F&M Bank Corp. Reports Significant Financial Growth in Q3 and First Nine Months of 2025

F&M Bank Corp. reported a significant increase in financial performance for the third quarter and the first nine months of 2025, as detailed in its latest 10-Q filing. For the three months ending September 30, 2025, net income rose to $2.92 million, or $0.82 per share, compared to $792,000, or $0.23 per share, in the same period last year. This increase was driven by a $2.0 million rise in net interest income, which reached $10.5 million, alongside a decrease in the provision for credit losses. The return on average assets improved to 0.87%, while return on average equity surged to 11.99%, up from 0.24% and 3.66%, respectively, in the prior year.

For the nine-month period ending September 30, 2025, net income also increased, reaching $8.34 million, or $2.35 per share, compared to $5.03 million, or $1.44 per share, in the same period of 2024. The growth in net income was attributed to a $5.6 million increase in net interest income, which was bolstered by a $2.5 million rise in total interest income and a $3.1 million decrease in interest expense. The net interest margin improved to 3.33%, up from 2.73% in the previous year, reflecting a favorable shift in the composition of earning assets and a decrease in the cost of funds.

Operationally, F&M Bank Corp. saw its total assets increase to $1.36 billion as of September 30, 2025, a 4% rise from $1.30 billion at the end of 2024. The growth was primarily driven by a $32.4 million increase in loans held for investment, which totaled $872.3 million. The bank's deposit base also expanded, with total deposits rising to $1.24 billion, an increase of $40.2 million from the previous year. Notably, noninterest-bearing deposits increased by $20.6 million, while time deposits decreased by $64 million, indicating a shift towards lower-cost funding sources.

In terms of strategic developments, F&M Bank Corp. transferred the operations, assets, and liabilities of F&M Mortgage to the Bank in May 2025, streamlining its operations. The company also declared a quarterly cash dividend of $0.26 per share, payable on November 28, 2025. Looking ahead, the bank's management expressed confidence in its ability to navigate market conditions and maintain its capital adequacy, with all capital ratios exceeding regulatory requirements. The bank's proactive management of interest rate risk and liquidity positions it well for future growth, despite potential economic uncertainties.