Virginia
|
|
54-1280811
|
(State or
Other Jurisdiction of Incorporation or
Organization)
|
|
(I.R.S.
Employer Identification No.)
|
Large accelerated
filer ☐
|
Accelerated
filer ☑
|
Non-accelerated
filer ☐
|
(Do not check
if a smaller reporting company)
|
|
Smaller reporting
company ☐
|
|
Emerging
growth company ☐
|
|
|
Class
|
Outstanding at
November 6, 2018
|
Common
Stock, par value - $5
|
3,218,974
shares
|
Part
I
|
Financial
Information
|
3
|
|
|
|
Item
1.
|
Financial
Statements
|
3
|
|
|
|
|
Consolidated
Balance Sheets – Three Months Ended September 30, 2018 and
2017
|
3
|
|
|
|
|
Consolidated
Statements of Income – Three Months Ended September 30, 2018
and 2017
|
4
|
|
|
|
|
Consolidated
Statements of Income – Nine Months Ended September 30, 2018
and 2017
|
5
|
|
|
|
|
Consolidated
Statements of Comprehensive Income – Three and Nine Months
Ended September 30, 2018 and 2017
|
6
|
|
|
|
|
Consolidated
Statements of Changes in Stockholders’ Equity – Nine
Months Ended September 30, 2018 and 2017
|
7
|
|
|
|
|
Consolidated
Statements of Cash Flows – Nine Months Ended September 30,
2018 and 2017
|
8
|
|
|
|
|
Notes
to Consolidated Financial Statements
|
9
|
|
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
35
|
|
|
|
Item
3.
|
Quantitative and
Qualitative Disclosures About Market Risk
|
49
|
|
|
|
Item
4.
|
Controls and
Procedures
|
49
|
|
|
|
Part
II
|
Other
Information
|
50
|
|
|
|
Item
1.
|
Legal
Proceedings
|
50
|
|
|
|
Item
1a.
|
Risk
Factors
|
50
|
|
|
|
Item
2.
|
Unregistered Sales
of Equity Securities and Use of Proceeds
|
50
|
|
|
|
Item
3.
|
Defaults Upon
Senior Securities
|
50
|
|
|
|
Item
4.
|
Mine
Safety Disclosures
|
50
|
|
|
|
Item
5.
|
Other
Information
|
50
|
|
|
|
Item
6.
|
Exhibits
|
50
|
|
|
|
Signatures
|
51
|
|
|
|
|
Certifications
|
52
|
|
September
30,
|
December
31,
|
|
2018
|
2017*
|
|
(Unaudited)
|
|
Assets
|
|
|
Cash and due from
banks
|
$10,305
|
$10,622
|
Money market
funds
|
805
|
1,285
|
Federal funds
sold
|
6,313
|
-
|
Cash and cash
equivalents
|
17,423
|
11,907
|
Securities:
|
|
|
Held to maturity
– fair value of $123 and $125 in 2018 and 2017,
respectively
|
123
|
125
|
Available for
sale
|
8,244
|
28,615
|
Other
investments
|
13,857
|
12,503
|
Loans held for
sale
|
38,595
|
39,775
|
Loans held for
investment
|
646,784
|
616,974
|
Less: allowance for
loan losses
|
(7,273)
|
(6,044)
|
Net loans held for
investment
|
639,511
|
610,930
|
|
|
|
Other real estate
owned, net
|
2,063
|
1,984
|
Bank premises and
equipment, net
|
17,575
|
15,894
|
Interest
receivable
|
2,076
|
2,007
|
Goodwill
|
2,956
|
2,881
|
Bank owned life
insurance
|
19,320
|
13,950
|
Other
assets
|
13,862
|
12,699
|
Total
assets
|
$775,605
|
$753,270
|
Liabilities
|
|
|
Deposits:
|
|
|
Noninterest
bearing
|
$163,913
|
$162,233
|
Interest
bearing
|
425,072
|
406,944
|
Total
deposits
|
588,985
|
569,177
|
|
|
|
Short-term
debt
|
30,000
|
25,296
|
Accrued
liabilities
|
17,633
|
17,789
|
Long-term
debt
|
46,326
|
49,733
|
Total
liabilities
|
682,944
|
661,995
|
|
|
|
Stockholders’
Equity
|
|
|
Preferred Stock $25
par value, 400,000 shares authorized, 322,510 and 324,150 issued
and
|
$7,488
|
$7,529
|
outstanding
for September 30, 2018 and December 31, 2017,
respectively
|
|
|
Common stock, $5
par value, 6,000,000 shares authorized, 3,223,683 and 3,255,036
shares issued
|
16,118
|
16,275
|
and
outstanding for September 30, 2018 and December 31, 2017,
respectively.
|
|
|
Additional paid in
capital – common stock
|
9,316
|
10,225
|
Retained
earnings
|
63,473
|
60,814
|
Non-controlling
interest in consolidated subsidiaries
|
539
|
574
|
Accumulated other
comprehensive loss
|
(4,273)
|
(4,142)
|
Total
stockholders’ equity
|
$92,661
|
$91,275
|
Total liabilities
and stockholders’ equity
|
$775,605
|
$753,270
|
|
Three Months
Ended
|
|
|
September
30,
|
|
Interest and Dividend income
|
2018
|
2017
|
Interest and fees
on loans held for investment
|
$8,862
|
$8,221
|
Interest and fees
on loans held for sale
|
317
|
329
|
Interest from money
market funds and federal funds sold
|
48
|
41
|
Interest on debt
securities – taxable
|
101
|
97
|
Total interest and
dividend income
|
9,328
|
8,688
|
|
|
|
Interest expense
|
|
|
Total
interest on deposits
|
872
|
698
|
Interest
from short-term debt
|
146
|
14
|
Interest
from long-term debt
|
286
|
318
|
Total interest
expense
|
1,304
|
1,030
|
|
|
|
Net interest income
|
8,024
|
7,658
|
|
|
|
Provision for Loan Losses
|
450
|
-
|
Net Interest Income After Provision for Loan Losses
|
7,574
|
7,658
|
|
|
|
Noninterest income
|
|
|
Service charges on
deposit accounts
|
378
|
359
|
Investment services
and insurance income, net
|
239
|
169
|
Mortgage
banking income, net
|
529
|
783
|
Title
insurance income
|
404
|
325
|
Income on bank
owned life insurance
|
158
|
112
|
Low
income housing partnership losses
|
(189)
|
(201)
|
ATM
and check card fees
|
395
|
353
|
Other
operating income
|
233
|
245
|
Total noninterest
income
|
2,147
|
2,145
|
|
|
|
Noninterest expense
|
|
|
Salaries
|
3,277
|
3,194
|
Employee
benefits
|
935
|
689
|
Occupancy
expense
|
286
|
281
|
Equipment
expense
|
271
|
224
|
FDIC insurance
assessment
|
70
|
20
|
Other
real estate owned, net
|
15
|
(4)
|
Marketing
expense
|
156
|
147
|
Legal
and professional fees
|
173
|
78
|
ATM
and check card fees
|
185
|
183
|
Telecommunication
and data processing expense
|
401
|
370
|
Directors
fees
|
117
|
117
|
Bank
franchise tax
|
105
|
167
|
Other
operating expenses
|
978
|
793
|
Total noninterest
expense
|
6,969
|
6,259
|
|
|
|
Income before income taxes
|
2,752
|
3,544
|
Income tax
expense
|
252
|
946
|
Net Income
|
2,500
|
2,598
|
Net
income (loss) attributable to non-controlling interest
|
(15)
|
48
|
Net Income attributable to F & M Bank Corp.
|
$2,515
|
$2,550
|
Dividends
paid/accumulated on preferred stock
|
103
|
103
|
Net income available to common stockholders
|
$2,412
|
$2,447
|
|
|
|
Per Common Share Data
|
|
|
Net income –
basic
|
$.75
|
$.75
|
Net income –
diluted
|
$.70
|
.70
|
Cash dividends on
common stock
|
$.25
|
$.24
|
Weighted average
common shares outstanding – basic
|
3,229,341
|
3,270,969
|
Weighted average
common shares outstanding – diluted
|
3,587,650
|
3,632,607
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
Interest and Dividend income
|
2018
|
2017
|
Interest and fees
on loans held for investment
|
$25,872
|
$23,830
|
Interest and fees
on loans held for sale
|
775
|
774
|
Interest from money
market funds and federal funds sold
|
73
|
116
|
Interest on debt
securities – taxable
|
313
|
234
|
Total interest and
dividend income
|
27,033
|
24,954
|
|
|
|
Interest expense
|
|
|
Total
interest on deposits
|
2,377
|
1,947
|
Interest
from short-term debt
|
282
|
46
|
Interest
from long-term debt
|
739
|
868
|
Total interest
expense
|
3,398
|
2,861
|
|
|
|
Net interest income
|
23,635
|
22,093
|
|
|
|
Provision for Loan Losses
|
2,480
|
-
|
Net Interest Income After Provision for Loan Losses
|
21,155
|
22,093
|
|
|
|
Noninterest income
|
|
|
Service charges on
deposit accounts
|
1,102
|
1,010
|
Investment services
and insurance income
|
659
|
530
|
Mortgage
banking income, net
|
1,664
|
1,763
|
Title insurance income
|
966
|
879
|
Income on bank
owned life insurance
|
380
|
336
|
Low income housing partnership losses
|
(573)
|
(587)
|
ATM
and check card fees
|
1,130
|
1,034
|
Gain
on prepayment of long-term debt
|
-
|
504
|
Loss
on sale of other investments
|
-
|
(42)
|
Other
operating income
|
551
|
513
|
Total noninterest
income
|
5,879
|
5,940
|
|
|
|
Noninterest expense
|
|
|
Salaries
|
9,424
|
8,502
|
Employee
benefits
|
2,811
|
2,467
|
Occupancy
expense
|
823
|
776
|
Equipment
expense
|
788
|
613
|
FDIC insurance
assessment
|
166
|
200
|
Other
real estate owned, net
|
17
|
22
|
Marketing
expense
|
387
|
404
|
Legal
and professional fees
|
372
|
253
|
ATM
and check card fees
|
541
|
529
|
Telecommunication
and data processing expense
|
1,152
|
1,045
|
Directors
fees
|
345
|
360
|
Bank
franchise tax
|
417
|
491
|
Other
operating expenses
|
2,836
|
2,464
|
Total noninterest
expense
|
20,079
|
18,126
|
|
|
|
Income before income taxes
|
6,955
|
9,907
|
Income tax
expense
|
790
|
2,633
|
Net Income
|
6,165
|
7,274
|
Net
income (loss) attributable to non-controlling interest
|
(10)
|
51
|
Net Income attributable to F & M Bank Corp.
|
$6,175
|
$7,223
|
Dividends
paid/accumulated on preferred stock
|
310
|
312
|
Net income available to common stockholders
|
$5,865
|
$6,911
|
Per Common Share Data
|
|
|
Net income –
basic
|
$1.81
|
$2.11
|
Net income –
diluted
|
$1.71
|
1.99
|
Cash dividends on
common stock
|
.95
|
$.69
|
Weighted average
common shares outstanding – basic
|
3,245,032
|
3,271,863
|
Weighted average
common shares outstanding – diluted
|
3,604,193
|
3,634,856
|
|
Nine Months
Ended September 30,
|
Three Months
Ended September 30,
|
||
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
Net
Income
|
$6,175
|
$7,223
|
$2,515
|
$2,550
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
Unrealized holding
(losses)
|
|
|
|
|
on
available-for-sale securities
|
(166)
|
(2)
|
2
|
-
|
Tax
effect
|
35
|
1
|
-
|
-
|
Unrealized holding
(losses), net of tax
|
(131)
|
(1)
|
2
|
-
|
Total other
comprehensive (loss) income
|
(131)
|
(1)
|
2
|
-
|
Total comprehensive
income
|
$6,044
|
$7,222
|
$2,517
|
$2,550
|
|
|
|
|
|
Comprehensive
income attributable to noncontrolling interests
|
$(10)
|
$51
|
$(15)
|
$48
|
|
|
|
|
|
Comprehensive
income (loss) attributable to F&M Bank Corp.
|
$6,034
|
$7,273
|
$2,502
|
$2,598
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2018
|
2017
|
|
|
|
Balance, beginning of period
|
$91,275
|
$86,682
|
|
|
|
Comprehensive
income
|
|
|
Net income –
F & M Bank Corp
|
6,175
|
7,223
|
Net income (loss)
attributable to non-controlling interest
|
(10)
|
51
|
Other comprehensive
(loss)
|
(131)
|
(1)
|
Total comprehensive
income
|
6,034
|
7,273
|
|
|
|
Minority interest
capital distributions
|
(25)
|
(149)
|
Issuance of common
stock
|
210
|
150
|
Repurchase of
common stock
|
(1,375)
|
(199)
|
Repurchase of
preferred stock
|
(63)
|
(101)
|
Dividends
paid
|
(3,395)
|
(2,500)
|
Balance, end of period
|
$92,661
|
$91,156
|
|
Nine Months
Ended September 30,
|
|
|
2018
|
2017
|
Cash flows from operating activities
|
|
|
Net
income
|
$6,175
|
$7,223
|
Reconcile net
income to net cash provided by operating activities:
|
|
|
Depreciation
|
852
|
660
|
Amortization of
intangibles
|
49
|
2
|
Amortization of
securities
|
4
|
-
|
Proceeds from loans
held for sale originated
|
31,665
|
61,310
|
Loans held for sale
originated
|
(30,048)
|
(59,250)
|
Gain on sale of
loans held for sale originated
|
(1,617)
|
(1,876)
|
Gain on prepayment
of long-term debt
|
-
|
(504)
|
Provision for loan
losses
|
2,480
|
-
|
Increase in
interest receivable
|
(69)
|
(60)
|
Increase in other
assets
|
(656)
|
(336)
|
Decrease in accrued
liabilities
|
(701)
|
(422)
|
Amortization of
limited partnership investments
|
573
|
587
|
Income from life
insurance investment
|
(380)
|
(336)
|
Gain on the sale of
fixed assets
|
(9)
|
-
|
Loss on sale of
investments
|
-
|
42
|
Gain
on sale and valuation adjustments for other real estate
owned
|
(28)
|
-
|
Net
cash provided by operating activities
|
8,290
|
7,040
|
|
|
|
Cash flows from investing activities
|
|
|
Purchase of
investments available for sale and other investments
|
(3,361)
|
(61,432)
|
Purchase of title
insurance company
|
(75)
|
(304)
|
Proceeds from
maturity of investments available for sale
|
21,636
|
63,811
|
Proceeds from the
sale of investments
|
-
|
55
|
Net increase in
loans held for investment
|
(31,254)
|
(29,070)
|
Net decrease in
loans held for sale participations
|
1,180
|
4,373
|
Purchase of bank
owned life insurance
|
(5,000)
|
-
|
Proceeds from the
sale of fixed assets
|
9
|
(7)
|
Proceeds from the
sale of other real estate owned
|
141
|
80
|
Net purchase of
property and equipment
|
(2,533)
|
(3,036)
|
Net
cash used in investing activities
|
(19,257)
|
(25,530)
|
|
|
|
Cash flows from financing activities
|
|
|
Net change in
deposits
|
19,808
|
25,295
|
Net change in
short-term debt
|
4,704
|
2,128
|
Dividends paid in
cash
|
(3,395)
|
(2,500)
|
Proceeds from
issuance of common stock
|
210
|
150
|
Repurchase of
preferred stock
|
(63)
|
(101)
|
Repurchase of
common stock
|
(1,375)
|
(199)
|
Repayments of
long-term debt
|
(3,406)
|
(12,892)
|
Net
cash provided by financing activities
|
16,483
|
11,881
|
|
|
|
Net increase (decrease) in Cash and Cash Equivalents
|
5,516
|
(6,609)
|
Cash and cash equivalents, beginning of period
|
11,907
|
16,355
|
Cash and cash equivalents, end of period
|
$17,423
|
$9,746
|
Supplemental Cash Flow information:
|
|
|
Cash paid
for:
|
|
|
Interest
|
$3,340
|
$2,850
|
Taxes
|
1,657
|
3,495
|
Supplemental non-cash disclosures:
|
|
|
Transfer from loans
to other real estate owned
|
193
|
145
|
Change in
unrealized (loss) on securities available for sale
|
(166)
|
(2)
|
(dollars in
thousands)
|
For the Nine months ended
|
For the Three months ended
|
For the Nine months ended
|
For the Three months ended
|
|
September 30, 2018
|
September 30, 2018
|
September 30, 2017
|
September 30, 2017
|
Earnings
available to common stockholders:
|
|
|
|
|
Net
income
|
$6,165
|
$2,500
|
$7,274
|
$2,598
|
Non-controlling
interest income (loss)
|
(10)
|
(15)
|
51
|
48
|
Preferred
stock dividends
|
310
|
103
|
312
|
103
|
Net
income available to common stockholders
|
$5,865
|
$2,412
|
$6,911
|
$2,447
|
|
Nine months
ended September 30, 2018
|
Nine months
ended September 30, 2017
|
||||
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Basic
EPS
|
$5,865
|
3,245,032
|
$1.81
|
$6,911
|
3,271,863
|
$2.11
|
Effect of Dilutive
Securities:
|
|
|
|
|
|
|
Convertible
Preferred Stock
|
310
|
359,161
|
(.10)
|
312
|
362,993
|
(0.12)
|
Diluted
EPS
|
$6,175
|
3,604,193
|
$1.71
|
$7,223
|
3,634,856
|
$1.99
|
|
Three months
ended September 30, 2018
|
Three months
ended September 30, 2017
|
||||
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Basic
EPS
|
$2,412
|
3,229,341
|
$.75
|
$2,447
|
3,270,969
|
$.75
|
Effect of Dilutive
Securities:
|
|
|
|
|
|
|
Convertible
Preferred Stock
|
103
|
358,309
|
(.05)
|
103
|
361,638
|
(0.05)
|
Diluted
EPS
|
$2,515
|
3,587,650
|
$.70
|
$2,550
|
3,632,607
|
$.70
|
|
|
Gross
|
Gross
|
|
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|
Cost
|
Gains
|
Losses
|
Value
|
September
30, 2018
|
|
|
|
|
U. S.
Treasuries
|
$123
|
$-
|
$-
|
$123
|
December
31, 2017
|
|
|
|
|
U. S.
Treasuries
|
$125
|
$-
|
$-
|
$125
|
|
|
|
|
|
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
September 30, 2018
|
|
|
|
|
U.
S. Government sponsored enterprises
|
$7,999
|
$-
|
$179
|
$7,820
|
Mortgage-backed
obligations of federal agencies
|
435
|
-
|
11
|
424
|
Total
Securities Available for Sale
|
$8,434
|
$-
|
$190
|
$8,244
|
|
|
|
|
|
December 31, 2017
|
|
|
|
|
U.
S. Treasuries
|
$19,998
|
$-
|
$-
|
$19,998
|
U.S.
Government sponsored enterprises
|
7,999
|
-
|
19
|
7,980
|
Mortgage-backed
obligations of federal agencies
|
508
|
-
|
6
|
502
|
Equity securities1
|
135
|
-
|
-
|
135
|
Total
Securities Available for Sale
|
$28,640
|
$-
|
$25
|
$28,615
|
|
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
|
$-
|
$-
|
$-
|
$-
|
Due after one year
through five years
|
123
|
123
|
5,999
|
5,880
|
Due after five
years
|
-
|
-
|
2,435
|
2,364
|
Due after ten
years
|
-
|
-
|
-
|
-
|
Total
|
$123
|
$123
|
$8,434
|
$8,244
|
|
Less than 12 Months
|
More than 12 Months
|
Total
|
|||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
September 30, 2018
|
|
|
|
|
|
|
U.
S. Government sponsored enterprises
|
$7,820
|
$(179)
|
$-
|
$-
|
$7,820
|
$(179)
|
Mortgage-backed
obligations of federal agencies
|
424
|
(11)
|
-
|
-
|
424
|
(11)
|
Total
|
$8,244
|
$(190)
|
$-
|
$-
|
$8,244
|
$(190)
|
|
Less than 12 Months
|
More than 12 Months
|
Total
|
|||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
December 31, 2017
|
|
|
|
|
|
|
U.
S. Government sponsored enterprises
|
$3,981
|
$(19)
|
$-
|
$-
|
$3,981
|
$(19)
|
Mortgage-backed
obligations of federal agencies
|
502
|
(6)
|
-
|
-
|
502
|
(6)
|
Total
|
$4,483
|
$(25)
|
$-
|
$-
|
$4,483
|
$(25)
|
|
2018
|
2017
|
Construction/Land
Development
|
$68,806
|
$71,620
|
Farmland
|
16,735
|
13,606
|
Real
Estate
|
188,460
|
184,546
|
Multi-Family
|
9,823
|
10,298
|
Commercial Real
Estate
|
155,651
|
148,906
|
Home Equity –
closed end
|
10,765
|
11,606
|
Home Equity –
open end
|
55,136
|
54,739
|
Commercial &
Industrial – Non-Real Estate
|
35,715
|
36,912
|
Consumer
|
10,660
|
6,633
|
Dealer
Finance
|
92,084
|
75,169
|
Credit
Cards
|
2,949
|
2,939
|
Total
|
$646,784
|
$616,974
|
|
September 30, 2018
|
December 31,
2017
|
||||
|
|
Unpaid
|
|
|
Unpaid
|
|
|
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
|
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
Impaired
loans without a valuation allowance:
|
|
|
|
|
|
|
Construction/Land
Development
|
$2,972
|
$2,972
|
$-
|
$4,352
|
$5,269
|
$-
|
Farmland
|
1,941
|
1,941
|
-
|
1,984
|
1,984
|
-
|
Real
Estate
|
1,366
|
1,366
|
-
|
1,273
|
1,273
|
-
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,444
|
1,444
|
-
|
6,229
|
6,229
|
-
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
-
|
347
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
-
|
-
|
-
|
-
|
-
|
Consumer
|
-
|
-
|
-
|
8
|
8
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
16
|
16
|
-
|
31
|
31
|
-
|
|
7,739
|
7,739
|
-
|
13,877
|
15,141
|
-
|
Impaired
loans with a valuation allowance
|
|
|
|
|
|
|
Construction/Land
Development
|
6,826
|
7,386
|
2,182
|
4,998
|
4,998
|
1,661
|
Farmland
|
-
|
-
|
|
-
|
-
|
-
|
Real
Estate
|
426
|
426
|
7
|
1,188
|
1,188
|
209
|
Multi-Family
|
-
|
-
|
|
-
|
-
|
-
|
Commercial
Real Estate
|
5,851
|
5,851
|
1,539
|
-
|
-
|
-
|
Home
Equity – closed end
|
-
|
-
|
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
|
-
|
-
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
-
|
|
-
|
-
|
-
|
Consumer
|
9
|
9
|
2
|
-
|
-
|
-
|
Credit
cards
|
-
|
-
|
|
-
|
-
|
-
|
Dealer
Finance
|
234
|
234
|
15
|
47
|
47
|
12
|
|
13,346
|
13,906
|
3,745
|
6,233
|
6,233
|
1,882
|
Total impaired
loans
|
$21,085
|
$21,645
|
$3,745
|
$20,110
|
$21,374
|
$1,882
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||
|
2018
|
2017
|
2018
|
2017
|
||||
|
Average Recorded
|
Interest Income
|
Average Recorded
|
Interest Income
|
Average Recorded
|
Interest Income
|
Average Recorded
|
Interest Income
|
|
Investment
|
Recognized
|
Investment
|
Recognized
|
Investment
|
Recognized
|
Investment
|
Recognized
|
Impaired
loans without a valuation allowance:
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$3,725
|
$47
|
$5,414
|
$14
|
$4,440
|
$126
|
$4,870
|
$64
|
Farmland
|
1,962
|
80
|
1,921
|
-
|
1,973
|
142
|
1,900
|
-
|
Real
Estate
|
930
|
17
|
743
|
8
|
1,078
|
28
|
746
|
25
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
868
|
44
|
200
|
9
|
2,317
|
53
|
167
|
12
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
347
|
-
|
87
|
-
|
347
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
(8)
|
164
|
2
|
-
|
(8)
|
165
|
8
|
Consumer
and credit cards
|
-
|
(1)
|
10
|
-
|
2
|
(1)
|
10
|
-
|
Dealer
Finance
|
25
|
-
|
23
|
1
|
28
|
1
|
22
|
2
|
|
7,510
|
179
|
8,822
|
34
|
9,925
|
341
|
8,227
|
111
|
Impaired
loans with a valuation allowance:
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$7,425
|
$(125)
|
$5,640
|
$75
|
$6,664
|
$(27)
|
$6,215
|
$215
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Real
Estate
|
866
|
(17)
|
1,194
|
10
|
1,045
|
10
|
1,196
|
41
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
5,874
|
179
|
-
|
-
|
4,166
|
320
|
-
|
-
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Consumer
and credit card
|
10
|
1
|
-
|
-
|
8
|
2
|
-
|
-
|
Dealer
Finance
|
232
|
11
|
59
|
1
|
169
|
19
|
59
|
2
|
|
14,407
|
49
|
6,893
|
86
|
12,052
|
324
|
7,470
|
258
|
Total
Impaired Loans
|
$21,917
|
$228
|
$15,715
|
$120
|
$21,977
|
$665
|
$15,697
|
$369
|
|
30-59 Days Past
due
|
60-89 Days Past
Due
|
Greater than 90
Days
|
Total Past
Due
|
Current
|
Total Loan
Receivable
|
Non-Accrual
Loans
|
Recorded
Investment >90 days & accruing
|
September
30, 2018
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$19
|
$149
|
$4,536
|
$4,704
|
$64,102
|
$68,806
|
$5,097
|
$-
|
Farmland
|
-
|
-
|
-
|
-
|
16,735
|
16,735
|
-
|
-
|
Real
Estate
|
1,432
|
835
|
2,234
|
4,501
|
183,959
|
188,460
|
1,424
|
1,484
|
Multi-Family
|
170
|
-
|
-
|
170
|
9,653
|
9,823
|
-
|
-
|
Commercial Real
Estate
|
1,699
|
1,373
|
6,195
|
9,267
|
146,384
|
155,651
|
6,195
|
-
|
Home Equity –
closed end
|
-
|
-
|
14
|
14
|
10,751
|
10,765
|
-
|
14
|
Home Equity –
open end
|
504
|
-
|
487
|
991
|
54,145
|
55,136
|
125
|
387
|
Commercial &
Industrial – Non- Real Estate
|
338
|
-
|
113
|
451
|
35,264
|
35,715
|
112
|
-
|
Consumer
|
52
|
99
|
3
|
154
|
10,506
|
10,660
|
5
|
-
|
Dealer
Finance
|
1,619
|
457
|
289
|
2,365
|
89,719
|
92,084
|
385
|
-
|
Credit
Cards
|
51
|
-
|
12
|
63
|
2,886
|
2,949
|
-
|
12
|
Total
|
$5,884
|
$2,913
|
$13,883
|
$22,680
|
$624,104
|
$646,784
|
$13,343
|
$1,897
|
|
30-59 Days Past
due
|
60-89 Days Past
Due
|
Greater than 90
Days
|
Total Past
Due
|
Current
|
Total Loan
Receivable
|
Non-Accrual
Loans
|
Recorded
Investment >90 days & accruing
|
December
31, 2017
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$167
|
$5,459
|
$3,908
|
$9,534
|
$62,086
|
$71,620
|
$3,908
|
$-
|
Farmland
|
-
|
-
|
-
|
-
|
13,606
|
13,606
|
-
|
-
|
Real
Estate
|
2,858
|
1,954
|
560
|
5,372
|
179,174
|
184,546
|
1,720
|
143
|
Multi-Family
|
179
|
-
|
-
|
179
|
10,119
|
10,298
|
-
|
-
|
Commercial Real
Estate
|
544
|
-
|
-
|
544
|
148,362
|
148,906
|
-
|
-
|
Home Equity –
closed end
|
-
|
25
|
-
|
25
|
11,581
|
11,606
|
3
|
-
|
Home Equity –
open end
|
454
|
165
|
268
|
887
|
53,852
|
54,739
|
448
|
-
|
Commercial &
Industrial – Non- Real Estate
|
108
|
36
|
595
|
739
|
36,173
|
36,912
|
599
|
-
|
Consumer
|
43
|
5
|
-
|
48
|
6,585
|
6,633
|
-
|
-
|
Dealer
Finance
|
1,300
|
252
|
189
|
1,741
|
73,428
|
75,169
|
226
|
54
|
Credit
Cards
|
30
|
8
|
1
|
39
|
2,900
|
2,939
|
-
|
1
|
Total
|
$5,683
|
$7,904
|
$5,521
|
$19,108
|
$597,866
|
$616,974
|
$6,904
|
$198
|
September 30,
2018
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Allowance
for loan losses:
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$2,547
|
$47
|
$122
|
$86
|
$2,708
|
$2,182
|
$526
|
Farmland
|
25
|
-
|
-
|
(3)
|
22
|
-
|
22
|
Real
Estate
|
719
|
57
|
12
|
(291)
|
383
|
7
|
376
|
Multi-Family
|
19
|
-
|
-
|
(4)
|
15
|
-
|
15
|
Commercial Real
Estate
|
482
|
46
|
1
|
1,328
|
1,765
|
1,539
|
226
|
Home Equity –
closed end
|
66
|
3
|
4
|
(20)
|
47
|
-
|
47
|
Home Equity –
open end
|
209
|
-
|
3
|
(53)
|
159
|
-
|
159
|
Commercial
& Industrial – Non-Real Estate
|
337
|
544
|
88
|
365
|
246
|
-
|
246
|
Consumer
|
148
|
28
|
28
|
(68)
|
80
|
2
|
78
|
Dealer
Finance
|
1,440
|
1,448
|
673
|
1,148
|
1,813
|
15
|
1,798
|
Credit
Cards
|
52
|
43
|
34
|
(8)
|
35
|
-
|
35
|
Total
|
$6,044
|
$2,216
|
$965
|
$2,480
|
$7,273
|
$3,745
|
$3,528
|
December 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
|
$620
|
$-
|
$(214)
|
$2,547
|
$1,661
|
$886
|
Farmland
|
34
|
-
|
-
|
(9)
|
25
|
-
|
25
|
Real
Estate
|
843
|
-
|
2
|
(126)
|
719
|
209
|
510
|
Multi-Family
|
23
|
-
|
-
|
(6)
|
19
|
-
|
19
|
Commercial Real
Estate
|
705
|
-
|
13
|
(236)
|
482
|
-
|
482
|
Home Equity –
closed end
|
75
|
7
|
25
|
(27)
|
66
|
-
|
66
|
Home Equity –
open end
|
470
|
26
|
53
|
(288)
|
209
|
-
|
209
|
Commercial
& Industrial – Non-Real Estate
|
586
|
179
|
72
|
(142)
|
337
|
-
|
337
|
Consumer
|
78
|
136
|
28
|
178
|
148
|
-
|
148
|
Dealer
Finance
|
1,289
|
1,806
|
1,143
|
814
|
1,440
|
12
|
1,428
|
Credit
Cards
|
59
|
98
|
37
|
54
|
52
|
-
|
52
|
Total
|
$7,543
|
$2,872
|
$1,373
|
$-
|
$6,044
|
$1,882
|
$4,162
|
September 30,
2018
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$68,806
|
$9,798
|
$59,008
|
Farmland
|
16,735
|
1,941
|
14,794
|
Real
Estate
|
188,460
|
1,792
|
186,668
|
Multi-Family
|
9,823
|
-
|
9,823
|
Commercial Real
Estate
|
155,651
|
7,295
|
148,356
|
Home Equity –
closed end
|
10,765
|
-
|
10,765
|
Home Equity
–open end
|
55,136
|
-
|
55,136
|
Commercial &
Industrial – Non-Real Estate
|
35,715
|
-
|
35,715
|
Consumer
|
10,660
|
9
|
10,651
|
Dealer
Finance
|
92,084
|
250
|
91,834
|
Credit
Cards
|
2,949
|
-
|
2,949
|
|
$646,784
|
$21,085
|
$625,699
|
Total
|
|
|
|
December 31,
2017
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$71,620
|
$9,350
|
$62,270
|
Farmland
|
13,606
|
1,984
|
11,622
|
Real
Estate
|
184,546
|
2,461
|
182,085
|
Multi-Family
|
10,298
|
-
|
10,298
|
Commercial Real
Estate
|
148,906
|
6,229
|
142,677
|
Home Equity –
closed end
|
11,606
|
-
|
11,606
|
Home Equity
–open end
|
54,739
|
-
|
54,739
|
Commercial &
Industrial – Non-Real Estate
|
36,912
|
-
|
36,912
|
Consumer
|
6,633
|
8
|
6,625
|
Dealer
Finance
|
75,169
|
78
|
75,091
|
Credit
Cards
|
2,939
|
-
|
2,939
|
|
$616,974
|
$20,110
|
$596,864
|
Total
|
|
|
|
September 30, 2018
|
Grade 1 Minimal Risk
|
Grade 2 Modest Risk
|
Grade 3 Average Risk
|
Grade 4 Acceptable Risk
|
Grade 5 Marginally Acceptable
|
Grade 6 Watch
|
Grade 7 Substandard
|
Grade 8 Doubtful
|
Total
|
Construction/Land
Development
|
$-
|
$1,625
|
$17,494
|
$33,461
|
$7,071
|
$270
|
$8,885
|
$-
|
$68,806
|
Farmland
|
62
|
-
|
4,469
|
5,800
|
3,970
|
493
|
1,941
|
-
|
16,735
|
Real
Estate
|
-
|
1,617
|
53,949
|
104,600
|
22,070
|
1,154
|
5,070
|
-
|
188,460
|
Multi-Family
|
-
|
-
|
3,007
|
6,645
|
171
|
-
|
-
|
-
|
9,823
|
Commercial
Real Estate
|
-
|
2,388
|
46,030
|
86,775
|
11,301
|
2,962
|
6,195
|
-
|
155,651
|
Home
Equity – closed end
|
-
|
-
|
3,337
|
5,490
|
1,924
|
-
|
14
|
-
|
10,765
|
Home
Equity – open end
|
115
|
1,713
|
20,073
|
29,050
|
3,559
|
56
|
570
|
-
|
55,136
|
Commercial
& Industrial (Non-Real Estate)
|
223
|
1,971
|
17,609
|
12,725
|
2,664
|
349
|
174
|
-
|
35,715
|
Consumer
(excluding dealer)
|
34
|
178
|
2,893
|
$5,597
|
1,893
|
65
|
-
|
-
|
10,660
|
Total
|
$434
|
$9,492
|
$168,861
|
$290,143
|
$54,623
|
$5,349
|
$22,849
|
$-
|
$551,751
|
|
Credit Cards
|
Dealer Finance
|
Performing
|
$2,937
|
$91,795
|
Non-performing
|
12
|
289
|
Total
|
$2,949
|
$92,084
|
|
|
|
December 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
|
$-
|
$690
|
$12,974
|
$30,197
|
$9,165
|
$3,520
|
$15,074
|
$-
|
$71,620
|
Farmland
|
63
|
|
3,153
|
4,120
|
3,793
|
494
|
1,983
|
-
|
13,606
|
Real
Estate
|
-
|
1,512
|
53,764
|
101,606
|
19,734
|
4,660
|
3,270
|
-
|
184,546
|
Multi-Family
|
-
|
228
|
4,780
|
5,111
|
179
|
-
|
-
|
-
|
10,298
|
Commercial
Real Estate
|
-
|
3,525
|
45,384
|
89,195
|
9,012
|
634
|
1,156
|
-
|
148,906
|
Home
Equity – closed end
|
-
|
-
|
3,535
|
5,410
|
1,279
|
1,379
|
3
|
-
|
11,606
|
Home
Equity – open end
|
235
|
1,598
|
17,383
|
30,888
|
3,945
|
176
|
514
|
-
|
54,739
|
Commercial
& Industrial (Non-Real Estate)
|
262
|
1,595
|
13,297
|
19,442
|
1,480
|
207
|
629
|
-
|
36,912
|
Consumer
(excluding dealer)
|
34
|
490
|
2,226
|
88
|
1,065
|
2,254
|
476
|
-
|
6,633
|
Total
|
$594
|
$9,638
|
$156,496
|
$286,057
|
$49,652
|
$13,324
|
$23,105
|
$-
|
$538,866
|
|
Credit Cards
|
Dealer Finance
|
Performing
|
$2,938
|
$75,116
|
Non-performing
|
1
|
53
|
Total
|
$2,939
|
$75,169
|
|
Nine Months
Ended
|
Three Months
Ended
|
||
|
September 30,
2018
|
September 30,
2017
|
September 30,
2018
|
September 30,
2017
|
Service
cost
|
$576
|
$522
|
$192
|
$174
|
Interest
cost
|
372
|
365
|
124
|
122
|
Expected return on
plan assets
|
(693)
|
(638)
|
(231)
|
(213)
|
Amortization of
prior service cost
|
(12)
|
(11)
|
(4)
|
(4)
|
Amortization of net
loss
|
228
|
213
|
76
|
71
|
Net periodic
pension cost
|
$471
|
$450
|
$157
|
$150
|
|
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.
|
September 30,
2018
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U.S. Government
sponsored enterprises
|
$7,820
|
$-
|
$7,820
|
$-
|
Mortgage-backed
obligations of federal agencies
|
424
|
-
|
424
|
-
|
Total securities
available for sale
|
$8,244
|
$-
|
$8,244
|
$-
|
|
|
|
|
|
December 31,
2017
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U. S.
Treasuries
|
$19,998
|
$19,998
|
$-
|
$-
|
U.S. Government
sponsored enterprises
|
7,980
|
-
|
7,980
|
-
|
Mortgage-backed
obligations of federal agencies
|
502
|
-
|
502
|
-
|
Equity
securities1
|
135
|
-
|
135
|
-
|
Total securities
available for sale
|
$28,615
|
$19,998
|
$8,617
|
$-
|
September 30,
2018
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$4,644
|
$-
|
$-
|
$4,644
|
Real
Estate
|
419
|
-
|
-
|
419
|
Commercial
Real Estate
|
4,312
|
-
|
-
|
4,312
|
Consumer
|
7
|
-
|
-
|
7
|
Dealer
Finance
|
219
|
-
|
-
|
219
|
Impaired
loans
|
$9,601
|
$-
|
$-
|
$9,601
|
|
|
|
|
|
December 31,
2017
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$3,337
|
$-
|
-
|
$3,337
|
Real
Estate
|
979
|
-
|
-
|
979
|
Dealer
Finance
|
35
|
-
|
-
|
35
|
Impaired
loans
|
$4,351
|
$-
|
$-
|
$4,351
|
|
Fair Value at
September 30, 2018
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Impaired
Loans
|
$
9,601
|
Discounted
appraised value
|
Discount for
selling costs and marketability
|
2%-19%
(Average 4.9%)
|
|
Fair Value at
December 31, 2017
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Impaired
Loans
|
$
4,351
|
Discounted
appraised value
|
Discount for
selling costs and marketability
|
3%-19%
(Average 5.5 %)
|
September 30,
2018
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$2,063
|
-
|
-
|
$2,063
|
December 31,
2017
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$1,984
|
-
|
-
|
$1,984
|
|
Fair Value at
September 30, 2018
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Other
real estate owned
|
$
2,063
|
Discounted
appraised value
|
Discount for
selling costs
|
2.5%-10% (Average
4%)
|
|
Fair Value at
December 31, 2017
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Other
real estate owned
|
$
1,984
|
Discounted
appraised value
|
Discount for
selling costs
|
5%-15%
(Average 8%)
|
|
|
Fair Value
Measurements at September 30, 2018 Using
|
|||
(dollars in
thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets for Identical Assets (Level 1)
|
Significant
Other Observable Inputs (Level 2)
|
Significant
Unobservable Inputs (Level 3)
|
Fair Value at
September 30, 2018
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$17,423
|
$17,423
|
$-
|
$-
|
$17,423
|
Securities
|
8,367
|
-
|
8,367
|
-
|
8,367
|
Loans held for
sale
|
38,595
|
-
|
38,595
|
-
|
38,595
|
Loans held for
investment, net
|
639,511
|
-
|
-
|
636,558
|
636,558
|
Interest
receivable
|
2,076
|
-
|
2,076
|
-
|
2,076
|
Bank owned life
insurance
|
19,320
|
-
|
19,320
|
-
|
19,320
|
Total
|
$725,292
|
$17,423
|
$68,358
|
$636,558
|
$722,339
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$588,985
|
$-
|
$431,124
|
$160,211
|
$591,335
|
Short-term
debt
|
30,000
|
-
|
30,000
|
-
|
30,000
|
Long-term
debt
|
46,326
|
-
|
-
|
46,251
|
46,251
|
Interest
payable
|
318
|
-
|
318
|
-
|
318
|
Total
|
$665,629
|
$-
|
$461,442
|
$206,462
|
$667,904
|
|
|
Fair Value
Measurements at December 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
December 31, 2017
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$11,907
|
$11,907
|
$-
|
$-
|
$11,907
|
Securities
|
28,740
|
19,998
|
8,742
|
-
|
28,740
|
Loans held for
sale
|
39,775
|
-
|
39,775
|
-
|
39,775
|
Loans held for
investment, net
|
610,930
|
-
|
-
|
646,703
|
646,703
|
Interest
receivable
|
2,007
|
-
|
2,007
|
-
|
2,007
|
Bank owned life
insurance
|
13,950
|
-
|
13,950
|
-
|
13,950
|
Total
|
$707,309
|
$31,905
|
$64,474
|
$646,703
|
$743,082
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$569,177
|
$-
|
$403,907
|
$167,210
|
$571,117
|
Short-term
debt
|
25,296
|
-
|
25,296
|
-
|
25,296
|
Long-term
debt
|
49,733
|
-
|
-
|
49,869
|
49, 869
|
Interest
payable
|
260
|
-
|
260
|
-
|
260
|
Total
|
$644,466
|
$-
|
$429,463
|
$217,079
|
$646,542
|
|
September 30,
2018
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Commercial Real
Estate
|
3
|
$2,245
|
$2,245
|
Consumer
|
14
|
199
|
199
|
Total
|
17
|
$2,444
|
$2,444
|
|
September 30,
2018
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Commercial Real
Estate
|
1
|
$990
|
$990
|
Consumer
|
2
|
14
|
14
|
Total
|
3
|
$1,004
|
$1,004
|
|
September 30,
2017
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Consumer
|
1
|
$18
|
$18
|
Total
|
1
|
$18
|
$18
|
|
September 30,
2017
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Real
Estate
|
1
|
$67
|
$67
|
Total
|
1
|
$67
|
$67
|
(dollars in
thousands)
|
Unrealized
Securities Gains (Losses)
|
Adjustments
Related to Pension Plan
|
Accumulated
Other Comprehensive Loss
|
Balance at December
31, 2017
|
$(20)
|
$(4,122)
|
$(4,142)
|
Change
in unrealized securities gains (losses), net of tax
|
(131)
|
-
|
(131)
|
Change
in unfunded pension liability, net of tax
|
-
|
-
|
-
|
Balance at
September 30, 2018
|
$(151)
|
$(4,122)
|
$(4,273)
|
|
|
|
|
(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
September 30, 2017
|
$5
|
$(3,171)
|
$(3,166)
|
|
Nine Months Ended September 30, 2018
|
||||||
|
F&M Bank
|
F&M Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$26,915
|
$101
|
$109
|
$-
|
$-
|
$(92)
|
$27,033
|
Service
charges on deposits
|
1,102
|
-
|
-
|
-
|
-
|
-
|
1,102
|
Investment
services and insurance income
|
-
|
-
|
673
|
-
|
-
|
(14)
|
659
|
Mortgage
banking income, net
|
-
|
1,664
|
-
|
-
|
-
|
-
|
1,664
|
Title
insurance income
|
-
|
232
|
-
|
734
|
-
|
-
|
966
|
Other
operating income
|
1,489
|
(1)
|
-
|
-
|
-
|
-
|
1,488
|
Total
income
|
29,506
|
1,996
|
782
|
734
|
-
|
(106)
|
32,912
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
3,403
|
87
|
-
|
-
|
-
|
(92)
|
3,398
|
Provision
for loan losses
|
2,480
|
-
|
-
|
-
|
-
|
-
|
2,480
|
Salary
and benefit expense
|
9,877
|
1,404
|
437
|
517
|
-
|
-
|
12,235
|
Other
operating expenses
|
7,111
|
538
|
45
|
128
|
36
|
(14)
|
7,844
|
Total
expense
|
22,871
|
2,029
|
482
|
645
|
36
|
(106)
|
25,957
|
Net
income (loss) before taxes
|
6,635
|
(33)
|
300
|
89
|
(36)
|
-
|
6,955
|
Income
tax expense
|
597
|
-
|
52
|
-
|
141
|
-
|
790
|
Net
income (loss)
|
$6,038
|
$(33)
|
$248
|
$89
|
$(177)
|
$-
|
$6,165
|
Net
income (loss) attributable to non-controlling interest
|
-
|
(10)
|
-
|
-
|
-
|
-
|
(10)
|
Net
Income attributable to F & M Bank Corp.
|
$6,038
|
$(23)
|
$248
|
$89
|
$(177)
|
$-
|
$6,175
|
Total Assets
|
$777,401
|
$7,103
|
$6,954
|
$720
|
$92,372
|
$(108,945)
|
$775,605
|
Goodwill
|
$2,670
|
$65
|
$-
|
$57
|
$164
|
$-
|
$2,956
|
|
Three months ended September 30, 2018
|
||||||
|
F&M Bank
|
F&M Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$9,295
|
$31
|
$37
|
$-
|
$-
|
$(35)
|
$9,328
|
Service
charges on deposits
|
378
|
-
|
-
|
-
|
-
|
-
|
378
|
Investment
services and insurance income
|
-
|
-
|
242
|
-
|
-
|
(3)
|
239
|
Mortgage
banking income, net
|
-
|
529
|
-
|
-
|
-
|
-
|
529
|
Title
insurance income
|
-
|
123
|
-
|
281
|
-
|
-
|
404
|
Other
operating income
|
646
|
(49)
|
-
|
-
|
-
|
-
|
597
|
Total
income
|
10,319
|
634
|
279
|
281
|
-
|
(38)
|
11,475
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
1,305
|
34
|
-
|
-
|
-
|
(35)
|
1,304
|
Provision
for loan losses
|
450
|
-
|
-
|
-
|
-
|
-
|
450
|
Salary
and benefit expense
|
3,312
|
574
|
154
|
172
|
-
|
-
|
4,212
|
Other
operating expenses
|
2,617
|
82
|
16
|
39
|
6
|
(3)
|
2,757
|
Total
expense
|
7,684
|
690
|
170
|
211
|
6
|
(38)
|
8,723
|
Net
income (loss) before taxes
|
2,635
|
(56)
|
109
|
70
|
(6)
|
-
|
2,752
|
Income
tax expense
|
312
|
-
|
16
|
-
|
(76)
|
-
|
252
|
Net
income (loss)
|
$2,323
|
$(56)
|
$93
|
$70
|
$70
|
$-
|
$2,500
|
Net
income (loss) attributable to non-controlling interest
|
-
|
(15)
|
-
|
-
|
-
|
-
|
(15)
|
Net
Income attributable to F & M Bank Corp.
|
$2,323
|
$(41)
|
$93
|
$70
|
$70
|
$-
|
$2,515
|
|
Nine Months Ended September 30, 2017
|
||||||
|
F&M Bank
|
VBS Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$24,815
|
$97
|
$112
|
$-
|
$-
|
$(70)
|
$24,954
|
Service
charges on deposits
|
1,010
|
-
|
-
|
-
|
-
|
-
|
1,010
|
Investment
services and insurance income
|
1
|
-
|
529
|
-
|
-
|
-
|
530
|
Mortgage
banking income, net
|
-
|
1,763
|
-
|
-
|
-
|
-
|
1,763
|
Title
insurance income
|
-
|
211
|
-
|
668
|
-
|
-
|
879
|
Gain
on prepayment of long-term debt
|
504
|
-
|
-
|
-
|
-
|
-
|
504
|
Loss
on investments
|
-
|
(40)
|
(2)
|
-
|
-
|
-
|
(42)
|
Other
operating income
|
1,296
|
-
|
-
|
-
|
-
|
-
|
1,296
|
Total
income
|
27,626
|
2,031
|
639
|
668
|
-
|
(70)
|
30,894
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
2,866
|
65
|
-
|
-
|
-
|
(70)
|
2,861
|
Provision
for loan losses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Salary
expense
|
9,026
|
1,203
|
341
|
399
|
-
|
-
|
10,969
|
Other
operating expenses
|
6,421
|
591
|
23
|
118
|
4
|
-
|
7,157
|
Total
expense
|
18,313
|
1,859
|
364
|
517
|
4
|
(70)
|
20,987
|
Net
income (loss) before taxes
|
9,313
|
172
|
275
|
151
|
(4)
|
-
|
9,907
|
Income
tax expense
|
2,603
|
-
|
83
|
-
|
(53)
|
-
|
2,633
|
Net
income (loss)
|
$6,710
|
$172
|
$192
|
$151
|
$49
|
$-
|
$7,274
|
Net
income attributable to non-controlling interest
|
-
|
51
|
-
|
-
|
-
|
-
|
51
|
Net
Income attributable to F & M Bank Corp.
|
$6,710
|
$121
|
$192
|
$151
|
$49
|
$-
|
$7,223
|
Total Assets
|
$750,048
|
$6,309
|
$6,644
|
$443
|
$91,362
|
$(91,121)
|
$763,685
|
Goodwill
|
$2,670
|
$103
|
$-
|
$-
|
$340
|
$-
|
$3,113
|
|
Three Months Ended September 30, 2017
|
||||||
|
F&M Bank
|
VBS Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$8,643
|
$32
|
$37
|
$-
|
$-
|
$(24)
|
$8,688
|
Service
charges on deposits
|
359
|
-
|
-
|
-
|
-
|
-
|
359
|
Investment
services and insurance income
|
-
|
-
|
169
|
-
|
-
|
-
|
169
|
Mortgage
banking income, net
|
-
|
783
|
-
|
-
|
-
|
-
|
783
|
Title
insurance income
|
-
|
78
|
-
|
247
|
-
|
-
|
325
|
Gain
on prepayment of long-term debt
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Loss
on investments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
operating income
|
509
|
-
|
-
|
-
|
-
|
-
|
509
|
Total
income
|
9,511
|
893
|
206
|
247
|
-
|
(24)
|
10,833
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
1,030
|
24
|
-
|
-
|
-
|
(24)
|
1,030
|
Provision
for loan losses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Salary
and benefit expense
|
3,048
|
587
|
107
|
141
|
-
|
-
|
3,883
|
Other
operating expenses
|
2,203
|
121
|
6
|
46
|
-
|
-
|
2,376
|
Total
expense
|
6,281
|
732
|
113
|
187
|
-
|
(24)
|
7,289
|
Net
income (loss) before taxes
|
3,230
|
161
|
93
|
60
|
-
|
-
|
3,544
|
Income
tax expense
|
933
|
-
|
30
|
-
|
(17)
|
-
|
946
|
Net
income (loss)
|
$2,297
|
$161
|
$63
|
$60
|
$17
|
$-
|
$2,598
|
Net
income attributable to non-controlling interest
|
-
|
48
|
-
|
-
|
-
|
-
|
48
|
Net
Income attributable to F & M Bank Corp.
|
$2,297
|
$113
|
$63
|
$60
|
$17
|
$-
|
$2,550
|
|
Nine Months Ended September 30,
|
Three Months Ended September 30, 2018
|
||
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
Noninterest
Income (in thousands)
|
|
|
|
|
In-scope
of Topic 606:
|
|
|
|
|
Service
Charges on Deposits
|
$1,102
|
$1,010
|
$378
|
$359
|
Investment
Services and Insurance Income
|
659
|
530
|
239
|
169
|
Title
Insurance Income
|
966
|
668
|
404
|
247
|
ATM
and check card fees
|
1,130
|
1,034
|
395
|
353
|
Other
|
390
|
368
|
142
|
129
|
Noninterest
Income (in-scope of Topic 606)
|
4,247
|
3,610
|
1,556
|
1,257
|
Noninterest
Income (out-of-scope of Topic 606)
|
1,632
|
2,330
|
591
|
888
|
Total
Noninterest Income
|
$5,879
|
$5,940
|
$2,147
|
$2,145
|
In
thousands
|
2018
|
2017
|
Net Income from
Bank Operations
|
$6,263
|
$7,023
|
Income (loss) from
Parent Company Activities
|
(88)
|
200
|
Net Income for the
nine months ended September 30
|
$6,175
|
$7,223
|
In
thousands
|
2018
|
2017
|
Net Income from
Bank Operations
|
$2,375
|
$2,473
|
Income from Parent
Company Activities
|
140
|
77
|
Net Income for the
three months ended September 30
|
$2,515
|
$2,550
|
GAAP Financial
Measurements:
(Dollars
in thousands).
|
September 30,
2018
|
September 30,
2017
|
||
|
Nine
Months
|
Three
Months
|
Nine
Months
|
Three
Months
|
Interest
Income – Loans
|
$26,647
|
$9,179
|
$24,604
|
$8,550
|
Interest Income -
Securities and Other Interest-Earnings Assets
|
386
|
149
|
350
|
138
|
Interest
Expense – Deposits
|
2,377
|
872
|
1,947
|
698
|
Interest
Expense - Other Borrowings
|
1,021
|
432
|
914
|
332
|
Total
Net Interest Income
|
23,635
|
8,024
|
22,093
|
7,658
|
|
|
|
|
|
Non-GAAP
Financial Measurements:
|
|
|
|
|
Add: Tax Benefit on
Tax-Exempt Interest Income – Loans
|
103
|
62
|
107
|
37
|
Total
Tax Benefit on Tax-Exempt Interest Income
|
103
|
62
|
107
|
37
|
Tax-Equivalent
Net Interest Income
|
$23,738
|
$8,086
|
$22,200
|
$7,695
|
|
September
30, 2018
|
December 31,
2017
|
|
|
|
Nonaccrual Loans
|
|
|
Real
Estate
|
$6,521
|
$5,628
|
Commercial
|
6,307
|
599
|
Home
Equity
|
125
|
451
|
Other
|
390
|
226
|
|
|
|
Loans past due 90 days or more (excluding nonaccrual)
|
|
|
Real
Estate
|
1,484
|
143
|
Commercial
|
-
|
-
|
Home
Equity
|
401
|
-
|
Other
|
12
|
55
|
|
|
|
Total Nonperforming
loans
|
$15,240
|
$7,102
|
|
|
|
Restructured Loans
current and performing:
|
|
|
Real
Estate
|
6,101
|
7,710
|
Commercial
|
1,255
|
-
|
Home
Equity
|
-
|
-
|
Other
|
245
|
78
|
|
|
|
Nonperforming loans
as a percentage of loans held for investment
|
2.36%
|
1.15%
|
|
|
|
Net charge offs to
total loans held for investment
|
.19%
|
.24%
|
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
47.72%
|
85.10%
|
|
Nine Months
Ended
|
Nine Months
Ended
|
Three Months
Ended
|
Three Months
Ended
|
||||||||
|
September 30,
2018
|
September 30,
2017
|
September 30,
2018
|
September 30,
2017
|
||||||||
Average
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
Income/
|
Average
|
|
Balance2,4
|
Expense
|
Rates
|
Balance2,4
|
Expense
|
Rates
|
Balance2,4
|
Expense
|
Rates
|
Balance2,4
|
Expense
|
Rates
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment1,2
|
$630,016
|
$25,975
|
5.51%
|
$599,198
|
$23,937
|
5.34%
|
$639,195
|
$8,924
|
5.54%
|
$611,426
|
$8,258
|
5.36%
|
Loans held for
sale
|
32,904
|
775
|
3.15%
|
36,026
|
774
|
2.87%
|
39,791
|
317
|
3.16%
|
45,007
|
329
|
2.90%
|
Federal funds
sold
|
4,708
|
62
|
1.76%
|
15,780
|
108
|
.92%
|
8,705
|
44
|
2.01%
|
11,131
|
37
|
1.32%
|
Interest bearing
deposits
|
985
|
11
|
1.49%
|
1,594
|
8
|
.67%
|
784
|
4
|
2.02%
|
2,569
|
4
|
.62%
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable 3
|
13,755
|
313
|
3.04%
|
11,211
|
234
|
2.79%
|
14,153
|
101
|
2.83%
|
11,195
|
97
|
3.44%
|
Partially
taxable
|
124
|
-
|
-
|
125
|
-
|
-
|
123
|
-
|
-
|
125
|
-
|
-
|
Total earning
assets
|
$682,492
|
$27,136
|
5.32%
|
$663,934
|
$25,061
|
5.05%
|
$702,751
|
$9,390
|
5.30%
|
$681,453
|
$8,725
|
5.08%
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
119,497
|
464
|
.52%
|
119,318
|
393
|
.44%
|
127,155
|
197
|
.61%
|
119,179
|
140
|
.47%
|
Savings
|
123,522
|
415
|
.45%
|
112,803
|
379
|
.45%
|
124,371
|
140
|
.45%
|
114,864
|
132
|
.46%
|
Time deposits
|
163,002
|
1,498
|
1.23%
|
157,579
|
1,175
|
1.00%
|
160,816
|
535
|
1.32%
|
161,487
|
426
|
1.05%
|
Short-term debt
|
22,242
|
282
|
1.70%
|
21,217
|
46
|
.29%
|
38,568
|
146
|
1.50%
|
32,832
|
14
|
.16%
|
Long-term debt
|
47,735
|
739
|
2.07%
|
53,968
|
868
|
2.15%
|
46,616
|
286
|
2.43%
|
51,169
|
318
|
2.47%
|
Total interest bearing
liabilities
|
$475,998
|
$3,398
|
.95%
|
$464,885
|
$2,861
|
.82%
|
$497,526
|
$1,304
|
1.04%
|
$479,531
|
$1,030
|
.86%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent net interest
income
|
|
$23,738
|
|
|
$22,200
|
|
|
$8,086
|
|
|
$7,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
4.65%
|
|
|
4.47%
|
|
|
4.56%
|
|
|
4.48%
|
|
0 – 3
|
4 – 12
|
1 – 5
|
Over
5
|
Not
|
|
sds
|
Months
|
Months
|
Years
|
Years
|
Classified
|
Total
|
|
|
|
|
|
|
|
Uses of funds
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
Commercial
|
$41,871
|
$32,918
|
$111,884
|
$31,251
|
$-
|
$217,924
|
Installment
|
6,380
|
2,358
|
73,955
|
20,051
|
-
|
102,744
|
Real estate loans
for investments
|
98,680
|
49,503
|
163,182
|
11,802
|
-
|
323,167
|
Loans held for
sale
|
38,595
|
-
|
-
|
-
|
-
|
38,595
|
Credit
cards
|
2,949
|
-
|
-
|
-
|
-
|
2,949
|
Interest bearing
bank deposits
|
805
|
-
|
-
|
-
|
-
|
805
|
Federal funds
sold
|
6,313
|
|
|
|
|
6,313
|
Investment
securities
|
-
|
-
|
7,943
|
424
|
-
|
8,367
|
Total
|
$195,593
|
$84,779
|
$356,964
|
$63,528
|
$-
|
$700,864
|
|
|
|
|
|
|
|
Sources of funds
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
$-
|
$45,761
|
$82,141
|
$18,190
|
$-
|
$146,092
|
Savings
deposits
|
-
|
24,224
|
72,672
|
24,224
|
-
|
121,120
|
Certificates of
deposit $100,000 and over
|
2,283
|
18,906
|
31,285
|
295
|
-
|
52,769
|
Other certificates
of deposit
|
7,074
|
32,669
|
64,947
|
401
|
-
|
105,091
|
Short-term
borrowings
|
30,000
|
-
|
-
|
-
|
-
|
30,000
|
Long-term
borrowings
|
6,107
|
5,907
|
30,687
|
3,625
|
-
|
46,326
|
Total
|
$45,464
|
$127,467
|
$281,732
|
$46,735
|
$-
|
$501,398
|
|
|
|
|
|
|
|
Discrete
Gap
|
$150,129
|
$(42,688)
|
$75,230
|
$16,793
|
$-
|
$199,464
|
|
|
|
|
|
|
|
Cumulative
Gap
|
$150,129
|
$107,441
|
$182,671
|
$199,464
|
$199,464
|
|
|
|
|
|
|
|
|
Ratio of Cumulative
Gap to Total Earning Assets
|
21.42%
|
15.33%
|
26.06%
|
28.46%
|
28.46%
|
|
|
F & M BANK
CORP.
|
|
|
|
|
|
|
|
By:
|
/s/ Mark C.
Hanna
|
|
|
|
Mark C.
Hanna
|
|
|
|
President and Chief
Executive Officer
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Carrie A.
Comer
|
|
|
|
Carrie A.
Comer
|
|
|
|
Executive Vice
President and Chief Financial Officer
|
|
|
|
|
Dated: November 9,
2018
|
By:
|
/s/
Mark C.
Hanna
|
|
|
|
Mark C.
Hanna
|
|
|
|
President &
Chief Executive Officer
|
|
|
|
|
Dated: November 9,
2018
|
By:
|
/s/
Carrie
A. Comer
|
|
|
|
Carrie A.
Comer
|
|
|
|
Executive Vice
President & Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
By:
|
/s/
Mark C.
Hanna
|
|
|
|
Mark C.
Hanna
|
|
|
|
President and Chief
Executive Officer
|
|
By:
|
/s/
Carrie
A. Comer
|
|
|
|
Carrie A.
Comer
|
|
|
|
Executive Vice
President & Chief Financial Officer
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 06, 2018 |
|
Document And Entity Information | ||
Entity Registrant Name | F&M BANK CORP | |
Entity Central Index Key | 0000740806 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 3,218,974 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets | ||
Held to maturity - fair value | $ 123 | $ 125 |
STOCKHOLDERS EQUITY: | ||
Preferred Stock, par value | $ 25 | $ 25 |
Preferred Stock shares authorized | 400,000 | 400,000 |
Preferred Stock shares issued | 322,510 | 324,150 |
Preferred Stock shares outstanding | 322,510 | 324,150 |
Common stock, par value | $ 5 | $ 5 |
Common stock shares authorized | 6,000,000 | 6,000,000 |
Common stock shares issued | 3,223,683 | 3,255,036 |
Common stock shares outstanding | 3,223,683 | 3,255,036 |
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Interest and Dividend income | ||||
Interest and fees on loans held for investment | $ 8,862 | $ 8,221 | $ 25,872 | $ 23,830 |
Interest and fees on loans held for sale | 317 | 329 | 775 | 774 |
Interest from money market funds and federal funds sold | 48 | 41 | 73 | 116 |
Interest on debt securities - taxable | 101 | 97 | 313 | 234 |
Total interest and dividend income | 9,328 | 8,688 | 27,033 | 24,954 |
Interest expense | ||||
Interest on deposits | 872 | 698 | 2,377 | 1,947 |
Interest from short-term debt | 146 | 14 | 282 | 46 |
Interest from long-term debt | 286 | 318 | 739 | 868 |
Total interest expense | 1,304 | 1,030 | 3,398 | 2,861 |
Net interest income | 8,024 | 7,658 | 23,635 | 22,093 |
Provision for loan losses | 450 | 0 | 2,480 | 0 |
Net interest income after provision for loan losses | 7,574 | 7,658 | 21,155 | 22,093 |
Noninterest income | ||||
Service charges on deposit accounts | 378 | 359 | 1,102 | 1,010 |
Investment services and insurance income | 239 | 169 | 659 | 530 |
Mortgage banking income, net | 529 | 783 | 1,664 | 1,763 |
Title insurance income | 404 | 325 | 966 | 879 |
Income on bank owned life insurance | 158 | 112 | 380 | 336 |
Low income housing partnership losses | (189) | (201) | (573) | (587) |
ATM and check card fees | 395 | 353 | 1,130 | 1,034 |
Gain on prepayment of long-term debt | 0 | 504 | ||
Loss on sale of other investments | 0 | (42) | ||
Other operating income | 233 | 245 | 551 | 513 |
Total noninterest income | 2,147 | 2,145 | 5,879 | 5,940 |
Noninterest expense | ||||
Salaries | 3,277 | 3,194 | 9,424 | 8,502 |
Employee benefits | 935 | 689 | 2,811 | 2,467 |
Occupancy expense | 286 | 281 | 823 | 776 |
Equipment expense | 271 | 224 | 788 | 613 |
FDIC insurance assessment | 70 | 20 | 166 | 200 |
Other real estate owned, net | 15 | (4) | 17 | 22 |
Marketing expense | 156 | 147 | 387 | 404 |
Legal and professional fees | 173 | 78 | 372 | 253 |
ATM and check card fees | 185 | 183 | 541 | 529 |
Telecommunication and data processing expense | 401 | 370 | 1,152 | 1,045 |
Directors fees | 117 | 117 | 345 | 360 |
Bank franchise tax | 105 | 167 | 417 | 491 |
Other operating expenses | 978 | 793 | 2,836 | 2,464 |
Total noninterest expense | 6,969 | 6,259 | 20,079 | 18,126 |
Income before income taxes | 2,752 | 3,544 | 6,955 | 9,907 |
Income tax expense | 252 | 946 | 790 | 2,633 |
Net Income | 2,500 | 2,598 | 6,165 | 7,274 |
Net income attributable to noncontrolling interest | (15) | 48 | (10) | 51 |
Net income attributable to F & M Bank Corp. | 2,515 | 2,550 | 6,175 | 7,223 |
Dividends paid/accumulated on preferred stock | 103 | 103 | 310 | 312 |
Net income available to common stockholders | $ 2,412 | $ 2,447 | $ 5,865 | $ 6,911 |
Per Common Share Data | ||||
Net income - basic | $ 0.75 | $ 0.75 | $ 1.81 | $ 2.11 |
Net income - diluted | 0.7 | 0.7 | 1.71 | 1.99 |
Cash dividends on common stock | $ 0.25 | $ 0.24 | $ 0.95 | $ 0.69 |
Weighted average shares outstanding - basic | 3,229,341 | 3,270,969 | 3,245,032 | 3,271,863 |
Weighted average shares outstanding - diluted | 3,587,650 | 3,632,607 | 3,604,193 | 3,634,856 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Net Income: | ||||
Net Income | $ 2,515 | $ 2,550 | $ 6,175 | $ 7,223 |
Other comprehensive (loss): | ||||
Unrealized holding (losses) on available-for-sale securities | 2 | 0 | (166) | (2) |
Tax effect | 0 | 0 | 35 | 1 |
Unrealized holding (losses), net of tax | 2 | 0 | (131) | (1) |
Total other comprehensive (loss) | 2 | 0 | (131) | (1) |
Total comprehensive income | 2,517 | 2,550 | 6,044 | 7,222 |
Comprehensive income attributable to noncontrolling interests | (15) | 48 | (10) | 51 |
Comprehensive income (loss) attributable to F&M Bank Corp. | $ 2,502 | $ 2,598 | $ 6,034 | $ 7,273 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) $ in Thousands |
USD ($) |
---|---|
Balance, beginning of period at Dec. 31, 2016 | $ 86,682 |
Comprehensive income | |
Net income attributable to F & M Bank Corp. | 7,223 |
Net income (loss) attributable to non-controlling interest | 51 |
Other comprehensive (loss) | (1) |
Total comprehensive income | 7,273 |
Minority interest capital distributions | (149) |
Issuance of common stock | 150 |
Repurchase of common stock | (199) |
Repurchase of preferred stock | (101) |
Dividends paid | (2,500) |
Balance, end of period at Sep. 30, 2017 | 91,156 |
Balance, beginning of period at Dec. 31, 2017 | 91,275 |
Comprehensive income | |
Net income attributable to F & M Bank Corp. | 6,175 |
Net income (loss) attributable to non-controlling interest | (10) |
Other comprehensive (loss) | (131) |
Total comprehensive income | 6,034 |
Minority interest capital distributions | (25) |
Issuance of common stock | 210 |
Repurchase of common stock | (1,375) |
Repurchase of preferred stock | (63) |
Dividends paid | (3,395) |
Balance, end of period at Sep. 30, 2018 | $ 92,661 |
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Cash flows from operating activities | ||
Net income | $ 6,175 | $ 7,223 |
Reconcile net income to net cash provided by operating activities: | ||
Depreciation | 852 | 660 |
Amortization of intangibles | 49 | 2 |
Amortization of securities | 4 | |
Proceeds from loans held for sale originated | 31,665 | 61,310 |
Loans held for sale originated | (30,048) | (59,250) |
Gain on sale of loans held for sale originated | (1,617) | (1,876) |
Gain on prepayment of long-term debt | 0 | (504) |
Provision for loan losses | 2,480 | 0 |
Decrease (increase) in interest receivable | (69) | (60) |
Increase in other assets | (656) | (336) |
Decrease in accrued liabilities | (701) | (422) |
Amortization of limited partnership investments | 573 | 587 |
Income from life insurance investment | (380) | (336) |
Gain on the sale of fixed assets | (9) | 0 |
Loss on sale of other investments | 0 | 42 |
Gain on foreclosure of and valuation adjustments for other real estate owned | (28) | 0 |
Net cash provided by operating activities | 8,290 | 7,040 |
Cash flows from investing activities | ||
Purchase of investments available for sale and other investments | (3,361) | (61,432) |
Purchase of title insurance company | (75) | (304) |
Proceeds from maturity of investments available for sale | 21,636 | 63,811 |
Proceeds from the sale of investments | 0 | 55 |
Net increase in loans held for investment | (31,254) | (29,070) |
Net (increase) decrease in loans held for sale participations | 1,180 | 4,373 |
Purchase of bank owned life insurance | (5,000) | 0 |
Proceeds from the sale of fixed assets | 9 | (7) |
Proceeds from the sale of other real estate owned | 141 | 80 |
Net purchase of property and equipment | (2,533) | (3,036) |
Net cash provided by investing activities | (19,257) | (25,530) |
Cash flows from financing activities | ||
Net change in deposits | 19,808 | 25,295 |
Net change in short-term debt | 4,704 | 2,128 |
Dividends paid in cash | (3,395) | (2,500) |
Proceeds from issuance of common stock | 210 | 150 |
Repurchase of preferred stock | (63) | (101) |
Repurchase of common stock | (1,375) | (199) |
Repayments of long-term debt | (3,406) | (12,892) |
Net cash provided by (used in) financing activities | 16,483 | 11,881 |
Net increase (decrease) in Cash and Cash Equivalents | 5,516 | (6,609) |
Cash and cash equivalents, beginning of period | 11,907 | 16,355 |
Cash and cash equivalents, end of period | 17,423 | 9,746 |
Cash paid for: | ||
Interest | 3,340 | 2,850 |
Taxes | 1,657 | 3,495 |
Supplemental non-cash disclosures: | ||
Transfer from loans to other real estate owned | 193 | 145 |
Change in unrealized gain (loss) on securities available for sale | $ (166) | $ (2) |
1. Summary of Significant Accounting Policies |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. Summary of Significant Accounting Policies | Principles of Consolidation
The accompanying unaudited consolidated financial statements including the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”).
The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Nature of Operations
The Company, through its subsidiary Farmers & Merchants Bank (the “Bank”), operates under a charter issued by the Commonwealth of Virginia and provides commercial banking services. As a state chartered bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions and the Federal Reserve Bank. The Bank provides services to customers primarily located in Rockingham, Shenandoah, Page and Augusta Counties in Virginia. Services are provided at thirteen branch offices and a Dealer Finance Division. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries, TEB Life Insurance, Inc., Farmers & Merchants Financial Services, Inc. (FMFS), F&M Mortgage, and VSTitle, LLC (VST). The Company purchased VSTitle, a title company headquartered in Harrisonburg, VA with offices in Harrisonburg, Fishersville and Charlottesville, VA on January 1, 2017. VSTitle purchased a small title company in January of 2018.
Basis of Presentation
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, goodwill and intangibles, fair value, the valuation of deferred tax assets and liabilities, pension accounting and the valuation of foreclosed real estate. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for fair presentation of the results of operations in these financial statements, have been made.
Reclassification
Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income.
Earnings per Share
Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. In calculating diluted EPS net income available to common stockholders is used as the numerator and the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation.
Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared.
The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented:
The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated:
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2. Investment Securities |
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Fair Value Measurements Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. Investment Securities | Investment securities available for sale are carried in the consolidated balance sheets at their approximate fair value. Investment securities held to maturity are carried in the consolidated balance sheets at their amortized cost at September 30, 2018 and December 31, 2017 are as follows:
The amortized cost and fair value of securities available for sale are as follows:
1 Transferred to other investments on January 1, 2018 upon adoption of ASU 2016-01
The amortized cost and fair value of securities at September 30, 2018, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
There were no gains or losses on sales of available for sale securities in the three or nine month periods ended September 30, 2018 or 2017. There were also no securities with other than temporary impairment and no securities that had been in a continuous loss position in excess of twelve months as of September 30, 2018 and December 31, 2017.
A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of September 30, 2018 and December 31, 2017 were as follows:
As of September 30, 2018, other investments consist of investments in twenty low-income housing and historic equity partnerships (carrying basis of $8,331), stock in the Federal Home Loan Bank (carrying basis $3,922) and various other investments (carrying basis $1,604). The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted as to sales. The fair values of these securities are estimated to approximate their carrying value as of September 30, 2018. At September 30, 2018, the Company was committed to invest an additional $4,324 in six low-income housing limited partnerships. These funds will be paid as requested by the general partner to complete the projects. This additional investment has been reflected in the above carrying basis and in accrued liabilities on the consolidated balance sheet. During the first quarter of 2017, both Farmers & Merchants Financial Services and F&M Mortgage ended their relationship with Bankers Title Virginia resulting in a consolidated loss of $42.
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3. Loans |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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3. Loans | Loans held for investment outstanding at September 30, 2018 and December 31, 2017 are summarized as follows:
The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $187,927 and $218,323 as of September 30, 2018 and December 31, 2017, respectively. The Company maintains a blanket lien on its entire residential real estate portfolio and certain commercial and home equity loans.
Loans held for sale consists of loans originated by F&M Mortgage for sale in the secondary market, and the Bank’s commitment to purchase residential mortgage loan participations from Northpointe Bank. The volume of loans purchased from Northpointe fluctuates due to a number of factors including changes in secondary market rates, which affects demand for mortgage loans; the number of participating banks involved in the program; the number of mortgage loan originators selling loans to the lead bank and the funding capabilities of the lead bank. Loans held for sale as of September 30, 2018 and December 31, 2017 were $38,595 and $39,775, respectively.
The following is a summary of information pertaining to impaired loans (dollars in thousand):
The Recorded Investment is defined as the original principal balance less principal payments, charge-offs and nonaccrual payments applied to principal.
The following is a summary of the average investment and interest income recognized for impaired loans (dollars in thousands):
The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of September 30, 2018 and December 31, 2017:
At September 30, 2018 and December 31, 2017, other real estate owned included $177 and $207 of foreclosed residential real estate. The Company has $900 of consumer mortgages for which foreclosure is in process at September 30, 2018 and $103 at December 31, 2017.
Nonaccrual loans at September 30, 2018 and September 30, 2017, would have earned approximately $371 and $109, respectively, in interest income had they been accruing loans. |
4. Allowance for Loan Losses |
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4. Allowance for Loan Losses | A summary of changes in the allowance for loan losses (dollars in thousands) for September 30, 2018 and December 31, 2017 is as follows:
The following table presents the recorded investment in loans (dollars in thousands) based on impairment method as of September 30, 2018 and December 31, 2017:
The following table shows the Company’s loan portfolio broken down by internal loan grade (dollars in thousands) as of September 30, 2018 and December 31, 2017:
Description of internal loan grades:
Grade 1 – Minimal Risk: Excellent credit, superior asset quality, excellent debt capacity and coverage, and recognized management capabilities.
Grade 2 – Modest Risk: Borrower consistently generates sufficient cash flow to fund debt service, excellent credit, above average asset quality and liquidity.
Grade 3 – Average Risk: Borrower generates sufficient cash flow to fund debt service. Employment (or business) is stable with good future trends. Credit is very good.
Grade 4 – Acceptable Risk: Borrower’s cash flow is adequate to cover debt service; however, unusual expenses or capital expenses must be covered through additional long term debt. Employment (or business) stability is reasonable, but future trends may exhibit slight weakness. Credit history is good. No unpaid judgments or collection items appearing on credit report.
Grade 5 – Marginally acceptable: Credit to borrowers who may exhibit declining earnings, may have leverage that is materially above industry averages, liquidity may be marginally acceptable. Employment or business stability may be weak or deteriorating. May be currently performing as agreed, but would be adversely affected by developing factors such as layoffs, illness, reduced hours or declining business prospects. Credit history shows weaknesses, past dues, paid or disputed collections and judgments, but does not include borrowers that are currently past due on obligations or with unpaid, undisputed judgments.
Grade 6 – Watch: Loans are currently protected, but are weak due to negative balance sheet or income statement trends. There may be a lack of effective control over collateral or the existence of documentation deficiencies. These loans have potential weaknesses that deserve management’s close attention. Other reasons supporting this classification include adverse economic or market conditions, pending litigation or any other material weakness. Existing loans that become 60 or more days past due are placed in this category pending a return to current status.
Grade 7 – Substandard: Loans having well-defined weaknesses where a payment default and or loss is possible, but not yet probable. Cash flow is inadequate to service the debt under the current payment, or terms, with prospects that the condition is permanent. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower and there is the likelihood that collateral will have to be liquidated and/or guarantor(s) called upon to repay the debt. Generally, the loan is considered collectible as to both principal and interest, primarily because of collateral coverage, however, if the deficiencies are not corrected quickly; there is a probability of loss.
Grade 8 – Doubtful: The loan has all the characteristics of a substandard credit, but available information indicates it is unlikely the loan will be repaid in its entirety. Cash flow is insufficient to service the debt. It may be difficult to project the exact amount of loss, but the probability of some loss is great. Loans are to be placed on non-accrual status when any portion is classified doubtful.
Credit card and dealer finance loans are classified as performing or nonperforming. A loan is nonperforming when payments of principal and interest are past due 90 days or more.
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5. Employee Benefit Plan |
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5. Employee Benefit Plan | The Bank has a qualified noncontributory defined benefit pension plan which covers substantially all of its full-time employees hired before April 1, 2012. The benefits are primarily based on years of service and earnings. The Company uses December 31st as the measurement date for the defined benefit pension plan. The Bank does not expect to contribute to the pension plan in 2018.
On January 1, 2018 the Company adopted ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers are required to present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Employee benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components of net periodic benefit cost separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. The Company adopted ASU No. 2017-07 on January 1, 2018 and re-classified non-servicing components of net periodic pension cost from compensation expense to other noninterest expense. ASU No. 2017-07 did not have a material impact on the Company’s Consolidated Financial Statements.
The following is a summary of net periodic pension costs for the three and nine month periods ended September 30, 2018 and 2017:
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6. Fair Value |
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Fair Value Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6. Fair Value | The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.
Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Accounting guidance for fair value excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.
The Company records fair value adjustments to certain assets and liabilities and determines fair value disclosures utilizing a definition of fair value of assets and liabilities that states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Additional considerations are involved to determine the fair value of financial assets in markets that are not active.
The Company uses a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows:
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements:
Securities
Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The carrying value of restricted Federal Reserve Bank and Federal Home Loan Bank stock approximates fair value based upon the redemption provisions of each entity and is therefore excluded from the following table.
Derivatives
The Company’s derivatives are recorded at fair value based on third party vendor supplied information using discounted cash flow analysis from observable-market based inputs, which are considered Level 2 inputs.
The following tables present the balances of financial assets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 (dollars in thousands):
1 Transferred to other investments on January 1, 2018 upon adoption of ASU 2016-01
Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.
The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements:
Loans Held for Sale
Loans held for sale are short-term loans purchased at par for resale to investors at the par value of the loan and loans originated by F&M Mortgage for sale in the secondary market. Loan participations are generally repurchased within 15 days. Loans originated for sale by F&M Mortgage are recorded at lower of cost or market. No market adjustments were required at September 30, 2018 or December 31, 2017; therefore, loans held for sale were carried at cost. Because of the short-term nature and fixed repurchase price, the book value of these loans approximates fair value at September 30, 2018 and December 31, 2017.
Impaired Loans
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Troubled debt restructurings are impaired loans. Impaired loans are measured at fair value on a nonrecurring basis. If an individually-evaluated impaired loan’s balance exceeds fair value, the amount is allocated to the allowance for loan losses. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income.
The fair value of an impaired loan and measurement of associated loss is based on one of three methods: the observable market price of the loan, the present value of projected cash flows, or the fair value of the collateral. The observable market price of a loan is categorized as a Level 1 input. The present value of projected cash flows method results in a Level 3 categorization because the calculation relies on the Company’s judgment to determine projected cash flows, which are then discounted at the current rate of the loan, or the rate prior to modification if the loan is a troubled debt restructure.
Loans measured using the fair value of collateral method are categorized in Level 3. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. Most collateral is real estate. The Company bases collateral method fair valuation upon the “as-is” value of independent appraisals or evaluations.
The value of real estate collateral is determined by an independent appraisal utilizing an income or market valuation approach. Appraisals conducted by an independent, licensed appraiser outside of the Company as observable market data is categorized as Level 3. The value of business equipment is based upon an outside appraisal (Level 3) if deemed significant, or the net book value on the applicable business’ financial statements (Level 3) if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3).
As of September 30, 2018 and December 31, 2017, the fair value measurements for impaired loans with specific allocations were primarily based upon the fair value of the collateral.
The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands):
The following table presents information about Level 3 Fair Value Measurements for September 30, 2018:
The following table presents information about Level 3 Fair Value Measurements for December 31, 2017:
Certain assets such as other real estate owned (OREO) are measured at fair value less cost to sell. Valuation of other real estate owned is determined using current appraisals from independent parties, a level two input. If current appraisals cannot be obtained prior to reporting dates, or if declines in value are identified after a recent appraisal is received, appraisal values are discounted, resulting in Level 3 estimates. If the Company markets the property with a realtor, estimated selling costs reduce the fair value, resulting in a valuation based on Level 3 inputs.
The Company markets other real estate owned both independently and with local realtors. Properties marketed by realtors are discounted by selling costs. Properties that the Company markets independently are not discounted by selling costs.
The following table summarizes the Company’s other real estate owned that were measured at fair value on a nonrecurring basis as of September 30, 2018 and December 31, 2017 (dollars in thousands).
The following table presents information about Level 3 Fair Value Measurements for September 30, 2018:
The following table presents information about Level 3 Fair Value Measurements for December 31, 2017:
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7. Disclosures About Fair Value of Financial Instruments |
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7. Disclosures About Fair Value of Financial Instruments | The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2018 and December 31, 2017. For short-term financial assets such as cash and cash equivalents and short-term liabilities, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest bearing demand, interest bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair values for September 30, 2018 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” Fair values for December 31, 2017 are estimated under the guidance in effect for that period, which did not require use of the exit price notion.
The estimated fair values, and related carrying amounts (dollars in thousands), of the Company’s financial instruments are as follows:
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8. Troubled Debt Restructuring |
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8. Troubled Debt Restructuring | In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by adjusting the loan grades of such loans, which are considered in the qualitative factors within the allowance. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance for loan loss methodology. Additionally, specific reserves may be established on restructured loans which are evaluated individually for impairment.
During the nine months ended September 30, 2018, there were seventeen loan modifications that were considered to be troubled debt restructurings. Three of these loans were modified during the three months ended September 30, 2018 and fourteen loan modifications that would be considered a troubled debt restructuring were modified during the first and second quarters of 2018. Modifications may have included rate adjustments, revisions to amortization schedules, suspension of principal payments for a temporary period, re-advancing funds to be applied as payments to bring the loan(s) current, or any combination thereof.
At September 30, 2018, there were three loans restructured in the previous 12 months in default or on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due.
During the nine months ended September 30, 2017, there was one loan modification that was considered to be troubled debt restructuring. This loan was modified during the three months ended June 30, 2017, there were no loan modifications that would be considered a troubled debt restructuring during the first or third quarters of 2017. Modifications may have included rate adjustments, revisions to amortization schedules, suspension of principal payments for a temporary period, re-advancing funds to be applied as payments to bring the loan(s) current, or any combination thereof.
At September 30, 2017, there was one loan restructured in the previous 12 months in default or on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due, or when a charge off or foreclosure occurs.
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9. Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss | The balances in accumulated other comprehensive loss are shown in the following tables for September 30, 2018 and 2017:
There were no reclassifications adjustments reported on the consolidated statements of income during the three or nine months ended September 30, 2018 or 2017.
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10. Business Segments |
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Business Segments | The Company utilizes its subsidiaries to provide multiple business segments including retail banking, mortgage banking, title insurance services, investment services and credit life and accident and health insurance products related to lending. Revenues from retail banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from title insurance services, investment services and insurance products consist of commissions on products provided.
The following tables represent revenues and expenses by segment for the three and nine months ended September 30, 2018 and September 30, 2017.
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11. Debt |
9 Months Ended |
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Sep. 30, 2018 | |
Debt | |
Debt | Short-term Debt
The Company utilizes short-term debt such as Federal funds purchased and Federal Home Loan Bank of Atlanta (FHLB) short term borrowings to support the loans held for sale participation program and provide liquidity. Federal funds purchased are unsecured overnight borrowings from other financial institutions. FHLB short term debt, which is secured by the loan portfolio, can be a daily rate variable loan that acts as a line of credit or a fixed rate advance, depending on the need of the Company. Short-term debt totaled $30 million at September 30, 2018 and has increased $4.7 million from $25.3 million at December 31, 2017.
Long-term Debt
The Company utilizes the FHLB advance program to fund loan growth and provide liquidity. The interest rates on long-term debt are fixed at the time of the advance and range from 1.16% to 2.56%; the weighted average interest rate was 1.87% and 1.86% at September 30, 2018 and December 31, 2017, respectively. The balance of these obligations at September 30, 2018 and December 31, 2017 were $46,232 and $49,554 respectively. The Company recognized a gain of $504 on prepayment of two FHLB advances totaling $10,000 during the first quarter of 2017 and there were no additional borrowings in 2017 or 2018. FHLB advances include a $5 million line of credit at FHLB that is pledged to the Commonwealth of Virginia to secure public funds.
In addition, the Company has a note payable to purchase a lot adjacent to one of the Bank branches for $85 at September 30, 2018 that is payable in one annual payment on January 1, 2019. There was $170 outstanding on this note at December 31, 2017. VS Title, LLC has a note payable for vehicle purchases with a balance of $9 at September 30, 2018 and December 31, 2017.
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12. Revenue Recognition |
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Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605.
Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below.
Service Charges on Deposit Accounts
Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), overdraft fees, monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.
Investment Services and Insurance Income
Investment services and insurance income primarily consists of commissions received on mutual funds and other investment sales. Commissions from the sale of mutual funds and other investments are recognized on trade date, which is when the Company has satisfied its performance obligation.
Title Insurance Income
VSTitle provides title insurance and real estate settlement services. Revenue is recognized at the time the real estate transaction is completed.
ATM and Check Card Fees
ATM and Check Card Fees are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees.
Other Other noninterest income consists of other recurring revenue streams such as safe deposit box rental fees, and other service charges. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Other service charges include revenue from processing wire transfers, online payment fees, cashier’s checks, mobile banking fees and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.
The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2018 and 2017. Noninterest income out-of-scope of Topic 606 in 2017 included onetime gains on prepayment of debt of $504.
Contract Balances
A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2018 and December 31, 2017, the Company did not have any significant contract balances.
Contract Acquisition Costs
In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost.
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1. Summary of Significant Accounting Policies (Policies) |
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Accounting Principles Policies Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | The accompanying unaudited consolidated financial statements including the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U. S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”).
The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
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Nature of Operations | The Company, through its subsidiary Farmers & Merchants Bank (the “Bank”), operates under a charter issued by the Commonwealth of Virginia and provides commercial banking services. As a state chartered bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions and the Federal Reserve Bank. The Bank provides services to customers primarily located in Rockingham, Shenandoah, Page and Augusta Counties in Virginia. Services are provided at thirteen branch offices and a Dealer Finance Division. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries, TEB Life Insurance, Inc., Farmers & Merchants Financial Services, Inc. (FMFS), F&M Mortgage, and VSTitle, LLC (VST). The Company purchased VSTitle, a title company headquartered in Harrisonburg, VA with offices in Harrisonburg, Fishersville and Charlottesville, VA on January 1, 2017. VSTitle purchased a small title company in January of 2018.
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Basis of Presentation | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, goodwill and intangibles, fair value, the valuation of deferred tax assets and liabilities, pension accounting and the valuation of foreclosed real estate. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for fair presentation of the results of operations in these financial statements, have been made. |
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Reclassification | Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income. |
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Earnings per Share | Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. In calculating diluted EPS net income available to common stockholders is used as the numerator and the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation.
Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared.
The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented:
The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated:
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1. Summary of Significant Accounting Policies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Principles Tables Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share |
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2. Investment Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities Tables Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost and fair value for securities |
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Amortized cost and fair value of securities |
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Schedule of gain and losses on sales of debt and equity securities |
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Schedule of securities with unrealized losses |
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3. Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held For Investment Tables Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans outstanding |
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Schedule impaired loans |
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Schedule of recorded investment |
The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of September 30, 2018 and December 31, 2017:
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4. Allowance for Loan Losses (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance For Loan Losses Tables Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary loan loss allowance transactions |
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Schedule of recorded investment in loan receivables |
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Schedule of loan portfolio by internal loan grade |
|
5. Employee Benefit Plan (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plan Tables Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of employee benefit plan |
|
6. Fair Value (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities at fair value on recurring basis |
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Schedule of assets and liabilities at fair value on non-recurring basis |
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Schedule of fair value measurements |
The following table presents information about Level 3 Fair Value Measurements for December 31, 2017:
|
7. Disclosures About Fair Value of Financial Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value Of Financial Instruments Tables Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying value and estimated fair value for financial instruments |
|
8. Troubled Debt Restructuring (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructuring Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of troubled debt restructuring |
|
9. Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive loss |
|
10. Business Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments Tables Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of business segments |
|
12. Revenue Recognition (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition Tables Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of noninterest income, segregated by revenue streams |
|
1. Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings available to common stockholders: | ||||
Net income | $ 2,500 | $ 2,598 | $ 6,165 | $ 7,274 |
Noncontrolling interest income | (15) | 48 | (10) | 51 |
Preferred stock dividends | 103 | 103 | 310 | 312 |
Net income available to common stockholders | $ 2,412 | $ 2,447 | $ 5,865 | $ 6,911 |
1. Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Summary Of Significant Accounting Policies | ||||
Basic EPS, Income | $ 2,412 | $ 2,447 | $ 5,865 | $ 6,911 |
Effect of Dilutive Securities Convertible Preferred Stock, Income | 103 | 103 | 310 | 312 |
Diluted EPS, Income | $ 2,515 | $ 2,550 | $ 6,175 | $ 7,223 |
Diluted EPS, Shares | 3,229,341 | 3,270,969 | 3,245,032 | 3,271,863 |
Effect of Dilutive Securities Convertible Preferred Stock, Shares | 358,309 | 361,638 | 359,161 | 362,993 |
Diluted EPS, Shares | 3,587,650 | 3,632,607 | 3,604,193 | 3,634,856 |
Basic EPS, Per Shares | $ 0.75 | $ 0.75 | $ 1.81 | $ 2.11 |
Effect of Dilutive Securities Convertible Preferred Stock, Per Shares | (0.05) | (0.05) | (0.10) | (0.12) |
Diluted EPS, Per Shares | $ 0.7 | $ 0.7 | $ 1.71 | $ 1.99 |
2. Investment Securities (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|||||||
Securities available for sale | ||||||||
Cost | $ 8,434 | $ 28,640 | ||||||
Unrealized Gains | 0 | 0 | ||||||
Unrealized Losses | 190 | 25 | ||||||
Market Value | 8,244 | 28,615 | [1] | |||||
U. S. Treasury and agency obligations [Member] | ||||||||
Securities held to maturity | ||||||||
Cost | 123 | 125 | ||||||
Market Value | 123 | 125 | ||||||
Securities available for sale | ||||||||
Unrealized Gains | 0 | 0 | ||||||
Unrealized Losses | 0 | 0 | ||||||
U. S. Treasuries [Member] | ||||||||
Securities available for sale | ||||||||
Cost | 19,998 | |||||||
Unrealized Gains | 0 | |||||||
Unrealized Losses | 0 | |||||||
Market Value | 19,998 | |||||||
Government Sponsored Enterprises [Member] | ||||||||
Securities available for sale | ||||||||
Cost | 7,999 | 7,999 | ||||||
Unrealized Gains | 0 | 0 | ||||||
Unrealized Losses | 179 | 19 | ||||||
Market Value | 7,820 | 7,980 | ||||||
Mortgage-backed securities [Member] | ||||||||
Securities available for sale | ||||||||
Cost | 435 | 508 | ||||||
Unrealized Gains | 0 | 0 | ||||||
Unrealized Losses | 11 | 6 | ||||||
Market Value | $ 424 | 502 | ||||||
Marketable Equities [Member] | ||||||||
Securities available for sale | ||||||||
Cost | [2] | 135 | ||||||
Unrealized Gains | [2] | 0 | ||||||
Unrealized Losses | [2] | 0 | ||||||
Market Value | [2] | $ 135 | ||||||
|
2. Investment Securities (Details 1) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
[1] | ||
---|---|---|---|---|---|
Total, Amortized Cost | $ 123 | $ 125 | |||
Securities Held to Maturity [Member] | |||||
Due in one year or less, Amortized Cost | 0 | ||||
Due after one year through five years, Amortized Cost | 123 | ||||
Due after five years, Amortized Cost | 0 | ||||
Due after ten years, Amortized Cost | 0 | ||||
Total, Amortized Cost | 123 | ||||
Due in one year or less, Fair Value | 0 | ||||
Due after one year through five years, Fair Value | 123 | ||||
Due after five years, Fair Value | 0 | ||||
Due after ten years, Fair Value | 0 | ||||
Total, Fair Value | 123 | ||||
Securities Available for Sale [Member] | |||||
Due in one year or less, Amortized Cost | 0 | ||||
Due after one year through five years, Amortized Cost | 5,999 | ||||
Due after five years, Amortized Cost | 2,435 | ||||
Due after ten years, Amortized Cost | 0 | ||||
Total, Amortized Cost | 8,434 | ||||
Due in one year or less, Fair Value | 0 | ||||
Due after one year through five years, Fair Value | 5,880 | ||||
Due after five years, Fair Value | 2,364 | ||||
Due after ten years, Fair Value | 0 | ||||
Total, Fair Value | $ 8,244 | ||||
|
2. Investment Securities (Details 2) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value Less than 12 Months | $ 8,244 | $ 4,483 |
Unrealized Losses Less than 12 Months | (190) | (25) |
Fair Value More than 12 Months | 0 | 0 |
Unrealized Losses More than 12 Months | 0 | 0 |
Fair Value Total | 8,244 | 4,483 |
Unrealized Losses Total | (190) | (25) |
Government sponsored Enterprises [Member] | ||
Fair Value Less than 12 Months | 7,820 | 3,981 |
Unrealized Losses Less than 12 Months | (179) | (19) |
Fair Value More than 12 Months | 0 | 0 |
Unrealized Losses More than 12 Months | 0 | 0 |
Fair Value Total | 7,820 | 3,981 |
Unrealized Losses Total | (179) | (19) |
Mortgage-backed securities [Member] | ||
Fair Value Less than 12 Months | 424 | 502 |
Unrealized Losses Less than 12 Months | (11) | (6) |
Fair Value More than 12 Months | 0 | 0 |
Unrealized Losses More than 12 Months | 0 | 0 |
Fair Value Total | 424 | 502 |
Unrealized Losses Total | $ (11) | $ (6) |
2. Investment Securities (Details Narrative) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Invetment Securities Details 3Abstract | |||||
Other investments | $ 13,857 | $ 12,503 | [1] | ||
|
3. Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Loans outstanding | $ 646,784 | $ 616,974 |
Construction/Land Development [Member] | ||
Loans outstanding | 68,806 | 71,620 |
Farmland [Member] | ||
Loans outstanding | 16,735 | 13,606 |
Real Estate [Member] | ||
Loans outstanding | 188,460 | 184,546 |
Multi-Family [Member] | ||
Loans outstanding | 9,823 | 10,298 |
Commercial Real Estate [Member] | ||
Loans outstanding | 155,651 | 148,906 |
Home Equity - Closed End [Member] | ||
Loans outstanding | 10,765 | 11,606 |
Home Equity [Member] | ||
Loans outstanding | 55,136 | 54,739 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loans outstanding | 35,715 | 36,912 |
Consumer [Member] | ||
Loans outstanding | 10,660 | 6,633 |
Dealer Finance [Member] | ||
Loans outstanding | 92,084 | 75,169 |
Credit Cards [Member] | ||
Loans outstanding | $ 2,949 | $ 2,939 |
3. Loans (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Impaired loans without a valuation allowance | |||||
Recorded Investment | $ 7,739 | $ 7,739 | $ 13,877 | ||
Unpaid Principal Balance | 7,739 | 7,739 | 15,141 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 7,510 | $ 8,822 | 9,925 | $ 8,227 | |
Interest Income Recognized | 179 | 34 | 341 | 111 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 13,346 | 13,346 | 6,233 | ||
Unpaid Principal Balance | 13,906 | 13,906 | 6,233 | ||
Related Allowance | 3,745 | 3,745 | 1,882 | ||
Average Recorded Investment | 14,407 | 6,893 | 12,052 | 7,470 | |
Interest Income Recognized | 49 | 86 | 324 | 258 | |
Total impaired loans | |||||
Recorded Investment | 21,085 | 21,085 | 20,110 | ||
Unpaid Principal Balance | 21,645 | 21,645 | 21,374 | ||
Related Allowance | 3,745 | 3,745 | 1,882 | ||
Average Recorded Investment | 21,917 | 15,715 | 21,977 | 15,697 | |
Interest Income Recognized | 228 | 120 | 665 | 369 | |
Construction/Land Development [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 2,972 | 2,972 | 4,352 | ||
Unpaid Principal Balance | 2,972 | 2,972 | 5,269 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 3,725 | 5,414 | 4,440 | 4,870 | |
Interest Income Recognized | 47 | 14 | 126 | 64 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 6,826 | 6,826 | 4,998 | ||
Unpaid Principal Balance | 7,386 | 7,386 | 4,998 | ||
Related Allowance | 2,182 | 2,182 | 1,661 | ||
Average Recorded Investment | 7,425 | 5,640 | 6,664 | 6,215 | |
Interest Income Recognized | (125) | 75 | (27) | 215 | |
Farmland [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 1,941 | 1,941 | 1,984 | ||
Unpaid Principal Balance | 1,941 | 1,941 | 1,984 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 1,962 | 1,921 | 1,973 | 1,900 | |
Interest Income Recognized | 80 | 0 | 142 | 0 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Real Estate [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 1,366 | 1,366 | 1,273 | ||
Unpaid Principal Balance | 1,366 | 1,366 | 1,273 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 930 | 743 | 1,078 | 746 | |
Interest Income Recognized | 17 | 8 | 28 | 25 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 426 | 426 | 1,188 | ||
Unpaid Principal Balance | 426 | 426 | 1,188 | ||
Related Allowance | 7 | 7 | 209 | ||
Average Recorded Investment | 866 | 1,194 | 1,045 | 1,196 | |
Interest Income Recognized | (17) | 10 | 10 | 41 | |
Multi-Family [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 1,444 | 1,444 | 6,229 | ||
Unpaid Principal Balance | 1,444 | 1,444 | 6,229 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 868 | 200 | 2,317 | 167 | |
Interest Income Recognized | 44 | 9 | 53 | 12 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 5,851 | 5,851 | 0 | ||
Unpaid Principal Balance | 5,851 | 5,851 | 0 | ||
Related Allowance | 1,539 | 1,539 | 0 | ||
Average Recorded Investment | 5,874 | 0 | 4,166 | 0 | |
Interest Income Recognized | 179 | 0 | 320 | 0 | |
Home Equity - Closed End [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Home Equity [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 347 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 347 | 87 | 347 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial & Industrial - Non-Real Estate [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 164 | 0 | 165 | |
Interest Income Recognized | (8) | 2 | (8) | 8 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Consumer [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 0 | 0 | 8 | ||
Unpaid Principal Balance | 0 | 0 | 8 | ||
Related Allowance | 0 | 0 | 0 | ||
Impaired loans with a valuation allowance | |||||
Recorded Investment | 9 | 9 | 0 | ||
Unpaid Principal Balance | 9 | 9 | 0 | ||
Related Allowance | 2 | 2 | 0 | ||
Credit Cards [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Impaired loans with a valuation allowance | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Dealer Finance [Member] | |||||
Impaired loans without a valuation allowance | |||||
Recorded Investment | 16 | 16 | 31 | ||
Unpaid Principal Balance | 16 | 16 | 31 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 25 | 23 | 28 | 22 | |
Interest Income Recognized | 0 | 1 | 1 | 2 | |
Impaired loans with a valuation allowance | |||||
Recorded Investment | 234 | 234 | 47 | ||
Unpaid Principal Balance | 234 | 234 | 47 | ||
Related Allowance | 15 | 15 | $ 12 | ||
Average Recorded Investment | 232 | 59 | 169 | 59 | |
Interest Income Recognized | 11 | 1 | 19 | 2 | |
Consumer and Credit Cards [Member] | |||||
Impaired loans without a valuation allowance | |||||
Average Recorded Investment | 0 | 10 | 2 | 10 | |
Interest Income Recognized | (1) | 0 | (1) | 0 | |
Impaired loans with a valuation allowance | |||||
Average Recorded Investment | 10 | 0 | 8 | 0 | |
Interest Income Recognized | $ 1 | $ 0 | $ 2 | $ 0 |
3. Loans (Details 2) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
30-59 Days Past due | $ 5,884 | $ 5,683 |
60-89 Days Past due | 2,913 | 7,904 |
Greater than 90 Days (excluding non-accrual) | 13,883 | 5,521 |
Total past due | 22,680 | 19,108 |
Current | 624,104 | 597,866 |
Total Loans Receivable | 646,784 | 616,974 |
Non-Accrual Loans | 13,343 | 6,904 |
Recorded Investment >90 days & accruing | 1,897 | 198 |
Credit Cards [Member] | ||
30-59 Days Past due | 51 | 30 |
60-89 Days Past due | 0 | 8 |
Greater than 90 Days (excluding non-accrual) | 12 | 1 |
Total past due | 63 | 39 |
Current | 2,886 | 2,900 |
Total Loans Receivable | 2,949 | 2,939 |
Non-Accrual Loans | 0 | 0 |
Recorded Investment >90 days & accruing | 12 | 1 |
Construction/Land Development [Member] | ||
30-59 Days Past due | 19 | 167 |
60-89 Days Past due | 149 | 5,459 |
Greater than 90 Days (excluding non-accrual) | 4,536 | 3,908 |
Total past due | 4,704 | 9,534 |
Current | 64,102 | 62,086 |
Total Loans Receivable | 68,806 | 71,620 |
Non-Accrual Loans | 5,097 | 3,908 |
Recorded Investment >90 days & accruing | 0 | 0 |
Farmland [Member] | ||
30-59 Days Past due | 0 | 0 |
60-89 Days Past due | 0 | 0 |
Greater than 90 Days (excluding non-accrual) | 0 | 0 |
Total past due | 0 | 0 |
Current | 16,735 | 13,606 |
Total Loans Receivable | 16,735 | 13,606 |
Non-Accrual Loans | 0 | 0 |
Recorded Investment >90 days & accruing | 0 | 0 |
Real Estate [Member] | ||
30-59 Days Past due | 1,432 | 2,858 |
60-89 Days Past due | 835 | 1,954 |
Greater than 90 Days (excluding non-accrual) | 2,234 | 560 |
Total past due | 4,501 | 5,372 |
Current | 183,959 | 179,174 |
Total Loans Receivable | 188,460 | 184,546 |
Non-Accrual Loans | 1,424 | 1,720 |
Recorded Investment >90 days & accruing | 1,484 | 143 |
Multi-Family [Member] | ||
30-59 Days Past due | 170 | 179 |
60-89 Days Past due | 0 | 0 |
Greater than 90 Days (excluding non-accrual) | 0 | 0 |
Total past due | 170 | 179 |
Current | 9,653 | 10,119 |
Total Loans Receivable | 9,823 | 10,298 |
Non-Accrual Loans | 0 | 0 |
Recorded Investment >90 days & accruing | 0 | 0 |
Commercial Real Estate [Member] | ||
30-59 Days Past due | 1,699 | 544 |
60-89 Days Past due | 1,373 | 0 |
Greater than 90 Days (excluding non-accrual) | 6,195 | 0 |
Total past due | 9,267 | 544 |
Current | 146,384 | 148,362 |
Total Loans Receivable | 155,651 | 148,906 |
Non-Accrual Loans | 6,195 | 0 |
Recorded Investment >90 days & accruing | 0 | 0 |
Home Equity - Closed End [Member] | ||
30-59 Days Past due | 0 | 0 |
60-89 Days Past due | 0 | 25 |
Greater than 90 Days (excluding non-accrual) | 14 | 0 |
Total past due | 14 | 25 |
Current | 10,751 | 11,581 |
Total Loans Receivable | 10,765 | 11,606 |
Non-Accrual Loans | 0 | 3 |
Recorded Investment >90 days & accruing | 14 | 0 |
Home Equity [Member] | ||
30-59 Days Past due | 504 | 454 |
60-89 Days Past due | 0 | 165 |
Greater than 90 Days (excluding non-accrual) | 487 | 268 |
Total past due | 991 | 887 |
Current | 54,145 | 53,852 |
Total Loans Receivable | 55,136 | 54,739 |
Non-Accrual Loans | 125 | 448 |
Recorded Investment >90 days & accruing | 387 | 0 |
Commercial & Industrial - Non-Real Estate [Member] | ||
30-59 Days Past due | 338 | 108 |
60-89 Days Past due | 0 | 36 |
Greater than 90 Days (excluding non-accrual) | 113 | 595 |
Total past due | 451 | 739 |
Current | 35,264 | 36,173 |
Total Loans Receivable | 35,715 | 36,912 |
Non-Accrual Loans | 112 | 599 |
Recorded Investment >90 days & accruing | 0 | 0 |
Consumer [Member] | ||
30-59 Days Past due | 52 | 43 |
60-89 Days Past due | 99 | 5 |
Greater than 90 Days (excluding non-accrual) | 3 | 0 |
Total past due | 154 | 48 |
Current | 10,506 | 6,585 |
Total Loans Receivable | 10,660 | 6,633 |
Non-Accrual Loans | 5 | 0 |
Recorded Investment >90 days & accruing | 0 | 0 |
Dealer Finance [Member] | ||
30-59 Days Past due | 1,619 | 1,300 |
60-89 Days Past due | 457 | 252 |
Greater than 90 Days (excluding non-accrual) | 289 | 189 |
Total past due | 2,365 | 1,741 |
Current | 89,719 | 73,428 |
Total Loans Receivable | 92,084 | 75,169 |
Non-Accrual Loans | 385 | 226 |
Recorded Investment >90 days & accruing | $ 0 | $ 54 |
3. Loans (Details Narrative) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
||||
Loans | |||||
Pledged loans | $ 187,927 | $ 218,523 | |||
Loans held for sale | 38,595 | 39,775 | [1] | ||
Foreclosed residential real estate in other real estate | $ 177 | $ 207 | |||
|
4. Allowance for Loan Losses (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Beginning Balance | $ 6,044 | $ 7,543 |
Charge-offs | 2,216 | 2,872 |
Recoveries | 965 | 1,373 |
Provision | 2,480 | 0 |
Ending Balance | 7,273 | 6,044 |
Individually Evaluated for Impairment | 3,745 | 1,882 |
Collectively Evaluated for Impairment | 3,528 | 4,162 |
Construction/Land Development [Member] | ||
Beginning Balance | 2,547 | 3,381 |
Charge-offs | 47 | 620 |
Recoveries | 122 | 0 |
Provision | 86 | (214) |
Ending Balance | 2,708 | 2,547 |
Individually Evaluated for Impairment | 2,182 | 1,661 |
Collectively Evaluated for Impairment | 526 | 886 |
Farmland [Member] | ||
Beginning Balance | 25 | 34 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (3) | (9) |
Ending Balance | 22 | 25 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 22 | 25 |
Real Estate [Member] | ||
Beginning Balance | 719 | 843 |
Charge-offs | 57 | 0 |
Recoveries | 12 | 2 |
Provision | (291) | (126) |
Ending Balance | 383 | 719 |
Individually Evaluated for Impairment | 7 | 209 |
Collectively Evaluated for Impairment | 376 | 510 |
Multi-Family [Member] | ||
Beginning Balance | 19 | 23 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (4) | (6) |
Ending Balance | 15 | 19 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 15 | 19 |
Commercial Real Estate [Member] | ||
Beginning Balance | 482 | 705 |
Charge-offs | 46 | 0 |
Recoveries | 1 | 13 |
Provision | 1,328 | (236) |
Ending Balance | 1,765 | 482 |
Individually Evaluated for Impairment | 1,539 | 0 |
Collectively Evaluated for Impairment | 226 | 482 |
Home Equity - Closed End [Member] | ||
Beginning Balance | 66 | 75 |
Charge-offs | 3 | 7 |
Recoveries | 4 | 25 |
Provision | (20) | (27) |
Ending Balance | 47 | 66 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 47 | 66 |
Home Equity [Member] | ||
Beginning Balance | 209 | 470 |
Charge-offs | 0 | 26 |
Recoveries | 3 | 53 |
Provision | (53) | (288) |
Ending Balance | 159 | 209 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 159 | 209 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Beginning Balance | 337 | 586 |
Charge-offs | 544 | 179 |
Recoveries | 88 | 72 |
Provision | 365 | (142) |
Ending Balance | 246 | 337 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 246 | 337 |
Consumer [Member] | ||
Beginning Balance | 148 | 78 |
Charge-offs | 28 | 136 |
Recoveries | 28 | 28 |
Provision | (68) | 178 |
Ending Balance | 80 | 148 |
Individually Evaluated for Impairment | 2 | 0 |
Collectively Evaluated for Impairment | 78 | 148 |
Dealer Finance [Member] | ||
Beginning Balance | 1,440 | 1,289 |
Charge-offs | 1,448 | 1,806 |
Recoveries | 673 | 1,143 |
Provision | 1,148 | 814 |
Ending Balance | 1,813 | 1,440 |
Individually Evaluated for Impairment | 15 | 12 |
Collectively Evaluated for Impairment | 1,798 | 1,428 |
Credit Cards [Member] | ||
Beginning Balance | 52 | 59 |
Charge-offs | 43 | 98 |
Recoveries | 34 | 37 |
Provision | (8) | 54 |
Ending Balance | 35 | 52 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | $ 35 | $ 52 |
4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Loan Receivable | $ 646,784 | $ 616,974 |
Loans Individually Evaluated for Impairment | 21,085 | 20,110 |
Loans Collectively Evaluated for Impairment | 625,699 | 596,864 |
Construction/Land Development [Member] | ||
Loan Receivable | 68,806 | 71,620 |
Loans Individually Evaluated for Impairment | 9,798 | 9,350 |
Loans Collectively Evaluated for Impairment | 59,008 | 62,270 |
Farmland [Member] | ||
Loan Receivable | 16,735 | 13,606 |
Loans Individually Evaluated for Impairment | 1,941 | 1,984 |
Loans Collectively Evaluated for Impairment | 14,794 | 11,622 |
Real Estate [Member] | ||
Loan Receivable | 188,460 | 184,546 |
Loans Individually Evaluated for Impairment | 1,792 | 2,461 |
Loans Collectively Evaluated for Impairment | 186,668 | 182,085 |
Multi-Family [Member] | ||
Loan Receivable | 9,823 | 10,298 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 9,823 | 10,298 |
Commercial Real Estate [Member] | ||
Loan Receivable | 155,651 | 148,906 |
Loans Individually Evaluated for Impairment | 7,295 | 6,229 |
Loans Collectively Evaluated for Impairment | 148,356 | 142,677 |
Home Equity - Closed End [Member] | ||
Loan Receivable | 10,765 | 11,606 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 10,765 | 11,606 |
Home Equity [Member] | ||
Loan Receivable | 55,136 | 54,739 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 55,136 | 54,739 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loan Receivable | 35,715 | 36,912 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 35,715 | 36,912 |
Consumer [Member] | ||
Loan Receivable | 10,660 | 6,633 |
Loans Individually Evaluated for Impairment | 9 | 8 |
Loans Collectively Evaluated for Impairment | 10,651 | 6,625 |
Dealer Finance [Member] | ||
Loan Receivable | 92,084 | 75,169 |
Loans Individually Evaluated for Impairment | 250 | 78 |
Loans Collectively Evaluated for Impairment | 91,834 | 75,091 |
Credit Cards [Member] | ||
Loan Receivable | 2,949 | 2,939 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | $ 2,949 | $ 2,939 |
4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Construction/Land Development | $ 68,806 | $ 71,620 |
Farmland | 16,735 | 13,606 |
Real Estate | 188,460 | 184,546 |
Multi-Family | 9,823 | 10,298 |
Commercial Real Estate | 155,651 | 148,906 |
Home Equity - closed end | 10,765 | 11,606 |
Home Equity - open end | 55,136 | 54,739 |
Commercial & Industrial (Non-Real Estate) | 35,715 | 36,912 |
Consumer (excluding dealer) | 10,660 | 6,633 |
Total | 551,751 | 538,866 |
Grade 1 Minimal Risk [Member] | ||
Construction/Land Development | 0 | 0 |
Farmland | 62 | 63 |
Real Estate | 0 | 0 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 0 | 0 |
Home Equity - closed end | 0 | 0 |
Home Equity - open end | 115 | 235 |
Commercial & Industrial (Non-Real Estate) | 223 | 262 |
Consumer (excluding dealer) | 34 | 34 |
Total | 434 | 594 |
Grade 2 Modest Risk [Member] | ||
Construction/Land Development | 1,625 | 690 |
Farmland | 0 | 0 |
Real Estate | 1,617 | 1,512 |
Multi-Family | 0 | 228 |
Commercial Real Estate | 2,388 | 3,525 |
Home Equity - closed end | 0 | 0 |
Home Equity - open end | 1,713 | 1,598 |
Commercial & Industrial (Non-Real Estate) | 1,971 | 1,595 |
Consumer (excluding dealer) | 178 | 490 |
Total | 9,492 | 9,638 |
Grade 3 Average Risk [Member] | ||
Construction/Land Development | 17,494 | 12,974 |
Farmland | 4,469 | 3,153 |
Real Estate | 53,949 | 53,764 |
Multi-Family | 3,007 | 4,780 |
Commercial Real Estate | 46,030 | 45,384 |
Home Equity - closed end | 3,337 | 3,535 |
Home Equity - open end | 20,073 | 17,383 |
Commercial & Industrial (Non-Real Estate) | 17,609 | 13,297 |
Consumer (excluding dealer) | 2,893 | 2,226 |
Total | 168,861 | 156,496 |
Grade 4 Acceptable Risk [Member] | ||
Construction/Land Development | 33,461 | 30,197 |
Farmland | 5,800 | 4,120 |
Real Estate | 104,600 | 101,606 |
Multi-Family | 6,645 | 5,111 |
Commercial Real Estate | 86,775 | 89,195 |
Home Equity - closed end | 5,490 | 5,410 |
Home Equity - open end | 29,050 | 30,888 |
Commercial & Industrial (Non-Real Estate) | 12,725 | 19,442 |
Consumer (excluding dealer) | 5,597 | 88 |
Total | 290,143 | 286,057 |
Grade 5 Marginally Acceptable [Member] | ||
Construction/Land Development | 7,071 | 9,165 |
Farmland | 3,970 | 3,793 |
Real Estate | 22,070 | 19,734 |
Multi-Family | 171 | 179 |
Commercial Real Estate | 11,301 | 9,012 |
Home Equity - closed end | 1,924 | 1,279 |
Home Equity - open end | 3,559 | 3,945 |
Commercial & Industrial (Non-Real Estate) | 2,664 | 1,480 |
Consumer (excluding dealer) | 1,893 | 1,065 |
Total | 54,623 | 49,652 |
Grade 6 Watch [Member] | ||
Construction/Land Development | 270 | 3,520 |
Farmland | 493 | 494 |
Real Estate | 1,154 | 4,660 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 2,962 | 634 |
Home Equity - closed end | 0 | 1,379 |
Home Equity - open end | 56 | 176 |
Commercial & Industrial (Non-Real Estate) | 349 | 207 |
Consumer (excluding dealer) | 65 | 2,254 |
Total | 5,349 | 13,324 |
Grade 7 Substandard [Member] | ||
Construction/Land Development | 8,885 | 15,074 |
Farmland | 1,941 | 1,983 |
Real Estate | 5,070 | 3,270 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 6,195 | 1,156 |
Home Equity - closed end | 14 | 3 |
Home Equity - open end | 570 | 514 |
Commercial & Industrial (Non-Real Estate) | 174 | 629 |
Consumer (excluding dealer) | 0 | 476 |
Total | 22,849 | 23,105 |
Grade 8 Doubtful [Member] | ||
Construction/Land Development | 0 | 0 |
Farmland | 0 | 0 |
Real Estate | 0 | 0 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 0 | 0 |
Home Equity - closed end | 0 | 0 |
Home Equity - open end | 0 | 0 |
Commercial & Industrial (Non-Real Estate) | 0 | 0 |
Consumer (excluding dealer) | 0 | 0 |
Total | $ 0 | $ 0 |
4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Credit cards | $ 2,949 | $ 2,939 |
Dealer Finance | 92,084 | 75,169 |
Performing [Member] | ||
Credit cards | 2,937 | 2,938 |
Dealer Finance | 91,795 | 75,116 |
Non performing [Member] | ||
Credit cards | 12 | 1 |
Dealer Finance | $ 289 | $ 53 |
5. Employee Benefit Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Employee Benefit Plan Details Abstract | ||||
Service cost | $ 192 | $ 174 | $ 576 | $ 522 |
Interest cost | 124 | 122 | 372 | 365 |
Expected return on plan assets | (231) | (213) | (693) | (638) |
Amortization of prior service cost | (4) | (4) | (12) | (11) |
Amortization of net loss | 76 | 71 | 228 | 213 |
Net periodic pension cost | $ 157 | $ 150 | $ 471 | $ 450 |
6. Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
U. S. Treasuries | $ 19,998 | ||||
U. S. Government sponsored enterprises | $ 7,820 | 7,980 | |||
Mortgage-backed obligations of federal agencies | 424 | 502 | |||
Equity securities | [1] | 135 | |||
Total securities available for sale | 8,244 | 28,615 | |||
Fair Value Inputs Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
U. S. Treasuries | 19,998 | ||||
U. S. Government sponsored enterprises | 0 | 0 | |||
Mortgage-backed obligations of federal agencies | 0 | 0 | |||
Equity securities | [1] | 0 | |||
Total securities available for sale | 0 | 19,998 | |||
Fair Value Inputs Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
U. S. Treasuries | 0 | ||||
U. S. Government sponsored enterprises | 7,820 | 7,980 | |||
Mortgage-backed obligations of federal agencies | 424 | 502 | |||
Equity securities | [1] | 135 | |||
Total securities available for sale | 8,244 | 8,617 | |||
Fair Value Inputs Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
U. S. Treasuries | 0 | ||||
U. S. Government sponsored enterprises | 0 | 0 | |||
Mortgage-backed obligations of federal agencies | 0 | 0 | |||
Equity securities | [1] | 0 | |||
Total securities available for sale | $ 0 | $ 0 | |||
|
6. Fair Value (Details 1) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Impaired loans | $ 9,601 | $ 4,351 |
Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 9,601 | 4,351 |
Construction/Land Development [Member] | ||
Impaired loans | 4,644 | 3,337 |
Construction/Land Development [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Construction/Land Development [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Construction/Land Development [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 4,644 | 3,337 |
Real Estate [Member] | ||
Impaired loans | 419 | 979 |
Real Estate [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Real Estate [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Real Estate [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 419 | 979 |
Commercial Real Estate [Member] | ||
Impaired loans | 4,312 | |
Commercial Real Estate [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | |
Commercial Real Estate [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | |
Commercial Real Estate [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 4,312 | |
Consumer [Member] | ||
Impaired loans | 7 | |
Consumer [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | |
Consumer [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | |
Consumer [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 7 | |
Dealer Finance [Member] | ||
Impaired loans | 219 | 35 |
Dealer Finance [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Dealer Finance [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Dealer Finance [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 219 | $ 35 |
6. Fair Value (Details 2) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Impaired Loans | $ 9,601 | $ 4,351 |
Fair Value Inputs Level 3 [Member] | ||
Impaired Loans | 9,601 | 4,351 |
Other Real Estate Owned | $ 2,063 | $ 1,984 |
Valuation Technique Impaired Loans | Discounted appraised value | Discounted appraised value |
Valuation Technique Other Real Estate Owned | Discounted appraised value | Discounted appraised value |
Significant Unobservable Inputs Impaired Loans | Discount for selling costs and marketability | Discount for selling costs and marketability |
Significant Unobservable Inputs Other Real Estate Owned | Discount for selling costs | Discount for selling costs |
Average Impaired Loans | 4.90% | 5.50% |
Average Other Real Estate Owned | 4.00% | 8.00% |
Fair Value Inputs Level 3 [Member] | Minimum [Member] | ||
Range Impaired Loans | 2.00% | 3.00% |
Range Other Real Estate Owned | 2.50% | 5.00% |
Fair Value Inputs Level 3 [Member] | Maximum [Member] | ||
Range Impaired Loans | 19.00% | 19.00% |
Range Other Real Estate Owned | 10.00% | 15.00% |
7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Assets: | |||||
Cash and cash equivalents, Carrying amount | $ 17,423 | $ 11,907 | [1] | ||
Cash and cash equivalents, Fair value | 17,423 | 11,907 | |||
Securities, Carrying amount | 8,367 | 28,740 | |||
Securities, Fair value | 8,367 | 28,740 | |||
Loans held for sale, Carrying Amount | 38,595 | 39,775 | |||
Loans held for sale, Fair Value | 38,595 | 39,775 | |||
Loans held for investment, net, Carrying Amount | 639,511 | 610,930 | |||
Loans held for investment, net, Fair Value | 636,558 | 646,703 | |||
Interest receivable, Carrying Amount | 2,076 | 2,007 | [1] | ||
Interest receivable, Fair Value | 2,076 | 2,007 | |||
Bank owned life insurance, Carrying Amount | 19,320 | 13,950 | [1] | ||
Bank owned life insurance, Fair Value | 19,320 | 13,950 | |||
Total Assets, Carrying Amount | 725,292 | 707,309 | |||
Total Assets, Fair Value | 722,339 | 743,082 | |||
Liabilities | |||||
Deposits, Carrying Amount | 588,985 | 569,177 | |||
Deposits, Fair Value | 591,335 | 571,117 | |||
Short-term debt, Carrying Amount | 30,000 | 25,296 | |||
Short-term debt, Fair Value | 30,000 | 25,296 | |||
Long-term debt, Carrying Amount | 46,326 | 49,733 | |||
Long-term debt, Fair Value | 46,251 | 49,869 | |||
Interest payable, Carrying Amount | 318 | 260 | |||
Interest payable, Fair Value | 318 | 260 | |||
Total Liabilities, Carrying Amount | 665,629 | 644,466 | |||
Total Liabilities, Fair Value | 667,904 | 646,542 | |||
Fair Value Inputs Level 1 [Member] | |||||
Assets: | |||||
Cash and cash equivalents, Fair value | 17,423 | 11,907 | |||
Securities, Fair value | 0 | 19,998 | |||
Loans held for sale, Fair Value | 0 | 0 | |||
Loans held for investment, net, Fair Value | 0 | 0 | |||
Interest receivable, Fair Value | 0 | 0 | |||
Bank owned life insurance, Fair Value | 0 | 0 | |||
Total Assets, Fair Value | 17,423 | 31,905 | |||
Liabilities | |||||
Deposits, Fair Value | 0 | 0 | |||
Short-term debt, Fair Value | 0 | 0 | |||
Long-term debt, Fair Value | 0 | 0 | |||
Interest payable, Fair Value | 0 | 0 | |||
Total Liabilities, Fair Value | 0 | 0 | |||
Fair Value Inputs Level 2 [Member] | |||||
Assets: | |||||
Cash and cash equivalents, Fair value | 0 | 0 | |||
Securities, Fair value | 8,367 | 8,742 | |||
Loans held for sale, Fair Value | 38,595 | 39,775 | |||
Loans held for investment, net, Fair Value | 0 | 0 | |||
Interest receivable, Fair Value | 2,076 | 2,007 | |||
Bank owned life insurance, Fair Value | 19,320 | 13,950 | |||
Total Assets, Fair Value | 68,358 | 64,474 | |||
Liabilities | |||||
Deposits, Fair Value | 431,124 | 403,907 | |||
Short-term debt, Fair Value | 30,000 | 25,296 | |||
Long-term debt, Fair Value | 0 | 0 | |||
Interest payable, Fair Value | 318 | 260 | |||
Total Liabilities, Fair Value | 461,442 | 429,463 | |||
Fair Value Inputs Level 3 [Member] | |||||
Assets: | |||||
Cash and cash equivalents, Fair value | 0 | 0 | |||
Securities, Fair value | 0 | 0 | |||
Loans held for sale, Fair Value | 0 | 0 | |||
Loans held for investment, net, Fair Value | 636,558 | 646,703 | |||
Interest receivable, Fair Value | 0 | 0 | |||
Bank owned life insurance, Fair Value | 0 | 0 | |||
Total Assets, Fair Value | 636,558 | 646,703 | |||
Liabilities | |||||
Deposits, Fair Value | 160,211 | 167,210 | |||
Short-term debt, Fair Value | 0 | 0 | |||
Long-term debt, Fair Value | 46,251 | 49,869 | |||
Interest payable, Fair Value | 0 | 0 | |||
Total Liabilities, Fair Value | $ 206,462 | $ 217,079 | |||
|
8. Troubled Debt Restructuring (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
Integer
|
Sep. 30, 2017
USD ($)
Integer
|
Sep. 30, 2018
USD ($)
Integer
|
Sep. 30, 2017
USD ($)
Integer
|
|
Number of Contracts | Integer | 17 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 2,444 | $ 1,004 | ||
Post-Modification Outstanding Recorded Investment | $ 2,444 | $ 1,004 | ||
Commercial Real Estate [Member] | ||||
Number of Contracts | Integer | 3 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 2,245 | $ 990 | ||
Post-Modification Outstanding Recorded Investment | $ 2,245 | $ 990 | ||
Real Estate [Member] | ||||
Number of Contracts | Integer | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 67 | |||
Post-Modification Outstanding Recorded Investment | $ 67 | |||
Consumer [Member] | ||||
Number of Contracts | Integer | 14 | 1 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 199 | $ 18 | $ 14 | |
Post-Modification Outstanding Recorded Investment | $ 199 | $ 18 | $ 14 |
9. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Unrealized Securities Gains (Losses) [Member] | ||
Beginning balance | $ (20) | $ 6 |
Change in unrealized securities gains (losses), net of tax | (131) | (1) |
Change in unfunded pension liability, net of tax | 0 | 0 |
Ending balance | (151) | 5 |
Adjustments Related to Pension Plan [Member] | ||
Beginning balance | (4,122) | (3,171) |
Change in unrealized securities gains (losses), net of tax | 0 | 0 |
Change in unfunded pension liability, net of tax | 0 | 0 |
Ending balance | (4,122) | (3,171) |
Accumulated Other comprehensive Income (Loss) [Member] | ||
Beginning balance | (4,142) | (3,165) |
Change in unrealized securities gains (losses), net of tax | (131) | (1) |
Change in unfunded pension liability, net of tax | 0 | 0 |
Ending balance | $ (4,273) | $ (3,166) |
10. Business Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
[1] | |||
Interest Income | $ 9,328 | $ 8,688 | $ 27,033 | $ 24,954 | ||||
Service charges on deposits | 378 | 359 | 1,102 | 1,010 | ||||
Investment services and insurance income | 239 | 169 | 659 | 530 | ||||
Mortgage banking income, net | 529 | 783 | 1,664 | 1,763 | ||||
Title insurance income | 404 | 325 | 966 | 879 | ||||
Gain on prepayment of long-term debt | 0 | (504) | ||||||
Expenses: | ||||||||
Interest Expense | 1,304 | 1,030 | 3,398 | 2,861 | ||||
Provision for loan losses | 450 | 0 | 2,480 | 0 | ||||
Income tax expense | 252 | 946 | 790 | 2,633 | ||||
Net income (loss) | 2,500 | 2,598 | 6,165 | 7,274 | ||||
Total Assets | 775,605 | 775,605 | $ 753,270 | |||||
Goodwill | 2,956 | 2,956 | $ 2,881 | |||||
F&M Bank Member | ||||||||
Interest Income | 9,295 | 8,643 | 26,915 | 24,815 | ||||
Service charges on deposits | 378 | 359 | 1,102 | 1,010 | ||||
Investment services and insurance income | 0 | 0 | 0 | 1 | ||||
Mortgage banking income, net | 0 | 0 | 0 | 0 | ||||
Title insurance income | 0 | 0 | 0 | 0 | ||||
Gain on prepayment of long-term debt | 504 | |||||||
Loss on investments | 0 | |||||||
Other operating income | 646 | 509 | 1,489 | 1,296 | ||||
Total income | 10,319 | 9,511 | 29,506 | 27,626 | ||||
Expenses: | ||||||||
Interest Expense | 1,305 | 1,030 | 3,403 | 2,866 | ||||
Provision for loan losses | 450 | 0 | 2,480 | 0 | ||||
Salary and benefit expense | 3,312 | 3,048 | 9,877 | 9,026 | ||||
Other operating expenses | 2,617 | 2,203 | 7,111 | 6,421 | ||||
Total expense | 7,684 | 6,281 | 22,871 | 18,313 | ||||
Net income (loss) before taxes | 2,635 | 3,230 | 6,635 | 9,313 | ||||
Income tax expense | 312 | 933 | 597 | 2,603 | ||||
Net income (loss) | 2,323 | 2,297 | 6,038 | 6,710 | ||||
Net (income)/loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net income attributable to F & M Bank Corp. | 2,323 | 2,297 | 6,038 | 6,710 | ||||
Total Assets | 777,401 | 750,048 | 777,401 | 750,048 | ||||
Goodwill | 2,670 | 2,670 | 2,670 | 2,670 | ||||
F&M Mortgage | ||||||||
Interest Income | 31 | 32 | 101 | 97 | ||||
Service charges on deposits | 0 | 0 | 0 | 0 | ||||
Investment services and insurance income | 0 | 0 | 0 | 0 | ||||
Mortgage banking income, net | 529 | 783 | 1,664 | 1,763 | ||||
Title insurance income | 123 | 78 | 232 | 211 | ||||
Gain on prepayment of long-term debt | 0 | |||||||
Loss on investments | (40) | |||||||
Other operating income | (49) | 0 | (1) | 0 | ||||
Total income | 634 | 893 | 1,996 | 2,031 | ||||
Expenses: | ||||||||
Interest Expense | 34 | 24 | 87 | 65 | ||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||
Salary and benefit expense | 574 | 587 | 1,404 | 1,203 | ||||
Other operating expenses | 82 | 121 | 538 | 591 | ||||
Total expense | 690 | 732 | 2,029 | 1,859 | ||||
Net income (loss) before taxes | (56) | 161 | (33) | 172 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Net income (loss) | (56) | 161 | (33) | 172 | ||||
Net (income)/loss attributable to noncontrolling interest | (15) | 48 | (10) | 51 | ||||
Net income attributable to F & M Bank Corp. | (41) | 113 | (23) | 121 | ||||
Total Assets | 7,103 | 6,309 | 7,103 | 6,309 | ||||
Goodwill | 65 | 103 | 65 | 103 | ||||
TEB Life/FMFS | ||||||||
Interest Income | 37 | 37 | 109 | 112 | ||||
Service charges on deposits | 0 | 0 | 0 | 0 | ||||
Investment services and insurance income | 242 | 169 | 673 | 529 | ||||
Mortgage banking income, net | 0 | 0 | 0 | 0 | ||||
Title insurance income | 0 | 0 | 0 | 0 | ||||
Gain on prepayment of long-term debt | 0 | |||||||
Loss on investments | (2) | |||||||
Other operating income | 0 | 0 | 0 | 0 | ||||
Total income | 279 | 206 | 782 | 639 | ||||
Expenses: | ||||||||
Interest Expense | 0 | 0 | 0 | 0 | ||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||
Salary and benefit expense | 154 | 107 | 437 | 341 | ||||
Other operating expenses | 16 | 6 | 45 | 23 | ||||
Total expense | 170 | 113 | 482 | 364 | ||||
Net income (loss) before taxes | 109 | 93 | 300 | 275 | ||||
Income tax expense | 16 | 30 | 52 | 83 | ||||
Net income (loss) | 93 | 63 | 248 | 192 | ||||
Net (income)/loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net income attributable to F & M Bank Corp. | 93 | 63 | 248 | 192 | ||||
Total Assets | 6,954 | 6,644 | 6,954 | 6,644 | ||||
Goodwill | 0 | 0 | 0 | 0 | ||||
VS Title | ||||||||
Interest Income | 0 | 0 | 0 | 0 | ||||
Service charges on deposits | 0 | 0 | 0 | 0 | ||||
Investment services and insurance income | 0 | 0 | 0 | 0 | ||||
Mortgage banking income, net | 0 | 0 | 0 | 0 | ||||
Title insurance income | 281 | 247 | 734 | 668 | ||||
Gain on prepayment of long-term debt | 0 | |||||||
Loss on investments | 0 | |||||||
Other operating income | 0 | 0 | 0 | 0 | ||||
Total income | 281 | 247 | 734 | 668 | ||||
Expenses: | ||||||||
Interest Expense | 0 | 0 | 0 | 0 | ||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||
Salary and benefit expense | 172 | 141 | 517 | 399 | ||||
Other operating expenses | 39 | 46 | 128 | 118 | ||||
Total expense | 211 | 187 | 645 | 517 | ||||
Net income (loss) before taxes | 70 | 60 | 89 | 151 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 70 | 60 | 89 | 151 | ||||
Net (income)/loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net income attributable to F & M Bank Corp. | 70 | 60 | 89 | 151 | ||||
Total Assets | 720 | 443 | 720 | 443 | ||||
Goodwill | 57 | 0 | 57 | 0 | ||||
Parent Only | ||||||||
Interest Income | 0 | 0 | 0 | 0 | ||||
Service charges on deposits | 0 | 0 | 0 | 0 | ||||
Investment services and insurance income | 0 | 0 | 0 | 0 | ||||
Mortgage banking income, net | 0 | 0 | 0 | 0 | ||||
Title insurance income | 0 | 0 | 0 | 0 | ||||
Gain on prepayment of long-term debt | 0 | |||||||
Loss on investments | 0 | |||||||
Other operating income | 0 | 0 | 0 | 0 | ||||
Total income | 0 | 0 | 0 | 0 | ||||
Expenses: | ||||||||
Interest Expense | 0 | 0 | 0 | 0 | ||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||
Salary and benefit expense | 0 | 0 | 0 | 0 | ||||
Other operating expenses | 6 | 0 | 36 | 4 | ||||
Total expense | 6 | 0 | 36 | 4 | ||||
Net income (loss) before taxes | (6) | 0 | (36) | (4) | ||||
Income tax expense | (76) | (17) | 141 | (53) | ||||
Net income (loss) | 70 | 17 | (177) | 49 | ||||
Net (income)/loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net income attributable to F & M Bank Corp. | 70 | 17 | (177) | 49 | ||||
Total Assets | 92,372 | 91,362 | 92,372 | 91,362 | ||||
Goodwill | 164 | 340 | 164 | 340 | ||||
Eliminations | ||||||||
Interest Income | (35) | (24) | (92) | (70) | ||||
Service charges on deposits | 0 | 0 | 0 | 0 | ||||
Investment services and insurance income | (3) | 0 | (14) | 0 | ||||
Mortgage banking income, net | 0 | 0 | 0 | 0 | ||||
Title insurance income | 0 | 0 | 0 | 0 | ||||
Gain on prepayment of long-term debt | 0 | |||||||
Loss on investments | 0 | |||||||
Other operating income | 0 | 0 | 0 | 0 | ||||
Total income | (38) | (24) | (106) | (70) | ||||
Expenses: | ||||||||
Interest Expense | (35) | (24) | (92) | (70) | ||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||
Salary and benefit expense | 0 | 0 | 0 | 0 | ||||
Other operating expenses | (3) | 0 | (14) | 0 | ||||
Total expense | (38) | (24) | (106) | (70) | ||||
Net income (loss) before taxes | 0 | 0 | 0 | 0 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 0 | 0 | 0 | 0 | ||||
Net (income)/loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net income attributable to F & M Bank Corp. | 0 | 0 | 0 | 0 | ||||
Total Assets | (108,945) | (91,121) | (108,945) | (91,121) | ||||
Goodwill | 0 | 0 | 0 | 0 | ||||
F&M Bank Corp Consolidated | ||||||||
Interest Income | 9,328 | 8,688 | 27,033 | 24,954 | ||||
Service charges on deposits | 378 | 359 | 1,102 | 1,010 | ||||
Investment services and insurance income | 239 | 169 | 659 | 530 | ||||
Mortgage banking income, net | 529 | 783 | 1,664 | 1,763 | ||||
Title insurance income | 404 | 325 | 966 | 879 | ||||
Gain on prepayment of long-term debt | 504 | |||||||
Loss on investments | (42) | |||||||
Other operating income | 597 | 509 | 1,488 | 1,296 | ||||
Total income | 11,475 | 10,833 | 32,912 | 30,894 | ||||
Expenses: | ||||||||
Interest Expense | 1,304 | 1,030 | 3,398 | 2,861 | ||||
Provision for loan losses | 450 | 0 | 2,480 | 0 | ||||
Salary and benefit expense | 4,212 | 3,883 | 12,235 | 10,969 | ||||
Other operating expenses | 2,757 | 2,376 | 7,844 | 7,157 | ||||
Total expense | 8,723 | 7,289 | 25,957 | 20,987 | ||||
Net income (loss) before taxes | 2,752 | 3,544 | 6,955 | 9,907 | ||||
Income tax expense | 252 | 946 | 790 | 2,633 | ||||
Net income (loss) | 2,500 | 2,598 | 6,165 | 7,274 | ||||
Net (income)/loss attributable to noncontrolling interest | (15) | 48 | (10) | 51 | ||||
Net income attributable to F & M Bank Corp. | 2,515 | 2,550 | 6,175 | 7,223 | ||||
Total Assets | 775,605 | 763,685 | 775,605 | 763,685 | ||||
Goodwill | $ 2,956 | $ 3,113 | $ 2,956 | $ 3,113 | ||||
|
11. Debt (Details Narrative) - USD ($) $ in Thousands |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||
Debt Details Narrative Abstract | ||||||
Short term debt | $ 30,000 | $ 25,296 | [1] | |||
Weighted average interest rate | 1.87% | 1.86% | ||||
Debt obligations | $ 46,232 | $ 49,554 | ||||
Gain on prepayment | 0 | $ (504) | ||||
Note payable balance | $ 85 | $ 170 | ||||
|
12. Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Total noninterest income | $ 2,147 | $ 2,145 | $ 5,879 | $ 5,940 |
Service Charges on Deposits | ||||
Total noninterest income | 378 | 359 | 1,102 | 1,010 |
Investment Services and Insurance Income | ||||
Total noninterest income | 239 | 169 | 659 | 530 |
Title Insurance Income | ||||
Total noninterest income | 404 | 247 | 966 | 668 |
ATM and check card fees | ||||
Total noninterest income | 395 | 353 | 1,130 | 1,034 |
Other | ||||
Total noninterest income | 142 | 129 | 390 | 368 |
Noninterest Income (in-scope of Topic 606) | ||||
Total noninterest income | 1,556 | 1,257 | 4,247 | 3,610 |
Noninterest Income (out-of-scope of Topic 606) | ||||
Total noninterest income | $ 591 | $ 888 | $ 1,632 | $ 2,330 |
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