F&M Bank - Atlantic

Gloucester, VA · Cert 27554

FDIC

Q4 2001

$423.4MAssets

$213.8MLoans

$380.2MDeposits

$39.9MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of -0.03%, down 131 bps year over year; NIM at 3.37%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.96%.
Funding: loans stand at 56.24% of deposits as of Q4 2001.

Return on Assets (YTD, annualized)

-0.03%-131 bps YoY

Net Interest Margin (YTD, annualized)

3.37%

Efficiency Ratio (YTD, annualized)

83.04%

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	1.26%	1.34%	1.27%	1.28%	0.99%	0.49%	-0.67%	-0.03%	-131 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	3.75%	3.63%	3.59%	3.37%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	66.54%	85.63%	89.72%	83.04%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	2.31%	3.03%	3.16%	2.71%	n/a
Growth
Asset Growth (YoY)	7.22%	7.04%	10.56%	87.46%	88.24%	83.59%	75.87%	4.49%	-8,297 bps
Loan Growth (YoY)	8.39%	7.15%	6.38%	64.70%	60.15%	56.11%	52.27%	-4.94%	-6,964 bps
Deposit Growth (YoY)	7.56%	7.10%	10.57%	81.02%	83.33%	79.00%	71.66%	6.40%	-7,461 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	0.28%	1.56%	1.17%	0.96%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	1.32%	0.79%	2.87%	2.87%	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	16.47%	15.71%	15.24%	16.72%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	10.34%	10.07%	9.71%	9.42%	n/a
Liquidity & Funding
Loans / Deposits	69.02%	68.71%	68.63%	62.95%	60.30%	59.92%	60.88%	56.24%	-671 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	2.77%	2.83%	0.64%	0.62%	+62 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a