F & M Bank (FMBM) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 10, 2017
Document And Entity Information
Entity Registrant Name	F&M BANK CORP
Entity Central Index Key	740,806
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,269,052
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	[1]
Assets
Cash and due from banks	$ 8,801	$ 7,755
Money market funds	945	674
Federal funds sold	0	7,926
Cash and cash equivalents	9,746	16,355
Securities:
Held to maturity – fair value of $125 in 2017 and 2016	125	125
Available for sale	22,682	24,783
Other investments	13,600	14,567
Loans held for sale	58,177	62,735
Loans held for investment	619,960	591,636
Less: allowance for loan losses	(6,942)	(7,543)
Net loans held for investment	613,018	584,093
Other real estate owned	2,148	2,076
Bank premises and equipment, net	12,716	10,340
Interest receivable	1,845	1,785
Goodwill	3,113	2,670
Bank owned life insurance	13,841	13,513
Other assets	12,674	11,847
Total assets	763,685	744,889
Deposits:
Noninterest bearing	156,922	146,617
Interest bearing	405,458	390,468
Total deposits	562,380	537,085
Short-term debt	42,128	40,000
Accrued liabilities	17,181	16,885
Long-term debt	50,840	64,237
Total liabilities	672,529	658,207
Stockholders' Equity
Preferred stock $5 par value, 400,000 shares authorized, 324,150 and 327,350 Issued and outstanding for September 30, 2017 and December 31, 2016, respectively	7,529	7,609
Common stock, $5 par value, 6,000,000 shares authorized, 3,268,956 and 3,270,315 shares issued and outstanding for September 30, 2017 and December 31, 2016, respectively	16,345	16,352
Additional paid in capital - common stock	10,621	10,684
Retained earnings	59,233	54,509
Noncontrolling interest in consolidated subsidiaries	594	693
Accumulated other comprehensive loss	(3,166)	(3,165)
Total stockholders' equity	91,156	86,682
Total liabilities and stockholders' equity	$ 763,685	$ 744,889
[1]	2016 Derived from audited consolidated financial statements.

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Held to maturity - fair value	$ 125	$ 125
STOCKHOLDERS EQUITY:
Preferred Stock, par value	$ 5	$ 5
Preferred Stock shares authorized	400,000	400,000
Preferred Stock shares issued	324,150	327,350
Preferred Stock shares outstanding	324,150	327,350
Common stock, par value	$ 5	$ 5
Common stock shares authorized	6,000,000	6,000,000
Common stock shares issued	3,268,956	3,270,315
Common stock shares outstanding	3,268,956	3,270,315

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest and Dividend income
Interest and fees on loans held for investment	$ 8,221	$ 7,542	$ 23,830	$ 22,064
Interest and fees on loans held for sale	329	550	774	1,451
Interest from money market funds and federal funds sold	41	11	116	25
Interest on debt securities - taxable	97	112	234	253
Total interest and dividend income	8,688	8,215	24,954	23,793
Interest expense
Interest on deposits	698	609	1,947	1,757
Interest from short-term debt	14	9	46	35
Interest from long-term debt	318	352	868	853
Total interest expense	1,030	970	2,861	2,645
Net interest income	7,658	7,245	22,093	21,148
Provision for loan losses	0	0	0	0
Net interest income after provision for loan losses	7,658	7,245	22,093	21,148
Noninterest income
Service charges on deposit accounts	359	336	1,010	842
Investment services and insurance income	169	112	530	317
Mortgage banking income, net	861	694	1,974	1,891
Title insurance income	247	0	668	0
Income on bank owned life insurance	112	119	336	356
Low income housing partnership losses	(201)	(183)	(587)	(548)
ATM and check card fees	353	328	1,034	1,020
Gain on prepayment of long-term debt	0	0	504	0
Loss on sale of other investments			(42)	0
Other operating income	245	129	513	238
Total noninterest income	2,145	1,535	5,940	4,116
Noninterest expense
Salaries	3,194	2,471	8,502	7,161
Employee benefits	689	699	2,467	2,113
Occupancy expense	281	215	776	643
Equipment expense	224	183	613	569
FDIC insurance assessment	20	113	200	338
Other real estate owned, net	(4)	19	22	72
Marketing expense	147	128	404	396
Legal and professional fees	78	100	253	293
ATM and check card fees	183	184	529	518
Telecommunication and data processing expense	370	309	1,045	861
Directors fees	117	46	360	254
Bank franchise tax	167	170	491	480
Other operating expenses	793	823	2,464	2,176
Total noninterest expense	6,259	5,460	18,126	15,874
Income before income taxes	3,544	3,320	9,907	9,390
Income tax expense	946	654	2,633	2,187
Net Income	2,598	2,666	7,274	7,203
Net (income) loss attributable to noncontrolling interest	48	64	51	154
Net income attributable to F & M Bank Corp.	2,550	2,602	7,223	7,049
Dividends paid/accumulated on preferred stock	103	128	312	382
Net income available to common stockholders	$ 2,447	$ 2,474	$ 6,911	$ 6,667
Per Common Share Data
Net income - basic	$ 0.75	$ 0.75	$ 2.11	$ 2.03
Net income - diluted	.70	.70	1.99	1.89
Cash dividends on common stock	$ 0.24	$ .20	$ 0.69	$ 0.58
Weighted average shares outstanding - basic	3,270,969	3,286,756	3,271,863	3,286,165
Weighted average shares outstanding - diluted	3,632,607	3,731,156	3,634,856	3,730,565

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Income:
Net Income - F & M Bank Corp.	$ 2,550	$ 2,602	$ 7,223	$ 7,049
Net income (loss) attributable to noncontrolling interest	48	64	51	154
Total Net Income:	2,598	2,666	7,274	7,203
Unrealized holding gains (losses) on available-for-sale securities	0	(6)	(2)	32
Tax effect	0	2	1	(10)
Unrealized holding gain (loss), net of tax	0	(4)	(1)	22
Total other comprehensive income (loss)	0	(4)	(1)	22
Comprehensive income	$ 2,598	$ 2,662	$ 7,273	$ 7,225

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) $ in Thousands	USD ($)
Balance, beginning of period at Dec. 31, 2015	$ 82,950
Comprehensive income
Net income attributable to F & M Bank Corp.	7,049
Net income (loss) attributable to noncontrolling interest	154
Other comprehensive income (loss)	22
Total comprehensive income	7,225
Minority interest capital distributions	(74)
Issuance of common stock	132
Repurchase of common stock	(421)
Repurchase of preferred stock	0
Dividends paid	(2,287)
Balance, end of period at Sep. 30, 2016	87,525
Balance, beginning of period at Dec. 31, 2016	86,682	[1]
Comprehensive income
Net income attributable to F & M Bank Corp.	7,223
Net income (loss) attributable to noncontrolling interest	51
Other comprehensive income (loss)	(1)
Total comprehensive income	7,273
Minority interest capital distributions	(149)
Issuance of common stock	150
Repurchase of common stock	(199)
Repurchase of preferred stock	(101)
Dividends paid	(2,500)
Balance, end of period at Sep. 30, 2017	$ 91,156
[1]	2016 Derived from audited consolidated financial statements.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income	$ 7,223	$ 7,049
Reconcile net income to net cash provided by (used in) operating activities:
Depreciation	660	602
Amortization of securities	2	105
Proceeds from loans held for sale originated	61,310	65,553
Loans held for sale originated	(59,250)	(66,706)
Gain on sale of loans held for sale originated	(1,876)	(2,075)
Gain on prepayment of long-term debt	(504)	0
Increase in interest receivable	(60)	29
Increase in other assets	(336)	(66)
Decrease in accrued liabilities	(422)	(1,167)
Amortization of limited partnership investments	587	548
Income from life insurance investment	(336)	(356)
Loss on sale of other investments	42	0
Loss on sale and valuation adjustments for other real estate owned	0	20
Net cash provided by (used in) operating activities	7,040	3,536
Cash flows from investing activities
Purchase of investments available for sale and other investments	(61,432)	(26,109)
Purchase of title insurance company	(304)	0
Proceeds from maturity of investments available for sale	63,811	12,175
Proceeds from the sale of investments	55	0
Net increase in loans held for investment	(29,070)	(35,837)
Net decrease (increase) in loans held for sale participations	4,373	(22,131)
Other real estate improvements	(7)	0
Proceeds from the sale of other real estate owned	80	623
Net purchase of property and equipment	(3,036)	(2,403)
Net cash used in investing activities	(25,530)	(73,682)
Cash flows from financing activities
Net change in deposits	25,295	33,154
Net change in short-term debt	2,128	26,275
Dividends paid in cash	(2,500)	(2,287)
Proceeds from issuance of common stock	150	132
Proceeds from issuance of long-term debt	0	20,000
Repurchase of preferred stock	(101)	0
Repurchase of common stock	(199)	(421)
Repayments of long-term debt	(12,892)	(3,070)
Net cash provided by financing activities	11,881	73,783
Net (decrease) increase in Cash and Cash Equivalents	(6,609)	3,637
Cash and cash equivalents, beginning of period	16,355	8,519
Cash and cash equivalents, end of period	9,746	12,156
Cash paid for:
Interest	2,850	2,633
Taxes	3,495	2,300
Supplemental non-cash disclosures:
Transfer from loans to other real estate owned	145	592
Change in unrealized gain (loss) on securities available for sale	$ (2)	$ 0

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Summary Of Significant Accounting Policies
1. Summary of Significant Accounting Policies	Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC, (net of noncontrolling interest) and VSTitle, LLC (net of noncontrolling interest) and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”). The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Nature of Operations F & M Bank Corp. (the “Company”), through its subsidiary Farmers & Merchants Bank (the “Bank”), operates under a charter issued by the Commonwealth of Virginia and provides commercial banking services. As a state chartered bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions and the Federal Reserve Bank. The Bank provides services to customers primarily located in Rockingham, Shenandoah, Page and Augusta Counties in Virginia. Services are provided at thirteen branch offices and a Dealer Finance Division. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries, TEB Life Insurance, Inc., Farmers & Merchants Financial Services, Inc (FMFS), VBS Mortgage, LLC (VBS), and VSTitle, LLC (VST). The Company purchased a majority interest VSTitle, a title company headquartered in Harrisonburg, VA with offices in Harrisonburg, Fishersville and Charlottesville, VA on January 1, 2017. Basis of Presentation The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, goodwill, other than temporary impairment, pension accounting and the valuation of foreclosed real estate. Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income. Earnings per Share Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding. In calculating diluted EPS net income is used as the numerator and the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: (dollars in thousands) For the Nine months ended For the Three months Ended For the Nine months ended For the Three months ended September 30, 2017 September 30, 2017 September 30, 2016 September 30, 2016 Earnings available to common stockholders: Net income $ 7,274 $ 2,598 $ 7,203 $ 2,666 Noncontrolling interest income (loss) 51 48 154 64 Preferred stock dividends 312 103 382 128 Net income available to common stockholders $ 6,911 $ 2,447 $ 6,667 $ 2,474 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Nine months ended September 30, 2017 Nine months ended September 30, 2016 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 6,911 3,271,863 $ 2.11 $ 6,667 3,286,165 $ 2.03 Effect of Dilutive Securities: Convertible Preferred Stock 312 362,993 (0.12 ) 382 444,400 (0.14 ) Diluted EPS $ 7,223 3,634,856 $ 1.99 $ 7,049 3,730,565 $ 1.89 Three months ended September 30, 2017 Three months ended September 30, 2016 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 2,447 3,270,969 $ .75 $ 2,474 3,286,756 $ .75 Effect of Dilutive Securities: Convertible Preferred Stock 103 361,638 (0.05 ) 128 444,400 (0.05 ) Diluted EPS $ 2,550 3,632,607 $ .70 $ 2,602 3,731,156 $ .70

2. Investment Securities

2. Investment Securities	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements Tables
2. Investment Securities	Investment securities available for sale are carried in the consolidated balance sheets at their approximate fair value. Investment securities held to maturity are carried in the consolidated balance sheets at their amortized cost at September 30, 2017 and December 31, 2016 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2017 U. S. Treasuries $ 125 $ - $ - $ 125 December 31, 2016 U. S. Treasuries $ 125 $ - $ - $ 125 The amortized cost and fair value of securities available for sale are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 U. S. Treasuries $ 22,001 $ - $ 3 $ 21,998 Mortgage-backed obligations of federal agencies 539 10 - 549 Equity securities 135 - - 135 Total Securities Available for Sale $ 22,675 $ 10 $ 3 $ 22,682 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 The amortized cost and fair value of securities at September 30, 2017, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Due in one year or less $ - $ - $ 22,001 $ 21,998 Due after one year through five years 125 125 - - Due after five years - - 539 549 Due after ten years - - 135 135 Total $ 125 $ 125 $ 22,675 $ 22,682 There were no gains or losses on sales of available for sale securities in the three month or nine month periods ended September 30, 2017 or 2016. There were also no securities with other than temporary impairment. In the three months ended September 30, 2017, the treasury securities were in an unrealized loss position. There were no securities in an unrealized loss positions for more than twelve months as of September 30, 2017. Other investments consist of investments in nineteen low-income housing and historic equity partnerships (carrying basis of $7,607,198), stock in the Federal Home Loan Bank (carrying basis $4,523,700) and various other investments (carrying basis $1,469,572). The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted as to sales. The fair values of these securities are estimated to approximate their carrying value as of September 30, 2017. At September 30, 2017, the Company was committed to invest an additional $4,231,047 in nine low-income housing limited partnerships. These funds will be paid as requested by the general partner to complete the projects. This additional investment has been reflected in the above carrying basis and in accrued liabilities on the consolidated balance sheet. During the first quarter of 2017, both Farmers & Merchants Financial Services and VBS Mortgage ended their relationship with Bankers Title Virginia resulting in a consolidated loss of $41,914.

3. Loans

3. Loans	9 Months Ended
	Sep. 30, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types
3. Loans	(dollars in thousands) 2017 2016 Construction/Land Development $ 74,313 $ 76,172 Farmland 15,578 12,901 Real Estate 177,786 172,758 Multi-Family 8,504 7,605 Commercial Real Estate 155,510 150,061 Home Equity – closed end 11,189 11,453 Home Equity – open end 55,461 54,420 Commercial & Industrial – Non-Real Estate 38,050 31,306 Consumer 7,328 6,643 Dealer Finance 73,567 65,495 Credit Cards 2,674 2,822 Total $ 619,960 $ 591,636 Loans held for investment outstanding at September 30, 2017 and December 31, 2016 are summarized as follows: The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $213,184,000 and $199,401,000 as of September 30, 2017 and December 31, 2016, respectively. The Company maintains a blanket lien on its entire residential real estate portfolio and certain commercial and home equity loans. September 30, 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 $ 4,784 $ 5,140 $ - $ 3,296 $ 3,652 $ - Farmland 1,983 1,983 - - - - Real Estate 740 740 - 768 768 - Multi-Family - - - - - - Commercial Real Estate 300 300 - 1,958 1,958 - Home Equity – closed end - - - - - - Home Equity – open end - 347 - - 347 - Commercial & Industrial – Non-Real Estate 162 162 - 170 170 - Consumer 9 9 - 13 13 - Credit cards - - - - - - Dealer Finance 25 25 - - - - 8,003 8,706 6,205 6,908 Impaired loans with a valuation allowance Construction/Land Development 5,619 5,619 2,054 6,592 6,592 1,853 Farmland - - - - - - Real Estate 1,192 1,192 214 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 48 48 12 87 87 20 6,859 6,859 2,280 8,837 8,837 2,154 Total impaired loans $ 14,862 $ 15,565 $ 2,280 $ 15,042 $ 15,745 $ 2,154 The following is a summary of information pertaining to impaired loans (dollars in thousand): The Recorded Investment is defined as the original principal balance less principal payments, charge-offs and nonaccrual payments applied to principal. Loans held for sale consists of loans originated by VBS Mortgage for sale in the secondary market, and the Bank’s commitment to purchase residential mortgage loan participations from Northpointe Bank. The volume of loans purchased from Northpointe fluctuates due to a number of factors including changes in secondary market rates, which affects demand for mortgage loans; the number of participating banks involved in the program; the number of mortgage loan originators selling loans to the lead bank and the funding capabilities of the lead bank. Loans held for sale as of September 30, 2017 and December 31, 2016 were $58,177,450 and $62,734,803, respectively. The following is a summary of the average investment and interest income recognized for impaired loans (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 5,414 $ 14 $ 2,649 $ 15 $ 4,870 $ 64 $ 2,009 $ 32 Farmland 1,921 - - - 1,900 - - - Real Estate 743 8 778 8 746 25 860 28 Multi-Family - - - - - - - - Commercial Real Estate 200 9 993 77 167 12 674 79 Home Equity – closed end - - - - - - - - Home Equity – open end 347 - 964 (35 ) 347 - 1,167 8 Commercial & Industrial – Non-Real Estate 164 2 174 2 165 8 177 2 Consumer and credit cards 10 - 7 2 10 - 12 - Dealer Finance 23 1 24 (1 ) 22 2 15 1 8,822 34 5,589 68 8,227 111 4,914 150 Impaired loans with a valuation allowance: Construction/Land Development $ 5,640 $ 75 $ 8,429 $ 112 $ 6,215 $ 215 $ 9,761 $ 212 Farmland - - - - - - - - Real Estate 1,194 10 1,214 14 1,196 41 994 40 Multi-Family - - - - - - - - Commercial Real Estate - - 958 14 - - 944 42 Home Equity – closed end - - - - - - - - Home Equity – open end - - 1,234 (5 ) - - 1,322 14 Commercial & Industrial – Non-Real Estate - - 14 (1 ) - - 14 - Consumer and credit card - - - - - - - - Dealer Finance 59 1 72 - 59 2 72 3 6,893 86 11,921 134 7,470 258 13,107 311 Total Impaired Loans $ 15,715 $ 120 $ 17,510 $ 202 $ 15,697 $ 369 $ 18,021 $ 461 The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of September 30, 2017 and December 31, 2016: 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 September 30, 2017 Construction/Land Development $ 62 $ 1,692 $ 2,372 $ 4,126 $ 70,187 $ 74,313 $ 2,788 $ - Farmland - 1,984 - 1,984 13,594 15,578 - - Real Estate 2,250 1,202 536 3,988 173,798 177,786 1,714 - Multi-Family - - - - 8,504 8,504 - - Commercial Real Estate 840 287 - 1,127 154,383 155,510 - - Home Equity – closed end 273 5 - 278 10,911 11,189 - - Home Equity – open end 488 100 173 761 54,700 55,461 436 - Commercial & Industrial – Non- Real Estate 264 110 481 855 37,195 38,050 481 - Consumer 13 23 5 41 7,287 7,328 5 - Dealer Finance 1,052 287 148 1,487 72,080 73,567 238 - Credit Cards 16 16 - 32 2,642 2,674 - - Total $ 5,258 $ 5,706 $ 3,715 $ 14,679 $ 605,281 $ 619,960 $ 5,662 $ - 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 At September 30, 2017 and December 31, 2016, other real estate owned included $711,000 and $565,000 of foreclosed residential real estate. The Company has $93,000 of consumer mortgages for which foreclosure is in process at September 30, 2017 and $40,000 at December 31, 2016. Nonaccrual loans at September 30, 2017 and September 30, 2016, would have earned approximately $109,000 and $54,000, respectively, in interest income had they been accruing loans.

4. Allowance for Loan Losses

4. Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2017
Allowance For Loan Losses
4. Allowance for Loan Losses	A summary of changes in the allowance for loan losses (dollars in thousands) for September 30, 2017 and December 31, 2016 is as follows: September 30, 2017 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 3,381 $ - $ - $ (213 ) $ 3,168 $ 2,054 $ 1,114 Farmland 34 - - (4 ) 30 - 30 Real Estate 843 - 2 (105 ) 740 214 526 Multi-Family 23 - - (2 ) 21 - 21 Commercial Real Estate 705 - 11 (165 ) 551 - 551 Home Equity – closed end 75 8 25 (20 ) 72 - 72 Home Equity – open end 470 25 - (85 ) 360 - 360 Commercial & Industrial – Non-Real Estate 586 31 66 (249 ) 372 - 372 Consumer 78 34 11 55 110 - 110 Dealer Finance 1,289 1,395 816 751 1,461 12 1,449 Credit Cards 59 69 30 37 57 - 57 Total $ 7,543 $ 1,562 $ 961 $ - $ 6,942 $ 2,280 $ 4,662 December 31, 2016 Beginning Balance Charge-offs Recoveries Provision 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 September 30, 2017 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 74,313 $ 10,403 $ 63,910 Farmland 15,578 1,983 13,595 Real Estate 177,786 1,932 175,854 Multi-Family 8,504 - 8,504 Commercial Real Estate 155,510 300 155,210 Home Equity – closed end 11,189 - 11,189 Home Equity –open end 55,461 - 55,461 Commercial & Industrial – Non-Real Estate 38,050 162 37,888 Consumer 7,328 9 7,319 Dealer Finance 73,567 73 73,494 Credit Cards 2,674 - 2,674 Total $ 619,960 $ 14,862 $ 605,098 The following table presents the recorded investment in loans (dollars in thousands) based on impairment method as of September 30, 2017 and December 31, 2016: 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 Total $ 591,636 $ 15,042 $ 576,594 The following table shows the Company’s loan portfolio broken down by internal loan grade (dollars in thousands) as of September 30, 2107 and December 31, 2016: September 30, 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 $ - $ 730 $ 12,931 $ 36,673 $ 10,285 $ 4,989 $ 8,705 $ - $ 74,313 Farmland 64 333 3,897 4,459 4,348 494 1,983 - 15,578 Real Estate - 1,404 53,245 95,135 19,963 5,285 2,754 - 177,786 Multi-Family - 249 2,898 5,177 180 - - - 8,504 Commercial Real Estate - 2,811 43,962 97,798 9,312 1,040 587 - 155,510 Home Equity – closed end - 130 3,815 4,499 1,298 1,442 5 - 11,189 Home Equity – open end 84 2,612 16,619 31,730 3,771 142 503 - 55,461 Commercial & Industrial (Non-Real Estate) 277 1,460 15,039 19,061 1,368 322 523 - 38,050 Consumer (excluding dealer) 47 362 2,640 415 1,187 2,202 475 - 7,328 Total $ 472 $ 10,091 $ 155,046 $ 294,947 $ 51,712 $ 15,916 $ 15,535 $ - $ 543,719 Credit Cards Dealer Finance Performing $ 2,674 $ 73,329 Non performing - 238 Total $ 2,674 $ 73,567 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 Description of internal loan grades: Grade 1 – Minimal Risk Grade 2 – Modest Risk Grade 3 – Average Risk Grade 4 – Acceptable Risk Grade 5 – Marginally acceptable s Grade 6 – Watch Grade 7 – Substandard Grade 8 – Doubtful Credit card and dealer finance loans are classified as performing or nonperforming. A loan is nonperforming when payments of principal and interest are past due 90 days or more.

5. Employee Benefit Plan

5. Employee Benefit Plan	9 Months Ended
	Sep. 30, 2017
Employee Benefit Plan
5. Employee Benefit Plan	The Bank has a qualified noncontributory defined benefit pension plan which covers substantially all of its full-time employees hired before April 1, 2012. The benefits are primarily based on years of service and earnings. The Company uses December 31st as the measurement date for the defined benefit pension plan. The Bank does not expect to contribute to the pension plan in 2017. The following is a summary of net periodic pension costs for the three and nine month periods ended September 30, 2017 and 2016: (dollars in thousands) Nine Months Ended Three Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 20, 2016 Service cost $ 522 $ 474 $ 174 $ 158 Interest cost 365 340 122 113 Expected return on plan assets (638 ) (641 ) (213 ) (214 ) Amortization of prior service cost (11 ) (11 ) (4 ) (4 ) Amortization of net (gain) or loss 213 167 71 56 Net periodic pension cost $ 451 $ 329 $ 150 $ 109

6. Fair Value

6. Fair Value	9 Months Ended
	Sep. 30, 2017
Fair Value Abstract
6. Fair Value	The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Accounting guidance for fair value excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The Company records fair value adjustments to certain assets and liabilities and determines fair value disclosures utilizing a definition of fair value of assets and liabilities that states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Additional considerations are involved to determine the fair value of financial assets in markets that are not active. The Company uses a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The carrying value of restricted Federal Reserve Bank and Federal Home Loan Bank stock approximates fair value based upon the redemption provisions of each entity and is therefore excluded from the following table. Derivatives The Company’s derivatives are recorded at fair value based on third party vendor supplied information using discounted cash flow analysis from observable-market based inputs, which are considered Level 2 inputs. The following tables present the balances of financial assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 21,998 $ 21,998 $ - $ - Mortgage-backed obligations of federal agencies 549 - 549 - Equity securities 135 - 135 - Total securities available for sale $ 22,682 $ 21,998 $ 684 - 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 - Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements: Loans Held for Sale Loans held for sale are short-term loans purchased at par for resale to investors at the par value of the loan and loans originated by VBS for sale in the secondary market. Loan participations are generally repurchased within 15 days. Loans originated for sale by VBS are recorded at lower of cost or market. No market adjustments were required at September 30, 2017 or December 31, 2016; therefore, loans held for sale were carried at cost. Because of the short-term nature and fixed repurchase price, the book value of these loans approximates fair value at September 30, 2017 and December 31, 2016. Impaired Loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Troubled debt restructurings are impaired loans. Impaired loans are measured at fair value on a nonrecurring basis. If an individually-evaluated impaired loan’s balance exceeds fair value, the amount is allocated to the allowance for loan losses. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. The fair value of an impaired loan and measurement of associated loss is based on one of three methods: the observable market price of the loan, the present value of projected cash flows, or the fair value of the collateral. The observable market price of a loan is categorized as a Level 1 input. The present value of projected cash flows method results in a Level 3 categorization because the calculation relies on the Company’s judgment to determine projected cash flows, which are then discounted at the current rate of the loan, or the rate prior to modification if the loan is a troubled debt restructure. Loans measured using the fair value of collateral method are categorized in Level 3. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. Most collateral is real estate. The Company bases collateral method fair valuation upon the “as-is” value of independent appraisals or evaluations. The value of real estate collateral is determined by an independent appraisal utilizing an income or market valuation approach. Appraisals conducted by an independent, licensed appraiser outside of the Company using observable market data is categorized as Level 3. The value of business equipment is based upon an outside appraisal (Level 3) if deemed significant, or the net book value on the applicable business’ financial statements (Level 3) if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). As of September 30, 2017 and December 31, 2016, the fair value measurements for impaired loans with specific allocations were primarily based upon the fair value of the collateral. The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands): September 30, 2017 Total Level 1 Level 2 Level 3 Construction/Land Development $ 3,565 - - $ 3,565 Real Estate 978 - - 978 Dealer Finance 36 - - 36 Impaired loans $ 4,579 - - $ 4,579 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 The following table presents information about Level 3 Fair Value Measurements for September 30, 2017: Fair Value at September 30, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 4,579 Discounted appraised value Discount for selling costs and marketability 3%-19% (Average 5.1%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2016: Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 6,683 Discounted appraised value Discount for selling costs and marketability 2%-50% (Average 4.7%) Other Real Estate Owned Certain assets such as other real estate owned (OREO) are measured at fair value less cost to sell. Valuation of other real estate owned is determined using current appraisals from independent parties, a level two input. If current appraisals cannot be obtained prior to reporting dates, or if declines in value are identified after a recent appraisal is received, appraisal values are discounted, resulting in Level 3 estimates. If the Company markets the property with a realtor, estimated selling costs reduce the fair value, resulting in a valuation based on Level 3 inputs. The Company markets other real estate owned both independently and with local realtors. Properties marketed by realtors are discounted by selling costs. Properties that the Company markets independently are not discounted by selling costs. The following table summarizes the Company’s other real estate owned that were measured at fair value on a nonrecurring basis as of September 30, 2017 and December 31, 2016 (dollars in thousands). September 30, 2017 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,148 - - $ 2,148 December 31, 2016 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,076 - - $ 2,076 The following table presents information about Level 3 Fair Value Measurements for September 30, 2017: Fair Value at September 30, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,148 Discounted appraised value Discount for selling costs 5%-15% (Average 8%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2016: Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,076 Discounted appraised value Discount for selling costs 5%-15% (Average 8%) The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Cash Equivalents The carrying amounts approximate fair value. Securities The fair values of securities, excluding restricted stock, are determined by quoted market prices or dealer quotes. The fair value of certain state and municipal securities is not readily available through market sources other than dealer quotations, so fair value estimates are based on quoted market prices of similar instruments adjusted for differences between the quoted instruments and the instruments being valued. The carrying value of restricted securities and other investments approximates fair value and are therefore excluded from the following table. Loans Held for Sale Fair values of loans held for sale are based on commitments on hand from investors or prevailing market prices. Loans Held for Investment Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, real estate – commercial, real estate – construction, real estate – mortgage, credit card and other consumer loans. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories. The fair value of performing loans is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan, as well as estimates for prepayments. The estimate of maturity is based on the Company’s historical experience with repayments for loan classification, modified, as required, by an estimate of the effect of economic conditions on lending. Fair value for significant nonperforming loans is based on estimated cash flows which are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are determined within management’s judgment, using available market information and specific borrower information. Bank-Owned Life Insurance Bank-owned life insurance represents insurance policies on certain officers of the Company. The cash values of the policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates fair value. Deposits The fair value of demand and savings deposits is the amount payable on demand. The fair value of fixed maturity term deposits and certificates of deposit is estimated using the rates currently offered for deposits with similar remaining maturities. Short-Term Debt The carrying amounts of short-term debt maturing within 90 days approximate their fair values. Fair values of any other short-term debt are estimated using discounted cash flow analyses based on the current incremental borrowing rates for similar types of debt. Long-Term Debt The fair value of the Company’s long-term debt is estimated using discounted cash flow analyses based on the Company’s incremental borrowing rates for similar types of debt arrangements. Accrued Interest The carrying amounts of accrued interest approximate fair value.

7. Disclosures About Fair Value

7. Disclosures About Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Disclosures About Fair Value Of Financial Instruments
7. Disclosures About Fair Value of Financial Instruments	Fair Value Measurements at September 30, 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 September 30, 2017 Assets: Cash and cash equivalents $ 9,746 $ 9,746 $ - $ - $ 9,746 Securities 22,807 21,998 809 - 22,807 Loans held for sale 58,177 - 58,177 - 58,177 Loans held for investment, net 613,018 - - 642,322 642,322 Interest receivable 1,845 - 1,845 - 1,845 Bank owned life insurance 13,841 - 13,841 - 13,841 Total $ 719,434 $ 31,744 $ 74,672 $ 642,322 $ 762,338 Liabilities: Deposits $ 562,380 $ - $ 398,229 $ 165,926 $ 564,155 Short-term debt 42,128 - 42,128 - 42,128 Long-term debt 50,840 - - 50,943 50,943 Interest payable 239 - 239 - 239 Total $ 655,587 $ - $ 440,596 $ 216,869 $ 657,465 The estimated fair values, and related carrying amounts (dollars in thousands), of the Company’s financial instruments are as follows: 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

8. Troubled Debt Restructuring

8. Troubled Debt Restructuring	9 Months Ended
	Sep. 30, 2017
Troubled Debt Restructuring Abstract
8. Troubled Debt Restructuring	In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by adjusting the loan grades of such loans, which are considered in the qualitative factors within the allowance. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance for loan loss methodology. Additionally, specific reserves may be established on restructured loans which are evaluated individually for impairment. During the nine months ended September 30, 2017, there was one loan modification that was considered to be troubled debt restructuring. This loan was modified during the three months ended June 30, 2017, there were no loan modifications that would be considered a troubled debt restructuring during the first or third quarters of 2017. Modifications may have included rate adjustments, revisions to amortization schedules, suspension of principal payments for a temporary period, re-advancing funds to be applied as payments to bring the loan(s) current, or any combination thereof. September 30, 2017 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Consumer 1 $ 18 $ 18 Total 1 $ 18 $ 18 At September 30, 2017, there was one loan restructured in the previous 12 months in default or on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due, or when a charge off or foreclosure occurs. September 30, 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 Total 1 $ 67 $ 67 During the nine months ended September 30, 2016, there were seven loan modifications that were considered to be troubled debt restructurings, however since then one has paid off and one was charged off. Nine Months ended September 30, 2016 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 2 $ 142 $ 142 Consumer 3 33 33 Total 5 $ 175 $ 175 During the quarter ended September 30, 2016, there was one loan modification that was considered to be troubled debt restructuring. Three Months ended September 30, 2016 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Consumer 1 $ 6 $ 6 Total 1 $ 6 $ 6

9. Accumulated Other Comprehens

9. Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	The balances in accumulated other comprehensive loss are shown in the following tables for September 30, 2017 and 2016: (dollars in thousands) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2016 $ 6 $ (3,171 ) $ (3,165 ) Change in unrealized securities gains (losses), net of tax (1 ) - (1 ) Change in unfunded pension liability, net of tax - - - Balance at September 30, 2017 $ 5 $ (3,171 ) $ (3,166 ) (dollars in thousands) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ 3 $ (2,683 ) $ (2,680 ) Change in unrealized securities gains, net of tax 22 - 22 Change in unfunded pension liability, net of tax - - - Balance at September 30, 2016 $ 25 $ (2,683 ) $ (2,658 ) There were no reclassifications adjustments reported on the consolidated statements of income during the three or nine months periods ended September 30, 2017 or 2016.

10. Business Segments

10. Business Segments	9 Months Ended
	Sep. 30, 2017
Business Segments
Business Segments	The Company utilizes its subsidiaries to provide multiple business segments including retail banking, mortgage banking, title insurance services, investment services and credit life and accident and health insurance products related to lending. Revenues from retail banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage Banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from title insurance services, investment services and insurance products consist of commissions on products provided. The following tables represent revenues and expenses by segment for the three and nine months ended September 30, 2017 and 2016. Nine Months Ended September 30, 2017 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 24,815 $ 97 $ 112 $ - $ - $ (70 ) $ 24,954 Service charges on deposits 1,010 - - - - - 1,010 Investment services and insurance income 1 - 529 - - - 530 Mortgage banking income, net - 1,974 - - - - 1,974 Title insurance income - - - 668 - - 668 Income from bank owned life insurance 336 - - - - - 336 Low income housing partnership losses (587 ) - - - - - (587 ) ATM and check card fees 1,034 - - - - - 1,034 Gain on prepayment of long-term debt 504 - - - - - 504 Loss on investments - (40 ) (2 ) - - - (42 ) Other operating income 513 - - - - - 513 Total income 27,626 2,031 639 668 - (70 ) 30,894 Expenses: Interest Expense 2,866 65 - - - (70 ) 2,861 Provision for loan losses - - - - - - - Salary expense 6,781 1,035 341 345 - - 8,502 Employee benefit expense 2,245 168 - 54 - - 2,467 Occupancy expense 624 115 - 37 - - 776 Equipment expense 551 39 - 23 - - 613 FDIC insurance assessment 200 - - - - - 200 Other real estate owned, net 22 - - - - - 22 Marketing expense 352 42 6 4 - - 404 Legal and professional fees 246 7 - - - - 253 ATM and check card fees 526 3 - - - - 529 Telecom and data processing expense 967 78 - - - - 1,045 Directors fees 315 45 - - - - 360 Bank franchise Tax 491 - - - - - 491 Other operating expenses 2,127 262 17 54 4 - 2,464 Total expense 18,313 1,859 364 517 4 (70 ) 20,987 Income tax expense (benefit) 2,603 - 83 - (53 ) - 2,633 Net income $ 6,710 $ 172 $ 192 $ 151 $ 49 $ - $ 7,274 Net income attributable to noncontrolling interest - 51 - - - - 51 Net Income attributable to F & M Bank Corp. $ 6,710 $ 121 $ 192 $ 151 $ 49 $ - $ 7,223 Total Assets $ 750,048 $ 6,309 $ 6,644 $ 443 $ 91,362 $ (91,121 ) $ 763,685 Goodwill $ 2,670 $ 103 $ - $ - $ 340 $ - $ 3,113 Three Months Ended September 30, 2017 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,644 $ 32 $ 37 $ - $ - $ (25 ) $ 8,688 Service charges on deposits 359 - - - - - 359 Investment services and insurance income - - 169 - - - 169 Mortgage banking income, net - 861 - - - - 861 Title insurance income - - - 247 - - 247 Income from bank owned life insurance 113 - - - - - 113 Low income housing partnership losses (201 ) - - - - - (201 ) ATM and check card fees 352 - - - - - 352 Gain on prepayment of long-term debt - - - - - - - Loss on investments - - - - - - - Other operating income 246 - - - - - 246 Total income 9,513 893 206 247 - (25 ) 10,834 Expenses: Interest Expense 1,032 24 - - - (25 ) 1,031 Provision for loan losses - - - - - - - Salary expense 2,326 586 107 175 - - 3,194 Employee benefit expense 722 1 - (34 ) - - 689 Occupancy expense 221 48 - 12 - - 281 Equipment expense 192 20 - 12 - - 224 FDIC insurance assessment 20 - - - - - 20 Other real estate owned, net (3 ) - - - - - (3 ) Marketing expense 136 8 2 2 - - 148 Legal and professional fees 75 3 - - - - 78 ATM and check card fees 182 1 - - - - 183 Telecom and data processing expense 342 28 - - - - 370 Directors fees 105 11 - - - - 116 Bank franchise Tax 166 - - - - - 166 Other operating expenses 767 2 4 20 - - 793 Total expense 6,283 732 113 187 - (25 ) 7,290 Income tax expense (benefit) 933 - 30 - (17 ) - 946 Net income $ 2,297 $ 161 $ 63 $ 60 $ 17 $ - $ 2,598 Net income attributable to noncontrolling interest - 48 - - - - 48 Net Income attributable to F & M Bank Corp. $ 2,297 $ 113 $ 63 $ 60 $ 17 $ - $ 2,550 Nine Months Ended September 30, 2016 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 23,653 $ 30 $ 114 $ - $ - $ (4 ) $ 23,793 Service charges on deposits 842 - - - - - 842 Investment services and insurance income 1 - 316 - - - 317 Mortgage banking income, net - 1,891 - - - - 1,891 Income from bank owned life insurance 356 - - - - - 356 Low income housing partnership losses (548 ) - - - - - (548 ) ATM and check card fees 1,020 - - - - - 1,020 Gain on prepayment of long-term debt - - - - - - - Loss on investments - - - - - - - Other operating income 238 - - - - - 238 Total income 25,562 1,921 430 - - (4 ) 27,909 Expenses: Interest Expense 2,649 - - - - (4 ) 2,645 Provision for loan losses - - - - - - - Salary expense 6,117 823 221 - - - 7,161 Employee benefit expense 1,927 186 - - - - 2,113 Occupancy expense 552 91 - - - - 643 Equipment expense 536 33 - - - - 569 FDIC insurance assessment 338 - - - - - 338 Other real estate owned, net 72 - - - - - 72 Marketing expense 356 39 1 - - - 396 Legal and professional fees 286 7 - - - - 293 ATM and check card fees 514 4 - - - - 518 Telecom and data processing expense 795 66 - - - - 861 Directors fees 234 20 - - - - 254 Bank franchise Tax 480 - - - - - 480 Other operating expenses 2,011 138 26 - 1 - 2,176 Total expense 16,867 1,407 248 - 1 (4 ) 18,519 Income tax expense (benefit) 2,353 - 48 - (214 ) - 2,187 Net income $ 6,342 $ 514 $ 134 $ - $ 213 $ - $ 7,203 Net income attributable to noncontrolling interest - 154 - - - - 154 Net Income attributable to F & M Bank Corp. $ 6,342 $ 360 $ 134 $ - $ 213 $ - $ 7,049 Total Assets $ 736,642 $ 2,492 $ 6,315 $ - $ 87,369 $ (87,526 ) $ 745,292 Goodwill $ 2,670 $ - $ - $ - $ - $ - $ 2,670 Three Months Ended September 30, 2016 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,160 $ 17 $ 39 $ - $ - $ (1 ) $ 8,215 Service charges on deposits 336 - - - - - 336 Investment services and insurance income - - 112 - - - 112 Mortgage banking income, net - 694 - - - - 694 Income from bank owned life insurance 119 - - - - - 119 Low income housing partnership losses (183 ) - - - - - (183 ) ATM and check card fees 328 - - - - - 328 Other operating income 129 - - - - - 129 Total income 8,889 711 151 - - (1 ) 9,750 Expenses: Interest Expense 971 - - - - (1 ) 970 Provision for loan losses - - - - - - - Salary expense 2,094 295 82 - - - 2,471 Employee benefit expense 628 71 - - - - 699 Occupancy expense 185 30 - - - - 215 Equipment expense 181 2 - - - - 183 FDIC insurance assessment 113 - - - - - 113 Other real estate owned, net 19 - - - - - 19 Marketing expense 120 6 2 - - - 128 Legal and professional fees 98 2 - - - - 100 ATM and check card fees 183 1 - - - - 184 Telecom and data processing expense 286 23 - - - - 309 Directors fees 42 4 - - - - 46 Bank franchise Tax 170 - - - - - 170 Other operating expenses 755 63 5 - - - 823 Total expense 5,845 497 89 - - (1 ) 6,430 Income tax expense (benefit) 770 - 16 - (132 ) - 654 Net income $ 2,274 $ 214 $ 46 $ - $ 132 $ - $ 2,666 Net income attributable to noncontrolling interest - 64 - - - - 64 Net Income attributable to F & M Bank Corp. $ 2,274 $ 150 $ 46 $ - $ 132 $ - $ 2,602

11. Debt

11. Debt	9 Months Ended
	Sep. 30, 2017
Debt
Debt	Short-term Debt The Company utilizes short-term debt such as Federal funds purchased and Federal Home Loan Bank of Atlanta (FHLB) short term borrowings to support the loans held for sale participation program and provide liquidity. Federal funds purchased are unsecured overnight borrowings from other financial institutions. FHLB short term debt, which is secured by the loan portfolio, can be a daily rate variable loan that acts as a line of credit or a fixed rate advance, depending on the need of the Company. Short-term debt totaled $42,128,000 at September 30, 2017 and has increased $2,128,000 from $40 million at December 31, 2016; the total of increase was in Federal funds purchased. Long-term Debt The Company utilizes the FHLB advance program to fund loan growth and provide liquidity. The interest rates on long-term debt are fixed at the time of the advance and range from 1.16% to 2.56%; the weighted average interest rate was 1.86% and 1.80% at September 30, 2017 and December 31, 2016, respectively. The balance of these obligations at September 30, 2017 and December 31, 2016 were $50,661,000 and $63,982,000 respectively. The Company recognized a gain of $504,000 on prepayment of two FHLB advances totaling $10,000,000 during the first quarter of 2017 and there were no additional borrowings in 2017. FHLB advances include a $5,000,000 line of credit at FHLB that is pledged to the Commonwealth of Virginia to secure public funds. In addition, the Company has a note payable to purchase a lot adjacent to one of the Bank branches for $170,000 at September 30, 2017 that is payable in two remaining annual payments on January 1, 2018 and 2019. There was $255,000 outstanding on this note at December 31, 2016. VS Title, LLC has a note payable for vehicle purchases with a balance of $9,000 at September 30, 2017.

1. Summary of Significant Acc19

1. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Summary Of Significant Accounting Policies Policies
Principles of Consolidation	The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC, (net of noncontrolling interest) and VSTitle, LLC (net of noncontrolling interest) and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”). The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Nature of Operations	F & M Bank Corp. (the “Company”), through its subsidiary Farmers & Merchants Bank (the “Bank”), operates under a charter issued by the Commonwealth of Virginia and provides commercial banking services. As a state chartered bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions and the Federal Reserve Bank. The Bank provides services to customers primarily located in Rockingham, Shenandoah, Page and Augusta Counties in Virginia. Services are provided at thirteen branch offices and a Dealer Finance Division. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries, TEB Life Insurance, Inc., Farmers & Merchants Financial Services, Inc (FMFS), VBS Mortgage, LLC (VBS), and VSTitle, LLC (VST). The Company purchased a majority interest VSTitle, a title company headquartered in Harrisonburg, VA with offices in Harrisonburg, Fishersville and Charlottesville, VA on January 1, 2017.
Basis of Presentation	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, goodwill, other than temporary impairment, pension accounting and the valuation of foreclosed real estate.
Reclassification	Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income.
Earnings per Share	Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding. In calculating diluted EPS net income is used as the numerator and the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: (dollars in thousands) For the Nine months ended For the Three months Ended For the Nine months ended For the Three months ended September 30, 2017 September 30, 2017 September 30, 2016 September 30, 2016 Earnings available to common stockholders: Net income $ 7,274 $ 2,598 $ 7,203 $ 2,666 Noncontrolling interest income (loss) 51 48 154 64 Preferred stock dividends 312 103 382 128 Net income available to common stockholders $ 6,911 $ 2,447 $ 6,667 $ 2,474 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Nine months ended September 30, 2017 Nine months ended September 30, 2016 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 6,911 3,271,863 $ 2.11 $ 6,667 3,286,165 $ 2.03 Effect of Dilutive Securities: Convertible Preferred Stock 312 362,993 (0.12 ) 382 444,400 (0.14 ) Diluted EPS $ 7,223 3,634,856 $ 1.99 $ 7,049 3,730,565 $ 1.89 Three months ended September 30, 2017 Three months ended September 30, 2016 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 2,447 3,270,969 $ .75 $ 2,474 3,286,756 $ .75 Effect of Dilutive Securities: Convertible Preferred Stock 103 361,638 (0.05 ) 128 444,400 (0.05 ) Diluted EPS $ 2,550 3,632,607 $ .70 $ 2,602 3,731,156 $ .70

1. Summary of Significant Acc20

1. Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Summary Of Significant Accounting Policies Tables
Schedule of Earnings per share	(dollars in thousands) For the Nine months ended For the Three months Ended For the Nine months ended For the Three months ended September 30, 2017 September 30, 2017 September 30, 2016 September 30, 2016 Earnings available to common stockholders: Net income $ 7,274 $ 2,598 $ 7,203 $ 2,666 Noncontrolling interest income (loss) 51 48 154 64 Preferred stock dividends 312 103 382 128 Net income available to common stockholders $ 6,911 $ 2,447 $ 6,667 $ 2,474 Nine months ended September 30, 2017 Nine months ended September 30, 2016 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 6,911 3,271,863 $ 2.11 $ 6,667 3,286,165 $ 2.03 Effect of Dilutive Securities: Convertible Preferred Stock 312 362,993 (0.12 ) 382 444,400 (0.14 ) Diluted EPS $ 7,223 3,634,856 $ 1.99 $ 7,049 3,730,565 $ 1.89 Three months ended September 30, 2017 Three months ended September 30, 2016 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 2,447 3,270,969 $ .75 $ 2,474 3,286,756 $ .75 Effect of Dilutive Securities: Convertible Preferred Stock 103 361,638 (0.05 ) 128 444,400 (0.05 ) Diluted EPS $ 2,550 3,632,607 $ .70 $ 2,602 3,731,156 $ .70

2. Investment Securities (Table

2. Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2017
Investment Securities Tables Abstract
Schedule of Securities Impairment	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2017 U. S. Treasuries $ 125 $ - $ - $ 125 December 31, 2016 U. S. Treasuries $ 125 $ - $ - $ 125
Schedule of Amortized Cost and Fair Value for Securities	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 U. S. Treasuries $ 22,001 $ - $ 3 $ 21,998 Mortgage-backed obligations of federal agencies 539 10 - 549 Equity securities 135 - - 135 Total Securities Available for Sale $ 22,675 $ 10 $ 3 $ 22,682 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
Schedule of Securities with Unrealized Losses	Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Due in one year or less $ - $ - $ 22,001 $ 21,998 Due after one year through five years 125 125 - - Due after five years - - 539 549 Due after ten years - - 135 135 Total $ 125 $ 125 $ 22,675 $ 22,682

3. Loans (Tables)

3. Loans (Tables)	9 Months Ended
	Sep. 30, 2017
Loans Tables
Schedule of Loans Outstanding	(dollars in thousands) 2017 2016 Construction/Land Development $ 74,313 $ 76,172 Farmland 15,578 12,901 Real Estate 177,786 172,758 Multi-Family 8,504 7,605 Commercial Real Estate 155,510 150,061 Home Equity – closed end 11,189 11,453 Home Equity – open end 55,461 54,420 Commercial & Industrial – Non-Real Estate 38,050 31,306 Consumer 7,328 6,643 Dealer Finance 73,567 65,495 Credit Cards 2,674 2,822 Total $ 619,960 $ 591,636
Schedule Impaired Loans	September 30, 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 $ 4,784 $ 5,140 $ - $ 3,296 $ 3,652 $ - Farmland 1,983 1,983 - - - - Real Estate 740 740 - 768 768 - Multi-Family - - - - - - Commercial Real Estate 300 300 - 1,958 1,958 - Home Equity – closed end - - - - - - Home Equity – open end - 347 - - 347 - Commercial & Industrial – Non-Real Estate 162 162 - 170 170 - Consumer 9 9 - 13 13 - Credit cards - - - - - - Dealer Finance 25 25 - - - - 8,003 8,706 6,205 6,908 Impaired loans with a valuation allowance Construction/Land Development 5,619 5,619 2,054 6,592 6,592 1,853 Farmland - - - - - - Real Estate 1,192 1,192 214 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 48 48 12 87 87 20 6,859 6,859 2,280 8,837 8,837 2,154 Total impaired loans $ 14,862 $ 15,565 $ 2,280 $ 15,042 $ 15,745 $ 2,154 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 5,414 $ 14 $ 2,649 $ 15 $ 4,870 $ 64 $ 2,009 $ 32 Farmland 1,921 - - - 1,900 - - - Real Estate 743 8 778 8 746 25 860 28 Multi-Family - - - - - - - - Commercial Real Estate 200 9 993 77 167 12 674 79 Home Equity – closed end - - - - - - - - Home Equity – open end 347 - 964 (35 ) 347 - 1,167 8 Commercial & Industrial – Non-Real Estate 164 2 174 2 165 8 177 2 Consumer and credit cards 10 - 7 2 10 - 12 - Dealer Finance 23 1 24 (1 ) 22 2 15 1 8,822 34 5,589 68 8,227 111 4,914 150 Impaired loans with a valuation allowance: Construction/Land Development $ 5,640 $ 75 $ 8,429 $ 112 $ 6,215 $ 215 $ 9,761 $ 212 Farmland - - - - - - - - Real Estate 1,194 10 1,214 14 1,196 41 994 40 Multi-Family - - - - - - - - Commercial Real Estate - - 958 14 - - 944 42 Home Equity – closed end - - - - - - - - Home Equity – open end - - 1,234 (5 ) - - 1,322 14 Commercial & Industrial – Non-Real Estate - - 14 (1 ) - - 14 - Consumer and credit card - - - - - - - - Dealer Finance 59 1 72 - 59 2 72 3 6,893 86 11,921 134 7,470 258 13,107 311 Total Impaired Loans $ 15,715 $ 120 $ 17,510 $ 202 $ 15,697 $ 369 $ 18,021 $ 461
Schedule of Recorded Investment	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 September 30, 2017 Construction/Land Development $ 62 $ 1,692 $ 2,372 $ 4,126 $ 70,187 $ 74,313 $ 2,788 $ - Farmland - 1,984 - 1,984 13,594 15,578 - - Real Estate 2,250 1,202 536 3,988 173,798 177,786 1,714 - Multi-Family - - - - 8,504 8,504 - - Commercial Real Estate 840 287 - 1,127 154,383 155,510 - - Home Equity – closed end 273 5 - 278 10,911 11,189 - - Home Equity – open end 488 100 173 761 54,700 55,461 436 - Commercial & Industrial – Non- Real Estate 264 110 481 855 37,195 38,050 481 - Consumer 13 23 5 41 7,287 7,328 5 - Dealer Finance 1,052 287 148 1,487 72,080 73,567 238 - Credit Cards 16 16 - 32 2,642 2,674 - - Total $ 5,258 $ 5,706 $ 3,715 $ 14,679 $ 605,281 $ 619,960 $ 5,662 $ - 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

4. Allowance for Loan Losses (T

4. Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2017
Allowance For Loan Losses Tables
Summary Loan Loss Allowance Transactions	September 30, 2017 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 3,381 $ - $ - $ (213 ) $ 3,168 $ 2,054 $ 1,114 Farmland 34 - - (4 ) 30 - 30 Real Estate 843 - 2 (105 ) 740 214 526 Multi-Family 23 - - (2 ) 21 - 21 Commercial Real Estate 705 - 11 (165 ) 551 - 551 Home Equity – closed end 75 8 25 (20 ) 72 - 72 Home Equity – open end 470 25 - (85 ) 360 - 360 Commercial & Industrial – Non-Real Estate 586 31 66 (249 ) 372 - 372 Consumer 78 34 11 55 110 - 110 Dealer Finance 1,289 1,395 816 751 1,461 12 1,449 Credit Cards 59 69 30 37 57 - 57 Total $ 7,543 $ 1,562 $ 961 $ - $ 6,942 $ 2,280 $ 4,662 December 31, 2016 Beginning Balance Charge-offs Recoveries Provision 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
Schedule of Recorded Investment in Loan Receivables	September 30, 2017 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 74,313 $ 10,403 $ 63,910 Farmland 15,578 1,983 13,595 Real Estate 177,786 1,932 175,854 Multi-Family 8,504 - 8,504 Commercial Real Estate 155,510 300 155,210 Home Equity – closed end 11,189 - 11,189 Home Equity –open end 55,461 - 55,461 Commercial & Industrial – Non-Real Estate 38,050 162 37,888 Consumer 7,328 9 7,319 Dealer Finance 73,567 73 73,494 Credit Cards 2,674 - 2,674 Total $ 619,960 $ 14,862 $ 605,098 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 Total $ 591,636 $ 15,042 $ 576,594
Schedule of Loan Portfolio by internal loan grade	September 30, 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 $ - $ 730 $ 12,931 $ 36,673 $ 10,285 $ 4,989 $ 8,705 $ - $ 74,313 Farmland 64 333 3,897 4,459 4,348 494 1,983 - 15,578 Real Estate - 1,404 53,245 95,135 19,963 5,285 2,754 - 177,786 Multi-Family - 249 2,898 5,177 180 - - - 8,504 Commercial Real Estate - 2,811 43,962 97,798 9,312 1,040 587 - 155,510 Home Equity – closed end - 130 3,815 4,499 1,298 1,442 5 - 11,189 Home Equity – open end 84 2,612 16,619 31,730 3,771 142 503 - 55,461 Commercial & Industrial (Non-Real Estate) 277 1,460 15,039 19,061 1,368 322 523 - 38,050 Consumer (excluding dealer) 47 362 2,640 415 1,187 2,202 475 - 7,328 Total $ 472 $ 10,091 $ 155,046 $ 294,947 $ 51,712 $ 15,916 $ 15,535 $ - $ 543,719 Credit Cards Dealer Finance Performing $ 2,674 $ 73,329 Non performing - 238 Total $ 2,674 $ 73,567 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

5. Employee Benefit Plan (Table

5. Employee Benefit Plan (Tables)	9 Months Ended
	Sep. 30, 2017
Employee Benefit Plan Tables Abstract
Schedule of Employee Benefit Plan	(dollars in thousands) Nine Months Ended Three Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 20, 2016 Service cost $ 522 $ 474 $ 174 $ 158 Interest cost 365 340 122 113 Expected return on plan assets (638 ) (641 ) (213 ) (214 ) Amortization of prior service cost (11 ) (11 ) (4 ) (4 ) Amortization of net (gain) or loss 213 167 71 56 Net periodic pension cost $ 451 $ 329 $ 150 $ 109

6. Fair Value (Tables)

6. Fair Value (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Tables
Schedule of Assets and Liabilities at Fair Value on Recurring Basis	September 30, 2017 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 21,998 $ 21,998 $ - $ - Mortgage-backed obligations of federal agencies 549 - 549 - Equity securities 135 - 135 - Total securities available for sale $ 22,682 $ 21,998 $ 684 - 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 -
Schedule of Assets and Liabilities at Fair Value on Non-recurring Basis	September 30, 2017 Total Level 1 Level 2 Level 3 Construction/Land Development $ 3,565 - - $ 3,565 Real Estate 978 - - 978 Dealer Finance 36 - - 36 Impaired loans $ 4,579 - - $ 4,579 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
Schedule of Fair value measurements	Fair Value at September 30, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 4,579 Discounted appraised value Discount for selling costs and marketability 3%-19% (Average 5.1%) Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 6,683 Discounted appraised value Discount for selling costs and marketability 2%-50% (Average 4.7%) September 30, 2017 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,148 - - $ 2,148 December 31, 2016 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,076 - - $ 2,076 Fair Value at September 30, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,148 Discounted appraised value Discount for selling costs 5%-15% (Average 8%) Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,076 Discounted appraised value Discount for selling costs 5%-15% (Average 8%)

7. Disclosures About Fair Val26

7. Disclosures About Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosures About Fair Value Of Financial Instruments Tables
Schedule of Carrying Value and Estimated Fair Value for Financial Instruments	Fair Value Measurements at September 30, 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 September 30, 2017 Assets: Cash and cash equivalents $ 9,746 $ 9,746 $ - $ - $ 9,746 Securities 22,807 21,998 809 - 22,807 Loans held for sale 58,177 - 58,177 - 58,177 Loans held for investment, net 613,018 - - 642,322 642,322 Interest receivable 1,845 - 1,845 - 1,845 Bank owned life insurance 13,841 - 13,841 - 13,841 Total $ 719,434 $ 31,744 $ 74,672 $ 642,322 $ 762,338 Liabilities: Deposits $ 562,380 $ - $ 398,229 $ 165,926 $ 564,155 Short-term debt 42,128 - 42,128 - 42,128 Long-term debt 50,840 - - 50,943 50,943 Interest payable 239 - 239 - 239 Total $ 655,587 $ - $ 440,596 $ 216,869 $ 657,465 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

8. Troubled Debt Restructuring

8. Troubled Debt Restructuring (Tables)	9 Months Ended
	Sep. 30, 2017
Troubled Debt Restructuring Abstract
Schedule of Troubled debt restructuring	September 30, 2017 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Consumer 1 $ 18 $ 18 Total 1 $ 18 $ 18 September 30, 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 Total 1 $ 67 $ 67 Nine Months ended September 30, 2016 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 2 $ 142 $ 142 Consumer 3 33 33 Total 5 $ 175 $ 175 Three Months ended September 30, 2016 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Consumer 1 $ 6 $ 6 Total 1 $ 6 $ 6

9. Accumulated Other Comprehe28

9. Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Loss
Schedule of Accumulated Other Comprehensive Loss	(dollars in thousands) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2016 $ 6 $ (3,171 ) $ (3,165 ) Change in unrealized securities gains (losses), net of tax (1 ) - (1 ) Change in unfunded pension liability, net of tax - - - Balance at September 30, 2017 $ 5 $ (3,171 ) $ (3,166 ) (dollars in thousands) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ 3 $ (2,683 ) $ (2,680 ) Change in unrealized securities gains, net of tax 22 - 22 Change in unfunded pension liability, net of tax - - - Balance at September 30, 2016 $ 25 $ (2,683 ) $ (2,658 )

10. Business Segments (Tables)

10. Business Segments (Tables)	9 Months Ended
	Sep. 30, 2017
Business Segments Tables
Schedule of Business Segments	The Company utilizes its subsidiaries to provide multiple business segments including retail banking, mortgage banking, title insurance services, investment services and credit life and accident and health insurance products related to lending. Revenues from retail banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage Banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from title insurance services, investment services and insurance products consist of commissions on products provided. The following tables represent revenues and expenses by segment for the three and nine months ended September 30, 2017 and 2016. Nine Months Ended September 30, 2017 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 24,815 $ 97 $ 112 $ - $ - $ (70 ) $ 24,954 Service charges on deposits 1,010 - - - - - 1,010 Investment services and insurance income 1 - 529 - - - 530 Mortgage banking income, net - 1,974 - - - - 1,974 Title insurance income - - - 668 - - 668 Income from bank owned life insurance 336 - - - - - 336 Low income housing partnership losses (587 ) - - - - - (587 ) ATM and check card fees 1,034 - - - - - 1,034 Gain on prepayment of long-term debt 504 - - - - - 504 Loss on investments - (40 ) (2 ) - - - (42 ) Other operating income 513 - - - - - 513 Total income 27,626 2,031 639 668 - (70 ) 30,894 Expenses: Interest Expense 2,866 65 - - - (70 ) 2,861 Provision for loan losses - - - - - - - Salary expense 6,781 1,035 341 345 - - 8,502 Employee benefit expense 2,245 168 - 54 - - 2,467 Occupancy expense 624 115 - 37 - - 776 Equipment expense 551 39 - 23 - - 613 FDIC insurance assessment 200 - - - - - 200 Other real estate owned, net 22 - - - - - 22 Marketing expense 352 42 6 4 - - 404 Legal and professional fees 246 7 - - - - 253 ATM and check card fees 526 3 - - - - 529 Telecom and data processing expense 967 78 - - - - 1,045 Directors fees 315 45 - - - - 360 Bank franchise Tax 491 - - - - - 491 Other operating expenses 2,127 262 17 54 4 - 2,464 Total expense 18,313 1,859 364 517 4 (70 ) 20,987 Income tax expense (benefit) 2,603 - 83 - (53 ) - 2,633 Net income $ 6,710 $ 172 $ 192 $ 151 $ 49 $ - $ 7,274 Net income attributable to noncontrolling interest - 51 - - - - 51 Net Income attributable to F & M Bank Corp. $ 6,710 $ 121 $ 192 $ 151 $ 49 $ - $ 7,223 Total Assets $ 750,048 $ 6,309 $ 6,644 $ 443 $ 91,362 $ (91,121 ) $ 763,685 Goodwill $ 2,670 $ 103 $ - $ - $ 340 $ - $ 3,113 Three Months Ended September 30, 2017 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,644 $ 32 $ 37 $ - $ - $ (25 ) $ 8,688 Service charges on deposits 359 - - - - - 359 Investment services and insurance income - - 169 - - - 169 Mortgage banking income, net - 861 - - - - 861 Title insurance income - - - 247 - - 247 Income from bank owned life insurance 113 - - - - - 113 Low income housing partnership losses (201 ) - - - - - (201 ) ATM and check card fees 352 - - - - - 352 Gain on prepayment of long-term debt - - - - - - - Loss on investments - - - - - - - Other operating income 246 - - - - - 246 Total income 9,513 893 206 247 - (25 ) 10,834 Expenses: Interest Expense 1,032 24 - - - (25 ) 1,031 Provision for loan losses - - - - - - - Salary expense 2,326 586 107 175 - - 3,194 Employee benefit expense 722 1 - (34 ) - - 689 Occupancy expense 221 48 - 12 - - 281 Equipment expense 192 20 - 12 - - 224 FDIC insurance assessment 20 - - - - - 20 Other real estate owned, net (3 ) - - - - - (3 ) Marketing expense 136 8 2 2 - - 148 Legal and professional fees 75 3 - - - - 78 ATM and check card fees 182 1 - - - - 183 Telecom and data processing expense 342 28 - - - - 370 Directors fees 105 11 - - - - 116 Bank franchise Tax 166 - - - - - 166 Other operating expenses 767 2 4 20 - - 793 Total expense 6,283 732 113 187 - (25 ) 7,290 Income tax expense (benefit) 933 - 30 - (17 ) - 946 Net income $ 2,297 $ 161 $ 63 $ 60 $ 17 $ - $ 2,598 Net income attributable to noncontrolling interest - 48 - - - - 48 Net Income attributable to F & M Bank Corp. $ 2,297 $ 113 $ 63 $ 60 $ 17 $ - $ 2,550 Nine Months Ended September 30, 2016 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 23,653 $ 30 $ 114 $ - $ - $ (4 ) $ 23,793 Service charges on deposits 842 - - - - - 842 Investment services and insurance income 1 - 316 - - - 317 Mortgage banking income, net - 1,891 - - - - 1,891 Income from bank owned life insurance 356 - - - - - 356 Low income housing partnership losses (548 ) - - - - - (548 ) ATM and check card fees 1,020 - - - - - 1,020 Gain on prepayment of long-term debt - - - - - - - Loss on investments - - - - - - - Other operating income 238 - - - - - 238 Total income 25,562 1,921 430 - - (4 ) 27,909 Expenses: Interest Expense 2,649 - - - - (4 ) 2,645 Provision for loan losses - - - - - - - Salary expense 6,117 823 221 - - - 7,161 Employee benefit expense 1,927 186 - - - - 2,113 Occupancy expense 552 91 - - - - 643 Equipment expense 536 33 - - - - 569 FDIC insurance assessment 338 - - - - - 338 Other real estate owned, net 72 - - - - - 72 Marketing expense 356 39 1 - - - 396 Legal and professional fees 286 7 - - - - 293 ATM and check card fees 514 4 - - - - 518 Telecom and data processing expense 795 66 - - - - 861 Directors fees 234 20 - - - - 254 Bank franchise Tax 480 - - - - - 480 Other operating expenses 2,011 138 26 - 1 - 2,176 Total expense 16,867 1,407 248 - 1 (4 ) 18,519 Income tax expense (benefit) 2,353 - 48 - (214 ) - 2,187 Net income $ 6,342 $ 514 $ 134 $ - $ 213 $ - $ 7,203 Net income attributable to noncontrolling interest - 154 - - - - 154 Net Income attributable to F & M Bank Corp. $ 6,342 $ 360 $ 134 $ - $ 213 $ - $ 7,049 Total Assets $ 736,642 $ 2,492 $ 6,315 $ - $ 87,369 $ (87,526 ) $ 745,292 Goodwill $ 2,670 $ - $ - $ - $ - $ - $ 2,670 Three Months Ended September 30, 2016 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,160 $ 17 $ 39 $ - $ - $ (1 ) $ 8,215 Service charges on deposits 336 - - - - - 336 Investment services and insurance income - - 112 - - - 112 Mortgage banking income, net - 694 - - - - 694 Income from bank owned life insurance 119 - - - - - 119 Low income housing partnership losses (183 ) - - - - - (183 ) ATM and check card fees 328 - - - - - 328 Other operating income 129 - - - - - 129 Total income 8,889 711 151 - - (1 ) 9,750 Expenses: Interest Expense 971 - - - - (1 ) 970 Provision for loan losses - - - - - - - Salary expense 2,094 295 82 - - - 2,471 Employee benefit expense 628 71 - - - - 699 Occupancy expense 185 30 - - - - 215 Equipment expense 181 2 - - - - 183 FDIC insurance assessment 113 - - - - - 113 Other real estate owned, net 19 - - - - - 19 Marketing expense 120 6 2 - - - 128 Legal and professional fees 98 2 - - - - 100 ATM and check card fees 183 1 - - - - 184 Telecom and data processing expense 286 23 - - - - 309 Directors fees 42 4 - - - - 46 Bank franchise Tax 170 - - - - - 170 Other operating expenses 755 63 5 - - - 823 Total expense 5,845 497 89 - - (1 ) 6,430 Income tax expense (benefit) 770 - 16 - (132 ) - 654 Net income $ 2,274 $ 214 $ 46 $ - $ 132 $ - $ 2,666 Net income attributable to noncontrolling interest - 64 - - - - 64 Net Income attributable to F & M Bank Corp. $ 2,274 $ 150 $ 46 $ - $ 132 $ - $ 2,602

1. Summary of Significant Acc30

1. Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings available to common stockholders:
Net income	$ 2,598	$ 2,666	$ 7,274	$ 7,203
Noncontrolling interest income (loss)	48	64	51	154
Preferred stock dividends	103	128	312	382
Net income available to common stockholders	$ 2,447	$ 2,474	$ 6,911	$ 6,667

1. Summary of Significant Acc31

1. Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Summary Of Significant Accounting Policies
Basic EPS, Income	$ 2,447	$ 2,474	$ 6,911	$ 6,667
Effect of Dilutive Securities Convertible Preferred Stock, Income	103	128	312	382
Diluted EPS, Income	$ 2,550	$ 2,602	$ 7,223	$ 7,049
Diluted EPS, Shares	3,270,969	3,286,756	3,271,863	3,286,165
Effect of Dilutive Securities Convertible Preferred Stock, Shares	361,638	444,400	362,993	444,400
Diluted EPS, Shares	3,632,607	3,731,156	3,634,856	3,730,565
Basic EPS, Per Shares	$ 0.75	$ 0.75	$ 2.11	$ 2.03
Effect of Dilutive Securities Convertible Preferred Stock, Per Shares	(.05)	(.05)	(.12)	(.14)
Diluted EPS, Per Shares	$ .70	$ .70	$ 1.99	$ 1.89

2. Investment Securities (Detai

2. Investment Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Securities available for sale
Cost	$ 22,675	$ 24,774
Unrealized Gains	10	9
Unrealized Losses	3	0
Market Value	22,682	24,783	[1]
U. S. Treasuries [Member]
Securities available for sale
Cost	22,001	24,005
Unrealized Gains	0	9
Unrealized Losses	3	0
Market Value	21,998	24,014
Securities held to maturity
Cost	125	125
Market Value	125	125
Mortgage-backed securities [Member]
Securities available for sale
Cost	539	634
Unrealized Gains	10	0
Unrealized Losses	0	0
Market Value	549	634
Marketable Equities [Member]
Securities available for sale
Cost	135	135
Unrealized Gains	0	0
Unrealized Losses	0	0
Market Value	135	135
U. S. Treasury and agency obligations [Member]
Securities available for sale
Unrealized Gains	0	0
Unrealized Losses	0	0
Securities held to maturity
Cost	125	125
Market Value	$ 125	$ 125
[1]	2016 Derived from audited consolidated financial statements.

2. Investment Securities (Det33

2. Investment Securities (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	[1]
Total, Amortized Cost	$ 125	$ 125
Securities Held to Maturity [Member]
Due in one year or less, Amortized Cost	0
Due after one year through five years, Amortized Cost	125
Due after five years, Amortized Cost	0
Due after five years, Amortized Cost	0
Total, Amortized Cost	125
Due in one year or less, Fair Value	0
Due after one year through five years, Fair Value	125
Due after five years, Fair Value	0
Due after five years, Fair Value	0
Total, Fair Value	125
Securities Available for Sale [Member]
Due in one year or less, Amortized Cost	22,001
Due after one year through five years, Amortized Cost	0
Due after five years, Amortized Cost	539
Due after five years, Amortized Cost	135
Total, Amortized Cost	22,675
Due in one year or less, Fair Value	21,998
Due after one year through five years, Fair Value	0
Due after five years, Fair Value	549
Due after five years, Fair Value	135
Total, Fair Value	$ 22,682
[1]	2016 Derived from audited consolidated financial statements.

2. Investment securities (Det34

2. Investment securities (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Invetment Securities Details 3Abstract
Other investments	$ 13,600	$ 14,567	[1]
[1]	2016 Derived from audited consolidated financial statements.

3. Loans (Details)

3. Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Loans outstanding	$ 619,960	$ 591,636
Construction/Land Development [Member]
Loans outstanding	74,313	76,172
Farmland [Member]
Loans outstanding	15,578	12,901
Real Estate [Member]
Loans outstanding	177,786	172,758
Multi-Family [Member]
Loans outstanding	8,504	7,605
Commercial Real Estate [Member]
Loans outstanding	155,510	150,061
Home Equity - Closed End [Member]
Loans outstanding	11,189	11,453
Home Equity [Member]
Loans outstanding	55,461	54,420
Commercial & Industrial - Non-Real Estate [Member]
Loans outstanding	38,050	31,306
Consumer [Member]
Loans outstanding	7,328	6,643
Dealer Finance [Member]
Loans outstanding	73,567	65,495
Credit Cards [Member]
Loans outstanding	$ 2,674	$ 2,822

3. Loans (Details 1)

3. Loans (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Impaired loans without a valuation allowance
Recorded Investment	$ 8,003		$ 8,003		$ 6,205
Unpaid Principal Balance	8,706		8,706		6,908
Average Recorded Investment	8,822	$ 5,589	8,227	$ 4,914
Interest Income Recognized	34	68	111	150
Impaired loans with a valuation allowance
Recorded Investment	6,859		6,859		8,837
Unpaid Principal Balance	6,859		6,859		8,837
Related Allowance	2,280		2,280		2,154
Average Recorded Investment	6,893	11,921	7,470	13,107
Interest Income Recognized	86	134	258	311
Total impaired loans
Recorded Investment	14,862		14,862		15,042
Unpaid Principal Balance	15,565		15,565		15,745
Related Allowance	2,280		2,280		2,154
Average Recorded Investment	15,715	17,510	15,697	18,021
Interest Income Recognized	120	202	369	461
Construction/Land Development [Member]
Impaired loans without a valuation allowance
Recorded Investment	4,784		4,784		3,296
Unpaid Principal Balance	5,140		5,140		3,652
Related Allowance	0		0		0
Average Recorded Investment	5,414	2,649	4,870	2,009
Interest Income Recognized	14	15	64	32
Impaired loans with a valuation allowance
Recorded Investment	5,619		5,619		6,592
Unpaid Principal Balance	5,619		5,619		6,592
Related Allowance	2,054		2,054		1,853
Average Recorded Investment	5,640	8,429	6,215	9,761
Interest Income Recognized	75	112	215	212
Farmland [Member]
Impaired loans without a valuation allowance
Recorded Investment	1,983		1,983		0
Unpaid Principal Balance	1,983		1,983		0
Related Allowance	0		0		0
Average Recorded Investment	1,921	0	1,900	0
Interest Income Recognized	0	0	0	0
Impaired loans with a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Real Estate [Member]
Impaired loans without a valuation allowance
Recorded Investment	740		740		768
Unpaid Principal Balance	740		740		768
Related Allowance	0		0		0
Average Recorded Investment	743	778	746	860
Interest Income Recognized	8	8	25	28
Impaired loans with a valuation allowance
Recorded Investment	1,192		1,192		1,206
Unpaid Principal Balance	1,192		1,192		1,206
Related Allowance	214		214		221
Average Recorded Investment	1,194	1,214	1,196	994
Interest Income Recognized	10	14	41	40
Multi-Family [Member]
Impaired loans without a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Impaired loans with a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Commercial Real Estate [Member]
Impaired loans without a valuation allowance
Recorded Investment	300		300		1,958
Unpaid Principal Balance	300		300		1,958
Related Allowance	0		0		0
Average Recorded Investment	200	993	167	674
Interest Income Recognized	9	77	12	79
Impaired loans with a valuation allowance
Recorded Investment	0		0		952
Unpaid Principal Balance	0		0		952
Related Allowance	0		0		60
Average Recorded Investment	0	958	0	944
Interest Income Recognized	0	14	0	42
Home Equity - Closed End [Member]
Impaired loans without a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Impaired loans with a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Home Equity [Member]
Impaired loans without a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	347		347		347
Related Allowance	0		0		0
Average Recorded Investment	347	964	347	1,167
Interest Income Recognized	0	(35)	0	8
Impaired loans with a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	1,234	0	1,322
Interest Income Recognized	0	(5)	0	14
Commercial & Industrial - Non-Real Estate [Member]
Impaired loans without a valuation allowance
Recorded Investment	162		162		170
Unpaid Principal Balance	162		162		170
Related Allowance	0		0		0
Average Recorded Investment	164	174	165	177
Interest Income Recognized	2	2	8	2
Impaired loans with a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	14	0	14
Interest Income Recognized	0	(1)	0	0
Consumer [Member]
Impaired loans without a valuation allowance
Recorded Investment	9		9		13
Unpaid Principal Balance	9		9		13
Related Allowance	0		0		0
Average Recorded Investment	10	7	10	12
Interest Income Recognized	0	2	0	0
Impaired loans with a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Credit Cards [Member]
Impaired loans without a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Impaired loans with a valuation allowance
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment	0	0	0	0
Interest Income Recognized	0	0	0	0
Dealer Finance [Member]
Impaired loans without a valuation allowance
Recorded Investment	25		25		0
Unpaid Principal Balance	25		25		0
Related Allowance	0		0		0
Average Recorded Investment	23	24	22	15
Interest Income Recognized	1	(1)	2	1
Impaired loans with a valuation allowance
Recorded Investment	48		48		87
Unpaid Principal Balance	48		48		87
Related Allowance	12		12		$ 20
Average Recorded Investment	59	72	59	72
Interest Income Recognized	$ 1	$ 0	$ 2	$ 3

3. Loans (Details 2)

3. Loans (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
30-59 Days Past due	$ 5,258	$ 4,095
60-89 Days Past due	5,706	1,047
Greater than 90 Days (excluding non-accrual)	3,715	3,239
Total past due	14,679	8,381
Current	605,281	583,255
Total Loans Receivable	619,960	591,636
Non-Accrual Loans	5,662	4,763
Recorded Investment >90 days & accruing	0	107
Credit Cards [Member]
30-59 Days Past due	16	18
60-89 Days Past due	16	4
Greater than 90 Days (excluding non-accrual)	0	0
Total past due	32	22
Current	2,642	2,800
Total Loans Receivable	2,674	2,822
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Construction/Land Development [Member]
30-59 Days Past due	62	73
60-89 Days Past due	1,692	101
Greater than 90 Days (excluding non-accrual)	2,372	2,175
Total past due	4,126	2,349
Current	70,187	73,823
Total Loans Receivable	74,313	76,172
Non-Accrual Loans	2,788	2,805
Recorded Investment >90 days & accruing	0	0
Farmland [Member]
30-59 Days Past due	0	0
60-89 Days Past due	1,984	0
Greater than 90 Days (excluding non-accrual)	0	0
Total past due	1,984	0
Current	13,594	12,901
Total Loans Receivable	15,578	12,901
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Real Estate [Member]
30-59 Days Past due	2,250	2,135
60-89 Days Past due	1,202	746
Greater than 90 Days (excluding non-accrual)	536	774
Total past due	3,988	3,655
Current	173,798	169,103
Total Loans Receivable	177,786	172,758
Non-Accrual Loans	1,714	1,399
Recorded Investment >90 days & accruing	0	81
Multi-Family [Member]
30-59 Days Past due	0	0
60-89 Days Past due	0	0
Greater than 90 Days (excluding non-accrual)	0	0
Total past due	0	0
Current	8,504	7,605
Total Loans Receivable	8,504	7,605
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Commercial Real Estate [Member]
30-59 Days Past due	840	139
60-89 Days Past due	287	0
Greater than 90 Days (excluding non-accrual)	0	0
Total past due	1,127	139
Current	154,383	149,922
Total Loans Receivable	155,510	150,061
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Home Equity - Closed End [Member]
30-59 Days Past due	273	101
60-89 Days Past due	5	0
Greater than 90 Days (excluding non-accrual)	0	32
Total past due	278	133
Current	10,911	11,320
Total Loans Receivable	11,189	11,453
Non-Accrual Loans	0	32
Recorded Investment >90 days & accruing	0	0
Home Equity [Member]
30-59 Days Past due	488	484
60-89 Days Past due	100	0
Greater than 90 Days (excluding non-accrual)	173	69
Total past due	761	553
Current	54,700	53,867
Total Loans Receivable	55,461	54,420
Non-Accrual Loans	436	279
Recorded Investment >90 days & accruing	0	0
Commercial & Industrial - Non-Real Estate [Member]
30-59 Days Past due	264	313
60-89 Days Past due	110	5
Greater than 90 Days (excluding non-accrual)	481	0
Total past due	855	318
Current	37,195	30,988
Total Loans Receivable	38,050	31,306
Non-Accrual Loans	481	70
Recorded Investment >90 days & accruing	0	0
Consumer [Member]
30-59 Days Past due	13	35
60-89 Days Past due	23	4
Greater than 90 Days (excluding non-accrual)	5	6
Total past due	41	45
Current	7,287	6,598
Total Loans Receivable	7,328	6,643
Non-Accrual Loans	5	0
Recorded Investment >90 days & accruing	0	0
Dealer Finance [Member]
30-59 Days Past due	1,052	797
60-89 Days Past due	287	187
Greater than 90 Days (excluding non-accrual)	148	183
Total past due	1,487	1,167
Current	72,080	64,328
Total Loans Receivable	73,567	65,495
Non-Accrual Loans	238	178
Recorded Investment >90 days & accruing	$ 0	$ 26

3. Loans (Details Narrative)

3. Loans (Details Narrative) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Loans Details Narrative
Loans held for sale	$ 58,177	$ 62,735	[1]
Foreclosed residential real estate in other real estate	$ 93	$ 40
[1]	2016 Derived from audited consolidated financial statements.

4. Allowance for Loan Losses (D

4. Allowance for Loan Losses (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Beginning Balance	$ 7,543	$ 8,781
Charge-offs	1,562	2,261
Recoveries	961	1,023
Provision	0	0
Ending Balance	6,942	7,543
Individually Evaluated for Impairment	2,280	2,154
Collectively Evaluated for Impairment	4,662	5,389
Construction/Land Development [Member]
Beginning Balance	3,381	4,442
Charge-offs	0	356
Recoveries	0	7
Provision	(213)	(712)
Ending Balance	3,168	3,381
Individually Evaluated for Impairment	2,054	1,853
Collectively Evaluated for Impairment	1,114	1,528
Farmland [Member]
Beginning Balance	34	95
Charge-offs	0	0
Recoveries	0	0
Provision	(4)	(61)
Ending Balance	30	34
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	30	34
Real Estate [Member]
Beginning Balance	843	806
Charge-offs	0	23
Recoveries	2	4
Provision	(105)	56
Ending Balance	740	843
Individually Evaluated for Impairment	214	221
Collectively Evaluated for Impairment	526	622
Multi-Family [Member]
Beginning Balance	23	71
Charge-offs	0	0
Recoveries	0	0
Provision	(2)	(48)
Ending Balance	21	23
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	21	23
Commercial Real Estate [Member]
Beginning Balance	705	445
Charge-offs	0	19
Recoveries	11	135
Provision	(165)	144
Ending Balance	551	705
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	551	705
Home Equity - Closed End [Member]
Beginning Balance	75	174
Charge-offs	8	8
Recoveries	25	0
Provision	(20)	(91)
Ending Balance	72	75
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	72	75
Home Equity [Member]
Beginning Balance	470	634
Charge-offs	25	370
Recoveries	0	120
Provision	(85)	86
Ending Balance	360	470
Individually Evaluated for Impairment	0	60
Collectively Evaluated for Impairment	360	410
Commercial & Industrial - Non-Real Estate [Member]
Beginning Balance	586	1,055
Charge-offs	31	293
Recoveries	66	267
Provision	(249)	(443)
Ending Balance	372	586
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	372	586
Consumer [Member]
Beginning Balance	78	108
Charge-offs	34	37
Recoveries	11	19
Provision	55	(12)
Ending Balance	110	78
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	110	78
Dealer Finance [Member]
Beginning Balance	1,289	836
Charge-offs	1,395	1,081
Recoveries	816	417
Provision	751	1,117
Ending Balance	1,461	1,289
Individually Evaluated for Impairment	12	20
Collectively Evaluated for Impairment	1,449	1,269
Credit Cards [Member]
Beginning Balance	59	115
Charge-offs	69	74
Recoveries	30	54
Provision	37	(36)
Ending Balance	57	59
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	$ 57	$ 59

4. Allowance for Loan Losses 40

4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Loan Receivable	$ 619,960	$ 591,636
Loans Individually Evaluated for Impairment	14,862	15,042
Loans Collectively Evaluated for Impairment	605,098	576,594
Construction/Land Development [Member]
Loan Receivable	74,313	76,172
Loans Individually Evaluated for Impairment	10,403	9,888
Loans Collectively Evaluated for Impairment	63,910	66,284
Farmland [Member]
Loan Receivable	15,578	12,901
Loans Individually Evaluated for Impairment	1,983	0
Loans Collectively Evaluated for Impairment	13,595	12,901
Real Estate [Member]
Loan Receivable	177,786	172,758
Loans Individually Evaluated for Impairment	1,932	1,974
Loans Collectively Evaluated for Impairment	175,854	170,784
Multi-Family [Member]
Loan Receivable	8,504	7,605
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	8,504	7,605
Commercial Real Estate [Member]
Loan Receivable	155,510	150,061
Loans Individually Evaluated for Impairment	300	2,910
Loans Collectively Evaluated for Impairment	155,210	147,151
Home Equity - Closed End [Member]
Loan Receivable	11,189	11,453
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	11,189	11,453
Home Equity [Member]
Loan Receivable	55,461	54,420
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	55,461	54,420
Commercial & Industrial - Non-Real Estate [Member]
Loan Receivable	38,050	31,306
Loans Individually Evaluated for Impairment	162	170
Loans Collectively Evaluated for Impairment	37,888	31,136
Consumer [Member]
Loan Receivable	7,328	6,643
Loans Individually Evaluated for Impairment	9	13
Loans Collectively Evaluated for Impairment	7,319	6,630
Dealer Finance [Member]
Loan Receivable	73,567	65,495
Loans Individually Evaluated for Impairment	73	87
Loans Collectively Evaluated for Impairment	73,494	65,408
Credit Cards [Member]
Loan Receivable	2,674	2,822
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	$ 2,674	$ 2,822

4. Allowance for Loan Losses 41

4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Construction/Land Development	$ 74,313	$ 76,172
Farmland	15,578	12,901
Real Estate	177,786	172,758
Multi-Family	8,504	7,605
Commercial Real Estate	155,510	150,061
Home Equity - closed end	11,189	11,453
Home Equity - open end	55,461	54,420
Commercial & Industrial (Non-Real Estate)	38,050	31,306
Consumer (excluding dealer)	7,328	6,643
Total	543,719	523,319
Grade 1 Minimal Risk [Member]
Construction/Land Development	0	0
Farmland	64	65
Real Estate	0	0
Multi-Family	0	0
Commercial Real Estate	0	0
Home Equity - closed end	0	0
Home Equity - open end	84	124
Commercial & Industrial (Non-Real Estate)	277	1,375
Consumer (excluding dealer)	47	67
Total	472	1,631
Grade 2 Modest Risk [Member]
Construction/Land Development	730	1,478
Farmland	333	0
Real Estate	1,404	1,149
Multi-Family	249	311
Commercial Real Estate	2,811	2,793
Home Equity - closed end	130	150
Home Equity - open end	2,612	1,724
Commercial & Industrial (Non-Real Estate)	1,460	1,267
Consumer (excluding dealer)	362	174
Total	10,091	9,046
Grade 3 Average Risk [Member]
Construction/Land Development	12,931	10,870
Farmland	3,897	3,073
Real Estate	53,245	62,168
Multi-Family	2,898	3,009
Commercial Real Estate	43,962	32,986
Home Equity - closed end	3,815	3,966
Home Equity - open end	16,619	16,415
Commercial & Industrial (Non-Real Estate)	15,039	6,827
Consumer (excluding dealer)	2,640	1,837
Total	155,046	141,151
Grade 4 Acceptable Risk [Member]
Construction/Land Development	36,673	43,863
Farmland	4,459	3,456
Real Estate	95,135	74,242
Multi-Family	5,177	4,099
Commercial Real Estate	97,798	91,157
Home Equity - closed end	4,499	4,139
Home Equity - open end	31,730	30,974
Commercial & Industrial (Non-Real Estate)	19,061	19,530
Consumer (excluding dealer)	415	607
Total	294,947	272,065
Grade 5 Marginally Acceptable [Member]
Construction/Land Development	10,285	8,399
Farmland	4,348	4,446
Real Estate	19,963	28,266
Multi-Family	180	186
Commercial Real Estate	9,312	19,181
Home Equity - closed end	1,298	1,746
Home Equity - open end	3,771	4,547
Commercial & Industrial (Non-Real Estate)	1,368	2,198
Consumer (excluding dealer)	1,187	1,242
Total	51,712	70,211
Grade 6 Watch [Member]
Construction/Land Development	4,989	2,473
Farmland	494	1,861
Real Estate	5,285	4,680
Multi-Family	0	0
Commercial Real Estate	1,040	1,840
Home Equity - closed end	1,442	1,414
Home Equity - open end	142	125
Commercial & Industrial (Non-Real Estate)	322	39
Consumer (excluding dealer)	2,202	2,252
Total	15,916	14,684
Grade 7 Substandard [Member]
Construction/Land Development	8,705	9,089
Farmland	1,983	0
Real Estate	2,754	2,253
Multi-Family	0	0
Commercial Real Estate	587	2,104
Home Equity - closed end	5	38
Home Equity - open end	503	511
Commercial & Industrial (Non-Real Estate)	523	70
Consumer (excluding dealer)	475	466
Total	15,535	14,531
Grade 8 Doubtful [Member]
Construction/Land Development	0	0
Farmland	0	0
Real Estate	0	0
Multi-Family	0	0
Commercial Real Estate	0	0
Home Equity - closed end	0	0
Home Equity - open end	0	0
Commercial & Industrial (Non-Real Estate)	0	0
Consumer (excluding dealer)	0	0
Total	$ 0	$ 0

4. Allowance for Loan Losses 42

4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Credit cards	$ 2,674	$ 2,822
Dealer Finance	73,567	65,495
Performing [Member]
Credit cards	2,674	2,822
Dealer Finance	73,329	65,291
Non performing [Member]
Credit cards	0	0
Dealer Finance	$ 238	$ 204

5. Employee Benefit Plan (Detai

5. Employee Benefit Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Benefit Plan Details Abstract
Service cost	$ 174	$ 158	$ 522	$ 474
Interest cost	122	113	365	340
Expected return on plan assets	(213)	(214)	(638)	(641)
Amortization of prior service cost	(4)	(4)	(11)	(11)
Amortization of net (gain) or loss	71	56	213	167
Net periodic pension cost	$ 150	$ 109	$ 451	$ 329

6. Fair Value (Details)

6. Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Total assets at fair value	$ 22,682	$ 24,783
Fair Value Inputs Level 1 [Member]
Total assets at fair value	21,998	24,014
Fair Value Inputs Level 2 [Member]
Total assets at fair value	684	769
Fair Value Inputs Level 3 [Member]
Total assets at fair value	0	0
U. S. Treasuries [Member]
Total assets at fair value	21,998	24,014
U. S. Treasuries [Member] | Fair Value Inputs Level 1 [Member]
Total assets at fair value	21,998	24,014
U. S. Treasuries [Member] | Fair Value Inputs Level 2 [Member]
Total assets at fair value	0	0
U. S. Treasuries [Member] | Fair Value Inputs Level 3 [Member]
Total assets at fair value	0	0
Mortgage-backed obligations of federal agencies [Member]
Total assets at fair value	549	634
Mortgage-backed obligations of federal agencies [Member] | Fair Value Inputs Level 1 [Member]
Total assets at fair value	0	0
Mortgage-backed obligations of federal agencies [Member] | Fair Value Inputs Level 2 [Member]
Total assets at fair value	549	634
Mortgage-backed obligations of federal agencies [Member] | Fair Value Inputs Level 3 [Member]
Total assets at fair value	0	0
Marketable Equities [Member]
Total assets at fair value	135	135
Marketable Equities [Member] | Fair Value Inputs Level 1 [Member]
Total assets at fair value	0	0
Marketable Equities [Member] | Fair Value Inputs Level 2 [Member]
Total assets at fair value	135	135
Marketable Equities [Member] | Fair Value Inputs Level 3 [Member]
Total assets at fair value	0	0
Securities Available for Sale [Member]
Total assets at fair value	22,682	24,783
Securities Available for Sale [Member] | Fair Value Inputs Level 1 [Member]
Total assets at fair value	21,998	24,014
Securities Available for Sale [Member] | Fair Value Inputs Level 2 [Member]
Total assets at fair value	684	634
Securities Available for Sale [Member] | Fair Value Inputs Level 3 [Member]
Total assets at fair value	$ 0	$ 0

6. Fair Value (Details 1)

6. Fair Value (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Impaired loans	$ 4,579	$ 6,683
Fair Value Inputs Level 1 [Member]
Impaired loans	0	0
Fair Value Inputs Level 2 [Member]
Impaired loans	0	0
Fair Value Inputs Level 3 [Member]
Impaired loans	4,579	6,683
Construction/Land Development [Member]
Impaired loans	3,565	4,739
Construction/Land Development [Member] | Fair Value Inputs Level 1 [Member]
Impaired loans	0	0
Construction/Land Development [Member] | Fair Value Inputs Level 2 [Member]
Impaired loans	0	0
Construction/Land Development [Member] | Fair Value Inputs Level 3 [Member]
Impaired loans	3,565	4,739
Real Estate [Member]
Impaired loans	978	985
Real Estate [Member] | Fair Value Inputs Level 1 [Member]
Impaired loans	0	0
Real Estate [Member] | Fair Value Inputs Level 2 [Member]
Impaired loans	0	0
Real Estate [Member] | Fair Value Inputs Level 3 [Member]
Impaired loans	978	985
Dealer Finance [Member]
Impaired loans	36	67
Dealer Finance [Member] | Fair Value Inputs Level 1 [Member]
Impaired loans	0	0
Dealer Finance [Member] | Fair Value Inputs Level 2 [Member]
Impaired loans	0	0
Dealer Finance [Member] | Fair Value Inputs Level 3 [Member]
Impaired loans	$ 36	67
Commercial Real Estate [Member]
Impaired loans		892
Commercial Real Estate [Member] | Fair Value Inputs Level 1 [Member]
Impaired loans		0
Commercial Real Estate [Member] | Fair Value Inputs Level 2 [Member]
Impaired loans		0
Commercial Real Estate [Member] | Fair Value Inputs Level 3 [Member]
Impaired loans		$ 892

6. Fair Value (Details 2)

6. Fair Value (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Impaired Loans	$ 4,579	$ 6,683
Fair Value Inputs Level 3 [Member]
Impaired Loans	4,579	6,683
Other Real Estate Owned	$ 2,148	$ 2,076
Valuation Technique Impaired Loans	Discounted appraised value	Discounted appraised value
Valuation Technique Other Real Estate Owned	Discounted appraised value	Discounted appraised value
Significant Unobservable Inputs Impaired Loans	Discount for selling costs and marketability	Discount for selling costs and marketability
Significant Unobservable Inputs Other Real Estate Owned	Discount for selling costs	Discount for selling costs
Average Impaired Loans	5.10%	4.70%
Average Other Real Estate Owned	4.70%	4.70%
Fair Value Inputs Level 3 [Member] | Minimum [Member]
Range Impaired Loans	3.00%	2.00%
Range Other Real Estate Owned	5.00%	5.00%
Fair Value Inputs Level 3 [Member] | Maximum [Member]
Range Impaired Loans	19.00%	50.00%
Range Other Real Estate Owned	15.00%	15.00%

7. Disclosures About Fair Val47

7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents, Carrying amount	$ 9,746	$ 16,355	[1]
Cash and cash equivalents, Fair value	9,746	16,355
Securities, Carrying amount	22,807	24,908
Securities, Fair value	22,807	24,908
Loans held for sale, Carrying Amount	58,177	62,735
Loans held for sale, Fair Value	58,177	62,735
Loans held for investment, net, Carrying Amount	613,018	584,093
Loans held for investment, net, Fair Value	642,322	598,991
Interest receivable, Carrying Amount	1,845	1,785	[1]
Interest receivable, Fair Value	1,845	1,785
Bank owned life insurance, Carrying Amount	13,841	13,513	[1]
Bank owned life insurance, Fair Value	13,841	13,513
Total Assets, Carrying Amount	719,434	703,389
Total Assets, Fair Value	762,338	718,287
Liabilities
Deposits, Carrying Amount	562,380	537,085
Deposits, Fair Value	564,155	537,930
Short-term debt, Carrying Amount	42,128	40,000
Short-term debt, Fair Value	42,128	40,000
Long-term debt, Carrying Amount	50,840	64,237
Long-term debt, Fair Value	50,943	63,945
Interest payable, Carrying Amount	239	228
Interest payable, Fair Value	239	228
Total Liabilities, Carrying Amount	655,587	641,550
Total Liabilities, Fair Value	657,465	642,103
Quoted Prices in Active Markets for Identical Assets (Level 1) for selling costs
Assets:
Cash and cash equivalents, Fair value	9,746	16,355
Securities, Fair value	21,998	24,014
Loans held for sale, Fair Value	0	0
Loans held for investment, net, Fair Value	0	0
Interest receivable, Fair Value	0	0
Bank owned life insurance, Fair Value	0	0
Total Assets, Fair Value	31,744	40,369
Liabilities
Deposits, Fair Value	0	0
Short-term debt, Fair Value	0	0
Long-term debt, Fair Value	0	0
Interest payable, Fair Value	0	0
Total Liabilities, Fair Value	0	0
Fair Value Inputs Level 2 [Member]
Assets:
Cash and cash equivalents, Fair value	0	0
Securities, Fair value	809	894
Loans held for sale, Fair Value	58,177	62,735
Loans held for investment, net, Fair Value	0	0
Interest receivable, Fair Value	1,845	1,785
Bank owned life insurance, Fair Value	13,841	13,513
Total Assets, Fair Value	74,672	78,927
Liabilities
Deposits, Fair Value	398,229	379,857
Short-term debt, Fair Value	42,128	40,000
Long-term debt, Fair Value	0	0
Interest payable, Fair Value	239	228
Total Liabilities, Fair Value	440,596	420,085
Fair Value Inputs Level 3 [Member]
Assets:
Cash and cash equivalents, Fair value	0	0
Securities, Fair value	0	0
Loans held for sale, Fair Value	0	0
Loans held for investment, net, Fair Value	642,322	598,991
Interest receivable, Fair Value	0	0
Bank owned life insurance, Fair Value	0	0
Total Assets, Fair Value	642,322	598,991
Liabilities
Deposits, Fair Value	165,926	158,073
Short-term debt, Fair Value	0	0
Long-term debt, Fair Value	50,943	63,945
Interest payable, Fair Value	0	0
Total Liabilities, Fair Value	$ 216,869	$ 222,018
[1]	2016 Derived from audited consolidated financial statements.

8. Troubled Debt Restructurin48

8. Troubled Debt Restructuring (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)Integer	Sep. 30, 2016USD ($)Integer	Sep. 30, 2017USD ($)Integer
Number of Contracts | Integer	1	5
Pre-Modification Outstanding Recorded Investment	$ 6	$ 175
Post-Modification Outstanding Recorded Investment	$ 6	$ 175
Consumer [Member]
Number of Contracts | Integer	1	3
Pre-Modification Outstanding Recorded Investment	$ 6	$ 33
Post-Modification Outstanding Recorded Investment	$ 6	$ 33
Number of Contracts | Integer			1
Pre-Modification Outstanding Recorded Investment			$ 18
Post-Modification Outstanding Recorded Investment			$ 18
Real Estate [Member]
Number of Contracts | Integer		2
Pre-Modification Outstanding Recorded Investment		$ 142
Post-Modification Outstanding Recorded Investment		$ 142
Number of Contracts | Integer			1
Pre-Modification Outstanding Recorded Investment			$ 67
Post-Modification Outstanding Recorded Investment			$ 67

9. Accumulated Other Comprehe49

9. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Unrealized Securities Gains (Losses) [Member]
Balance at December 31, 2016	$ 6	$ 3
Change in unrealized securities gains (losses), net of tax	(1)	22
Change in unfunded pension liability, net of tax	0	0
Balance at September 30, 2017	5	25
Adjustments Related to Pension Plan [Member]
Balance at December 31, 2016	(3,171)	(2,683)
Change in unrealized securities gains (losses), net of tax	0	0
Change in unfunded pension liability, net of tax	0	0
Balance at September 30, 2017	(3,171)	(2,683)
Accumulated Other comprehensive Income (Loss) [Member]
Balance at December 31, 2016	(3,165)	(2,680)
Change in unrealized securities gains (losses), net of tax	(1)	22
Change in unfunded pension liability, net of tax	0	0
Balance at September 30, 2017	$ (3,166)	$ (2,658)

10. Business Segments (Details)

10. Business Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	[1]
Net interest income	$ 7,658,000	$ 7,245,000	$ 22,093,000	$ 21,148,000
Service charges on deposits	359,000	336,000	1,010,000	842,000
Investment services and insurance income	169,000	112,000	530,000	317,000
Mortgage banking income, net	861,000	694,000	1,974,000	1,891,000
Title insurance income	247,000	0	668,000	0
Income from bank owned life insurance	112,000	119,000	336,000	356,000
Low income housing partnership losses	(201,000)	(183,000)	(587,000)	(548,000)
ATM and check card fees	353,000	328,000	1,034,000	1,020,000
Gain on prepayment of long-term debt	0	0	(504,000)	0
Other operating income	245,000	129,000	513,000	238,000
Expenses:
Interest Expense	1,030,000	970,000	2,861,000	2,645,000
Provision for loan losses	0	0	0	0
Salary expense	3,194,000	2,471,000	8,502,000	7,161,000
Employee benefit expense	689,000	699,000	2,467,000	2,113,000
Occupancy expense	281,000	215,000	776,000	643,000
Equipment expense	224,000	183,000	613,000	569,000
FDIC insurance assessment	20,000	113,000	200,000	338,000
Other real estate owned, net	(4,000)	19,000	22,000	72,000
Marketing expense	147,000	128,000	404,000	396,000
Legal and professional fees	78,000	100,000	253,000	293,000
ATM and check card fees	183,000	184,000	529,000	518,000
Telecom and data processing expense	370,000	309,000	1,045,000	861,000
Directors fees	117,000	46,000	360,000	254,000
Bank franchise Tax	167,000	170,000	491,000	480,000
Other operating expenses	793,000	823,000	2,464,000	2,176,000
Income tax expense (benefit)	946,000	654,000	2,633,000	2,187,000
Net income	2,598,000	2,666,000	7,274,000	7,203,000
Total Assets	763,685,000		763,685,000		$ 744,889,000
Goodwill	3,113,000		3,113,000		$ 2,670,000
F&M Bank Member
Net interest income	8,644	8,160	24,815	23,653
Service charges on deposits	359	336	1,010	842
Investment services and insurance income	0	0	1	1
Mortgage banking income, net	0	0	0	0
Title insurance income	0		0
Income from bank owned life insurance	113	119	336	356
Low income housing partnership losses	(201)	(183)	(587)	(548)
ATM and check card fees	352	328	1,034	1,020
Gain on prepayment of long-term debt	0		504	0
Loss on investments	0		0	0
Other operating income	246	129	513	238
Total income	9,513	8,889	27,626	25,562
Expenses:
Interest Expense	1,032	971	2,866	2,649
Provision for loan losses	0	0	0	0
Salary expense	2,326	2,094	6,781	6,117
Employee benefit expense	722	628	2,245	1,927
Occupancy expense	221	185	624	552
Equipment expense	192	181	551	536
FDIC insurance assessment	20	113	200	338
Other real estate owned, net	(3)	19	22	72
Marketing expense	136	120	352	356
Legal and professional fees	75	98	246	286
ATM and check card fees	182	183	526	514
Telecom and data processing expense	342	286	967	795
Directors fees	105	42	315	234
Bank franchise Tax	166	170	491	480
Other operating expenses	767	755	2,127	2,011
Total expense	6,283	5,845	18,313	16,867
Income tax expense (benefit)	933	770	2,603	2,353
Net income	2,297	2,274	6,710	6,342
Net income attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	2,297	2,274	6,710	6,342
Total Assets	750,048	736,642	750,048	736,642
Goodwill	2,670	2,670	2,670	2,670
VBS Mortgage
Net interest income	32	17	97	30
Service charges on deposits	0	0	0	0
Investment services and insurance income	0	0	0	0
Mortgage banking income, net	861	694	1,974	1,891
Title insurance income	0		0
Income from bank owned life insurance	0	0	0	0
Low income housing partnership losses	0	0	0	0
ATM and check card fees	0	0	0	0
Gain on prepayment of long-term debt	0		0	0
Loss on investments	0		(40)	0
Other operating income	0	0	0	0
Total income	893	711	2,031	1,921
Expenses:
Interest Expense	24	0	65	0
Provision for loan losses	0	0	0	0
Salary expense	586	295	1,035	823
Employee benefit expense	1	71	168	186
Occupancy expense	48	30	115	91
Equipment expense	20	2	39	33
FDIC insurance assessment	0	0	0	0
Other real estate owned, net	0	0	0	0
Marketing expense	8	6	42	39
Legal and professional fees	3	2	7	7
ATM and check card fees	1	1	3	4
Telecom and data processing expense	28	23	78	66
Directors fees	11	4	45	20
Bank franchise Tax	0	0	0	0
Other operating expenses	2	63	262	138
Total expense	732	497	1,859	1,407
Income tax expense (benefit)	0	0	0	0
Net income	161	214	172	514
Net income attributable to noncontrolling interest	48	64	51	154
Net income attributable to F & M Bank Corp.	113	150	121	360
Total Assets	6,309	2,492	6,309	2,492
Goodwill	103	0	103	0
TEB Life/FMFS
Net interest income	37	39	112	114
Service charges on deposits	0	0	0	0
Investment services and insurance income	169	112	529	316
Mortgage banking income, net	0	0	0	0
Title insurance income	0		0
Income from bank owned life insurance	0	0	0	0
Low income housing partnership losses	0	0	0	0
ATM and check card fees	0	0	0	0
Gain on prepayment of long-term debt	0		0	0
Loss on investments	0		(2)	0
Other operating income	0	0	0	0
Total income	206	151	639	430
Expenses:
Interest Expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary expense	107	82	341	221
Employee benefit expense	0	0	0	0
Occupancy expense	0	0	0	0
Equipment expense	0	0	0	0
FDIC insurance assessment	0	0	0	0
Other real estate owned, net	0	0	0	0
Marketing expense	2	2	6	1
Legal and professional fees	0	0	0	0
ATM and check card fees	0	0	0	0
Telecom and data processing expense	0	0	0	0
Directors fees	0	0	0	0
Bank franchise Tax	0	0	0	0
Other operating expenses	4	5	17	26
Total expense	113	89	364	248
Income tax expense (benefit)	30	16	83	48
Net income	63	46	192	134
Net income attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	63	46	192	134
Total Assets	6,644	6,315	6,644	6,315
Goodwill	0	0	0	0
VS Title
Net interest income	0	0	0	0
Service charges on deposits	0	0	0	0
Investment services and insurance income	0	0	0	0
Mortgage banking income, net	0	0	0	0
Title insurance income	247		668
Income from bank owned life insurance	0	0	0	0
Low income housing partnership losses	0	0	0	0
ATM and check card fees	0	0	0	0
Gain on prepayment of long-term debt	0		0	0
Loss on investments	0		0	0
Other operating income	0	0	0	0
Total income	247	0	668	0
Expenses:
Interest Expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary expense	175	0	345	0
Employee benefit expense	(34)	0	54	0
Occupancy expense	12	0	37	0
Equipment expense	12	0	23	0
FDIC insurance assessment	0	0	0	0
Other real estate owned, net	0	0	0	0
Marketing expense	2	0	4	0
Legal and professional fees	0	0	0	0
ATM and check card fees	0	0	0	0
Telecom and data processing expense	0	0	0	0
Directors fees	0	0	0	0
Bank franchise Tax	0	0	0	0
Other operating expenses	20	0	54	0
Total expense	187	0	517	0
Income tax expense (benefit)	0	0	0	0
Net income	60	0	151	0
Net income attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	60	0	151	0
Total Assets	443	0	443	0
Goodwill	0	0	0	0
Parent Only
Net interest income	0	0	0	0
Service charges on deposits	0	0	0	0
Investment services and insurance income	0	0	0	0
Mortgage banking income, net	0	0	0	0
Title insurance income	0		0
Income from bank owned life insurance	0	0	0	0
Low income housing partnership losses	0	0	0	0
ATM and check card fees	0	0	0	0
Gain on prepayment of long-term debt	0		0	0
Loss on investments	0		0	0
Other operating income	0	0	0	0
Total income	0	0	0	0
Expenses:
Interest Expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary expense	0	0	0	0
Employee benefit expense	0	0	0	0
Occupancy expense	0	0	0	0
Equipment expense	0	0	0	0
FDIC insurance assessment	0	0	0	0
Other real estate owned, net	0	0	0	0
Marketing expense	0	0	0	0
Legal and professional fees	0	0	0	0
ATM and check card fees	0	0	0	0
Telecom and data processing expense	0	0	0	0
Directors fees	0	0	0	0
Bank franchise Tax	0	0	0	0
Other operating expenses	0	0	4	1
Total expense	0	0	4	1
Income tax expense (benefit)	(17)	(132)	(53)	(214)
Net income	17	132	49	213
Net income attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	17	132	49	213
Total Assets	91,362	87,369	91,362	87,369
Goodwill	340	0	340	0
Eliminations
Net interest income	(25)	(1)	(70)	(4)
Service charges on deposits	0	0	0	0
Investment services and insurance income	0	0	0	0
Mortgage banking income, net	0	0	0	0
Title insurance income	0		0
Income from bank owned life insurance	0	0	0	0
Low income housing partnership losses	0	0	0	0
ATM and check card fees	0	0	0	0
Gain on prepayment of long-term debt	0		0	0
Loss on investments	0		0	0
Other operating income	0	0	0	0
Total income	(25)	(1)	(70)	(4)
Expenses:
Interest Expense	(25)	(1)	(70)	(4)
Provision for loan losses	0	0	0	0
Salary expense	0	0	0	0
Employee benefit expense	0	0	0	0
Occupancy expense	0	0	0	0
Equipment expense	0	0	0	0
FDIC insurance assessment	0	0	0	0
Other real estate owned, net	0	0	0	0
Marketing expense	0	0	0	0
Legal and professional fees	0	0	0	0
ATM and check card fees	0	0	0	0
Telecom and data processing expense	0	0	0	0
Directors fees	0	0	0	0
Bank franchise Tax	0	0	0	0
Other operating expenses	0	0	0	0
Total expense	(25)	(1)	(70)	(4)
Income tax expense (benefit)	0	0	0	0
Net income	0	0	0	0
Net income attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	0	0	0	0
Total Assets	(91,121)	(87,526)	(91,121)	(87,526)
Goodwill	0	0	0	0
F&M Bank Corp Consolidated
Net interest income	8,688	8,215	24,954	23,793
Service charges on deposits	359	336	1,010	842
Investment services and insurance income	169	112	530	317
Mortgage banking income, net	861	694	1,974	1,891
Title insurance income	247		668
Income from bank owned life insurance	113	119	336	356
Low income housing partnership losses	(201)	(183)	(587)	(548)
ATM and check card fees	352	328	1,034	1,020
Gain on prepayment of long-term debt	0		504	0
Loss on investments	0		(42)	0
Other operating income	246	129	513	238
Total income	10,834	9,750	30,894	27,909
Expenses:
Interest Expense	1,031	970	2,861	2,645
Provision for loan losses	0	0	0	0
Salary expense	3,194	2,471	8,502	7,161
Employee benefit expense	689	699	2,467	2,113
Occupancy expense	281	215	776	643
Equipment expense	224	183	613	569
FDIC insurance assessment	20	113	200	338
Other real estate owned, net	(3)	19	22	72
Marketing expense	148	128	404	396
Legal and professional fees	78	100	253	293
ATM and check card fees	183	184	529	518
Telecom and data processing expense	370	309	1,045	861
Directors fees	116	46	360	254
Bank franchise Tax	166	170	491	480
Other operating expenses	793	823	2,464	2,176
Total expense	7,290	6,430	20,987	18,519
Income tax expense (benefit)	946	654	2,633	2,187
Net income	2,598	2,666	7,274	7,203
Net income attributable to noncontrolling interest	48	64	51	154
Net income attributable to F & M Bank Corp.	2,550	2,602	7,223	7,049
Total Assets	763,685	745,292	763,685	745,292
Goodwill	$ 3,113	$ 2,670	$ 3,113	$ 2,670
[1]	2016 Derived from audited consolidated financial statements.

11. Debt (Details Narrative)

11. Debt (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Details Narrative
Short term debt	$ 42,128		$ 40,000	[1]
Increase short term debt	$ 2,128
Weighted average interest rate	1.86%		1.80%
Debt obligations	$ 50,661		$ 63,982
Line of credit	5,000		5,000
Gain on prepayment	(504)	$ 0
Note payable balance	170		255
VS Title note payable	$ 9		$ 0
[1]	2016 Derived from audited consolidated financial statements.