F & M Bank (FMBM) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 06, 2018
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, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		3,218,974
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 10,305	$ 10,622	[1]
Money market funds	805	1,285	[1]
Federal funds sold	6,313	0	[1]
Cash and cash equivalents	17,423	11,907	[1]
Securities:
Held to maturity - fair value of $123 and $125 in 2018 and 2017, respectively	123	125	[1]
Available for sale	8,244	28,615	[1]
Other investments	13,857	12,503	[1]
Loans held for sale	38,595	39,775	[1]
Loans held for investment	646,784	616,974	[1]
Less: allowance for loan losses	(7,273)	(6,044)	[1]
Net loans held for investment	639,511	610,930	[1]
Other real estate owned, net	2,063	1,984	[1]
Bank premises and equipment, net	17,575	15,894	[1]
Interest receivable	2,076	2,007	[1]
Goodwill	2,956	2,881	[1]
Bank owned life insurance	19,320	13,950	[1]
Other assets	13,862	12,699	[1]
Total assets	775,605	753,270	[1]
Deposits:
Noninterest bearing	163,913	162,233	[1]
Interest bearing	425,072	406,944	[1]
Total deposits	588,985	569,177	[1]
Short-term debt	30,000	25,296	[1]
Accrued liabilities	17,633	17,789	[1]
Long-term debt	46,326	49,733	[1]
Total liabilities	682,944	661,995	[1]
Stockholders' Equity
Preferred Stock $25 par value, 400,000 shares authorized, 322,510 and 324,150 issued and outstanding for September 30, 2018 and December 31, 2017, respectively	7,488	7,529	[1]
Common stock, $5 par value, 6,000,000 shares authorized, 3,223,683 and 3,255,036 shares issued and outstanding for September 30, 2018 and December 31, 2017, respectively.	16,118	16,275	[1]
Additional paid in capital - common stock	9,316	10,225	[1]
Retained earnings	63,473	60,814	[1]
Noncontrolling interest in consolidated subsidiaries	539	574	[1]
Accumulated other comprehensive loss	(4,273)	(4,142)	[1]
Total stockholders' equity	92,661	91,275
Total liabilities and stockholders' equity	$ 775,605	$ 753,270	[1]
[1]	2017 Derived from audited consolidated financial statements.

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Held to maturity - fair value	$ 123	$ 125
STOCKHOLDERS EQUITY:
Preferred Stock, par value	$ 25	$ 25
Preferred Stock shares authorized	400,000	400,000
Preferred Stock shares issued	322,510	324,150
Preferred Stock shares outstanding	322,510	324,150
Common stock, par value	$ 5	$ 5
Common stock shares authorized	6,000,000	6,000,000
Common stock shares issued	3,223,683	3,255,036
Common stock shares outstanding	3,223,683	3,255,036

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest and Dividend income
Interest and fees on loans held for investment	$ 8,862	$ 8,221	$ 25,872	$ 23,830
Interest and fees on loans held for sale	317	329	775	774
Interest from money market funds and federal funds sold	48	41	73	116
Interest on debt securities - taxable	101	97	313	234
Total interest and dividend income	9,328	8,688	27,033	24,954
Interest expense
Interest on deposits	872	698	2,377	1,947
Interest from short-term debt	146	14	282	46
Interest from long-term debt	286	318	739	868
Total interest expense	1,304	1,030	3,398	2,861
Net interest income	8,024	7,658	23,635	22,093
Provision for loan losses	450	0	2,480	0
Net interest income after provision for loan losses	7,574	7,658	21,155	22,093
Noninterest income
Service charges on deposit accounts	378	359	1,102	1,010
Investment services and insurance income	239	169	659	530
Mortgage banking income, net	529	783	1,664	1,763
Title insurance income	404	325	966	879
Income on bank owned life insurance	158	112	380	336
Low income housing partnership losses	(189)	(201)	(573)	(587)
ATM and check card fees	395	353	1,130	1,034
Gain on prepayment of long-term debt			0	504
Loss on sale of other investments			0	(42)
Other operating income	233	245	551	513
Total noninterest income	2,147	2,145	5,879	5,940
Noninterest expense
Salaries	3,277	3,194	9,424	8,502
Employee benefits	935	689	2,811	2,467
Occupancy expense	286	281	823	776
Equipment expense	271	224	788	613
FDIC insurance assessment	70	20	166	200
Other real estate owned, net	15	(4)	17	22
Marketing expense	156	147	387	404
Legal and professional fees	173	78	372	253
ATM and check card fees	185	183	541	529
Telecommunication and data processing expense	401	370	1,152	1,045
Directors fees	117	117	345	360
Bank franchise tax	105	167	417	491
Other operating expenses	978	793	2,836	2,464
Total noninterest expense	6,969	6,259	20,079	18,126
Income before income taxes	2,752	3,544	6,955	9,907
Income tax expense	252	946	790	2,633
Net Income	2,500	2,598	6,165	7,274
Net income attributable to noncontrolling interest	(15)	48	(10)	51
Net income attributable to F & M Bank Corp.	2,515	2,550	6,175	7,223
Dividends paid/accumulated on preferred stock	103	103	310	312
Net income available to common stockholders	$ 2,412	$ 2,447	$ 5,865	$ 6,911
Per Common Share Data
Net income - basic	$ 0.75	$ 0.75	$ 1.81	$ 2.11
Net income - diluted	0.7	0.7	1.71	1.99
Cash dividends on common stock	$ 0.25	$ 0.24	$ 0.95	$ 0.69
Weighted average shares outstanding - basic	3,229,341	3,270,969	3,245,032	3,271,863
Weighted average shares outstanding - diluted	3,587,650	3,632,607	3,604,193	3,634,856

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net Income:
Net Income	$ 2,515	$ 2,550	$ 6,175	$ 7,223
Other comprehensive (loss):
Unrealized holding (losses) on available-for-sale securities	2	0	(166)	(2)
Tax effect	0	0	35	1
Unrealized holding (losses), net of tax	2	0	(131)	(1)
Total other comprehensive (loss)	2	0	(131)	(1)
Total comprehensive income	2,517	2,550	6,044	7,222
Comprehensive income attributable to noncontrolling interests	(15)	48	(10)	51
Comprehensive income (loss) attributable to F&M Bank Corp.	$ 2,502	$ 2,598	$ 6,034	$ 7,273

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) $ in Thousands	USD ($)
Balance, beginning of period at Dec. 31, 2016	$ 86,682
Comprehensive income
Net income attributable to F & M Bank Corp.	7,223
Net income (loss) attributable to non-controlling interest	51
Other comprehensive (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
Balance, beginning of period at Dec. 31, 2017	91,275
Comprehensive income
Net income attributable to F & M Bank Corp.	6,175
Net income (loss) attributable to non-controlling interest	(10)
Other comprehensive (loss)	(131)
Total comprehensive income	6,034
Minority interest capital distributions	(25)
Issuance of common stock	210
Repurchase of common stock	(1,375)
Repurchase of preferred stock	(63)
Dividends paid	(3,395)
Balance, end of period at Sep. 30, 2018	$ 92,661

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net income	$ 6,175	$ 7,223
Reconcile net income to net cash provided by operating activities:
Depreciation	852	660
Amortization of intangibles	49	2
Amortization of securities	4
Proceeds from loans held for sale originated	31,665	61,310
Loans held for sale originated	(30,048)	(59,250)
Gain on sale of loans held for sale originated	(1,617)	(1,876)
Gain on prepayment of long-term debt	0	(504)
Provision for loan losses	2,480	0
Decrease (increase) in interest receivable	(69)	(60)
Increase in other assets	(656)	(336)
Decrease in accrued liabilities	(701)	(422)
Amortization of limited partnership investments	573	587
Income from life insurance investment	(380)	(336)
Gain on the sale of fixed assets	(9)	0
Loss on sale of other investments	0	42
Gain on foreclosure of and valuation adjustments for other real estate owned	(28)	0
Net cash provided by operating activities	8,290	7,040
Cash flows from investing activities
Purchase of investments available for sale and other investments	(3,361)	(61,432)
Purchase of title insurance company	(75)	(304)
Proceeds from maturity of investments available for sale	21,636	63,811
Proceeds from the sale of investments	0	55
Net increase in loans held for investment	(31,254)	(29,070)
Net (increase) decrease in loans held for sale participations	1,180	4,373
Purchase of bank owned life insurance	(5,000)	0
Proceeds from the sale of fixed assets	9	(7)
Proceeds from the sale of other real estate owned	141	80
Net purchase of property and equipment	(2,533)	(3,036)
Net cash provided by investing activities	(19,257)	(25,530)
Cash flows from financing activities
Net change in deposits	19,808	25,295
Net change in short-term debt	4,704	2,128
Dividends paid in cash	(3,395)	(2,500)
Proceeds from issuance of common stock	210	150
Repurchase of preferred stock	(63)	(101)
Repurchase of common stock	(1,375)	(199)
Repayments of long-term debt	(3,406)	(12,892)
Net cash provided by (used in) financing activities	16,483	11,881
Net increase (decrease) in Cash and Cash Equivalents	5,516	(6,609)
Cash and cash equivalents, beginning of period	11,907	16,355
Cash and cash equivalents, end of period	17,423	9,746
Cash paid for:
Interest	3,340	2,850
Taxes	1,657	3,495
Supplemental non-cash disclosures:
Transfer from loans to other real estate owned	193	145
Change in unrealized gain (loss) on securities available for sale	$ (166)	$ (2)

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Summary Of Significant Accounting Policies
1. Summary of Significant Accounting Policies	Principles of Consolidation The accompanying unaudited consolidated financial statements including the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and 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, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017 (the “2017 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 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), F&M Mortgage, and VSTitle, LLC (VST). The Company purchased VSTitle, a title company headquartered in Harrisonburg, VA with offices in Harrisonburg, Fishersville and Charlottesville, VA on January 1, 2017. VSTitle purchased a small title company in January of 2018. 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 and intangibles, fair value, the valuation of deferred tax assets and liabilities, pension accounting and the valuation of foreclosed real estate. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for fair presentation of the results of operations in these financial statements, have been made. 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 stockholders by the weighted average number of common shares outstanding. In calculating diluted EPS net income available to common stockholders 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, 2018 September 30, 2018 September 30, 2017 September 30, 2017 Earnings available to common stockholders: Net income $ 6,165 $ 2,500 $ 7,274 $ 2,598 Non-controlling interest income (loss) (10 ) (15 ) 51 48 Preferred stock dividends 310 103 312 103 Net income available to common stockholders $ 5,865 $ 2,412 $ 6,911 $ 2,447 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, 2018 Nine months ended September 30, 2017 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 5,865 3,245,032 $ 1.81 $ 6,911 3,271,863 $ 2.11 Effect of Dilutive Securities: Convertible Preferred Stock 310 359,161 (.10 ) 312 362,993 (0.12 ) Diluted EPS $ 6,175 3,604,193 $ 1.71 $ 7,223 3,634,856 $ 1.99 Three months ended September 30, 2018 Three months ended September 30, 2017 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,412 3,229,341 $ .75 $ 2,447 3,270,969 $ .75 Effect of Dilutive Securities: Convertible Preferred Stock 103 358,309 (.05 ) 103 361,638 (0.05 ) Diluted EPS $ 2,515 3,587,650 $ .70 $ 2,550 3,632,607 $ .70

2. Investment Securities

2. Investment Securities	9 Months Ended
	Sep. 30, 2018
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, 2018 and December 31, 2017 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2018 U. S. Treasuries $ 123 $ - $ - $ 123 December 31, 2017 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, 2018 U. S. Government sponsored enterprises $ 7,999 $ - $ 179 $ 7,820 Mortgage-backed obligations of federal agencies 435 - 11 424 Total Securities Available for Sale $ 8,434 $ - $ 190 $ 8,244 December 31, 2017 U. S. Treasuries $ 19,998 $ - $ - $ 19,998 U.S. Government sponsored enterprises 7,999 - 19 7,980 Mortgage-backed obligations of federal agencies 508 - 6 502 Equity securities1 135 - - 135 Total Securities Available for Sale $ 28,640 $ - $ 25 $ 28,615 1 Transferred to other investments on January 1, 2018 upon adoption of ASU 2016-01 The amortized cost and fair value of securities at September 30, 2018, 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 $ - $ - $ - $ - Due after one year through five years 123 123 5,999 5,880 Due after five years - - 2,435 2,364 Due after ten years - - - - Total $ 123 $ 123 $ 8,434 $ 8,244 There were no gains or losses on sales of available for sale securities in the three or nine month periods ended September 30, 2018 or 2017. There were also no securities with other than temporary impairment and no securities that had been in a continuous loss position in excess of twelve months as of September 30, 2018 and December 31, 2017. A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of September 30, 2018 and December 31, 2017 were as follows: Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 U. S. Government sponsored enterprises $ 7,820 $ (179 ) $ - $ - $ 7,820 $ (179 ) Mortgage-backed obligations of federal agencies 424 (11 ) - - 424 (11 ) Total $ 8,244 $ (190 ) $ - $ - $ 8,244 $ (190 ) Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2017 U. S. Government sponsored enterprises $ 3,981 $ (19 ) $ - $ - $ 3,981 $ (19 ) Mortgage-backed obligations of federal agencies 502 (6 ) - - 502 (6 ) Total $ 4,483 $ (25 ) $ - $ - $ 4,483 $ (25 ) As of September 30, 2018, other investments consist of investments in twenty low-income housing and historic equity partnerships (carrying basis of $8,331), stock in the Federal Home Loan Bank (carrying basis $3,922) and various other investments (carrying basis $1,604). 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, 2018. At September 30, 2018, the Company was committed to invest an additional $4,324 in six 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 F&M Mortgage ended their relationship with Bankers Title Virginia resulting in a consolidated loss of $42.

3. Loans

3. Loans	9 Months Ended
	Sep. 30, 2018
Loans Held For Investment Abstract
3. Loans	Loans held for investment outstanding at September 30, 2018 and December 31, 2017 are summarized as follows: 2018 2017 Construction/Land Development $ 68,806 $ 71,620 Farmland 16,735 13,606 Real Estate 188,460 184,546 Multi-Family 9,823 10,298 Commercial Real Estate 155,651 148,906 Home Equity – closed end 10,765 11,606 Home Equity – open end 55,136 54,739 Commercial & Industrial – Non-Real Estate 35,715 36,912 Consumer 10,660 6,633 Dealer Finance 92,084 75,169 Credit Cards 2,949 2,939 Total $ 646,784 $ 616,974 The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $187,927 and $218,323 as of September 30, 2018 and December 31, 2017, respectively. The Company maintains a blanket lien on its entire residential real estate portfolio and certain commercial and home equity loans. Loans held for sale consists of loans originated by F&M 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, 2018 and December 31, 2017 were $38,595 and $39,775, respectively. The following is a summary of information pertaining to impaired loans (dollars in thousand): September 30, 2018 December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 2,972 $ 2,972 $ - $ 4,352 $ 5,269 $ - Farmland 1,941 1,941 - 1,984 1,984 - Real Estate 1,366 1,366 - 1,273 1,273 - Multi-Family - - - - - - Commercial Real Estate 1,444 1,444 - 6,229 6,229 - Home Equity – closed end - - - - - - Home Equity – open end - - - - 347 - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - 8 8 - Credit cards - - - - - - Dealer Finance 16 16 - 31 31 - 7,739 7,739 - 13,877 15,141 - Impaired loans with a valuation allowance Construction/Land Development 6,826 7,386 2,182 4,998 4,998 1,661 Farmland - - - - - Real Estate 426 426 7 1,188 1,188 209 Multi-Family - - - - - Commercial Real Estate 5,851 5,851 1,539 - - - Home Equity – closed end - - - - - Home Equity – open end - - - - - Commercial & Industrial – Non-Real Estate - - - - - Consumer 9 9 2 - - - Credit cards - - - - - Dealer Finance 234 234 15 47 47 12 13,346 13,906 3,745 6,233 6,233 1,882 Total impaired loans $ 21,085 $ 21,645 $ 3,745 $ 20,110 $ 21,374 $ 1,882 The Recorded Investment is defined as the original principal balance less principal payments, charge-offs and nonaccrual payments applied to principal. 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, 2018 2017 2018 2017 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 $ 3,725 $ 47 $ 5,414 $ 14 $ 4,440 $ 126 $ 4,870 $ 64 Farmland 1,962 80 1,921 - 1,973 142 1,900 - Real Estate 930 17 743 8 1,078 28 746 25 Multi-Family - - - - - - - - Commercial Real Estate 868 44 200 9 2,317 53 167 12 Home Equity – closed end - - - - - - - - Home Equity – open end - - 347 - 87 - 347 - Commercial & Industrial – Non-Real Estate - (8 ) 164 2 - (8 ) 165 8 Consumer and credit cards - (1 ) 10 - 2 (1 ) 10 - Dealer Finance 25 - 23 1 28 1 22 2 7,510 179 8,822 34 9,925 341 8,227 111 Impaired loans with a valuation allowance: Construction/Land Development $ 7,425 $ (125 ) $ 5,640 $ 75 $ 6,664 $ (27 ) $ 6,215 $ 215 Farmland - - - - - - - - Real Estate 866 (17 ) 1,194 10 1,045 10 1,196 41 Multi-Family - - - - - - - - Commercial Real Estate 5,874 179 - - 4,166 320 - - Home Equity – closed end - - - - - - - - Home Equity – open end - - - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - - - Consumer and credit card 10 1 - - 8 2 - - Dealer Finance 232 11 59 1 169 19 59 2 14,407 49 6,893 86 12,052 324 7,470 258 Total Impaired Loans $ 21,917 $ 228 $ 15,715 $ 120 $ 21,977 $ 665 $ 15,697 $ 369 The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of September 30, 2018 and December 31, 2017: 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, 2018 Construction/Land Development $ 19 $ 149 $ 4,536 $ 4,704 $ 64,102 $ 68,806 $ 5,097 $ - Farmland - - - - 16,735 16,735 - - Real Estate 1,432 835 2,234 4,501 183,959 188,460 1,424 1,484 Multi-Family 170 - - 170 9,653 9,823 - - Commercial Real Estate 1,699 1,373 6,195 9,267 146,384 155,651 6,195 - Home Equity – closed end - - 14 14 10,751 10,765 - 14 Home Equity – open end 504 - 487 991 54,145 55,136 125 387 Commercial & Industrial – Non- Real Estate 338 - 113 451 35,264 35,715 112 - Consumer 52 99 3 154 10,506 10,660 5 - Dealer Finance 1,619 457 289 2,365 89,719 92,084 385 - Credit Cards 51 - 12 63 2,886 2,949 - 12 Total $ 5,884 $ 2,913 $ 13,883 $ 22,680 $ 624,104 $ 646,784 $ 13,343 $ 1,897 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loan Receivable Non-Accrual Loans Recorded Investment >90 days & accruing December 31, 2017 Construction/Land Development $ 167 $ 5,459 $ 3,908 $ 9,534 $ 62,086 $ 71,620 $ 3,908 $ - Farmland - - - - 13,606 13,606 - - Real Estate 2,858 1,954 560 5,372 179,174 184,546 1,720 143 Multi-Family 179 - - 179 10,119 10,298 - - Commercial Real Estate 544 - - 544 148,362 148,906 - - Home Equity – closed end - 25 - 25 11,581 11,606 3 - Home Equity – open end 454 165 268 887 53,852 54,739 448 - Commercial & Industrial – Non- Real Estate 108 36 595 739 36,173 36,912 599 - Consumer 43 5 - 48 6,585 6,633 - - Dealer Finance 1,300 252 189 1,741 73,428 75,169 226 54 Credit Cards 30 8 1 39 2,900 2,939 - 1 Total $ 5,683 $ 7,904 $ 5,521 $ 19,108 $ 597,866 $ 616,974 $ 6,904 $ 198 At September 30, 2018 and December 31, 2017, other real estate owned included $177 and $207 of foreclosed residential real estate. The Company has $900 of consumer mortgages for which foreclosure is in process at September 30, 2018 and $103 at December 31, 2017. Nonaccrual loans at September 30, 2018 and September 30, 2017, would have earned approximately $371 and $109, respectively, in interest income had they been accruing loans.

4. Allowance for Loan Losses

4. Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2018
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, 2018 and December 31, 2017 is as follows: September 30, 2018 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 2,547 $ 47 $ 122 $ 86 $ 2,708 $ 2,182 $ 526 Farmland 25 - - (3 ) 22 - 22 Real Estate 719 57 12 (291 ) 383 7 376 Multi-Family 19 - - (4 ) 15 - 15 Commercial Real Estate 482 46 1 1,328 1,765 1,539 226 Home Equity – closed end 66 3 4 (20 ) 47 - 47 Home Equity – open end 209 - 3 (53 ) 159 - 159 Commercial & Industrial – Non-Real Estate 337 544 88 365 246 - 246 Consumer 148 28 28 (68 ) 80 2 78 Dealer Finance 1,440 1,448 673 1,148 1,813 15 1,798 Credit Cards 52 43 34 (8 ) 35 - 35 Total $ 6,044 $ 2,216 $ 965 $ 2,480 $ 7,273 $ 3,745 $ 3,528 December 31, 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 $ 620 $ - $ (214 ) $ 2,547 $ 1,661 $ 886 Farmland 34 - - (9 ) 25 - 25 Real Estate 843 - 2 (126 ) 719 209 510 Multi-Family 23 - - (6 ) 19 - 19 Commercial Real Estate 705 - 13 (236 ) 482 - 482 Home Equity – closed end 75 7 25 (27 ) 66 - 66 Home Equity – open end 470 26 53 (288 ) 209 - 209 Commercial & Industrial – Non-Real Estate 586 179 72 (142 ) 337 - 337 Consumer 78 136 28 178 148 - 148 Dealer Finance 1,289 1,806 1,143 814 1,440 12 1,428 Credit Cards 59 98 37 54 52 - 52 Total $ 7,543 $ 2,872 $ 1,373 $ - $ 6,044 $ 1,882 $ 4,162 September 30, 2018 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 68,806 $ 9,798 $ 59,008 Farmland 16,735 1,941 14,794 Real Estate 188,460 1,792 186,668 Multi-Family 9,823 - 9,823 Commercial Real Estate 155,651 7,295 148,356 Home Equity – closed end 10,765 - 10,765 Home Equity –open end 55,136 - 55,136 Commercial & Industrial – Non-Real Estate 35,715 - 35,715 Consumer 10,660 9 10,651 Dealer Finance 92,084 250 91,834 Credit Cards 2,949 - 2,949 $ 646,784 $ 21,085 $ 625,699 Total The following table presents the recorded investment in loans (dollars in thousands) based on impairment method as of September 30, 2018 and December 31, 2017: December 31, 2017 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 71,620 $ 9,350 $ 62,270 Farmland 13,606 1,984 11,622 Real Estate 184,546 2,461 182,085 Multi-Family 10,298 - 10,298 Commercial Real Estate 148,906 6,229 142,677 Home Equity – closed end 11,606 - 11,606 Home Equity –open end 54,739 - 54,739 Commercial & Industrial – Non-Real Estate 36,912 - 36,912 Consumer 6,633 8 6,625 Dealer Finance 75,169 78 75,091 Credit Cards 2,939 - 2,939 $ 616,974 $ 20,110 $ 596,864 Total The following table shows the Company’s loan portfolio broken down by internal loan grade (dollars in thousands) as of September 30, 2018 and December 31, 2017: September 30, 2018 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 $ - $ 1,625 $ 17,494 $ 33,461 $ 7,071 $ 270 $ 8,885 $ - $ 68,806 Farmland 62 - 4,469 5,800 3,970 493 1,941 - 16,735 Real Estate - 1,617 53,949 104,600 22,070 1,154 5,070 - 188,460 Multi-Family - - 3,007 6,645 171 - - - 9,823 Commercial Real Estate - 2,388 46,030 86,775 11,301 2,962 6,195 - 155,651 Home Equity – closed end - - 3,337 5,490 1,924 - 14 - 10,765 Home Equity – open end 115 1,713 20,073 29,050 3,559 56 570 - 55,136 Commercial & Industrial (Non-Real Estate) 223 1,971 17,609 12,725 2,664 349 174 - 35,715 Consumer (excluding dealer) 34 178 2,893 $ 5,597 1,893 65 - - 10,660 Total $ 434 $ 9,492 $ 168,861 $ 290,143 $ 54,623 $ 5,349 $ 22,849 $ - $ 551,751 Credit Cards Dealer Finance Performing $ 2,937 $ 91,795 Non-performing 12 289 Total $ 2,949 $ 92,084 December 31, 2017 Grade 1 Minimal Risk Grade 2 Modest Risk Grade 3 Average Risk Grade 4 Acceptable Risk Grade 5 Marginally Acceptable Grade 6 Watch Grade 7 Substandard Grade 8 Doubtful Total Construction/Land Development $ - $ 690 $ 12,974 $ 30,197 $ 9,165 $ 3,520 $ 15,074 $ - $ 71,620 Farmland 63 3,153 4,120 3,793 494 1,983 - 13,606 Real Estate - 1,512 53,764 101,606 19,734 4,660 3,270 - 184,546 Multi-Family - 228 4,780 5,111 179 - - - 10,298 Commercial Real Estate - 3,525 45,384 89,195 9,012 634 1,156 - 148,906 Home Equity – closed end - - 3,535 5,410 1,279 1,379 3 - 11,606 Home Equity – open end 235 1,598 17,383 30,888 3,945 176 514 - 54,739 Commercial & Industrial (Non-Real Estate) 262 1,595 13,297 19,442 1,480 207 629 - 36,912 Consumer (excluding dealer) 34 490 2,226 88 1,065 2,254 476 - 6,633 Total $ 594 $ 9,638 $ 156,496 $ 286,057 $ 49,652 $ 13,324 $ 23,105 $ - $ 538,866 Credit Cards Dealer Finance Performing $ 2,938 $ 75,116 Non-performing 1 53 Total $ 2,939 $ 75,169 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, 2018
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 2018. On January 1, 2018 the Company adopted ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The following is a summary of net periodic pension costs for the three and nine month periods ended September 30, 2018 and 2017: Nine Months Ended Three Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Service cost $ 576 $ 522 $ 192 $ 174 Interest cost 372 365 124 122 Expected return on plan assets (693 ) (638 ) (231 ) (213 ) Amortization of prior service cost (12 ) (11 ) (4 ) (4 ) Amortization of net loss 228 213 76 71 Net periodic pension cost $ 471 $ 450 $ 157 $ 150

6. Fair Value

6. Fair Value	9 Months Ended
	Sep. 30, 2018
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, 2018 and December 31, 2017 (dollars in thousands): September 30, 2018 Total Level 1 Level 2 Level 3 U.S. Government sponsored enterprises $ 7,820 $ - $ 7,820 $ - Mortgage-backed obligations of federal agencies 424 - 424 - Total securities available for sale $ 8,244 $ - $ 8,244 $ - December 31, 2017 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 19,998 $ 19,998 $ - $ - U.S. Government sponsored enterprises 7,980 - 7,980 - Mortgage-backed obligations of federal agencies 502 - 502 - Equity securities1 135 - 135 - Total securities available for sale $ 28,615 $ 19,998 $ 8,617 $ - 1 Transferred to other investments on January 1, 2018 upon adoption of ASU 2016-01 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 F&M Mortgage for sale in the secondary market. Loan participations are generally repurchased within 15 days. Loans originated for sale by F&M Mortgage are recorded at lower of cost or market. No market adjustments were required at September 30, 2018 or December 31, 2017; 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, 2018 and December 31, 2017. 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 as 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, 2018 and December 31, 2017, 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, 2018 Total Level 1 Level 2 Level 3 Construction/Land Development $ 4,644 $ - $ - $ 4,644 Real Estate 419 - - 419 Commercial Real Estate 4,312 - - 4,312 Consumer 7 - - 7 Dealer Finance 219 - - 219 Impaired loans $ 9,601 $ - $ - $ 9,601 December 31, 2017 Total Level 1 Level 2 Level 3 Construction/Land Development $ 3,337 $ - - $ 3,337 Real Estate 979 - - 979 Dealer Finance 35 - - 35 Impaired loans $ 4,351 $ - $ - $ 4,351 The following table presents information about Level 3 Fair Value Measurements for September 30, 2018: Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 9,601 Discounted appraised value Discount for selling costs and marketability 2%-19% (Average 4.9%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2017: Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 4,351 Discounted appraised value Discount for selling costs and marketability 3%-19% (Average 5.5 %) 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, 2018 and December 31, 2017 (dollars in thousands). September 30, 2018 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,063 - - $ 2,063 December 31, 2017 Total Level 1 Level 2 Level 3 Other real estate owned $ 1,984 - - $ 1,984 The following table presents information about Level 3 Fair Value Measurements for September 30, 2018: Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,063 Discounted appraised value Discount for selling costs 2.5%-10% (Average 4%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2017: Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 1,984 Discounted appraised value Discount for selling costs 5%-15% (Average 8%)

7. Disclosures About Fair Value

7. Disclosures About Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2018
Disclosures About Fair Value Of Financial Instruments
7. Disclosures About Fair Value of Financial Instruments	The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2018 and December 31, 2017. For short-term financial assets such as cash and cash equivalents and short-term liabilities, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest bearing demand, interest bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair values for September 30, 2018 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities. The estimated fair values, and related carrying amounts (dollars in thousands), of the Company’s financial instruments are as follows: Fair Value Measurements at September 30, 2018 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, 2018 Assets: Cash and cash equivalents $ 17,423 $ 17,423 $ - $ - $ 17,423 Securities 8,367 - 8,367 - 8,367 Loans held for sale 38,595 - 38,595 - 38,595 Loans held for investment, net 639,511 - - 636,558 636,558 Interest receivable 2,076 - 2,076 - 2,076 Bank owned life insurance 19,320 - 19,320 - 19,320 Total $ 725,292 $ 17,423 $ 68,358 $ 636,558 $ 722,339 Liabilities: Deposits $ 588,985 $ - $ 431,124 $ 160,211 $ 591,335 Short-term debt 30,000 - 30,000 - 30,000 Long-term debt 46,326 - - 46,251 46,251 Interest payable 318 - 318 - 318 Total $ 665,629 $ - $ 461,442 $ 206,462 $ 667,904 Fair Value Measurements at December 31, 2017 Using (dollars in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at December 31, 2017 Assets: Cash and cash equivalents $ 11,907 $ 11,907 $ - $ - $ 11,907 Securities 28,740 19,998 8,742 - 28,740 Loans held for sale 39,775 - 39,775 - 39,775 Loans held for investment, net 610,930 - - 646,703 646,703 Interest receivable 2,007 - 2,007 - 2,007 Bank owned life insurance 13,950 - 13,950 - 13,950 Total $ 707,309 $ 31,905 $ 64,474 $ 646,703 $ 743,082 Liabilities: Deposits $ 569,177 $ - $ 403,907 $ 167,210 $ 571,117 Short-term debt 25,296 - 25,296 - 25,296 Long-term debt 49,733 - - 49,869 49,869 Interest payable 260 - 260 - 260 Total $ 644,466 $ - $ 429,463 $ 217,079 $ 646,542

8. Troubled Debt Restructuring

8. Troubled Debt Restructuring	9 Months Ended
	Sep. 30, 2018
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, 2018, there were seventeen loan modifications that were considered to be troubled debt restructurings. Three of these loans were modified during the three months ended September 30, 2018 and fourteen loan modifications that would be considered a troubled debt restructuring were modified during the first and second quarters of 2018. 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, 2018 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 3 $ 2,245 $ 2,245 Consumer 14 199 199 Total 17 $ 2,444 $ 2,444 At September 30, 2018, there were three loans 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. September 30, 2018 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 1 $ 990 $ 990 Consumer 2 14 14 Total 3 $ 1,004 $ 1,004 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

9. Accumulated Other Comprehens

9. Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2018
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	The balances in accumulated other comprehensive loss are shown in the following tables for September 30, 2018 and 2017: (dollars in thousands) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2017 $ (20 ) $ (4,122 ) $ (4,142 ) Change in unrealized securities gains (losses), net of tax (131 ) - (131 ) Change in unfunded pension liability, net of tax - - - Balance at September 30, 2018 $ (151 ) $ (4,122 ) $ (4,273 ) (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 ) There were no reclassifications adjustments reported on the consolidated statements of income during the three or nine months ended September 30, 2018 or 2017.

10. Business Segments

10. Business Segments	9 Months Ended
	Sep. 30, 2018
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, 2018 and September 30, 2017. Nine Months Ended September 30, 2018 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 26,915 $ 101 $ 109 $ - $ - $ (92 ) $ 27,033 Service charges on deposits 1,102 - - - - - 1,102 Investment services and insurance income - - 673 - - (14 ) 659 Mortgage banking income, net - 1,664 - - - - 1,664 Title insurance income - 232 - 734 - - 966 Other operating income 1,489 (1 ) - - - - 1,488 Total income 29,506 1,996 782 734 - (106 ) 32,912 Expenses: Interest Expense 3,403 87 - - - (92 ) 3,398 Provision for loan losses 2,480 - - - - - 2,480 Salary and benefit expense 9,877 1,404 437 517 - - 12,235 Other operating expenses 7,111 538 45 128 36 (14 ) 7,844 Total expense 22,871 2,029 482 645 36 (106 ) 25,957 Net income (loss) before taxes 6,635 (33 ) 300 89 (36 ) - 6,955 Income tax expense 597 - 52 - 141 - 790 Net income (loss) $ 6,038 $ (33 ) $ 248 $ 89 $ (177 ) $ - $ 6,165 Net income attributable to non-controlling interest - (10 ) - - - - (10 ) Net Income attributable to F & M Bank Corp. $ 6,038 $ (23 ) $ 248 $ 89 $ (177 ) $ - $ 6,175 Total Assets $ 777,401 $ 7,103 $ 6,954 $ 720 $ 92,372 $ (108,945 ) $ 775,605 Goodwill $ 2,670 $ 65 $ - $ 57 $ 164 $ - $ 2,956 Three months ended September 30, 2018 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,295 $ 31 $ 37 $ - $ - $ (35 ) $ 9,328 Service charges on deposits 378 - - - - - 378 Investment services and insurance income - - 242 - - (3 ) 239 Mortgage banking income, net - 529 - - - - 529 Title insurance income - 123 - 281 - - 404 Other operating income 646 (49 ) - - - - 597 Total income 10,319 634 279 281 - (38 ) 11,475 Expenses: Interest Expense 1,305 34 - - - (35 ) 1,304 Provision for loan losses 450 - - - - - 450 Salary and benefit expense 3,312 574 154 172 - - 4,212 Other operating expenses 2,617 82 16 39 6 (3 ) 2,757 Total expense 7,684 690 170 211 6 (38 ) 8,723 Net income (loss) before taxes 2,635 (56 ) 109 70 (6 ) - 2,752 Income tax expense 312 - 16 - (76 ) - 252 Net income (loss) $ 2,323 $ (56 ) $ 93 $ 70 $ 70 $ - $ 2,500 Net income attributable to non-controlling interest - (15 ) - - - - (15 ) Net Income attributable to F & M Bank Corp. $ 2,323 $ (41 ) $ 93 $ 70 $ 70 $ - $ 2,515 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 - 1,763 - - - - 1,763 Title insurance income - 211 - 668 - - 879 Gain on prepayment of long-term debt 504 - - - - - 504 Loss on investments - (40 ) (2 ) - - - (42 ) Other operating income 1,296 - - - - - 1,296 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 9,026 1,203 341 399 - - 10,969 Other operating expenses 6,421 591 23 118 4 - 7,157 Total expense 18,313 1,859 364 517 4 (70 ) 20,987 Net income (loss) before taxes 9,313 172 275 151 (4 ) - 9,907 Income tax expense 2,603 - 83 - (53 ) - 2,633 Net income (loss) $ 6,710 $ 172 $ 192 $ 151 $ 49 $ - $ 7,274 Net income attributable to non-controlling 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 $ 8,643 $ 32 $ 37 $ - $ - $ (24 ) $ 8,688 Service charges on deposits 359 - - - - - 359 Investment services and insurance income - - 169 - - - 169 Mortgage banking income, net - 783 - - - - 783 Title insurance income - 78 - 247 - - 325 Other operating income 509 - - - - - 509 Total income 9,511 893 206 247 - (24 ) 10,833 Expenses: Interest Expense 1,030 24 - - - (24 ) 1,030 Provision for loan losses - - - - - - - Salary and benefit expense 3,048 587 107 141 - - 3,883 Other operating expenses 2,203 121 6 46 - - 2,376 Total expense 6,281 732 113 187 - (24 ) 7,289 Net income (loss) before taxes 3,230 161 93 60 - - 3,544 Income tax expense 933 - 30 - (17 ) - 946 Net income (loss) $ 2,297 $ 161 $ 63 $ 60 $ 17 $ - $ 2,598 Net income attributable to non-controlling interest - 48 - - - - 48 Net Income attributable to F & M Bank Corp. $ 2,297 $ 113 $ 63 $ 60 $ 17 $ - $ 2,550

11. Debt

11. Debt	9 Months Ended
	Sep. 30, 2018
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 $30 million at September 30, 2018 and has increased $4.7 million from $25.3 million at December 31, 2017. 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 1.87% and 1.86% at September 30, 2018 and December 31, 2017, respectively. The balance of these obligations at September 30, 2018 and December 31, 2017 were $46,232 and $49,554 respectively. The Company recognized a gain of $504 on prepayment of two FHLB advances totaling $10,000 during the first quarter of 2017 and there were no additional borrowings in 2017 or 2018. FHLB advances include a $5 million 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 $85 at September 30, 2018 that is payable in one annual payment on January 1, 2019. There was $170 outstanding on this note at December 31, 2017. VS Title, LLC has a note payable for vehicle purchases with a balance of $9 at September 30, 2018 and December 31, 2017.

12. Revenue Recognition

12. Revenue Recognition	9 Months Ended
	Sep. 30, 2018
Revenue Recognition [Abstract]
Revenue Recognition	On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), overdraft fees, monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Investment Services and Insurance Income Investment services and insurance income primarily consists of commissions received on mutual funds and other investment sales. Commissions from the sale of mutual funds and other investments are recognized on trade date, which is when the Company has satisfied its performance obligation. Title Insurance Income VSTitle provides title insurance and real estate settlement services. Revenue is recognized at the time the real estate transaction is completed. ATM and Check Card Fees ATM and Check Card Fees are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other Other noninterest income consists of other recurring revenue streams such as safe deposit box rental fees, and other service charges. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Other service charges include revenue from processing wire transfers, online payment fees, cashier’s checks, mobile banking fees and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2018 and 2017. Noninterest income out-of-scope of Topic 606 in 2017 included onetime gains on prepayment of debt of $504. Nine Months Ended September 30, Three Months Ended September 30, 2018 2018 2017 2018 2017 Noninterest Income (in thousands) In-scope of Topic 606: Service Charges on Deposits $ 1,102 $ 1,010 $ 378 $ 359 Investment Services and Insurance Income 659 530 239 169 Title Insurance Income 966 668 404 247 ATM and check card fees 1,130 1,034 395 353 Other 390 368 142 129 Noninterest Income (in-scope of Topic 606) 4,247 3,610 1,556 1,257 Noninterest Income (out-of-scope of Topic 606) 1,632 2,330 591 888 Total Noninterest Income $ 5,879 $ 5,940 $ 2,147 $ 2,145 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2018 and December 31, 2017, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost.

1. Summary of Significant Acc_2

1. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Principles Policies Abstract
Principles of Consolidation	The accompanying unaudited consolidated financial statements including the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and 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, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017 (the “2017 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	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), F&M Mortgage, and VSTitle, LLC (VST). The Company purchased VSTitle, a title company headquartered in Harrisonburg, VA with offices in Harrisonburg, Fishersville and Charlottesville, VA on January 1, 2017. VSTitle purchased a small title company in January of 2018.
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 and intangibles, fair value, the valuation of deferred tax assets and liabilities, pension accounting and the valuation of foreclosed real estate. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for fair presentation of the results of operations in these financial statements, have been made.
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 stockholders by the weighted average number of common shares outstanding. In calculating diluted EPS net income available to common stockholders 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, 2018 September 30, 2018 September 30, 2017 September 30, 2017 Earnings available to common stockholders: Net income $ 6,165 $ 2,500 $ 7,274 $ 2,598 Non-controlling interest income (loss) (10 ) (15 ) 51 48 Preferred stock dividends 310 103 312 103 Net income available to common stockholders $ 5,865 $ 2,412 $ 6,911 $ 2,447 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, 2018 Nine months ended September 30, 2017 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 5,865 3,245,032 $ 1.81 $ 6,911 3,271,863 $ 2.11 Effect of Dilutive Securities: Convertible Preferred Stock 310 359,161 (.10 ) 312 362,993 (0.12 ) Diluted EPS $ 6,175 3,604,193 $ 1.71 $ 7,223 3,634,856 $ 1.99 Three months ended September 30, 2018 Three months ended September 30, 2017 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,412 3,229,341 $ .75 $ 2,447 3,270,969 $ .75 Effect of Dilutive Securities: Convertible Preferred Stock 103 358,309 (.05 ) 103 361,638 (0.05 ) Diluted EPS $ 2,515 3,587,650 $ .70 $ 2,550 3,632,607 $ .70

1. Summary of Significant Acc_3

1. Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Principles Tables Abstract
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, 2018 September 30, 2018 September 30, 2017 September 30, 2017 Earnings available to common stockholders: Net income $ 6,165 $ 2,500 $ 7,274 $ 2,598 Non-controlling interest income (loss) (10 ) (15 ) 51 48 Preferred stock dividends 310 103 312 103 Net income available to common stockholders $ 5,865 $ 2,412 $ 6,911 $ 2,447 Nine months ended September 30, 2018 Nine months ended September 30, 2017 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 5,865 3,245,032 $ 1.81 $ 6,911 3,271,863 $ 2.11 Effect of Dilutive Securities: Convertible Preferred Stock 310 359,161 (.10 ) 312 362,993 (0.12 ) Diluted EPS $ 6,175 3,604,193 $ 1.71 $ 7,223 3,634,856 $ 1.99 Three months ended September 30, 2018 Three months ended September 30, 2017 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,412 3,229,341 $ .75 $ 2,447 3,270,969 $ .75 Effect of Dilutive Securities: Convertible Preferred Stock 103 358,309 (.05 ) 103 361,638 (0.05 ) Diluted EPS $ 2,515 3,587,650 $ .70 $ 2,550 3,632,607 $ .70

2. Investment Securities (Table

2. Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2018
Investment Securities Tables Abstract
Schedule of amortized cost and fair value for securities	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2018 U. S. Treasuries $ 123 $ - $ - $ 123 December 31, 2017 U. S. Treasuries $ 125 $ - $ - $ 125
Amortized cost and fair value of securities	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2018 U. S. Government sponsored enterprises $ 7,999 $ - $ 179 $ 7,820 Mortgage-backed obligations of federal agencies 435 - 11 424 Total Securities Available for Sale $ 8,434 $ - $ 190 $ 8,244 December 31, 2017 U. S. Treasuries $ 19,998 $ - $ - $ 19,998 U.S. Government sponsored enterprises 7,999 - 19 7,980 Mortgage-backed obligations of federal agencies 508 - 6 502 Equity securities1 135 - - 135 Total Securities Available for Sale $ 28,640 $ - $ 25 $ 28,615
Schedule of gain and losses on sales of debt and equity securities	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 $ - $ - $ - $ - Due after one year through five years 123 123 5,999 5,880 Due after five years - - 2,435 2,364 Due after ten years - - - - Total $ 123 $ 123 $ 8,434 $ 8,244
Schedule of securities with unrealized losses	Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 U. S. Government sponsored enterprises $ 7,820 $ (179 ) $ - $ - $ 7,820 $ (179 ) Mortgage-backed obligations of federal agencies 424 (11 ) - - 424 (11 ) Total $ 8,244 $ (190 ) $ - $ - $ 8,244 $ (190 ) Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2017 U. S. Government sponsored enterprises $ 3,981 $ (19 ) $ - $ - $ 3,981 $ (19 ) Mortgage-backed obligations of federal agencies 502 (6 ) - - 502 (6 ) Total $ 4,483 $ (25 ) $ - $ - $ 4,483 $ (25 )

3. Loans (Tables)

3. Loans (Tables)	9 Months Ended
	Sep. 30, 2018
Loans Held For Investment Tables Abstract
Schedule of loans outstanding	2018 2017 Construction/Land Development $ 68,806 $ 71,620 Farmland 16,735 13,606 Real Estate 188,460 184,546 Multi-Family 9,823 10,298 Commercial Real Estate 155,651 148,906 Home Equity – closed end 10,765 11,606 Home Equity – open end 55,136 54,739 Commercial & Industrial – Non-Real Estate 35,715 36,912 Consumer 10,660 6,633 Dealer Finance 92,084 75,169 Credit Cards 2,949 2,939 Total $ 646,784 $ 616,974
Schedule impaired loans	September 30, 2018 December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 2,972 $ 2,972 $ - $ 4,352 $ 5,269 $ - Farmland 1,941 1,941 - 1,984 1,984 - Real Estate 1,366 1,366 - 1,273 1,273 - Multi-Family - - - - - - Commercial Real Estate 1,444 1,444 - 6,229 6,229 - Home Equity – closed end - - - - - - Home Equity – open end - - - - 347 - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - 8 8 - Credit cards - - - - - - Dealer Finance 16 16 - 31 31 - 7,739 7,739 - 13,877 15,141 - Impaired loans with a valuation allowance Construction/Land Development 6,826 7,386 2,182 4,998 4,998 1,661 Farmland - - - - - Real Estate 426 426 7 1,188 1,188 209 Multi-Family - - - - - Commercial Real Estate 5,851 5,851 1,539 - - - Home Equity – closed end - - - - - Home Equity – open end - - - - - Commercial & Industrial – Non-Real Estate - - - - - Consumer 9 9 2 - - - Credit cards - - - - - Dealer Finance 234 234 15 47 47 12 13,346 13,906 3,745 6,233 6,233 1,882 Total impaired loans $ 21,085 $ 21,645 $ 3,745 $ 20,110 $ 21,374 $ 1,882
Schedule of recorded investment	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 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 $ 3,725 $ 47 $ 5,414 $ 14 $ 4,440 $ 126 $ 4,870 $ 64 Farmland 1,962 80 1,921 - 1,973 142 1,900 - Real Estate 930 17 743 8 1,078 28 746 25 Multi-Family - - - - - - - - Commercial Real Estate 868 44 200 9 2,317 53 167 12 Home Equity – closed end - - - - - - - - Home Equity – open end - - 347 - 87 - 347 - Commercial & Industrial – Non-Real Estate - (8 ) 164 2 - (8 ) 165 8 Consumer and credit cards - (1 ) 10 - 2 (1 ) 10 - Dealer Finance 25 - 23 1 28 1 22 2 7,510 179 8,822 34 9,925 341 8,227 111 Impaired loans with a valuation allowance: Construction/Land Development $ 7,425 $ (125 ) $ 5,640 $ 75 $ 6,664 $ (27 ) $ 6,215 $ 215 Farmland - - - - - - - - Real Estate 866 (17 ) 1,194 10 1,045 10 1,196 41 Multi-Family - - - - - - - - Commercial Real Estate 5,874 179 - - 4,166 320 - - Home Equity – closed end - - - - - - - - Home Equity – open end - - - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - - - Consumer and credit card 10 1 - - 8 2 - - Dealer Finance 232 11 59 1 169 19 59 2 14,407 49 6,893 86 12,052 324 7,470 258 Total Impaired Loans $ 21,917 $ 228 $ 15,715 $ 120 $ 21,977 $ 665 $ 15,697 $ 369 The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of September 30, 2018 and December 31, 2017: 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, 2018 Construction/Land Development $ 19 $ 149 $ 4,536 $ 4,704 $ 64,102 $ 68,806 $ 5,097 $ - Farmland - - - - 16,735 16,735 - - Real Estate 1,432 835 2,234 4,501 183,959 188,460 1,424 1,484 Multi-Family 170 - - 170 9,653 9,823 - - Commercial Real Estate 1,699 1,373 6,195 9,267 146,384 155,651 6,195 - Home Equity – closed end - - 14 14 10,751 10,765 - 14 Home Equity – open end 504 - 487 991 54,145 55,136 125 387 Commercial & Industrial – Non- Real Estate 338 - 113 451 35,264 35,715 112 - Consumer 52 99 3 154 10,506 10,660 5 - Dealer Finance 1,619 457 289 2,365 89,719 92,084 385 - Credit Cards 51 - 12 63 2,886 2,949 - 12 Total $ 5,884 $ 2,913 $ 13,883 $ 22,680 $ 624,104 $ 646,784 $ 13,343 $ 1,897 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loan Receivable Non-Accrual Loans Recorded Investment >90 days & accruing December 31, 2017 Construction/Land Development $ 167 $ 5,459 $ 3,908 $ 9,534 $ 62,086 $ 71,620 $ 3,908 $ - Farmland - - - - 13,606 13,606 - - Real Estate 2,858 1,954 560 5,372 179,174 184,546 1,720 143 Multi-Family 179 - - 179 10,119 10,298 - - Commercial Real Estate 544 - - 544 148,362 148,906 - - Home Equity – closed end - 25 - 25 11,581 11,606 3 - Home Equity – open end 454 165 268 887 53,852 54,739 448 - Commercial & Industrial – Non- Real Estate 108 36 595 739 36,173 36,912 599 - Consumer 43 5 - 48 6,585 6,633 - - Dealer Finance 1,300 252 189 1,741 73,428 75,169 226 54 Credit Cards 30 8 1 39 2,900 2,939 - 1 Total $ 5,683 $ 7,904 $ 5,521 $ 19,108 $ 597,866 $ 616,974 $ 6,904 $ 198

4. Allowance for Loan Losses (T

4. Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2018
Allowance For Loan Losses Tables Abstract
Summary loan loss allowance transactions	September 30, 2018 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 2,547 $ 47 $ 122 $ 86 $ 2,708 $ 2,182 $ 526 Farmland 25 - - (3 ) 22 - 22 Real Estate 719 57 12 (291 ) 383 7 376 Multi-Family 19 - - (4 ) 15 - 15 Commercial Real Estate 482 46 1 1,328 1,765 1,539 226 Home Equity – closed end 66 3 4 (20 ) 47 - 47 Home Equity – open end 209 - 3 (53 ) 159 - 159 Commercial & Industrial – Non-Real Estate 337 544 88 365 246 - 246 Consumer 148 28 28 (68 ) 80 2 78 Dealer Finance 1,440 1,448 673 1,148 1,813 15 1,798 Credit Cards 52 43 34 (8 ) 35 - 35 Total $ 6,044 $ 2,216 $ 965 $ 2,480 $ 7,273 $ 3,745 $ 3,528 December 31, 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 $ 620 $ - $ (214 ) $ 2,547 $ 1,661 $ 886 Farmland 34 - - (9 ) 25 - 25 Real Estate 843 - 2 (126 ) 719 209 510 Multi-Family 23 - - (6 ) 19 - 19 Commercial Real Estate 705 - 13 (236 ) 482 - 482 Home Equity – closed end 75 7 25 (27 ) 66 - 66 Home Equity – open end 470 26 53 (288 ) 209 - 209 Commercial & Industrial – Non-Real Estate 586 179 72 (142 ) 337 - 337 Consumer 78 136 28 178 148 - 148 Dealer Finance 1,289 1,806 1,143 814 1,440 12 1,428 Credit Cards 59 98 37 54 52 - 52 Total $ 7,543 $ 2,872 $ 1,373 $ - $ 6,044 $ 1,882 $ 4,162
Schedule of recorded investment in loan receivables	September 30, 2018 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 68,806 $ 9,798 $ 59,008 Farmland 16,735 1,941 14,794 Real Estate 188,460 1,792 186,668 Multi-Family 9,823 - 9,823 Commercial Real Estate 155,651 7,295 148,356 Home Equity – closed end 10,765 - 10,765 Home Equity –open end 55,136 - 55,136 Commercial & Industrial – Non-Real Estate 35,715 - 35,715 Consumer 10,660 9 10,651 Dealer Finance 92,084 250 91,834 Credit Cards 2,949 - 2,949 $ 646,784 $ 21,085 $ 625,699 Total December 31, 2017 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 71,620 $ 9,350 $ 62,270 Farmland 13,606 1,984 11,622 Real Estate 184,546 2,461 182,085 Multi-Family 10,298 - 10,298 Commercial Real Estate 148,906 6,229 142,677 Home Equity – closed end 11,606 - 11,606 Home Equity –open end 54,739 - 54,739 Commercial & Industrial – Non-Real Estate 36,912 - 36,912 Consumer 6,633 8 6,625 Dealer Finance 75,169 78 75,091 Credit Cards 2,939 - 2,939 $ 616,974 $ 20,110 $ 596,864 Total
Schedule of loan portfolio by internal loan grade	September 30, 2018 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 $ - $ 1,625 $ 17,494 $ 33,461 $ 7,071 $ 270 $ 8,885 $ - $ 68,806 Farmland 62 - 4,469 5,800 3,970 493 1,941 - 16,735 Real Estate - 1,617 53,949 104,600 22,070 1,154 5,070 - 188,460 Multi-Family - - 3,007 6,645 171 - - - 9,823 Commercial Real Estate - 2,388 46,030 86,775 11,301 2,962 6,195 - 155,651 Home Equity – closed end - - 3,337 5,490 1,924 - 14 - 10,765 Home Equity – open end 115 1,713 20,073 29,050 3,559 56 570 - 55,136 Commercial & Industrial (Non-Real Estate) 223 1,971 17,609 12,725 2,664 349 174 - 35,715 Consumer (excluding dealer) 34 178 2,893 $ 5,597 1,893 65 - - 10,660 Total $ 434 $ 9,492 $ 168,861 $ 290,143 $ 54,623 $ 5,349 $ 22,849 $ - $ 551,751 Credit Cards Dealer Finance Performing $ 2,937 $ 91,795 Non-performing 12 289 Total $ 2,949 $ 92,084 December 31, 2017 Grade 1 Minimal Risk Grade 2 Modest Risk Grade 3 Average Risk Grade 4 Acceptable Risk Grade 5 Marginally Acceptable Grade 6 Watch Grade 7 Substandard Grade 8 Doubtful Total Construction/Land Development $ - $ 690 $ 12,974 $ 30,197 $ 9,165 $ 3,520 $ 15,074 $ - $ 71,620 Farmland 63 3,153 4,120 3,793 494 1,983 - 13,606 Real Estate - 1,512 53,764 101,606 19,734 4,660 3,270 - 184,546 Multi-Family - 228 4,780 5,111 179 - - - 10,298 Commercial Real Estate - 3,525 45,384 89,195 9,012 634 1,156 - 148,906 Home Equity – closed end - - 3,535 5,410 1,279 1,379 3 - 11,606 Home Equity – open end 235 1,598 17,383 30,888 3,945 176 514 - 54,739 Commercial & Industrial (Non-Real Estate) 262 1,595 13,297 19,442 1,480 207 629 - 36,912 Consumer (excluding dealer) 34 490 2,226 88 1,065 2,254 476 - 6,633 Total $ 594 $ 9,638 $ 156,496 $ 286,057 $ 49,652 $ 13,324 $ 23,105 $ - $ 538,866 Credit Cards Dealer Finance Performing $ 2,938 $ 75,116 Non-performing 1 53 Total $ 2,939 $ 75,169

5. Employee Benefit Plan (Table

5. Employee Benefit Plan (Tables)	9 Months Ended
	Sep. 30, 2018
Employee Benefit Plan Tables Abstract
Schedule of employee benefit plan	Nine Months Ended Three Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Service cost $ 576 $ 522 $ 192 $ 174 Interest cost 372 365 124 122 Expected return on plan assets (693 ) (638 ) (231 ) (213 ) Amortization of prior service cost (12 ) (11 ) (4 ) (4 ) Amortization of net loss 228 213 76 71 Net periodic pension cost $ 471 $ 450 $ 157 $ 150

6. Fair Value (Tables)

6. Fair Value (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value
Schedule of assets and liabilities at fair value on recurring basis	September 30, 2018 Total Level 1 Level 2 Level 3 U.S. Government sponsored enterprises $ 7,820 $ - $ 7,820 $ - Mortgage-backed obligations of federal agencies 424 - 424 - Total securities available for sale $ 8,244 $ - $ 8,244 $ - December 31, 2017 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 19,998 $ 19,998 $ - $ - U.S. Government sponsored enterprises 7,980 - 7,980 - Mortgage-backed obligations of federal agencies 502 - 502 - Equity securities1 135 - 135 - Total securities available for sale $ 28,615 $ 19,998 $ 8,617 $ -
Schedule of assets and liabilities at fair value on non-recurring basis	September 30, 2018 Total Level 1 Level 2 Level 3 Construction/Land Development $ 4,644 $ - $ - $ 4,644 Real Estate 419 - - 419 Commercial Real Estate 4,312 - - 4,312 Consumer 7 - - 7 Dealer Finance 219 - - 219 Impaired loans $ 9,601 $ - $ - $ 9,601 December 31, 2017 Total Level 1 Level 2 Level 3 Construction/Land Development $ 3,337 $ - - $ 3,337 Real Estate 979 - - 979 Dealer Finance 35 - - 35 Impaired loans $ 4,351 $ - $ - $ 4,351
Schedule of fair value measurements	Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 9,601 Discounted appraised value Discount for selling costs and marketability 2%-19% (Average 4.9%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2017: Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 4,351 Discounted appraised value Discount for selling costs and marketability 3%-19% (Average 5.5 %) September 30, 2018 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,063 - - $ 2,063 December 31, 2017 Total Level 1 Level 2 Level 3 Other real estate owned $ 1,984 - - $ 1,984 Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,063 Discounted appraised value Discount for selling costs 2.5%-10% (Average 4%) Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 1,984 Discounted appraised value Discount for selling costs 5%-15% (Average 8%)

7. Disclosures About Fair Val_2

7. Disclosures About Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosures About Fair Value Of Financial Instruments Tables Abstract
Schedule of carrying value and estimated fair value for financial instruments	Fair Value Measurements at September 30, 2018 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, 2018 Assets: Cash and cash equivalents $ 17,423 $ 17,423 $ - $ - $ 17,423 Securities 8,367 - 8,367 - 8,367 Loans held for sale 38,595 - 38,595 - 38,595 Loans held for investment, net 639,511 - - 636,558 636,558 Interest receivable 2,076 - 2,076 - 2,076 Bank owned life insurance 19,320 - 19,320 - 19,320 Total $ 725,292 $ 17,423 $ 68,358 $ 636,558 $ 722,339 Liabilities: Deposits $ 588,985 $ - $ 431,124 $ 160,211 $ 591,335 Short-term debt 30,000 - 30,000 - 30,000 Long-term debt 46,326 - - 46,251 46,251 Interest payable 318 - 318 - 318 Total $ 665,629 $ - $ 461,442 $ 206,462 $ 667,904 Fair Value Measurements at December 31, 2017 Using (dollars in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at December 31, 2017 Assets: Cash and cash equivalents $ 11,907 $ 11,907 $ - $ - $ 11,907 Securities 28,740 19,998 8,742 - 28,740 Loans held for sale 39,775 - 39,775 - 39,775 Loans held for investment, net 610,930 - - 646,703 646,703 Interest receivable 2,007 - 2,007 - 2,007 Bank owned life insurance 13,950 - 13,950 - 13,950 Total $ 707,309 $ 31,905 $ 64,474 $ 646,703 $ 743,082 Liabilities: Deposits $ 569,177 $ - $ 403,907 $ 167,210 $ 571,117 Short-term debt 25,296 - 25,296 - 25,296 Long-term debt 49,733 - - 49,869 49,869 Interest payable 260 - 260 - 260 Total $ 644,466 $ - $ 429,463 $ 217,079 $ 646,542

8. Troubled Debt Restructuring

8. Troubled Debt Restructuring (Tables)	9 Months Ended
	Sep. 30, 2018
Troubled Debt Restructuring Abstract
Schedule of troubled debt restructuring	September 30, 2018 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 3 $ 2,245 $ 2,245 Consumer 14 199 199 Total 17 $ 2,444 $ 2,444 September 30, 2018 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 1 $ 990 $ 990 Consumer 2 14 14 Total 3 $ 1,004 $ 1,004 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

9. Accumulated Other Comprehe_2

9. Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2018
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, 2017 $ (20 ) $ (4,122 ) $ (4,142 ) Change in unrealized securities gains (losses), net of tax (131 ) - (131 ) Change in unfunded pension liability, net of tax - - - Balance at September 30, 2018 $ (151 ) $ (4,122 ) $ (4,273 ) (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 )

10. Business Segments (Tables)

10. Business Segments (Tables)	9 Months Ended
	Sep. 30, 2018
Business Segments Tables Abstract
Schedule of business segments	Nine Months Ended September 30, 2018 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 26,915 $ 101 $ 109 $ - $ - $ (92 ) $ 27,033 Service charges on deposits 1,102 - - - - - 1,102 Investment services and insurance income - - 673 - - (14 ) 659 Mortgage banking income, net - 1,664 - - - - 1,664 Title insurance income - 232 - 734 - - 966 Other operating income 1,489 (1 ) - - - - 1,488 Total income 29,506 1,996 782 734 - (106 ) 32,912 Expenses: Interest Expense 3,403 87 - - - (92 ) 3,398 Provision for loan losses 2,480 - - - - - 2,480 Salary and benefit expense 9,877 1,404 437 517 - - 12,235 Other operating expenses 7,111 538 45 128 36 (14 ) 7,844 Total expense 22,871 2,029 482 645 36 (106 ) 25,957 Net income (loss) before taxes 6,635 (33 ) 300 89 (36 ) - 6,955 Income tax expense 597 - 52 - 141 - 790 Net income (loss) $ 6,038 $ (33 ) $ 248 $ 89 $ (177 ) $ - $ 6,165 Net income attributable to non-controlling interest - (10 ) - - - - (10 ) Net Income attributable to F & M Bank Corp. $ 6,038 $ (23 ) $ 248 $ 89 $ (177 ) $ - $ 6,175 Total Assets $ 777,401 $ 7,103 $ 6,954 $ 720 $ 92,372 $ (108,945 ) $ 775,605 Goodwill $ 2,670 $ 65 $ - $ 57 $ 164 $ - $ 2,956 Three months ended September 30, 2018 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,295 $ 31 $ 37 $ - $ - $ (35 ) $ 9,328 Service charges on deposits 378 - - - - - 378 Investment services and insurance income - - 242 - - (3 ) 239 Mortgage banking income, net - 529 - - - - 529 Title insurance income - 123 - 281 - - 404 Other operating income 646 (49 ) - - - - 597 Total income 10,319 634 279 281 - (38 ) 11,475 Expenses: Interest Expense 1,305 34 - - - (35 ) 1,304 Provision for loan losses 450 - - - - - 450 Salary and benefit expense 3,312 574 154 172 - - 4,212 Other operating expenses 2,617 82 16 39 6 (3 ) 2,757 Total expense 7,684 690 170 211 6 (38 ) 8,723 Net income (loss) before taxes 2,635 (56 ) 109 70 (6 ) - 2,752 Income tax expense 312 - 16 - (76 ) - 252 Net income (loss) $ 2,323 $ (56 ) $ 93 $ 70 $ 70 $ - $ 2,500 Net income attributable to non-controlling interest - (15 ) - - - - (15 ) Net Income attributable to F & M Bank Corp. $ 2,323 $ (41 ) $ 93 $ 70 $ 70 $ - $ 2,515 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 - 1,763 - - - - 1,763 Title insurance income - 211 - 668 - - 879 Gain on prepayment of long-term debt 504 - - - - - 504 Loss on investments - (40 ) (2 ) - - - (42 ) Other operating income 1,296 - - - - - 1,296 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 9,026 1,203 341 399 - - 10,969 Other operating expenses 6,421 591 23 118 4 - 7,157 Total expense 18,313 1,859 364 517 4 (70 ) 20,987 Net income (loss) before taxes 9,313 172 275 151 (4 ) - 9,907 Income tax expense 2,603 - 83 - (53 ) - 2,633 Net income (loss) $ 6,710 $ 172 $ 192 $ 151 $ 49 $ - $ 7,274 Net income attributable to non-controlling 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 $ 8,643 $ 32 $ 37 $ - $ - $ (24 ) $ 8,688 Service charges on deposits 359 - - - - - 359 Investment services and insurance income - - 169 - - - 169 Mortgage banking income, net - 783 - - - - 783 Title insurance income - 78 - 247 - - 325 Other operating income 509 - - - - - 509 Total income 9,511 893 206 247 - (24 ) 10,833 Expenses: Interest Expense 1,030 24 - - - (24 ) 1,030 Provision for loan losses - - - - - - - Salary and benefit expense 3,048 587 107 141 - - 3,883 Other operating expenses 2,203 121 6 46 - - 2,376 Total expense 6,281 732 113 187 - (24 ) 7,289 Net income (loss) before taxes 3,230 161 93 60 - - 3,544 Income tax expense 933 - 30 - (17 ) - 946 Net income (loss) $ 2,297 $ 161 $ 63 $ 60 $ 17 $ - $ 2,598 Net income attributable to non-controlling interest - 48 - - - - 48 Net Income attributable to F & M Bank Corp. $ 2,297 $ 113 $ 63 $ 60 $ 17 $ - $ 2,550

12. Revenue Recognition (Tables

12. Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue Recognition Tables Abstract
Summary of noninterest income, segregated by revenue streams	Nine Months Ended September 30, Three Months Ended September 30, 2018 2018 2017 2018 2017 Noninterest Income (in thousands) In-scope of Topic 606: Service Charges on Deposits $ 1,102 $ 1,010 $ 378 $ 359 Investment Services and Insurance Income 659 530 239 169 Title Insurance Income 966 668 404 247 ATM and check card fees 1,130 1,034 395 353 Other 390 368 142 129 Noninterest Income (in-scope of Topic 606) 4,247 3,610 1,556 1,257 Noninterest Income (out-of-scope of Topic 606) 1,632 2,330 591 888 Total Noninterest Income $ 5,879 $ 5,940 $ 2,147 $ 2,145

1. Summary of Significant Acc_4

1. Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings available to common stockholders:
Net income	$ 2,500	$ 2,598	$ 6,165	$ 7,274
Noncontrolling interest income	(15)	48	(10)	51
Preferred stock dividends	103	103	310	312
Net income available to common stockholders	$ 2,412	$ 2,447	$ 5,865	$ 6,911

1. Summary of Significant Acc_5

1. Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Summary Of Significant Accounting Policies
Basic EPS, Income	$ 2,412	$ 2,447	$ 5,865	$ 6,911
Effect of Dilutive Securities Convertible Preferred Stock, Income	103	103	310	312
Diluted EPS, Income	$ 2,515	$ 2,550	$ 6,175	$ 7,223
Diluted EPS, Shares	3,229,341	3,270,969	3,245,032	3,271,863
Effect of Dilutive Securities Convertible Preferred Stock, Shares	358,309	361,638	359,161	362,993
Diluted EPS, Shares	3,587,650	3,632,607	3,604,193	3,634,856
Basic EPS, Per Shares	$ 0.75	$ 0.75	$ 1.81	$ 2.11
Effect of Dilutive Securities Convertible Preferred Stock, Per Shares	(0.05)	(0.05)	(0.10)	(0.12)
Diluted EPS, Per Shares	$ 0.7	$ 0.7	$ 1.71	$ 1.99

2. Investment Securities (Detai

2. Investment Securities (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2018	Dec. 31, 2017
Securities available for sale
Cost		$ 8,434	$ 28,640
Unrealized Gains		0	0
Unrealized Losses		190	25
Market Value		8,244	28,615	[1]
U. S. Treasury and agency obligations [Member]
Securities held to maturity
Cost		123	125
Market Value		123	125
Securities available for sale
Unrealized Gains		0	0
Unrealized Losses		0	0
U. S. Treasuries [Member]
Securities available for sale
Cost			19,998
Unrealized Gains			0
Unrealized Losses			0
Market Value			19,998
Government Sponsored Enterprises [Member]
Securities available for sale
Cost		7,999	7,999
Unrealized Gains		0	0
Unrealized Losses		179	19
Market Value		7,820	7,980
Mortgage-backed securities [Member]
Securities available for sale
Cost		435	508
Unrealized Gains		0	0
Unrealized Losses		11	6
Market Value		$ 424	502
Marketable Equities [Member]
Securities available for sale
Cost	[2]		135
Unrealized Gains	[2]		0
Unrealized Losses	[2]		0
Market Value	[2]		$ 135
[1]	2017 Derived from audited consolidated financial statements.
[2]	Transferred to other investments on January 1, 2018 upon adoption of ASU 2016-01.

2. Investment Securities (Det_2

2. Investment Securities (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	[1]
Total, Amortized Cost	$ 123	$ 125
Securities Held to Maturity [Member]
Due in one year or less, Amortized Cost	0
Due after one year through five years, Amortized Cost	123
Due after five years, Amortized Cost	0
Due after ten years, Amortized Cost	0
Total, Amortized Cost	123
Due in one year or less, Fair Value	0
Due after one year through five years, Fair Value	123
Due after five years, Fair Value	0
Due after ten years, Fair Value	0
Total, Fair Value	123
Securities Available for Sale [Member]
Due in one year or less, Amortized Cost	0
Due after one year through five years, Amortized Cost	5,999
Due after five years, Amortized Cost	2,435
Due after ten years, Amortized Cost	0
Total, Amortized Cost	8,434
Due in one year or less, Fair Value	0
Due after one year through five years, Fair Value	5,880
Due after five years, Fair Value	2,364
Due after ten years, Fair Value	0
Total, Fair Value	$ 8,244
[1]	2017 Derived from audited consolidated financial statements.

2. Investment Securities (Det_3

2. Investment Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value Less than 12 Months	$ 8,244	$ 4,483
Unrealized Losses Less than 12 Months	(190)	(25)
Fair Value More than 12 Months	0	0
Unrealized Losses More than 12 Months	0	0
Fair Value Total	8,244	4,483
Unrealized Losses Total	(190)	(25)
Government sponsored Enterprises [Member]
Fair Value Less than 12 Months	7,820	3,981
Unrealized Losses Less than 12 Months	(179)	(19)
Fair Value More than 12 Months	0	0
Unrealized Losses More than 12 Months	0	0
Fair Value Total	7,820	3,981
Unrealized Losses Total	(179)	(19)
Mortgage-backed securities [Member]
Fair Value Less than 12 Months	424	502
Unrealized Losses Less than 12 Months	(11)	(6)
Fair Value More than 12 Months	0	0
Unrealized Losses More than 12 Months	0	0
Fair Value Total	424	502
Unrealized Losses Total	$ (11)	$ (6)

2. Investment Securities (Det_4

2. Investment Securities (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Invetment Securities Details 3Abstract
Other investments	$ 13,857	$ 12,503	[1]
[1]	2017 Derived from audited consolidated financial statements.

3. Loans (Details)

3. Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans outstanding	$ 646,784	$ 616,974
Construction/Land Development [Member]
Loans outstanding	68,806	71,620
Farmland [Member]
Loans outstanding	16,735	13,606
Real Estate [Member]
Loans outstanding	188,460	184,546
Multi-Family [Member]
Loans outstanding	9,823	10,298
Commercial Real Estate [Member]
Loans outstanding	155,651	148,906
Home Equity - Closed End [Member]
Loans outstanding	10,765	11,606
Home Equity [Member]
Loans outstanding	55,136	54,739
Commercial & Industrial - Non-Real Estate [Member]
Loans outstanding	35,715	36,912
Consumer [Member]
Loans outstanding	10,660	6,633
Dealer Finance [Member]
Loans outstanding	92,084	75,169
Credit Cards [Member]
Loans outstanding	$ 2,949	$ 2,939

3. Loans (Details 1)

3. Loans (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Impaired loans without a valuation allowance
Recorded Investment	$ 7,739		$ 7,739		$ 13,877
Unpaid Principal Balance	7,739		7,739		15,141
Related Allowance	0		0		0
Average Recorded Investment	7,510	$ 8,822	9,925	$ 8,227
Interest Income Recognized	179	34	341	111
Impaired loans with a valuation allowance
Recorded Investment	13,346		13,346		6,233
Unpaid Principal Balance	13,906		13,906		6,233
Related Allowance	3,745		3,745		1,882
Average Recorded Investment	14,407	6,893	12,052	7,470
Interest Income Recognized	49	86	324	258
Total impaired loans
Recorded Investment	21,085		21,085		20,110
Unpaid Principal Balance	21,645		21,645		21,374
Related Allowance	3,745		3,745		1,882
Average Recorded Investment	21,917	15,715	21,977	15,697
Interest Income Recognized	228	120	665	369
Construction/Land Development [Member]
Impaired loans without a valuation allowance
Recorded Investment	2,972		2,972		4,352
Unpaid Principal Balance	2,972		2,972		5,269
Related Allowance	0		0		0
Average Recorded Investment	3,725	5,414	4,440	4,870
Interest Income Recognized	47	14	126	64
Impaired loans with a valuation allowance
Recorded Investment	6,826		6,826		4,998
Unpaid Principal Balance	7,386		7,386		4,998
Related Allowance	2,182		2,182		1,661
Average Recorded Investment	7,425	5,640	6,664	6,215
Interest Income Recognized	(125)	75	(27)	215
Farmland [Member]
Impaired loans without a valuation allowance
Recorded Investment	1,941		1,941		1,984
Unpaid Principal Balance	1,941		1,941		1,984
Related Allowance	0		0		0
Average Recorded Investment	1,962	1,921	1,973	1,900
Interest Income Recognized	80	0	142	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	1,366		1,366		1,273
Unpaid Principal Balance	1,366		1,366		1,273
Related Allowance	0		0		0
Average Recorded Investment	930	743	1,078	746
Interest Income Recognized	17	8	28	25
Impaired loans with a valuation allowance
Recorded Investment	426		426		1,188
Unpaid Principal Balance	426		426		1,188
Related Allowance	7		7		209
Average Recorded Investment	866	1,194	1,045	1,196
Interest Income Recognized	(17)	10	10	41
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	1,444		1,444		6,229
Unpaid Principal Balance	1,444		1,444		6,229
Related Allowance	0		0		0
Average Recorded Investment	868	200	2,317	167
Interest Income Recognized	44	9	53	12
Impaired loans with a valuation allowance
Recorded Investment	5,851		5,851		0
Unpaid Principal Balance	5,851		5,851		0
Related Allowance	1,539		1,539		0
Average Recorded Investment	5,874	0	4,166	0
Interest Income Recognized	179	0	320	0
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	0		0		347
Related Allowance	0		0		0
Average Recorded Investment	0	347	87	347
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 & Industrial - Non-Real Estate [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	164	0	165
Interest Income Recognized	(8)	2	(8)	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	0	0	0
Interest Income Recognized	0	0	0	0
Consumer [Member]
Impaired loans without a valuation allowance
Recorded Investment	0		0		8
Unpaid Principal Balance	0		0		8
Related Allowance	0		0		0
Impaired loans with a valuation allowance
Recorded Investment	9		9		0
Unpaid Principal Balance	9		9		0
Related Allowance	2		2		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
Dealer Finance [Member]
Impaired loans without a valuation allowance
Recorded Investment	16		16		31
Unpaid Principal Balance	16		16		31
Related Allowance	0		0		0
Average Recorded Investment	25	23	28	22
Interest Income Recognized	0	1	1	2
Impaired loans with a valuation allowance
Recorded Investment	234		234		47
Unpaid Principal Balance	234		234		47
Related Allowance	15		15		$ 12
Average Recorded Investment	232	59	169	59
Interest Income Recognized	11	1	19	2
Consumer and Credit Cards [Member]
Impaired loans without a valuation allowance
Average Recorded Investment	0	10	2	10
Interest Income Recognized	(1)	0	(1)	0
Impaired loans with a valuation allowance
Average Recorded Investment	10	0	8	0
Interest Income Recognized	$ 1	$ 0	$ 2	$ 0

3. Loans (Details 2)

3. Loans (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
30-59 Days Past due	$ 5,884	$ 5,683
60-89 Days Past due	2,913	7,904
Greater than 90 Days (excluding non-accrual)	13,883	5,521
Total past due	22,680	19,108
Current	624,104	597,866
Total Loans Receivable	646,784	616,974
Non-Accrual Loans	13,343	6,904
Recorded Investment >90 days & accruing	1,897	198
Credit Cards [Member]
30-59 Days Past due	51	30
60-89 Days Past due	0	8
Greater than 90 Days (excluding non-accrual)	12	1
Total past due	63	39
Current	2,886	2,900
Total Loans Receivable	2,949	2,939
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	12	1
Construction/Land Development [Member]
30-59 Days Past due	19	167
60-89 Days Past due	149	5,459
Greater than 90 Days (excluding non-accrual)	4,536	3,908
Total past due	4,704	9,534
Current	64,102	62,086
Total Loans Receivable	68,806	71,620
Non-Accrual Loans	5,097	3,908
Recorded Investment >90 days & accruing	0	0
Farmland [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	16,735	13,606
Total Loans Receivable	16,735	13,606
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Real Estate [Member]
30-59 Days Past due	1,432	2,858
60-89 Days Past due	835	1,954
Greater than 90 Days (excluding non-accrual)	2,234	560
Total past due	4,501	5,372
Current	183,959	179,174
Total Loans Receivable	188,460	184,546
Non-Accrual Loans	1,424	1,720
Recorded Investment >90 days & accruing	1,484	143
Multi-Family [Member]
30-59 Days Past due	170	179
60-89 Days Past due	0	0
Greater than 90 Days (excluding non-accrual)	0	0
Total past due	170	179
Current	9,653	10,119
Total Loans Receivable	9,823	10,298
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Commercial Real Estate [Member]
30-59 Days Past due	1,699	544
60-89 Days Past due	1,373	0
Greater than 90 Days (excluding non-accrual)	6,195	0
Total past due	9,267	544
Current	146,384	148,362
Total Loans Receivable	155,651	148,906
Non-Accrual Loans	6,195	0
Recorded Investment >90 days & accruing	0	0
Home Equity - Closed End [Member]
30-59 Days Past due	0	0
60-89 Days Past due	0	25
Greater than 90 Days (excluding non-accrual)	14	0
Total past due	14	25
Current	10,751	11,581
Total Loans Receivable	10,765	11,606
Non-Accrual Loans	0	3
Recorded Investment >90 days & accruing	14	0
Home Equity [Member]
30-59 Days Past due	504	454
60-89 Days Past due	0	165
Greater than 90 Days (excluding non-accrual)	487	268
Total past due	991	887
Current	54,145	53,852
Total Loans Receivable	55,136	54,739
Non-Accrual Loans	125	448
Recorded Investment >90 days & accruing	387	0
Commercial & Industrial - Non-Real Estate [Member]
30-59 Days Past due	338	108
60-89 Days Past due	0	36
Greater than 90 Days (excluding non-accrual)	113	595
Total past due	451	739
Current	35,264	36,173
Total Loans Receivable	35,715	36,912
Non-Accrual Loans	112	599
Recorded Investment >90 days & accruing	0	0
Consumer [Member]
30-59 Days Past due	52	43
60-89 Days Past due	99	5
Greater than 90 Days (excluding non-accrual)	3	0
Total past due	154	48
Current	10,506	6,585
Total Loans Receivable	10,660	6,633
Non-Accrual Loans	5	0
Recorded Investment >90 days & accruing	0	0
Dealer Finance [Member]
30-59 Days Past due	1,619	1,300
60-89 Days Past due	457	252
Greater than 90 Days (excluding non-accrual)	289	189
Total past due	2,365	1,741
Current	89,719	73,428
Total Loans Receivable	92,084	75,169
Non-Accrual Loans	385	226
Recorded Investment >90 days & accruing	$ 0	$ 54

3. Loans (Details Narrative)

3. Loans (Details Narrative) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Loans
Pledged loans	$ 187,927	$ 218,523
Loans held for sale	38,595	39,775	[1]
Foreclosed residential real estate in other real estate	$ 177	$ 207
[1]	2017 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, 2018	Dec. 31, 2017
Beginning Balance	$ 6,044	$ 7,543
Charge-offs	2,216	2,872
Recoveries	965	1,373
Provision	2,480	0
Ending Balance	7,273	6,044
Individually Evaluated for Impairment	3,745	1,882
Collectively Evaluated for Impairment	3,528	4,162
Construction/Land Development [Member]
Beginning Balance	2,547	3,381
Charge-offs	47	620
Recoveries	122	0
Provision	86	(214)
Ending Balance	2,708	2,547
Individually Evaluated for Impairment	2,182	1,661
Collectively Evaluated for Impairment	526	886
Farmland [Member]
Beginning Balance	25	34
Charge-offs	0	0
Recoveries	0	0
Provision	(3)	(9)
Ending Balance	22	25
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	22	25
Real Estate [Member]
Beginning Balance	719	843
Charge-offs	57	0
Recoveries	12	2
Provision	(291)	(126)
Ending Balance	383	719
Individually Evaluated for Impairment	7	209
Collectively Evaluated for Impairment	376	510
Multi-Family [Member]
Beginning Balance	19	23
Charge-offs	0	0
Recoveries	0	0
Provision	(4)	(6)
Ending Balance	15	19
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	15	19
Commercial Real Estate [Member]
Beginning Balance	482	705
Charge-offs	46	0
Recoveries	1	13
Provision	1,328	(236)
Ending Balance	1,765	482
Individually Evaluated for Impairment	1,539	0
Collectively Evaluated for Impairment	226	482
Home Equity - Closed End [Member]
Beginning Balance	66	75
Charge-offs	3	7
Recoveries	4	25
Provision	(20)	(27)
Ending Balance	47	66
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	47	66
Home Equity [Member]
Beginning Balance	209	470
Charge-offs	0	26
Recoveries	3	53
Provision	(53)	(288)
Ending Balance	159	209
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	159	209
Commercial & Industrial - Non-Real Estate [Member]
Beginning Balance	337	586
Charge-offs	544	179
Recoveries	88	72
Provision	365	(142)
Ending Balance	246	337
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	246	337
Consumer [Member]
Beginning Balance	148	78
Charge-offs	28	136
Recoveries	28	28
Provision	(68)	178
Ending Balance	80	148
Individually Evaluated for Impairment	2	0
Collectively Evaluated for Impairment	78	148
Dealer Finance [Member]
Beginning Balance	1,440	1,289
Charge-offs	1,448	1,806
Recoveries	673	1,143
Provision	1,148	814
Ending Balance	1,813	1,440
Individually Evaluated for Impairment	15	12
Collectively Evaluated for Impairment	1,798	1,428
Credit Cards [Member]
Beginning Balance	52	59
Charge-offs	43	98
Recoveries	34	37
Provision	(8)	54
Ending Balance	35	52
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	$ 35	$ 52

4. Allowance for Loan Losses _2

4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loan Receivable	$ 646,784	$ 616,974
Loans Individually Evaluated for Impairment	21,085	20,110
Loans Collectively Evaluated for Impairment	625,699	596,864
Construction/Land Development [Member]
Loan Receivable	68,806	71,620
Loans Individually Evaluated for Impairment	9,798	9,350
Loans Collectively Evaluated for Impairment	59,008	62,270
Farmland [Member]
Loan Receivable	16,735	13,606
Loans Individually Evaluated for Impairment	1,941	1,984
Loans Collectively Evaluated for Impairment	14,794	11,622
Real Estate [Member]
Loan Receivable	188,460	184,546
Loans Individually Evaluated for Impairment	1,792	2,461
Loans Collectively Evaluated for Impairment	186,668	182,085
Multi-Family [Member]
Loan Receivable	9,823	10,298
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	9,823	10,298
Commercial Real Estate [Member]
Loan Receivable	155,651	148,906
Loans Individually Evaluated for Impairment	7,295	6,229
Loans Collectively Evaluated for Impairment	148,356	142,677
Home Equity - Closed End [Member]
Loan Receivable	10,765	11,606
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	10,765	11,606
Home Equity [Member]
Loan Receivable	55,136	54,739
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	55,136	54,739
Commercial & Industrial - Non-Real Estate [Member]
Loan Receivable	35,715	36,912
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	35,715	36,912
Consumer [Member]
Loan Receivable	10,660	6,633
Loans Individually Evaluated for Impairment	9	8
Loans Collectively Evaluated for Impairment	10,651	6,625
Dealer Finance [Member]
Loan Receivable	92,084	75,169
Loans Individually Evaluated for Impairment	250	78
Loans Collectively Evaluated for Impairment	91,834	75,091
Credit Cards [Member]
Loan Receivable	2,949	2,939
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	$ 2,949	$ 2,939

4. Allowance for Loan Losses _3

4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Construction/Land Development	$ 68,806	$ 71,620
Farmland	16,735	13,606
Real Estate	188,460	184,546
Multi-Family	9,823	10,298
Commercial Real Estate	155,651	148,906
Home Equity - closed end	10,765	11,606
Home Equity - open end	55,136	54,739
Commercial & Industrial (Non-Real Estate)	35,715	36,912
Consumer (excluding dealer)	10,660	6,633
Total	551,751	538,866
Grade 1 Minimal Risk [Member]
Construction/Land Development	0	0
Farmland	62	63
Real Estate	0	0
Multi-Family	0	0
Commercial Real Estate	0	0
Home Equity - closed end	0	0
Home Equity - open end	115	235
Commercial & Industrial (Non-Real Estate)	223	262
Consumer (excluding dealer)	34	34
Total	434	594
Grade 2 Modest Risk [Member]
Construction/Land Development	1,625	690
Farmland	0	0
Real Estate	1,617	1,512
Multi-Family	0	228
Commercial Real Estate	2,388	3,525
Home Equity - closed end	0	0
Home Equity - open end	1,713	1,598
Commercial & Industrial (Non-Real Estate)	1,971	1,595
Consumer (excluding dealer)	178	490
Total	9,492	9,638
Grade 3 Average Risk [Member]
Construction/Land Development	17,494	12,974
Farmland	4,469	3,153
Real Estate	53,949	53,764
Multi-Family	3,007	4,780
Commercial Real Estate	46,030	45,384
Home Equity - closed end	3,337	3,535
Home Equity - open end	20,073	17,383
Commercial & Industrial (Non-Real Estate)	17,609	13,297
Consumer (excluding dealer)	2,893	2,226
Total	168,861	156,496
Grade 4 Acceptable Risk [Member]
Construction/Land Development	33,461	30,197
Farmland	5,800	4,120
Real Estate	104,600	101,606
Multi-Family	6,645	5,111
Commercial Real Estate	86,775	89,195
Home Equity - closed end	5,490	5,410
Home Equity - open end	29,050	30,888
Commercial & Industrial (Non-Real Estate)	12,725	19,442
Consumer (excluding dealer)	5,597	88
Total	290,143	286,057
Grade 5 Marginally Acceptable [Member]
Construction/Land Development	7,071	9,165
Farmland	3,970	3,793
Real Estate	22,070	19,734
Multi-Family	171	179
Commercial Real Estate	11,301	9,012
Home Equity - closed end	1,924	1,279
Home Equity - open end	3,559	3,945
Commercial & Industrial (Non-Real Estate)	2,664	1,480
Consumer (excluding dealer)	1,893	1,065
Total	54,623	49,652
Grade 6 Watch [Member]
Construction/Land Development	270	3,520
Farmland	493	494
Real Estate	1,154	4,660
Multi-Family	0	0
Commercial Real Estate	2,962	634
Home Equity - closed end	0	1,379
Home Equity - open end	56	176
Commercial & Industrial (Non-Real Estate)	349	207
Consumer (excluding dealer)	65	2,254
Total	5,349	13,324
Grade 7 Substandard [Member]
Construction/Land Development	8,885	15,074
Farmland	1,941	1,983
Real Estate	5,070	3,270
Multi-Family	0	0
Commercial Real Estate	6,195	1,156
Home Equity - closed end	14	3
Home Equity - open end	570	514
Commercial & Industrial (Non-Real Estate)	174	629
Consumer (excluding dealer)	0	476
Total	22,849	23,105
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 _4

4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Credit cards	$ 2,949	$ 2,939
Dealer Finance	92,084	75,169
Performing [Member]
Credit cards	2,937	2,938
Dealer Finance	91,795	75,116
Non performing [Member]
Credit cards	12	1
Dealer Finance	$ 289	$ 53

5. Employee Benefit Plan (Detai

5. Employee Benefit Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Employee Benefit Plan Details Abstract
Service cost	$ 192	$ 174	$ 576	$ 522
Interest cost	124	122	372	365
Expected return on plan assets	(231)	(213)	(693)	(638)
Amortization of prior service cost	(4)	(4)	(12)	(11)
Amortization of net loss	76	71	228	213
Net periodic pension cost	$ 157	$ 150	$ 471	$ 450

6. Fair Value (Details)

6. Fair Value (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U. S. Treasuries			$ 19,998
U. S. Government sponsored enterprises		$ 7,820	7,980
Mortgage-backed obligations of federal agencies		424	502
Equity securities	[1]		135
Total securities available for sale		8,244	28,615
Fair Value Inputs Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U. S. Treasuries			19,998
U. S. Government sponsored enterprises		0	0
Mortgage-backed obligations of federal agencies		0	0
Equity securities	[1]		0
Total securities available for sale		0	19,998
Fair Value Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U. S. Treasuries			0
U. S. Government sponsored enterprises		7,820	7,980
Mortgage-backed obligations of federal agencies		424	502
Equity securities	[1]		135
Total securities available for sale		8,244	8,617
Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U. S. Treasuries			0
U. S. Government sponsored enterprises		0	0
Mortgage-backed obligations of federal agencies		0	0
Equity securities	[1]		0
Total securities available for sale		$ 0	$ 0
[1]	Transferred to other investments on January 1, 2018 upon adoption of ASU 2016-01.

6. Fair Value (Details 1)

6. Fair Value (Details 1) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Impaired loans	$ 9,601	$ 4,351
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	9,601	4,351
Construction/Land Development [Member]
Impaired loans	4,644	3,337
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	4,644	3,337
Real Estate [Member]
Impaired loans	419	979
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	419	979
Commercial Real Estate [Member]
Impaired loans	4,312
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	4,312
Consumer [Member]
Impaired loans	7
Consumer [Member] | Fair Value Inputs Level 1 [Member]
Impaired loans	0
Consumer [Member] | Fair Value Inputs Level 2 [Member]
Impaired loans	0
Consumer [Member] | Fair Value Inputs Level 3 [Member]
Impaired loans	7
Dealer Finance [Member]
Impaired loans	219	35
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	$ 219	$ 35

6. Fair Value (Details 2)

6. Fair Value (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Impaired Loans	$ 9,601	$ 4,351
Fair Value Inputs Level 3 [Member]
Impaired Loans	9,601	4,351
Other Real Estate Owned	$ 2,063	$ 1,984
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	4.90%	5.50%
Average Other Real Estate Owned	4.00%	8.00%
Fair Value Inputs Level 3 [Member] | Minimum [Member]
Range Impaired Loans	2.00%	3.00%
Range Other Real Estate Owned	2.50%	5.00%
Fair Value Inputs Level 3 [Member] | Maximum [Member]
Range Impaired Loans	19.00%	19.00%
Range Other Real Estate Owned	10.00%	15.00%

7. Disclosures About Fair Val_3

7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents, Carrying amount	$ 17,423	$ 11,907	[1]
Cash and cash equivalents, Fair value	17,423	11,907
Securities, Carrying amount	8,367	28,740
Securities, Fair value	8,367	28,740
Loans held for sale, Carrying Amount	38,595	39,775
Loans held for sale, Fair Value	38,595	39,775
Loans held for investment, net, Carrying Amount	639,511	610,930
Loans held for investment, net, Fair Value	636,558	646,703
Interest receivable, Carrying Amount	2,076	2,007	[1]
Interest receivable, Fair Value	2,076	2,007
Bank owned life insurance, Carrying Amount	19,320	13,950	[1]
Bank owned life insurance, Fair Value	19,320	13,950
Total Assets, Carrying Amount	725,292	707,309
Total Assets, Fair Value	722,339	743,082
Liabilities
Deposits, Carrying Amount	588,985	569,177
Deposits, Fair Value	591,335	571,117
Short-term debt, Carrying Amount	30,000	25,296
Short-term debt, Fair Value	30,000	25,296
Long-term debt, Carrying Amount	46,326	49,733
Long-term debt, Fair Value	46,251	49,869
Interest payable, Carrying Amount	318	260
Interest payable, Fair Value	318	260
Total Liabilities, Carrying Amount	665,629	644,466
Total Liabilities, Fair Value	667,904	646,542
Fair Value Inputs Level 1 [Member]
Assets:
Cash and cash equivalents, Fair value	17,423	11,907
Securities, Fair value	0	19,998
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	17,423	31,905
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	8,367	8,742
Loans held for sale, Fair Value	38,595	39,775
Loans held for investment, net, Fair Value	0	0
Interest receivable, Fair Value	2,076	2,007
Bank owned life insurance, Fair Value	19,320	13,950
Total Assets, Fair Value	68,358	64,474
Liabilities
Deposits, Fair Value	431,124	403,907
Short-term debt, Fair Value	30,000	25,296
Long-term debt, Fair Value	0	0
Interest payable, Fair Value	318	260
Total Liabilities, Fair Value	461,442	429,463
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	636,558	646,703
Interest receivable, Fair Value	0	0
Bank owned life insurance, Fair Value	0	0
Total Assets, Fair Value	636,558	646,703
Liabilities
Deposits, Fair Value	160,211	167,210
Short-term debt, Fair Value	0	0
Long-term debt, Fair Value	46,251	49,869
Interest payable, Fair Value	0	0
Total Liabilities, Fair Value	$ 206,462	$ 217,079
[1]	2017 Derived from audited consolidated financial statements.

8. Troubled Debt Restructurin_2

8. Troubled Debt Restructuring (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)Integer	Sep. 30, 2017USD ($)Integer	Sep. 30, 2018USD ($)Integer	Sep. 30, 2017USD ($)Integer
Number of Contracts | Integer	17		3
Pre-Modification Outstanding Recorded Investment	$ 2,444		$ 1,004
Post-Modification Outstanding Recorded Investment	$ 2,444		$ 1,004
Commercial Real Estate [Member]
Number of Contracts | Integer	3		1
Pre-Modification Outstanding Recorded Investment	$ 2,245		$ 990
Post-Modification Outstanding Recorded Investment	$ 2,245		$ 990
Real Estate [Member]
Number of Contracts | Integer				1
Pre-Modification Outstanding Recorded Investment				$ 67
Post-Modification Outstanding Recorded Investment				$ 67
Consumer [Member]
Number of Contracts | Integer	14	1	2
Pre-Modification Outstanding Recorded Investment	$ 199	$ 18	$ 14
Post-Modification Outstanding Recorded Investment	$ 199	$ 18	$ 14

9. Accumulated Other Comprehe_3

9. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Unrealized Securities Gains (Losses) [Member]
Beginning balance	$ (20)	$ 6
Change in unrealized securities gains (losses), net of tax	(131)	(1)
Change in unfunded pension liability, net of tax	0	0
Ending balance	(151)	5
Adjustments Related to Pension Plan [Member]
Beginning balance	(4,122)	(3,171)
Change in unrealized securities gains (losses), net of tax	0	0
Change in unfunded pension liability, net of tax	0	0
Ending balance	(4,122)	(3,171)
Accumulated Other comprehensive Income (Loss) [Member]
Beginning balance	(4,142)	(3,165)
Change in unrealized securities gains (losses), net of tax	(131)	(1)
Change in unfunded pension liability, net of tax	0	0
Ending balance	$ (4,273)	$ (3,166)

10. Business Segments (Details)

10. Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	[1]
Interest Income	$ 9,328	$ 8,688	$ 27,033	$ 24,954
Service charges on deposits	378	359	1,102	1,010
Investment services and insurance income	239	169	659	530
Mortgage banking income, net	529	783	1,664	1,763
Title insurance income	404	325	966	879
Gain on prepayment of long-term debt			0	(504)
Expenses:
Interest Expense	1,304	1,030	3,398	2,861
Provision for loan losses	450	0	2,480	0
Income tax expense	252	946	790	2,633
Net income (loss)	2,500	2,598	6,165	7,274
Total Assets	775,605		775,605		$ 753,270
Goodwill	2,956		2,956		$ 2,881
F&M Bank Member
Interest Income	9,295	8,643	26,915	24,815
Service charges on deposits	378	359	1,102	1,010
Investment services and insurance income	0	0	0	1
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Gain on prepayment of long-term debt				504
Loss on investments				0
Other operating income	646	509	1,489	1,296
Total income	10,319	9,511	29,506	27,626
Expenses:
Interest Expense	1,305	1,030	3,403	2,866
Provision for loan losses	450	0	2,480	0
Salary and benefit expense	3,312	3,048	9,877	9,026
Other operating expenses	2,617	2,203	7,111	6,421
Total expense	7,684	6,281	22,871	18,313
Net income (loss) before taxes	2,635	3,230	6,635	9,313
Income tax expense	312	933	597	2,603
Net income (loss)	2,323	2,297	6,038	6,710
Net (income)/loss attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	2,323	2,297	6,038	6,710
Total Assets	777,401	750,048	777,401	750,048
Goodwill	2,670	2,670	2,670	2,670
F&M Mortgage
Interest Income	31	32	101	97
Service charges on deposits	0	0	0	0
Investment services and insurance income	0	0	0	0
Mortgage banking income, net	529	783	1,664	1,763
Title insurance income	123	78	232	211
Gain on prepayment of long-term debt				0
Loss on investments				(40)
Other operating income	(49)	0	(1)	0
Total income	634	893	1,996	2,031
Expenses:
Interest Expense	34	24	87	65
Provision for loan losses	0	0	0	0
Salary and benefit expense	574	587	1,404	1,203
Other operating expenses	82	121	538	591
Total expense	690	732	2,029	1,859
Net income (loss) before taxes	(56)	161	(33)	172
Income tax expense	0	0	0	0
Net income (loss)	(56)	161	(33)	172
Net (income)/loss attributable to noncontrolling interest	(15)	48	(10)	51
Net income attributable to F & M Bank Corp.	(41)	113	(23)	121
Total Assets	7,103	6,309	7,103	6,309
Goodwill	65	103	65	103
TEB Life/FMFS
Interest Income	37	37	109	112
Service charges on deposits	0	0	0	0
Investment services and insurance income	242	169	673	529
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Gain on prepayment of long-term debt				0
Loss on investments				(2)
Other operating income	0	0	0	0
Total income	279	206	782	639
Expenses:
Interest Expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary and benefit expense	154	107	437	341
Other operating expenses	16	6	45	23
Total expense	170	113	482	364
Net income (loss) before taxes	109	93	300	275
Income tax expense	16	30	52	83
Net income (loss)	93	63	248	192
Net (income)/loss attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	93	63	248	192
Total Assets	6,954	6,644	6,954	6,644
Goodwill	0	0	0	0
VS Title
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	281	247	734	668
Gain on prepayment of long-term debt				0
Loss on investments				0
Other operating income	0	0	0	0
Total income	281	247	734	668
Expenses:
Interest Expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary and benefit expense	172	141	517	399
Other operating expenses	39	46	128	118
Total expense	211	187	645	517
Net income (loss) before taxes	70	60	89	151
Income tax expense	0	0	0	0
Net income (loss)	70	60	89	151
Net (income)/loss attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	70	60	89	151
Total Assets	720	443	720	443
Goodwill	57	0	57	0
Parent Only
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	0	0
Gain on prepayment of long-term debt				0
Loss on investments				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 and benefit expense	0	0	0	0
Other operating expenses	6	0	36	4
Total expense	6	0	36	4
Net income (loss) before taxes	(6)	0	(36)	(4)
Income tax expense	(76)	(17)	141	(53)
Net income (loss)	70	17	(177)	49
Net (income)/loss attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	70	17	(177)	49
Total Assets	92,372	91,362	92,372	91,362
Goodwill	164	340	164	340
Eliminations
Interest Income	(35)	(24)	(92)	(70)
Service charges on deposits	0	0	0	0
Investment services and insurance income	(3)	0	(14)	0
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Gain on prepayment of long-term debt				0
Loss on investments				0
Other operating income	0	0	0	0
Total income	(38)	(24)	(106)	(70)
Expenses:
Interest Expense	(35)	(24)	(92)	(70)
Provision for loan losses	0	0	0	0
Salary and benefit expense	0	0	0	0
Other operating expenses	(3)	0	(14)	0
Total expense	(38)	(24)	(106)	(70)
Net income (loss) before taxes	0	0	0	0
Income tax expense	0	0	0	0
Net income (loss)	0	0	0	0
Net (income)/loss attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	0	0	0	0
Total Assets	(108,945)	(91,121)	(108,945)	(91,121)
Goodwill	0	0	0	0
F&M Bank Corp Consolidated
Interest Income	9,328	8,688	27,033	24,954
Service charges on deposits	378	359	1,102	1,010
Investment services and insurance income	239	169	659	530
Mortgage banking income, net	529	783	1,664	1,763
Title insurance income	404	325	966	879
Gain on prepayment of long-term debt				504
Loss on investments				(42)
Other operating income	597	509	1,488	1,296
Total income	11,475	10,833	32,912	30,894
Expenses:
Interest Expense	1,304	1,030	3,398	2,861
Provision for loan losses	450	0	2,480	0
Salary and benefit expense	4,212	3,883	12,235	10,969
Other operating expenses	2,757	2,376	7,844	7,157
Total expense	8,723	7,289	25,957	20,987
Net income (loss) before taxes	2,752	3,544	6,955	9,907
Income tax expense	252	946	790	2,633
Net income (loss)	2,500	2,598	6,165	7,274
Net (income)/loss attributable to noncontrolling interest	(15)	48	(10)	51
Net income attributable to F & M Bank Corp.	2,515	2,550	6,175	7,223
Total Assets	775,605	763,685	775,605	763,685
Goodwill	$ 2,956	$ 3,113	$ 2,956	$ 3,113
[1]	2017 Derived from audited consolidated financial statements.

11. Debt (Details Narrative)

11. Debt (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Debt Details Narrative Abstract
Short term debt	$ 30,000		$ 25,296	[1]
Weighted average interest rate	1.87%		1.86%
Debt obligations	$ 46,232		$ 49,554
Gain on prepayment	0	$ (504)
Note payable balance	$ 85		$ 170
[1]	2017 Derived from audited consolidated financial statements.

12. Revenue Recognition (Detail

12. Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Total noninterest income	$ 2,147	$ 2,145	$ 5,879	$ 5,940
Service Charges on Deposits
Total noninterest income	378	359	1,102	1,010
Investment Services and Insurance Income
Total noninterest income	239	169	659	530
Title Insurance Income
Total noninterest income	404	247	966	668
ATM and check card fees
Total noninterest income	395	353	1,130	1,034
Other
Total noninterest income	142	129	390	368
Noninterest Income (in-scope of Topic 606)
Total noninterest income	1,556	1,257	4,247	3,610
Noninterest Income (out-of-scope of Topic 606)
Total noninterest income	$ 591	$ 888	$ 1,632	$ 2,330