Recent developments include a significant increase in Q2 2025 margin, multiple insider share purchases by directors and executive officers, appointment of a new director, and a declared dividend in 2023.

• F&M Bank reported a 28% increase in Q2 margin in 2025 [N1].
• A director purchased 1,000 shares in March 2025 [N2].
• A director purchased 200 shares in March 2025 [N3].
• The EVP/Chief Experience Officer purchased 563 shares in December 2024 [N4].
• The EVP/Chief Experience Officer purchased 546 shares in December 2024 [N5].
• Neil Houff was appointed as a new director in October 2024 [N6].
• F&M Bank declared a $0.26 dividend in April 2023 [N7].

The company has demonstrated growth in net interest income and net income, supported by improved net interest margins and effective management of credit losses. Insider buying and board appointments indicate confidence in management. The issuance of subordinated notes enhances capital flexibility. The bank’s diversified services including title insurance and mortgage lending provide multiple revenue streams. Its regional focus allows for tailored customer relationships and market knowledge.

The company faces risks from changes in local and national economic conditions, interest rate fluctuations, and regulatory changes. Credit quality could be impacted by economic downturns affecting loan portfolios. Competition from larger banks and non-traditional financial service providers may pressure margins and growth. Operational risks include managing expenses and potential fraud events. The company’s relatively small scale and regional concentration may limit diversification and increase vulnerability to localized economic shocks.

F&M Bank Corp’s moat is derived from its regional focus and established presence in its primary trade area in Virginia, serving a defined customer base through multiple branches and specialized loan production offices. Its regulatory status as a state-chartered bank and financial holding company provides a framework for stable operations. The company’s diversified revenue streams from banking, mortgage lending, and title insurance contribute to its competitive positioning. Its access to capital markets and liquidity sources supports operational resilience. However, as a regional bank, it faces competition from larger institutions and alternative financial service providers.

• Economic and Market Risks: Changes in local and national economies or market conditions could adversely affect loan demand, asset quality, and deposit flows.
• Interest Rate Risk: Fluctuations in interest rates impact net interest income, margins, and the fair value of securities portfolios.
• Credit Risk: Loan portfolio quality may deteriorate due to borrower defaults or declines in collateral values, requiring increased provisions for credit losses.
• Regulatory and Compliance Risk: Changes in banking regulations, accounting principles, or supervisory policies could affect operations and financial reporting.
• Competition Risk: Competition from traditional banks and new financial service providers may pressure pricing, margins, and customer retention.
• Operational Risk: Risks related to fraud, legal expenses, and operational controls could impact financial results and reputation.

• F&M Bank Corp is a one-bank holding company incorporated in Virginia in 1983 and registered under the Bank Holding Company Act of 1956 as a financial holding company [S2].
• The company owns 100% of its banking subsidiary and a title insurance subsidiary named VST [S2].
• During Q2 2025, operations, assets, and liabilities of F&M Mortgage were transferred to the Bank [S2].
• The Bank operates under a charter issued by the Commonwealth of Virginia and is regulated by the Virginia Bureau of Financial Institutions and the Federal Reserve Board [S2].
• The Bank provides financial products and services to consumers and businesses through fourteen branch offices and mortgage and dealer finance loan production offices [S2].
• The primary trade area includes counties of Rockingham, Shenandoah, Augusta, Frederick, and cities of Harrisonburg, Staunton, Waynesboro, and Winchester in Virginia [S2].
• The company offers title insurance through its subsidiary VST [S2].
• Net income for the full year ended December 31, 2025 was $11.229 million [S1].
• Diluted earnings per share for the year ended December 31, 2025 was $3.16 [S1].
• Revenue for the quarter ended September 30, 2023 was $162,000 [S1].
• Cash and cash equivalents as of December 31, 2023 were $23.717 million [S1].
• Short-term investments were $404.007 million as of December 31, 2021 [S1].
• Net interest income increased by $2.0 million or 24% to $10.5 million for Q3 2025 compared to Q3 2024, driven by higher interest income and lower interest expense [S2].
• Net interest margin increased 61 basis points to 3.36% for Q3 2025 compared to the prior year [S2].
• Provision for credit losses decreased to $539,000 for Q3 2025 from $902,000 in Q3 2024 [S2].
• Noninterest income decreased slightly by $14,000 in Q3 2025 due to lower mortgage banking income, offset by increases in card services, interchange income, and title insurance income [S2].
• Noninterest expenses decreased by $336,000 in Q3 2025 compared to Q3 2024, primarily due to a prior year external fraud event [S2].
• For the nine months ended September 30, 2025, net income increased $3.3 million to $8.3 million compared to the same period in 2024 [S2].
• Net interest income increased $5.6 million for the nine months ended September 30, 2025 compared to the prior year period [S2].
• The company’s loan portfolio increased with loans held for investment net of allowance totaling approximately $872 million as of September 30, 2025 [S2].
• Deposits increased during the first nine months of 2025 with changes in composition including increases in non-interest bearing deposits and savings accounts, and decreases in time deposits [S2].
• The company issued $10 million in 7.55% fixed to floating rate subordinated notes due November 1, 2035 in October 2025 to redeem existing subordinated debt and for general corporate purposes [S1][S20].
• The company declared a dividend of $0.26 per share as of April 2023 [N7].
• There have been multiple insider purchases of shares by directors and executive officers in late 2024 and early 2025 [N2][N3][N4][N5].
• Neil Houff was appointed as a new director in October 2024 [N6].