F&M Bank Corp. Reports First Quarter 2026 Earnings and Quarterly Dividend
Rhea-AI Summary
F&M Bank Corp (OTCQX:FMBM) reported first quarter 2026 net income of $3.23M ($0.91/share), up 31.3% year‑over‑year and 11.9% linked quarter. Total assets were $1.41B, loans $896.9M, deposits $1.28B. Net interest margin was 3.56%. Board declared a quarterly dividend of $0.26 per share, payable May 29, 2026.
Asset quality improved: nonperforming assets were $4.85M (0.34% of assets); ACLL totaled $7.9M. Liquidity totaled $313.9M (22.28% of assets).
Positive
- Net income +31.3% YoY to $3.23M
- Net interest margin increased to 3.56%
- Total assets rose to $1.41B (2.56% linked quarter)
- Deposits grew to $1.28B (2.40% linked quarter)
- Improved asset quality: NPA down to $4.85M
- Quarterly dividend declared at $0.26 per share
Negative
- Noninterest expenses increased to $10.3M (higher compensation)
- Unrealized securities losses rose to $21.8M
- Provision for credit losses of $309K (vs recovery prior year)
News Market Reaction – FMBM
In the Apr 29 session, FMBM gained 0.10%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net income rose
See associated, unaudited summary consolidated financial data for additional information.
TIMBERVILLE, VA / ACCESS Newswire / April 28, 2026 / F&M Bank Corp. (the "Company" or "F&M"), (OTCQX:FMBM), the parent company of Farmers & Merchants Bank ("F&M Bank" or the "Bank"), reported strong earnings for the quarter ended March 31, 2026.
Net income was
At March 31, 2026, the Company had total assets of
"This strong start to 2026 represents a continuation of the momentum we established in 2025," said CEO Mike Wilkerson. "First quarter earnings reflect consistent execution across a diversified business model that does not rely on any single driver for success, as well as our disciplined approach to balance sheet and interest rate management. We continue to focus on our core strengths, where long‑standing relationships and deep market knowledge are key differentiators for us. These strengths include agricultural, commercial, and mortgage lending, and increasingly commercial real estate lending.
"An important contributor to our strong performance has been our ability to attract experienced, high-quality talent. As our reputation as a strong community bank spreads, we have recruited veteran bankers into key roles. This experience and depth are vital to everyone we serve in the Shenandoah Valley and will be important as we establish a presence in Fauquier County.
"F&M has been growth‑oriented since the day we opened our doors in 1908, and that mindset remains central to who we are today. We consider it an obligation to pursue thoughtful, sustainable growth while serving our customers, communities, and shareholders. Our first quarter performance demonstrates the durability of our approach and positions us well to continue building on that momentum in the years ahead."
FIRST QUARTER HIGHLIGHTS
Key highlights for first quarter 2026 include:
Net income was
$3.23 million , or$0.91 per share, an increase of$343,000 , or11.9% , from fourth quarter 2025 and an increase of$769,000 , or31.3% , from first quarter 2025.Return on average assets was
0.94% for first quarter 2026, compared to0.83% for fourth quarter 2025 and0.76% for first quarter 2025. Return on average equity improved to12.18% , compared to10.99% for fourth quarter 2025.Net interest margin grew to
3.56% for first quarter 2026, compared to3.40% for fourth quarter 2025 and3.15% for first quarter 2025. Net interest income totaled$11.43 million , an increase of$369,000 , or3.34% , from the linked quarter and an increase of$2.0 million , or21.02% , from first quarter 2025.Total assets were
$1.41 billion as of March 31, 2026, an increase of$35.2 million , or2.56% , from$1.37 billion as of December 31, 2025. Net loans held for investment grew to$896.9 million , an increase of$10.6 million , or1.2% , during the quarter. Total deposits were$1.28 billion at quarter-end, increasing by$29.9 million , or2.40% , from December 31, 2025, with growth in both noninterest‑bearing and interest-bearing deposits.Asset quality continued to improve. Non-performing assets totaled
$4.85 million as of March 31, 2026, a decrease of$1.2 million , or19.77% , from December 31, 2025, and a decrease of$4.18 million , or46.27% , from March 31, 2025. Non-performing assets represented0.34% of total assets as of March 31, 2026, compared to0.44% as of December 31, 2025, and0.69% as of March 31, 2025.A provision for credit losses of
$309,000 was recognized during first quarter 2026, compared to a provision of$1.1 million in fourth quarter 2025 and a recovery of$104,000 in first quarter 2025.Book value per share and tangible book value per share¹ increased to
$29.98 and$29.10 , respectively, on March 31, 2026, representing linked‑quarter increases of1.77% and1.83% , respectively, and year‑over‑year increases of17.02% and17.65% , respectively.Liquidity remained strong, with cash and cash equivalents, unpledged investment securities, and loans held for sale totaling
$313.9 million on March 31, 2026, representing22.28% of total assets, compared to$289 million , or21.04% of total assets, at December 31, 2025.
FIRST QUARTER 2026 INCOME STATEMENT REVIEW
Overview
Net income for first quarter 2026 was
Net Interest Income
Net interest income totaled
Net interest margin grew to
Provision for Credit Losses
The Bank recorded a provision for credit losses of
Noninterest Income
Total noninterest income was
Noninterest Expenses
Noninterest expenses totaled
FIRST QUARTER 2026 BALANCE SHEET REVIEW
Total assets were
Investment securities increased
Total deposits were
Shareholders' equity increased
LIQUIDITY
On‑balance sheet liquid assets, including cash and cash equivalents, unpledged investment securities, and loans held for sale, totaled
In addition to on‑balance sheet liquidity, the Bank had access to significant off‑balance sheet liquidity sources. As of March 31, 2026, available unsecured federal funds lines totaled
LOAN PORTFOLIO
The Company's loan portfolio remains diversified. Residential mortgage loans totaled
Additional details regarding loan portfolio composition as of March 31, 2026, and for the preceding four quarters are provided under the heading "Loan Data" in the tables accompanying this release.
ASSET QUALITY AND ALLOWANCE FOR CREDIT LOSSES
Asset quality metrics continued to improve during first quarter 2026. Nonperforming loans as a percentage of total loans declined to
The allowance for credit losses on loans, or ACLL, totaled
DIVIDEND DECLARATION
On April 28, 2026, our Board of Directors declared a dividend of
1 Tangible book value per share is a non-GAAP financial measure. Further information can be found under the heading "Non-GAAP Financial Measures" and in the non-GAAP reconciliation table accompanying this release.
###
ABOUT US
F&M Bank Corp. is an independent, locally owned, financial holding company offering a full range of financial services through our subsidiary, Farmers & Merchants Bank's (F&M Bank), fourteen banking offices in Rockingham, Shenandoah, and Augusta counties, Virginia, and the cities of Winchester and Waynesboro, Virginia. The Company also owns VSTitle, a title company subsidiary. Founded in 1908 as a community venture to serve the farmers and merchants of the Shenandoah Valley, where both the Company and the Bank are headquartered, F&M Bank remains as committed as ever to the success of the agricultural industry, small business ventures, and the nonprofit sector. F&M's values, which are gregarious, resolute, original, and wholehearted (G.R.O.W.), combined with our brand pillars of sustenance, security, and enrichment, shape the Company's decision-making, philanthropy, and volunteerism. The only publicly traded organization based in Rockingham County, we offer a diverse suite of financial products and services, and a strong team dedicated to living our mission of being the financial partner of choice in the Shenandoah Valley, both today and tomorrow, as we have been since 1908. Additional information may be found by visiting our website, fmbankva.com.
NON-GAAP FINANCIAL MEASURES
The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible book value per share, to supplement the evaluation of the Company's financial condition and performance. Management believes presentation of these non-GAAP financial measures provides useful supplemental information that is essential to a proper understanding of the Company's operating results. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A definition of tangible book value per share is included in the footnotes to the table accompanying this release.
FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking statements" as defined by federal securities laws, which are subject to significant risks and uncertainties. These include statements regarding future plans, strategies, results, or expectations that are not historical facts, and are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "will," "estimate," "project" or similar expressions. These statements are based on estimates and assumptions, and our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Our actual results could differ materially from those contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in local and national economies or market conditions; changes in interest rates; regulations and accounting principles; changes in policies or guidelines; loan demand and asset quality, including values of real estate and other collateral; deposit flow; the impact of competition from traditional or new sources; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and the Bank's borrowers; and other factors. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.
FOR MORE INFORMATION, CONTACT
Lisa F. Campbell | EVP | Chief Financial Officer
540-896-1705
fmbankva.com
F&M BANK CORP. | ||||||||||||||||||||
Performance Summary | ||||||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
As of and for the Three Months Ended | ||||||||||||||||||||
3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||||
Selected Income Statement Data |
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Interest and dividend income | $ | 17,493 | $ | 17,622 | $ | 17,052 | $ | 16,812 | $ | 16,264 | ||||||||||
Interest expense | 6,064 | 6,562 | 6,557 | 6,285 | 6,820 | |||||||||||||||
Net interest income | 11,429 | 11,060 | 10,495 | 10,527 | 9,444 | |||||||||||||||
Provision for (recovery of) provision for credit losses | 309 | 1,079 | 539 | 1,187 | (104 | ) | ||||||||||||||
Net interest income after (recovery of) provision for credit losses | 11,120 | 9,981 | 9,956 | 9,340 | 9,548 | |||||||||||||||
Noninterest income | 2,897 | 2,798 | 2,734 | 2,792 | 2,847 | |||||||||||||||
Noninterest expenses | 10,313 | 9,462 | 9,321 | 8,712 | 9,524 | |||||||||||||||
Income tax expense | 478 | 434 | 445 | 455 | 414 | |||||||||||||||
Net Income | $ | 3,226 | $ | 2,883 | $ | 2,924 | $ | 2,965 | $ | 2,457 | ||||||||||
Key Performance Ratios | ||||||||||||||||||||
Return on average assets1, 6 | 0.94 | % | 0.83 | % | 0.87 | % | 0.91 | % | 0.76 | % | ||||||||||
Return on average equity1, 6 | 12.18 | % | 10.99 | % | 11.99 | % | 12.81 | % | 11.31 | % | ||||||||||
Net interest spread 6 | 2.95 | % | 3.35 | % | 3.31 | % | 3.45 | % | 3.13 | % | ||||||||||
Net interest margin 6 | 3.56 | % | 3.40 | % | 3.36 | % | 3.48 | % | 3.15 | % | ||||||||||
Yield on earning assets 6 | 5.44 | % | 5.42 | % | 5.45 | % | 5.56 | % | 5.43 | % | ||||||||||
Cost of funds 6 | 1.94 | % | 2.07 | % | 2.14 | % | 2.11 | % | 2.30 | % | ||||||||||
Noninterest income to average assets 6 | 0.85 | % | 0.81 | % | 0.82 | % | 0.86 | % | 0.88 | % | ||||||||||
Noninterest expense to average assets 6 | 3.01 | % | 2.73 | % | 2.78 | % | 2.68 | % | 2.96 | % | ||||||||||
Share and Per Share Data | ||||||||||||||||||||
Net income (basic and diluted) | $ | 0.91 | $ | 0.81 | $ | 0.82 | $ | 0.83 | $ | 0.70 | ||||||||||
Book value per share | 29.98 | 29.46 | 28.52 | 26.56 | 25.62 | |||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||||||
Assets | $ | 1,408,951 | $ | 1,373,757 | $ | 1,358,109 | $ | 1,311,924 | $ | 1,312,159 | ||||||||||
Securities available for sale | 350,506 | 345,339 | 329,423 | 340,021 | 321,158 | |||||||||||||||
Loans held for sale | 3,693 | 3,191 | 1,288 | 2,280 | 634 | |||||||||||||||
Loans held for investment | 896,865 | 886,253 | 872,308 | 848,773 | 827,007 | |||||||||||||||
Allowance for credit losses | 7,910 | 7,818 | 7,848 | 8,312 | 7,762 | |||||||||||||||
Deposits | 1,275,064 | 1,245,212 | 1,235,341 | 1,196,451 | 1,200,021 | |||||||||||||||
Non-interest bearing | 290,343 | 279,398 | 280,937 | 278,322 | 271,400 | |||||||||||||||
Interest bearing | 984,721 | 965,814 | 954,404 | 918,129 | 928,621 | |||||||||||||||
Borrowings | 9,921 | 9,917 | 7,000 | 6,996 | 6,986 | |||||||||||||||
Shareholders' equity | 106,707 | 104,788 | 101,493 | 94,741 | 91,311 | |||||||||||||||
Average shares outstanding (basic and diluted) | 3,559,157 | 3,557,220 | 3,558,868 | 3,564,133 | 3,530,708 | |||||||||||||||
Loan Data | ||||||||||||||||||||
Residential construction | $ | 26,802 | $ | 31,118 | $ | 31,805 | $ | 26,173 | $ | 24,377 | ||||||||||
Other construction and land development | 42,005 | 39,187 | 42,281 | 38,807 | 61,275 | |||||||||||||||
Secured by farmland | 117,937 | 115,000 | 111,163 | 105,235 | 88,323 | |||||||||||||||
Home equity | 53,550 | 51,393 | 50,401 | 51,364 | 50,245 | |||||||||||||||
Residential mortgage loans | 257,693 | 249,341 | 240,139 | 234,870 | 225,467 | |||||||||||||||
Multifamily | 25,276 | 18,854 | 14,621 | 11,185 | 10,670 | |||||||||||||||
Owner occupied commercial real estate | 89,930 | 96,651 | 92,302 | 94,021 | 81,724 | |||||||||||||||
Non-owner occupied commercial real estate | 116,446 | 114,434 | 114,375 | 104,415 | 97,177 | |||||||||||||||
Commercial and industrial loans | 81,363 | 77,013 | 75,111 | 75,547 | 72,398 | |||||||||||||||
Credit card and other consumer loans | 11,804 | 11,963 | 12,242 | 12,592 | 13,273 | |||||||||||||||
Automobile loans | 69,922 | 77,080 | 83,458 | 90,016 | 97,637 | |||||||||||||||
Other loans | 4,137 | 4,219 | 4,410 | 4,548 | 4,441 | |||||||||||||||
Total loans held for investment | $ | 896,865 | $ | 886,253 | $ | 872,308 | $ | 848,773 | $ | 827,007 | ||||||||||
Asset Quality | ||||||||||||||||||||
Nonperforming loans to total loans3 | 0.54 | % | 0.68 | % | 0.85 | % | 0.90 | % | 1.08 | % | ||||||||||
Allowance for credit losses to total loans2 | 0.88 | % | 0.88 | % | 0.90 | % | 0.98 | % | 0.94 | % | ||||||||||
Allowance for credit losses to nonperforming loans | 163.13 | % | 129.35 | % | 105.31 | % | 108.60 | % | 86.76 | % | ||||||||||
Nonperforming assets to total assets4 | 0.34 | % | 0.44 | % | 0.55 | % | 0.58 | % | 0.69 | % | ||||||||||
Net charge-offs to average loans6 | 0.09 | % | 0.50 | % | 0.49 | % | 0.25 | % | 0.09 | % | ||||||||||
Nonperforming loans | $ | 4,849 | $ | 6,044 | $ | 7,452 | $ | 7,654 | $ | 8,947 | ||||||||||
Nonperforming assets | 4,849 | 6,044 | 7,452 | 7,654 | 9,024 | |||||||||||||||
Net charge-offs | 198 | 1,116 | 1,059 | 532 | 187 | |||||||||||||||
Capital Ratios5 | ||||||||||||||||||||
Leverage | 8.84 | % | 8.73 | % | 8.69 | % | 8.68 | % | 8.50 | % | ||||||||||
Risk-based capital ratios: | ||||||||||||||||||||
Common equity tier 1 capital | 13.18 | % | 13.11 | % | 12.76 | % | 12.73 | % | 12.57 | % | ||||||||||
Tier 1 capital | 13.18 | % | 13.11 | % | 12.76 | % | 12.73 | % | 12.57 | % | ||||||||||
Total capital | 14.10 | % | 14.04 | % | 13.69 | % | 13.73 | % | 13.50 | % | ||||||||||
Other Data | ||||||||||||||||||||
Number of banking offices | 14 | 14 | 14 | 14 | 14 | |||||||||||||||
Number of full-time equivalent employees | 179 | 173 | 170 | 172 | 170 | |||||||||||||||
F&M BANK CORP. | ||||||||||||||||||||
Non-GAAP Reconciliation | ||||||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
As of | ||||||||||||||||||||
3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||||
Tangible Common Equity and Tangible Assets |
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Total Assets (GAAP) | $ | 1,408,951 | $ | 1,373,757 | $ | 1,358,109 | $ | 1,311,924 | $ | 1,312,159 | ||||||||||
Subtract: Goodwill | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | ||||||||||
Subtract: Core Deposit Intangibles, net | (51 | ) | (55 | ) | (63 | ) | (70 | ) | (78 | ) | ||||||||||
Tangible assets (Non-GAAP) | $ | 1,405,818 | $ | 1,370,620 | $ | 1,354,964 | $ | 1,308,772 | $ | 1,308,999 | ||||||||||
Total Shareholders' Equity (GAAP) | $ | 106,707 | $ | 104,788 | $ | 101,493 | $ | 94,741 | $ | 91,311 | ||||||||||
Subtract: Goodwill | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | ||||||||||
Subtract: Core Deposit Intangibles, net | (51 | ) | (55 | ) | (63 | ) | (70 | ) | (78 | ) | ||||||||||
Tangible common equity (Non-GAAP) | $ | 103,574 | $ | 101,651 | $ | 98,348 | $ | 91,589 | $ | 88,151 | ||||||||||
Tangible Common Equity to Tangible Assets ratio | 7.37 | % | 7.42 | % | 7.26 | % | 7.00 | % | 6.73 | % | ||||||||||
Tangible Book Value Per Share | ||||||||||||||||||||
Tangible Common Equity (Non-GAAP) | $ | 103,574 | $ | 101,651 | $ | 98,348 | $ | 91,589 | $ | 88,151 | ||||||||||
Common shares outstanding, ending | 3,559,157 | 3,557,060 | 3,559,084 | 3,567,056 | 3,563,910 | |||||||||||||||
Tangible Book Value Per Share | $ | 29.10 | $ | 28.58 | $ | 27.63 | $ | 25.68 | $ | 24.73 | ||||||||||
1 Ratios are primarily based on daily average balances. | ||||||||||||||||||||
2 Calculated based on Loans Held for Investment, excludes Loans Held for Sale. | ||||||||||||||||||||
3 Calculated based on 90 day past due loans and non-accrual loans to Total Loans. | ||||||||||||||||||||
4 Calculated based on 90 day past due loans, non-accrual loans, and other real estate owned to Total Assets. | ||||||||||||||||||||
5 Capital ratios are for Farmers & Merchants Bank. | ||||||||||||||||||||
6 Annualized | ||||||||||||||||||||
SOURCE: F&M Bank Corp
View the original press release on ACCESS Newswire