F&M Bank Corp. reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with net income rising to $11.2 million, a 54.14% increase from $7.3 million in 2024. This growth was primarily driven by a $7.6 million increase in net interest income, which reached $41.5 million, alongside a decrease in interest expenses from $30.6 million in 2024 to $26.2 million in 2025. The company's return on average assets improved to 0.85% from 0.55%, while return on average equity rose to 11.76% from 8.86% in the previous year.
The company experienced notable changes in its operational structure, including the dissolution of Farmers & Merchants Financial Services, Inc. in April 2024, and the transfer of its operations to the Bank. Additionally, the operations of VBS Mortgage, LLC were integrated into the Bank in May 2025. These strategic moves are part of F&M Bank's efforts to streamline operations and enhance service delivery. The company also launched a stock repurchase plan in June 2025, allowing for the repurchase of up to $2.2 million of its common stock.
F&M Bank's total assets increased by $71.7 million to $1.37 billion, driven by a $46.3 million rise in loans held for investment, which totaled $886.3 million at year-end. The bank's deposits also grew by $50.1 million, reaching $1.25 billion. The company reported a decrease in nonperforming loans, which fell to $6.0 million from $7.2 million in 2024, indicating improved asset quality. The allowance for credit losses decreased to $7.8 million from $8.1 million, reflecting a proactive approach to managing credit risk.
Looking ahead, F&M Bank Corp. remains optimistic about its growth trajectory, supported by a strong capital position. As of December 31, 2025, the bank's capital ratios exceeded regulatory requirements, with a total risk-based capital ratio of 14.04% and a Tier 1 capital ratio of 13.11%. The company anticipates continued growth in its loan portfolio and overall financial performance, despite potential challenges from market conditions and regulatory changes. Management is committed to maintaining a strong capital base to support future growth initiatives and enhance shareholder value.
About F&M BANK CORP
F&M Bank Corp. is a Virginia-based financial holding company owning Farmers & Merchants Bank, which provides a broad range of banking services including loans, deposits, and digital banking. It operates primarily in the Shenandoah Valley, offering residential, commercial, and consumer lending. The company emphasizes community banking, risk management, and regulatory compliance, serving individual and business customers with a focus on stability, asset quality, and local economic growth.
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