Economic Impact Payment Guidance

The Internal Revenue Service and the Treasury Department will soon begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans.

F&M Bank would like to offer some best practices for checking the status of your Economic Impact Payment in advance of the January 4th official payment date.

Economic Impact Payment Guidance from F&M Bank

F&M Bank receives direct deposit transactions from the Federal Reserve twice daily – 9:00am and 4:00pm. There is often a misconception that a direct deposit could arrive at any time throughout the day, however that is not the case. If you do not see payment after 9:00am within your online banking account, check back after 4:00pm on the same business day. The same guidance applies for an over the phone payment inquiry.

For customers receiving a direct deposit payment, consider utilizing deposit alerts within online and mobile banking. After established, you will receive an alert when your payment has posted.

Additionally, the IRS offers the “Get My Payment” tool on their website. Visit this link to check the status of your payment.

Economic Impact Payment Guidance from the IRS

The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of January 4, 2021. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions.

As with the first round of payments under the CARES Act, most recipients will receive these payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.

Anyone who received the first round of payments earlier this year but doesn’t receive a payment via direct deposit will generally receive a check or, in some instances, a debit card. For those in this category, the payments will conclude in January. If additional legislation is enacted to provide for an additional amount, the Economic Impact Payments that have been issued will be topped up as quickly as possible.

To continue reading, please visit the IRS website. Additional guidance and eligibility requirements are provided.

Mail Larceny is on the Rise

The most wonderful time of the year can quickly turn into the most stressful time if you experience fraud. With the holidays approaching, it’s more important than ever to protect yourself from predators.

Mail Larceny

This December, the most consistent fraud concern reported by customers comes in the form of mail theft. We have received numerous reports of checks being stolen from mailboxes. Fraudsters target the holiday season as cash is commonly gifted between friends and family members, donations to nonprofit organizations are more common at year-end, and many municipalities collect tax bills during the latter part of the year. This increased activity creates opportunity for criminals.

Protect Yourself

Instead of mailing cash or checks, consider taking advantage of digital payment solutions offered through your financial institution. Here at F&M Bank, we offer various payment methods through our bill pay system within online and mobile banking. This tool gives our customers the option to set up payees (like a municipality, utility company, etc.) for one-time, or recurring payment. A similar option is available for our commercial clients as well.

You can pay a person too. Gift pay is the perfect option during the holiday season for gift checks or charitable contributions! Or, pay a friend or family member with our P2P cash transfer app. Simply type in the email address or phone number of the recipient and send up to $500.00 for a transaction, for free!

Package Theft

With more people staying indoors due to COVID, online shopping has become the convenient and safe way to buy groceries, household items, clothing, and everyday necessities. And while it’s nice having packages delivered in days or even hours, there are multiple ways a delivery might not make it into your hands.

Protect Yourself

Just this week, the Harrisonburg Police Department issued some great tips to help protect yourself and your packages, and we echo their advice. Most of the major delivery companies such as FedEx, UPS, and USPS offer consumers ways to track packages with email or text notifications, ensuring packages aren’t left or forgotten.

In addition, it is a good idea to create a space near your front door, behind planters or other items, so deliveries can be placed out of site from the street. Installing security cameras can both help prevent porch theft and provide important footage in case a porch pirate strikes.

Watch for Fraud this Holiday Season

Fraudsters are always at work, but financial institutions experience increased fraudulent activity during the holidays. This year is no exception. The pandemic created new opportunities for fraudsters, and paired with holiday scams, our customers are reporting increased fraud this season.

It’s extremely important to carefully guard your financial information, especially during a time when online shopping and cash transfers are prevalent. The FTC provides great advice on spotting and avoiding scams. Please, read through the below and put guidance to practice as you’re shopping online or sending cash this holiday season.

Four Signs That It’s a Scam

Scammers pretend to be from an organization you know or impersonate someone you know.

Scammers often pretend to be contacting you on behalf of the government. They might use a real name, like the Social Security Administration, the IRS, or Medicare, or make up a name that sounds official. Some pretend to be from a business you know, like a utility company, a tech company, or even a charity asking for donations. They use technology to change the phone number that appears on your caller ID. So, the name and number you see might not be real.

Scammers will also pose as a family member or friend and can even use a correct name to identify the person they are claiming to be! Be extra cautious in situations like this as fraudsters will prey on your emotions. They’ll claim bail money is needed, or they’re in a bad situation that requires immediate financial support. If you find yourself in a situation like this, hang up immediately and call your family member or friend directly.

Scammers say there’s a problem or a prize.

They might say you’re in trouble with the government. Or you owe money. Or someone in your family had an emergency. Or that there’s a virus on your computer.

Some scammers say there’s a problem with one of your accounts and that you need to verify some information. Others will lie and say you won money in a lottery or sweepstakes but have to pay a fee to get it.

Scammers pressure you to act immediately.

Scammers want you to act before you have time to think. If you’re on the phone, they might tell you not to hang up so you can’t check out their story. They might threaten to arrest you, sue you, take away your driver’s or business license, or deport you. They might say your computer is about to be corrupted.

Scammers tell you to pay in a specific way.

They often insist that you pay by sending money through a money transfer company or by putting money on a gift card and then giving them the number on the back. Some will send you a check (that will later turn out to be fake), tell you to deposit it, and then send them money.

A commonality in many scam situations is the isolation factor. The scammer wants money fast, but they don’t want you to tell anyone about the transaction. Not a family member, or the bank. This is a major red flag! If someone attempts to isolate you from telling others about the transaction, or how the money is being used, it is a scam.

We are also seeing a rise in spoofing.  Learn more about spoofing scam attempts.

What You Can Do to Avoid a Scam

Block unwanted calls and text messages. Take steps to block unwanted calls and to filter unwanted text messages.

Don’t give your personal or financial information in response to a request that you didn’t expect. Legitimate organizations won’t call, email, or text to ask for your personal information, like your Social Security, bank account, or credit card numbers. If you get an email or text message from a company you do business with and you think it’s real, it’s still best not to click on any links. Instead, contact them using a website you know is trustworthy. Or look up their phone number. Don’t call a number they gave you or the number from your caller ID.

Resist the pressure to act immediately. Legitimate businesses will give you time to make a decision. Anyone who pressures you to pay or give them your personal information is a scammer.

Know how scammers tell you to pay. Never pay someone who insists you pay with a gift card or by using a money transfer service. And never deposit a check and send money back to someone.

Stop and talk to someone you trust. Before you do anything else, tell someone — a friend, a family member, a neighbor — what happened. Talking about it could help you realize it’s a scam.

We Can Help

F&M Bank is here for you! Whether you’d like some guidance determining if a call or email is a scam, or if you’ve fallen victim to fraud, please reach out to your local branch. A member of our team will be ready to assist you!

Additionally, we encourage our customers to take advantage of our digital services.  Instead of sending cash or checks to someone you know through the mail, pay a person within our digital banking bill pay feature or P2P. They are great alternatives! Customers can also enroll in e-statements to protect your account information from mail theft. Lastly, consider Identity Theft Protection. This service is a free add-on with our Cash Reward or Cash Back checking accounts!

COVID-19 Client Resources & Business Help

F&M Bank Corp. Announces Third Quarter Earnings and Dividend

F & M Bank Corp. (OTCQX:FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the third quarter ending September 30, 2020 and third quarter dividend to shareholders.

As the global pandemic continues, the company continually assesses our procedures to maintain the safety of our customers, employees and community while serving their financial needs. Farmers & Merchants Bank continues to operate our branches in a drive-thru only capacity daily, with courier pick up and by appointment lobby transactions.

As of September 30, 2020, we had processed 717 Paycheck Protection Program (PPP) loans for a balance of $62.6 million. These loans are funded by participation in the Federal Reserve Paycheck Protection Program Lending Facility. In addition, we have processed 922 individual loan deferrals. As of September 30, 2020, 99 loans remain in deferral with a balance of $19.1 million which represents 3.1% of loans outstanding exclusive of PPP balances.

Selected financial highlights for the quarter include:

  • Net income of $2.21 million.
  • Net interest margin of 3.60%.
  • Total deposits increased $26.9 million and $175.1 million, respectively for the quarter and for the trailing 12 months.
  • Nonperforming loans decreased to 0.42% of total assets at the end of the quarter from 0.45% on 6/30/20 and 0.98% on 9/30/2019.
  • Allowance for loan losses totaled 1.57% of loans held for investment (1.72% excluding PPP loans).

Mark Hanna, President, commented “Our third quarter earnings of $2.21 million is a slight improvement over second quarter for core earnings ($2.06 million), second quarter total earnings ($2.63 million) included recognition of $567,000 for implementation of a mortgage rate lock derivative associated with our mortgage company pipeline. Our net interest margin of 3.60% shows a historical decline but remains strong especially given the changes in our balance sheet. F&M’s liquidity has increased significantly over the last four quarters and we are implementing strategic solutions to leverage these assets including deploying $102.7 million into the investment portfolio since year end 2019. Despite the current low-rate environment, these strategies should augment our net interest margin in the future.”

Mr. Hanna continued, “Nonperforming loans have improved dramatically over prior year, decreasing $3.7 million since third quarter of 2019, and $1.5 million since year end 2019. We feel these efforts put F&M in a strong position to manage the current economic uncertainty while seeking opportunities for continued growth in the communities we serve.”

On October 23, 2020 our Board of Directors declared a third quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $19.21 per share this constitutes a 5.41% yield on an annualized basis. The dividend will be paid on November 30, 2020, to shareholders of record as of November 14, 2020.”

F & M Bank Corp. is an independent, locally-owned, financial holding company, offering a full range of financial services, through its subsidiary, Farmers & Merchants Bank’s eleven banking offices in Rockingham, Shenandoah, Page and Augusta Counties, Virginia. The Bank also provides additional services through a loan production office located in Penn Laird, VA and through its subsidiaries, F&M Mortgage and VSTitle, both of which are located in Harrisonburg, VA. Additional information may be found by contacting us on the internet at or by calling (540) 896-8941.

This press release may contain “forward-looking statements” as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results 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, changes in interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. 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.

F & M Bank Corp.
Key Statistics

2020 2019
Q3 Q2 Q1 YTD Q3 Q2 Q1 YTD
Net Income (000’s)
$ 2,207 $ 2,626 $ 1,189 $ 6,022 $ (186 ) $ 1,634 $ 1,287 $ 2,735
Net Income available to Common
$ 2,142 $ 2,560 $ 1,123 $ 5,825 $ (265 ) $ 1,556 $ 1,208 $ 2,499
Earnings per common share – basic
$ 0.67 $ 0.80 $ 0.35 $ 1.82 $ (0.08 ) $ 0.48 $ 0.38 $ 0.78
Earnings per common share – diluted
$ 0.65 $ 0.76 $ 0.35 $ 1.76
Return on Average Assets
0.88 % 1.17 % 0.58 % 0.81 % -0.09 % 0.83 % 0.67 % 0.46 %
Return on Average Equity
9.44 % 11.50 % 5.23 % 8.68 % -0.81 % 7.12 % 5.68 % 4.00 %
Dividend Payout Ratio
38.81 % 32.50 % 74.29 % 42.86 % -325.00 % 52.08 % 65.79 % 97.44 %
Net Interest Margin
3.33 % 3.55 % 3.97 % 3.60 % 4.39 % 4.47 % 4.67 % 4.52 %
Yield on Average Earning Assets
3.94 % 4.20 % 4.88 % 4.31 % 5.35 % 5.42 % 5.54 % 5.46 %
Yield on Average Interest Bearing Liabilities
0.87 % 0.92 % 1.27 % 1.00 % 1.34 % 1.33 % 1.21 % 1.29 %
Net Interest Spread
3.07 % 3.28 % 3.61 % 3.31 % 4.01 % 4.09 % 4.33 % 4.17 %
Provision for Loan Losses (000’s)
$ 1,000 $ 800 $ 1,500 $ 3,300 $ 3,750 $ 1,600 $ 1,450 $ 6,800
Net Charge-offs
$ 208 $ 203 $ 453 $ 864 $ 817 $ 483 $ 1,757 $ 3,057
Net Charge-offs as a % of Loans
0.12 % 0.12 % 0.30 % 0.17 % 0.52 % 0.30 % 1.09 % 0.65 %
Non-Performing Loans (000’s)
$ 4,254 $ 4,465 $ 4,168 $ 4,254 $ 7,978 $ 11,688 $ 10,587 $ 7,978
Non-Performing Loans to Total Assets
0.42 % 0.45 % 0.50 % 0.42 % 0.98 % 1.45 % 1.36 % 0.98 %
Non-Performing Assets (000’s)
$ 4,420 $ 5,625 $ 5,504 $ 4,420 $ 9,649 $ 13,657 $ 12,761 $ 9,649
Non-Performing Assets to Assets
0.44 % 0.57 % 0.66 % 0.44 % 1.19 % 1.69 % 1.64 % 1.19 %
Efficiency Ratio
65.35 % 65.33 % 70.51 % 66.94 % 67.63 % 65.32 % 67.15 % 66.70 %
  1. The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are nontaxable (i.e. municipal securities and loan income) then subtracting interest expense. The tax rate utilized is 21%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns nontaxable interest income from municipal loans and securities, net interest income for the ratio is calculated on a tax equivalent basis as described above.
  2. The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The efficiency ratio is a common measure used by the financial service industry to determine operating efficiency. It is calculated by dividing non-interest expense by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investments portfolio and Other Real Estate Owned. The Company calculates this ratio in order to evaluate how efficiently it utilizes its operating structure to create income. An increase in the ratio from period to period indicates the Company is losing a greater percentage of its income to expenses.

F & M Bank Corp.
Financial Highlights

For Nine Months
Ended September 30,
Interest and Dividend Income
$ 27,280,319 $ 29,279,627
Interest Expense
4,515,221 5,025,175
Net Interest Income
22,765,098 24,254,452
Non-Interest Income
9,016,182 6,909,369
Provision for Loan Losses
3,300,000 6,800,000
Impairment of long lived assets
Other Non-Interest Expenses
21,788,981 21,597,748
Income Before Income Taxes
6,673,106 2,766,076
Provision for Income Taxes
545,418 (74,786)
Less Minority Interest (income)/loss
(105,193) (106,161)
Net Income
$ 6,022,495 $ 2,734,661
Dividend on preferred stock
197,194 235,966
Net Income available to common shareholders
$ 5,825,301 $ 2,498,695
Average Common Shares Outstanding
3,197,718 3,175,192
Net Income Per Common Share
Dividends Declared
1.82.78 .78.76
September 30, 2020
September 30, 2019
Cash and Due from Banks
$ 14,504,566 $ 14,324,290
Interest Bearing Bank Deposits
1,237,866 1,599,711
Federal Funds Sold
73,407,000 12,963,000
Loans Held for Sale
88,038,925 80,862,723
Loans Held for Investment 672,524,536 631,828,822
Less Allowance for Loan Losses
(10,825,739) (8,982,258)
Net Loans Held for Investment
661,698,797 622,846,564
118,888,764 20,084,814
Other Assets
57,647,889 60,556,108
Total Assets
$ 1,015,423,807 $ 813,237,210
$ 793,535,570 $ 618,434,553
Short Term Debt
Long Term Debt
106,510,013 64,308,789
Other Liabilities
21,698,045 19,600,307
Total Liabilities
921,743,628 722,343,649
Preferred Stock
4,591,623 5,591,623
Common Equity
89,088,556 85,301,938
Stockholders’ Equity
93,680,179 90,893,561
Total Liabilities and Stockholders’ Equity
$ 1,015,423,807 $ 813,237,210
Book Value Per Common Share
$ 27.85 $ 26.86
Tangible Book Value Per Common Share
$ 27.84 $ 26.89


Carrie Comer
EVP/Chief Financial Officer
540-896-8941 or

Celebrating the Local Business You Love

Earlier this summer, F&M Bank announced the second annual Local Business You Love contest – a $10,000 giveaway for locally-owned, small businesses located throughout the Shenandoah Valley. In 2019, a group of employees created and launched the contest, and for a first year campaign, our expectations were blown away!

“We were thrilled to host the contest again this year and support our neighbors in small business who continue to persevere through an extremely difficult season,” said Mark Hanna, President & CEO.

The contest opened in early August, and over a two week period, we relied on public nominations. Residents of Shenandoah, Page, Rockingham and Augusta Counties, as well as the Cities of Harrisonburg, Staunton and Waynesboro (and neighboring counties and cities), nominated the local businesses they love and shared why they deserve $10,000. F&M Bank received nearly 600 nominations making it quite a task to narrow down the list to 10!

Following the announcement of our Top 10, we opened the contest for public voting. Over a two week period, we received over 2,300 votes to determine our $10,000 winner! On October 6th, F&M Bank celebrated the Top 10 nominees during a reception at the Inn at MeadowCroft in Swoope, VA.


When we received over 2,300 votes, we knew we couldn’t just give away one cash prize, so instead, we surprised our guests and added a $1,500 prize for 2nd place, a $1,000 incentive for 3rd, and a $500 prize for 4th and 5th place.

Plus, all businesses in our Top 10 were awarded an advertising package with Harrisonburg Radio Group to include a featured interview with WSVA’s Jim Britt and 20 branding messages.

The remaining businesses in our Top 10 are as follows: Fort Valley Nursery (Woodstock), Traditions Family Restaurant (Harrisonburg), Blessings Christian Bookstore (Harrisonburg), Green Valley Book Fair (Mt. Crawford), and Creative Wonders Learning Center (Stuarts Draft).


Making our communities better is a core value we live by at F&M Bank. Although our contest is over, will you join us as we continue to support our neighbors? From restaurants to recreation, the Shenandoah Valley is packed full of extraordinary, locally-owned businesses.


We’re here to support you, and our community, in any way that we can. Whether you’re interested in learning more about volunteer opportunities nearby or seeking a local coffee shop recommendation, a member of our team is happy to assist. Our goal is to always provide banking you love from people who care and keep you up to date on all our products and services. 

With a Cash Reward or Cash Back account, you can stop paying extra. In fact, we’ll pay you just for doing banking basics that save you time! You can choose the account, and reward, that works best for you – high interest or cash back. 

Boost your savings with our money market account! This interest-bearing account is a great, low-risk option that offers benefits typical of both a checking and savings account. 

Whether you’re buying a new car or building a new house, we work with you to get the loan you need with the payment plan you can afford. Our loans are designed to meet your needs. Choose the option that works best for you!

We make virtual banking free and easy! Manage text alerts, deposit checks, send money to friends, and pay bills from anywhere in the world on any device.

If we can help you bank local, or answer any financial question you may have, please don’t hesitate to contact a branch near you or complete a quick form.

Online Check Orders

F&M Bank has partnered with a new vendor to manage and process our check orders. You will notice a few minor changes when placing your next online order.

The new check order portal can be accessed through our website, or your online banking account. The look has changed, but you can expect the same functionality! Check orders will be conveniently delivered directly to your address on file.

You may order the standard F&M Bank checks, or shop our vendor’s catalog for custom design options. Those can also be found on our website prior to placing your order.

The online portal is an easy to use option designed for your convenience, however you may still continue to order checks through your local branch if preferred. If you have any questions, please don’t hesitate to contact us!

F&M Bank Announces Officer Promotions

F&M Bank and its Board of Directors would like to congratulate the following individuals on their Officer promotions effective September 24, 2020.

Senior Vice President: 

  • Bobby Williams, Agricultural & Rural Programs Leader

Vice President: 

  • Donna Brown, Commercial Relationship Manager
  • Jordan Dean, Commercial Relationship Manager
  • Ryan May, Relationship Manager (Dealer Finance)

Assistant Vice President:

  • Jason Crum, Branch Manager (Stuarts Draft)
  • Mary Campbell, Assistant Branch Manager (Broadway)
  • Debbie Koogler, Branch Manager (Myers Corner, Staunton)
  • Angela Smith, Assistant Branch Manager (North Augusta, Staunton)
  • Teri Hasley, Deposit Operations Manager

F&M Bank Welcomes Katherine Preston and Kevin Nixon to Commercial Team

We are excited to welcome Katherine Preston, Senior Vice President & Valley Market Executive, and Kevin Nixon, Vice President & Commercial Relationship Manager, to the F&M Bank family.

Katherine PrestonKatherine joins the Senior Leadership Team and brings with her over 20 years of banking experience to include retail, small business, and commercial lending, most recently serving as Vice President and Business Services Officer at BB&T.

“I am thrilled to join a talented team and support the businesses and organizations in Rockingham, Augusta and Shenandoah Counties as Valley Market Executive. In my new role, I look forward to growing strong professional partnerships and fostering continued success in the communities I know and love.”

“We are proud to have Katherine come on board as the Shenandoah Valley Market Executive,” says Garth Knight, Executive Vice President and Chief Lending Officer. “Katherine brings two decades of experience serving her commercial clients at the highest level. She also is a tremendous leader, developing team members and building relationships in her community. The future is bright at F&M Bank with Katherine leading our Commercial Team!”

A lifetime resident of the Shenandoah Valley, Katherine is committed to volunteering and taking part in community investment programs that benefit local needs. She has participated in the United Way Day of Caring and Dancing with the Stars of the ‘Burg in 2017 to support the Harrisonburg-Rockingham Child Day Care Center. She also has enjoyed dedicating 18 years to her daughter’s school and PTSA boards.

Katherine is also a graduate of the Virginia Bankers School of Bank Management, RMA-ECU Commercial Lending School, and the BB&T Banking School at Wake Forest University. Her strong connection to the community and her extensive knowledge of the industry will be an asset as she leads the F&M Commercial Team to continued success throughout the Shenandoah Valley.

Kevin NixonKevin Nixon, Vice President and Commercial Relationship Manager, to the Harrisonburg-Rockingham County Commercial Team. Kevin brings with him over 13 years of commercial lending experience, most recently serving as a Business Development Officer at First Bank.

“I look forward to helping the team here at F&M Bank continue providing excellent customer service and community support. I hope to carry on the proud history that F&M Bank is known for in the Shenandoah Valley,” says Kevin.

“We are excited to welcome Kevin Nixon to the F&M family as a Commercial Relationship Manager,” says Garth Knight, Executive Vice President and Chief Lending Officer. “Kevin brings many years of experience serving clients in the Shenandoah Valley. He is community driven and exemplifies what it means to be a leader.”

Active in his community, Kevin holds membership with the Rockingham County Rotary and Covenant Presbyterian Church. He is a past board member for the United Way of Greater Augusta.

Prior to his career in banking, Kevin owned and operated a business upon receiving his Master of Business Administration degree from Medaille College. His commercial lending knowledge paired with his entrepreneurial background will be a great asset to the F&M team.