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Farmers and Merchants Bank

Granite Quarry, NC · Cert 2036 · F&M Financial Corp.

State charter, non-member · FDIC · 12 branches

Q2 2026

$998.8MAssets
$541.0MLoans
$842.6MDeposits
$149.4MEquity
Loan mix
97%RE $510.0M3%C&I $14.3M0%Consumer $2.3MQ2 2025Q2 2026
Deposit mix
67%Interest-bearing $564.7M33%Noninterest $277.9MQ2 2025Q2 2026

NIM

5.64%Q2 ’245.59%Q2 ’255.59%Q2 ’26-3%0%

Non-interest income vs. expense

2.93%Q2 ’243.06%Q2 ’252.82%Q2 ’26+4%-13%

Market Position · Charlotte-Concord-Gastonia, NC-SC · 2026 SOD (annual) · 0.2% share · #15 of 47 inst. · $0.8B of $432.7B

31.1% Rowan
5.0% Cabarrus
0.0% Wake

Executive Summary

  • Earnings: ROA of 2.61%, up 37 bps year over year; NIM at 4.91%.
  • Asset quality: problem loans at 0.79% of loans (+59 bps YoY), with net recoveries of 0.42%.
  • Capital: tier 1 leverage ratio of 15.25%, up 79 bps from a year ago.
  • Funding: loans stand at 64.21% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

2.61%+37 bps YoY

Net Interest Margin (quarter, annualized)

4.91%-1 bps YoY

Efficiency Ratio (quarter, annualized)

47.58%-422 bps YoY

Tier 1 Leverage Ratio

15.25%+79 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets2.24%2.31%2.22%2.48%2.61%+37 bps
Return on Equity15.78%15.90%14.93%16.66%17.53%+175 bps
Net Interest Margin4.92%4.98%4.81%4.77%4.91%-1 bps
Efficiency Ratio51.80%51.25%52.61%48.18%47.58%-422 bps
Non-Interest Burden2.08%2.03%2.04%1.69%1.81%-27 bps
Growth
Asset Growth (YoY)4.01%5.33%8.00%6.46%7.27%+326 bps
Loan Growth (YoY)-1.82%-2.28%-0.24%0.40%2.14%+396 bps
Deposit Growth (YoY)2.89%4.61%7.50%6.17%6.60%+371 bps
Asset Quality
Nonperforming Loans / Loans0.20%0.66%0.62%0.67%0.79%+59 bps
Net Charge-Offs / Loans0.01%0.01%0.11%-0.14%-0.42%-43 bps
Allowance / Loans1.98%1.99%1.95%1.96%1.91%-7 bps
Allowance Coverage of NPLs10.1x3.0x3.1x2.9x2.4x-7.7x
Capital
Tier 1 Leverage Ratio14.46%14.80%14.89%15.17%15.25%+79 bps
Total Risk-Based Capital24.91%25.73%25.83%26.73%26.72%+181 bps
Equity / Assets14.28%14.79%14.91%14.84%14.96%+68 bps
Liquidity & Funding
Loans / Deposits67.01%65.98%65.20%63.35%64.21%-280 bps
Liquid Assets / Assets20.69%19.91%17.83%18.12%17.57%-312 bps
CRE / Total Capitaln/a275%271%259%n/an/a