F&M Bank FMBM

F & M Bank Corp. is a one-bank holding company that has elected to become a financial holding company and wholly owns Farmers & Merchants Bank and VST, LLC. The company provides a full range of commercial banking services including demand and time deposit accounts, commercial and individual loans, internet and mobile banking, drive in services, ATMs and a courier service for business customers. It also originates conventional and government agency sponsored mortgages for sale in the secondary market, holds a large portfolio of residential mortgages and indirect auto loans, and through VST offers title insurance services to its market area and the Bank.

The primary source of revenue is interest and fees on loans held for investment, which represented 70.7 percent of total operating revenue in 2025. Additional revenue is generated from service charges on deposit accounts, fees related to mortgage origination and sale, and title insurance premiums earned by VST. The diversified revenue stream supports stable earnings across varying interest rate environments.

Segment Introduction: The company operates through the following segments:

• Banking: This segment encompasses Farmers & Merchants Bank and provides deposit taking, lending, mortgage origination, electronic banking, drive in services, ATM access and courier services to commercial and retail customers. It also manages a substantial portfolio of residential mortgages and indirect auto loans and originates loans for sale in the secondary market.

• Title Insurance: This segment is conducted by VST, LLC and supplies title insurance policies to real estate purchasers, lenders and other parties within the company's geographic market, including services provided to the Bank itself.

Industry Position: F & M Bank Corp. competes with large national and regional banks, other community banks, credit unions, consumer finance companies, mortgage companies, loan production offices, marketplace lenders, fintech firms and mutual funds. Its competitive advantages stem from deep community ties in the Shenandoah Valley, a relationship based lending approach, diversified loan mix and strong capital ratios, with common equity Tier 1 at 13.11 percent and total risk based capital at 14.04 percent, positioning it well above regulatory minimums.

Customer Base: The bank serves individual consumers, small and medium sized businesses, agricultural producers, manufacturers, service providers and governmental entities operating primarily in the Shenandoah Valley region of Virginia. While specific customer names are not disclosed, the client base encompasses retail households, commercial enterprises, farm operations and municipal units that rely on the bank for deposit, lending and related financial services.