2020 Journal of Community Bank Studies

2020 COMMUNITY BANK CASE STUDY COMPETITION

2 ND PLACE James Madison University

The Bank Secrecy Act in the 21 st Century: A Study of Farmers and Merchants Bank

Students: Manushree Bhatt Homer Eliades Henry Haas Daniel Horowitz Alexis Kakar Faculty Advisor: Dr. Carl Larsson

Financial Analysis 1.1 Section Overview

In this section, we conduct a financial analysis of F&M Bank ($813 million in total assets). To do this, we analyze data from its Uniform Bank Performance Report and 2019 Form 10-K filing. Additionally, we present details from our discussion with the executive management team. Our findings suggest that F&M Bank’s active loan portfolio and effective working capital management offset high BSA compliance costs. We now present these findings in more detail. 1.2 Earnings Performance Our analysis of F&M Bank’s income statement reveals sound profitability defined by a 2.36% average Year-Over-Year (YOY) growth

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