F & M Bank (FMBM) 10-Q 8 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Aug. 06, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types
Entity Registrant Name	F&M BANK CORP
Entity Central Index Key	0000740806
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding			3,173,741
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
[custom:GainOnSaleOfLoansHeldForSale]	$ 1,326	$ 1,105

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 8,049	$ 9,522
Money market funds	794	1,390
Federal funds sold	5,937	0
Cash and cash equivalents	14,780	10,912
Securities:
Held to maturity - fair value of $124 and $123 in 2019 and 2018, respectively	124	123
Available for sale	8,354	8,289
Other investments	15,047	13,432
Loans held for sale	78,406	55,910
Loans held for investment	636,407	638,799
Less: allowance for loan losses	(6,050)	(5,240)
Net loans held for investment	630,357	633,559
Other real estate owned, net	1,969	2,443
Bank premises and equipment, net	18,581	17,766
Interest receivable	2,147	2,078
Goodwill	2,884	2,884
Bank owned life insurance	19,753	19,464
Other assets	14,547	13,393
Total assets	806,949	780,253
Deposits:
Noninterest bearing	162,917	157,146
Interest bearing	445,553	434,179
Total deposits	608,470	591,325
Short-term debt	40,000	40,116
Accrued liabilities	18,487	16,683
Long-term debt	47,917	40,218
Total liabilities	714,874	688,342
Stockholders' Equity
Preferred Stock $25 par value, 400,000 shares authorized, 246,660 and 249,860 issued and outstanding for June 30, 2019 and December 31, 2018, respectively	5,592	5,672
Common stock, $5 par value, 6,000,000 shares authorized, 3,181,465 and 3,213,132 shares issued and outstanding for June 30, 2019 and December 31, 2018, respectively.	15,907	16,066
Additional paid in capital - common stock	7,127	7,987
Retained earnings	66,741	65,596
Noncontrolling interest in consolidated subsidiaries	588	559
Accumulated other comprehensive loss	(3,880)	(3,969)
Total stockholders' equity	92,075	91,911
Total liabilities and stockholders' equity	$ 806,949	$ 780,253

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Held to maturity - fair value	$ 124	$ 123
STOCKHOLDERS EQUITY:
Preferred Stock, par value	$ 25	$ 25
Preferred Stock shares authorized	400,000	400,000
Preferred Stock shares issued	246,660	249,860
Preferred Stock shares outstanding	246,660	249,860
Common stock, par value	$ 5	$ 5
Common stock shares authorized	6,000,000	6,000,000
Common stock shares issued	3,181,465	3,213,132
Common stock shares outstanding	3,181,465	3,213,132

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest and Dividend income
Interest and fees on loans held for investment	$ 9,107	$ 8,529	$ 18,194	$ 17,010
Interest and fees on loans held for sale	497	308	823	458
Interest from money market funds and federal funds sold	40	5	53	25
Interest on debt securities - taxable	138	120	243	212
Total interest and dividend income	9,782	8,962	19,313	17,705
Interest expense
Total interest on deposits	1,258	766	2,359	1,505
Interest from short-term debt	216	126	419	136
Interest from long-term debt	252	223	446	453
Total interest expense	1,726	1,115	3,224	2,094
Net interest income	8,056	7,847	16,089	15,611
Provision for loan losses	1,600	1,350	3,050	2,030
Net interest income after provision for loan losses	6,456	6,497	13,039	13,581
Noninterest income
Service charges on deposit accounts	417	358	803	724
Investment services and insurance income	171	223	322	420
Mortgage banking income, net	815	615	1,345	1,135
Title insurance income	406	306	682	562
Income on bank owned life insurance	149	112	296	222
Low income housing partnership losses	(213)	(192)	(427)	(384)
ATM and check card fees	529	388	898	735
Other operating income	201	189	346	318
Total noninterest income	2,475	1,999	4,265	3,732
Noninterest expense
Salaries	2,633	3,047	5,466	6,147
Employee benefits	1,444	953	2,634	1,876
Occupancy expense	291	286	571	537
Equipment expense	294	259	563	517
FDIC insurance assessment	84	48	166	96
Other real estate owned, net	25	17	299	2
Marketing expense	139	129	287	231
Legal and professional fees	196	95	350	199
ATM and check card fees	213	195	406	356
Telecommunication and data processing expense	426	417	788	751
Directors fees	102	114	204	228
Bank franchise tax	152	146	283	312
Other operating expenses	1,093	927	2,105	1,858
Total noninterest expense	7,092	6,633	14,122	13,110
Income before income taxes	1,839	1,863	3,182	4,203
Income tax expense	153	159	232	538
Net income	1,686	1,704	2,950	3,665
Net income attributable to noncontrolling interest	51	16	29	5
Net income attributable to F & M Bank Corp.	1,635	1,688	2,921	3,660
Dividends paid/accumulated on preferred stock	79	104	157	207
Net income available to common stockholders	$ 1,556	$ 1,584	$ 2,764	$ 3,453
Per Common Share Data
Net income - basic	$ 0.49	$ 0.49	$ 0.86	$ 1.06
Net income - diluted	0.47	0.47	0.84	1.01
Cash dividends on common stock	$ 0.25	$ 0.25	$ .50	$ .70
Weighted average shares outstanding - basic	3,200,119	3,250,749	3,200,119	3,253,007
Weighted average shares outstanding - diluted	3,447,148	3,609,812	3,474,569	3,612,601

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Other Comprehensive Income [Abstract]
Net income	$ 1,635	$ 1,688	$ 2,921	$ 3,660
Other comprehensive (loss):
Unrealized holding (losses) on available-for-sale securities	80	(22)	113	(168)
Tax effect	(17)	4	(24)	35
Unrealized holding gains (losses), net of tax	63	(18)	89	(133)
Total other comprehensive income (loss)	63	(18)	89	(133)
Total comprehensive income	1,698	1,670	3,010	3,527
Comprehensive income attributable to noncontrolling interests	51	16	29	5
Comprehensive income attributable to F&M Bank Corp.	$ 1,749	$ 1,686	$ 3,039	$ 3,532

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid in Capital	Retained Earnings	Noncontrolling Interest	Accumulated Other Comprehensive Loss	Total
Beginning balance at Dec. 31, 2017	$ 7,529	$ 16,275	$ 10,225	$ 60,814	$ 574	$ (4,142)	$ 91,275
Net income				3,660	5		3,665
Other comprehensive loss						(133)	(133)
Distributions to noncontrolling interest					(25)		(25)
Dividends on preferred stock				(207)			(207)
Dividends on common stock				(2,278)			(2,278)
Common stock repurchased		(85)	(539)				(624)
Common stock issued		22	132				154
Preferred stock repurchased	(41)		(22)				(63)
Ending balance at Jun. 30, 2018	7,488	16,212	9,796	61,989	554	(4,275)	91,764
Beginning balance at Mar. 31, 2018	7,529	16,279	10,249	61,323	538	(4,257)	91,661
Net income				1,688	16		1,704
Other comprehensive loss						(18)	(18)
Dividends on preferred stock				(207)			(207)
Dividends on common stock				(814)			(814)
Common stock repurchased		(74)	(477)				(551)
Common stock issued		7	46				53
Preferred stock repurchased	(41)		(22)				(63)
Ending balance at Jun. 30, 2018	7,488	16,212	9,796	61,989	554	(4,275)	91,764
Beginning balance at Dec. 31, 2018	5,672	16,066	7,987	65,596	559	(3,969)	91,911
Net income				2,921	29		2,950
Other comprehensive loss						89	89
Distributions to noncontrolling interest							0
Dividends on preferred stock				(157)			(157)
Dividends on common stock				(1,619)			(1,619)
Preferred converted to common	(50)	11	39				0
Common stock repurchased		(190)	(997)				(1,187)
Common stock issued		20	109				129
Preferred stock repurchased	(30)		(11)				(41)
Ending balance at Jun. 30, 2019	5,592	15,907	7,127	66,741	588	(3,880)	92,075
Beginning balance at Mar. 31, 2019	5,592	16,019	7,707	66,063	537	(3,943)	91,975
Net income				1,635	51		1,686
Other comprehensive loss						63	63
Dividends on preferred stock				(158)			(158)
Dividends on common stock				(799)			(799)
Common stock repurchased		(124)	(642)				(766)
Common stock issued		12	62				74
Ending balance at Jun. 30, 2019	$ 5,592	$ 15,907	$ 7,127	$ 66,741	$ 588	$ (3,880)	$ 92,075

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 2,921	$ 3,660
Reconcile net income to net cash provided by operating activities:
Depreciation	603	563
Amortization of intangibles	41	33
Amortization of securities	1	3
Proceeds from loans held for sale originated	55,011	22,918
Loans held for sale originated	(53,685)	(21,813)
(Gain) on sale of loans held for sale originated	(1,326)	(1,105)
Provision for loan losses	3,050	2,030
Increase in interest receivable	(69)	24
Increase in other assets	(752)	(566)
Increase (decrease) in accrued liabilities	1,372	(1,317)
Amortization of limited partnership investments	427	384
Income from life insurance investment	(296)	(222)
Loss (gain) on the sale of fixed assets	10	(9)
Loss (gain) on sale and valuation adjustments for other real estate owned	274	(30)
Net cash provided by operating activities	7,582	4,553
Cash flows from investing activities
Purchase of investments available for sale and other investments	(2,054)	(3,361)
Purchase of title insurance company	0	(75)
Proceeds from maturity of investments available for sale	59	20,893
Net decrease (increase) in loans held for investment	92	(18,137)
Net increase in loans held for sale participations	(22,496)	(10,046)
Purchase of bank owned life insurance	0	(5,000)
Proceeds from the sale of fixed assets	0	9
Proceeds from the sale of other real estate owned	260	0
Net purchase of property and equipment	(1,428)	(2,156)
Net cash used in investing activities	(25,567)	(17,873)
Cash flows from financing activities
Net change in deposits	17,145	(611)
Net change in short-term debt	(116)	20,704
Dividends paid in cash	(1,776)	(2,485)
Proceeds from issuance of common stock	129	154
Repurchase of preferred stock	(41)	(63)
Repurchase of common stock	(1,187)	(624)
Issuance of long-term debt	10,000	0
Repayments of long-term debt	(2,301)	(2,298)
Net cash provided by financing activities	21,853	14,777
Net increase in cash and cash equivalents	3,868	1,457
Cash and cash equivalents, beginning of period	10,912	11,907
Cash and cash equivalents, end of period	14,780	13,364
Cash paid for:
Interest	3,201	2,087
Taxes	0	1,357
Supplemental non-cash disclosures:
Transfer from loans to other real estate owned	60	20
Change in unrealized gain (loss) on securities available for sale	113	(168)
Right of use asset and lease liability at adoption	$ 1,034	$ 0

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 (the “2018 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). 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 Six months ended For the Three months ended For the Six months ended For the Three months ended June 30, 2019 June 30, 2019 June 30, 2018 June 30, 2018 Earnings available to common stockholders: Net income $ 2,950 $ 1,686 $ 3,665 $ 1,704 Non-controlling interest income 29 51 5 16 Preferred stock dividends 157 79 207 104 Net income available to common stockholders $ 2,764 $ 1,556 $ 3,453 $ 1,584 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended June 30, 2019 Six months ended June 30, 2018 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,764 3,200,119 $ .86 $ 3,453 3,253,007 $ 1.06 Effect of Dilutive Securities: Convertible Preferred Stock 157 274,450 (.02 ) 207 359,594 (.05 ) Diluted EPS $ 2,921 3,474,569 $ .84 $ 3,660 3,612,601 $ 1.01 Three months ended June 30, 2019 Three months ended June 30, 2018 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 1,556 3,200,119 $ .49 $ 1,584 3,250,749 $ .49 Effect of Dilutive Securities: Convertible Preferred Stock 79 247,029 (.02 ) 104 359,063 (.02 ) Diluted EPS $ 1,635 3,447,148 $ .47 $ 1,688 3,609,812 $ .47

2. Investment Securities

2. Investment Securities	6 Months Ended
	Jun. 30, 2019
Fair Value Measurements Tables
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 June 30, 2019 and December 31, 2018 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2019 U. S. Treasuries $ 124 $ - $ - $ 124 December 31, 2018 U. S. Treasuries $ 123 $ - $ - $ 123 The amortized cost and fair value of securities available for sale are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2019 U. S. Government sponsored enterprises $ 7,999 $ 2 $ 11 $ 7,990 Mortgage-backed obligations of federal agencies 361 3 - 364 Total Securities Available for Sale $ 8,360 $ 5 $ 11 $ 8,354 December 31, 2018 U.S. Government sponsored enterprises $ 7,999 $ - $ 113 $ 7,886 Mortgage-backed obligations of federal agencies 409 - 6 403 Total Securities Available for Sale $ 8,408 $ - $ 119 $ 8,289 The amortized cost and fair value of securities at June 30, 2019, 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 $ 124 $ 124 $ 1,995 $ 1,995 Due after one year through five years - - 6,005 5,995 Due after five years - - 360 364 Total $ 124 $ 124 $ 8,360 $ 8,354 There were no sales of available for sale securities in the first or second quarters of 2019 or 2018. The securities held are U.S. Agency and Government Sponsored Entities and Agency MBS which carry an implicit government guarantee. There were no securities with other than temporary impairment. A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of June 30, 2019 and December 31, 2018 were as follows: Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2019 U. S. Government sponsored enterprises (Three securities) $ - $ - $ 5,998 $ (11 ) $ 5,998 $ (11 ) Total $ - $ - $ 5,998 $ (11 ) $ 5,998 $ (11 ) Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018 U. S. Government sponsored enterprises (Four securities) $ - $ - $ 7,886 $ (113 ) $ 7,886 $ (113 ) Mortgage-backed obligations of federal agencies (One security) - - 403 (6 ) 403 (6 ) Total $ - $ - $ 8,289 $ (119 ) $ 8,289 $ (119 ) Other investments consist of investments in twenty low-income housing and historic equity partnerships (carrying basis of $9,000), stock in the Federal Home Loan Bank (carrying basis $4,443 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 June 30, 2019. At June 30, 2019, the Company was committed to invest an additional $3,988 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.

3. Loans

3. Loans	6 Months Ended
	Jun. 30, 2019
Loans and Leases Receivable Disclosure [Abstract]
Loans	(dollars in thousands) 2019 2018 Construction/Land Development $ 66,959 $ 61,659 Farmland 25,608 17,030 Real Estate 182,838 192,278 Multi-Family 9,247 9,665 Commercial Real Estate 140,967 147,342 Home Equity – closed end 9,024 11,039 Home Equity – open end 50,326 53,197 Commercial & Industrial – Non-Real Estate 34,356 36,021 Consumer 10,181 9,861 Dealer Finance 103,922 97,523 Credit Cards 2,979 3,184 Total $ 636,407 $ 638,799 Loans held for investment outstanding at June 30, 2019 and December 31, 2018 are summarized as follows: The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $189,972 and $186,673 as of June 30, 2019 and December 31, 2018, respectively. The Company maintains a blanket lien on its entire residential real estate portfolio and certain commercial and home equity loans. June 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 1,977 $ 1,977 $ - $ 2,414 $ 2,414 $ - Farmland 1,943 1,943 - 1,941 1,941 - Real Estate 2,109 2,109 - 1,932 1,932 - Multi-Family - - - - - - Commercial Real Estate 1,977 1,977 - 6,176 6,176 - Home Equity – closed end 720 720 - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate 23 23 - - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 33 33 - 32 32 - 8,782 8,782 - 12,495 12,495 Impaired loans with a valuation allowance Construction/Land Development 2,580 4,166 573 4,311 4,871 1,627 Farmland - - - - - - Real Estate 416 416 8 422 422 7 Multi-Family - - - - - - Commercial Real Estate 4,111 4,111 566 - 1,500 - Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer 4 4 1 8 8 2 Credit cards - - - - - - Dealer Finance 193 193 11 194 194 10 7,304 8,890 1,159 4,935 6,995 1,646 Total impaired loans $ 16,086 $ 17,672 $ 1,159 $ 17,430 $ 19,490 $ 1,646 The following is a summary of information pertaining to impaired loans (dollars in thousand): The Recorded Investment is defined as the original principal balance less principal payments, charge-offs and nonaccrual payments applied to principal. Loans held for sale consists of loans originated by 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 June 30, 2019 and December 31, 2018 were $78,406 and $55,910, respectively. The following is a summary of the average investment and interest income recognized for impaired loans (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 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 $ 2,011 $ 84 $ 4,759 $ 45 $ 2,195 $ 123 $ 4,929 $ 79 Farmland 1,942 1 1,984 62 1,942 1 1,984 62 Real Estate 2,013 (7 ) 837 (6 ) 2,020 22 982 11 Multi-Family - - - - - - - - Commercial Real Estate 1,901 189 797 4 4,076 228 2,608 9 Home Equity – closed end 360 - - - 360 - - - Home Equity – open end - - - - - - 116 - Commercial & Industrial – Non-Real Estate 12 - - - - - - - Consumer and credit cards - - - - 12 - 3 - Dealer Finance 45 (1 ) 33 - 33 0 32 1 8,284 266 8,410 105 10,638 374 10,654 162 Impaired loans with a valuation allowance: Construction/Land Development $ 2,651 $ (27 ) $ 7,417 $ 64 $ 3,445 $ 31 $ 6,610 $ 98 Farmland - - - - - - - - Real Estate 417 58 1,283 9 419 65 1,251 27 Multi-Family - - - - - - - - Commercial Real Estate 4,152 (104 ) 5,407 73 2,056 33 3,605 141 Home Equity – closed end - 41 - - - 41 - - Home Equity – open end - - - - - - - - Commercial & Industrial – Non-Real Estate - 2 - - - 1 - - Consumer and credit card 5 - 12 - 6 - 8 1 Dealer Finance 176 5 198 4 194 9 148 8 7,401 (25 ) 14,317 150 6,120 180 11,622 275 Total Impaired Loans $ 15,685 $ 241 $ 22,727 $ 255 $ 16,758 $ 554 $ 22,276 $ 437 The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of June 30, 2019 and December 31, 2018: 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 June 30, 2019 Construction/Land Development $ 799 $ 1,224 $ 899 $ 2,922 $ 64,037 $ 66,959 $ 2,627 $ - Farmland - - 1,942 1,942 23,666 25,608 1,942 - Real Estate 2,094 1,903 1,176 5,173 177,665 182,838 1,523 343 Multi-Family - - - - 9,247 9,247 - - Commercial Real Estate 1,446 4,772 52 6,270 134,697 140,967 4,817 - Home Equity – closed end 3 101 - 104 8,920 9,024 - - Home Equity – open end 574 99 166 839 49,487 50,326 139 27 Commercial & Industrial – Non- Real Estate 197 373 - 570 33,786 34,356 12 - Consumer 96 4 55 155 10,026 10,181 78 - Dealer Finance 1,324 415 162 1,901 102,021 103,922 177 - Credit Cards 167 - - 167 2,812 2,979 - 3 Total $ 6,700 $ 8,891 $ 4,452 $ 20,043 $ 616,364 $ 636,407 $ 11,315 $ 373 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, 2018 Construction/Land Development $ 290 $ - $ 1,767 $ 2,057 $ 59,602 $ 61,659 $ 2,327 $ - Farmland - - - - 17,030 17,030 - - Real Estate 3,074 677 1,729 5,480 186,798 192,278 1,477 726 Multi-Family - - - - 9,665 9,665 - - Commercial Real Estate 479 189 5,073 5,741 141,601 147,342 5,074 - Home Equity – closed end - - 12 12 11,027 11,039 - 12 Home Equity – open end 148 171 320 639 52,558 53,197 269 51 Commercial & Industrial – Non- Real Estate 40 22 80 142 35,879 36,021 98 - Consumer 89 26 3 118 9,743 9,861 5 2 Dealer Finance 2,763 337 96 3,196 94,327 97,523 155 9 Credit Cards 50 11 9 70 3,114 3,184 - - Total $ 6,933 $ 1,433 $ 9,089 $ 17,455 $ 621,344 $ 638,799 $ 9,405 $ 800 At June 30, 2019 and December 31, 2018, other real estate owned included $345 and $375 of foreclosed residential real estate. The Company has $521 of consumer mortgages for which foreclosure is in process at June 30, 2019 and $103 at December 31, 2018. For the six months ended June 30, 2019 and June 30, 3018, nonaccrual loans would have earned approximately $160 and $252, respectively, in interest income had they been accruing loans.

4. Allowance for Loan Losses

4. Allowance for Loan Losses	6 Months Ended
	Jun. 30, 2019
Allowance For Loan Losses
Allowance for Loan Losses	A summary of changes in the allowance for loan losses (dollars in thousands) for June 30, 2019 and December 31, 2018 is as follows: June 30, 2019 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 2,094 $ 1,585 $ - $ 1,334 $ 1,843 $ 573 $ 1,270 Farmland 15 - - 10 25 - 25 Real Estate 292 25 1 8 276 8 268 Multi-Family 10 - - - 10 - 10 Commercial Real Estate 416 - 16 985 1,417 566 851 Home Equity – closed end 13 - - (4 ) 9 - 9 Home Equity – open end 126 30 - (43 ) 53 - 53 Commercial & Industrial – Non-Real Estate 192 126 72 283 421 - 421 Consumer 70 63 29 19 55 - 55 Dealer Finance 1,974 1,088 595 393 1,874 12 1,862 Credit Cards 38 52 16 65 67 - 67 Total $ 5,240 $ 2,969 $ 729 $ 3,050 $ 6,050 $ 1,159 $ 4,891 December 31, 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 $ 489 $ 122 $ (86 ) $ 2,094 $ 1,627 $ 467 Farmland 25 - - (10 ) 15 - 15 Real Estate 719 99 12 (340 ) 292 7 285 Multi-Family 19 - - (9 ) 10 - 10 Commercial Real Estate 482 1,546 1 1,479 416 - 416 Home Equity – closed end 66 3 4 (54 ) 13 - 13 Home Equity – open end 209 - 8 (91 ) 126 - 126 Commercial & Industrial – Non-Real Estate 337 573 91 337 192 - 192 Consumer 148 51 41 (68 ) 70 2 68 Dealer Finance 1,440 2,083 861 1,756 1,974 10 1,964 Credit Cards 52 76 46 16 38 - 38 Total $ 6,044 $ 4,920 $ 1,186 $ 2,930 $ 5,240 $ 1,646 $ 3,594 The following table presents the recorded investment in loans (dollars in thousands) based on impairment method as of June 30, 2019 and December 31, 2018: June 30, 2019 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 66,959 $ 4,557 $ 62,402 Farmland 25,608 1,943 23,665 Real Estate 182,838 2,525 180,313 Multi-Family 9,247 - 9,247 Commercial Real Estate 140,967 6,088 134,879 Home Equity – closed end 9,024 720 8,304 Home Equity –open end 50,326 - 50,326 Commercial & Industrial – Non-Real Estate 34,356 23 34,333 Consumer 10,181 4 10,177 Dealer Finance 103,922 226 103,696 Credit Cards 2,979 - 2,979 Total $ 636,407 $ 16,086 $ 620,321 December 31, 2018 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 61,659 $ 6,725 $ 54,934 Farmland 17,030 1,941 15,089 Real Estate 192,278 2,354 189,924 Multi-Family 9,665 - 9,665 Commercial Real Estate 147,342 6,176 141,166 Home Equity – closed end 11,039 - 11,039 Home Equity –open end 53,197 - 53,197 Commercial & Industrial – Non-Real Estate 36,021 - 36,021 Consumer 9,861 8 9,853 Dealer Finance 97,523 226 97,297 Credit Cards 3,184 - 3,184 $ 638,799 $ 17,430 $ 621,369 Total During the second quarter of 2019, management changed the historical net charge off lookback period from five years to two years for all segments given recent asset quality trends and charge off experience. Management believes the two year lookback period is more indicative of the risk remaining in the loan portfolio. This change and the effect on provision expense for the six months ended June 30, 2019 and the allowance for loan losses at June 30, 2019 was as follows: Calculated Provision Based on Current Methodology Calculated Provision Based on Prior Methodology Difference Construction and Development $ 1,334 $ 715 $ 619 Farmland 10 10 - Real Estate 8 (6 ) 14 Multi-Family - - - Commercial RE 985 531 454 Home Equity - Closed End 4 5 (1 ) Home Equity - Open End 43 110 (67 ) C&I - Non - RE 283 (16 ) 300 Consumer 19 (15 ) 34 Dealer Finance 393 393 - Credit Cards 65 42 23 $ 3,050 $ 1 675 $ 1,375 The following table shows the Company’s loan portfolio broken down by internal loan grade (dollars in thousands) as of June 30, 2019 and December 31, 2018: June 30, 2019 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 $ - $ 453 $ 18,520 $ 35,043 $ 9,076 $ 128 $ 3,739 $ - $ 66,959 Farmland 61 398 6,661 13,084 2,962 500 1,942 - 25,608 Real Estate - 1,683 52,573 98,278 22,537 3,200 4,567 - 182,838 Multi-Family - - 2,585 6,503 159 - - - 9,247 Commercial Real Estate - 2,112 44,155 76,961 12,078 844 4,817 - 140,967 Home Equity – closed end - 152 2,711 4,074 1,984 102 1 - 9,024 Home Equity – open end 9 2,265 18,306 25,843 3,368 199 336 - 50,326 Commercial & Industrial (Non-Real Estate) 163 2,409 16,242 13,207 1,771 503 61 - 34,356 Consumer (excluding dealer) 33 157 3,334 4,778 1,732 53 94 - 10,181 Total $ 266 $ 9,629 $ 165,087 $ 277,771 $ 55,667 $ 5,529 $ 15,557 $ - $ 529,506 Credit Cards Dealer Finance Performing $ 2,979 $ 103,745 Non-performing - 177 Total $ 2,979 $ 103,922 December 31, 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 $ - $ 1,148 $ 15,857 $ 29,301 $ 9,353 $ - $ 6,000 $ - $ 61,659 Farmland 62 - 4,953 6,376 3,205 493 1,941 - 17,030 Real Estate - 1,644 55,429 106,387 22,679 1,531 4,608 - 192,278 Multi-Family - 2,895 6,604 166 - - - 9,665 Commercial Real Estate - 2,437 44,065 81,916 11,564 2,286 5,074 - 147,342 Home Equity – closed end - 31 3,245 5,842 1,909 - 12 - 11,039 Home Equity – open end 60 1,554 19,464 27,347 4,157 223 392 - 53,197 Commercial & Industrial (Non-Real Estate) 193 2,291 17,144 13,254 2,704 337 98 - 36,021 Consumer (excluding dealer) 27 190 2,648 5,192 1,800 - 4 - 9,861 Total $ 342 $ 9,295 $ 165,700 $ 282,219 $ 57,537 $ 4,870 $ 18,129 $ - $ 538,092 Credit Cards Dealer Finance Performing $ 3,175 $ 97,368 Non-performing 9 155 Total $ 3,184 $ 97,523 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	6 Months Ended
	Jun. 30, 2019
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract]
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 2019. The following is a summary of net periodic pension costs for the three and six month periods ended June 30, 2019 and 2018: Six Months Ended Three Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Service cost $ 369 $ 384 $ 184 $ 192 Interest cost 274 248 137 124 Expected return on plan assets (403 ) (462 ) (201 ) (231 ) Amortization of prior service cost (8 ) (8 ) (4 ) (4 ) Amortization of net loss 141 152 71 76 Net periodic pension cost $ 373 $ 314 $ 187 $ 157

6. Fair Value

6. Fair Value	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
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 June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 2019 Total Level 1 Level 2 Level 3 U.S. Government sponsored enterprises $ 7,990 $ - $ 7,990 $ - Mortgage-backed obligations of federal agencies 364 - 364 - Total securities available for sale $ 8,354 $ - $ 8,354 $ - Derivatives (Indexed CD product) $ 67 $ - $ 67 $ - December 31, 2018 Total Level 1 Level 2 Level 3 U. S. Government sponsored enterprises $ 7,886 - $ 7,886 - Mortgage-backed obligations of federal agencies 403 - 403 - Total securities available for sale $ 8,289 $ - $ 8,289 $ - Derivatives (Indexed CD product) $ 44 - $ 44 - 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 June 30, 2019 or December 31, 2018; 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 approximate fair value at June 30, 2019 and December 31, 2018. 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 June 30, 2019 and December 31, 2018, 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): June 30, 2019 Total Level 1 Level 2 Level 3 Construction/Land Development $ 2,007 $ - $ - $ 2,007 Real Estate 408 - - 408 Commercial Real Estate 3,545 - - 3,545 Consumer 3 - - 3 Dealer Finance 182 - - 182 Impaired loans $ 6,145 $ - $ - $ 6,145 December 31, 2018 Total Level 1 Level 2 Level 3 Construction/Land Development $ 2,684 - - $ 2,684 Real Estate 415 - - 415 Consumer 6 6 Dealer Finance 184 - - 184 Impaired loans $ 3,289 - - $ 3,289 The following table presents information about Level 3 Fair Value Measurements for June 30, 2019: Fair Value at June 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 6,145 Discounted appraised value Discount for selling costs and marketability 6%-28% (Average 11.8 %) The following table presents information about Level 3 Fair Value Measurements for December 31, 2018: Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 3,289 Discounted appraised value Discount for selling costs and marketability 2%-9% (Average 4.21 %) 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 June 30, 2019 and December 31, 2018 (dollars in thousands). June 30, 2019 Total Level 1 Level 2 Level 3 Other real estate owned $ 1,969 - - $ 1,969 December 31, 2018 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,443 - - $ 2,443 The following table presents information about Level 3 Fair Value Measurements for June 30, 2019: Fair Value at June 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 1,969 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, 2018: Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,443 Discounted appraised value Discount for selling costs 5%-15% (Average 8%)

7. Disclosures About Fair Value

7. Disclosures About Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2019
Financial Instruments, Owned, at Fair Value [Abstract]
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 June 30, 2019 and December 31, 2018. 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 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 June 30, 2019 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 June 30, 2019 Assets: Cash and cash equivalents $ 14,780 $ 14,780 $ - $ - $ 14,780 Securities 8,478 - 8,478 - 8,478 Loans held for sale 78,406 - 78,406 - 78,406 Loans held for investment, net 630,357 - - 629,467 629,467 Interest receivable 2,147 - 2,147 - 2,147 Bank owned life insurance 19,753 - 19,753 - 19,753 Total $ 753,921 $ 14,780 $ 108,784 $ 629,467 $ 753,031 Liabilities: Deposits $ 608,470 $ - $ 462,504 $ 146,732 $ 609,236 Short-term debt 40,000 - 40,000 - 40,000 Long-term debt 47,917 - - 48,265 48,265 Interest payable 371 - 371 - 371 Total $ 696,758 $ - $ 502,875 $ 194,997 $ 697,872 Fair Value Measurements at December 31, 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 December 31, 2018 Assets: Cash and cash equivalents $ 10,912 $ 10,912 $ - $ - $ 10,912 Securities 8,412 - 8,412 - 8,412 Loans held for sale 55,910 - 55,910 - 55,910 Loans held for investment, net 633,559 - - 613,717 613,717 Interest receivable 2,078 - 2,078 - 2,078 Bank owned life insurance 19,464 - 19,464 - 19,464 Total $ 730,335 $ 10,912 $ 85,864 $ 613,717 $ 710,493 Liabilities: Deposits $ 591,325 $ - $ 441,319 $ 153,848 $ 595,167 Short-term debt 40,116 - 40,116 - 40,116 Long-term debt 40,218 - - 39,609 39,609 Interest payable 348 - 348 - 348 Total $ 672,007 $ - $ 481,783 $ 193,457 $ 675,240

8. Troubled Debt Restructuring

8. Troubled Debt Restructuring	6 Months Ended
	Jun. 30, 2019
Troubled Debt Restructuring Abstract
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 six months ended June 30, 2019, there were nine loan modifications that were considered to be troubled debt restructurings. Seven of these loans were modified during the three months ended June 30, 2019 and two loan modifications that would be considered a troubled debt restructuring were modified during the first quarter of 2019. 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. Six months ended June 30, 2019 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 1 $ 182 $ 182 Real Estate 1 193 193 Home Equity 1 720 720 Commercial and Industrial 1 23 23 Consumer 5 35 35 Total 9 $ 1,153 $ 1,153 At June 30, 2019, there were no 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. During the six months ended June 30, 2018, there were sixteen loan modifications that were considered to be troubled debt restructurings. Six of these loans were modified during the three months ended June 30, 2018 and ten loan modifications that would be considered a troubled debt restructuring were modified during the first quarter of 2018. Six months ended June 30, 2018 (dollars in thousands) Number of Pre-Modification Outstanding Recorded Post-Modification Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial Real Estate 1 $ 1,002 $ 1,002 Real Estate 2 1,255 1,255 Consumer 13 196 196 Total 16 $ 2,453 $ 2,453 At June 30, 2018, there were no 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.

9. Accumulated Other Comprehens

9. Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	The balances in accumulated other comprehensive loss are shown in the following tables for June 30, 2019 and 2018: (dollars in thousands) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2018 $ (94 ) $ (3,875 ) $ (3,969 ) Change in unrealized securities gains (losses), net of tax 89 - 89 Balance at June 30, 2019 $ (5 ) $ (3,875 ) $ (3,880 ) (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 (133 ) - (133 ) Balance at June 30, 2018 $ (153 ) $ (4,122 ) $ (4,275 ) There were no reclassifications adjustments reported on the consolidated statements of income during the three or six months ended June 30, 2019 or 2018.

10. Business Segments

10. Business Segments	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
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 six months ended June 30, 2019 and June 30, 2018. Six Months Ended June 30, 2019 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 19,254 $ 68 $ 75 $ - $ - $ (84 ) $ 19,313 Service charges on deposits 803 - - - - - 803 Investment services and insurance income - - 325 - - (3 ) 322 Mortgage banking income, net - 1,345 - - - - 1,345 Title insurance income - - - 682 - - 682 Other operating income (loss) 1,110 28 - - (24 ) (1 ) 1,113 Total income (loss) 21,167 1,441 400 682 (24 ) (88 ) 23,578 Expenses: Interest Expense 3,233 75 - - - (84 ) 3,224 Provision for loan losses 3,050 - - - - - 3,050 Salary and benefit expense 6,576 917 150 457 - - 8,100 Other operating expenses 5,489 354 28 124 31 (4 ) 6,022 Total expense 18,348 1,346 178 581 31 (88 ) 20,396 Net income (loss) before taxes 2,819 95 222 101 (55 ) - 3,182 Income tax expense 158 - 33 - 41 - 232 Net income (loss) $ 2,661 $ 95 $ 189 $ 101 $ (96 ) $ - $ 2,950 Net income attributable to non-controlling interest - 29 - 24 (24 ) - 29 Net Income attributable to F & M Bank Corp. $ 2,661 $ 66 $ 189 $ 77 $ (72 ) $ - $ 2,921 Total Assets $ 809,712 $ 11,210 $ 7,332 $ 1,615 $ 91,674 $ (114,594 ) $ 806,949 Goodwill $ 2,670 $ 47 $ - $ 3 $ 164 $ - $ 2,884 Three months ended June 30, 2019 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,754 $ 43 $ 41 $ - $ - $ (56 ) $ 9,782 Service charges on deposits 417 - - - - - 417 Investment services and insurance income - - 174 - - (3 ) 171 Mortgage banking income, net - 815 - - - - 815 Title insurance income - - - 406 - - 406 Other operating income (loss) 665 28 - - (27 ) - 666 Total income (loss) 10,836 886 215 406 (27 ) (59 ) 12,257 Expenses: Interest Expense 1,732 50 - - - (56 ) 1,726 Provision for loan losses 1,600 - - - - - 1,600 Salary and benefit expense 3,285 489 69 234 - - 4,077 Other operating expenses 2,739 177 16 62 24 (3 ) 3,015 Total expense 9,356 716 85 296 24 (59 ) 10,418 Net income (loss) before taxes 1,480 170 130 110 (51 ) - 1,839 Income tax expense 112 - 19 - 22 - 153 Net income (loss) $ 1,368 $ 170 $ 111 $ 110 $ (73 ) $ - $ 1,686 Net income attributable to non-controlling interest - 51 - 27 (27 ) - 51 Net Income attributable to F & M Bank Corp. $ 1,368 $ 119 $ 111 $ 83 $ (46 ) $ - $ 1,635 Six Months Ended June 30, 2018 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 17,620 $ 71 $ 71 $ - $ - $ (57 ) $ 17,705 Service charges on deposits 724 - - - - - 724 Investment services and insurance income - - 431 - - (11 ) 420 Mortgage banking income, net - 1,135 - - - - 1,135 Title insurance income - 109 - 453 - - 562 Other operating income 843 48 - - - - 891 Total income (loss) 19,187 1,363 502 453 - (68 ) 21,437 Expenses: Interest Expense 2,097 54 - - - (57 ) 2,094 Provision for loan losses 2,030 - - - - - 2,030 Salary and benefit expense 6,564 831 283 345 - - 8,023 Other operating expenses 4,496 456 28 89 29 (11 ) 5,087 Total expense 15,187 1,341 311 434 29 (68 ) 17,234 Net income (loss) before taxes 4,000 22 191 19 (29 ) - 4,203 Income tax expense 284 - 36 - 218 - 538 Net income (loss) $ 3,716 $ 22 $ 155 $ 19 $ (247 ) $ - $ 3,665 Net income attributable to non-controlling interest - 5 - - - - 5 Net Income attributable to F & M Bank Corp. $ 3,716 $ 17 $ 155 $ 19 $ (247 ) $ - $ 3,660 Total Assets $ 772,244 $ 8,332 $ 6,910 $ 707 $ 91,480 $ (109,005 ) $ 770,668 Goodwill $ 2,670 $ 65 $ - $ 57 $ 164 $ - $ 2,956 Three Months Ended June 30, 2018 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,916 $ 42 $ 36 $ - $ - $ (32 ) $ 8,962 Service charges on deposits 358 - - - - - 358 Investment services and insurance income - - 228 - - (5 ) 223 Mortgage banking income, net - 615 - - - - 615 Title insurance income - 47 - 259 - - 306 Other operating income 450 47 - - - - 497 Total income (loss) 9,724 751 264 259 - (37 ) 10,961 Expenses: Interest Expense 1,116 31 - - - (32 ) 1,115 Provision for loan losses 1,350 - - - - - 1,350 Salary and benefit expense 3,268 416 137 179 - - 4,000 Other operating expenses 2,317 246 18 42 15 (5 ) 2,633 Total expense 8,051 693 155 221 15 (37 ) 9,098 Net income (loss) before taxes 1,673 58 109 38 (15 ) - 1,863 Income tax expense 144 - 21 - (6 ) - 159 Net income (loss) $ 1,529 $ 58 $ 88 $ 38 $ (9 ) $ - $ 1,704 Net income attributable to non-controlling interest - 16 - - - - 16 Net Income attributable to F & M Bank Corp. $ 1,529 $ 42 $ 88 $ 38 $ (9 ) $ - $ 1,688

11. Debt

11. Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
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 $40 million at June 30, 2019 and has decreased slightly from $40.1 million at December 31, 2018. Deposit growth has allowed the Company to fund increases in Loans Held for Sale without increasing FHLB short term debt. 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 2.08% and 1.96 at June 30, 2019 and December 31, 2018, respectively. The balance of these obligations at June 30, 2019 and December 31, 2018 were $47,911 and $40,125 respectively. The Company borrowed an additional $10,000 during second quarter of 2019, there were no additional borrowings in 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 had a note payable to purchase a lot adjacent to one of the Bank branches for $85 at June 30, 2018 that was paid on January 1, 2019. There was $85 outstanding on this note at December 31, 2018. VS Title, LLC has a note payable for vehicle purchases with a balance of $6 at June 30, 2019.

12. Revenue Recognition

12. Revenue Recognition	6 Months Ended
	Jun. 30, 2019
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 six months ended June 30, 2019 and 2018. Six Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 Noninterest Income (in thousands) In-scope of Topic 606: Service Charges on Deposits $ 803 $ 724 $ 417 $ 358 Investment Services and Insurance Income 322 420 171 223 Title Insurance Income 682 562 406 306 ATM and check card fees 898 735 529 388 Other 281 250 153 135 Noninterest Income (in-scope of Topic 606) 2,986 2,691 1,676 1,409 Noninterest Income (out-of-scope of Topic 606) 1,279 1,041 799 590 Total Noninterest Income $ 4,265 $ 3,732 $ 2,475 $ 1,999 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 June 30, 2019 and December 31, 2018, 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.

13. Leases

13. Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of each lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases: (Dollars in thousands) June 30, 2019 Lease liabilities $ 974 Right-of-use assets $ 1,005 Weighted average remaining lease term 8.01 years Weighted average discount rate 3.51 % For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Lease cost Operating lease cost $ 32 $ 64 Total lease cost $ 32 $ 64 Cash paid for amounts included in the measurement of lease liabilities $ 38 $ 75 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: Lease payments due As of June 30, 2019 Six months ending December 31, 2019 $ 79 Twelve months ending December 31, 2020 128 Twelve months ending December 31, 2021 110 Twelve months ending December 31, 2022 105 Twelve months ending December 31, 2023 93 Twelve months ending December 31, 2024 92 Thereafter 627 Total undiscounted cash flows $ 1,234 Discount (260 ) Lease liabilities $ 974

1. Summary of Significant Acc_2

1. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 (the “2018 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).
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 Six months ended For the Three months ended For the Six months ended For the Three months ended June 30, 2019 June 30, 2019 June 30, 2018 June 30, 2018 Earnings available to common stockholders: Net income $ 2,950 $ 1,686 $ 3,665 $ 1,704 Non-controlling interest income 29 51 5 16 Preferred stock dividends 157 79 207 104 Net income available to common stockholders $ 2,764 $ 1,556 $ 3,453 $ 1,584 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended June 30, 2019 Six months ended June 30, 2018 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,764 3,200,119 $ .86 $ 3,453 3,253,007 $ 1.06 Effect of Dilutive Securities: Convertible Preferred Stock 157 274,450 (.02 ) 207 359,594 (.05 ) Diluted EPS $ 2,921 3,474,569 $ .84 $ 3,660 3,612,601 $ 1.01 Three months ended June 30, 2019 Three months ended June 30, 2018 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 1,556 3,200,119 $ .49 $ 1,584 3,250,749 $ .49 Effect of Dilutive Securities: Convertible Preferred Stock 79 247,029 (.02 ) 104 359,063 (.02 ) Diluted EPS $ 1,635 3,447,148 $ .47 $ 1,688 3,609,812 $ .47

1. Summary of Significant Acc_3

1. Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Schedule of earnings per share	(dollars in thousands) For the Six months ended For the Three months ended For the Six months ended For the Three months ended June 30, 2019 June 30, 2019 June 30, 2018 June 30, 2018 Earnings available to common stockholders: Net income $ 2,950 $ 1,686 $ 3,665 $ 1,704 Non-controlling interest income 29 51 5 16 Preferred stock dividends 157 79 207 104 Net income available to common stockholders $ 2,764 $ 1,556 $ 3,453 $ 1,584 Six months ended June 30, 2019 Six months ended June 30, 2018 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,764 3,200,119 $ .86 $ 3,453 3,253,007 $ 1.06 Effect of Dilutive Securities: Convertible Preferred Stock 157 274,450 (.02 ) 207 359,594 (.05 ) Diluted EPS $ 2,921 3,474,569 $ .84 $ 3,660 3,612,601 $ 1.01 Three months ended June 30, 2019 Three months ended June 30, 2018 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 1,556 3,200,119 $ .49 $ 1,584 3,250,749 $ .49 Effect of Dilutive Securities: Convertible Preferred Stock 79 247,029 (.02 ) 104 359,063 (.02 ) Diluted EPS $ 1,635 3,447,148 $ .47 $ 1,688 3,609,812 $ .47

2. Investment Securities (Table

2. Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Measurements Tables
Schedule of amortized cost and fair value for securities	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2019 U. S. Treasuries $ 124 $ - $ - $ 124 December 31, 2018 U. S. Treasuries $ 123 $ - $ - $ 123
Amortized cost and fair value of securities	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2019 U. S. Government sponsored enterprises $ 7,999 $ 2 $ 11 $ 7,990 Mortgage-backed obligations of federal agencies 361 3 - 364 Total Securities Available for Sale $ 8,360 $ 5 $ 11 $ 8,354 December 31, 2018 U.S. Government sponsored enterprises $ 7,999 $ - $ 113 $ 7,886 Mortgage-backed obligations of federal agencies 409 - 6 403 Total Securities Available for Sale $ 8,408 $ - $ 119 $ 8,289
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 $ 124 $ 124 $ 1,995 $ 1,995 Due after one year through five years - - 6,005 5,995 Due after five years - - 360 364 Total $ 124 $ 124 $ 8,360 $ 8,354
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 June 30, 2019 U. S. Government sponsored enterprises (Three securities) $ - $ - $ 5,998 $ (11 ) $ 5,998 $ (11 ) Total $ - $ - $ 5,998 $ (11 ) $ 5,998 $ (11 ) Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018 U. S. Government sponsored enterprises (Four securities) $ - $ - $ 7,886 $ (113 ) $ 7,886 $ (113 ) Mortgage-backed obligations of federal agencies (One security) - - 403 (6 ) 403 (6 ) Total $ - $ - $ 8,289 $ (119 ) $ 8,289 $ (119 )

3. Loans (Tables)

3. Loans (Tables)	6 Months Ended
	Jun. 30, 2019
Loans and Leases Receivable Disclosure [Abstract]
Schedule of loans outstanding	(dollars in thousands) 2019 2018 Construction/Land Development $ 66,959 $ 61,659 Farmland 25,608 17,030 Real Estate 182,838 192,278 Multi-Family 9,247 9,665 Commercial Real Estate 140,967 147,342 Home Equity – closed end 9,024 11,039 Home Equity – open end 50,326 53,197 Commercial & Industrial – Non-Real Estate 34,356 36,021 Consumer 10,181 9,861 Dealer Finance 103,922 97,523 Credit Cards 2,979 3,184 Total $ 636,407 $ 638,799
Schedule impaired loans	June 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 1,977 $ 1,977 $ - $ 2,414 $ 2,414 $ - Farmland 1,943 1,943 - 1,941 1,941 - Real Estate 2,109 2,109 - 1,932 1,932 - Multi-Family - - - - - - Commercial Real Estate 1,977 1,977 - 6,176 6,176 - Home Equity – closed end 720 720 - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate 23 23 - - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 33 33 - 32 32 - 8,782 8,782 - 12,495 12,495 Impaired loans with a valuation allowance Construction/Land Development 2,580 4,166 573 4,311 4,871 1,627 Farmland - - - - - - Real Estate 416 416 8 422 422 7 Multi-Family - - - - - - Commercial Real Estate 4,111 4,111 566 - 1,500 - Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer 4 4 1 8 8 2 Credit cards - - - - - - Dealer Finance 193 193 11 194 194 10 7,304 8,890 1,159 4,935 6,995 1,646 Total impaired loans $ 16,086 $ 17,672 $ 1,159 $ 17,430 $ 19,490 $ 1,646
Schedule of recorded investment	Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 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 $ 2,011 $ 84 $ 4,759 $ 45 $ 2,195 $ 123 $ 4,929 $ 79 Farmland 1,942 1 1,984 62 1,942 1 1,984 62 Real Estate 2,013 (7 ) 837 (6 ) 2,020 22 982 11 Multi-Family - - - - - - - - Commercial Real Estate 1,901 189 797 4 4,076 228 2,608 9 Home Equity – closed end 360 - - - 360 - - - Home Equity – open end - - - - - - 116 - Commercial & Industrial – Non-Real Estate 12 - - - - - - - Consumer and credit cards - - - - 12 - 3 - Dealer Finance 45 (1 ) 33 - 33 0 32 1 8,284 266 8,410 105 10,638 374 10,654 162 Impaired loans with a valuation allowance: Construction/Land Development $ 2,651 $ (27 ) $ 7,417 $ 64 $ 3,445 $ 31 $ 6,610 $ 98 Farmland - - - - - - - - Real Estate 417 58 1,283 9 419 65 1,251 27 Multi-Family - - - - - - - - Commercial Real Estate 4,152 (104 ) 5,407 73 2,056 33 3,605 141 Home Equity – closed end - 41 - - - 41 - - Home Equity – open end - - - - - - - - Commercial & Industrial – Non-Real Estate - 2 - - - 1 - - Consumer and credit card 5 - 12 - 6 - 8 1 Dealer Finance 176 5 198 4 194 9 148 8 7,401 (25 ) 14,317 150 6,120 180 11,622 275 Total Impaired Loans $ 15,685 $ 241 $ 22,727 $ 255 $ 16,758 $ 554 $ 22,276 $ 437 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 June 30, 2019 Construction/Land Development $ 799 $ 1,224 $ 899 $ 2,922 $ 64,037 $ 66,959 $ 2,627 $ - Farmland - - 1,942 1,942 23,666 25,608 1,942 - Real Estate 2,094 1,903 1,176 5,173 177,665 182,838 1,523 343 Multi-Family - - - - 9,247 9,247 - - Commercial Real Estate 1,446 4,772 52 6,270 134,697 140,967 4,817 - Home Equity – closed end 3 101 - 104 8,920 9,024 - - Home Equity – open end 574 99 166 839 49,487 50,326 139 27 Commercial & Industrial – Non- Real Estate 197 373 - 570 33,786 34,356 12 - Consumer 96 4 55 155 10,026 10,181 78 - Dealer Finance 1,324 415 162 1,901 102,021 103,922 177 - Credit Cards 167 - - 167 2,812 2,979 - 3 Total $ 6,700 $ 8,891 $ 4,452 $ 20,043 $ 616,364 $ 636,407 $ 11,315 $ 373 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, 2018 Construction/Land Development $ 290 $ - $ 1,767 $ 2,057 $ 59,602 $ 61,659 $ 2,327 $ - Farmland - - - - 17,030 17,030 - - Real Estate 3,074 677 1,729 5,480 186,798 192,278 1,477 726 Multi-Family - - - - 9,665 9,665 - - Commercial Real Estate 479 189 5,073 5,741 141,601 147,342 5,074 - Home Equity – closed end - - 12 12 11,027 11,039 - 12 Home Equity – open end 148 171 320 639 52,558 53,197 269 51 Commercial & Industrial – Non- Real Estate 40 22 80 142 35,879 36,021 98 - Consumer 89 26 3 118 9,743 9,861 5 2 Dealer Finance 2,763 337 96 3,196 94,327 97,523 155 9 Credit Cards 50 11 9 70 3,114 3,184 - - Total $ 6,933 $ 1,433 $ 9,089 $ 17,455 $ 621,344 $ 638,799 $ 9,405 $ 800

4. Allowance for Loan Losses (T

4. Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2019
Allowance For Loan Losses
Summary loan loss allowance transactions	June 30, 2019 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 2,094 $ 1,585 $ - $ 1,334 $ 1,843 $ 573 $ 1,270 Farmland 15 - - 10 25 - 25 Real Estate 292 25 1 8 276 8 268 Multi-Family 10 - - - 10 - 10 Commercial Real Estate 416 - 16 985 1,417 566 851 Home Equity – closed end 13 - - (4 ) 9 - 9 Home Equity – open end 126 30 - (43 ) 53 - 53 Commercial & Industrial – Non-Real Estate 192 126 72 283 421 - 421 Consumer 70 63 29 19 55 - 55 Dealer Finance 1,974 1,088 595 393 1,874 12 1,862 Credit Cards 38 52 16 65 67 - 67 Total $ 5,240 $ 2,969 $ 729 $ 3,050 $ 6,050 $ 1,159 $ 4,891 December 31, 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 $ 489 $ 122 $ (86 ) $ 2,094 $ 1,627 $ 467 Farmland 25 - - (10 ) 15 - 15 Real Estate 719 99 12 (340 ) 292 7 285 Multi-Family 19 - - (9 ) 10 - 10 Commercial Real Estate 482 1,546 1 1,479 416 - 416 Home Equity – closed end 66 3 4 (54 ) 13 - 13 Home Equity – open end 209 - 8 (91 ) 126 - 126 Commercial & Industrial – Non-Real Estate 337 573 91 337 192 - 192 Consumer 148 51 41 (68 ) 70 2 68 Dealer Finance 1,440 2,083 861 1,756 1,974 10 1,964 Credit Cards 52 76 46 16 38 - 38 Total $ 6,044 $ 4,920 $ 1,186 $ 2,930 $ 5,240 $ 1,646 $ 3,594
Schedule of recorded investment in loan receivables	June 30, 2019 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 66,959 $ 4,557 $ 62,402 Farmland 25,608 1,943 23,665 Real Estate 182,838 2,525 180,313 Multi-Family 9,247 - 9,247 Commercial Real Estate 140,967 6,088 134,879 Home Equity – closed end 9,024 720 8,304 Home Equity –open end 50,326 - 50,326 Commercial & Industrial – Non-Real Estate 34,356 23 34,333 Consumer 10,181 4 10,177 Dealer Finance 103,922 226 103,696 Credit Cards 2,979 - 2,979 Total $ 636,407 $ 16,086 $ 620,321 December 31, 2018 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 61,659 $ 6,725 $ 54,934 Farmland 17,030 1,941 15,089 Real Estate 192,278 2,354 189,924 Multi-Family 9,665 - 9,665 Commercial Real Estate 147,342 6,176 141,166 Home Equity – closed end 11,039 - 11,039 Home Equity –open end 53,197 - 53,197 Commercial & Industrial – Non-Real Estate 36,021 - 36,021 Consumer 9,861 8 9,853 Dealer Finance 97,523 226 97,297 Credit Cards 3,184 - 3,184 $ 638,799 $ 17,430 $ 621,369 Total
Summary of changes and the effect on provision expense	Calculated Provision Based on Current Methodology Calculated Provision Based on Prior Methodology Difference Construction and Development $ 1,334 $ 715 $ 619 Farmland 10 10 - Real Estate 8 (6 ) 14 Multi-Family - - - Commercial RE 985 531 454 Home Equity - Closed End 4 5 (1 ) Home Equity - Open End 43 110 (67 ) C&I - Non - RE 283 (16 ) 300 Consumer 19 (15 ) 34 Dealer Finance 393 393 - Credit Cards 65 42 23 $ 3,050 $ 1 675 $ 1,375
Schedule of loan portfolio by internal loan grade	June 30, 2019 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 $ - $ 453 $ 18,520 $ 35,043 $ 9,076 $ 128 $ 3,739 $ - $ 66,959 Farmland 61 398 6,661 13,084 2,962 500 1,942 - 25,608 Real Estate - 1,683 52,573 98,278 22,537 3,200 4,567 - 182,838 Multi-Family - - 2,585 6,503 159 - - - 9,247 Commercial Real Estate - 2,112 44,155 76,961 12,078 844 4,817 - 140,967 Home Equity – closed end - 152 2,711 4,074 1,984 102 1 - 9,024 Home Equity – open end 9 2,265 18,306 25,843 3,368 199 336 - 50,326 Commercial & Industrial (Non-Real Estate) 163 2,409 16,242 13,207 1,771 503 61 - 34,356 Consumer (excluding dealer) 33 157 3,334 4,778 1,732 53 94 - 10,181 Total $ 266 $ 9,629 $ 165,087 $ 277,771 $ 55,667 $ 5,529 $ 15,557 $ - $ 529,506 Credit Cards Dealer Finance Performing $ 2,979 $ 103,745 Non-performing - 177 Total $ 2,979 $ 103,922 December 31, 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 $ - $ 1,148 $ 15,857 $ 29,301 $ 9,353 $ - $ 6,000 $ - $ 61,659 Farmland 62 - 4,953 6,376 3,205 493 1,941 - 17,030 Real Estate - 1,644 55,429 106,387 22,679 1,531 4,608 - 192,278 Multi-Family - 2,895 6,604 166 - - - 9,665 Commercial Real Estate - 2,437 44,065 81,916 11,564 2,286 5,074 - 147,342 Home Equity – closed end - 31 3,245 5,842 1,909 - 12 - 11,039 Home Equity – open end 60 1,554 19,464 27,347 4,157 223 392 - 53,197 Commercial & Industrial (Non-Real Estate) 193 2,291 17,144 13,254 2,704 337 98 - 36,021 Consumer (excluding dealer) 27 190 2,648 5,192 1,800 - 4 - 9,861 Total $ 342 $ 9,295 $ 165,700 $ 282,219 $ 57,537 $ 4,870 $ 18,129 $ - $ 538,092 Credit Cards Dealer Finance Performing $ 3,175 $ 97,368 Non-performing 9 155 Total $ 3,184 $ 97,523

5. Employee Benefit Plan (Table

5. Employee Benefit Plan (Tables)	6 Months Ended
	Jun. 30, 2019
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract]
Schedule of employee benefit plan	Six Months Ended Three Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Service cost $ 369 $ 384 $ 184 $ 192 Interest cost 274 248 137 124 Expected return on plan assets (403 ) (462 ) (201 ) (231 ) Amortization of prior service cost (8 ) (8 ) (4 ) (4 ) Amortization of net loss 141 152 71 76 Net periodic pension cost $ 373 $ 314 $ 187 $ 157

6. Fair Value (Tables)

6. Fair Value (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities at fair value on recurring basis	June 30, 2019 Total Level 1 Level 2 Level 3 U.S. Government sponsored enterprises $ 7,990 $ - $ 7,990 $ - Mortgage-backed obligations of federal agencies 364 - 364 - Total securities available for sale $ 8,354 $ - $ 8,354 $ - Derivatives (Indexed CD product) $ 67 $ - $ 67 $ - December 31, 2018 Total Level 1 Level 2 Level 3 U. S. Government sponsored enterprises $ 7,886 - $ 7,886 - Mortgage-backed obligations of federal agencies 403 - 403 - Total securities available for sale $ 8,289 $ - $ 8,289 $ - Derivatives (Indexed CD product) $ 44 - $ 44 -
Schedule of assets and liabilities at fair value on non-recurring basis	June 30, 2019 Total Level 1 Level 2 Level 3 Construction/Land Development $ 2,007 $ - $ - $ 2,007 Real Estate 408 - - 408 Commercial Real Estate 3,545 - - 3,545 Consumer 3 - - 3 Dealer Finance 182 - - 182 Impaired loans $ 6,145 $ - $ - $ 6,145 December 31, 2018 Total Level 1 Level 2 Level 3 Construction/Land Development $ 2,684 - - $ 2,684 Real Estate 415 - - 415 Consumer 6 6 Dealer Finance 184 - - 184 Impaired loans $ 3,289 - - $ 3,289
Schedule of fair value measurements	The following table presents information about Level 3 Fair Value Measurements for June 30, 2019: Fair Value at June 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 6,145 Discounted appraised value Discount for selling costs and marketability 6%-28% (Average 11.8 %) The following table presents information about Level 3 Fair Value Measurements for December 31, 2018: Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Impaired Loans $ 3,289 Discounted appraised value Discount for selling costs and marketability 2%-9% (Average 4.21 %) The following table summarizes the Company’s other real estate owned that were measured at fair value on a nonrecurring basis as of June 30, 2019 and December 31, 2018 (dollars in thousands). June 30, 2019 Total Level 1 Level 2 Level 3 Other real estate owned $ 1,969 - - $ 1,969 December 31, 2018 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,443 - - $ 2,443 The following table presents information about Level 3 Fair Value Measurements for June 30, 2019: Fair Value at June 30, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 1,969 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, 2018: Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range (dollars in thousands) Other real estate owned $ 2,443 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)	6 Months Ended
	Jun. 30, 2019
Financial Instruments, Owned, at Fair Value [Abstract]
Schedule of carrying value and estimated fair value for financial instruments	Fair Value Measurements at June 30, 2019 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 June 30, 2019 Assets: Cash and cash equivalents $ 14,780 $ 14,780 $ - $ - $ 14,780 Securities 8,478 - 8,478 - 8,478 Loans held for sale 78,406 - 78,406 - 78,406 Loans held for investment, net 630,357 - - 629,467 629,467 Interest receivable 2,147 - 2,147 - 2,147 Bank owned life insurance 19,753 - 19,753 - 19,753 Total $ 753,921 $ 14,780 $ 108,784 $ 629,467 $ 753,031 Liabilities: Deposits $ 608,470 $ - $ 462,504 $ 146,732 $ 609,236 Short-term debt 40,000 - 40,000 - 40,000 Long-term debt 47,917 - - 48,265 48,265 Interest payable 371 - 371 - 371 Total $ 696,758 $ - $ 502,875 $ 194,997 $ 697,872 Fair Value Measurements at December 31, 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 December 31, 2018 Assets: Cash and cash equivalents $ 10,912 $ 10,912 $ - $ - $ 10,912 Securities 8,412 - 8,412 - 8,412 Loans held for sale 55,910 - 55,910 - 55,910 Loans held for investment, net 633,559 - - 613,717 613,717 Interest receivable 2,078 - 2,078 - 2,078 Bank owned life insurance 19,464 - 19,464 - 19,464 Total $ 730,335 $ 10,912 $ 85,864 $ 613,717 $ 710,493 Liabilities: Deposits $ 591,325 $ - $ 441,319 $ 153,848 $ 595,167 Short-term debt 40,116 - 40,116 - 40,116 Long-term debt 40,218 - - 39,609 39,609 Interest payable 348 - 348 - 348 Total $ 672,007 $ - $ 481,783 $ 193,457 $ 675,240

8. Troubled Debt Restructuring

8. Troubled Debt Restructuring (Tables)	6 Months Ended
	Jun. 30, 2019
Troubled Debt Restructuring Abstract
Schedule of troubled debt restructuring	Six months ended June 30, 2019 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 1 $ 182 $ 182 Real Estate 1 193 193 Home Equity 1 720 720 Commercial and Industrial 1 23 23 Consumer 5 35 35 Total 9 $ 1,153 $ 1,153 Six months ended June 30, 2018 (dollars in thousands) Number of Pre-Modification Outstanding Recorded Post-Modification Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial Real Estate 1 $ 1,002 $ 1,002 Real Estate 2 1,255 1,255 Consumer 13 196 196 Total 16 $ 2,453 $ 2,453

9. Accumulated Other Comprehe_2

9. Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
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, 2018 $ (94 ) $ (3,875 ) $ (3,969 ) Change in unrealized securities gains (losses), net of tax 89 - 89 Balance at June 30, 2019 $ (5 ) $ (3,875 ) $ (3,880 ) (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 (133 ) - (133 ) Balance at June 30, 2018 $ (153 ) $ (4,122 ) $ (4,275 )

10. Business Segments (Tables)

10. Business Segments (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of business segments	Six Months Ended June 30, 2019 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 19,254 $ 68 $ 75 $ - $ - $ (84 ) $ 19,313 Service charges on deposits 803 - - - - - 803 Investment services and insurance income - - 325 - - (3 ) 322 Mortgage banking income, net - 1,345 - - - - 1,345 Title insurance income - - - 682 - - 682 Other operating income (loss) 1,110 28 - - (24 ) (1 ) 1,113 Total income (loss) 21,167 1,441 400 682 (24 ) (88 ) 23,578 Expenses: Interest Expense 3,233 75 - - - (84 ) 3,224 Provision for loan losses 3,050 - - - - - 3,050 Salary and benefit expense 6,576 917 150 457 - - 8,100 Other operating expenses 5,489 354 28 124 31 (4 ) 6,022 Total expense 18,348 1,346 178 581 31 (88 ) 20,396 Net income (loss) before taxes 2,819 95 222 101 (55 ) - 3,182 Income tax expense 158 - 33 - 41 - 232 Net income (loss) $ 2,661 $ 95 $ 189 $ 101 $ (96 ) $ - $ 2,950 Net income attributable to non-controlling interest - 29 - 24 (24 ) - 29 Net Income attributable to F & M Bank Corp. $ 2,661 $ 66 $ 189 $ 77 $ (72 ) $ - $ 2,921 Total Assets $ 809,712 $ 11,210 $ 7,332 $ 1,615 $ 91,674 $ (114,594 ) $ 806,949 Goodwill $ 2,670 $ 47 $ - $ 3 $ 164 $ - $ 2,884 Three months ended June 30, 2019 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,754 $ 43 $ 41 $ - $ - $ (56 ) $ 9,782 Service charges on deposits 417 - - - - - 417 Investment services and insurance income - - 174 - - (3 ) 171 Mortgage banking income, net - 815 - - - - 815 Title insurance income - - - 406 - - 406 Other operating income (loss) 665 28 - - (27 ) - 666 Total income (loss) 10,836 886 215 406 (27 ) (59 ) 12,257 Expenses: Interest Expense 1,732 50 - - - (56 ) 1,726 Provision for loan losses 1,600 - - - - - 1,600 Salary and benefit expense 3,285 489 69 234 - - 4,077 Other operating expenses 2,739 177 16 62 24 (3 ) 3,015 Total expense 9,356 716 85 296 24 (59 ) 10,418 Net income (loss) before taxes 1,480 170 130 110 (51 ) - 1,839 Income tax expense 112 - 19 - 22 - 153 Net income (loss) $ 1,368 $ 170 $ 111 $ 110 $ (73 ) $ - $ 1,686 Net income attributable to non-controlling interest - 51 - 27 (27 ) - 51 Net Income attributable to F & M Bank Corp. $ 1,368 $ 119 $ 111 $ 83 $ (46 ) $ - $ 1,635 Six Months Ended June 30, 2018 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 17,620 $ 71 $ 71 $ - $ - $ (57 ) $ 17,705 Service charges on deposits 724 - - - - - 724 Investment services and insurance income - - 431 - - (11 ) 420 Mortgage banking income, net - 1,135 - - - - 1,135 Title insurance income - 109 - 453 - - 562 Other operating income 843 48 - - - - 891 Total income (loss) 19,187 1,363 502 453 - (68 ) 21,437 Expenses: Interest Expense 2,097 54 - - - (57 ) 2,094 Provision for loan losses 2,030 - - - - - 2,030 Salary and benefit expense 6,564 831 283 345 - - 8,023 Other operating expenses 4,496 456 28 89 29 (11 ) 5,087 Total expense 15,187 1,341 311 434 29 (68 ) 17,234 Net income (loss) before taxes 4,000 22 191 19 (29 ) - 4,203 Income tax expense 284 - 36 - 218 - 538 Net income (loss) $ 3,716 $ 22 $ 155 $ 19 $ (247 ) $ - $ 3,665 Net income attributable to non-controlling interest - 5 - - - - 5 Net Income attributable to F & M Bank Corp. $ 3,716 $ 17 $ 155 $ 19 $ (247 ) $ - $ 3,660 Total Assets $ 772,244 $ 8,332 $ 6,910 $ 707 $ 91,480 $ (109,005 ) $ 770,668 Goodwill $ 2,670 $ 65 $ - $ 57 $ 164 $ - $ 2,956 Three Months Ended June 30, 2018 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,916 $ 42 $ 36 $ - $ - $ (32 ) $ 8,962 Service charges on deposits 358 - - - - - 358 Investment services and insurance income - - 228 - - (5 ) 223 Mortgage banking income, net - 615 - - - - 615 Title insurance income - 47 - 259 - - 306 Other operating income 450 47 - - - - 497 Total income (loss) 9,724 751 264 259 - (37 ) 10,961 Expenses: Interest Expense 1,116 31 - - - (32 ) 1,115 Provision for loan losses 1,350 - - - - - 1,350 Salary and benefit expense 3,268 416 137 179 - - 4,000 Other operating expenses 2,317 246 18 42 15 (5 ) 2,633 Total expense 8,051 693 155 221 15 (37 ) 9,098 Net income (loss) before taxes 1,673 58 109 38 (15 ) - 1,863 Income tax expense 144 - 21 - (6 ) - 159 Net income (loss) $ 1,529 $ 58 $ 88 $ 38 $ (9 ) $ - $ 1,704 Net income attributable to non-controlling interest - 16 - - - - 16 Net Income attributable to F & M Bank Corp. $ 1,529 $ 42 $ 88 $ 38 $ (9 ) $ - $ 1,688

12. Revenue Recognition (Tables

12. Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue Recognition [Abstract]
Summary of noninterest income, segregated by revenue streams	Six Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 Noninterest Income (in thousands) In-scope of Topic 606: Service Charges on Deposits $ 803 $ 724 $ 417 $ 358 Investment Services and Insurance Income 322 420 171 223 Title Insurance Income 682 562 406 306 ATM and check card fees 898 735 529 388 Other 281 250 153 135 Noninterest Income (in-scope of Topic 606) 2,986 2,691 1,676 1,409 Noninterest Income (out-of-scope of Topic 606) 1,279 1,041 799 590 Total Noninterest Income $ 4,265 $ 3,732 $ 2,475 $ 1,999

13. Leases (Tables)

13. Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	(Dollars in thousands) June 30, 2019 Lease liabilities $ 974 Right-of-use assets $ 1,005 Weighted average remaining lease term 8.01 years Weighted average discount rate 3.51 %
Lease cost	For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Lease cost Operating lease cost $ 32 $ 64 Total lease cost $ 32 $ 64 Cash paid for amounts included in the measurement of lease liabilities $ 38 $ 75
Maturity of operating leases	Lease payments due As of June 30, 2019 Six months ending December 31, 2019 $ 79 Twelve months ending December 31, 2020 128 Twelve months ending December 31, 2021 110 Twelve months ending December 31, 2022 105 Twelve months ending December 31, 2023 93 Twelve months ending December 31, 2024 92 Thereafter 627 Total undiscounted cash flows $ 1,234 Discount (260 ) Lease liabilities $ 974

1. Summary of Significant Acc_4

1. Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings available to common stockholders:
Net income	$ 1,686	$ 1,704	$ 2,950	$ 3,665
Noncontrolling interest income	51	16	29	5
Preferred stock dividends	79	104	157	207
Net income available to common stockholders	$ 1,556	$ 1,584	$ 2,764	$ 3,453

1. Summary of Significant Acc_5

1. Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Basic EPS, income	$ 1,556	$ 1,584	$ 2,764	$ 3,453
Effect of dilutive securities convertible preferred stock, income	79	104	157	207
Diluted EPS, income	$ 1,635	$ 1,688	$ 2,921	$ 3,660
Diluted EPS, shares	3,200,119	3,250,749	3,200,119	3,253,007
Effect of dilutive securities convertible preferred stock, shares	247,029	359,063	274,450	359,594
Diluted EPS, shares	3,447,148	3,609,812	3,474,569	3,612,601
Basic EPS, per shares	$ 0.49	$ 0.49	$ 0.86	$ 1.06
Effect of dilutive securities convertible preferred stock, per shares	(.02)	(.02)	(.02)	(.05)
Diluted EPS, per shares	$ 0.47	$ 0.47	$ 0.84	$ 1.01

2. Investment Securities (Detai

2. Investment Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Securities available for sale
Cost	$ 8,360	$ 8,408
Unrealized gains	5	0
Unrealized losses	11	119
Market value	8,354	8,289
U. S. Treasury and agency obligations [Member]
Securities held to maturity
Cost	124	123
Market value	124	123
Government Sponsored Enterprises [Member]
Securities available for sale
Cost	7,999	7,999
Unrealized gains	2	0
Unrealized losses	11	113
Market value	7,990	7,886
Mortgage-backed securities [Member]
Securities available for sale
Cost	361	409
Unrealized gains	3	0
Unrealized losses	0	6
Market value	$ 364	$ 403

2. Investment Securities (Det_2

2. Investment Securities (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total, amortized cost	$ 124	$ 123
Securities Held to Maturity [Member]
Due in one year or less, amortized cost	124
Due after one year through five years, amortized cost	0
Due after five years, amortized cost	0
Total, amortized cost	124
Due in one year or less, fair value	124
Due after one year through five years, fair value	0
Due after five years, fair value	0
Total, fair value	124
Securities Available for Sale [Member]
Due in one year or less, amortized cost	1,995
Due after one year through five years, amortized cost	6,005
Due after five years, amortized cost	360
Total, amortized cost	8,360
Due in one year or less, fair value	1,995
Due after one year through five years, fair value	5,995
Due after five years, fair value	364
Total, fair value	$ 8,354

2. Investment Securities (Det_3

2. Investment Securities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair value less than 12 months	$ 0	$ 0
Unrealized losses less than 12 months	0	0
Fair value more than 12 months	5,998	8,289
Unrealized losses more than 12 months	(11)	(119)
Fair value total	5,998	8,289
Unrealized losses total	(11)	(119)
Government sponsored Enterprises [Member]
Fair value less than 12 months	0	0
Unrealized losses less than 12 months	0	0
Fair value more than 12 months	5,998	7,886
Unrealized losses more than 12 months	(11)	(113)
Fair value total	5,998	7,886
Unrealized losses total	$ (11)	(113)
Mortgage-backed securities [Member]
Fair value less than 12 months		0
Unrealized losses less than 12 months		0
Fair value more than 12 months		403
Unrealized losses more than 12 months		(6)
Fair value total		403
Unrealized losses total		$ (6)

2. Investment Securities (Det_4

2. Investment Securities (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value Measurements Tables
Other investments	$ 15,047	$ 13,432

3. Loans (Details)

3. Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Loans outstanding	$ 636,407	$ 638,799
Construction/Land Development [Member]
Loans outstanding	66,959	61,659
Farmland [Member]
Loans outstanding	25,608	17,030
Real Estate [Member]
Loans outstanding	182,838	192,278
Multi-Family [Member]
Loans outstanding	9,247	9,665
Commercial Real Estate [Member]
Loans outstanding	140,967	147,342
Home Equity - Closed End [Member]
Loans outstanding	9,024	11,039
Home Equity [Member]
Loans outstanding	50,326	53,197
Commercial & Industrial - Non-Real Estate [Member]
Loans outstanding	34,356	36,021
Consumer [Member]
Loans outstanding	10,181	9,861
Dealer Finance [Member]
Loans outstanding	103,922	97,523
Credit Cards [Member]
Loans outstanding	$ 2,979	$ 3,184

3. Loans (Details 1)

3. Loans (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Impaired loans without a valuation allowance
Recorded investment	$ 8,782		$ 8,782		$ 12,495
Unpaid principal balance	8,782		8,782		12,495
Related allowance	0		0		0
Average recorded investment	8,284	$ 8,410	10,638	$ 10,654
Interest income recognized	266	105	374	162
Impaired loans with a valuation allowance
Recorded investment	7,304		7,304		4,935
Unpaid principal balance	8,890		8,890		6,995
Related Allowance	1,159		1,159		1,646
Average recorded investment	7,401	14,317	6,120	11,622
Interest income recognized	(25)	150	180	275
Total impaired loans
Recorded investment	16,086		16,086		17,430
Unpaid principal balance	17,672		17,672		19,490
Related allowance	1,159		1,159		1,646
Average recorded investment	15,685	22,727	16,758	22,276
Interest income recognized	241	255	554	437
Construction/Land Development [Member]
Impaired loans without a valuation allowance
Recorded investment	1,977		1,977		2,414
Unpaid principal balance	1,977		1,977		2,414
Related allowance	0		0		0
Average recorded investment	2,011	4,759	2,195	4,929
Interest income recognized	84	45	123	79
Impaired loans with a valuation allowance
Recorded investment	2,580		2,580		4,311
Unpaid principal balance	4,166		4,166		4,871
Related Allowance	573		573		1,627
Average recorded investment	2,651	7,417	3,445	6,610
Interest income recognized	(27)	64	31	98
Farmland [Member]
Impaired loans without a valuation allowance
Recorded investment	1,943		1,943		1,941
Unpaid principal balance	1,943		1,943		1,941
Related allowance	0		0		0
Average recorded investment	1,942	1,984	1,942	1,984
Interest income recognized	1	62	1	62
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	2,109		2,109		1,932
Unpaid principal balance	2,109		2,109		1,932
Related allowance	0		0		0
Average recorded investment	2,013	837	2,020	982
Interest income recognized	(7)	(6)	22	11
Impaired loans with a valuation allowance
Recorded investment	416		416		422
Unpaid principal balance	416		416		422
Related Allowance	8		8		7
Average recorded investment	417	1,283	419	1,251
Interest income recognized	58	9	65	27
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	1,977		1,977		6,176
Unpaid principal balance	1,977		1,977		6,176
Related allowance	0		0		0
Average recorded investment	1,901	797	4,076	2,608
Interest income recognized	189	4	228	9
Impaired loans with a valuation allowance
Recorded investment	4,111		4,111		0
Unpaid principal balance	4,111		4,111		1,500
Related Allowance	566		566		0
Average recorded investment	4,152	5,407	2,056	3,605
Interest income recognized	(104)	73	33	141
Home Equity - Closed End [Member]
Impaired loans without a valuation allowance
Recorded investment	720		720		0
Unpaid principal balance	720		720		0
Related allowance	0		0		0
Average recorded investment	360	0	360	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	41	0	41	0
Home Equity [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	116
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	23		23		0
Unpaid principal balance	23		23		0
Related allowance	0		0		0
Average recorded investment	12	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	2	0	1	0
Consumer [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	4		4		8
Unpaid principal balance	4		4		8
Related Allowance	1		1		2
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	33		33		32
Unpaid principal balance	33		33		32
Related allowance	0		0		0
Average recorded investment	45	33	33	32
Interest income recognized	(1)	0	0	1
Impaired loans with a valuation allowance
Recorded investment	193		193		194
Unpaid principal balance	193		193		194
Related Allowance	11		11		$ 10
Average recorded investment	176	198	194	148
Interest income recognized	5	4	9	8
Consumer and credit card [Member]
Impaired loans without a valuation allowance
Average recorded investment	0	0	12	3
Interest income recognized	0	0	0	0
Impaired loans with a valuation allowance
Average recorded investment	5	12	6	8
Interest income recognized	$ 0	$ 0	$ 0	$ 1

3. Loans (Details 2)

3. Loans (Details 2) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
30-59 days past due	$ 6,700	$ 6,933
60-89 days past due	8,891	1,433
Greater than 90 days (excluding non-accrual)	4,452	9,089
Total past due	20,043	17,455
Current	616,364	621,344
Total loans receivable	636,407	638,799
Non-accrual loans	11,315	9,405
Recorded investment >90 days & accruing	373	800
Credit Cards [Member]
30-59 days past due	167	50
60-89 days past due	0	11
Greater than 90 days (excluding non-accrual)	0	9
Total past due	167	70
Current	2,812	3,114
Total loans receivable	2,979	3,184
Non-accrual loans	0	0
Recorded investment >90 days & accruing	3	0
Construction/Land Development [Member]
30-59 days past due	799	290
60-89 days past due	1,224	0
Greater than 90 days (excluding non-accrual)	899	1,767
Total past due	2,922	2,057
Current	64,037	59,602
Total loans receivable	66,959	61,659
Non-accrual loans	2,627	2,327
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)	1,942	0
Total past due	1,942	0
Current	23,666	17,030
Total loans receivable	25,608	17,030
Non-accrual loans	1,942	0
Recorded investment >90 days & accruing	0	0
Real Estate [Member]
30-59 days past due	2,094	3,074
60-89 days past due	1,903	677
Greater than 90 days (excluding non-accrual)	1,176	1,729
Total past due	5,173	5,480
Current	177,665	186,798
Total loans receivable	182,838	192,278
Non-accrual loans	1,523	1,477
Recorded investment >90 days & accruing	343	726
Multi-Family [Member]
30-59 days past due	0	0
60-89 days past due	0	0
Greater than 90 days (excluding non-accrual)	0	0
Total past due	0	0
Current	9,247	9,665
Total loans receivable	9,247	9,665
Non-accrual loans	0	0
Recorded investment >90 days & accruing	0	0
Commercial Real Estate [Member]
30-59 days past due	1,446	479
60-89 days past due	4,772	189
Greater than 90 days (excluding non-accrual)	52	5,073
Total past due	6,270	5,741
Current	134,697	141,601
Total loans receivable	140,967	147,342
Non-accrual loans	4,817	5,074
Recorded investment >90 days & accruing	0	0
Home Equity - Closed End [Member]
30-59 days past due	3	0
60-89 days past due	101	0
Greater than 90 days (excluding non-accrual)	0	12
Total past due	104	12
Current	8,920	11,027
Total loans receivable	9,024	11,039
Non-accrual loans	0	0
Recorded investment >90 days & accruing	0	12
Home Equity [Member]
30-59 days past due	574	148
60-89 days past due	99	171
Greater than 90 days (excluding non-accrual)	166	320
Total past due	839	639
Current	49,487	52,558
Total loans receivable	50,326	53,197
Non-accrual loans	139	269
Recorded investment >90 days & accruing	27	51
Commercial & Industrial - Non-Real Estate [Member]
30-59 days past due	197	40
60-89 days past due	373	22
Greater than 90 days (excluding non-accrual)	0	80
Total past due	570	142
Current	33,786	35,879
Total loans receivable	34,356	36,021
Non-accrual loans	12	98
Recorded investment >90 days & accruing	0	0
Consumer [Member]
30-59 days past due	96	89
60-89 days past due	4	26
Greater than 90 days (excluding non-accrual)	55	3
Total past due	155	118
Current	10,026	9,743
Total loans receivable	10,181	9,861
Non-accrual loans	78	5
Recorded investment >90 days & accruing	0	2
Dealer Finance [Member]
30-59 days past due	1,324	2,763
60-89 days past due	415	337
Greater than 90 days (excluding non-accrual)	162	96
Total past due	1,901	3,196
Current	102,021	94,327
Total loans receivable	103,922	97,523
Non-accrual loans	177	155
Recorded investment >90 days & accruing	$ 0	$ 9

3. Loans (Details Narrative)

3. Loans (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure [Abstract]
Pledged loans	$ 189,972	$ 186,673
Loans held for sale	78,406	55,910
Foreclosed residential real estate in other real estate	$ 345	$ 375

4. Allowance for Loan Losses (D

4. Allowance for Loan Losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Beginning balance	$ 5,240	$ 6,044
Charge-offs	2,969	4,920
Recoveries	729	1,186
Provision	3,050	2,930
Ending balance	6,050	5,240
Individually evaluated for impairment	1,159	1,646
Collectively evaluated for impairment	4,891	3,594
Construction/Land Development [Member]
Beginning balance	2,094	2,547
Charge-offs	1,585	489
Recoveries	0	122
Provision	1,334	(86)
Ending balance	1,843	2,094
Individually evaluated for impairment	573	1,627
Collectively evaluated for impairment	1,270	467
Farmland [Member]
Beginning balance	15	25
Charge-offs	0	0
Recoveries	0	0
Provision	10	(10)
Ending balance	25	15
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	25	15
Real Estate [Member]
Beginning balance	292	719
Charge-offs	25	99
Recoveries	1	12
Provision	8	(340)
Ending balance	276	292
Individually evaluated for impairment	8	7
Collectively evaluated for impairment	268	285
Multi-Family [Member]
Beginning balance	10	19
Charge-offs	0	0
Recoveries	0	0
Provision	0	(9)
Ending balance	10	10
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	10	10
Commercial Real Estate [Member]
Beginning balance	416	482
Charge-offs	0	1,546
Recoveries	16	1
Provision	985	1,479
Ending balance	1,417	416
Individually evaluated for impairment	566	0
Collectively evaluated for impairment	851	416
Home Equity - Closed End [Member]
Beginning balance	13	66
Charge-offs	0	3
Recoveries	0	4
Provision	(4)	(54)
Ending balance	9	13
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	9	13
Home Equity [Member]
Beginning balance	126	209
Charge-offs	30	0
Recoveries	0	8
Provision	(43)	(91)
Ending balance	53	126
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	53	126
Commercial & Industrial - Non-Real Estate [Member]
Beginning balance	192	337
Charge-offs	126	573
Recoveries	72	91
Provision	283	337
Ending balance	421	192
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	421	192
Consumer [Member]
Beginning balance	70	148
Charge-offs	63	51
Recoveries	29	41
Provision	19	(68)
Ending balance	55	70
Individually evaluated for impairment	0	2
Collectively evaluated for impairment	55	68
Dealer Finance [Member]
Beginning balance	1,974	1,440
Charge-offs	1,088	2,083
Recoveries	595	861
Provision	393	1,756
Ending balance	1,874	1,974
Individually evaluated for impairment	12	10
Collectively evaluated for impairment	1,862	1,964
Credit Cards [Member]
Beginning balance	38	52
Charge-offs	52	76
Recoveries	16	46
Provision	65	16
Ending balance	67	38
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	$ 67	$ 38

4. Allowance for Loan Losses _2

4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Loan receivable	$ 636,407	$ 638,799
Loans individually evaluated for impairment	16,086	17,430
Loans collectively evaluated for impairment	620,321	621,369
Construction/Land Development [Member]
Loan receivable	66,959	61,659
Loans individually evaluated for impairment	4,557	6,725
Loans collectively evaluated for impairment	62,402	54,934
Farmland [Member]
Loan receivable	25,608	17,030
Loans individually evaluated for impairment	1,943	1,941
Loans collectively evaluated for impairment	23,665	15,089
Real Estate [Member]
Loan receivable	182,838	192,278
Loans individually evaluated for impairment	2,525	2,354
Loans collectively evaluated for impairment	180,313	189,924
Multi-Family [Member]
Loan receivable	9,247	9,665
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	9,247	9,665
Commercial Real Estate [Member]
Loan receivable	140,967	147,342
Loans individually evaluated for impairment	6,088	6,176
Loans collectively evaluated for impairment	134,879	141,166
Home Equity - Closed End [Member]
Loan receivable	9,024	11,039
Loans individually evaluated for impairment	720	0
Loans collectively evaluated for impairment	8,304	11,039
Home Equity [Member]
Loan receivable	50,326	53,197
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	50,326	53,197
Commercial & Industrial - Non-Real Estate [Member]
Loan receivable	34,356	36,021
Loans individually evaluated for impairment	23	0
Loans collectively evaluated for impairment	34,333	36,021
Consumer [Member]
Loan receivable	10,181	9,861
Loans individually evaluated for impairment	4	8
Loans collectively evaluated for impairment	10,177	9,853
Dealer Finance [Member]
Loan receivable	103,922	97,523
Loans individually evaluated for impairment	226	226
Loans collectively evaluated for impairment	103,696	97,297
Credit Cards [Member]
Loan receivable	2,979	3,184
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	$ 2,979	$ 3,184

4. Allowance for Loan Losses _3

4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Calculated provision based on current methodology	$ 3,050	$ 2,930
Calculated provision based on prior methodology	1,675
Difference	1,375
Construction/Land Development [Member]
Calculated provision based on current methodology	1,334	(86)
Calculated provision based on prior methodology	715
Difference	619
Farmland [Member]
Calculated provision based on current methodology	10	(10)
Calculated provision based on prior methodology	10
Difference	0
Real Estate [Member]
Calculated provision based on current methodology	8	(340)
Calculated provision based on prior methodology	(6)
Difference	14
Multi-Family [Member]
Calculated provision based on current methodology	0	(9)
Calculated provision based on prior methodology	0
Difference	0
Commercial Real Estate [Member]
Calculated provision based on current methodology	985	1,479
Calculated provision based on prior methodology	531
Difference	454
Home Equity - Closed End [Member]
Calculated provision based on current methodology	(4)	(54)
Calculated provision based on prior methodology	5
Difference	(1)
Home Equity [Member]
Calculated provision based on current methodology	(43)	(91)
Calculated provision based on prior methodology	110
Difference	(67)
Commercial & Industrial - Non-Real Estate [Member]
Calculated provision based on current methodology	283	337
Calculated provision based on prior methodology	(16)
Difference	300
Consumer [Member]
Calculated provision based on current methodology	19	(68)
Calculated provision based on prior methodology	(15)
Difference	34
Dealer Finance [Member]
Calculated provision based on current methodology	393	1,756
Calculated provision based on prior methodology	393
Difference	0
Credit Cards [Member]
Calculated provision based on current methodology	65	$ 16
Calculated provision based on prior methodology	42
Difference	$ 23

4. Allowance for Loan Losses _4

4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Construction/Land Development	$ 66,959	$ 61,659
Farmland	25,608	17,030
Real Estate	182,838	192,278
Multi-Family	9,247	9,665
Commercial Real Estate	140,967	147,342
Home Equity - closed end	9,024	11,039
Home Equity - open end	50,326	53,197
Commercial & Industrial (Non-Real Estate)	34,356	36,021
Consumer (excluding dealer)	10,181	9,861
Total	529,506	538,092
Grade 1 Minimal Risk [Member]
Construction/Land Development	0	0
Farmland	61	62
Real Estate	0	0
Multi-Family	0	0
Commercial Real Estate	0	0
Home Equity - closed end	0	0
Home Equity - open end	9	60
Commercial & Industrial (Non-Real Estate)	163	193
Consumer (excluding dealer)	33	27
Total	266	342
Grade 2 Modest Risk [Member]
Construction/Land Development	453	1,148
Farmland	398	0
Real Estate	1,683	1,644
Multi-Family	0
Commercial Real Estate	2,112	2,437
Home Equity - closed end	152	31
Home Equity - open end	2,265	1,554
Commercial & Industrial (Non-Real Estate)	2,409	2,291
Consumer (excluding dealer)	157	190
Total	9,629	9,295
Grade 3 Average Risk [Member]
Construction/Land Development	18,520	15,857
Farmland	6,661	4,953
Real Estate	52,573	55,429
Multi-Family	2,585	2,895
Commercial Real Estate	44,155	44,065
Home Equity - closed end	2,711	3,245
Home Equity - open end	18,306	19,464
Commercial & Industrial (Non-Real Estate)	16,242	17,144
Consumer (excluding dealer)	3,334	2,648
Total	165,087	165,700
Grade 4 Acceptable Risk [Member]
Construction/Land Development	35,043	29,301
Farmland	13,084	6,376
Real Estate	98,278	106,387
Multi-Family	6,503	6,604
Commercial Real Estate	76,961	81,916
Home Equity - closed end	4,074	5,842
Home Equity - open end	25,843	27,347
Commercial & Industrial (Non-Real Estate)	13,207	13,254
Consumer (excluding dealer)	4,778	5,192
Total	277,771	282,219
Grade 5 Marginally Acceptable [Member]
Construction/Land Development	9,076	9,353
Farmland	2,962	3,205
Real Estate	22,537	22,679
Multi-Family	159	166
Commercial Real Estate	12,078	11,564
Home Equity - closed end	1,984	1,909
Home Equity - open end	3,368	4,157
Commercial & Industrial (Non-Real Estate)	1,771	2,704
Consumer (excluding dealer)	1,732	1,800
Total	55,667	57,537
Grade 6 Watch [Member]
Construction/Land Development	128	0
Farmland	500	493
Real Estate	3,200	1,531
Multi-Family	0	0
Commercial Real Estate	844	2,286
Home Equity - closed end	102	0
Home Equity - open end	199	223
Commercial & Industrial (Non-Real Estate)	503	337
Consumer (excluding dealer)	53	0
Total	5,529	4,870
Grade 7 Substandard [Member]
Construction/Land Development	3,739	6,000
Farmland	1,942	1,941
Real Estate	4,567	4,608
Multi-Family	0	0
Commercial Real Estate	4,817	5,074
Home Equity - closed end	1	12
Home Equity - open end	336	392
Commercial & Industrial (Non-Real Estate)	61	98
Consumer (excluding dealer)	94	4
Total	15,557	18,129
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 _5

4. Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Credit cards	$ 2,979	$ 3,184
Dealer finance	103,922	97,523
Performing [Member]
Credit cards	2,979	3,175
Dealer finance	103,745	97,368
Non performing [Member]
Credit cards	0	9
Dealer finance	$ 177	$ 155

5. Employee Benefit Plan (Detai

5. Employee Benefit Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract]
Service cost	$ 184	$ 192	$ 369	$ 384
Interest cost	137	124	274	248
Expected return on plan assets	(201)	(231)	(403)	(462)
Amortization of prior service cost	(4)	(4)	(8)	(8)
Amortization of net loss	71	76	141	152
Net periodic pension cost	$ 187	$ 157	$ 373	$ 314

6. Fair Value (Details)

6. Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
U. S. Government sponsored enterprises	$ 7,990	$ 7,886
Mortgage-backed obligations of federal agencies	364	403
Total securities available for sale	8,354	8,289
Derivatives (Indexed CD product)	67	44
Fair Value Inputs Level 1 [Member]
U. S. Government sponsored enterprises	0	0
Mortgage-backed obligations of federal agencies	0	0
Total securities available for sale	0	0
Derivatives (Indexed CD product)	0	0
Fair Value Inputs Level 2 [Member]
U. S. Government sponsored enterprises	7,990	7,886
Mortgage-backed obligations of federal agencies	364	403
Total securities available for sale	8,354	8,289
Derivatives (Indexed CD product)	67	44
Fair Value Inputs Level 3 [Member]
U. S. Government sponsored enterprises	0	0
Mortgage-backed obligations of federal agencies	0	0
Total securities available for sale	0	0
Derivatives (Indexed CD product)	$ 0	$ 0

6. Fair Value (Details 1)

6. Fair Value (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Impaired loans	$ 6,145	$ 3,289
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	6,145	3,289
Construction/Land Development [Member]
Impaired loans	2,007	2,684
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	2,007	2,684
Real Estate [Member]
Impaired loans	408	415
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	408	415
Commercial Real Estate [Member]
Impaired loans	3,545
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	3,545
Consumer [Member]
Impaired loans	3	6
Consumer [Member] | Fair Value Inputs Level 1 [Member]
Impaired loans	0	0
Consumer [Member] | Fair Value Inputs Level 2 [Member]
Impaired loans	0	0
Consumer [Member] | Fair Value Inputs Level 3 [Member]
Impaired loans	3	6
Dealer Finance [Member]
Impaired loans	182	184
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	$ 182	$ 184

6. Fair Value (Details 2)

6. Fair Value (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Impaired loans	$ 6,145	$ 3,289
Fair Value Inputs Level 3 [Member]
Impaired loans	6,145	3,289
Other real estate owned	$ 1,969	$ 2,443
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 lmpaired 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	11.80%	4.21%
Average other real estate owned	4.00%	8.00%
Fair Value Inputs Level 3 [Member] | Minimum [Member]
Range impaired loans	6.00%	2.00%
Range other real estate owned	2.50%	5.00%
Fair Value Inputs Level 3 [Member] | Maximum [Member]
Range impaired loans	28.00%	9.00%
Range other real estate owned	10.00%	15.00%
Fair Value Inputs Level 1 [Member]
Impaired loans	$ 0	$ 0
Other real estate owned	0	0
Fair Value Inputs Level 2 [Member]
Impaired loans	0	0
Other real estate owned	$ 0	$ 0

7. Disclosures About Fair Val_3

7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents, carrying amount	$ 14,780	$ 10,912
Cash and cash equivalents, fair value	14,780	10,912
Securities, carrying amount	8,478	8,412
Securities, fair value	8,478	8,412
Loans held for sale, carrying amount	78,406	55,910
Loans held for sale, fair value	78,406	55,910
Loans held for investment, net, carrying amount	630,357	633,559
Loans held for investment, net, fair value	629,467	613,717
Interest receivable, carrying amount	2,147	2,078
Interest receivable, fair value	2,147	2,078
Bank owned life insurance, carrying amount	19,753	19,464
Bank owned life insurance, fair value	19,753	19,464
Total assets, carrying amount	753,921	730,335
Total assets, fair value	753,031	710,493
Liabilities
Deposits, carrying amount	608,470	591,325
Deposits, fair value	609,236	595,167
Short-term debt, carrying amount	40,000	40,116
Short-term debt, fair value	40,000	40,116
Long-term debt, carrying amount	47,917	40,218
Long-term debt, fair value	48,265	39,609
Interest payable, carrying amount	371	348
Interest payable, fair value	371	348
Total Liabilities, carrying amount	696,758	672,007
Total Liabilities, fair value	697,872	675,240
Fair Value Inputs Level 1 [Member]
Assets:
Cash and cash equivalents, fair value	14,780	10,912
Securities, fair value	0	0
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	14,780	10,912
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	8,478	8,412
Loans held for sale, fair value	78,406	55,910
Loans held for investment, net, fair value	0	0
Interest receivable, fair value	2,147	2,078
Bank owned life insurance, fair value	19,753	19,464
Total assets, fair value	108,784	85,864
Liabilities
Deposits, fair value	462,504	441,319
Short-term debt, fair value	40,000	40,116
Long-term debt, fair value	0	0
Interest payable, fair value	371	348
Total Liabilities, fair value	502,875	481,783
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	629,467	613,717
Interest receivable, fair value	0	0
Bank owned life insurance, fair value	0	0
Total assets, fair value	629,467	613,717
Liabilities
Deposits, fair value	146,732	153,848
Short-term debt, fair value	0	0
Long-term debt, fair value	48,265	39,609
Interest payable, fair value	0	0
Total Liabilities, fair value	$ 194,997	$ 193,457

8. Troubled Debt Restructurin_2

8. Troubled Debt Restructuring (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)Integer	Jun. 30, 2018USD ($)Integer
Number of contracts | Integer	9	16
Pre-modification outstanding recorded investment	$ 1,153	$ 2,453
Post-modification outstanding recorded investment	$ 1,153	$ 2,453
Commercial Real Estate [Member]
Number of contracts | Integer	1	1
Pre-modification outstanding recorded investment	$ 182	$ 1,002
Post-modification outstanding recorded investment	$ 182	$ 1,002
Real Estate [Member]
Number of contracts | Integer	1	2
Pre-modification outstanding recorded investment	$ 193	$ 1,255
Post-modification outstanding recorded investment	$ 193	$ 1,255
Home Equity [Member]
Number of contracts | Integer	1
Pre-modification outstanding recorded investment	$ 720
Post-modification outstanding recorded investment	$ 720
Commercial and Industrial [Member]
Number of contracts | Integer	1
Pre-modification outstanding recorded investment	$ 23
Post-modification outstanding recorded investment	$ 23
Consumer [Member]
Number of contracts | Integer	5	13
Pre-modification outstanding recorded investment	$ 35	$ 196
Post-modification outstanding recorded investment	$ 35	$ 196

9. Accumulated Other Comprehe_3

9. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Unrealized Securities Gains (Losses) [Member]
Beginning balance	$ (94)	$ (20)
Change in unrealized securities gains (losses), net of tax	89	(133)
Ending balance	(5)	(153)
Adjustments Related to Pension Plan [Member]
Beginning balance	(3,875)	(4,122)
Change in unrealized securities gains (losses), net of tax	0	0
Ending balance	(3,875)	(4,122)
Accumulated Other comprehensive Income (Loss) [Member]
Beginning balance	(3,969)	(4,142)
Change in unrealized securities gains (losses), net of tax	89	(133)
Ending balance	$ (3,880)	$ (4,275)

10. Business Segments (Details)

10. Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Interest income	$ 9,782	$ 8,962	$ 19,313	$ 17,705
Service charges on deposits	417	358	803	724
Investment services and insurance income	171	223	322	420
Mortgage banking income, net	815	615	1,345	1,135
Title insurance income	406	306	682	562
Expenses:
Interest Expense	1,726	1,115	3,224	2,094
Provision for loan losses	1,600	1,350	3,050	2,030
Income tax expense	153	159	232	538
Net income (loss)	1,686	1,704	2,950	3,665
Total Assets	806,949		806,949		$ 780,253
Goodwill	2,884		2,884		$ 2,884
F&M Bank Member
Interest income	9,754	8,916	19,254	17,620
Service charges on deposits	417	358	803	724
Investment services and insurance income	0	0	0	0
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Other operating income	665	450	1,110	843
Total income	10,836	9,724	21,167	19,187
Expenses:
Interest Expense	1,732	1,116	3,233	2,097
Provision for loan losses	1,600	1,350	3,050	2,030
Salary and benefit expense	3,285	3,268	6,576	6,564
Other operating expenses	2,739	2,317	5,489	4,496
Total expense	9,356	8,051	18,348	15,187
Net income (loss) before taxes	1,480	1,673	2,819	4,000
Income tax expense	112	144	158	284
Net income (loss)	1,368	1,529	2,661	3,716
Net (income) loss attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	1,368	1,529	2,661	3,716
Total Assets	809,712	772,244	809,712	772,244
Goodwill	2,670	2,670	2,670	2,670
F&M Mortgage
Interest income	43	42	68	71
Service charges on deposits	0	0	0	0
Investment services and insurance income	0	0	0	0
Mortgage banking income, net	815	615	1,345	1,135
Title insurance income	0	47	0	109
Other operating income	28	47	28	48
Total income	886	751	1,441	1,363
Expenses:
Interest Expense	50	31	75	54
Provision for loan losses	0	0	0	0
Salary and benefit expense	489	416	917	831
Other operating expenses	177	246	354	456
Total expense	716	693	1,346	1,341
Net income (loss) before taxes	170	58	95	22
Income tax expense	0	0	0	0
Net income (loss)	170	58	95	22
Net (income) loss attributable to noncontrolling interest	51	16	29	5
Net income attributable to F & M Bank Corp.	119	42	66	17
Total Assets	11,210	8,332	11,210	8,332
Goodwill	47	65	47	65
TEB Life/FMFS
Interest income	41	36	75	71
Service charges on deposits	0	0	0	0
Investment services and insurance income	174	228	325	431
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Other operating income	0	0	0	0
Total income	215	264	400	502
Expenses:
Interest Expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary and benefit expense	69	137	150	283
Other operating expenses	16	18	28	28
Total expense	85	155	178	311
Net income (loss) before taxes	130	109	222	191
Income tax expense	19	21	33	36
Net income (loss)	111	88	189	155
Net (income) loss attributable to noncontrolling interest	0	0	0	0
Net income attributable to F & M Bank Corp.	111	88	189	155
Total Assets	7,332	6,910	7,332	6,910
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	406	259	682	453
Other operating income	0	0	0	0
Total income	406	259	682	453
Expenses:
Interest Expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary and benefit expense	234	179	457	345
Other operating expenses	62	42	124	89
Total expense	296	221	581	434
Net income (loss) before taxes	110	38	101	19
Income tax expense	0	0	0	0
Net income (loss)	110	38	101	19
Net (income) loss attributable to noncontrolling interest	27	0	24	0
Net income attributable to F & M Bank Corp.	83	38	77	19
Total Assets	1,615	707	1,615	707
Goodwill	3	57	3	57
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
Other operating income	(27)	0	(24)	0
Total income	(27)	0	(24)	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	24	15	31	29
Total expense	24	15	31	29
Net income (loss) before taxes	(51)	(15)	(55)	(29)
Income tax expense	22	(6)	41	218
Net income (loss)	(73)	(9)	(96)	(247)
Net (income) loss attributable to noncontrolling interest	(27)	0	(24)	0
Net income attributable to F & M Bank Corp.	(46)	(9)	(72)	(247)
Total Assets	91,674	91,480	91,674	91,480
Goodwill	164	164	164	164
Eliminations
Interest income	(56)	(32)	(84)	(57)
Service charges on deposits	0	0	0	0
Investment services and insurance income	(3)	(5)	(3)	(11)
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Other operating income	0	0	(1)	0
Total income	(59)	(37)	(88)	(68)
Expenses:
Interest Expense	(56)	(32)	(84)	(57)
Provision for loan losses	0	0	0	0
Salary and benefit expense	0	0	0	0
Other operating expenses	(3)	(5)	(4)	(11)
Total expense	(59)	(37)	(88)	(68)
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	(114,594)	(109,005)	(114,594)	(109,005)
Goodwill	0	0	0	0
F&M Bank Corp Consolidated
Interest income	9,782	8,962	19,313	17,705
Service charges on deposits	417	358	803	724
Investment services and insurance income	171	223	322	420
Mortgage banking income, net	815	615	1,345	1,135
Title insurance income	406	306	682	562
Other operating income	666	497	1,113	891
Total income	12,257	10,961	23,578	21,437
Expenses:
Interest Expense	1,726	1,115	3,224	2,094
Provision for loan losses	1,600	1,350	3,050	2,030
Salary and benefit expense	4,077	4,000	8,100	8,023
Other operating expenses	3,015	2,633	6,022	5,087
Total expense	10,418	9,098	20,396	17,234
Net income (loss) before taxes	1,839	1,863	3,182	4,203
Income tax expense	153	159	232	538
Net income (loss)	1,686	1,704	2,950	3,665
Net (income) loss attributable to noncontrolling interest	51	16	29	5
Net income attributable to F & M Bank Corp.	1,635	1,688	2,921	3,660
Total Assets	806,949	770,668	806,949	770,668
Goodwill	$ 2,884	$ 2,956	$ 2,884	$ 2,956

11. Debt (Details Narrative)

11. Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Short term debt	$ 40,000	$ 40,116
Weighted average interest rate	2.08%	1.96%
Debt obligations	$ 47,911	$ 40,125
Note payable balance	$ 6

12. Revenue Recognition (Detail

12. Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total noninterest income	$ 2,475	$ 1,999	$ 4,265	$ 3,732
Service Charges on Deposits
Total noninterest income	417	358	803	724
Investment Services and Insurance Income
Total noninterest income	171	223	322	420
Title Insurance Income
Total noninterest income	406	306	682	562
ATM and check card fees
Total noninterest income	529	388	898	735
Other
Total noninterest income	153	135	281	250
Noninterest Income (in-scope of Topic 606)
Total noninterest income	1,676	1,409	2,986	2,691
Noninterest Income (out-of-scope of Topic 606)
Total noninterest income	$ 799	$ 590	$ 1,279	$ 1,041

13. Leases (Details)

13. Leases (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
Lease liabilities	$ 974
Right-of-use assets	$ 1,005
Weighted average remaining lease term	8 years 4 days
Weighted average discount rate	3.51%

13. Leases (Details 1)

13. Leases (Details 1) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 32	$ 64
Total lease cost	32	64
Cash paid for amounts included in the measurement of lease liabilities	$ 38	$ 75

13. Leases (Details 2)

13. Leases (Details 2) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
Six months ending December 31, 2019	$ 79
Twelve months ending December 31, 2020	128
Twelve months ending December 31, 2021	110
Twelve months ending December 31, 2022	105
Twelve months ending December 31, 2023	93
Twelve months ending December 31, 2024	92
Thereafter	627
Total undiscounted cash flows	1,234
Discount	(260)
Lease liabilities	$ 974