Virginia
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54-1280811
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(State or
Other Jurisdiction of Incorporation or
Organization)
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(I.R.S.
Employer Identification No.)
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Large accelerated
filer ☐
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Accelerated filer
☑
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☑
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Non-accelerated
filer ☐
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Emerging growth
company ☐
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☐
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(Do not
check if a smaller reporting
company)
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Class
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Outstanding at
August 6, 2019
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Common
Stock, par value - $5
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3,173,741
shares
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Page
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PART
I
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Financial
Information
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PART
II
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Other
Information
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June
30,
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December
31,
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2019
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2018*
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(Unaudited)
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Assets
|
|
|
Cash and due from
banks
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$8,049
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$9,522
|
Money market
funds
|
794
|
1,390
|
Federal funds
sold
|
5,937
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-
|
Cash and cash
equivalents
|
14,780
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10,912
|
Securities:
|
|
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Held to maturity
– fair value of $124 and $123 in 2019 and 2018,
respectively
|
124
|
123
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Available for
sale
|
8,354
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8,289
|
Other
investments
|
15,047
|
13,432
|
Loans held for
sale
|
78,406
|
55,910
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Loans held for
investment
|
636,407
|
638,799
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Less: allowance for
loan losses
|
(6,050)
|
(5,240)
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Net loans held for
investment
|
630,357
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633,559
|
|
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Other real estate
owned, net
|
1,969
|
2,443
|
Bank premises and
equipment, net
|
18,581
|
17,766
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Interest
receivable
|
2,147
|
2,078
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Goodwill
|
2,884
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2,884
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Bank owned life
insurance
|
19,753
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19,464
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Other
assets
|
14,547
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13,393
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Total
assets
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$806,949
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$780,253
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Liabilities
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Deposits:
|
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Noninterest
bearing
|
$162,917
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$157,146
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Interest
bearing
|
445,553
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434,179
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Total
deposits
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608,470
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591,325
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Short-term
debt
|
40,000
|
40,116
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Accrued
liabilities
|
18,487
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16,683
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Long-term
debt
|
47,917
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40,218
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Total
liabilities
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714,874
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688,342
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Stockholders’
Equity
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Preferred Stock $25
par value, 400,000 shares authorized, 246,660 and 249,860 issued
and
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$5,592
|
5,672
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outstanding
for June 30, 2019 and December 31, 2018, respectively
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Common stock, $5
par value, 6,000,000 shares authorized, 3,181,465 and 3,213,132
shares issued
|
15,907
|
16,066
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and
outstanding for June 30, 2019 and December 31, 2018,
respectively.
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Additional paid in
capital – common stock
|
7,127
|
7,987
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Retained
earnings
|
66,741
|
65,596
|
Non-controlling
interest in consolidated subsidiaries
|
588
|
559
|
Accumulated other
comprehensive loss
|
(3,880)
|
(3,969)
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Total
stockholders’ equity
|
$92,075
|
91,911
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Total liabilities
and stockholders’ equity
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$806,949
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$780,253
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Three Months
Ended
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June
30,
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Interest and Dividend income
|
2019
|
2018
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Interest and fees
on loans held for investment
|
$9,107
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$8,529
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Interest and fees
on loans held for sale
|
497
|
308
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Interest from money
market funds and federal funds sold
|
40
|
5
|
Interest on debt
securities – taxable
|
138
|
120
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Total interest and
dividend income
|
9,782
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8,962
|
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Interest expense
|
|
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Total
interest on deposits
|
1,258
|
766
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Interest
from short-term debt
|
216
|
126
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Interest
from long-term debt
|
252
|
223
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Total interest
expense
|
1,726
|
1,115
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Net interest income
|
8,056
|
7,847
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Provision for Loan Losses
|
1,600
|
1,350
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Net Interest Income After Provision for Loan Losses
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6,456
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6,497
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Noninterest income
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|
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Service charges on
deposit accounts
|
417
|
358
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Investment services
and insurance income, net
|
171
|
223
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Mortgage
banking income, net
|
815
|
615
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Title
insurance income
|
406
|
306
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Income on bank
owned life insurance
|
149
|
112
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Low
income housing partnership losses
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(213)
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(192)
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ATM and check card fees
|
529
|
388
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Other
operating income
|
201
|
189
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Total noninterest
income
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2,475
|
1,999
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Noninterest expense
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Salaries
|
2,633
|
3,047
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Employee
benefits
|
1,444
|
953
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Occupancy
expense
|
291
|
286
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Equipment
expense
|
294
|
259
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FDIC insurance
assessment
|
84
|
48
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Other
real estate owned, net
|
25
|
17
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Marketing
expense
|
139
|
129
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Legal
and professional fees
|
196
|
95
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ATM
and check card fees
|
213
|
195
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Telecommunication
and data processing expense
|
426
|
417
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Directors
fees
|
102
|
114
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Bank
franchise tax
|
152
|
146
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Other
operating expenses
|
1,093
|
927
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Total noninterest
expense
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7,092
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6,633
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Income before income taxes
|
1,839
|
1,863
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Income tax
expense
|
153
|
159
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Net Income
|
1,686
|
1,704
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Net
income attributable to non-controlling interest
|
51
|
16
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Net Income attributable to F & M Bank Corp.
|
$1,635
|
$1,688
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Dividends
paid/accumulated on preferred stock
|
79
|
104
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Net income available to common stockholders
|
$1,556
|
$1,584
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Per Common Share Data
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Net income –
basic
|
$.49
|
$.49
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Net income –
diluted
|
$.47
|
$.47
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Cash dividends on
common stock
|
$.25
|
$.25
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Weighted average
common shares outstanding – basic
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3,200,119
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3,250,749
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Weighted average
common shares outstanding – diluted
|
3,447,148
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3,609,812
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Six Months
Ended
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June
30,
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Interest and Dividend income
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2019
|
2018
|
Interest and fees
on loans held for investment
|
$18,194
|
$17,010
|
Interest and fees
on loans held for sale
|
823
|
458
|
Interest from money
market funds and federal funds sold
|
53
|
25
|
Interest on debt
securities – taxable
|
243
|
212
|
Total interest and
dividend income
|
19,313
|
17,705
|
|
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Interest expense
|
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Total
interest on deposits
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2,359
|
1,505
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Interest
from short-term debt
|
419
|
136
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Interest
from long-term debt
|
446
|
453
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Total interest
expense
|
3,224
|
2,094
|
|
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|
Net interest income
|
16,089
|
15,611
|
|
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Provision for Loan Losses
|
3,050
|
2,030
|
Net Interest Income After Provision for Loan Losses
|
13,039
|
13,581
|
|
|
|
Noninterest income
|
|
|
Service charges on
deposit accounts
|
803
|
724
|
Investment services
and insurance income
|
322
|
420
|
Mortgage
banking income, net
|
1,345
|
1,135
|
Title
insurance income
|
682
|
562
|
Income on bank
owned life insurance
|
296
|
222
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Low
income housing partnership losses
|
(427)
|
(384)
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ATM
and check card fees
|
898
|
735
|
Other
operating income
|
346
|
318
|
Total noninterest
income
|
4,265
|
3,732
|
|
|
|
Noninterest expense
|
|
|
Salaries
|
5,466
|
6,147
|
Employee
benefits
|
2,634
|
1,876
|
Occupancy
expense
|
571
|
537
|
Equipment
expense
|
563
|
517
|
FDIC insurance
assessment
|
166
|
96
|
Other
real estate owned, net
|
299
|
2
|
Marketing
expense
|
287
|
231
|
Legal
and professional fees
|
350
|
199
|
ATM
and check card fees
|
406
|
356
|
Telecommunication
and data processing expense
|
788
|
751
|
Directors
fees
|
204
|
228
|
Bank
franchise tax
|
283
|
312
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Other
operating expenses
|
2,105
|
1,858
|
Total noninterest
expense
|
14,122
|
13,110
|
|
|
|
Income before income taxes
|
3,182
|
4,203
|
Income tax
expense
|
232
|
538
|
Net Income
|
2,950
|
3,665
|
Net
income attributable to non-controlling interest
|
29
|
5
|
Net Income attributable to F & M Bank Corp.
|
$2,921
|
$3,660
|
Dividends
paid/accumulated on preferred stock
|
157
|
207
|
Net income available to common stockholders
|
$2,764
|
$3,453
|
Per Common Share Data
|
|
|
Net income –
basic
|
$.86
|
$1.06
|
Net income –
diluted
|
$.84
|
$1.01
|
Cash dividends on
common stock
|
.50
|
.70
|
Weighted average
common shares outstanding – basic
|
3,200,119
|
3,253,007
|
Weighted average
common shares outstanding – diluted
|
3,474,569
|
3,612,601
|
|
Six Months Ended
June 30,
|
Three Months
Ended June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Net
Income
|
$2,921
|
$3,660
|
$1,635
|
$1,688
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
Unrealized holding
gains (losses)
|
|
|
|
|
on
available-for-sale securities
|
113
|
(168)
|
80
|
(22)
|
Tax
effect
|
24
|
35
|
17
|
4
|
Unrealized holding
gains (losses), net of tax
|
89
|
(133)
|
63
|
(18)
|
Total other
comprehensive income (loss)
|
89
|
(133)
|
63
|
(18)
|
Total comprehensive
income
|
$3,010
|
$3,527
|
$1,698
|
$1,670
|
|
|
|
|
|
Comprehensive
income attributable to noncontrolling interests
|
$29
|
$5
|
$51
|
$16
|
|
|
|
|
|
Comprehensive
income attributable to F&M Bank Corp.
|
$3,039
|
$3,532
|
$1,749
|
$1,686
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
Other
|
|
|
Preferred
|
Common
|
Additional Paid in
|
Retained
|
Noncontrolling
|
Comprehensive
|
|
|
Stock
|
Stock
|
Capital
|
Earnings
|
Interest
|
Loss
|
Total
|
|
|
|
|
|
|
|
|
Balance March 31, 2018
|
$7,529
|
$16,279
|
$10,249
|
$61,323
|
$538
|
$(4,257)
|
$91,661
|
Net
income
|
-
|
-
|
-
|
1,688
|
16
|
-
|
1,704
|
Other
comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(18)
|
(18)
|
Dividends
on preferred stock ($1.488 per share)
|
-
|
-
|
-
|
(207)
|
-
|
-
|
(207)
|
Dividends
on common stock ($.25 per share)
|
-
|
-
|
-
|
(814)
|
-
|
-
|
(814)
|
Common
stock repurchased (17,008 shares)
|
-
|
(74)
|
(477)
|
-
|
-
|
-
|
(551)
|
Common
stock issued (4,434 shares)
|
-
|
7
|
46
|
-
|
-
|
-
|
53
|
Preferred
stock repurchased (1,640 shares)
|
(41)
|
-
|
(22)
|
-
|
-
|
-
|
(63)
|
|
|
|
|
|
|
|
|
Balance, June 30, 2018
|
$7,488
|
$16,212
|
$9,796
|
$61,989
|
$554
|
$(4,275)
|
$91,764
|
|
|
|
|
|
|
|
|
Balance March 31, 2019
|
$5,592
|
$16,019
|
$7,707
|
$66,063
|
$537
|
$(3,943)
|
$91,975
|
Net
income
|
-
|
-
|
-
|
1,635
|
51
|
-
|
1,686
|
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
63
|
63
|
Dividends
on preferred stock ($1.488 per share)
|
-
|
-
|
-
|
(158)
|
-
|
-
|
(158)
|
Dividends
on common stock ($.80 per share)
|
-
|
-
|
-
|
(799)
|
-
|
-
|
(799)
|
Common
stock repurchased (22,583 shares)
|
-
|
(124)
|
(642)
|
-
|
-
|
-
|
(766)
|
Common
stock issued (7,494 shares)
|
-
|
12
|
62
|
-
|
-
|
-
|
74
|
|
|
|
|
|
|
|
|
Balance, June 30, 2019
|
$5,592
|
$15,907
|
$7,127
|
$66,741
|
$588
|
$(3,880)
|
$92,075
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
Other
|
|
|
Preferred
|
Common
|
Additional Paid in
|
Retained
|
Noncontrolling
|
Comprehensive
|
|
|
Stock
|
Stock
|
Capital
|
Earnings
|
Interest
|
Loss
|
Total
|
|
|
|
|
|
|
|
|
Balance, December 31, 2017
|
$7,529
|
$16,275
|
$10,225
|
$60,814
|
$574
|
$(4,142)
|
$91,275
|
Net
Income
|
-
|
-
|
-
|
3,660
|
5
|
-
|
3,665
|
Other
comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
(133)
|
(133)
|
Distributions
to noncontrolling interest
|
-
|
-
|
-
|
-
|
(25)
|
-
|
(25)
|
Dividends
on preferred stock ($1.28 per share)
|
-
|
-
|
-
|
(207)
|
-
|
-
|
(207)
|
Dividends
on common stock ($1.20 per share)
|
-
|
-
|
-
|
(2,278)
|
-
|
-
|
(2,278)
|
Common
stock repurchased (49,446 shares)
|
-
|
(85)
|
(539)
|
-
|
-
|
-
|
(624)
|
Common
stock issued (7,542 shares)
|
-
|
22
|
132
|
-
|
-
|
-
|
154
|
Preferred
stock repurchased (1,640 shares)
|
(41)
|
-
|
(22)
|
-
|
-
|
-
|
(63)
|
|
|
|
|
|
|
|
|
Balance, June 30, 2018
|
$7,488
|
$16,212
|
$9,796
|
$61,989
|
$554
|
$(4,275)
|
$91,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2018
|
$5,672
|
$16,066
|
$7,987
|
$65,596
|
$559
|
$(3,969)
|
$91,911
|
Net
Income
|
-
|
-
|
-
|
2,921
|
29
|
-
|
2,950
|
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
89
|
89
|
Distributions
to noncontrolling interest
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends
on preferred stock ($1.28 per share)
|
-
|
-
|
-
|
(157)
|
-
|
-
|
(157)
|
Dividends
on common stock ($1.20 per share)
|
-
|
-
|
-
|
(1,619)
|
-
|
-
|
(1,619)
|
Preferred
converted to Common (2,000 pfd shares)
|
(50)
|
11
|
39
|
-
|
-
|
-
|
-
|
Common
stock repurchased (49,446 shares)
|
-
|
(190)
|
(997)
|
-
|
-
|
-
|
(1,187)
|
Common
stock issued (7,542 shares)
|
-
|
20
|
109
|
-
|
-
|
-
|
129
|
Preferred
stock repurchased (1,200 shares)
|
(30)
|
-
|
(11)
|
-
|
-
|
-
|
(41)
|
|
|
|
|
|
|
|
|
Balance, June 30, 2019
|
$5,592
|
$15,907
|
$7,127
|
$66,741
|
$588
|
$(3,880)
|
$92,075
|
|
Six Months Ended
June 30,
|
|
|
2019
|
2018
|
Cash flows from operating activities
|
|
|
Net
income
|
$2,921
|
$3,660
|
Reconcile net
income to net cash provided by operating activities:
|
|
|
Depreciation
|
603
|
563
|
Amortization of
intangibles
|
41
|
33
|
Amortization of
securities
|
1
|
3
|
Proceeds from loans
held for sale originated
|
55,011
|
22,918
|
Loans held for sale
originated
|
(53,685)
|
(21,813)
|
Gain on sale of
loans held for sale originated
|
(1,326)
|
(1,105)
|
Provision for loan
losses
|
3,050
|
2,030
|
(Increase) decrease
in interest receivable
|
(69)
|
24
|
Increase in other
assets
|
(752)
|
(566)
|
Increase (decrease)
in accrued liabilities
|
1,372
|
(1,317)
|
Amortization of
limited partnership investments
|
427
|
384
|
Income from life
insurance investment
|
(296)
|
(222)
|
Loss (gain) on the
sale of fixed assets
|
10
|
(9)
|
Loss (gain) on sale and valuation adjustments for other real estate
owned
|
274
|
(30)
|
Net
cash provided by operating activities
|
7,582
|
4,553
|
Cash flows from investing activities
|
|
|
Purchase of
investments available for sale and other investments
|
(2,054)
|
(3,361)
|
Purchase of title
insurance company
|
-
|
(75)
|
Proceeds from
maturity of investments available for sale
|
59
|
20,893
|
Net decrease
(increase) in loans held for investment
|
92
|
(18,137)
|
Net increase in
loans held for sale participations
|
(22,496)
|
(10,046)
|
Purchase of bank
owned life insurance
|
-
|
(5,000)
|
Proceeds from the
sale of fixed assets
|
-
|
9
|
Proceeds from the
sale of other real estate owned
|
260
|
-
|
Net purchase of
property and equipment
|
(1,428)
|
(2,156)
|
Net
cash used in investing activities
|
(25,567)
|
(17,873)
|
Cash flows from financing activities
|
|
|
Net change in
deposits
|
17,145
|
(611)
|
Net change in
short-term debt
|
(116)
|
20,704
|
Dividends paid in
cash
|
(1,776)
|
(2,485)
|
Proceeds from
issuance of common stock
|
129
|
154
|
Repurchase of
preferred stock
|
(41)
|
(63)
|
Repurchase of
common stock
|
(1,187)
|
(624)
|
Issuance of
long-term debt
|
10,000
|
-
|
Repayments of
long-term debt
|
(2,301)
|
(2,298)
|
Net
cash provided by financing activities
|
21,853
|
14,777
|
Net increase in Cash and Cash Equivalents
|
3,868
|
1,457
|
Cash and cash equivalents, beginning of period
|
10,912
|
11,907
|
Cash and cash equivalents, end of period
|
$14,780
|
$13,364
|
Supplemental Cash Flow information:
|
|
|
Cash paid
for:
|
|
|
Interest
|
$3,201
|
$2,087
|
Taxes
|
-
|
1,357
|
Supplemental non-cash disclosures:
|
|
|
Transfer from loans
to other real estate owned
|
60
|
20
|
Change in
unrealized gain (loss) on securities available for
sale
|
113
|
(168)
|
Right of Use asset
and lease liability at adoption
|
1,034
|
-
|
(dollars in thousands)
|
For the Six months ended
|
For the Three months ended
|
For the Six months ended
|
For the Three months ended
|
|
June 30, 2019
|
June 30, 2019
|
June 30, 2018
|
June 30, 2018
|
Earnings
available to common stockholders:
|
|
|
|
|
Net
income
|
$2,950
|
$1,686
|
$3,665
|
$1,704
|
Non-controlling
interest income
|
29
|
51
|
5
|
16
|
Preferred
stock dividends
|
157
|
79
|
207
|
104
|
Net
income available to common stockholders
|
$2,764
|
$1,556
|
$3,453
|
$1,584
|
|
Six months ended
June 30, 2019
|
Six months ended
June 30, 2018
|
||||
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Basic
EPS
|
$2,764
|
3,200,119
|
$.86
|
$3,453
|
3,253,007
|
$1.06
|
Effect of Dilutive
Securities:
|
|
|
|
|
|
|
Convertible
Preferred Stock
|
157
|
274,450
|
(.02)
|
207
|
359,594
|
(.05)
|
Diluted
EPS
|
$2,921
|
3,474,569
|
$.84
|
$3,660
|
3,612,601
|
$1.01
|
|
Three months
ended June 30, 2019
|
Three months
ended June 30, 2018
|
||||
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Income
|
Weighted Average
Shares
|
Per Share
Amounts
|
Basic
EPS
|
$1,556
|
3,200,119
|
$.49
|
$1,584
|
3,250,749
|
$.49
|
Effect of Dilutive
Securities:
|
|
|
|
|
|
|
Convertible
Preferred Stock
|
79
|
247,029
|
(.02)
|
104
|
359,063
|
(.02)
|
Diluted
EPS
|
$1,635
|
3,447,148
|
$.47
|
$1,688
|
3,609,812
|
$.47
|
|
|
Gross
|
Gross
|
|
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|
Cost
|
Gains
|
Losses
|
Value
|
June
30, 2019
|
|
|
|
|
U. S.
Treasuries
|
$124
|
$-
|
$-
|
$124
|
December
31, 2018
|
|
|
|
|
U. S.
Treasuries
|
$123
|
$-
|
$-
|
$123
|
|
|
|
|
|
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
June 30, 2019
|
|
|
|
|
U.
S. Government sponsored enterprises
|
$7,999
|
$2
|
$11
|
$7,990
|
Mortgage-backed
obligations of federal agencies
|
361
|
3
|
-
|
364
|
Total
Securities Available for Sale
|
$8,360
|
$5
|
$11
|
$8,354
|
|
|
|
|
|
December 31, 2018
|
|
|
|
|
U.S.
Government sponsored enterprises
|
$7,999
|
$-
|
$113
|
$7,886
|
Mortgage-backed
obligations of federal agencies
|
409
|
-
|
6
|
403
|
Total
Securities Available for Sale
|
$8,408
|
$-
|
$119
|
$8,289
|
|
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
|
$124
|
$124
|
$1,995
|
$1,995
|
Due after one year
through five years
|
-
|
-
|
6,005
|
5,995
|
Due after five
years
|
-
|
-
|
360
|
364
|
Total
|
$124
|
$124
|
$8,360
|
$8,354
|
|
Less than 12 Months
|
More than 12 Months
|
Total
|
|||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
June 30, 2019
|
|
|
|
|
|
|
U.
S. Government sponsored enterprises (Three securities)
|
$-
|
$-
|
$5,998
|
$(11)
|
$5,998
|
$(11)
|
Total
|
$-
|
$-
|
$5,998
|
$(11)
|
$5,998
|
$(11)
|
|
Less than 12 Months
|
More than 12 Months
|
Total
|
|||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
December 31, 2018
|
|
|
|
|
|
|
U.
S. Government sponsored enterprises (Four securities)
|
$-
|
$-
|
$7,886
|
$(113)
|
$7,886
|
$(113)
|
Mortgage-backed
obligations of federal agencies (One security)
|
-
|
-
|
403
|
(6)
|
403
|
(6)
|
Total
|
$-
|
$-
|
$8,289
|
$(119)
|
$8,289
|
$(119)
|
(dollars in
thousands)
|
2019
|
2018
|
Construction/Land
Development
|
$66,959
|
$61,659
|
Farmland
|
25,608
|
17,030
|
Real
Estate
|
182,838
|
192,278
|
Multi-Family
|
9,247
|
9,665
|
Commercial Real
Estate
|
140,967
|
147,342
|
Home Equity –
closed end
|
9,024
|
11,039
|
Home Equity –
open end
|
50,326
|
53,197
|
Commercial &
Industrial – Non-Real Estate
|
34,356
|
36,021
|
Consumer
|
10,181
|
9,861
|
Dealer
Finance
|
103,922
|
97,523
|
Credit
Cards
|
2,979
|
3,184
|
Total
|
$636,407
|
$638,799
|
|
June 30, 2019
|
December 31,
2018
|
||||
|
|
Unpaid
|
|
|
Unpaid
|
|
|
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
|
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
Impaired
loans without a valuation allowance:
|
|
|
|
|
|
|
Construction/Land
Development
|
$1,977
|
$1,977
|
$-
|
$2,414
|
$2,414
|
$-
|
Farmland
|
1,943
|
1,943
|
-
|
1,941
|
1,941
|
-
|
Real
Estate
|
2,109
|
2,109
|
-
|
1,932
|
1,932
|
-
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,977
|
1,977
|
-
|
6,176
|
6,176
|
-
|
Home
Equity – closed end
|
720
|
720
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
& Industrial – Non-Real Estate
|
23
|
23
|
-
|
-
|
-
|
-
|
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
Credit
cards
|
-
|
-
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
33
|
33
|
-
|
32
|
32
|
-
|
|
8,782
|
8,782
|
-
|
12,495
|
12,495
|
|
Impaired
loans with a valuation allowance
|
|
|
|
|
|
|
Construction/Land
Development
|
2,580
|
4,166
|
573
|
4,311
|
4,871
|
1,627
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
-
|
Real
Estate
|
416
|
416
|
8
|
422
|
422
|
7
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
4,111
|
4,111
|
566
|
-
|
1,500
|
-
|
Home
Equity – closed end
|
-
|
-
|
-
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
-
|
-
|
-
|
-
|
-
|
Consumer
|
4
|
4
|
1
|
8
|
8
|
2
|
Credit
cards
|
-
|
-
|
-
|
-
|
-
|
-
|
Dealer
Finance
|
193
|
193
|
11
|
194
|
194
|
10
|
|
7,304
|
8,890
|
1,159
|
4,935
|
6,995
|
1,646
|
Total impaired
loans
|
$16,086
|
$17,672
|
$1,159
|
$17,430
|
$19,490
|
$1,646
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||
|
2019
|
2018
|
2019
|
2018
|
||||
|
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
|
$2,011
|
$84
|
$4,759
|
$45
|
$2,195
|
$123
|
$4,929
|
$79
|
Farmland
|
1,942
|
1
|
1,984
|
62
|
1,942
|
1
|
1,984
|
62
|
Real
Estate
|
2,013
|
(7)
|
837
|
(6)
|
2,020
|
22
|
982
|
11
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
1,901
|
189
|
797
|
4
|
4,076
|
228
|
2,608
|
9
|
Home
Equity – closed end
|
360
|
-
|
-
|
-
|
360
|
-
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
-
|
-
|
-
|
116
|
-
|
Commercial
& Industrial – Non-Real Estate
|
12
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Consumer
and credit cards
|
-
|
-
|
-
|
-
|
12
|
-
|
3
|
-
|
Dealer
Finance
|
45
|
(1)
|
33
|
-
|
33
|
0
|
32
|
1
|
|
8,284
|
266
|
8,410
|
105
|
10,638
|
374
|
10,654
|
162
|
Impaired
loans with a valuation allowance:
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$2,651
|
$(27)
|
$7,417
|
$64
|
$3,445
|
$31
|
$6,610
|
$98
|
Farmland
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Real
Estate
|
417
|
58
|
1,283
|
9
|
419
|
65
|
1,251
|
27
|
Multi-Family
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
Real Estate
|
4,152
|
(104)
|
5,407
|
73
|
2,056
|
33
|
3,605
|
141
|
Home
Equity – closed end
|
-
|
41
|
-
|
-
|
-
|
41
|
-
|
-
|
Home
Equity – open end
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Commercial
& Industrial – Non-Real Estate
|
-
|
2
|
-
|
-
|
-
|
1
|
-
|
-
|
Consumer
and credit card
|
5
|
-
|
12
|
-
|
6
|
-
|
8
|
1
|
Dealer
Finance
|
176
|
5
|
198
|
4
|
194
|
9
|
148
|
8
|
|
7,401
|
(25)
|
14,317
|
150
|
6,120
|
180
|
11,622
|
275
|
Total
Impaired Loans
|
$15,685
|
$241
|
$22,727
|
$255
|
$16,758
|
$554
|
$22,276
|
$437
|
|
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
|
June
30, 2019
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$799
|
$1,224
|
$899
|
$2,922
|
$64,037
|
$66,959
|
$2,627
|
$-
|
Farmland
|
-
|
-
|
1,942
|
1,942
|
23,666
|
25,608
|
1,942
|
-
|
Real
Estate
|
2,094
|
1,903
|
1,176
|
5,173
|
177,665
|
182,838
|
1,523
|
343
|
Multi-Family
|
-
|
-
|
-
|
-
|
9,247
|
9,247
|
-
|
-
|
Commercial Real
Estate
|
1,446
|
4,772
|
52
|
6,270
|
134,697
|
140,967
|
4,817
|
-
|
Home Equity –
closed end
|
3
|
101
|
-
|
104
|
8,920
|
9,024
|
-
|
-
|
Home Equity –
open end
|
574
|
99
|
166
|
839
|
49,487
|
50,326
|
139
|
27
|
Commercial &
Industrial – Non- Real Estate
|
197
|
373
|
-
|
570
|
33,786
|
34,356
|
12
|
-
|
Consumer
|
96
|
4
|
55
|
155
|
10,026
|
10,181
|
78
|
-
|
Dealer
Finance
|
1,324
|
415
|
162
|
1,901
|
102,021
|
103,922
|
177
|
-
|
Credit
Cards
|
167
|
-
|
-
|
167
|
2,812
|
2,979
|
-
|
3
|
Total
|
$6,700
|
$8,891
|
$4,452
|
$20,043
|
$616,364
|
$636,407
|
$11,315
|
$373
|
|
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, 2018
|
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$290
|
$-
|
$1,767
|
$2,057
|
$59,602
|
$61,659
|
$2,327
|
$-
|
Farmland
|
-
|
-
|
-
|
-
|
17,030
|
17,030
|
-
|
-
|
Real
Estate
|
3,074
|
677
|
1,729
|
5,480
|
186,798
|
192,278
|
1,477
|
726
|
Multi-Family
|
-
|
-
|
-
|
-
|
9,665
|
9,665
|
-
|
-
|
Commercial Real
Estate
|
479
|
189
|
5,073
|
5,741
|
141,601
|
147,342
|
5,074
|
-
|
Home Equity –
closed end
|
-
|
-
|
12
|
12
|
11,027
|
11,039
|
-
|
12
|
Home Equity –
open end
|
148
|
171
|
320
|
639
|
52,558
|
53,197
|
269
|
51
|
Commercial &
Industrial – Non- Real Estate
|
40
|
22
|
80
|
142
|
35,879
|
36,021
|
98
|
-
|
Consumer
|
89
|
26
|
3
|
118
|
9,743
|
9,861
|
5
|
2
|
Dealer
Finance
|
2,763
|
337
|
96
|
3,196
|
94,327
|
97,523
|
155
|
9
|
Credit
Cards
|
50
|
11
|
9
|
70
|
3,114
|
3,184
|
-
|
-
|
Total
|
$6,933
|
$1,433
|
$9,089
|
$17,455
|
$621,344
|
$638,799
|
$9,405
|
$800
|
June 30,
2019
|
Beginning
Balance
|
Charge-offs
|
Recoveries
|
Provision
|
Ending
Balance
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Allowance
for loan losses:
|
|
|
|
|
|
|
|
Construction/Land
Development
|
$2,094
|
$1,585
|
$-
|
$1,334
|
$1,843
|
$573
|
$1,270
|
Farmland
|
15
|
-
|
-
|
10
|
25
|
-
|
25
|
Real
Estate
|
292
|
25
|
1
|
8
|
276
|
8
|
268
|
Multi-Family
|
10
|
-
|
-
|
-
|
10
|
-
|
10
|
Commercial Real
Estate
|
416
|
-
|
16
|
985
|
1,417
|
566
|
851
|
Home Equity –
closed end
|
13
|
-
|
-
|
(4)
|
9
|
-
|
9
|
Home Equity –
open end
|
126
|
30
|
-
|
(43)
|
53
|
-
|
53
|
Commercial
& Industrial – Non-Real Estate
|
192
|
126
|
72
|
283
|
421
|
-
|
421
|
Consumer
|
70
|
63
|
29
|
19
|
55
|
-
|
55
|
Dealer
Finance
|
1,974
|
1,088
|
595
|
393
|
1,874
|
12
|
1,862
|
Credit
Cards
|
38
|
52
|
16
|
65
|
67
|
-
|
67
|
Total
|
$5,240
|
$2,969
|
$729
|
$3,050
|
$6,050
|
$1,159
|
$4,891
|
December 31,
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
|
$489
|
$122
|
$(86)
|
$2,094
|
$1,627
|
$467
|
Farmland
|
25
|
-
|
-
|
(10)
|
15
|
-
|
15
|
Real
Estate
|
719
|
99
|
12
|
(340)
|
292
|
7
|
285
|
Multi-Family
|
19
|
-
|
-
|
(9)
|
10
|
-
|
10
|
Commercial Real
Estate
|
482
|
1,546
|
1
|
1,479
|
416
|
-
|
416
|
Home Equity –
closed end
|
66
|
3
|
4
|
(54)
|
13
|
-
|
13
|
Home Equity –
open end
|
209
|
-
|
8
|
(91)
|
126
|
-
|
126
|
Commercial
& Industrial – Non-Real Estate
|
337
|
573
|
91
|
337
|
192
|
-
|
192
|
Consumer
|
148
|
51
|
41
|
(68)
|
70
|
2
|
68
|
Dealer
Finance
|
1,440
|
2,083
|
861
|
1,756
|
1,974
|
10
|
1,964
|
Credit
Cards
|
52
|
76
|
46
|
16
|
38
|
-
|
38
|
Total
|
$6,044
|
$4,920
|
$1,186
|
$2,930
|
$5,240
|
$1,646
|
$3,594
|
June
30, 2019
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$66,959
|
$4,557
|
$62,402
|
Farmland
|
25,608
|
1,943
|
23,665
|
Real
Estate
|
182,838
|
2,525
|
180,313
|
Multi-Family
|
9,247
|
-
|
9,247
|
Commercial Real
Estate
|
140,967
|
6,088
|
134,879
|
Home Equity –
closed end
|
9,024
|
720
|
8,304
|
Home Equity
–open end
|
50,326
|
-
|
50,326
|
Commercial &
Industrial – Non-Real Estate
|
34,356
|
23
|
34,333
|
Consumer
|
10,181
|
4
|
10,177
|
Dealer
Finance
|
103,922
|
226
|
103,696
|
Credit
Cards
|
2,979
|
-
|
2,979
|
|
$636,407
|
$16,086
|
$620,321
|
Total
|
|
|
|
December
31, 2018
|
Loan
Receivable
|
Individually
Evaluated for Impairment
|
Collectively
Evaluated for Impairment
|
Construction/Land
Development
|
$61,659
|
$6,725
|
$54,934
|
Farmland
|
17,030
|
1,941
|
15,089
|
Real
Estate
|
192,278
|
2,354
|
189,924
|
Multi-Family
|
9,665
|
-
|
9,665
|
Commercial Real
Estate
|
147,342
|
6,176
|
141,166
|
Home Equity –
closed end
|
11,039
|
-
|
11,039
|
Home Equity
–open end
|
53,197
|
-
|
53,197
|
Commercial &
Industrial – Non-Real Estate
|
36,021
|
-
|
36,021
|
Consumer
|
9,861
|
8
|
9,853
|
Dealer
Finance
|
97,523
|
226
|
97,297
|
Credit
Cards
|
3,184
|
-
|
3,184
|
|
$638,799
|
$17,430
|
$621,369
|
Total
|
|
|
|
|
Calculated
Provision Based on Current Methodology
|
Calculated
Provision Based on Prior Methodology
|
Difference
|
Construction and
Development
|
$1,334
|
$715
|
$619
|
Farmland
|
10
|
10
|
-
|
Real
Estate
|
8
|
(6)
|
14
|
Multi-Family
|
-
|
-
|
-
|
Commercial
RE
|
985
|
531
|
454
|
Home Equity -
Closed End
|
4
|
5
|
(1)
|
Home Equity - Open
End
|
43
|
110
|
(67)
|
C&I - Non -
RE
|
283
|
(16)
|
300
|
Consumer
|
19
|
(15)
|
34
|
Dealer
Finance
|
393
|
393
|
-
|
Credit
Cards
|
65
|
42
|
23
|
|
$3,050
|
$1 675
|
$1,375
|
June 30, 2019
|
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
|
$-
|
$453
|
$18,520
|
$35,043
|
$9,076
|
$128
|
$3,739
|
$-
|
$66,959
|
Farmland
|
61
|
398
|
6,661
|
13,084
|
2,962
|
500
|
1,942
|
-
|
25,608
|
Real
Estate
|
-
|
1,683
|
52,573
|
98,278
|
22,537
|
3,200
|
4,567
|
-
|
182,838
|
Multi-Family
|
-
|
-
|
2,585
|
6,503
|
159
|
-
|
-
|
-
|
9,247
|
Commercial
Real Estate
|
-
|
2,112
|
44,155
|
76,961
|
12,078
|
844
|
4,817
|
-
|
140,967
|
Home
Equity – closed end
|
-
|
152
|
2,711
|
4,074
|
1,984
|
102
|
1
|
-
|
9,024
|
Home
Equity – open end
|
9
|
2,265
|
18,306
|
25,843
|
3,368
|
199
|
336
|
-
|
50,326
|
Commercial
& Industrial (Non-Real Estate)
|
163
|
2,409
|
16,242
|
13,207
|
1,771
|
503
|
61
|
-
|
34,356
|
Consumer
(excluding dealer)
|
33
|
157
|
3,334
|
4,778
|
1,732
|
53
|
94
|
-
|
10,181
|
Total
|
$266
|
$9,629
|
$165,087
|
$277,771
|
$55,667
|
$5,529
|
$15,557
|
$-
|
$529,506
|
|
Credit Cards
|
Dealer Finance
|
Performing
|
$2,979
|
$103,745
|
Non-performing
|
-
|
177
|
Total
|
$2,979
|
$103,922
|
December 31,
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
|
$-
|
$1,148
|
$15,857
|
$29,301
|
$9,353
|
$-
|
$6,000
|
$-
|
$61,659
|
Farmland
|
62
|
-
|
4,953
|
6,376
|
3,205
|
493
|
1,941
|
-
|
17,030
|
Real
Estate
|
-
|
1,644
|
55,429
|
106,387
|
22,679
|
1,531
|
4,608
|
-
|
192,278
|
Multi-Family
|
-
|
|
2,895
|
6,604
|
166
|
-
|
-
|
-
|
9,665
|
Commercial
Real Estate
|
-
|
2,437
|
44,065
|
81,916
|
11,564
|
2,286
|
5,074
|
-
|
147,342
|
Home
Equity – closed end
|
-
|
31
|
3,245
|
5,842
|
1,909
|
-
|
12
|
-
|
11,039
|
Home
Equity – open end
|
60
|
1,554
|
19,464
|
27,347
|
4,157
|
223
|
392
|
-
|
53,197
|
Commercial
& Industrial (Non-Real Estate)
|
193
|
2,291
|
17,144
|
13,254
|
2,704
|
337
|
98
|
-
|
36,021
|
Consumer
(excluding dealer)
|
27
|
190
|
2,648
|
5,192
|
1,800
|
-
|
4
|
-
|
9,861
|
Total
|
$342
|
$9,295
|
$165,700
|
$282,219
|
$57,537
|
$4,870
|
$18,129
|
$-
|
$538,092
|
|
Credit Cards
|
Dealer Finance
|
Performing
|
$3,175
|
$97,368
|
Non-performing
|
9
|
155
|
Total
|
$3,184
|
$97,523
|
|
Six Months
Ended
|
Three Months
Ended
|
||
|
June 30,
2019
|
June 30,
2018
|
June 30,
2019
|
June 30,
2018
|
Service
cost
|
$369
|
$384
|
$184
|
$192
|
Interest
cost
|
274
|
248
|
137
|
124
|
Expected return on
plan assets
|
(403)
|
(462)
|
(201)
|
(231)
|
Amortization of
prior service cost
|
(8)
|
(8)
|
(4)
|
(4)
|
Amortization of net
loss
|
141
|
152
|
71
|
76
|
Net periodic
pension cost
|
$373
|
$314
|
$187
|
$157
|
|
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.
|
June 30,
2019
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U.S. Government
sponsored enterprises
|
$7,990
|
$-
|
$7,990
|
$-
|
Mortgage-backed
obligations of federal agencies
|
364
|
-
|
364
|
-
|
Total securities
available for sale
|
$8,354
|
$-
|
$8,354
|
$-
|
Derivatives
(Indexed CD product)
|
$67
|
$-
|
$67
|
$-
|
|
|
|
|
|
December 31,
2018
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
U. S. Government
sponsored enterprises
|
$7,886
|
-
|
$7,886
|
-
|
Mortgage-backed
obligations of federal agencies
|
403
|
-
|
403
|
-
|
Total securities
available for sale
|
$8,289
|
$-
|
$8,289
|
$-
|
Derivatives
(Indexed CD product)
|
$44
|
-
|
$44
|
-
|
June 30,
2019
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$2,007
|
$-
|
$-
|
$2,007
|
Real
Estate
|
408
|
-
|
-
|
408
|
Commercial
Real Estate
|
3,545
|
-
|
-
|
3,545
|
Consumer
|
3
|
-
|
-
|
3
|
Dealer
Finance
|
182
|
-
|
-
|
182
|
Impaired
loans
|
$6,145
|
$-
|
$-
|
$6,145
|
December 31,
2018
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Construction/Land
Development
|
$2,684
|
-
|
-
|
$2,684
|
Real
Estate
|
415
|
-
|
-
|
415
|
Consumer
|
6
|
|
|
6
|
Dealer
Finance
|
184
|
-
|
-
|
184
|
Impaired
loans
|
$3,289
|
-
|
-
|
$3,289
|
|
Fair Value
at
June
30,
2019
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Impaired
Loans
|
$6,145
|
Discounted
appraised value
|
Discount for
selling costs and marketability
|
6%-28% (Average
11.8%)
|
|
Fair Value
at
December
31,
2018
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Impaired
Loans
|
$3,289
|
Discounted
appraised value
|
Discount for
selling costs and marketability
|
2%-9% (Average 4.21
%)
|
June 30,
2019
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$1,969
|
-
|
-
|
$1,969
|
December 31,
2018
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|
|
|
|
|
Other real estate
owned
|
$2,443
|
-
|
-
|
$2,443
|
|
Fair Value
at
June
30,
2019
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Other real estate
owned
|
$1,969
|
Discounted
appraised value
|
Discount for
selling costs
|
2.5%-10% (Average
4%)
|
|
Fair Value
at
December
31,
2018
|
Valuation
Technique
|
Significant
Unobservable Inputs
|
Range
|
(dollars
in thousands)
|
|
|
|
|
Other real estate
owned
|
$2,443
|
Discounted
appraised value
|
Discount for
selling costs
|
5%-15% (Average
8%)
|
|
|
Fair Value
Measurements at June 30, 2019 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
June 30, 2019
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$14,780
|
$14,780
|
$-
|
$-
|
$14,780
|
Securities
|
8,478
|
-
|
8,478
|
-
|
8,478
|
Loans held for
sale
|
78,406
|
-
|
78,406
|
-
|
78,406
|
Loans held for
investment, net
|
630,357
|
-
|
-
|
629,467
|
629,467
|
Interest
receivable
|
2,147
|
-
|
2,147
|
-
|
2,147
|
Bank owned life
insurance
|
19,753
|
-
|
19,753
|
-
|
19,753
|
Total
|
$753,921
|
$14,780
|
$108,784
|
$629,467
|
$753,031
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$608,470
|
$-
|
$462,504
|
$146,732
|
$609,236
|
Short-term
debt
|
40,000
|
-
|
40,000
|
-
|
40,000
|
Long-term
debt
|
47,917
|
-
|
-
|
48,265
|
48,265
|
Interest
payable
|
371
|
-
|
371
|
-
|
371
|
Total
|
$696,758
|
$-
|
$502,875
|
$194,997
|
$697,872
|
|
|
Fair Value
Measurements at December 31, 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
December 31, 2018
|
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$10,912
|
$10,912
|
$-
|
$-
|
$10,912
|
Securities
|
8,412
|
-
|
8,412
|
-
|
8,412
|
Loans held for
sale
|
55,910
|
-
|
55,910
|
-
|
55,910
|
Loans held for
investment, net
|
633,559
|
-
|
-
|
613,717
|
613,717
|
Interest
receivable
|
2,078
|
-
|
2,078
|
-
|
2,078
|
Bank owned life
insurance
|
19,464
|
-
|
19,464
|
-
|
19,464
|
Total
|
$730,335
|
$10,912
|
$85,864
|
$613,717
|
$710,493
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$591,325
|
$-
|
$441,319
|
$153,848
|
$595,167
|
Short-term
debt
|
40,116
|
-
|
40,116
|
-
|
40,116
|
Long-term
debt
|
40,218
|
-
|
-
|
39,609
|
39,609
|
Interest
payable
|
348
|
-
|
348
|
-
|
348
|
Total
|
$672,007
|
$-
|
$481,783
|
$193,457
|
$675,240
|
|
Six months ended
June 30, 2019
|
||
|
|
Pre-Modification
|
Post-Modification
|
(dollars in
thousands)
|
|
Outstanding
|
Outstanding
|
Troubled Debt
Restructurings
|
Number of
Contracts
|
Recorded
Investment
|
Recorded
Investment
|
|
|
|
|
Commercial Real
Estate
|
1
|
$182
|
$182
|
Real
Estate
|
1
|
193
|
193
|
Home
Equity
|
1
|
720
|
720
|
Commercial and
Industrial
|
1
|
23
|
23
|
Consumer
|
5
|
35
|
35
|
Total
|
9
|
$1,153
|
$1,153
|
|
Six months ended
June 30, 2018
|
||
(dollars in
thousands)
|
Number
of
|
Pre-Modification
Outstanding Recorded
|
Post-Modification
Outstanding Recorded
|
Troubled Debt
Restructurings
|
Contracts
|
Investment
|
Investment
|
|
|
|
|
Commercial Real
Estate
|
1
|
$1,002
|
$1,002
|
Real
Estate
|
2
|
1,255
|
1,255
|
Consumer
|
13
|
196
|
196
|
Total
|
16
|
$2,453
|
$2,453
|
(dollars in
thousands)
|
Unrealized
Securities Gains (Losses)
|
Adjustments
Related to Pension Plan
|
Accumulated
Other Comprehensive Loss
|
Balance at December
31, 2018
|
$(94)
|
$(3,875)
|
$(3,969)
|
Change
in unrealized securities gains (losses), net of tax
|
89
|
-
|
89
|
Balance at June 30,
2019
|
$(5)
|
$(3,875)
|
$(3,880)
|
(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
|
(133)
|
-
|
(133)
|
Balance at June 30,
2018
|
$(153)
|
$(4,122)
|
$(4,275)
|
|
Six Months Ended June 30, 2019
|
||||||
|
F&M Bank
|
F&M Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$19,254
|
$68
|
$75
|
$-
|
$-
|
$(84)
|
$19,313
|
Service
charges on deposits
|
803
|
-
|
-
|
-
|
-
|
-
|
803
|
Investment
services and insurance income
|
-
|
-
|
325
|
-
|
-
|
(3)
|
322
|
Mortgage
banking income, net
|
-
|
1,345
|
-
|
-
|
-
|
-
|
1,345
|
Title
insurance income
|
-
|
-
|
-
|
682
|
-
|
-
|
682
|
Other
operating income (loss)
|
1,110
|
28
|
-
|
-
|
(24)
|
(1)
|
1,113
|
Total
income (loss)
|
21,167
|
1,441
|
400
|
682
|
(24)
|
(88)
|
23,578
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
3,233
|
75
|
-
|
-
|
-
|
(84)
|
3,224
|
Provision
for loan losses
|
3,050
|
-
|
-
|
-
|
-
|
-
|
3,050
|
Salary
and benefit expense
|
6,576
|
917
|
150
|
457
|
-
|
-
|
8,100
|
Other
operating expenses
|
5,489
|
354
|
28
|
124
|
31
|
(4)
|
6,022
|
Total
expense
|
18,348
|
1,346
|
178
|
581
|
31
|
(88)
|
20,396
|
Net
income (loss) before taxes
|
2,819
|
95
|
222
|
101
|
(55)
|
-
|
3,182
|
Income
tax expense
|
158
|
-
|
33
|
-
|
41
|
-
|
232
|
Net
income (loss)
|
$2,661
|
$95
|
$189
|
$101
|
$(96)
|
$-
|
$2,950
|
Net
income attributable to non-controlling interest
|
-
|
29
|
-
|
24
|
(24)
|
-
|
29
|
Net
Income attributable to F & M Bank Corp.
|
$2,661
|
$66
|
$189
|
$77
|
$(72)
|
$-
|
$2,921
|
Total Assets
|
$809,712
|
$11,210
|
$7,332
|
$1,615
|
$91,674
|
$(114,594)
|
$806,949
|
Goodwill
|
$2,670
|
$47
|
$-
|
$3
|
$164
|
$-
|
$2,884
|
|
Three months ended June 30, 2019
|
||||||
|
F&M Bank
|
F&M Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$9,754
|
$43
|
$41
|
$-
|
$-
|
$(56)
|
$9,782
|
Service
charges on deposits
|
417
|
-
|
-
|
-
|
-
|
-
|
417
|
Investment
services and insurance income
|
-
|
-
|
174
|
-
|
-
|
(3)
|
171
|
Mortgage
banking income, net
|
-
|
815
|
-
|
-
|
-
|
-
|
815
|
Title
insurance income
|
-
|
-
|
-
|
406
|
-
|
-
|
406
|
Other
operating income (loss)
|
665
|
28
|
-
|
-
|
(27)
|
-
|
666
|
Total
income (loss)
|
10,836
|
886
|
215
|
406
|
(27)
|
(59)
|
12,257
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
1,732
|
50
|
-
|
-
|
-
|
(56)
|
1,726
|
Provision
for loan losses
|
1,600
|
-
|
-
|
-
|
-
|
-
|
1,600
|
Salary
and benefit expense
|
3,285
|
489
|
69
|
234
|
-
|
-
|
4,077
|
Other
operating expenses
|
2,739
|
177
|
16
|
62
|
24
|
(3)
|
3,015
|
Total
expense
|
9,356
|
716
|
85
|
296
|
24
|
(59)
|
10,418
|
Net
income (loss) before taxes
|
1,480
|
170
|
130
|
110
|
(51)
|
-
|
1,839
|
Income
tax expense
|
112
|
-
|
19
|
-
|
22
|
-
|
153
|
Net
income (loss)
|
$1,368
|
$170
|
$111
|
$110
|
$(73)
|
$-
|
$1,686
|
Net
income attributable to non-controlling interest
|
-
|
51
|
-
|
27
|
(27)
|
-
|
51
|
Net
Income attributable to F & M Bank Corp.
|
$1,368
|
$119
|
$111
|
$83
|
$(46)
|
$-
|
$1,635
|
|
Six Months Ended June 30, 2018
|
||||||
|
F&M Bank
|
VBS Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$17,620
|
$71
|
$71
|
$-
|
$-
|
$(57)
|
$17,705
|
Service
charges on deposits
|
724
|
-
|
-
|
-
|
-
|
-
|
724
|
Investment
services and insurance income
|
-
|
-
|
431
|
-
|
-
|
(11)
|
420
|
Mortgage
banking income, net
|
-
|
1,135
|
-
|
-
|
-
|
-
|
1,135
|
Title
insurance income
|
-
|
109
|
-
|
453
|
-
|
-
|
562
|
Other
operating income
|
843
|
48
|
-
|
-
|
-
|
-
|
891
|
Total
income (loss)
|
19,187
|
1,363
|
502
|
453
|
-
|
(68)
|
21,437
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
2,097
|
54
|
-
|
-
|
-
|
(57)
|
2,094
|
Provision
for loan losses
|
2,030
|
-
|
-
|
-
|
-
|
-
|
2,030
|
Salary
and benefit expense
|
6,564
|
831
|
283
|
345
|
-
|
-
|
8,023
|
Other
operating expenses
|
4,496
|
456
|
28
|
89
|
29
|
(11)
|
5,087
|
Total
expense
|
15,187
|
1,341
|
311
|
434
|
29
|
(68)
|
17,234
|
Net
income (loss) before taxes
|
4,000
|
22
|
191
|
19
|
(29)
|
-
|
4,203
|
Income
tax expense
|
284
|
-
|
36
|
-
|
218
|
-
|
538
|
Net
income (loss)
|
$3,716
|
$22
|
$155
|
$19
|
$(247)
|
$-
|
$3,665
|
Net
income attributable to non-controlling interest
|
-
|
5
|
-
|
-
|
-
|
-
|
5
|
Net
Income attributable to F & M Bank Corp.
|
$3,716
|
$17
|
$155
|
$19
|
$(247)
|
$-
|
$3,660
|
Total Assets
|
$772,244
|
$8,332
|
$6,910
|
$707
|
$91,480
|
$(109,005)
|
$770,668
|
Goodwill
|
$2,670
|
$65
|
$-
|
$57
|
$164
|
$-
|
$2,956
|
|
Three Months Ended June 30, 2018
|
||||||
|
F&M Bank
|
VBS Mortgage
|
TEB Life/FMFS
|
VS Title
|
Parent Only
|
Eliminations
|
F&M Bank Corp. Consolidated
|
Revenues:
|
|
|
|
|
|
|
|
Interest
Income
|
$8,916
|
$42
|
$36
|
$-
|
$-
|
$(32)
|
$8,962
|
Service
charges on deposits
|
358
|
-
|
-
|
-
|
-
|
-
|
358
|
Investment
services and insurance income
|
-
|
-
|
228
|
-
|
-
|
(5)
|
223
|
Mortgage
banking income, net
|
-
|
615
|
-
|
-
|
-
|
-
|
615
|
Title
insurance income
|
-
|
47
|
-
|
259
|
-
|
-
|
306
|
Other
operating income
|
450
|
47
|
-
|
-
|
-
|
-
|
497
|
Total
income (loss)
|
9,724
|
751
|
264
|
259
|
-
|
(37)
|
10,961
|
Expenses:
|
|
|
|
|
|
|
|
Interest
Expense
|
1,116
|
31
|
-
|
-
|
-
|
(32)
|
1,115
|
Provision
for loan losses
|
1,350
|
-
|
-
|
-
|
-
|
-
|
1,350
|
Salary
and benefit expense
|
3,268
|
416
|
137
|
179
|
-
|
-
|
4,000
|
Other
operating expenses
|
2,317
|
246
|
18
|
42
|
15
|
(5)
|
2,633
|
Total
expense
|
8,051
|
693
|
155
|
221
|
15
|
(37)
|
9,098
|
Net
income (loss) before taxes
|
1,673
|
58
|
109
|
38
|
(15)
|
-
|
1,863
|
Income
tax expense
|
144
|
-
|
21
|
-
|
(6)
|
-
|
159
|
Net
income (loss)
|
$1,529
|
$58
|
$88
|
$38
|
$(9)
|
$-
|
$1,704
|
Net
income attributable to non-controlling interest
|
-
|
16
|
-
|
-
|
-
|
-
|
16
|
Net
Income attributable to F & M Bank Corp.
|
$1,529
|
$42
|
$88
|
$38
|
$(9)
|
$-
|
$1,688
|
|
Six Months Ended June 30,
|
Three Months Ended June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Noninterest
Income (in thousands)
|
|
|
|
|
In-scope
of Topic 606:
|
|
|
|
|
Service
Charges on Deposits
|
$803
|
$724
|
$417
|
$358
|
Investment
Services and Insurance Income
|
322
|
420
|
171
|
223
|
Title
Insurance Income
|
682
|
562
|
406
|
306
|
ATM
and check card fees
|
898
|
735
|
529
|
388
|
Other
|
281
|
250
|
153
|
135
|
Noninterest
Income (in-scope of Topic 606)
|
2,986
|
2,691
|
1,676
|
1,409
|
Noninterest
Income (out-of-scope of Topic 606)
|
1,279
|
1,041
|
799
|
590
|
Total
Noninterest Income
|
$4,265
|
$3,732
|
$2,475
|
$1,999
|
(Dollars in
thousands)
|
June 30,
2019
|
Lease
liabilities
|
$974
|
Right-of-use
assets
|
$1,005
|
Weighted
average remaining lease term
|
8.01
years
|
Weighted
average discount rate
|
3.51%
|
|
For the Three
Months Ended
June
30,
2019
|
For the Six
Months Ended
June
30,
2019
|
Lease cost (in
thousands)
|
|
|
Operating
lease cost
|
$32
|
$64
|
Total
lease cost
|
$32
|
$64
|
|
|
|
Cash
paid for amounts included in the measurement of lease
liabilities
|
$38
|
$75
|
Lease payments due (in
thousands)
|
As
of
June
30,
2019
|
Six
months ending December 31, 2019
|
$79
|
Twelve
months ending December 31, 2020
|
128
|
Twelve
months ending December 31, 2021
|
110
|
Twelve
months ending December 31, 2022
|
105
|
Twelve
months ending December 31, 2023
|
93
|
Twelve
months ending December 31, 2024
|
92
|
Thereafter
|
627
|
Total
undiscounted cash flows
|
$1,234
|
Discount
|
(260)
|
Lease
liabilities
|
$974
|
GAAP
Financial Measurements:
|
2019
|
2018
|
||
|
Six
Months
Ended
|
Three
Months
Ended
|
Six
Months
Ended
|
Three Months
Ended
|
|
June 30,
2019
|
June 30,
3018
|
||
Net
Income from Bank and Bank subsidiary operations
|
$2,917
|
$1,598
|
$3,888
|
$1,659
|
Income
(loss) from Parent Company Activities (including VST)
|
4
|
37
|
(228)
|
29
|
Net
Income
|
$2,921
|
$1,635
|
$3,660
|
$1,688
|
Non-GAAP
Financial Measurements:
|
|
|
|
|
Less
gain attributable to noncontrolling interest
|
29
|
51
|
5
|
16
|
Add
tax expense
|
232
|
153
|
538
|
159
|
Add
provision for loan and lease losses
|
3,050
|
1,600
|
2,030
|
1,350
|
Add
OREO write downs, net
|
269
|
-
|
-
|
-
|
Net Income from
core operations
|
$6,443
|
$3,337
|
$6,223
|
$3,181
|
GAAP Financial
Measurements:
(Dollars in
thousands).
|
June 30,
2019
|
June 30,
2018
|
||
|
Six
Months
|
Three
Months
|
Six
Months
|
Three
Months
|
Interest
Income – Loans
|
$19,017
|
$9,604
|
$17,468
|
$8,837
|
Interest Income -
Securities and Other Interest-Earnings Assets
|
296
|
178
|
237
|
125
|
Interest
Expense – Deposits
|
2,359
|
1,258
|
1,505
|
766
|
Interest
Expense - Other Borrowings
|
865
|
468
|
589
|
349
|
Total
Net Interest Income
|
16,089
|
8,056
|
15,611
|
7,847
|
|
|
|
|
|
Non-GAAP
Financial Measurements:
|
|
|
|
|
Add: Tax Benefit on
Tax-Exempt Interest Income – Loans
|
38
|
19
|
41
|
20
|
Total
Tax Benefit on Tax-Exempt Interest Income
|
38
|
19
|
41
|
20
|
Tax-Equivalent
Net Interest Income
|
$16,127
|
$8,075
|
$15,652
|
$7,867
|
|
June
30,
2019
|
December
31,
2018
|
|
|
|
Nonaccrual Loans
|
|
|
Real
Estate
|
$4,150
|
$3,804
|
Commercial
|
6,771
|
5,172
|
Home
Equity
|
139
|
269
|
Other
|
255
|
160
|
|
11,315
|
$9,405
|
Loans past due 90 days or more (excluding nonaccrual)
|
|
|
Real
Estate
|
343
|
726
|
Commercial
|
-
|
-
|
Home
Equity
|
27
|
63
|
Other
|
3
|
11
|
|
|
800
|
Total Nonperforming
loans
|
$11,688
|
$10,205
|
|
|
|
Restructured Loans
current and performing:
|
|
|
Real
Estate
|
3,811
|
6,574
|
Commercial
|
1,428
|
1,249
|
Home
Equity
|
720
|
-
|
Other
|
228
|
205
|
|
|
|
Nonperforming loans
as a percentage of loans held for investment
|
1.84%
|
1.60%
|
|
|
|
Net charge offs to
total loans held for investment
|
.35%
|
.58%
|
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
51.76%
|
51.34%
|
|
Six Months
Ended
|
Six Months
Ended
|
Three Months
Ended
|
Three Months
Ended
|
||||||||
|
June 30,
2019
|
June 30,
2018
|
June 30,
2019
|
June 30,
2018
|
||||||||
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
|
$646,045
|
$18,232
|
5.69%
|
$624,278
|
$17,051
|
5.51%
|
$646,880
|
$9,126
|
5.66%
|
$628,381
|
$8,549
|
5.46%
|
Loans
held for sale
|
47,421
|
823
|
3.50%
|
26,226
|
458
|
3.52%
|
57,257
|
497
|
3.48%
|
38,602
|
308
|
3.20%
|
Federal
funds sold
|
3,697
|
43
|
2.35%
|
2,676
|
18
|
1.36%
|
6,000
|
25
|
1.67%
|
886
|
2
|
.91%
|
Interest
bearing deposits
|
831
|
9
|
2.18%
|
1,087
|
7
|
1.30%
|
816
|
4
|
1.97%
|
1,069
|
3
|
1.13%
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
3
|
13,788
|
243
|
3.55%
|
13,552
|
212
|
3.15%
|
14,034
|
139
|
3.97%
|
13,522
|
120
|
3.56%
|
Partially
taxable
|
123
|
1
|
1.64%
|
124
|
-
|
-
|
124
|
-
|
-
|
124
|
-
|
-
|
Total
earning assets
|
$711,905
|
$19,351
|
5.48%
|
$667,943
|
$17,746
|
5.36%
|
$725,111
|
$9,791
|
5.42%
|
$682,584
|
$8,982
|
5.28%
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
88,981
|
101
|
.23%
|
87,363
|
58
|
.13%
|
90,194
|
54
|
.24%
|
87,465
|
30
|
.14%
|
Savings
|
196,311
|
1,082
|
1.11%
|
151,359
|
484
|
.64%
|
200,351
|
598
|
1.20%
|
152,540
|
244
|
.64%
|
Time
deposits
|
151,431
|
1,176
|
1.57%
|
164,141
|
963
|
1.18%
|
149,866
|
606
|
1.62%
|
163,024
|
490
|
1.20%
|
Short-term
debt
|
32,953
|
419
|
2.56%
|
13,945
|
136
|
1.98%
|
34,208
|
216
|
2.53%
|
24,935
|
126
|
2.03%
|
Long-term
debt
|
47,326
|
446
|
1.90%
|
48,291
|
453
|
1.89%
|
47,767
|
252
|
2.12%
|
47,731
|
223
|
1.87%
|
Total
interest bearing liabilities
|
$517,002
|
$3,224
|
1.26%
|
$465,099
|
$2,094
|
.91%
|
$522,386
|
$1,726
|
1.33%
|
$475,695
|
$1,115
|
.94%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent net
interest income
|
|
$16,127
|
|
|
$15,652
|
|
|
$8,075
|
|
|
$7,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
4.57%
|
|
|
4.73%
|
|
|
4.47%
|
|
|
4.62%
|
|
0 – 3
|
4 – 12
|
1 – 5
|
Over
5
|
Not
|
|
|
Months
|
Months
|
Years
|
Years
|
Classified
|
Total
|
|
|
|
|
|
|
|
Uses of funds
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
Commercial
|
$41,459
|
$16,686
|
$125,538
|
$26,495
|
$-
|
$210,178
|
Installment
|
2,169
|
1,885
|
83,989
|
26,060
|
-
|
114,103
|
Real estate loans
for investments
|
77,679
|
45,398
|
172,119
|
13,951
|
-
|
309,147
|
Loans held for
sale
|
78,406
|
-
|
-
|
-
|
-
|
78,406
|
Credit
cards
|
2,979
|
-
|
-
|
-
|
-
|
2,979
|
Interest bearing
bank deposits
|
794
|
-
|
-
|
-
|
-
|
794
|
Federal funds
sold
|
5,937
|
|
|
|
|
5,937
|
Investment
securities
|
-
|
2,119
|
5,995
|
364
|
-
|
8,478
|
Total
|
$209,423
|
$66,088
|
$387,641
|
$66,870
|
$-
|
$730,022
|
|
|
|
|
|
|
|
Sources of funds
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
$-
|
$68,896
|
$106,469
|
$18,786
|
$-
|
$194,151
|
Savings
deposits
|
-
|
20,998
|
62,994
|
20,998
|
-
|
104,990
|
Certificates of
deposit $100,000 and over
|
4,907
|
12,638
|
31,439
|
-
|
-
|
48,984
|
Other certificates
of deposit
|
9,595
|
24,981
|
62,852
|
-
|
-
|
97,428
|
Short-term
borrowings
|
40,000
|
-
|
-
|
-
|
-
|
40,000
|
Long-term
borrowings
|
3,608
|
8,321
|
33,863
|
2,125
|
-
|
47,917
|
Total
|
$58,110
|
$135,834
|
$297,617
|
$41,909
|
$-
|
$533,470
|
|
|
|
|
|
|
|
Discrete
Gap
|
$151,313
|
$(69,746)
|
$90,024
|
$24,962
|
$-
|
$196,553
|
|
|
|
|
|
|
|
Cumulative
Gap
|
$151,313
|
$81,567
|
$171,591
|
$196,553
|
$196,553
|
|
|
|
|
|
|
|
|
Ratio of Cumulative
Gap to Total Earning Assets
|
20.73%
|
11.17%
|
23.50%
|
26.92%
|
26.92%
|
|
Exhibit Number
|
|
Exhibit
Description
|
|
|
|
|
Certification of
Chief Executive Officer pursuant to Rule 13a-14(a) (filed
herewith)
|
|
|
|
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)
(filed herewith).
|
|
|
|
|
|
Certifications of Chief Executive Officer and Chief Financial
Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (filed
herewith)
|
|
|
|
|
101
|
|
The following
materials from F&M Bank Corp.’s Quarterly Report on Form
10Q for the period ended June 30, 2019, formatted in Extensible
Business Reporting Language (XBRL), include: (i) Consolidated
Balance Sheets, (ii) Consolidated Statements of Income, (iii)
Consolidated Statements of Comprehensive Income, (iv) Consolidated
Statements of Changes in Stockholders’ Equity, (v)
Consolidated Statements of Cash Flows and (vi) related notes
(filed herewith).
|
|
F & M BANK CORP.
|
|
|
|
|
|
|
Date: August 8,
2019
|
By:
|
/s/ Mark C.
Hanna
|
|
|
|
Mark C.
Hanna
|
|
|
|
President and Chief
Executive Officer
|
|
|
F & M BANK
CORP.
|
|
|
|
|
|
|
Date: August 8,
2019
|
By:
|
/s/ Carrie A.
Comer
|
|
|
|
Carrie A.
Comer
|
|
|
|
Executive Vice
President and Chief Financial Officer
|
|
Exhibit Number
|
|
Exhibit
Description
|
|
|
|
|
Certification of
Chief Executive Officer pursuant to Rule 13a-14(a) (filed
herewith)
|
|
|
|
|
|
Certification of
Chief Financial Officer pursuant to Rule 13a-14(a) (filed
herewith).
|
|
|
|
|
|
Certifications of
Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (filed herewith)
|
|
|
|
|
101
|
|
The following
materials from F&M Bank Corp.’s Quarterly Report on Form
10Q for the period ended June 30, 2019, formatted in Extensible
Business Reporting Language (XBRL), include: (i) Consolidated
Balance Sheets, (ii) Consolidated Statements of Income, (iii)
Consolidated Statements of Comprehensive Income, (iv) Consolidated
Statements of Changes in Stockholders’ Equity, (v)
Consolidated Statements of Cash Flows and (vi) related notes
(filed herewith).
|
|
F & M BANK CORP.
|
|
|
|
|
|
|
Date: August 8,
2019
|
By:
|
/s/ Mark C.
Hanna
|
|
|
|
Mark C.
Hanna
|
|
|
|
President &
Chief Executive Officer
|
|
|
F & M BANK CORP.
|
|
|
|
|
|
|
Date: August 8,
2019
|
By:
|
/s/ Carrie A.
Comer
|
|
|
|
Carrie A.
Comer
|
|
|
|
Executive Vice
President & Chief Financial Officer
|
|
|
F & M BANK CORP.
|
|
|
|
|
|
|
Date: August 8,
2019
|
By:
|
/s/ Mark C.
Hanna
|
|
|
|
Mark C.
Hanna
|
|
|
|
President &
Chief Executive Officer
|
|
|
F & M BANK CORP.
|
|
|
|
|
|
|
Date: August 8,
2019
|
By:
|
/s/ Carrie A.
Comer
|
|
|
|
Carrie A.
Comer
|
|
|
|
Executive Vice
President & Chief Financial Officer
|
|
Document and Entity Information - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Aug. 06, 2019 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types | |||
Entity Registrant Name | F&M BANK CORP | ||
Entity Central Index Key | 0000740806 | ||
Document Type | 10-Q | ||
Document Period End Date | Jun. 30, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 3,173,741 | ||
Document Fiscal Period Focus | Q2 | ||
Document Fiscal Year Focus | 2019 | ||
[custom:GainOnSaleOfLoansHeldForSale] | $ 1,326 | $ 1,105 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets | ||
Held to maturity - fair value | $ 124 | $ 123 |
STOCKHOLDERS EQUITY: | ||
Preferred Stock, par value | $ 25 | $ 25 |
Preferred Stock shares authorized | 400,000 | 400,000 |
Preferred Stock shares issued | 246,660 | 249,860 |
Preferred Stock shares outstanding | 246,660 | 249,860 |
Common stock, par value | $ 5 | $ 5 |
Common stock shares authorized | 6,000,000 | 6,000,000 |
Common stock shares issued | 3,181,465 | 3,213,132 |
Common stock shares outstanding | 3,181,465 | 3,213,132 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Other Comprehensive Income [Abstract] | ||||
Net income | $ 1,635 | $ 1,688 | $ 2,921 | $ 3,660 |
Other comprehensive (loss): | ||||
Unrealized holding (losses) on available-for-sale securities | 80 | (22) | 113 | (168) |
Tax effect | (17) | 4 | (24) | 35 |
Unrealized holding gains (losses), net of tax | 63 | (18) | 89 | (133) |
Total other comprehensive income (loss) | 63 | (18) | 89 | (133) |
Total comprehensive income | 1,698 | 1,670 | 3,010 | 3,527 |
Comprehensive income attributable to noncontrolling interests | 51 | 16 | 29 | 5 |
Comprehensive income attributable to F&M Bank Corp. | $ 1,749 | $ 1,686 | $ 3,039 | $ 3,532 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands |
Preferred Stock |
Common Stock |
Additional Paid in Capital |
Retained Earnings |
Noncontrolling Interest |
Accumulated Other Comprehensive Loss |
Total |
---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2017 | $ 7,529 | $ 16,275 | $ 10,225 | $ 60,814 | $ 574 | $ (4,142) | $ 91,275 |
Net income | 3,660 | 5 | 3,665 | ||||
Other comprehensive loss | (133) | (133) | |||||
Distributions to noncontrolling interest | (25) | (25) | |||||
Dividends on preferred stock | (207) | (207) | |||||
Dividends on common stock | (2,278) | (2,278) | |||||
Common stock repurchased | (85) | (539) | (624) | ||||
Common stock issued | 22 | 132 | 154 | ||||
Preferred stock repurchased | (41) | (22) | (63) | ||||
Ending balance at Jun. 30, 2018 | 7,488 | 16,212 | 9,796 | 61,989 | 554 | (4,275) | 91,764 |
Beginning balance at Mar. 31, 2018 | 7,529 | 16,279 | 10,249 | 61,323 | 538 | (4,257) | 91,661 |
Net income | 1,688 | 16 | 1,704 | ||||
Other comprehensive loss | (18) | (18) | |||||
Dividends on preferred stock | (207) | (207) | |||||
Dividends on common stock | (814) | (814) | |||||
Common stock repurchased | (74) | (477) | (551) | ||||
Common stock issued | 7 | 46 | 53 | ||||
Preferred stock repurchased | (41) | (22) | (63) | ||||
Ending balance at Jun. 30, 2018 | 7,488 | 16,212 | 9,796 | 61,989 | 554 | (4,275) | 91,764 |
Beginning balance at Dec. 31, 2018 | 5,672 | 16,066 | 7,987 | 65,596 | 559 | (3,969) | 91,911 |
Net income | 2,921 | 29 | 2,950 | ||||
Other comprehensive loss | 89 | 89 | |||||
Distributions to noncontrolling interest | 0 | ||||||
Dividends on preferred stock | (157) | (157) | |||||
Dividends on common stock | (1,619) | (1,619) | |||||
Preferred converted to common | (50) | 11 | 39 | 0 | |||
Common stock repurchased | (190) | (997) | (1,187) | ||||
Common stock issued | 20 | 109 | 129 | ||||
Preferred stock repurchased | (30) | (11) | (41) | ||||
Ending balance at Jun. 30, 2019 | 5,592 | 15,907 | 7,127 | 66,741 | 588 | (3,880) | 92,075 |
Beginning balance at Mar. 31, 2019 | 5,592 | 16,019 | 7,707 | 66,063 | 537 | (3,943) | 91,975 |
Net income | 1,635 | 51 | 1,686 | ||||
Other comprehensive loss | 63 | 63 | |||||
Dividends on preferred stock | (158) | (158) | |||||
Dividends on common stock | (799) | (799) | |||||
Common stock repurchased | (124) | (642) | (766) | ||||
Common stock issued | 12 | 62 | 74 | ||||
Ending balance at Jun. 30, 2019 | $ 5,592 | $ 15,907 | $ 7,127 | $ 66,741 | $ 588 | $ (3,880) | $ 92,075 |
1. Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Principles of Consolidation
The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). 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 six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 (the “2018 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).
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2019 and December 31, 2018 are as follows:
The amortized cost and fair value of securities available for sale are as follows:
The amortized cost and fair value of securities at June 30, 2019, 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 sales of available for sale securities in the first or second quarters of 2019 or 2018. The securities held are U.S. Agency and Government Sponsored Entities and Agency MBS which carry an implicit government guarantee. There were no securities with other than temporary impairment.
A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of June 30, 2019 and December 31, 2018 were as follows:
Other investments consist of investments in twenty low-income housing and historic equity partnerships (carrying basis of $9,000), stock in the Federal Home Loan Bank (carrying basis $4,443 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 June 30, 2019. At June 30, 2019, the Company was committed to invest an additional $3,988 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.
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3. Loans |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans |
Loans held for investment outstanding at June 30, 2019 and December 31, 2018 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 $189,972 and $186,673 as of June 30, 2019 and December 31, 2018, respectively. The Company maintains a blanket lien on its entire residential real estate portfolio and certain commercial and home equity loans.
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.
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 June 30, 2019 and December 31, 2018 were $78,406 and $55,910, respectively.
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 June 30, 2019 and December 31, 2018:
At June 30, 2019 and December 31, 2018, other real estate owned included $345 and $375 of foreclosed residential real estate. The Company has $521 of consumer mortgages for which foreclosure is in process at June 30, 2019 and $103 at December 31, 2018.
For the six months ended June 30, 2019 and June 30, 3018, nonaccrual loans would have earned approximately $160 and $252, respectively, in interest income had they been accruing loans.
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4. Allowance for Loan Losses |
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Allowance For Loan Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | A summary of changes in the allowance for loan losses (dollars in thousands) for June 30, 2019 and December 31, 2018 is as follows:
The following table presents the recorded investment in loans (dollars in thousands) based on impairment method as of June 30, 2019 and December 31, 2018:
During the second quarter of 2019, management changed the historical net charge off lookback period from five years to two years for all segments given recent asset quality trends and charge off experience. Management believes the two year lookback period is more indicative of the risk remaining in the loan portfolio.
This change and the effect on provision expense for the six months ended June 30, 2019 and the allowance for loan losses at June 30, 2019 was as follows:
The following table shows the Company’s loan portfolio broken down by internal loan grade (dollars in thousands) as of June 30, 2019 and December 31, 2018:
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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Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2019.
The following is a summary of net periodic pension costs for the three and six month periods ended June 30, 2019 and 2018:
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6. Fair Value |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2019 and December 31, 2018 (dollars in thousands):
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 June 30, 2019 or December 31, 2018; 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 approximate fair value at June 30, 2019 and December 31, 2018.
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 June 30, 2019 and December 31, 2018, 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 June 30, 2019:
The following table presents information about Level 3 Fair Value Measurements for December 31, 2018:
Other Real Estate Owned
Certain assets such as other real estate owned (OREO) are measured at fair value less cost to sell. Valuation of other real estate owned is determined using current appraisals from independent parties, a level two input. If current appraisals cannot be obtained prior to reporting dates, or if declines in value are identified after a recent appraisal is received, appraisal values are discounted, resulting in Level 3 estimates. If the Company markets the property with a realtor, estimated selling costs reduce the fair value, resulting in a valuation based on Level 3 inputs.
The Company markets other real estate owned 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 June 30, 2019 and December 31, 2018 (dollars in thousands).
The following table presents information about Level 3 Fair Value Measurements for June 30, 2019:
The following table presents information about Level 3 Fair Value Measurements for December 31, 2018:
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7. Disclosures About Fair Value of Financial Instruments |
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Financial Instruments, Owned, at Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2019 and December 31, 2018. 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 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.”
The estimated fair values, and related carrying amounts (dollars in thousands), of the Company’s financial instruments are as follows:
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8. Troubled Debt Restructuring |
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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 six months ended June 30, 2019, there were nine loan modifications that were considered to be troubled debt restructurings. Seven of these loans were modified during the three months ended June 30, 2019 and two loan modifications that would be considered a troubled debt restructuring were modified during the first quarter of 2019. 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 June 30, 2019, there were no loans restructured in the previous 12 months in default or on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due.
During the six months ended June 30, 2018, there were sixteen loan modifications that were considered to be troubled debt restructurings. Six of these loans were modified during the three months ended June 30, 2018 and ten loan modifications that would be considered a troubled debt restructuring were modified during the first quarter of 2018.
At June 30, 2018, there were no loans restructured in the previous 12 months in default or on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due.
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9. Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | The balances in accumulated other comprehensive loss are shown in the following tables for June 30, 2019 and 2018:
There were no reclassifications adjustments reported on the consolidated statements of income during the three or six months ended June 30, 2019 or 2018.
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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 six months ended June 30, 2019 and June 30, 2018.
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11. Debt |
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Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
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 $40 million at June 30, 2019 and has decreased slightly from $40.1 million at December 31, 2018. Deposit growth has allowed the Company to fund increases in Loans Held for Sale without increasing FHLB short term debt.
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 2.08% and 1.96 at June 30, 2019 and December 31, 2018, respectively. The balance of these obligations at June 30, 2019 and December 31, 2018 were $47,911 and $40,125 respectively. The Company borrowed an additional $10,000 during second quarter of 2019, there were no additional borrowings in 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 had a note payable to purchase a lot adjacent to one of the Bank branches for $85 at June 30, 2018 that was paid on January 1, 2019. There was $85 outstanding on this note at December 31, 2018. VS Title, LLC has a note payable for vehicle purchases with a balance of $6 at June 30, 2019.
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12. Revenue Recognition |
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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.
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 six months ended June 30, 2019 and 2018.
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 June 30, 2019 and December 31, 2018, 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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13. Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. As stated in the Company’s 2018 Form 10-K, the implementation of the new standard resulted in recognition of a right-of-use asset and lease liability of $1.03 million at the date of adoption, which is related to the Company’s lease of premises used in operations. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets.
Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of each lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.
The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.
The following tables present information about the Company’s leases:
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows:
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1. Summary of Significant Accounting Policies (Policies) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), (net of non-controlling interest) and VSTitle, LLC and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). 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 six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 (the “2018 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).
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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) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share |
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2. Investment Securities (Tables) |
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Fair Value Measurements Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans outstanding |
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Schedule impaired loans |
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Schedule of recorded investment |
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4. Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance For Loan Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary loan loss allowance transactions |
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Schedule of recorded investment in loan receivables |
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Summary of changes and the effect on provision expense |
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Schedule of loan portfolio by internal loan grade |
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5. Employee Benefit Plan (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of employee benefit plan |
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6. Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2019:
The following table presents information about Level 3 Fair Value Measurements for December 31, 2018:
The following table summarizes the Company’s other real estate owned that were measured at fair value on a nonrecurring basis as of June 30, 2019 and December 31, 2018 (dollars in thousands).
The following table presents information about Level 3 Fair Value Measurements for June 30, 2019:
The following table presents information about Level 3 Fair Value Measurements for December 31, 2018:
|
7. Disclosures About Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying value and estimated fair value for financial instruments |
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8. Troubled Debt Restructuring (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructuring Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of troubled debt restructuring |
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9. Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive loss |
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10. Business Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of business segments |
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12. Revenue Recognition (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of noninterest income, segregated by revenue streams |
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13. Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
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Lease cost |
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Maturity of operating leases |
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1. Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Earnings available to common stockholders: | ||||
Net income | $ 1,686 | $ 1,704 | $ 2,950 | $ 3,665 |
Noncontrolling interest income | 51 | 16 | 29 | 5 |
Preferred stock dividends | 79 | 104 | 157 | 207 |
Net income available to common stockholders | $ 1,556 | $ 1,584 | $ 2,764 | $ 3,453 |
1. Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Accounting Policies [Abstract] | ||||
Basic EPS, income | $ 1,556 | $ 1,584 | $ 2,764 | $ 3,453 |
Effect of dilutive securities convertible preferred stock, income | 79 | 104 | 157 | 207 |
Diluted EPS, income | $ 1,635 | $ 1,688 | $ 2,921 | $ 3,660 |
Diluted EPS, shares | 3,200,119 | 3,250,749 | 3,200,119 | 3,253,007 |
Effect of dilutive securities convertible preferred stock, shares | 247,029 | 359,063 | 274,450 | 359,594 |
Diluted EPS, shares | 3,447,148 | 3,609,812 | 3,474,569 | 3,612,601 |
Basic EPS, per shares | $ 0.49 | $ 0.49 | $ 0.86 | $ 1.06 |
Effect of dilutive securities convertible preferred stock, per shares | (.02) | (.02) | (.02) | (.05) |
Diluted EPS, per shares | $ 0.47 | $ 0.47 | $ 0.84 | $ 1.01 |
2. Investment Securities (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Securities available for sale | ||
Cost | $ 8,360 | $ 8,408 |
Unrealized gains | 5 | 0 |
Unrealized losses | 11 | 119 |
Market value | 8,354 | 8,289 |
U. S. Treasury and agency obligations [Member] | ||
Securities held to maturity | ||
Cost | 124 | 123 |
Market value | 124 | 123 |
Government Sponsored Enterprises [Member] | ||
Securities available for sale | ||
Cost | 7,999 | 7,999 |
Unrealized gains | 2 | 0 |
Unrealized losses | 11 | 113 |
Market value | 7,990 | 7,886 |
Mortgage-backed securities [Member] | ||
Securities available for sale | ||
Cost | 361 | 409 |
Unrealized gains | 3 | 0 |
Unrealized losses | 0 | 6 |
Market value | $ 364 | $ 403 |
2. Investment Securities (Details 1) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Total, amortized cost | $ 124 | $ 123 |
Securities Held to Maturity [Member] | ||
Due in one year or less, amortized cost | 124 | |
Due after one year through five years, amortized cost | 0 | |
Due after five years, amortized cost | 0 | |
Total, amortized cost | 124 | |
Due in one year or less, fair value | 124 | |
Due after one year through five years, fair value | 0 | |
Due after five years, fair value | 0 | |
Total, fair value | 124 | |
Securities Available for Sale [Member] | ||
Due in one year or less, amortized cost | 1,995 | |
Due after one year through five years, amortized cost | 6,005 | |
Due after five years, amortized cost | 360 | |
Total, amortized cost | 8,360 | |
Due in one year or less, fair value | 1,995 | |
Due after one year through five years, fair value | 5,995 | |
Due after five years, fair value | 364 | |
Total, fair value | $ 8,354 |
2. Investment Securities (Details 2) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair value less than 12 months | $ 0 | $ 0 |
Unrealized losses less than 12 months | 0 | 0 |
Fair value more than 12 months | 5,998 | 8,289 |
Unrealized losses more than 12 months | (11) | (119) |
Fair value total | 5,998 | 8,289 |
Unrealized losses total | (11) | (119) |
Government sponsored Enterprises [Member] | ||
Fair value less than 12 months | 0 | 0 |
Unrealized losses less than 12 months | 0 | 0 |
Fair value more than 12 months | 5,998 | 7,886 |
Unrealized losses more than 12 months | (11) | (113) |
Fair value total | 5,998 | 7,886 |
Unrealized losses total | $ (11) | (113) |
Mortgage-backed securities [Member] | ||
Fair value less than 12 months | 0 | |
Unrealized losses less than 12 months | 0 | |
Fair value more than 12 months | 403 | |
Unrealized losses more than 12 months | (6) | |
Fair value total | 403 | |
Unrealized losses total | $ (6) |
2. Investment Securities (Details Narrative) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value Measurements Tables | ||
Other investments | $ 15,047 | $ 13,432 |
3. Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Loans outstanding | $ 636,407 | $ 638,799 |
Construction/Land Development [Member] | ||
Loans outstanding | 66,959 | 61,659 |
Farmland [Member] | ||
Loans outstanding | 25,608 | 17,030 |
Real Estate [Member] | ||
Loans outstanding | 182,838 | 192,278 |
Multi-Family [Member] | ||
Loans outstanding | 9,247 | 9,665 |
Commercial Real Estate [Member] | ||
Loans outstanding | 140,967 | 147,342 |
Home Equity - Closed End [Member] | ||
Loans outstanding | 9,024 | 11,039 |
Home Equity [Member] | ||
Loans outstanding | 50,326 | 53,197 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loans outstanding | 34,356 | 36,021 |
Consumer [Member] | ||
Loans outstanding | 10,181 | 9,861 |
Dealer Finance [Member] | ||
Loans outstanding | 103,922 | 97,523 |
Credit Cards [Member] | ||
Loans outstanding | $ 2,979 | $ 3,184 |
3. Loans (Details Narrative) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Loans and Leases Receivable Disclosure [Abstract] | ||
Pledged loans | $ 189,972 | $ 186,673 |
Loans held for sale | 78,406 | 55,910 |
Foreclosed residential real estate in other real estate | $ 345 | $ 375 |
4. Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Credit cards | $ 2,979 | $ 3,184 |
Dealer finance | 103,922 | 97,523 |
Performing [Member] | ||
Credit cards | 2,979 | 3,175 |
Dealer finance | 103,745 | 97,368 |
Non performing [Member] | ||
Credit cards | 0 | 9 |
Dealer finance | $ 177 | $ 155 |
5. Employee Benefit Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||
Service cost | $ 184 | $ 192 | $ 369 | $ 384 |
Interest cost | 137 | 124 | 274 | 248 |
Expected return on plan assets | (201) | (231) | (403) | (462) |
Amortization of prior service cost | (4) | (4) | (8) | (8) |
Amortization of net loss | 71 | 76 | 141 | 152 |
Net periodic pension cost | $ 187 | $ 157 | $ 373 | $ 314 |
6. Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
U. S. Government sponsored enterprises | $ 7,990 | $ 7,886 |
Mortgage-backed obligations of federal agencies | 364 | 403 |
Total securities available for sale | 8,354 | 8,289 |
Derivatives (Indexed CD product) | 67 | 44 |
Fair Value Inputs Level 1 [Member] | ||
U. S. Government sponsored enterprises | 0 | 0 |
Mortgage-backed obligations of federal agencies | 0 | 0 |
Total securities available for sale | 0 | 0 |
Derivatives (Indexed CD product) | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
U. S. Government sponsored enterprises | 7,990 | 7,886 |
Mortgage-backed obligations of federal agencies | 364 | 403 |
Total securities available for sale | 8,354 | 8,289 |
Derivatives (Indexed CD product) | 67 | 44 |
Fair Value Inputs Level 3 [Member] | ||
U. S. Government sponsored enterprises | 0 | 0 |
Mortgage-backed obligations of federal agencies | 0 | 0 |
Total securities available for sale | 0 | 0 |
Derivatives (Indexed CD product) | $ 0 | $ 0 |
9. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Unrealized Securities Gains (Losses) [Member] | ||
Beginning balance | $ (94) | $ (20) |
Change in unrealized securities gains (losses), net of tax | 89 | (133) |
Ending balance | (5) | (153) |
Adjustments Related to Pension Plan [Member] | ||
Beginning balance | (3,875) | (4,122) |
Change in unrealized securities gains (losses), net of tax | 0 | 0 |
Ending balance | (3,875) | (4,122) |
Accumulated Other comprehensive Income (Loss) [Member] | ||
Beginning balance | (3,969) | (4,142) |
Change in unrealized securities gains (losses), net of tax | 89 | (133) |
Ending balance | $ (3,880) | $ (4,275) |
11. Debt (Details Narrative) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Disclosure [Abstract] | ||
Short term debt | $ 40,000 | $ 40,116 |
Weighted average interest rate | 2.08% | 1.96% |
Debt obligations | $ 47,911 | $ 40,125 |
Note payable balance | $ 6 |
12. Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Total noninterest income | $ 2,475 | $ 1,999 | $ 4,265 | $ 3,732 |
Service Charges on Deposits | ||||
Total noninterest income | 417 | 358 | 803 | 724 |
Investment Services and Insurance Income | ||||
Total noninterest income | 171 | 223 | 322 | 420 |
Title Insurance Income | ||||
Total noninterest income | 406 | 306 | 682 | 562 |
ATM and check card fees | ||||
Total noninterest income | 529 | 388 | 898 | 735 |
Other | ||||
Total noninterest income | 153 | 135 | 281 | 250 |
Noninterest Income (in-scope of Topic 606) | ||||
Total noninterest income | 1,676 | 1,409 | 2,986 | 2,691 |
Noninterest Income (out-of-scope of Topic 606) | ||||
Total noninterest income | $ 799 | $ 590 | $ 1,279 | $ 1,041 |
13. Leases (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Lease liabilities | $ 974 |
Right-of-use assets | $ 1,005 |
Weighted average remaining lease term | 8 years 4 days |
Weighted average discount rate | 3.51% |
13. Leases (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||
Operating lease cost | $ 32 | $ 64 |
Total lease cost | 32 | 64 |
Cash paid for amounts included in the measurement of lease liabilities | $ 38 | $ 75 |
13. Leases (Details 2) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Six months ending December 31, 2019 | $ 79 |
Twelve months ending December 31, 2020 | 128 |
Twelve months ending December 31, 2021 | 110 |
Twelve months ending December 31, 2022 | 105 |
Twelve months ending December 31, 2023 | 93 |
Twelve months ending December 31, 2024 | 92 |
Thereafter | 627 |
Total undiscounted cash flows | 1,234 |
Discount | (260) |
Lease liabilities | $ 974 |
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