Business Segments

9 Months Ended

Sep. 30, 2020

Business Segments

Note 10. Business Segments

Note 10. 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 Company purchased the noncontrolling interest of F&M Mortgage and VSTitle during the second quarter of 2020.

The following tables represent revenues and expenses by segment for the three and nine months ended September 30, 2020 and September 30, 2019.

	Nine Months Ended September 30, 2020
	F&M Bank		F&M Mortgage		TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	27,199	$	227	$	115	$	-	$	-		$	(261	)	$	27,280
Service charges on deposits		888		-		-		-		-			-			888
Investment services and insurance income		-		-		543		-		-			(18	)		525
Mortgage banking income, net		-		4,521		-		-		-			-			4,521
Title insurance income		-		-		-		1,386		-			-			1,386
Other operating income (loss)		1,668		126		-		-		(99	)		-			1,695
Total income (loss)		29,755		4,874		658		1,386		(99	)		(279	)		36,295
Expenses:
Interest Expense		4,419		235		-		-		-			(261	)		4,393
Provision for loan losses		3,300		-		-		-		122			-			3,422
Salary and benefit expense		9,623		1,655		231		740		-			-			12,249
Other operating expenses		8,622		691		42		190		32			(18	)		9,559
Total expense		25,964		2,581		273		930		154			(279	)		29,623
Net income (loss) before taxes		3,791		2,293		385		456		(253	)		-			6,672
Income tax expense (benefit)		527		-		59		-		(41	)		-			545
Net income (loss)		3,264		2,293		326		456		(212	)		-			6,127
Net income attributable to non-controlling interest		-		105		-		-		-			-			105
Net Income (loss) attributable to F & M Bank Corp.	$	3,264	$	2,188	$	326	$	456	$	(212	)	$	-		$	6,022
Total Assets	$	1,019,005	$	24,589	$	7,911	$	4,664	$	105,633		$	(146,378	)	$	1,015,424
Goodwill	$	2,670	$	47	$	-	$	3	$	164		$	-		$	2,884

	Three months ended September 30, 2020
	F&M Bank		F&M Mortgage		TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	9,163	$	107	$	35	$	-	$	-		$	(127	)	$	9,178
Service charges on deposits		302		-		-		-		-			-			302
Investment services and insurance income		-		-		176		-		-			(9	)		167
Mortgage banking income, net		-		1,621		-		-		-			-			1,621
Title insurance income		-		-		-		543		-			-			543
Other operating income (loss)		572		69		-		-		(46	)		-			595
Total income (loss)		10,037		1,797		211		543		(46	)		(136	)		12,406
Expenses:
Interest Expense		1,308		121		-		-		122			(127	)		1,424
Provision for loan losses		1,000		-		-		-		-			-			1,000
Salary and benefit expense		3,257		504		73		247		-			-			4,081
Other operating expenses		2,899		339		16		61		17			9	)		3,223
Total expense		8,464		964		89		308		139			(136	)		9,828
Net income (loss) before taxes		1,573		833		122		235		(185	)		-			2,578
Income tax expense		337		-		20		-		15			-			372
Net income (loss)	$	1,236	$	833	$	102	$	235	$	(200	)	$	-		$	2,206
Net Income (loss) attributable to F & M Bank Corp.	$	1,236	$	833	$	102	$	235	$	(200	)	$	-		$	2,206

	Nine Months Ended September 30, 2019
	F&M Bank			VBS Mortgage		TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	29,200		$	120	$	120	$	-	$	-		$	(160	)	$	29,280
Service charges on deposits		1,263			-		-		-		-			-			1,263
Investment services and insurance income		2			-		497		-		-			(12	)		487
Mortgage banking income, net		-			2,252		-		-		-			-			2,252
Title insurance income		-			-		-		1,116		-			-			1,116
Other operating income (loss)		1,786			58		-		-		(53	)		-			1,791
Total income (loss)		32,251			2,430		617		1,116		(53	)		(172	)		36,189
Expenses:
Interest Expense		5,046			139		-		-		-			(160	)		5,025
Provision for loan losses		6,800			-		-		-		-			-			6,800
Salary and benefit expense		10,156			1,410		221		705		-			-			12,492
Other operating expenses		8,317			527		46		188		40			(12	)		9,106
Total expense		30,319			2,076		267		893		40			(172	)		33,423
Net income (loss) before taxes		1,932			354		350		223		(93	)		-			2,766
Income tax expense (benefit)		(210	)		-		51		-		84			-			(75	)
Net income (loss)	$	2,142		$	354	$	299	$	223	$	(177	)	$	-		$	2,841
Net income (loss) attributable to non-controlling interest		-			106		-		54		(54	)		-			106
Net Income (loss) attributable to F & M Bank Corp.	$	2,142		$	248	$	299	$	169	$	(123	)	$	-		$	2,735
Total Assets	$	816,130		$	12,287	$	7,617	$	2,913	$	90,390		$	(116,100	)	$	813,237
Goodwill	$	2,670		$	47	$	-	$	3	$	164		$	-		$	2,884

	Three Months Ended September 30, 2019
	F&M Bank			VBS Mortgage		TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	9,945		$	52	$	45	$	-	$	-		$	(76	)	$	9,966
Service charges on deposits		460			-		-		-		-			-			460
Investment services and insurance income		-			-		172		-		-			(7	)		165
Mortgage banking income, net		-			907		-		-		-			-			907
Title insurance income		-			-		-		434		-			-			434
Other operating income (loss)		678			30		-		-		(29	)		-			679
Total income (loss)		11,083			989		217		434		(29	)		(83	)		12,611
Expenses:
Interest Expense		1,814			63		-		-		-			(76	)		1,801
Provision for loan losses		3,750			-		-		-		-			-			3,750
Salary and benefit expense		3,581			491		71		248		-			-			4,391
Other operating expenses		2,825			176		18		64		9			(7	)		3,085
Total expense		11,970			730		89		312		9			(83	)		13,027
Net income (loss) before taxes		(887	)		259		128		122		(38	)		-			(416	)
Income tax expense (benefit)		(369	)		-		18		-		44			-			(307	)
Net income (loss)	$	(518	)	$	259	$	110	$	122	$	(82	)	$	-		$	(109	)
Net income (loss) attributable to non-controlling interest		-			78		-		29		(29	)		-			78
Net Income (loss) attributable to F & M Bank Corp.	$	(518	)	$	181	$	110	$	93	$	(53	)	$	-		$	(187	)