UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
Quarterly report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File Number: 0-13273
March 31, 2000
F & M BANK CORP.
Virginia 54-1280811
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Drawer 1111
Timberville, Virginia 22853
(540) 896-8941
--------------------
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant (1) filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the past 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirement for
the past 90 days. Yes ..X. No ....
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.
Class Outstanding at March 31, 2000
------------------------------------ -----------------------------
Common Stock, par value - $5 2,453,402 shares
1
F & M BANK CORP.
INDEX
Page
PART I FINANCIAL INFORMATION 2
Item 1. Financial Statements
Consolidated Statements of Income - Three Months
Ended March 31, 2000 and 1999 2
Consolidated Balance Sheets - March 31, 2000 and
December 31, 1999 3
Consolidated Statements of Changes in Stockholders'
Equity - Three Months Ended March 31, 2000 and 1999 4
Consolidated Statements of Cash Flows - Three Months
Ended March 31, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II OTHER INFORMATION 15
Item 1. Legal Proceedings 15
Item 2. Changes in Securities 15
Item 3. Defaults upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security Holders 15
Item 5. Other Information 15
Item 6. Exhibit and Reports on Form 8K 15
SIGNATURES 17
2
Part I Financial Information
Item 1 Financial Statements
F & M BANK CORP.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands of Dollars)
Three Months Ended
March 31,
2000 1999
---------- -------
Interest Income
Interest and fees on loans $ 3,089 $ 2,887
Interest on federal funds sold 16 38
Interest on interest bearing deposits 14 10
Interest and dividends on investment securities 604 598
------- ------
Total Interest Income 3,723 3,533
------- ------
Interest Expense
Interest on demand accounts 120 114
Interest on savings deposits 248 231
Interest on time deposits 977 927
------- ------
Total interest on deposits 1,345 1,272
Interest on short-term debt 85 69
Interest on long-term debt 245 288
------- ------
Total Interest Expense 1,675 1,629
------- ------
Net Interest Income 2,048 1,904
Provision for Loan Losses 29 10
------- ------
Net Interest Income after Provision for Loan Losses 2,019 1,894
------- ------
Noninterest Income
Service charges 126 102
Other 133 82
Security gains 771 568
------- ------
Total Noninterest Income 1,030 752
------- ------
Noninterest Expense
Salaries 537 460
Employee benefits 174 160
Occupancy expense 49 39
Equipment expense 75 61
Other 301 253
------- ------
Total Noninterest Expense 1,136 973
------- ------
Income before Income Taxes 1,913 1,673
Income Taxes 607 540
------- ------
Net Income $ 1,306 $ 1,133
======= ======
Per Share Data
Net Income $ .53 $ .46
======= ======
Cash Dividends $ .14 $ .12
======= ======
Equivalent Shares Outstanding 2,455,259 2,454,840
========= =========
The accompanying notes are an integral part of these statements.
3
F & M BANK CORP.
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars)
March 31, December 31,
ASSETS 2000 1999
------------ ---------
Cash and due from banks $ 3,092 $ 4,799
Federal funds sold 99
Interest bearing deposits in banks 1,309 462
Securities held to maturity (note 2) 4,270 4,330
Securities available for sale (note 2) 38,717 36,169
Other investments 3,893 3,923
Loans, net of unearned discount (note 3) 144,429 140,318
Less allowance for loan losses (note 4) (1,127) (1,090)
-------- -------
Net Loans 143,302 139,228
Other real estate 426 426
Bank premises and equipment 3,146 3,158
Interest receivable 1,488 1,373
Other assets 1,445 1,470
------- -------
Total Assets $201,187 $195,338
======= =======
LIABILITIES
Deposits
Noninterest bearing demand $ 18,009 $ 17,193
Interest bearing
Demand 21,159 21,149
Savings deposits 30,128 29,566
Time deposits 77,668 71,599
------- -------
Total Deposits 146,964 139,507
Short-term debt 6,089 7,720
Long-term debt 17,715 18,548
Accrued expenses 4,603 4,277
------- -------
Total Liabilities 175,371 170,052
------- -------
STOCKHOLDERS' EQUITY
Common stock $5 par value, 2,453,402 and 2,455,962
shares issued and outstanding in 2000 and 1999,
respectively 12,267 12,280
Surplus 822 868
Retained earnings 12,550 11,587
Accumulated other comprehensive income 177 551
------- -------
Total Stockholders' Equity 25,816 25,286
------- -------
Total Liabilities and Stockholders' Equity $201,187 $195,338
======= =======
The accompanying notes are an integral part of these statements.
4
F & M BANK CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In Thousands of Dollars)
Three Months Ended
March 31,
2000 1999
---------- -------
Balance, beginning of period $ 25,286 $ 24,078
Comprehensive Income:
Net income for period 1,306 1,133
Net change in unrealized appreciation on
investment securities available for sale,
net of taxes (374) (622)
-------- -------
Total comprehensive income 932 511
Repurchase of common stock (59) (40)
Dividends declared (343) (294)
-------- -------
Balance, end of period $ 25,816 $ 24,255
======= =======
The accompanying notes are an integral part of these statements.
5
F & M BANK CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
Three Months Ended
March 31,
2000 1999
---------- -------
Cash Flows from Operating Activities:
Net income $ 1,306 $ 1,133
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 68 47
Amortization of security premiums 14 63
Provision for loan losses 29 10
Gain on sale of assets (1)
Increase in interest receivable (115) (72)
Decrease in other assets 25 303
Increase (decrease) in accrued expenses 551 (257)
Gain on security transactions (771) (568)
Losses on limited partnership investments 30 30
------- -------
Net adjustments (169) (445)
-------- -------
Net Cash Provided by Operating Activities 1,137 688
------- -------
Cash Flows from Investing Activities:
Purchase of investments available for sale (6,233) (7,735)
Proceeds from sales of investments available for
sale 3,655 4,551
Proceeds from maturity of investments available for
sale 205 1,863
Proceeds from maturity of investments held to
maturity 45 1,422
Net (increase) decrease in loans (4,105) 397
Purchase of property and equipment (56) (189)
Change in federal funds sold (99) (324)
Net decrease (increase) in interest bearing bank
deposits (847) 770
Net Cash Provided by (Used in) Investing
Activities (7,435) 755
-------- -------
Cash Flows from Financing Activities:
Net increase in demand and savings deposits 1,388 773
Net increase (decrease) in time deposits 6,069 (2,368)
Net increase (decrease) in short-term debt (1,631) 608
Cash dividends paid (343) (294)
Repurchases of common stock (59) (40)
Repayment of long-term debt (833) (833)
-------- -------
Net Cash Provided by (Used in) Financing Activities 4,591 (2,154)
------- --------
Net Decrease in Cash and Cash Equivalents (1,707) (711)
Cash and Cash Equivalents, Beginning of Period 4,799 4,198
------- -------
Cash and Cash Equivalents, End of Period $ 3,092 $ 3,487
======= =======
Supplemental Disclosure
Cash paid for:
Interest expense $ 1,655 $ 1,654
The accompanying notes are an integral part of these statements.
6
F & M BANK CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 ACCOUNTING PRINCIPLES:
The consolidated financial statements conform to generally accepted
accounting principles and to general industry practices. In the
opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of only
normal recurring accruals) necessary to present fairly the financial
position as of March 31, 2000 and the results of operations for the
three-month periods ended March 31, 2000 and March 31, 1999. The notes
included herein should be read in conjunction with the notes to
financial statements included in the 1999 annual report to
stockholders of the F & M Bank Corp.
NOTE 2 INVESTMENT SECURITIES:
The amounts at which investment securities are carried in the
consolidated balance sheets and their approximate market values at
March 31, 2000 and December 31, 1999 follows:
2000 1999
---------------------- -------------------
Carrying Market Carrying Market
Value Value Value Value
Securities Held to Maturity
U. S. Treasury and
Agency obligations $ 2,466 $ 2,443 $ 2,469 $ 2,444
State and municipal
Other securities 1,780 1,707 1,781 1,717
Mortgaged-backed securities 24 23 80 79
Total $ 4,270 $ 4,173 $ 4,330 $ 4,240
======= ======= ======= =======
2000 1999
----------------------- ------------------
Market Market
Value Cost Value Cost
Securities Available for Sale
U. S. Treasury and
Agency obligations $ 15,718 $ 16,053 $ 13,914 $ 14,274
Equity securities 11,377 10,441 12,339 10,811
Mortgage-backed securities 2,369 2,382 2,571 2,584
Other securities 9,253 9,518 7,345 7,580
------- ------- ------- -------
Total $ 38,717 $ 38,394 $ 36,169 $ 35,249
======= ======= ======= =======
7
F & M BANK CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 LOANS:
Loans outstanding are summarized as follows:
March 31, December 31,
2000 1999
---------- --------
Real Estate
Construction $ 5,506 $ 5,481
Mortgage 89,804 84,019
Commercial and agricultural 29,610 31,686
Consumer 18,520 18,082
Credit cards 967 1,016
Other 22 34
------ -------
Total $144,429 $140,318
======= =======
NOTE 4 ALLOWANCE FOR LOAN LOSSES:
A summary of transactions in the allowance for loan losses for the
three months ended March 31, 2000 and 1999 follows:
2000 1999
---------- -------
Balance, beginning of period $ 1,090 $ 1,162
Provisions charged to operating expenses 29 10
Net (charge offs) recoveries
Loan recoveries 15 17
Loan charge-offs (7) (36)
------- -------
Total Net (Charge-offs) Recoveries 8 (19)
------ -------
Balance, End of Period $ 1,127 $ 1,153
====== =======
Components of net (charge-offs) recoveries:
Commercial $ 1 $
Installment 7 (19)
------ -------
$ 8 $ (19)
====== =======
8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Overview
Loan and deposit growth continued to at a brisk pace during the period.
Loans increased at an annualized rate of 11.72%, with most of the growth in the
real estate portfolio. The exceptionally strong local economy and increases in
secondary market loan rates have contributed to the growth in our portfolio.
Deposits increased $7,457,000, with most of the increase coming in the form of
certificate of deposits. Many of these certificates resulted as proceeds from
the buyout of a large-local agricultural cooperative were deposited in our
institution. Income from operations, exclusive of securities transactions,
increased $47,000 (6.02%). Net income including securities transactions
increased $173,000 (15.27%) as a result of an increase of $126,000 in net after
tax securities gains realized.
Results of Operations
The dollar amount of the tax equivalent net interest margin increased
$139,000 or 7.09% in the first quarter of 2000 compared to the first quarter of
1999. An increase of fourteen basis points in the return on earning assets can
be attributed primarily to an increase in the yield on taxable investment
securities. This increase resulted from a general increase in market rates and a
lengthening of portfolio maturities. Approximately $79,000 of the $139,000
increase in net interest income is primarily attributable to an increase in net
earning assets (i.e. volume increases), with the remainder coming from an
improvement in the net yield on earning assets.
Noninterest income increased $278,000 in the first three months of 2000. An
increase in securities gains accounted for $203,000 of the total. Other
noninterest income increased due to higher service charges on deposit accounts
resulting from an increase in the per item overdraft fee, an increase in the
number of accounts serviced, increases in credit life insurance income and
increased fees generated from brokerage activities.
Noninterest expense increased $163,000 (16.75%). Salaries and benefits
accounted for $91,000 of this total. These increases resulted from normal salary
increases and increased accruals for a new performance based incentive program.
The remaining increase is made up of a number of factors, including higher
depreciation expense on 1999 equipment improvements and consulting fees related
to an efficiency study completed in March of 2000.
Financial Condition
Securities
The Company's securities portfolio is held to assist the Company in
liquidity and asset liability management. The securities portfolio consists of
securities held to maturity and securities available for sale. Securities are
classified as held to maturity when management has the intent and ability to
hold the securities to maturity. These securities are carried at amortized cost.
Securities available for sale include securities that may be sold in response to
general market fluctuations, general liquidity needs and other similar factors.
Securities available for sale are recorded at market value. Unrealized holding
gains and losses of available for sale securities are excluded from earnings and
reported (net of deferred income taxes) as a separate component of shareholders'
equity. As of March 31, 2000, the market value of all securities available for
sale exceeded their amortized cost by $323,000 ($177,000 after the consideration
of income taxes). This excess is the result of increases in the value of equity
securities held by the parent, net of decreases in the value of the bond
portfolio held by the subsidiary bank. Management has traditionally held debt
securities (regardless of classification) until maturity and thus it does not
expect the minor fluctuation in the value of these securities to have a direct
impact on earnings.
9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Securities (Continued)
Investments in securities increased 5.53% in the first quarter of 2000 with
funding coming from the increase in deposit liabilities. The Company generally
invests in relatively short-term maturities due to uncertainty in the direction
of interest rates. Recent purchases of debt securities have been in the four to
five year maturity range at rates significantly above the average rate of the
entire securities portfolio. Of the investments in securities available for
sale, 29.39% are invested in equities, most of which are dividend producing and
subject to the corporate dividend exclusion for taxation purposes. The Company
believes these investments offer adequate returns and have the potential for
significant increases in value.
Loan Portfolio
The Company operates in an agriculturally dominated area which includes the
counties of Rockingham, Page and Shenandoah in the western portion of Virginia.
The Company does not make a significant number of loans to borrowers outside its
primary service area. The Company is very active in local residential
construction mortgages. Commercial lending includes loans to small and medium
sized business within its service area.
An inherent risk in the lending of money is that the borrower will not be
able to repay the loan under the terms of the original agreement. The allowance
for loan losses (see subsequent section) provides for this risk and is reviewed
periodically for adequacy. The risk associated with real estate and installment
notes to individuals is based upon employment, the local and national economies
and consumer confidence. All of these affect the ability of borrowers to repay
indebtedness. The risk associated with commercial lending is substantially based
on the strength of the local and national economies.
While lending is geographically diversified within the service area, the
Company does have some concentration in agricultural loans (primarily poultry
farming). In addition to direct agricultural loans, a significant percentage of
residential real estate loans and consumer installment loans are made to
borrowers employed in the agricultural sector of the economy. The Company
monitors its past due loans closely and has not experienced higher delinquencies
in this sector compared to the overall loan portfolio.
The first three months of 2000 resulted in a $4,111,000 increase in the loan
portfolio. Most of the increase was in residential mortgage loans. Although
competition from other local banks remains a concern, a general increase in
secondary market rates has resulted in more three and five year adjustable rate
loans being funded by the Bank.
Nonperforming loans include nonaccrual loans, loans 90 days or more past due
and restructured loans. Nonaccrual loans are loans on which interest accruals
have been suspended or discontinued permanently. Restructured loans are loans,
which have changed the original interest rate or repayment terms due to
financial hardship. Loans ninety days or more past due totaled $1,477,000 at
March 31, 2000 compared to $1,917,000 at December 31, 1999. Approximately 90% of
these past due loans are secured by real estate. Although the potential exists
for some loan losses, management believes the bank is generally well secured and
continues to actively work with these customers to effect payment. The Company
had no nonaccrual or restructured loans at March 31, 2000.
10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Loan Portfolio (Continued)
As of March 31, 2000 the Company did not hold any real estate that was acquired
through foreclosure.
Allowance for Loan Losses
Management evaluates the loan portfolio in light of national and local
economic trends, changes in the nature and value of the portfolio and industry
standards. Specific factors considered by management in determining the adequacy
of the level of the allowance include internally generated loan review reports,
past due reports, historical loan loss experience and individual borrower's
financial health. This review also considers concentrations of loans in terms of
geography, business type or level of risk. Management evaluates nonperforming
loans relative to their collateral value and makes the appropriate adjustments
to the allowance when needed.
The provision for credit losses and changes in the allowance for loan losses
are shown in Note 4, Page 7.
The allowance for credit losses of $1,127,000 at March 31, 2000 was up
$37,000 from its level at December 31, 1999. The allowance was equal to .78% of
total loans at March 31, 2000 and December 31, 1999. The Company believes that
its allowance should be viewed in its entirety and, therefore, is available for
potential credit losses in its entire portfolio, including loans, credit related
commitments and other financial instruments. In the opinion of management, the
allowance, when taken as a whole, is adequate to absorb reasonably estimated
credit losses inherent in the Company's portfolio.
Deposits and Long-Term Debt
The Company's main source of funds is customer deposits received from
individuals, governmental entities and businesses located within the Company's
service area. Deposit accounts include demand deposits, savings, money market
and certificates of deposit. The Company realized annualized deposit growth of
21.38% in the first quarter of 2000. This increase was mainly in the area of
time deposits.
Borrowings from the Federal Home Loan Bank of Atlanta (FHLB) continue to be
an important mechanism in funding real estate loan growth in the area. The
Company's subsidiary bank borrows funds on a fixed rate basis. These borrowings
are used to fund either a fifteen-year fixed rate loan or a twenty-year loan, of
which the first ten years have a fixed rate. This program allows the Bank to
match the maturity of its fixed rate real estate portfolio with the maturity of
its debt and thus reduce its exposure to interest rate changes. Due to the
higher rates charged by the FHLB and funds generated from increased deposits, no
additional funds have been borrowed in 2000. Scheduled repayments have totaled
$833,000 in the first quarter of the year.
11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Capital
The Company maintains a strong capital base to expand facilities, promote
public confidence, support operations and grow at a manageable level. As of
March 31, 2000, the Company's total risk based capital and total capital to
total assets ratios were 18.77% and 12.83%, respectively. Both ratios are in
excess of regulatory minimums and exceed the ratios of the Company's peers.
Earnings have been sufficient to allow an increase in dividends in 2000 and
management has no reason to believe this increased level of dividends will not
continue
Liquidity
Liquidity is the ability to meet present and future financial obligations
through either the sale or maturity of existing assets or the acquisition of
additional funds through liability management. Liquid assets include cash,
interest bearing deposits with banks, federal funds sold, investments and loans
maturing within one year. The Company's ability to obtain deposits and purchase
funds at favorable rates determines its liquidity exposure. As a result of the
Company's management of liquid assets and the ability to generate liquidity
through liability funding, management believes that the Company maintains
overall liquidity sufficient to satisfy its depositors' requirements and meet
its customers' credit needs.
Additional sources of liquidity available to the Company include, but are
not limited to, loan repayments, deposits obtained through the adjustment of
interest rates and purchases of federal funds. To further meet its liquidity
needs, the Company also maintains lines of credit with correspondent financial
institutions. The Company's subsidiary bank also has a line of credit with the
Federal Home Loan Bank of Atlanta that allows for secured borrowings. In the
past, growth in deposits and proceeds from the maturity of investment securities
has been sufficient to fund most of the net increase in loans and investment
securities.
Interest Rate Sensitivity
Liquidity as of March 31, 2000 remains adequate. The Bank historically has
had a stable core deposit base and, therefore, does not have to rely on volatile
funding sources. Because of the stable core deposit base, changes in interest
rates should not have a significant effect on liquidity. During 2000, the Bank
has used maturing investments and deposit growth to meet its liquidity needs.
The Bank's membership in the Federal Home Loan Bank System also provides
liquidity, as the Bank borrows money that is repaid over a ten-year period and
uses the money to make fixed rate loans. The matching of the long-term
receivables and liabilities helps the Bank reduce its sensitivity to interest
rate changes. The Company reviews its interest rate gap periodically and makes
adjustments as needed.
There are no off-balance-sheet items that will impair future liquidity.
Table II (page 14) contains an analysis, which shows the repricing
opportunities of earning assets and interest bearing liabilities as of March 31,
2000.
As of March 31, 2000, the Company had a cumulative Gap Rate Sensitivity Ratio
of (12.82%) for the one year repricing period. This generally indicates that
earnings would improve in a declining interest rate environment as liabilities
reprice more quickly than assets. Conversely, earnings would probably decrease
in periods during which interest rates are increasing. However, in actual
practice, this may not be the case as deposits may not reprice concurrently with
changes in rates within the general economy. Management constantly monitors the
Company's interest rate risk and has decided the current position is acceptable
for a well-capitalized community bank operating in a rural environment.
12
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Stock Repurchase
On April 20, 2000, the Company announced that the Board of Directors had
authorized the repurchase of up to 50,000 shares of the Company's outstanding
common stock. Repurchases are authorized to be made by the Company from time to
time in the open market or privately negotiated transactions during the next
twelve months as, in the opinion of management, market conditions warrant. The
repurchased shares will be held as unissued stock and will be available for
general corporate purposes.
Effect of Newly Issued Accounting Standards
The Company does not believe that any newly issued but as yet unapplied
accounting standards will have a material impact on the Company's financial
position or operations.
Securities and Exchange Commission Web Site
The Securities and Exchange Commission maintains a Web site that contains
reports, proxy and information statements and other information regarding
registrants that file electronically with the Commission, including F & M Bank
Corp., and the address is (http://www.sec.gov).
13
TABLE 1
F & M BANK CORP.
NET INTEREST MARGIN ANALYSIS
(ON A FULLY TAXABLE EQUIVALENT BASIS)
(Dollar Amounts in Thousands)
Three Months Ended Three Months Ended
March 31, 2000 March 31, 1999
-------------------- -----------------
Average Income/ Average Income/
Balance 2 Expense Rates Balance 2 Expense Rates
Interest Income
Loans 1 $141,388 $ 3,099 8.79% $131,900 $2,901 8.80%
Federal funds sold 1,103 16 5.93 3,248 38 4.68
Interest bearing
deposits 1,249 14 4.61 951 10 4.21
Investments
Taxable 3 30,161 486 6.45 34,048 504 5.92
Partially
taxable 2,3 10,631 159 5.98 8,486 136 6.41
------- ---- ---- ----- ---- ------
Total Earning
Assets 184,532 3,774 8.18 178,633 3,589 8.04
------- ----- ---- ------- ----- ----
Interest Expense
Demand deposits 21,143 120 2.27 20,498 114 2.22
Savings 29,907 248 3.31 28,352 231 3.26
Time deposits 75,152 977 5.22 70,332 927 5.27
Short-term debt 6,632 85 5.13 6,658 69 4.17
Long-term debt 17,999 245 5.46 21,304 288 5.41
------ ------ ---- ------ ----- -----
Total Interest
Bearing
Liabilities $150,833 $ 1,675 4.44 $147,144 $1,629 4.43
======== ------- ---- ======== ------ ----
Net Interest
Margin 1 $ 2,099 $1,960
======= ======
Net Yield on Interest
Earning Assets 4.55% 4.39%
==== ======
1 Interest income on loans includes loan fees
2 An incremental income tax rate of 34% was used to calculate the tax
equivalent income on nontaxable and partially taxable investments.
3 Average balance information is reflective of historical cost and has not
been adjusted for changes in market value.
14
TABLE II
F & M BANK CORP.
INTEREST SENSITIVITY ANALYSIS
MARCH 31, 2000
(In Thousands of Dollars)
0 - 3 4 - 12 1 - 5 Over 5 Not
Months Months Years Years Classified Total
Uses of Funds
Loans:
Commercial $15,397 $ 2,324 $11,578 $ 311 $ $29,610
Installment 103 707 16,563 1,169 18,542
Real estate 11,584 9,509 53,706 20,511 95,310
Credit cards 967 967
Interest bearing
bank deposits 1,309 1,309
Investment securities 3,200 28,289 121 15,270 46,880
Federal funds sold 99 99
------ ------ ------ ------ ----- ------
Total 29,459 15,740 110,136 22,112 15,270 192,717
------ ------ ----- ------ ------ ------
Sources of Funds
Interest bearing
demand deposits 6,049 12,090 3,020 21,159
Regular savings 6,026 18,076 6,026 30,128
Certificates of
deposit $100,000
and over 1,316 3,176 4,685 9,177
Other certificates of
deposit 13,723 33,212 21,556 68,491
Short-term borrowings 6,089 6,089
Long-term debt 320 2,107 15,288 17,715
------ ------ ------ ------ ----- ------
Total 21,128 48,783 58,514 24,334 152,759
------- ----- ------ ------ ------ ------
Discrete Gap 8,331 (33,043) 51,622 (2,222) 15,270 39,958
Cumulative Gap 8,331 (24,712) 26,910 24,688 39,958
Ratio of Cumulative Gap 4.32% (12.82)% 13.96% 12.81% 20.73%
to Total Earning Assets
Table II reflects the earlier of the maturity or repricing dates for
various assets and liabilities at March 31, 2000. In preparing the above table
no assumptions are made with respect to loan prepayments. Loan principal
payments are included in the earliest period in which the loan matures or can be
repriced. Principal payments on installment loans scheduled prior to maturity
are included in the period of maturity or repricing. Proceeds from the
redemption of investments are included in the period of maturity. Estimated
maturities of deposits, which have no stated maturity dates, were derived from
guidance contained in FDICIA 305.
15
Part II Other Information
Item 1. Legal Proceedings - Not Applicable
Item 2. Changes in Securities - Not Applicable
Item 3. Defaults Upon Senior Securities - Not Applicable
Item 4. Submission of Matters to a Vote
of Security Holders - Not applicable
Item 5. Other Information - Not Applicable
Item 6. Exhibits and Reports on 8-K
(a) Exhibits
3 i Articles of Incorporation of F & M Bank Corp. are
incorporated by reference to Exhibits to F & M Bank
Corp.'s Form S14 filed February 17, 1984.
3 ii Bylaws of F & M Bank Corp. are incorporated by reference
to Exhibits to F & M Bank Corp.'s Form S14 filed
February 17, 1984.
21 Subsidiaries of the small business issuers are incorporated
by reference to Exhibits to F & M Bank Corp.'s 1998 Form
10-KSB filed March 31, 2000.
27 Financial Data Schedule attached.
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K for the quarter
ending March 31, 2000.
16
EXHIBIT INDEX
Exhibit
Index Page Number
27 Financial Data Schedule for the quarter
ending March 31, 2000 18
17
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
F & M BANK CORP.
JULIAN D. FISHER
Julian D. Fisher
President and Chief Executive Officer
NEIL W. HAYSLETT
Neil W. Hayslett
Vice President and Chief Financial Officer
Date May 11, 2000