F & M Bank (FMBM) 10-Q 10 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 08, 2021
Cover [Abstract]
Entity Registrant Name	F&M BANK CORP
Entity Central Index Key	0000740806
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		3,391,197
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-13273
Entity Incorporation State Country Code	VA
Entity Tax Identification Number	54-1280811
Entity Address Address Line 1	P. O. Box 1111
Entity Address City Or Town	Timberville
Entity Address State Or Province	VA
Entity Address Postal Zip Code	22853
City Area Code	540
Local Phone Number	896-8941
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 11,969,000	$ 11,181,000
Money market funds and interest-bearing deposits in other banks	2,942,000	1,244,000
Federal funds sold	165,666,000	65,983,000
Cash and cash equivalents	180,577,000	78,408,000
Securities:
Held to maturity, at amortized cost - fair value of $125 in 2021 and 2020, respectively	125,000	125,000
Available for sale, at fair value	271,445,000	106,899,000
Other investments	9,426,000	10,874,000
Loans held for sale, at fair value	3,610,000	14,307,000
Loans held for sale, participations	0	44,372,000
Loans held for investment, net of deferred fees and costs	655,831,000	661,329,000
Less: allowance for loan losses	(8,431,000)	(10,475,000)
Net loans held for investment	647,400,000	650,854,000
Bank premises and equipment, net	17,193,000	17,909,000
Bank premises held for sale	300,000	520,000
Interest receivable	2,579,000	2,727,000
Goodwill	3,082,000	2,884,000
Bank owned life insurance	22,714,000	22,647,000
Other assets	12,208,000	14,404,000
Total assets	1,170,659,000	966,930,000
Liabilities
Noninterest bearing	268,961,000	236,915,000
Interest bearing	761,331,000	581,667,000
Total deposits	1,030,292,000	818,582,000
Long-term debt	21,764,000	33,202,000
Other liabilities	16,925,000	19,517,000
Total liabilities	1,068,981,000	871,301,000
Commitments and contingencies		0
Stockholders' Equity
Series A Preferred Stock $25 liquidation preference, 400,000 shares authorized, 205,327 shares issued and outstanding at September 30, 2021 and December 31, 2020	4,558,000	4,558,000
Common stock, $5 par value, 6,000,000 shares authorized, 200,000 designated, 3,211,574 and 3,203,372 shares issued and outstanding at September 30, 2021 and December 31, 2020	16,058,000	16,017,000
Additional paid in capital - common stock	7,113,000	6,866,000
Retained earnings	77,858,000	71,205,000
Accumulated other comprehensive loss	(3,909,000)	(3,017,000)
Total stockholders' equity	101,678,000	95,629,000
Total liabilities and stockholders' equity	$ 1,170,659,000	$ 966,930,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Assets
Held to maturity - fair value	$ 125,000	$ 125,000
Stockholders' Equity
Common stock, shares par value	$ 5	$ 5
Common stock, shares designated	2,000,000	2,000,000
Common stock, shares authorized	6,000,000	6,000,000
Common stock, shares issued	3,211,574	3,203,372
Common stock, shares outstanding	3,211,574	3,203,372
Preferred stock, shares par value	$ 25	$ 25
Preferred stock, shares authorized	400,000	400,000
Preferred stock, shares issued	205,327	205,327
Preferred stock, shares outstanding	205,327	205,327

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest and Dividend income
Interest and fees on loans held for investment	$ 8,201,000	$ 8,345,000	$ 24,588,000	$ 25,341,000
Interest and fees on loans held for sale	24,000	384,000	161,000	977,000
Interest from money market funds and federal funds sold	55,000	15,000	99,000	336,000
Interest on debt securities	775,000	434,000	1,772,000	626,000
Total interest and dividend income	9,055,000	9,178,000	26,620,000	27,280,000
Interest expense
Total interest on deposits	851,000	1,074,000	2,464,000	3,685,000
Interest from long-term debt	238,000	350,000	762,000	789,000
Interest from short-term debt			0	41,000
Total interest expense	1,089,000	1,424,000	3,226,000	4,515,000
Net interest income	7,966,000	7,754,000	23,394,000	22,765,000
(Recovery of) Provision for Loan Losses	(235,000)	1,000,000	(2,210,000)	3,300,000
Net Interest Income After (Recovery of) Provision for Loan Losses	8,201,000	6,754,000	25,604,000	19,465,000
Noninterest income
Service charges on deposit accounts	300,000	302,000	839,000	888,000
Investment services and insurance income, net	210,000	167,000	736,000	525,000
Mortgage banking income, net	1,176,000	1,621,000	3,874,000	4,521,000
Title insurance income	556,000	543,000	1,607,000	1,386,000
Income on bank owned life insurance	169,000	171,000	502,000	458,000
Low income housing partnership losses	(215,000)	(223,000)	(646,000)	(670,000)
ATM and check card fees	595,000	499,000	1,715,000	1,394,000
Other operating income	165,000	148,000	770,000	513,000
Total noninterest income	2,956,000	3,228,000	9,397,000	9,015,000
Noninterest expense
Salaries	3,655,000	3,470,000	10,540,000	9,414,000
Employee benefits	1,047,000	611,000	3,319,000	2,835,000
Occupancy expense	295,000	278,000	933,000	850,000
Equipment expense	292,000	296,000	888,000	892,000
FDIC insurance assessment	105,000	95,000	309,000	284,000
Other real estate owned, net	0	201,000	0	341,000
Advertising expense	221,000	136,000	554,000	440,000
Legal and professional fees	267,000	160,000	712,000	441,000
Noninterest expense - ATM and check card fee	276,000	264,000	827,000	777,000
Telecommunication and data processing expense	613,000	464,000	1,735,000	1,543,000
Directors fees	111,000	96,000	369,000	325,000
Bank franchise tax	180,000	174,000	532,000	558,000
Other operating expenses	1,439,000	1,159,000	3,742,000	3,089,000
Total noninterest expense	8,501,000	7,404,000	24,631,000	21,808,000
Impairment of long-lived assets			171,000	19,000
Income before income taxes	2,656,000	2,578,000	10,370,000	6,672,000
Income tax expense	319,000	372,000	1,012,000	545,000
Net Income	2,337,000	2,206,000	9,358,000	6,127,000
Dividends paid/accumulated on preferred stock	65,000	65,000	196,000	197,000
Net income available to common stockholders	2,272,000	2,141,000	9,162,000	5,825,000
Net income attributable to non-controlling interest			0	105,000
Net Income attributable to F & M Bank Corp.	$ 2,337,000	$ 2,206,000	$ 9,358,000	$ 6,022,000
Per Common Share Data
Net income - basic	$ 0.71	$ 0.67	$ 2.86	$ 1.82
Net income - diluted	0.66	0.65	2.72	1.76
Cash dividends on common stock	$ 0.26	$ 0.26	$ 0.78	$ 0.78
Weighted average common shares outstanding - basic	3,210,577	3,197,718	3,207,916	3,198,691
Weighted average common shares outstanding - diluted	3,415,904	3,404,378	3,436,034	3,421,290

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements of Comprehensive Income (Unaudited)
Net Income attributable to F & M Bank Corp.	$ 2,337,000	$ 2,206,000	$ 9,358,000	$ 6,022,000
Other comprehensive (loss) income:
Unrealized holding (losses) gains on available-for sale securities	(72,000)	303,000	(1,129,000)	220,000
Tax effect	15,000	(64,000)	237,000	(46,000)
Unrealized holding (losses) gains, net of tax	(57,000)	239,000	(892,000)	174,000
Total other comprehensive (loss) income	(57,000)	239,000	(892,000)	174,000
Comprehensive income attributable to F&M Bank Corp.	2,280,000	2,445,000	8,466,000	6,196,000
Comprehensive income attributable to noncontrolling interests	0	0	0	105,000
Total comprehensive income	$ 2,280,000	$ 2,445,000	$ 8,466,000	$ 6,301,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Changes in Stockholders Equity (Unaudited) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated other comprehensive loss	Noncontrolling Interest
Balance, amount at Dec. 31, 2019	$ 91,575,000	$ 4,592,000	$ 16,042,000	$ 7,510,000	$ 66,008,000	$ (3,211,000)	$ 634,000
Net Income	6,127,000	0	0	0	6,022,000	0	105,000
Other comprehensive income	174,000	0	0	0	0	174,000	0
Distributions to noncontrolling interest	(177,000)	0	0	0	0	0	(177,000)
Dividends on preferred stock ($1.28 per share)	(197,000)	0	0	0	(197,000)	0	0
Dividends on common stock ($.78 per share)	(2,496,000)	0	0	0	(2,496,000)	0	0
Purchase of noncontrolling interest	(1,050,000)	0	0	(488,000)	0	0	(562,000)
Common stock repurchased (18,472 shares)	(473,000)	0	(92,000)	(381,000)	0	0	0
Common (9,257 shares)	197,000	0	46,000	151,000	0	0	0
Balance, amount at Sep. 30, 2020	93,680,000	4,592,000	15,996,000	6,792,000	69,337,000	(3,037,000)	0
Balance, amount at Jun. 30, 2020	92,058,000	4,592,000	15,980,000	6,744,000	68,018,000	(3,276,000)
Net Income	2,206,000	0	0	0	2,206,000	0
Other comprehensive income	239,000
Common (9,257 shares)	(65,000)	0	0	0	(65,000)	0
Other comprehensive (loss)	239,000	0	0	0	0	239,000
-	(822,000)	0	0	0	(822,000)	0
Common stock issued (3,345 shares)	64,000	0	16,000	48,000	0	0
Balance, amount at Sep. 30, 2020	93,680,000	4,592,000	15,996,000	6,792,000	69,337,000	(3,037,000)	0
Balance, amount at Dec. 31, 2020	95,629,000	4,558,000	16,017,000	6,866,000	71,205,000	(3,017,000)	0
Net Income	9,358,000	0	0	0	9,358,000	0	0
Other comprehensive income	(892,000)	0	0	0	0	(892,000)	0
Dividends on common stock ($.78 per share)	(2,509,000)	0	0	0	(2,509,000)	0	0
Dividends on preferred stock ($.96 per share)	(196,000)	0	0	0	(196,000)	0	0
Common stock issued (6,870 shares)	191,000	0	34,000	157,000	0	0	0
Common stock issued for Stock-based Compensation (1,332 shares)	36,000		7,000	29,000
Common stock vested for Stock-based Compensation (13,630 shares)	61,000	0	0	61,000	0	0	0
Balance, amount at Sep. 30, 2021	101,678,000	4,558,000	16,058,000	7,113,000	77,858,000	(3,909,000)	0
Balance, amount at Jun. 30, 2021	100,212,000	4,558,000	16,047,000	7,034,000	76,425,000	(3,852,000)
Net Income	2,337,000	0	0	0	2,337,000	0
Other comprehensive income	(57,000)	0	0	0	0	(57,000)
Common (9,257 shares)	(65,000)	0	0	0	(65,000)	0
-	(839,000)	0	0	0	(839,000)	0
Common stock vested for Stock-based Compensation (13,630 shares)	26,000	0	0	26,000	0	0
Common stock issued (2,235 shares)	64,000	0	11,000	53,000	0	0
Balance, amount at Sep. 30, 2021	$ 101,678,000	$ 4,558,000	$ 16,058,000	$ 7,113,000	$ 77,858,000	$ (3,909,000)	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net income	$ 9,358,000	$ 6,127,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	891,000	940,000
Amortization of intangibles	53,000	42,000
Amortization of securities	739,000	120,000
Proceeds from loans held for sale originated	170,129,000	145,553,000
Loans held for sale originated	(155,044,000)	(157,618,000)
Gain on sale of loans held for sale originated	(4,388,000)	(3,861,000)
(Recovery of) Provision for loan losses	(2,210,000)	3,300,000
Decrease (increase) in interest receivable	148,000	(727,000)
(Increase) in deferred taxes	(138,000)	(330,000)
(Decrease) increase in taxes payable	(469,000)	0
Decrease in other assets	2,040,000	554,000
(Decrease) increase in accrued expenses	(1,609,000)	4,039,000
Amortization of limited partnership investments	658,000	670,000
Income from life insurance investment	(502,000)	(458,000)
(Gain) on the sale of fixed assets	0	(14,000)
Loss on sale and valuation adjustments for other real estate owned and bank premises held for sale	0	326,000
Impairment of long-lived assets	171,000	19,000
Net cash provided by (used in) operating activities	19,827,000	(1,423,000)
Cash flows from investing activities
Purchase of investments available for sale and other investments	(179,735,000)	(123,804,000)
Proceeds from maturity of investments available for sale	13,321,000	21,185,000
Proceeds from the redemption of restricted stock, net	790,000	1,167,000
Purchase of investments held to maturity	0	(125,000)
Proceeds from maturity of investments held to maturity	0	125,000
Net decrease (increase) in loans held for investment	5,664,000	(69,964,000)
Net decrease (increase) in loans held for sale participations	44,372,000	(5,315,000)
Proceeds from the sale of fixed assets	150,000	34,000
Proceeds from the sale of other real estate owned	0	997,000
Cash paid for noncontrolling interest	0	(806,000)
Net purchase of property and equipment	(496,000)	(648,000)
Proceeds from life insurance benefits	421,000	0
Cash received in branch acquisition (net of cash paid)	13,946,000	0
Net cash (used) in investing activities	(101,567,000)	(177,154,000)
Cash flows from financing activities
Net change in deposits	197,764,000	151,827,000
Net change in short-term debt	0	(10,000,000)
Dividends paid in cash	(2,705,000)	(2,693,000)
Proceeds from issuance of common stock	288,000	197,000
Repurchase of common stock	0	(473,000)
Issuance of long-term debt	0	71,903,000
Repayments of long-term debt	(11,438,000)	(18,838,000)
Net cash provided by financing activities	183,909,000	191,923,000
Net increase in Cash and Cash Equivalents	102,169,000	13,346,000
Cash and cash equivalents, beginning of period	78,408,000	75,804,000
Cash and cash equivalents, end of period	180,577,000	89,150,000
Supplemental Cash Flow information:
Cash paid for: Interest	3,578,000	4,559,000
Taxes	2,012,000	445,000
Supplemental non-cash disclosures:
Change in unrealized (loss) on securities available for sale	(1,129,000)	211,000
Bank premises and equipment transferred to held for sale	0	520,000
Liability to former noncontrolling interest for remainder of purchase price	0	244,000
Branch purchase:
Tangible assets acquired (net of cash received)	61,000	0
Identifiable intangible assets acquired	73,000	0
Liabilities assumed	$ 14,044,000	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Summary of Significant Accounting Policies
Note 1. Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), 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”). On May 1, 2020 the Bank purchased the noncontrolling interest of VBS Mortgage, LLC and VSTitle, the minority interest for 2020 covers January 1 through March 31, 2020. Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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, 2020 (the “2020 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 in the counties of Rockingham, Shenandoah, and Augusta, and the cities of Harrisonburg, Staunton, Waynesboro and Winchester in Virginia. Services are provided at twelve branch offices and a Dealer Finance Division. A loan production office in Winchester opened during second quarter 2021. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries, TEB Life Insurance Company, 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 affect 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 and fair value. 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. Risk and Uncertainties The coronavirus (“COVID-19”) pandemic spread rapidly across the world in the first quarter of 2020 and was declared a pandemic by the World Health Organization. The government and private sector responses to contain its spread began to significantly affect our operating businesses in March 2020 with branch lobby closings, operations and administrative staff working remotely and the use of virtual meetings. Branches reopened on April 12, 2021 for regular business hours and staff returned to their normal office locations. The continuing effects of COVID-19 will likely affect our operations throughout the remainder of 2021, although the extent and significance remain unknown. The duration and extent of the effects over longer terms cannot be reasonably estimated at this time. The risks and uncertainties resulting from the pandemic may adversely affect our future earnings, cash flows and financial condition, including among others, credit losses resulting from financial stress on borrowers, decreased demand for products and operational failures. In addition, significant assumptions, judgments, and estimates used in the preparation of our financial statements, including those associated with evaluations of goodwill for impairment, and allowance for loan losses, may be subject to adjustments in future periods due to the rapidly changing, uncertain and unprecedented nature of the pandemic. 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 for the three and nine month periods ended September 30, 2021 and 2020. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented (dollars in thousands): For the Nine months ended For the Three months ended For the Nine months ended For the Three months ended September 30, 2021 September 30, 2021 September 30, 2020 September 30, 2020 Earnings available to common stockholders: Net income $ 9,358 $ 2,337 $ 6,127 $ 2,206 Non-controlling interest income - - 105 - Preferred stock dividends 196 65 197 65 Net income available to common stockholders $ 9,162 $ 2,272 $ 5,825 $ 2,141 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated (dollars in thousands): Nine months ended September 30, 2021 Nine months ended September 30, 2020 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 9,162 3,207,916 $ 2.86 $ 5,825 3,198,691 $ 1.82 Effect of Dilutive Securities: Convertible Preferred Stock 196 228,118 (.14 ) 197 222,599 (.06 ) Diluted EPS $ 9,358 3,436,034 $ 2.72 $ 6,022 3,421,290 $ 1.76 Three months ended September 30, 2021 Three months ended September 30, 2020 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,272 3,210,577 $ .71 $ 2,141 3,197,718 $ .67 Effect of Dilutive Securities: Convertible Preferred Stock 65 205,327 (.05 ) 65 206,660 (.02 ) Diluted EPS $ 2,337 3,415,904 $ .66 $ 2,206 3,404,378 $ .65

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2021
Investment Securities
Note 2. Investment Securities	Note 2. Investment Securities Investment securities available for sale are carried in the consolidated balance sheets at their approximate fair value. Investment securities held to maturity are carried in the consolidated balance sheets at their amortized cost at September 30, 2021 and December 31, 2020 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2021 U. S. Treasuries $ 125 $ - $ - $ 125 December 31, 2020 U. S. Treasuries $ 125 $ - $ - $ 125 The amortized cost and fair value of securities available for sale are as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2021 U. S. Treasuries $ 29,771 $ 2 $ 279 $ 29,494 U. S. Government sponsored enterprises 55,243 - 269 54,974 Securities issued by States and political subdivisions in the U.S. 29,854 452 12 30,294 Mortgage-backed obligations of federal agencies 139,176 628 722 139,082 Corporate debt security 17,512 410 321 17,601 Total Securities Available for Sale $ 271,556 $ 1,492 $ 1,603 $ 271,445 December 31, 2020 U. S. Government sponsored enterprises $ 6,000 $ 47 $ - $ 6,047 Securities issued by States and political subdivisions of the U.S. 17,177 515 - 17,692 Mortgage-backed obligations of federal agencies 73,422 502 153 73,771 Corporate debt securities 9,282 121 14 9,389 Total Securities Available for Sale $ 105,881 $ 1,185 $ 167 $ 106,899 The amortized cost and fair value of securities at September 30, 2021, by contractual maturity are shown below (dollars in thousands). 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 Cost Value Cost Value Due in one year or less $ 125 $ 125 $ 10,304 $ 10,358 Due after one year through five years - - 115,175 114,816 Due after five years - - 131,309 131,184 Due after ten years - - 14,768 15,087 Total $ 125 $ 125 $ 271,556 $ 271,445 There were no sales of available for sale securities in the first three quarters of 2021 or 2020. Securities held that are U.S. Agency and Government Sponsored Entities and Agency MBS carry an implicit government guarantee and are not subject to other than temporary impairment evaluation. Other securities were reviewed for impairment. The majority of the securities that are in an unrealized loss positions are U.S. Government sponsored enterprises or mortgage-backed obligations of federal agencies. Three securities issued by States and political subdivisions in the U.S. were in an unrealized loss position for less than 12 months with minimal loss. Seven bank subordinated debt offerings were in a loss position for less than 7 months and totaled $321 thousand. The pricing services tend to not be exact on these offerings because of the marketability of the offering. The Company reviews the relevant ratios on each subordinated debt holding quarterly. No securities were determined to be other than temporarily impaired. A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of September 30, 2021 and December 31, 2020 were as follows: Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2021 U. S. Government treasuries $ 24,496 $ 279 $ - $ - $ 24,496 $ 279 U. S. Government sponsored enterprises 54,973 269 - - 54,973 269 Securities issued by States and political subdivisions in the U.S. 4,988 12 - - 4,988 12 Mortgage-backed obligations of federal agencies 68,183 623 8,718 99 76,901 722 Corporate debt security 5,979 321 - - 5,979 321 Total $ 158,619 $ 1,504 $ 8,718 $ 99 $ 167,337 $ 1,603 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2020 U. S. Government sponsored enterprises $ 73,771 $ 153 $ - $ - $ 73,771 $ 153 Corporate debt security 9,389 14 - - 9,389 14 Total $ 83,160 $ 167 $ - $ - $ 83,160 $ 167 As of September 30, 2021, other investments consist of investments in fifteen low-income housing and historic equity partnerships (carrying basis of $6,977), stock in the Federal Home Loan Bank (carrying basis $858) and various other investments (carrying basis $1,591). The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted as to sales. The fair values of these securities are estimated to approximate their carrying value as of September 30, 2021. At September 30, 2021, the Company was committed to invest an additional $979 in five 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 other liabilities on the consolidated balance sheet. The Company does not have any pledged securities.

Loans

Loans	9 Months Ended
	Sep. 30, 2021
Loans
Note 3. Loans	Note 3. Loans During the pandemic, modifications allowing principal and interest deferrals were granted in connection with COVID-19 relief. These modifications and deferrals were not considered troubled debt restructurings pursuant to interagency guidance issued in March 2020 and the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. As of September 30, 2021 one loan remains in deferral status. Loans held for investment outstanding at September 30, 2021 and December 31, 2020 are summarized as follows (in thousands): 2021 2020 Construction/Land Development $ 70,102 $ 71,467 Farmland 66,367 53,728 Real Estate 145,647 163,018 Multi-Family 4,632 5,918 Commercial Real Estate 156,504 142,516 Home Equity – closed end 6,365 8,476 Home Equity – open end 42,872 46,613 Commercial & Industrial – Non-Real Estate 48,133 65,470 Consumer 8,239 9,405 Dealer Finance 104,418 91,861 Credit Cards 2,790 2,857 Gross loans 656,069 661,329 Less: Deferred loan fees, net of costs (238 ) - Total $ 655,831 $ 661,329 The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $159,725 and $173,029 as of September 30, 2021 and December 31, 2020, respectively. The Company maintains a blanket lien on certain loans in its residential real estate, commercial and home equity portfolios. Loans held for sale, at fair value consists of loans originated by F&M Mortgage for sale in the secondary market. The volume of loans fluctuates due to changes in secondary market rates, which affects demand for mortgage loans. Loans held for sale, participations consists of residential mortgage loan participations from Northpointe Bank. Loans held for sale as of September 30, 2021 and December 31, 2020 were $3,610 and $58,679, respectively. The following is a summary of information pertaining to impaired loans (dollars in thousand): September 30, 2021 December 31, 2020 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment(1) Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 733 $ 733 $ - $ 1,693 $ 1,693 $ - Farmland 2,371 2,371 - - - - Real Estate 2,977 2,977 - 6,648 6,648 - Multi-Family - - - - - - Commercial Real Estate 8,524 8,524 - 8,592 8,656 - Home Equity – closed end 161 161 - 687 687 - Home Equity – open end - - - 151 151 - Commercial & Industrial – Non-Real Estate - - - 8 8 - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 15 15 - 8 8 - 14,781 14,781 - 17,787 17,851 - Impaired loans with a valuation allowance Construction/Land Development - - - - - - Farmland - - - 1,737 1,737 370 Real Estate 1,180 1,180 169 7,143 7,143 365 Multi-Family - - - - - - Commercial Real Estate 6,034 6,034 617 7,464 7,464 1,833 Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - 1 1 1 Credit cards - - - - - - Dealer Finance 103 103 14 147 147 15 7,317 7,317 800 16,492 16,492 2,584 Total impaired loans $ 22,098 $ 22,098 $ 800 $ 34,279 $ 34,343 $ 2,584 1 The following is a summary of the average investment and interest income recognized for impaired loans (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 $ 757 $ 7 $ 1,547 $ 19 $ 1,213 $ 23 $ 1,853 $ 59 Farmland 2,376 9 - - 1,186 117 - - Real Estate 3,016 39 4,908 78 4,813 126 5,024 214 Multi-Family - - - - - - - - Commercial Real Estate 9,408 53 1,561 (19 ) 8,558 176 1,063 30 Home Equity – closed end 415 5 701 5 424 16 708 26 Home Equity – open end - - - - 76 - - - Commercial & Industrial – Non-Real Estate 1 - 13 1 4 - 14 1 Consumer - - - - - - - - Credit Cards - - - - - - - - Dealer Finance 16 - 30 (1 ) 12 1 48 1 15,989 113 8,760 83 16,286 459 8,710 331 Impaired loans with a valuation allowance: Construction/Land Development $ - $ - $ 309 $ 28 $ - $ - $ 649 $ 28 Farmland - - 1,763 35 869 - 1.842 219 Real Estate 1,399 - 9,456 119 4,162 32 9.849 381 Multi-Family - - - - - - - - Commercial Real Estate 5,844 40 3,566 72 6,749 131 2.465 121 Home Equity – closed end - - - - - - - - Home Equity – open end - - 151 2 - - 151 6 Commercial & Industrial – Non-Real Estate - - - - - - 96 - Consumer - - 1 - 1 - 3 - Credit Card - - - - - - - - Dealer Finance 110 2 142 4 125 7 145 9 7,353 42 15,388 260 11,906 170 15.200 764 Total Impaired Loans $ 23,342 $ 155 $ 24,148 $ 343 $ 28,192 $ 629 $ 23.910 $ 1,095 The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of September 30, 2021 and December 31, 2020: September 30, 2021 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 Construction/Land Development $ 61 $ 39 $ - $ 100 $ 70,002 $ 70,102 $ 267 $ - Farmland 21 - - 21 66,346 66,367 1,395 - Real Estate 1,328 156 464 1,948 143,699 145,647 842 - Multi-Family - - - - 4,632 4,632 - - Commercial Real Estate - 108 - 108 156,396 156,504 2,877 - Home Equity – closed end - - - - 6,365 6,365 - - Home Equity – open end - - - - 42,872 42,872 - - Commercial & Industrial – Non- Real Estate 21 40 - 61 48,072 48,133 - - Consumer 26 8 - 34 8,205 8,239 - - Dealer Finance 705 67 - 772 103,646 104,418 29 - Credit Cards 14 - 20 34 2,756 2,790 - 20 Less: Deferred loan fees, net of costs - - - - (238 ) (238 ) - - Total $ 2,176 $ 418 $ 484 $ 3,078 $ 652,753 $ 655,831 $ 5,410 $ 20 December 31, 2020 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 Construction/Land Development $ 2,557 $ - $ - $ 2,557 $ 68,910 $ 71,467 $ 251 $ - Farmland - - - - 53,728 53,728 1,737 - Real Estate 1,724 512 304 2,540 160,478 163,018 368 102 Multi-Family - - - - 5,918 5,918 - - Commercial Real Estate 554 - 920 1,474 141,042 142,516 3,820 - Home Equity – closed end 3 30 - 33 8,443 8,476 - - Home Equity – open end 716 - 212 928 45,685 46,613 212 - Commercial & Industrial – Non- Real Estate 95 44 - 139 65,331 65,470 3 - Consumer 39 - - 39 9,366 9,405 - - Dealer Finance 694 157 - 851 91,010 91,861 44 - Credit Cards 45 - - 45 2,812 2,857 - - Total $ 6,427 $ 743 $ 1,436 $ 8,606 $ 652,723 $ 661,329 $ 6,435 $ 102 On September 30, 2021 and December 31, 2020, other real estate owned did not include any foreclosed residential real estate. The Company has $281 thousand of consumer mortgages for which foreclosure was in process on September 30, 2021. Nonaccrual loans on September 30, 2021 would have earned approximately $67 thousand in interest income for the quarter had they been accruing loans.

Allowance for Loan Losses

Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2021
Allowance for Loan Losses
Note 4. Allowance for Loan Losses	Note 4. Allowance for Loan Losses A summary of changes in the allowance for loan losses (dollars in thousands) for September 30, 2021 and December 31, 2020 is as follows: September 30, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 1,249 $ - $ 307 $ (631 ) $ 925 $ - $ 925 Farmland 731 - - (262 ) 469 - 469 Real Estate 1,624 - 34 (323 ) 1,335 169 1,166 Multi-Family 54 - - (25 ) 29 - 29 Commercial Real Estate 3,662 - 19 (945 ) 2,736 617 2,119 Home Equity – closed end 55 - - (11 ) 44 - 44 Home Equity – open end 463 - 13 (68 ) 408 - 408 Commercial & Industrial – Non-Real Estate 363 - 30 (95 ) 298 - 298 Consumer 521 18 20 3 526 - 526 Dealer Finance 1,674 746 520 146 1,594 14 1,580 Credit Cards 79 30 17 1 67 - 67 Total $ 10,475 $ 794 $ 960 $ (2,210 ) $ 8,431 $ 800 $ 7,631 December 31, 2020 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 1,190 $ 7 $ - $ 66 $ 1,249 $ - $ 1,249 Farmland 668 - - 63 731 370 361 Real Estate 1,573 158 7 202 1,624 365 1,259 Multi-Family 20 - - 34 54 - 54 Commercial Real Estate 1,815 64 11 1,900 3,662 1,833 1,829 Home Equity – closed end 42 - - 13 55 - 55 Home Equity – open end 457 34 3 37 463 - 463 Commercial & Industrial – Non-Real Estate 585 138 19 (103 ) 363 - 363 Consumer 186 89 50 374 521 1 520 Dealer Finance 1,786 1,551 784 655 1,674 15 1,659 Credit Cards 68 123 75 59 79 - 79 Total $ 8,390 $ 2,164 $ 949 $ 3,300 $ 10,475 $ 2,584 $ 7,891 The following table presents the recorded investment in loans (dollars in thousands) based on impairment method as of September 30, 2021 and December 31, 2020: September 30, 2021 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 70,102 $ 733 $ 69,369 Farmland 66,367 2,371 63,996 Real Estate 145,647 4,157 141,490 Multi-Family 4,632 - 4,632 Commercial Real Estate 156,504 14,558 141,946 Home Equity – closed end 6,365 161 6,204 Home Equity –open end 42,872 - 42,872 Commercial & Industrial – Non-Real Estate 48,133 - 48,133 Consumer 8,239 - 8,239 Dealer Finance 104,418 118 104,300 Credit Cards 2,790 - 2,790 Gross loans 656,069 22,098 633,971 Less: Deferred loan fees, net of costs (238 ) - (238 ) Total $ 665,831 $ 22,098 $ 633,733 December 31, 2020 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 71,467 $ 1,693 $ 69,774 Farmland 53,728 1,737 51,991 Real Estate 163,018 13,791 149,227 Multi-Family 5,918 - 5,918 Commercial Real Estate 142,516 16,056 126,460 Home Equity – closed end 8,476 687 7,789 Home Equity –open end 46,613 151 46,462 Commercial & Industrial – Non-Real Estate 65,470 8 65,462 Consumer 9,405 1 9,404 Dealer Finance 91,861 155 91,706 Credit Cards 2,857 - 2,857 Total $ 661,329 $ 34,279 $ 627,050 During the third quarter of 2021, Management changed the historical net charge off lookback period from two years to three years for all segments given recent asset quality trends and the impact of government programs in response to the COVID-19 pandemic on charge off experience. Management believes the three year lookback period is more indicative of the risk remaining in the loan portfolio. This change and the effect on provision expense for the nine months ended September 30, 2021 and the allowance for loan losses at September 30, 2021 was as follows: Calculated Provision Based on Current Methodology Current Provision Based on Prior Methodology Difference Construction/Land Development $ (631 ) $ (952 ) $ 321 Farmland (262 ) (262 ) - Real Estate (323 ) (325 ) 2 Multi-Family (25 ) (25 ) - Commercial Real Estate (945 ) (1,611 ) 666 Home Equity – closed end (11 ) (11 ) - Home Equity – open end (68 ) (102 ) 34 Commercial & Industrial – Non-Real Estate (95 ) (111 ) 16 Consumer 3 (400 ) 403 Dealer Finance 146 17 129 Credit Cards 1 (1 ) 2 $ (2,210 ) $ (3,783 ) $ 1,573 The following table shows the Company’s loan portfolio broken down by internal loan grade (dollars in thousands) as of September 30, 2021 and December 31, 2020: September 30, 2021 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 $ - $ 6 $ 8,747 $ 41,664 $ 17,535 $ 1,883 $ 267 $ - $ 70,102 Farmland 57 298 6,755 40,732 15,471 1,659 1,395 - 66,367 Real Estate - 1,591 33,758 63,923 28,714 12,585 5,076 - 145,647 Multi-Family - - 1,590 1,748 1,164 130 - - 4,632 Commercial Real Estate - 4,543 32,466 61,433 30,433 14,847 12,782 - 156,504 Home Equity – closed end - 64 1,253 3,244 715 1,089 - - 6,365 Home Equity – open end - 1,259 16,395 21,253 2,223 1,526 216 - 42,872 Commercial & Industrial -Non-Real Estate - 716 9,425 21,316 16,086 569 21 - 48,133 Consumer (excluding dealer) - 477 3,120 3,600 1,020 22 - - 8,239 Gross Loans $ 57 $ 8,954 $ 113,509 $ 258,913 $ 113,361 $ 34,310 $ 19,757 $ - $ 548,861 Less: Deferred loan fees, net of costs (238 ) Total $ 548,623 Credit Cards Dealer Finance Performing $ 2,770 $ 104,389 Non-performing 20 29 Total $ 2,790 $ 104,418 December 31, 2020 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 $ - $ 142 $ 8,448 $ 40,126 $ 18,226 $ 4,274 $ 251 $ - $ 71,467 Farmland 58 459 11,707 26,899 11,846 1,022 1,737 - 53,728 Real Estate - 2,283 39,223 66,698 32,302 6,977 15,535 - 163,018 Multi-Family - - 1,075 3,509 1,334 - - - 5,918 Commercial Real Estate - 4,114 31,205 47,477 26,677 18,637 14,406 - 142,516 Home Equity – closed end - 124 2,479 3,289 759 1,795 30 - 8,476 Home Equity – open end - 1,705 17,716 22,014 3,171 1,477 530 - 46,613 Commercial & Industrial - Non-Real Estate 90 1,524 7,601 17,050 38,290 913 2 - 65,470 Consumer (excluding dealer) - 173 3,461 3,975 1,790 6 - - 9,405 Total $ 148 $ 10,524 $ 122,915 $ 231,037 $ 134,395 $ 35,101 $ 32,491 $ - $ 566,611 Credit Cards Dealer Finance Performing $ 2,857 $ 91,817 Non-performing - 44 Total $ 2,857 $ 91,861 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.

Employee Benefit Plan

Employee Benefit Plan	9 Months Ended
	Sep. 30, 2021
Employee Benefit Plan
Note 5. Employee Benefit Plan	Note 5. Employee Benefit Plan The Bank has a qualified noncontributory defined benefit pension plan which covers substantially all of its full-time employees hired before April 1, 2012. The benefits are primarily based on years of service and earnings. The Company uses December 31 st The following is a summary of net periodic pension costs for the three and nine month periods ended September 30, 2021 and 2020 (dollars in thousands): Nine Months Ended Three Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Service cost $ 648 $ 606 $ 216 $ 202 Interest cost 285 314 95 105 Expected return on plan assets (594 ) (55 ) (198 ) (18 ) Amortization of prior service cost - (9 ) - (3 ) Amortization of net loss 216 166 72 55 Net periodic pension cost $ 555 $ 1,022 $ 185 $ 341

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2021
Fair Value
Note 6. Fair Value	Note 6. Fair Value The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Accounting guidance for fair value excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The Company records fair value adjustments to certain assets and liabilities and determines fair value disclosures utilizing a definition of fair value of assets and liabilities that states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Additional considerations are involved to determine the fair value of financial assets in markets that are not active. The Company uses a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The carrying value of restricted Federal Reserve Bank and Federal Home Loan Bank stock approximates fair value based upon the redemption provisions of each entity and is therefore excluded from the following table. Loans Held for Sale The Company uses the fair value accounting for its entire portfolio of originated loans held for sale in accordance with ASC 820 – Fair Value Measurement and Disclosures. Fair value of the Company’s originated loans held for sale through F&M Mortgage is based on observable market prices for similar instruments traded in the secondary mortgage loan markets in which the Company conducts business. The Company’s portfolio of loans held for sale through F&M Mortgage is classified as Level 2. Gains and losses on the sale of loans are recorded within mortgage banking income, net on the Consolidated Statements of Income. Derivative assets – IRLCs The Company recognizes IRLCs at fair value based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best-efforts basis while taking into consideration the probability that the rate lock commitments will close. All of the Company’s IRLCs are classified as Level 2. Derivative Asset/Liability – Forward Sale Commitments The Company uses the fair value accounting for its forward sales commitments related to IRLCs and LHFS. Best efforts sales commitments are entered into for loans intended for sale in the secondary market at the time the borrower commitment is made. The best efforts commitments are valued using the committed price to the counter-party against the current market price of the interest rate lock commitment or mortgage loan held for sale. All the Company’s forward sale commitments are classified Level 2. Derivative Asset/Liability – Indexed Certificate of Deposit The Company’s derivatives, which are associated with the Indexed Certificate of Deposit (ICD) product once offered, 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. This product is no longer offered, however there are a few certificates of deposits that have not matured. The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 (dollars in thousands): September 30, 2021 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 3,610 $ - $ 3,610 $ - IRLC 333 - 333 - U. S. Treasury securities 29,494 - 29,494 - U. S. Government sponsored enterprises 54,974 - 54,974 - Securities issued by States and political subdivisions in the U. S. 30,294 - 30,294 - Mortgage-backed obligations of federal agencies 139,082 - 139,082 - Corporate debt securities 17,601 - 17,601 - Forward Sales Commitments 145 - 145 - Assets at Fair Value $ 275,533 $ - $ 275,533 $ - Liabilities: $ 3 $ - $ 3 $ - $ 3 $ - $ 3 $ - December 31, 2020 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 14,307 $ - $ 14,307 $ - IRLC 816 - 816 - U.S. Government sponsored enterprises 6,047 - 6,047 - Securities issued by States and political subdivisions of the US 17,692 - 17,692 - Mortgage-backed obligations of federal agencies 73,771 - 73,771 - Corporate debt securities 9,389 - 9,389 - Assets at Fair Value $ 122,022 $ - $ 122,022 $ - Liabilities: Derivatives – ICD $ 2 $ - $ 2 $ - Forward Sales Commitments 60 - 60 - Liabilities at Fair Value $ 62 $ - $ 62 $ - 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: 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. Impaired Loans, continued 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 “liquidation” value of independent appraisals or evaluations. The value of real estate collateral is determined by an independent appraisal utilizing an income or market valuation approach. Appraisals conducted by an independent, licensed appraiser outside of the Company as observable market data is categorized as Level 3. The value of business equipment is based upon an outside appraisal (Level 3) if deemed significant, or the net book value on the applicable business’ financial statements (Level 3) if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). As of September 30, 2021 and December 31, 2020, the fair value measurements for impaired loans with specific allocations were primarily based upon the fair value of the collateral. The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands): September 30, 2021 Total Level 1 Level 2 Level 3 Real Estate $ 1,011 $ - $ - $ 1,011 Commercial Real Estate 5,417 - - 5,417 Dealer Finance 89 - - 89 Impaired loans $ 6,517 $ - $ - $ 6,517 December 31, 2020 Total Level 1 Level 2 Level 3 Farmland $ 1,367 $ - $ - $ 1,367 Real Estate 6,778 - - 6,778 Commercial Real Estate 5,631 - - 5,631 Dealer Finance 132 - - 132 Impaired loans $ 13,908 $ - $ - $ 13,908 The following table presents information about Level 3 Fair Value Measurements for September 30, 2021 (dollars in thousands): Fair Value at September 30, 2021 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 6,517 Discounted appraised value Discount for selling costs and marketability 6.77%-14.00% (Average 12.16%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2020 (dollars in thousands): Fair Value at December 31, 2020 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 13,908 Discounted appraised value Discount for selling costs and marketability 9.25%-62.00% (Average 24.39%) Assets Held for Sale Assets held for sale were transferred from bank premises at the lower of cost less accumulated depreciation or fair value at the date of transfer. The Company periodically evaluates the value of assets held for sale and records an impairment charge for any subsequent declines in fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the assets held for sale as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the asset held for sale a s nonrecurring Level 3. September 30, 2021 Total Level 1 Level 2 Level 3 Bank premises held for sale $ 300 $ - $ 300 $ - December 31, 2020 Total Level 1 Level 2 Level 3 Bank premises held for sale $ 520 $ - $ 520 $ - 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 and assets held for sale 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 Company did not have any other real estate owned as of September 30, 2021 and December 31, 2020.

Disclosures About Fair Value of

Disclosures About Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2021
Disclosures About Fair Value of Financial Instruments
Note 7. Disclosures about Fair Value of Financial Instruments	N ote 7. Disclosures about Fair Value of Financial Instruments The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2021 and December 31, 2020. Fair values for September 30, 2021 and December 31, 2020 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 (dollars in thousands): Fair Value Measurements at September 30, 2021 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2021 Assets: Cash and cash equivalents $ 180,577 $ 180,577 $ - $ - $ 180,577 Securities 271,570 - 271,570 - 271,570 Loans held for sale 3,610 - 3,610 - 3,610 IRLC 333 - 333 - 333 Loans held for investment, net 647,400 - - 638,419 638,419 Interest receivable 2,579 - 2,579 - 2,579 Bank owned life insurance 22,714 - 22,714 - 22,714 Forward sales commitments 145 - 145 - 145 Total $ 1,128,928 $ 180,577 $ 300,951 $ 638,419 $ 1,119,947 Liabilities: Deposits $ 1,030,292 $ - $ 918,546 $ 130,382 $ 1,048,928 Long-term debt 21,764 - - 22,388 22,388 Interest payable 298 - 298 - 298 Total $ 1,052,354 $ - $ 918,844 $ 152,770 $ 1,071,614

Troubled Debt Restructuring

Troubled Debt Restructuring	9 Months Ended
	Sep. 30, 2021
Troubled Debt Restructuring
Note 8. Troubled Debt Restructuring	Note 8. Troubled Debt Restructuring In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by adjusting the loan grades of such loans, which are considered in the qualitative factors within the allowance. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance for loan loss methodology. Additionally, specific reserves may be established on restructured loans which are evaluated individually for impairment. During the nine months ended September 30, 2021, there were two loan modifications that were considered to be troubled debt restructurings. One of these loans was modified during the three months ended June 30, 2021 and one loan modification that would be considered a troubled debt restructuring was modified during the first quarter of 2021. 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. Nine months ended September 30, 2021 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Farmland 1 $ 976 $ 976 Real Estate 1 109 109 Total 2 $ 1,085 $ 1,085 On September 30, 2021, 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 nine months ended September 30, 2020, there were four loan modifications that were considered to be troubled debt restructurings. Two of these loans was modified during the three months ended September 30, 2020 and two loan modifications considered a troubled debt restructuring were modified during the second quarter of 2020. 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. Nine months ended September 30, 2020 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Consumer 4 $ 26 $ 26 On September 30, 2020, 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.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2021
Accumulated Other Comprehensive Loss
Note 9. Accumulated Other Comprehensive Loss	Note 9. Accumulated Other Comprehensive Loss The balances in accumulated other comprehensive loss are shown in the following tables for September 30, 2021 and 2020 (dollars in thousands): Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2020 $ 804 $ (3,821 ) $ (3,017 ) Change in unrealized securities gains (losses), net of tax (892 ) - (892 ) Balance at September 30, 2021 $ (88 ) $ (3,821 ) $ (3,909 ) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ (7 ) $ (3,204 ) $ (3,211 ) Change in unrealized securities gains (losses), net of tax 174 - 174 Balance at September 30, 2020 $ 167 $ (3,204 ) $ (3,037 ) There were no reclassifications adjustments reported on the consolidated statements of income during the three or nine months ended September 30, 2021 or 2020.

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2021
Business Segments
Note 10. Business Segments	Note 10. Business Segments The Company utilizes its subsidiaries to provide multiple business segments including retail banking, mortgage banking, title insurance services, investment services and credit life and accident and health insurance products related to lending. Revenues from retail banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from title insurance services, investment services and insurance products consist of commissions on products provided. The Company purchased the noncontrolling interest of F&M Mortgage and VSTitle during the second quarter of 2020. The following tables represent revenues and expenses by segment for the three and nine months ended September 30, 2021 and September 30, 2020 (dollars in thousands). Nine Months Ended September 30, 2021 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 26,499 $ 165 $ 85 $ - $ 1 $ (130 ) $ 26,620 Service charges on deposits 839 - - - - - 839 Investment services and insurance income - - 742 - - (6 ) 736 Mortgage banking income, net - 3,874 - - - - 3,874 Title insurance income - - - 1,607 - - 1,607 Other operating income (loss) 2,334 121 - - (114 ) - 2,341 Total income (loss) 29,672 4,160 827 1,607 (113 ) (136 ) 36,017 Expenses: Interest Expense 2,690 115 - - 551 (130 ) 3,226 (Recovery of) loan losses (2,210 ) - - - - - (2,210 ) Salary and benefit expense 10,772 1,902 280 905 - - 13,859 Other operating expenses 9,777 677 37 227 60 (6 ) 10,772 Total expense 21,029 2,694 317 1,132 611 (136 ) 25,647 Net income (loss) before taxes 8,643 1,466 510 475 (724 ) - 10,370 Income tax expense 1,199 - 107 - (294 ) - 1,012 Net Income attributable to F & M Bank Corp. $ 7,444 $ 1,466 $ 403 $ 475 $ (430 ) $ - $ 9,358 Total Assets $ 1,177,613 $ 10,255 $ 8,434 $ 2,802 $ 113,627 $ (142,072 ) $ 1,170,659 Goodwill $ 2,868 $ 47 $ - $ 3 $ 164 $ - $ 3,082 Three months ended September 30, 2021 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,010 $ 41 $ 26 $ - $ 1 $ (22 ) $ 9,055 Service charges on deposits 300 - - - - - 300 Investment services and insurance income - - 213 - - (3 ) 210 Mortgage banking income, net - 1,176 - - - - 1,176 Title insurance income - - - 556 - - 556 Other operating income (loss) 711 41 - - (38 ) - 714 Total income (loss) 10,021 1,258 239 556 (38 ) (25 ) 12,011 Expenses: Interest Expense 919 17 - - 175 (22 ) 1,089 (Recovery of) loan losses (235 ) - - - - - (235 ) Salary and benefit expense 3,660 620 99 323 - - 4,702 Other operating expenses 3,477 213 18 73 21 (3 ) 3,799 Total expense 7,821 850 117 396 196 (25 ) 9,355 Net income (loss) before taxes 2,200 408 122 160 (234 ) - 2,656 Income tax expense 277 - 26 - 16 - 319 Net Income attributable to F & M Bank Corp. $ 1,923 $ 408 $ 96 $ 160 $ (250 ) $ - $ 2,337 Nine Months Ended September 30, 2020 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 27,199 $ 227 $ 115 $ - $ - $ (261 ) $ 27,280 Service charges on deposits 888 - - - - - 888 Investment services and insurance income - - 543 - - (18 ) 525 Mortgage banking income, net - 4,521 - - - - 4,521 Title insurance income - - - 1,386 - - 1,386 Other operating income (loss) 1,668 126 - - (99 ) - 1,695 Total income (loss) 29,755 4,874 658 1,386 (99 ) (279 ) 36,295 Expenses: Interest Expense 4,419 235 - - - (261 ) 4,393 Provision for loan losses 3,300 - - - 122 - 3,422 Salary and benefit expense 9,623 1,655 231 740 - - 12,249 Other operating expenses 8,622 691 42 190 32 (18 ) 9,559 Total expense 25,964 2,581 273 930 154 (279 ) 29,623 Net income (loss) before taxes 3,791 2,293 385 456 (253 ) - 6,672 Income tax expense 527 - 59 - (41 ) - 545 Net income (loss) 3,264 2,293 326 456 (212 ) - 6,127 Net income attributable to non-controlling interest - 105 - - - - 105 Net Income attributable to F & M Bank Corp. $ 3,264 $ 2,188 $ 326 $ 456 $ (212 ) $ - $ 6,022 Total Assets $ 1,019,005 $ 24,589 $ 7,911 $ 4,664 $ 105,633 $ (146,378 ) $ 1,015,424 Goodwill $ 2,670 $ 47 $ - $ 3 $ 164 $ - $ 2,884 Three Months Ended September 30, 2020 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,163 $ 107 $ 35 $ - $ - $ (127 ) $ 9,178 Service charges on deposits 302 - - - - - 302 Investment services and insurance income - - 176 - - (9 ) 167 Mortgage banking income, net - 1,621 - - - - 1,621 Title insurance income - - - 543 - - 543 Other operating income (loss) 572 69 - - (46 ) - 595 Total income (loss) 10,037 1,797 211 543 (46 ) (136 ) 12,406 Expenses: Interest Expense 1,308 121 - - 122 (127 ) 1,424 Provision for loan losses 1,000 - - - - - 1,000 Salary and benefit expense 3,257 504 73 247 - - 4,081 Other operating expenses 2,899 339 16 61 17 (9 ) 3,223 Total expense 8,464 964 89 308 139 (136 ) 9,828 Net income (loss) before taxes 1,573 833 122 235 (185 ) - 2,578 Income tax expense 337 - 20 - 15 - 372 Net income (loss) $ 1,236 $ 833 $ 102 $ 235 $ (200 ) $ - $ 2,206 Net income attributable to F & M Bank Corp. $ 1,236 $ 833 $ 102 $ 235 $ (200 ) $ - $ 2,206

Debt

Debt	9 Months Ended
	Sep. 30, 2021
Debt
Note 11. Debt	Note 11. 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. There was no short-term debt at September 30, 2021 and December 31, 2020. 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; the weighted average interest rate was .81% at September 30, 2021 and 1.47% at December 31, 2020. The balance of these obligations at September 30, 2021 and December 31, 2020 were $10,000 and $21,268 respectively. FHLB advances include a $6,000 letter of credit at FHLB that is pledged to the Commonwealth of Virginia to secure public funds. On July 29, 2020, the Company sold and issued to certain institutional accredited investors $5,000 in aggregate principal amount of 5.75% fixed rated subordinated notes due July 31, 2027 (the “2027 Notes”) and $7,000 in aggregate principal amount of 6.00% fixed to floating rate subordinated notes due July 31, 2030 (the “2030 Notes”). The 2027 Notes will bear interest at 5.75% per annum, payable semi-annually in arrears. Beginning on July 31, 2022 through maturity, the 2027 Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The 2027 Notes will mature on July 31, 2027. The 2030 Notes will initially bear interest at 6.00% per annum, beginning July 29, 2020 to but excluding July 31, 2025, payable semi-annually in arrears. From and including July 31, 2025 through July 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 593 basis points, payable quarterly in arrears. Beginning on July 31, 2025 through maturity, the 2030 Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The 2030 Notes will mature on July 31, 2030. The subordinated notes, net of issuance costs totaled $11,764 at September 30, 2021.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2021
Revenue Recognition
Note 12. Revenue Recognition	Note 12. Revenue Recognition 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. 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), 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. Gains/Losses on sale of OREO The Company records a gain or loss from the sale of OREO when the control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. The Company recorded no losses on the sale of OREO property in the nine months ended September 30, 2021 and $325 in losses in the nine months ended September 30, 2020, which is presented on the consolidated income statement as a noninterest expense and therefore, not reflected in the table below. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands). Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Noninterest Income In-scope of Topic 606: Service Charges on Deposits $ 839 $ 888 $ 300 $ 302 Investment Services and Insurance Income 736 525 210 167 Title Insurance Income 1,607 1,386 556 543 ATM and check card fees 1,715 1,394 595 499 Other 668 476 154 193 Noninterest Income (in-scope of Topic 606) 5,565 4,669 1,815 1,704 Noninterest Income (out-of-scope of Topic 606) 3,832 4,346 1,141 1,524 Total Noninterest Income $ 9,397 $ 9,015 $ 2,956 $ 3,228 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2021 and December 31, 2020, 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.

Leases

Leases	9 Months Ended
	Sep. 30, 2021
Leases
Note 13. Leases	Note 13. 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 the 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): September 30, 2021 Lease Liabilities $ 1,001 Right-of-use assets $ 984 Weighted average remaining lease term 3.57 years Weighted average discount rate 2.97 % For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Lease cost Operating lease cost $ 37 $ 30 $ 88 $ 88 Total lease cost $ 37 $ 30 $ 88 $ 88 Cash paid for amounts included in the measurement of lease liabilities $ 42 $ 28 $ 108 $ 98 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): September 30, 2021 Three months ending December 31, 2021 $ 42 Twelve months ending December 31, 2022 194 Twelve months ending December 31, 2023 135 Twelve months ending December 31, 2024 136 Twelve months ending December 31, 2025 98 Thereafter 588 Total undiscounted cash flows $ 1,193 Discount 192 Lease liabilities $ 1,001

Mortgage Banking and Derivative

Mortgage Banking and Derivatives	9 Months Ended
	Sep. 30, 2021
Mortgage Banking and Derivatives
Note 14. Mortgage Banking and Derivatives	Note 14. Mortgage Banking and Derivatives Loans Held for Sale The Company, through the Bank’s mortgage banking subsidiary, F&M Mortgage Company, originates residential mortgage loans for sale in the secondary market. Residential mortgage loans held for sale are sold to the permanent investor with the mortgage servicing rights released. During the second quarter of 2020, the Company elected to begin using fair value accounting for its entire portfolio of loans held for sale (LHFS) in accordance with ASC 820 – Fair Value Measurement and Disclosures. Fair value of the Company’s LHFS is based on observable market prices for the identical instruments traded in the secondary mortgage loan markets in which the Company conducts business total $3,610 as of September 30, 2021 of which $3,610 is related to unpaid principal. The Company’s portfolio of LHFS is classified as Level 2. Interest Rate Lock Commitments and Forward Sales Commitments The Company, through F&M Mortgage Company, enters into commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed interest rate lock commitments (IRLCs). Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. Upon entering into a commitment to originate a loan, the Company protects itself from changes in interest rates during the period prior to sale by requiring a firm purchase agreement from a permanent investor before a loan can be closed (forward sales commitment). The Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best efforts basis, thus limiting interest rate risk. Certain additional risks exist if the investor fails to meet its purchase obligation; however, based on historical performance and the size and nature of the investors the Company does not expect them to fail to meet their obligation. The Company determines the fair value of the IRLCs based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis while taking into consideration the probability that the rate loan commitments will close. The fair value of these derivative instruments is reported in “Other Assets” in the Consolidated Balance Sheet at September 30, 2021, and totaled $333, with a notional amount of $22,407 and total positions of 91. The fair value of the IRLCs at December 31, 2020 totaled $816, with a notional amount of $31,000 and total positions of 134. Changes in fair value are recorded as a component of “Mortgage banking income, net” in the Consolidated Income Statement for the period ended September 30, 2021. The Company’s IRLCs are classified as Level 2. At September 30, 2021 and December 31, 2020, each IRLC and all LHFS were subject to a forward sales commitment on a best efforts basis. Interest Rate Lock Commitments and Forward Sales Commitments (continued) During the second quarter of 2020, the Company elected to begin using fair value accounting for its forward sales commitments related to IRLCs and LHFS under ASC 825-10-15-4(b). The fair value of forward sales commitments was reported in “Other Assets” in the Consolidated Balance Sheet at September 30, 2021 totaled $145, with a notional amount of $26,041 and total positions of 112. The fair value of forward sales commitments was reported in “Other Liabilities” in the Consolidated Balance Sheet at December 31, 2020 totaled $60, with a notional amount of $46,000 and total positions of 205.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2021
Stock-Based Compensation
Note 15. Stock-Based Compensation	Note 15. Stock-Based Compensation The Company maintains the F & M Bank Corp. 2020 Stock Incentive Plan, which was designed to further the long-term stability and financial success of the Company by attracting and retaining personnel, including employees, directors, and consultants, through the use of stock and stock-based incentives. It was adopted by the Company’s Board, effective upon shareholder approval on May 2, 2020 and will expire on March 18, 2030. The plan provides for the granting of an option, restricted stock, restricted stock unit, stock appreciation right, or stock award to employees, directors, and consultants. It authorizes the issuance of up to 200,000 shares of the Company’s common stock. The Company’s Stock Plan Committee administers the plan, identifies which participants will be granted awards, and determines the terms and conditions applicable to the awards. No shares were awarded during 2020. On March 5, 2021 the Company’s Stock Plan Committee awarded 15,832 shares with a fair value of $423,506 from this plan to selected employees. These shares vest 25% over each of the next four years. The Committee also awarded 1,332 shares with a fair value of $35,631 to directors. These shares will vest upon issuance.

Waynesboro Branch Acquisition

Waynesboro Branch Acquisition	9 Months Ended
	Sep. 30, 2021
Waynesboro Branch Acquisition
Note 16. Waynesboro Branch Acquisition	Note 16. Waynesboro Branch Acquisition On April 26, 2021, the Bank acquired a branch from Carter Bankshares Inc. located in Waynesboro, VA. Pursuant to the transaction, the Bank acquired $14,229 thousand in deposits. In connection with its purchase of the branches, the Bank received a cash payment from Carter Bankshares Inc. of $13,758 thousand, which was net of a premium paid on deposits of $135 thousand. This acquisition provides the Bank with the opportunity to enhance its footprint in Augusta County market. The Company has accounted for the branch purchases under the acquisition method of accounting in accordance with FASB ASC topic 805, “Business Combinations,” whereby the acquired assets and liabilities were recorded by the Bank at their estimated fair values as of their acquisition date. The acquired assets and assumed liabilities of the Waynesboro branch was measured at estimated fair value. Management made significant estimates and exercised significant judgement in accounting for the acquisition of the Waynesboro branch. Deposits were valued based upon interest rates, original and remaining terms and maturities, as well as current rates for similar funds in the same markets. Equipment was acquired based on the remaining book value from Carter Bankshares, Inc., which approximated fair value. The statement of net assets acquired and the resulting goodwill recorded is presented in the following tables (dollars in thousands). As explained in the notes that accompany the following table, the purchased assets, assumed liabilities and identifiable assets were recorded at the acquisition date fair value. Acquired Balances as Recorded by Carter Bankshares Inc. Fair Value Adjustments Acquired Balances as Recorded by Farmers & Merchants Bank Cash and due from banks $ 188 $ - $ 188 Premises and equipment, net 11 - 11 Right-of-use asset 50 - 50 Core deposit intangible - 73 73 Total assets $ 249 $ 73 $ 322 Deposits: Noninterest-bearing $ 1,693 $ - $ 1,693 Interest-bearing 12,401 135 12,536 Total deposits 14,094 135 14,229 Lease Liability 50 - 50 Total liabilities $ 14,144 $ 135 $ 14,279 Net assets acquired $ (13,895 ) $ (62 ) $ (13,957 ) The following table summarizes the acquired assets and assumed liabilities in the purchase as of the acquisition date, and the resulting goodwill of $199 thousand resulting from the transaction (in thousands): Assets acquired at fair value: Cash and cash equivalents $ 188 Premises and equipment, net 11 Right-of-use asset 50 Core deposit intangible 73 Total fair value of assets acquired $ 322 Liabilities assumed at fair value: Deposits $ 14,229 Lease liability 50 Total fair value of liabilities assumed $ 14,279 Net assets acquired at fair value $ (13,957 ) Transaction consideration paid to Carter Bankshares Inc. $ (13,758 ) Amount of goodwill resulting from acquisition $ 199 The total amount of goodwill arising from this transaction of $199 thousand is expected to be deductible for tax purposes, pursuant to section 197 of the Internal Revenue Code.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Mortgage Banking and Derivatives
Note 17. Subsequent Events	Note 17. Subsequent Events On September 1, 2021, the Company gave notice to our Preferred shareholders that we would redeem all Series A Preferred Stock on October 29, 2021. Shareholders could convert their shares to common stock at a conversion rate of $1.111 or redeem their shares for $25.00 per share.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
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), 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”). On May 1, 2020 the Bank purchased the noncontrolling interest of VBS Mortgage, LLC and VSTitle, the minority interest for 2020 covers January 1 through March 31, 2020. Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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, 2020 (the “2020 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 in the counties of Rockingham, Shenandoah, and Augusta, and the cities of Harrisonburg, Staunton, Waynesboro and Winchester in Virginia. Services are provided at twelve branch offices and a Dealer Finance Division. A loan production office in Winchester opened during second quarter 2021. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries, TEB Life Insurance Company, 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 affect 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 and fair value. 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.
Risk and Uncertainties	The coronavirus (“COVID-19”) pandemic spread rapidly across the world in the first quarter of 2020 and was declared a pandemic by the World Health Organization. The government and private sector responses to contain its spread began to significantly affect our operating businesses in March 2020 with branch lobby closings, operations and administrative staff working remotely and the use of virtual meetings. Branches reopened on April 12, 2021 for regular business hours and staff returned to their normal office locations. The continuing effects of COVID-19 will likely affect our operations throughout the remainder of 2021, although the extent and significance remain unknown. The duration and extent of the effects over longer terms cannot be reasonably estimated at this time. The risks and uncertainties resulting from the pandemic may adversely affect our future earnings, cash flows and financial condition, including among others, credit losses resulting from financial stress on borrowers, decreased demand for products and operational failures. In addition, significant assumptions, judgments, and estimates used in the preparation of our financial statements, including those associated with evaluations of goodwill for impairment, and allowance for loan losses, may be subject to adjustments in future periods due to the rapidly changing, uncertain and unprecedented nature of the pandemic.
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 for the three and nine month periods ended September 30, 2021 and 2020. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented (dollars in thousands): For the Nine months ended For the Three months ended For the Nine months ended For the Three months ended September 30, 2021 September 30, 2021 September 30, 2020 September 30, 2020 Earnings available to common stockholders: Net income $ 9,358 $ 2,337 $ 6,127 $ 2,206 Non-controlling interest income - - 105 - Preferred stock dividends 196 65 197 65 Net income available to common stockholders $ 9,162 $ 2,272 $ 5,825 $ 2,141 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated (dollars in thousands): Nine months ended September 30, 2021 Nine months ended September 30, 2020 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 9,162 3,207,916 $ 2.86 $ 5,825 3,198,691 $ 1.82 Effect of Dilutive Securities: Convertible Preferred Stock 196 228,118 (.14 ) 197 222,599 (.06 ) Diluted EPS $ 9,358 3,436,034 $ 2.72 $ 6,022 3,421,290 $ 1.76 Three months ended September 30, 2021 Three months ended September 30, 2020 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,272 3,210,577 $ .71 $ 2,141 3,197,718 $ .67 Effect of Dilutive Securities: Convertible Preferred Stock 65 205,327 (.05 ) 65 206,660 (.02 ) Diluted EPS $ 2,337 3,415,904 $ .66 $ 2,206 3,404,378 $ .65

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2021
Summary of Significant Accounting Policies
Schedule of effect of dilutive preferred stock conversion	For the Nine months ended For the Three months ended For the Nine months ended For the Three months ended September 30, 2021 September 30, 2021 September 30, 2020 September 30, 2020 Earnings available to common stockholders: Net income $ 9,358 $ 2,337 $ 6,127 $ 2,206 Non-controlling interest income - - 105 - Preferred stock dividends 196 65 197 65 Net income available to common stockholders $ 9,162 $ 2,272 $ 5,825 $ 2,141
Schedule of earnings per share	Nine months ended September 30, 2021 Nine months ended September 30, 2020 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 9,162 3,207,916 $ 2.86 $ 5,825 3,198,691 $ 1.82 Effect of Dilutive Securities: Convertible Preferred Stock 196 228,118 (.14 ) 197 222,599 (.06 ) Diluted EPS $ 9,358 3,436,034 $ 2.72 $ 6,022 3,421,290 $ 1.76 Three months ended September 30, 2021 Three months ended September 30, 2020 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 2,272 3,210,577 $ .71 $ 2,141 3,197,718 $ .67 Effect of Dilutive Securities: Convertible Preferred Stock 65 205,327 (.05 ) 65 206,660 (.02 ) Diluted EPS $ 2,337 3,415,904 $ .66 $ 2,206 3,404,378 $ .65

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2021
Investment Securities
Schedule of amortized cost and fair value for securities	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2021 U. S. Treasuries $ 125 $ - $ - $ 125 December 31, 2020 U. S. Treasuries $ 125 $ - $ - $ 125
Schedule of amortized cost and fair value of securities current	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2021 U. S. Treasuries $ 29,771 $ 2 $ 279 $ 29,494 U. S. Government sponsored enterprises 55,243 - 269 54,974 Securities issued by States and political subdivisions in the U.S. 29,854 452 12 30,294 Mortgage-backed obligations of federal agencies 139,176 628 722 139,082 Corporate debt security 17,512 410 321 17,601 Total Securities Available for Sale $ 271,556 $ 1,492 $ 1,603 $ 271,445 December 31, 2020 U. S. Government sponsored enterprises $ 6,000 $ 47 $ - $ 6,047 Securities issued by States and political subdivisions of the U.S. 17,177 515 - 17,692 Mortgage-backed obligations of federal agencies 73,422 502 153 73,771 Corporate debt securities 9,282 121 14 9,389 Total Securities Available for Sale $ 105,881 $ 1,185 $ 167 $ 106,899
Schedule amortized cost and fair value of securities, maturity	Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 125 $ 125 $ 10,304 $ 10,358 Due after one year through five years - - 115,175 114,816 Due after five years - - 131,309 131,184 Due after ten years - - 14,768 15,087 Total $ 125 $ 125 $ 271,556 $ 271,445
Schedule of unrealized losses	Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2021 U. S. Government treasuries $ 24,496 $ 279 $ - $ - $ 24,496 $ 279 U. S. Government sponsored enterprises 54,973 269 - - 54,973 269 Securities issued by States and political subdivisions in the U.S. 4,988 12 - - 4,988 12 Mortgage-backed obligations of federal agencies 68,183 623 8,718 99 76,901 722 Corporate debt security 5,979 321 - - 5,979 321 Total $ 158,619 $ 1,504 $ 8,718 $ 99 $ 167,337 $ 1,603 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2020 U. S. Government sponsored enterprises $ 73,771 $ 153 $ - $ - $ 73,771 $ 153 Corporate debt security 9,389 14 - - 9,389 14 Total $ 83,160 $ 167 $ - $ - $ 83,160 $ 167

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2021
Loans
Schedule of loans outstanding	2021 2020 Construction/Land Development $ 70,102 $ 71,467 Farmland 66,367 53,728 Real Estate 145,647 163,018 Multi-Family 4,632 5,918 Commercial Real Estate 156,504 142,516 Home Equity – closed end 6,365 8,476 Home Equity – open end 42,872 46,613 Commercial & Industrial – Non-Real Estate 48,133 65,470 Consumer 8,239 9,405 Dealer Finance 104,418 91,861 Credit Cards 2,790 2,857 Gross loans 656,069 661,329 Less: Deferred loan fees, net of costs (238 ) - Total $ 655,831 $ 661,329
Summary of information pertaining to impaired loans	September 30, 2021 December 31, 2020 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment(1) Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 733 $ 733 $ - $ 1,693 $ 1,693 $ - Farmland 2,371 2,371 - - - - Real Estate 2,977 2,977 - 6,648 6,648 - Multi-Family - - - - - - Commercial Real Estate 8,524 8,524 - 8,592 8,656 - Home Equity – closed end 161 161 - 687 687 - Home Equity – open end - - - 151 151 - Commercial & Industrial – Non-Real Estate - - - 8 8 - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 15 15 - 8 8 - 14,781 14,781 - 17,787 17,851 - Impaired loans with a valuation allowance Construction/Land Development - - - - - - Farmland - - - 1,737 1,737 370 Real Estate 1,180 1,180 169 7,143 7,143 365 Multi-Family - - - - - - Commercial Real Estate 6,034 6,034 617 7,464 7,464 1,833 Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - 1 1 1 Credit cards - - - - - - Dealer Finance 103 103 14 147 147 15 7,317 7,317 800 16,492 16,492 2,584 Total impaired loans $ 22,098 $ 22,098 $ 800 $ 34,279 $ 34,343 $ 2,584
Summary of the average investment and interest income	Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 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 $ 757 $ 7 $ 1,547 $ 19 $ 1,213 $ 23 $ 1,853 $ 59 Farmland 2,376 9 - - 1,186 117 - - Real Estate 3,016 39 4,908 78 4,813 126 5,024 214 Multi-Family - - - - - - - - Commercial Real Estate 9,408 53 1,561 (19 ) 8,558 176 1,063 30 Home Equity – closed end 415 5 701 5 424 16 708 26 Home Equity – open end - - - - 76 - - - Commercial & Industrial – Non-Real Estate 1 - 13 1 4 - 14 1 Consumer - - - - - - - - Credit Cards - - - - - - - - Dealer Finance 16 - 30 (1 ) 12 1 48 1 15,989 113 8,760 83 16,286 459 8,710 331 Impaired loans with a valuation allowance: Construction/Land Development $ - $ - $ 309 $ 28 $ - $ - $ 649 $ 28 Farmland - - 1,763 35 869 - 1.842 219 Real Estate 1,399 - 9,456 119 4,162 32 9.849 381 Multi-Family - - - - - - - - Commercial Real Estate 5,844 40 3,566 72 6,749 131 2.465 121 Home Equity – closed end - - - - - - - - Home Equity – open end - - 151 2 - - 151 6 Commercial & Industrial – Non-Real Estate - - - - - - 96 - Consumer - - 1 - 1 - 3 - Credit Card - - - - - - - - Dealer Finance 110 2 142 4 125 7 145 9 7,353 42 15,388 260 11,906 170 15.200 764 Total Impaired Loans $ 23,342 $ 155 $ 24,148 $ 343 $ 28,192 $ 629 $ 23.910 $ 1,095
Schedule of recorded investment of past due loans	September 30, 2021 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 Construction/Land Development $ 61 $ 39 $ - $ 100 $ 70,002 $ 70,102 $ 267 $ - Farmland 21 - - 21 66,346 66,367 1,395 - Real Estate 1,328 156 464 1,948 143,699 145,647 842 - Multi-Family - - - - 4,632 4,632 - - Commercial Real Estate - 108 - 108 156,396 156,504 2,877 - Home Equity – closed end - - - - 6,365 6,365 - - Home Equity – open end - - - - 42,872 42,872 - - Commercial & Industrial – Non- Real Estate 21 40 - 61 48,072 48,133 - - Consumer 26 8 - 34 8,205 8,239 - - Dealer Finance 705 67 - 772 103,646 104,418 29 - Credit Cards 14 - 20 34 2,756 2,790 - 20 Less: Deferred loan fees, net of costs - - - - (238 ) (238 ) - - Total $ 2,176 $ 418 $ 484 $ 3,078 $ 652,753 $ 655,831 $ 5,410 $ 20 December 31, 2020 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 Construction/Land Development $ 2,557 $ - $ - $ 2,557 $ 68,910 $ 71,467 $ 251 $ - Farmland - - - - 53,728 53,728 1,737 - Real Estate 1,724 512 304 2,540 160,478 163,018 368 102 Multi-Family - - - - 5,918 5,918 - - Commercial Real Estate 554 - 920 1,474 141,042 142,516 3,820 - Home Equity – closed end 3 30 - 33 8,443 8,476 - - Home Equity – open end 716 - 212 928 45,685 46,613 212 - Commercial & Industrial – Non- Real Estate 95 44 - 139 65,331 65,470 3 - Consumer 39 - - 39 9,366 9,405 - - Dealer Finance 694 157 - 851 91,010 91,861 44 - Credit Cards 45 - - 45 2,812 2,857 - - Total $ 6,427 $ 743 $ 1,436 $ 8,606 $ 652,723 $ 661,329 $ 6,435 $ 102

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2021
Allowance for Loan Losses
Summary loan loss allowance transactions	September 30, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 1,249 $ - $ 307 $ (631 ) $ 925 $ - $ 925 Farmland 731 - - (262 ) 469 - 469 Real Estate 1,624 - 34 (323 ) 1,335 169 1,166 Multi-Family 54 - - (25 ) 29 - 29 Commercial Real Estate 3,662 - 19 (945 ) 2,736 617 2,119 Home Equity – closed end 55 - - (11 ) 44 - 44 Home Equity – open end 463 - 13 (68 ) 408 - 408 Commercial & Industrial – Non-Real Estate 363 - 30 (95 ) 298 - 298 Consumer 521 18 20 3 526 - 526 Dealer Finance 1,674 746 520 146 1,594 14 1,580 Credit Cards 79 30 17 1 67 - 67 Total $ 10,475 $ 794 $ 960 $ (2,210 ) $ 8,431 $ 800 $ 7,631 December 31, 2020 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 1,190 $ 7 $ - $ 66 $ 1,249 $ - $ 1,249 Farmland 668 - - 63 731 370 361 Real Estate 1,573 158 7 202 1,624 365 1,259 Multi-Family 20 - - 34 54 - 54 Commercial Real Estate 1,815 64 11 1,900 3,662 1,833 1,829 Home Equity – closed end 42 - - 13 55 - 55 Home Equity – open end 457 34 3 37 463 - 463 Commercial & Industrial – Non-Real Estate 585 138 19 (103 ) 363 - 363 Consumer 186 89 50 374 521 1 520 Dealer Finance 1,786 1,551 784 655 1,674 15 1,659 Credit Cards 68 123 75 59 79 - 79 Total $ 8,390 $ 2,164 $ 949 $ 3,300 $ 10,475 $ 2,584 $ 7,891
Schedule of recorded investment in loans	September 30, 2021 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 70,102 $ 733 $ 69,369 Farmland 66,367 2,371 63,996 Real Estate 145,647 4,157 141,490 Multi-Family 4,632 - 4,632 Commercial Real Estate 156,504 14,558 141,946 Home Equity – closed end 6,365 161 6,204 Home Equity –open end 42,872 - 42,872 Commercial & Industrial – Non-Real Estate 48,133 - 48,133 Consumer 8,239 - 8,239 Dealer Finance 104,418 118 104,300 Credit Cards 2,790 - 2,790 Gross loans 656,069 22,098 633,971 Less: Deferred loan fees, net of costs (238 ) - (238 ) Total $ 665,831 $ 22,098 $ 633,733 December 31, 2020 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 71,467 $ 1,693 $ 69,774 Farmland 53,728 1,737 51,991 Real Estate 163,018 13,791 149,227 Multi-Family 5,918 - 5,918 Commercial Real Estate 142,516 16,056 126,460 Home Equity – closed end 8,476 687 7,789 Home Equity –open end 46,613 151 46,462 Commercial & Industrial – Non-Real Estate 65,470 8 65,462 Consumer 9,405 1 9,404 Dealer Finance 91,861 155 91,706 Credit Cards 2,857 - 2,857 Total $ 661,329 $ 34,279 $ 627,050 Calculated Provision Based on Current Methodology Current Provision Based on Prior Methodology Difference Construction/Land Development $ (631 ) $ (952 ) $ 321 Farmland (262 ) (262 ) - Real Estate (323 ) (325 ) 2 Multi-Family (25 ) (25 ) - Commercial Real Estate (945 ) (1,611 ) 666 Home Equity – closed end (11 ) (11 ) - Home Equity – open end (68 ) (102 ) 34 Commercial & Industrial – Non-Real Estate (95 ) (111 ) 16 Consumer 3 (400 ) 403 Dealer Finance 146 17 129 Credit Cards 1 (1 ) 2 $ (2,210 ) $ (3,783 ) $ 1,573
Schedule of loan portfolio	September 30, 2021 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 $ - $ 6 $ 8,747 $ 41,664 $ 17,535 $ 1,883 $ 267 $ - $ 70,102 Farmland 57 298 6,755 40,732 15,471 1,659 1,395 - 66,367 Real Estate - 1,591 33,758 63,923 28,714 12,585 5,076 - 145,647 Multi-Family - - 1,590 1,748 1,164 130 - - 4,632 Commercial Real Estate - 4,543 32,466 61,433 30,433 14,847 12,782 - 156,504 Home Equity – closed end - 64 1,253 3,244 715 1,089 - - 6,365 Home Equity – open end - 1,259 16,395 21,253 2,223 1,526 216 - 42,872 Commercial & Industrial -Non-Real Estate - 716 9,425 21,316 16,086 569 21 - 48,133 Consumer (excluding dealer) - 477 3,120 3,600 1,020 22 - - 8,239 Gross Loans $ 57 $ 8,954 $ 113,509 $ 258,913 $ 113,361 $ 34,310 $ 19,757 $ - $ 548,861 Less: Deferred loan fees, net of costs (238 ) Total $ 548,623 Credit Cards Dealer Finance Performing $ 2,770 $ 104,389 Non-performing 20 29 Total $ 2,790 $ 104,418 December 31, 2020 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 $ - $ 142 $ 8,448 $ 40,126 $ 18,226 $ 4,274 $ 251 $ - $ 71,467 Farmland 58 459 11,707 26,899 11,846 1,022 1,737 - 53,728 Real Estate - 2,283 39,223 66,698 32,302 6,977 15,535 - 163,018 Multi-Family - - 1,075 3,509 1,334 - - - 5,918 Commercial Real Estate - 4,114 31,205 47,477 26,677 18,637 14,406 - 142,516 Home Equity – closed end - 124 2,479 3,289 759 1,795 30 - 8,476 Home Equity – open end - 1,705 17,716 22,014 3,171 1,477 530 - 46,613 Commercial & Industrial - Non-Real Estate 90 1,524 7,601 17,050 38,290 913 2 - 65,470 Consumer (excluding dealer) - 173 3,461 3,975 1,790 6 - - 9,405 Total $ 148 $ 10,524 $ 122,915 $ 231,037 $ 134,395 $ 35,101 $ 32,491 $ - $ 566,611 Credit Cards Dealer Finance Performing $ 2,857 $ 91,817 Non-performing - 44 Total $ 2,857 $ 91,861

Employee Benefit Plan (Tables)

Employee Benefit Plan (Tables)	9 Months Ended
	Sep. 30, 2021
Employee Benefit Plan
Schedule of employee benefit plan	Nine Months Ended Three Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Service cost $ 648 $ 606 $ 216 $ 202 Interest cost 285 314 95 105 Expected return on plan assets (594 ) (55 ) (198 ) (18 ) Amortization of prior service cost - (9 ) - (3 ) Amortization of net loss 216 166 72 55 Net periodic pension cost $ 555 $ 1,022 $ 185 $ 341

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value
Schedule of assets and liabilities at fair value on recurring basis	September 30, 2021 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 3,610 $ - $ 3,610 $ - IRLC 333 - 333 - U. S. Treasury securities 29,494 - 29,494 - U. S. Government sponsored enterprises 54,974 - 54,974 - Securities issued by States and political subdivisions in the U. S. 30,294 - 30,294 - Mortgage-backed obligations of federal agencies 139,082 - 139,082 - Corporate debt securities 17,601 - 17,601 - Forward Sales Commitments 145 - 145 - Assets at Fair Value $ 275,533 $ - $ 275,533 $ - Liabilities: $ 3 $ - $ 3 $ - $ 3 $ - $ 3 $ - December 31, 2020 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 14,307 $ - $ 14,307 $ - IRLC 816 - 816 - U.S. Government sponsored enterprises 6,047 - 6,047 - Securities issued by States and political subdivisions of the US 17,692 - 17,692 - Mortgage-backed obligations of federal agencies 73,771 - 73,771 - Corporate debt securities 9,389 - 9,389 - Assets at Fair Value $ 122,022 $ - $ 122,022 $ - Liabilities: Derivatives – ICD $ 2 $ - $ 2 $ - Forward Sales Commitments 60 - 60 - Liabilities at Fair Value $ 62 $ - $ 62 $ -
Summarizes measured at fair value on a nonrecurring basis	September 30, 2021 Total Level 1 Level 2 Level 3 Real Estate $ 1,011 $ - $ - $ 1,011 Commercial Real Estate 5,417 - - 5,417 Dealer Finance 89 - - 89 Impaired loans $ 6,517 $ - $ - $ 6,517 December 31, 2020 Total Level 1 Level 2 Level 3 Farmland $ 1,367 $ - $ - $ 1,367 Real Estate 6,778 - - 6,778 Commercial Real Estate 5,631 - - 5,631 Dealer Finance 132 - - 132 Impaired loans $ 13,908 $ - $ - $ 13,908
Schedule Fair Value Measurements Level 3	Fair Value at September 30, 2021 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 6,517 Discounted appraised value Discount for selling costs and marketability 6.77%-14.00% (Average 12.16%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2020 (dollars in thousands): Fair Value at December 31, 2020 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 13,908 Discounted appraised value Discount for selling costs and marketability 9.25%-62.00% (Average 24.39%)
Summary of Other Real Estate Owned	September 30, 2021 Total Level 1 Level 2 Level 3 Bank premises held for sale $ 300 $ - $ 300 $ - December 31, 2020 Total Level 1 Level 2 Level 3 Bank premises held for sale $ 520 $ - $ 520 $ -

Disclosures About Fair Value _2

Disclosures About Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Disclosures About Fair Value of Financial Instruments
Schedule of carrying value and estimated fair value for financial instruments	Fair Value Measurements at September 30, 2021 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2021 Assets: Cash and cash equivalents $ 180,577 $ 180,577 $ - $ - $ 180,577 Securities 271,570 - 271,570 - 271,570 Loans held for sale 3,610 - 3,610 - 3,610 IRLC 333 - 333 - 333 Loans held for investment, net 647,400 - - 638,419 638,419 Interest receivable 2,579 - 2,579 - 2,579 Bank owned life insurance 22,714 - 22,714 - 22,714 Forward sales commitments 145 - 145 - 145 Total $ 1,128,928 $ 180,577 $ 300,951 $ 638,419 $ 1,119,947 Liabilities: Deposits $ 1,030,292 $ - $ 918,546 $ 130,382 $ 1,048,928 Long-term debt 21,764 - - 22,388 22,388 Interest payable 298 - 298 - 298 Total $ 1,052,354 $ - $ 918,844 $ 152,770 $ 1,071,614

Troubled Debt Restructuring (Ta

Troubled Debt Restructuring (Tables)	9 Months Ended
	Sep. 30, 2021
Troubled Debt Restructuring
Schedule of loan restructured	Nine months ended September 30, 2021 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Farmland 1 $ 976 $ 976 Real Estate 1 109 109 Total 2 $ 1,085 $ 1,085 Nine months ended September 30, 2020 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Consumer 4 $ 26 $ 26

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2021
Accumulated Other Comprehensive Loss
Schedule of accumulated other comprehensive loss	Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2020 $ 804 $ (3,821 ) $ (3,017 ) Change in unrealized securities gains (losses), net of tax (892 ) - (892 ) Balance at September 30, 2021 $ (88 ) $ (3,821 ) $ (3,909 ) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ (7 ) $ (3,204 ) $ (3,211 ) Change in unrealized securities gains (losses), net of tax 174 - 174 Balance at September 30, 2020 $ 167 $ (3,204 ) $ (3,037 )

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2021
Business Segments
Schedule of business segments	Nine Months Ended September 30, 2021 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 26,499 $ 165 $ 85 $ - $ 1 $ (130 ) $ 26,620 Service charges on deposits 839 - - - - - 839 Investment services and insurance income - - 742 - - (6 ) 736 Mortgage banking income, net - 3,874 - - - - 3,874 Title insurance income - - - 1,607 - - 1,607 Other operating income (loss) 2,334 121 - - (114 ) - 2,341 Total income (loss) 29,672 4,160 827 1,607 (113 ) (136 ) 36,017 Expenses: Interest Expense 2,690 115 - - 551 (130 ) 3,226 (Recovery of) loan losses (2,210 ) - - - - - (2,210 ) Salary and benefit expense 10,772 1,902 280 905 - - 13,859 Other operating expenses 9,777 677 37 227 60 (6 ) 10,772 Total expense 21,029 2,694 317 1,132 611 (136 ) 25,647 Net income (loss) before taxes 8,643 1,466 510 475 (724 ) - 10,370 Income tax expense 1,199 - 107 - (294 ) - 1,012 Net Income attributable to F & M Bank Corp. $ 7,444 $ 1,466 $ 403 $ 475 $ (430 ) $ - $ 9,358 Total Assets $ 1,177,613 $ 10,255 $ 8,434 $ 2,802 $ 113,627 $ (142,072 ) $ 1,170,659 Goodwill $ 2,868 $ 47 $ - $ 3 $ 164 $ - $ 3,082 Three months ended September 30, 2021 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,010 $ 41 $ 26 $ - $ 1 $ (22 ) $ 9,055 Service charges on deposits 300 - - - - - 300 Investment services and insurance income - - 213 - - (3 ) 210 Mortgage banking income, net - 1,176 - - - - 1,176 Title insurance income - - - 556 - - 556 Other operating income (loss) 711 41 - - (38 ) - 714 Total income (loss) 10,021 1,258 239 556 (38 ) (25 ) 12,011 Expenses: Interest Expense 919 17 - - 175 (22 ) 1,089 (Recovery of) loan losses (235 ) - - - - - (235 ) Salary and benefit expense 3,660 620 99 323 - - 4,702 Other operating expenses 3,477 213 18 73 21 (3 ) 3,799 Total expense 7,821 850 117 396 196 (25 ) 9,355 Net income (loss) before taxes 2,200 408 122 160 (234 ) - 2,656 Income tax expense 277 - 26 - 16 - 319 Net Income attributable to F & M Bank Corp. $ 1,923 $ 408 $ 96 $ 160 $ (250 ) $ - $ 2,337 Nine Months Ended September 30, 2020 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 27,199 $ 227 $ 115 $ - $ - $ (261 ) $ 27,280 Service charges on deposits 888 - - - - - 888 Investment services and insurance income - - 543 - - (18 ) 525 Mortgage banking income, net - 4,521 - - - - 4,521 Title insurance income - - - 1,386 - - 1,386 Other operating income (loss) 1,668 126 - - (99 ) - 1,695 Total income (loss) 29,755 4,874 658 1,386 (99 ) (279 ) 36,295 Expenses: Interest Expense 4,419 235 - - - (261 ) 4,393 Provision for loan losses 3,300 - - - 122 - 3,422 Salary and benefit expense 9,623 1,655 231 740 - - 12,249 Other operating expenses 8,622 691 42 190 32 (18 ) 9,559 Total expense 25,964 2,581 273 930 154 (279 ) 29,623 Net income (loss) before taxes 3,791 2,293 385 456 (253 ) - 6,672 Income tax expense 527 - 59 - (41 ) - 545 Net income (loss) 3,264 2,293 326 456 (212 ) - 6,127 Net income attributable to non-controlling interest - 105 - - - - 105 Net Income attributable to F & M Bank Corp. $ 3,264 $ 2,188 $ 326 $ 456 $ (212 ) $ - $ 6,022 Total Assets $ 1,019,005 $ 24,589 $ 7,911 $ 4,664 $ 105,633 $ (146,378 ) $ 1,015,424 Goodwill $ 2,670 $ 47 $ - $ 3 $ 164 $ - $ 2,884 Three Months Ended September 30, 2020 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,163 $ 107 $ 35 $ - $ - $ (127 ) $ 9,178 Service charges on deposits 302 - - - - - 302 Investment services and insurance income - - 176 - - (9 ) 167 Mortgage banking income, net - 1,621 - - - - 1,621 Title insurance income - - - 543 - - 543 Other operating income (loss) 572 69 - - (46 ) - 595 Total income (loss) 10,037 1,797 211 543 (46 ) (136 ) 12,406 Expenses: Interest Expense 1,308 121 - - 122 (127 ) 1,424 Provision for loan losses 1,000 - - - - - 1,000 Salary and benefit expense 3,257 504 73 247 - - 4,081 Other operating expenses 2,899 339 16 61 17 (9 ) 3,223 Total expense 8,464 964 89 308 139 (136 ) 9,828 Net income (loss) before taxes 1,573 833 122 235 (185 ) - 2,578 Income tax expense 337 - 20 - 15 - 372 Net income (loss) $ 1,236 $ 833 $ 102 $ 235 $ (200 ) $ - $ 2,206 Net income attributable to F & M Bank Corp. $ 1,236 $ 833 $ 102 $ 235 $ (200 ) $ - $ 2,206

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue Recognition
Summary of noninterest income, segregated by revenue streams	Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 Noninterest Income In-scope of Topic 606: Service Charges on Deposits $ 839 $ 888 $ 300 $ 302 Investment Services and Insurance Income 736 525 210 167 Title Insurance Income 1,607 1,386 556 543 ATM and check card fees 1,715 1,394 595 499 Other 668 476 154 193 Noninterest Income (in-scope of Topic 606) 5,565 4,669 1,815 1,704 Noninterest Income (out-of-scope of Topic 606) 3,832 4,346 1,141 1,524 Total Noninterest Income $ 9,397 $ 9,015 $ 2,956 $ 3,228

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2021
Leases
Schedule of leases	September 30, 2021 Lease Liabilities $ 1,001 Right-of-use assets $ 984 Weighted average remaining lease term 3.57 years Weighted average discount rate 2.97 % For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Lease cost Operating lease cost $ 37 $ 30 $ 88 $ 88 Total lease cost $ 37 $ 30 $ 88 $ 88 Cash paid for amounts included in the measurement of lease liabilities $ 42 $ 28 $ 108 $ 98
Schedule of operating lease liabilities and reconciliation	September 30, 2021 Three months ending December 31, 2021 $ 42 Twelve months ending December 31, 2022 194 Twelve months ending December 31, 2023 135 Twelve months ending December 31, 2024 136 Twelve months ending December 31, 2025 98 Thereafter 588 Total undiscounted cash flows $ 1,193 Discount 192 Lease liabilities $ 1,001

Waynesboro Branch Acquisition (

Waynesboro Branch Acquisition (Tables)	9 Months Ended
	Sep. 30, 2021
Stock-Based Compensation
Schedule of acquisition date	Acquired Balances as Recorded by Carter Bankshares Inc. Fair Value Adjustments Acquired Balances as Recorded by Farmers & Merchants Bank Cash and due from banks $ 188 $ - $ 188 Premises and equipment, net 11 - 11 Right-of-use asset 50 - 50 Core deposit intangible - 73 73 Total assets $ 249 $ 73 $ 322 Deposits: Noninterest-bearing $ 1,693 $ - $ 1,693 Interest-bearing 12,401 135 12,536 Total deposits 14,094 135 14,229 Lease Liability 50 - 50 Total liabilities $ 14,144 $ 135 $ 14,279 Net assets acquired $ (13,895 ) $ (62 ) $ (13,957 )
Schedule of statement of net assets acquired	Assets acquired at fair value: Cash and cash equivalents $ 188 Premises and equipment, net 11 Right-of-use asset 50 Core deposit intangible 73 Total fair value of assets acquired $ 322 Liabilities assumed at fair value: Deposits $ 14,229 Lease liability 50 Total fair value of liabilities assumed $ 14,279 Net assets acquired at fair value $ (13,957 ) Transaction consideration paid to Carter Bankshares Inc. $ (13,758 ) Amount of goodwill resulting from acquisition $ 199

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings available to common stockholders:
Net income	$ 2,337	$ 2,206	$ 9,358	$ 6,127
Non-controlling interest income	0	0	0	105
Preferred stock dividends	65	65	196	197
Net income available to common stockholders	$ 2,272	$ 2,141	$ 9,162	$ 5,825

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Summary of Significant Accounting Policies
Basic EPS, income	$ 2,272	$ 2,141	$ 9,162	$ 5,825
Effect of dilutive securities convertible preferred stock, income	65	65	196	197
Net income	$ 2,337	$ 2,206	$ 9,358	$ 6,022
Basic EPS, shares	3,210,577	3,197,718	3,207,916	3,198,691
Effect of dilutive securities convertible preferred stock, shares	205,327,000	206,660,000	228,118,000	222,599,000
Diluted EPS, shares	3,415,904	3,404,378	3,436,034	3,421,290
Basic EPS, per shares	$ 0.71	$ 0.67	$ 2.86	$ 1.82
Effect of dilutive securities convertible preferred stock, per shares	(0.05)	(0.02)	(0.14)	(0.06)
Diluted EPS, per shares	$ 0.66	$ 0.65	$ 2.72	$ 1.76

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Amortized Cost	$ 271,556	$ 105,881
Gross Unrealized Gains	1,492	1,185
Gross Unrealized Losses	1,603	167
Fair Value	271,445	106,899
U. S. Treasury
Amortized Cost	125	125
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 125	$ 125

Investment Securities (Details

Investment Securities (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Amortized Cost	$ 271,556,000	$ 105,881,000
Gross Unrealized Gains	1,492,000	1,185,000
Gross Unrealized Losses	1,603,000	167,000
Fair Value	271,445,000	106,899,000
U. S. Government treasuries [Member]
Amortized Cost	29,771,000
Gross Unrealized Gains	2,000
Gross Unrealized Losses	279,000
Fair Value	29,494,000
U. S. Government sponsored enterprises [Member]
Amortized Cost	55,243,000	6,000,000
Gross Unrealized Gains	0	47,000
Gross Unrealized Losses	269,000	0
Fair Value	54,974,000	6,047,000
Securities issued by States and political subdivisions in the U.S. [Member]
Amortized Cost	29,854,000	17,177,000
Gross Unrealized Gains	452,000	515,000
Gross Unrealized Losses	12,000	0
Fair Value	30,924,000	17,692,000
Mortgage-backed obligations of federal agencies [Member]
Amortized Cost	139,176,000	73,422,000
Gross Unrealized Gains	628,000	502,000
Gross Unrealized Losses	722,000	153,000
Fair Value	139,082,000	73,771,000
Corporate debt security [Member]
Amortized Cost	17,512,000	9,282,000
Gross Unrealized Gains	410,000	121,000
Gross Unrealized Losses	321,000	14,000
Fair Value	$ 17,601,000	$ 9,389,000

Investment Securities (Detail_2

Investment Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Total, amortized cost	$ 125	$ 125
Securities Held to Maturity [Member]
Due in one year or less, amortized cost	125
Due in one year or less, fair value	125
Due after one year through five years, amortized cost	0
Due after one year through five years, fair value	0
Due after five years, amortized cost	0
Due after five years, fair value	0
Due after ten years, amortized cost	0
Due after ten years, fair value	0
Total, amortized cost	125
Total fair value	125
Securities Available for Sale [Member]
Due in one year or less, amortized cost	10,304
Due in one year or less, fair value	10,358
Due after one year through five years, amortized cost	115,175
Due after one year through five years, fair value	114,816
Due after five years, amortized cost	131,309
Due after five years, fair value	131,184
Due after ten years, amortized cost	14,768
Due after ten years, fair value	15,087
Total, amortized cost	271,556
Total fair value	$ 271,445

Investment Securities (Detail_3

Investment Securities (Details 3) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair value less than 12 months	$ 158,619,000	$ 83,160,000
Unrealized losses less than 12 months	1,504,000	167,000
Fair value more than 12 months	8,718,000	0
Unrealized losses more than 12 months	99,000	0
Fair value total	167,337,000	83,160,000
Unrealized losses total	1,603,000	167,000
U. S. Government treasuries [Member]
Fair value less than 12 months	24,496,000
Unrealized losses less than 12 months	279,000
Fair value more than 12 months	0
Unrealized losses more than 12 months	0
Fair value total	24,496,000
Unrealized losses total	279,000
U. S. Government sponsored enterprises [Member]
Fair value less than 12 months	54,973,000	73,771,000
Unrealized losses less than 12 months	269,000	153,000
Fair value more than 12 months	0	0
Unrealized losses more than 12 months	0	0
Fair value total	54,973,000	73,771,000
Unrealized losses total	269,000	153,000
Securities issued by States and political subdivisions in the U.S. [Member]
Fair value less than 12 months	4,988,000
Unrealized losses less than 12 months	12,000
Fair value more than 12 months	0
Unrealized losses more than 12 months	0
Fair value total	4,988,000
Unrealized losses total	12,000
Mortgage-backed obligations of federal agencies [Member]
Fair value less than 12 months	68,183,000
Unrealized losses less than 12 months	623,000
Fair value more than 12 months	8,718,000
Unrealized losses more than 12 months	99,000
Fair value total	76,901,000
Unrealized losses total	722,000
Corporate debt security [Member]
Fair value less than 12 months	5,979,000	9,389,000
Unrealized losses less than 12 months	321,000	14,000
Fair value more than 12 months	0	0
Unrealized losses more than 12 months	0	0
Fair value total	5,979,000	9,389,000
Unrealized losses total	$ 321,000	$ 14,000

Investment Securities (Detail_4

Investment Securities (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Subordinated debt	$ 321
Other investments	9,426	$ 10,874
Twenty Low-Income housing [Member]
Other investments	6,977
Federal Home Loan Bank [Member]
Other investments	1,591
Stock	858
Fifteen low-income housing limited partnerships [Member]
Other investments	$ 979

Loans (Details)

Loans (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Gross loans	$ 656,069,000	$ 661,329,000
Less Deferred loan fees, net of costs	(238,000)	0
Loans outstanding	65,583,000	661,329,000
Commercial Real Estate [Member]
Loans outstanding	156,504,000	142,516,000
Multi-Family [Member]
Loans outstanding	4,632,000	5,918,000
Real Estate [Member]
Loans outstanding	145,647,000	163,018,000
Credit Cards [Member]
Loans outstanding	2,790,000	2,857,000
Construction/Land Development [Member]
Loans outstanding	70,102,000	71,467,000
Farmland [Member]
Loans outstanding	66,367,000	53,728,000
Home Equity - Closed End [Member]
Loans outstanding	6,365,000	8,476,000
Home Equity - Open End [Member]
Loans outstanding	42,872,000	46,613,000
Commercial & Industrial - Non- Real Estate [Member]
Loans outstanding	48,133,000	65,470,000
Consumer [Member]
Loans outstanding	8,239,000	9,405,000
Dealers Finance [Member]
Loans outstanding	$ 104,418,000	$ 91,861,000

Loans (Details 1)

Loans (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Impaired loans without a valuation allowance [Member]
Interest income recognized	$ 113,000	$ 83,000	$ 459,000	$ 331,000
Average recorded investment	15,989,000	8,760,000	16,286,000	8,710,000
Related Allowance	0		0		$ 0
Unpaid principal balance	14,781,000		14,781,000		17,851,000
Recorded investment	14,781,000		14,781,000		17,787,000
Impaired loans without a valuation allowance [Member] | Commercial Real Estate [Member]
Interest income recognized	53,000	(19,000)	176,000	30,000
Average recorded investment	9,408,000	1,561,000	8,558,000	1,063,000
Related Allowance	0		0		0
Unpaid principal balance	8,524,000		8,524,000		8,656,000
Recorded investment	8,524,000		8,524,000		8,592,000
Impaired loans without a valuation allowance [Member] | Multi-Family [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	0	0
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Impaired loans without a valuation allowance [Member] | Real Estate [Member]
Interest income recognized	39,000	78,000	126,000	214,000
Average recorded investment	3,016,000	4,908,000	4,813,000	5,024,000
Related Allowance	0		0		0
Unpaid principal balance	2,977,000		2,977,000		6,648,000
Recorded investment	2,977,000		2,977,000		6,648,000
Impaired loans without a valuation allowance [Member] | Credit Cards [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	0	0
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Impaired loans With a valuation allowance [Member]
Interest income recognized	42,000	260,000	170,000	764,000
Average recorded investment	7,353,000	15,388,000	11,906,000	15,200,000
Related Allowance	800,000		800,000		2,584,000
Unpaid principal balance	7,317,000		7,317,000		16,492,000
Recorded investment	7,317,000		7,317,000		16,492,000
Impaired loans With a valuation allowance [Member] | Commercial Real Estate [Member]
Interest income recognized	40,000	72,000	131,000	121,000
Average recorded investment	5,844,000	3,566,000	6,749,000	2,465,000
Related Allowance	617,000		617,000		1,833,000
Unpaid principal balance	6,034,000		6,034,000		7,464,000
Recorded investment	6,034,000		6,034,000		7,464,000
Impaired loans With a valuation allowance [Member] | Multi-Family [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	0	0
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Impaired loans With a valuation allowance [Member] | Real Estate [Member]
Interest income recognized	0	119,000	32,000	381,000
Average recorded investment	1,399,000	9,456,000	4,162,000	9,849,000
Related Allowance	169,000		169,000		365,000
Unpaid principal balance	1,180,000		1,180,000		7,143,000
Recorded investment	1,180,000		1,180,000		7,143,000
Impaired loans With a valuation allowance [Member] | Credit Cards [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	0	0
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Construction/Land Development [Member] | Impaired loans without a valuation allowance [Member]
Interest income recognized	7,000	19,000	23,000	59,000
Average recorded investment	757,000	1,547,000	1,213,000	1,853,000
Related Allowance	0		0		0
Unpaid principal balance	733,000		733,000		1,693,000
Recorded investment	733,000		733,000		1,693,000
Construction/Land Development [Member] | Impaired loans With a valuation allowance [Member]
Interest income recognized	0	28	0	28
Average recorded investment	0	309,000	0	649,000
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Farmland [Member] | Impaired loans without a valuation allowance [Member]
Interest income recognized	9,000	0	117,000	0
Average recorded investment	2,376,000	0	1,186,000	0
Related Allowance	0		0		0
Unpaid principal balance	2,371,000		2,371,000		0
Recorded investment	2,371,000		2,371,000		0
Home Equity - Close End [Member] | Impaired loans without a valuation allowance [Member]
Interest income recognized	5,000	5,000	16,000	26,000
Average recorded investment	415,000	701	424,000	708,000
Related Allowance	0		0		0
Unpaid principal balance	161,000		161,000		687,000
Recorded investment	161,000		161,000		687,000
Home Equity - Close End [Member] | Impaired loans With a valuation allowance [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	0	0
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Home Equity Open End [Member] | Impaired loans without a valuation allowance [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	76	0
Related Allowance	0		0		0
Unpaid principal balance	0		0		151,000
Recorded investment	0		0		151,000
Home Equity Open End [Member] | Impaired loans With a valuation allowance [Member]
Interest income recognized	0	2,000	0	6,000
Average recorded investment	0	151,000	0	151,000
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Commercial & Industrial (Non-Real Estate) | Impaired loans without a valuation allowance [Member]
Interest income recognized	0	1	0	1
Average recorded investment	1,000	13,000	4,000	14,000
Related Allowance	0		0		0
Unpaid principal balance	0		0		8,000
Recorded investment	0		0		8,000
Consumer [Member] | Impaired loans without a valuation allowance [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	0	0
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Dealers Finance [Member] | Impaired loans without a valuation allowance [Member]
Interest income recognized	0	(1,000)	1,000	1,000
Average recorded investment	16,000	30,000	12,000	48,000
Related Allowance	0		0		0
Unpaid principal balance	15,000		15,000		8,000
Recorded investment	15,000		15,000		8,000
Dealers Finance [Member] | Impaired loans With a valuation allowance [Member]
Interest income recognized	2,000	4,000	7,000	9,000
Average recorded investment	110,000	142,000	125,000	145,000
Related Allowance	14,000		14,000		15,000
Unpaid principal balance	103,000		103,000		147,000
Recorded investment	103,000		103,000		147,000
Farmland [Member] | Impaired loans With a valuation allowance [Member]
Interest income recognized	0	35,000	35	219,000
Average recorded investment	0	1,763,000	1,763,000	1,842,000
Related Allowance	0		0		370,000
Unpaid principal balance	0		0		1,737,000
Recorded investment	0		0		1,737,000
Commercial & Industrial - Non- Real Estate [Member] | Impaired loans With a valuation allowance [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	0	0	96,000
Related Allowance	0		0		0
Unpaid principal balance	0		0		0
Recorded investment	0		0		0
Consumer [Member] | Impaired loans With a valuation allowance [Member]
Interest income recognized	0	0	0	0
Average recorded investment	0	1,000	1,000	3,000
Related Allowance	0		0		1,000
Unpaid principal balance	0		0		1,000
Recorded investment	0		0		1,000
Total impaired loans [Member]
Interest income recognized	155,000	343,000	629,000	1,095,000
Unpaid principal balance	22,098,000		22,098,000		34,343,000
Recorded investment	22,098,000		22,098,000		34,279,000
Related allowance	800,000		800,000		$ 2,584,000
Average recorded investment	$ 23,342,000	$ 24,148,000	$ 28,192,000	$ 23,910,000

Loans (Details 2)

Loans (Details 2) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Total [Member]
Total Past Due	$ 3,078,000	$ 8,606,000
30-59 Days Past Due	2,176,000	6,427,000
60-89 Days Past Due	418,000	743,000
Greater than 90 Days	484,000	1,436,000
Current	652,753,000	652,723,000
Total Loan Receivable	655,831,000	661,329,000
Non-Accrual Loans	5,410,000	6,435,000
Recorded Investment >90 days & accruing	20	102,000
Less: Deferred loan fees, net of costs [Member]
Total Past Due	0
30-59 Days Past Due	0
60-89 Days Past Due	0
Greater than 90 Days	0
Current	(238)
Total Loan Receivable	238,000
Non-Accrual Loans	0
Recorded Investment >90 days & accruing	0
Commercial Real Estate [Member]
Total Past Due	108,000	1,474,000
30-59 Days Past Due	0	554,000
60-89 Days Past Due	108	0
Greater than 90 Days	0	920,000
Current	156,396,000	141,042,000
Total Loan Receivable	156,504,000	142,516,000
Non-Accrual Loans	2,887,000	3,820,000
Recorded Investment >90 days & accruing	0	0
Multi-Family [Member]
Total Past Due	0	0
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Current	4,632,000	5,918,000
Total Loan Receivable	4,632,000	5,918,000
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Real Estate [Member]
Total Past Due	1,948,000	2,540,000
30-59 Days Past Due	1,328,000	1,724,000
60-89 Days Past Due	156,000	512,000
Greater than 90 Days	464,000	304,000
Current	143,699,000	160,478,000
Total Loan Receivable	145,647,000	163,018,000
Non-Accrual Loans	842,000	368,000
Recorded Investment >90 days & accruing	0	102,000
Credit Cards [Member]
Total Past Due	34,000	45,000
30-59 Days Past Due	14,000	45,000
60-89 Days Past Due	0	0
Greater than 90 Days	20	0
Current	2,756,000	2,812,000
Total Loan Receivable	2,790,000	2,857,000
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	20	0
Construction/Land Development [Member]
Total Past Due	100,000	2,557,000
30-59 Days Past Due	61,000	2,557,000
60-89 Days Past Due	39,000	0
Greater than 90 Days	0	0
Current	70,002,000	68,910,000
Total Loan Receivable	70,102,000	71,467,000
Non-Accrual Loans	267,000	251,000
Recorded Investment >90 days & accruing	0	0
Farmland [Member]
Total Past Due	21	0
30-59 Days Past Due	21	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Current	66,346,000	53,728,000
Total Loan Receivable	66,367,000	53,728,000
Non-Accrual Loans	1,395,000	1,737,000
Recorded Investment >90 days & accruing	0	0
Home Equity - Close End [Member]
Total Past Due	0	33,000
30-59 Days Past Due	0	3,000
60-89 Days Past Due	0	30,000
Greater than 90 Days	0	0
Current	6,365,000	8,443,000
Total Loan Receivable	6,365,000	8,476,000
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Home Equity Open End [Member]
Total Past Due	0	928,000
30-59 Days Past Due	0	716,000
60-89 Days Past Due	0	0
Greater than 90 Days	0	212,000
Current	42,872,000	45,685,000
Total Loan Receivable	42,872,000	46,613,000
Non-Accrual Loans	0	212,000
Recorded Investment >90 days & accruing	0	0
Commercial & Industrial - Non- Real Estate [Member]
Total Past Due	61,000	139,000
30-59 Days Past Due	21,000	95,000
60-89 Days Past Due	40	44,000
Greater than 90 Days	0	0
Current	48,072,000	65,331,000
Total Loan Receivable	48,133,000	65,470,000
Non-Accrual Loans	0	3,000
Recorded Investment >90 days & accruing	0	0
Consumer [Member]
Total Past Due	34,000	39,000
30-59 Days Past Due	26,000	39,000
60-89 Days Past Due	8	0
Greater than 90 Days	0	0
Current	8,205,000	9,366,000
Total Loan Receivable	8,239,000	9,405,000
Non-Accrual Loans	0	0
Recorded Investment >90 days & accruing	0	0
Dealers Finance [Member]
Total Past Due	772,000	851,000
30-59 Days Past Due	705,000	694,000
60-89 Days Past Due	67,000	157,000
Greater than 90 Days	0	0
Current	103,646,000	91,010,000
Total Loan Receivable	104,418,000	91,861,000
Non-Accrual Loans	29,000	44,000
Recorded Investment >90 days & accruing	$ 0	$ 0

Loans (Details Narrative)

Loans (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Loans
Loans held for sale	$ 3,610,000	$ 58,679,000
Pledged loans	159,725	$ 173,029
Interest income	67,000
Consumer mortgages	$ 281,000

Allowance for Loan Losses (Deta

Allowance for Loan Losses (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Total [Member]
Beginning Balance	$ 10,475,000	$ 8,390,000
Charge-offs	794,000	2,164,000
Recoveries	960,000	949,000
Provision for Loan Losses	(2,210,000)	3,300,000
Ending Balance	8,431,000	10,475,000
Individually Evaluated for Impairment	800,000	2,584,000
Collectively Evaluated for Impairment	7,631,000	7,891,000
Commercial Real Estate [Member]
Beginning Balance	3,662,000	1,815,000
Charge-offs	0	64,000
Recoveries	19,000	11,000
Provision for Loan Losses	(945,000)	1,900,000
Ending Balance	2,736,000	3,662,000
Individually Evaluated for Impairment	617,000	1,833,000
Collectively Evaluated for Impairment	2,119,000	1,829,000
Multi-Family [Member]
Beginning Balance	54,000	20,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	(25,000)	34,000
Ending Balance	29,000	54,000
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	29,000	54,000
Real Estates [Member]
Beginning Balance	1,624,000	1,573,000
Charge-offs	0	158,000
Recoveries	34,000	7,000
Provision for Loan Losses	(323,000)	202,000
Ending Balance	1,355,000	1,624,000
Individually Evaluated for Impairment	169,000	365,000
Collectively Evaluated for Impairment	1,166,000	1,259,000
Credit Cards [Member]
Beginning Balance	79,000	68,000
Charge-offs	30,000	123,000
Recoveries	17,000	75,000
Provision for Loan Losses	1,000	59,000
Ending Balance	67,000	79,000
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	67,000	79,000
Construction/Land Development [Member]
Beginning Balance	1,249,000	1,190,000
Charge-offs	0	7,000
Recoveries	307,000	0
Provision for Loan Losses	(631,000)	66,000
Ending Balance	925,000	1,249,000
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	925,000	1,249,000
Farmland [Member]
Beginning Balance	731,000	668,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	(262,000)	63,000
Ending Balance	469,000	731,000
Individually Evaluated for Impairment	0	370,000
Collectively Evaluated for Impairment	469,000	361,000
Home Equity - Close End [Member]
Beginning Balance	55,000	42,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	(11,000)	13,000
Ending Balance	44,000	55,000
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	44,000	55,000
Home Equity Open End [Member]
Beginning Balance	463,000	457,000
Charge-offs	0	34,000
Recoveries	13,000	3,000
Provision for Loan Losses	(68,000)	37,000
Ending Balance	408,000	463,000
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	408,000	463,000
Commercial & Industrial (Non-Real Estate)
Beginning Balance	363,000	585,000
Charge-offs	0	138,000
Recoveries	30,000	19,000
Provision for Loan Losses	(95,000)	(103,000)
Ending Balance	298,000	363,000
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Impairment	298,000	363,000
Consumer [Member]
Beginning Balance	521,000	186,000
Charge-offs	18,000	89,000
Recoveries	20,000	50,000
Provision for Loan Losses	3,000	374,000
Ending Balance	526,000	521,000
Individually Evaluated for Impairment	0	1,000
Collectively Evaluated for Impairment	526,000	520,000
Dealers Finance [Member]
Beginning Balance	1,674,000	1,786,000
Charge-offs	746,000	1,551,000
Recoveries	520,000	784,000
Provision for Loan Losses	146,000	655,000
Ending Balance	1,594,000	1,674,000
Individually Evaluated for Impairment	14,000	15,000
Collectively Evaluated for Impairment	$ 1,580,000	$ 1,659,000

Allowance for Loan Losses (De_2

Allowance for Loan Losses (Details 1) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Less: Deferred loan fees, net of costs [Member]
Loan Receivable	$ 238,000
Loan Individually Evaluated For Impairment	0
Collectively Evaluated for Impairment	238,000
Gross loans [Member]
Loan Receivable	656,069,000
Loan Individually Evaluated For Impairment	22,098,000
Collectively Evaluated for Impairment	633,971,000
Real Estates [Member]
Loan Receivable	145,647,000	$ 163,018,000
Loan Individually Evaluated For Impairment	4,157,000	13,791,000
Collectively Evaluated for Impairment	141,490,000	149,227,000
Credit Card [Member]
Loan Receivable	2,790,000	2,857,000
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	2,790,000	2,857,000
Total [Member]
Loan Receivable	655,831,000	661,329,000
Loan Individually Evaluated For Impairment	27,098,000	34,279,000
Collectively Evaluated for Impairment	633,733,000	627,050,000
Commercial Real Estate [Member]
Loan Receivable	156,504,000	142,516,000
Loan Individually Evaluated For Impairment	14,558,000	16,056,000
Collectively Evaluated for Impairment	141,946,000	126,460,000
Multi-Family [Member]
Loan Receivable	4,632,000	5,918,000
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	4,632,000	5,918,000
Construction/Land Development [Member]
Loan Receivable	70,102,000	71,467,000
Loan Individually Evaluated For Impairment	733,000	1,693,000
Collectively Evaluated for Impairment	69,369,000	69,774,000
Farmland [Member]
Loan Receivable	66,367,000	53,728,000
Loan Individually Evaluated For Impairment	2,371,000	1,737,000
Collectively Evaluated for Impairment	66,996,000	51,991,000
Home Equity - Close End [Member]
Loan Receivable	6,365,000	8,476,000
Loan Individually Evaluated For Impairment	161,000	687,000
Collectively Evaluated for Impairment	6,204,000	7,789,000
Home Equity Open End [Member]
Loan Receivable	42,872,000	46,613,000
Loan Individually Evaluated For Impairment	0	151,000
Collectively Evaluated for Impairment	42,872,000	46,462,000
Consumer [Member]
Loan Receivable	8,239,000	9,405,000
Loan Individually Evaluated For Impairment	0	1,000
Collectively Evaluated for Impairment	8,239,000	9,404,000
Dealers Finance [Member]
Loan Receivable	104,418,000	91,861,000
Loan Individually Evaluated For Impairment	118,000	155,000
Collectively Evaluated for Impairment	104,300,000	91,706,000
Commercial & Industrial (Non-Real Estate)
Loan Receivable	48,133,000	65,470,000
Loan Individually Evaluated For Impairment	0	8,000
Collectively Evaluated for Impairment	$ 48,133,000	$ 65,462,000

Allowance for Loan Losses (De_3

Allowance for Loan Losses (Details 2)	Sep. 30, 2021USD ($)
Total [Member]
Calculated Provision Based on Current Methodology	$ (2,210)
Current Provision Based on Prior Methodology	(3,783)
Difference	1,573
Commercial Real Estate [Member]
Calculated Provision Based on Current Methodology	(945)
Current Provision Based on Prior Methodology	(1,611)
Difference	666
Multi-Family [Member]
Calculated Provision Based on Current Methodology	(25)
Current Provision Based on Prior Methodology	(25)
Difference	0
Real Estates [Member]
Calculated Provision Based on Current Methodology	(323)
Current Provision Based on Prior Methodology	(325)
Difference	2
Credit Cards [Member]
Calculated Provision Based on Current Methodology	1
Current Provision Based on Prior Methodology	(1)
Difference	2
Construction/Land Development [Member]
Calculated Provision Based on Current Methodology	(631)
Current Provision Based on Prior Methodology	(952)
Difference	321
Farmland [Member]
Calculated Provision Based on Current Methodology	(262)
Current Provision Based on Prior Methodology	(262)
Difference	0
Home Equity - Close End [Member]
Calculated Provision Based on Current Methodology	(11)
Current Provision Based on Prior Methodology	(11)
Difference	0
Home Equity Open End [Member]
Calculated Provision Based on Current Methodology	(68)
Current Provision Based on Prior Methodology	(102)
Difference	34
Commercial & Industrial (Non-Real Estate)
Calculated Provision Based on Current Methodology	(95)
Current Provision Based on Prior Methodology	(111)
Difference	16
Consumer [Member]
Calculated Provision Based on Current Methodology	3
Current Provision Based on Prior Methodology	(400)
Difference	403
Dealers Finance [Member]
Calculated Provision Based on Current Methodology	146
Current Provision Based on Prior Methodology	17
Difference	$ 129

Allowance for Loan Losses (De_4

Allowance for Loan Losses (Details 3) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Gross loans [Member]
Grade 1 Minimal Risk	$ 57,000
Grade 2 Modest Risk	8,954,000
Grade 3 Average Risk	113,509,000
Grade 4 Acceptable Risk	258,913,000
Grade 5 Marginally Acceptable	113,361,000
Grade 6 Watch	34,310,000
Grade 7 Substandard	19,757,000
Grade 8 Doubtful	0
Total	548,861,000
Commercial Real Estate [Member]
Grade 1 Minimal Risk	0	$ 0
Grade 2 Modest Risk	4,543,000	4,114,000
Grade 3 Average Risk	32,466,000	31,205,000
Grade 4 Acceptable Risk	61,433,000	47,477,000
Grade 5 Marginally Acceptable	30,433,000	26,677,000
Grade 6 Watch	14,847,000	18,637,000
Grade 7 Substandard	12,782,000	14,406,000
Grade 8 Doubtful	0	0
Total	156,504,000	142,516,000
Multi-Family [Member]
Grade 1 Minimal Risk	0	0
Grade 2 Modest Risk	0	0
Grade 3 Average Risk	1,590,000	1,075,000
Grade 4 Acceptable Risk	1,748,000	3,509,000
Grade 5 Marginally Acceptable	1,164,000	1,334,000
Grade 6 Watch	130,000	0
Grade 7 Substandard	0	0
Grade 8 Doubtful	0	0
Total	4,632,000	5,918,000
Real Estate [Member]
Grade 1 Minimal Risk	0	0
Grade 2 Modest Risk	1,591,000	2,283,000
Grade 3 Average Risk	33,758,000	39,223,000
Grade 4 Acceptable Risk	63,923,000	66,698,000
Grade 5 Marginally Acceptable	28,714,000	32,302,000
Grade 6 Watch	12,585,000	6,977,000
Grade 7 Substandard	5,076,000	15,535,000
Total	145,647,000	163,018,000
Grade 8 Doubtful	0	0
Credit Card [Member]
Total	2,770,000	2,857,000
Non-performing	20	0
Performing	2,790,000	2,857,000
Construction/Land Development [Member]
Grade 1 Minimal Risk	0	0
Grade 2 Modest Risk	6,000	142,000
Grade 3 Average Risk	8,747,000	8,448,000
Grade 4 Acceptable Risk	41,664,000	40,126,000
Grade 5 Marginally Acceptable	17,535,000	18,226,000
Grade 6 Watch	1,883,000	4,274,000
Grade 7 Substandard	267,000	251,000
Grade 8 Doubtful	0	0
Total	70,102,000	71,467,000
Farmland [Member]
Grade 1 Minimal Risk	57,000	58,000
Grade 2 Modest Risk	298,000	459,000
Grade 3 Average Risk	6,755,000	11,707,000
Grade 4 Acceptable Risk	40,732,000	26,899,000
Grade 5 Marginally Acceptable	15,471,000	11,846,000
Grade 6 Watch	1,659,000	1,022,000
Grade 7 Substandard	1,395,000	1,737,000
Grade 8 Doubtful	0	0
Total	66,367,000	53,728,000
Home Equity - Close End [Member]
Grade 1 Minimal Risk	0	0
Grade 2 Modest Risk	64,000	124,000
Grade 3 Average Risk	1,253,000	2,479,000
Grade 4 Acceptable Risk	3,244,000	3,289,000
Grade 5 Marginally Acceptable	715,000	759,000
Grade 6 Watch	1,089,000	1,795,000
Grade 7 Substandard	0	30,000
Grade 8 Doubtful	0	0
Total	6,365,000	8,476,000
Home Equity Open End [Member]
Grade 1 Minimal Risk	0	0
Grade 2 Modest Risk	1,259,000	1,705,000
Grade 3 Average Risk	16,395,000	17,716,000
Grade 4 Acceptable Risk	21,253,000	22,014,000
Grade 5 Marginally Acceptable	2,223,000	3,171,000
Grade 6 Watch	1,526,000	1,477,000
Grade 7 Substandard	216,000	530,000
Grade 8 Doubtful	0	0
Total	42,872,000	46,613,000
Commercial & Industrial (Non-Real Estate)
Grade 1 Minimal Risk	0	90,000
Grade 2 Modest Risk	716,000	1,524,000
Grade 3 Average Risk	9,425,000	7,601,000
Grade 4 Acceptable Risk	21,316,000	17,050,000
Grade 5 Marginally Acceptable	16,086,000	38,290,000
Grade 6 Watch	569,000	913,000
Grade 7 Substandard	21,000	2,000
Grade 8 Doubtful	0	0
Total	48,133,000	65,470,000
Consumer [Member]
Grade 1 Minimal Risk	0	0
Grade 2 Modest Risk	477,000	173,000
Grade 3 Average Risk	3,120,000	3,461,000
Grade 4 Acceptable Risk	3,600,000	3,975,000
Grade 5 Marginally Acceptable	1,020,000	1,790,000
Grade 6 Watch	22,000	6,000
Grade 7 Substandard	0	0
Grade 8 Doubtful	0	0
Total	8,239,000	9,405,000
Dealers Finance [Member]
Total	104,389,000	91,817,000
Non-performing	29,000	44,000
Performing	104,418,000	91,861,000
Total [Member]
Grade 1 Minimal Risk	0	148,000
Grade 2 Modest Risk	0	10,524,000
Grade 3 Average Risk	0	122,915,000
Grade 4 Acceptable Risk	0	231,037,000
Grade 5 Marginally Acceptable	0	134,395,000
Grade 6 Watch	0	35,101,000
Grade 7 Substandard	0	32,491,000
Grade 8 Doubtful	0	0
Total	548,623,000	$ 566,611,000
Less: Deferred loan fees, net of costs [Member]
Grade 1 Minimal Risk	0
Grade 2 Modest Risk	0
Grade 3 Average Risk	0
Grade 4 Acceptable Risk	0
Grade 5 Marginally Acceptable	0
Grade 6 Watch	0
Grade 7 Substandard	0
Grade 8 Doubtful	0
Total	$ (238,000)

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee Benefit Plan
Service cost	$ 216	$ 202,000	$ 648,000	$ 606,000
Interest cost	95,000	105,000	285,000	314,000
Expected return on plan assets	(198,000)	(18,000)	(594,000)	(55,000)
Amortization of prior service cost	0	(3,000)	0	(9,000)
Amortization of net loss	72,000	55,000	216,000	166,000
Net periodic pension cost	$ 185,000	$ 341,000	$ 555,000	$ 1,022,000

Fair Value (Details)

Fair Value (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Loans held for sale	$ 3,610,000	$ 14,307,000
IRLC	333,000	816,000
U. S. Treasury securities	29,429,000
U. S. Government sponsored enterprises	54,974,000	6,047,000
Securities issued by States and political subdivisions in the U. S.	30,294,000	17,692,000
Mortgage-backed obligations of federal agencies	139,082,000	73,771,000
Corporate debt securities	17,601,000	9,389,000
Assets at Fair Value	275,333,000	122,022,000
Derivatives ICD	3,000	2,000
Forward sales commitments	145,000	60,000
Total fair value of liabilities	3,000	62,000
Fair Value Inputs Level 1
Loans held for sale	0	0
IRLC	0	0
U. S. Treasury securities	0	0
U. S. Government sponsored enterprises	0	0
Securities issued by States and political subdivisions in the U. S.	0	0
Mortgage-backed obligations of federal agencies	0	0
Corporate debt securities	0	0
Assets at Fair Value	0	0
Derivatives ICD	0	0
Forward sales commitments	0	0
Total fair value of liabilities	0	0
Other debt securities	0	0
Fair Value Inputs Level 2
Loans held for sale	3,610,000	14,307,000
IRLC	333,000	816,000
U. S. Treasury securities	29,494,000
U. S. Government sponsored enterprises	54,974,000	6,047,000
Securities issued by States and political subdivisions in the U. S.	30,294,000	17,692,000
Mortgage-backed obligations of federal agencies	139,082,000	73,771,000
Corporate debt securities	17,601,000	9,389,000
Assets at Fair Value	275,333,000	122,022,000
Derivatives ICD	3,000	2,000
Forward sales commitments	145,000	60,000
Total fair value of liabilities	3,000	62,000
Fair Value Inputs Level 3
Loans held for sale	0	0
IRLC	0	0
U. S. Treasury securities	0	0
U. S. Government sponsored enterprises	0	0
Securities issued by States and political subdivisions in the U. S.	0	0
Mortgage-backed obligations of federal agencies	0	0
Corporate debt securities	0	0
Assets at Fair Value	0	0
Derivatives ICD	0	0
Forward sales commitments	0	0
Total fair value of liabilities	0	0
Other debt securities	$ 0	$ 0

Fair Value (Details 1)

Fair Value (Details 1) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Impaired loans	$ 6,517,000	$ 13,908,000
Dealers Finance [Member]
Impaired loans	89,000	132,000
Farmland [Member]
Impaired loans		1,367,000
Commercial Real Estate [Member]
Impaired loans	5,417,000	5,631,000
Real Estate [Member]
Impaired loans	1,011,000	6,778,000
Fair Value Inputs Level 1
Impaired loans	0	0
Fair Value Inputs Level 1 | Dealers Finance [Member]
Impaired loans	0	0
Fair Value Inputs Level 1 | Farmland [Member]
Impaired loans		0
Fair Value Inputs Level 1 | Commercial Real Estate [Member]
Impaired loans	0	0
Fair Value Inputs Level 1 | Real Estate [Member]
Impaired loans	0	0
Fair Value Inputs Level 2
Impaired loans	0	0
Fair Value Inputs Level 2 | Dealers Finance [Member]
Impaired loans	0	0
Fair Value Inputs Level 2 | Farmland [Member]
Impaired loans		0
Fair Value Inputs Level 2 | Commercial Real Estate [Member]
Impaired loans	0	0
Fair Value Inputs Level 2 | Real Estate [Member]
Impaired loans	0	0
Fair Value Inputs Level 3
Impaired loans	6,517,000	13,908,000
Fair Value Inputs Level 3 | Dealers Finance [Member]
Impaired loans	89,000	132,000
Fair Value Inputs Level 3 | Farmland [Member]
Impaired loans		1,367,000
Fair Value Inputs Level 3 | Commercial Real Estate [Member]
Impaired loans	5,417,000	5,631,000
Fair Value Inputs Level 3 | Real Estate [Member]
Impaired loans	$ 1,011,000	$ 6,778,000

Fair Value (Details 2)

Fair Value (Details 2) - Fair Value Inputs Level 3 - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
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
Average impaired loans	12.16%	24.39%
Impaired loans	$ 6,517	$ 13,908
Minimum [Member]
Range impaired loans	6.77%	9.25%
Maximum [Member]
Range impaired loans	14.00%	62.00%

Fair Value (Details 3)

Fair Value (Details 3) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Assets held for sale	$ 300,000	$ 520,000
Fair Value Inputs Level 1
Assets held for sale	0	0
Fair Value Inputs Level 2
Assets held for sale	300,000	520,000
Fair Value Inputs Level 3
Assets held for sale	$ 0	$ 0

Disclosures About Fair Value _3

Disclosures About Fair Value of Financial Instruments (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
IRLC, carrying amount	$ 333,000	$ 816,000
IRLC, fair value	333,000	816,000
Forward sales commitments, carrying amount	145,000	60,000
Forward sales commitments, fair value	145,000	60,000
Cash and cash equivalents	180,577,000	78,408,000	$ 89,150,000	$ 75,804,000
Cash and cash equivalents, fair value	180,577,000	78,408,000
Securities, carrying amount	271,570,000	107,024,000
Securities, fair value	271,570,000	107,024,000
Loans held for sale, carrying amount	3,610,000	58,679,000
Loans held for sale, fair value	3,610,000	58,679,000
Loans held for investment, net, carrying amount	647,400,000	650,854,000
Loans held for investment, net, fair value	638,419,000	639,472,000
Interest receivable, carrying amount	2,579,000	2,727,000
Interest receivable, fair value	2,579,000	2,727,000
Bank owned life insurance, carrying amount	22,714,000	22,647,000
Bank owned life insurance, fair value	22,714,000	22,647,000
Total assets, carrying amount	1,128,928,000	921,155,000
Total assets, fair value	1,119,947,000	909,773,000
Deposits, carrying amount	1,030,292,000	818,582,000
Deposits, fair value	1,048,928,000	834,857,000
Long-term debt, carrying amount	21,764,000	33,202,000
Long-term debt, fair value	22,328,000	33,834,000
Interest payable, carrying amount	298,000	261,000
Interest payable, fair value	298,000	261,000
Total liabilities, carrying amount	1,052,354,000	852,105,000
Total liabilities, fair value	1,071,614,000	869,012,000
Fair Value Inputs Level 2
IRLC, carrying amount	333,000	816,000
Forward sales commitments, carrying amount	145,000	60,000
Cash and cash equivalents, fair value	0	0
Securities, fair value	271,570,000	107,024,000
Loans held for sale, fair value	3,610,000	58,679,000
Loans held for investment, net, fair value	0	0
Interest receivable, fair value	2,579,000	2,727,000
Bank owned life insurance, fair value	22,714,000	22,647,000
Total assets, fair value	300,951,000	191,893,000
Deposits, fair value	918,546,000	702,940,000
Long-term debt, fair value	0	0
Interest payable, fair value	298,000	261,000
Total liabilities, fair value	918,844,000	703,261,000
Fair Value Inputs Level 1
Cash and cash equivalents, fair value	180,577,000	78,408,000
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	180,577,000	78,408,000
Deposits, 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 3
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	638,419,000	639,472,000
Interest receivable, fair value	0	0
Bank owned life insurance, fair value	0	0
Total assets, fair value	638,419,000	639,472,000
Deposits, fair value	130,382,000	131,917,000
Long-term debt, fair value	0	33,834,000
Interest payable, fair value	0	0
Total liabilities, fair value	$ 152,770,000	$ 165,751,000

Troubled Debt Restructuring (De

Troubled Debt Restructuring (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)integer	Sep. 30, 2020USD ($)integer
Total [Member]
Number of contracts | integer	2
Pre-modification outstanding recorded investment	$ 1,085
Post-modification outstanding recorded investment	$ 1,085
Real Estate [Member]
Number of contracts | integer	1
Pre-modification outstanding recorded investment	$ 976
Post-modification outstanding recorded investment	$ 109
Farmland [Member]
Number of contracts | integer	1
Pre-modification outstanding recorded investment	$ 976
Post-modification outstanding recorded investment	$ 109
Consumer [Member]
Number of contracts | integer		4
Pre-modification outstanding recorded investment		$ 26
Post-modification outstanding recorded investment		$ 26

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Beginning Balance	$ (3,017)
Ending Balance	(3,909)
Unrealized Securities Gains (Losses) [Member]
Beginning Balance	804	$ (7)
Ending Balance	(88)	167
Change in unrealized securities gains (losses), net of tax	(892)	174
Adjustments Related to Pension Plan [Member]
Beginning Balance	(3,821)	(3,204)
Ending Balance	(3,821)	(3,204)
Change in unrealized securities gains (losses), net of tax	0	0
Accumulated Other Comprehensive Loss [Member]
Beginning Balance	(3,017)	(3,211)
Ending Balance	(3,909)	(3,037)
Change in unrealized securities gains (losses), net of tax	$ (892)	$ 174

Business Segments (Details)

Business Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Interest Income	$ 7,966,000	$ 7,754,000	$ 23,394,000	$ 22,765,000
Service charges on deposits	300,000	302,000	839,000	888,000
Mortgage banking income, net	1,176,000	1,621,000	3,874,000	4,521,000
Title insurance income	556,000	543,000	1,607,000	1,386,000
Interest expense	1,089,000	1,424,000	3,226,000	4,515,000
Income tax expense (benefit)	319,000	372,000	1,012,000	545,000
Net income (loss)	2,337,000	2,206,000	9,358,000	6,127,000
Total Assets	1,170,659,000		1,170,659,000		$ 966,930,000
Goodwill	3,082,000		3,082,000		$ 2,884,000
F&M Bank Member
Interest Income	9,010,000	9,163,000	26,499,000	27,199,000
Service charges on deposits	300,000	302,000	839,000	888,000
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	711,000	572,000	2,334,000	1,668,000
Total income	10,021,000	10,037,000	29,672,000	29,755,000
Interest expense	919,000	1,308,000	2,690,000	4,419,000
Provision for loan losses	(235,000)	(1,000,000)	(2,210,000)	(3,300,000)
Salary and benefit expense	3,660,000	3,257,000	10,772,000	9,623,000
Other operating expenses	3,477,000	2,899,000	9,777,000	8,622,000
Total expense	7,821,000	8,464,000	21,029,000	25,964,000
Income (loss) before taxes	2,200,000	1,573,000	8,643,000	3,791,000
Income tax expense (benefit)	277,000	337,000	1,199,000	527,000
Net income (loss)		1,236,000		3,264,000
Net (income) loss attributable to noncontrolling interest		1,236,000		0
Net Income attributable to F & M Bank Corp	1,923,000	9,163,000	7,444,000	3,264,000
Total Assets	10,255,000	1,019,005,000	10,255,000	1,019,005,000
Goodwill	47,000	2,670,000	47,000	2,670,000
F&M Mortgage
Interest Income	41,000		165,000
Service charges on deposits	0		0
Investment services and insurance income	0		0
Mortgage banking income, net	1,176,000		3,874,000
Title insurance income	0		0
Other operating income	41,000		121,000
Total income	1,258,000		4,160,000
Interest expense	17,000		115,000
Provision for loan losses	0		0
Salary and benefit expense	620,000		1,902,000
Other operating expenses	213,000		677,000
Total expense	850,000		2,694,000
Income (loss) before taxes	408,000		1,466,000
Income tax expense (benefit)	0		0
Net Income attributable to F & M Bank Corp	408,000		1,466,000
Total Assets	10,255,000		10,255,000
Goodwill	47,000		47,000
TEB Life/FMFS
Interest Income	26,000	35,000	85,000	115,000
Service charges on deposits	0	0	0	0
Investment services and insurance income	213,000	176,000	742,000	543,000
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Other operating income	0	0	0	0
Total income	239,000	211,000	827,000	658,000
Interest expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary and benefit expense	99,000	73,000	280,000	231,000
Other operating expenses	18,000	16,000	37,000	42,000
Total expense	117,000	89,000	317,000	273,000
Income (loss) before taxes	122,000	122,000	510,000	385,000
Income tax expense (benefit)	26,000	20,000	107,000	59,000
Net income (loss)		102,000		326,000
Net (income) loss attributable to noncontrolling interest		102,000		0
Net Income attributable to F & M Bank Corp	96,000	35,000	403,000	326,000
Total Assets	8,434,000	7,911,000	8,434,000	7,911,000
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	556,000	543,000	1,607,000	1,386,000
Other operating income	0	0	0	0
Total income	556,000	543,000	16,000	1,386,000
Interest expense	0	0	0	0
Provision for loan losses	0	0	0	0
Salary and benefit expense	323,000	247,000	905,000	740,000
Other operating expenses	73,000	61,000	227,000	190,000
Total expense	396,000	308,000	11,320,000	930,000
Income (loss) before taxes	160,000	235,000	475,000	456,000
Income tax expense (benefit)	0	0	0	0
Net income (loss)		235,000		456,000
Net (income) loss attributable to noncontrolling interest		235,000		0
Net Income attributable to F & M Bank Corp	160,000	0	475,000	456,000
Total Assets	2,802,000	4,664,000	2,802,000	4,664,000
Goodwill	3,000	3,000	3,000	3,000
Parent Only
Interest Income	1,000	0	1,000	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	38,000	46,000	114,000	99,000
Total income	(38,000)	(46,000)	(113,000)	(99,000)
Interest expense	175,000	122,000	551,000	0
Provision for loan losses	0	0	0	(122,000)
Salary and benefit expense	0	0	0	0
Other operating expenses	21,000	17,000	60,000	32,000
Total expense	196,000	139,000	611,000	154,000
Income (loss) before taxes	(234,000)	(185,000)	(724,000)	(253,000)
Income tax expense (benefit)	16,000	15,000	(294,000)	(41,000)
Net income (loss)		(200,000)		(212,000)
Net (income) loss attributable to noncontrolling interest		(200,000)		0
Net Income attributable to F & M Bank Corp	(250,000)	0	430,000	(212,000)
Total Assets	113,627,000	105,633,000	113,627,000	105,633,000
Goodwill	164,000	164,000	164,000	164,000
Eliminations
Interest Income	(22,000)	(127,000)	(130,000)	(261,000)
Service charges on deposits	0	0	0	0
Investment services and insurance income	(3,000)	(9,000)	(6,000)	(18,000)
Mortgage banking income, net	0	0	0	0
Title insurance income	0	0	0	0
Other operating income	0	0	0	0
Total income	(25,000)	(136,000)	(136,000)	(279,000)
Interest expense	22,000	127,000	130,000	261,000
Provision for loan losses	0	0	0	0
Salary and benefit expense	0	0	0	0
Other operating expenses	(3,000)	(9,000)	(6,000)	(18,000)
Total expense	25,000	136,000	136,000	279,000
Income (loss) before taxes	0	0	0	0
Income tax expense (benefit)	0	0	0	0
Net income (loss)		0		0
Net (income) loss attributable to noncontrolling interest		0		0
Net Income attributable to F & M Bank Corp	0	(127,000)	0	0
Total Assets	(14,072,000)	(146,378,000)	(14,072,000)	(146,378,000)
Goodwill	0	0	0	0
F&M Bank Corp Consolidated
Interest Income	9,055,000	9,178,000	26,620,000	27,280,000
Service charges on deposits	300,000	302,000	839,000	888,000
Investment services and insurance income	210,000	167,000	736,000	525,000
Mortgage banking income, net	1,176,000	1,621,000	3,874,000	4,521,000
Title insurance income	556,000	543,000	1,607,000	1,386,000
Other operating income	714,000	595,000	2,341,000	1,695,000
Total income	12,011,000	12,406,000	36,017,000	36,295,000
Interest expense	1,089,000	1,424,000	3,226,000	4,393,000
Provision for loan losses	(235,000)	(1,000,000)	(2,210,000)	(3,422,000)
Salary and benefit expense	4,702,000	4,081,000	13,859,000	12,249,000
Other operating expenses	3,799,000	3,223,000	10,772,000	9,559,000
Total expense	9,355,000	9,828,000	25,647,000	29,623,000
Income (loss) before taxes	2,656,000	2,578,000	10,370,000	6,672,000
Income tax expense (benefit)	319,000	372,000	1,012,000	545,000
Net income (loss)		2,206,000		6,127,000
Net (income) loss attributable to noncontrolling interest		2,206,000		105,000
Net Income attributable to F & M Bank Corp	2,337,000	9,178,000	9,358,000	6,022,000
Total Assets	1,170,659,000	1,015,424,000	1,170,659,000	1,015,424,000
Goodwill	$ 3,082,000	2,884,000	$ 3,082,000	2,884,000
VBS Mortgage
Interest Income		107,000		227,000
Service charges on deposits		0		0
Investment services and insurance income		0		0
Mortgage banking income, net		1,621,000		4,521,000
Title insurance income		0		0
Other operating income		69,000		126,000
Total income		1,797,000		4,874,000
Interest expense		121,000		235,000
Provision for loan losses		0		0
Salary and benefit expense		504,000		1,655,000
Other operating expenses		339,000		691,000
Total expense		964,000		2,581,000
Income (loss) before taxes		833,000		2,293,000
Income tax expense (benefit)		0		0
Net income (loss)		833,000		2,293,000
Net (income) loss attributable to noncontrolling interest		833,000		105,000
Net Income attributable to F & M Bank Corp		107,000		2,188,000
Total Assets		24,589,000		24,589,000
Goodwill		$ 47,000		$ 47,000

Debt (Details Narrative)

Debt (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jul. 29, 2020	Sep. 30, 2021	Dec. 31, 2020
Balance of obligations		$ 10,000	$ 21,268
Subordinated notes, net of issuance costs		$ 11,764
Weighted average cost		81.00%	1.47%
Minimum [Member]
Long-term debt interest rate		81.00%
Maximum [Member]
Long-term debt interest rate		2.39%
FHLB short term
Letter of credit		$ 6,000
2027 Notes [Member] | Accredited Investor [Member]
Interest rate	5.75%
Interest rate description	The 2027 Notes will bear interest at 5.75% per annum, payable semi-annually in arrears. Beginning on July 31, 2022 through maturity, the 2027 Notes may be redeemed, at the Company’s option, on any scheduled interest payment date
Maturity date	Jul. 31, 2022
Principal amount	$ 5,000
2030 Notes [Member] | Accredited Investor [Member]
Interest rate	6.00%
Interest rate description	The 2030 Notes will initially bear interest at 6.00% per annum, beginning July 29, 2020 to but excluding July 31, 2025, payable semi-annually in arrears
Maturity date	Jul. 31, 2030
Principal amount	$ 7,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total noninterest income	$ 2,956	$ 3,228	$ 9,397	$ 9,015
Service Charges on Deposits
Total noninterest income	300	302	839	888
Investment Services and Insurance Income
Total noninterest income	210	167	736	525
Title Insurance Income
Total noninterest income	556	543	1,607	1,386
ATM and check card fees
Total noninterest income	595	499	1,715	1,394
Other
Total noninterest income	154	193	668	476
Noninterest Income (in-scope of Topic 606)
Total noninterest income	1,815	1,704	5,565	4,669
Noninterest Income (out-of-scope of Topic 606)
Total noninterest income	$ 1,141	$ 1,524	$ 3,832	$ 4,346

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Revenue Recognition
Net loss (gain) on sales	$ 0	$ 325,000

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases
Lease liabilities	$ 1,001		$ 1,001
Right-of-use assets	$ 984		$ 984
Weighted average remaining lease term			3 years 6 months 25 days
Weighted average discount rate	2.97%		2.97%
Operating lease cost	$ 37	$ 30	$ 88	$ 88
Total lease cost	37	30	88	88
Cash paid for amounts included in the measurement of lease liabilities	$ 42	$ 28	$ 108	$ 98

Leases (Details 1)

Leases (Details 1) $ in Thousands	Sep. 30, 2021USD ($)
Leases
Nine months ending December 31, 2021	$ 42
Twelve months ending December 31, 2022	194
Twelve months ending December 31, 2023	135
Twelve months ending December 31, 2024	136
Twelve months ending December 31, 2025	98
Thereafter	588
Total undiscounted cash flows	1,193
Discount	192
Lease liabilities	$ 1,001

Mortgage Banking and Derivati_2

Mortgage Banking and Derivatives (Details Narrative) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021USD ($)integer	Dec. 31, 2020USD ($)integer
Other Assets [Member]
Notional debt amount	$ 22,407	$ 31,000
Total Notional Positions | integer	91	134
Fair value of derivative instruments	$ 333	$ 816
Other Liability [Member]
Total Notional Positions | integer	112	205
Fair value of forward sales	$ 145	$ 60
Notional amount	$ 26,041	$ 46,000

StockBased Compensation (Detail

StockBased Compensation (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Common stock shares authorizes	6,000,000	6,000,000
Directors [Member]
Stock plan committee awarded shares issued	1,332
Employee service fair value		$ 35,631
March 5, 2021 [Member]
Stock plan committee awarded shares issued	15,832
Employee service fair value		$ 423,506
Description of vest shares	These shares vest 25% over each of the next four years
Stock Incentive Plan [Member]
Common stock shares authorizes	200,000
Expire date	March 18, 2030

Waynesboro Branch Acquisition_2

Waynesboro Branch Acquisition (Details)	Apr. 26, 2021USD ($)
Cash and due from banks	$ 188,000
Premises and equipment, net	11,000
Right-of-use asset	50,000
Core deposit intangible	0
Total assets	322,000
Total deposits	14,229,000
Lease Liability	50,000
Total liabilities	14,279,000
Net assets acquired	(13,957,000)
Acquired Balances as Recorded by Carter Bankshares Inc [Member]
Cash and due from banks	188,000
Premises and equipment, net	11,000
Right-of-use asset	50,000
Core deposit intangible	0
Total assets	249,000
Total deposits	14,094,000
Lease Liability	50,000
Total liabilities	14,144,000
Net assets acquired	(13,895,000)
Interest-bearing	12,401,000
Noninterest-bearing	1,693,000
Fair Value Adjustments [Member]
Cash and due from banks	0
Premises and equipment, net	0
Right-of-use asset	0
Core deposit intangible	73,000
Total assets	73,000
Total deposits	135,000
Lease Liability	0
Total liabilities	135,000
Net assets acquired	(62,000)
Interest-bearing	135,000
Noninterest-bearing	0
Acquired Balances as Recorded by Farmers and Merchant Bank [Member]
Cash and due from banks	188,000
Premises and equipment, net	11,000
Right-of-use asset	50,000
Core deposit intangible	73,000
Total assets	322,000
Total deposits	14,229,000
Lease Liability	50,000
Total liabilities	14,279,000
Net assets acquired	(13,957,000)
Interest-bearing	1,693,000
Noninterest-bearing	$ 12,536,000

Waynesboro Branch Acquisition_3

Waynesboro Branch Acquisition (Details 1)	Apr. 26, 2021USD ($)
StockBased Compensation (Details Narrative)
Cash and due from banks	$ 188,000
Premises and equipment, net	11,000
Right-of-use asset	50,000
Core deposit intangible	0
Total assets	322,000
Total deposits	14,229,000
Lease Liability	50,000
Total liabilities	14,279,000
Net assets acquired	(13,957,000)
Transaction consideration paid to Carter Bankshares Inc.	(13,758,000)
Amount of goodwill resulting from acquisition	$ 199,000

Waynesboro Branch Acquisition_4

Waynesboro Branch Acquisition (Details Narrative) $ in Thousands	Apr. 26, 2021USD ($)
StockBased Compensation (Details Narrative)
Transaction consideration paid to Carter Bankshares Inc.	$ 13,758
Premium paid on deposits	135
Total deposits	14,229
Amount of goodwill resulting from acquisition	$ 199

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	Sep. 01, 2021$ / shares
Mortgage Banking and Derivatives
Debt instrument, Converted shares, Conversion rate	$ 1.111
Debt instrument, Shares redeemed, Per share	$ 25