F&M Bank Holds in American Bankers Top 200 for ROAE

We are happy to report F&M Bank's placement in the American Banker's Top 200 list again in 2016 for our 3-year ROAE (Return on Average Equity). This year F&M Bank ranked 138th (up from 148th in 2015). See below for the full article.

American Banker Magazine
By Bonnie McGeer
April 25, 2016 

Profitability is under a lot of pressure for small institutions — expenses are up and yields on loans are down. But some are handling that pressure better than others, as our annual ranking of publicly traded banks and thrifts with less than $2 billion of assets shows.

The overall group of 684 institutions that fit the criteria for our ranking had median noninterest expense growth of 4.25% last year. For those that earned a spot in the top 200, expenses grew at an even faster pace of 5.85%.

But several factors — including loan growth and core deposit growth — helped offset the higher expenses for both the standouts and the larger peer group, which is allowing profitability to remain stable for now, according to an analysis by Capital Performance Group.

The rate at which institutions in this size range added loans improved slightly in 2015 compared with the previous year. Net loans were up a median of 8.39% for the top 200 and 8.1% for the peers.

Unlike in 2014, core deposit generation outpaced loan growth — which allowed for funding the loan growth cheaply. “This is important, as it helped ameliorate the impact of lower earning assets on the margin,” said Kevin Halsey, a consultant at CPG.

The top 200 institutions — ranked here by return on average equity across three years — had median core deposit growth of 10.33% last year, with the peer group posting an also impressive 9.26%. The median cost of funds improved 5 basis points for both the top 200 (to 0.44%) and the peers (0.47%).

At the same time, the yield on average earning assets fell by 7 basis points for both, to a median of 4.19% for the top 200 and 4.05% for the peers.

For American Banker subscribers: If you'd like an Excel sheet with all 684 publicly traded banks and additional data points such as cost of funds, core deposit growth, yield on average earning assets and ratio of noninterest expenses to average assets, send an email before May 27 to Bonnie.Mcgeer@SourceMedia.com to request a copy.

F&M Bank Annual Report Unearthed in Time Capsule

April 26, 2016 – In celebration of the Harrisonburg-Rockingham Chamber of Commerce’s 100 year anniversary, the Chamber unearthed a 1966 time capsule buried at Court Square in Harrisonburg. Among many interesting artifacts from local businesses – a tin can of 50-year-old “young turkey with gravy” not excluded – we were pleased to see a copy of F&M Bank’s annual report from 1965 among the items.

Click on the image below to view the 1965 report

Words from our President and CEO, Dean Withers, say it best:Things have changed.  It is interesting that  we are the only bank that still exists today from the other banks in the time capsule…

Check out our most current annual report and financials from Year 2015.


F&M Bank Celebrates Innovative Investment in Schools

F&M Bank Celebrates Innovative Investment in Schools
The Vault™ Understanding Money program is a web-based interactive course designed to empower young people with the essential skills needed to make sound financial decisions. F&M Bank has partnered with leading education technology company EverFi to bring this interactive program to 10 high schools across the Shenandoah Valley in recent years at no cost to schools.


Research shows the positive impact of teaching financial education in schools.

March 31, 2016 (Timberville, VA) — In celebration of Financial Literacy Month in April, F&M Bank announces that its schools-based financial education program is making a positive impact on students’ understanding critical financial topics. Data collected from more than 957 students who completed the program in the 2014-2015 academic year revealed that students’ understanding of financial topics increased by an average of 75% after interacting with the curriculum.

The My Money, My Future program is a web-based interactive course designed to empower young people with the essential skills needed to make sound financial decisions. F&M Bank has partnered with leading education technology company EverFi to bring this interactive program to 10 high schools across the Shenandoah Valley in recent years at no cost to schools.


(What I liked best about the course is) “That it’s a great idea for kids to learn about this subject because we will definitely need it for our future!” – My Money, My Future & Farmers and Merchants Bank student

According to recent EverFi survey data, children in the US primarily develop their financial attitudes from their parents through family discussions and learning by example. However, a FleetBoston Smarter Decisions Survey cites that 74% of parents don’t feel prepared to teach their children about money and over 40% of parents don’t talk to their children about money at all. These statistics support the need for financial education in a school setting, where all students have an equal opportunity to learn essential financial skills. The My Money, My Future program is implemented in a co-curricular basis, providing students with the opportunity to develop healthy financial attitudes and behaviors in a classroom setting.

“More and more evidence suggests that rigorous financial education delivered early in a young person’s development leads to positive financial behaviors later in life,” said Holly Thorne, Marketing Director of F&M Bank. “By providing high school students with the knowledge and skills they need to make smart financial decisions, we are investing in the future economic well-being of the communities we serve.”


F&M Bank has partnered with EverFi to bring the program to local students at no cost to schools or taxpayers. The web-based program uses the latest in simulations and gaming to bring complex financial concepts to life for today’s digital generation. The high school course offers over six hours of programming with ten units in a variety of financial topics including credit scores, insurance, credit cards, student loans, mortgages, taxes, stocks, savings, 401k’s and other critical concepts that map to national financial literacy standards. The platform uniquely tracks the progress and performance of every student.

In May of each year, as students wind down from SOL testing, F&M bankers visit classrooms at area schools to award certificates to students who completed the Everfi courses. The banker congratulates students with a certificate of completion and typically provides a pizza lunch for the students that day.

About F&M Bank

F&M Bank serves the Shenandoah Valley with eleven full-service branches, a network of ATMs, and a wide variety of financial services. Both individuals and businesses find the organization's local decision-making, and up-to-date technology provide the kind of responsive, knowledgeable, and reliable service that only a progressive community bank can. Farmers & Merchants Bank has grown to over $650 million in assets — celebrating two record breaking years in 2014 and 2015 — and boasts over 160 full and part-time employees. Its conservative approach to finances and sound investments, along with excellent customer service, has made F&M Bank profitable and continues to pave the way for a bright future.

About EverFi

EverFi, Inc. is the leading education technology company focused on teaching, assessing, and certifying K-12 and college students in the critical skills they need for life. The company teams with major corporations and foundations to provide the programs at no cost to K-12 schools. Some of America’s leading CEOs and venture capital firms are EverFi investors including Amazon founder and CEO Jeff Bezos, Twitter founder Evan Williams, and Google Chairman Eric Schmidt.  Learn more at everfi.com.






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