F&M Bank Corp. Reports Second Quarter 2026 Earnings and Quarterly Dividend
Rhea-AI Summary
F&M Bank Corp (OTCQX:FMBM) reported second quarter 2026 net income of $5.37 million, or $1.50 per diluted share, up from $0.91 in first quarter 2026 and $0.83 in second quarter 2025. Six‑month 2026 net income was $8.59 million, or $2.41 per diluted share, versus $5.42 million, or $1.53, a year earlier.
According to F&M Bank Corp, results included two non‑recurring items: a $4.8 million pre‑tax gain on the April 2026 sale of Bearing Insurance and a $3.5 million pre‑tax loss from restructuring $29.8 million of available‑for‑sale securities into higher‑yielding bonds, for a net pre‑tax gain of $1.3 million. Net interest margin rose to 3.79%, ROA to 1.54%, and ROE to 19.54%. Loans grew to $925.3 million (up 4.4% from year‑end 2025), deposits to $1.26 billion (up 0.98%), and nonperforming assets fell 18.64% linked‑quarter. Book value per share increased to $31.56. The board declared a $0.26 quarterly dividend, implying a 2.63% annualized yield based on a $39.54 share price, payable August 28, 2026 to shareholders of record August 14, 2026.
Positive
- Q2 2026 net income $5.37M, EPS $1.50, up 81% YoY
- Six‑month 2026 net income $8.59M vs. $5.42M in 2025
- Net interest margin 3.79% vs. 3.56% prior quarter and 3.48% YoY
- Loans held for investment up $39.0M (4.4%) since year‑end 2025
- Nonperforming assets down 18.64% linked‑quarter to $3.95M (0.28% of assets)
- Quarterly dividend $0.26 per share; 2.63% annualized yield at $39.54
Negative
- Securities portfolio restructuring loss $3.5M pre‑tax in Q2 2026
- Q2 2026 deposits declined $17.6M (1.38%) during the quarter
- Noninterest expenses up to $10.4M, a $1.7M YoY increase
AI-generated analysis. How Rhea-AI works. Not financial advice.
Two non-recurring transactions during second quarter 2026 bolster strong net income resulting from operations.
See associated, unaudited summary consolidated financial data for additional information.
TIMBERVILLE, VA / ACCESS Newswire / July 29, 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 three-month and six-month periods ended June 30, 2026. During second quarter 2026, the Company both recognized a one-time, pre-tax gain of
Net income for second quarter 2026 was
At June 30, 2026, the Company had total assets of
Remarking on the Company's quarter and year-to-date results, CEO Mike Wilkerson said, "We had a great second quarter and first half of 2026. The key drivers of our performance are improved results across all business lines, effective management of our balance sheet assets, and sound loan and deposit growth, along with investing in and executing our strategic initiatives. Our results from operations were strong even without the gain from the reported non-recurring events in second quarter of 2026, most notably the sale of our ownership interest in Bearing Insurance.
"The F&M team continues to deliver traditional community banking focused on building relationships and to provide exceptional personal service to our customers. We are executing our strategic plan, growing organically in our footprint and reaching targeted growth markets that align with our culture and core values. We entered Warrenton in January and are seeing positive results, primarily with commercial, business, and agricultural customers. With recent regulatory approval, we expect to open an office in the Blackwell Building in September, once renovations are complete.
"As we grow, it is always with our focus on safely and soundly creating sufficient, sustainable profit in order to remain strong and resilient in meeting the needs of our customers and in being ready for opportunities and challenges when they arrive."
SECOND QUARTER 2026 HIGHLIGHTS
Net income was
$5.37 million , or$1.50 diluted earnings per share, an increase of$2.14 million , or66.40% , from first quarter 2026 and an increase of$2.40 million , or81.05% , from second quarter 2025.Return on average assets was
1.54% compared to0.94% for first quarter 2026 and0.91% for second quarter 2025. Return on average equity improved to19.54% , compared to12.18% for first quarter 2026.Net interest margin grew to
3.79% compared to3.56% for first quarter 2026 and3.48% for second quarter 2025. Net interest income totaled$12.33 million , an increase of$903,000 , or7.90% , on a linked-quarter basis and an increase of$1.81 million , or17.15% , compared to the same period in 2025.Total assets were
$1.40 billion at quarter end, an increase of$24.2 million , or1.76% , from$1.37 billion at year-end 2025. Loans held for investment grew to$925.3 million , an increase of$39.0 million , or4.4% , from December 31, 2025. Total deposits were$1.26 billion , increasing by$12.2 million , or0.98% , during the same period, with growth in noninterest‑bearing deposits.Asset quality continued to improve. Nonperforming assets totaled
$3.95 million or0.28% of total assets at quarter end, a decrease of$904,000 , or18.64% , on a linked-quarter basis, and a decrease of$3.7 million , or48.46% , in a year-to-year comparison. Net charge-offs represented0.06% of average loans outstanding in second quarter, compared to0.09% for the linked quarter and0.25% for second quarter 2025.A provision for credit losses of
$269,000 was recognized during the quarter, compared to a provision of $309,000 in first quarter 2026 and a provision of$1.19 million in second quarter 2025.Book value per share and tangible book value per share¹ increased to
$31.56 and$30.68 , respectively, at quarter end, representing linked‑quarter increases of6.01% and6.23% , respectively, and year‑over‑year increases of18.83% and19.54% , respectively.
SECOND QUARTER 2026 INCOME STATEMENT REVIEW
Overview
Net income for second 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
SECOND QUARTER 2026 BALANCE SHEET REVIEW
Total assets were
Investment securities decreased
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 June 30, 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 June 30, 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 second 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 July 23, 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 assets, tangible common equity, and 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.
RECLASSIFICATIONS
Certain prior period amounts in the consolidated balance sheet and changes in shareholders' equity have been reclassified to conform to current period presentation. These reclassifications had an immaterial impact on previously reported assets, per share data, and shareholders' equity.
FORWARD-LOOKING STATEMENTS
This press release contains "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," "potential," 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, the Company's ability to realize the anticipated benefits of the securities portfolio restructuring within the expected timeframe or at all, 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 7 | Year to Date 7 | |||||||||||||||||||||||||||
6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 6/30/2026 | 6/30/2025 | ||||||||||||||||||||||
Selected Income Statement Data | ||||||||||||||||||||||||||||
Interest and dividend income | $ | 18,103 | $ | 17,493 | $ | 17,622 | $ | 17,052 | $ | 16,812 | 35,596 | $ | 33,077 | |||||||||||||||
Interest expense | 5,771 | 6,064 | 6,562 | 6,557 | 6,285 | 11,835 | 13,103 | |||||||||||||||||||||
Net interest income | 12,332 | 11,429 | 11,060 | 10,495 | 10,527 | 23,761 | 19,974 | |||||||||||||||||||||
Provision for credit losses | 269 | 309 | 1,079 | 539 | 1,187 | 578 | 1,083 | |||||||||||||||||||||
Net interest income after provision for credit losses | 12,063 | 11,120 | 9,981 | 9,956 | 9,340 | 23,183 | 18,891 | |||||||||||||||||||||
Noninterest income | 4,854 | 2,897 | 2,798 | 2,734 | 2,792 | 7,751 | 5,637 | |||||||||||||||||||||
Noninterest expenses | 10,447 | 10,313 | 9,462 | 9,321 | 8,712 | 20,760 | 18,237 | |||||||||||||||||||||
Income tax expense | 1,102 | 478 | 434 | 445 | 455 | 1,580 | 869 | |||||||||||||||||||||
Net Income | $ | 5,368 | $ | 3,226 | $ | 2,883 | $ | 2,924 | $ | 2,965 | $ | 8,594 | $ | 5,422 | ||||||||||||||
Key Performance Ratios | ||||||||||||||||||||||||||||
Return on average assets1, 6 | 1.54 | % | 0.94 | % | 0.83 | % | 0.87 | % | 0.91 | % | 1.25 | % | 0.84 | % | ||||||||||||||
Return on average equity1, 6 | 19.54 | % | 12.18 | % | 10.99 | % | 11.99 | % | 12.81 | % | 15.93 | % | 12.08 | % | ||||||||||||||
Net interest spread 6 | 3.19 | % | 2.95 | % | 3.35 | % | 3.31 | % | 3.45 | % | 3.07 | % | 3.29 | % | ||||||||||||||
Net interest margin 6 | 3.79 | % | 3.56 | % | 3.40 | % | 3.36 | % | 3.48 | % | 3.67 | % | 3.32 | % | ||||||||||||||
Yield on earning assets 6 | 5.56 | % | 5.44 | % | 5.42 | % | 5.45 | % | 5.56 | % | 5.50 | % | 5.49 | % | ||||||||||||||
Cost of funds 6 | 1.83 | % | 1.94 | % | 2.07 | % | 2.14 | % | 2.11 | % | 1.89 | % | 2.20 | % | ||||||||||||||
Noninterest income to average assets 6 | 1.40 | % | 0.85 | % | 0.81 | % | 0.82 | % | 0.86 | % | 1.12 | % | 0.87 | % | ||||||||||||||
Noninterest expense to average assets 6 | 3.01 | % | 3.01 | % | 2.73 | % | 2.78 | % | 2.68 | % | 3.01 | % | 2.82 | % | ||||||||||||||
Share and Per Share Data | ||||||||||||||||||||||||||||
Net income - basic | $ | 1.52 | $ | 0.91 | $ | 0.82 | $ | 0.83 | $ | 0.84 | $ | 2.43 | $ | 1.54 | ||||||||||||||
Net income - diluted | 1.50 | 0.91 | 0.81 | 0.82 | 0.83 | 2.41 | 1.53 | |||||||||||||||||||||
Book value per share | 31.56 | 29.77 | 29.49 | 28.53 | 26.56 | 31.56 | 26.56 | |||||||||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||||||||||||||
Assets | $ | 1,397,134 | $ | 1,408,113 | $ | 1,372,936 | $ | 1,357,347 | $ | 1,311,221 | $ | 1,397,134 | $ | 1,311,221 | ||||||||||||||
Securities available for sale | 337,468 | 350,506 | 345,339 | 329,423 | 340,021 | 337,468 | 340,021 | |||||||||||||||||||||
Loans held for sale | 2,647 | 3,693 | 3,191 | 1,288 | 2,280 | 2,647 | 2,280 | |||||||||||||||||||||
Loans held for investment | 925,267 | 896,865 | 886,253 | 872,308 | 848,773 | 925,267 | 848,773 | |||||||||||||||||||||
Allowance for credit losses | 8,085 | 7,910 | 7,818 | 7,848 | 8,312 | 8,085 | 8,312 | |||||||||||||||||||||
Deposits | 1,257,450 | 1,275,064 | 1,245,212 | 1,235,341 | 1,196,451 | 1,257,450 | 1,196,451 | |||||||||||||||||||||
Non-interest bearing | 294,083 | 290,343 | 279,398 | 280,937 | 278,322 | 294,083 | 278,322 | |||||||||||||||||||||
Interest bearing | 963,367 | 984,721 | 965,814 | 954,404 | 918,129 | 963,367 | 918,129 | |||||||||||||||||||||
Borrowings | 9,926 | 9,921 | 9,917 | 7,000 | 6,996 | 9,926 | 6,996 | |||||||||||||||||||||
Shareholders' equity | 112,108 | 105,733 | 103,967 | 100,731 | 94,038 | 112,108 | 94,038 | |||||||||||||||||||||
Average shares outstanding - basic | 3,550,516 | 3,528,911 | 3,528,413 | 3,532,455 | 3,540,114 | 3,539,773 | 3,524,684 | |||||||||||||||||||||
Average shares outstanding - diluted | 3,584,485 | 3,560,093 | 3,557,220 | 3,558,868 | 3,564,133 | 3,572,356 | 3,547,513 | |||||||||||||||||||||
Loan Data | ||||||||||||||||||||||||||||
Residential construction | $ | 22,997 | $ | 26,802 | $ | 31,118 | $ | 31,805 | $ | 26,173 | $ | 22,997 | $ | 26,173 | ||||||||||||||
Other construction and land development | 43,927 | 42,005 | 39,187 | 42,281 | 38,807 | 43,927 | 38,807 | |||||||||||||||||||||
Secured by farmland | 126,864 | 117,937 | 115,000 | 111,163 | 105,235 | 126,864 | 105,235 | |||||||||||||||||||||
Home equity | 57,243 | 53,550 | 51,393 | 50,401 | 51,364 | 57,243 | 51,364 | |||||||||||||||||||||
Residential mortgage loans | 271,089 | 257,693 | 249,341 | 240,139 | 234,870 | 271,089 | 234,870 | |||||||||||||||||||||
Multifamily | 25,865 | 25,276 | 18,854 | 14,621 | 11,185 | 25,865 | 11,185 | |||||||||||||||||||||
Owner occupied commercial real estate | 92,564 | 89,930 | 96,651 | 92,302 | 94,021 | 92,564 | 94,021 | |||||||||||||||||||||
Non-owner occupied commercial real estate | 119,997 | 116,446 | 114,434 | 114,375 | 104,415 | 119,997 | 104,415 | |||||||||||||||||||||
Commercial and industrial loans | 82,398 | 81,363 | 77,013 | 75,111 | 75,547 | 82,398 | 75,547 | |||||||||||||||||||||
Credit card and other consumer loans | 12,518 | 11,804 | 11,963 | 12,242 | 12,592 | 12,518 | 12,592 | |||||||||||||||||||||
Automobile loans | 65,982 | 69,922 | 77,080 | 83,458 | 90,016 | 65,982 | 90,016 | |||||||||||||||||||||
Other loans | 3,823 | 4,137 | 4,219 | 4,410 | 4,548 | 3,823 | 4,548 | |||||||||||||||||||||
Total loans held for investment | $ | 925,267 | $ | 896,865 | $ | 886,253 | $ | 872,308 | $ | 848,773 | $ | 925,267 | $ | 848,773 | ||||||||||||||
Asset Quality | ||||||||||||||||||||||||||||
Nonperforming loans to total loans3 | 0.43 | % | 0.54 | % | 0.68 | % | 0.85 | % | 0.90 | % | 0.43 | % | 0.90 | % | ||||||||||||||
Allowance for credit losses to total loans2 | 0.87 | % | 0.88 | % | 0.88 | % | 0.90 | % | 0.98 | % | 0.87 | % | 0.98 | % | ||||||||||||||
Allowance for credit losses to nonperforming loans | 204.94 | % | 163.13 | % | 129.35 | % | 105.31 | % | 108.60 | % | 204.94 | % | 108.60 | % | ||||||||||||||
Nonperforming assets to total assets4 | 0.28 | % | 0.34 | % | 0.44 | % | 0.55 | % | 0.58 | % | 0.28 | % | 0.58 | % | ||||||||||||||
Net charge-offs to average loans6 | 0.06 | % | 0.09 | % | 0.50 | % | 0.49 | % | 0.25 | % | 0.07 | % | 0.17 | % | ||||||||||||||
Nonperforming loans | $ | 3,945 | $ | 4,849 | $ | 6,044 | $ | 7,452 | $ | 7,654 | $ | 3,945 | $ | 7,654 | ||||||||||||||
Nonperforming assets | 3,945 | 4,849 | 6,044 | 7,452 | 7,654 | 3,945 | 7,654 | |||||||||||||||||||||
Net charge-offs | 130 | 198 | 1,116 | 1,059 | 532 | 328 | 719 | |||||||||||||||||||||
Capital Ratios5 | ||||||||||||||||||||||||||||
Leverage | 9.10 | % | 8.84 | % | 8.73 | % | 8.69 | % | 8.68 | % | 9.10 | % | 8.68 | % | ||||||||||||||
Risk-based capital ratios: | ||||||||||||||||||||||||||||
Common equity tier 1 capital | 13.50 | % | 13.18 | % | 13.11 | % | 12.76 | % | 12.73 | % | 13.50 | % | 12.73 | % | ||||||||||||||
Tier 1 capital | 13.50 | % | 13.18 | % | 13.11 | % | 12.76 | % | 12.73 | % | 13.50 | % | 12.73 | % | ||||||||||||||
Total capital | 14.43 | % | 14.10 | % | 14.04 | % | 13.69 | % | 13.73 | % | 14.43 | % | 13.73 | % | ||||||||||||||
Other Data | ||||||||||||||||||||||||||||
Number of banking offices | 14 | 14 | 14 | 14 | 14 | 14 | 14 | |||||||||||||||||||||
Number of full-time equivalent employees | 184 | 179 | 173 | 170 | 172 | 184 | 172 | |||||||||||||||||||||
F&M BANK CORP.
Non-GAAP Reconciliation
(in thousands, except share and per share data)
(unaudited)
As of | ||||||||||||||||||||
6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||||||||||||||
Tangible Common Equity and Tangible Assets | ||||||||||||||||||||
Total Assets (GAAP) | $ | 1,397,134 | $ | 1,408,113 | $ | 1,372,936 | $ | 1,357,347 | $ | 1,311,221 | ||||||||||
Subtract: Goodwill | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | ||||||||||
Subtract: Core Deposit Intangibles, net | (47 | ) | (51 | ) | (55 | ) | (63 | ) | (70 | ) | ||||||||||
Tangible assets (Non-GAAP) | $ | 1,394,005 | $ | 1,404,980 | $ | 1,369,799 | $ | 1,354,202 | $ | 1,308,069 | ||||||||||
Total Shareholders' Equity (GAAP) | $ | 112,108 | $ | 105,733 | $ | 103,967 | $ | 100,731 | $ | 94,038 | ||||||||||
Subtract: Goodwill | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | (3,082 | ) | ||||||||||
Subtract: Core Deposit Intangibles, net | (47 | ) | (51 | ) | (55 | ) | (63 | ) | (70 | ) | ||||||||||
Tangible common equity (Non-GAAP) | $ | 108,979 | $ | 102,600 | $ | 100,830 | $ | 97,586 | $ | 90,886 | ||||||||||
Tangible Common Equity to Tangible Assets ratio | 7.82 | % | 7.30 | % | 7.36 | % | 7.21 | % | 6.95 | % | ||||||||||
Tangible Book Value Per Share | ||||||||||||||||||||
Tangible Common Equity (Non-GAAP) | $ | 108,979 | $ | 102,600 | $ | 100,830 | $ | 97,586 | $ | 90,886 | ||||||||||
Common shares outstanding, ending | 3,551,661 | 3,552,002 | 3,525,884 | 3,530,303 | 3,540,669 | |||||||||||||||
Tangible Book Value Per Share | $ | 30.68 | $ | 28.89 | $ | 28.60 | $ | 27.64 | $ | 25.67 | ||||||||||
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
7 Certain prior period amounts in the consolidated balance sheet and changes in shareholders' equity have been reclassified to conform to current period presentation. These reclassifications had an immaterial impact on previously reported assets, per share data, and shareholders' equity.
SOURCE: F&M Bank Corp
View the original press release on ACCESS Newswire