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Farmers & Merchants Bank

Timberville, VA · Cert 8668 · F&M Bank Corp.

State charter, Fed member · FED · 16 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks $1B-$10B in assets operating in a single state3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks $1B-$10B in assets operating in a single state (n=257 to 258). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

41

Q2 2024Q2 2026peer median (50)

Asset Quality

33

Q2 2024Q2 2026peer median (50)

Profitability

57

Q2 2024Q2 2026peer median (50)

Liquidity

41

Q2 2024Q2 2026peer median

Efficiency

57

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Farmers & Merchants Bank

Timberville, VA · Cert 8668 · F&M Bank Corp.

State charter, Fed member · FED · 16 branches

Q2 2026

$1.4BAssets
$927.9MLoans
$1.3BDeposits
$116.0MEquity
Loan mix
84%RE $733.3M7%C&I $59.8M9%Consumer $82.1MQ3 2024Q2 2026
Deposit mix
76%Interest-bearing $963.6M24%Noninterest $303.3MQ3 2024Q2 2026

Market Position · Harrisonburg, VA · 2026 SOD (annual) · 26.2% share · #1 of 15 inst. · $0.9B of $3.5B

50.9% Rockingham
11.9% Harrisonburg (City)
17.3% Shenandoah
13.1% Augusta

Executive Summary

  • Earnings: ROA of 1.24%, up 44 bps year over year; NIM at 3.42%.
  • Asset quality: problem loans at 0.43% of loans (-47 bps YoY), with net charge-offs at 0.07%.
  • Capital: tier 1 leverage ratio of 9.10%, up 42 bps from a year ago.
  • Funding: loans stand at 73.24% of deposits as of Q2 2026.

Return on Assets (YTD, annualized)

1.24%+44 bps YoY

Net Interest Margin (YTD, annualized)

3.42%+38 bps YoY

Efficiency Ratio (YTD, annualized)

58.18%-1,252 bps YoY

Tier 1 Leverage Ratio

9.10%+42 bps YoY

NIM

4.66%Q2 ’244.96%Q2 ’255.03%Q2 ’26+23%+13%

Non-interest income vs. expense

2.38%Q2 ’242.65%Q2 ’252.81%Q2 ’26+14%-28%

Year to date, annualized, through each quarter.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.51%0.56%0.74%0.80%0.82%0.85%0.94%1.24%+44 bps
Return on Equity8.00%8.61%10.70%11.40%11.49%11.56%12.04%15.54%+414 bps
Net Interest Margin2.48%2.51%2.86%3.04%3.04%3.02%3.31%3.42%+38 bps
Efficiency Ratio79.05%76.27%76.29%70.70%70.31%69.34%70.82%58.18%-1,252 bps
Non-Interest Burden1.81%1.75%2.00%1.93%1.93%1.88%2.14%1.39%-54 bps
Growth
Asset Growth (YoY)4.84%0.57%-0.27%0.17%1.05%5.56%7.39%6.53%+636 bps
Loan Growth (YoY)3.15%2.31%0.05%2.50%4.87%5.61%8.81%9.03%+653 bps
Deposit Growth (YoY)7.31%5.40%3.85%0.91%1.49%4.30%6.45%5.35%+444 bps
Asset Quality
Nonperforming Loans / Loans0.79%0.84%1.08%0.90%0.85%0.68%0.54%0.43%-47 bps
Net Charge-Offs / Loans0.26%0.31%0.09%0.17%0.27%0.33%0.09%0.07%-10 bps
Allowance / Loans0.96%0.97%0.94%0.98%0.90%0.88%0.88%0.87%-11 bps
Allowance Coverage of NPLs1.2x1.1x0.9x1.1x1.1x1.3x1.6x2.0x+1.0x
Capital
Tier 1 Leverage Ratio8.20%8.23%8.50%8.68%8.69%8.73%8.84%9.10%+42 bps
Total Risk-Based Capital13.23%13.39%13.50%13.73%13.70%14.04%14.10%14.43%+70 bps
Equity / Assets6.83%6.74%7.07%7.31%7.56%7.87%7.80%8.31%+100 bps
Liquidity & Funding
Loans / Deposits68.15%70.23%68.63%70.77%70.42%71.11%70.15%73.24%+247 bps
Liquid Assets / Assets0.04%0.01%0.02%0.03%0.04%0.05%0.05%0.08%+5 bps
CRE / Total Capitaln/an/an/an/a251%247%242%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Farmers & Merchants Bank

Timberville, VA · Cert 8668 · Peer group: banks $1B-$10B in assets operating in a single state (n=257-258) · F&M Bank Corp.

State charter, Fed member · FED · 16 branches

Q2 2026

$1.4BAssets
$927.9MLoans
$1.3BDeposits
$116.0MEquity

Executive Summary

  • Strongest standing: return on equity outperforms 75% of banks $1B-$10B in assets operating in a single state (rank 64 of 258).
  • Widest gap: equity / assets trails 89% of banks $1B-$10B in assets operating in a single state (rank 229 of 258).
  • Overall: at or above the peer median on 6 of 9 directional measures.

Return on Assets

1.24%

Rank 128 of 258

Net Interest Margin

3.42%

Rank 142 of 258

Efficiency Ratio

58.19%

Rank 111 of 257

Equity / Assets

8.31%

Rank 229 of 258

Non-interest income vs. expense

$20.1M$39.8MINCOMEEXPENSE
Unfavorable gap of $19.7M · efficiency ratio beats 57% of banks $1B-$10B in assets operating in a single state
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRank8-Qtr TrendPeer Position
Earnings
Return on Assets1.24%0.93%1.23%1.54%Beats 50%128 / 258n/a
Return on Equity14.90%9.26%11.84%14.74%Beats 75%64 / 258n/a
Net Interest Margin3.42%3.16%3.49%3.88%Beats 45%142 / 258n/a
Efficiency Ratio58.19%51.71%60.30%69.65%Beats 57%111 / 257n/a
Asset Quality
Nonperforming Loans / Loans0.43%0.19%0.46%0.90%Beats 52%125 / 258n/a
Net Charge-Offs / Loans0.16%0.01%0.02%0.07%Beats 14%224 / 258n/a
Capital
Tier 1 Capital Ratio13.50%11.41%12.98%15.12%Beats 57%110 / 258n/a
Total Risk-Based Capital Ratio14.43%12.10%13.91%16.08%Beats 56%114 / 258n/a
Equity / Assets8.31%9.09%10.24%11.72%Beats 11%229 / 258n/a
Liquidity & Funding
Loans / Deposits73.24%73.24%86.34%95.95%25th pctl194 / 258n/a
Loans / Assets66.47%63.01%72.27%78.40%31st pctl178 / 258n/a
Brokered Deposits / Depositsn/aNot reported for this institution