2022 Journal of Case Studies

2022 COMMUNITY BANK CASE STUDY COMPETITION

1 ST PLACE

James Madison University

The Changing Banking Environment from the Past Decade to the Next: A Study of Farmers and Merchants Bank

Students: Collin Blanchard Sara Kate Garman Nicolas Gonzalez Emelia Potteiger Noah Vanhoy Faculty Advisor: Dr. Carl Larsson

Section I: Financial Analysis Section I.1: Overview

We conduct a financial analysis of F&M Bank over the past 5 years using the 2021 Form 10-K filing and data from the Uniform Bank Performance Report. We also present details from discussions with the executive management team. 1 We compare F&M’s financials to a peer group of community banks located in the Shenandoah Valley based on an index of zip codes, asset size, and geographic scope. We create our own peer group of Shenandoah Valley community banks to allow for more comparable averages, as the UBPR is not geographically limited to this regional area and the asset size has a larger range. Our findings suggest that F&Mmust facilitate loans to increase the loan-to-deposit ratio as well as take advantage of the higher rate environment to improve earned interest income. F&Mmust monitor profitability in the coming years when moving from post-pandemic tailwinds.

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