Virginia
|
|
54-1280811
|
(State
or Other Jurisdiction of Incorporation or
Organization)
|
|
(I.R.S.
Employer Identification
No.)
|
Large
accelerated filer [ ]
Non-accelerated
filer [ ]
Smaller
reporting Company [X]
|
|
Accelerated filer [
]
(Do not
check if a smaller reporting company)
|
Emerging growth
Company [ ]
|
|
|
Class
|
|
Outstanding
at May 8, 2017
|
Common
Stock, par value - $5
|
|
3,272,661
shares
|
Part
I
|
Financial
Information
|
3
|
|
|
|
Item
1.
|
Financial
Statements
|
|
|
|
|
|
Consolidated
Balance Sheets – March 31, 2017 and December 31,
2016
|
3
|
|
|
|
|
Consolidated
Statements of Income – Three Months Ended March 31, 2017 and
2016
|
4
|
|
|
|
|
Consolidated
Statements of Comprehensive Income – Three Months Ended March
31, 2017 and 2016
|
5
|
|
|
|
|
Consolidated
Statements of Changes in Stockholders’ Equity – Three
Months Ended March 31, 2017 and 2016
|
5
|
|
|
|
|
Consolidated
Statements of Cash Flows – Three Months Ended March 31, 2017
and 2016
|
6
|
|
|
|
|
Notes
to Consolidated Financial Statements
|
7
|
|
|
|
Item 2. |
Management’s Discussion and Analysis of Financial
Condition and Results of Operations
|
28
|
|
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
42
|
|
|
|
Item
4.
|
Controls
and Procedures
|
42
|
|
|
|
Part
II
|
Other
Information
|
43
|
|
|
|
Item
1.
|
Legal
Proceedings
|
43
|
|
|
|
Item
1a.
|
Risk
Factors
|
43
|
|
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
43
|
|
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
43
|
|
|
|
Item
4.
|
Mine
Safety Disclosures
|
43
|
|
|
|
Item
5.
|
Other
Information
|
43
|
|
|
|
Item
6.
|
Exhibits
|
43
|
|
|
|
Signatures
|
44
|
|
|
|
|
Certifications
|
46
|
|
March
31,
|
December
31,
|
|
2017
|
2016*
|
|
(Unaudited)
|
|
Assets
|
|
|
Cash and due from
banks
|
$8,003
|
$7,755
|
Money market
funds
|
1,091
|
674
|
Federal funds
sold
|
3,019
|
7,926
|
Cash and cash
equivalents
|
12,113
|
16,355
|
Securities:
|
|
|
Held to maturity
– fair value of $125 in 2017 and 2016
|
125
|
125
|
Available for
sale
|
24,739
|
24,783
|
Other
investments
|
13,089
|
14,567
|
Loans held for
sale
|
37,698
|
62,735
|
Loans held for
investment
|
591,006
|
591,636
|
Less: allowance for
loan losses
|
(7,317)
|
(7,543)
|
Net loans held for
investment
|
583,689
|
584,093
|
|
|
|
Other real estate
owned
|
2,076
|
2,076
|
Bank premises and
equipment, net
|
11,352
|
10,340
|
Interest
receivable
|
1,818
|
1,785
|
Goodwill
|
2,974
|
2,670
|
Bank owned life
insurance
|
13,622
|
13,513
|
Other
assets
|
11,591
|
11,847
|
Total
assets
|
$714,886
|
$744,889
|
|
|
|
Liabilities
|
|
|
Deposits:
|
|
|
Noninterest
bearing
|
$147,154
|
$146,617
|
Interest
bearing
|
389,406
|
390,468
|
Total
deposits
|
536,560
|
537,085
|
|
|
|
Short-term
debt
|
20,000
|
40,000
|
Accrued
liabilities
|
17,191
|
16,885
|
Long-term
debt
|
53,045
|
64,237
|
Total
liabilities
|
626,796
|
658,207
|
|
|
|
Stockholders’
Equity
|
|
|
Preferred Stock $5
par value, 400,000 shares authorized, 327,350 issued and
outstanding
|
|
|
for
March 31, 2017 and December 31, 2016, respectively
|
7,609
|
7,609
|
Common stock, $5
par value, 6,000,000 shares authorized,
|
|
|
3,272,481
and 3,270,315 shares issued and outstanding
|
|
|
for
March 31, 2017 and December 31, 2016, respectively
|
16,362
|
16,352
|
Additional paid in
capital – common stock
|
10,734
|
10,684
|
Retained
earnings
|
56,035
|
54,509
|
Noncontrolling
interest in consolidated subsidiaries
|
516
|
693
|
Accumulated other
comprehensive loss
|
(3,166)
|
(3,165)
|
Total
stockholders’ equity
|
88,090
|
86,682
|
Total liabilities
and stockholders’ equity
|
$714,886
|
$744,889
|
|
Three Months
Ended
|
|
|
March
31,
|
|
Interest and Dividend income
|
2017
|
2016
|
Interest and fees
on loans held for investment
|
$7,703
|
7,185
|
Interest and fees
on loans held for sale
|
174
|
372
|
Interest from money
market funds and federal funds sold
|
57
|
8
|
Interest on debt
securities – taxable
|
76
|
69
|
Total interest and
dividend income
|
8,010
|
7,634
|
|
|
|
Interest expense
|
|
|
Total
interest on deposits
|
616
|
558
|
Interest
from short-term debt
|
9
|
18
|
Interest
from long-term debt
|
281
|
238
|
Total interest
expense
|
906
|
814
|
|
|
|
Net interest income
|
7,104
|
6,820
|
|
|
|
Provision for Loan Losses
|
-
|
-
|
Net Interest Income After Provision for Loan Losses
|
7,104
|
6,820
|
|
|
|
Noninterest income
|
|
|
Service charges on
deposit accounts
|
315
|
234
|
Investment services
and insurance income
|
174
|
94
|
Mortgage
banking income, net
|
500
|
451
|
Title
insurance income
|
199
|
-
|
Income on bank
owned life insurance
|
112
|
119
|
Low
income housing partnership losses
|
(185)
|
(183)
|
ATM
and check card fees
|
330
|
374
|
Gain
on prepayment of long-term debt
|
504
|
-
|
Loss
on sale of investments
|
(42)
|
-
|
Other
operating income
|
138
|
121
|
Total noninterest
income
|
2,045
|
1,210
|
|
|
|
Noninterest expense
|
|
|
Salaries
|
2,642
|
2,410
|
Employee
benefits
|
953
|
753
|
Occupancy
expense
|
249
|
218
|
Equipment
expense
|
186
|
192
|
FDIC insurance
assessment
|
90
|
113
|
Other
real estate owned, net
|
14
|
18
|
Marketing
expense
|
135
|
137
|
Legal
and professional fees
|
96
|
89
|
ATM
and check card fees
|
168
|
161
|
Telecommunication
and data processing expense
|
323
|
263
|
Directors
fees
|
127
|
108
|
Bank
franchise tax
|
160
|
148
|
Other
operating expenses
|
811
|
633
|
Total noninterest
expense
|
5,954
|
5,243
|
|
|
|
Income before income taxes
|
3,195
|
2,787
|
Income tax
expense
|
877
|
693
|
Net Income
|
2,318
|
2,094
|
Net
(income) loss attributable to noncontrolling interest
|
(27)
|
4
|
Net Income attributable to F & M Bank Corp.
|
$2,345
|
$2,090
|
Dividends
paid/accumulated on preferred stock
|
104
|
128
|
Net income available to common stockholders
|
$2,241
|
$1,962
|
|
|
|
Per Common Share Data
|
|
|
Net income –
basic
|
$.68
|
$.60
|
Net income –
diluted
|
.65
|
.56
|
Cash dividends on
common stock
|
$.22
|
$.19
|
Weighted average
common shares outstanding – basic
|
3,271,272
|
3,285,373
|
Weighted average
common shares outstanding – diluted
|
3,634,958
|
3,729,674
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2017
|
2016
|
Net
Income:
|
|
|
Net
Income – F & M Bank Corp
|
$2,345
|
$2,090
|
Net
income (loss) attributable to noncontrolling interest
|
(27)
|
4
|
Total Net
Income:
|
2,318
|
2,094
|
|
|
|
Unrealized holding
gains (losses) on available-for-sale securities
|
(2)
|
30
|
Tax
Effect
|
1
|
( 10)
|
Unrealized
holding gain (loss), net of tax
|
(1)
|
20
|
Total other
comprehensive income
|
(1)
|
20
|
|
|
|
Comprehensive
income
|
$2,317
|
$2,114
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2017
|
2016
|
|
|
|
Balance, beginning of period
|
$86,682
|
$82,950
|
|
|
|
Comprehensive
income
|
|
|
Net income –
F & M Bank Corp
|
2,345
|
2,090
|
Net income (loss)
attributable to noncontrolling interest
|
(27)
|
4
|
Other comprehensive
income (loss)
|
(1)
|
20
|
Total comprehensive
income
|
2,317
|
2,114
|
|
|
|
Minority interest
capital distributions
|
(150)
|
(77)
|
Issuance of common
stock
|
61
|
33
|
Repurchase of
common stock
|
-
|
(32)
|
Dividends
paid
|
(820)
|
(754)
|
Balance, end of period
|
$88,090
|
$84,234
|
|
Three Months
Ended
March
31,
|
|
|
2017
|
2016
|
Cash flows from operating activities
|
|
|
Net
income
|
$2,345
|
$2,090
|
Reconcile net
income to net cash provided by operating activities:
|
|
|
Depreciation
|
202
|
204
|
Amortization of
securities
|
2
|
38
|
Proceeds from loans
held for sale originated
|
17,183
|
15,831
|
Loans held for sale
originated
|
(17,908)
|
(14,697)
|
Gain on prepayment
of long-term debt
|
(504)
|
-
|
Increase in
interest receivable
|
(33)
|
(6)
|
Decrease (increase)
in other assets
|
708
|
551
|
Increase in accrued
liabilities
|
(317)
|
(614)
|
Amortization of
limited partnership investments
|
185
|
183
|
Income from life
insurance investment
|
(112)
|
(119)
|
Loss on sale of
investments
|
42
|
-
|
Loss on sale and
valuation adjustments for other real estate owned
|
-
|
1
|
Net cash provided
by operating activities
|
1,793
|
3,462
|
|
|
|
Cash flows from investing activities
|
|
|
Purchase of
investments available for sale and other investments
|
(20,053)
|
(2,790)
|
Purchase of title
insurance company
|
(304)
|
-
|
Proceeds from
maturity of investments available for sale
|
21,288
|
2,040
|
Proceeds from the
sale of investments
|
55
|
|
Net decrease
(increase) in loans held for investment
|
404
|
(9,797)
|
Net decrease
(increase) in loans held for sale participations
|
25,761
|
(13,329)
|
Proceeds from the
sale of other real estate owned
|
-
|
124
|
Net purchase of
property and equipment
|
(1,214)
|
(896)
|
Net cash provided
by (used in) investing activities
|
25,937
|
(24,648)
|
|
|
|
Cash flows from financing activities
|
|
|
Net change in
deposits
|
(525)
|
1,033
|
Net change in
short-term debt
|
(20,000)
|
21,256
|
Dividends paid in
cash
|
(820)
|
(754)
|
Proceeds from
issuance of common stock
|
61
|
33
|
Repurchase
of common stock
|
-
|
(31)
|
Repayments of
long-term debt
|
(10,688)
|
(982)
|
Net cash (used in)
provided by financing activities
|
(31,972)
|
20,555
|
|
|
|
Net decrease in Cash and Cash Equivalents
|
(4,242)
|
(631)
|
Cash and cash equivalents, beginning of period
|
16,355
|
8,519
|
Cash and cash equivalents, end of period
|
$12,113
|
$7,888
|
Supplemental Cash Flow information:
|
|
|
Cash paid
for:
|
|
|
Interest
|
$905
|
$800
|
Taxes
|
1,980
|
-
|
Supplemental non-cash disclosures:
|
|
|
Transfer from loans
to other real estate owned
|
-
|
442
|
Loans originated
for the sale of other real estate owned
|
-
|
-
|
Change in
unrealized gain (loss) on securities available for
sale
|
(1)
|
20
|
|
For the quarter
ended
|
|
|
March 31,
2017
|
March 31,
2016
|
Earnings available
to common stockholders:
|
|
|
Net
income
|
$2,318,009
|
$2,093,314
|
Noncontrolling
interest income (loss)
|
(26,928)
|
3,763
|
Preferred stock
dividends
|
104,343
|
127,500
|
Net income
available to common stockholders
|
$2,240,594
|
$1,962,051
|
|
Three months
ended
|
|||||
|
March 31,
2017
|
March 31,
2016
|
||||
|
Income
|
Shares
|
Per Share
Amounts
|
Income
|
Shares
|
Per Share
Amounts
|
Basic
EPS
|
$2,240,594
|
3,271,272
|
$0.68
|
$1,962,051
|
3,285,274
|
$0.60
|
Effect of Dilutive
Securities:
|
|
|
|
|
|
|
Convertible
Preferred Stock
|
104,343
|
(363,686)
|
(0.03)
|
127,500
|
(444,400)
|
(0.04)
|
Diluted
EPS
|
$2,344,937
|
3,634,958
|
$0.65
|
$2,089,551
|
3,729,674
|
$0.56
|
|
|
Gross
|
Gross
|
|
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|
Cost
|
Gains
|
Losses
|
Value
|
March 31, 2017
|
|
|
|
|
U. S.
Treasuries
|
$125
|
$-
|
$-
|
$125
|
December 31, 2016
|
|
|
|
|
U. S.
Treasuries
|
$125
|
$-
|
$-
|
$125
|
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
March 31, 2017
|
|
|
|
|
U.
S. Treasuries
|
$4,003,871
|
$4,009
|
$-
|
$4,007,880
|
U.
S. Government sponsored enterprises
|
19,998,289
|
-
|
-
|
19,998,289
|
Mortgage-backed
obligations of federal agencies
|
594,812
|
2,549
|
-
|
597,361
|
Equity
securities
|
135,000
|
-
|
-
|
135,000
|
Total
Securities Available for Sale
|
$24,731,972
|
$6,558
|
$-
|
$24,738,530
|
|
|
|
|
|
December 31, 2016
|
|
|
|
|
U.
S. Treasuries
|
$24,004,705
|
$8,668
|
$-
|
$24,013,373
|
Mortgage-backed
obligations of federal agencies
|
634,009
|
123
|
-
|
634,132
|
Equity
securities
|
135,000
|
-
|
-
|
135,000
|
Total
Securities Available for Sale
|
$24,773,714
|
$8,791
|
$-
|
$24,782,505
|
|
Securities Held
to Maturity
|
Securities
Available for Sale
|
||
|
Amortized
|
Fair
|
Amortized
|
Fair
|
(dollars in
thousands)
|
Cost
|
Value
|
Cost
|
Value
|
Due in one year or
less
|
$-
|
$-
|
$24,002
|
$24,006
|
Due after one year
through five years
|
125
|
125
|
-
|
-
|
Due after five
years
|
-
|
-
|
595
|
598
|
Due after ten
years
|
-
|
-
|
135
|
135
|
Total
|
$125
|
$125
|
$24,732
|
$24,739
|
(dollars in
thousands)
|
2017
|
2016
|
Construction/Land
Development
|
$73,874
|
$76,172
|
Farmland
|
15,034
|
12,901
|
Real
Estate
|
169,664
|
172,758
|
Multi-Family
|
6,714
|
7,605
|
Commercial Real
Estate
|
148,724
|
150,061
|
Home Equity –
closed end
|
11,172
|
11,453
|
Home Equity –
open end
|
54,607
|
54,420
|
Commercial &
Industrial – Non-Real Estate
|
32,847
|
31,306
|
Consumer
|
7,530
|
6,643
|
Dealer
Finance
|
68,135
|
65,495
|
Credit
Cards
|
2,705
|
2,822
|
Total
|
$591,006
|
$591,636
|
|
|
Unpaid
|
|
Average
|
Interest
|
March 31, 2017
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
Impaired
loans without a valuation allowance:
|
|
|
|
|
|
Construction/Land
Development
|
$3,425
|
$3,781
|
$-
|
$3,094
|
$3
|
Farmland
|
1,858
|
1,858
|
-
|
464
|
-
|
Real
Estate
|
752
|
752
|
-
|
769
|
3
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
100
|
100
|
-
|
1,011
|
1
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
347
|
-
|
569
|
-
|
Commercial
& Industrial – Non-Real Estate
|
167
|
167
|
-
|
171
|
-
|
Consumer
|
12
|
12
|
-
|
10
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
19
|
19
|
-
|
17
|
-
|
|
6,333
|
7,036
|
|
6,105
|
7
|
|
|
|
|
|
|
Impaired
loans with a valuation allowance
|
|
|
|
|
|
Construction/Land
Development
|
7,363
|
7,363
|
1,951
|
7,703
|
43
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
Real
Estate
|
1,201
|
1,201
|
216
|
1,209
|
-
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
-
|
-
|
-
|
717
|
-
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
617
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
-
|
-
|
7
|
-
|
Consumer
|
-
|
-
|
-
|
-
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
59
|
59
|
15
|
72
|
1
|
|
8,623
|
8,623
|
2,182
|
10,325
|
44
|
|
|
|
|
|
|
Total
impaired loans
|
$14,956
|
$15,659
|
$2,182
|
$16,430
|
$51
|
|
|
Unpaid
|
|
Average
|
Interest
|
December 31, 2016
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
Impaired
loans without a valuation allowance:
|
|
|
|
|
|
Construction/Land
Development
|
$3,296
|
$3,652
|
$-
|
$2,547
|
$10
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
Real
Estate
|
768
|
768
|
-
|
778
|
10
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,958
|
1,958
|
-
|
1,087
|
114
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
347
|
-
|
964
|
2
|
Commercial
& Industrial – Non-Real Estate
|
170
|
170
|
-
|
174
|
2
|
Consumer
|
13
|
13
|
-
|
11
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
-
|
-
|
-
|
14
|
1
|
|
6,205
|
6,908
|
|
5,575
|
139
|
|
|
|
|
|
|
Impaired
loans with a valuation allowance
|
|
|
|
|
|
Construction/Land
Development
|
6,592
|
6,592
|
1,853
|
8,525
|
291
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
Real
Estate
|
1,206
|
1,206
|
221
|
1,215
|
10
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
952
|
952
|
60
|
959
|
57
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
969
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
-
|
-
|
14
|
-
|
Consumer
|
-
|
-
|
-
|
-
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
87
|
87
|
20
|
77
|
1
|
|
8,837
|
8,837
|
2,154
|
11,759
|
359
|
|
|
|
|
|
|
Total
impaired loans
|
$15,042
|
$15,745
|
$2,154
|
$17,334
|
$498
|
|
30-59 Days Past
due
|
60-89 Days Past
Due
|
Greater than 90
Days (excluding non-accrual)
|
Non-Accrual
Loans
|
Total Past
Due
|
Current
|
Total Loan
Receivable
|
March
31, 2017
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$463
|
$-
|
$-
|
$2,761
|
$3,224
|
$70,650
|
$73,874
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
15,034
|
15,034
|
Real
Estate
|
1,937
|
242
|
64
|
1,826
|
4,069
|
165,595
|
169,664
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
6,714
|
6,714
|
Commercial Real
Estate
|
852
|
-
|
-
|
-
|
852
|
147,872
|
148,724
|
Home Equity –
closed end
|
-
|
-
|
6
|
31
|
37
|
11,135
|
11,172
|
Home Equity –
open end
|
104
|
100
|
-
|
222
|
426
|
54,181
|
54,607
|
Commercial &
Industrial – Non- Real Estate
|
209
|
29
|
-
|
-
|
238
|
32,609
|
32,847
|
Consumer
|
235
|
153
|
-
|
3
|
391
|
7,139
|
7,530
|
Dealer
Finance
|
404
|
86
|
|
178
|
668
|
67,467
|
68,135
|
Credit
Cards
|
15
|
13
|
-
|
-
|
28
|
2,677
|
2,705
|
Total
|
$4,219
|
$623
|
$70
|
$5,021
|
$9,933
|
$581,073
|
$591,006
|
|
30-59 Days Past
due
|
60-89 Days Past
Due
|
Greater than 90
Days (excluding non-accrual)
|
Non-Accrual
Loans
|
Total Past
Due
|
Current
|
Total Loan
Receivable
|
December
31, 2016
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$73
|
$101
|
$-
|
$2,805
|
$2,979
|
$73,193
|
$76,172
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
12,901
|
12,901
|
Real
Estate
|
2,114
|
340
|
81
|
1,399
|
3,934
|
168,824
|
172,758
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
7,605
|
7,605
|
Commercial Real
Estate
|
139
|
-
|
-
|
-
|
139
|
149,922
|
150,061
|
Home Equity –
closed end
|
101
|
-
|
-
|
32
|
133
|
11,320
|
11,453
|
Home Equity –
open end
|
309
|
-
|
-
|
279
|
588
|
53,832
|
54,420
|
Commercial &
Industrial – Non- Real Estate
|
313
|
5
|
-
|
70
|
388
|
30,918
|
31,306
|
Consumer
|
35
|
4
|
-
|
-
|
39
|
6,604
|
6,643
|
Dealer
Finance
|
790
|
187
|
26
|
178
|
1,181
|
64,314
|
65,495
|
Credit
Cards
|
18
|
4
|
-
|
-
|
22
|
2,800
|
2,822
|
Total
|
$3,892
|
$641
|
$107
|
$4,763
|
$9,403
|
$582,233
|
$591,636
|
March 31,
2017
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Allowance
for loan losses:
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$3,381
|
$-
|
$-
|
$(70)
|
$3,311
|
$1,951
|
$1,360
|
Farmland
|
34
|
-
|
-
|
(6)
|
28
|
-
|
28
|
Real
Estate
|
843
|
-
|
2
|
(67)
|
778
|
216
|
562
|
Multi-Family
|
23
|
-
|
-
|
(5)
|
18
|
-
|
18
|
Commercial Real
Estate
|
705
|
-
|
5
|
(54)
|
656
|
-
|
656
|
Home Equity –
closed end
|
75
|
5
|
-
|
3
|
73
|
-
|
73
|
Home Equity –
open end
|
470
|
1
|
-
|
(77)
|
392
|
-
|
392
|
Commercial
& Industrial – Non-Real Estate
|
586
|
29
|
26
|
(109)
|
474
|
-
|
474
|
Consumer
|
78
|
1
|
1
|
7
|
85
|
-
|
85
|
Dealer
Finance
|
1,289
|
405
|
184
|
378
|
1,446
|
15
|
1,431
|
Credit
Cards
|
59
|
12
|
9
|
-
|
56
|
-
|
56
|
Total
|
$7,543
|
$453
|
$227
|
$-
|
$7,317
|
$2,182
|
$5,135
|
December 31,
2016
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Allowance
for loan losses:
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$4,442
|
$356
|
$7
|
$(712)
|
$3,381
|
$1,853
|
$1,528
|
Farmland
|
95
|
-
|
-
|
(61)
|
34
|
-
|
34
|
Real
Estate
|
806
|
23
|
4
|
56
|
843
|
221
|
622
|
Multi-Family
|
71
|
-
|
-
|
(48)
|
23
|
-
|
23
|
Commercial Real
Estate
|
445
|
19
|
135
|
144
|
705
|
-
|
705
|
Home Equity –
closed end
|
174
|
8
|
-
|
(91)
|
75
|
-
|
75
|
Home Equity –
open end
|
634
|
370
|
120
|
86
|
470
|
60
|
410
|
Commercial
& Industrial – Non-Real Estate
|
1,055
|
293
|
267
|
(443)
|
586
|
-
|
586
|
Consumer
|
108
|
37
|
19
|
(12)
|
78
|
-
|
78
|
Dealer
Finance
|
836
|
1,081
|
417
|
1,117
|
1,289
|
20
|
1,269
|
Credit
Cards
|
115
|
74
|
54
|
(36)
|
59
|
-
|
59
|
Total
|
$8,781
|
$2,261
|
$1,023
|
$-
|
$7,543
|
$2,154
|
$5,389
|
March 31,
2017
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$73,874
|
$10,788
|
$63,086
|
Farmland
|
15,034
|
1,858
|
13,176
|
Real
Estate
|
169,664
|
1,953
|
167,711
|
Multi-Family
|
6,714
|
-
|
6,714
|
Commercial Real
Estate
|
148,724
|
100
|
148,624
|
Home Equity –
closed end
|
11,172
|
-
|
11,172
|
Home Equity
–open end
|
54,607
|
-
|
54,607
|
Commercial &
Industrial – Non-Real Estate
|
32,847
|
167
|
32,680
|
Consumer
|
7,530
|
12
|
7,518
|
Dealer
Finance
|
68,135
|
78
|
68,057
|
Credit
Cards
|
2,705
|
-
|
2,705
|
|
$591,006
|
$14,956
|
$576,050
|
Total
|
|
|
|
December 31,
2016
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$76,172
|
$9,888
|
$66,284
|
Farmland
|
12,901
|
-
|
12,901
|
Real
Estate
|
172,758
|
1,974
|
170,784
|
Multi-Family
|
7,605
|
-
|
7,605
|
Commercial Real
Estate
|
150,061
|
2,910
|
147,151
|
Home Equity –
closed end
|
11,453
|
-
|
11,453
|
Home Equity
–open end
|
54,420
|
-
|
54,420
|
Commercial &
Industrial – Non-Real Estate
|
31,306
|
170
|
31,136
|
Consumer
|
6,643
|
13
|
6,630
|
Dealer
Finance
|
65,495
|
87
|
65,408
|
Credit
Cards
|
2,822
|
-
|
2,822
|
|
$591,636
|
$15,042
|
$576,594
|
Total
|
|
|
|
March 31, 2017
|
Grade 1
Minimal Risk
|
Grade 2
Modest Risk
|
Grade 3
Average Risk
|
Grade 4 Acceptable Risk
|
Grade 5 Marginally Acceptable
|
Grade 6
Watch
|
Grade 7 Substandard
|
Grade 8
Doubtful
|
Total
|
Construction/Land
Development
|
$-
|
$962
|
$12,962
|
$39,234
|
$8,281
|
$3,396
|
$9,039
|
$-
|
$73,874
|
Farmland
|
64
|
200
|
3,546
|
3,100
|
4,413
|
1,853
|
1,858
|
-
|
15,034
|
Real
Estate
|
-
|
1,127
|
54,843
|
77,826
|
28,301
|
4,850
|
2,717
|
-
|
169,664
|
Multi-Family
|
-
|
291
|
2,975
|
3,265
|
183
|
-
|
-
|
-
|
6,714
|
Commercial
Real Estate
|
-
|
2,684
|
35,662
|
90,296
|
18,611
|
1,228
|
243
|
-
|
148,724
|
Home
Equity – closed end
|
-
|
150
|
3,876
|
3,987
|
1,717
|
1,405
|
37
|
-
|
11,172
|
Home
Equity – open end
|
124
|
1,550
|
16,210
|
31,515
|
4,545
|
125
|
538
|
-
|
54,607
|
Commercial
& Industrial (Non-Real Estate)
|
311
|
768
|
10,643
|
19,107
|
1,875
|
143
|
-
|
-
|
32,847
|
Consumer
(excluding dealer)
|
62
|
280
|
2,033
|
1,317
|
1,227
|
2,158
|
453
|
-
|
7,530
|
Total
|
$561
|
$8,012
|
$142,750
|
$269,647
|
$69,153
|
$15,158
|
$14,885
|
$-
|
$520,166
|
|
|
|
|
|
|
|
|
|
|
|
Credit Cards
|
Dealer Finance
|
Performing
|
$2,705
|
$67,957
|
Non
performing
|
-
|
178
|
Total
|
$2,705
|
$68,135
|
December 31,
2016
|
Grade 1
Minimal Risk
|
Grade 2
Modest Risk
|
Grade 3
Average Risk
|
Grade 4
Acceptable Risk
|
Grade 5 Marginally Acceptable
|
Grade 6 Watch
|
Grade 7
Substandard
|
Grade 8 Doubtful
|
Total
|
Construction/Land
Development
|
$-
|
$1,478
|
$10,870
|
$43,863
|
$8,399
|
$2,473
|
$9,089
|
$-
|
$76,172
|
Farmland
|
65
|
-
|
3,073
|
3,456
|
4,446
|
1,861
|
-
|
-
|
12,901
|
Real
Estate
|
-
|
1,149
|
62,168
|
74,242
|
28,266
|
4,680
|
2,253
|
-
|
172,758
|
Multi-Family
|
-
|
311
|
3,009
|
4,099
|
186
|
-
|
-
|
-
|
7,605
|
Commercial
Real Estate
|
-
|
2,793
|
32,986
|
91,157
|
19,181
|
1,840
|
2,104
|
-
|
150,061
|
Home
Equity – closed end
|
-
|
150
|
3,966
|
4,139
|
1,746
|
1,414
|
38
|
-
|
11,453
|
Home
Equity – open end
|
124
|
1,724
|
16,415
|
30,974
|
4,547
|
125
|
511
|
-
|
54,420
|
Commercial
& Industrial (Non-Real Estate)
|
1,375
|
1,267
|
6,827
|
19,530
|
2,198
|
39
|
70
|
-
|
31,306
|
Consumer
(excluding dealer)
|
67
|
174
|
1,837
|
607
|
1,242
|
2,252
|
466
|
-
|
6,643
|
Total
|
$1,631
|
$9,046
|
$141,151
|
$272,065
|
$70,211
|
$14,684
|
$14,531
|
$-
|
$523,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Cards
|
Dealer Finance
|
|
Performing
|
|
|
|
|
|
|
$2,822
|
$65,291
|
|
Non
performing
|
|
|
|
|
|
|
-
|
204
|
|
Total
|
|
|
|
|
|
|
$2,822
|
$65,495
|
|
|
Three Months
Ended
|
|
|
March 31,
2017
|
March 31,
2016
|
|
|
|
Service
cost
|
$173,961
|
$157,968
|
Interest
cost
|
121,802
|
113,224
|
Expected return on
plan assets
|
(212,774)
|
(213,604)
|
Amortization of
prior service cost
|
(3,809)
|
(3,809)
|
Amortization of net
loss
|
71,024
|
55,786
|
Net periodic
pension cost
|
$150,204
|
$109,565
|
|
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.
|
March 31,
2017
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U. S.
Treasuries
|
$4,008
|
$-
|
$4,008
|
$-
|
U. S. Government
sponsored enterprises
|
19,998
|
|
19,998
|
|
Mortgage-backed
obligations of federal agencies
|
598
|
-
|
598
|
-
|
Equity
securities
|
135
|
-
|
135
|
-
|
Total securities
available for sale
|
$24,739
|
-
|
$24,739
|
-
|
December 31,
2016
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U. S.
Treasuries
|
$24,014
|
$-
|
$24,014
|
$-
|
Mortgage-backed
obligations of federal agencies
|
634
|
-
|
634
|
-
|
Equity
securities
|
135
|
-
|
135
|
-
|
Total securities
available for sale
|
$24,783
|
-
|
$24,783
|
-
|
March 31,
2017
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$5,412
|
-
|
-
|
$5,412
|
Real
Estate
|
985
|
-
|
-
|
985
|
Dealer
Finance
|
44
|
-
|
-
|
44
|
Impaired
loans
|
$6,441
|
-
|
-
|
$6,441
|
December 31,
2016
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$4,739
|
-
|
-
|
$4,739
|
Real
Estate
|
985
|
-
|
-
|
985
|
Commercial
Real Estate
|
892
|
-
|
-
|
892
|
Dealer
Finance
|
67
|
-
|
-
|
67
|
Impaired
loans
|
$6,683
|
-
|
-
|
$6,683
|
|
Fair Value at
March 31, 2017
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
|
|
|
|
|
Impaired
Loans
|
$6,441
|
Discounted
appraised value
|
Discount for
selling costs and marketability
|
2%-50% (Average
4.7%)
|
March 31,
2017
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$2,076
|
-
|
-
|
$2,076
|
December 31,
2016
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$2,076
|
-
|
-
|
$2,076
|
|
Fair Value at
March 31, 2017
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
|
|
|
|
|
Other real estate
owned
|
$2,076
|
Discounted
appraised value
|
Discount for
selling costs
|
5%-15% (Average
8%)
|
|
|
Fair Value
Measurements at March 31, 2017 Using
|
|||
(dollars in
thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Fair Value at
March 31, 2017
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$12,113
|
$12,113
|
$-
|
$-
|
$12,113
|
Securities
|
24,864
|
-
|
24,864
|
-
|
24,864
|
Loans held for
sale
|
37,698
|
-
|
37,698
|
-
|
37,698
|
Loans held for
investment, net
|
583,689
|
-
|
-
|
596,575
|
596,575
|
Interest
receivable
|
1,818
|
-
|
1,818
|
-
|
1,818
|
Bank owned life
insurance
|
13,622
|
-
|
13,622
|
-
|
13,622
|
Total
|
$673,804
|
$12,113
|
$78,002
|
$596,575
|
$686,690
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$536,560
|
$-
|
$381,595
|
$155,779
|
$537,374
|
Short-term
debt
|
20,000
|
-
|
20,000
|
-
|
20,000
|
Long-term
debt
|
53,045
|
-
|
-
|
53,105
|
53,105
|
Interest
payable
|
229
|
-
|
229
|
-
|
229
|
Total
|
$609,834
|
$-
|
$401,824
|
$208,884
|
$610,708
|
|
|
Fair Value
Measurements at December 31, 2016 Using
|
|||
(dollars in
thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Fair Value at
December 31, 2016
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$16,355
|
$16,355
|
$-
|
$-
|
$16,355
|
Securities
|
24,908
|
-
|
24,908
|
-
|
24,908
|
Loans held for
sale
|
62,735
|
-
|
62,735
|
-
|
62,735
|
Loans held for
investment, net
|
584,093
|
-
|
-
|
598,991
|
598,991
|
Interest
receivable
|
1,785
|
-
|
1,785
|
-
|
1,785
|
Bank owned life
insurance
|
13,513
|
-
|
13,513
|
-
|
13,513
|
Total
|
$703,389
|
$16,355
|
$102,941
|
$598,991
|
$718,287
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$537,085
|
$-
|
$379,857
|
$158,073
|
$537,930
|
Short-term
debt
|
40,000
|
-
|
40,000
|
-
|
40,000
|
Long-term
debt
|
64,237
|
-
|
-
|
63,945
|
63,945
|
Interest
payable
|
228
|
-
|
228
|
-
|
228
|
Total
|
$641,550
|
$-
|
$420,085
|
$222,018
|
$642,103
|
|
March 31,
2016
|
||
|
|
Pre-Modification
|
Post-Modification
|
(in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Consumer
|
1
|
$17
|
$17
|
Total
|
1
|
$17
|
$17
|
(dollars in
thousands)
|
Unrealized
Securities Gains (Losses)
|
Adjustments
Related to Pension Plan
|
Accumulated
Other Comprehensive Loss
|
Balance at December
31, 2016
|
$6
|
$(3,171)
|
$(3,165)
|
Change
in unrealized securities gains (losses), net of tax
|
(1)
|
-
|
(1)
|
Change
in unfunded pension liability, net of tax
|
-
|
-
|
-
|
Balance at March
31, 2017
|
$5
|
$(3,171)
|
$(3,166)
|
|
Three Months Ended March 31, 2017
|
||||||
|
F&M Bank
|
VBS Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$7,960,468
|
$35,296
|
$37,274
|
$-
|
$13
|
$(22,711)
|
$8,010,340
|
Service
charges on deposits
|
315,336
|
-
|
-
|
-
|
-
|
-
|
315,336
|
Investment
services and insurance income
|
96
|
-
|
173,791
|
-
|
-
|
-
|
173,887
|
Mortgage
banking income, net
|
-
|
499,927
|
-
|
-
|
-
|
-
|
499,927
|
Title
insurance income
|
-
|
-
|
-
|
198,546
|
-
|
-
|
198,546
|
Income
from bank owned life insurance
|
112,316
|
-
|
-
|
-
|
-
|
-
|
112,316
|
Low
income housing partnership losses
|
(185,329)
|
-
|
-
|
-
|
-
|
-
|
(185,329)
|
ATM
and check card fees
|
329,943
|
-
|
-
|
-
|
-
|
-
|
329,943
|
Gain
on prepayment of long-term debt
|
503,830
|
-
|
-
|
-
|
-
|
-
|
503,830
|
Loss
on investments
|
-
|
(39,474)
|
(2,440)
|
-
|
-
|
-
|
(41,914)
|
Other
operating income
|
138,555
|
-
|
-
|
-
|
-
|
-
|
138,555
|
Total
income
|
9,175,215
|
495,749
|
208,625
|
198,546
|
13
|
(22,711)
|
10,055,437
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
907,382
|
21,145
|
-
|
111
|
-
|
(22,711)
|
905,927
|
Provision
for loan losses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Salary
expense
|
2,192,790
|
319,987
|
115,559
|
105,726
|
-
|
-
|
2,734,062
|
Employee
benefit expense
|
815,613
|
85,625
|
-
|
51,582
|
-
|
-
|
952,820
|
Occupancy
expense
|
200,915
|
30,198
|
-
|
17,860
|
-
|
-
|
248,973
|
Equipment
expense
|
170,115
|
9,316
|
-
|
6,686
|
-
|
-
|
186,117
|
FDIC
insurance assessment
|
90,000
|
-
|
-
|
-
|
-
|
-
|
90,000
|
Other
real estate owned, net
|
13,765
|
-
|
-
|
-
|
-
|
-
|
13,765
|
Marketing
expense
|
116,242
|
16,511
|
405
|
1,745
|
-
|
-
|
134,903
|
Legal
and professional fees
|
93,636
|
2,250
|
-
|
-
|
-
|
-
|
95,886
|
ATM
and check card fees
|
167,323
|
933
|
-
|
-
|
-
|
-
|
168,256
|
Telecom
and data processing expense
|
299,207
|
24,168
|
-
|
-
|
-
|
-
|
323,375
|
Directors
fees
|
105,000
|
22,000
|
-
|
-
|
-
|
-
|
127,000
|
Bank
franchise Tax
|
160,006
|
-
|
-
|
-
|
-
|
-
|
160,006
|
Other
operating expenses
|
642,736
|
44,506
|
3,391
|
25,924
|
2,700
|
-
|
719,257
|
Total
expense
|
5,974,730
|
576,639
|
119,355
|
209,634
|
2,700
|
(22,711)
|
6,860,347
|
Income
tax expense
|
868,662
|
-
|
26,670
|
-
|
(18,251)
|
-
|
877,081
|
Net
income (loss)
|
$2,331,823
|
$(80,890)
|
$62,600
|
$(11,088)
|
$15,564
|
$-
|
$2,318,009
|
|
|
|
|
|
|
|
|
Total Assets
|
$717,577,893
|
$3,822,418
|
$6,670,204
|
$499,512
|
$88,990,839
|
$(102,675,187)
|
$714,885,679
|
Goodwill
|
$2,669,517
|
$-
|
$-
|
$-
|
$304,000
|
$-
|
$2,973,517
|
|
Three months ended March 31, 2016
|
||||||
|
F&M Bank
|
VBS Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$7,598,807
|
$6,328
|
$37,116
|
$-
|
$-
|
$(1,487)
|
$7,640,764
|
Service
charges on deposits
|
233,699
|
-
|
-
|
-
|
-
|
-
|
233,699
|
Investment
services and insurance income
|
345
|
-
|
93,887
|
-
|
-
|
-
|
94,232
|
Mortgage
banking income, net
|
-
|
445,056
|
-
|
-
|
-
|
-
|
445,056
|
Title
insurance income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Income
from bank owned life insurance
|
118,584
|
-
|
-
|
-
|
-
|
-
|
118,584
|
Low
income housing partnership losses
|
(182,693)
|
-
|
-
|
-
|
-
|
-
|
(182,693)
|
ATM
and check card fees
|
373,907
|
-
|
-
|
-
|
-
|
-
|
373,907
|
Gain
on prepayment of long-term debt
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Loss
on investments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
operating income
|
120,008
|
-
|
-
|
-
|
-
|
-
|
120,008
|
Total
income
|
8,262,657
|
451,384
|
131,003
|
-
|
-
|
(1,487)
|
8,843,557
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
815,043
|
-
|
-
|
-
|
-
|
(1,487)
|
813,556
|
Provision
for loan losses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Salary
expense
|
2,082,634
|
263,176
|
63,696
|
-
|
-
|
-
|
2,409,506
|
Employee
benefit expense
|
697,248
|
55,696
|
-
|
-
|
-
|
-
|
752,944
|
Occupancy
expense
|
187,930
|
30,321
|
-
|
-
|
-
|
-
|
218,251
|
Equipment
expense
|
183,504
|
8,447
|
-
|
-
|
-
|
-
|
191,951
|
FDIC
insurance assessment
|
112,500
|
-
|
-
|
-
|
-
|
-
|
112,500
|
Other
real estate owned, net
|
17,699
|
-
|
-
|
-
|
-
|
-
|
17,699
|
Marketing
expense
|
115,980
|
20,424
|
351
|
-
|
-
|
-
|
136,755
|
Legal
and professional fees
|
86,273
|
2,475
|
-
|
-
|
-
|
-
|
88,748
|
ATM
and check card fees
|
160,175
|
584
|
-
|
-
|
-
|
-
|
160,759
|
Telecom
and data processing expense
|
243,062
|
20,291
|
-
|
-
|
-
|
-
|
263,353
|
Directors
fees
|
96,000
|
12,000
|
-
|
-
|
-
|
-
|
108,000
|
Bank
franchise Tax
|
147,660
|
-
|
-
|
-
|
-
|
-
|
147,660
|
Other
operating expenses
|
599,406
|
32,657
|
2,595
|
-
|
200
|
-
|
634,858
|
Total
expense
|
5,545,114
|
446,071
|
66,642
|
-
|
200
|
(1,487)
|
6,056,540
|
Income
tax expense
|
704,633
|
-
|
19,507
|
|
(30,437)
|
|
693,703
|
Net
income (loss)
|
$2,012,910
|
$5,313
|
$44,854
|
$-
|
$30,237
|
$-
|
$2,093,314
|
|
|
|
|
|
|
|
|
Total Assets
|
$691,877,477
|
$1,357,279
|
$6,275,637
|
$-
|
$85,034,348
|
$(96,921,832)
|
$687,622,909
|
Goodwill
|
$2,669,517
|
$-
|
$-
|
$-
|
$-
|
$-
|
$2,669,517
|
In
thousands
|
2017
|
2016
|
|
|
|
Net Income from
Bank Operations
|
$2,338
|
$2,059
|
Income from Parent
Company Activities
|
7
|
31
|
Net Income for the
three months ended March 31
|
$2,345
|
$2,090
|
GAAP
Financial Measurements:
(Dollars in
thousands).
|
2017
|
2016
|
|
|
|
Interest Income
– Loans
|
$7,877
|
$7,557
|
Interest Income -
Securities and Other Interest-Earnings Assets
|
133
|
77
|
Interest Expense
– Deposits
|
616
|
558
|
Interest Expense -
Other Borrowings
|
290
|
256
|
Total
Net Interest Income
|
7,104
|
6,820
|
|
|
|
Non-GAAP
Financial Measurements:
|
|
|
Add: Tax Benefit on
Tax-Exempt Interest Income – Loans
|
34
|
32
|
Total
Tax Benefit on Tax-Exempt Interest Income
|
34
|
32
|
Tax-Equivalent
Net Interest Income
|
$7,138
|
$6,852
|
|
March 31,
2017
|
December 31,
2016
|
|
|
|
Nonaccrual Loans
|
|
|
Real
Estate
|
$4,587
|
$4,204
|
Commercial
|
-
|
70
|
Home
Equity
|
253
|
311
|
Other
|
181
|
178
|
|
5,021
|
4,763
|
|
|
|
Loans past due 90 days or more (excluding nonaccrual)
|
|
|
Real
Estate
|
64
|
81
|
Commercial
|
-
|
-
|
Home
Equity
|
6
|
-
|
Other
|
-
|
26
|
|
70
|
107
|
|
|
|
Total Nonperforming
loans
|
$5,091
|
$4,870
|
|
|
|
Restructured Loans
current and performing:
|
|
|
Real
Estate
|
8,634
|
8,641
|
Commercial
|
1,108
|
1,121
|
Home
Equity
|
-
|
-
|
Other
|
90
|
76
|
|
|
|
Nonperforming loans
as a percentage of loans held for investment
|
.86%
|
.82%
|
|
|
|
Net charge offs to
total loans held for investment
|
.04%
|
.21%
|
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
143.72%
|
154.89%
|
|
Three Months
Ended
|
Three Months
Ended
|
||||
|
March 31,
2017
|
March 31,
2016
|
||||
Average
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
Balance2,4
|
Expense
|
Rates
|
Balance2,4
|
Expense
|
Rates
|
Interest income
|
|
|
|
|
|
|
Loans
held for investment1,2
|
$587,484
|
$7,737
|
5.34%
|
$549,138
|
$7,217
|
5.27%
|
Loans
held for sale
|
25,168
|
174
|
2.80%
|
51,112
|
372
|
2.92%
|
Federal
funds sold
|
28,707
|
54
|
.76%
|
6,247
|
7
|
.45%
|
Interest
bearing deposits
|
1,532
|
3
|
.79%
|
892
|
1
|
.45%
|
Investments
|
|
|
|
|
|
|
Taxable
3
|
11,287
|
76
|
2.73%
|
18,161
|
69
|
1.52%
|
Partially
taxable
|
125
|
-
|
-
|
125
|
-
|
-
|
Total
earning assets
|
$654,303
|
$8,044
|
4.99%
|
$625,675
|
$7,666
|
4.91%
|
Interest Expense
|
|
|
|
|
|
|
Demand
deposits
|
120,259
|
125
|
.42%
|
107,450
|
119
|
.44%
|
Savings
|
111,494
|
121
|
.44%
|
92,858
|
100
|
.43%
|
Time
deposits
|
156,222
|
370
|
.96%
|
161,637
|
339
|
.85%
|
Short-term
debt
|
13,246
|
9
|
.28%
|
29,326
|
18
|
.25%
|
Long-term
debt
|
58,504
|
281
|
1.95%
|
47,448
|
238
|
2.01%
|
Total
interest bearing liabilities
|
$459,725
|
$906
|
.80%
|
$438,719
|
$814
|
.74%
|
|
|
|
|
|
|
|
Tax equivalent net
interest income 1
|
|
$7,138
|
|
|
$6,852
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
4.42%
|
|
|
4.39%
|
|
0 - 3
|
4 - 12
|
1 - 5
|
Over
5
|
Not
|
|
|
Months
|
Months
|
Years
|
Years
|
Classified
|
Total
|
|
|
|
|
|
|
|
Uses of funds
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
Commercial
|
$29,608
|
$25,553
|
$120,099
|
$28,059
|
$-
|
$203,319
|
Installment
|
4,712
|
1,009
|
55,524
|
14,420
|
-
|
75,665
|
Real estate loans
for investments
|
97,255
|
58,804
|
148,717
|
4,541
|
-
|
309,317
|
Loans held for
sale
|
37,698
|
-
|
-
|
-
|
-
|
37,698
|
Credit
cards
|
2,705
|
-
|
-
|
-
|
-
|
2,705
|
Interest bearing
bank deposits
|
1,091
|
-
|
-
|
-
|
-
|
1,091
|
Federal funds
sold
|
3,019
|
|
|
|
|
3,019
|
Investment
securities
|
20,000
|
4,008
|
125
|
596
|
135
|
24,864
|
Total
|
$196,088
|
$89,374
|
$324,465
|
$47,616
|
$135
|
$657,678
|
|
|
|
|
|
|
|
Sources of funds
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
$-
|
$32,947
|
$69,982
|
$18,517
|
$-
|
$121,446
|
Savings
deposits
|
-
|
22,599
|
67,797
|
22,599
|
-
|
112,995
|
Certificates of
deposit $100,000 and over
|
4,213
|
13,366
|
32,496
|
-
|
-
|
50,075
|
Other certificates
of deposit
|
8,327
|
35,203
|
61,361
|
-
|
-
|
104,891
|
Short-term
borrowings
|
20,000
|
-
|
-
|
-
|
-
|
20,000
|
Long-term
borrowings
|
1,108
|
3,406
|
36,549
|
11,982
|
-
|
53,045
|
Total
|
$33,648
|
$107,521
|
$268,185
|
$53,098
|
$-
|
$462,452
|
|
|
|
|
|
|
|
Discrete
Gap
|
$162,440
|
$(18,147)
|
$56,280
|
$(5,482)
|
$135
|
$195,226
|
|
|
|
|
|
|
|
Cumulative
Gap
|
$162,440
|
$144,293
|
$200,573
|
$195,091
|
$195,226
|
|
|
|
|
|
|
|
|
Ratio of Cumulative
Gap to Total Earning Assets
|
24.70%
|
21.94%
|
30.50%
|
29.66%
|
29.68%
|
|
Certification of
Chief Executive Officer pursuant to Rule 13a-14(a) (filed
herewith).
|
|
|
|
Certification of
Chief Financial Officer pursuant to Rule 13a-14(a) (filed
herewith).
|
|
|
|
Certifications of
Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
101
|
The
following materials from F&M Bank Corp.’s Quarterly
Report on Form 10Q for the period ended March 31, 2017, formatted
in Extensible Business Reporting Language (XBRL),
include: (i) Consolidated Balance Sheets, (ii) Consolidated
Statements of Income, (iii) Consolidated Statements of
Comprehensive Income, (iv) Consolidated Statements of Changes in
Stockholders’ Equity, (v) Consolidated Statements of Cash
Flows and (vi) related notes (filed herewith).
|
|
|
F & M BANK CORP. |
|
|
|
|
|
|
|
/s/
Dean W.
Withers
|
|
|
|
Dean W.
Withers
|
|
|
|
President and Chief
Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Carrie A. Comer |
|
|
|
Carrie A. Comer |
|
|
|
Senior Vice
President and Chief Financial Officer
|
|
Certification of
Chief Executive Officer pursuant to Rule 13a-14(a) (filed
herewith).
|
|
|
|
Certification of
Chief Financial Officer pursuant to Rule 13a-14(a) (filed
herewith).
|
|
|
|
Certifications of
Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
101
|
The
following materials from F&M Bank Corp.’s Quarterly
Report on Form 10Q for the period ended March 31, 2017, formatted
in Extensible Business Reporting Language (XBRL),
include: (i) Consolidated Balance Sheets, (ii) Consolidated
Statements of Income, (iii) Consolidated Statements of
Comprehensive Income, (iv) Consolidated Statements of Changes in
Stockholders’ Equity, (v) Consolidated Statements of Cash
Flows and (vi) related notes (filed herewith).
|