Wed, Aug 14, 5:23 PM (153 days ago)
F&M Bank Corp. reported a strong financial performance for Q2 2024, with net income rising to $3.0 million, up from $241,000 in Q2 2023. Key drivers included a recovery of credit losses of $458,000 and a $70,000 increase in net interest income, totaling $8.2 million. The net interest margin improved to 2.72%, supported by higher loan balances and interest rates. Noninterest income also rose to $3.0 million, driven by increases in mortgage banking and investment services income. Year-to-date, net income reached $4.2 million, a significant increase from $1.3 million in 2023, attributed to lower noninterest expenses and improved net interest income. Total assets grew to $1.31 billion, with loans increasing slightly to $826.3 million. Deposits rose to $1.19 billion, reflecting a strategic shift towards time deposits. The allowance for credit losses decreased to $7.8 million, or 0.95% of gross loans, indicating improved credit quality. Nonperforming loans increased to $7.6 million, but the coverage ratio remains healthy at 103.02%. Overall, the bank's capital ratios are robust, supporting continued growth and stability amid economic uncertainties.