F&M Bank Corp. reported a significant increase in financial performance for the second quarter and first half of 2026, with net income reaching $5.4 million, or $1.50 per diluted share, compared to $3.0 million, or $0.83 per diluted share, in the same period last year. This represents a 79% increase in net income year-over-year. The company's return on average assets improved to 1.54%, while return on average equity rose to 19.54%. The growth in net income was primarily driven by a $1.3 million increase in interest income, attributed to loan growth, and a $514,000 decrease in interest expense. For the six months ended June 30, 2026, net income was $8.6 million, or $2.41 per diluted share, up from $5.4 million, or $1.53 per diluted share, in the prior year.
Total assets for F&M Bank Corp. increased to $1.4 billion as of June 30, 2026, up from $1.37 billion at the end of 2025. The growth was fueled by a $39 million increase in total loans, which reached $925.3 million, with notable increases in residential mortgage loans, multifamily loans, and loans secured by farmland. Total deposits also grew by $12.2 million to $1.26 billion, with noninterest-bearing deposits increasing by $14.7 million. The company maintained a stable long-term debt of $9.9 million.
In terms of operational developments, F&M Bank Corp. completed the sale of its investment in Bearing Insurance, resulting in a one-time gain of $4.8 million. However, this was partially offset by a $3.5 million loss on the sale of investment securities as part of a restructuring of the bank's available-for-sale securities portfolio. The company also reported a decrease in the provision for credit losses, which fell to $269,000 in the second quarter of 2026 from $1.2 million in the same quarter of 2025, reflecting improved asset quality and a reduction in nonperforming loans.
Looking ahead, F&M Bank Corp. is optimistic about its growth trajectory, particularly with the recent approval to open a new branch in Fauquier County, Virginia. The company continues to focus on expanding its loan portfolio while managing interest rate risk and maintaining adequate liquidity. As of June 30, 2026, the allowance for credit losses stood at $8.1 million, or 0.87% of gross loans, indicating a stable risk profile in line with the company's growth strategy. The management remains vigilant in monitoring market conditions and adjusting strategies to ensure continued financial health and operational efficiency.
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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