#F&M Bank Corp. Reports Strong Earnings for Second Quarter 2026
F&M Bank Corp., the parent company of Farmers & Merchants Bank, has announced impressive financial results for the second quarter of 2026, with a net income of $5.37 million, equivalent to $1.50 per diluted share. This marks a substantial increase from the $3.23 million, or $0.91 per share, reported in the first quarter of the same year, and a notable rise from $2.97 million, or $0.83 per share, for the second quarter of 2025.
For the six months ending June 30, 2026, net income reached $8.59 million, or $2.41 per diluted share, outperforming the previous year’s tally of $5.42 million, or $1.53 per diluted share. The bank's assets grew by $24.2 million, or 1.76%, bringing total assets to $1.40 billion. Total loans saw an increase of $39.0 million, or 4.40%, topped by strong performance in residential mortgage loans and commercial financing.
Significant gains during the quarter were attributed to non-recurring transactions, including a pre-tax gain of $4.8 million from the sale of Bearing Insurance. This sale allowed the bank to restructure its bond portfolio, though it incurred a pre-tax loss of approximately $3.5 million in the process. Overall, these events resulted in a net pre-tax gain of $1.3 million.
Asset quality remained a focus, with nonperforming loans as a percentage of total loans decreasing to 0.43%. While loans increased overall, total deposits experienced a decline of $17.6 million, or 1.38%, compared to the first quarter of 2026. This decline raises some questions regarding deposit growth amid expanding loan portfolios.
The Board of Directors declared a quarterly dividend of $0.26 per share, translating to a yield of 2.63% based on the most recent trade price of $39.54. This dividend is scheduled for payment on August 28, 2026, to shareholders of record as of August 14, 2026.
F&M Bank Corp. reported a net income of $5.37 million, or $1.50 per diluted share, for the second quarter of 2026. This reflects an increase compared to the first quarter of 2026, where the net income was $3.23 million, or $0.91 per diluted share, and an increase from $2.97 million, or $0.83 per diluted share, reported in the same period of 2025.
As of June 30, 2026, F&M Bank Corp. had total assets of $1.4 billion, which is an increase of $24.2 million or 1.76% from December 31, 2025. Year over year, this reflects growth compared to the previous total assets reported.
During the second quarter of 2026, F&M Bank Corp. recognised a pre-tax gain of $4.8 million from the sale of Bearing Insurance, which contributed positively to net income. However, the bank also incurred a pre-tax loss of approximately $3.5 million due to restructuring its bond portfolio, resulting in a net pre-tax gain of $1.3 million from these non-recurring transactions.
On July 23, 2026, F&M Bank Corp.'s Board of Directors declared a dividend of $0.26 per share to common shareholders. This equates to a 2.63% yield based on the recent trade price of $39.54 per share, and the dividend is set to be paid on August 28, 2026.
In the second quarter of 2026, total loans grew by $28.4 million, or 3.17%. Conversely, total deposits declined by $17.6 million, or 1.38%. Over the year, total loans increased by $39.0 million, or 4.40%, while total deposits saw a modest increase of $12.2 million, or 0.98%.
F&M Bank Corp. reported a return on average assets of 1.54% for the second quarter of 2026, compared to 0.94% for the first quarter of 2026 and 0.91% for the same period in 2025. The return on average equity improved to 19.54% from 12.18% over the same periods, suggesting improved profitability relative to the company's assets and equity.
F&M Bank Corp. reported a decrease in nonperforming loans as a percentage of total loans to 0.43% as of June 30, 2026, down from 0.54% as of March 31, 2026, and 0.68% as of December 31, 2025. This indicates an improvement in asset quality during the reported period.
As of June 30, 2026, F&M Bank Corp. maintained on-balance sheet liquid assets totalling $295.9 million, which constituted 21.18% of total assets. Additionally, the bank had access to off-balance sheet liquidity sources, including federal funds lines and a secured line of credit with the Federal Home Loan Bank.