FMBM · F & M Bank Corp.

F&M Bank Corp. delivered robust Q1 2026 results with net income rising 31.3% year-over-year to $3.23 million, or $0.91 per share, fueled by a 21.02% surge in net interest income to $11.43 million. This expansion stemmed from loan growth contributing $1.23 million more in interest income and a $756,000 drop in interest expense due to shifts from high-cost time deposits to lower-cost checking and money market accounts. Net interest margin improved to 3.56%, supported by stable earning asset yields at 5.44% and a cost of funds decline to 1.94%. Noninterest income held steady at $2.9 million, boosted by wealth management and title insurance gains, while expenses rose to $10.3 million from higher salaries, legal fees, and data processing. Balance sheet growth was balanced, with total assets up 2.56% to $1.41 billion, loans increasing 1.2% to $896.9 million—led by residential mortgages, multifamily, and commercial loans—and deposits expanding 2.40% to $1.28 billion, including noninterest-bearing growth. Asset quality strengthened markedly, with non-performing assets dropping 46.27% year-over-year to 0.34% of assets, enabling a modest $309,000 credit loss provision versus $1.1 million prior quarter. Liquidity remained solid at 22.28% of assets. CEO Mike Wilkerson highlighted consistent execution, talent recruitment, and focus on core lending in agriculture, commercial, mortgage, and real estate sectors, positioning for sustainable growth in the Shenandoah Valley and beyond. The $0.26 quarterly dividend, yielding 3.31% annualized at recent prices, underscores capital return commitment amid rising book value to $29.98 per share.