F&M Bank might restore flooded branch

F&M Bank might yet decide to restore its flood-damaged branch at 200 First St. SW, which has been limited to drive-up service since December 2008.

F&M President Michael Dunn said in a recent mailing to clients that the bank has been “dusting off the plans for the refurbishing of the main floor downtown,” adding that “We hope to have a decision made very soon in regard to this and look forward to getting a full-service operation downtown soon.”

After the record Cedar River flood of June 2008, the bank initially thought the property would be acquired for construction of a flood control levee. It restored operation of the drive-through facility, and began searching for another site on Cedar Rapids' west side.

Dunn told The Gazette it's now less clear whether the property will be taken for a new river levee, and the bank hasn't found other property.

“We can't find a location we like as well as that, just for logistics to service the west side,” Dunn said. “It's a very user-friendly location.”

F&M probably will wait about a year before it makes a final decision on restoring the main floor lobby and offices of the downtown branch, Dunn said.

“Basically, we're being told nothing will happen for a year until the Corps of Engineers comes back with a report,” Dunn said. “We're kind of in a quandary. If we remodel the main floor, we could be throwing dollars away.”

That will mean a three-year wait for the information needed to decide the branch's fate. Dunn said the bank considers that a mere inconvenience compared with the struggles many flood-affected businesses are facing.

The bank shifted most of its operations from the downtown branch to its branch at 4000 First Ave. NE after the 2008 flood. That's working out, Dunn said, although it's been cozier than he might prefer at times.

F&M Bank was pleased with its 2009 financial performance, Dunn said. Assets grew by 11.5 percent, loans grew 9.25 percent and deposit increased 12.5 percent. Small-business loans make up the largest chunk of F&M's portfolio. Dunn said the bank's bad loan problems have been small in comparison to the problems seen nationwide.

F&M is based in Manchester and has a branch in Anamosa in addition to the Cedar Rapids branches.