F & M Bank - Massanutten

Harrisonburg, VA · Cert 22035

FDIC

Q4 2001

$277.8MAssets

$212.2MLoans

$234.3MDeposits

$23.2MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of 1.30%, down 10 bps year over year; NIM at 3.53%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 1.85%.
Funding: loans stand at 90.56% of deposits as of Q4 2001.

Return on Assets (quarter, annualized)

1.30%-10 bps YoY

Net Interest Margin (quarter, annualized)

3.53%

Efficiency Ratio (quarter, annualized)

49.66%

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	Q4 2001	YoY Δ	Trend
Earnings
Return on Assets	1.44%	1.45%	1.44%	1.40%	1.15%	-0.78%	-0.02%	1.30%	-10 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	-9.43%	-0.30%	15.66%	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	3.67%	3.62%	3.23%	3.53%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	51.20%	72.55%	75.01%	49.66%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	1.60%	2.46%	2.29%	1.49%	n/a
Growth
Asset Growth (YoY)	11.18%	8.96%	12.08%	8.77%	4.03%	-0.64%	-5.06%	-3.49%	-1,226 bps
Loan Growth (YoY)	11.90%	9.77%	10.35%	3.96%	1.11%	-6.39%	-9.70%	-5.20%	-916 bps
Deposit Growth (YoY)	9.04%	12.04%	17.06%	15.26%	6.73%	1.33%	-5.45%	-2.49%	-1,775 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	0.54%	5.91%	0.52%	1.85%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	1.26%	0.61%	0.84%	0.47%	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	11.57%	10.96%	11.47%	11.49%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	8.33%	8.15%	8.25%	8.35%	n/a
Liquidity & Funding
Loans / Deposits	99.50%	100.83%	94.02%	93.16%	94.26%	93.14%	89.79%	90.56%	-259 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	2.90%	2.76%	0.00%	0.00%	0 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a