F & M Bank Corp. · OTC:FMBM
F & M Bank — Investor Presentation (June 2017)
23 slides from F & M Bank's investor presentation, Jun 29, 2017
Slide 1: F&M Bank Corp. Financial data as of March 31, 2017
F&M Bank Corp. Financial data as of March 31, 2017
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements a) F&M Bank Corp. This presentation contains projections, predictions, expectations, and other statements with respect to the Company and its subsidiaries as to beliefs, future events, and/or results that are based on current expectations, estimates, and
Slide 3: Executive Management Team
Executive Management Team Gap F&M Bank Corp. Ellen R. Fitzwater, Chair of the Board Partner/Financial Manager of F&R Leasing, LLC for 30+ years and 33+ years experience in corporate entities Dean Withers, President/CEO CEO since 2004, with 38+ years in financial services industry Carrie Comer, SVP/C
Slide 4: A Community Focused Institution
A Community Focused Institution “Community Banking at its Finest” Chartered in 1908, Farmers & Merchants Bank has served its local communities for more than 100 years aQ Q Q Leading, progressive independent bank in the Shenandoah Valley — serving small to medium size businesses with diverse revenue
Slide 5: Industry Recognition and Accolades
Industry Recognition and Accolades Gap F&M Bank Corp. = Ranked 104th of top 200 banks in US for 3 year average ROE — American Banker Magazine, April 2017 = Named one of 2016 Best 50 on the OTCQX. = Ranked 3rd of top 50 US loan producers by IB Magazine — July 2016 = Recognized as a top 50 US bank for
Slide 6: Franchise Footprint — Shenandoah Valley
Franchise Footprint — Shenandoah Valley <2 F&M Bank C QC) FMBM is headquartered within the Shenandoah Valley Region of Virginia: «= FMBM’s operating market falls within the central part of the Shenandoah Valley * 4-county franchise: Rockingham, Shenandoah, Page and Augusta and 3 independent cities =
Slide 7: Market Overview — Shenandoah Valley
Market Overview — Shenandoah Valley Ga F&M Bank Corp. Q) Predominately rural area with a diverse economy based on manufacturing, agriculture and education «Major industries include advanced food manufacturing, farming, retail trade, government, education and health care « Top employers include James
Slide 8: Recent Company Timeline: Creating Shareholder Value Through Disciplined Growth
Recent Company Timeline i) F&M Bank Corp. Creating Shareholder Value Through Disciplined Growth $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 1Q17 is annualized $1.88 $1.82 2013 2014 (Bearings Per Share $2.40 0.73 > 3%) anne > us dividend 5 anaes $24.50 $2.77 $2.74 0.80 0.88. 2016 1Q17 2015 (MDividends Per Sh
Slide 9: Earnings Highlights
Earnings Highlights a) F&M Bank Corp. Net Income $5,801 $8,417 $9,567 $9,380 Core pre-tax, pre-provision earnings $10,390 $11,768 $12,860 $12,780 Return on average assets 1.00% 1.31% 1.34% 1.29% Return on average equity 8.65% 10.46% 11.18% 10.84% Return on average TCE 9.48% 11.25% 12.59% 11.80% Net
Slide 10: Key Ratios
Key Ratios ) F&M Bank Corp. ROAA ROATCE me 1.34 waa 11.98 11,92 1.31 z e : E 11.80 1.40 1.29 aw 1.20 1.00 10.00 9.48 1.00 8.00 0.80 0.60 6.00 0.40 4.00 0.20 2.00 0.00 0.00 2014 2015 2016 1017 2014 2015 2016 1017 ROAA ROATCE mmm F&M Bank ——=Peer Median ——Peer Top 20% WMMEF&M Bank ==——=Peer Median Pee
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights Ga F&M Bank Corp. Total Asset $605,308 $665,150 $744,889 $714,886 Total Gross Loans Held for Investment $518,202 $544,053 $591,636 $591,006 Total Gross Loans Held for Sale $13,382 $57,806 $62,735 $37,698 Total Deposits $491,505 $494,670 $537,085 $536,560 | i Loans Held for I
Slide 12: Asset Quality Highlights
Asset Quality Highlights am) F&M Bank Corp. NPA/Asset NCOs/Avg Loans Held for Investment Reserves/Loans Held for Investment Reserves/NPAs NPL/Assets *Annualized 1.73% 34% 1.68% 83.2% 1.15% 1.34% .05% 1.61% 101.5% 98% 94% 22% 1.27% 107.7% 65% 1.00% .15%* 1.24% 101.9% 71% 12 1118 0 om
Slide 13: Loan Portfolio
Loan Portfolio Gap F&M Bank Corp. Loan Held for Investment Mix: $591.0 million at 3/31/17 > 1-4 family comprises the largest concentration at 29% > Total real estate exposure is 81%; but only 12% construction and development >» Consumer is the fastest growing category 1%_ > Owner-occupied CRE and C&
Slide 14: Loan Portfolio Detail
Loan Portfolio Detail ($000s) 2014 2015 2016 Gp F&M Bank Corp. $i 67,180 ; : Agriculture 12,507 HELOC 61,576 1-4 Family 162,249 Multifamily 11,775 Owner-Occupied CRE 59,689 Non-Owner Occ. CRE 62,617 C&l 28,161 Consumer & other 52,448 69,759 13,378 65,734 166,587 7,558 58,870 69,162 27,955 76,172 12,
Slide 15: Dealer Finance Division
Dealer Finance Division 4,940,000 80,000,000 4,44 4,440,000 70,000,000 3,940,000 60,000,000 3,440,000 2,940,000 50,000,000 2,440,000 40,000,000 B 1,940,000 30,000,000 1,440,000 20,000,000 940,000 440,000 10,000,000 2014 2015 1Q17* MEEEGross income mM Net Income Loan Balance (Right Axis)
Slide 16: Dealer Finance Division
Dealer Finance Division Ga F&M Bank Corp. Average National Delinquency (Trans Union) > 60 Days Delinquent National Average Virginia AVG F&M Bank Dealer ion 97% 1st Quarter 2016 1.12% .89% 2°4 Quarter 2016 ° ? .67% 34 Quarter 2016 1.33% 1.12% 49% 4‘ Quarter 2016 1.44% 1.24% .58% 1st Quarter 2017 1.30
Slide 17: Nonperforming & Adversely Classified Assets
Nonperforming & Adversely Classified Assets Gap F&M Bank Corp. Historical Nonperforming Assets (S Millions) $7.0 566 $4.9 oa $3.6 [| $2.4 $2.1 $2.1 2014 2015 2016 1017 ™Nonperforming Loans ™ OREO & Repos > Total NPAs were $7.3 million at 3/31/17 > Classified assets have decreased by $37.0 million fo
Slide 18: Funding Overview - Deposit Composition
Funding Overview - Deposit Composition Gap F&M Bank Corp. DEPOSIT MIX 3/31/17 %. M4 hs 3 — L >» The Deposit mix is desirable, with a deposit cost of 47 basis points at 3/31/17 > Non Interest Bearing deposits represent 27% of total deposits and are the fastest growing category. This is a stable sourc
Slide 19: Deposit Composition
Deposit Composition Ga F&M Bank Corp. Non Interest Bearing $ 112,198 $134,787 $146,617 $147,154 NOW & Other Trans. S$ 93,693 $ 81,492 $ 92,872 $ 92,583 MMDA & Savings $ 90,149 S$ 117,351$ 140,368 $ 141,857 Retail CDs $ 115,651 $ 107,415 $ 106,359 $ 104,891 Jumbo CDs $ 79,813 $ 53,625 $ 50,869 $ 50,0
Slide 20: Strategic Focus
Gp F&M Bank Corp. STRATEGIC FOCUS QO) Strong growth and franchise expansion opportunities exist = Augusta County — expansion to the south * Two full service branches opened in 2015, one in the City of Staunton and one in the Town of Craigsville * Myers Corner (Fishersville) branch opened April of 20
Slide 21: Why F&M Bank Corp?
<2 F&M Bank. WHY F&M Bank Corp? Q Further development of a profitable franchise FMBM is a highly profitable institution — growth in the franchise increases tangible book value and earnings per share Shenandoah Valley is a liquid deposit market and FMBM continues to replace time deposits with lower c
Slide 22: Board of Directors
Board of Directors Gap ‘orp. Ellen R. Fitzwater * Chairman of the Board Financial Manager F&R Leasing/Accounting Consultant Larry A. Caplinger * Chief Lending Officer — 40+ year history with the Bank John N. Crist * Attorney — real estate * Chairman of VBS Mortgage Daniel J. Harshman * Mayor of the
Slide 23: < ta
< ta F&M Bank Corp.