Virginia | 54-1280811 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ☐ | Accelerated filer | ☒ |
Non-accelerated filer | Smaller reporting company | ☒ | |
☐ |
Page | ||||
PART I | ||||
Item 1 | Business | 2 | ||
Item 1A | Risk Factors | |||
Item 1B | Unresolved Staff Comments | |||
Item 2 | Properties | |||
Item 3 | Legal Proceedings | |||
Item 4 | Mine Safety Disclosures | |||
PART II | ||||
Item 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |||
Item 6 | Selected Financial Data | |||
Item 7 | Management’s Discussion and Analysis of Financial Condition | |||
and Results of Operations | ||||
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | 42 | ||
Item 8 | Financial Statements and Supplementary Data | |||
Item 9 | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |||
Item 9A | Controls and Procedures | |||
Item 9B | Other Information | |||
PART III | ||||
Item 10 | Directors, Executive Officers and Corporate Governance | |||
Item 11 | Executive Compensation | |||
Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |||
Item 13 | Certain Relationships and Related Transactions, and Director Independence | |||
Item 14 | Principal Accounting Fees and Services | |||
PART IV | ||||
Item 15 | Exhibits and Financial Statement Schedules | |||
Item 16 | Form 10-K Summary | 101 | ||
Signatures |
Period | Class of Service | Percentage of Total Revenues |
December 31, 2017 | Interest and fees on loans held for investment | 77.35% |
December 31, 2016 | Interest and fees on loans held for investment | 79.02% |
December 31, 2015 | Interest and fees on loans held for investment | 81.75% |
interest-only payments; ● negative-amortization; and ● terms longer than 30 years. |
Corporate Offices | Timberville Branch | Elkton Branch |
205 South Main Street | 165 New Market Road | 127 West Rockingham Street |
Timberville, VA 22853 | Timberville, VA 22853 | Elkton, VA 22827 |
Broadway Branch | |
126 Timberway | |
Broadway, VA 22815 | Harrisonburg, VA 22801 |
Bridgewater Branch | Edinburg Branch |
100 Plaza Drive | 120 South Main Street |
Bridgewater, VA 22812 | Edinburg, VA 22824 |
Woodstock Branch | Crossroads Branch |
161 South Main Street | 80 Cross Keys Road |
Woodstock, VA 22664 | Harrisonburg, VA 22801 |
Luray Branch | Dealer Finance Division |
700 East Main Street | 4759 Spotswood Trail |
Luray, VA 22835 | Penn Laird, VA 22846 |
North Augusta Branch | |
2813 North Augusta Street | |
Staunton, VA 22401 | |
Craigsville Branch | Grottoes Branch |
125 W. Craig Street | 200 Augusta Avenue |
Craigsville, VA 24430 | Grottoes, VA 24441 |
VBS’ offices are located at: | |||
Harrisonburg Office | |||
2040 Deyerle Avenue | 1842 Jefferson Hwy | 161 South Main Street | |
Suite 107 | Fishersville, VA 22939 | Woodstock, VA 22664 | |
Harrisonburg, VA 22801 | |||
VS Title’s offices are located at: | |||
Harrisonburg Office | Fishersville Office | Charlottesville Office | |
410 Neff Avenue | 1707 Jefferson Highway | 154 Hansen Rd., Suite 202-C | |
Harrisonburg, VA 22801 | Fishersville, VA 22939 | Charlottesville, VA 22911 |
Period Ending | ||||||||||||||||||||||||||||||
Period Ending | ||||||||||||||||||||||||||||||
Index | 12/31/10 | 12/31/11 | 12/31/12 | 12/31/13 | 12/31/14 | 12/31/15 | 12/31/12 | 12/31/13 | 12/31/14 | 12/31/15 | 12/31/16 | 12/31/17 | ||||||||||||||||||
F & M Bank Corp. | 100.00 | 98.06 | 113.68 | 143.51 | 156.93 | 189.07 | 100.00 | 126.23 | 138.04 | 166.31 | 197.11 | 258.36 | ||||||||||||||||||
Russell 2000 | 100.00 | 95.82 | 111.49 | 154.78 | 162.35 | 155.18 | ||||||||||||||||||||||||
SNL Bank | 100.00 | 77.44 | 104.51 | 143.49 | 160.40 | 163.14 | ||||||||||||||||||||||||
Russell 2000 Index | 100.00 | 138.82 | 145.62 | 139.19 | 168.85 | 193.58 | ||||||||||||||||||||||||
SNL Bank Index | 100.00 | 137.30 | 153.48 | 156.10 | 197.23 | 232.91 |
2015 | 2014 | 2017 | 2016 | |||||||||||||||||||||||||||
Stock Price Range | Per Share | Stock Price Range | Per Share | Stock Price Range | Per Share | Stock Price Range | Per Share | |||||||||||||||||||||||
Quarter | Low | High | Dividends Declared | Low | High | Dividends Declared | Low | High | Dividends Declared | Low | High | Dividends Declared | ||||||||||||||||||
1st | 19.30 | 20.95 | $ | .18 | 17.21 | 18.00 | $ | .17 | $26.50 | $28.45 | $.22 | $21.75 | $23.55 | $.19 | ||||||||||||||||
2nd | 20.00 | 24.50 | .18 | 17.27 | 19.90 | .17 | 27.50 | 29.35 | .23 | 23.02 | 25.00 | .19 | ||||||||||||||||||
3rd | 20.98 | 22.45 | .18 | 17.70 | 19.08 | .17 | 29.20 | 32.00 | .24 | 23.50 | 26.25 | .20 | ||||||||||||||||||
4th | 21.10 | 24.47 | .19 | 17.83 | 19.73 | .17 | 30.02 | 34.50 | .25 | 24.82 | 27.00 | .22 | ||||||||||||||||||
Total | $ | .73 | $ | .68 | $.94 | $.80 |
(Dollars in thousands, except per share data) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Interest and Dividend Income | $ | 29,353 | $ | 26,772 | $ | 25,966 | $ | 27,225 | $ | 27,680 | ||||||||||
Interest Expense | 2,876 | 3,648 | 4,773 | 6,294 | 7,719 | |||||||||||||||
Net Interest Income | 26,477 | 23,124 | 21,193 | 20,931 | 19,961 | |||||||||||||||
Provision for Loan Losses | 300 | 2,250 | 3,775 | 4,200 | 4,000 | |||||||||||||||
Net Interest Income after Provision for Loan Losses | 26,177 | 20,874 | 17,418 | 16,731 | 15,961 | |||||||||||||||
Noninterest Income | 3,732 | 3,485 | 3,925 | 3,627 | 3,118 | |||||||||||||||
Low Income Housing Partnership Losses | (620 | ) | (608 | ) | (856 | ) | (621 | ) | (467 | ) | ||||||||||
Securities Gains (Losses) | - | - | - | - | 1,024 | |||||||||||||||
Noninterest Expenses | 17,986 | 15,656 | 14,720 | 13,362 | 12,892 | |||||||||||||||
Income before Income Taxes | 11,303 | 8,095 | 5,767 | 6,375 | 6,744 | |||||||||||||||
Income Tax Expense | 2,886 | 2,293 | 1,051 | 1,474 | 2,056 | |||||||||||||||
Net Income | $ | 8,417 | $ | 5,802 | $ | 4,716 | $ | 4,901 | $ | 4,688 | ||||||||||
Per Share Data: | ||||||||||||||||||||
Net Income – basic | $ | 2.40 | $ | 1.82 | $ | 1.88 | $ | 1.96 | $ | 1.91 | ||||||||||
Net Income - diluted | $ | 2.25 | $ | 1.80 | $ | - | $ | - | $ | - | ||||||||||
Dividends Declared | .73 | .68 | .68 | .64 | .60 | |||||||||||||||
Book Value per Common Share | 22.38 | 20.77 | 21.56 | 19.76 | 18.53 | |||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Assets | $ | 665,357 | $ | 605,308 | $ | 552,788 | $ | 596,904 | $ | 566,734 | ||||||||||
Loans Held for Investment | 544,053 | 518,202 | 478,453 | 465,819 | 451,570 | |||||||||||||||
Loans Held for Sale | 57,806 | 13,382 | 3,804 | 77,207 | 60,543 | |||||||||||||||
Securities | 25,329 | 22,305 | 38,486 | 18,807 | 22,108 | |||||||||||||||
Deposits | 494,670 | 491,505 | 464,149 | 453,796 | 435,947 | |||||||||||||||
Short-Term Debt | 24,954 | 14,358 | 3,423 | 34,597 | 18,539 | |||||||||||||||
Long-Term Debt | 48,161 | 9,875 | 21,691 | 47,905 | 57,298 | |||||||||||||||
Stockholders’ Equity | 82,950 | 77,798 | 54,141 | 49,384 | 46,180 | |||||||||||||||
Average Common Shares Outstanding – basic | 3,291 | 3,119 | 2,504 | 2,496 | 2,450 | |||||||||||||||
Average Common Shares Outstanding – diluted | 3,735 | 3,230 | - | - | - | |||||||||||||||
Financial Ratios: | ||||||||||||||||||||
Return on Average Assets1 | 1.31 | % | 1.00 | % | .82 | % | .86 | % | .84 | % | ||||||||||
Return on Average Equity1 | 10.46 | % | 8.65 | % | 9.11 | % | 10.26 | % | 10.41 | % | ||||||||||
Net Interest Margin | 4.43 | % | 4.30 | % | 4.02 | % | 3.95 | % | 3.87 | % | ||||||||||
Efficiency Ratio 2 | 58.96 | % | 58.51 | % | 58.15 | % | 54.03 | % | 55.43 | % | ||||||||||
Dividend Payout Ratio - Common | 30.42 | % | 37.36 | % | 36.17 | % | 32.65 | % | 31.41 | % | ||||||||||
Capital and Credit Quality Ratios: | ||||||||||||||||||||
Average Equity to Average Assets1 | 12.49 | % | 11.59 | % | 9.00 | % | 8.35 | % | 8.14 | % | ||||||||||
Allowance for Loan Losses to Loans3 | 1.61 | % | 1.68 | % | 1.71 | % | 1.75 | % | 1.54 | % | ||||||||||
Nonperforming Loans to Total Assets4 | .98 | % | 1.15 | % | 2.28 | % | 2.24 | % | 2.61 | % | ||||||||||
Nonperforming Assets to Total Assets5 | 1.34 | % | 1.73 | % | 2.75 | % | 2.73 | % | 3.15 | % | ||||||||||
Net Charge-offs to Total Loans3 | .04 | % | .33 | % | .78 | % | .64 | % | .63 | % |
(Dollars and shares in thousands, except per share data) | 2017 | 20166 | 20156 | 2014 | 2013 |
Income Statement Data: | |||||
Interest and Dividend Income | $34,095 | $32,150 | $29,404 | $26,772 | $25,966 |
Interest Expense | 3,897 | 3,599 | 2,876 | 3,648 | 4,773 |
Net Interest Income | 30,198 | 28,551 | 26,528 | 23,124 | 21,193 |
Provision for Loan Losses | - | - | 300 | 2,250 | 3,775 |
Net Interest Income After Provision for Loan Losses | 30,198 | 28,551 | 26,228 | 20,874 | 17,418 |
Noninterest Income6 | 8,517 | 6,313 | 5,412 | 3,530 | 4,032 |
Low income housing partnership losses | (625) | (731) | (619) | (608) | (856) |
Noninterest Expenses6 | 24,719 | 21,272 | 19,554 | 15,656 | 14,720 |
Income before income taxes | 13,371 | 12,861 | 11,467 | 8,140 | 5,874 |
Income Tax Expense | 4,330 | 3,099 | 2,886 | 2,293 | 1,051 |
Net income attributable to noncontrolling interest | (31) | (194) | (164) | (45) | (107) |
Net Income attributable to F & M Bank Corp. | $9,010 | $9,568 | $8,417 | $5,802 | $4,716 |
Per Common Share Data: | |||||
Net Income – basic | $2.63 | $2.77 | $2.40 | $1.82 | $1.88 |
Net Income - diluted | $2.48 | $2.57 | $2.25 | $1.80 | $1.88 |
Dividends Declared | .94 | .80 | .73 | .68 | .68 |
Book Value per Common Share | 25.73 | 24.18 | 22.38 | 20.77 | 21.56 |
Balance Sheet Data: | |||||
Assets | $753,270 | $744,889 | $665,357 | $605,308 | $552,788 |
Loans Held for Investment | 616,974 | 591,636 | 544,053 | 518,202 | 478,453 |
Loans Held for Sale | 39,775 | 62,735 | 57,806 | 13,382 | 3,804 |
Securities | 41,243 | 39,475 | 25,329 | 22,305 | 38,486 |
Deposits | 569,177 | 537,085 | 494,670 | 491,505 | 464,149 |
Short-Term Debt | 25,296 | 40,000 | 24,954 | 14,358 | 3,423 |
Long-Term Debt | 49,733 | 64,237 | 48,161 | 9,875 | 21,691 |
Stockholders’ Equity | 91,275 | 86,682 | 82,950 | 77,798 | 54,141 |
Average Common Shares Outstanding – basic | 3,270 | 3,282 | 3,291 | 3,119 | 2,504 |
Average Common Shares Outstanding – diluted | 3,632 | 3,717 | 3,735 | 3,230 | 2,504 |
Financial Ratios: | |||||
Return on Average Assets1 | 1.21% | 1.34% | 1.31% | 1.00% | .82% |
Return on Average Equity1 | 10.01% | 11.18% | 10.46% | 8.65% | 9.11% |
Net Interest Margin | 4.53% | 4.34% | 4.43% | 4.30% | 4.02% |
Efficiency Ratio 2 | 63.54% | 60.78% | 60.97% | 58.51% | 58.15% |
Dividend Payout Ratio - Common | 35.74% | 28.88% | 30.42% | 37.36% | 36.17% |
Capital and Credit Quality Ratios: | |||||
Average Equity to Average Assets1 | 12.10% | 11.97% | 12.49% | 11.59% | 9.00% |
Allowance for Loan Losses to Loans3 | .98% | 1.27% | 1.61% | 1.68% | 1.71% |
Nonperforming Loans to Total Assets4 | .94% | .65% | .98% | 1.15% | 2.28% |
Nonperforming Assets to Total Assets5 | 1.21% | .94% | 1.34% | 1.73% | 2.75% |
Net Charge-offs to Total Loans3 | .24% | .21% | .04% | .33% | .78% |
2015 | 2014 | |||||||
to 2014 | to 2013 | |||||||
Prior Year Net Income Per Common Share | $ | 1.82 | $ | 1.88 | ||||
Change from differences in: | ||||||||
Net interest income | 1.02 | .77 | ||||||
Provision for credit losses | .59 | .61 | ||||||
Noninterest income, excluding securities gains | .08 | (.18 | ) | |||||
Noninterest expenses | (.71 | ) | (.37 | ) | ||||
Income taxes | (.18 | ) | (.40 | ) | ||||
Effect of common stock raise | - | (.49 | ) | |||||
Effect of preferred stock dividend | (.12 | ) | - | |||||
Effect of increase in average shares outstanding | (.10 | ) | - | |||||
Total Change | .58 | (.06 | ) | |||||
Net Income Per Common Share | $ | 2.40 | $ | 1.82 |
2017 | 2016 | |
to 2016 | to 2015 | |
Prior Year Net Income Per Common Share (Basic) | $2.77 | $2.40 |
Change from differences in: | ||
Net interest income 1 | .52 | .62 |
Provision for loan losses | - | .09 |
Noninterest income, excluding securities gains | 1.36 | (.08) |
Security gains (losses), net | (.01) | - |
Noninterest expenses1 | (1.66) | (.40) |
Income taxes | (.38) | .12 |
Effect of preferred stock dividend | .02 | .01 |
Change in average shares outstanding | .01 | .01 |
Total Change | (.14) | .37 |
Net Income Per Common Share (Basic) | $2.63 | $2.77 |
2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Loans2 | ||||||||||||||||||||||||||||||||||||
Commercial | $ | 170,272 | $ | 8,103 | 4.76 | % | $ | 164,666 | $ | 7,810 | 4.74 | % | $ | 169,431 | $ | 7,896 | 4.66 | % | ||||||||||||||||||
Real estate | 295,892 | 14,976 | 5.06 | % | 281,052 | 14,542 | 5.17 | % | 268,902 | 14,796 | 5.50 | % | ||||||||||||||||||||||||
Installment | 65,870 | 4,981 | 7.56 | % | 50,695 | 3,960 | 7.81 | % | 33,625 | 2,467 | 7.34 | % | ||||||||||||||||||||||||
Loans held for investment4 | 532,034 | 28,060 | 5.27 | % | 496,413 | 26,312 | 5.30 | % | 471,958 | 25,159 | 5.33 | % | ||||||||||||||||||||||||
Loans held for sale | 40,450 | 1,099 | 2.72 | % | 9,072 | 312 | 3.44 | % | 21,298 | 648 | 3.04 | % | ||||||||||||||||||||||||
Investment securities3 | ||||||||||||||||||||||||||||||||||||
Fully taxable | 17,372 | 303 | 1.74 | % | 13,392 | 205 | 1.53 | % | 11,718 | 194 | 1.66 | % | ||||||||||||||||||||||||
Partially taxable | 125 | - | .- | 116 | - | .- | 107 | - | .- | |||||||||||||||||||||||||||
Tax exempt | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total investment securities | 17,497 | 303 | 1.74 | % | 13,508 | 205 | 1.53 | % | 11,825 | 194 | 1.66 | % | ||||||||||||||||||||||||
Interest bearing deposits in banks | 1,223 | - | - | 896 | - | - | 1,084 | 4 | .37 | % | ||||||||||||||||||||||||||
Federal funds sold | 9,310 | 21 | .23 | % | 20,602 | 44 | .21 | % | 23,094 | 50 | .22 | % | ||||||||||||||||||||||||
Total Earning Assets | 600,514 | 29,483 | 4.91 | % | 540,491 | 26,873 | 4.97 | % | 529,259 | 26,055 | 4.92 | % | ||||||||||||||||||||||||
Allowance for loan losses | (8,933 | ) | (8,476 | ) | (8,384 | ) | ||||||||||||||||||||||||||||||
Nonearning assets | 52,378 | 47,036 | 48,565 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 643,959 | $ | 579,051 | $ | 569,440 | ||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||
Demand –interest bearing | $ | 112,334 | $ | 539 | .48 | % | $ | 117,396 | $ | 664 | .57 | % | $ | 120,482 | $ | 792 | .66 | % | ||||||||||||||||||
Savings | 76,491 | 212 | .28 | % | 60,460 | 122 | .20 | % | 52,714 | 119 | .23 | % | ||||||||||||||||||||||||
Time deposits | 171,829 | 1,402 | .82 | % | 195,933 | 1,704 | .87 | % | 198,786 | 2,331 | 1.17 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 360,654 | 2,153 | .60 | % | 373,789 | 2,490 | .67 | % | 371,982 | 3,242 | .87 | % | ||||||||||||||||||||||||
Short-term debt | 32,017 | 69 | .22 | % | 3,872 | 9 | .23 | % | 6,171 | 24 | .39 | % | ||||||||||||||||||||||||
Long-term debt | 31,856 | 654 | 2.05 | % | 21,501 | 1,149 | 5.34 | % | 36,280 | 1,507 | 4.15 | % | ||||||||||||||||||||||||
Total interest bearing liabilities | 424,527 | 2,876 | .68 | % | 399,162 | 3,648 | .91 | % | 414,433 | 4,773 | 1.15 | % | ||||||||||||||||||||||||
Noninterest bearing deposits | 125,665 | 107,647 | 90,170 | |||||||||||||||||||||||||||||||||
Other liabilities | 13,318 | 5,134 | 13,074 | |||||||||||||||||||||||||||||||||
Total liabilities | 563,510 | 511,943 | 517,677 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 80,449 | 67,108 | 51,763 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 643,959 | $ | 579,051 | $ | 569,440 | ||||||||||||||||||||||||||||||
Net interest earnings | $ | 26,607 | $ | 23,225 | $ | 21,282 | ||||||||||||||||||||||||||||||
Net yield on interest earning assets (NIM) | 4.43 | % | 4.30 | % | 4.02 | % | ||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | |||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |
ASSETS | |||||||||
Loans2 | |||||||||
Commercial | $182,646 | $9,475 | 5.19% | $176,389 | $8,362 | 4.74% | $170,272 | $8,103 | 4.76% |
Real estate | 330,828 | 16,678 | 5.04% | 312,435 | 15,781 | 5.05% | 295,892 | 14,976 | 5.07% |
Installment | 90,787 | 6,470 | 7.13% | 78,524 | 5,805 | 7.39% | 65,870 | 4,981 | 7.56% |
Loans held for investment4 | 604,261 | 32,623 | 5.40% | 567,348 | 29,948 | 5.28% | 532,034 | 28,087 | 5.28% |
Loans held for sale | 37,008 | 1,112 | 3.00% | 68,438 | 1,924 | 2.81% | 40,450 | 1,099 | 2.72% |
Investment securities3 | |||||||||
Fully taxable | 10,886 | 338 | 3.10% | 15,714 | 372 | 2.37% | 17,372 | 327 | 1.88% |
Partially taxable | 125 | - | - | 125 | - | - | 125 | - | - |
Total investment securities | 11,011 | 338 | 3.07% | 15,839 | 372 | 2.37% | 17,497 | 327 | 1.88% |
Interest bearing deposits in banks | 1,512 | 10 | .66% | 727 | 3 | .41% | 1,223 | - | - |
Federal funds sold | 15,475 | 156 | 1.01% | 7,195 | 35 | .49% | 9,310 | 21 | .23% |
Total Earning Assets | 669,267 | 34,239 | 5.12% | 659,547 | 32,282 | 4.89% | 600,514 | 29,534 | 4.92% |
Allowance for loan losses | (6,793) | (8,162) | (8,933) | ||||||
Nonearning assets | 81,552 | 63,205 | 52,378 | ||||||
Total Assets | $744,026 | $714,590 | $643,959 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Deposits | |||||||||
Demand –interest bearing | $121,095 | $538 | .44% | $113,525 | $499 | .44% | $112,334 | $539 | .48% |
Savings | 114,489 | 516 | .45% | 100,298 | 441 | .44% | 76,491 | 212 | .28% |
Time deposits | 159,415 | 1,634 | 1.02% | 160,221 | 1,440 | .90% | 171,829 | 1,402 | .82% |
Total interest bearing deposits | 394,999 | 2,688 | .68% | 374,044 | 2,380 | .64% | 360,654 | 2,153 | .60% |
Short-term debt | 20,398 | 63 | .31% | 37,716 | 55 | .15% | 32,017 | 69 | .22% |
Long-term debt | 53,004 | 1,146 | 2.16% | 56,253 | 1,164 | 2.07% | 31,856 | 654 | 2.05% |
Total interest bearing liabilities | 468,401 | 3,897 | .83% | 468,013 | 3,599 | .77% | 424,527 | 2,876 | .68% |
Noninterest bearing deposits | 153,640 | 141,180 | 125,665 | ||||||
Other liabilities | 31,936 | 19,824 | 13,318 | ||||||
Total liabilities | 653,977 | 629,017 | 563,510 | ||||||
Stockholders’ equity | 90,049 | 85,572 | 80,449 | ||||||
Total liabilities and stockholders’ equity | $744,026 | $714,590 | $643,959 | ||||||
Net interest earnings | $30,342 | $28,683 | $26,658 | ||||||
Net yield on interest earning assets (NIM) | 4.53% | �� 4.34% | 4.44% | ||||||
2015 Compared to 2014 | 2014 Compared to 2013 | 2017 Compared to 2016 | 2016 Compared to 2015 | |||||||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||||||||
Due to Change | Increase | Due to Change | Increase | Due to Change | Increase | Due to Change | Increase | |||||||||||||||||||||||
in Average: | Or | in Average: | or | in Average: | Or | in Average: | or | |||||||||||||||||||||||
Volume | Rate | (Decrease) | Volume | Rate | (Decrease) | Volume | Rate | (Decrease) | Volume | Rate | (Decrease) | |||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||
Loans held for investment | $ | 1,888 | $ | (140 | ) | $ | 1,748 | $ | 1,303 | $ | (150 | ) | $ | 1,153 | $1,949 | $726 | $2,675 | $1,865 | $(4) | $1,861 | ||||||||||
Loans held for sale | 1,079 | (292 | ) | 787 | (372 | ) | 36 | (336 | ) | (884) | 72 | (812) | 761 | 64 | 825 | |||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||
Taxable | 61 | 37 | 98 | 28 | (17 | ) | 11 | |||||||||||||||||||||||
Fully taxable | (114) | 80 | (34) | (31) | 76 | 45 | ||||||||||||||||||||||||
Partially taxable | - | - | - | - | - | - | - | |||||||||||||||||||||||
Tax exempt | - | - | - | - | - | - | ||||||||||||||||||||||||
Interest bearing deposits in banks | - | - | - | (1 | ) | (3 | ) | (4 | ) | 3 | 4 | 7 | - | 3 | ||||||||||||||||
Federal funds sold | (24 | ) | 1 | (23 | ) | (5 | ) | (1 | ) | (6 | ) | 40 | 81 | 121 | (5) | 19 | 14 | |||||||||||||
Total Interest Income | 3,004 | (394 | ) | 2,610 | 953 | (135 | ) | 818 | 994 | 963 | 1,957 | 2,590 | 158 | 2,748 | ||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||
Demand | (29 | ) | (96 | ) | (125 | ) | (20 | ) | (108 | ) | (128 | ) | ||||||||||||||||||
Demand - interest bearing | 33 | 6 | 39 | 6 | (46) | (40) | ||||||||||||||||||||||||
Savings | 32 | 58 | 90 | 18 | (15 | ) | 3 | 62 | 13 | 75 | 67 | 162 | 229 | |||||||||||||||||
Time deposits | (210 | ) | (92 | ) | (302 | ) | (33 | ) | (594 | ) | (627 | ) | (7) | 201 | 194 | (95) | 133 | 38 | ||||||||||||
Short-term debt | 65 | (5 | ) | 60 | (9 | ) | (6 | ) | (15 | ) | (25) | 33 | 8 | 13 | (27) | (14) | ||||||||||||||
Long-term debt | 553 | (1,048 | ) | (495 | ) | (613 | ) | 255 | (358 | ) | (67) | 49 | (18) | 500 | 10 | 510 | ||||||||||||||
Total Interest Expense | 411 | (1,183 | ) | (772 | ) | (657 | ) | (468 | ) | (1,125 | ) | (4) | 302 | 298 | 491 | 232 | 723 | |||||||||||||
Net Interest Income | $ | 2,593 | $ | 789 | $ | 3,382 | $ | 1 ,610 | $ | 333 | $ | 1,943 | $998 | $661 | $1,659 | $2,099 | $(74) | $2,025 |
GAAP Financial Measurements: (Dollars in thousands). | 2015 | 2014 | 2013 | 2017 | 2016 | 2015 | |||||||||
Interest Income – Loans | $ | 29,029 | $ | 26,522 | $ | 25,718 | $33,591 | $31,740 | $29,056 | ||||||
Interest Income - Securities and Other Interest-Earnings Assets | 324 | 249 | 248 | 504 | 410 | 348 | |||||||||
Interest Expense – Deposits | 2,153 | 2,490 | 3,242 | 2,688 | 2,380 | 2,153 | |||||||||
Interest Expense - Other Borrowings | 723 | 1,158 | 1,531 | 1,209 | 1,219 | 723 | |||||||||
Total Net Interest Income | 26,477 | 23,123 | 21,193 | 30,198 | 28,551 | 26,528 | |||||||||
Non-GAAP Financial Measurements: | |||||||||||||||
Add: Tax Benefit on Tax-Exempt Interest Income – Loans | 130 | 102 | 89 | 144 | 132 | 130 | |||||||||
Add: Tax Benefit on Tax-Exempt Interest Income - Securities and Other Interest-Earnings Assets | - | - | - | - | |||||||||||
Total Tax Benefit on Tax-Exempt Interest Income | 130 | 102 | 89 | 144 | 132 | 130 | |||||||||
Tax-Equivalent Net Interest Income | $ | 26,607 | $ | 23,225 | $ | 21,282 | $30,342 | $28,683 | $26,658 |
(Dollars in thousands) | 2015 | 2014 | 2013 | 2017 | 2016 | 2015 | |||||||||
Available for Sale1 | |||||||||||||||
U.S. Treasury, Agency and Government Sponsored Enterprises (GSE) | $ | 12,095 | $ | 12,058 | $ | 29,065 | |||||||||
Mortgage-backed2 | 817 | 1,022 | 1,201 | ||||||||||||
Marketable equity securities | 135 | 135 | - | ||||||||||||
U.S. Treasury and Agency | $27,978 | $24,014 | $12,095 | ||||||||||||
Mortgage-backed obligations of federal agencies2 | 502 | 634 | 817 | ||||||||||||
Equity securities | 135 | ||||||||||||||
Total | 13,047 | 13,215 | 30,266 | 28,615 | 24,783 | 13,047 | |||||||||
Held to Maturity | |||||||||||||||
U.S. Treasury and Agency | 125 | 125 | 106 | 125 | |||||||||||
Total | 125 | 125 | 106 | 125 | |||||||||||
Other Equity Investments | 12,157 | 8,965 | 8,114 | 12,503 | 14,567 | 12,157 | |||||||||
Total Securities | $ | 25,329 | $ | 22,305 | $ | c38,486 | $41,243 | $39,475 | $25,329 |
Less | One to | Five to | Over | Less | One to | Five to | Over | |||||||||||||||||||||||||||||||||||||||||||
Than one Year | Five Years | Ten Years | Ten Years | Than one Year | Five Years | Ten Years | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Total | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Total | Yield | ||||||||||||||||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury, Agency & GSE | $ | 4,075 | .99 | % | $ | 8,020 | .78 | % | $ | - | $ | - | $ | 12,095 | .85 | % | ||||||||||||||||||||||||||||||||||
Mortgage-backed | 817 | 2.35 | % | 817 | 2.35 | % | ||||||||||||||||||||||||||||||||||||||||||||
Marketable equities | - | - | - | 135 | 135 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury & Agency | $19,998 | 1.05% | $7,980 | 2.06% | $- | $- | $27,978 | 1.34% | ||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed obligations of federal agencies | 502 | 2.41% | - | 502 | 2.41% | |||||||||||||||||||||||||||||||||||||||||||||
Equity securities | - | - | - | 135 | 135 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,075 | .99 | % | $ | 8,020 | .78 | % | $ | - | $ | 952 | 2.29 | % | $ | 13,047 | .94 | % | $19,978 | 1.05% | $7,980 | 2.06% | $502 | 2.41% | $135 | $28,615 | 1.36% | |||||||||||||||||||||||
Debt Securities Held to Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury & Agency | $ | 125 | .28 | % | $ | 125 | .28 | % | $125 | .75% | $125 | .75% | ||||||||||||||||||||||||||||||||||||||
Total | $ | 125 | .28 | % | $ | 125 | .28 | % | $125 | .75% | $125 | .75% |
December 31 | December 31 | ||||||||||||||||||||||||
(Dollars in thousands) | 2015 | 2014 | 2013 | 2012 | 2011 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Real estate – mortgage | $ | 232,321 | $ | 223,824 | $ | 212,630 | $ | 204,812 | $ | 193,280 | $250,891 | $238,631 | $232,321 | $223,824 | $212,630 | ||||||||||
Real estate – construction | 69,759 | 67,180 | 68,512 | 71,251 | 72,224 | 71,620 | 76,172 | 69,759 | 67,180 | 68,512 | |||||||||||||||
Consumer installment | 62,239 | 49,615 | 30,643 | 15,753 | 13,015 | 81,458 | 72,048 | 62,239 | 49,615 | 30,643 | |||||||||||||||
Commercial | 153,691 | 147,599 | 135,835 | 147,089 | 141,014 | 182,360 | 178,392 | 153,691 | 147,599 | 135,835 | |||||||||||||||
Agricultural | 15,672 | 15,374 | 16,265 | 14,099 | 15,985 | 17,064 | 15,876 | 15,672 | 15,374 | 16,265 | |||||||||||||||
Multi-family residential | 7,559 | 11,775 | 11,797 | 9,357 | 13,157 | 10,298 | 7,605 | 7,559 | 11,775 | 11,797 | |||||||||||||||
Credit cards | 2,745 | 2,705 | 2,680 | 2,788 | 2,812 | 2,939 | 2,822 | 2,745 | 2,705 | 2,680 | |||||||||||||||
Other | 67 | 130 | 91 | 670 | 83 | 344 | 90 | 67 | 130 | 91 | |||||||||||||||
Total Loans | $ | 544,053 | $ | 518,202 | $ | 478,453 | $ | 465,819 | $ | 451,570 | $616,974 | $591,636 | $544,053 | $518,202 | $478,453 |
Less Than | 1-5 | Over | ||||||||||||||
(Dollars in thousands) | 1 Year | Years | 5 Years | Total | ||||||||||||
Commercial and | ||||||||||||||||
agricultural loans | $ | 42,132 | $ | 113,729 | $ | 13,503 | $ | 169,364 | ||||||||
Multi-family residential | 2,078 | 4,883 | 597 | 7,558 | ||||||||||||
Real Estate – mortgage | 84,888 | 147,124 | 309 | 232,321 | ||||||||||||
Real Estate – construction | 53,860 | 15,479 | 420 | 69,759 | ||||||||||||
Consumer – installment/other | 7,519 | 45,811 | 11,721 | 65,051 | ||||||||||||
Total | $ | 190,477 | $ | 327,026 | $ | 26,550 | $ | 544,053 | ||||||||
Loans with predetermined rates | $ | 28,667 | $ | 60,484 | $ | 15,062 | $ | 104,213 | ||||||||
Loans with variable or | ||||||||||||||||
adjustable rates | 161,810 | 266,542 | 11,488 | 439,840 | ||||||||||||
Total | $ | 190,477 | $ | 327,026 | $ | 26,550 | $ | 544,053 |
Less Than | 1-5 | Over | ||
(Dollars in thousands) | 1 Year | Years | 5 Years | Total |
Commercial and | ||||
agricultural loans | $66,586 | $106,048 | $26,790 | $199,424 |
Multi-family residential | 4,628 | 5,173 | 497 | 10,298 |
Real Estate – mortgage | 104,699 | 141,572 | 4,620 | 250,891 |
Real Estate – construction | 50,857 | 18,637 | 2,126 | 71,620 |
Consumer – installment/credit cards/other | 9,027 | 61,600 | 14,114 | 84,741 |
Total | $235,797 | $333,030 | $48,147 | $616,974 |
Loans with predetermined rates | $28,101 | $79,748 | $30,378 | $138,227 |
Loans with variable or | ||||
adjustable rates | 207,696 | 253,282 | 17,769 | 478,747 |
Total | $235,797 | $333,030 | $48,147 | $616,974 |
(Dollars in thousands) | 2015 | 2014 | 2013 | 2012 | 2011 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Nonaccrual Loans: | |||||||||||||||||||||||||
Real Estate - 2011 includes $1,040 of restructured loans | $ | 5,698 | $ | 5,481 | $ | 9,963 | $ | 9,611 | $ | 7,671 | |||||||||||||||
Commercial - 2011 includes $309 of restructured loans | 109 | 1,179 | 1,890 | 2,914 | 5,888 | ||||||||||||||||||||
Real Estate | $5,628 | $4,204 | $5,698 | $5,481 | $9,963 | ||||||||||||||||||||
Commercial | 599 | 70 | 109 | 1,179 | 1,890 | ||||||||||||||||||||
Home Equity | 40 | 153 | 402 | 740 | 266 | 451 | 311 | 40 | 153 | 402 | |||||||||||||||
Other | 108 | 161 | - | 121 | 39 | 226 | 178 | 108 | 161 | - | |||||||||||||||
Loans past due 90 days or more: | |||||||||||||||||||||||||
Real Estate | 272 | 0 | 246 | - | 646 | 143 | 81 | 272 | 0 | 246 | |||||||||||||||
Commercial | 25 | 0 | 4 | - | - | - | 25 | 0 | 4 | ||||||||||||||||
Home Equity | 107 | 0 | 61 | - | 260 | - | 107 | 0 | 61 | ||||||||||||||||
Other | 167 | 1 | 16 | - | 6 | 55 | 26 | 67 | 1 | 16 | |||||||||||||||
Total Nonperforming loans | $ | 6,526 | $ | 6,975 | $ | 12,582 | $ | 13,386 | $ | 14,776 | $7,102 | $4,870 | $6,526 | $6,975 | $12,582 | ||||||||||
Restructured Loans current and performing: | |||||||||||||||||||||||||
Real Estate | 8,713 | 3,913 | 7,484 | 6,572 | 4,335 | 7,710 | 8,641 | 8,713 | 3,913 | 7,484 | |||||||||||||||
Commercial | 1,463 | 518 | 3,989 | 3,753 | 1,292 | - | 1,121 | 1,463 | 518 | 3,989 | |||||||||||||||
Home Equity | 1,414 | 290 | 727 | 450 | 451 | - | 1,414 | 290 | 727 | ||||||||||||||||
Other | 91 | 22 | - | - | - | 78 | 76 | 91 | 22 | - | |||||||||||||||
Nonperforming loans as a percentage of loans held for investment | 1.20 | % | 1.35 | % | 2.63 | % | 2.87 | % | 3.27 | % | 1.15% | .82% | 1.20% | 1.35% | 2.63% | ||||||||||
Net Charge Offs to Total Loans Held for Investment | 0.04 | % | 0.33 | % | 0.78 | % | 0.64 | % | 0.63 | % | .24% | .21% | .04% | .33% | .78% | ||||||||||
Allowance for loan and lease losses to nonperforming loans | 134.55 | % | 125.09 | % | 65.04 | % | 60.91 | % | 46.95 | % | 85.10% | 154.89% | 134.55% | 125.09% | 65.04% |
(Dollars in thousands) | 2015 | 2014 | 2013 | 2012 | 2011 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Balance at beginning of period | $ | 8,725 | $ | 8,184 | $ | 8,154 | $ | 6,937 | $ | 5,786 | $7,543 | $8,781 | $8,725 | $8,184 | $8,154 | ||||||||||
Provision charged to expenses | 300 | 2,250 | 3,775 | 4,200 | 4,000 | - | 300 | 2,250 | 3,775 | ||||||||||||||||
Loan losses: | |||||||||||||||||||||||||
Construction/land development | 156 | 1,611 | 2,127 | 1,480 | 1,263 | 620 | 356 | 156 | 1,611 | 2,127 | |||||||||||||||
Farmland | - | - | - | - | - | - | |||||||||||||||||||
Real Estate | 25 | 208 | 173 | 482 | 474 | - | 23 | 25 | 208 | 173 | |||||||||||||||
Multi-family | - | - | - | - | - | - | |||||||||||||||||||
Commercial Real Estate | - | - | 201 | 424 | 381 | - | 19 | - | 201 | ||||||||||||||||
Home Equity – closed end | 26 | - | 159 | 69 | 222 | 7 | 8 | 26 | - | 159 | |||||||||||||||
Home Equity – open end | 51 | 80 | 68 | - | 83 | 26 | 370 | 51 | 80 | 68 | |||||||||||||||
Commercial & Industrial – Non Real Estate | - | 385 | 986 | 776 | 423 | 179 | 293 | - | 385 | 986 | |||||||||||||||
Consumer | 32 | 33 | 173 | 45 | 90 | 136 | 37 | 32 | 33 | 173 | |||||||||||||||
Dealer Finance | 251 | 107 | 17 | - | - | 1,806 | 1,081 | 251 | 107 | 17 | |||||||||||||||
Credit Cards | 60 | 46 | 121 | 71 | 106 | 98 | 74 | 60 | 46 | 121 | |||||||||||||||
Total loan losses | 601 | 2,470 | 4,025 | 3,347 | 3,042 | 2,872 | 2,261 | 601 | 2,470 | 4,025 | |||||||||||||||
Recoveries: | |||||||||||||||||||||||||
Construction/land development | 85 | 223 | 40 | 192 | - | - | 7 | 85 | 223 | 40 | |||||||||||||||
Farmland | - | - | - | 3 | - | - | |||||||||||||||||||
Real Estate | 37 | - | - | - | 8 | 2 | 4 | 37 | - | ||||||||||||||||
Multi-family | - | - | - | - | 48 | - | |||||||||||||||||||
Commercial Real Estate | 65 | 108 | 42 | 48 | 16 | 13 | 135 | 65 | 108 | 42 | |||||||||||||||
Home Equity – closed end | 6 | - | - | - | 3 | 25 | - | 6 | - | ||||||||||||||||
Home Equity – open end | - | - | 29 | - | 27 | 53 | 120 | - | 29 | ||||||||||||||||
Commercial & Industrial – Non Real Estate | 62 | 356 | 127 | 62 | 24 | 72 | 267 | 62 | 356 | 127 | |||||||||||||||
Consumer | 32 | 33 | 14 | 27 | 42 | 28 | 19 | 32 | 33 | 14 | |||||||||||||||
Dealer Finance | 24 | 6 | - | - | - | 1,143 | 417 | 24 | 6 | - | |||||||||||||||
Credit Cards | 46 | 35 | 28 | 32 | 25 | 37 | 54 | 46 | 35 | 28 | |||||||||||||||
Total recoveries | 357 | 761 | 280 | 364 | 193 | 1,373 | 1,023 | 357 | 761 | 280 | |||||||||||||||
Net loan losses | (244 | ) | (1,709 | ) | (3,745 | ) | (2,983 | ) | (2,849 | ) | (1,499) | (1,238) | (244) | (1,709) | (3,745) | ||||||||||
Balance at end of period | $ | 8,781 | $ | 8,725 | $ | 8,184 | $ | 8,154 | $ | 6,937 | $6,044 | $7,543 | $8,781 | $8,725 | $8,184 | ||||||||||
Allowance for loan losses as a | |||||||||||||||||||||||||
percentage of loans | 1.61 | % | 1.68 | % | 1.71 | % | 1.75 | % | 1.54 | % | .98% | 1.27% | 1.61% | 1.68% | 1.71% | ||||||||||
Net loan losses to loans held for investment | .04 | % | .33 | % | .78 | % | .64 | % | .63 | % | .24% | .21% | .04% | .33% | .78% |
ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012* | 2011* | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses: (in thousands) | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category | ||||||||||||||||||||||||||||||
Construction/Land Development | $ | 4,442 | 50.59 | % | $ | 4,738 | 54.30 | % | $ | 4,007 | 45.93 | % | $ | 2,771 | 33.86 | % | $ | - | - | |||||||||||||||||||||
Real Estate | 806 | 9.18 | % | 623 | 7.14 | % | 400 | 4.58 | % | 924 | 11.29 | % | - | - | ||||||||||||||||||||||||||
Commercial, Financial and Agricultural | 1,666 | 18.97 | % | 1,337 | 15.33 | % | 2,239 | 25.66 | % | 3,187 | 38.94 | % | 2,984 | 36.60 | % | |||||||||||||||||||||||||
Consumer | 1,059 | 12.06 | % | 1,685 | 19.31 | % | 905 | 10.37 | % | 253 | 3.09 | % | 298 | 3.65 | % | |||||||||||||||||||||||||
Home Equity | 808 | 9.20 | % | 342 | 3.92 | % | 633 | 7.26 | % | 1,019 | 12.45 | % | 920 | 11.28 | % | |||||||||||||||||||||||||
Total | $ | 8,781 | 100.00 | % | $ | 8,725 | 100.00 | % | $ | 8,184 | 93.80 | % | $ | 8,154 | 99.63 | % | $ | 6,937 | 85.07 | % | ||||||||||||||||||||
* Allocation detail for Construction/Land Development verses Real Estate is not readily available. |
ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES | ||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||
Allowance for loan losses: (dollars in thousands) | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category | Balance | Percentage of Loans in Each Category |
Construction/Land Development | $2,547 | 42.14% | $3,381 | 44.82% | $4,442 | 50.59% | $4,738 | 54.30% | $4,007 | 48.96% |
Real Estate | 719 | 11.90% | 843 | 11.18% | 806 | 9.18% | 623 | 7.14% | 400 | 4.89% |
Commercial, Financial and Agricultural | 863 | 14.28% | 1,348 | 17.88% | 1,666 | 18.97% | 1,337 | 15.33% | 2,239 | 27.36% |
Consumer | 1,640 | 27.13% | 1,426 | 18.90% | 1,059 | 12.06% | 1,685 | 19.31% | 905 | 11.06% |
Home Equity | 275 | 4.55% | 545 | 7.22% | 808 | 9.20% | 342 | 3.92% | 633 | 7.73% |
Total | $6,044 | 100.00% | $7,543 | 100.00% | $8,781 | 100.00% | $8,725 | 100.00% | $8,184 | 100.00% |
December 31, | ||||||||||||||||||||||||||||||
December 31, | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
2015 | 2014 | 2013 | Average Balance | Rate | Average Balance | Rate | Average Balance | Rate | ||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||||||||
Noninterest-bearing | $ | 125,665 | $ | 107,647 | $ | 90,170 | $153,640 | $141,180 | $125,665 | |||||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||||||||||||
Interest Checking | $ | 112,334 | .48 | % | $ | 117,396 | .57 | % | $ | 120,482 | .66 | % | $121,095 | .44% | $113,525 | .44% | $112,334 | .48% | ||||||||||||
Savings Accounts | 76,491 | .28 | % | 60,460 | .20 | % | 52,714 | .23 | % | 114,489 | .45% | 100,298 | .44% | 76,491 | .28% | |||||||||||||||
Time Deposits: | ||||||||||||||||||||||||||||||
CDARS | 11,247 | .18 | % | 19,771 | .21 | % | 8,581 | .53 | % | 1,247 | .56% | 1,253 | .88% | 11,247 | .18% | |||||||||||||||
$100,000 or more | 66,719 | .55 | % | 74,743 | .61 | % | 69,130 | .87 | % | |||||||||||||||||||||
Less than $100,000 | 93,863 | 1.08 | % | 101,419 | 1.19 | % | 121,075 | 1.39 | % | |||||||||||||||||||||
Total Interest-bearing | 360,654 | .60 | % | 373,789 | .67 | % | 371,982 | .87 | % | |||||||||||||||||||||
All other | 158,168 | 1.03% | 158,968 | .90% | 160,582 | .86% | ||||||||||||||||||||||||
Total interest-bearing | 394,999 | .68% | 374,044 | .64% | 360,654 | .60% | ||||||||||||||||||||||||
Total deposits | $ | 486,319 | .44 | % | $ | 481,436 | .52 | % | $ | 462,152 | .70 | % | $548,639 | .49% | $515,224 | .46% | $486,319 | .44% |
(Actual Dollars in thousands) | 2015 | 2014 | ||||||
Less than 3 months | $ | 5,238 | $ | 32,378 | ||||
3 to 6 months | 12,478 | 6,915 | ||||||
6 to 12 months | 8,008 | 7,439 | ||||||
1 year to 5 years | 27,901 | 33,080 | ||||||
Total | $ | 53,625 | $ | 79,812 |
(Actual Dollars in thousands) | 2017 | 2016 |
Less than 3 months | $4,392 | $2,379 |
3 to 6 months | 7,212 | 4,332 |
6 to 12 months | 11,410 | 7,624 |
1 year to 5 years | 37,606 | 36,534 |
Total | $60,620 | $50,869 |
December 31, 2015 | December 31, 2017 | ||||||||||||||||||||||||
Less than | One Year Through | Three Years Through | More than | Less than | One Year Through | Three Years Through | More than | ||||||||||||||||||
One Year | Three Years | Five Years | Five Years | Total | One Year | Three Years | Five Years | Total | |||||||||||||||||
Securities sold under agreements to repurchase | $ | 3,995 | $ | - | $ | - | $ | - | $ | 3,995 | |||||||||||||||
Federal funds purchased | $5,296 | $- | $5,296 | ||||||||||||||||||||||
FHLB Short term advances | 20,000 | - | - | - | 20,000 | 20,000 | - | 20,000 | |||||||||||||||||
Federal Funds Purchased | 959 | - | - | - | 959 | ||||||||||||||||||||
FHLB long term advances | 3,929 | 12,857 | 20,357 | 11,018 | 48,161 | 9,429 | 21,357 | 8,643 | 10,125 | 49,554 | |||||||||||||||
Subordinated Debt | - | - | - | - | - | ||||||||||||||||||||
Total | $ | 28,883 | $ | 12,857 | $ | 20,357 | $ | 11,018 | $ | 73,115 | $34,725 | $21,357 | $8,643 | $10,125 | $74,850 |
1-90 | 91-365 | 1-5 | Over 5 | Not | ||||||||||||||||||||
(Dollars in thousands) | Days | Days | Years | Years | Classified | Total | ||||||||||||||||||
Rate Sensitive Assets: | ||||||||||||||||||||||||
Loans held for investment | $ | 122,425 | $ | 65,307 | $ | 327,026 | $ | 26,550 | $ | - | $ | 541,308 | ||||||||||||
Loans held for sale | 57,806 | - | - | - | - | 57,806 | ||||||||||||||||||
Federal funds sold | - | - | - | - | - | - | ||||||||||||||||||
Investment securities | 125 | 4,075 | 8,020 | 817 | 135 | 13,172 | ||||||||||||||||||
Credit Cards | 2,745 | - | - | - | - | 2,745 | ||||||||||||||||||
Interest bearing bank deposits | 1,596 | - | - | - | - | 1,596 | ||||||||||||||||||
Total | 184,697 | 69,382 | 335,046 | 27,367 | 135 | 616,627 | ||||||||||||||||||
Rate Sensitive Liabilities: | ||||||||||||||||||||||||
Interest bearing demand deposits | - | 29,783 | 62,379 | 16,298 | - | 108,460 | ||||||||||||||||||
Savings deposits | - | 18,076 | 54,230 | 18,077 | - | 90,383 | ||||||||||||||||||
Certificates of deposit $100,000 and over | 5,239 | 20,486 | 27,900 | - | - | 53,625 | ||||||||||||||||||
Other certificates of deposit | 14,683 | 40,827 | 51,905 | - | - | 107,415 | ||||||||||||||||||
Total Deposits | 19,922 | 109,172 | 196,414 | 34,375 | - | 359,883 | ||||||||||||||||||
Short-term debt | 24,954 | - | - | - | - | 24,954 | ||||||||||||||||||
Long-term debt | 982 | 2,947 | 33,214 | 11,018 | - | 48,161 | ||||||||||||||||||
Total | 45,858 | 112,119 | 229,628 | 45,393 | - | 432,998 | ||||||||||||||||||
Discrete Gap | 138,839 | (42,737 | ) | 105,418 | (18,026 | ) | 135 | 183,629 | ||||||||||||||||
Cumulative Gap | 138,839 | 96,102 | 201,520 | 183,494 | 183,629 | |||||||||||||||||||
As a % of Earning Assets | 22.52 | % | 15.59 | % | 32.68 | % | 29.76 | % | 29.78 | % |
1-90 | 91-365 | 1-5 | Over 5 | Not | ||
(Dollars in thousands) | Days | Days | Years | Years | Classified | Total |
Rate Sensitive Assets: | ||||||
Loans held for investment | $136,692 | $96,166 | $333,030 | $48,147 | $- | $614,035 |
Loans held for sale | 39,775 | - | - | - | - | 39,775 |
Federal funds sold | - | - | - | - | - | - |
Investment securities | 20,123 | 7,980 | - | 502 | 135 | 28,740 |
Credit cards | 2,939 | - | - | - | - | 2,939 |
Interest bearing bank deposits | 1,285 | - | - | - | - | 1,285 |
Total | 200,814 | 104,146 | 333,030 | 48,649 | 135 | 686,774 |
Rate Sensitive Liabilities: | ||||||
Interest bearing demand deposits | - | 32,473 | 69,810 | 18,668 | - | 120,951 |
Savings deposits | - | 24,144 | 72,434 | 24,145 | - | 120,723 |
Certificates of deposit $100,000 and over | 4,192 | 17,223 | 39,205 | - | - | 60,620 |
Other certificates of deposit | 13,313 | 32,095 | 59,242 | - | - | 104,650 |
Total Deposits | 17,505 | 105,935 | 240,691 | 42,813 | - | 406,944 |
Short-term debt | 25,296 | - | - | - | - | 25,296 |
Long-term debt | 1,192 | 8,322 | 30,094 | 10,125 | - | 49,733 |
Total | 43,993 | 114,257 | 270,785 | 52,938 | - | 481,973 |
Discrete Gap | 156,821 | (10,111) | 62,245 | (4,289) | 135 | 204,801 |
Cumulative Gap | 156,821 | 146,710 | 208,955 | 204,666 | 204,801 | |
As a % of Earning Assets | 22.83% | 21.36% | 30.43% | 29.80% | 29.82% |
2015 | 2017 | ||||||||||||||||||||||||
(Dollars in thousands) | Fourth | Third | Second | First | Total | Fourth | Third | Second | First | Total | |||||||||||||||
Interest and Dividend Income | $ | 7,518 | $ | 7,451 | $ | 7,373 | $ | 7,011 | $ | 29,353 | $9,141 | $8,688 | $8,256 | $8,010 | $34,095 | ||||||||||
Interest Expense | 771 | 722 | 698 | 685 | 2,876 | 1,036 | 1,030 | 925 | 906 | 3,897 | |||||||||||||||
Net Interest Income | 6,747 | 6,729 | 6,675 | 6,326 | 26,477 | 8,105 | 7,658 | 7,331 | 7,104 | 30,198 | |||||||||||||||
Provision for Loan Losses | - | - | - | 300 | 300 | - | - | - | |||||||||||||||||
Net Interest Income after Provision, For Loan Losses | 6,747 | 6,729 | 6,675 | 6,026 | 26,177 | ||||||||||||||||||||
Net Interest Income after Provision | |||||||||||||||||||||||||
for Loan Losses | 8,105 | 7,658 | 7,331 | 7,104 | 30,198 | ||||||||||||||||||||
Non-Interest Income | 813 | 797 | 783 | 719 | 112 | 1,820 | 2,145 | 1,882 | 2,045 | 7,892 | |||||||||||||||
Non-Interest Expense | 4,614 | 4,494 | 4,496 | 4,382 | 17,986 | 6,489 | 6,259 | 6,017 | 5,954 | 24,719 | |||||||||||||||
Income before taxes | 2,946 | 3,032 | 2,962 | 2,363 | 11,303 | ||||||||||||||||||||
Income before income taxes | 3,436 | 3,544 | 3,196 | 3,195 | 13,371 | ||||||||||||||||||||
Income Tax Expense | 766 | 842 | 786 | 492 | 2,886 | 1,698 | 946 | 809 | 877 | 4,330 | |||||||||||||||
Noncontrolling interest (income)/expense | 49 | (48) | (59) | (4) | (31) | ||||||||||||||||||||
Net Income | $ | 2,180 | $ | 2,190 | $ | 2,176 | $ | 1,871 | $ | 8,417 | $1,787 | $2,602 | $2,328 | $2,090 | $9,010 | ||||||||||
Net Income Per Average Common Share | $ | .62 | $ | .63 | $ | .62 | $ | .53 | $ | 2.40 | |||||||||||||||
Net Income Per Average | |||||||||||||||||||||||||
Common Share Basic | $.52 | $.75 | $.68 | $.68 | $2.63 |
2016 | |||||
(Dollars in thousands) | Fourth | Third | Second | First | Total |
Interest and Dividend Income | $8,387 | $8,198 | $7,931 | $7,634 | $32,150 |
Interest Expense | 954 | 969 | 862 | 814 | 3,599 |
Net Interest Income | 7,433 | 7,229 | 7,069 | 6,820 | 28,551 |
Provision for Loan Losses | - | - | - | - | - |
Net Interest Income after Provision | |||||
for Loan Losses | 7,433 | 7,229 | 7,069 | 6,820 | 28,551 |
Non-Interest Income | 2,843 | 1,054 | 986 | 699 | 5,582 |
Non-Interest Expense | 6,806 | 4,962 | 4,772 | 4,732 | 21,272 |
Income before income taxes | 3,470 | 3,321 | 3,283 | 2,787 | 12,861 |
Income Tax Expense | 912 | 655 | 839 | 693 | 3,099 |
Noncontrolling interest | (40) | (64) | (86) | (4) | (194) |
Net Income | $2,518 | $2,602 | $2,358 | $2,090 | $9,568 |
Net Income Per Average | |||||
Common Share Basic | $.74 | $.75 | $.68 | $.60 | $2.77 |
Rate Shift (bp) | Net Income | Net Interest Income | Net Interest Margin | |||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |
300 | 16,084 | 14,583 | 38,622 | 35,480 | 5.71% | 5.21% |
200 | 14,832 | 13,118 | 36,904 | 33,492 | 5.46% | 4.96% |
100 | 13,414 | 11,507 | 34,959 | 31,306 | 5.18% | 4.61% |
(-)100 | 12,291 | 10,458 | 33,418 | 29,883 | 4.96% | 4.41% |
(-)200 | 11,999 | 10,319 | 33,017 | 29,694 | 4.90% | 4.38% |
2014 | ||||||||||||||||||||
(Dollars in thousands) | Fourth | Third | Second | First | Total | |||||||||||||||
Interest and Dividend Income | $ | 6,934 | $ | 6,873 | $ | 6,674 | $ | 6,291 | $ | 26,772 | ||||||||||
Interest Expense | 871 | 908 | 919 | 950 | 3,648 | |||||||||||||||
Net Interest Income | 6,063 | 5,965 | 5,755 | 5,341 | 23,124 | |||||||||||||||
Provision for Loan Losses | - | 750 | 750 | 750 | 2,250 | |||||||||||||||
Net Interest Income after Provision, For Loan Losses | 6,063 | 5,215 | 5,005 | 4,591 | 20,874 | |||||||||||||||
Non-Interest Income | 780 | 789 | 738 | 570 | 2,877 | |||||||||||||||
Non-Interest Expense | 4,194 | 3,923 | 3,801 | 3,738 | 15,656 | |||||||||||||||
Income before taxes | 2,649 | 2,081 | 1,942 | 1,423 | 8,095 | |||||||||||||||
Income Tax Expense | 1,057 | 520 | 446 | 270 | 2,293 | |||||||||||||||
Net Income | $ | 1,592 | $ | 1,561 | $ | 1,496 | $ | 1,153 | $ | 5,802 | ||||||||||
Net Income Per Average Common Share | $ | .43 | $ | .48 | $ | .45 | $ | .46 | $ | 1.82 |
2015 | 2014 | |||||||
Assets | ||||||||
Cash and due from banks (notes 3 and 15) | $ | 6,923,065 | $ | 6,241,016 | ||||
Money market funds | 1,596,382 | 910,527 | ||||||
Federal funds sold | - | 16,051,000 | ||||||
Cash and cash equivalents | 8,519,447 | 23,202,543 | ||||||
Securities: | ||||||||
Held to maturity - fair value of $125,043 and $125,150 in 2015 and 2014, respectively (note 4) | 125,043 | 125,150 | ||||||
Available for sale (note 4) | 13,046,945 | 13,215,112 | ||||||
Other investments (note 4) | 12,157,115 | 8,964,640 | ||||||
Loans held for sale | 57,805,529 | 13,381,941 | ||||||
Loans held for investment (notes 5) | 544,053,477 | 518,201,574 | ||||||
Less: allowance for loan losses (note 6) | (8,781,453 | ) | (8,724,731 | ) | ||||
Net loans held for investment | 535,272,024 | 509,476,843 | ||||||
Other real estate owned (note 9) | 2,127,685 | 3,507,153 | ||||||
Bank premises and equipment, net (note 8) | 7,542,078 | 6,458,254 | ||||||
Interest receivable | 1,708,617 | 1,674,846 | ||||||
Goodwill (note 23) | 2,669,517 | 2,669,517 | ||||||
Bank owned life insurance (note 24) | 13,046,111 | 12,581,210 | ||||||
Other assets | 11,336,735 | 10,050,893 | ||||||
Total Assets | $ | 665,356,846 | $ | 605,308,102 | ||||
Liabilities | ||||||||
Deposits: (note 10) | ||||||||
Noninterest bearing | $ | 134,786,875 | $ | 112,197,722 | ||||
Interest bearing: | ||||||||
Demand | 81,491,760 | 93,693,468 | ||||||
Money market accounts | 26,967,837 | 25,900,061 | ||||||
Savings | 90,383,486 | 64,249,199 | ||||||
Time deposits over $100,000 | 53,624,554 | 79,812,757 | ||||||
All other time deposits | 107,415,244 | 115,651,329 | ||||||
Total deposits | 494,669,756 | 491,504,536 | ||||||
Short-term debt (note 11) | 24,954,051 | 14,358,492 | ||||||
Accrued liabilities | 14,621,913 | 11,771,671 | ||||||
Federal Home Loan Bank debt (note 12) | 48,160,714 | 9,875,000 | ||||||
Total Liabilities | 582,406,434 | 527,509,699 | ||||||
Commitments and contingencies (notes 4 and 16) | ||||||||
Stockholders’ Equity (Note 22) | ||||||||
Preferred Stock $5 par value, 400,000 shares authorized, issued and outstanding for 2015 | 9,425,123 | 9,425,123 | ||||||
Common stock $5 par value, 6,000,000 shares authorized, 3,285,404 and 3,291,766 | ||||||||
shares issued and outstanding at December 31, 2015 and 2014, respectively | 16,427,020 | 16,458,830 | ||||||
Additional paid in capital – common stock | 11,149,104 | 11,259,995 | ||||||
Retained earnings (note 19) | 48,056,300 | 42,554,421 | ||||||
Noncontrolling interest | 572,680 | 426,365 | ||||||
Accumulated other comprehensive loss | (2,679,815 | ) | (2,326,331 | ) | ||||
Total Stockholders' Equity | 82,950,412 | 77,798,403 | ||||||
Total Liabilities and Stockholders' Equity | $ | 665,356,846 | $ | 605,308,102 |
2017 | 2016 | |
Assets | ||
Cash and due from banks | $10,622 | $7,755 |
Money market funds | 1,285 | 674 |
Federal funds sold | - | 7,926 |
Cash and cash equivalents | 11,907 | 16,355 |
Securities: | ||
Held to maturity - fair value of $125 in 2017 and 2016 | 125 | 125 |
Available for sale | 28,615 | 24,783 |
Other investments | 12,503 | 14,567 |
Loans held for sale | 39,775 | 62,735 |
Loans held for investment | 616,974 | 591,636 |
Less: allowance for loan losses | (6,044) | (7,543) |
Net loans held for investment | 610,930 | 584,093 |
Other real estate owned | 1,984 | 2,076 |
Bank premises and equipment, net | 15,894 | 10,340 |
Interest receivable | 2,007 | 1,785 |
Goodwill | 2,881 | 2,670 |
Bank owned life insurance | 13,950 | 13,513 |
Other assets | 12,699 | 11,847 |
Total Assets | $753,270 | $744,889 |
Liabilities | ||
Deposits: | ||
Noninterest bearing | $162,233 | $146,617 |
Interest bearing | 406,944 | 390,468 |
Total deposits | 569,177 | 537,085 |
Short-term debt | 25,296 | 40,000 |
Accrued liabilities | 17,789 | 16,885 |
Long-term debt | 49,733 | 64,237 |
Total Liabilities | 661,995 | 658,207 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Preferred Stock $25 par value, 400,000 shares authorized, 324,150 and 327,350 shares | ||
issued and outstanding at December 31, 2017 and 2016, respectively | 7,529 | 7,609 |
Common stock $5 par value, 6,000,000 shares authorized, 3,255,036 and 3,270,315 | ||
shares issued and outstanding at December 31, 2017 and 2016, respectively | 16,275 | 16,352 |
Additional paid in capital – common stock | 10,225 | 10,684 |
Retained earnings | 60,814 | 54,509 |
Noncontrolling interest in consolidated subsidiaries | 574 | 693 |
Accumulated other comprehensive loss | (4,142) | (3,165) |
Total Stockholders' Equity | 91,275 | 86,682 |
Total Liabilities and Stockholders' Equity | $753,270 | $744,889 |
2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||
Interest and Dividend Income | |||||||||||||||
Interest and fees on loans held for investment | $ | 27,930,151 | $ | 26,210,609 | $ | 25,070,039 | $32,479 | $29,816 | $27,957 | ||||||
Interest from loans held for sale | 1,099,419 | 312,364 | 647,622 | 1,112 | 1,924 | 1,099 | |||||||||
Interest from deposits and federal funds sold | 20,990 | 44,435 | 54,679 | ||||||||||||
Interest from debt securities | 302,117 | 204,649 | 193,244 | ||||||||||||
Total interest and dividend Income | 29,352,677 | 26,772,057 | 25,965,584 | ||||||||||||
Interest from money market funds and federal funds sold | 166 | 38 | 21 | ||||||||||||
Interest from debt securities – taxable | 338 | 372 | 327 | ||||||||||||
Total interest and dividend income | 34,095 | 32,150 | 29,404 | ||||||||||||
Interest Expense | |||||||||||||||
Interest from demand deposits | 539,469 | 663,618 | 791,245 | ||||||||||||
Interest from savings deposits | 212,186 | 121,808 | 119,020 | ||||||||||||
Interest from time deposits over $100,000 | 485,285 | 589,673 | 781,950 | ||||||||||||
Interest from all other time deposits | 916,219 | 1,114,470 | 1,549,273 | ||||||||||||
Total interest on deposits | 2,153,159 | 2,489,569 | 3,241,488 | 2,688 | 2,380 | 2,153 | |||||||||
Interest from short-term debt | 69,179 | 9,437 | 23,956 | 63 | 55 | 69 | |||||||||
Interest from long-term debt | 653,271 | 1,148,716 | 1,507,299 | 1,146 | 1,164 | 654 | |||||||||
Total interest expense | 2,875,609 | 3,647,722 | 4,772,743 | 3,897 | 3,599 | 2,876 | |||||||||
Net Interest Income | 26,477,068 | 23,124,335 | 21,192,841 | 30,198 | 28,551 | 26,528 | |||||||||
Provision for Loan and Lease losses (note 6) | 300,000 | 2,250,000 | 3,775,000 | ||||||||||||
Provision for Loan Losses | - | 300 | |||||||||||||
Net Interest Income After Provision for Loan Losses | 26,177,068 | 20,874,335 | 17,417,841 | 30,198 | 28,551 | 26,228 | |||||||||
Noninterest Income | |||||||||||||||
Service charges on deposit accounts | 963,459 | 1,033,959 | 1,117,910 | 1,360 | 1,174 | 963 | |||||||||
Insurance and other commissions | 1,058,281 | 635,543 | 868,464 | ||||||||||||
Insurance, other commissions and mortgage banking, net | 4,137 | 3,006 | 2,575 | ||||||||||||
Other operating income | 1,401,162 | 1,393,897 | 1,537,397 | 2,109 | 1,657 | 1,401 | |||||||||
Income from bank owned life insurance | 473,098 | 466,936 | 508,658 | 449 | 476 | 473 | |||||||||
Gain on prepayment of long term debt | 504 | - | |||||||||||||
Loss on sale of other investments | (42) | - | |||||||||||||
Low income housing partnership losses | (619,534 | ) | (608,360 | ) | (855,527 | ) | (625) | (731) | (619) | ||||||
Total noninterest income | 3,276,466 | 2,921,975 | 3,176,902 | 7,892 | 5,582 | 4,793 | |||||||||
Noninterest Expenses | |||||||||||||||
Salaries | 7,816,214 | 6,898,400 | 6,524,515 | 11,482 | 9,986 | 9,018 | |||||||||
Employee benefits (note 14) | 2,239,258 | 1,911,250 | 2,146,871 | ||||||||||||
Employee benefits | 3,372 | 2,814 | 2,439 | ||||||||||||
Occupancy expense | 678,799 | 621,855 | 606,935 | 1,035 | 868 | 801 | |||||||||
Equipment expense | 651,113 | 589,919 | 547,948 | 836 | 735 | 715 | |||||||||
FDIC insurance assessment | 587,000 | 690,000 | 704,103 | 190 | 388 | 587 | |||||||||
Other real estate owned expenses | 566,147 | 407,219 | 214,832 | ||||||||||||
Other real estate owned, net | 76 | 86 | 566 | ||||||||||||
Other operating expenses | 5,447,347 | 4,537,269 | 3,974,791 | 7,728 | 6,395 | 5,428 | |||||||||
Total noninterest expenses | 17,985,878 | 15,655,912 | 14,719,995 | 24,719 | 21,272 | 19,554 | |||||||||
Income before income taxes | 11,467,656 | 8,140,398 | 5,874,748 | 13,371 | 12,861 | 11,467 | |||||||||
Income Tax Expense (note 13) | 2,886,072 | 2,293,136 | 1,051,770 | ||||||||||||
Income Tax Expense | 4,330 | 3,099 | 2,886 | ||||||||||||
Consolidated Net Income – F & M Bank Corp. | 8,581,584 | 5,847,262 | 4,822,978 | ||||||||||||
Net Income | 9,041 | 9,762 | 8,581 | ||||||||||||
Net Income attributed to Noncontrolling interest | (164,575 | ) | (45,653 | ) | (107,185 | ) | |||||||||
Net Income-F & M Bank Corp. | $ | 8,417,009 | $ | 5,801,609 | $ | 4,715,793 | |||||||||
Net Income attributable to noncontrolling interests | (31) | (194) | (164) | ||||||||||||
Net Income attributable to F & M Bank Corp. | $9,010 | $9,568 | $8,417 | ||||||||||||
Dividends paid/accumulated on preferred stock | 510,000 | 127,500 | - | 415 | 487 | 510 | |||||||||
Net income available to common stockholders | $ | 7,907,009 | $ | 5,674,109 | $ | 4,715,793 | $8,595 | $9,081 | $7,907 | ||||||
Per Common Share Data | |||||||||||||||
Net income - basic | 2.40 | 1.82 | 1.88 | $2.63 | $2.77 | $2.40 | |||||||||
Net income - diluted | 2.25 | 1.80 | 1.88 | $2.48 | $2.57 | $2.25 | |||||||||
Cash dividends on common stock | .73 | .68 | .68 | $.94 | $.80 | $.73 | |||||||||
Weighted average common shares outstanding – basic | 3,290,812 | 3,119,333 | 2,504,015 | 3,269,713 | 3,282,335 | 3,290,812 | |||||||||
Weighted average common shares outstanding – diluted | 3,735,212 | 3,229,942 | 2,504,015 | 3,631,984 | 3,716,591 | 3,735,212 |
Years Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net Income: | ||||||||||||
Net income – F & M Bank Corp | $ | 8,417,009 | $ | 5,801,609 | $ | 4,715,793 | ||||||
Net income attributable to noncontrolling interest | 164,575 | 45,653 | 107,185 | |||||||||
Total net income | 8,581,584 | 5,847,262 | 4,822,978 | |||||||||
Other comprehensive income (loss): | ||||||||||||
Pension plan adjustment | (537,005 | ) | (2,145,868 | ) | 2,314,274 | |||||||
Tax effect | 182,582 | 729,595 | (786,853 | ) | ||||||||
Pension plan adjustment, net of tax | (354,423 | ) | (1,416,273 | ) | 1,527,421 | |||||||
Unrealized holding gains (losses) | ||||||||||||
on available-for-sale securities | 1,423 | 22,386 | (75,127 | ) | ||||||||
Tax effect | (484 | ) | (7,611 | ) | 25,543 | |||||||
Unrealized holding gain (losses), net of tax | 939 | 14,775 | (49,584 | ) | ||||||||
Other comprehensive income | (353,484 | ) | (1,401,498 | ) | 1,477,837 | |||||||
Total comprehensive income | $ | 8,228,100 | $ | 4,445,764 | $ | 6,300,815 |
Years Ended December 31, | |||
2017 | 2016 | 2015 | |
Net Income | $9,041 | $9,762 | $8,581 |
Other comprehensive income (loss): | |||
Pension plan adjustment | (414) | (738) | (537) |
Tax effect | 141 | 251 | 183 |
Pension plan adjustment, net of tax | (273) | (487) | (354) |
Unrealized holding gains | |||
on available-for-sale securities | (34) | 3 | 2 |
Tax effect | 12 | (1) | (1) |
Unrealized holding gains, net of tax | (22) | 2 | 1 |
Total other comprehensive income (loss) | (295) | (485) | (353) |
Total comprehensive income | $8,746 | $9,277 | $8,228 |
Comprehensive income attributable to noncontrolling interests | $(31) | $(194) | $(164) |
Comprehensive income attributable to F&M Bank Corp. | $8,715 | $9,083 | $8,064 |
Accumulated | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||
Preferred | Common | Additional Paid in | Retained | Noncontrolling | Income | |||||||||||||||||||||||
Stock | Stock | Capital | Earnings | Interest | (Loss) | Total | ||||||||||||||||||||||
Balance December 31, 2012 | $ | - | $ | 12,497,720 | $ | 2,951,967 | $ | 35,974,812 | $ | 362,131 | $ | (2,402,670 | ) | $ | 49,383,960 | |||||||||||||
Net income consolidated | 4,715,793 | 107,185 | 4,822,978 | |||||||||||||||||||||||||
Other comprehensive income (loss) | 1,477,837 | 1,477,837 | ||||||||||||||||||||||||||
Minority Interest Contributed Capital (Distributions) | (51,088 | ) | (51,088 | ) | ||||||||||||||||||||||||
Dividends on common stock | (1,705,881 | ) | (1,705,881 | ) | ||||||||||||||||||||||||
Common stock issued (12,141 shares) | 60,955 | 152,474 | - | - | - | 213,429 | ||||||||||||||||||||||
Balance December 31, 2013 | $ | - | $ | 12,558,675 | $ | 3,104,441 | $ | 38,984,724 | $ | 418,228 | $ | (924,833 | ) | $ | 54,141,235 | |||||||||||||
Net income consolidated | 5,801,609 | 45,653 | 5,847,262 | |||||||||||||||||||||||||
Other comprehensive income (loss) | (1,401,498 | ) | (1,401,498 | ) | ||||||||||||||||||||||||
Minority Interest Contributed Capital (Distributions) | (37,516 | ) | (37,516 | ) | ||||||||||||||||||||||||
Dividends on preferred stock | (127,500 | ) | (127,500 | ) | ||||||||||||||||||||||||
Dividends on common stock | (2,104,412 | ) | (2,104,412 | ) | ||||||||||||||||||||||||
Preferred stock issued (400,000 shares) | 9,425,123 | 9,425,123 | ||||||||||||||||||||||||||
Common Stock issued (780,031 shares) | - | 3,900,155 | 8,155,554 | - | - | - | 12,055,709 | |||||||||||||||||||||
Balance December 31, 2014 | $ | 9,425,123 | $ | 16,458,830 | $ | 11,259,995 | $ | 42,554,421 | $ | 426,365 | $ | (2,326,331 | ) | $ | 77,798,403 | |||||||||||||
Net income consolidated | 8,417,009 | 164,575 | 8,581,584 | |||||||||||||||||||||||||
Other comprehensive income (loss) | (353,484 | ) | (353,484 | ) | ||||||||||||||||||||||||
Minority Interest Distribution | (18,260 | ) | (18,260 | ) | ||||||||||||||||||||||||
Dividends on preferred stock | (510,000 | ) | (510,000 | ) | ||||||||||||||||||||||||
Dividends on common stock | (2,405,130 | ) | (2,405,130 | ) | ||||||||||||||||||||||||
Common stock repurchased (13,277 shares) | (66,390 | ) | (222,729 | ) | (289,119 | ) | ||||||||||||||||||||||
Common Stock issued (6,916 shares) | 34,580 | 111,838 | - | - | - | 146,418 | ||||||||||||||||||||||
Balance December 31, 2015 | $ | 9,425,123 | $ | 16,427,020 | $ | 11,149,104 | $ | 48,056,300 | $ | 572,680 | $ | (2,679,815 | ) | $ | 82,950,412 |
Accumulated | |||||||
Other | |||||||
Comprehensive | |||||||
Preferred | Common | Additional Paid in | Retained | Noncontrolling | Income | ||
Stock | Stock | Capital | Earnings | Interest | (Loss) | Total | |
Balance December 31, 2014 | $9,425 | $16,459 | $11,260 | $42,554 | $426 | $(2,327) | $77,797 |
Net income | 8,417 | 164 | 8,581 | ||||
Other comprehensive loss | (353) | (353) | |||||
Distributions to noncontrolling interest | (17) | (17) | |||||
Dividends on preferred stock ($1.275 per share) | (510) | (510) | |||||
Dividends on common stock ($.73 per share) | (2,405) | (2,405) | |||||
Common stock repurchased (13,277 shares) | (67) | (223) | (290) | ||||
Common stock issued (6,916 shares) | 35 | 112 | - | - | - | 147 | |
Balance December 31, 2015 | $9,425 | $16,427 | $11,149 | $48,056 | $573 | $(2,680) | $82,950 |
Net income | 9,568 | 194 | 9,762 | ||||
Other comprehensive loss | (485) | (485) | |||||
Distributions to noncontrolling interest | (74) | (74) | |||||
Dividends on preferred stock ($1.488 per share) | (487) | (487) | |||||
Dividends on common stock ($.80 per share) | (2,628) | (2,628) | |||||
Common stock repurchased (22,583 shares) | (112) | (466) | (578) | ||||
Common stock issued (7,494 shares) | 37 | 146 | 183 | ||||
Preferred stock repurchased (72,650 shares) | (1,816) | (145) | (1,961) | ||||
Balance, December 31, 2016 | $7,609 | $16,352 | $10,684 | $54,509 | $693 | $(3,165) | $86,682 |
Net income | 9,010 | 31 | 9,041 | ||||
Other comprehensive loss | (295) | (295) | |||||
Distributions to noncontrolling interest | (150) | (150) | |||||
Dividends on preferred stock ($1.28 per share) | (415) | (415) | |||||
Dividends on common stock ($.94 per share) | (2,972) | (2,972) | |||||
Common stock repurchased (21,984 shares) | (110) | (602) | (712) | ||||
Common stock issued (6,705 shares) | 33 | 164 | 197 | ||||
Preferred stock repurchased (3,200 shares) | (80) | (21) | (101) | ||||
Stranded tax effect of Tax Cuts and Jobs Act | 682 | (682) | - | ||||
Balance, December 31, 2017 | $7,529 | $16,275 | $10,225 | $60,814 | $574 | $(4,142) | $91,275 |
2015 | 2014 | 2013 | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 8,417,009 | $ | 5,801,609 | $ | 4,715,793 | ||||||
Adjustments to reconcile net income to net cash | ||||||||||||
provided by (used in) operating activities: | ||||||||||||
Depreciation | 709,237 | 612,116 | 581,625 | |||||||||
Amortization of securities | 147,407 | 76,057 | 45,416 | |||||||||
Sale of loans held for sale originated | 75,364,878 | 56,210,640 | 79,778,381 | |||||||||
Loans held for sale originated | (77,151,936 | ) | (56,044,669 | ) | (71,169,362 | ) | ||||||
Provision for loan losses | 300,000 | 2,250,000 | 3,775,000 | |||||||||
Benefit (expense) for deferred taxes | 340,941 | (515,538 | ) | (568,858 | ) | |||||||
(Increase) decrease in interest receivable | (33,771 | ) | (176,734 | ) | 204,735 | |||||||
Increase in other assets | (457,010 | ) | (1,473,634 | ) | (967,516 | ) | ||||||
Increase in accrued expenses | 1,480,074 | 1,159,913 | 1,731,973 | |||||||||
Amortization of limited partnership investments | 627,326 | 608,360 | 581,737 | |||||||||
Loss on sale and valuation adjustments of other real estate owned | 488,583 | 318,714 | 97,155 | |||||||||
Income from life insurance investment | (473,098 | ) | (466,936 | ) | (508,658 | ) | ||||||
Net Cash Provided by Operating Activities | 9,759,640 | 8,359,898 | 18,297,421 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Decrease in interest bearing bank deposits | - | - | 248,000 | |||||||||
Proceeds from maturities of securities available for sale | 8,242,751 | 27,495,319 | 10,712,508 | |||||||||
Proceeds from maturities of securities held to maturity | - | 106,000 | ||||||||||
Purchases of securities available for sale | (12,040,262 | ) | (11,957,235 | ) | (31,093,384 | ) | ||||||
Purchases of securities held to maturity | - | (125,250 | ) | |||||||||
Net increase in loans held for investment | (25,892,052 | ) | (43,642,033 | ) | (17,149,156 | ) | ||||||
Net (increase) decrease in loans held for sale participations | (42,636,530 | ) | (9,743,487 | ) | 64,793,073 | |||||||
Net purchase of property and equipment | (1,793,061 | ) | (545,313 | ) | (661,621 | ) | ||||||
Proceeds from sale of other real estate owned | 687,756 | 986,373 | 928,897 | |||||||||
Net Cash Provided by (Used in) Investing Activities | (73,431,398 | ) | (37,425,626 | ) | 27,778,317 | |||||||
Cash Flows from Financing Activities | ||||||||||||
Net change in demand and savings deposits | 37,589,508 | 27,894,981 | 15,867,944 | |||||||||
Net change in time deposits | (34,424,288 | ) | (539,689 | ) | (5,514,239 | ) | ||||||
Net change in short-term debt | 10,595,559 | 10,935,414 | (31,174,274 | ) | ||||||||
Dividends paid in cash | (2,915,130 | ) | (2,231,912 | ) | (1,705,881 | ) | ||||||
Proceeds from long-term debt | 40,000,000 | 10,000,000 | - | |||||||||
Proceeds from issuance of preferred stock | - | 6,831,123 | - | |||||||||
Proceeds from issuance of common stock | 146,418 | 12,055,709 | 213,429 | |||||||||
Repurchase of common stock | (289,119 | ) | ||||||||||
Repayments of long-term debt | (1,714,286 | ) | (19,222,000 | ) | (26,214,286 | ) | ||||||
Net Cash Provided by (Used in) Financing Activities | 48,988,662 | 45,723,626 | (48,527,307 | ) | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (14,683,096 | ) | 16,657,898 | (2,451,569 | ) | |||||||
Cash and Cash Equivalents, Beginning of Year | 23,202,543 | 6,544,645 | 8,996,214 | |||||||||
Cash and Cash Equivalents, End of Year | $ | 8,519,447 | $ | 23,202,543 | $ | 6,544,645 | ||||||
Supplemental Disclosure: | ||||||||||||
Cash paid for: | ||||||||||||
Interest expense | $ | 2,854,119 | $ | 3,703,190 | $ | 6,500,592 | ||||||
Income taxes | 1,500,000 | 1,607,000 | 800,000 | |||||||||
Transfers from loans to other real estate owned | 125,000 | 2,914,958 | 1,337,890 | |||||||||
Loans originated for the sale of other real estate owned | (328,129 | ) | (780,097 | ) | (569,245 | ) | ||||||
Conversion of subordinated debt to preferred stock | - | 2,594,000 |
2017 | 2016 | 2015 | |
Cash Flows from Operating Activities | |||
Net income | $9,010 | $9,568 | $8,417 |
Adjustments to reconcile net income to net cash | |||
provided by operating activities: | |||
Depreciation | 930 | 827 | 727 |
Amortization of intangibles | 53 | - | - |
Amortization of securities | - | 109 | 147 |
Proceeds from sale of loans held for sale originated | 67,517 | 73,112 | 77,662 |
Gain on sale of loans held for sale originated | (2,331) | (2,778) | (2,297) |
Loans held for sale originated | (68,647) | (66,779) | (77,152) |
Provision for loan losses | - | - | 300 |
(Expense) benefit for deferred taxes | (222) | 9 | 341 |
(Increase) in interest receivable | (222) | (76) | (34) |
Increase in other assets | (1,693) | (444) | (457) |
Increase in accrued liabilities | 1,498 | 1,690 | 1,480 |
Amortization of limited partnership investments | 625 | 731 | 627 |
Loss on sale of investments | 42 | - | - |
Loss on sale and valuation adjustments of other real estate owned | 44 | 19 | 489 |
Income from life insurance investment | (449) | (476) | (473) |
Net Cash Provided by Operating Activities | 6,155 | 15,512 | 9,777 |
Cash Flows from Investing Activities | |||
Proceeds from maturities of securities available for sale | 86,741 | 32,218 | 8,243 |
Proceeds from sales of other investments | 55 | - | - |
Purchases of securities available for sale and other investments | (89,428) | (47,137) | (12,040) |
Capital improvements to other real estate owned | (2) | (24) | - |
Net increase in loans held for investment | (27, 068) | (49,386) | (25,892) |
Net decrease (increase) in loans held for sale participations | 26 421 | (8,483) | (42,637) |
Net purchase of property and equipment | (6,484) | (3,553) | (1,811) |
Proceeds from sale of other real estate owned | 281 | 623 | 688 |
Net Cash Used in Investing Activities | (9,484) | (75,742) | (73,449) |
Cash Flows from Financing Activities | |||
Net change in deposits | 32,092 | 42,415 | 3,165 |
Net change in short-term debt | (14,704) | 15,046 | 10,596 |
Dividends paid in cash | (3,387) | (3,115) | (2,915) |
Proceeds from long-term debt | - | 20,000 | 40,000 |
Proceeds from issuance of common stock | 197 | 183 | 147 |
Repurchase of preferred stock | (712) | (1,961) | - |
Repurchase of common stock | (101) | (578) | (290) |
Repayments of long-term debt | (14,504) | (3,924) | (1,714) |
Net Cash (Used in) Provided by Financing Activities | (1,119) | 68,066 | 48,989 |
Net (Decrease) Increase in Cash and Cash Equivalents | (4,448) | 7,836) | (14,683) |
Cash and Cash Equivalents, Beginning of Year | 16,355 | 8,519 | 23,202 |
Cash and Cash Equivalents, End of Year | $11,907 | $16,355 | $8,519 |
Supplemental Cash Flow information: | |||
Cash paid for: | |||
Interest | $3,866 | $3,573 | $2,854 |
Income taxes | 4,460 | 2,300 | 1,500 |
Supplemental non-cash disclosures: | |||
Transfers from loans to other real estate owned | 231 | 566 | 125 |
Loans originated for the sale of other real estate owned | - | - | (328) |
Unrealized gain (loss) on securities available for sale | (26) | 2 | 1 |
Minimum pension liability adjustment | (952) | (487) | (354) |
Premises and Improvements | 10 - 40 years | |
Furniture and | 5 - 20 years |
For the year ended | For the year ended | ||||||||||
December 31, 2015 | December 31, 2014 | ||||||||||
Dollars in thousands | December 31, 2017 | December 31, 2016 | December 31, 2015 | ||||||||
Earnings Available to Common Stockholders: | |||||||||||
Net Income | $ | 8,581,584 | $ | 5,847,262 | $9,041 | $9,762 | $8,581 | ||||
Minority interest | $ | 164,575 | $ | 45,653 | |||||||
Preferred Stock Dividends | 510,000 | 127,500 | |||||||||
Minority interest attributable to noncontrolling interest | 31 | 194 | 164 | ||||||||
Dividends paid/accumulated on preferred stock | 415 | 487 | 510 | ||||||||
Net Income Available to Common Stockholders | $ | 7,907,009 | $ | 5,674,109 | $8,595 | $9,081 | $7,907 |
Year ended | Year ended | ||||||||||||||||||||||||||||||||
12/31/2015 | 12/31/2014 | December 31, 2017 | December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||
Income | Shares | Per Share Amounts | Income | Shares | Per Share Amounts | ||||||||||||||||||||||||||||
Dollars in thousands | Net Income Available to Common Stockholders | Weighted Average Shares | Per Share Amounts | Net Income Available to Common Stockholders | Weighted Average Shares | Per Share Amounts | Net Income Available to Common Stockholders | Weighted Average Shares | Per Share Amounts | ||||||||||||||||||||||||
Basic EPS | $ | 7,907,009 | 3,735,212 | $ | 2.40 | $ | 5,674,109 | 3,229,942 | $ | 1.82 | $8,595 | 3,269,713 | $2.63 | $9,081 | 3,282,335 | $2.77 | $7,907 | 3,290,812 | $2.40 | ||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||||||||||
Convertible Preferred Stock | 510,000 | 444,400 | (0.15 | ) | 127,500 | 110,631 | (0.02 | ) | 415 | 362,271 | (0.15) | 487 | 434,256 | (0.20) | 510 | 444,400 | (0.15) | ||||||||||||||||
Diluted EPS | $ | 8,417,009 | 3,290,812 | $ | 2.25 | $ | 5,801,609 | 3,119,311 | $ | 1.80 | $9,010 | 3,631,984 | $2.48 | $9,568 | 3,716,591 | $2.57 | $8,417 | 3,735,212 | $2.25 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |
December 31, 2017 | ||||
U. S. Treasuries | $125 | $- | $- | $125 |
December 31, 2016 | ||||
U. S. Treasuries | $125 | $- | $- | $125 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
December 31, 2015 | ||||||||||||||||
U. S. Treasuries | $ | 125,043 | $ | - | $ | - | $ | 125,043 | ||||||||
December 31, 2014 | ||||||||||||||||
U. S. Treasuries | $ | 125,150 | $ | - | $ | - | $ | 125,150 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |
December 31, 2017 | ||||
U. S. Treasuries | $19,998 | $- | $- | $19,998 |
U. S. Government sponsored enterprises | 7,999 | - | 19 | 7,980 |
Mortgage-backed obligations of federal agencies | 508 | - | 6 | 502 |
Equity securities | 135 | - | - | 135 |
Total Securities Available for Sale | $28,640 | $- | $25 | $28,615 |
December 31, 2016 | ||||
U. S. Treasuries | $24,005 | $9 | $- | $24,014 |
Mortgage-backed obligations of federal agencies | 634 | - | - | 634 |
Equity securities | 135 | - | - | 135 |
Total Securities Available for Sale | $24,774 | $9 | $- | $24,783 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
December 31, 2015 | ||||||||||||||||
U. S. Treasuries | $ | 4,015,440 | $ | 5,840 | $ | - | $ | 4,021,280 | ||||||||
Government sponsored enterprises | 8,080,540 | 3,780 | 10,600 | 8,073,720 | ||||||||||||
Mortgage-backed obligations of federal agencies | 810,802 | 6,143 | - | 816,945 | ||||||||||||
Marketable equities | 135,000 | - | - | 135,000 | ||||||||||||
Total Securities Available for Sale | $ | 13,041,782 | $ | 15,763 | $ | 10,600 | $ | 13,046,945 | ||||||||
December 31, 2014 | ||||||||||||||||
U. S. Treasuries | $ | 4,025,740 | $ | - | $ | 6,100 | $ | 4,019,640 | ||||||||
Government sponsored enterprises | 8,039,540 | 8,940 | 9,880 | 8,038,600 | ||||||||||||
Mortgage-backed obligations of federal agencies | 1,011,092 | 10,780 | - | 1,021,872 | ||||||||||||
Marketable equities | 135,000 | - | - | 135,000 | ||||||||||||
Total Securities Available for Sale | $ | 13,211,372 | $ | 19,720 | $ | 15,980 | $ | 13,215,112 |
Securities Held to Maturity | Securities Available for Sale | Securities Held to Maturity | Securities Available for Sale | |||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Due in one year or less | $ | 125,043 | $ | 125,043 | $ | 4,015,440 | $ | 4,021,280 | $125 | $19,998 | ||||||||||
Due after one year through five years | - | - | 8,080,540 | 8,073,720 | - | 7,999 | 7,980 | |||||||||||||
Due after five years | - | - | 945,802 | 951,945 | ||||||||||||||||
Due after five years through ten years | - | 508 | 502 | |||||||||||||||||
Due after ten years | - | 135 | ||||||||||||||||||
Total | $ | 125,043 | $ | 125,043 | $ | 13,041,782 | $ | 13,046,945 | $125 | $28,640 | $28,615 |
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
2015 | ||||||||||||||||||||||||
U. S. Treasuries | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Government sponsored enterprises | 6,056 | (11 | ) | - | - | 6,056 | (11 | ) | ||||||||||||||||
Mortgage-backed obligations | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 6,056 | $ | (11 | ) | $ | - | $ | - | $ | 6,056 | $ | (11 | ) | ||||||||||
2014 | ||||||||||||||||||||||||
U. S. Treasuries | $ | 4,020 | $ | (6 | ) | $ | - | $ | - | $ | 4,020 | $ | (6 | ) | ||||||||||
Government sponsored enterprises | 2,004 | (2 | ) | 1,991 | (8 | ) | 3,995 | (10 | ) | |||||||||||||||
Mortgage-backed obligations | - | - | - | - | - | - | ||||||||||||||||||
Total | $ | 6,024 | $ | (8 | ) | $ | 1,991 | $ | (8 | ) | $ | 8,015 | $ | (16 | ) |
Less than 12 Months | More than 12 Months | Total | ||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |
December 31, 2017 | ||||||
U. S. Government sponsored enterprises | $3,981 | $(19) | $- | $- | $3,981 | $(19) |
Mortgage-backed obligations of federal agencies | 502 | (6) | - | - | 502 | (6) |
Total | $4,483 | $(25) | $- | $- | $4,483 | $(25) |
2015 | 2014 | 2017 | 2016 | |||||||
Construction/Land Development | $ | 69,759,401 | $ | 67,180,467 | $71,620 | $76,172 | ||||
Farmland | 13,377,740 | 12,507,446 | 13,606 | 12,901 | ||||||
Real Estate | 166,586,877 | 162,248,606 | 184,546 | 172,758 | ||||||
Multi-Family | 7,558,460 | 11,775,205 | 10,298 | 7,605 | ||||||
Commercial Real Estate | 128,031,686 | 122,305,417 | 148,906 | 150,061 | ||||||
Home Equity – closed end | 9,135,433 | 9,393,805 | 11,606 | 11,453 | ||||||
Home Equity – open end | 56,599,337 | 52,181,679 | 54,739 | 54,420 | ||||||
Commercial & Industrial – Non-Real Estate | 27,954,171 | 28,160,584 | 36,912 | 31,306 | ||||||
Consumer | 8,219,391 | 9,109,994 | 6,633 | 6,643 | ||||||
Dealer Finance | 54,085,791 | 40,633,086 | 75,169 | 65,495 | ||||||
Credit Cards | 2,745,190 | 2,745,190 | 2,939 | 2,822 | ||||||
Total | $ | 544,053,477 | $ | 518,201,574 | $616,974 | $591,636 |
Unpaid | Average | Interest | ||||||||||||||||||
December 31, 2015 | Recorded | Principal | Related | Recorded | Income | |||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||
Impaired loans without a valuation allowance: | ||||||||||||||||||||
Construction/Land Development | $ | 1,361 | $ | 1,499 | $ | - | $ | 3,622 | $ | 73 | ||||||||||
Farmland | - | - | - | - | - | |||||||||||||||
Real Estate | 1,097 | 1,097 | - | 734 | 58 | |||||||||||||||
Multi-Family | - | - | - | - | - | |||||||||||||||
Commercial Real Estate | 307 | 307 | - | 874 | 17 | |||||||||||||||
Home Equity – closed end | - | - | - | - | - | |||||||||||||||
Home Equity – open end | 1,159 | 1,159 | - | 1,513 | 82 | |||||||||||||||
Commercial & Industrial – Non-Real Estate | 181 | 181 | - | 186 | 10 | |||||||||||||||
Consumer | 18 | 18 | - | 7 | - | |||||||||||||||
Credit Cards | - | - | - | - | - | |||||||||||||||
Dealer Finance | 4 | 4 | - | 1 | 4 | |||||||||||||||
4,127 | 4,265 | - | 6,937 | 244 | ||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||
Construction/Land Development | 11,534 | 11,534 | 2,373 | 12,884 | 299 | |||||||||||||||
Farmland | - | - | - | - | - | |||||||||||||||
Real Estate | 324 | 324 | 238 | 699 | 46 | |||||||||||||||
Multi-Family | - | - | - | - | - | |||||||||||||||
Commercial Real Estate | 890 | 890 | 18 | 900 | 15 | |||||||||||||||
Home Equity – closed end | - | - | - | - | - | |||||||||||||||
Home Equity – open end | 1,414 | 1,414 | 269 | 613 | 75 | |||||||||||||||
Commercial & Industrial – Non-Real Estate | - | - | - | - | - | |||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||
Credit cards | - | - | - | - | - | |||||||||||||||
Dealer Finance | 68 | 68 | 17 | 38 | 5 | |||||||||||||||
14,230 | 14,230 | 2,915 | 15,134 | 440 | ||||||||||||||||
Total impaired loans | $ | 18,357 | $ | 18,495 | $ | 2,915 | $ | 22,071 | $ | 684 |
Unpaid | Average | Interest | ||||||||||||||||||
December 31, 2014 | Recorded | Principal | Related | Recorded | Income | |||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | ||||||||||||||||
Impaired loans without a valuation allowance: | ||||||||||||||||||||
Construction/Land Development | $ | 4,982 | $ | 5,402 | $ | - | $ | 5,412 | $ | 251 | ||||||||||
Farmland | - | - | - | 1,163 | - | |||||||||||||||
Real Estate | 141 | 141 | - | 85 | 5 | |||||||||||||||
Multi-Family | - | - | - | - | - | |||||||||||||||
Commercial Real Estate | 1,159 | 1,459 | - | 1,450 | 66 | |||||||||||||||
Home Equity – closed end | - | - | - | 123 | - | |||||||||||||||
Home Equity – open end | 1,649 | 1,649 | - | 330 | 57 | |||||||||||||||
Commercial & Industrial – Non-Real Estate | 191 | 191 | - | 237 | 11 | |||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||
Credit cards | - | - | - | - | - | |||||||||||||||
Dealer Finance | - | - | - | - | - | |||||||||||||||
8,122 | 8,842 | - | 8,800 | 390 | ||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||
Construction/Land Development | 12,976 | 14,749 | 1,469 | 12,056 | 326 | |||||||||||||||
Farmland | - | - | - | - | - | |||||||||||||||
Real Estate | 926 | 926 | 101 | 988 | 105 | |||||||||||||||
Multi-Family | - | - | - | - | - | |||||||||||||||
Commercial Real Estate | 938 | 938 | 47 | 1,030 | 4 | |||||||||||||||
Home Equity – closed end | - | - | - | 72 | - | |||||||||||||||
Home Equity – open end | - | - | - | 40 | - | |||||||||||||||
Commercial & Industrial – Non-Real Estate | - | - | - | - | - | |||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||
Credit cards | - | - | - | - | - | |||||||||||||||
Dealer Finance | - | - | - | - | - | |||||||||||||||
14,840 | 16,613 | 1,617 | 14,186 | 435 | ||||||||||||||||
Total impaired loans | $ | 22,962 | $ | 25,455 | $ | 1,617 | $ | 22,986 | $ | 825 |
December 31, 2017 | December 31, 2016 | |||||
Unpaid | Unpaid | |||||
Recorded | Principal | Related | Recorded | Principal | Related | |
Investment | Balance | Allowance | Investment | Balance | Allowance | |
Impaired loans without a valuation allowance: | ||||||
Construction/Land Development | $4,352 | $5,269 | $- | $3,296 | $3,652 | $- |
Farmland | 1,984 | 1,984 | - | - | - | - |
Real Estate | 1,273 | 1,273 | - | 768 | 768 | - |
Multi-Family | - | - | - | - | - | - |
Commercial Real Estate | 6,229 | 6,229 | - | 1,958 | 1,958 | - |
Home Equity – closed end | - | - | - | - | - | - |
Home Equity – open end | - | 347 | - | - | 347 | - |
Commercial & Industrial – Non-Real Estate | - | - | - | 170 | 170 | - |
Consumer | 8 | 8 | - | 13 | 13 | - |
Credit cards | - | - | - | - | - | - |
Dealer Finance | 31 | 31 | - | - | - | - |
13,877 | 15,141 | - | 6,205 | 6,908 | - | |
Impaired loans with a valuation allowance | ||||||
Construction/Land Development | 4,998 | 4,998 | 1,661 | 6,592 | 6,592 | 1,853 |
Farmland | - | - | - | - | - | - |
Real Estate | 1,188 | 1,188 | 209 | 1,206 | 1,206 | 221 |
Multi-Family | - | - | - | - | - | - |
Commercial Real Estate | - | - | - | 952 | 952 | 60 |
Home Equity – closed end | - | - | - | - | - | - |
Home Equity – open end | - | - | - | - | - | - |
Commercial & Industrial – Non-Real Estate | - | - | - | - | - | - |
Consumer | - | - | - | - | - | - |
Credit cards | - | - | - | - | - | - |
Dealer Finance | 47 | 47 | 12 | 87 | 87 | 20 |
6,233 | 6,233 | 1,882 | 8,837 | 8,837 | 2,154 | |
Total impaired loans | $20,110 | $21,374 | $1,882 | $15,042 | $15,745 | $2,154 |
December 31, 2017 | December 31, 2016 | |||
Average | Interest | Average | Interest | |
Recorded | Income | Recorded | Income | |
Investment | Recognized | Investment | Recognized | |
Impaired loans without a valuation allowance: | ||||
Construction/Land Development | $4,969 | $382 | $2,547 | $10 |
Farmland | 1,921 | 62 | - | - |
Real Estate | 878 | 57 | 778 | 10 |
Multi-Family | - | - | - | - |
Commercial Real Estate | 1,682 | 44 | 1,087 | 114 |
Home Equity – closed end | - | - | - | - |
Home Equity – open end | 347 | - | 964 | 2 |
Commercial & Industrial – Non-Real Estate | 124 | - | 174 | 2 |
Consumer | 10 | - | 11 | - |
Credit cards | - | - | - | - |
Dealer Finance | 24 | 3 | 14 | 1 |
9,955 | 548 | 5,575 | 139 | |
Impaired loans with a valuation allowance | ||||
Construction/Land Development | 5,911 | 258 | 8,525 | 291 |
Farmland | - | - | - | - |
Real Estate | 1,194 | 49 | 1,215 | 10 |
Multi-Family | - | - | - | - |
Commercial Real Estate | - | - | 959 | 57 |
Home Equity – closed end | - | - | - | - |
Home Equity – open end | - | - | 969 | - |
Commercial & Industrial – Non-Real Estate | - | - | 14 | - |
Consumer | - | - | - | - |
Credit cards | - | - | - | - |
Dealer Finance | 56 | 3 | 77 | 1 |
7,161 | 310 | 11,759 | 359 | |
Total impaired loans | $17,116 | $858 | $17,334 | $498 |
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, 2017 | ||||||||
Construction/Land Development | $167 | $5,459 | $3,908 | $9,534 | $62,086 | $71,620 | $3,908 | $- |
Farmland | - | - | - | - | 13,606 | 13,606 | - | - |
Real Estate | 2,858 | 1,954 | 560 | 5,372 | 179,174 | 184,546 | 1,720 | 143 |
Multi-Family | 179 | - | - | 179 | 10,119 | 10,298 | - | - |
Commercial Real Estate | 544 | - | - | 544 | 148,362 | 148,906 | - | - |
Home Equity – closed end | - | 25 | - | 25 | 11,581 | 11,606 | 3 | - |
Home Equity – open end | 454 | 165 | 268 | 887 | 53,852 | 54,739 | 448 | - |
Commercial & Industrial – Non- Real Estate | 108 | 36 | 595 | 739 | 36,173 | 36,912 | 599 | - |
Consumer | 43 | 5 | - | 48 | 6,585 | 6,633 | - | - |
Dealer Finance | 1,300 | 252 | 189 | 1,741 | 73,428 | 75,169 | 226 | 54 |
Credit Cards | 30 | 8 | 1 | 39 | 2,900 | 2,939 | - | 1 |
Total | $5,683 | $7,904 | $5,521 | $19,108 | $597,866 | $616,974 | $6,904 | $198 |
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, 2016 | ||||||||
Construction/Land Development | $73 | $101 | $2,175 | $2,349 | $73,823 | $76,172 | $2,805 | $- |
Farmland | - | - | - | - | 12,901 | 12,901 | - | - |
Real Estate | 2,135 | 746 | 774 | 3,655 | 169,103 | 172,758 | 1,399 | 81 |
Multi-Family | - | - | - | - | 7,605 | 7,605 | - | - |
Commercial Real Estate | 139 | - | - | 139 | 149,922 | 150,061 | - | - |
Home Equity – closed end | 101 | - | 32 | 133 | 11,320 | 11,453 | 32 | - |
Home Equity – open end | 484 | - | 69 | 553 | 53,867 | 54,420 | 279 | - |
Commercial & Industrial – Non- Real Estate | 313 | 5 | - | 318 | 30,988 | 31,306 | 70 | - |
Consumer | 35 | 4 | 6 | 45 | 6,598 | 6,643 | - | - |
Dealer Finance | 797 | 187 | 183 | 1,167 | 64,328 | 65,495 | 178 | 26 |
Credit Cards | 18 | 4 | - | 22 | 2,800 | 2,822 | - | - |
Total | $4,095 | $1,047 | $3,239 | $8,381 | $583,255 | $591,636 | $4,763 | $107 |
December 31, 2017 | Beginning Balance | Charge-offs | Recoveries | Provision for Loan Losses | Ending Balance | Individually Evaluated for Impairment | Collectively Evaluated for Impairment |
Allowance for loan losses: | |||||||
Construction/Land Development | $3,381 | $620 | $- | $(214) | $2,547 | $1,661 | $886 |
Farmland | 34 | - | - | (9) | 25 | - | 25 |
Real Estate | 843 | - | 2 | (126) | 719 | 209 | 510 |
Multi-Family | 23 | - | - | (6) | 19 | - | 19 |
Commercial Real Estate | 705 | - | 13 | (236) | 482 | - | 482 |
Home Equity – closed end | 75 | 7 | 25 | (27) | 66 | - | 66 |
Home Equity – open end | 470 | 26 | 53 | (288) | 209 | - | 209 |
Commercial & Industrial – Non-Real Estate | 586 | 179 | 72 | (142) | 337 | - | 337 |
Consumer | 78 | 136 | 28 | 178 | 148 | - | 148 |
Dealer Finance | 1,289 | 1,806 | 1,143 | 814 | 1,440 | 12 | 1,428 |
Credit Cards | 59 | 98 | 37 | 54 | 52 | - | 52 |
Total | $7,543 | $2,872 | $1,373 | $- | $6,044 | $1,882 | $4,162 |
December 31, 2016 | Beginning Balance | Charge-offs | Recoveries | Provision for Loan Losses | Ending Balance | Individually Evaluated for Impairment | Collectively Evaluated for Impairment |
Allowance for loan losses: | |||||||
Construction/Land Development | $4,442 | $356 | $7 | $(712) | $3,381 | $1,853 | $1,528 |
Farmland | 95 | - | - | (61) | 34 | - | 34 |
Real Estate | 806 | 23 | 4 | 56 | 843 | 221 | 622 |
Multi-Family | 71 | - | - | (48) | 23 | - | 23 |
Commercial Real Estate | 445 | 19 | 135 | 144 | 705 | - | 705 |
Home Equity – closed end | 174 | 8 | - | (91) | 75 | - | 75 |
Home Equity – open end | 634 | 370 | 120 | 86 | 470 | 60 | 410 |
Commercial & Industrial – Non-Real Estate | 1,055 | 293 | 267 | (443) | 586 | - | 586 |
Consumer | 108 | 37 | 19 | (12) | 78 | - | 78 |
Dealer Finance | 836 | 1,081 | 417 | 1,117 | 1,289 | 20 | 1,269 |
Credit Cards | 115 | 74 | 54 | (36) | 59 | - | 59 |
Total | $8,781 | $2,261 | $1,023 | $- | $7,543 | $2,154 | $5,389 |
December 31, 2017 | Loan Receivable | Individually Evaluated for Impairment | Collectively Evaluated for Impairment |
Construction/Land Development | $71,620 | $9,350 | $62,270 |
Farmland | 13,606 | 1,984 | 11,622 |
Real Estate | 184,546 | 2,461 | 182,085 |
Multi-Family | 10,298 | - | 10,298 |
Commercial Real Estate | 148,906 | 6,229 | 142,677 |
Home Equity – closed end | 11,606 | - | 11,606 |
Home Equity –open end | 54,739 | - | 54,739 |
Commercial & Industrial – Non-Real Estate | 36,912 | - | 36,912 |
Consumer | 6,633 | 8 | 6,625 |
Dealer Finance | 75,169 | 78 | 75,091 |
Credit Cards | 2,939 | - | 2,939 |
$616,974 | $20,110 | $596,864 | |
Total |
December 31, 2016 | Loan Receivable | Individually Evaluated for Impairment | Collectively Evaluated for Impairment |
Construction/Land Development | $76,172 | $9,888 | $66,284 |
Farmland | 12,901 | - | 12,901 |
Real Estate | 172,758 | 1,974 | 170,784 |
Multi-Family | 7,605 | - | 7,605 |
Commercial Real Estate | 150,061 | 2,910 | 147,151 |
Home Equity – closed end | 11,453 | - | 11,453 |
Home Equity –open end | 54,420 | - | 54,420 |
Commercial & Industrial – Non-Real Estate | 31,306 | 170 | 31,136 |
Consumer | 6,643 | 13 | 6,630 |
Dealer Finance | 65,495 | 87 | 65,408 |
Credit Cards | 2,822 | - | 2,822 |
$591,636 | $15,042 | $576,594 |
December 31, 2017 | 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 | $- | $690 | $12,974 | $30,197 | $9,165 | $3,520 | $15,074 | $- | $71,620 |
Farmland | 63 | - | 3,153 | 4,120 | 3,793 | 494 | 1,983 | - | 13,606 |
Real Estate | - | 1,512 | 53,764 | 101,606 | 19,734 | 4,660 | 3,270 | - | 184,546 |
Multi-Family | - | 228 | 4,780 | 5,111 | 179 | - | - | - | 10,298 |
Commercial Real Estate | - | 3,525 | 45,384 | 89,195 | 9,012 | 634 | 1,156 | - | 148,906 |
Home Equity – closed end | - | - | 3,535 | 5,410 | 1,279 | 1,379 | 3 | - | 11,606 |
Home Equity – open end | 235 | 1,598 | 17,383 | 30,888 | 3,945 | 176 | 514 | - | 54,739 |
Commercial & Industrial (Non-Real Estate) | 262 | 1,595 | 13,297 | 19,442 | 1,480 | 207 | 629 | - | 36,912 |
Consumer (excluding dealer) | 34 | 490 | 2,226 | 88 | 1,065 | 2,254 | 476 | - | 6,633 |
Total | $594 | $9,638 | $156,496 | $286,057 | $49,652 | $13,324 | $23,105 | $- | $538,866 |
Credit Cards | Dealer Finance | |
Performing | $2,938 | $75,116 |
Non performing | 1 | 53 |
Total | $2,939 | $75,169 |
December 31, 2016 | 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 | $- | $1,478 | $10,870 | $43,863 | $8,399 | $2,473 | $9,089 | $- | $76,172 |
Farmland | 65 | - | 3,073 | 3,456 | 4,446 | 1,861 | - | - | 12,901 |
Real Estate | - | 1,149 | 62,168 | 74,242 | 28,266 | 4,680 | 2,253 | - | 172,758 |
Multi-Family | - | 311 | 3,009 | 4,099 | 186 | - | - | - | 7,605 |
Commercial Real Estate | - | 2,793 | 32,986 | 91,157 | 19,181 | 1,840 | 2,104 | - | 150,061 |
Home Equity – closed end | - | 150 | 3,966 | 4,139 | 1,746 | 1,414 | 38 | - | 11,453 |
Home Equity – open end | 124 | 1,724 | 16,415 | 30,974 | 4,547 | 125 | 511 | - | 54,420 |
Commercial & Industrial (Non-Real Estate) | 1,375 | 1,267 | 6,827 | 19,530 | 2,198 | 39 | 70 | - | 31,306 |
Consumer (excluding dealer) | 67 | 174 | 1,837 | 607 | 1,242 | 2,252 | 466 | - | 6,643 |
Total | $1,631 | $9,046 | $141,151 | $272,065 | $70,211 | $14,684 | $14,531 | $- | $523,319 |
Credit Cards | Dealer Finance | |
Performing | $2,822 | $65,291 |
Non performing | - | 204 |
Total | $2,822 | $65,495 |
December 31, 2017 | |||
Pre-Modification | Post-Modification | ||
(dollars in thousands) | Outstanding | Outstanding | |
Troubled Debt Restructurings | Number of Contracts | Recorded Investment | Recorded Investment |
Consumer | 3 | $32 | $32 |
Total | 3 | $32 | $32 |
December 31, 2017 | |||
Pre-Modification | Post-Modification | ||
(dollars in thousands) | Outstanding | Outstanding | |
Troubled Debt Restructurings | Number of Contracts | Recorded Investment | Recorded Investment |
Real Estate | 1 | $67 | $67 |
Construction/Land Development | 2 | 1,502 | 1,502 |
Total | 3 | $1,569 | $1,569 |
December 31, 2016 | |||
Pre-Modification | Post-Modification | ||
(in thousands) | Outstanding | Outstanding | |
Troubled Debt Restructurings | Number of Contracts | Recorded Investment | Recorded Investment |
Real Estate | 2 | $141 | $141 |
Consumer | 4 | 39 | 39 |
Total | 6 | $180 | $180 |
2017 | 2016 | |
Land | $3,883 | $3,091 |
Buildings and improvements | 12,384 | 7,877 |
Furniture and equipment | 9,454 | 8,257 |
25,721 | 19,225 | |
Less - accumulated depreciation | (9,827) | (8,885) |
Net | $15,894 | $10,340 |
Other Real Estate Owned | ||
2017 | 2016 | |
Balance as of January 1 | $2,076 | $2,128 |
Loans transferred to OREO | 231 | 566 |
Capital improvements | 2 | 24 |
Sale of OREO | (281) | (623) |
Write down of OREO or losses on sale | (44) | (19) |
Balance as of December 31 | $1,984 | $2,076 |
2018 | $66,749 |
2019 | 51,434 |
2020 | 30,151 |
2021 | 9,296 |
2022 and after | 7,640 |
Total | $165,270 |
Outstanding | Average | |||
Maximum Outstanding | At | Balance | ||
at any Month End | Year End | Outstanding | Yield | |
2017 | ||||
Federal funds purchased | $8,964 | $5,296 | $97 | .17% |
FHLB short term | 50,000 | 20,000 | 20,301 | .30% |
Totals | $25,296 | $20,398 | .31% | |
2016 | ||||
Federal funds purchased | $11,421 | $- | $637 | .98% |
FHLB short term | 50,000 | 40,000 | 34,740 | .12% |
Securities sold under agreements to repurchase | 4,272 | - | 2,133 | .25% |
Totals | $40,000 | $37,510 | .15% |
2018 | $9,428 |
2019 | 6,929 |
2020 | 14,429 |
2021 | 5,929 |
2022 | 2,714 |
Thereafter | 10,125 |
Total | $49,554 |
2017 | 2016 | 2015 | |
Current expense | $3,671 | $3,046 | $3,227 |
Deferred expense (benefit) | (152) | 53 | (341) |
Adjustments to deferred tax asset due to change in federal tax rate | 811 | - | - |
Total deferred (benefit) expense | 659 | 53 | (341) |
Total Income Tax Expense | $4,330 | $3,099 | $2,886 |
2017 | 2016 | |
Deferred Tax Assets: | ||
Allowance for loan losses | $1,265 | $2,354 |
Split Dollar Life Insurance | 3 | 4 |
Nonqualified deferred compensation | 546 | 856 |
Low income housing partnerships losses | 203 | 94 |
Core deposit amortization | 108 | 165 |
Other real estate owned | 173 | 280 |
Unfunded pension benefit obligation | 1,096 | 1,633 |
Total Assets | $3,394 | $5,386 |
2017 | 2016 | |
Deferred Tax Liabilities: | ||
Unearned low income housing credits | $180 | $307 |
Depreciation | 340 | 437 |
Prepaid pension | 1,010 | 1,840 |
Goodwill tax amortization | 559 | 901 |
Net unrealized gain (loss) on securities available for sale | (5) | 3 |
Total Liabilities | 2 084 | 3,488 |
Net Deferred Tax Asset (included in Other Assets on Balance Sheet) | $1,310 | $1,898 |
2017 | 2016 | 2015 | |
Tax expense at federal statutory rates | $4,511 | $4,307 | $3,843 |
Increases (decreases) in taxes resulting from: | |||
State income taxes, net of federal benefit | - | 6 | 8 |
Partially tax-exempt income | (59) | (41) | (46) |
Tax-exempt income | (212) | (217) | (223) |
LIH and historic credits | (633) | (896) | (701) |
Deferred Tax Asset rate change | 811 | ||
Other | (88) | (60) | 5 |
Total Income Tax Expense | $4,330 | $3,099 | $2,886 |
2017 | 2016 | 2015 | |
Change in Benefit Obligation | |||
Benefit obligation, beginning | $12,475 | $10,944 | $10,777 |
Service cost | 696 | 632 | 648 |
Interest cost | 487 | 453 | 411 |
Actuarial (gain) loss | 1,620 | 872 | (137) |
Benefits paid | (175) | (426) | (754) |
Benefit obligation, ending | $15,103 | $12,475 | $10,945 |
Change in Plan Assets | |||
Fair value of plan assets, beginning | $12,032 | $11,678 | $11,684 |
Actual return on plan assets | 1,788 | 780 | (1) |
Employer contribution | - | - | 750 |
Benefits paid | (175) | (426) | (755) |
Fair value of plan assets, ending | $13,645 | $12,032 | $11,678 |
Funded status at the end of the year | $(1,458) | $(443) | $733 |
2017 | 2016 | 2015 | |
Amount recognized in the Consolidated Balance Sheet | |||
Prepaid benefit cost | $3,760 | $4,361 | $4,799 |
Unfunded pension benefit obligation under ASC 325-960 | (5,218) | (4,804) | (4,065) |
Deferred taxes | 1,096 | 1,633 | 1,382 |
Amount recognized in accumulated other | |||
comprehensive income (loss) | |||
Net loss | $(5,260) | $(4,861) | $(4,137) |
Prior service cost | 42 | 57 | 72 |
Amount recognized | (5,218) | (4,804) | (4,065) |
Deferred taxes | 1,096 | 1,633 | 1,382 |
Amount recognized in accumulated comprehensive income | $(4,122) | $(3,171) | $(2,683) |
Prepaid benefit detail | |||
Benefit obligation | $(15,103) | $(12,475) | $(10,945) |
Fair value of assets | 13,645 | 12,032 | 11,678 |
Unrecognized net actuarial loss | 5,260 | 4,861 | 4,138 |
Unrecognized prior service cost | (42) | (57) | (72) |
Prepaid (accrued) benefits | $3,760 | $4,361 | $4,799 |
Components of net periodic benefit cost | |||
Service cost | $696 | $632 | $648 |
Interest cost | 487 | 452 | 411 |
Expected return on plan assets | (851) | (854) | (839) |
Amortization of prior service cost | (15) | (15) | (15) |
Recognized net actuarial loss | 284 | 223 | 181 |
Net periodic benefit cost | $601 | $438 | $386 |
Other changes in plan assets and benefit obligations | |||
recognized in other comprehensive income (loss) | |||
Net loss | $399 | $724 | $522 |
Amortization of prior service cost | 15 | 15 | 15 |
Total recognized in other comprehensive income | $414 | $739 | $537 |
Total recognized in net periodic benefit cost and other | |||
comprehensive income (loss) | $1,015 | $1,177 | $923 |
Additional disclosure information | |||
Accumulated benefit obligation | $10,760 | $8,789 | $7,601 |
Vested benefit obligation | $10,750 | $8,780 | $7,539 |
Discount rate used for net pension cost | 4.00% | 4.25% | 4.00% |
Discount rate used for disclosure | 3.50% | 4.00% | 4.25% |
Expected return on plan assets | 7.25% | 7.50% | 7.50% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Average remaining service (years) | 12 | 13 | 13 |
2017 | 2016 | 2015 | |
Change in Benefit Obligation | |||
Benefit obligation, beginning | $12,475 | $10,944 | $10,777 |
Service cost | 696 | 632 | 648 |
Interest cost | 487 | 453 | 411 |
Actuarial (gain) loss | 1,620 | 872 | (137) |
Benefits paid | (175) | (426) | (754) |
Benefit obligation, ending | $15,103 | $12,475 | $10,945 |
Change in Plan Assets | |||
Fair value of plan assets, beginning | $12,032 | $11,678 | $11,684 |
Actual return on plan assets | 1,788 | 780 | (1) |
Employer contribution | - | - | 750 |
Benefits paid | (175) | (426) | (755) |
Fair value of plan assets, ending | $13,645 | $12,032 | $11,678 |
Funded status at the end of the year | $(1,458) | $(443) | $733 |
December 31, 2015 (in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision | Ending Balance | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Construction/Land Development | $ | 4,738 | $ | 156 | $ | 85 | $ | (225 | ) | $ | 4,442 | $ | 2,373 | $ | 2,069 | |||||||||||||
Farmland | - | - | - | 95 | 95 | - | 95 | |||||||||||||||||||||
Real Estate | 623 | 25 | 37 | 171 | 806 | 238 | 568 | |||||||||||||||||||||
Multi-Family | - | - | - | 71 | 71 | - | 71 | |||||||||||||||||||||
Commercial Real Estate | 126 | - | 65 | 254 | 445 | 18 | 427 | |||||||||||||||||||||
Home Equity – closed end | 188 | 26 | 6 | 6 | 174 | - | 174 | |||||||||||||||||||||
Home Equity – open end | 154 | 51 | - | 531 | 634 | 269 | 365 | |||||||||||||||||||||
Commercial & Industrial – Non-Real Estate | 1,211 | - | 62 | (218 | ) | 1,055 | - | 1,055 | ||||||||||||||||||||
Consumer | 214 | 32 | 32 | (106 | ) | 108 | - | 108 | ||||||||||||||||||||
Dealer Finance | 1,336 | 251 | 24 | (273 | ) | 836 | 17 | �� | 819 | |||||||||||||||||||
Credit Cards | 135 | 60 | 46 | (6 | ) | 115 | - | 115 | ||||||||||||||||||||
Total | $ | 8,725 | $ | 601 | $ | 357 | $ | 300 | $ | 8,781 | $ | 2,915 | $ | 5,866 |
December 31, 2014 (in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision | Ending Balance | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Construction/Land Development | $ | 4,007 | $ | 1,611 | $ | 223 | $ | 2,119 | $ | 4,738 | $ | 1,469 | $ | 3,269 | ||||||||||||||
Farmland | (2 | ) | - | - | 2 | - | - | - | ||||||||||||||||||||
Real Estate | 400 | 208 | - | 431 | 623 | 101 | 522 | |||||||||||||||||||||
Multi-Family | - | - | - | - | - | - | - | |||||||||||||||||||||
Commercial Real Estate | 777 | - | 108 | (759 | ) | 126 | 47 | 79 | ||||||||||||||||||||
Home Equity – closed end | 157 | - | - | 31 | 188 | - | 188 | |||||||||||||||||||||
Home Equity – open end | 476 | 80 | - | (242 | ) | 154 | - | 154 | ||||||||||||||||||||
Commercial & Industrial – Non-Real Estate | 1,464 | 385 | 356 | (224 | ) | 1,211 | - | 1,211 | ||||||||||||||||||||
Consumer | 156 | 33 | 33 | 58 | 214 | - | 214 | |||||||||||||||||||||
Dealer Finance | 628 | 107 | 6 | 809 | 1,336 | - | 1,336 | |||||||||||||||||||||
Credit Cards | 121 | 46 | 35 | 25 | 135 | - | 135 | |||||||||||||||||||||
Total | $ | 8,184 | $ | 2,470 | $ | 761 | $ | 2,250 | $ | 8,725 | $ | 1,617 | $ | 7,108 |
December 31, 2015 | Loan Receivable | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||
Construction/Land Development | $ | 69,759 | $ | 12,895 | $ | 56,864 | ||||||
Farmland | 13,378 | - | 13,378 | |||||||||
Real Estate | 166,587 | 1,421 | 165,167 | |||||||||
Multi-Family | 7,559 | - | 7,559 | |||||||||
Commercial Real Estate | 128,032 | 1,197 | 126,835 | |||||||||
Home Equity – closed end | 9,135 | - | 9,135 | |||||||||
Home Equity –open end | 56,599 | 2,573 | 54,026 | |||||||||
Commercial & Industrial – Non-Real Estate | 27,954 | 181 | 27,773 | |||||||||
Consumer | 8,219 | 18 | 8,201 | |||||||||
Dealer Finance | 54,086 | 72 | 54,013 | |||||||||
Credit Cards | 2,745 | - | 2,745 | |||||||||
$ | 544,053 | $ | 18,357 | $ | 525,696 | |||||||
Total |
December 31, 2014 | Loan Receivable | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||
Construction/Land Development | $ | 67,181 | $ | 17,958 | $ | 49,223 | ||||||
Farmland | 12,507 | - | 12,507 | |||||||||
Real Estate | 162,249 | 1,067 | 161,182 | |||||||||
Multi-Family | 11,775 | - | 11,775 | |||||||||
Commercial Real Estate | 122,305 | 2,097 | 120,208 | |||||||||
Home Equity – closed end | 9,394 | - | 9,394 | |||||||||
Home Equity –open end | 52,182 | 1,649 | 50,533 | |||||||||
Commercial & Industrial – Non-Real Estate | 28,161 | 191 | 27,970 | |||||||||
Consumer | 9,110 | - | 9,110 | |||||||||
Dealer Finance | 40,633 | 40,633 | ||||||||||
Credit Cards | 2,705 | - | 2,705 | |||||||||
$ | 518,202 | $ | 22,962 | $ | 495,240 | |||||||
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 | ||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||
Construction/Land Development | $ | 104 | $ | - | $ | - | $ | 4,688 | $ | 4,792 | $ | 64,967 | $ | 69,759 | ||||||||||||||
Farmland | - | - | - | - | - | 13,378 | 13,378 | |||||||||||||||||||||
Real Estate | 2,684 | 1,332 | 272 | 1,010 | 5,298 | 161,289 | 166,587 | |||||||||||||||||||||
Multi-Family | - | - | - | - | - | 7,559 | 7,559 | |||||||||||||||||||||
Commercial Real Estate | 340 | 241 | - | - | 581 | 127,451 | 128,032 | |||||||||||||||||||||
Home Equity – closed end | 41 | 7 | - | - | 48 | 9,087 | 9,135 | |||||||||||||||||||||
Home Equity – open end | 918 | 46 | 107 | 40 | 1,111 | 55,488 | 56,599 | |||||||||||||||||||||
Commercial & Industrial – Non- Real Estate | 114 | 3 | 25 | 109 | 251 | 27,703 | 27,954 | |||||||||||||||||||||
Consumer | 120 | 10 | - | - | 130 | 8,089 | 8,219 | |||||||||||||||||||||
Dealer Finance | 905 | 183 | 152 | 108 | 1,348 | 52,738 | 54,086 | |||||||||||||||||||||
Credit Cards | 10 | 13 | 15 | - | 38 | 2,707 | 2,745 | |||||||||||||||||||||
Total | $ | 5,236 | $ | 1,835 | $ | 571 | $ | 5,955 | $ | 13,597 | $ | 530,456 | $ | 544,053 |
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, 2014 | ||||||||||||||||||||||||||||
Construction/Land Development | $ | 205 | $ | 166 | $ | - | $ | 4,508 | $ | 4,879 | $ | 62,302 | $ | 67,181 | ||||||||||||||
Farmland | - | - | - | - | - | 12,507 | 12,507 | |||||||||||||||||||||
Real Estate | 5,085 | 635 | - | 973 | 6,693 | 155,556 | 162,249 | |||||||||||||||||||||
Multi-Family | - | - | - | - | - | 11,775 | 11,775 | |||||||||||||||||||||
Commercial Real Estate | 747 | - | - | 1,165 | 1,912 | 120,393 | 122,305 | |||||||||||||||||||||
Home Equity – closed end | 162 | 15 | - | 10 | 187 | 9,207 | 9,394 | |||||||||||||||||||||
Home Equity – open end | 730 | 25 | - | 143 | 898 | 51,284 | 52,182 | |||||||||||||||||||||
Commercial & Industrial – Non- Real Estate | - | - | - | 14 | 14 | 28,147 | 28,161 | |||||||||||||||||||||
Consumer | 290 | 9 | - | - | 299 | 8,811 | 9,110 | |||||||||||||||||||||
Dealer Finance | 696 | 189 | - | 161 | 1,046 | 39,587 | 40,633 | |||||||||||||||||||||
Credit Cards | 36 | - | 1 | - | 37 | 2,668 | 2,705 | |||||||||||||||||||||
Total | $ | 7,951 | $ | 1,039 | $ | 1 | $ | 6,974 | $ | 15,965 | $ | 502,237 | $ | 518,202 |
CREDIT QUALITY INDICATORS (in thousands) | ||||||||||||||||||||||||||||||||||||
AS OF DECEMBER 31, 2015 | ||||||||||||||||||||||||||||||||||||
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 | $ | - | $ | 485 | $ | 8,410 | $ | 31,783 | $ | 14,260 | $ | 3,216 | $ | 11,605 | $ | - | $ | 69,759 | ||||||||||||||||||
Farmland | 66 | - | 2,615 | 3,768 | 4,952 | 1,977 | - | - | 13,378 | |||||||||||||||||||||||||||
Real Estate | - | 955 | 54,400 | 76,545 | 23,695 | 8,334 | 2,658 | - | 166,587 | |||||||||||||||||||||||||||
Multi-Family | - | 391 | 3,925 | 3,046 | 197 | - | - | - | 7,559 | |||||||||||||||||||||||||||
Commercial Real Estate | - | 2,087 | 25,889 | 74,337 | 20,271 | 4,149 | 1,299 | - | 128,032 | |||||||||||||||||||||||||||
Home Equity – closed end | - | - | 3,549 | 3,792 | 1,661 | 114 | 19 | - | 9,135 | |||||||||||||||||||||||||||
Home Equity – open end | - | 1,657 | 15,043 | 31,455 | 4,827 | 398 | 3,219 | - | 56,599 | |||||||||||||||||||||||||||
Commercial & Industrial (Non-Real Estate) | 896 | 646 | 6,423 | 17,053 | 2,281 | 517 | 138 | - | 27,954 | |||||||||||||||||||||||||||
Total | $ | 962 | $ | 6,221 | $ | 120,254 | $ | 241,779 | $ | 72,144 | $ | 18,705 | $ | 18,938 | $ | - | $ | 479,003 |
Consumer Credit Exposure | ||||||||
Credit Risk Profile Based on Payment Activity | ||||||||
Credit Cards | Consumer | |||||||
Performing | $ | 2,730 | $ | 62,046 | ||||
Non performing | 15 | 259 | ||||||
Total | $ | 2,745 | $ | 62,305 |
CREDIT QUALITY INDICATORS (in thousands) | ||||||||||||||||||||||||||||||||||||
AS OF DECEMBER 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 | $ | - | $ | 165 | $ | 8,460 | $ | 24,227 | $ | 9,605 | $ | 3,815 | $ | 20,909 | $ | - | $ | 67,181 | ||||||||||||||||||
Farmland | 68 | - | 1,640 | 3,451 | 5,228 | - | 2,120 | - | 12,507 | |||||||||||||||||||||||||||
Real Estate | - | 629 | 60,290 | 66,464 | 23,934 | 7,083 | 3,849 | - | 162,249 | |||||||||||||||||||||||||||
Multi-Family | - | 468 | 4,145 | 2,183 | 4,979 | - | - | - | 11,775 | |||||||||||||||||||||||||||
Commercial Real Estate | - | 1,687 | 22,800 | 65,653 | 19,058 | 10,571 | 2,536 | - | 122,305 | |||||||||||||||||||||||||||
Home Equity – closed end | - | - | 4,327 | 3,090 | 1,812 | 154 | 11 | - | 9,394 | |||||||||||||||||||||||||||
Home Equity – open end | - | 1,555 | 13,433 | 28,425 | 4,309 | 1,936 | 2,524 | - | 52,182 | |||||||||||||||||||||||||||
Commercial & Industrial (Non-Real Estate) | 643 | 74 | 4,692 | 18,039 | 3,948 | 735 | 30 | - | 28,161 | |||||||||||||||||||||||||||
Total | $ | 711 | $ | 4,578 | $ | 119,787 | $ | 211,532 | $ | 72,873 | $ | 24,294 | $ | 31,979 | $ | - | $ | 465.754 |
Consumer Credit Exposure | ||||||||
Credit Risk Profile Based on Payment Activity | ||||||||
Credit Cards | Consumer | |||||||
Performing | $ | 2,704 | $ | 49,582 | ||||
Non performing | 1 | 161 | ||||||
Total | $ | 2,705 | $ | 49,743 |
December 31, 2015 | ||||||||||||
Pre-Modification | Post-Modification | |||||||||||
(in thousands) | Outstanding | Outstanding | ||||||||||
Troubled Debt Restructurings | Number of Contracts | Recorded Investment | Recorded Investment | |||||||||
Commercial | 1 | $ | 974 | $ | 974 | |||||||
Real Estate | 5 | 1,408 | 1,408 | |||||||||
Home Equity | 4 | 1,414 | 1,414 | |||||||||
Consumer | 6 | 73 | 73 | |||||||||
Total | 16 | $ | 3,869 | $ | 3,869 |
2017 | 2016 | 2015 | |
Amount recognized in the Consolidated Balance Sheet | |||
Prepaid benefit cost | $3,760 | $4,361 | $4,799 |
Unfunded pension benefit obligation under ASC 325-960 | (5,218) | (4,804) | (4,065) |
Deferred taxes | 1,096 | 1,633 | 1,382 |
Amount recognized in accumulated other | |||
comprehensive income (loss) | |||
Net loss | $(5,260) | $(4,861) | $(4,137) |
Prior service cost | 42 | 57 | 72 |
Amount recognized | (5,218) | (4,804) | (4,065) |
Deferred taxes | 1,096 | 1,633 | 1,382 |
Amount recognized in accumulated comprehensive income | $(4,122) | $(3,171) | $(2,683) |
Prepaid benefit detail | |||
Benefit obligation | $(15,103) | $(12,475) | $(10,945) |
Fair value of assets | 13,645 | 12,032 | 11,678 |
Unrecognized net actuarial loss | 5,260 | 4,861 | 4,138 |
Unrecognized prior service cost | (42) | (57) | (72) |
Prepaid (accrued) benefits | $3,760 | $4,361 | $4,799 |
Components of net periodic benefit cost | |||
Service cost | $696 | $632 | $648 |
Interest cost | 487 | 452 | 411 |
Expected return on plan assets | (851) | (854) | (839) |
Amortization of prior service cost | (15) | (15) | (15) |
Recognized net actuarial loss | 284 | 223 | 181 |
Net periodic benefit cost | $601 | $438 | $386 |
Other changes in plan assets and benefit obligations | |||
recognized in other comprehensive income (loss) | |||
Net loss | $399 | $724 | $522 |
Amortization of prior service cost | 15 | 15 | 15 |
Total recognized in other comprehensive income | $414 | $739 | $537 |
Total recognized in net periodic benefit cost and other | |||
comprehensive income (loss) | $1,015 | $1,177 | $923 |
Additional disclosure information | |||
Accumulated benefit obligation | $10,760 | $8,789 | $7,601 |
Vested benefit obligation | $10,750 | $8,780 | $7,539 |
Discount rate used for net pension cost | 4.00% | 4.25% | 4.00% |
Discount rate used for disclosure | 3.50% | 4.00% | 4.25% |
Expected return on plan assets | 7.25% | 7.50% | 7.50% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Average remaining service (years) | 12 | 13 | 13 |
December 31, 2014 | ||||||||||||
Pre-Modification | Post-Modification | |||||||||||
(in thousands) | Outstanding | Outstanding | ||||||||||
Number of Contracts | Recorded Investment | Recorded Investment | ||||||||||
Troubled Debt Restructurings | ||||||||||||
Real Estate | 2 | $ | 179 | $ | 179 | |||||||
Consumer | 1 | 22 | 22 | |||||||||
3 | $ | 201 | $ | 201 |
2015 | 2014 | |||||||
Land | $ | 1,868,709 | $ | 1,418,003 | ||||
Buildings and improvements | 7,209,427 | 6,793,644 | ||||||
Furniture and equipment | 7,397,173 | 6,479,815 | ||||||
16,475,309 | 14,691,462 | |||||||
Less - accumulated depreciation | (8,933,231 | ) | (8,233,208 | ) | ||||
Net | $ | 7,542,078 | $ | 6,458,254 |
Other Real Estate Owned | ||||||||
2015 | 2014 | |||||||
Balance as of January 1 | $ | 3,507,153 | $ | 2,628,418 | ||||
Property acquired at foreclosure | 125,000 | 2,914,958 | ||||||
Capital improvements on foreclosed property | 98,929 | 48,961 | ||||||
Sale of other real estate owned financed by Bank | (328,129 | ) | (780,097 | ) | ||||
Sales of foreclosed properties | (737,663 | ) | (1,029,452 | ) | ||||
Write down of OREO | (537,605 | ) | (275,635 | ) | ||||
Balance as of December 31 | $ | 2,127,685 | $ | 3,507,153 |
December 31, | ||||||||
2015 | 2014 | |||||||
Noninterest bearing demand deposits | $ | 134,786,875 | $ | 112,197,722 | ||||
Savings and interest bearing demand deposits: | ||||||||
Interest checking accounts | 108,459,597 | 119,593,529 | ||||||
Savings accounts | 90,383,486 | 64,249,199 | ||||||
Time Deposits: | ||||||||
Balances of less than $100,000 | 107,415,244 | 115,651,329 | ||||||
Balances of $100,000 and more | 53,624,554 | 79,812,757 | ||||||
Total Deposits | $ | 494,669,756 | $ | 491,504,536 |
2016 | $ | 68,800,143 | ||
2017 | 38,529,664 | |||
2018 | 27,310,066 | |||
2019 | 12,595,076 | |||
2020 and after | 13,804,849 | |||
Total | $ | 161,039,798 |
Maximum | Weighted | |||||||||||||||||||
Outstanding | Outstanding | Average | Average | Year End | ||||||||||||||||
at any | at | Balance | Interest | Interest | ||||||||||||||||
Month End | Year End | Outstanding | Rate | Rate | ||||||||||||||||
2015 | ||||||||||||||||||||
Federal funds purchased | $ | 8,843,000 | $ | 959,217 | $ | 833,907 | .02 | % | .78 | % | ||||||||||
FHLB short term | 45,000 ,000 | 20,000,000 | 26,739,726 | .16 | % | .19 | % | |||||||||||||
Securities sold under agreements to repurchase | 4,697,341 | 3,994,834 | 4,443,753 | .04 | % | .25 | % | |||||||||||||
Totals | $ | 24,954,051 | $ | 32,017,386 | .21 | % | .22 | % | ||||||||||||
2014 | ||||||||||||||||||||
Federal funds purchased | $ | 491,000 | $ | - | $ | 7,704 | .001 | % | .61 | % | ||||||||||
FHLB short term | 10,000 ,000 | 10,000,000 | 27,397 | .001 | % | .17 | % | |||||||||||||
Securities sold under agreements to repurchase | 5,066,238 | 4,358,492 | 3,837,612 | .23 | % | .24 | % | |||||||||||||
Totals | $ | 14,358,492 | $ | 3,872,713 | .23 | % | .23 | % |
2016 | $ | 3,929,000 | ||
2017 | 3,929,000 | |||
2018 | 8,929,000 | |||
2019 | 6,429,000 | |||
2020 | 13,929,000 | |||
Thereafter | 11,016,000 | |||
Total | $ | 48,161,000 |
2015 | 2014 | 2013 | ||||||||||
Current expense | ||||||||||||
Federal | $ | 3,227,013 | $ | 1,777,598 | $ | 482,912 | ||||||
Deferred (benefit) expense | ||||||||||||
Federal | (340,941 | ) | 505,684 | 636,452 | ||||||||
State | - | 9,854 | (67,594 | ) | ||||||||
Total Deferred (benefit) expense | (340,941 | ) | 515,538 | 568,858 | ||||||||
Total Income Tax Expense | $ | 2,886,072 | $ | 2,293,136 | $ | 1,051,770 |
Deferred Tax Assets: | 2015 | 2014 | ||||||
Allowance for loan losses | $ | 2,564,214 | $ | 2,201,291 | ||||
Split Dollar Life Insurance | 4,440 | 4,440 | ||||||
Nonqualified deferred compensation | 702,440 | 594,132 | ||||||
Low income housing partnerships losses | 210,107 | 308,539 | ||||||
Core deposit amortization | 176,605 | 72,188 | ||||||
Other real estate owned | 269,610 | 3,746 | ||||||
Pension plan | 1,382,268 | 1,199,686 | ||||||
Total Assets | $ | 5,309,684 | $ | 4,384,022 |
Deferred Tax Liabilities: | 2015 | 2014 | ||||||
Unearned low income housing credits | $ | 418,416 | $ | 523,769 | ||||
Depreciation | 359,406 | 320,743 | ||||||
Pension | 1,988,736 | 1,864,964 | ||||||
Goodwill tax amortization | 901,340 | 853,880 | ||||||
Securities available for sale | 1,757 | 1,272 | ||||||
Total Liabilities | 3,669,655 | 3,564,628 | ||||||
Net Deferred Tax Asset (included in Other Assets on Balance Sheet) | $ | 1,640,029 | $ | 819,394 |
2015 | 2014 | 2013 | ||||||||||
Tax expense at federal statutory rates | $ | 3,843,048 | $ | 2,959,056 | $ | 2,251,851 | ||||||
Increases (decreases) in taxes resulting from: | ||||||||||||
State income taxes, net of federal benefit | 8,087 | 8,659 | 9,229 | |||||||||
Partially tax-exempt income | (46,348 | ) | (54,529 | ) | (44,676 | ) | ||||||
Tax-exempt income | (222,672 | ) | (190,192 | ) | (197,482 | ) | ||||||
Prior year LIH credits | (132,028 | ) | (21,787 | ) | (61,768 | ) | ||||||
LIH and historic credits | (568,854 | ) | (484,955 | ) | (611,795 | ) | ||||||
Deferred Tax Asset Valuation Allowance - reversal | - | 396,440 | - | |||||||||
Other | 4,840 | (112,714 | ) | (2,710 | ) | |||||||
Total Income Tax Expense | $ | 2,886,072 | $ | 2,293,136 | $ | 1,051,770 |
2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||
Change in Benefit Obligation | |||||||||||||||
Benefit obligation, beginning | $ | 10,777,415 | $ | 7,933,568 | $ | 8,931,940 | $12,475 | $10,944 | $10,777 | ||||||
Service cost | 648,334 | 501,032 | 599,933 | 696 | 632 | 648 | |||||||||
Interest cost | 410,944 | 377,706 | 350,314 | 487 | 453 | 411 | |||||||||
Actuarial gain (loss) | (137,048 | ) | 2,030,583 | (1,300,094 | ) | ||||||||||
Actuarial (gain) loss | 1,620 | 872 | (137) | ||||||||||||
Benefits paid | (754,987 | ) | (65,474 | ) | (648,525 | ) | (175) | (426) | (754) | ||||||
Benefit obligation, ending | $ | 10,944,658 | $ | 10,777,415 | $ | 7,933,568 | $15,103 | $12,475 | $10,945 | ||||||
Change in Plan Assets | |||||||||||||||
Fair value of plan assets, beginning | $ | 11,683,845 | $ | 9,687,226 | $ | 8,123,437 | $12,032 | $11,678 | $11,684 | ||||||
Actual return on plan assets | (640 | ) | 562,093 | 1,462,314 | 1,788 | 780 | (1) | ||||||||
Employer contribution | 750,000 | 1,500,000 | 750,000 | - | 750 | ||||||||||
Benefits paid | (754,987 | ) | (65,474 | ) | (648,525 | ) | (175) | (426) | (755) | ||||||
Fair value of plan assets, ending | 11,678,218 | 11,683,845 | 9,687,226 | $13,645 | $12,032 | $11,678 | |||||||||
Funded status at the end of the year | $ | 733,560 | $ | 906,430 | $ | 1,753,658 | $(1,458) | $(443) | $733 |
2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||
Amount recognized in the Balance Sheet | |||||||||||||||
Accrued prepaid benefit cost | $ | 4,799,051 | $ | 4,434,917 | $ | 3,136,277 | |||||||||
Amount recognized in the Consolidated Balance Sheet | |||||||||||||||
Prepaid benefit cost | $3,760 | $4,361 | $4,799 | ||||||||||||
Unfunded pension benefit obligation under ASC 325-960 | (4,065,491 | ) | (3,528,487 | ) | (1,382,619 | ) | (5,218) | (4,804) | (4,065) | ||||||
Deferred taxes | 1,096 | 1,633 | 1,382 | ||||||||||||
Amount recognized in accumulated other | |||||||||||||||
comprehensive income | |||||||||||||||
Net Gain/(Loss) | $ | (4,137,855 | ) | $ | (3,616,087 | ) | $ | (1,485,455 | ) | ||||||
comprehensive income (loss) | |||||||||||||||
Net loss | $(5,260) | $(4,861) | $(4,137) | ||||||||||||
Prior service cost | 72,364 | 87,600 | 102,836 | 42 | 57 | 72 | |||||||||
Amount recognized | (4,065,491 | ) | (3,528,487 | ) | (1,382,619 | ) | (5,218) | (4,804) | (4,065) | ||||||
Deferred Taxes | 1,382,267 | 1,199,686 | 470,090 | ||||||||||||
Amount recognized in accumulated | |||||||||||||||
comprehensive income | $ | (2,683,224 | ) | $ | (2,328,801 | ) | $ | (912,529 | ) | ||||||
Deferred taxes | 1,096 | 1,633 | 1,382 | ||||||||||||
Amount recognized in accumulated comprehensive income | $(4,122) | $(3,171) | $(2,683) | ||||||||||||
(Accrued) Prepaid benefit detail | |||||||||||||||
Prepaid benefit detail | |||||||||||||||
Benefit obligation | $ | (10,944,658 | ) | $ | (10,777,415 | ) | $ | (7,933,568 | ) | $(15,103) | $(12,475) | $(10,945) | |||
Fair value of assets | 11,678,218 | 11,683,845 | 9,687,226 | 13,645 | 12,032 | 11,678 | |||||||||
Unrecognized net actuarial loss | 4,137,855 | 3,616,087 | 1,485,455 | 5,260 | 4,861 | 4,138 | |||||||||
Unrecognized prior service cost | (72,364 | ) | (87,600 | ) | (102,836 | ) | (42) | (57) | (72) | ||||||
Prepaid (accrued) benefits | $ | 4,799,051 | $ | 4,434,917 | $ | 3,136,277 | $3,760 | $4,361 | $4,799 | ||||||
Components of net periodic benefit cost | |||||||||||||||
Service cost | $ | 648,334 | $ | 501,032 | $ | 599,933 | $696 | $632 | $648 | ||||||
Interest cost | 410,944 | 377,706 | 350,314 | 487 | 452 | 411 | |||||||||
Expected return on plan assets | (838,818 | ) | (698,252 | ) | (636,081 | ) | (851) | (854) | (839) | ||||||
Amortization of prior service cost | (15,236 | ) | (15,236 | ) | (15,236 | ) | (15) | ||||||||
Recognized net actuarial (gain) loss | 180,642 | 36,110 | 203,183 | ||||||||||||
Recognized net actuarial loss | 284 | 223 | 181 | ||||||||||||
Net periodic benefit cost | $ | 385,866 | $ | 201,360 | $ | 502,113 | $601 | $438 | $386 | ||||||
Other changes in plan assets and benefit obligations | |||||||||||||||
recognized in other comprehensive income (loss) | |||||||||||||||
Net loss | $399 | $724 | $522 | ||||||||||||
Amortization of prior service cost | 15 | ||||||||||||||
Total recognized in other comprehensive income | $414 | $739 | $537 | ||||||||||||
Total recognized in net periodic benefit cost and other | |||||||||||||||
comprehensive income (loss) | $1,015 | $1,177 | $923 | ||||||||||||
Additional disclosure information | |||||||||||||||
Accumulated benefit obligation | $ | 7,601,249 | $ | 7,543,340 | $ | 5,474,048 | $10,760 | $8,789 | $7,601 | ||||||
Vested benefit obligation | $ | 7,539,365 | $ | 7,408,014 | $ | 5,388,808 | $10,750 | $8,780 | $7,539 | ||||||
Discount rate used for net pension cost | 4.00 | % | 5.00 | % | 4.00 | % | 4.00% | 4.25% | 4.00% | ||||||
Discount rate used for disclosure | 4.25 | % | 4.00 | % | 5.00 | % | 3.50% | 4.00% | 4.25% | ||||||
Expected return on plan assets | 7.50 | % | 7.50 | % | 8.00 | % | 7.25% | 7.50% | |||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.00% | ||||||||
Average remaining service (years) | 13 | 14 | 14 | 12 | 13 |
2016 | $ | 582,606 | |||
2017 | 48,333 | ||||
2018 | 1,249,321 | $1,862 | |||
2019 | 662,704 | 698 | |||
2020 | 543,814 | 264 | |||
2021-2025 | 4,568,645 | ||||
2021 | 179 | ||||
2022 | 2,867 | ||||
2023-2027 | 7,151 | ||||
$ | 7,655,423 | $13,021 |
2015 | 2014 | 2017 | 2016 | |||||||
Commitments to loan money | $ | 135,138,834 | $ | 120,922,771 | ||||||
Commitments to extend credit | $170,798 | $148,060 | ||||||||
Standby letters of credit | 1,344,191 | 2,077,870 | 1,533 | 1,089 | ||||||
2016 | $ | 160,882 | |||
2017 | 116,899 | ||||
2018 | 73,226 | $177 | |||
2019 | 74,349 | 150 | |||
2020 | 75,500 | 128 | |||
2021 | 110 | ||||
2022 | 105 |
2015 | 2014 | 2017 | 2016 | |||||||
Notional amount | $ | 189,629 | $ | 87,782 | $184 | $190 | ||||
Fair market value of contracts | 15,162 | 32,795 | ||||||||
Fair value of contracts, included in other assets | 59 | 26 | ||||||||
2017 | 2016 | |
Total loans, beginning of year | $7,486 | $7,180 |
New loans | 6,803 | 4,701 |
Relationship change | 10,403 | 611 |
Repayments | (4,315) | (5,006) |
Total loans, end of year | $20,377 | $7,486 |
2015 | 2014 | |||||||
Total loans, beginning of year | $ | 7,449,140 | $ | 7,786,058 | ||||
New loans | 5,226,432 | 5,249,565 | ||||||
Relationship change | (44,948 | ) | - | |||||
Repayments | (5,450,520 | ) | (5,586,483 | ) | ||||
Total loans, end of year | $ | 7,180,104 | $ | 7,449,140 |
2015 | 2014 | |||||||||||||||
Estimated | Carrying | Estimated | Carrying | |||||||||||||
Fair Value | Value | Fair Value | Value | |||||||||||||
Financial Assets (in thousands) | ||||||||||||||||
Loans | $ | 555,762 | $ | 544,053 | $ | 551,338 | $ | 518,202 | ||||||||
Financial Liabilities | ||||||||||||||||
Time deposits | 162,524 | 161,040 | 196,826 | 195,464 | ||||||||||||
Long-term debt | 48,565 | 48,161 | 9,862 | 9,875 |
Level 1 | Valuation is based on quoted prices | ||
Level 2 – | Valuation is based on observable inputs including quoted prices in active |
Level 3 – | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are |
December 31, 2017 | Total | Level 1 | Level 2 | Level 3 |
U. S. Treasuries | $19,998 | $19,998 | $- | $- |
U.S. Government sponsored enterprises | 7,980 | - | 7,980 | - |
Mortgage-backed obligations of federal agencies | 502 | - | 502 | - |
Equity securities | 135 | - | 135 | - |
Total securities available for sale | $28,615 | $19,998 | $8,617 | - |
December 31, 2016 | Total | Level 1 | Level 2 | Level 3 |
U. S. Treasuries | $24,014 | $24,014 | $- | $- |
Mortgage-backed obligations of federal agencies | 634 | - | 634 | - |
Equity securities | 135 | - | 135 | - |
Total securities available for sale | $24,783 | $24,014 | $769 | - |
Fair Value at December 31, 2015 | Valuation Technique | Significant Unobservable Inputs | Range | ||||||||
Impaired Loans | $ | 11,315 | Discounted appraised value | Discount for selling costs and age of appraisals | 15%-55 | % | |||||
Other Real Estate Owned | $ | 2,128 | Discounted appraised value | Discount for selling costs and age of appraisals | 15%-55 | % |
Fair Value at December 31, 2014 | Valuation Technique | Significant Unobservable Inputs | Range | ||||||||
Impaired Loans | $ | 13,223 | Discounted appraised value | Discount for selling costs and age of appraisals | 15%-55 | % | |||||
Other Real Estate Owned | $ | 3,507 | Discounted appraised value | Discount for selling costs and age of appraisals | 15%-55 | % |
December 31, 2017 | Total | Level 1 | Level 2 | Level 3 |
Construction/Land Development | $3,337 | - | - | $3,337 |
Real Estate | 979 | - | - | 979 |
Dealer Finance | 35 | - | - | 35 |
Impaired loans | $4,351 | - | - | $4,351 |
December 31, 2016 | Total | Level 1 | Level 2 | Level 3 |
Construction/Land Development | $4,739 | - | - | $4,739 |
Real Estate | 985 | - | - | 985 |
Commercial Real Estate | 892 | - | - | 892 |
Dealer Finance | 67 | - | - | 67 |
Impaired loans | $6,683 | - | - | $6,683 |
December 31, 2015 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
U. S. Treasuries | $ | 4,021 | $ | - | $ | 4,021 | $ | - | ||||||||
Government sponsored enterprises | 8,074 | - | 8,074 | - | ||||||||||||
Mortgage-backed obligations of federal agencies | 817 | - | 817 | - | ||||||||||||
Marketable equities | 135 | - | 135 | - | ||||||||||||
Investment securities available for sale | 13,047 | - | 13,047 | - | ||||||||||||
Total assets at fair value | $ | 13,047 | $ | - | $ | 13,047 | $ | - | ||||||||
Total liabilities at fair value | $ | - | $ | - | $ | - | $ | - | ||||||||
Derivative financial instruments at fair value | $ | 15 | $ | - | $ | 15 | $ | - |
Fair Value at December 31, 2017 | Valuation Technique | Significant Unobservable Inputs | Range | |
Impaired Loans | $4,351 | Discounted appraised value | Discount for selling costs and marketability | 3%-19% (Average 5.5%) |
December 31, 2014 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
U. S. Treasuries | $ | 4,020 | $ | - | $ | 4,020 | $ | - | ||||||||
Government sponsored enterprises | 8,038 | - | 8,038 | - | ||||||||||||
Mortgage-backed obligations of federal agencies | 1,022 | - | 1,022 | - | ||||||||||||
Marketable equities | 135 | - | 135 | - | ||||||||||||
Investment securities available for sale | 13,215 | - | 13,215 | - | ||||||||||||
Total assets at fair value | $ | 13,215 | $ | - | $ | 13,215 | $ | - | ||||||||
Total liabilities at fair value | $ | - | $ | - | $ | - | $ | - | ||||||||
Derivative financial instruments at fair value | $ | 33 | $ | - | $ | 33 | $ | - |
Fair Value at December 31, 2016 | Valuation Technique | Significant Unobservable Inputs | Range | |
Impaired Loans | $6,683 | Discounted appraised value | Discount for selling costs and marketability | 2%-50% (Average 4.7%) |
December 31, 2017 | Total | Level 1 | Level 2 | Level 3 |
Other real estate owned | $1,984 | - | - | $1,984 |
December 31, 2016 | Total | Level 1 | Level 2 | Level 3 |
Other real estate owned | $2,076 | - | - | $2,076 |
December 31, 2015 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Other Real Estate Owned | $ | 2,128 | - | - | $ | 2,128 | ||||||||||
- | - | |||||||||||||||
Construction/Land Development | 9,161 | - | - | 9,161 | ||||||||||||
Farmland | - | - | - | - | ||||||||||||
Real Estate | 85 | - | - | 85 | ||||||||||||
Multi-Family | - | - | - | - | ||||||||||||
Commercial Real Estate | 872 | - | - | 872 | ||||||||||||
Home Equity – closed end | - | - | - | - | ||||||||||||
Home Equity – open end | 1,145 | - | - | 1,145 | ||||||||||||
Commercial & Industrial – Non-Real Estate | - | - | - | - | ||||||||||||
Consumer | - | - | - | - | ||||||||||||
Credit cards | - | - | - | - | ||||||||||||
Dealer Finance | 52 | - | - | 52 | ||||||||||||
Impaired loans | 11,315 | - | - | 11,315 | ||||||||||||
Total assets at fair value | $ | 13,443 | - | $ | - | $ | 13,443 | |||||||||
Total liabilities at fair value | $ | - | $ | - | $ | - | $ | - |
Fair Value at December 31, 2017 | Valuation Technique | Significant Unobservable Inputs | Range | |
Other real estate owned | $1,984 | Discounted appraised value | Discount for selling costs | 5%-15% (Average 8%) |
Fair Value at December 31, 2016 | Valuation Technique | Significant Unobservable Inputs | Range | |
Other real estate owned | $2,076 | Discounted appraised value | Discount for selling costs | 5%-15% (Average 8%) |
Fair Value Measurements at December 31, 2017 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, 2016 |
Assets: | |||||
Cash and cash equivalents | $11,907 | $11,907 | $- | $- | $11,907 |
Securities | 28,740 | 19,998 | 8,742 | - | 28,740 |
Loans held for sale | 39,775 | - | 39,775 | - | 39,775 |
Loans held for investment, net | 610,930 | - | - | 646,703 | 646,703 |
Interest receivable | 2,007 | - | 2,007 | - | 2,007 |
Bank owned life insurance | 13,950 | - | 13,950 | - | 13,950 |
Total | $707,309 | $31,905 | $64,474 | $646,703 | $743,082 |
Liabilities: | |||||
Deposits | $569,177 | $- | $403,907 | $167,210 | $571,117 |
Short-term debt | 25,296 | - | 25,296 | - | 25,296 |
Long-term debt | 49,733 | - | - | 49,869 | 49, 869 |
Interest payable | 260 | - | 260 | - | 260 |
Total | $644,466 | $- | $429,463 | $217,079 | $646,542 |
Fair Value Measurements at December 31, 2016 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, 2016 |
Assets: | |||||
Cash and cash equivalents | $16,355 | $16,355 | $- | $- | $16,355 |
Securities | 24,908 | 24,014 | 894 | - | 24,908 |
Loans held for sale | 62,735 | - | 62,735 | - | 62,735 |
Loans held for investment, net | 584,093 | - | - | 598,991 | 598,991 |
Interest receivable | 1,785 | - | 1,785 | - | 1,785 |
Bank owned life insurance | 13,513 | - | 13,513 | - | 13,513 |
Total | $703,389 | $40,369 | $78,927 | $598,991 | $718,287 |
Liabilities: | |||||
Deposits | $537,085 | $- | $379,857 | $158,073 | $537,930 |
Short-term debt | 40,000 | - | 40,000 | - | 40,000 |
Long-term debt | 64,237 | - | - | 63,945 | 63,945 |
Interest payable | 228 | - | 228 | - | 228 |
Total | $641,550 | $- | $420,085 | $222,018 | $642,103 |
December 31, 2014 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Other Real Estate Owned | $ | 3,507 | - | - | $ | 3,507 | ||||||||||
- | - | |||||||||||||||
Construction/Land Development | 11,507 | - | - | 11,507 | ||||||||||||
Farmland | - | - | - | - | ||||||||||||
Real Estate | 825 | - | - | 825 | ||||||||||||
Multi-Family | - | - | - | - | ||||||||||||
Commercial Real Estate | 891 | - | - | 891 | ||||||||||||
Home Equity – closed end | - | - | - | - | ||||||||||||
Home Equity – open end | - | - | - | - | ||||||||||||
Commercial & Industrial – Non-Real Estate | - | - | - | - | ||||||||||||
Consumer | - | - | - | - | ||||||||||||
Credit cards | - | - | - | - | ||||||||||||
Dealer Finance | - | - | - | - | ||||||||||||
Impaired loans | 13,223 | - | - | 13,223 | ||||||||||||
Total assets at fair value | $ | 16,730 | - | $ | - | $ | 16,730 | |||||||||
Total liabilities at fair value | $ | - | $ | - | $ | - | $ | - |
Actual | Minimum Capital Requirement | Minimum to be Well Capitalized Under Prompt Corrective Action Provisions | ||||
December 31, 2017 | Amount | Ratio | Amount | Ratio | Amount | Ratio |
Total risk-based ratio | $95,563 | 15.41% | $49,614 | 8.00% | $62,018 | 10.00% |
Tier 1 risk-based ratio | 89,519 | 14.43% | 37,211 | 6.00% | 49,614 | 8.00% |
Common equity tier 1 | 89,519 | 14.43% | 27,908 | 4.50% | 40,312 | 6.50% |
Total assets leverage ratio | 89,519 | 12.07% | 29,656 | 4.00% | 37,070 | 5.00% |
Actual | Minimum Capital Requirement | Minimum to be Well Capitalized Under Prompt Corrective Action Provisions | ||||
December 31, 2016 | Amount | Ratio | Amount | Ratio | Amount | Ratio |
Total risk-based ratio | $93,519 | 15.08% | $49,615 | 8.00% | $62,019 | 10.00% |
Tier 1 risk-based ratio | 85,976 | 13.86% | 37,212 | 6.00% | 49,615 | 8.00% |
Common equity tier 1 | 85,976 | 13.86% | 27,909 | 4.50% | 40,312 | 6.50% |
Total assets leverage ratio | 85,976 | 11.83% | 29,065 | 4.00% | 36,331 | 5.00% |
December 31, 2017 | |||||||
F&M Bank | VBS Mortgage | TEB Life/FMFS | VS Title | Parent Only | Eliminations | F&M Bank Corp. Consolidated | |
Revenues: | |||||||
Interest Income | $33,904 | $125 | $148 | $- | $- | $(82) | $34,095 |
Service charges on deposits | 1,360 | - | - | - | - | - | 1,360 |
Investment services and insurance income | 1 | - | 772 | - | - | (18) | 755 |
Mortgage banking income, net | - | 2,220 | - | - | - | - | 2,220 |
Title insurance income | - | 279 | - | 883 | - | - | 1,162 |
Gain on prepayment of long-term debt | 504 | - | - | - | - | - | 504 |
Loss on sale of investments | - | (40) | (2) | - | - | - | (42) |
Other operating income | 2,128 | - | - | - | 162 | (357) | 1,933 |
Total income | 37,897 | 2,584 | 918 | 883 | 162 | (457) | 41,987 |
Expenses: | |||||||
Interest Expense | 3,904 | 75 | - | - | - | (82) | 3,897 |
Provision for loan losses | - | - | - | - | - | - | - |
Salaries and benefits | 12,092 | 1,733 | 474 | 555 | - | - | 14,854 |
Other operating expenses | 8,942 | 672 | 51 | 172 | 46 | (18) | 9,865 |
Total expense | 24,938 | 2,480 | 525 | 727 | 46 | (100) | 28,616 |
Income before income taxes | 12,959 | 104 | 393 | 156 | 116 | (357) | 13,371 |
Income tax expense (benefit) | 4,316 | - | 109 | - | (95) | - | 4,330 |
Net income | $8,643 | $104 | $284 | $156 | $211 | $(357) | $9,041 |
Net income attributable to noncontrolling interest | - | 31 | - | - | - | - | 31 |
Net Income attributable to F & M Bank Corp. | $8,643 | $73 | $284 | $156 | $211 | $(357) | $9,010 |
Total Assets | $754,375 | $7,018 | $6,749 | $811 | $90,964 | $(106,647) | $753,270 |
Goodwill | $2,670 | $47 | $- | $- | $164 | $- | $2,881 |
Analysis of Capital | Regulatory Requirements | ||||||||||||||||||
At December 31, | Adequately | Well | |||||||||||||||||
2015 | 2014 | 2013 | Capitalized | Capitalized | |||||||||||||||
Tier1 capital: | |||||||||||||||||||
Preferred stock | $ | 9,425 | $ | 9,425 | $ | - | |||||||||||||
Common stock | 16,427 | 16,459 | 12,559 | ||||||||||||||||
Retained earnings | 59,205 | 53,815 | 42,089 | ||||||||||||||||
Intangible assets | (2,670 | ) | (2,670 | ) | (2,670 | ) | |||||||||||||
Accumulated other comprehensive income | (2,680 | ) | - | - | |||||||||||||||
Total Tier 1 Capital | $ | 79,707 | $ | 77,029 | $ | 51,978 | |||||||||||||
Tier 2 capital: | |||||||||||||||||||
Qualifying subordinated debt | $ | - | $ | - | $ | 8,487 | |||||||||||||
Allowance for loan losses | 7,073 | 6,018 | 5,389 | ||||||||||||||||
Unrealized gains on AFS equity securities | - | - | - | ||||||||||||||||
Total risked based capital | $ | 86,780 | $ | 83,047 | $ | 65,854 | |||||||||||||
Common Equity Tier 1 Capital (Tier 1 less preferred stock) | $ | 70,282 | $ | - | $ | - | |||||||||||||
Risk-weighted assets | $ | 564,106 | $ | 478,725 | $ | 428,349 | |||||||||||||
Capital ratios: | |||||||||||||||||||
Total risk-based ratio | 15.38 | % | 17.35 | % | 15.37 | % | 8.00 | % | 10.00 | % | |||||||||
Tier 1 risk-based ratio | 14.13 | % | 16.09 | % | 12.13 | % | 4.00 | % | 6.00 | % | |||||||||
Common equity tier 1 | 12.46 | % | 4.5 | % | 6.5 | % | |||||||||||||
Total assets leverage ratio | 12.18 | % | 12.88 | % | 9.37 | % | 3.00 | % | 5.00 | % |
Analysis of Capital | Regulatory Requirements | |||||||||||||||||||
At December 31, | Adequately | Well | ||||||||||||||||||
2015 | 2014 | 2013 | Capitalized | Capitalized | ||||||||||||||||
Common Equity Tier 1 capital: | ||||||||||||||||||||
Common stock | $ | 500 | $ | 500 | $ | 500 | ||||||||||||||
Capital surplus | 37,971 | 37,971 | 18,971 | |||||||||||||||||
Retained earnings | 45,855 | 40,114 | 35,361 | |||||||||||||||||
Intangible assets | (2,670 | ) | (2,670 | ) | (2,670 | ) | ||||||||||||||
Accumulated other comprehensive income | (2,680 | ) | - | - | ||||||||||||||||
Total Common Equity Tier 1 Capital | $ | 78,976 | $ | 75,915 | $ | 52,162 | ||||||||||||||
Tier 2 capital: | ||||||||||||||||||||
Qualifying subordinated debt | $ | - | $ | - | $ | 8,487 | ||||||||||||||
Allowance for loan losses | 7,077 | 6,006 | 5,384 | |||||||||||||||||
Unrealized gains on AFS securities | - | - | - | |||||||||||||||||
Total risked based capital | $ | 86,053 | $ | 81,921 | $ | 66,033 | ||||||||||||||
Risk-weighted assets | $ | 564,469 | $ | 478,512 | $ | 427,957 | ||||||||||||||
Capital ratios: | ||||||||||||||||||||
Total risk-based ratio | 15.24 | % | 17.12 | % | 15.43 | % | 8.00 | % | 10.00 | % | ||||||||||
Tier 1 risk-based ratio | 13.99 | % | 15.86 | % | 12.19 | % | 4.00 | % | 6.00 | % | ||||||||||
Common equity tier 1 | 13.99 | % | 4.5 | % | 6.5 | % | ||||||||||||||
Total assets leverage ratio | 12.06 | % | 12.70 | % | 9.41 | % | 3.00 | % | 5.00 | % |
2015 | 2014 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,907,581 | $ | 1,214,140 | ||||
Investment in subsidiaries | 81,646,312 | 76,684,121 | ||||||
Securities available for sale | 135,000 | 135,000 | ||||||
Income tax receivable (including due from subsidiary) | - | 453,585 | ||||||
Total Assets | $ | 83,688,893 | $ | 78,486,846 | ||||
Liabilities | ||||||||
Other liabilities | $ | - | $ | 137,977 | ||||
Income tax payable (including due form subsidiary) | 847,001 | - | ||||||
Deferred income taxes | 301,870 | 383,125 | ||||||
Demand obligations for low income housing investment | 162,290 | 167,341 | ||||||
Total Liabilities | $ | 1,311,161 | $ | 688,443 | ||||
Stockholders’ Equity | ||||||||
Preferred stock par value $5 per share, 400,000 shares authorized, issued and outstanding | $ | 9,425,123 | $ | 9,425,123 | ||||
Common stock par value $5 per share, 6,000,000 shares authorized, 3,285,404 and 3,291,766 shares issued and outstanding for 2015 and 2014, respectively | 16,427,020 | 16,458,830 | ||||||
Retained earnings | 59,205,404 | 53,814,416 | ||||||
Noncontrolling interest | - | 426,365 | ||||||
Accumulated other comprehensive income (loss) | (2,679,815 | ) | (2,326,331 | ) | ||||
Total Stockholders' Equity | 82,377,732 | 77,798,403 | ||||||
Total Liabilities and Stockholders' Equity | $ | 83,688,893 | $ | 78,486,846 |
December 31, 2016 | |||||||
F&M Bank | VBS Mortgage | TEB Life/FMFS | VS Title | Parent Only | Eliminations | F&M Bank Corp. Consolidated | |
Revenues: | |||||||
Interest Income | $31,949 | $55 | $152 | $- | $- | $(6) | $32,150 |
Service charges on deposits | 1,174 | - | - | - | - | - | 1,174 |
Investment services and insurance income | 1 | - | 470 | - | - | (30) | 441 |
Mortgage banking income, net | - | 2,565 | - | - | - | - | 2,565 |
Title insurance income | - | - | - | - | - | - | - |
Gain on prepayment of long-term debt | - | - | - | - | - | - | - |
Loss on investments | - | - | - | - | - | - | - |
Other operating income | 2,353 | - | - | - | - | (951) | 1,402 |
Total income | 35,477 | 2,620 | 622 | - | - | (987) | 37,732 |
Expenses: | |||||||
Interest Expense | 3,605 | - | - | - | - | (6) | 3,599 |
Provision for loan losses | - | - | - | - | - | - | - |
Salaries and benefits | 11,123 | 1,387 | 290 | - | - | - | 12,800 |
Other operating expenses | 8,139 | 586 | 66 | - | 1 | (320) | 8,472 |
Total expense | 22,867 | 1,973 | 356 | - | 1 | (326) | 24,871 |
Income before income taxes | 12,610 | 647 | 266 | - | (1) | (661) | 12,861 |
Income tax expense (benefit) | 3,290 | - | 58 | - | (249) | - | 3,099 |
Net income | $9,320 | $647 | $208 | $- | $248 | $(661) | $9,762 |
Net income attributable to noncontrolling interest | - | 194 | - | - | - | - | 194 |
Net Income attributable to F & M Bank Corp. | $9,320 | $453 | $208 | $- | $248 | $(661) | $9,568 |
Total Assets | $748,273 | $7,487 | $6,476 | $- | $87,449 | $(104,796) | $744,889 |
Goodwill | $2,670 | $- | $- | $- | $- | $- | $2,670 |
December 31, 2015 | |||||||
F&M Bank | VBS Mortgage | TEB Life/FMFS | VS Title | Parent Only | Eliminations | F&M Bank Corp. Consolidated | |
Revenues: | |||||||
Interest Income | $29,206 | $51 | $152 | $- | $- | $(5) | $29,404 |
Service charges on deposits | 963 | - | - | - | - | - | 963 |
Investment services and insurance income | 2 | - | 522 | - | - | (14) | 510 |
Mortgage banking income, net | - | 2,066 | - | - | - | - | 2,066 |
Title insurance income | - | - | - | - | - | - | - |
Gain on prepayment of long-term debt | - | - | - | - | - | - | - |
Loss on investments | - | - | - | - | - | - | - |
Other operating income | 2,142 | - | - | - | 5 | (893) | 1,254 |
Total income | 32,313 | 2,117 | 674 | - | 5 | (912) | 34,197 |
Expenses: | |||||||
Interest Expense | 2,881 | - | - | - | - | (5) | 2,876 |
Provision for loan losses | 300 | - | - | - | - | - | 300 |
Salaries and benefits | 10,056 | 1,103 | 298 | - | - | - | 11,457 |
Other operating expenses | 7,887 | 466 | 35 | - | 21 | (312) | 8,097 |
Total expense | 21,124 | 1,569 | 333 | - | 21 | (317) | 22,730 |
Income before income taxes | 11,189 | 548 | 341 | - | (16) | (595) | 11,467 |
Income tax expense (benefit) | 2,948 | - | 129 | - | (191) | - | 2,886 |
Net income | $8,241 | $548 | $212 | $- | $175 | $(595) | $8,581 |
Net income attributable to noncontrolling interest | - | 164 | - | - | - | - | 164 |
Net Income attributable to F & M Bank Corp. | $8,241 | $384 | $212 | $- | $175 | $(595) | $8,417 |
Total Assets | $669,968 | $2,180 | $6,269 | $- | $84,897 | $(97,957) | $665,357 |
Goodwill | $2,670 | $- | $- | $- | $- | $- | $2,670 |
2015 | 2014 | 2013 | ||||||||||
Income | ||||||||||||
Dividends from affiliate | $ | 2,500,000 | $ | 1,300,000 | $ | 1,550,000 | ||||||
Interest Income | - | - | 5 | |||||||||
Net limited partnership income (loss) | 4,792 | - | (65,165 | ) | ||||||||
Total Income | 2,504,792 | 1,300,000 | 1,484,840 | |||||||||
Expenses | ||||||||||||
Other expense | 21,316 | 7,100 | - | |||||||||
Administrative expenses | - | - | 60,209 | |||||||||
Total Expenses | 21,316 | 7,100 | 60,209 | |||||||||
Net income before income tax expense (benefit) | ||||||||||||
and undistributed subsidiary net income | 2,483,476 | 1,292,900 | 1,424,631 | |||||||||
Income Tax Expense (Benefit) | (191,494 | ) | 243,492 | (239,908 | ) | |||||||
Income before undistributed subsidiary | ||||||||||||
net income | 2,674,970 | 1,049,408 | 1,664,539 | |||||||||
Undistributed subsidiary net income | 5,742,039 | 4,752,201 | 3,051,254 | |||||||||
Net Income F&M Bank Corp. | $ | 8,417,009 | $ | 5,801,609 | $ | 4,715,793 |
2017 | 2016 | |
Assets | ||
Cash and cash equivalents | $917 | $1,155 |
Investment in subsidiaries | 88,967 | 85,481 |
Securities available for sale | 135 | 135 |
Income tax receivable (including due from subsidiary) | 565 | - |
Goodwill and intangibles | 380 | - |
Total Assets | $90,964 | $86,771 |
Liabilities | ||
Income tax payable (including due from subsidiary) | $- | $313 |
Deferred income taxes | 177 | 307 |
Accrued expenses | 86 | - |
Demand obligations for low income housing investment | - | 162 |
Total Liabilities | $263 | $782 |
Stockholders’ Equity | ||
Preferred stock par value $5 per share, 400,000 shares authorized, 324,150 and 327,350 issued and outstanding at December 31, 2017 and 2016, respectively. | $7,529 | $7,609 |
Common stock par value $5 per share, 6,000,000 shares authorized, 3,255,036 and 3,270,315 shares issued and outstanding for 2016 and 2015, respectively | 16,275 | 16,352 |
Additional paid in capital | 10,225 | 10,684 |
Retained earnings | 60,814 | 54,509 |
Accumulated other comprehensive income (loss) | (4,142) | (3,165) |
Total Stockholders' Equity | 90,701 | 85,989 |
Total Liabilities and Stockholders' Equity | $90,964 | $86,771 |
2017 | 2016 | 2015 | |
Income | |||
Dividends from affiliate | $5,000 | $5,000 | $2,500 |
Net limited partnership income (loss) | 162 | - | 5 |
Total Income | 5,162 | 5,000 | 2,505 |
Expenses | |||
Total Expenses | 47 | 1 | 21 |
Net income before income tax expense (benefit) | |||
and undistributed subsidiary net income | 5,115 | 4,999 | 2,484 |
Income Tax Expense (Benefit) | (95) | (249) | (191) |
Income before undistributed subsidiary | |||
net income | 5,210 | 5,248 | 2,675 |
Undistributed subsidiary net income | 3,800 | 4,320 | 5,742 |
Net Income F&M Bank Corp. | $9,010 | $9,568 | $8,417 |
2015 | 2014 | 2013 | 2017 | 2016 | 2015 | ||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income | $ | 8,417,009 | $ | 5,801,609 | $ | 4,715,793 | $9,010 | $9,568 | $8,417 | ||||||
Adjustments to reconcile net income to net | |||||||||||||||
cash provided by operating activities: | |||||||||||||||
Undistributed subsidiary income | (5,742,039 | ) | (4,752,201 | ) | (3,051,254 | ) | (3,800) | (4,320) | (5,742) | ||||||
Deferred tax (benefit) expense | (81,256 | ) | 279,928 | 8,577 | (112) | 5 | (81) | ||||||||
Decrease (increase) in other assets | 1,300,586 | (444,885 | ) | (174,367 | ) | (1,256) | - | 1,300 | |||||||
Increase (decrease) in other liabilities | (143,028 | ) | 137,817 | (1,109,728 | ) | (77) | (535) | (143) | |||||||
Net change in deferred tax credits | - | - | (27,918 | ) | |||||||||||
Amortization of limited partnership investments | - | - | 65,165 | ||||||||||||
Net Cash Provided by Operating Activities | 3,751,272 | 1,022,268 | 426,268 | 3,765 | 4,718 | 3,751 | |||||||||
Cash Flows from Investing Activities | |||||||||||||||
Change in loans receivable | - | - | 1,000,000 | ||||||||||||
Purchase of securities available for sale | - | (135,000 | ) | - | |||||||||||
Net Cash Provided by (Used in) Investing Activities | - | (135,000 | ) | 1,000,000 | |||||||||||
Net Cash Used in Investing Activities | - | ||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||
Capital contributed to subsidiary | - | (19,000,000 | ) | - | |||||||||||
Proceeds from issuance of preferred stock | - | 9,425,123 | - | ||||||||||||
Repurchase of preferred stock | (101) | (1,961) | |||||||||||||
Repurchase of common stock | (289,119 | ) | - | - | (712) | (577) | (289) | ||||||||
Proceeds from issuance of common stock | 146,418 | 12,055,709 | 213,429 | 197 | 183 | 146 | |||||||||
Dividends paid in cash | (2,915,130 | ) | (2,231,912 | ) | (1,705,881 | ) | (3,387) | (3,115) | (2,915) | ||||||
Net Provided by (Cash Used) in Financing Activities | (3,057,831 | ) | 248,920 | (1,492,452 | ) | ||||||||||
Net Cash Used in Financing Activities | (4,003) | (5,470) | (3,058) | ||||||||||||
Net Increase (decreases) in Cash and Cash Equivalents | 693,441 | 1,136,188 | (66,184 | ) | |||||||||||
Net (Decrease) increase in Cash and Cash Equivalents | (238) | (752) | 693 | ||||||||||||
Cash and Cash Equivalents, Beginning of Year | 1,214,140 | 77,952 | 144,136 | 1,155 | 1,907 | 1,214 | |||||||||
Cash and Cash Equivalents, End of Year | $ | 1,907,581 | $ | 1,214,140 | $ | 77,952 | $917 | $1,155 | $1,907 |
2015 | 2014 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,071,293 | $ | 610,973 | ||||
Loans Receivable | 763,534 | 818,054 | ||||||
Property and equipment, net | 79,038 | 45,600 | ||||||
Other Assets | 266,073 | 162,304 | ||||||
Total Assets | $ | 2,179,938 | $ | 1,636,931 | ||||
Liabilities | ||||||||
Other liabilities | 271,004 | 215,713 | ||||||
Total Liabilities | $ | 271,004 | $ | 215,713 | ||||
Equity | ||||||||
Capital | 219,634 | 219,634 | ||||||
Retained earnings | 1,689,300 | 1,201,584 | ||||||
Total Equity | $ | 1,908,934 | $ | 1,421,218 | ||||
Total Liabilities and Equity | $ | 2,179,938 | $ | 1,636,931 |
2015 | 2014 | 2013 | ||||||||||
Income | ||||||||||||
Mortgage origination income | $ | 2,645,235 | $ | 1,907,804 | $ | 2,528,108 | ||||||
Other Income | 51,175 | 53,528 | 42,092 | |||||||||
Total Income | 2,696,410 | 1,961,332 | 2,570,200 | |||||||||
Expenses | ||||||||||||
Salaries and employee benefits | 1,413,107 | 1,105,902 | 1,461,797 | |||||||||
Occupancy and equipment expense | 212,858 | 177,014 | 164,717 | |||||||||
Management and professional fees | 290,102 | 321,053 | 301,558 | |||||||||
Other | 231,757 | 205,188 | 284,845 | |||||||||
Total Expenses | 2,147,824 | 1,809,157 | 2,212,917 | |||||||||
Net income(loss) | $ | 548,586 | $ | 152,175 | $ | 357,283 |
dollars in thousands | Unrealized Securities Gains (Losses) | Adjustments Related to Pension Plan | Accumulated Other Comprehensive Loss |
Balance at December, 31, 2014 | 3 | (2,330) | (2,327) |
Change in unrealized securities gains (losses), net of tax | 1 | - | 1 |
Change in unfunded pension liability, net of tax | - | (354) | (354) |
Balance at December, 31, 2015 | 4 | (2,684) | (2,680) |
Change in unrealized securities gains (losses), net of tax | 2 | - | 2 |
Change in unfunded pension liability, net of tax | - | (487) | (487) |
Balance at December, 31, 2016 | $6 | $(3,171) | $(3,165) |
Change in unrealized securities gains (losses), net of tax | (26) | - | (26) |
Change in unfunded pension liability, net of tax | - | (951) | (951) |
Balance at December, 31, 2017 | $(20) | $(4,122) | $(4,142) |
Consolidated Balance Sheets - December 31, | |
Consolidated Statements of Income - Years ended December 31, | |
Consolidated Statements of Comprehensive Income - Years ended December 31, | |
Consolidated Statements of Changes in Stockholders’ Equity – Years ended December 31, | |
Consolidated Statements of Cash Flows - Years ended December 31, 2015 | |
Notes to the Consolidated Financial Statements | |
By: | /s/ Dean W. Withers | March 16, 2018 | |||
Dean W. Withers | Date | ||||
Director | |||||
By: | /s/ Carrie A. Comer | March | |||
Carrie A. Comer | Date | ||||
Signature | Title | Date | ||
/s/ Larry A. Caplinger | Director | March | ||
Larry A. Caplinger | ||||
/s/ John N. Crist | Director | March | ||
John N. Crist | ||||
/s/ Ellen R. Fitzwater | Director, Chair | March | ||
Ellen R. Fitzwater | ||||
/s/ Daniel J. Harshman | Director | March | ||
Daniel J. Harshman | ||||
/s/ Richard S. Myers | Director | March | ||
Richard S. Myers | ||||
/s/ Michael W. Pugh | Director | March | ||
Michael W. Pugh | ||||
/s/ Christopher S. Runion | Director | March | ||
Christopher S. Runion | ||||
/s/ Ronald E. Wampler | Director | March | ||
Ronald E. Wampler | ||||
/s/ E. Ray Burkholder | Director | March | ||
E. Ray Burkholder | ||||
/s/ Peter H. Wray | Director | March 16, 2018 | ||
Peter H. Wray |