Business Segments

9 Months Ended

Sep. 30, 2021

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, 2021 and September 30, 2020 (dollars in thousands).

	Nine Months Ended September 30, 2021
	F&M Bank			F&M Mortgage		TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	26,499		$	165	$	85	$	-	$	1		$	(130	)	$	26,620
Service charges on deposits		839			-		-		-		-			-			839
Investment services and insurance income		-			-		742		-		-			(6	)		736
Mortgage banking income, net		-			3,874		-		-		-			-			3,874
Title insurance income		-			-		-		1,607		-			-			1,607
Other operating income (loss)		2,334			121		-		-		(114	)		-			2,341
Total income (loss)		29,672			4,160		827		1,607		(113	)		(136	)		36,017
Expenses:
Interest Expense		2,690			115		-		-		551			(130	)		3,226
(Recovery of) loan losses		(2,210	)		-		-		-		-			-			(2,210	)
Salary and benefit expense		10,772			1,902		280		905		-			-			13,859
Other operating expenses		9,777			677		37		227		60			(6	)		10,772
Total expense		21,029			2,694		317		1,132		611			(136	)		25,647
Net income (loss) before taxes		8,643			1,466		510		475		(724	)		-			10,370
Income tax expense		1,199			-		107		-		(294	)		-			1,012
Net Income attributable to F & M Bank Corp.	$	7,444		$	1,466	$	403	$	475	$	(430	)	$	-		$	9,358
Total Assets	$	1,177,613		$	10,255	$	8,434	$	2,802	$	113,627		$	(142,072	)	$	1,170,659
Goodwill	$	2,868		$	47	$	-	$	3	$	164		$	-		$	3,082

	Three months ended September 30, 2021
	F&M Bank			F&M Mortgage		TEB Life/FMFS		VS Title		Parent Only			Eliminations			F&M Bank Corp. Consolidated
Revenues:
Interest Income	$	9,010		$	41	$	26	$	-	$	1		$	(22	)	$	9,055
Service charges on deposits		300			-		-		-		-			-			300
Investment services and insurance income		-			-		213		-		-			(3	)		210
Mortgage banking income, net		-			1,176		-		-		-			-			1,176
Title insurance income		-			-		-		556		-			-			556
Other operating income (loss)		711			41		-		-		(38	)		-			714
Total income (loss)		10,021			1,258		239		556		(38	)		(25	)		12,011
Expenses:
Interest Expense		919			17		-		-		175			(22	)		1,089
(Recovery of) loan losses		(235	)		-		-		-		-			-			(235	)
Salary and benefit expense		3,660			620		99		323		-			-			4,702
Other operating expenses		3,477			213		18		73		21			(3	)		3,799
Total expense		7,821			850		117		396		196			(25	)		9,355
Net income (loss) before taxes		2,200			408		122		160		(234	)		-			2,656
Income tax expense		277			-		26		-		16			-			319
Net Income attributable to F & M Bank Corp.	$	1,923		$	408	$	96	$	160	$	(250	)	$	-		$	2,337

	Nine Months Ended September 30, 2020
	F&M Bank		VBS 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		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 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		VBS 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 attributable to F & M Bank Corp.	$	1,236	$	833	$	102	$	235	$	(200	)	$	-		$	2,206