The Early Years
F&M Bank has been serving the citizens of Hannibal and the surrounding area longer than any other financial institution in Northeast Missouri.
Since the bank's charter in 1870, F&M Bank has maintained a record of strong leadership in the region. Its record of safety for depositor’s money, sound banking principles and availability of legitimate loans for worthwhile projects has been outstanding.
Five men were instrumental in starting the bank: J.M. Armstrong, John H. Garth, George A. Hawes, A.W. Lamb, and A. R. Levering. They let it be known that the bank would be formed and stock could be purchased. Fifty-two investors pledged $175,000 needed. At the stockholders meeting in January 1871, all five men were elected to the Board of Directors along with J.P. Richards, and William R. Pitts.
In 1870 the bank was incorporated as a stock company and was capitalized with $200,000.
Farmers & Merchants Bank opened for business on January 10, 1871. The first bank location was at 205 North Center Street. Right next-door was the competition, the Savings Bank of Hannibal.
Within the first six months the bank was off to a good start, and the end of year statement showed assets of $2,221,597. From the beginning, the bank became known as a reliable and safe banking institution, a reputation well earned over the years.
After only three years of operation the bank purchased property on the corner of Main and Center streets and erected a new Italianate-style bank building. Today you can still see the F&M Bank inscribed into the building’s front steps.
While the success of Farmers & Merchants Bank was building, their eventual merger partner, Marion County & Mutual Building & Loan, was chartered in 1886 as Missouri Mutual Savings Association. According to the Hannibal Mirror, the original location was at 206 Broadway. Early records of the bank's history are somewhat vague due to many Mutuals, at that time, not being open during normal hours of business (i.e. open in evenings on certain days of the week). The Association was capitalized by 46 subscribers who bought 318 shares at $200 per share or equity of $63,600.
The 1890's was a time of continued growth and change for both parties. For Missouri Mutual Savings Association moved its location to 509 Broadway, located inside the Plowman & Greenville real estate offices. This location is physically where F&M Bank and Trust Company operates today. Farmers & Merchants Bank, after operating privately for 25 years, also had a change. After applying for incorporation as a public State Bank, they officially became a State Bank in 1896.
Mark Twain Visits Farmers & Merchants in 1902
All of the members of the original Board of Directors of Farmers & Merchants Bank were living in Hannibal during the time that Mark Twain was living in the city and were known by the famous author. Several were close boyhood friends. On May 31, 1902 when Mark Twain made his last visit to Hannibal, he went to the Farmers & Merchants Bank at Main and Center Street to visit some of his old cronies who had assembled there.
1909 became a milestone year for Farmers & Merchants as they opened a Savings Account Department. Up to this point in their history they had just offered checking accounts, time deposits, discounted loans and foreign exchange.
Building a New Bank at 214 Broadway
In 1911 more space was needed for Farmers & Merchants, and the Directors made a decision to move their location to 214 Broadway. The impressive new bank was designed in neo-classical style with four giant columns. The massive appearance gave an immediate impression of the institution’s stability, permanence and safety. The total cost for building, furnishings, vault and land was $62,500.
When war was declared on Germany on April 6, 1917, banks throughout the nation were called on to buy and sell Liberty Loan Bonds.
Farmers & Merchants Bank established a Trust Department in 1927. The bank name was then changed to Farmers & Merchants Bank and Trust Company. It operated under this name until 1958.
In 1934 Farmers & Merchants joined the temporary Federal Deposit Insurance Corporation, and became a member of the Federal Reserve Banking System.
Again, while Farmers & Merchants was continually growing, MCM along with Plowman & Greenville moved to another new location at their last location under that name. Both businesses operated on the first floor and rented out the rest of the building at 3rd and Broadway in 1938 (228 Broadway).
During World War II the banks part in the war effort was very similar to what it had done in World War I – they bought and sold war bonds.
In 1945 a Small Loans Department was opened by Farmers & Merchants to provide loans for automobiles, appliances and personal needs.
As of 1948 both institutions were battling with other competition in Hannibal. There were six saving associations (American, Bluff, Clayton, Mark Twain, Hannibal, & MCM) and three banks (Hannibal National, American Trust, & Farmers & Merchants). MCM was the smallest deposit bank in Hannibal.
Even before the equal merger F&M and MCM shared things in common. About this time is when F&M and MCM directors served on both boards. Those doing so included Mr. James Fisher, both Mr. G.H. Riedel and his son H.G. Riedel, Bayard Plowman, as well as, Mr. Ben Hickman while Chairman of F&M Bank was also director of MCM.
The 1950's: Important Chapters for Both Banks
Starting the decade off right in 1951, another Farmers & Merchants charter provided for them to operate perpetually.
1952 was an important year for MCM. They applied for membership in Federal Home Loan Bank system and received deposit insurance for the first time from the Federal Savings Loan Insurance Company. This momentum carried into 1953 and 1954 as F&M issued their first CDs at a rate of 2.5% and MCM went over $1 million in total assets.
Bank Modernization: 1960's style
In the 1960’s both banks saw some landmark changes. The first drive thru was built on the east side of 214 Broadway for Farmers & Merchants, and MCM began establishing their first bank branches. 1960 was the first established bank branch for MCM when they merged with Monroe city Savings & Loan in Monroe City, MO. In 1967, F&M contracted with Citizens Data Center in Quincy, IL for computerized bookkeeping. This same year employee profit sharing was implemented, and the student loan program was adopted. In 1969 MCM was at it again merging with Shelbina Building and Loan in Shelbina, MO to establish its second branch.
1970's: Another Decade of Growth
In July of 1970 F&M moved to its new location on the corner of Broadway and Fifth Streets. Martin Construction of Hannibal built the modern one story structure. Total cost of the property, building and furnishings was $357,572.72. The Open House for the new facility was combined with the 100th Anniversary celebration on October 4, 1970.
In the early 70’s the Directors of F&M wanted more growth and started searching for a location for a branch bank, preferably in the Northwest part of the city.
In 1972 the bank first began sponsoring the Hannibal Pet Parade and Pet Show, held during Tom Sawyer Days.
Flooding Can't Stop a Growing Bank
In 1973 the Mississippi River flooded high above any previously known flood. Hannibal National Bank’s vaults were under water and could not be accessed. Farmers & Merchants Bank loaned cash to Hannibal National Bank who opened an emergency banking operation outside the flooded area. Farmers and Merchants also provided them with vault space until water receded. The flood did not drown MCM's growth as they established a de novo (new start up) branch in Bowling Green, MO in that same year.
In 1974 the F&M entered into an agreement with Diebold Bank Equipment to provide deposit boxes so customers could bank at any time without the assistance of a teller.
Throughout the 70's F&M's board stayed busy. In 1975 the government established the Equal Rights law to eliminate discrimination, and the board adopted a policy to endorse it. Employee sick leave and vacation policies were also implemented that year. In 1978 the board adopted an Affirmative Action policy. This policy assured non-discrimination in employment and loans because of race or sex. That same year several important title changes were made. The former title of President was changed to Chairman of the Board. The Executive Vice President/CEO became the President of the Bank.
Again at the end of the decade in 1979, MCM established another de novo (new start up) branch in Palmyra, MO.
80's: Not just the "Big Hair" era
During the 1980s there were increasing numbers of government rules and regulations, which all banks were required to follow. It was also a period of time in which increased economic inflation and high interest rates ran almost unchecked. This brought greater profits for the bank, but created many problems for management. At the same time agriculture and factory production was declining and unemployment was increasing. Fortunately, during this trying time, the experience and conservatism of F&M's board and management of the bank successfully steered the bank to further solid growth. It was during this period that Farmers & Merchants adopted Money Market Accounts and NOW Checking Accounts that were very well received by customers.
1980 marked the year the Farmers & Merchants location at #2 Melrose near the Huck Finn Shopping Center was purchased and converted into a branch facility. An Open House was held in August of 1982, and this branch proudly opened the first Automated Teller Machine (ATM) in Hannibal. In 1981 the automated teller machine became so full over Tom Sawyer Days that the bank had to install a larger machine. IRA's started at this point in time and Bill Payers Accounts were established.
Also in 1980 while Farmers & Merchants were closing on the new branch facility, MCM merged yet again with Memphis Building & Loan establishing a bank branch in Memphis, MO.
90's: Surviving Bank Failures
A few large bank failures in the early 1990s caused FDIC insurance fees to double for all banks. Local healthy banks were dismayed because they ended up paying for the mistakes of larger banks. The larger concern was that costs would be passed on to innocent customers.
1991 was another milestone year for MCM. They converted from a state mutual to a federal savings bank through the sale of 177,753 shares of stock which booked at $10 a share.
In 1994 Farmers and Merchants entered into an agreement with Money Concepts and began offering full scope Investment Services to their customers, while MCM established a Mortgage Banking Department.
In February of 1998 Farmers & Merchants opened another branch office serving customers in the southern part of Hannibal, off Highway 61 on Market Street. To this day many of the original employees are still serving at the bank - the only bank in Oakwood.
The Riedel Foundation
In 2000, long time Farmers & Merchants Bank Board Member and businessman George H. Riedel passed away, and the Reidel Foundation was formed. This private foundation provides yearly scholarships and grants to worthy recipients with a special focus on Hannibal’s economic well-being and young people.
In 2001 Farmers & Merchants opened an office in Quincy, IL, and MCM delisted as publicly traded company.
In 2002 the Horizons Club was formed by Farmers & Merchants for members 55 and above to allow social, educational and travel opportunities as well as special banking benefits.
While both banks were still expanding, in 2003 F&M purchased, renovated and moved part of the staff and Trust Department into what is now called the F&M Bancorp Building at 515 Broadway. The F&M Bancorp Building shares a parking lot with F&M Bank and Trust Company at 505 Broadway to this day. The bank, realizing the growth in Internet, launched their first website near this time.
To stop a consecutive streak of mergers and new branches, MCM tried their hand at sales in 2004 when they sold the Memphis, MO branch.
In 2005 online web-based banking, and online mortgage loan applications were offered to F&M customers. The bank also opened a branch office in O’Fallon, MO to help take care of customers in this rapidly growing region.
Merger and name change to F&M Bank and Trust Company
In 2006 MCM Savings Bank and Farmers and Merchants Bank and Trust equally merged to form F&M Bank and Trust Company. For over 50 years, the MCM offices were housed in the historic bank building at 228 Broadway. This added three additional bank locations in Palmyra, Monroe City and Shelbina, MO.
As the oldest bank in Northeast Missouri, F&M’s record of safety in handling customer’s funds, returns to stockholders, prudent investments, sound management practices, and assisting with community projects have made it highly respected throughout the region as well as banking circles in the Missouri. To this day F&M Bank and Trust Company still emerges as the leader of banking services in Northeast Missouri.
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