Financial Condition

2018 proved to be a very fruitful year for F & M Bank.  This past year, we grew our assets by over $56 million, much of this attributable to strong loan demand.  Our loan portfolio experienced strong growth of over $73 million in 2018.  Today, we have grown our assets in excess of $598 million throughout our 11 locations with equity and reserves in excess of $77 million.  With this tremendous growth, we were blessed to have record earnings once again in excess of $9.5 million.  On top of the asset growth, we also experienced significant growth amongst our team.  Many succession plans have been implemented, resulting in seamless transitions and promotions.

On a national scale, 2018 most likely proved to be a year where many consumers and businesses saw significant tax cuts.  Those savings were injected back into businesses and the economy which continued to show signs of growth throughout the year.  With GDP growth of 3.4% through the first three quarters, it appears that our economy continues to strengthen.  The Prime Interest Rate rose another full point during 2018 as the Federal Reserve continued to see growth in the overall economy.  The final rate hike in late December could have been argued for or against, but the stock market quickly corrected after the announcement, giving back some significant gains at year-end.  Many analysts have said this was a necessary correction, but only time will tell.

On the Ag side, the headwinds and challenges many farmers experienced in 2017 remained constant in 2018.  Low commodity prices, increased international production of corn and soybeans, along with inconsistent yields, all provided challenges throughout the growing and harvesting seasons.  Trade talks and tariff discussions continue to be monitored with very little decided as the year came to a close.  Until demand finds a way to out pace supply, commodity prices will continue to remain low.  Early signs show another challenging year ahead for farmers and those agricultural businesses.

The team members of F & M Bank continue to be our most important asset.  Without their passion and drive to serve you, our valued clients, F & M Bank would be just like our competition.  Our mission is to “Exceed Client’s Expectations”.  The only way to make this possible is by investing in and providing our team with the necessary tools, education and quality work environment.  We have also made a strategic, cultural decision to challenge one another in 2019, to shift our team’s collective mindset towards one with an outward focus.

2019 promises to be another great year for not only the clients and businesses we serve, but also the F&M Team.  Our relationship with you, our valued clients, will continue to be a top priority of ours.  We certainly appreciate the confidence you have placed in F & M Bank.  Wishing you much prosperity and success in 2019.

Sincerely yours,

Nathaniel W. Dunn
President & CEO