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F&M Bank welcomes Erica Deluhery to Commercial Banking Team

May 25, 2022/in In the Community

F&M Bank’s leadership team welcomes Erica Deluhery to her new role as Vice President, Commercial Relationship Manager. Mrs. Deluhery joins F&M Bank most recently from Frontier Community Bank and brings with her 4 years of community banking experience.

Erica commented, “I’m excited to contribute my experience and expertise to a talented banking team. I look forward to making new connections and growing relationships to provide our clients a ‘best-in-class’ community banking experience.”

In this role, Mrs. Deluhery will build client relationships, supporting small and large Virginia-based businesses. F&M Bank’s Senior Vice President and Valley Market Executive, Katherine Preston, commented, “We are thrilled Erica has joined the F&M Bank family as we continue to grow and achieve our strategic business goals. She brings a wealth of experience to this position and will be integral to our team’s progress moving forward.”

Erica earned a Bachelor of Science in History from Liberty University and is currently entering her final year of Virginia Bankers’ School of Bank Management held in Charlottesville, Virginia. She enjoys spending time with her family, running, and reading a good book. Erica is an active member of the Waynesboro Rotary Club. She will support the bank’s market service area and be based at the Myers Corner bank branch in Staunton, VA.

Contact Erica at the “Get in Touch” form directly below!

Eleven Things to Keep in Mind in a Crazy Market

May 12, 2022/in Personal Finance

Keeping your cool can be hard to do when the market goes on one of its periodic roller-coaster rides. It’s useful to have strategies in place that prepare you both financially and psychologically to handle market volatility. Here are 11 ways to help keep yourself from making hasty decisions that could have a long-term impact on your ability to achieve your financial goals.

Have a game plan

Having predetermined guidelines that recognize the potential for turbulent times can help prevent emotion from dictating your decisions. For example, you might take a core-and-satellite approach, combining the use of buy-and-hold principles for the bulk of your portfolio with tactical investing based on a shorter-term market outlook. You also can use diversification to try to offset the risks of certain holdings with those of others. Diversification may not ensure a profit or protect against a loss, but it can help you understand and balance your risk in advance. And if you’re an active investor, a trading discipline can help you stick to a long-term strategy. For example, you might determine in advance that you will take profits when a security or index rises by a certain percentage, and buy when it has fallen by a set percentage.

Know what you own and why you own it

When the market goes off the tracks, knowing why you originally made a specific investment can help you evaluate whether your reasons still hold, regardless of what the overall market is doing. Understanding how a specific holding fits in your portfolio also can help you consider whether a lower price might actually represent a buying opportunity.

And if you don’t understand why a security is in your portfolio, find out. That knowledge can be particularly important when the market goes south, especially if you’re considering replacing your current holding with another investment.

Remember that everything is relative

Most of the variance in the returns of different portfolios can generally be attributed to their asset allocations. If you’ve got a well-diversified portfolio that includes multiple asset classes, it could be useful to compare its overall performance to relevant benchmarks. If you find that your investments are performing in line with those benchmarks, that realization might help you feel better about your overall strategy.

Even a diversified portfolio is no guarantee that you won’t suffer losses, of course. But diversification means that just because the S&P 500 might have dropped 10% or 20% doesn’t necessarily mean your overall portfolio is down by the same amount.

Tell yourself that this too shall pass

The financial markets are historically cyclical. Even if you wish you had sold at what turned out to be a market peak, or regret having sat out a buying opportunity, you may well get another chance at some point. Even if you’re considering changes, a volatile market can be an inopportune time to turn your portfolio inside out. A well-thought-out asset allocation is still the basis of good investment planning.

Be willing to learn from your mistakes

Anyone can look good during bull markets; smart investors are produced by the inevitable rough patches. Even the best investors aren’t right all the time. If an earlier choice now seems rash, sometimes the best strategy is to take a tax loss, learn from the experience, and apply the lesson to future decisions. Expert help can prepare you and your portfolio to both weather and take advantage of the market’s ups and downs. There is no assurance that working with a financial professional will improve investment results.

Consider playing defense

During volatile periods in the stock market, many investors re-examine their allocation to such defensive sectors as consumer staples or utilities (though like all stocks, those sectors involve their own risks and are not necessarily immune from overall market movements). Dividends also can help cushion the impact of price swings.

Stay on course by continuing to save

Even if the value of your holdings fluctuates, regularly adding to an account designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, your bottom-line number might not be quite so discouraging.

If you’re using dollar-cost averaging — investing a specific amount regularly regardless of fluctuating price levels — you may be getting a bargain by buying when prices are down. However, dollar-cost averaging can’t guarantee a profit or protect against a loss. Also consider your ability to continue purchases through market slumps; systematic investing doesn’t work if you stop when prices are down. Finally, remember that the return and principal value of your investments will fluctuate with changes in market conditions, and shares may be worth more or less than their original cost when you sell them.

Use cash to help manage your mindset

Cash can be the financial equivalent of taking deep breaths to relax. It can enhance your ability to make thoughtful decisions instead of impulsive ones. If you’ve established an appropriate asset allocation, you should have resources on hand to prevent having to sell stocks to meet ordinary expenses or, if you’ve used leverage, a margin call. Having a cash cushion coupled with a disciplined investing strategy can change your perspective on market volatility. Knowing that you’re positioned to take advantage of a downturn by picking up bargains may increase your ability to be patient.

Remember your road map

Solid asset allocation is the basis of sound investing. One of the reasons a diversified portfolio is so important is that strong performance of some investments may help offset poor performance by others. Even with an appropriate asset allocation, some parts of a portfolio may struggle at any given time. Timing the market can be challenging under the best of circumstances; wildly volatile markets can magnify the impact of making a wrong decision just as the market is about to move in an unexpected direction, either up or down. Make sure your asset allocation is appropriate before making drastic changes.

Look in the rear-view mirror

If you’re investing long term, sometimes it helps to take a look back and see how far you’ve come. If your portfolio is down this year, it can be easy to forget any progress you may already have made over the years. Though past performance is no guarantee of future returns, of course, the stock market’s long-term direction has historically been up. With stocks, it’s important to remember that having an investing strategy is only half the battle; the other half is being able to stick to it. Even if you’re able to avoid losses by being out of the market, will you know when to get back in? If patience has helped you build a nest egg, it just might be useful now, too.

Take it easy

If you feel you need to make changes in your portfolio, there are ways to do so short of a total makeover. You could test the waters by redirecting a small percentage of one asset class to another. You could put any new money into investments you feel are well-positioned for the future, but leave the rest as is. You could set a stop-loss order to prevent an investment from falling below a certain level, or have an informal threshold below which you will not allow an investment to fall before selling. Even if you need or want to adjust your portfolio during a period of turmoil, those changes can — and probably should — happen in gradual steps. Taking gradual steps is one way to spread your risk over time, as well as over a variety of asset classes.

Schedule a free portfolio review with our advisors.

Prepared by Broadridge Investor Communications Solutions, Inc.

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

Meet Our Advisors: Kate Bray

May 3, 2022/in In the Community

Kate Bray joined our team in the first quarter of 2021 and quickly became a client favorite. She is currently an Investment Relationship Specialist working closely with Matt Robinson. Her positive energy and eagerness to assist clients helped her obtain all her securities licensing within one year of joining our team. We recently sat down with Kate to reflect on her first year with F&M and learn more about what makes her shine.

What makes Kate, Kate?

I grew up here in Harrisonburg and graduated from Turner Ashby (04). I graduated from George Mason (08) and lived outside of DC for a few years after college working as an executive assistant at a large consulting firm. At 25 I decided to move back to town to purchase and run Cinnamon Bear Bakery & Deli, a small local restaurant and did that for 6 years. After that, I worked for two years as a paralegal and have now landed in my true destined field of financial services. I have a husband, Greg, and an energetic, sweet, and wonderful 6-year-old son, Luke. In my spare time, I love to go to local restaurants & wineries, watch Bravo, go to OrangeTheory, play roller derby, and take my son around to his miscellaneous activities. I like food, wine, tv, and laughing, and I find it very difficult to take anything in life too seriously.

Where are you from?

Harrisonburg, VA

What behavior or personality trait do you most attribute your success to, and why?

Positive thinking and adaptability to work with different personalities and understand where people are coming from to accomplish collective goals.

How do you start your day?

Coffee

What’s a work-related accomplishment that you’re proud of?

I am proud of accomplishing all my securities licensing within a year of coming to F&M Financial Services.

What’s your guilty pleasure?

I love the Real Housewives franchise on Bravo.

Do you have a hidden talent? What is it?

I love to cater parties.

What’s the top destination on your must-visit list?

Fiji

If you could choose a superpower, what would it be?

Telepathy

Share the best piece of advice anyone has ever given you.

Don’t apologize when an apology is not needed or apologize for someone else’s mistake. Take accountability to correct any mistakes you’ve made.
Manifest Destiny.

What activities do you participate in over the weekend?

Roller Derby
Exercise / Kickboxing
Get together with friends at fun local places

List three items on your bucket list

Visit every continent
See a bioluminescent bay
Attend Food & Wine classic in Aspen

If you could quickly and easily learn any new skill, what would it be?

Divination

Kate Bray is a Registered Representative, Osaic Institutions, Inc.

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

Handling Market Volatility

April 28, 2022/in Personal Finance

Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when your money is at stake. Though there’s no foolproof way to handle the ups and downs of the stock market, the following common-sense tips can help.

Don’t put your eggs all in one basket

Diversifying your investment portfolio is one of the key tools for trying to manage market volatility. Because asset classes often perform differently under different market conditions, spreading your assets across a variety of investments such as stocks, bonds, and cash alternatives has the potential to help reduce your overall risk. Ideally, a decline in one type of asset will be balanced out by a gain in another, though diversification can’t eliminate the possibility of market loss.

One way to diversify your portfolio is through asset allocation. Asset allocation involves identifying the asset classes that are appropriate for you and allocating a certain percentage of your investment dollars to each class (e.g., 70% to stocks, 20% to bonds, 10% to cash alternatives). A worksheet or an interactive tool may suggest a model or sample allocation based on your investment objectives, risk tolerance level, and investment time horizon, but that shouldn’t be a substitute for expert advice.

Focus on the forest, not on the trees

As the market goes up and down, it’s easy to become too focused on day-to-day returns. Instead, keep your eyes on your long-term investing goals and your overall portfolio. Although only you can decide how much investment risk you can handle if you still have years to invest, don’t overestimate the effect of short-term price fluctuations on your portfolio.

Look before you leap

When the market goes down and investment losses pile up, you may be tempted to pull out of the stock market altogether and look for less volatile investments. The modest returns that typically accompany low-risk investments may seem attractive when more risky investments are posting negative returns.

But before you leap into a different investment strategy, make sure you’re doing it for the right reasons. How you choose to invest your money should be consistent with your goals and time horizon.

For instance, putting a larger percentage of your investment dollars into vehicles that offer asset preservation and liquidity (the opportunity to easily access your funds) may be the right strategy for you if your investment goals are short term and you’ll need the money soon, or if you’re growing close to reaching a long-term goal such as retirement. But if you still have years to invest, keep in mind that stocks have historically outperformed stable-value investments over time, although past performance is no guarantee of future results. If you move most or all of your investment dollars into conservative investments, you’ve not only locked in any losses you might have, but you’ve also sacrificed the potential for higher returns. Investments seeking to achieve higher rates of return also involve a higher degree of risk.

Look for the silver lining

A down market, like every cloud, has a silver lining. The silver lining of a down market is the opportunity to buy shares of stock at lower prices. One of the ways you can do this is by using dollar-cost averaging. With dollar-cost averaging, you don’t try to “time the market” by buying shares at the moment when the price is lowest. In fact, you don’t worry about price at all. Instead, you invest a specific amount of money at regular intervals over time. When the price is higher, your investment dollars buy fewer shares of an investment, but when the price is lower, the same dollar amount will buy you more shares. A workplace savings plan, such as a 401(k) plan in which the same amount is deducted from each paycheck and invested through the plan, is one of the most well-known examples of dollar-cost averaging in action.

For example, let’s say that you decided to invest $300 each month. As the illustration shows, your regular monthly investment of $300 bought more shares when the price was low and fewer shares when the price was high:

Although dollar-cost averaging can’t guarantee you a profit or avoid a loss, a regular fixed dollar investment may result in a lower average price per share over time, assuming you continue to invest through all types of market conditions.

(This hypothetical example is for illustrative purposes only and does not represent the performance of any particular investment. Actual results will vary.)

Making dollar-cost averaging work for you

Get started as soon as possible. The longer you have to ride out the ups and downs of the market, the more opportunity you have to build a sizable investment account over time.
Stick with it. Dollar-cost averaging is a long-term investment strategy. Make sure you have the financial resources and the discipline to invest continuously through all types of market conditions, regardless of price fluctuations.
Take advantage of automatic deductions. Having your investment contributions deducted and invested automatically makes the process easy and convenient.

Don’t stick your head in the sand

While focusing too much on short-term gains or losses is unwise, so is ignoring your investments. You should check your portfolio at least once a year —more frequently if the market is particularly volatile or when there have been significant changes in your life.

You may need to rebalance your portfolio to bring it back in line with your investment goals and risk tolerance. Rebalancing involves selling some investments in order to buy others. Investors should keep in mind that selling investments could result in a tax liability. Don’t hesitate to get expert help if you need it to decide which investment options are right for you.

Don’t count your chickens before they hatch

As the market recovers from a down cycle, elation quickly sets in. If the upswing lasts long enough, it’s easy to believe that investing in the stock market is a sure thing. But, of course, it never is. As many investors have learned the hard way, becoming overly optimistic about investing during the good times can be as detrimental as worrying too much during the bad times. The right approach in all kinds of markets is to be realistic. Have a plan, stick with it, and strike a comfortable balance between risk and return.

Contact us today for an assessment.

Calan Jansen

Vice President at F&M Bank
Osaic Institutions Financial Advisor with F&M Financial Services, Inc.

Prepared by Broadridge Investor Communications Solutions, Inc.

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

F&M Bank Corp Announces First Quarter 2022 Earnings

April 25, 2022/in Personal Finance, Press Releases

F & M Bank Corp. News and Financials

TIMBERVILLE, VA—April 25, 2022—F & M Bank Corp. (OTCQX: FMBM), parent company (the Company) of Farmers & Merchants Bank today reported net income of $2.5 million for quarter ending March 31, 2022.

Mark Hanna, President, commented “First quarter of 2022 has been a strong quarter for F&M bank with net income of $2.5 million. Deposits grew this quarter another 2.96% and have been deployed into $3 million of net loan growth, excluding PPP and $58 million of new investments in bonds to capitalize on the rising rate environment. We continue to focus strategically on improving our infrastructure and enhancing our digital experience as we expand our reach to organically acquire new banking relationships. Our greater scale, coupled with improvements in asset quality, position F&M for continued success.”

Selected financial highlights include:

Net income of $2.5 million for the quarter ended March 31, 2022.
Total deposit increase of $32.0 million (2.96%) and $249.5 million (28.9%), respectively for the quarter and for the trailing twelve months.
Loans held for investment increase of $3.0 million (.46%) and $35.1 million (5.64%), respectively for the quarter and for the trailing twelve months (excluding PPP loans).
Nonperforming assets as a percent of total assets decreased to .39% from .45% at year end and .57% on March 31, 2021.
Past due loans still accruing decreased to 0.36% of loans held for investment (net of PPP) from 0.49% at year end and 0.52% on March 31, 2021.
Recovery of Provision for Loan Losses of $450,000 for the quarter.
Allowance for loan losses of 1.12% of loans held for investment, excluding PPP.

BALANCE SHEET

Loans

Loans held for investment; net of PPP have grown 5.64% since March 31, 2021. The Agriculture, C&I, CRE and dealer portfolios have experienced growth throughout the quarter and year to date, while the Company has seen a reduction in consumer loans specifically in the 1-4 family residential loan area.

LOAN PORTFOLIO
(dollars in thousands)	3/31/2022	12/31/2021	Change	3/31/2021	Change
Commercial	$ 290,452	$ 286,500	$ 3,952	$ 267,792	$ 22,660
Agriculture	82,460	81,879	581	70,556	11,904
Dealer	111,238	107,346	3,892	96,370	14,868
Consumer	169,617	173,556	(3,939)	183,046	(13,429)
Other	3,733	5,205	(1,472)	4,608	(875)
Loans held for Investment, net of PPP	$ 657,500	$ 654,486	$ 3,014	$ 622,372	$ 35,128

Investments

The Company has continued to leverage excess funds into the available for sale (AFS) investment portfolio in the first quarter of 2022 growing $57.9 million to $462 million. The portfolio is a strong mix of U.S. Treasuries, Agencies, Mortgaged-backed securities, Municipals, and Corporate bonds. The average tax equivalent yield on the portfolio is 1.54% which has equated to $1.5 million in income for the first quarter compared to $461 thousand in the same quarter last year.

AFS INVESTMENT PORTFOLIO

(dollars in thousands)	3/31/22	12/31/21	Change	3/31/21	Change
US Treasury	$ 42,868	$ 29,482	$ 13,386	$ 29,421	$ 13,447
Agency	158,540	133,714	$ 24,826	24,877	$ 133,663
Mortgage-Backed Securities	197,594	183,647	$ 13,947	85,406	$ 112,188
Municipals	32,674	34,337	$ (1,663)	20,692	$ 11,982
Corporates	30,146	22,702	$ 7,444	11,307	$ 18,839
Total Securities	$ 461,822	$ 403,882	$ 57,940	$ 171,703	$ 290,119

Securities Quarterly Income	$ 1,497	$ 1,102	$ 395	$ 461	$ 1,036

Deposits

The Company’s deposit growth during the first quarter of 2022 has been in noninterest bearing accounts ($17.6 million) and money market accounts and savings accounts ($21.1 million) with a decline in NOW and other transactional accounts ($3.6 million) and time deposits ($3.2 million). The Company continues to strategically focus on building primary banking relationships.

DEPOSIT PORFOLIO

(dollars in thousands)	3/31/22	12/31/21	CHANGE	3/31/21	CHANGE
Non Interest Bearing	$ 298,676	$ 280,993	$ 17,683	$ 252,265	$ 46,411
NOW & Other Transactional	188,342	191,969	(3,627)	119,076	69,266
Money market and Savings	504,611	483,476	21,135	363,377	141,234
Certificates of deposit	120,666	123,857	(3,191)	128,034	(7,368)
Total Deposits	$ 1,112,295	$ 1,080,295	$ 32,000	$ 862,752	$ 249,543

Asset Quality

Nonperforming loans as a percent of total assets (net of PPP) continue to decline from 0.57% on March 31, 2021 to 0.39% at March 31, 2022. In addition, classified loans and past due loans declined from the previous twelve months from 9.69% to 6.17% and 0.52% to 0.36%, respectively (net of PPP).

(dollars in thousands)	3/31/2022	12/31/2021	3/31/2021
Non-performing Loans
Non-accrual loans	$ 4,751	$ 5,465	$ 5,755
Over 90 & on Accrual	48	43	28
Total Non-performing Loans	$ 4,799	$ 5,508	$ 5,783
NPL As A % of Total Assets, net of PPP	0.39%	0.45%	0.57%

Watch Total	$ 21,901	$ 24,140	$ 30,681
As A % Of Loans, net of PPP	3.31%	3.67%	4.88%
Substandard Total	$ 18,969	$ 19,713	$ 30,179
As A % Of Loans, net of PPP	2.86%	2.99%	4.80%
Total Watch List	$ 40,870	$ 43,853	$ 60,860
Total Classified As A % of Total Loans, net of PPP	6.17%	6.66%	9.69%

Past Due Loans
30-59 Days Past Due	$ 2,093	$ 2,751	$ 2,730
60-89 Days Past Due	273	432	495
90+ Days Past Due	48	43	28
Total Past Due Loans	$ 2,414	$ 3,226	$ 3,253
Deliquency %, net of PPP	0.36%	0.49%	0.52%

Allowance for Loan and Lease Losses

The allowance for loan losses as a percentage of loans held for investment, net of PPP has declined from 1.56% at March 31, 2021 to 1.12% at March 31, 2022. This decline has been driven by improved asset quality in regard to non-performing, classified and past due loans. Uncertainty in the economy related to the war in Ukraine, inflation and supply chain issues were factored into the allowance for loan losses this quarter as well as growth in the portfolio over the trailing twelve months. The resulting reversal of provision was accretive to quarterly earnings by $450 thousand.

	3/31/2022	12/31/2021	3/31/2021
(dollars in thousands)
Provision for Loan Losses	$ (450)	$ (590)	$ (725)

Allowance for Loan and Leases Losses	$ 7,389	$ 7,748	$ 9,704
ALLL as a % of Loans Held for Investment, net of PPP	1.12%	1.18%	1.56%

INCOME STATEMENT

Net Interest Income

Net interest income reflects growth over the year ended 12/31/21 and quarter ended 3/31/21 of $177 thousand and $380 thousand, respectively. As yields on earning assets continue to decline the Company has been able to support net interest income with savings in interest expense and growth in the investment portfolio while seeking opportunities to leverage the growth in liquidity into higher yielding assets. During the quarter the Company was able to purchase bonds as the market yields climbed. This should add to net interest income in future quarters.

Margin compression has reduced the net interest margin from 3.44% on March 31, 2021, to 2.82% on March 31, 2022. To mitigate this compression, the Company has continued to invest excess funds into securities with better yields. The Company has also slightly reduced cost of funds since March 31, 2021 to 34 basis points through maintaining deposit rates, debt reduction and growth in noninterest bearing deposits.

Noninterest Income

Noninterest income of $2.5 million for the quarter was slightly higher than year end 12/31/21 of $2.4 million but a decline from March 31, 2021, which was $3.4 million. Mortgage originations have declined as rates have increased, as a result the Company is focused on expanding mortgage originators into our newer markets, continuing to utilize our title company and growing our wealth management division.

Noninterest expense

Focusing on infrastructure enhancements, digital processes and expanding into our newer markets has resulted in growth in noninterest expense of 11.25% in the trailing twelve months. Some of the growth is attributed to the charitable donation of a property to the local community, disposing of non-income producing properties and eliminating outdated products.

Paycheck Protection Program

The Company processed 1,080 Paycheck Protection Program (“PPP”) & CARES Act loans during 2020 and 2021 totaling $87.1 million. Fees associated with these loans are amortized over the life of the loan or recognized fully when repaid or forgiven. The Company holds $2.1 million in PPP loans as of March 31, 2022 and recognized $169,000 in PPP fee income in the first quarter.

Dividends Declaration

On April 21, 2022, our Board of Directors declared a fourth quarter dividend of $.26 per share to common shareholders. Based on our most recent trade price of $30.00 per share this constitutes a 3.47% yield on an annualized basis. The dividend will be paid on May 30, 2022, to shareholders of record as of May 15, 2022.”

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 thirteen banking offices in Rockingham, Shenandoah, and Augusta Counties, Virginia and the city of Winchester, VA. The Bank also provides additional services through a loan production office located in Penn Laird, VA, a loan production office in Winchester, 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 www.fmbankva.com or by calling (540) 896-1705.

F & M Bank Corp.

Key Statistics

	2022		2021
	Q1	Q4	Q3	Q2	Q1
Net Income (000’s)	$ 2,528	$ 1,380	$ 2,337	$ 3,220	$ 3,801
Net Income available to Common	$ 2,528	$ 1,379	$ 2,272	$ 3,154	$ 3,736
Earnings per common share – basic	$ 0.74	$ 0.39	$ 0.71	$ 0.98	$ 1.17
Earnings per common share – diluted	$ 0.74	$ 0.40	$ 0.68	$ 0.93	$ 1.11

Return on Average Assets	0.89%	0.46%	0.81%	1.22%	1.56%
Return on Average Equity	10.51%	5.42%	9.18%	13.06%	15.96%
Dividend Payout Ratio excluding Special Dividend	35.14%	66.67%	36.62%	26.53%	22.22%

Net Interest Margin	2.82%	2.48%	2.95%	3.13%	3.44%
Yield on Average Earning Assets	3.17%	3.15%	3.35%	3.56%	3.92%
Yield on Average Interest Bearing Liabilities	0.49%	0.96%	0.57%	0.62%	0.70%
Net Interest Spread	2.68%	2.19%	2.78%	2.94%	3.22%

Provision for Loan Losses (000’s)	$ (450)	$ (590)	$ (235)	$ (1,250)	$ (725)
Net Charge-offs	$ (92)	$ 72	$ 61	$ (272)	$ 45
Net Charge-offs as a % of Loans	-0.01%	0.04%	0.04%	-0.16%	0.03%
Non-Performing Loans (000’s)	$ 4,799	$ 5,508	$ 5,430	$ 5,532	$ 5,783
Non-Performing Loans to Total Assets	0.39%	0.45%	0.46%	0.50%	0.57%
Non-Performing Assets (000’s)	$ 4,799	$ 5,508	$ 5,430	$ 5,532	$ 5,783
Non-Performing Assets to Assets	0.39%	0.45%	0.46%	0.50%	0.57%

Efficiency Ratio	78.68%	82.13%	75.99%	76.07%	68.00%

(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.

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.

SOURCE: F & M Bank Corp.

CONTACT: Carrie Comer EVP/Chief Financial Officer

540-896-1705 or ccomer@fmbankva.com

F&M Bank Opens Old Town Winchester Banking Center

April 25, 2022/in In the Community, Press Releases

A second branch location will follow in late 2022

TIMBERVILLE, Va. (April 25, 2022) – On Monday, April 18, F&M Bank continued its growth in Winchester with a new banking center located in historic Old Town Winchester. This is F&M Bank’s 13^th branch in Virginia. Later in 2022, a second Winchester branch location is slated to open west of Old Town on Amherst Street.

F&M Bank identified Winchester as a strategic growth opportunity due to its thriving local economy, prospering businesses, robust non-profit network, and a community that’s committed to preserving its history while at the same time looking to the future.

“As a bank with more than 100 years of history we look to do business with people and communities that align with our values – and for us, Winchester is a perfect match,” said Mike Wilkerson, Chief Lending Officer and Winchester Market Executive. “The ‘Top of Virginia’ is thriving and our sweet spots of agriculture, non-profit and business banking reflect the needs of our community. In a world of bank consolidation and branch closures, F&M is committed to organic growth and market expansion. When we expand our ability to serve our customers, everybody wins.”

In January 2021, F&M Bank opened a commercial banking and loan production office in the Winchester market with an experienced banking team that has a 20-year history of working together. This northern Shenandoah Valley market has accrued over $36 million in deposits and $21 million in loans. Mr. Wilkerson leads the team, consisting of John Sargent, SVP, and Jonathan Reimer, SVP, Commercial Relationship Managers; and Gail Pryde, Business Relationship Specialist.

Today, with the announcement of its Old Town location opening, this team is excited to leverage their 150 years of combined banking experience to deliver customized loan, deposit, and cash management solutions to business and personal customers.

Lauren Fravel has been named as Banking Center Specialist for the Old Town Winchester location. Lauren brings over 25 years of experience to the team and is eager to welcome new customers. The banking center will also employ associates for F&M Mortgage and VS Title in the coming months.

The branch is located at 3 South Cameron Street, at the corner of Boscawen and Cameron Streets. Hours are 8:30am am to 5:00 pm with extensive digital offerings available online and on the F&M Bank mobile app.

Should I Bank Local in Virginia? What to Consider When Choosing a Financial Institution

April 12, 2022/in Bank Products and Services

Are you new to the Shenandoah Valley and having trouble deciding on where to bank? Unhappy with your current financial institution and looking to switch? Whether you’re looking for a financial institution for personal deposit accounts, mortgage financing, or business banking needs, it can be tough to decide whether to choose a large bank that you see across the country or a local bank with roots in your community, such as F&M Bank. In this article, we’ll help you understand what makes local financial institutions stand out, along with some perks of community banks that you may not be aware of.

What are the different types of financial institutions?

Banks are a crucial part of the U.S. monetary system because they move U.S. currency and provide necessary liquidity to personal and business entities. There are two sets of bank regulators, Federal and State. At the federal level, The Office of the Comptroller of the Currency (OCC), part of the Treasury, charters and supervises national banks. At the state level, banks that don’t work across state lines can be state-chartered. The FDIC oversees state-chartered banks that aren’t members of the Federal Reserve System.

F&M Bank can be traced to 1908, when it started its operation as a state-chartered bank; in 1983 F&M Bank was incorporated in Virginia and became a registered bank holding company. As a bank holding company it is a full-service financial institution, offering complete consumer, business, and financial services – including a full array of digital banking capabilities as well as physical branch locations for your banking needs (as opposed to institutions such as Internet-only banks and credit unions). You will even find that F&M Bank’s online services offer the same capabilities as national banks!

Internet banks: No physical branches, just a website and mobile banking app. Online banks may not have national charters themselves, instead partnering with a traditional bank to hold customer deposits.
Credit unions: Financial institutions that are owned by their members and have certain criteria for membership.

Differences between banks and credit unions

Working with a local financial institution like F&M Bank will likely be your best option. When deciding on where to open a bank account, consider some of the key differences between banks and credit unions:

Credit unions typically have fewer branch locations and financial products/services than banks.
Local community banks like F&M Bank benefit their community through local partnerships, events, and volunteer opportunities.
F&M Bank offers the most convenience and resources through digital banking on your mobile or other personal devices, along with a variety of options for nearby, conveniently located physical branch locations.
Local banks like F&M Bank offer unrivaled expertise related to your community, understanding how to resolve your specific needs for personal and business banking and lending that credit unions or nationwide banks are unable to provide.

Benefits of banking local for your personal deposit accounts

When it comes to your checking and savings accounts, it’s nice to have branch locations conveniently located near your house or job. And not just any branch, but one staffed with friendly employees who live and work in the same community as you. For example, F&M Bank has developed a lot of local expertise over the years. We’ve been supporting personal banking needs in the Shenandoah Valley since 1908. Local banks like F&M also offer branch services like on-site safe deposit boxes and in-house notary services.

Of course, web-based banking tools mean you don’t have to visit a branch just to deposit a check or transfer money between accounts. Local banks have embraced technology in recent years and now offer the same tools as the bigger banks. Enjoy the convenience of banking where and how you want with online banking, mobile banking, person to person payments, and mobile wallet. F&M Bank’s rating in the App Store is 4.8 out of 5 stars – higher than you will find for other options both nationally and locally.

Benefits of banking local for your lending needs

Applying for a loan can be stressful, especially if it’s your first time. The friendly loan officers at your local bank can guide you through the process, turning it from stressful to smooth and pleasant. Whether a home, car, or personal loan, they’ll help you review your options to find the right loan with a payment plan you can afford.

Mortgage Lending

While there are national trends in real estate, it’s still a very local business. The housing market can vary widely from community to community, so working with a local mortgage lender gives you access to local expertise, as well as more flexible lending options. Learn more about the mortgage loans offered by F&M Bank.

Personal Loans

Whether you need an Auto Loan to finance the purchase of your next vehicle, or a general consumer loan to use for a variety of expenses, local decision-making helps you get the right loan. Enjoy swift and local application processing, and greater flexibility in approving loans, from your local bank. When you come to a local lender like F&M Bank, we aim to put you at ease with the loan application process. Learn more about our personal loans.

Benefits of staying local for Wealth Management

Choosing a financial advisor is all about trust. Will they put your best interests first? Do they have experience working with clients who share your background, such as small business owners, blended families, etc.? Whether you are in Harrisonburg or closer to Broadway and Edinburg, you can find local financial advisors who will offer a higher level of service and possess a wealth of local knowledge.

Staying local for Wealth Management means working with a financial advisor who understands your community and can recommend local investment opportunities such as those on our Local Market Dashboard.

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

Bank local with F&M!

Now that you understand the benefits of banking locally, you probably want to find a local financial partner who understands your needs. At F&M Bank, you’ll find personalized attention with customizable solutions for your personal banking needs. In-house decision-making simplifies loan applications and local financial planners understand the community they serve. Get started now! Contact us or visit your nearest branch location in Harrisonburg, Augusta County, or Staunton in the Shenandoah Valley.

National Ag Day with F&M Bank

March 18, 2022/in Bank Products and Services, Go Local Business Profiles, In the Community, Press Releases

National Ag Day

National Ag Day is March 22, 2022! Virginia’s agricultural production is one of the most diverse in the nation. Many Virginia commodities and products rank in the top 10 among all U.S. states. Our local farmers, and other agriculture experts, represent a leading group of industry movers and shakers that support our economy and sustain life for our region, and beyond.

Virginia is home to over 43,000 farms that cover nearly 8 million acres across the Commonwealth. 98% of all farms in the United States are family-owned and operated. These families sacrifice a lot to feed our communities and sustain life throughout our region. F&M strives to thank farmers throughout the year and we encourage our community to take a moment next week to thank a local farmer as we celebrate our farming community!

F&M has been supporting local farmers for over 100 years. We’ve helped farmers navigate several economic cycles from recessions and droughts to boom periods with flourishing production. These experiences and partnerships have helped us develop tailored products that include equipment financing, land expansion, cattle purchases, waste management funding, and lines of credit.

Learn More about our line of Ag products, or contact one of our Agri-Business specialists at agribusiness@fmbankva.com.

Building a Diverse Investment Portfolio: A Guide for New Investors in the Shenandoah Valley

February 25, 2022/in Personal Finance, Wealth Management

Looking for investment help in the Shenandoah Valley? You’ve come to the right place. At F&M Financial Services, we know that investing can feel intimidating when you’re not familiar with the various investment options and terminology. In this article, we’ll cover the basics of building a diversified investment portfolio. From defining common terms to explaining different approaches to investing, you’ll have a better understanding of your investment portfolio. Of course, if you have specific questions or need advice about your portfolio, contact one of our Osaic Institutions Financial Advisors in Harrisonburg, Rockingham County, and Shenandoah County.

Where can I monitor stock values?

Local investors in the Shenandoah Valley can find a real-time market report and see our 14 most popular stocks on the Local Market Dashboard page. Looking for local investing help? Consider investing in local publicly-owned businesses with roots in the Shenandoah Valley. The dashboard provides a bird’s eye view of current share prices on the most popular local stocks, as well as important national indicators such as the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite.

How to diversify your investments

Generally, diversifying* your investment portfolio is a reasonable approach to realizing steady long-term growth of your finances. Understand your various investment options and how they could support your investment goals:

What is a stock?**

Individual stocks represent a share of ownership in a publicly-traded company. Investors can buy stocks ‘a la carte” in the hope that they will increase in value over time. For example, investors who purchased individual Apple stock in 1980 would have seen their bet pay off very well in the years since, if they held onto it.

However, not every bet pays off and it’s hard to know at the Initial Public Offering which companies will become wildly successful like Apple or Tesla, and which will flame out. That’s why many investors prefer to mitigate the risk of individual stock values by investing in index funds or ETFs.

For example, the Dow Jones is a stock market index tracking 30 of the largest blue-chip companies on the stock exchange. You could choose an ETF (Exchange-Traded Fund) that tracks the Dow Jones. ETFs provide broad market exposure to potentially give your portfolio more stability and less risk.

Similarly, the S&P 500 is a stock market index following 500 of the top publicly traded U.S. companies. You can invest in index funds and ETFs that track the S&P.

Lastly, the Nasdaq Composite Index features stocks that are exclusively listed on the Nasdaq stock exchange. It is more tech-heavy than the Dow or S&P and the total number of stocks in the Nasdaq can change often.

What is a bond?

A bond is a unit of corporate debt that can be traded as an asset. Bonds are considered less risky than stocks to invest in because bonds have a fixed interest rate. However, the trade-off for that stability is usually a lower rate of return. That’s why building a diversified portfolio means having both higher-risk/higher-rate-of-return assets like stocks as well as more reliable/lower-rate-of-return assets like bonds.

What is a Mutual Fund?***

Unlike index funds and ETFs, which are not actively managed and only follow stocks, a mutual fund is defined by the U.S. Securities and Exchange Commission as:

A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share represents an investor’s part ownership in the fund and the income it generates.

Because mutual funds already contain a diversified portfolio of stocks, bonds, and short-term debt, buying shares in a mutual fund can be an easy way to diversify your own portfolio.

When it comes to index funds and ETFs vs. mutual funds, one of the main differences is that the cost of management fees tends to be lower for ETFs on average when compared to Mutual Funds. Mutual funds are sold by prospectus only, which may be obtained from a financial professional and should be read carefully before investing. Investors should consider the risks, investment objectives, fees, expenses, and charges disclosed in the prospectus.

CDs, Savings Accounts, and Money Market Accounts

As you approach retirement age, you’ll want to keep a portion of your investment portfolio in a more liquid account where you can earn some interest while having access to the next year or two of cash for living expenses. F&M Bank offers Certificates of Deposit (CDs), Free and Premium Savings Accounts, and Money Market to meet your liquidity needs.

Should I include Real Estate in My Investment Portfolio?

During your investment research, you may have heard of the 20% rule. If you are unfamiliar, the idea is that some investors find value in allocating at least 20% of your portfolio into investments that are outside of the stock market itself. It is popular for many investors to fill this 20% with real estate. This is not a hard and fast rule, however. Some investors may be more comfortable with a smaller or larger percentage of their funds being in real estate. Regardless, it can be a good idea to consider this as a piece of your overall investing strategy. Our financial advisors can help you understand what allocation would be the best fit for you. You also can learn more about F&M Bank’s mortgage lending options to get started with funding a real estate purchase.

Consider Your Risk Tolerance

We’ve covered the risk levels of various investment vehicles such as stocks, bonds, and mutual funds. But you also need to consider your personal tolerance for risk when deciding how much of your portfolio to allocate to different types of investments.

How much time do you have?

Generally, the younger you are the more aggressive you can afford to be with risk. A temporary setback can be overcome with time, while someone close to retirement will want to be more moderate or conservative. However, age isn’t the only factor to consider. Your comfort level with risk, long-term investment goals, and current income are also important.

As a general rule of thumb, a portfolio for each risk level would look like:

Aggressive: About 80% stocks and 20% bonds
Moderate: About 50% stocks and 50% bonds
Conservative: About 20% stocks and 80% bonds

Contact our financial advisors in the Shenandoah Valley to discuss your personal risk tolerance and how to diversify your portfolio accordingly.

Build your investment portfolio with a team you trust!

If you’re looking for Wealth Management services in Virginia, our financial planners guide you through your options for how to invest your money in VA to ensure you understand your investment portfolio and are comfortable with our strategy. Schedule an appointment with an Osaic Institutions Financial Advisor with F&M Financial Services at any of our locations today!

Meet your financial advisor in Edinburg & Broadway, VA!

Meet your financial advisor in Harrisonburg & Staunton, VA!

*Diversification is a method of helping to manage risk. It does not assure a profit or the avoidance of loss.

**Past performance is not a guarantee of future results.

*** Mutual funds are sold by prospectus only, which may be obtained from a financial professional and should be read carefully before investing. Investors should consider the risks, investment objectives, fees, expenses, and charges disclosed in the prospectus. Investment objectives, fees, expenses, and charges disclosed in the prospectus.

Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. F&M Financial Services is a trade name of F&M Bank. Osaic Institutions and F&M Bank are not affiliated.

Securities and Insurance Products:

Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit | Not Insured by Any Federal Government Agency | May Lose Value Including Loss of Principal

F&M Bank Receives Greater Augusta County Chamber of Commerce’s Business Excellence Award

February 18, 2022/in In the Community, Press Releases

Augusta Regional Chamber Announces 2022 Business Excellence Awards Winners

Reprinted with permission from the Greater Augusta Regional Chamber of Commerce

Fishersville, February 16, 2021– As the premier business organization serving Augusta County, Staunton, and Waynesboro, the Greater Augusta Regional Chamber of Commerce represents over 550 diverse businesses that work together to stimulate the economy for this outstanding community. Through the annual Business Excellence Awards, the Chamber is able to recognize the outstanding success of exemplary businesses and individual leaders. Courtney Thompson, President & CEO of the Chamber said, “We are so excited to announce our Business Excellence award winners. We had numerous excellent businesses, organizations and individuals nominated this year and these winners really represent the best of the best.”

The Chamber is very proud to announce the winners of the 2022 Business Excellence Awards:

● New Business of the Year: RX Coffee & More
● Small Business of the Year: Staunton Innovation Hub
● Large Business of the Year: F & M Bank
● Woman Owned Business of the Year: SweetNanaCakes
● Nonprofit of the Year: Blue Ridge Area Food Bank
● Young Professional of the Year: Debbie Irwin, Shenandoah Community Capital Fund
● Citizen of the Year: Dan Layman, Community Foundation of the Central Blue Ridge

The Chamber will honor each of these winners and deliver its year in review at the Business Excellence Awards on March 10 at Hotel 24 South. For more information about the winners or the event, contact Courtney Thompson at (540) 324-1133 or courtney@augustava.com.

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