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 |