrie Comer Garth Knight alia Stephanie Shillingburg cstv Vee President & Cie i Cit mcr Vice President & Chi tor idea Pda EGE Operene Creer aire Choe Experience Ofene ‘Mark Hanna Melody Emswiler like Wilkerson Eberly Prescot & Chet Execute Oncor Eseauive Vin Pr
Slide 5: Community Advisory Boards
COMMUNITY ADVISORY BOARDS Augusta Harrisonburg Agriculture Mortgage Winchester County Rockingham Frederick Angie Whitesell Abbey Dobes Beth Bazzle Alisa Eberly Erik Beatley Carolyn Bragg Adam Shifflett Buff Showalter Gary Crummett Hal Duff Dickie Bell ‘Andy Myers Doug Berry Jeremy Litwiller Jeanne M
Slide 6: Return on Average Assets and Tangible Common Equity
RETURN ON AVERAGE ASSETS (ROAA) RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) ‘Annualized income 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 1.17% 2017 9.89% 2017 1.15% 0.95% 0.57% 2018 2019 2020 9.67% 9.46% | 4.93%. 2018 2019 2020
Slide 7: Earnings Per Share and Tangible Book Value Per Share
EARNINGS PER SHARE (EPS) annualized income TANGIBLE BOOK VALUE PER SHARE ‘** 2021 and 2022 reflect actual TBVPS and TBVPS net of unrealized security losses. $5.00 $450 $4.00 $350 $3.00 $250 $2.00 $150 $1.00 $050 $0.00 $35.00 $30.00 $25.00 $20.00 $2.68 2017 $25.85 2018 $26.69 2018 2019 $26.95 2019 $2
Slide 8: Net Income
NET INCOME (00's) 12,000 10,000 8,762 2017 Net Income $10,738 $8,823 $8,788 $4,509 l] $2,528 2018 2019 2020 2021 1022
Slide 9: Noninterest Income
NONINTEREST INCOME Mortgage, Wealth Management & Other Services (Thousands) Noninterest income 14,000 $13,103 $12,167 32,000 $10,759 $9,932 10,000 8517 $8,770 8,000 6,000 4,000 2,000 0 2017 2018 2019 2020 2021 1Q22* ‘Annualized income
Slide 10: PPP Loan Update
PPP Round 1 PPP Round 2 Total PPP LOAN UPDATE Loans Loans Loans Originated Originated Forgiven Remaining # $ s $ 717 $63,242,381 $62,500,481 $741,899 363 $23,818,504 $22,499,762 $1,318,742 1,080 $87,060,885 $85,000,243 $2,060,641 10
Slide 11: AFS Investment Portfolio Unrealized Gain/Loss
500,000 450,000 400,000 350,000 300,000 250,000 200,000 100,000 50,000 AFS INVESTMENT PORTFOLIO UNREALIZED GAIN/LOSS —te8y- 8391 8360 — aig 2'19 5,332 0319 4366 a4'19 171,703 107,083 106,899 81,084 7278 | = 1'20 @2'20 a3'20 04'20 aL'at mE AFS Investments ——=Unreallzed gain/loss 188,654 2 3 ‘21 as'21
Slide 12: AFS Investments
AFS INVESTMENTS MARCH 31, 2022 Corporates, $29,775 US Treasuries, $47,349, Municipals, $36,533 Agencies, $158,499 Mortgage Backed Securites, $188,209
Slide 13: Total Deposits
TOTAL DEPOSITS (SMILLIONS) 1.150 $1,112 1,100 $1,080 $607 $61 coo $574 $574 $573 $528 S597 Q4'17 Q1'18 218 Q3'18 Q4'18 QI'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Qi'21 Q2'21 Q3'21 Q4'21 QI'22 13
Slide 14: Deposit Growth
DEPOSIT GROWTH 35.00% 30.00% 25.00% F&M Bank’s deposit growth is significantly 20.00% more than the average FDIC-insured financial 15.00% institution and far exceeds the average growth of 10.00% other community banks. 5.00% om ea 2019 2020 2021 & Community Banks growth FDIC deposit growth F&M growth
Slide 15: Deposit Mix March 31, 2022
DEPOSIT MIX MARCH 31, 2022 Total Deposits (in thousands): $1,112,294 Noninterest bearing demand, 27% $298,676 CDs, 11% $120,666 Money market & Savings, 45% $504,611 Interest bearing demand, 17% $188,342
Slide 16: Loan Types March 31, 2022
LOAN TYPES MARCH 31, 2022 Total Loans(in thousands) $659,561 C&D, 11% Consumer & _ other,18% /Ariculture, 10% PPP, 0% ~_HELoc, 8% Non-Owner Occ. _\ CRE, 13% 1-4 Family, 21% Owner-Occu: pid” CRE, 11% Multifamily, 1% 16
Slide 17: Loan Growth
40,000 30,000 20,000 10,000 (10,000) (20,000) (30,000) (40,000) 2017 LOAN GROWTH (in thousands) Growth 5.1% 2020 to 2021 al d i | l , | I° 20 20 [ 2018 Commercial mAgriculture ml ConsumerReal£Estate l™ Consumer other 17
Slide 18: Loan/Deposit Ratio
LOAN/DEPOSIT RATIO Loan/Deposit Ratio 111.53% 109.52% 109.81% 110.00% 102.17% 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 1Q18 2018 3018 4Q18 2019 3Q19 4Q19 1020 2020 3Q20 4Q20 1021 2Q21 3Q21 4021 1022 18
Slide 19: Market Opportunity
MARKET OPPORTUNITY FDIC Deposit Market Share 2021 Existing Markets $4.26 Billion Total FDIC Deposits $8.20 Billion $1.21 Billion $2.09 Billion $1.14 Billion $918 Million $482 Million $2.09 Billion $914 Million Q ranikscc 9 tem nocntenotce $595 Million O rarinorsnec ore @ vsmeomnie
Slide 20: NPAs & ALLL Coverage
NPAs & ALLL COVERAGE 1.60 0.60 Hh atoans NPAs 2.21 2.23 172 162 164 169 ars 1.64 1.54 140 138 Ae ee Aas ee 1.18 11a 1.12 1.12 i 8 7 0 6 is i 9 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2"19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 QI'21 Q2'21 Q3'21 Q4'21 QI'22
Slide 21: NPAs Trend
NPAs TREND % 2.60 2.40 2.20 2.00 1.80 1.60 140 1.20 1.00 0.80 0.60 0.40 0.20 2.21 2.23 1.62 1,301: 1 0. | 1 | 04°17 Q1'18 Q2'18 3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 QI'20 Q2'20 Q3'20 Q4'20 QI'21 Q2'21 Q3'21 Q4'21 Q1'22 NPAs / Assets 21
Slide 22: Days Delinquency % of Total Loans
30 - 89 DAYS DELINQUENCY % AS A % OF TOTAL LOANS (includes Indirect Dealer Finance) % ee EE Q4°17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2"19 Q3'19 Q4"19 QI'20 Q2'20 Q3'20 Q4'20 QI'21 Q2'21 Q3'21 Q4'21 QI'22 30-89 Delinquency / Loans HFI
Slide 23: Loan Pricing Index
LOAN PRICING INDEX (amounts in thousands) 69% of the portfolio consist of variable pricing or adjustable- rate pricing Loans indexed to SOFR & Prime reprice immediately Loans indexed to Treasuries reprice timing depends on origination date We estimate 20% of the fixed rate loans will turn over each
Slide 24: Loan Portfolio Reprice Timing
LOAN PORTFOLIO REPRICE TIMING Millions $700 Loan Portfolio $662 million 00 69% $0 63% Reorce Reprce = Faied } ads = caze4 S465 Oe i ga0s0 $4182 $400 = g3s27 9229 $331.6 ‘gm $287.1 $200 $240.6 $288.4 _. $225.3 $206.0 $200 $185.3 . | Ll o> = = SBS Se eS eS SS SS 122 Q2'22 B22 A422 A123 Q2"2B_ B'S QH2I
Slide 25: Thank You!
THANK YOU! F & M Bank Corp. 205 South Main Street P.O. Box 1111 Timberville, VA 22853-9521 (540) 896-8941 Investor Relations Contact Carrie Comer [email protected] 25 Transfer Agent Broadridge Corporate Issuer Solutions P.O. Box 1342 Brentwood, NY 11717 Toll Free: 844-318-0135 Fax: 215-553-5402 Mo