Financial Condition

For the first time in 32 years, we did not see a growth in assets…in reflecting on the past three decades, F & M has had a phenomenal run. Over the past year our assets slipped a nominal 2.7%.  The last year we had not experienced growth in our assets was 1985. In that year, we had $31 million in assets and only one location.  Today we have grown to $538 million with 11 locations and in excess of $70 million in equity and reserves.   While we didn’t experience growth in our assets, we were stillblessed to have another record year of earnings which exceeded $8.5 million.

Nationally, the pending tax overhaul could have a substantial impact on our economy.  Our current GDP growth at 3% – 3.5% may spike to levels not seen since the ‘80’s.  The Prime Interest Rate has just been raised another 25 basis points to 4.50% from a low of 3.25% in Dec 2008 and it appears further increases are imminent.  This does not seem to have impacted our borrowers, but our savers are beginning to find better options for returns on their investable funds.  

On the Ag side, with harvest completed, we saw many with record corn yields.  While low commodity prices are still prevalent, the extra yields have greatly assisted with our Ag producers’ cash flow.  Until demand can make further gains on supply, lower grain prices are likely to remain. The fate of NAFTA also clouds the future.  2018 will be another challenging year for farmers and those agricultural businesses.

The team members of F & M Bank are the most important asset we have! Our mission is to provide them with the tools, education and a quality work environment necessary to provide you with service beyond your expectations.  To this end, we continue to invest in training, technology and the quality of their work environment.

We look forward to the continuation of the very successful growth trend that has been established in recent years.  This success would not have been possible without you “Our Valued Clients” and your commitment to our Bank.  Our relationship with you is our top priority and we will continue to strive in our goal of “Exceeding Clients’
Expectations”.  We do appreciate the confidence you have placed in F & M Bank.

Best wishes for a very successful 2018.

Sincerely yours,

Michael W. Dunn
Chairman, President & CEO