Virginia | 54-1280811 |
(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting Company x |
Class | Outstanding at November 12, 2014 |
Common Stock, par value - $5 | 3,290,273 shares |
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Certifications
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Three Months Ended
|
||||||||
September 30,
|
||||||||
Interest income
|
2014
|
2013
|
||||||
Interest and fees on loans held for investment
|
$ | 6,665 | $ | 6,320 | ||||
Interest and fees on loans held for sale
|
164 | 80 | ||||||
Interest on federal funds sold
|
7 | 17 | ||||||
Interest on interest bearing deposits
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- | 2 | ||||||
Interest on debt securities
|
37 | 39 | ||||||
Total interest income
|
6,873 | 6,458 | ||||||
Interest expense
|
||||||||
Interest on demand deposits
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165 | 198 | ||||||
Interest on savings accounts
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31 | 29 | ||||||
Interest on time deposits over $100,000
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145 | 197 | ||||||
Interest on other time deposits
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273 | 378 | ||||||
Total interest on deposits
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614 | 802 | ||||||
Interest on short-term debt
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2 | 3 | ||||||
Interest on long-term debt
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292 | 389 | ||||||
Total interest expense
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908 | 1,194 | ||||||
Net interest income
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5,965 | 5,264 | ||||||
Provision for loan losses
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750 | 1,000 | ||||||
Net interest income after provision for loan losses
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5,215 | 4,264 | ||||||
Noninterest income
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||||||||
Service charges
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275 | 307 | ||||||
Insurance and other commissions
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202 | 235 | ||||||
Other
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400 | 387 | ||||||
Income on bank owned life insurance
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118 | 128 | ||||||
Total noninterest income
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995 | 1,057 | ||||||
Noninterest expense
|
||||||||
Salaries
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1,767 | 1,670 | ||||||
Employee benefits
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514 | 521 | ||||||
Occupancy expense
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150 | 148 | ||||||
Equipment expense
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160 | 134 | ||||||
FDIC insurance assessment
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180 | 180 | ||||||
Other
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1,152 | 1,009 | ||||||
Total noninterest expense
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3,923 | 3,662 | ||||||
Income before income taxes
|
2,287 | 1,659 | ||||||
Income tax expense
|
726 | 445 | ||||||
Consolidated net income
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1,561 | 1,214 | ||||||
Net income - Noncontrolling interest (income) loss
|
8 | (31 | ) | |||||
Net Income – F & M Bank Corp
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$ | 1,569 | $ | 1,183 | ||||
Per share data
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||||||||
Net income (basic and dilutive)
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$ | .48 | $ | .47 | ||||
Cash dividends
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$ | .17 | $ | .17 | ||||
Weighted average shares outstanding
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3,289,743 | 2,503,509 |
Nine Months Ended
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||||||||
September 30,
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||||||||
Interest income
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2014
|
2013
|
||||||
Interest and fees on loans held for investment
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$ | 19,443 | $ | 18,763 | ||||
Interest and fees on loans held for sale
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228 | 623 | ||||||
Interest on federal funds sold
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31 | 36 | ||||||
Interest on interest bearing deposits
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- | 4 | ||||||
Interest on debt securities
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136 | 140 | ||||||
Total interest income
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19,838 | 19,566 | ||||||
Interest expense
|
||||||||
Interest on demand deposits
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501 | 608 | ||||||
Interest on savings accounts
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88 | 91 | ||||||
Interest on time deposits over $100,000
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453 | 601 | ||||||
Interest on other time deposits
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857 | 1,203 | ||||||
Total interest on deposits
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1,899 | 2,503 | ||||||
Interest on short-term debt
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6 | 22 | ||||||
Interest on long-term debt
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872 | 1,175 | ||||||
Total interest expense
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2,777 | 3,700 | ||||||
Net interest income
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17,061 | 15,866 | ||||||
Provision for loan losses
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2,250 | 3,025 | ||||||
Net interest income after provision for loan losses
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14,811 | 12,841 | ||||||
Noninterest income
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||||||||
Service charges
|
786 | 845 | ||||||
Insurance and other commissions
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378 | 704 | ||||||
Other
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1,192 | 1,163 | ||||||
Income on bank owned life insurance
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349 | 380 | ||||||
Total noninterest income
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2,705 | 3,092 | ||||||
Noninterest expense
|
||||||||
Salaries
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5,114 | 4,858 | ||||||
Employee benefits
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1,491 | 1,631 | ||||||
Occupancy expense
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465 | 468 | ||||||
Equipment expense
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442 | 404 | ||||||
FDIC insurance assessment
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540 | 546 | ||||||
Other
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3,410 | 2,923 | ||||||
Total noninterest expense
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11,462 | 10,830 | ||||||
Income before income taxes
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6,054 | 5,103 | ||||||
Income tax expense
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1,844 | 1,465 | ||||||
Consolidated net income
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4,210 | 3,638 | ||||||
Net income - Noncontrolling interest (income) loss
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26 | (106 | ) | |||||
Net Income – F & M Bank Corp
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$ | 4,236 | $ | 3,532 | ||||
Per share data
|
||||||||
Net income (basic and dilutive)
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$ | 1.38 | $ | 1.41 | ||||
Cash dividends
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$ | .51 | $ | .51 | ||||
Weighted average shares outstanding
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3,061,432 | 2,501,990 |
Nine Months Ended
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Three Months Ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2014
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2013
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2014
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2013
|
|||||||||||||
Net Income:
|
||||||||||||||||
Net Income – F & M Bank Corp
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$ | 4,236 | $ | 3,532 | $ | 1,569 | $ | 1,183 | ||||||||
Net Income (loss) attributable to noncontrolling interest
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(26 | ) | 106 | (8 | ) | 31 | ||||||||||
4,210 | 3,638 | 1,561 | 1,214 | |||||||||||||
Other comprehensive income (loss):
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||||||||||||||||
Unrealized holding gains (losses) on available-for-sale securities
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20 | (60 | ) | 25 | 52 | |||||||||||
Tax effect
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7 | (20 | ) | 9 | 18 | |||||||||||
Unrealized holding gain (loss), net of tax
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13 | (40 | ) | 16 | 34 | |||||||||||
Total other comprehensive income (loss)
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13 | (40 | ) | 16 | 34 | |||||||||||
Comprehensive income
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$ | 4,223 | $ | 3,598 | $ | 1,577 | $ | 1,248 |
September 30,
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December 31,
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|||||||
2014
|
2013
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|||||||
(Unaudited)
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(Audited)
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|||||||
Assets
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||||||||
Cash and due from banks
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$ | 6,156 | $ | 5,835 | ||||
Money market funds
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1,039 | 708 | ||||||
Federal funds sold
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16,165 | 2 | ||||||
Cash and cash equivalents
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23,360 | 6,545 | ||||||
Securities:
|
||||||||
Held to maturity – fair value of $125 in 2014 and $106 in 2013
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125 | 106 | ||||||
Available for sale
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11,275 | 30,266 | ||||||
Other investments
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7,898 | 8,114 | ||||||
Loans held for sale
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16,131 | 3,804 | ||||||
Loans held for investment
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506,846 | 478,453 | ||||||
Less allowance for loan losses
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(8,601 | ) | (8,184 | ) | ||||
Net loans held for investment
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498,245 | 470,269 | ||||||
Other real estate owned
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3,956 | 2,628 | ||||||
Bank premises and equipment, net
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6,468 | 6,525 | ||||||
Interest receivable
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1,536 | 1,498 | ||||||
Goodwill
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2,670 | 2,670 | ||||||
Bank owned life insurance
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12,465 | 12,122 | ||||||
Other assets
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10,444 | 8,241 | ||||||
Total assets
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$ | 594,573 | $ | 552,788 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
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$ | 110,700 | $ | 92,397 | ||||
Interest bearing:
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||||||||
Demand
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91,669 | 92,562 | ||||||
Money market accounts
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25,222 | 24,894 | ||||||
Savings
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63,401 | 58,292 | ||||||
Time deposits over $100,000
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78,311 | 69,674 | ||||||
All other time deposits
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118,338 | 126,330 | ||||||
Total deposits
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487,641 | 464,149 | ||||||
Short-term debt
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3,784 | 3,423 | ||||||
Accrued liabilities
|
9,043 | 9,384 | ||||||
Subordinated debt
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10,191 | 10,191 | ||||||
Long-term debt
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15,000 | 11,500 | ||||||
Total liabilities
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525,659 | 498,647 | ||||||
Stockholders’ Equity
|
||||||||
Common stock, $5 par value, 6,000,000 shares authorized,
|
||||||||
3,290,381 and 2,511,735 shares issued and outstanding
|
||||||||
in 2014 and 2013, respectively
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16,452 | 12,559 | ||||||
Retained earnings
|
52,967 | 42,089 | ||||||
Noncontrolling interest
|
407 | 418 | ||||||
Accumulated other comprehensive loss
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(912 | ) | (925 | ) | ||||
Total stockholders’ equity
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68,914 | 54,141 | ||||||
Total liabilities and stockholders’ equity
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$ | 594,573 | $ | 552,788 |
Nine Months Ended September 30,
|
||||||||
2014
|
2013
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
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$ | 4,236 | $ | 3,532 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
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449 | 433 | ||||||
Amortization of security premiums, net
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61 | 28 | ||||||
Loans held for sale originated
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(41,385 | ) | (68,116 | ) | ||||
Sale of loans held for sale originated
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39,799 | 77,541 | ||||||
Provision for loan losses
|
2,250 | 3,025 | ||||||
(Increase) Decrease in interest receivable
|
(38 | ) | 188 | |||||
(Increase) Decrease in other assets
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(2,492 | ) | 702 | |||||
Increase (decrease) in accrued expenses
|
(65 | ) | 888 | |||||
Amortization of limited partnership investments
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456 | 438 | ||||||
Income from life insurance investment
|
(348 | ) | (380 | ) | ||||
Gain on Other Real Estate Owned
|
43 | (4 | ) | |||||
Net adjustments
|
(1,270 | ) | 14,743 | |||||
Net cash provided by operating activities
|
2,966 | 18,275 | ||||||
Cash flows from investing activities
|
||||||||
Purchase of investments available for sale
|
(8,614 | ) | (7,067 | ) | ||||
Proceeds from maturity of investments available for sale
|
27,323 | 8,446 | ||||||
Purchase of investments held to maturity
|
(125 | ) | - | |||||
Proceeds from maturity of investments held to maturity
|
106 | - | ||||||
Net (increase) decrease in loans held for investment
|
(10,740 | ) | (16,239 | ) | ||||
Net (increase) decrease in loans held for sale participations
|
(32,376 | ) | 65,005 | |||||
Proceeds from the sale of other real estate owned
|
779 | 525 | ||||||
Purchase of property and equipment
|
(391 | ) | (365 | ) | ||||
Net cash (used in) investing activities
|
(24,038 | ) | 50,305 | |||||
Cash flows from financing activities
|
||||||||
Net change in demand and savings deposits
|
22,845 | 12,700 | ||||||
Net change in time deposits
|
646 | (4,728 | ) | |||||
Net change in short-term debt
|
361 | (31,117 | ) | |||||
Cash dividends paid
|
(1,545 | ) | (1,277 | ) | ||||
Proceeds from issuance of common stock
|
12,080 | 82 | ||||||
Proceeds from long-term debt
|
10,000 | |||||||
Repayment of long-term debt
|
(6,500 | ) | (21,036 | ) | ||||
Net cash provided by (used in) financing activities
|
37,887 | (45,376 | ) | |||||
Net Increase in Cash and Cash Equivalents
|
16,815 | 23,204 | ||||||
Cash and cash equivalents, beginning of period
|
6,545 | 8,997 | ||||||
Cash and cash equivalents, end of period
|
$ | 23,360 | $ | 32,201 | ||||
Supplemental disclosure
|
||||||||
Cash paid for:
|
||||||||
Interest expense
|
$ | 2,745 | $ | 2,600 | ||||
Income taxes
|
1,300 | 800 | ||||||
Transfers from loans to Other Real Estate Owned
|
2,930 | 416 | ||||||
Noncash exchange of other real estate owned
|
(780 | ) | 409 |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2014
|
2013
|
|||||||
Balance, beginning of period
|
$ | 54,141 | $ | 49,384 | ||||
Comprehensive income
|
||||||||
Net income – F & M Bank Corp
|
4,236 | 3,532 | ||||||
Net income attributable to noncontrolling interest
|
(26 | ) | 106 | |||||
Net change in unrealized appreciation on securities available for sale, net of taxes
|
13 | (40 | ) | |||||
Total comprehensive income
|
4,223 | 3,598 | ||||||
Minority Interest Capital Distributions
|
15 | (51 | ) | |||||
Issuance of common stock
|
12,080 | 82 | ||||||
Dividends declared
|
(1,545 | ) | (1,277 | ) | ||||
Balance, end of period
|
$ | 68,914 | $ | 51,736 |
2014
|
2013
|
|||||||||||||||
Market
|
Market
|
|||||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Securities held to maturity
|
||||||||||||||||
U. S. Treasury and agency obligations
|
$ | 125 | $ | 125 | $ | 106 | $ | 106 | ||||||||
Total
|
$ | 125 | $ | 125 | $ | 106 | $ | 106 | ||||||||
September 30, 2014
|
||||||||||||||||
Unrealized
|
Market
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
U. S. Treasury
|
$ | 4,029 | $ | - | $ | 8 | $ | 4,021 | ||||||||
Government sponsored enterprises
|
6,050 | 11 | 7 | 6,054 | ||||||||||||
Mortgage-backed securities
|
1,060 | 5 | - | 1,065 | ||||||||||||
Corporate equities
|
135 | - | - | 135 | ||||||||||||
Total
|
$ | 11,274 | $ | 16 | $ | 15 | $ | 11,275 | ||||||||
December 31, 2013
|
||||||||||||||||
Unrealized
|
Market
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Government sponsored enterprises
|
$ | 29,076 | $ | 11 | $ | 22 | $ | 29,065 | ||||||||
Mortgage-backed securities
|
1,209 | - | 8 | 1,201 | ||||||||||||
Total
|
$ | 30,285 | $ | 11 | $ | 30 | $ | 30,266 |
Securities Held to Maturity
|
Securities Available for Sale
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Due in one year or less
|
$ | 125 | $ | 125 | $ | - | $ | - | ||||||||
Due after one year through five years
|
- | - | 10,079 | 10,075 | ||||||||||||
Due after five years
|
- | - | 1,195 | 1,200 | ||||||||||||
Total
|
$ | 125 | $ | 125 | $ | 11,274 | $ | 11,275 |
Less than 12 Months
|
More than 12 Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
|||||||||||||||||||
September 30, 2014
|
||||||||||||||||||||||||
U. S. Treasury
|
$ | 4,021 | $ | (8 | ) | $ | - | $ | - | $ | 4,021 | $ | (8 | ) | ||||||||||
Government sponsored Enterprises
|
1,996 | (4 | ) | 2,008 | (3 | ) | 4,004 | (7 | ) | |||||||||||||||
Total
|
$ | 6,017 | $ | (12 | ) | $ | 2,008 | $ | (3 | ) | $ | 8,025 | $ | (15 | ) | |||||||||
December 31, 2013
|
||||||||||||||||||||||||
Government sponsored Enterprises
|
$ | 4,984 | $ | (22 | ) | $ | - | $ | - | $ | 4,984 | $ | (22 | ) | ||||||||||
Mortgage backed obligations
|
1,191 | (8 | ) | - | - | 1,191 | (8 | ) | ||||||||||||||||
Total
|
$ | 6,175 | $ | (30 | ) | $ | - | $ | - | $ | 6,175 | $ | (30 | ) |
2014
|
2013
|
|||||||
Construction/Land Development
|
$ | 69,654 | $ | 68,512 | ||||
Farmland
|
11,955 | 13,197 | ||||||
Real Estate
|
155,302 | 154,628 | ||||||
Multi-Family
|
11,461 | 11,797 | ||||||
Commercial Real Estate
|
120,939 | 113,415 | ||||||
Home Equity – closed end
|
9,519 | 10,228 | ||||||
Home Equity – open end
|
51,446 | 47,358 | ||||||
Commercial & Industrial – Non-Real Estate
|
26,454 | 25,903 | ||||||
Consumer
|
9,980 | 10,163 | ||||||
Dealer Finance
|
37,610 | 20,572 | ||||||
Credit Cards
|
2,526 | 2,680 | ||||||
Total
|
$ | 506,846 | $ | 478,453 |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
September 30, 2014
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||
Construction/Land Development
|
$ | 4,547 | $ | 5,130 | $ | - | $ | 5,726 | $ | 110 | ||||||||||
Farmland
|
1,444 | 1,445 | - | 1,457 | 42 | |||||||||||||||
Real Estate
|
142 | 142 | - | 286 | 4 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
1,448 | 1,747 | - | 1,283 | 60 | |||||||||||||||
Home Equity – closed end
|
- | - | - | 221 | - | |||||||||||||||
Home Equity – open end
|
- | - | - | 20 | - | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
194 | 194 | - | 205 | 8 | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
7,775 | 8,658 | 9,198 | 224 | |||||||||||||||||
Impaired loans with a valuation allowance
|
||||||||||||||||||||
Construction/Land Development
|
11,293 | 12,484 | 1,440 | 10,789 | 241 | |||||||||||||||
Farmland
|
- | - | - | - | - | |||||||||||||||
Real Estate
|
914 | 914 | 118 | 900 | 46 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
1,015 | 1,015 | 68 | 1,050 | 7 | |||||||||||||||
Home Equity – closed end
|
- | - | - | 142 | - | |||||||||||||||
Home Equity – open end
|
- | - | - | 40 | - | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | - | - | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
13,222 | 14,413 | 1,626 | 12,921 | 294 | ||||||||||||||||
Total impaired loans
|
$ | 20,997 | $ | 23,071 | $ | 1,626 | $ | 22,119 | $ | 518 |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
December 31, 2013
|
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
|||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||
Construction/Land Development
|
$ | 4,543 | $ | 5,125 | $ | - | $ | 5,750 | $ | 153 | ||||||||||
Farmland
|
1,459 | 1,459 | - | 1,475 | 67 | |||||||||||||||
Real Estate
|
49 | 49 | - | 529 | 3 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
851 | 851 | - | 616 | 56 | |||||||||||||||
Home Equity – closed end
|
308 | 308 | - | 284 | 25 | |||||||||||||||
Home Equity – open end
|
- | - | - | 20 | - | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
242 | 242 | - | 64 | 12 | |||||||||||||||
Consumer
|
- | - | - | - | - | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
7,452 | 8,034 | 8,738 | 316 | |||||||||||||||||
Impaired loans with a valuation allowance
|
||||||||||||||||||||
Construction/Land Development
|
9,716 | 11,141 | 1,560 | 10,855 | 175 | |||||||||||||||
Farmland
|
- | - | - | - | - | |||||||||||||||
Real Estate
|
1,145 | 1,145 | 154 | 966 | 48 | |||||||||||||||
Multi-Family
|
- | - | - | - | - | |||||||||||||||
Commercial Real Estate
|
1,118 | 1,418 | 282 | 1,171 | 4 | |||||||||||||||
Home Equity – closed end
|
180 | 180 | 17 | 409 | 3 | |||||||||||||||
Home Equity – open end
|
100 | 100 | 9 | 93 | 5 | |||||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | 141 | - | |||||||||||||||
Consumer
|
2 | 2 | - | 1 | 1 | |||||||||||||||
Credit cards
|
- | - | - | - | - | |||||||||||||||
Dealer Finance
|
- | - | - | - | - | |||||||||||||||
12,261 | 13,986 | 2,022 | 13,636 | 236 | ||||||||||||||||
Total impaired loans
|
$ | 19,713 | $ | 22,020 | $ | 2,022 | $ | 22,374 | $ | 552 |
|
A summary of the allowance for loan losses follows (in thousands):
|
September 30, 2014
|
Beginning Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending Balance
|
Percentage of loans in each category to total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Construction/Land Development
|
$ | 4,007 | $ | 1,191 | $ | 14 | $ | 1,128 | $ | 3,958 | 46.03 | % | $ | 1,440 | $ | 2,518 | ||||||||||||||||
Farmland
|
(2 | ) | - | - | - | (2 | ) | (.02 | %) | - | (2 | ) | ||||||||||||||||||||
Real Estate
|
400 | 205 | - | 158 | 353 | 4.10 | % | 118 | 235 | |||||||||||||||||||||||
Multi-Family
|
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Commercial Real Estate
|
777 | - | 32 | (194 | ) | 615 | 7.14 | % | 68 | 547 | ||||||||||||||||||||||
Home Equity – closed end
|
157 | - | - | (15 | ) | 142 | 1.65 | % | - | 142 | ||||||||||||||||||||||
Home Equity – open end
|
476 | 79 | - | 130 | 527 | 6.13 | % | - | 527 | |||||||||||||||||||||||
Commercial & Industrial – Non-Real Estate
|
1,464 | 385 | 49 | 403 | 1,531 | 17.80 | % | - | 1,531 | |||||||||||||||||||||||
Consumer
|
156 | 32 | 23 | 23 | 170 | 1.98 | % | - | 170 | |||||||||||||||||||||||
Dealer Finance
|
628 | 60 | 5 | 616 | 1,189 | 13.82 | % | - | 1,189 | |||||||||||||||||||||||
Credit Cards
|
121 | 35 | 31 | 1 | 118 | 1.37 | % | - | 118 | |||||||||||||||||||||||
Total
|
$ | 8,184 | $ | 1,987 | $ | 154 | $ | 2,250 | $ | 8,601 | 100.00 | % | $ | 1,626 | $ | 6,975 |
December 31, 2013
|
Beginning Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending Balance
|
Percentage of loans in each category to total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Construction/Land Development
|
$ | 2,771 | $ | 2,127 | $ | 40 | $ | 3,323 | $ | 4,007 | 48.96 | % | $ | 1,560 | $ | 2,447 | ||||||||||||||||
Farmland
|
(2 | ) | - | - | - | (2 | ) | (.03 | %) | - | (2 | ) | ||||||||||||||||||||
Real Estate
|
924 | 173 | - | (351 | ) | 400 | 4.89 | % | 154 | 246 | ||||||||||||||||||||||
Multi-Family
|
(37 | ) | - | - | 37 | - | - | - | - | |||||||||||||||||||||||
Commercial Real Estate
|
1,113 | 201 | 42 | (177 | ) | 777 | 9.49 | % | 282 | 495 | ||||||||||||||||||||||
Home Equity – closed end
|
360 | 159 | - | (44 | ) | 157 | 1.92 | % | 17 | 140 | ||||||||||||||||||||||
Home Equity – open end
|
659 | 68 | 29 | (144 | ) | 476 | 5.82 | % | 9 | 467 | ||||||||||||||||||||||
Commercial & Industrial – Non-Real Estate
|
2,113 | 986 | 127 | 210 | 1,464 | 17.89 | % | - | 1,464 | |||||||||||||||||||||||
Consumer
|
51 | 173 | 14 | 264 | 156 | 1.90 | % | - | 156 | |||||||||||||||||||||||
Dealer Finance
|
72 | 17 | - | 573 | 628 | 7.68 | % | - | 628 | |||||||||||||||||||||||
Credit Cards
|
130 | 121 | 28 | 84 | 121 | 1.48 | % | - | 121 | |||||||||||||||||||||||
Unallocated
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total
|
$ | 8,154 | $ | 4,025 | $ | 280 | $ | 3,775 | $ | 8,184 | 100.00 | % | $ | 2,022 | $ | 6,162 |
September 30, 2014
|
Loan Receivable
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
|||||||||
Construction/Land Development
|
$ | 69,654 | $ | 15,840 | $ | 53,814 | ||||||
Farmland
|
11,955 | 1,444 | 10,511 | |||||||||
Real Estate
|
155,302 | 1,056 | 154,246 | |||||||||
Multi-Family
|
11,461 | - | 11,461 | |||||||||
Commercial Real Estate
|
120,939 | 2,463 | 118,476 | |||||||||
Home Equity – closed end
|
9,519 | - | 9,519 | |||||||||
Home Equity –open end
|
51,446 | - | 51,446 | |||||||||
Commercial & Industrial – Non-Real Estate
|
26,454 | 194 | 26,260 | |||||||||
Consumer
|
9,980 | - | 9,980 | |||||||||
Dealer Finance
|
37,610 | - | 37,610 | |||||||||
Credit Cards
|
2,526 | - | 2,526 | |||||||||
Total | $ | 506,846 | $ | 20,997 | $ | 485,849 |
December 31, 2013
|
Loan Receivable
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
|||||||||
Construction/Land Development
|
$ | 68,512 | $ | 14,259 | $ | 54,253 | ||||||
Farmland
|
13,197 | 1,459 | 11,738 | |||||||||
Real Estate
|
154,628 | 1,194 | 153,434 | |||||||||
Multi-Family
|
11,797 | - | 11,797 | |||||||||
Commercial Real Estate
|
113,415 | 1,969 | 111,446 | |||||||||
Home Equity – closed end
|
10,228 | 488 | 9,740 | |||||||||
Home Equity –open end
|
47,358 | 100 | 47,258 | |||||||||
Commercial & Industrial – Non-Real Estate
|
25,903 | 242 | 25,661 | |||||||||
Consumer
|
10,163 | 2 | 10,161 | |||||||||
Dealer Finance
|
20,572 | 20,572 | ||||||||||
Credit Cards
|
2,680 | - | 2,680 | |||||||||
Total | $ | 478,453 | $ | 19,713 | $ | 458,740 |
September 30, 2014
|
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
|
|||||||||||||||||||||
Construction/Land Development
|
$ | 1,217 | $ | 200 | $ | - | $ | 4,928 | $ | 6,345 | $ | 63,309 | $ | 69,654 | ||||||||||||||
Farmland
|
97 | - | - | - | 97 | 11,858 | 11,955 | |||||||||||||||||||||
Real Estate
|
2,329 | 536 | - | 657 | 3,522 | 151,780 | 155,302 | |||||||||||||||||||||
Multi-Family
|
- | - | - | - | - | 11,461 | 11,461 | |||||||||||||||||||||
Commercial Real Estate
|
74 | - | - | 1,319 | 1,393 | 119,546 | 120,939 | |||||||||||||||||||||
Home Equity – closed end
|
95 | 15 | 10 | - | 120 | 9,399 | 9,519 | |||||||||||||||||||||
Home Equity – open end
|
532 | 10 | - | 23 | 565 | 50,881 | 51,446 | |||||||||||||||||||||
Commercial & Industrial – Non- Real Estate
|
39 | 5 | - | 15 | 59 | 26,395 | 26,454 | |||||||||||||||||||||
Consumer
|
89 | 106 | 11 | 3 | 209 | 9,771 | 9,980 | |||||||||||||||||||||
Dealer Finance
|
301 | 98 | 75 | 12 | 486 | 37,124 | 37,610 | |||||||||||||||||||||
Credit Cards
|
15 | 1 | - | - | 16 | 2,510 | 2,526 | |||||||||||||||||||||
Total
|
$ | 4,788 | $ | 971 | $ | 96 | $ | 6,957 | $ | 12,812 | $ | 494,034 | $ | 506,846 |
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, 2013
|
||||||||||||||||||||||||||||
Construction/Land Development
|
$ | 167 | $ | 735 | $ | - | $ | 8,556 | $ | 9,458 | $ | 59,054 | $ | 68,512 | ||||||||||||||
Farmland
|
- | - | - | - | - | 13,197 | 13,197 | |||||||||||||||||||||
Real Estate
|
4,659 | 920 | 246 | 1,407 | 7,232 | 147,396 | 154,628 | |||||||||||||||||||||
Multi-Family
|
107 | - | - | - | 107 | 11,690 | 11,797 | |||||||||||||||||||||
Commercial Real Estate
|
858 | - | - | 1,474 | 2,332 | 111,083 | 113,415 | |||||||||||||||||||||
Home Equity – closed end
|
122 | 79 | 10 | 180 | 391 | 9,837 | 10,228 | |||||||||||||||||||||
Home Equity – open end
|
549 | 39 | 51 | 222 | 861 | 46,497 | 47,358 | |||||||||||||||||||||
Commercial & Industrial – Non- Real Estate
|
148 | 20 | 4 | 416 | 588 | 25,315 | 25,903 | |||||||||||||||||||||
Consumer
|
169 | 71 | 5 | - | 245 | 9,918 | 10,163 | |||||||||||||||||||||
Dealer Finance
|
335 | 72 | 11 | - | 418 | 20,154 | 20,572 | |||||||||||||||||||||
Credit Cards
|
21 | 3 | - | - | 24 | 2,656 | 2,680 | |||||||||||||||||||||
Total
|
$ | 7,135 | $ | 1,939 | $ | 327 | $ | 12,255 | $ | 21,656 | $ | 456,797 | $ | 478,453 |
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
|
$ | - | $ | 167 | $ | 8,228 | $ | 25,851 | $ | 8,394 | $ | 4,134 | $ | 22,880 | $ | - | $ | 69,654 | ||||||||||||||||||
Farmland
|
68 | - | 1,582 | 3,257 | 4,913 | - | 2,135 | - | 11,955 | |||||||||||||||||||||||||||
Real Estate
|
- | 635 | 59,484 | 62,139 | 23,260 | 7,311 | 2,473 | - | 155,302 | |||||||||||||||||||||||||||
Multi-Family
|
- | 487 | 4,189 | 2,207 | 4,578 | - | - | 11,461 | ||||||||||||||||||||||||||||
Commercial Real Estate
|
- | 1,449 | 22,315 | 64,766 | 18,890 | 10,820 | 2,699 | - | 120,939 | |||||||||||||||||||||||||||
Home Equity – closed end
|
- | - | 4,473 | 3,039 | 1,832 | 163 | 12 | - | 9,519 | |||||||||||||||||||||||||||
Home Equity – open end
|
- | 1,535 | 13,153 | 28,219 | 4,123 | 1,859 | 2,557 | - | 51,446 | |||||||||||||||||||||||||||
Commercial & Industrial (Non-Real Estate)
|
684 | 76 | 4,129 | 16,226 | 4,597 | 725 | 17 | - | 26,454 | |||||||||||||||||||||||||||
Total
|
$ | 752 | $ | 4,349 | $ | 117,553 | $ | 205,704 | $ | 70,587 | $ | 25,012 | $ | 32,773 | $ | - | $ | 456,730 |
Credit Cards
|
Consumer
|
|||||||
Performing
|
$ | 2,526 | $ | 47,489 | ||||
Non performing
|
- | 101 | ||||||
Total
|
$ | 2,526 | $ | 47,590 |
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
|
$ | - | $ | - | $ | 3,166 | $ | 25,657 | $ | 11,116 | $ | 2,946 | $ | 25,627 | $ | - | $ | 68,512 | ||||||||||||||||||
Farmland
|
69 | - | 1,406 | 5,206 | 4,816 | 143 | 1,557 | - | 13,197 | |||||||||||||||||||||||||||
Real Estate
|
- | 562 | 68,241 | 52,190 | 19,037 | 7,821 | 6,777 | - | 154,628 | |||||||||||||||||||||||||||
Multi-Family
|
- | 668 | 4,442 | 2,275 | 4,412 | - | - | - | 11,797 | |||||||||||||||||||||||||||
Commercial Real Estate
|
- | 1,897 | 18,062 | 55,350 | 21,677 | 13,406 | 3,023 | - | 113,415 | |||||||||||||||||||||||||||
Home Equity – closed end
|
- | - | 4,574 | 3,117 | 1,870 | 281 | 386 | - | 10,228 | |||||||||||||||||||||||||||
Home Equity – open end
|
- | 1,482 | 13,308 | 26,734 | 4,840 | 327 | 667 | - | 47,358 | |||||||||||||||||||||||||||
Commercial & Industrial (Non-Real Estate)
|
815 | 92 | 3,631 | 16,265 | 3,108 | 1,516 | 476 | - | 25,903 | |||||||||||||||||||||||||||
Total
|
$ | 884 | $ | 4,701 | $ | 116,830 | $ | 186,794 | $ | 70,876 | $ | 26,440 | $ | 38,513 | $ | - | $ | 445,038 |
Credit Cards
|
Consumer
|
|||||||
Performing
|
$ | 2,680 | $ | 30,719 | ||||
Non performing
|
- | 16 | ||||||
Total
|
$ | 2,680 | $ | 30,735 |
Nine Months Ended
|
Three Months Ended
|
|||||||||||||||
September 30
2014
|
September 30,
2013
|
September 30,
2014
|
September 30,
2013
|
|||||||||||||
Service cost
|
$ | 375,771 | $ | 449,949 | $ | 125,257 | $ | 149,983 | ||||||||
Interest cost
|
283,281 | 262,734 | 94,427 | 87,578 | ||||||||||||
Expected return on plan assets
|
(523,689 | ) | (477,060 | ) | (174,563 | ) | (159,020 | ) | ||||||||
Amortization of net obligation at transition
|
- | - | - | - | ||||||||||||
Amortization of prior service cost
|
(11,427 | ) | (11,427 | ) | (3,809 | ) | (3,809 | ) | ||||||||
Amortization of net (gain) or loss
|
27,084 | 152,388 | 9,028 | 50,796 | ||||||||||||
Net periodic pension cost
|
$ | 151,020 | $ | 376,584 | $ | 50,340 | $ | 125,528 |
Fair Value at
September 30,
2014
|
Valuation Technique
|
Significant Unobservable Inputs
|
Range
|
||||||
Impaired Loans
|
$ | 11,596 |
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55% | ||||
Other Real Estate Owned
|
$ | 3,956 |
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55% |
Fair Value at
December 31,
2013
|
Valuation Technique
|
Significant Unobservable Inputs
|
Range
|
||||||
Impaired Loans
|
$ |
10,239
|
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55%
|
||||
Other Real Estate Owned
|
$ |
2,628
|
Discounted appraised value
|
Discount for selling costs and age of appraisals
|
15%-55%
|
September 30, 2014
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
U.S. Treasury Securities
|
$ | 4,021 | $ | - | $ | 4,021 | ||||||||||
Government sponsored enterprises
|
6,054 | - | 6,054 | - | ||||||||||||
Mortgage-backed obligations of federal agencies
|
1,065 | - | 1,065 | - | ||||||||||||
Corporate equities
|
135 | - | 135 | - | ||||||||||||
Investment securities available for sale
|
$ | 11,275 | $ | - | $ | 11,275 | $ | - | ||||||||
Total assets at fair value
|
$ | 11,275 | $ | - | $ | 11,275 | $ | - | ||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Derivative financial instruments at fair value
|
$ | 33 | $ | - | $ | 33 | $ | - |
December 31, 2013
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Government sponsored enterprises
|
$ | 29,065 | $ | - | $ | 29,065 | $ | - | ||||||||
Mortgage-backed obligations of federal agencies
|
1,201 | - | 1,201 | - | ||||||||||||
Investment securities available for sale
|
30,266 | - | 30,266 | - | ||||||||||||
Total assets at fair value
|
$ | 30,266 | $ | - | $ | 30,266 | $ | - | ||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Derivative financial instruments at fair value
|
$ | 31 | $ | - | $ | 31 | $ | - |
September 30, 2014
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Other Real Estate Owned
|
$ | 3,956 | - | - | $ | 3,956 | ||||||||||
- | - | |||||||||||||||
Construction/Land Development
|
9,854 | - | - | 9,854 | ||||||||||||
Farmland
|
- | - | - | - | ||||||||||||
Real Estate
|
796 | - | - | 796 | ||||||||||||
Multi-Family
|
- | - | - | - | ||||||||||||
Commercial Real Estate
|
946 | - | - | 946 | ||||||||||||
Home Equity – closed end
|
- | - | - | - | ||||||||||||
Home Equity – open end
|
- | - | - | - | ||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | - | ||||||||||||
Consumer
|
- | - | - | - | ||||||||||||
Credit cards
|
- | - | - | - | ||||||||||||
Dealer Finance
|
- | - | - | - | ||||||||||||
Total Impaired loans
|
11,596 | - | - | 11,596 | ||||||||||||
Total assets at fair value
|
$ | 15,552 | $ | - | $ | - | $ | 15,552 | ||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - |
December 31, 2013
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Other Real Estate Owned
|
$ | 2,628 | - | - | $ | 2,628 | ||||||||||
- | - | |||||||||||||||
Construction/Land Development
|
8,156 | - | - | 8,156 | ||||||||||||
Farmland
|
- | - | - | - | ||||||||||||
Real Estate
|
991 | - | - | 991 | ||||||||||||
Multi-Family
|
- | - | - | - | ||||||||||||
Commercial Real Estate
|
836 | - | - | 836 | ||||||||||||
Home Equity – closed end
|
163 | - | - | 163 | ||||||||||||
Home Equity – open end
|
91 | - | - | 91 | ||||||||||||
Commercial & Industrial – Non-Real Estate
|
- | - | - | - | ||||||||||||
Consumer
|
2 | - | - | 2 | ||||||||||||
Credit cards
|
- | - | - | - | ||||||||||||
Dealer Finance
|
- | - | - | - | ||||||||||||
Total Impaired loans
|
10,239 | - | - | 10,239 | ||||||||||||
Total assets at fair value
|
$ | 12,867 | - | $ | - | 12,867 | ||||||||||
Total liabilities at fair value
|
$ | - | $ | - | $ | - | $ | - |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||
Estimated
|
Carrying
|
Estimated
|
Carrying
|
|||||||||||||
Fair Value
|
Value
|
Fair Value
|
Value
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Loans, gross
|
$ | 537,765 | $ | 506,846 | $ | 512,250 | $ | 478,453 | ||||||||
Financial Liabilities
|
||||||||||||||||
Time deposits
|
$ | 198,070 | $ | 196,649 | $ | 197,729 | $ | 196,004 | ||||||||
Long-term debt
|
$ | 27,651 | $ | 25,191 | $ | 23,791 | $ | 21,691 |
Nine months ended September 30, 2014
|
|||||||||||
Pre-Modification
|
Post-Modification
|
||||||||||
Outstanding
|
Outstanding
|
||||||||||
Number of Contracts
|
Recorded Investment
|
Recorded Investment
|
|||||||||
Troubled Debt Restructurings
|
|||||||||||
Commercial
|
$ | - | $ | - | |||||||
Real Estate
|
2 | 181 | 181 | ||||||||
Home Equity
|
- | - | |||||||||
Credit Cards
|
- | - | |||||||||
Consumer
|
1 | 23 | 23 | ||||||||
Total
|
$ | 204 | $ | 204 |
Nine months ended September 30, 2013
|
|||||||||||
Pre-Modification
|
Post-Modification
|
||||||||||
Outstanding
|
Outstanding
|
||||||||||
Number of Contracts
|
Recorded Investment
|
Recorded Investment
|
|||||||||
Troubled Debt Restructurings
|
|||||||||||
Commercial
|
$ | - | $ | - | |||||||
Real Estate
|
1 | 50 | 50 | ||||||||
Home Equity
|
- | - | |||||||||
Credit Cards
|
- | - | |||||||||
Consumer
|
- | - | |||||||||
Total
|
$ | 50 | $ | 50 |
●
|
Changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries, declines in real estate values in our markets, or in the repayment ability of individual borrowers or issuers;
|
●
|
The strength of the economy in our target market area, as well as general economic, market, or business conditions;
|
●
|
An insufficient allowance for loan losses as a result of inaccurate assumptions;
|
●
|
Our ability to maintain our “well-capitalized” regulatory status;
|
●
|
Changes in the interest rates affecting our deposits and our loans;
|
●
|
Changes in our competitive position, competitive actions by other financial institutions and the competitive nature of the financial services industry and our ability to compete effectively against other financial institutions in our banking markets;
|
●
|
Our ability to manage growth;
|
●
|
Our potential growth, including our entrance or expansion into new markets, the opportunities that may be presented to and pursued by us and the need for sufficient capital to support that growth;
|
●
|
Our exposure to operational risk;
|
●
|
Our ability to raise capital as needed by our business;
|
●
|
Changes in laws, regulations and the policies of federal or state regulators and agencies; and
|
●
|
Other circumstances, many of which are beyond our control.
|
In thousands
|
2014
|
2013
|
||||||
Net Income from Bank Operations
|
$ | 4,141 | $ | 3,442 | ||||
Income from Parent Company Activities
|
95 | 90 | ||||||
Net Income for the nine months ended September 30
|
$ | 4,236 | $ | 3,532 |
September 30,
2014
|
December 31,
2013
|
|||||||
Nonaccrual Loans
|
||||||||
Real Estate
|
$ | 5,585 | $ | 9,963 | ||||
Commercial
|
1,334 | 1,890 | ||||||
Home Equity
|
23 | 402 | ||||||
Other
|
15 | - | ||||||
6.957 | 12,255 | |||||||
Loans past due 90 days or more (excluding nonaccrual)
|
||||||||
Real Estate
|
- | 246 | ||||||
Commercial
|
- | 4 | ||||||
Home Equity
|
10 | 61 | ||||||
Other
|
86 | 16 | ||||||
96 | 327 | |||||||
Restructured Loans
|
||||||||
Real Estate
|
204 | 50 | ||||||
Commercial
|
- | 1,450 | ||||||
204 | 1,500 | |||||||
Total Nonperforming loans
|
$ | 7,257 | $ | 14,082 | ||||
Nonperforming loans as a percentage of loans held for investment
|
1.43 | % | 2.94 | % | ||||
Net loan losses to average loans outstanding (held for investment)
|
.37 | % | .79 | % | ||||
Allowance for loan and lease losses to nonperforming loans
|
118.52 | % | 58.12 | % | ||||
Restructured Nonaccrual
|
- | - |
Nine Months Ended
|
Nine Months Ended
|
Three Months Ended
|
Three Months Ended
|
|||||||||||||||||||||||||||||||||||||||||||||
September 30, 2014
|
September 30, 2013
|
September 30, 2014
|
September 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||
Average
|
Income/
|
Average
|
Income/
|
Average
|
Income/
|
Average
|
Income/
|
Average
|
||||||||||||||||||||||||||||||||||||||||
Balance2,4
|
Expense
|
Rates
|
Balance2,4
|
Expense
|
Rates5
|
Balance2,4
|
Expense
|
Rates
|
Balance2,4
|
Expense
|
Rates5
|
|||||||||||||||||||||||||||||||||||||
Interest income
|
||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment1,2
|
$ | 490,970 | $ | 19,516 | 5.31 | % | $ | 468,664 | $ | 18,835 | 5.37 | % | $ | 500,623 | $ | 6,692 | 5.30 | % | $ | 474,131 | $ | 6,344 | 5.31 | % | ||||||||||||||||||||||||
Loans held for sale
|
8,684 | 228 | 3.51 | % | 27,581 | 623 | 3.02 | % | 18,718 | 164 | 3.48 | % | 10,222 | 79 | 3.07 | % | ||||||||||||||||||||||||||||||||
Federal funds sold
|
19,392 | 31 | .21 | % | 22,079 | 36 | .22 | % | 11,743 | 7 | .24 | % | 30,424 | 17 | .22 | % | ||||||||||||||||||||||||||||||||
Interest bearing deposits
|
891 | - | - | 1,140 | 4 | .47 | % | 1,139 | - | - | 748 | 2 | 1.06 | % | ||||||||||||||||||||||||||||||||||
Investments
|
||||||||||||||||||||||||||||||||||||||||||||||||
Taxable 3
|
13,347 | 137 | 1.37 | % | 11,856 | 140 | 1.58 | % | 13,644 | 38 | 1.11 | % | 11,157 | 39 | 1.39 | % | ||||||||||||||||||||||||||||||||
Partially taxable
|
116 | - | - | 107 | - | - | 113 | - | - | 107 | - | - | ||||||||||||||||||||||||||||||||||||
Total earning assets
|
$ | 533,400 | $ | 19,912 | 4.99 | % | $ | 531,427 | $ | 19,638 | 4.94 | % | $ | 545,980 | $ | 6,901 | 5.01 | % | $ | 526,789 | $ | 6,481 | 4.88 | % | ||||||||||||||||||||||||
Interest Expense
|
||||||||||||||||||||||||||||||||||||||||||||||||
Demand deposits
|
117,542 | 501 | .57 | % | 120,747 | 608 | .67 | % | 114,996 | 165 | .57 | % | 117,017 | 198 | .67 | % | ||||||||||||||||||||||||||||||||
Savings
|
58,940 | 88 | .20 | % | 51,993 | 91 | .23 | % | 61,910 | 31 | .20 | % | 53,899 | 29 | .21 | % | ||||||||||||||||||||||||||||||||
Time deposits
|
195,282 | 1,309 | .90 | % | 199,598 | 1,804 | 1.21 | % | 193,883 | 416 | .85 | % | 197,137 | 575 | 1.16 | % | ||||||||||||||||||||||||||||||||
Short-term debt
|
3,556 | 7 | .26 | % | 7,098 | 22 | .41 | % | 3,808 | 3 | .31 | % | 3,378 | 3 | .35 | % | ||||||||||||||||||||||||||||||||
Long-term debt
|
22,277 | 872 | 5.23 | % | 39,506 | 1,175 | 3.98 | % | 23,995 | 292 | 4.83 | % | 35,474 | 389 | 4.35 | % | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities
|
$ | 397,597 | $ | 2,777 | .93 | % | $ | 418,942 | $ | 3,700 | 1.19 | % | $ | 398,592 | $ | 907 | .90 | % | $ | 406,905 | $ | 1,194 | 1.16 | % | ||||||||||||||||||||||||
Tax equivalent net interest income 1
|
$ | 17,135 | $ | 15,938 | $ | 5,994 | $ | 5,287 | ||||||||||||||||||||||||||||||||||||||||
Net interest margin
|
4.29 | % | 4.01 | % | 4.36 | % | 3.98 | % |
|
3
|
An incremental income tax rate of 34% was used to calculate the tax equivalent income (see page 27) on nontaxable and partially taxable investments and loans.
|
0 – 3 | 4 – 12 | 1 – 5 |
Over 5
|
Not
|
||||||||||||||||||||
Months
|
Months
|
Years
|
Years
|
Classified
|
Total
|
|||||||||||||||||||
Uses of funds
|
||||||||||||||||||||||||
Loans
|
||||||||||||||||||||||||
Commercial
|
$ | 28,400 | $ | 24,713 | $ | 110,346 | $ | 7,349 | $ | - | $ | 170,808 | ||||||||||||
Installment
|
4,486 | 855 | 31,220 | 11,030 | - | 47,591 | ||||||||||||||||||
Real estate loans for investments
|
94,934 | 45,876 | 138,451 | 6,660 | - | 285,921 | ||||||||||||||||||
Loans held for sale
|
16,131 | - | - | - | - | 16,131 | ||||||||||||||||||
Credit cards
|
2,526 | - | - | - | - | 2,526 | ||||||||||||||||||
Federal funds sold
|
16,165 | - | - | - | - | 16,165 | ||||||||||||||||||
Interest bearing bank deposits
|
1,039 | - | - | - | - | 1,039 | ||||||||||||||||||
Investment securities
|
- | 125 | 10,076 | 1,064 | 135 | 11,400 | ||||||||||||||||||
Total
|
$ | 163,681 | $ | 71,569 | $ | 290,093 | $ | 26,103 | $ | 135 | $ | 551,581 | ||||||||||||
Sources of funds
|
||||||||||||||||||||||||
Interest bearing demand deposits
|
$ | - | $ | 30,944 | $ | 67,612 | $ | 18,335 | $ | - | $ | 116,891 | ||||||||||||
Savings deposits
|
- | 12,680 | 38,041 | 12,680 | - | 63,401 | ||||||||||||||||||
Certificates of deposit $100,000 and over
|
28,178 | 17,989 | 32,144 | - | - | 78,311 | ||||||||||||||||||
Other certificates of deposit
|
19,372 | 46,258 | 52,708 | - | - | 118,338 | ||||||||||||||||||
Short-term borrowings
|
3,784 | - | - | - | - | 3,784 | ||||||||||||||||||
Long-term borrowings
|
5,125 | 375 | 8,785 | 10,906 | - | 25,191 | ||||||||||||||||||
Total
|
$ | 56,459 | $ | 108,246 | $ | 199,290 | $ | 41,920 | $ | - | $ | 405,915 | ||||||||||||
Discrete Gap
|
$ | 107,222 | $ | (36,677 | ) | $ | 90,803 | $ | (15,817 | ) | $ | 135 | $ | 145,666 | ||||||||||
Cumulative Gap
|
$ | 107,222 | $ | 70,545 | $ | 161,348 | $ | 145,531 | $ | 145,666 | ||||||||||||||
Ratio of Cumulative Gap to Total Earning Assets
|
19.44 | % | 12.79 | % | 29.25 | % | 26.38 | % | 26.41 | % |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith). |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith). |
32 | 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 10-Q for the period ended September 30, 2014, 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.
|
|||
|
By:
|
/s/ Dean W. Withers | |
Dean W. Withers
|
|||
President and Chief Executive Officer
|
|||
By:
|
/s/ Carrie A. Comer
|
||
Carrie A. Comer
|
|||
Senior Vice President and Chief Financial Officer
|
|||
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith). |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith). |
32 | 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 10-Q for the period ended September 30, 2014, 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). |
1.
|
I have reviewed this quarterly report on Form 10-Q of F & M Bank Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of F & M Bank Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
7. Disclosures About Fair Value of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2014
|
Dec. 31, 2013
|
---|---|---|
Financial Assets | ||
Loans, Estimated Fair Value | $ 537,765 | $ 512,250 |
Loans, Carrying value | 506,846 | 478,453 |
Financial Liabilities | ||
Time deposits, Estimated Fair Value | 198,070 | 197,729 |
Time deposits, Carrying Value | 196,649 | 196,004 |
Long-term debt, Estimated Fair Value | 27,651 | 23,791 |
Long-term debt, Carrying Value | $ 25,191 | $ 21,691 |
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