F&M Bank Corp. Reports Third Quarter 2026 Earnings and Quarterly Dividend

Financial results from operations remain strong for the three- and nine-month periods ended September 30, 2026.See associated, unaudited summary consolidated financial data for additional information. TIMBERVILLE, VA / ACCESS Newswire / October 28, 2026 / F&M Bank Corp. (the "Company" or "F&M"), (OTCQX:FMBM), the parent company of Farmers & Merchants Bank ("F&M Bank" or the "Bank"), today reports earnings for the three- and nine-month periods ended September 30, 2026. Net income for third quarter 2026 was $2.64 million, or $0.74 per diluted share, compared to net income reported for second quarter 2026 of $5.37 million, or $1.50 per diluted share, and net income reported for third quarter 2025 of $2.92 million, or $0.82 per diluted share. For the nine-month period ended September 30, 2026, net income was $11.24 million, or $3.14 per diluted share, exceeding net income of $8.34 million, or $2.35 per diluted share, reported for the same period in 2025. At September 30, 2026, the Company had total assets of $1.4 billion, total loans held for investment of $970.2 million, and total deposits of $1.28 billion. This reflects growth of $45.7 million, or 3.33%, in total assets; $83.9 million, or 9.47%, in total loans; and $36.4 million, or 2.92%, in total deposits over totals reported at December 31, 2025. During third quarter 2026, total loans grew by $44.9 million, or 4.85%, and total deposits grew by $24.1 million, or 1.92%. "Our financial performance for 2026 continues to be strong," said CEO Mike Wilkerson. "These results reflect a number of key factors: the F&M Team is extraordinary in their commitment, their efforts, and their energy in delivering exceptional customer service, expanding current relationships, and establishing new relationships. Their resolve has a meaningful impact on families, farmers, and businesses in the communities we serve. As a result, our diversified lines of business are all experiencing positive results year to date. "Nine months ago, we began doing business in Warrenton and Fauquier County by hiring the right leader and initial team for this community. At the same time, we expanded our agricultural and commercial real estate lending and credit management capabilities across the F&M Bank footprint. We did so by making a strategic investment in exceptionally talented and experienced banking professionals who bring deep knowledge of the local market and outstanding expertise. Our impressive loan growth during third quarter 2026 is proof that talented, dedicated people make all the difference at a true community bank. "As we serve and grow, our focus remains on safely and soundly creating sufficient, sustainable profit in order to meet the expectations of our shareholders." THIRD QUARTER 2026 HIGHLIGHTS Net income was $2.64 million, or $0.74 earnings per diluted share, compared to $5.37 million for second quarter 2026 and $2.92 million for third quarter 2025. Return on average assets was 0.74% compared to 1.54% for second quarter 2026 and 0.87% for third quarter 2025. Return on average equity was 9.26%, compared to 19.54% for second quarter 2026 and 11.99% for third quarter 2025. Net interest margin was 3.69% compared to 3.79% for second quarter 2026 and 3.36% for third quarter 2025. Total assets were $1.42 billion at quarter end, an increase of $45.7 million from $1.37 billion at year-end 2025. Loans held for investment grew to $970.2 million, an increase of $83.9 million from year-end 2025. Total deposits were $1.28 billion, increasing by $36.4 million during the same period, with growth in both interest-bearing and noninterest‑bearing deposits. Asset quality remains solid. Nonperforming loans as a percentage of total loans remained static as of September 30, 2026, and June 30, 2026, at 0.43%, declining from 0.68% as of December 31, 2025. Net charge‑offs as a percentage of average loans were 0.17% for third quarter 2026, compared to 0.06% for second quarter 2026 and 0.49% for third quarter 2025. A provision for credit losses of $1.53 million was recognized during the quarter, compared to a provision of $269,000 in second quarter 2026 and a provision of $539,000 in third quarter 2025. The increased provision reflects positive loan growth and recent adjustments to qualitative factors used in the allowance model. Book value per share and tangible book value per share¹ were $31.06 and $30.18, respectively. Note: As previously reported, second quarter 2026 results included two nonrecurring items: a one-time gain from the sale of the Bank's ownership interest in Bearing Insurance and a loss from a bond portfolio restructuring. Net income for the second quarter 2026 included $1.09 million in after-tax net gains related to these two items. The impact of this is reflected in both linked quarter and year-to-year comparisons. THIRD QUARTER 2026 INCOME STATEMENT REVIEW Net Interest Income Net interest income totaled $12.29 million for third quarter 2026, a decrease of $38,000, or 0.31%, on a linked-quarter basis and an increase of $1.80 million, or 17.14%, year-to-year. The linked‑quarter decrease was driven by a $369,000 increase in interest income offset by an increase in interest expense of $407,000. Interest income grew from second to third quarter, driven by the increase in average balance of loans held for investment, even with the impact of a second quarter recovery of interest and fees on the payout of a nonaccrual loan. The linked quarter increase in interest expense is the result of growth in time deposits during the quarter. The year‑over‑year increase was primarily the result of loan growth, which contributed to a $1.42 million increase in interest income, along with a $379,000 decrease in interest expense. The decrease in interest expense in the year-over-year comparison was driven by a shift from higher-cost time deposits to lower-cost interest checking and money market accounts. Net interest margin decreased to 3.69%, compared to 3.79% for second quarter 2026 and 3.36% for third quarter 2025. In second quarter 2026, the recovery of interest on a paid out non-accrual loan increased the earning asset yield and net interest margin by 6 basis points. Yield on earning assets was 5.54%, compared to 5.56% on a linked-quarter basis and 5.45% for the same quarter last year. Cost of funds was 1.92%, an increase of 9 basis points quarter-to-quarter and a decrease of 22 basis points year-to-year. Provision for Credit Losses The Bank recorded a provision for credit losses of $1.53 million during third quarter 2026, compared to a provision of $269,000 in second quarter 2026 and a provision of $539,000 in third quarter 2025. The third quarter 2026 provision included a $1.54 million provision for loans held for investment and a $9,000 recovery of reserve for unfunded loan commitments. The increase in the provision when compared to both historical periods was driven by qualitative factor updates to the allowance model, as well as loan portfolio growth of $44.91 million during the third quarter and $83.92 million year-to-date. Nonperforming loans were $4.19 million at the end of the quarter, a $242,000 increase during the quarter and a $3.27 million decrease from September 30, 2025. Net charge-offs for the quarter were $410,000 or 0.17%, higher than 0.06% for second quarter 2026 and lower than 0.49% for third quarter 2025. Year-to-date net charge-offs were $738,000, $1.04 million lower than for the same period in 2025. Noninterest Income Total noninterest income was $2.93 million for third quarter 2026, compared to $4.85 million on a linked-quarter basis and $2.73 million year-to-year. The $1.9 million decrease from second quarter 2026 is primarily attributable to the $4.8 million gain on the sale of Richmond-based Bearing Insurance, which was partially offset by the $3.5 million loss on the restructuring of the Bank's available for sale ("AFS") securities portfolio. The $196,000 increase from third quarter 2025 resulted from a volume-related increase in title insurance income. Noninterest Expenses Noninterest expenses totaled $10.67 million for third quarter 2026, compared to $10.45 million on a linked-quarter basis and $9.32 million year-to-year. The $225,000 increase compared to the linked quarter was primarily driven by increased compensation expense, partially offset by declines in ATM and check card fees and legal and professional fees. The $1.4 million increase compared to a year ago was primarily attributable to increased compensation expense, legal and professional fees, and other operating expenses, and was partially offset by a reduction in ATM and check card fees. THIRD QUARTER 2026 BALANCE SHEET REVIEW Total assets were $1.42 billion at September 30, 2026, an increase of $45.7 million, or 3.33%, from December 31, 2025. Loans held for investment increased by $83.9 million, or 9.47%, to $970.2 million for the same period. Loan growth since year-end 2025 was driven by increases of $31.1 million in residential mortgage loans, $7.1 million in multifamily loans, $9.2 million in home equity loans, $12.3 million in commercial and industrial loans, $28.8 million in nonowner‑occupied commercial real estate loans, $13.7 million in loans secured by farmland, and $9.2 million in other construction and land development loans. These increases were partially offset by decreases of $9.2 million in residential construction loans, $5.2 million in owner‑occupied commercial real estate loans, and $13.6 million in automobile loans. All remaining loan categories increased by a net $468,000. Investment securities decreased by $34.0 million, or 9.9%, since December 31, 2025, to $311.3 million at the end of third quarter 2026. The decrease reflected sales of $29.8 million and purchases of $49.0 million, including the restructuring of the AFS securities portfolio in June 2026. The average yield on the bond purchases in the first nine months of 2026 was 4.91%. Other changes included $37.0 million in paydowns of mortgage-backed securities, $12.9 million in maturities and calls, net premium amortization of $114,000, and a $3.3 million increase in unrealized losses within the securities portfolio. Total unrealized loss on the portfolio increased to $24.3 million as of September 30, 2026, compared to $21.0 million at December 31, 2025. Total deposits were $1.28 billion on September 30, 2026, an increase of $36.4 million, or 2.92%, from December 31, 2025. The increase reflected growth of $792,000, or 0.28%, in noninterest‑bearing deposits and $35.6 million, or 3.68%, in interest‑bearing deposits during the first nine months of the year. Shareholders' equity increased by $6.4 million, or 6.18% during the first nine months of the year, to $110.4 million at quarter end. The increase was driven by $11.2 million in net income, $312,000 related to shares issued, $437,000 in stock‑based compensation expense, partially offset by $2.8 million in dividends paid, $2.6 million in other comprehensive losses, and $136,000 in net vesting of restricted stock. Book value per share increased from $29.49 at December 31, 2025, to $31.06 at September 30, 2026, while tangible book value per share 1 increased from $28.60 to $30.18 over the same period. LIQUIDITY On‑balance sheet liquid assets, including cash and cash equivalents, unpledged investment securities, and loans held for sale, totaled $281.7 million on September 30, 2026, representing 19.86% of total assets, compared to $289.0 million, or 21.05% of total assets, at December 31, 2025. In addition to on‑balance sheet liquidity, the Bank had access to significant off‑balance sheet liquidity sources. As of September 30, 2026, available unsecured federal funds lines totaled $90.0 million. The Bank also maintained a secured line of credit with the Federal Home Loan Bank with available borrowing capacity of $214.4 million, secured by a blanket lien on qualifying loans. The Bank pledged securities with a collateral value of $88.8 million to the Federal Reserve Bank discount window, which may be used for overnight borrowings. LOAN PORTFOLIO The Company's loan portfolio remains diversified. Residential mortgage loans totaled $280.4 million on September 30, 2026, representing 28.91% of total loans. Total commercial real estate loans, including both owner‑occupied and nonowner‑occupied properties, totaled $234.7 million, or 24.19% of total loans. Loans secured by farmland totaled $128.7 million or 13.27% of total loans. The outstanding balance of automobile loans originated through the dealer finance division totaled $63.5 million, representing 6.55% of the loan portfolio. Additional details regarding loan portfolio composition as of September 30, 2026, and for the preceding four quarters are provided under the heading "Loan Data" in the tables accompanying this release. ASSET QUALITY AND ALLOWANCE FOR CREDIT LOSSES Asset quality metrics remained solid during third quarter 2026. Nonperforming loans as a percentage of total loans remained static as of September 30, 2026, and June 30, 2026, at 0.43%, declining from 0.68% as of December 31, 2025. Net charge‑offs as a percentage of average loans were 0.17% for third quarter 2026, compared to 0.06% for second quarter 2026 and 0.49% for third quarter 2025. The allowance for credit losses on loans ("ACLL") totaled $9.2 million at September 30, 2026, an increase of $1.4 million, or 17.91%, from December 31, 2025. The ACLL as a percentage of loans increased by 7 basis points to 0.95% of loans held for investment from the end of 2025 to September 30, 2026. The increase in the allowance reflected overall growth in loans held for investment of $83.9 million during the period and a change in the qualitative factors used in the allowance model. The reserve for unfunded loan commitments totaled $740,000 as of September 30, 2026, compared to $766,000 as of December 31, 2025 as a result of changes in unused commitments from one period to the next. DIVIDEND DECLARATION On October 22, 2026, our Board of Directors declared a dividend of $0.26 per share to common shareholders. Based on our most recent trade price of $40.90 per share, this constitutes a 2.54% yield on an annualized basis. The dividend will be paid on November 30, 2026, to shareholders of record as of November 14, 2026. 1 Tangible book value per share is a non-GAAP financial measure. Further information can be found under the heading "Non-GAAP Financial Measures" and in the non-GAAP reconciliation table accompanying this release. ### ABOUT US F&M Bank Corp. is an independent, publicly traded, financial holding company offering a full range of financial services through our subsidiary, Farmers & Merchants Bank's (F&M Bank), fourteen banking offices in Rockingham, Shenandoah, and Augusta counties, Virginia, and the cities of Winchester and Waynesboro, Virginia. The Company also owns VSTitle, a title company subsidiary. Founded in 1908 to serve the farmers and merchants of the Shenandoah Valley, where both the Company and the Bank are headquartered, F&M Bank is committed to the success of the agricultural industry, small business ventures, and the nonprofit sector. F&M's values, which are gregarious, resolute, original, and wholehearted (G.R.O.W.), combined with our brand pillars of sustenance, security, and enrichment, shape the Company's decision-making, philanthropy, and volunteerism. The only publicly traded organization based in Rockingham County, we offer a diverse suite of financial products and services, and a strong team dedicated to living our mission of being the financial partner of choice in the Shenandoah Valley both today and tomorrow, as we have been since 1908. Additional information may be found by visiting our website: fmbankva.com. NON-GAAP FINANCIAL MEASURES The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, and tangible book value per share, to supplement the evaluation of the Company's financial condition and performance. Management believes presentation of these non-GAAP financial measures provides useful supplemental information that is essential to a proper understanding of the Company's operating results. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A definition of tangible book value per share is included in the footnotes to the table accompanying this release. RECLASSIFICATIONS Certain prior period amounts in the consolidated balance sheet and changes in shareholders' equity have been reclassified to conform to current period presentation. These reclassifications had an immaterial impact on previously reported assets, per share data, and shareholders' equity. FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements" as defined by federal securities laws, which are subject to significant risks and uncertainties. These include statements regarding future plans, strategies, results, or expectations that are not historical facts, and are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "will," "estimate," "project," "potential," or similar expressions. These statements are based on estimates and assumptions, and our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Our actual results could differ materially from those contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, the Company's ability to realize the anticipated benefits of the securities portfolio restructuring within the expected timeframe or at all, changes in local and national economies or market conditions; changes in interest rates; regulations and accounting principles; changes in policies or guidelines; loan demand and asset quality, including values of real estate and other collateral; deposit flow; the impact of competition from traditional or new sources; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and the Bank's borrowers; and other factors. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release. FOR MORE INFORMATION, CONTACT Lisa F. Campbell | EVP | Chief Financial Officer 540-896-1705 fmbankva.com F&M BANK CORP. Performance Summary (in thousands, except share and per share data) (unaudited) As of and for the Three Months Ended Year to Date 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Selected Income Statement Data Interest and dividend income $ 18,472 $ 18,103 $ 17,493 $ 17,622 $ 17,052 54,068 $ 50,129 Interest expense 6,178 5,771 6,064 6,562 6,557 18,013 19,664 Net interest income 12,294 12,332 11,429 11,060 10,495 36,055 30,465 Provision for credit losses 1,533 269 309 1,079 539 2,111 1,622 Net interest income after provision for credit losses 10,761 12,063 11,120 9,981 9,956 33,944 28,843 Noninterest income 2,930 4,854 2,897 2,798 2,734 10,681 8,369 Noninterest expenses 10,672 10,447 10,313 9,462 9,321 31,432 27,556 Income tax expense 376 1,102 478 434 445 1,956 1,315 Net Income $ 2,643 $ 5,368 $ 3,226 $ 2,883 $ 2,924 $ 11,237 $ 8,341 Key Performance Ratios Return on average assets 1, 6 0.74 % 1.54 % 0.94 % 0.83 % 0.87 % 1.08 % 0.85 % Return on average equity 1, 6 9.26 % 19.54 % 12.18 % 10.99 % 11.99 % 13.62 % 12.04 % Net interest spread 6 3.07 % 3.19 % 2.95 % 3.35 % 3.31 % 3.08 % 3.30 % Net interest margin 6 3.69 % 3.79 % 3.56 % 3.40 % 3.36 % 3.68 % 3.33 % Yield on earning assets 6 5.54 % 5.56 % 5.44 % 5.42 % 5.45 % 5.52 % 5.48 % Cost of funds 6 1.92 % 1.83 % 1.94 % 2.07 % 2.14 % 1.90 % 2.18 % Noninterest income to average assets 6 0.83 % 1.40 % 0.85 % 0.81 % 0.82 % 1.02 % 0.85 % Noninterest expense to average assets 6 3.01 % 3.01 % 3.01 % 2.73 % 2.78 % 3.01 % 2.81 % Share and Per Share Data Net income - basic $ 0.74 $ 1.52 $ 0.91 $ 0.82 $ 0.83 $ 3.17 $ 2.36 Net income - diluted 0.74 1.50 0.91 0.81 0.82 3.14 2.35 Book value per share 31.06 31.56 29.77 29.49 28.53 31.06 28.53 Selected Balance Sheet Data Assets $ 1,418,642 $ 1,397,134 $ 1,408,113 $ 1,372,936 $ 1,357,347 $ 1,418,642 $ 1,357,347 Securities available for sale 311,311 337,468 350,506 345,339 329,423 311,311 329,423 Loans held for sale 1,669 2,647 3,693 3,191 1,288 1,669 1,288 Loans held for investment 970,176 925,267 896,865 886,253 872,308 970,176 872,308 Allowance for credit losses 9,218 8,085 7,910 7,818 7,848 9,218 7,848 Deposits 1,281,573 1,257,450 1,275,064 1,245,212 1,235,341 1,281,573 1,235,341 Non-interest bearing 280,190 294,083 290,343 279,398 280,937 280,190 280,937 Interest bearing 1,001,383 963,367 984,721 965,814 954,404 1,001,383 954,404 Borrowings 9,930 9,926 9,921 9,917 7,000 9,930 7,000 Shareholders' equity 110,396 112,108 105,733 103,967 100,731 110,396 100,731 Average shares outstanding - basic 3,552,262 3,550,516 3,528,911 3,528,413 3,532,455 3,544,012 3,527,303 Average shares outstanding - diluted 3,587,229 3,584,485 3,560,093 3,557,220 3,558,868 3,577,404 3,551,339 Loan Data Residential construction $ 21,950 $ 22,997 $ 26,802 $ 31,118 $ 31,805 $ 21,950 $ 31,805 Other construction and land development 48,393 43,927 42,005 39,187 42,281 48,393 42,281 Secured by farmland 128,731 126,864 117,937 115,000 111,163 128,731 111,163 Home equity 60,636 57,243 53,550 51,393 50,401 60,636 50,401 Residential mortgage loans 280,432 271,089 257,693 249,341 240,139 280,432 240,139 Multifamily 25,912 25,865 25,276 18,854 14,621 25,912 14,621 Owner occupied commercial real estate 91,444 92,564 89,930 96,651 92,302 91,444 92,302 Non-owner occupied commercial real estate 143,206 119,997 116,446 114,434 114,375 143,206 114,375 Commercial and industrial loans 89,313 82,398 81,363 77,013 75,111 89,313 75,111 Credit card and other consumer loans 12,884 12,518 11,804 11,963 12,242 12,884 12,242 Automobile loans 63,509 65,982 69,922 77,080 83,458 63,509 83,458 Other loans 3,766 3,823 4,137 4,219 4,410 3,766 4,410 Total loans held for investment $ 970,176 $ 925,267 $ 896,865 $ 886,253 $ 872,308 $ 970,176 $ 872,308 Asset Quality Nonperforming loans to total loans 3 0.43 % 0.43 % 0.54 % 0.68 % 0.85 % 0.43 % 0.85 % Allowance for credit losses to total loans 2 0.95 % 0.87 % 0.88 % 0.88 % 0.90 % 0.95 % 0.90 % Allowance for credit losses to nonperforming loans 220.16 % 204.94 % 163.13 % 129.35 % 105.31 % 220.16 % 105.31 % Nonperforming assets to total assets 4 0.30 % 0.28 % 0.34 % 0.44 % 0.55 % 0.30 % 0.55 % Net charge-offs to average loans 6 0.17 % 0.06 % 0.09 % 0.50 % 0.49 % 0.11 % 0.28 % Nonperforming loans $ 4,187 $ 3,945 $ 4,849 $ 6,044 $ 7,452 $ 4,187 $ 7,452 Nonperforming assets 4,187 3,945 4,849 6,044 7,452 4,187 7,452 Net charge-offs 410 130 198 1,116 1,059 738 1,778 Capital Ratios 5 Leverage 9.14 % 9.10 % 8.84 % 8.73 % 8.69 % 9.14 % 8.69 % Risk-based capital ratios: Common equity tier 1 capital 13.21 % 13.50 % 13.18 % 13.11 % 12.76 % 13.21 % 12.76 % Tier 1 capital 13.21 % 13.50 % 13.18 % 13.11 % 12.76 % 13.21 % 12.76 % Total capital 14.22 % 14.43 % 14.10 % 14.04 % 13.69 % 14.22 % 13.69 % Other Data Number of banking offices 14 14 14 14 14 14 14 Number of full-time equivalent employees 187 184 179 173 170 187 170 F&M BANK CORP. Non-GAAP Reconciliation (in thousands, except share and per share data) (unaudited) As of 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Tangible Common Equity and Tangible Assets Total Assets (GAAP) $ 1,418,642 $ 1,397,134 $ 1,408,113 $ 1,372,936 $ 1,357,347 Subtract: Goodwill (3,082 ) (3,082 ) (3,082 ) (3,082 ) (3,082 ) Subtract: Core Deposit Intangibles, net (43 ) (47 ) (51 ) (55 ) (63 ) Tangible assets (Non-GAAP) $ 1,415,517 $ 1,394,005 $ 1,404,980 $ 1,369,799 $ 1,354,202 Total Shareholders' Equity (GAAP) $ 110,396 $ 112,108 $ 105,733 $ 103,967 $ 100,731 Subtract: Goodwill (3,082 ) (3,082 ) (3,082 ) (3,082 ) (3,082 ) Subtract: Core Deposit Intangibles, net (43 ) (47 ) (51 ) (55 ) (63 ) Tangible common equity (Non-GAAP) $ 107,271 $ 108,979 $ 102,600 $ 100,830 $ 97,586 Tangible Common Equity to Tangible Assets ratio 7.58 % 7.82 % 7.30 % 7.36 % 7.21 % Tangible Book Value Per Share Tangible Common Equity (Non-GAAP) $ 107,271 $ 108,979 $ 102,600 $ 100,830 $ 97,586 Common shares outstanding, ending 3,554,652 3,551,661 3,552,002 3,525,884 3,530,303 Tangible Book Value Per Share $ 30.18 $ 30.68 $ 28.89 $ 28.60 $ 27.64 1 Ratios are primarily based on daily average balances. 2 Calculated based on Loans Held for Investment, excludes Loans Held for Sale. 3 Calculated based on 90 day past due loans and non-accrual loans to Total Loans. 4 Calculated based on 90 day past due loans, non-accrual loans, and other real estate owned to Total Assets. 5 Capital ratios are for Farmers & Merchants Bank. 6 Annualized SOURCE: F&M Bank Corp. 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