Virginia | 54-1280811 | |
(State or Other Jurisdiction of | (I.R.S. Employer | |
Incorporation or Organization)
|
Identification No.) |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting Company | þ |
(Do not check if a smaller reporting company) |
Class | Outstandning at May 14, 2014 | |
Common Stock, par value - $5 | 3,287,528 shares |
Part I
|
Financial Information
|
4
|
Item 1.
|
Financial Statements
|
|
Consolidated Statements of Income – Three Months Ended March 31, 2014 and 2013
|
4
|
|
Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2014 and 2013
|
5
|
|
Consolidated Balance Sheets – March 31, 2014 and December 31, 2013
|
6
|
|
Consolidated Statements of Cash Flows – Three Months Ended March 31, 2014 and 2013
|
7
|
|
Consolidated Statements of Changes in Stockholders’ Equity – Three Months Ended March 31, 2014 and 2013
|
8
|
|
Notes to Consolidated Financial Statements
|
9
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
23
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
34
|
Item 4.
|
Controls and Procedures
|
34
|
Part II
|
Other Information
|
35
|
Item 1.
|
Legal Proceedings
|
35
|
Item 1a.
|
Risk Factors
|
35
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
35
|
Item 3.
|
Defaults Upon Senior Securities
|
35
|
Item 4.
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Mine Safety Disclosures
|
35
|
Item 5.
|
Other Information
|
35
|
Item 6.
|
Exhibits
|
35
|
Signatures
|
36 | |
Certifications
|
38 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
Interest income
|
2014
|
2013
|
||||||
Interest and fees on loans held for investment
|
$ | 6,226 | $ | 6,056 | ||||
Interest and fees on loans held for sale
|
15 | 489 | ||||||
Interest on federal funds sold
|
12 | 10 | ||||||
Interest on interest bearing deposits
|
- | 1 | ||||||
Interest on debt securities
|
38 | 43 | ||||||
Total interest income
|
6,291 | 6,599 | ||||||
Interest expense
|
||||||||
Interest on demand deposits
|
167 | 189 | ||||||
Interest on savings accounts
|
28 | 50 | ||||||
Interest on time deposits over $100,000
|
158 | 207 | ||||||
Interest on other time deposits
|
304 | 427 | ||||||
Total interest on deposits
|
657 | 873 | ||||||
Interest on short-term debt
|
2 | 17 | ||||||
Interest on long-term debt
|
291 | 388 | ||||||
Total interest expense
|
950 | 1,278 | ||||||
Net interest income
|
5,341 | 5,321 | ||||||
Provision for loan losses
|
750 | 900 | ||||||
Net interest income after provision for loan losses
|
4,591 | 4,421 | ||||||
Noninterest income
|
||||||||
Service charges
|
257 | 261 | ||||||
Insurance and other commissions
|
22 | 183 | ||||||
Other
|
381 | 324 | ||||||
Income on bank owned life insurance
|
116 | 126 | ||||||
Total noninterest income
|
776 | 894 | ||||||
Noninterest expense
|
||||||||
Salaries
|
1,655 | 1,566 | ||||||
Employee benefits
|
520 | 576 | ||||||
Occupancy expense
|
160 | 160 | ||||||
Equipment expense
|
144 | 135 | ||||||
FDIC insurance assessment
|
180 | 202 | ||||||
Other
|
1,079 | 964 | ||||||
Total noninterest expense
|
3,738 | 3,603 | ||||||
Income before income taxes
|
1,629 | 1,712 | ||||||
Income tax expense
|
476 | 468 | ||||||
Consolidated net income
|
1,153 | 1,244 | ||||||
Net income - Noncontrolling interest (income) loss
|
30 | (28 | ) | |||||
Net Income – F & M Bank Corp
|
$ | 1,183 | $ | 1,216 | ||||
Per share data
|
||||||||
Net income (basic and dilutive)
|
$ | .46 | $ | .49 | ||||
Cash dividends
|
$ | .17 | $ | .17 | ||||
Weighted average shares outstanding
|
2,598,639 | 2,500,473 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2014
|
2013
|
|||||||
Net Income:
|
||||||||
Net Income – F & M Bank Corp
|
$ | 1,183 | $ | 1,216 | ||||
Net Income (loss) attributable to noncontrolling interest
|
(30 | ) | 28 | |||||
Total Net Income:
|
1,153 | 1,244 | ||||||
Unrealized holding gains (losses) on available-for-sale securities:
|
18 | (21 | ) | |||||
Tax Expense (benefit)
|
6 | (7 | ) | |||||
Unrealized holding gain (loss), net of tax
|
12 | (14 | ) | |||||
Total other comprehensive income (loss)
|
12 | (14 | ) | |||||
Comprehensive income
|
$ | 1,165 | $ | 1,230 |
March 31,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 7,189 | $ | 5,835 | ||||
Money market funds
|
842 | 708 | ||||||
Federal funds sold
|
27,988 | 2 | ||||||
Cash and cash equivalents
|
36,019 | 6,545 | ||||||
Securities:
|
||||||||
Held to maturity – fair value of $106 in 2014 and 2013
|
106 | 106 | ||||||
Available for sale
|
11,241 | 30,266 | ||||||
Other investments
|
8,044 | 8,114 | ||||||
Loans held for sale
|
5,578 | 3,804 | ||||||
Loans held for investment
|
486,327 | 478,453 | ||||||
Less allowance for loan losses
|
(8,009 | ) | (8,184 | ) | ||||
Net loans held for investment
|
478,318 | 470,269 | ||||||
Other real estate owned
|
2,437 | 2,628 | ||||||
Bank premises and equipment, net
|
6,514 | 6,525 | ||||||
Interest receivable
|
1,513 | 1,498 | ||||||
Goodwill
|
2,670 | 2,670 | ||||||
Bank owned life insurance
|
12,236 | 12,122 | ||||||
Other assets
|
8,468 | 8,241 | ||||||
Total assets
|
$ | 573,144 | $ | 552,788 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$ | 100,084 | $ | 92,397 | ||||
Interest bearing:
|
||||||||
Demand
|
94,117 | 92,562 | ||||||
Money market accounts
|
25,560 | 24,894 | ||||||
Savings
|
58,280 | 58,292 | ||||||
Time deposits over $100,000
|
69,340 | 69,674 | ||||||
All other time deposits
|
124,163 | 126,330 | ||||||
Total deposits
|
471,544 | 464,149 | ||||||
Short-term debt
|
3,697 | 3,423 | ||||||
Accrued liabilities
|
9,344 | 9,384 | ||||||
Subordinated debt
|
10,191 | 10,191 | ||||||
Long-term debt
|
11,500 | 11,500 | ||||||
Total liabilities
|
506,276 | 498,647 | ||||||
Stockholders’ Equity
|
||||||||
Common stock, $5 par value, 6,000,000 shares authorized,
|
||||||||
3,287,470 and 2,511,735 shares issued and outstanding
|
||||||||
in 2014 and 2013, respectively
|
16,437 | 12,559 | ||||||
Retained earnings
|
50,993 | 42,089 | ||||||
Noncontrolling interest
|
351 | 418 | ||||||
Accumulated other comprehensive loss
|
(913 | ) | (925 | ) | ||||
Total stockholders’ equity
|
66,868 | 54,141 | ||||||
Total liabilities and stockholders’ equity
|
$ | 573,144 | $ | 552,788 |
Three Months Ended March 31,
|
||||||||
2014
|
2013
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$ | 1,183 | $ | 1,216 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
148 | 150 | ||||||
Amortization of security premiums, net
|
24 | 9 | ||||||
Loans held for sale originated
|
(7,222 | ) | (21,708 | ) | ||||
Sale of loans held for sale originated
|
8,629 | 28,623 | ||||||
Provision for loan losses
|
750 | 900 | ||||||
(Increase) Decrease in interest receivable
|
(15 | ) | (4 | ) | ||||
(Increase) Decrease in other assets
|
(356 | ) | 38 | |||||
Increase (decrease) in accrued expenses
|
55 | (363 | ) | |||||
Amortization of limited partnership investments
|
152 | 150 | ||||||
Income from life insurance investment
|
(116 | ) | (126 | ) | ||||
Gain on Other Real Estate Owned
|
(1 | ) | - | |||||
Net adjustments
|
2 048 | 7,669 | ||||||
Net cash provided by operating activities
|
3,231 | 8,885 | ||||||
Cash flows from investing activities
|
||||||||
Purchase of investments available for sale
|
(4,108 | ) | (4,002 | ) | ||||
Proceeds from maturity of investments available for sale
|
23,009 | 3,539 | ||||||
Net (increase) decrease in loans held for investment
|
(9,009 | ) | (934 | ) | ||||
Net (increase) decrease in loans held for sale participations
|
(3,181 | ) | 49,161 | |||||
Proceeds from the sale of other real estate owned
|
401 | 331 | ||||||
Purchase of property and equipment
|
(137 | ) | (88 | ) | ||||
Net cash provided by investing activities
|
6,975 | 48,007 | ||||||
Cash flows from financing activities
|
||||||||
Net change in demand and savings deposits
|
9,895 | 5,792 | ||||||
Net change in time deposits
|
(2,500 | ) | (609 | ) | ||||
Net change in short-term debt
|
274 | (31,425 | ) | |||||
Cash dividends paid
|
(427 | ) | (425 | ) | ||||
Proceeds from issuance of common stock
|
12,026 | 26 | ||||||
Repayment of long-term debt
|
- | (5,429 | ) | |||||
Net cash provided by (used in) financing activities
|
19,268 | (32,070 | ) | |||||
Net Increase in Cash and Cash Equivalents
|
29,474 | 24,822 | ||||||
Cash and cash equivalents, beginning of period
|
6,545 | 8,997 | ||||||
Cash and cash equivalents, end of period
|
$ | 36,019 | $ | 33,819 | ||||
Supplemental disclosure
|
||||||||
Cash paid for:
|
||||||||
Interest expense
|
$ | 981 | $ | 1,237 | ||||
Income taxes
|
- | - | ||||||
Transfers from loans to Other Real Estate Owned
|
397 | 216 | ||||||
Noncash exchange of other real estate owned
|
(188 | ) | - |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2014
|
2013
|
|||||||
Balance, beginning of period
|
$ | 54,141 | $ | 49,384 | ||||
Comprehensive income
|
||||||||
Net income – F & M Bank Corp
|
1,183 | 1,216 | ||||||
Net income attributable to noncontrolling interest
|
(30 | ) | 28 | |||||
Net change in unrealized appreciation on securities available for sale, net of taxes
|
12 | (14 | ) | |||||
Total comprehensive income
|
1,165 | 1,230 | ||||||
Minority Interest Capital Distributions
|
(37 | ) | (51 | ) | ||||
Issuance of common stock
|
12,026 | 26 | ||||||
Dividends declared
|
(427 | ) | (425 | ) | ||||
Balance, end of period
|
$ | 66,868 | $ | 50,164 |
2014
|
2013
|
|||||||||||||||
Market
|
Market
|
|||||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Securities held to maturity
|
||||||||||||||||
U. S. Treasury and agency obligations
|
$ | 106 | $ | 106 | $ | 106 | $ | 106 | ||||||||
Total
|
$ | 106 | $ | 106 | $ | 106 | $ | 106 |
March 31, 2014
|
||||||||||||||||
Unrealized
|
Market
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Government sponsored enterprises
|
$ | 10,080 | $ | 19 | $ | 24 | $ | 10,075 | ||||||||
Mortgage-backed securities
|
1,161 | 5 | - | 1,166 | ||||||||||||
Total
|
$ | 11,241 | $ | 24 | $ | 24 | $ | 11,241 |
December 31, 2013
|
||||||||||||||||
Unrealized
|
Market
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Government sponsored enterprises
|
$ | 29,076 | $ | 11 | $ | 22 | $ | 29,065 | ||||||||
Mortgage-backed securities
|
1,209 | - | 8 | 1,201 | ||||||||||||
Total
|
$ | 30,285 | $ | 11 | $ | 30 | $ | 30,266 |
Securities Held to Maturity
|
Securities Available for Sale
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Due in one year or less
|
$ | 106 | $ | 106 | $ | 2,002 | $ | 1,999 | ||||||||
Due after one year through five years
|
- | - | 8,078 | 8,076 | ||||||||||||
Due after five years
|
- | - | 1,161 | 1,166 | ||||||||||||
Total
|
$ | 106 | $ | 106 | $ | 11,241 | $ | 11,241 |
Less than 12 Months
|
More than 12 Months
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||||||||
March 31, 2014
|
||||||||||||||||||||||||
Government sponsored Enterprises
|
$ | 5,985 | $ | (24 | ) | $ | - | $ | - | $ | 5,985 | $ | (24 | ) | ||||||||||
Total
|
$ | 5,985 | $ | (24 | ) | $ | - | $ | - | $ | 5,985 | $ | (24 | ) | ||||||||||
December 31, 2013
|
||||||||||||||||||||||||
Government sponsored Enterprises
|
$ | 4,984 | $ | (22 | ) | $ | - | $ | - | $ | 4,984 | $ | (22 | ) | ||||||||||
Mortgage backed obligations
|
1,191 | (8 | ) | - | - | 1,191 | (8 | ) | ||||||||||||||||
Total
|
$ | 6,175 | $ | (30 | ) | $ | - | $ | - | $ | 6,175 | $ | (30 | ) |
2014
|
2013
|
|||||||
Construction/Land Development
|
$ | 70,648 | $ | 68,512 | ||||
Farmland
|
12,532 | 13,197 | ||||||
Real Estate
|
155,774 | 154,628 | ||||||
Multi-Family
|
11,693 | 11,797 | ||||||
Commercial Real Estate
|
116,583 | 113,415 | ||||||
Home Equity – closed end
|
9,451 | 10,228 | ||||||
Home Equity – open end
|
47,187 | 47,358 | ||||||
Commercial & Industrial – Non-Real Estate
|
25,953 | 25,903 | ||||||
Consumer
|
8,847 | 10,163 | ||||||
Dealer Finance
|
25,253 | 20,572 | ||||||
Credit Cards
|
2,406 | 2,680 | ||||||
Total
|
$ | 486,327 | $ | 478,453 |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
March 31, 2014
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||
Construction/Land Development
|
$ | 6,898 | $ | 6,898 | $ | - | $ | 5,781 | $ | 29 | ||||||||||
Farmland
|
1,457 | 1,457 | - | 1,470 | 12 | |||||||||||||||
Real Estate
|
48 | 48 | - | 394 | 1 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
1,457 | 1,457 | - | 799 | 23 | |||||||||||||||
Home Equity – closed end
|
308 | 308 | - | 283 | 6 | |||||||||||||||
Home Equity – open end
|
- | - | - | 20 | - | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
279 | 279 | - | 116 | 4 | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
10,447 | 10,447 | 8,865 | 75 | |||||||||||||||||
Impaired loans with a valuation allowance
|
||||||||||||||||||||
Construction/Land Development
|
11,408 | 10,738 | 1,604 | 10,510 | 55 | |||||||||||||||
Farmland
|
- | - | - | - | - | |||||||||||||||
Real Estate
|
1,036 | 1,036 | 157 | 901 | 7 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
1,047 | 1,047 | 214 | 1,168 | 2 | |||||||||||||||
Home Equity – closed end
|
180 | 180 | 22 | 340 | 8 | |||||||||||||||
Home Equity – open end
|
100 | 100 | 12 | 90 | - | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | 141 | - | |||||||||||||||
Consumer
|
- | - | - | 1 | - | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
13,771 | 13,101 | 2,009 | 13,151 | 72 | ||||||||||||||||
Total impaired loans
|
$ | 24,218 | $ | 23,548 | $ | 2,009 | $ | 20,014 | $ | 147 |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
December 31, 2013
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||
Construction/Land Development
|
$ | 3,960 | $ | 4,543 | $ | - | $ | 5,750 | $ | 153 | ||||||||||
Farmland
|
1,459 | 1,459 | - | 1,475 | 67 | |||||||||||||||
Real Estate
|
49 | 49 | - | 529 | 3 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
851 | 851 | - | 616 | 56 | |||||||||||||||
Home Equity – closed end
|
308 | 308 | - | 284 | 25 | |||||||||||||||
Home Equity – open end
|
- | - | - | 20 | - | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
242 | 242 | - | 64 | 12 | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
6,869 | 7,452 | 8,738 | 316 | |||||||||||||||||
Impaired loans with a valuation allowance
|
||||||||||||||||||||
Construction/Land Development
|
8,291 | 9,716 | 1,560 | 10,855 | 175 | |||||||||||||||
Farmland
|
- | - | - | - | - | |||||||||||||||
Real Estate
|
1,145 | 1,145 | 154 | 966 | 48 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
818 | 1,118 | 282 | 1,171 | 4 | |||||||||||||||
Home Equity – closed end
|
180 | 180 | 17 | 409 | 3 | |||||||||||||||
Home Equity – open end
|
100 | 100 | 9 | 93 | 5 | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | 141 | - | |||||||||||||||
Consumer
|
2 | 2 | - | 1 | 1 | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
10,536 | 12,261 | 2,022 | 13,636 | 236 | ||||||||||||||||
Total impaired loans
|
$ | 17,405 | $ | 19,713 | $ | 2,022 | $ | 22,374 | $ | 552 |
March 31, 2014 (in thousands)
|
Beginning Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending Balance
|
Percentage of loans in each category to total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Construction/Land Development
|
$ | 4,007 | $ | 671 | $ | 12 | $ | 557 | $ | 3,905 | 48.76 | % | $ | 1,604 | $ | 2,301 | ||||||||||||||||
Farmland
|
(2 | ) | - | - | - | (2 | ) | (.03 | %) | - | (2 | ) | ||||||||||||||||||||
Real Estate
|
400 | - | - | (22 | ) | 378 | 4.72 | % | 157 | 221 | ||||||||||||||||||||||
Multi-Family
|
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Commercial Real Estate
|
777 | - | 11 | (81 | ) | 707 | 8.82 | % | 214 | 493 | ||||||||||||||||||||||
Home Equity – closed end
|
157 | - | - | (10 | ) | 147 | 1.84 | % | 22 | 125 | ||||||||||||||||||||||
Home Equity – open end
|
476 | 29 | - | 18 | 465 | 5.81 | % | 12 | 453 | |||||||||||||||||||||||
Commercial & Industrial – Non-Real Estate
|
1,464 | 242 | 17 | 187 | 1,426 | 17.80 | % | - | 1,426 | |||||||||||||||||||||||
Consumer
|
156 | 30 | 5 | (3 | ) | 128 | 1.60 | % | - | 128 | ||||||||||||||||||||||
Dealer Finance
|
628 | - | - | 121 | 749 | 9.36 | % | - | 749 | |||||||||||||||||||||||
Credit Cards
|
121 | 14 | 16 | (17 | ) | 106 | 1.32 | % | - | 106 | ||||||||||||||||||||||
Unallocated
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
$ | 8,184 | $ | 986 | $ | 61 | $ | 750 | $ | 8,009 | 100 | % | $ | 2,009 | $ | 6,000 |
December 31, 2013 (in thousands)
|
Beginning Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending Balance
|
Percentage of loans in each category to total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Construction/Land Development
|
$ | 2,771 | $ | 2,127 | $ | 40 | $ | 3,323 | $ | 4,007 | 48.96 | % | $ | 1,560 | $ | 2,447 | ||||||||||||||||
Farmland
|
(2 | ) | - | - | - | (2 | ) | (.03 | %) | - | (2 | ) | ||||||||||||||||||||
Real Estate
|
924 | 173 | - | (351 | ) | 400 | 4.89 | % | 154 | 246 | ||||||||||||||||||||||
Multi-Family
|
(37 | ) | - | - | 37 | - | - | - | - | |||||||||||||||||||||||
Commercial Real Estate
|
1,113 | 201 | 42 | (177 | ) | 777 | 9.49 | % | 282 | 495 | ||||||||||||||||||||||
Home Equity – closed end
|
360 | 159 | - | (44 | ) | 157 | 1.92 | % | 17 | 140 | ||||||||||||||||||||||
Home Equity – open end
|
659 | 68 | 29 | (144 | ) | 476 | 5.82 | % | 9 | 467 | ||||||||||||||||||||||
Commercial & Industrial – Non-Real Estate
|
2,113 | 986 | 127 | 210 | 1,464 | 17.89 | % | - | 1,464 | |||||||||||||||||||||||
Consumer
|
51 | 173 | 14 | 264 | 156 | 1.91 | % | - | 156 | |||||||||||||||||||||||
Dealer Finance
|
72 | 17 | - | 573 | 628 | 7.68 | % | - | 628 | |||||||||||||||||||||||
Credit Cards
|
130 | 121 | 28 | 84 | 121 | 1.48 | % | - | 121 | |||||||||||||||||||||||
Unallocated
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
$ | 8,154 | $ | 4,025 | $ | 280 | $ | 3,775 | $ | 8,184 | 100 | % | $ | 2,022 | $ | 6,162 |
March 31, 2014
|
Loan Receivable
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
|||||||||
Construction/Land Development
|
$ | 70,648 | $ | 18,306 | $ | 52,342 | ||||||
Farmland
|
12,532 | 1,457 | 11,075 | |||||||||
Real Estate
|
155,774 | 1,084 | 154,690 | |||||||||
Multi-Family
|
11,693 | - | 11,693 | |||||||||
Commercial Real Estate
|
116,583 | 2,504 | 114,079 | |||||||||
Home Equity – closed end
|
9,451 | 488 | 8,963 | |||||||||
Home Equity –open end
|
47,187 | 100 | 47,087 | |||||||||
Commercial & Industrial – Non-Real Estate
|
25,953 | 279 | 25,674 | |||||||||
Consumer
|
8,847 | - | 8,847 | |||||||||
Dealer Finance
|
25,253 | - | 25,253 | |||||||||
Credit Cards
|
2,406 | - | 2,406 | |||||||||
$ | 486,327 | $ | 24,218 | $ | 462,108 | |||||||
Total
|
December 31, 2013
|
Loan Receivable
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
|||||||||
Construction/Land Development
|
$ | 68,512 | $ | 14,259 | $ | 54,253 | ||||||
Farmland
|
13,197 | 1,459 | 11,738 | |||||||||
Real Estate
|
154,628 | 1,194 | 153,434 | |||||||||
Multi-Family
|
11,797 | - | 11,797 | |||||||||
Commercial Real Estate
|
113,415 | 1,969 | 111,446 | |||||||||
Home Equity – closed end
|
10,228 | 488 | 9,740 | |||||||||
Home Equity –open end
|
47,358 | 100 | 47,258 | |||||||||
Commercial & Industrial – Non-Real Estate
|
25,903 | 242 | 25,661 | |||||||||
Consumer
|
10,163 | 2 | 10,161 | |||||||||
Dealer Finance
|
20,572 | 20,572 | ||||||||||
Credit Cards
|
2,680 | - | 2,680 | |||||||||
$ | 478,453 | $ | 19,713 | $ | 458,740 | |||||||
Total
|
30-59 Days Past due
|
60-89 Days Past Due
|
Greater than 90 Days (excluding non-accrual)
|
Non-Accrual Loans
|
Total Past Due
|
Current
|
Total Loan Receivable
|
||||||||||||||||||||||
March 31, 2014
|
||||||||||||||||||||||||||||
Construction/Land Development
|
$ | 1,073 | $ | 2,374 | $ | - | $ | 7,935 | $ | 11,382 | $ | 59,266 | $ | 70,648 | ||||||||||||||
Farmland
|
98 | - | - | - | 98 | 12,434 | 12,532 | |||||||||||||||||||||
Real Estate
|
4,337 | 646 | - | 1,291 | 6,274 | 149,500 | 155,774 | |||||||||||||||||||||
Multi-Family
|
- | - | - | - | - | 11,693 | 11,693 | |||||||||||||||||||||
Commercial Real Estate
|
2,268 | - | - | 1,287 | 3,555 | 113,028 | 116,583 | |||||||||||||||||||||
Home Equity – closed end
|
18 | - | - | 171 | 189 | 9,262 | 9,451 | |||||||||||||||||||||
Home Equity – open end
|
609 | 25 | 10 | 119 | 763 | 46,424 | 47,187 | |||||||||||||||||||||
Commercial & Industrial – Non- Real Estate
|
1,412 | 14 | - | 176 | 1,602 | 24,351 | 25,953 | |||||||||||||||||||||
Consumer
|
153 | 54 | 4 | - | 211 | 8,636 | 8,847 | |||||||||||||||||||||
Dealer Finance
|
304 | 78 | 58 | - | 440 | 24,813 | 25,253 | |||||||||||||||||||||
Credit Cards
|
6 | 3 | 7 | - | 16 | 2,390 | 2,406 | |||||||||||||||||||||
Total
|
$ | 10,278 | $ | 3,194 | $ | 79 | $ | 10,979 | $ | 24,530 | $ | 461,797 | $ | 486,327 |
30-59 Days Past due
|
60-89 Days Past Due
|
Greater than 90 Days (excluding non-accrual)
|
Non-Accrual Loans
|
Total Past Due
|
Current
|
Total Loan Receivable
|
||||||||||||||||||||||
December 31, 2013
|
||||||||||||||||||||||||||||
Construction/Land Development
|
$ | 167 | $ | 735 | $ | - | $ | 8,556 | $ | 9,458 | $ | 59,054 | $ | 68,512 | ||||||||||||||
Farmland
|
- | - | - | - | - | 13,197 | 13,197 | |||||||||||||||||||||
Real Estate
|
4,659 | 920 | 246 | 1,407 | 7,232 | 147,396 | 154,628 | |||||||||||||||||||||
Multi-Family
|
107 | - | - | - | 107 | 11,690 | 11,797 | |||||||||||||||||||||
Commercial Real Estate
|
858 | - | - | 1,474 | 2,332 | 111,083 | 113,415 | |||||||||||||||||||||
Home Equity – closed end
|
122 | 79 | 10 | 180 | 391 | 9,837 | 10,228 | |||||||||||||||||||||
Home Equity – open end
|
549 | 39 | 51 | 222 | 861 | 46,497 | 47,358 | |||||||||||||||||||||
Commercial & Industrial – Non- Real Estate
|
148 | 20 | 4 | 416 | 588 | 25,315 | 25,903 | |||||||||||||||||||||
Consumer
|
169 | 71 | 5 | - | 245 | 9,918 | 10,163 | |||||||||||||||||||||
Dealer Finance
|
335 | 72 | 11 | - | 418 | 20,154 | 20,572 | |||||||||||||||||||||
Credit Cards
|
21 | 3 | - | - | 24 | 2,656 | 2,680 | |||||||||||||||||||||
Total
|
$ | 7,135 | $ | 1,939 | $ | 327 | $ | 12,255 | $ | 21,656 | $ | 456,797 | $ | 478,453 |
AS OF MARCH 31, 2014
|
||||||||||||||||||
Corporate Credit Exposure
|
||||||||||||||||||
Credit Risk Profile by Creditworthiness Category
|
Grade 1 Minimal Risk
|
Grade 2 Modest Risk
|
Grade 3 Average Risk
|
Grade 4 Acceptable Risk
|
Grade 5 Marginally Acceptable
|
Grade 6 Watch
|
Grade 7 Substandard
|
Grade 8 Doubtful
|
Total
|
||||||||||||||||||||||||||||
Construction/Land Development
|
$ | - | $ | - | $ | 5,734 | $ | 25,374 | $ | 11,206 | $ | 1,257 | $ | 27,077 | $ | - | $ | 70,648 | ||||||||||||||||||
Farmland
|
68 | - | 1,358 | 4,103 | 5,449 | - | 1,554 | - | 12,532 | |||||||||||||||||||||||||||
Real Estate
|
- | 555 | 68,256 | 52,815 | 19,864 | 6,066 | 8,218 | - | 155,774 | |||||||||||||||||||||||||||
Multi-Family
|
- | 649 | 4,382 | 2,041 | 4,621 | - | - | 11,693 | ||||||||||||||||||||||||||||
Commercial Real Estate
|
- | 1,554 | 23,899 | 56,142 | 20,577 | 12,241 | 2,170 | - | 116,583 | |||||||||||||||||||||||||||
Home Equity – closed end
|
- | - | 4,483 | 3,064 | 1,418 | 246 | 240 | - | 9,451 | |||||||||||||||||||||||||||
Home Equity – open end
|
- | 1,574 | 12,861 | 26,189 | 5,756 | 306 | 501 | - | 47,187 | |||||||||||||||||||||||||||
Commercial & Industrial (Non-Real Estate)
|
777 | 120 | 4,272 | 15,165 | 2,936 | 2,454 | 229 | - | 25,953 | |||||||||||||||||||||||||||
Total
|
$ | 845 | $ | 4,452 | $ | 125,245 | $ | 184,893 | $ | 71,827 | $ | 22,570 | $ | 39,989 | $ | - | $ | 449,821 |
Credit Cards
|
Consumer
|
|||||||
Performing
|
$ | 2,399 | $ | 34,038 | ||||
Non performing
|
7 | 62 | ||||||
Total
|
$ | 2,406 | $ | 34,100 |
CREDIT QUALITY INDICATORS (in thousands)
|
||||||||||||||||||
AS OF DECEMBER 31, 2013
|
||||||||||||||||||
Corporate Credit Exposure
|
||||||||||||||||||
Credit Risk Profile by Creditworthiness Category
|
Grade 1 Minimal Risk
|
Grade 2 Modest Risk
|
Grade 3 Average Risk
|
Grade 4 Acceptable Risk
|
Grade 5 Marginally Acceptable
|
Grade 6 Watch
|
Grade 7 Substandard
|
Grade 8 Doubtful
|
Total
|
||||||||||||||||||||||||||||
Construction/Land Development
|
$ | - | $ | - | $ | 3,166 | $ | 25,657 | $ | 11,116 | $ | 2,946 | $ | 25,627 | $ | - | $ | 68,512 | ||||||||||||||||||
Farmland
|
69 | - | 1,406 | 5,206 | 4,816 | 143 | 1,557 | - | 13,197 | |||||||||||||||||||||||||||
Real Estate
|
- | 562 | 68,241 | 52,190 | 19,037 | 7,821 | 6,777 | - | 154,628 | |||||||||||||||||||||||||||
Multi-Family
|
- | 668 | 4,442 | 2,275 | 4,412 | - | - | - | 11,797 | |||||||||||||||||||||||||||
Commercial Real Estate
|
- | 1,897 | 18,062 | 55,350 | 21,677 | 13,406 | 3,023 | - | 113,415 | |||||||||||||||||||||||||||
Home Equity – closed end
|
- | - | 4,574 | 3,117 | 1,870 | 281 | 386 | - | 10,228 | |||||||||||||||||||||||||||
Home Equity – open end
|
- | 1,482 | 13,308 | 26,734 | 4,840 | 327 | 667 | - | 47,358 | |||||||||||||||||||||||||||
Commercial & Industrial (Non-Real Estate)
|
815 | 92 | 3,631 | 16,265 | 3,108 | 1,516 | 476 | - | 25,903 | |||||||||||||||||||||||||||
Total
|
$ | 884 | $ | 4,701 | $ | 116,830 | $ | 186,794 | $ | 70,876 | $ | 26,440 | $ | 38,513 | $ | - | $ | 445,038 | ||||||||||||||||||
Credit Cards
|
Consumer
|
|||||||
Performing
|
$ | 2,680 | $ | 30,719 | ||||
Non performing
|
- | 16 | ||||||
Total
|
$ | 2,680 | $ | 30,735 |
Three Months Ended
|
||||||||
March 31,
2014
|
March 31,
2013
|
|||||||
Service cost
|
$ | 125,257 | $ | 149,983 | ||||
Interest cost
|
94,427 | 87,578 | ||||||
Expected return on plan assets
|
(174,563 | ) | (159,020 | ) | ||||
Amortization of net obligation at transition
|
- | - | ||||||
Amortization of prior service cost
|
(3,809 | ) | (3,809 | ) | ||||
Amortization of net loss
|
9,028 | 50,796 | ||||||
Net periodic pension cost
|
$ | 50,340 | $ | 125,528 |
Fair Value at
March 31,
2014
|
Valuation Technique
|
Significant Unobservable Inputs
|
Range
|
||||||||
Impaired Loans
|
$ | 11,762 |
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55 | % | |||||
Other Real Estate Owned
|
$ | 2,437 |
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55 | % |
Fair Value at
December 31,
2013
|
Valuation Technique
|
Significant Unobservable Inputs
|
Range
|
||||||||
Impaired Loans
|
$ | 10,239 |
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55 | % | |||||
Other Real Estate Owned
|
$ | 2,628 |
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55 | % |
March 31, 2014
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Government sponsored enterprises
|
$ | 10,075 | $ | - | $ | 10,075 | $ | - | ||||||||
Mortgage-backed obligations of federal agencies
|
1,166 | - | 1,166 | - | ||||||||||||
Investment securities available for sale
|
$ | 11,241 | $ | - | $ | 11,241 | $ | - | ||||||||
Total assets at fair value
|
$ | 11,241 | $ | - | $ | 11,241 | $ | - | ||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Derivative financial instruments at fair value
|
$ | 30 | $ | - | $ | 30 | $ | - |
December 31, 2013
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Government sponsored enterprises
|
$ | 29,065 | $ | - | $ | 29,065 | $ | - | ||||||||
Mortgage-backed obligations of federal agencies
|
1,201 | - | 1,201 | - | ||||||||||||
Investment securities available for sale
|
30,266 | - | 30,266 | - | ||||||||||||
Total assets at fair value
|
$ | 30,266 | $ | - | $ | 30,266 | $ | - | ||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Derivative financial instruments at fair value
|
$ | 31 | $ | - | $ | 31 | $ | - |
March 31, 2014
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Other Real Estate Owned
|
$ | 2,437 | - | - | $ | 2,437 | ||||||||||
- | - | |||||||||||||||
Construction/Land Development
|
9,804 | - | - | 9,804 | ||||||||||||
Farmland
|
- | - | - | - | ||||||||||||
Real Estate
|
879 | - | - | 879 | ||||||||||||
Multi-Family
|
- | - | - | - | ||||||||||||
Commercial Real Estate
|
834 | - | - | 834 | ||||||||||||
Home Equity – closed end
|
158 | - | - | 158 | ||||||||||||
Home Equity – open end
|
87 | - | - | 87 | ||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | - | ||||||||||||
Consumer
|
- | - | - | - | ||||||||||||
Credit cards
|
- | - | - | - | ||||||||||||
Dealer Finance
|
- | - | - | - | ||||||||||||
Total Impaired loans
|
11,762 | - | - | 11,762 | ||||||||||||
Total assets at fair value
|
$ | 14,199 | $ | - | $ | - | $ | 14,199 | ||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - |
December 31, 2013
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Other Real Estate Owned
|
$ | 2,628 | - | - | $ | 2,628 | ||||||||||
- | - | |||||||||||||||
Construction/Land Development
|
8,156 | - | - | 8,156 | ||||||||||||
Farmland
|
- | - | - | - | ||||||||||||
Real Estate
|
991 | - | - | 991 | ||||||||||||
Multi-Family
|
- | - | - | - | ||||||||||||
Commercial Real Estate
|
836 | - | - | 836 | ||||||||||||
Home Equity – closed end
|
163 | - | - | 163 | ||||||||||||
Home Equity – open end
|
91 | - | - | 91 | ||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | - | ||||||||||||
Consumer
|
2 | - | - | 2 | ||||||||||||
Credit cards
|
- | - | - | - | ||||||||||||
Dealer Finance
|
- | - | - | - | ||||||||||||
Total Impaired loans
|
10,239 | - | - | 10,239 | ||||||||||||
Total assets at fair value
|
$ | 12,867 | - | $ | - | 12,867 | ||||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - |
March 31, 2014
|
December 31, 2013
|
|||||||||||||||
Estimated
|
Carrying
|
Estimated
|
Carrying
|
|||||||||||||
Fair Value
|
Value
|
Fair Value
|
Value
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Loans
|
$ | 519,034 | $ | 487,327 | $ | 512,250 | $ | 478,453 | ||||||||
Financial Liabilities
|
||||||||||||||||
Time deposits
|
$ | 210,592 | $ | 193,503 | 197,729 | 196,004 | ||||||||||
Long-term debt
|
$ | 12,609 | $ | 11,500 | 12,613 | 11,500 |
March 31, 2014
|
|||||||||||
Pre-Modification
|
Post-Modification
|
||||||||||
Outstanding
|
Outstanding
|
||||||||||
Number of Contracts
|
Recorded Investment
|
Recorded Investment
|
|||||||||
Troubled Debt Restructurings
|
|||||||||||
Commercial
|
6 | $ | 2,328 | $ | 2,328 | ||||||
Real Estate
|
3 | 600 | 600 | ||||||||
Home Equity
|
2 | 280 | 280 | ||||||||
Credit Cards
|
- | - | |||||||||
Consumer
|
- | - | |||||||||
Total
|
$ | 3,208 | $ | 3,208 |
In thousands
|
2014
|
2013
|
||||||
Net Income from Bank Operations
|
$ | 1,136 | $ | 1,207 | ||||
Income or (loss) from Parent Company Activities
|
47 | 9 | ||||||
Net Income for the three months ended March 31
|
$ | 1,183 | $ | 1,216 |
March 31,
2014
|
December 31,
2013
|
|||||||
Nonaccrual Loans
|
||||||||
Real Estate
|
$ | 9,226 | $ | 9,963 | ||||
Commercial
|
1,463 | 1,890 | ||||||
Home Equity
|
290 | 402 | ||||||
Other
|
- | - | ||||||
10,979 | 12,255 | |||||||
Loans past due 90 days or more (excluding nonaccrual)
|
||||||||
Real Estate
|
- | 246 | ||||||
Commercial
|
- | 4 | ||||||
Home Equity
|
10 | 61 | ||||||
Other
|
69 | 16 | ||||||
79 | 327 | |||||||
Total Nonperforming loans
|
$ | 11,058 | $ | 12,582 | ||||
Nonperforming loans as a percentage of loans held for investment
|
2.27 | % | 2.63 | % | ||||
Net Charge Offs to total loans held for investment
|
.19 | % | .78 | % | ||||
Allowance for loan and lease losses to nonperforming loans
|
72.43 | % | 65.05 | % |
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||
March 31, 2014
|
March 31, 2013
|
|||||||||||||||||||||||
Average
|
Income/
|
Average
|
Income/
|
Average
|
||||||||||||||||||||
Balance2,4
|
Expense
|
Rates
|
Balance2,4
|
Expense
|
Rates
|
|||||||||||||||||||
Interest income
|
||||||||||||||||||||||||
Loans held for investment1,2
|
$ | 482,444 | $ | 6,245 | 5.25 | % | $ | 467,240 | $ | 6,238 | 5.41 | % | ||||||||||||
Loans held for sale
|
1,663 | 15 | 3.66 | % | 42,362 | 330 | 3.16 | % | ||||||||||||||||
Federal funds sold
|
24,126 | 13 | .22 | % | 20,144 | 10 | .20 | % | ||||||||||||||||
Interest bearing deposits
|
694 | - | - | 1,690 | 2 | .48 | % | |||||||||||||||||
Investments
|
||||||||||||||||||||||||
Taxable 3
|
13,302 | 38 | 1.13 | % | 12,463 | 43 | 1.40 | % | ||||||||||||||||
Partially taxable
|
106 | - | - | 107 | 0 | - | ||||||||||||||||||
Total earning assets
|
$ | 522,335 | $ | 6,311 | 4.90 | % | $ | 544,006 | $ | 6,623 | 4.94 | % | ||||||||||||
Interest Expense
|
||||||||||||||||||||||||
Demand deposits
|
119,567 | 167 | .57 | % | 122,253 | 189 | .63 | % | ||||||||||||||||
Savings
|
56,211 | 28 | .20 | % | 49,942 | 50 | .41 | % | ||||||||||||||||
Time deposits
|
198,932 | 462 | .94 | % | 204,426 | 634 | 1.26 | % | ||||||||||||||||
Short-term debt
|
3,540 | 2 | .23 | % | 13,679 | 17 | .50 | % | ||||||||||||||||
Long-term debt
|
21,691 | 291 | 5.44 | % | 42,929 | 388 | 3.67 | % | ||||||||||||||||
Total interest bearing liabilities
|
$ | 399,941 | $ | 950 | .96 | % | $ | 433,229 | $ | 1,278 | 1.20 | % | ||||||||||||
Tax equivalent net interest income 1
|
$ | 5,361 | $ | 5,345 | ||||||||||||||||||||
Net interest margin
|
4.16 | % | 3.98 | % |
0 – 3 | 4 – 12 | 1 – 5 |
Over 5
|
Not
|
||||||||||||||||||||
Months
|
Months
|
Years
|
Years
|
Classified
|
Total
|
|||||||||||||||||||
Uses of funds
|
||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||
Commercial
|
$ | 35,362 | $ | 26,014 | $ | 101,002 | $ | 1,752 | $ | - | $ | 164,130 | ||||||||||||
Installment
|
3,783 | 987 | 22,166 | 7,164 | - | 34,100 | ||||||||||||||||||
Real estate loans for investments
|
103,538 | 43,890 | 130,813 | 7,450 | - | 285,691 | ||||||||||||||||||
Loans held for sale
|
5,578 | - | - | - | - | 5,578 | ||||||||||||||||||
Credit cards
|
2,406 | - | - | - | - | 2,406 | ||||||||||||||||||
Federal funds sold
|
27,988 | - | - | - | - | 27,988 | ||||||||||||||||||
Interest bearing bank deposits
|
842 | - | - | - | - | 842 | ||||||||||||||||||
Investment securities
|
1,999 | 106 | 4,090 | 5,152 | - | 11,347 | ||||||||||||||||||
Total
|
$ | 181,496 | $ | 70,997 | $ | 258,071 | $ | 21,518 | $ | - | $ | 532,082 | ||||||||||||
Sources of funds
|
||||||||||||||||||||||||
Interest bearing demand deposits
|
$ | - | $ | 31,604 | $ | 69,251 | $ | 18,823 | $ | - | $ | 119,678 | ||||||||||||
Savings deposits
|
- | 11,656 | 34,968 | 11,656 | - | 58,280 | ||||||||||||||||||
Certificates of deposit $100,000 and over
|
12,167 | 22,613 | 34,560 | - | - | 69,340 | ||||||||||||||||||
Other certificates of deposit
|
14,308 | 52,259 | 57,596 | - | - | 124,163 | ||||||||||||||||||
Short-term borrowings
|
3,697 | - | - | - | - | 3,697 | ||||||||||||||||||
Long-term borrowings
|
4,000 | 7,500 | 6,481 | 3,710 | - | 21,691 | ||||||||||||||||||
Total
|
$ | 34,172 | $ | 125,632 | $ | 202,856 | $ | 34,189 | $ | - | $ | 396,849 | ||||||||||||
Discrete Gap
|
$ | 147,324 | $ | (54,635 | ) | $ | 55,215 | $ | (12,671 | ) | $ | - | $ | 135,233 | ||||||||||
Cumulative Gap
|
$ | 147,324 | $ | 92,689 | $ | 147,904 | $ | 135,233 | $ | 135,233 | ||||||||||||||
Ratio of Cumulative Gap to Total Earning Assets
|
27.69 | % | 17.42 | % | 27.80 | % | 25.42 | % | 25.42 | % |
Exhibit No. | Description | |
10.1
|
Form of Securities Purchase Agreement, dated March 20, 2014, by and among F & M Bank Corp. and the purchases thereto, incorporated herein by reference from Exhibit 10.1 to F&M Bank Corp.’s current report on Form 8-K filed March 21, 2014.
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith).
|
||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith).
|
||
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sabanes-Oxley Act of 2002 (filed herewith).
|
||
101
|
The following materials from F&M Bank Corp.’s Quarterly Report on Form 1Q-K for the period ended March 31, 2014, formatted in Extensible Business Reporting Language (XBRL), include: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) related notes (filed herewith).
|
F & M BANK CORP.
|
|||
Date
|
By:
|
/s/ Dean W. Withers | |
Dean W. Withers
|
|||
President and Chief Executive Officer
|
|||
/s/ Carrie A. Comer
|
|||
Carrie A. Comer
|
|||
Senior Vice President and Chief Financial Officer
|
|||
Exhibit No. | Description | |
10.1
|
Form of Securities Purchase Agreement, dated March 20, 2014, by and among F & M Bank Corp. and the purchases thereto, incorporated herein by reference from Exhibit 10.1 to F&M Bank Corp.’s current report on Form 8-K filed March 21, 2014.
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith).
|
||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith).
|
||
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sabanes-Oxley Act of 2002 (filed herewith).
|
||
101
|
The following materials from F&M Bank Corp.’s Quarterly Report on Form 1Q-K for the period ended March 31, 2014, formatted in Extensible Business Reporting Language (XBRL), include: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) related notes (filed herewith).
|
1.
|
I have reviewed this quarterly report on Form 10-Q of F & M Bank Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of F & M Bank Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
7. Disclosures About Fair Value of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2014
|
Dec. 31, 2013
|
---|---|---|
Financial Assets | ||
Loans, Estimated Fair Value | $ 519,034 | $ 512,250 |
Loans, Carrying value | 487,327 | 478,453 |
Financial Liabilities | ||
Time deposits, Estimated Fair Value | 210,592 | 197,729 |
Time deposits, Carrying Value | 193,503 | 196,004 |
Long-term debt, Estimated Fair Value | 12,609 | 12,613 |
Long-term debt, Carrying Value | $ 11,500 | $ 11,500 |
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