F & M Bank-Northern Virginia

Fairfax, VA · Cert 25865

FDIC

Q4 2001

$979.7MAssets

$531.9MLoans

$810.6MDeposits

$70.3MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of 0.45%, down 95 bps year over year; NIM at 3.85%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.16%.
Funding: loans stand at 65.61% of deposits as of Q4 2001.

Return on Assets (YTD, annualized)

0.45%-95 bps YoY

Net Interest Margin (YTD, annualized)

3.85%

Efficiency Ratio (YTD, annualized)

81.42%

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	Q4 2001	YoY Δ	Trend
Earnings
Return on Assets	1.37%	1.35%	1.39%	1.40%	1.39%	1.10%	0.06%	0.45%	-95 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	4.20%	4.07%	3.95%	3.85%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	58.47%	66.16%	89.03%	81.42%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	1.91%	2.25%	3.37%	2.87%	n/a
Growth
Asset Growth (YoY)	7.03%	11.65%	10.36%	12.32%	19.46%	14.52%	15.20%	13.73%	+141 bps
Loan Growth (YoY)	10.30%	14.51%	18.91%	15.26%	14.21%	14.56%	6.89%	9.66%	-560 bps
Deposit Growth (YoY)	4.67%	8.93%	8.35%	12.69%	17.15%	14.23%	14.61%	16.97%	+428 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	0.10%	0.31%	0.21%	0.16%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	1.09%	0.96%	1.60%	1.53%	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	13.16%	12.78%	12.36%	12.76%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	7.18%	7.09%	7.00%	7.18%	n/a
Liquidity & Funding
Loans / Deposits	68.46%	68.36%	70.00%	69.98%	66.74%	68.55%	65.29%	65.61%	-437 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	17.76%	10.43%	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