F & M Bank Corp. Announces Fourth Quarter Earnings and Dividend

OTC DISCLOSURE & NEWS SERVICE | F & M Bank Corp. Announces Fourth Quarter Earnings and Dividend Press Release | 01/28/2021

TIMBERVILLE, VA / ACCESSWIRE / January 28, 2021 / F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the fourth quarter and year ending December 31, 2020 and fourth quarter dividend to shareholders.

As the global pandemic continues, the company continually assesses our procedures to maintain the safety of our customers, employees and community while serving their financial needs. Farmers & Merchants Bank continues to operate our branches in a drive-thru only capacity daily, with courier pick up and by appointment lobby transactions.

CARES ACT & Paycheck Protection Program (“PPP”)
During 2020, the Company processed 717 Paycheck Protection Program (PPP) loans which totaled $62.7 million. In addition to an insignificant amount of PPP loan pay offs, the Company processed $27.8 million of loan forgiveness on 266 loans resulting in a remaining balance of PPP loans of $34.9 million. The Company began accepting applications on January 15, 2021 for additional PPP loans pursuant to the Consolidated Appropriations Act, 2021.

In addition, we have processed 1,223 individual loan deferrals. As of December 31, 2020, 198 loans remain in deferral with a balance of $14.6 million which represents 2.3% of loans outstanding exclusive of PPP balances.

Winchester Loan Production Office (LPO) & Expansion into Waynesboro Virginia
The Company has opened a loan production office in the Winchester, VA market in the first quarter of 2021. Mike Wilkerson has joined F&M to lead an experienced team of bankers as we enter a very strong and growing economy in the Northern Shenandoah Valley. In addition, on January 27, 2021, F&M announced we entered into a purchase and assumption agreement with Carter Bankshares, Inc. for a banking office in the City of Waynesboro, Virginia. Expanding into the Waynesboro market was a strategic initiative of F&M Bank given the market opportunity and to better serve our existing client base in the Shenandoah Valley.

Selected financial highlights for the quarter and year to date include:

  • Net income of $2.77 million and $8.79 million, respectively.
  • Net interest margin of 3.81% and 3.61%, respectively.
  • Total deposits increased $25.0 million and $176.9 million, respectively for the quarter and for the trailing 12 months.
  • Total loans increased $16.5 million and $23.0million, respectively for the quarter and for the trailing 12 months (excluding PPP loans).
  • Nonperforming assets decreased to 0.68% of total assets at the end of the quarter from 0.89% on 12/31/19, after a slight increase in the fourth quarter from 0.44% at 9/30/20.
  • Allowance for loan losses totaled 1.58% of loans held for investment (1.67% excluding PPP loans).

Mark Hanna, President, commented “We are pleased to announce fourth quarter and year-to-date earnings of $2.77 million and $8.79 million respectively. Recognition of fees earned on PPP loans forgiven and credit quality improvements that resulted in no provision for loan losses in the fourth quarter, spurred the performance in the fourth quarter. Exceptional years in our mortgage and title companies, as well as well as our ability to maintain similar net interest income to 2019 have driven the year-to-date results. Our net interest margin of 3.61% shows a historical decline but remains strong especially given the changes in our balance sheet and the current rate environment. F&M’s liquidity has increased significantly over the last four quarters and we are implementing strategic solutions to leverage these assets including deploying $99.9 million into the investment portfolio since year end 2019. Despite the current low-rate environment, these strategies should augment our net interest margin in the future.”

Mr. Hanna stated, “Nonperforming assets have continued to improve, decreasing $680 thousand since year end 2019. We feel these efforts put F&M in a strong position to manage the current economic uncertainty while seeking opportunities for continued growth in the communities we serve.”

Mr. Hanna continued, “As we kick off the New Year, we are excited about the opportunities in our new markets of Winchester and Waynesboro Virginia. Mike Wilkerson and his team add experience and energy in a strong Winchester market in the Northern Shenandoah Valley and expanding into the Waynesboro market provides additional market opportunity and better service to our existing customers.”

On January 21, 2021 our Board of Directors declared a third quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $23.75 per share this constitutes a 4.38% yield on an annualized basis. The dividend will be paid on March 1, 2021, to shareholders of record as of February 14, 2021.”

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s eleven banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at www.fmbankva.com or by calling (540) 896-1705.

This press release may contain “forward-looking statements” as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

F & M Bank Corp.
Key Statistics

2020 2019
Q4 Q3 Q2 Q1 YTD YTD
Net Income (000’s)
$ 2,766 $ 2,207 $ 2,626 $ 1,189 $ 8,788 $ 4,509
Net Income available to Common
$ 2,700 $ 2,142 $ 2,560 $ 1,123 $ 8,525 $ 4,194
Earnings per common share – basic
$ 0.84 $ 0.67 $ 0.80 $ 0.35 $ 2.66 $ 1.32
Earnings per common share – diluted
$ 2.56 $ 1.30
Return on Average Assets
1.12 % 0.88 % 1.17 % 0.58 % 0.99 % 0.57 %
Return on Average Equity
11.75 % 9.44 % 11.50 % 5.23 % 9.39 % 4.93 %
Dividend Payout Ratio excluding Special Dividend
30.95 % 38.81 % 32.50 % 74.29 % 39.10 % 77.27 %
Net Interest Margin
3.81 % 3.60 % 3.75 % 3.97 % 3.61 % 4.33 %
Yield on Average Earning Assets
4.77 % 4.31 % 4.52 % 4.88 % 4.27 % 5.27 %
Yield on Average Interest Bearing Liabilities
1.33 % 0.99 % 1.09 % 1.27 % 0.94 % 1.30 %
Net Interest Spread
3.44 % 3.32 % 3.43 % 3.61 % 3.33 % 3.97 %
Provision for Loan Losses (000’s)
$ $ 1,000 $ 800 $ 1,500 $ 3,300 $ 7,405
Net Charge-offs
$ 351 $ 208 $ 203 $ 453 $ 1,215 $ 4,255
Net Charge-offs as a % of Loans
0.21 % 0.12 % 0.12 % 0.30 % 0.18 % 0.71 %
Non-Performing Loans (000’s)
$ 6,537 $ 4,254 $ 4,465 $ 4,168 $ 6,537 $ 5,728
Non-Performing Loans to Total Assets
0.68 % 0.42 % 0.45 % 0.50 % 0.68 % 0.70 %
Non-Performing Assets (000’s)
$ 6,537 $ 4,420 $ 5,625 $ 5,504 $ 6,537 $ 7,217
Non-Performing Assets to Assets
0.68 % 0.44 % 0.57 % 0.66 % 0.68 % 0.89 %
Efficiency Ratio
69.10 % 65.35 % 65.33 % 70.51 % 67.51 % 69.03 %
  1. The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 21%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.
  2. The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investments portfolio and Other Real Estate Owned. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

F & M Bank Corp.
Financial Highlights

INCOME STATEMENT
Unaudited
2020
Audited
2019
Interest and Dividend Income
$ 36,792,403 $ 38,210,304
Interest Expense
5,728,482 6,818,488
Net Interest Income
31,063,921 31,391,816
Non-Interest Income
12,190,916 9,919,954
Provision for Loan Losses
3,300,000 7,405,000
Impairment of long lived assets
19,193
Other Non-Interest Expenses
29,938,920 29,517,995
Income Before Income Taxes
10,035,110 4,388,775
Provision for Income Taxes
1,141,742 (250,304 )
Less Minority Interest (income)/loss
(105,193 ) (130,276 )
Net Income
$ 8,788,175 $ 4,508,803
Dividend on preferred stock
262,642 314,589
Net Income available to common shareholders
$ 8,525,533 $ 4,194,214
Average Common Shares Outstanding
3,199,883 3,189,288
Net Income Per Common Share
2.66 1.32
Dividends Declared
1.04 1.02

 

BALANCE SHEET
Unaudited
December 31, 2020
Audited
December 31, 2019
Cash and Due from Banks
$ 11,181,164 $ 8,118,889
Interest Bearing Bank Deposits
1,243,519 1,125,616
Federal Funds Sold
65,983,000 66,559,096
Loans Held for Sale
58,753,055 66,798,436
Loans Held for Investment
661,328,888 603,425,471
Less Allowance for Loan Losses
(10,474,960 ) (8,389,846 )
Net Loans Held for Investment
650,853,928 595,035,625
Securities
117,897,486 18,015,488
Other Assets
61,018,331 58,345,513
Total Assets
$ 966,930,483 $ 813,998,663
Deposits
$ 818,581,503 $ 641,709,480
Short Term Debt
10,000,000
Long Term Debt
33,201,631 53,200,675
Other Liabilities
19,517,664 17,513,319
Total Liabilities
871,300,798 722,423,474
Preferred Stock
4,558,298 4,591,623
Common Equity
91,071,387 86,983,566
Stockholders’ Equity
95,629,685 91,575,189
Total Liabilities and Stockholders’ Equity
$ 966,930,483 $ 813,998,663
Book Value Per Common Share
$ 28.43 $ 27.11
Tangible Book Value Per Common Share
$ 28.42 $ 26.95

CONTACT:

Carrie Comer
EVP/Chief Financial Officer
540-896-1705 or ccomer@fmbankva.com

SOURCE: F & M Bank Corp.

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F&M Bank Announces Expansion into City of Waynesboro

TIMBERVILLE, VA, January 27, 2021 — F&M Bank Corp. (OTCQX:FMBM), holding company for F&M Bank announced today its intention to open a new location in the City of Waynesboro, VA, expanding the $1B community bank’s presence to four banking offices in the Augusta County market and 12 offices serving the greater Shenandoah Valley.

“F&M’s executive team is delighted to grow into the vibrant City of Waynesboro – a thriving, local economy where many of our customers live, work and play,” said Mark Hanna, President & CEO. “Our focus remains on serving the Shenandoah Valley and contiguous markets as an independent bank for the long-term. The decision to expand into Waynesboro supports our strategic initiative of organic growth in core markets to better serve the banking needs of our communities.”

F&M Bank has entered into an agreement with Carter Bankshares, Inc.  to acquire the branch, and associated client relationships, located at 2701 West Main Street in Waynesboro. This agreement is subject to regulatory approvals and customary closing conditions and is expected to be completed early in the second quarter of 2021.

Mr. Hanna is available for further comment. Please contact Holly Thorne at marketing@fmbankva.com.

About F&M Bank
F&M Bank Corp. (OTCQX: FMBM) proudly remains the only publicly traded organization based in Rockingham County, VA, and since 1908, has served the Shenandoah Valley through its banking subsidiary F&M Bank, with full-service branches and a wide variety of financial services, including home loans through F&M Mortgage, and real estate settlement services and title insurance through VSTitle. 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. F&M Bank has grown to $1 billion in assets with more than 175 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.

Forward-looking Statements
Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements related to the branch expansion and F&M’s future operations and are generally identified by phrases such as “F&M expects,” “F&M believes” or words of similar import. Although F&M believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could have a material adverse effect on F&M’s operations and future prospects include, but are not limited to, difficulties or unexpected costs in combining the acquired branch on the proposed terms or anticipated schedule; deposit attrition, customer losses and business disruption in connection with the branch acquisition; expected growth opportunities may not be realized; changes in interest rates, general economic conditions, or legislative and regulatory policies; and other risk factors and cautionary language included in F&M’s Annual Report on Form 10-K for the year ended December 31, 2019, and other filings with the Securities and Exchange Commission. We undertake no obligation to update these statements following the date of this press release.

Ask A Financial Advisor – Q&A with Matt Robinson

Matt Robinson, Vice President – Infinex Financial Advisor with F&M Financial Services, Inc.

80 Cross Keys Road, Harrisonburg, VA 22801

(540) 437-3467

mrobinson@infinexgroup.comMake An Appointment with Matt

Question: What is the most rewarding part of your work?

I enjoy being a problem solver for my clients. At the end of the day the client has an issue or problem, and they are looking to me for the solution. It is not an exact science but being able to customize each plan for every client is extremely exciting and rewarding.

Question: How can residents of the Shenandoah Valley area benefit from working with a financial advisor?

The Shenandoah Valley is filled with a diverse population of workers, families, and communities. We are growing at a very fast rate and becoming even more diverse. A financial advisor is well positioned to provide a level of advice and expertise in the form of finances that can greatly benefit the population.

Having a trusted name and person to go to is something more and more people are seeking. In this complex world of speed and efficiency it is easy to understand why people tend to neglect their finances and only focus on what they need to accomplish each day. Working with an advisor is a way to relieve some of that financial burden but more so a way to find a partner in your financial story. We want to walk along with you, not lead.

Question: How should I plan and prioritize my short-term vs. long-term financial goals?

Setting goals is perhaps one of the most important things you can do in mapping out a good plan. I tend to work on goals-based investing, and with that we determine your short-term, mid-term and long-term goals. How many goals do you have? Where should we place the most or least risk? In life you must make decisions that are short-term but also recognize that they may have long-term implications.  I work to help my clients realize and implement this to give them the most confidence in their plan.

Question: Why is life insurance important for financial health?

As someone who has delivered a life insurance death check, I can tell you that it’s very important. Someone once told me that “life Insurance is the most selfless thing you’ll ever buy.” That still sticks with me to this day because of the statement’s simple truth. Most times the person that purchases the life coverage will never see a penny of the profit or benefit. They purchase it to help their loved ones in the unforeseen event of a premature death. Life insurance can be there to help keep kids in school, as well as pay off a home. It’s a powerful product!

Question: What should I consider when determining to invest in stocks vs. mutual funds?

Risk is number one. What are you willing to risk and what is your risk tolerance? Once that is decided it can be as simple as matching your goal and risk up with the proper investment vehicle. I have many clients that like individual stocks, and I have clients that love mutual funds. There is no perfect answer but in working with an advisor you will feel confident about the choice you make going forward.

Question: How should my wealth management strategy change in response to COVID-19?

COVID-19 has been a disruptor – not only in our personal and work life but also our financial life. The bad news is that COVID-19 happened, and the good news is that it won’t last forever. Making any drastic financial changes to a portfolio during times of such uncertainty can produce adverse results to your overall plan. If you don’t need the money immediately, or in the foreseeable future, the textbook says to stay invested.

Making some minor changes to sector exposure has been more of the playbook since COVID-19 became an issue. Simply put that means we have moved funds away from the decimated sectors like tourism, hospitality, restaurants, airlines, etc. Some sectors that have done well have been technology and consumer staples. Once again, you shouldn’t make large changes but instead calculated small changes to hopefully enhance your portfolio during these unusual times.

Question: How do index funds play a part in my investment strategy?

Index funds serve a purpose in the investing world. They generally have lower fees but with that comes a passive approach to investing. The opposite would be a more active approach to investing.  Passive index investing is simply following along with a large index, and there is no deviation from the index. During the most recent bull market run, the indexes have shown tremendous growth in the last 10 years. Having a broad-based index apart of your portfolio can be a hedge against some more specified positions all aimed at the idea of diversification*.

*Diversification is a method of helping to manage risk. It does not assure a profit or the avoidance of loss.

Question: What do Virginia residents need to consider when determining where and when they should retire?

This is a million-dollar question! It’s unique to every person as to when and where to retire. Some people need millions of dollars and some need a few hundred thousand. Everyone will have a different situation, but it’s important to understand who you want to be in retirement.

  • Do you want to travel?
  • Do you want to help with kids and grandkids?
  • Do you want a part time job or perhaps volunteer?

There are multiple factors at play with regards to Social Security and Health Insurance. You have to consider the cost of living in the town or city. Having a partner that shares your interests in retirement seems to be a growing trend. Sitting down with someone who sees different perspectives and can help you navigate the new waters of retirement can be such a great experience. It can give you the confidence to go forth into retirement and live the life you want!

Question: Where should I invest my funds in order to save for retirement?

The answer to this is similar to the stocks or mutual funds question. It will all depend on your risk tolerance and your retirement needs. The textbook says to be more aggressive when you are young and bring down your risk the closer you get to retirement. Being an educated investor will help you make better decisions and feel like you are on the correct pathway to a fantastic retirement.

Make An Appointment with Matt

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. F&M Financial Services, Inc. is a nonbank subsidiary of F&M Bank. Infinex is not affiliated with either entity.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

Virtual Scholarship for High School Seniors

F&M Bank is excited to partner with the Virginia Bankers Association Education Foundation (VBA) to offer local seniors a unique, virtual scholarship opportunity called Bank Day. The third Tuesday in March was declared Bank Day by the Virginia General Assembly in 1991.

Through this program, high school seniors learn about banking, financial services, career opportunities and the vital role banks play in their communities.  From their experience, the students are required to write an essay. Fourteen scholarships will be awarded on the basis of the essays.

Due to the pandemic, Bank Day will be completely virtual and centralized with content provided from the VBA. Students will have access to a VBA-created Bank Day resource webpage over a three-week window from March 15-April 2, 2021. This resource page will house all relevant information that students will need to research in order to complete their essay for a chance to win college scholarships. As a virtual host, F&M Bank will also be providing supplemental information about ways we support our community.

We are excited to celebrate the 30th anniversary of Bank Day in 2021! In recognition of this milestone, a total of $29,000 will be awarded to twelve students across the Commonwealth.

  • Six honorable mention winners, each winning a $1,000 scholarship.
  • Six regional winners, each winning a $2,500 scholarship.
  • One of the regional winners will be named the statewide runner-up winner, earning an extra $3,000 scholarship for a total of $5,500 in college scholarships!
  • One of the regional winners will also be named the statewide winner, earning an extra $5,000 scholarship for a total of $7,500 in college scholarships!

Hear from Emily Carder, the 2020 Bank Day statewide winner, about the benefits of participating in this program. Click here to view her video testimonial.

For more detailed information regarding the scholarship program or essay guidelines, please download the below resources.

Interested in participating?

In order to participate, students must be currently enrolled as seniors in a Virginia high school with cumulative GPAs of 3.0 or higher. Interested students must register online by March 5th through the VBA.

In March, students will be contacted directly by the VBA with more information about the program and a link to access the student resource webpage.

F&M Bank Welcomes Mike Wilkerson and Jonathan Reimer to Winchester Team

F&M Bank is excited to announce its expansion into the Northern Shenandoah Valley market. Mike Wilkerson, Chief Strategy Officer & Northern Market Executive, and Jonathan Reimer, Vice President & Commercial Relationship Manager, will spearhead F&M Bank’s growth into Winchester and Frederick County.

“We are thrilled to welcome Mike Wilkerson and Jonathan Reimer to F&M Bank,” said Mark Hanna, President & CEO. “The greater Winchester area is vibrant, boasting a thriving, local economy and is contiguous to our Shenandoah County footprint. As a Commercial Relationship Manager, Mr. Reimer has successfully cultivated and developed community partnerships, and under Mr. Wilkerson’s guidance and direction, we look forward to continued success.”

Mike Wilkerson | EVP F&M Bank

 

Mike Wilkerson joins F&M Bank with near 40 years of banking experience to include retail, small business, commercial lending, and leadership. He has successfully built and developed teams throughout Western Virginia and the Shenandoah Valley.

“F&M Bank was the right choice for my career based on the family-oriented culture, exceptional leadership team, and the bank’s progressive momentum,” said Mr. Wilkerson. “The organization is focused on serving the Shenandoah Valley and remaining an independent bank for the long-term.”

A current resident of Winchester, Mr. Wilkerson plays an active role in the community. He volunteers for numerous organizations and currently serves on the Virginia Community College Foundation Board as well as a member of the Finance & Investment Committee.

 

Jon Reimer

 

Jonathan Reimer brings 10 years of commercial lending experience to F&M Bank. He began his career as a credit analyst, transitioned into small business lending, and most recently served the Winchester market as a commercial relationship manager.

“F&M Bank has a long tradition of intimately understanding its customers and their businesses. This merges nicely with my banking career and my team’s approach to serving our clients,” said Mr. Reimer. “I look forward to helping F&M Bank enter Winchester and delivering Banking You Love from People Who Care!”

Mr. Reimer is dedicated to community service. He currently sits on the board of directors for the Shenandoah Valley Discovery Museum and is an active member of the Winchester Rotary Club.

Here to Help with PPP Round Two

Cash Management 101

2020 has been a rough year for small businesses. As you pick up the pieces and plan for 2021, it’s a good time to review the basics of cash management 101. Need help improving your cash flow? We can help! Keep reading for treasury management tips and your best options for cash management help.

What is Cash Management?

In business, Cash Management is a key component of a company's financial stability

In business, cash management is a key component of a company’s financial stability. Through the process of collecting and managing cash flows, your ultimate goal is to maximize liquidity and minimize the cost of funds.

So, how does cash management work? The two main steps are to monitor your business’ incoming and outgoing payments so you always know where your cash flow stands.

If your cash flow is projected to fall short, having a business line of credit can help. With careful cash management and access to a flexible credit line, you can spot shortages before they trip up your operation and transfer funds from your credit line to cover the gap until more money comes in.

Understanding the Cash Flow Statement

The Cash Flow Statement is a central component of cash flow management for businesses.

Now that you know cash management is the process of managing cash inflows and outflows, let’s look at the cash flow statement, which records cash inflows and outflows with a bottom line that shows how much cash is available at a given time. It is broken into three parts: operating, investing, and financing. Since cash is the primary asset your business uses to pay obligations, it must be managed accordingly to maximize earnings. The cash flow statement is a central component of cash flow management for businesses.

Why is Cash Management important to my business?

Why is Cash Management important to my business?

Good cash management will impact future growth for the company. If done improperly, your business may suffer problems such as:

  • Poor understanding of the cash flow cycle
  • Uncertainty of the difference between profit vs. cash
  • Lack of cash management skills
  • Bad capital investments

Cash Management vs. Treasury Management

Cash Management vs. Treasury Management

Though these terms are used interchangeably, the scope of Treasury Management is much larger and includes a company’s funding and investment activities. In contrast, Cash Management usually refers to wire transfers, sweep accounts, merchant services, and business credit options.

What is Cash Flow?

Cash flow is the net amount of cash and cash-equivalents transferred into and out of your business.

What is cash flow used for?

A positive cash flow shows that your business’s liquid assets are growing, which can help you pay off debts, reinvest in the business, and more. The greater flexibility you have with your cash flow, the stronger your overall business will be to both take advantage of boom times as well as weather downturns.

What is Working Capital?

A company's working capital is the result of its current assets minus liabilities.

A company’s working capital is the result of its current assets minus liabilities. Working capital balances are an important part of cash flow management because they show the amount of assets a company has on hand to cover its liabilities.

  • Current assets: cash, accounts receivable within one year, inventory
  • Current liabilities: all accounts payable due within one-year, short-term debt payments due within one year

What is ACH?

Recent rule changes mean most credit and debit transactions made through the ACH will clear on the same business day.

The automated clearing house (ACH) is an electronic funds-transfer system that facilitates payments in the U.S. Recent rule changes mean most credit and debit transactions made through the ACH will clear on the same business day.

Where can I get help with cash management?

As your community bank in the Shenandoah Valley, F&M Bank offers everything your business needs to manage cash flow. With online cash management to streamline your processes, you’ll enjoy 24/7 access to current transactions and old bank statements, funds transfers, bill and loan payments, and more. Simplify your payroll and enjoy local support with all your Merchant Services needs.

Learn more about cash management services from F&M Bank!

Since 1908, F&M Bank has been offering personal and business banking services in the Shenandoah Valley and beyond. Our local team guides you to the accounts and services you need to do business in the Valley. Personal service from people you know and trust lets you develop relationships with your banker. Contact a member of our team to learn more about our cash management services!

F&M Bank Announces Employee Promotions

F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective December 17, 2020.

Bank Officer:

  • Robin Layman, Branch Specialist (Edinburg)

Assistant Vice President:

  • Carlie Kelly, Credit Analyst
  • Ashley McClure, Branch Manager (Bridgewater)
  • Emily Rhodes, Credit Analyst
  • Mary Pavlovskaya, Business Deposit Services Officer

Additionally, we would like to congratulate Angela Smith on her recent promotion to Branch Manager of the North Augusta office.