F & M Bank Corp. announced that it has entered into subordinated note purchase agreement for a private placement of 3.25% fixed-to-floating rate subordinated notes due July 30, 2031 for gross proceeds of $35,000,000 on July 30, 2021. The transaction included participation from certain institutional investors in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933 and the provisions of Rule 506 of Regulation D. The subordinated notes will bear interest rate of 3.25% per year, from and including July 30, 2021 and from July 30, 2026 to, but excluding the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three month SOFR plus 263 basis points. The notes are redeemable, in whole or in part, at the company’s option, on any scheduled interest payment date on or after July 30, 2026, on any interest payment date. All redemptions are subject to the receipt of all required federal and state regulatory approvals, including, but not limited to, the consent of the Federal Reserve. The notes are unsecured and have been structured to qualify initially as tier 2 capital for the company for regulatory capital purposes.