Virginia
|
|
54-1280811
|
(State or other
jurisdiction of
incorporation or organization) |
|
(I.R.S.
Employer
Identification No.) |
Timberville,
Virginia
|
|
22853 |
(Address of
Principal Executive Offices)
|
|
(Zip
Code)
|
Title
of each class
|
Trading
Symbol
|
Name of
each exchange on which registered
|
|
None
|
|
Class
|
|
Outstanding at May
8, 2019
|
Common
Stock, par value $5 -
|
|
3,192,816
shares
|
PART II OTHER
INFORMATION
|
|
|
|
|
|
50
|
||
|
|
|
50
|
||
|
|
|
50
|
||
|
|
|
50
|
||
|
|
|
50
|
||
|
|
|
50
|
||
|
|
|
50
|
||
|
|
|
|
|
|
|
|
|
Certifications
|
|
|
|
March
31,
|
December
31,
|
|
2020
|
2019*
|
|
(Unaudited)
|
|
Assets
|
|
|
Cash and due from
banks
|
$9,528
|
$8,119
|
Money market funds
and interest-bearing deposits in other banks
|
1,646
|
1,126
|
Federal funds
sold
|
78,944
|
66,559
|
Cash and cash
equivalents
|
90,118
|
75,804
|
Securities:
|
|
|
Held to maturity,
at amortized cost – fair value of $125 and $124 in 2020 and
2019, respectively
|
125
|
124
|
Available for sale,
at fair value
|
7,278
|
4,366
|
Other
investments
|
12,436
|
13,525
|
Loans held for
sale
|
60,765
|
66,798
|
Loans held for
investment
|
609,585
|
603,425
|
Less: allowance for
loan losses
|
(9,437)
|
(8,390)
|
Net loans held for
investment
|
600,148
|
595,035
|
|
|
|
Other real estate
owned, net
|
1,336
|
1,489
|
Bank premises and
equipment, net
|
18,953
|
18,931
|
Interest
receivable
|
2,006
|
2,044
|
Goodwill
|
2,884
|
2,884
|
Bank owned life
insurance
|
20,197
|
20,050
|
Other
assets
|
12,221
|
12,949
|
Total
assets
|
$828,467
|
$813,999
|
|
|
|
Liabilities
|
|
|
Deposits:
|
|
|
Noninterest
bearing
|
$180,118
|
$168,715
|
Interest
bearing
|
499,192
|
472,994
|
Total
deposits
|
679,310
|
641,709
|
|
|
|
Short-term
debt
|
-
|
10,000
|
Accrued
liabilities
|
15,634
|
17,514
|
Long-term
debt
|
42,089
|
53,201
|
Total
liabilities
|
737,033
|
722,424
|
|
|
|
Commitments
and contingencies
|
|
-
|
|
|
|
Stockholders’
Equity
|
|
|
Preferred Stock $25
par value, 400,000 shares authorized, 206,660 and
206,660
|
|
|
issued
and outstanding at March 31, 2020 and December 31, 2019,
respectively
|
4,592
|
4,592
|
Common stock, $5
par value, 6,000,000 shares authorized, 3,192,464 and
3,208,498
|
|
|
shares
issued and outstanding for March 31, 2020 and December 31, 2019,
respectively
|
15,962
|
16,042
|
Additional paid in
capital – common stock
|
7,184
|
7,510
|
Retained
earnings
|
66,297
|
66,008
|
Noncontrolling
interest in consolidated subsidiaries
|
649
|
634
|
Accumulated other
comprehensive loss
|
(3,250)
|
(3,211)
|
Total
stockholders’ equity
|
91,434
|
91,575
|
Total liabilities
and stockholders’ equity
|
$828,467
|
$813,999
|
|
Three Months
Ended
|
|
|
March
31,
|
|
Interest and Dividend income
|
2020
|
2019
|
Interest and fees
on loans held for investment
|
8,452
|
$9,087
|
Interest and fees
on loans held for sale
|
270
|
326
|
Interest from money
market funds, federal funds sold, and deposits in other
banks
|
297
|
14
|
Interest on debt
securities – taxable
|
91
|
105
|
Total interest and
dividend income
|
9,110
|
9,532
|
|
|
|
Interest expense
|
|
|
Total
interest on deposits
|
1,452
|
1,101
|
Interest
from short-term debt
|
41
|
203
|
Interest
from long-term debt
|
213
|
194
|
Total interest
expense
|
1,706
|
1,498
|
|
|
|
Net interest income
|
7,404
|
8,034
|
|
|
|
Provision for Loan Losses
|
1,500
|
1,450
|
Net Interest Income After Provision for Loan Losses
|
5,904
|
6,584
|
|
|
|
Noninterest income
|
|
|
Service charges on
deposit accounts
|
361
|
386
|
Insurance, other
commissions and mortgage banking, net
|
1,485
|
957
|
Other
operating income
|
655
|
513
|
Income from bank
owned life insurance
|
151
|
147
|
Low
income housing partnership losses
|
(223)
|
(214)
|
Total noninterest
income
|
2,429
|
1,789
|
|
|
|
Noninterest expense
|
|
|
Salaries
|
3,012
|
2,833
|
Employee
benefits
|
1,022
|
1,190
|
Occupancy
expense
|
267
|
279
|
Equipment
expense
|
306
|
269
|
FDIC insurance
assessment
|
95
|
82
|
Other
real estate owned, net
|
19
|
274
|
Advertising
expense
|
130
|
148
|
Legal
and professional fees
|
149
|
155
|
Data
processing expense
|
749
|
555
|
Directors
fees
|
116
|
102
|
Bank
franchise tax
|
195
|
131
|
Other
operating expenses
|
1,060
|
1,012
|
Total noninterest
expense
|
7.120
|
7,030
|
|
|
|
Income before income taxes
|
1,213
|
1,343
|
Income tax expense
(benefit)
|
(38)
|
79
|
Net Income
|
1,251
|
1,264
|
Net
(income) loss attributable to noncontrolling interest
|
(62)
|
22
|
Net Income attributable to F & M Bank Corp.
|
1,189
|
$1,286
|
Dividends
paid/accumulated on preferred stock
|
66
|
79
|
Net income available to common stockholders
|
$1,123
|
$1,207
|
|
|
|
Per Common Share Data
|
|
|
Net income –
basic
|
$.35
|
$.38
|
Net income –
diluted
|
$.35
|
$.37
|
Cash dividends on
common stock
|
$.26
|
$.25
|
Weighted average
common shares outstanding – basic
|
3,204,084
|
3,210,042
|
Weighted average
common shares outstanding – diluted
|
3,433,683
|
3,484,906
|
|
Three Months
Ended March 31,
|
|
|
2020
|
2019
|
|
|
|
Net
Income
|
$1,189
|
$1,286
|
|
|
|
Other comprehensive
income (loss):
|
|
|
Unrealized
holding gains (losses) on available-for-sale
securities
|
(49)
|
33
|
Tax
effect
|
10
|
(7)
|
Unrealized
holding gains (losses), net of tax
|
(39)
|
26
|
|
|
|
Total other
comprehensive income
|
$(39)
|
$26
|
|
|
|
Comprehensive
income attributable to F&M Bank Corp.
|
$1,150
|
$1,312
|
|
|
|
Comprehensive
income (loss) attributable to noncontrolling interests
|
$62
|
$(22)
|
|
|
|
Total comprehensive
income
|
$1,212
|
$1,290
|
|
|
|
Additional
|
|
|
Accumulated
|
|
|
|
|
Paid
|
|
|
Other
|
|
|
Preferred
|
Common
|
in
|
Retained
|
Noncontrolling
|
Comprehensive
|
|
|
Stock
|
Stock
|
Capital
|
Earnings
|
Interest
|
Loss
|
Total
|
|
|
|
|
|
|
|
|
Balance December 31, 2018
|
$5,672
|
$16,066
|
$7,987
|
$65,596
|
$559
|
$(3,969)
|
$91,911
|
Net
income (loss)
|
-
|
-
|
-
|
1,286
|
(22)
|
-
|
1,264
|
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
26
|
26
|
Dividends
on common stock ($.25 per share)
|
-
|
-
|
-
|
(819)
|
-
|
-
|
(819)
|
Preferred
stock repurchased (1,200 shares)
|
(30)
|
|
(11)
|
|
|
|
(41)
|
Preferred
stock converted to Common (2,000 shares)
|
(50)
|
11
|
39
|
|
|
|
-
|
Common
stock repurchased (13,327 shares)
|
-
|
(66)
|
(356)
|
-
|
-
|
-
|
(422)
|
Common
stock issued (3,900 shares)
|
-
|
8
|
48
|
-
|
-
|
-
|
56
|
|
|
|
|
|
|
|
|
Balance, March 31, 2019
|
$5,592
|
$16,019
|
$7,707
|
$66,063
|
$537
|
$(3,943)
|
$91,975
|
|
|
|
|
|
|
|
|
Balance December 31, 2019
|
$4,592
|
$16,042
|
$7,510
|
$66,008
|
$634
|
$(3,211)
|
$91,575
|
Net
income (loss)
|
-
|
-
|
-
|
1,189
|
62
|
-
|
1,251
|
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
(39)
|
(39)
|
Distributions
to noncontrolling interest
|
|
|
|
|
(47)
|
|
(47)
|
Dividends
on preferred stock ($1.28per share)
|
-
|
-
|
-
|
(66)
|
-
|
-
|
(66)
|
Dividends
on common stock ($.26 per share)
|
-
|
-
|
-
|
(834)
|
-
|
-
|
(834)
|
Common
stock repurchased (18,472 shares)
|
-
|
(92)
|
(381)
|
-
|
-
|
-
|
(473)
|
Common
stock issued (2,438 shares)
|
-
|
12
|
55
|
-
|
-
|
-
|
67
|
|
|
|
|
|
|
|
|
Balance, March 31, 2020
|
$4,592
|
$15,962
|
$7,184
|
$66,297
|
$649
|
$(3,250)
|
$91,434
|
|
Three Months
Ended March 31,
|
|
|
2020
|
2019
|
Cash flows from operating activities
|
|
|
Net
income
|
$1,189
|
$1,286
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
Depreciation and
amortization
|
320
|
300
|
Amortization of
intangibles
|
17
|
10
|
Amortization of
securities
|
(4)
|
1
|
Proceeds from loans
held for sale originated
|
31,210
|
22,356
|
Gain on sale of
loans held for sale originated
|
(917)
|
(753)
|
Loans held for sale
originated
|
(38,694)
|
(21,602)
|
Provision for loan
losses
|
1,500
|
1,450
|
Deferred
taxes
|
(331)
|
55
|
Decrease (increase)
in interest receivable
|
38
|
(125)
|
Decrease (increase)
in other assets
|
1,061
|
(18)
|
(Decrease) increase
in accrued liabilities
|
(1,872)
|
584
|
Amortization of
limited partnership investments
|
223
|
214
|
Income from life
insurance investment
|
(151)
|
(147)
|
Loss on sale of
fixed assets
|
1
|
10
|
Loss on sale and
valuation adjustments for other real estate owned
|
19
|
269
|
Net cash (used in)
provided by operating activities
|
(6,391)
|
3,890
|
|
|
|
Cash flows from investing activities
|
|
|
Proceeds from
maturity of investments available for sale
|
21
|
16
|
Proceeds
from the sale of other real estate owned
|
134
|
-
|
Purchases
of investments available for sale and other
investments
|
(2,978)
|
-
|
Proceeds
from the redemption of restricted stock, net
|
866
|
12
|
Net increase in
loans held for investment
|
(6,613)
|
(7,172)
|
Net decrease in
loans held for sale participations
|
14,434
|
11,381
|
Net purchase of
property and equipment
|
(343)
|
(655)
|
Net cash provided
by investing activities
|
5,521
|
3,582
|
|
|
|
Cash flows from financing activities
|
|
|
Net change in
deposits
|
37,601
|
9,511
|
Net change in
short-term debt
|
(10,000)
|
(10,116)
|
Dividends paid in
cash
|
(900)
|
(819)
|
Proceeds from
issuance of common stock
|
67
|
56
|
Repurchase of
common stock
|
(473)
|
(422)
|
Repurchase
of preferred stock
|
-
|
(41)
|
Repayments of
long-term debt
|
(11,112)
|
(1,193)
|
Net cash provided
by (used in) financing activities
|
15,183
|
(3,024)
|
|
|
|
Net increase in Cash and Cash Equivalents
|
14,314
|
4,448
|
Cash and cash equivalents, beginning of period
|
75,804
|
10,912
|
Cash and cash equivalents, end of period
|
$90,118
|
$15,360
|
Supplemental Cash Flow information:
|
|
|
Cash paid
for:
|
|
|
Interest
|
$1,694
|
$1,498
|
|
|
|
Supplemental non-cash disclosures:
|
|
|
Right of Use Asset
and lease liability, upon adoption
|
-
|
1,034
|
Change in
unrealized (loss) gain on securities available for
sale
|
(49)
|
33
|
|
For the Three
months ended
|
|
|
March 31,
2020
|
March 31,
2019
|
Earnings available
to common stockholders:
|
|
|
Net
income
|
$1,251
|
$1,264
|
Noncontrolling
interest income (loss)
|
62
|
(22)
|
Preferred stock
dividends
|
66
|
79
|
Net income
available to common stockholders
|
$1,123
|
$1,207
|
|
Three months
ended
|
|||||
|
March 31,
2020
|
March 31,
2019
|
||||
Income
|
Shares
|
Per Share
Amounts
|
Income
|
Shares
|
Per Share
Amounts
|
|
Basic
EPS
|
$1,123
|
3,204,084
|
$.35
|
$1,207
|
3,210,042
|
$0.38
|
Effect of Dilutive
Securities:
|
|
|
|
|
|
|
Convertible
Preferred Stock
|
66
|
229,599
|
-
|
79
|
274,864
|
(0.01)
|
Diluted
EPS
|
$1,189
|
3,433,683
|
$.35
|
$1,286
|
3,484,906
|
$0.37
|
|
|
Gross
|
Gross
|
|
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|
Cost
|
Gains
|
Losses
|
Value
|
March
31, 2020
|
|
|
|
|
U. S.
Treasuries
|
$125
|
$-
|
$-
|
$125
|
December
31, 2019
|
|
|
|
|
U. S.
Treasuries
|
$124
|
$-
|
$-
|
$124
|
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
March 31, 2020
|
|
|
|
|
U.
S. Treasuries
|
$2,988
|
$10
|
$-
|
$2,988
|
U.
S. Government sponsored enterprises
|
2,000
|
1
|
-
|
2,001
|
Mortgage-backed
obligations of federal agencies
|
296
|
11
|
-
|
307
|
Corporate
debt security
|
2,052
|
-
|
80
|
1,972
|
Total
Securities Available for Sale
|
$7,336
|
$2
|
$80
|
$7,278
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
U.
S. Government sponsored enterprises
|
$2,000
|
$-
|
$11
|
$1,989
|
Mortgage-backed
obligations of federal agencies
|
317
|
2
|
-
|
319
|
Corporate
debt security
|
2,059
|
-
|
1
|
2,058
|
Total
Securities Available for Sale
|
$4,376
|
$2
|
$12
|
$4,366
|
|
Securities Held
to Maturity
|
Securities
Available for Sale
|
||
|
Amortized
|
Fair
|
Amortized
|
Fair
|
(dollars
in thousands)
|
Cost
|
Value
|
Cost
|
Value
|
Due in one year or
less
|
$125
|
$125
|
$2,988
|
$2,998
|
Due after one year
through five years
|
-
|
-
|
4,052
|
3,973
|
Due after five
years
|
-
|
-
|
-
|
-
|
Due after ten
years
|
-
|
-
|
296
|
307
|
Total
|
$125
|
$125
|
$7,336
|
$7,278
|
|
Less than 12 Months
|
More than 12 Months
|
Total
|
|||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
March 31, 2020
|
|
|
|
|
|
|
Corporate
debt security
|
$1,972
|
$80
|
$ -
|
$ -
|
$1,972
|
$80
|
Total
|
$1,972
|
$80
|
$ -
|
$ -
|
$1 972
|
$80
|
|
Less than 12 Months
|
More than 12 Months
|
Total
|
|||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
December 31, 2019
|
|
|
|
|
|
|
U.
S. Government sponsored enterprises
|
$1,989
|
$11
|
$-
|
$-
|
$1,989
|
$11
|
Corporate
debt security
|
2,058
|
1
|
-
|
-
|
2,058
|
1
|
Total
|
$4,047
|
$12
|
$-
|
$-
|
$4,047
|
$12
|
(dollars in
thousands)
|
2020
|
2019
|
Construction/Land
Development
|
$75,221
|
$77,131
|
Farmland
|
32,130
|
29,718
|
Real
Estate
|
176,068
|
178,267
|
Multi-Family
|
6,335
|
5,364
|
Commercial Real
Estate
|
135,364
|
129,850
|
Home Equity –
closed end
|
9,232
|
9,523
|
Home Equity –
open end
|
47,663
|
47,774
|
Commercial &
Industrial – Non-Real Estate
|
32,699
|
33,535
|
Consumer
|
10,731
|
10,165
|
Dealer
Finance
|
81,225
|
78,976
|
Credit
Cards
|
2,917
|
3,122
|
Total
|
$609,585
|
$603,425
|
|
March 31, 2020
|
December 31, 2019
|
||||
|
|
Unpaid
|
|
|
Unpaid
|
|
|
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
|
Investment1
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
Impaired
loans without a valuation allowance:
|
|
|
|
|
|
|
Construction/Land
Development
|
$1,606
|
$1,606
|
$-
|
$2,042
|
$2,042
|
$-
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
-
|
Real
Estate
|
5,617
|
5,617
|
-
|
5,131
|
5,131
|
-
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,468
|
1,468
|
-
|
1,302
|
1,302
|
-
|
Home
Equity – closed end
|
-
|
-
|
-
|
716
|
716
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
& Industrial – Non-Real Estate
|
188
|
188
|
-
|
17
|
17
|
-
|
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
Credit
cards
|
-
|
-
|
|
-
|
-
|
-
|
Dealer
Finance
|
29
|
29
|
-
|
79
|
79
|
-
|
|
8,908
|
8,908
|
-
|
9,287
|
9,287
|
-
|
Impaired
loans with a valuation allowance
|
|
|
|
|
|
|
Construction/Land
Development
|
356
|
356
|
3
|
1,036
|
2,061
|
85
|
Farmland
|
1,927
|
1,927
|
527
|
1,933
|
1,933
|
537
|
Real
Estate
|
9,770
|
9,770
|
672
|
10,404
|
10,404
|
569
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,835
|
1,835
|
302
|
638
|
638
|
213
|
Home
Equity – closed end
|
707
|
707
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
152
|
152
|
15
|
151
|
151
|
151
|
Commercial
& Industrial – Non-Real Estate
|
70
|
70
|
70
|
192
|
192
|
192
|
Consumer
|
3
|
3
|
1
|
4
|
4
|
1
|
Credit
cards
|
-
|
-
|
|
-
|
-
|
-
|
Dealer
Finance
|
154
|
154
|
12
|
136
|
136
|
7
|
|
14,974
|
14,974
|
1,602
|
14,494
|
15,519
|
1,755
|
Total
impaired loans
|
$23,882
|
$23,882
|
$1,602
|
$23,781
|
$24,806
|
$1,755
|
|
March 31, 2020
|
December 31, 2019
|
||
|
Average
|
Interest
|
Average
|
Interest
|
|
Recorded
|
Income
|
Recorded
|
Income
|
|
Investment
|
Recognized
|
Investment
|
Recognized
|
Impaired
loans without a valuation allowance:
|
|
|
|
|
Construction/Land
Development
|
$1,824
|
$25
|
$1,957
|
$130
|
Farmland
|
-
|
-
|
971
|
-
|
Real
Estate
|
5,374
|
76
|
5,965
|
312
|
Multi-Family
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,385
|
20
|
1,605
|
72
|
Home
Equity – closed end
|
358
|
-
|
539
|
57
|
Home
Equity – open end
|
-
|
-
|
40
|
-
|
Commercial
& Industrial – Non-Real Estate
|
102
|
-
|
15
|
2
|
Consumer
|
-
|
-
|
-
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
54
|
-
|
55
|
5
|
|
9,097
|
121
|
11,147
|
578
|
Impaired
loans with a valuation allowance
|
|
|
|
|
Construction/Land
Development
|
696
|
-
|
2,248
|
68
|
Farmland
|
1,930
|
6
|
967
|
16
|
Real
Estate
|
10,087
|
140
|
3,121
|
589
|
Multi-Family
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,237
|
28
|
2,542
|
36
|
Home
Equity – closed end
|
353
|
10
|
-
|
-
|
Home
Equity – open end
|
151
|
2
|
38
|
10
|
Commercial
& Industrial – Non-Real Estate
|
131
|
1
|
97
|
13
|
Consumer
|
4
|
-
|
4
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
145
|
4
|
166
|
11
|
|
14,734
|
191
|
9,183
|
743
|
Total
impaired loans
|
$23,831
|
$312
|
$20,330
|
$1,321
|
|
30-59 Days Past
due
|
60-89 Days Past
Due
|
Greater than 90
Days
|
Total Past
Due
|
Current
|
Total Loan
Receivable
|
Non-Accrual
Loans
|
Recorded
Investment >90 days & accruing
|
March 31,
2020
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$189
|
$-
|
$400
|
$589
|
$74,632
|
$75,221
|
$400
|
$-
|
Farmland
|
-
|
-
|
1,927
|
1,927
|
30,203
|
32,130
|
1,927
|
-
|
Real Estate
|
1,378
|
225
|
667
|
2,270
|
173,798
|
176,068
|
855
|
34
|
Multi-Family
|
-
|
-
|
-
|
-
|
6,335
|
6,335
|
-
|
-
|
Commercial Real
Estate
|
305
|
-
|
-
|
305
|
135,059
|
135,364
|
120
|
-
|
Home Equity – closed
end
|
-
|
-
|
-
|
-
|
9,232
|
9,232
|
-
|
-
|
Home Equity – open
end
|
562
|
51
|
383
|
996
|
46,667
|
47,663
|
215
|
169
|
Commercial & Industrial –
Non- Real Estate
|
99
|
197
|
243
|
539
|
32,160
|
32,699
|
252
|
-
|
Consumer
|
125
|
56
|
-
|
181
|
10,550
|
10,731
|
-
|
-
|
Dealer Finance
|
1,202
|
214
|
64
|
1,480
|
79,745
|
81,225
|
191
|
|
Credit Cards
|
21
|
31
|
5
|
57
|
2,860
|
2,917
|
-
|
5
|
Total
|
$3,881
|
$774
|
$3,689
|
$8,344
|
$601,241
|
$609,585
|
$3,960
|
$208
|
|
30-59 Days Past
due
|
60-89 Days Past
Due
|
Greater than 90
Days
|
Total Past
Due
|
Current
|
Total Loan
Receivable
|
Non-Accrual
Loans
|
Recorded
Investment >90 days & accruing
|
December 31,
2019
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$117
|
$45
|
$1,255
|
$1,417
|
$75,714
|
$77,131
|
$1,301
|
$-
|
Farmland
|
27
|
-
|
1,933
|
1,960
|
27,758
|
29,718
|
1,933
|
-
|
Real Estate
|
2,440
|
1,035
|
837
|
4,312
|
173,955
|
178,267
|
420
|
619
|
Multi-Family
|
-
|
-
|
-
|
-
|
5,364
|
5,364
|
-
|
-
|
Commercial Real
Estate
|
563
|
-
|
137
|
700
|
129,150
|
129,850
|
900
|
-
|
Home Equity – closed
end
|
-
|
-
|
-
|
-
|
9,523
|
9,523
|
-
|
-
|
Home Equity – open
end
|
429
|
296
|
15
|
740
|
47,034
|
47,774
|
-
|
15
|
Commercial & Industrial –
Non- Real Estate
|
726
|
4
|
-
|
730
|
32,805
|
33,535
|
203
|
-
|
Consumer
|
89
|
14
|
-
|
103
|
10,062
|
10,165
|
1
|
-
|
Dealer Finance
|
1,943
|
400
|
198
|
2,541
|
76,435
|
78,976
|
249
|
84
|
Credit Cards
|
31
|
-
|
4
|
35
|
3,087
|
3,122
|
-
|
4
|
Total
|
$6,365
|
$1,794
|
$4,379
|
$12,538
|
$590,887
|
$603,425
|
$5,007
|
$722
|
March 31,
2020
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Allowance
for loan losses:
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$1,190
|
$7
|
$-
|
$114
|
$1,297
|
$3
|
$1,294
|
Farmland
|
668
|
-
|
-
|
40
|
708
|
527
|
181
|
Real
Estate
|
1,573
|
36
|
2
|
290
|
1,829
|
672
|
1,157
|
Multi-Family
|
20
|
-
|
-
|
22
|
42
|
-
|
42
|
Commercial Real
Estate
|
1,815
|
-
|
-
|
698
|
2,513
|
302
|
2,211
|
Home Equity –
closed end
|
42
|
-
|
-
|
9
|
51
|
-
|
51
|
Home Equity –
open end
|
457
|
-
|
1
|
(81)
|
377
|
15
|
362
|
Commercial
& Industrial – Non-Real Estate
|
585
|
35
|
2
|
65
|
617
|
70
|
547
|
Consumer
|
186
|
18
|
16
|
28
|
212
|
1
|
211
|
Dealer
Finance
|
1,786
|
580
|
212
|
304
|
1,722
|
12
|
1,710
|
Credit
Cards
|
68
|
17
|
7
|
11
|
69
|
-
|
69
|
Total
|
$8,390
|
$693
|
$240
|
$1,500
|
$9,437
|
$1,602
|
$7,835
|
December 31,
2019
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Allowance
for loan losses:
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$2,094
|
$2,319
|
$50
|
$1,365
|
$1,190
|
$85
|
$1,105
|
Farmland
|
15
|
-
|
-
|
653
|
668
|
537
|
131
|
Real
Estate
|
292
|
32
|
4
|
1,309
|
1,573
|
569
|
1,004
|
Multi-Family
|
10
|
-
|
-
|
10
|
20
|
-
|
20
|
Commercial Real
Estate
|
416
|
677
|
16
|
2,060
|
1,815
|
213
|
1,602
|
Home Equity –
closed end
|
13
|
1
|
2
|
28
|
42
|
-
|
42
|
Home Equity –
open end
|
126
|
126
|
1
|
456
|
457
|
151
|
306
|
Commercial
& Industrial – Non-Real Estate
|
192
|
127
|
81
|
439
|
585
|
192
|
393
|
Consumer
|
70
|
116
|
44
|
188
|
186
|
1
|
185
|
Dealer
Finance
|
1,974
|
2,118
|
1,144
|
786
|
1,786
|
7
|
1,779
|
Credit
Cards
|
38
|
110
|
29
|
111
|
68
|
-
|
68
|
Total
|
$5,240
|
$5,626
|
$1,371
|
$7,405
|
$8,390
|
$1,755
|
$6,635
|
March 31,
2020
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$75,221
|
$1,962
|
$73,259
|
Farmland
|
32,130
|
1,927
|
30,203
|
Real
Estate
|
176,068
|
15,387
|
160,681
|
Multi-Family
|
6,335
|
-
|
6,335
|
Commercial Real
Estate
|
135,364
|
3,303
|
132,061
|
Home Equity –
closed end
|
9,232
|
707
|
8,525
|
Home Equity
–open end
|
47,663
|
152
|
47,511
|
Commercial &
Industrial – Non-Real Estate
|
32,699
|
258
|
32,441
|
Consumer
|
10,731
|
3
|
10,728
|
Dealer
Finance
|
81,225
|
183
|
81,042
|
Credit
Cards
|
2,917
|
-
|
2,917
|
|
|
|
|
Total
|
$609,585
|
$23,882
|
$585,703
|
December 31,
2019
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$77,131
|
$3,078
|
$74,053
|
Farmland
|
29,718
|
1,933
|
27,785
|
Real
Estate
|
178,267
|
15,535
|
162,732
|
Multi-Family
|
5,364
|
-
|
5,364
|
Commercial Real
Estate
|
129,850
|
1,940
|
127,910
|
Home Equity –
closed end
|
9,523
|
716
|
8,807
|
Home Equity
–open end
|
47,774
|
151
|
47,623
|
Commercial &
Industrial – Non-Real Estate
|
33,535
|
209
|
33,326
|
Consumer
|
10,165
|
4
|
10,161
|
Dealer
Finance
|
78,976
|
215
|
78,761
|
Credit
Cards
|
3,122
|
-
|
3,122
|
|
$603,425
|
$23,781
|
$579,644
|
Total
|
|
|
|
March
31, 2020
|
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
|
$-
|
$179
|
$12,899
|
$49,365
|
$8,895
|
$2,729
|
$1,154
|
$-
|
$75,221
|
Farmland
|
59
|
344
|
8,586
|
14,979
|
5,058
|
1,177
|
1,927
|
-
|
32,130
|
Real
Estate
|
-
|
1,944
|
46,852
|
81,815
|
23,346
|
5,078
|
17,033
|
-
|
176,068
|
Multi-Family
|
-
|
-
|
2,353
|
3,659
|
149
|
174
|
-
|
-
|
6,335
|
Commercial Real
Estate
|
-
|
1,929
|
40,259
|
70,768
|
15,488
|
4,550
|
2,370
|
-
|
135,364
|
Home Equity –
closed end
|
-
|
183
|
2,781
|
3,728
|
1,284
|
1,256
|
-
|
-
|
9,232
|
Home Equity –
open end
|
34
|
1,708
|
18,272
|
22,388
|
3,735
|
812
|
714
|
-
|
47,663
|
Commercial &
Industrial (Non-Real Estate)
|
123
|
2,146
|
11,073
|
15,004
|
3,033
|
1,022
|
298
|
-
|
32,699
|
Consumer (excluding
dealer)
|
5
|
166
|
4,128
|
4,661
|
1,709
|
61
|
1
|
-
|
10,731
|
Total
|
$221
|
$8,599
|
$147,203
|
$266,367
|
$62,697
|
$16,859
|
23,497
|
$-
|
$525,443
|
|
|
|
|
|
|
|
Credit Cards
|
Dealer Finance
|
|
Performing
|
|
|
|
|
|
|
$2,912
|
$81,033
|
|
Non-performing
|
|
|
|
|
|
|
5
|
192
|
|
Total
|
|
|
|
|
|
|
$2,917
|
$81,225
|
|
December 31,
2019
|
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
|
$-
|
$615
|
$21,904
|
$41,693
|
$8,218
|
$2,434
|
$2,267
|
$-
|
$77,131
|
Farmland
|
60
|
363
|
9,479
|
13,754
|
2,942
|
1,188
|
1,932
|
-
|
29,718
|
Real
Estate
|
-
|
1,900
|
48,308
|
81,371
|
23,876
|
5,635
|
17,177
|
-
|
178,267
|
Multi-Family
|
-
|
-
|
1,327
|
3,711
|
153
|
173
|
-
|
-
|
5,364
|
Commercial
Real Estate
|
-
|
2,465
|
40,227
|
67,626
|
14,139
|
4,397
|
996
|
-
|
129,850
|
Home
Equity – closed end
|
-
|
189
|
2,999
|
3,816
|
1,154
|
1,365
|
-
|
-
|
9,523
|
Home
Equity – open end
|
17
|
1,965
|
17,789
|
22,705
|
3,769
|
1,198
|
331
|
-
|
47,774
|
Commercial
& Industrial (Non-Real Estate)
|
142
|
2,042
|
12,818
|
15,035
|
2,877
|
373
|
248
|
-
|
33,535
|
Consumer
(excluding dealer)
|
6
|
170
|
3,476
|
4,726
|
1,729
|
56
|
2
|
-
|
10,165
|
Total
|
$225
|
$9,709
|
$158,327
|
$254,437
|
$58,857
|
$16,819
|
$22,953
|
$-
|
$521,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Cards
|
Dealer Finance
|
|
Performing
|
|
|
|
|
|
|
$3,118
|
$78,529
|
|
Non-performing
|
|
|
|
|
|
|
4
|
447
|
|
Total
|
|
|
|
|
|
|
$3,122
|
$78,976
|
|
|
Three Months
Ended
|
|
|
March 31,
2020
|
March 31,
2019
|
|
|
|
Service
cost
|
$202
|
$185
|
Interest
cost
|
105
|
137
|
Expected return on
plan assets
|
(183)
|
(202)
|
Amortization of
prior service cost
|
(3)
|
(4)
|
Amortization of net
loss
|
55
|
70
|
Net periodic
pension cost
|
$176
|
$186
|
|
Level
1 –
|
|
Valuation
is based on quoted prices in active markets for identical assets
and liabilities.
|
|
Level
2 –
|
|
Valuation
is based on observable inputs including quoted prices in active
markets for similar assets and liabilities, quoted prices for
identical or similar assets and liabilities in less active markets,
and model-based valuation techniques for which significant
assumptions can be derived primarily from or corroborated by
observable data in the market.
|
|
Level
3 –
|
|
Valuation
is based on model-based techniques that use one or more significant
inputs or assumptions that are unobservable in the
market.
|
|
|
|
|
March 31,
2020
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U. S. Treasury
securities
|
$2,998
|
$-
|
$2,998
|
$-
|
U. S. Government
sponsored enterprises
|
2,001
|
-
|
2,001
|
-
|
Mortgage-backed
obligations of federal agencies
|
307
|
-
|
307
|
-
|
Corporate debt
securities
|
1,972
|
-
|
1,972
|
-
|
Total securities
available for sale
|
$7,278
|
$-
|
$7,278
|
-
|
Derivatives –
ICD
|
$55
|
$-
|
$55
|
$-
|
December 31,
2019
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U. S. Government
sponsored enterprises
|
$1,989
|
-
|
$1,989
|
-
|
Mortgage-backed
obligations of federal agencies
|
319
|
-
|
319
|
-
|
Other debt
securities
|
2,058
|
-
|
2,058
|
-
|
Total securities
available for sale
|
$4,366
|
$-
|
$4,366
|
$-
|
Derivatives -
ICD
|
$72
|
$-
|
$72
|
-
|
March 31,
2020
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$353
|
$-
|
$-
|
$353
|
Farmland
|
1,400
|
-
|
-
|
1,400
|
Real
Estate
|
9,098
|
-
|
-
|
9,098
|
Commercial
Real Estate
|
1,533
|
-
|
-
|
1,533
|
Consumer
|
2
|
-
|
-
|
2
|
Home
Equity
|
844
|
-
|
-
|
844
|
Dealer
Finance
|
142
|
-
|
-
|
142
|
Impaired
loans
|
$13,372
|
$-
|
$-
|
$13,372
|
December 31,
2019
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$951
|
-
|
-
|
$951
|
Farmland
|
1,396
|
-
|
-
|
1,396
|
Real
Estate
|
9,835
|
-
|
-
|
9,835
|
Commercial Real
Estate
|
425
|
-
|
-
|
425
|
Consumer
|
3
|
-
|
-
|
3
|
Dealer
Finance
|
129
|
-
|
-
|
129
|
Impaired
loans
|
$12,739
|
$-
|
$-
|
$12,739
|
(dollars in
thousands)
|
Fair Value at
March 31, 2020
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
|
|
|
|
|
Impaired
Loans
|
$13,372
|
Discounted
appraised value
|
Discount for
selling costs and marketability
|
0%-58.98% (Average
24.58%)
|
|
Fair Value at
December 31, 2019
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
|
|
|
|
|
Impaired
Loans
|
$12,739
|
Discounted
appraised value
|
Discount for
selling costs and marketability
|
0%-58.98% (Average
24.04%)
|
March 31,
2020
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$1,336
|
-
|
-
|
$1,336
|
December 31,
2019
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$1,489
|
-
|
-
|
$1,489
|
(dollars in
thousands)
|
Fair
Value at March 31, 2020
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
|
|
|
|
|
Other real estate
owned
|
$1,336
|
Discounted
appraised value
|
Discount for
selling costs
|
0.5%-7%
(Average 4%)
|
(dollars in
thousands)
|
Fair Value at
December 31, 2019
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
|
|
|
|
|
Other real estate
owned
|
$1,489
|
Discounted
appraised value
|
Discount for
selling costs
|
5%-10% (Average
8%)
|
|
|
Fair Value
Measurements at March 31, 2020 Using
|
|||
(dollars in
thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Fair Value at
March 31, 2020
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$90,118
|
$90,118
|
$-
|
$-
|
$90,118
|
Securities
|
7,403
|
-
|
7,403
|
-
|
7,403
|
Loans held for
sale
|
60,765
|
-
|
60,765
|
-
|
60,765
|
Loans held for
investment, net
|
600,148
|
-
|
-
|
599,767
|
599,767
|
Interest
receivable
|
2,006
|
-
|
2,006
|
-
|
2,006
|
Bank owned life
insurance
|
20,197
|
-
|
20,197
|
-
|
20,197
|
Total
|
$780,637
|
$90,118
|
$90,371
|
$599,767
|
$780,256
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$679,310
|
$-
|
$548,263
|
$136,477
|
$684,740
|
Short-term
debt
|
-
|
-
|
-
|
-
|
-
|
Long-term
debt
|
42,089
|
-
|
-
|
43,162
|
43,162
|
Interest
payable
|
366
|
-
|
366
|
-
|
366
|
Total
|
$721,765
|
$-
|
$548,629
|
$179,639
|
$728,268
|
|
|
Fair Value
Measurements at December 31, 2019 Using
|
|||
(dollars in
thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Fair Value at
December 31, 2019
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$75,804
|
$75,804
|
$-
|
$-
|
$75,804
|
Securities
|
4,490
|
-
|
4,490
|
-
|
4,490
|
Loans held for
sale
|
66,798
|
-
|
66,798
|
-
|
66,798
|
Loans held for
investment, net
|
595,035
|
-
|
-
|
580,903
|
580,903
|
Interest
receivable
|
2,044
|
-
|
2,044
|
-
|
2,044
|
Bank owned life
insurance
|
20,050
|
-
|
20,050
|
-
|
20,050
|
Total
|
$764,221
|
$75,804
|
$93,382
|
$580,903
|
$750,089
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$641,709
|
$-
|
$504,522
|
$139,713
|
$644,235
|
Short-term
debt
|
10,000
|
-
|
10,000
|
-
|
10,000
|
Long-term
debt
|
53,201
|
-
|
-
|
53,543
|
53,543
|
Interest
payable
|
354
|
-
|
354
|
-
|
354
|
Total
|
$705,264
|
$-
|
$514,876
|
$193,256
|
$708,132
|
|
March 31,
2020
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Consumer
|
1
|
$4
|
$4
|
Total
|
1
|
$4
|
$4
|
|
March 31,
2020
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Consumer
|
1
|
$30
|
$30
|
Total
|
1
|
$30
|
$30
|
|
March 31,
2019
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Consumer
|
2
|
$5
|
$5
|
Total
|
2
|
$5
|
$5
|
|
March 31,
2019
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Consumer
|
3
|
$10
|
$10
|
Total
|
3
|
$10
|
$10
|
(dollars in
thousands)
|
Unrealized
Securities Gains (Losses)
|
Adjustments
Related to Pension Plan
|
Accumulated
Other Comprehensive Loss
|
Balance at December
31, 2019
|
$(7)
|
$(3,204)
|
$(3,211)
|
Change
in unrealized securities gains (losses), net of tax
|
(39)
|
-
|
(39)
|
Balance at March
31, 2020
|
$(46)
|
$(3,204)
|
$(3,250)
|
(dollars in
thousands)
|
Unrealized
Securities Gains (Losses)
|
Adjustments
Related to Pension Plan
|
Accumulated
Other Comprehensive Loss
|
Balance at December
31, 2018
|
$(94)
|
$(3,875)
|
$(3,969)
|
Change
in unrealized securities gains (losses), net of tax
|
26
|
-
|
26
|
Balance at March
31, 2019
|
$(68)
|
$(3,875)
|
$(3,943)
|
|
Three Months Ended March 31, 2020
|
||||||
|
F&M Bank
|
F&M Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$9,071
|
$36
|
$44
|
$-
|
$-
|
$(41)
|
$9,110
|
Service
charges on deposits
|
361
|
-
|
-
|
-
|
-
|
-
|
361
|
Investment
services and insurance income
|
-
|
-
|
188
|
-
|
-
|
(4)
|
184
|
Mortgage
banking income, net
|
-
|
930
|
-
|
-
|
-
|
-
|
930
|
Title
insurance income
|
-
|
-
|
-
|
371
|
-
|
-
|
371
|
Other
operating income
|
581
|
2
|
-
|
-
|
-
|
-
|
583
|
Total
income
|
10,013
|
968
|
232
|
371
|
-
|
(45)
|
11,539
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
1,719
|
28
|
-
|
-
|
-
|
(41)
|
1,706
|
Provision
for loan losses
|
1,500
|
-
|
-
|
-
|
-
|
-
|
1,500
|
Salary
and benefit expense
|
3,167
|
525
|
85
|
257
|
-
|
-
|
4,034
|
Other
operating expenses
|
2,785
|
218
|
10
|
66
|
11
|
(4)
|
3,086
|
Total
expense
|
9,171
|
771
|
95
|
323
|
11
|
(45)
|
10,326
|
Income
(loss) before income taxes
|
842
|
197
|
137
|
48
|
(11)
|
-
|
1,213
|
Income
tax expense (benefit)
|
(71)
|
-
|
19
|
-
|
14
|
-
|
(38)
|
Net
income (loss)
|
913
|
197
|
118
|
48
|
(25)
|
-
|
1,251
|
Net
(income) loss attributable to noncontrolling interest
|
-
|
62
|
-
|
11
|
(11)
|
-
|
62
|
Net
Income (loss) attributable to F & M Bank Corp.
|
$913
|
$135
|
$118
|
$37
|
$(14)
|
-
|
$1,189
|
Total Assets
|
$831,071
|
$15,566
|
$7,915
|
$1,039
|
$90,908
|
$(118,032)
|
$828,467
|
Goodwill
|
$2,670
|
$47
|
$-
|
$3
|
$164
|
$-
|
$2,884
|
|
Three Months Ended March 31, 2019
|
||||||
|
F&M Bank
|
F&M Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$9,501
|
$25
|
$34
|
$-
|
$-
|
$(28)
|
$9,532
|
Service
charges on deposits
|
386
|
-
|
-
|
-
|
-
|
-
|
386
|
Investment
services and insurance income
|
-
|
-
|
152
|
-
|
-
|
(1)
|
151
|
Mortgage
banking income, net
|
-
|
530
|
-
|
-
|
-
|
-
|
530
|
Title
insurance income
|
-
|
-
|
-
|
276
|
-
|
-
|
276
|
Other
operating income
|
444
|
-
|
-
|
-
|
2
|
-
|
446
|
Total
income
|
10,331
|
555
|
186
|
276
|
2
|
(29)
|
11,321
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
1,500
|
26
|
-
|
-
|
-
|
(28)
|
1,498
|
Provision
for loan losses
|
1,450
|
-
|
-
|
-
|
-
|
-
|
1,450
|
Salary
and benefit expense
|
3,290
|
430
|
81
|
222
|
-
|
-
|
4,023
|
Other
operating expenses
|
2,754
|
173
|
13
|
62
|
6
|
(1)
|
3,007
|
Total
expense
|
8,994
|
629
|
94
|
284
|
6
|
(29)
|
9,978
|
Income
(loss) before income taxes
|
1,337
|
(74)
|
92
|
(8)
|
(4)
|
-
|
1,343
|
Income
tax expense
|
47
|
-
|
13
|
-
|
19
|
-
|
79
|
Net
income (loss)
|
1,290
|
(74)
|
79
|
(8)
|
(23)
|
-
|
1,264
|
Net
loss attributable to noncontrolling interest
|
-
|
(22)
|
-
|
(2)
|
2
|
-
|
(22)
|
Net
Income (loss) attributable to F & M Bank Corp.
|
$1,290
|
$(52)
|
$79
|
$(6)
|
$(25)
|
$-
|
$1,286
|
Total Assets
|
$763,585
|
$6,744
|
$7,487
|
$769
|
$91,635
|
$(90,183)
|
$780,037
|
Goodwill
|
$2,670
|
$47
|
$-
|
$3
|
$164
|
$-
|
$2,884
|
|
Three Months Ended March 31,
|
|
|
2020
|
2019
|
Noninterest
Income (in thousands)
|
|
|
In-scope
of Topic 606:
|
|
|
Service
Charges on Deposits
|
$361
|
$386
|
Investment
Services, Insurance and Mortgage Income
|
1,114
|
681
|
Title
Insurance Income
|
371
|
276
|
ATM
and check card fees
|
433
|
369
|
Other
|
161
|
127
|
Noninterest
Income (in-scope of Topic 606)
|
2,439
|
1,839
|
Noninterest
Income (out-of-scope of Topic 606)
|
(10)
|
(50)
|
Total
Noninterest Income
|
$2,429
|
$1,789
|
(Dollars in
thousands)
|
March 31,
2020
|
March 31,
2019
|
Lease Liabilities
(included in accrued and other liabilities)
|
$956
|
$1,019
|
Right-of-use assets
(included in other assets)
|
$949
|
$1,033
|
Weighted average
remaining lease term
|
4.75 years
|
8.51 years
|
Weighted average
discount rate
|
3.47%
|
3.51%
|
|
|
|
Lease
cost (in thousands)
|
|
|
Operating lease
cost
|
$33
|
$32
|
Total lease
cost
|
$33
|
$32
|
|
|
|
Cash paid for
amounts included in the measurement of lease
liabilities
|
$38
|
$38
|
Lease payments due (in
thousands)
|
As
of
March
31, 2020
|
Twelve
months ending December 31, 2020
|
101
|
Twelve
months ending December 31, 2021
|
134
|
Twelve
months ending December 31, 2022
|
129
|
Twelve
months ending December 31, 2023
|
93
|
Twelve
months ending December 31, 2024
|
123
|
Thereafter
|
627
|
Total
undiscounted cash flows
|
$1,207
|
Discount
|
(251)
|
Lease
liabilities
|
$956
|
Loan Category
|
Loan Balance
(in thousands)
|
Percent of Total Loans Held for Investment
|
Number of Extensions
|
Dollar amount of Extension
|
Construction
|
$33,453
|
5.40%
|
2
|
$9,457
|
Land
development
|
9,886
|
1.60%
|
1
|
219
|
Commercial
owner occcupied
|
24,464
|
3.95%
|
5
|
1,267
|
Commercial
owner occupied - office
|
9,745
|
1.57%
|
-
|
-
|
Commercial
owner occupied - campgrounds
|
5,317
|
0.86%
|
1
|
640
|
Commercial
owner occupied - restaruants
|
5,395
|
0.87%
|
7
|
4,423
|
Commercial
owner occupied - school
|
4,271
|
0.69%
|
-
|
-
|
Commerical
owner occupied - church
|
6,199
|
1.00%
|
1
|
1,146
|
Commercial
nonowner occupied - other
|
13,623
|
2.20%
|
9
|
2,942
|
Commercial
hotel/motel
|
13,848
|
2.24%
|
12
|
13,142
|
Commercial
assisted living
|
2,672
|
0.43%
|
-
|
-
|
Commercial
nonowner occupied - retail
|
22,649
|
3.66%
|
7
|
13,127
|
Consumer
- auto, truck, motorcycle
|
78,387
|
12.66%
|
527
|
6,717
|
Consumer
other
|
7,349
|
1.19%
|
28
|
214
|
Poultry
Farm
|
12,501
|
2.02%
|
-
|
-
|
Raw
Land
|
11,952
|
1.93%
|
1
|
1,017
|
Multifamily
|
5,295
|
0.86%
|
-
|
-
|
Farmland
residential
|
2,239
|
0.36%
|
-
|
-
|
Municipals
|
5,710
|
0.92%
|
-
|
-
|
|
|
|
|
|
|
$274,955
|
44.40%
|
601
|
$54,311
|
GAAP
Financial Measurements:
|
2020
|
2019
|
Interest
Income – Loans
|
$8,722
|
$9,413
|
Interest Income -
Securities and Other Interest-Earnings Assets
|
388
|
119
|
Interest
Expense – Deposits
|
1,452
|
1,101
|
Interest
Expense - Other Borrowings
|
254
|
397
|
Total
Net Interest Income
|
7,404
|
8,034
|
Non-GAAP
Financial Measurements:
|
|
|
Add: Tax Benefit on
Tax-Exempt Interest Income – Loans
|
18
|
18
|
Total
Tax Benefit on Tax-Exempt Interest Income
|
18
|
18
|
Tax-Equivalent
Net Interest Income
|
$7,422
|
$8,052
|
|
March 31,
2020
|
December 31,
2019
|
Nonaccrual Loans
|
|
|
Real
Estate
|
$1,254
|
$1,721
|
Commercial
|
2,300
|
3,036
|
Home
Equity
|
215
|
-
|
Other
|
191
|
250
|
|
$3,960
|
$5,007
|
Loans past due 90 days or more (excluding nonaccrual)
|
|
|
Real
Estate
|
34
|
619
|
Commercial
|
-
|
-
|
Home
Equity
|
169
|
15
|
Other
|
5
|
88
|
|
208
|
722
|
Total Nonperforming
loans
|
$4,168
|
$5,729
|
|
|
|
Restructured Loans
current and performing:
|
|
|
Real
Estate
|
$3,661
|
$3,644
|
Commercial
|
1,209
|
1,223
|
Home
Equity
|
707
|
716
|
Other
|
123
|
167
|
|
|
|
Nonperforming loans
as a percentage of loans held for investment
|
.68%
|
.95%
|
Net charge offs to
total loans held for investment 1
|
.30%
|
.71%
|
Allowance for loan
and lease losses to nonperforming loans
|
226.42%
|
146.45%
|
|
Three Months
Ended
|
Three Months
Ended
|
||||
|
March 31,
2020
|
March 31,
2019
|
||||
Average
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
Balance4
|
Expense
|
Rates
|
Balance4
|
Expense
|
Rates
|
Interest income
|
|
|
|
|
|
|
Loans
held for investment1,2
|
$610,174
|
$8,469
|
5.58%
|
$645,496
|
$9,105
|
5.72%
|
Loans
held for sale
|
33,490
|
270
|
3.24%
|
37,477
|
326
|
3.53%
|
Federal
funds sold
|
94,964
|
294
|
1.25%
|
1,369
|
8
|
2.37%
|
Interest
bearing deposits
|
1,278
|
3
|
.94%
|
845
|
6
|
2.40%
|
Investments
|
|
|
|
|
|
|
Taxable
3
|
11,637
|
91
|
3.15%
|
13,538
|
104
|
3.12%
|
Partially
taxable
|
125
|
1
|
3.22%
|
123
|
1
|
3.30%
|
Total
earning assets
|
$751,668
|
$9,128
|
4.88%
|
$698,848
|
$9,550
|
5.54%
|
Interest Expense
|
|
|
|
|
|
|
Demand
deposits
|
96,060
|
63
|
.26%
|
90,159
|
47
|
.21%
|
Savings
|
254,053
|
794
|
1.26%
|
189,840
|
484
|
1.03%
|
Time
deposits
|
136,502
|
595
|
1.75%
|
153,124
|
570
|
1.51%
|
Short-term
debt
|
7,143
|
41
|
2.31%
|
31,684
|
203
|
2.60%
|
Long-term
debt
|
45,570
|
213
|
1.88%
|
39,332
|
194
|
2.00%
|
Total
interest bearing liabilities
|
$539,328
|
$1,706
|
1.27%
|
$504,139
|
$1,498
|
1.21%
|
|
|
|
|
|
|
|
Tax equivalent net
interest income 3
|
|
$7,422
|
|
|
$8,052
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.97%
|
|
|
4.67%
|
|
0 –
3
|
4 –
12
|
1 –
5
|
Over
5
|
Not
|
|
|
Months
|
Months
|
Years
|
Years
|
Classified
|
Total
|
|
|
|
|
|
|
|
Uses of funds
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
Commercial
|
$44,248
|
$22,779
|
$115,325
|
$24,176
|
$-
|
$206,528
|
Installment
|
1,933
|
1,588
|
72,052
|
16,383
|
-
|
91,956
|
Real estate loans
for investments
|
88,062
|
44,975
|
158,151
|
16,996
|
-
|
308,184
|
Loans held for
sale
|
60,765
|
-
|
-
|
-
|
-
|
60,765
|
Credit
cards
|
2,917
|
-
|
-
|
-
|
-
|
2,917
|
Interest bearing
bank deposits
|
1,646
|
-
|
-
|
-
|
-
|
1,646
|
Federal funds
sold
|
78,944
|
-
|
-
|
-
|
-
|
78,944
|
Investment
securities
|
124
|
2,998
|
3,974
|
307
|
-
|
7,403
|
Total
|
278,639
|
72,340
|
349,502
|
57,862
|
-
|
758,343
|
|
|
|
|
|
|
|
Sources of funds
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
-
|
18,545
|
55,635
|
18,543
|
-
|
92,723
|
Savings
deposits
|
-
|
107,454
|
145,934
|
19,241
|
-
|
272,629
|
Other certificates
of deposit
|
11,762
|
49,321
|
72,543
|
214
|
-
|
133,840
|
Short-term
borrowings
|
-
|
-
|
-
|
-
|
-
|
-
|
Long-term
borrowings
|
1,107
|
8,072
|
22,035
|
10,875
|
-
|
42,089
|
Total
|
12,869
|
183,392
|
296,147
|
48,873
|
-
|
541,281
|
|
|
|
|
|
|
|
Discrete
Gap
|
265,770
|
(111,052)
|
53,355
|
8,989
|
-
|
|
|
|
|
|
|
|
|
Cumulative
Gap
|
$265,770
|
$154,718
|
$208,073
|
$217,062
|
$217,062
|
|
|
|
|
|
|
|
|
Ratio of Cumulative
Gap to Total Earning Assets
|
35.05%
|
20.40%
|
27.44%
|
28.62%
|
28.62%
|
|
Item
1.
|
Legal
Proceedings
|
|
|
|
|
|
|
|
There are no
material pending legal proceedings other than ordinary routine
litigation incidental to its business, to which the Company is a
party or of which the property of the Company is
subject.
|
||
|
|
|
|
Item
1a.
|
Risk
Factors
|
|
Not
required
|
|
|
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
|
None
|
|
|
|
|
Item
3.
|
Defaults Upon
Senior Securities
|
|
None
|
|
|
|
|
Item
4.
|
Mine Safety
Disclosures
|
|
None
|
|
|
|
|
Item
5.
|
Other
Information
|
|
None
|
|
|
|
|
Item
6.
|
Exhibits
|
|
|
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
Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
101
|
The following
materials from F&M Bank Corp.’s Quarterly Report on Form
10Q for the period ended March 31, 2020, 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:
May 11,
2020
|
By:
|
/s/ Mark C. Hanna
|
|
|
|
Mark C.
Hanna
|
|
|
|
Chief Executive
Officer
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Carrie A.
Comer
|
|
|
|
Carrie A.
Comer
|
|
|
|
Executive Vice
President and Chief Financial Officer
|
|