F&M BANK CORP SEC 10-Q Report
F&M Bank Corp, a prominent player in the banking industry, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting its strategic initiatives and market conditions.
Financial Highlights
Total Interest and Dividend Income: The company reported $16.812 million in total interest and dividend income, marking an increase from $15.720 million in the same period last year. This growth was primarily driven by higher interest from securities available for sale.
Net Interest Income: Net interest income rose to $10.527 million, up from $8.201 million, indicating improved interest margins.
Net Income: The company recorded a net income of $2.965 million, slightly down from $3.015 million in the previous year. This decrease was impacted by higher provisions for credit losses.
Net Income Per Share (basic and diluted): Net income per share was $0.84, compared to $0.86 in the prior year, reflecting the slight decrease in net income.
Total Noninterest Income: Total noninterest income decreased to $2.792 million from $2.998 million, primarily due to lower mortgage banking income.
Business Highlights
Segment Reporting: The company's revenue is primarily derived from the business of banking, and financial performance is monitored on a consolidated basis. The Chief Executive Officer evaluates the financial performance of the company’s business components such as revenue streams, significant expenses, and budget to actual results. All operations are considered to be aggregated into one reportable operating segment.
Loan Portfolio Performance: The company has identified several portfolio segments for calculating the allowance for credit losses, including 1-4 family residential construction, other construction, land development and land, secured by farmland, home equity, real estate, multifamily, owner-occupied commercial real estate, other commercial real estate, agriculture loans, commercial and industrial, credit cards, automobile loans, other consumer loans, and municipal loans.
Credit Quality Indicators: Loans are categorized by credit quality indicators such as Pass, Watch, and Substandard. The company uses these indicators to assess the risk and performance of its loan portfolio.
Allowance for Credit Losses: The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected. The company utilizes a Qualitative Scorecard to adjust historical loss information to reflect future expectations.
Nonaccrual and Past Due Loans: As of June 30, 2025, there were $7.6 million in nonaccrual loans. The company closely monitors these loans and has not recognized income on them during the reporting period.
Collateral Dependent Loans: These loans are carried at fair value, which equals the estimated market value of the collateral less estimated costs to sell. The company uses this method for loans where foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral.
Regulatory Capital Matters: The company meets all capital adequacy requirements and is categorized as 'well capitalized' under the regulatory framework for prompt corrective action. This status allows the company to accept brokered deposits without regulatory approval.
Leases: The company has three operating leases for office properties, with a weighted average remaining lease term of 9.60 years and a weighted average discount rate of 3.79%.
Future Outlook: The company does not expect recent accounting pronouncements to have a material effect on its financial statements. The company continues to monitor economic conditions and adjust its operations accordingly.
SEC Filing: F&M BANK CORP [ FMBM ] - 10-Q - Aug. 14, 2025