F & M Bank Corp. · OTC:FMBM
F & M Bank — Investor Presentation (October 2016)
23 slides from F & M Bank's investor presentation, Oct 26, 2016
Slide 1: F&M Bank Corp.
F&M Bank Corp. BESTS9O (NTI Viu
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements Fa oak Corp This presertation conan pcjetons,pedctons, expectations and ether atemeys with respect to the Company ad ks sbdres a o bee fare evet, ale ess hae based on erent execs estimates Be tor snr tng dyad he mas ech ‘Beet ton ad anew uncer, aneeacrs c
Slide 3: Executive Management Team
Executive Management Team ‘Thomas “Tom” L. Cline, Chairman of the Board ‘Trucking industry for 40+ years, Public accounting 6+ years, lifetime farmer Dean Withers, President/CEO CEO since 2004, with 38+ years in financial services industry Carrie Comer, SVP/Chief Financial Officer CFO since 2013, wi
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 a Leading. progressive independent bank in the Shenandoah Valley ~ serving small to medium sie businesses with diverse revenue Steams
Slide 5: Industry Recognition and Accolades
Industry Recognition and Accolades = Named one of 2016 Best 50 on the OTCQX. = Ranked 138th of top 200 banks in US for 3 year average ROE — American Banker Magazine, April 2016 = Ranked 3rd of top 50 US loan producers by IB Magazine — July 2016 = Recognized as a top 50 US bank for social media effor
Slide 6: Franchise Footprint — Shenandoah Valley
Franchise Footprint — Shenandoah Valley Ql 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 + Strategically
Slide 7: Market Overview — Shenandoah Valley
Market Overview — Shenandoah Valley 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 Madison Universit
Slide 8: Recent Company Timeline
Recent Company Timeline Creating Shareholder Value Through Disciplined Growth $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 suse Lbh 2012 2013 2014 > 2015 9/30/2016 (Annualized) $25.00 $20.00 $15.00 $10.00 $5.00 $0.00
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Total Asset $552,788 $605,308 $665,150 $745,292 Total Gross Loans Held for Investment $478,453 $518,202 $544,053 $578,089 Total Gross Loans Held for Sale $3,804 $13,382 $57,806 $83,164 Total Deposits $464,149 $491,505 $494,670 $527,824 Loans Held for investment/Deposits 103.
Slide 10: Asset Quality Highlights
Asset Quality Highlights . 5 " NPA/Asset NCOs/Avg Loans Held for Investment* Reserves/Loans Held for Investment Reserves/NPAs NPL/Assets 2.28% 66% 1.71% 53.8% 2.28% 1.73% 34% 1.68% 83.2% 1.15% 1.34% 05% 1.61% 101.5% 98% 1.12% 29% 1.31% = 90.5% 83% * Annualized
Slide 11: Core Earnings Highlights
Core Earnings Highlights Net Income Core pre-tax, pre-provision earnings Return on average assets Return on average equity Return on average TCE Net Interest Margin Efficiency Ratio Earnings per Share * Annualized $4,716 $9,650 0.84% 9.11% 9.36% 4.02% 58.20% $1.88 $5,801 $10,390 1.00% 8.65% 9.48% 4.
Slide 12: Key Ratios
Key Ratios etal ROAA ROATCE = re ee eee ma 2eis epornne enorme men sae me oaree EFFICIENCY RATIO. 2
Slide 13: Loan Portfolio
Loan Portfolio Loan Held for Investment Mix: $578.1 million at 9/30/16 > 1-4 family comprises the largest concentration at 29% > Total real estate exposure is 82%; but only 13% construction and development > Consumer is the fastest growing category > Owner-occupied CRE saree stanton, +a ce ot and C&
Slide 14: Loan Portfolio Detail
Loan Portfolio Detail Gp ($000s) 201320142015 9/30/16 cao 68512 67,180 69,759 77,478 Agriculture 1319712507 13,378 12,697 HELOC 57,586 61,576 65,734 66,627 1-4Family 154,628 162,249 166,587 168,911 Multifamily 11797 1775 7,558 «6,929 road Owner-Occupied CRE 58,704 59,689 58.870 69,262 Non-Owner Occ.
Slide 15: Dealer Finance Division
Dealer Finance Division saben ———————————————==—=—=_—= DEALER STATISTICS. 4,940,000 70,000,000 4,440,000 60,000,000 3,940,000 3,440,000 50,000,000 2,940,000 0,000,000 2,440,000 1,940,000 30,000,000 1,440,000 20,000,000 940,000 10,000,000 440,000 (60,000) 2013 2014 MEEEIGross Income Net Income 15
Slide 16: Dealer Finance Division
Dealer Finance Division Gp Average National Delinquency Days Deingent 2° Quarter 2015 3°¢ Quarter 2015 4 Quarter 2015, 1 Quarter 2016 2° Quarter 2016
Slide 17: Nonperforming & Adversely Classified Assets
Nonperforming & Adversely Classified Assets Gp Historical Nonperforming Assets ($ Millions) $26 379 $66 $55 ste sis 326 i saa 328 ae 2013 2s ras erons opsons Nonpettorming Loans OREO Repos > Total NPAs were $8.5 million at 9/30/16 > Classified assets have decreased by $34.5 million for an NPA/Assets
Slide 18: Funding Overview - Deposit Composition
Funding Overview - Deposit Composition Gp DEPOSIT MIX 9/30/16 Non Int. Bearing = NOW & Other Trans, » MMDA & Sav 1 Reta CDs ‘= Jumbo cos > The Deposit mix is desirable, with a deposit cost of 63 basis points at 9/30/16 > Non Interest Bearing deposits represent 28% of total deposits and are the faste
Slide 19: Deposit Composition
Deposit Composition Non Interest Bearing $92,397 $112,198 $134,787 $145,832 NOW & Other Trans. $92,562 $93,693 $81,492 $88,946 MMDA & Sav $83,186 $90,149 $117,351 $134,930 Retail CDs $126,330 $115,651 $107,415 $107,058 Jumbo CDs $69,674 $79,813 $53,625 $51,058 | Total Deposits __ $464,149 $491,504 $
Slide 20: Strategic Focus
STRATEGIC FOCUS G2 Strong growth and franchise expansion opportunities exist Augusta County ~ expansion to the south + With recent merger activity ~a large community bank void exists in this market and FMBM is experiencing increased activity as a result + Two full service branches opened in 2015, on
Slide 21: WHY F&M Bank Corp?
WHY F&M Bank Corp? Further development of a profitable franchise FMBM js already a highly profitable institution ~ ‘growth in the franchise increases tangible book value and earnings per share Shenandoah Valley is a liquid deposit market and FIMBM continues to replace time deposits with lower costin
Slide 22: Board of Directors
Board of Directors Thomas. Cline Ellen R. Fitzwater '* Vice 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. Harshman ‘+ May
Slide 23: F&M Bank Corp.
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