10. Business Segments

9 Months Ended

Sep. 30, 2018

Business Segments

Business Segments

The Company utilizes its subsidiaries to provide multiple business segments including retail banking, mortgage banking, title insurance services, investment services and credit life and accident and health insurance products related to lending. Revenues from retail banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from title insurance services, investment services and insurance products consist of commissions on products provided.

The following tables represent revenues and expenses by segment for the three and nine months ended September 30, 2018 and September 30, 2017.

	Nine Months Ended September 30, 2018
	F&M Bank		F&M Mortgage			TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	26,915	$	101		$	109	$	-	$	-		$	(92	)	$	27,033
Service charges on deposits		1,102		-			-		-		-			-			1,102
Investment services and insurance income		-		-			673		-		-			(14	)		659
Mortgage banking income, net		-		1,664			-		-		-			-			1,664
Title insurance income		-		232			-		734		-			-			966
Other operating income		1,489		(1	)		-		-		-			-			1,488
Total income		29,506		1,996			782		734		-			(106	)		32,912
Expenses:
Interest Expense		3,403		87			-		-		-			(92	)		3,398
Provision for loan losses		2,480		-			-		-		-			-			2,480
Salary and benefit expense		9,877		1,404			437		517		-			-			12,235
Other operating expenses		7,111		538			45		128		36			(14	)		7,844
Total expense		22,871		2,029			482		645		36			(106	)		25,957
Net income (loss) before taxes		6,635		(33	)		300		89		(36	)		-			6,955
Income tax expense		597		-			52		-		141			-			790
Net income (loss)	$	6,038	$	(33	)	$	248	$	89	$	(177	)	$	-		$	6,165
Net income attributable to non-controlling interest		-		(10	)		-		-		-			-			(10	)
Net Income attributable to F & M Bank Corp.	$	6,038	$	(23	)	$	248	$	89	$	(177	)	$	-		$	6,175
Total Assets	$	777,401	$	7,103		$	6,954	$	720	$	92,372		$	(108,945	)	$	775,605
Goodwill	$	2,670	$	65		$	-	$	57	$	164		$	-		$	2,956

	Three months ended September 30, 2018
	F&M Bank		F&M Mortgage			TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	9,295	$	31		$	37	$	-	$	-		$	(35	)	$	9,328
Service charges on deposits		378		-			-		-		-			-			378
Investment services and insurance income		-		-			242		-		-			(3	)		239
Mortgage banking income, net		-		529			-		-		-			-			529
Title insurance income		-		123			-		281		-			-			404
Other operating income		646		(49	)		-		-		-			-			597
Total income		10,319		634			279		281		-			(38	)		11,475
Expenses:
Interest Expense		1,305		34			-		-		-			(35	)		1,304
Provision for loan losses		450		-			-		-		-			-			450
Salary and benefit expense		3,312		574			154		172		-			-			4,212
Other operating expenses		2,617		82			16		39		6			(3	)		2,757
Total expense		7,684		690			170		211		6			(38	)		8,723
Net income (loss) before taxes		2,635		(56	)		109		70		(6	)		-			2,752
Income tax expense		312		-			16		-		(76	)		-			252
Net income (loss)	$	2,323	$	(56	)	$	93	$	70	$	70		$	-		$	2,500
Net income attributable to non-controlling interest		-		(15	)		-		-		-			-			(15	)
Net Income attributable to F & M Bank Corp.	$	2,323	$	(41	)	$	93	$	70	$	70		$	-		$	2,515

	Nine Months Ended September 30, 2017
	F&M Bank		VBS Mortgage			TEB Life/FMFS			VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	24,815	$	97		$	112		$	-	$	-		$	(70	)	$	24,954
Service charges on deposits		1,010		-			-			-		-			-			1,010
Investment services and insurance income		1		-			529			-		-			-			530
Mortgage banking income, net		-		1,763			-			-		-			-			1,763
Title insurance income		-		211			-			668		-			-			879
Gain on prepayment of long-term debt		504		-			-			-		-			-			504
Loss on investments		-		(40	)		(2	)		-		-			-			(42	)
Other operating income		1,296		-			-			-		-			-			1,296
Total income		27,626		2,031			639			668		-			(70	)		30,894
Expenses:
Interest Expense		2,866		65			-			-		-			(70	)		2,861
Provision for loan losses		-		-			-			-		-			-			-
Salary expense		9,026		1,203			341			399		-			-			10,969
Other operating expenses		6,421		591			23			118		4			-			7,157
Total expense		18,313		1,859			364			517		4			(70	)		20,987
Net income (loss) before taxes		9,313		172			275			151		(4	)		-			9,907
Income tax expense		2,603		-			83			-		(53	)		-			2,633
Net income (loss)	$	6,710	$	172		$	192		$	151	$	49		$	-		$	7,274
Net income attributable to non-controlling interest		-		51			-			-		-			-			51
Net Income attributable to F & M Bank Corp.	$	6,710	$	121		$	192		$	151	$	49		$	-		$	7,223
Total Assets	$	750,048	$	6,309		$	6,644		$	443	$	91,362		$	(91,121	)	$	763,685
Goodwill	$	2,670	$	103		$	-		$	-	$	340		$	-		$	3,113

	Three Months Ended September 30, 2017
	F&M Bank		VBS Mortgage		TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	8,643	$	32	$	37	$	-	$	-		$	(24	)	$	8,688
Service charges on deposits		359		-		-		-		-			-			359
Investment services and insurance income		-		-		169		-		-			-			169
Mortgage banking income, net		-		783		-		-		-			-			783
Title insurance income		-		78		-		247		-			-			325
Other operating income		509		-		-		-		-			-			509
Total income		9,511		893		206		247		-			(24	)		10,833
Expenses:
Interest Expense		1,030		24		-		-		-			(24	)		1,030
Provision for loan losses		-		-		-		-		-			-			-
Salary and benefit expense		3,048		587		107		141		-			-			3,883
Other operating expenses		2,203		121		6		46		-			-			2,376
Total expense		6,281		732		113		187		-			(24	)		7,289
Net income (loss) before taxes		3,230		161		93		60		-			-			3,544
Income tax expense		933		-		30		-		(17	)		-			946
Net income (loss)	$	2,297	$	161	$	63	$	60	$	17		$	-		$	2,598
Net income attributable to non-controlling interest		-		48		-		-		-			-			48
Net Income attributable to F & M Bank Corp.	$	2,297	$	113	$	63	$	60	$	17		$	-		$	2,550