Financial Condition

Dear Valued Clients:

2015 was an eventful year at Security Savings Bank and F & M Bank.  On January 1, 2015 SSB merged with F & M Bank.  Both banks have been affiliated for 36 years under common ownership and have shared various resources.  As with most mergers, it wasn't without a hiccup or two along the way but together we worked through them, keeping the best interest of you, our clients, in mind.  I am happy to report that there was no reduction in team members after the merger, just a realignment of some duties.  As you have seen, the same people are here to assist you with your banking needs.   We have also been able to share ideas and procedures between the banks to ultimately improve your client experience.

Throughout the year our team continued to support our local markets through countless volunteer hours and monetary donations, together helping make our communities a better place to live.  In addition to the bank’s support of various non-profits and charities, our team members individually have continued to support their neighbors and community members through our Jeans for Charity program, Backpack Program and Coats for Kids, just to name a few.  It is always impressive to see the care and concern they show for the well-being of our communities.

Our Ag Economy continues to adjust to narrowing margins as sagging market prices seem to be the theme.  Input costs for our area growers have been adjusting downward along with fuel prices.  Both of these areas are proving to provide a more positive position in 2016 on a per acre basis.  Every bushel and every dollar are much needed in today’s Ag world.  Moving forward in 2016, sound business decisions and management practices will be key in staying on the progressive side of agriculture.

When looking at the balance sheet, there is significant growth in all categories due to the merging of the Banks in 2015.  However when looking at the actual growth of the combined banks in 2015, we experienced a 5.4% increase in loans and small decrease in deposits of 0.87% due primarily to the low interest rate environment.  With excellent earnings, our equity and reserves, which represents our strength to support our clients, increased to nearly $63 million.  Our growth has been prudent and conservative, as we want to continue to be a very sound and stable partner for our valued clients.

2015 was an excellent year – all made possible with your continued trust and loyalty to our bank and our committed team at work every day to exceed your expectations.  We appreciate your continued support and recognize that we will not succeed unless you do.  Thank you and best wishes for an outstanding 2016.



Kent J. Rutherford
Market President