The Virginia community bank reports balance sheet growth alongside Fauquier County expansion plans.

April 30, 2026

Timberville, Virginia–based F&M Bank Corp. (OTCQX: FMBM), the parent company of Farmers & Merchants Bank, reported a 31.3% year-over-year increase in first-quarter 2026 net income, alongside meaningful growth in assets, loans, and deposits compared with both the prior quarter and the year-earlier period.

The Company posted net income of $3.23 million, or $0.91 per share, for the quarter ended March 31, 2026, up from $2.88 million, or $0.81 per share, in the fourth quarter of 2025, and $2.46 million, or $0.70 per share, in the first quarter of 2025. Return on average assets climbed to 0.94%, while return on average equity reached 12.18% — improvements over both comparison periods.

CEO Mike Wilkerson attributed the strong start to a continuation of momentum from 2025, pointing to consistent execution across a diversified business model and disciplined balance sheet management. He noted that the Company has recruited experienced bankers into key roles as its reputation as a community bank has spread — depth he called vital as F&M prepares to expand into Fauquier County. Wilkerson also highlighted longstanding strengths in agricultural, commercial, and mortgage lending, with growing emphasis on commercial real estate.

Balance Sheet Growth Across the Board

Total assets reached $1.41 billion at quarter-end, up $35.2 million, or 2.56%, from December 31, 2025. Net loans held for investment grew $10.6 million, or 1.2%, to $896.9 million.

Loan growth was concentrated in several categories, partially offset by declines elsewhere:

• Increases: residential mortgages (+$8.4M), multifamily residential (+$6.4M), commercial and industrial (+$4.4M), farmland (+$2.9M), and other construction and land development (+$2.8M)
• Decreases: owner-occupied commercial real estate (-$6.7M), residential construction (-$4.3M), and automobile loans (-$7.2M)

Total deposits climbed to $1.28 billion, an increase of $29.9 million, or 2.40%, from year-end 2025, with noninterest-bearing deposits up 3.92% and interest-bearing deposits up 1.96%. Investment securities rose to $350.5 million, with new bond purchases averaging a 4.71% yield.

Margin Expansion and Lower Funding Costs

Net interest income totaled $11.43 million, up 3.34% from the prior quarter and 21.02% year-over-year. Net interest margin widened to 3.56%, compared with 3.4% in the fourth quarter and 3.15% a year earlier. Cost of funds declined to 1.94% — a 36 basis-point reduction from the year-ago period — driven by a shift away from higher-cost time deposits toward interest checking and money market accounts.

The Bank recorded a $309,000 provision for credit losses, down sharply from the $1.1 million provision in the fourth quarter on lower net charge-offs, partly offset by loan growth. Noninterest income reached $2.9 million, supported by gains in wealth management and title insurance, while noninterest expenses rose to $10.3 million on higher compensation, legal and professional fees, and data processing costs.

Asset Quality and Capital Position

Asset quality metrics improved during the quarter:

• Nonperforming loans fell to 0.54% of total loans, down from 0.68% at year-end 2025
• Net charge-offs as a percentage of average loans dropped to 0.09%, from 0.50% in the prior quarter
• The allowance for credit losses on loans rose modestly to $7.9 million

Shareholders’ equity grew 1.83% to $106.7 million, lifting book value per share to $29.98 from $29.46 at year-end. Liquid assets totaled $313.9 million, or 22.28% of total assets, with additional off-balance sheet borrowing capacity available through federal funds lines, the Federal Home Loan Bank, and the Federal Reserve discount window.

Dividend Declared

The Board of Directors declared a quarterly dividend of $0.26 per share, payable May 29, 2026, to shareholders of record as of May 15, 2026. Based on the recent trading price of $31.45 per share, the dividend represents an annualized yield of approximately 3.31%.

F&M Bank Corp., founded in 1908, operates fourteen banking offices across the Shenandoah Valley and is the only publicly traded company headquartered in Rockingham County, Virginia.