Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 08, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | F&M BANK CORP | |
Entity Central Index Key | 0000740806 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 3,200,327 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 9,272 | $ 9,522 |
Money market funds | 1,015 | 1,390 |
Federal funds sold | 5,073 | 0 |
Cash and cash equivalents | 15,360 | 10,912 |
Securities: | ||
Held to maturity - fair value of $123 in 2019 and 2018 | 123 | 123 |
Available for sale | 8,305 | 8,289 |
Other investments | 13,206 | 13,432 |
Loans held for sale | 44,528 | 55,910 |
Loans held for investment | 644,213 | 638,799 |
Less: allowance for loan losses | (4,932) | (5,240) |
Net loans held for investment | 639,281 | 633,559 |
Other real estate owned, net | 2,174 | 2,443 |
Bank premises and equipment, net | 18,111 | 17,766 |
Interest receivable | 2,203 | 2,078 |
Goodwill | 2,884 | 2,884 |
Bank owned life insurance | 19,607 | 19,464 |
Other assets | 14,255 | 13,393 |
Total assets | 780,037 | 780,253 |
Deposits: | ||
Noninterest bearing | 162,922 | 157,146 |
Interest bearing | 437,914 | 434,179 |
Total deposits | 600,836 | 591,325 |
Short-term debt | 30,000 | 40,116 |
Accrued liabilities | 18,201 | 16,683 |
Long-term debt | 39,025 | 40,218 |
Total liabilities | 688,062 | 688,342 |
Stockholders' Equity | ||
Preferred Stock $25 par value, 400,000 shares authorized, 246,660 and 249,860 issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 5,592 | 5,672 |
Common stock, $5 par value, 6,000,000 shares authorized, 3,203,705 and 3,213,132 shares issued and outstanding for March 31, 2019 and December 31, 2018, respectively | 16,019 | 16,066 |
Additional paid in capital - common stock | 7,707 | 7,987 |
Retained earnings | 66,063 | 65,596 |
Noncontrolling interest in consolidated subsidiaries | 537 | 559 |
Accumulated other comprehensive loss | (3,943) | (3,969) |
Total stockholders' equity | 91,975 | 91,911 |
Total liabilities and stockholders' equity | $ 780,037 | $ 780,253 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Held to maturity - fair value | $ 123 | $ 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 | 3,203,705 | 3,213,132 |
Common stock shares outstanding | 3,203,705 | 3,213,132 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and Dividend income | ||
Interest and fees on loans held for investment | $ 9,087 | $ 8,481 |
Interest and fees on loans held for sale | 326 | 150 |
Interest from money market funds and federal funds sold | 14 | 20 |
Interest on debt securities - taxable | 105 | 92 |
Total interest and dividend income | 9,532 | 8,743 |
Interest expense | ||
Total interest on deposits | 1,101 | 739 |
Interest from short-term debt | 203 | 10 |
Interest from long-term debt | 194 | 230 |
Total interest expense | 1,498 | 979 |
Net interest income | 8,034 | 7,764 |
Provision for Loan Losses | 1,450 | 680 |
Net Interest Income After Provision for Loan Losses | 6,584 | 7,084 |
Noninterest income | ||
Service charges on deposit accounts | 386 | 366 |
Investment services and insurance income | 151 | 197 |
Mortgage banking income, net | 530 | 520 |
Title insurance income | 276 | 256 |
Income on bank owned life insurance | 147 | 110 |
Low income housing partnership losses | (214) | (192) |
ATM and check card fees | 369 | 347 |
Other operating income | 144 | 129 |
Total noninterest income | 1,789 | 1,733 |
Noninterest expense | ||
Salaries | 2,833 | 3,100 |
Employee benefits | 1,190 | 923 |
Occupancy expense | 279 | 251 |
Equipment expense | 269 | 258 |
FDIC insurance assessment | 82 | 48 |
Other real estate owned, net | 274 | (15) |
Marketing expense | 148 | 102 |
Legal and professional fees | 155 | 104 |
ATM and check card fees | 193 | 161 |
Telecommunication and data processing expense | 362 | 334 |
Directors fees | 102 | 114 |
Bank franchise tax | 131 | 166 |
Other operating expenses | 1,012 | 931 |
Total noninterest expense | 7,030 | 6,477 |
Income before income taxes | 1,343 | 2,340 |
Income tax expense | 79 | 379 |
Net Income | 1,264 | 1,961 |
Net income attributable to noncontrolling interest | 22 | 11 |
Net income attributable to F & M Bank Corp. | 1,286 | 1,972 |
Dividends paid/accumulated on preferred stock | 79 | 103 |
Net income available to common stockholders | $ 1,207 | $ 1,869 |
Per Common Share Data | ||
Net income - basic | $ 0.38 | $ 0.57 |
Net income - diluted | 0.37 | 0.55 |
Cash dividends on common stock | $ 0.25 | $ 0.45 |
Weighted average shares outstanding - basic | 3,210,042 | 3,255,291 |
Weighted average shares outstanding - diluted | 3,484,906 | 3,615,422 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Income: | ||
Net Income | $ 1,286 | $ 1,972 |
Other comprehensive (loss): | ||
Unrealized holding (losses) on available-for-sale securities | 33 | (146) |
Tax effect | (7) | 31 |
Unrealized holding (losses), net of tax | 26 | (115) |
Total other comprehensive (loss) | 26 | (115) |
Total comprehensive income | 1,312 | 1,857 |
Comprehensive income (loss) attributable to noncontrolling interests | (22) | (11) |
Comprehensive income attributable to F&M Bank Corp. | $ 1,290 | $ 1,846 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) $ in Thousands | USD ($) |
Balance, beginning of period at Dec. 31, 2017 | $ 91,275 |
Comprehensive income | |
Net income attributable to F & M Bank Corp. | 1,972 |
Net income (loss) attributable to non-controlling interest | (11) |
Other comprehensive (loss) | (115) |
Total comprehensive income | 1,846 |
Minority interest capital distributions | (25) |
Issuance of common stock | 101 |
Repurchase of common stock | (72) |
Repurchase of preferred stock | 0 |
Dividends paid | (1,464) |
Balance, end of period at Mar. 31, 2018 | 91,661 |
Balance, beginning of period at Dec. 31, 2018 | 91,911 |
Comprehensive income | |
Net income attributable to F & M Bank Corp. | 1,286 |
Net income (loss) attributable to non-controlling interest | (22) |
Other comprehensive (loss) | 26 |
Total comprehensive income | 1,290 |
Minority interest capital distributions | 0 |
Issuance of common stock | 56 |
Repurchase of common stock | (422) |
Repurchase of preferred stock | (41) |
Dividends paid | (819) |
Balance, end of period at Mar. 31, 2019 | $ 91,975 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 1,286 | $ 1,972 |
Reconcile net income to net cash provided by operating activities: | ||
Depreciation | 300 | 265 |
Amortization of intangibles | 10 | 17 |
Amortization (accretion) of securities | 1 | (1) |
Proceeds from loans held for sale originated | 22,356 | 11,882 |
Gain on sale of loans held for sale originated | (753) | (520) |
Loans held for sale originated | (21,602) | (11,362) |
Provision for loan losses | 1,450 | 680 |
Benefit for deferred taxes | 55 | 143 |
Increase in interest receivable | (125) | (48) |
(Increase) decrease in other assets | (18) | 607 |
Increase (decrease) in accrued liabilities | 584 | (1,463) |
Amortization of limited partnership investments | 214 | 192 |
Income from life insurance investment | (147) | (110) |
Loss on sale of fixed assets | 10 | 0 |
Loss (gain) on foreclosure of and valuation adjustments for other real estate owned, net | 269 | (34) |
Net cash provided by operating activities | 3,890 | 2,220 |
Cash flows from investing activities | ||
Purchase of title insurance company | 0 | (75) |
Proceeds from maturity of investments available for sale | 16 | 20,868 |
Proceeds from the redemption of restricted stock, net | 12 | 0 |
Net decrease (increase) in loans held for investment | (7,172) | (6,067) |
Net decrease in loans held for sale participations | 11,381 | 6,543 |
Net purchase of property and equipment | (655) | (1,170) |
Net cash provided by investing activities | 3,582 | 20,099 |
Cash flows from financing activities | ||
Net change in deposits | 9,511 | (577) |
Net change in short-term debt | (10,116) | (21,656) |
Dividends paid in cash | (819) | (1,464) |
Proceeds from issuance of common stock | 56 | 101 |
Repurchase of common stock | (422) | (72) |
Repurchase of preferred stock | (41) | 0 |
Repayments of long-term debt | (1,193) | (1,191) |
Net cash used in financing activities | (3,024) | (24,859) |
Net decrease in Cash and Cash Equivalents | 4,448 | (2,540) |
Cash and cash equivalents, beginning of period | 10,912 | 11,907 |
Cash and cash equivalents, end of period | 15,360 | 9,367 |
Cash paid for: | ||
Interest | 1,498 | 975 |
Taxes | 0 | 0 |
Supplemental non-cash disclosures: | ||
Transfer from loans to other real estate owned | 0 | 10 |
Right of Use Asset and lease liability, upon adoption | 1,034 | 0 |
Change in unrealized gain (loss) on securities available for sale | $ 33 | $ (115) |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Summary Of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Principles of Consolidation The accompanying unaudited consolidated financial statements of F&M Bank Corp. (“the Company”) 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 noncontrolling interest) and VSTitle, LLC (net of noncontrolling interest) 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 quarter ended March 31, 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.(TEB), Farmers & Merchants Financial Services, Inc (FMFS), F&M Mortgage and VSTitle, LLC. 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 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 by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that 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: For the quarter ended March 31, 2019 March 31, 2018 Earnings available to common stockholders: Net income $ 1,264 $ 1,961 Noncontrolling interest income (loss) (22 ) (11 ) Preferred stock dividends 79 103 Net income available to common stockholders $ 1,207 $ 1,869 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Three months ended March 31, 2019 March 31, 2018 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 1,207 3,210,042 $ 0.38 $ 1,869 3,255,291 $ 0.57 Effect of Dilutive Securities: Convertible Preferred Stock 79 274,864 (0.01 ) 103 360,131 (0.02 ) Diluted EPS $ 1,286 3,484,906 $ 0.37 $ 1,972 3,615,422 $ 0.55 |
2. Investment Securities
2. Investment Securities | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements Tables | |
Investment Securities | Investment securities available for sale are carried in the consolidated balance sheets at their fair value. Investment securities held to maturity are carried in the consolidated balance sheets at their amortized cost at March 31, 2019 and December 31, 2018 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2019 U. S. Treasuries $ 123 $ - $ - $ 123 December 31, 2018 U. S. Treasuries $ 123 $ - $ - $ 123 The amortized cost and fair value of securities available for sale are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2019 U. S. Government sponsored enterprises $ 7,999 $ - $ 80 $ 7,919 Mortgage-backed obligations of federal agencies 392 - 6 386 Total Securities Available for Sale $ 8,391 $ - $ 86 $ 8,305 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 The amortized cost and fair value of securities at March 31, 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. 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 $ 123 $ 123 $ - $ - Due after one year through five years - - 7,999 7,919 Due after five years - - 392 386 Due after ten years - - - - Total $ 123 $ 123 $ 8,391 $ 8,305 There were no sales of available for sale securities in the first quarter of 2019 or 2018. The securities held are U.S.Agency and Government Sponsored Entities and Agency MBS which carry an implicit government guarantee and are not subject to other than temporary impairment evaluation. 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 at March 31, 2019 and December 31, 2018 were as follows: Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2019 U. S. Government sponsored enterprises $ - $ - $ 7,919 $ (80 ) $ 7,919 $ (80 ) Mortgage-backed obligations of federal agencies - - 386 (6 ) 386 (6 ) Total $ - $ - $ 8,305 $ (86 ) $ 8,305 $ (86 ) 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 $ - $ - $ 7,886 $ (113 ) $ 7,886 $ (113 ) Mortgage-backed obligations of federal agencies - - 403 (6 ) 403 (6 ) Total $ - $ - $ 8,289 $ (119 ) $ 8,289 $ (119 ) Other investments consist of investments in nineteen low-income housing and historic equity partnerships (carrying basis of $7,925), stock in the Federal Home Loan Bank (carrying basis $3,676) and various other investments (carrying basis $1,605). The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted to sales. The fair values of these securities are estimated to approximate their carrying value as of March 31, 2019. At March 31, 2019, the Company was committed to invest an additional $4,273 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 balance sheet. The Company does not have any pledged securities. |
3. Loans
3. Loans | 3 Months Ended |
Mar. 31, 2019 | |
Loans Held For Investment Abstract | |
Loans | Loans held for investment outstanding at March 31, 2019 and December 31, 2018 are summarized as follows: (dollars in thousands) 2019 2018 Construction/Land Development $ 65,582 $ 61,659 Farmland 24,451 17,030 Real Estate 191,102 192,278 Multi-Family 9,568 9,665 Commercial Real Estate 143,776 147,342 Home Equity – closed end 9,030 11,039 Home Equity – open end 51,574 53,197 Commercial & Industrial – Non-Real Estate 35,572 36,021 Consumer 9,477 9,861 Dealer Finance 101,162 97,523 Credit Cards 2,919 3,184 Total $ 644,213 $ 638,799 The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $193,810 and $186,673 as of March 31, 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 (in thousands): March 31, 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 $ 2,045 $ 2,045 $ - $ 2,414 $ 2,414 $ - Farmland 1,941 1,941 - 1,941 1,941 - Real Estate 1,917 1,917 - 1,932 1,932 - Multi-Family - - - - - - Commercial Real Estate 1,825 1,825 - 6,176 6,176 - Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 57 57 - 32 32 - 7,785 7,785 12,495 12,495 Impaired loans with a valuation allowance Construction/Land Development 2,723 4,308 530 4,311 4,871 1,627 Farmland - - - - - - Real Estate 419 419 7 422 422 7 Multi-Family - - - - - - Commercial Real Estate 4,193 4,193 648 - 1,500 - Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer 5 5 - 8 8 2 Credit cards - - - - - - Dealer Finance 159 159 10 194 94 10 7,499 9,084 1,195 4,935 6,995 1,646 Total impaired loans $ 15,284 $ 16,869 $ 1,195 $ 17,430 $ 19,490 $ 1,646 1The Recorded Investment is defined as the principal balance less principal payments and charge-offs. 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 March 31, 2019 and December 31, 2018 were $44,528 and $55,910, respectively. The following is a summary of information pertaining to impaired loans (in thousands): March 31, 2019 December 31, 2018 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 2,230 $ 38 $ 3,586 $ 89 Farmland 1,941 - 1,963 80 Real Estate 1,925 29 1,542 98 Multi-Family - - - - Commercial Real Estate 4,001 40 2,304 286 Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 45 1 28 5 10,142 108 9,423 558 Impaired loans with a valuation allowance Construction/Land Development 3,517 57 6,352 91 Farmland - - - - Real Estate 421 8 554 23 Multi-Family - - - - Commercial Real Estate 2,097 137 4,167 - Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer 7 - 10 1 Credit cards - - - - Dealer Finance 177 4 206 14 6,219 206 11,289 129 Total impaired loans $ 16,361 $ 314 $ 20,712 $ 687 The following table presents the aging of the recorded investment of past due loans (in thousands) as of March 31, 2019 and December 31, 2018: 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 March 31, 2019 Construction/Land Development $ 1,211 $ 159 $ 1,186 $ 2,556 $ 63,026 $ 65,582 $ 2,959 $ - Farmland - 1,941 - 1,941 22,510 24,451 - - Real Estate 2,116 367 1,151 3,634 187,468 191,102 1,368 488 Multi-Family - - - - 9,568 9,568 - - Commercial Real Estate 666 4,333 52 5,051 138,725 143,776 4,915 - Home Equity – closed end - - - - 9,030 9,030 - - Home Equity – open end 406 171 559 1,136 50,438 51,574 268 291 Commercial & Industrial – Non-Real Estate 152 122 79 353 35,219 35,572 - 79 Consumer 70 50 31 151 9,326 9,477 - 13 Dealer Finance 1,830 202 142 2,174 98,988 101,162 185 18 Credit Cards 22 16 3 41 2,878 2,919 - 3 Total $ 6,473 $ 7,361 $ 3,203 $ 17,037 $ 627,176 $ 644,213 $ 9,695 $ 892 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 At March 31, 2019 and December 31, 2018, other real estate owned included $371 and $375 of foreclosed residential real estate, respectively. The Company has $907 of consumer mortgages for which foreclosure is in process at March 31, 2019. Nonaccrual loans at March 31, 2019 would have earned approximately $131 in interest income for the quarter had they been accruing loans. |
4. Allowance for Loan Losses
4. Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
Allowance For Loan Losses | |
Allowance for Loan Losses | A summary of changes in the allowance for loan losses (in thousands) for March 31, 2019 and December 31, 2018 is as follows: March 31, 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 $ - $ 667 $ 1,176 $ 530 $ 646 Farmland 15 - - 10 25 - 25 Real Estate 292 - - 19 311 7 304 Multi-Family 10 - - 1 11 - 11 Commercial Real Estate 416 - 8 707 1,131 648 483 Home Equity – closed end 13 - - (1 ) 12 - 12 Home Equity – open end 126 26 - 32 132 - 132 Commercial & Industrial – Non-Real Estate 192 49 5 (12 ) 136 - 136 Consumer 70 10 8 31 99 - 99 Dealer Finance 1,974 572 483 (26 ) 1,859 10 1,849 Credit Cards 38 28 8 22 40 - 40 Total $ 5,240 $ 2,270 $ 512 $ 1,450 $ 4,932 $ 1,195 $ 3,737 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 March 31, 2019 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 65,582 $ 4,768 $ 60,814 Farmland 24,451 1,941 22,510 Real Estate 191,102 2,336 188,766 Multi-Family 9,568 - 9,568 Commercial Real Estate 143,776 6,018 137,758 Home Equity – closed end 9,030 - 9,030 Home Equity –open end 51,574 - 51,574 Commercial & Industrial – Non-Real Estate 35,572 - 35,572 Consumer 9,477 5 9,472 Dealer Finance 101,162 216 100,946 Credit Cards 2,919 - 2,919 $ 644,213 $ 15,284 $ 628,929 Total The following table presents the recorded investment in loans (in thousands) based on impairment method as of March 31, 2019 and December 31, 2018: 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 The following table shows the Company’s loan portfolio broken down by internal loan grade (in thousands) as of March 31, 2019 and December 31, 2018: March 31, 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 $ - $ 366 $ 17,300 $ 33,785 $ 9,887 $ 296 $ 3,948 $ - $ 65,582 Farmland 61 410 6,942 11,267 3,329 501 1,941 - 24,451 Real Estate - 1,634 54,658 105,506 23,310 1,445 4,549 - 191,102 Multi-Family - - 2,862 6,544 162 - - - 9,568 Commercial Real Estate - 2,168 46,410 75,921 12,094 2,268 4,915 - 143,776 Home Equity – closed end - 156 2,795 4,076 2,001 - 2 - 9,030 Home Equity – open end 19 1,771 18,966 26,110 3,655 469 584 - 51,574 Commercial & Industrial (Non-Real Estate) 173 1,854 16,698 13,866 2,346 485 150 - 35,572 Consumer (excluding dealer) 25 164 2,673 4,708 1,790 64 53 - 9,477 Total $ 278 $ 8,523 $ 169,304 $ 281,783 $ 58,574 $ 5,528 $ 16,142 $ - $ 540,132 Credit Cards Dealer Finance Performing $ 2,916 $ 101,020 Non performing 3 142 Total $ 2,919 $ 101,162 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 Description of internal loan grades: Grade 1 – Minimal Risk Grade 2 – Modest Risk Grade 3 – Average Risk Grade 4 – Acceptable Risk Grade 5 – Marginally acceptable s Grade 6 – Watch Grade 7 – Substandard Grade 8 – Doubtful Credit card and dealer finance loans are classified as performing or nonperforming. A loan is nonperforming when payments of principal and interest are past due 90 days or more. |
5. Employee Benefit Plan
5. Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2019 | |
Employee Benefit Plan | |
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-month periods ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 March 31, 2018 Service cost $ 185 $ 192 Interest cost 137 124 Expected return on plan assets (202 ) (231 ) Amortization of prior service cost (4 ) (4 ) Amortization of net loss 70 76 Net periodic pension cost $ 186 $ 157 The service cost component of net periodic benefit cost is included in salaries and benefits expense in the consolidated statements of income. All other components are included in other noninterest expense in the consolidated statements of income. |
6. Fair Value
6. Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Abstract | |
Fair Value | The fair value of a financial instrument is the current amount that would be exchanged between willing parties in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Accounting guidance for fair value excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The Company records fair value adjustments to certain assets and liabilities and determines fair value disclosures utilizing a definition of fair value of assets and liabilities that states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Additional considerations are involved to determine the fair value of financial assets in markets that are not active. The Company uses a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The carrying value of restricted Federal Reserve Bank and Federal Home Loan Bank stock approximates fair value based upon the redemption provisions of each entity and is therefore excluded from the following table. Derivatives The Company’s derivatives, which support the Indexed CD product, 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 March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 Total Level 1 Level 2 Level 3 U. S. Government sponsored enterprises $ 7,919 $ - $ 7,919 Mortgage-backed obligations of federal agencies 386 - 386 - Total securities available for sale $ 8,305 - $ 8,305 - Derivatives (Indexed CD product) $ 64 - $ 64 - 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 - 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 March 31, 2019 or December 31, 2018; therefore, loans held for sale were carried at cost. Because of the short-term nature and fixed purchase price, the book value of these loans approximates fair value at March 31, 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 using 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 March 31, 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): March 31, 2019 Total Level 1 Level 2 Level 3 Construction/Land Development $ 2,193 - - $ 2,193 Real Estate 412 - - 412 Commercial Real Estate 3,545 3,545 Consumer 5 5 Dealer Finance 149 - - 149 Impaired loans $ 6,304 - - $ 6,304 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 The following table presents information about Level 3 Fair Value Measurements for March 31, 2019 and December 31, 2018: (dollars in thousands) Fair Value at March 31, 2019 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 6,304 Discounted appraised value Discount for selling costs and marketability 6%-22% (Average 11.56%) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 3,289 Discounted appraised value Discount for selling costs and marketability 2%-9% (Average 4.21%) 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 during the period. March 31, 2019 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,174 - - $ 2,174 December 31, 2018 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,443 - - $ 2,443 The following table presents information about Level 3 Fair Value Measurements for March 31, 2019: (dollars in thousands) Fair Value at March 31, 2019 Valuation Technique Significant Unobservable Inputs Range Other real estate owned $ 2,174 Discounted appraised value Discount for selling costs 5%-15% (Average 8%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2018: (dollars in thousands) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range Other real estate owned $ 2,443 Discounted appraised value Discount for selling costs 5%-15% (Average 8%) |
7. Disclosures About Fair Value
7. Disclosures About Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Disclosures About Fair Value Of Financial Instruments | |
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 March 31, 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 for March 31, 2019 and December 31, 2018 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities. The estimated fair values, and related carrying amounts (in thousands), of the Company’s financial instruments are as follows: Fair Value Measurements at March 31, 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 March 31, 2019 Assets: Cash and cash equivalents $ 15,360 $ 15,360 $ - $ - $ 15,360 Securities 8,428 - 8,428 - 8,428 Loans held for sale 44,528 - 44,528 - 44,528 Loans held for investment, net 639,281 - - 622,079 622,079 Interest receivable 2,203 - 2,203 - 2,203 Bank owned life insurance 19,607 - 19,607 - 19,607 Total $ 729,407 $ 15,360 $ 74,766 $ 622,079 $ 712,205 Liabilities: Deposits $ 600,836 $ - $ 455,087 $ 150,658 $ 605,745 Short-term debt 30,000 - 30,000 - 30,000 Long-term debt 39,025 - - 38,718 38,718 Interest payable 348 - 348 - 348 Total $ 670,209 $ - $ 485,435 $ 189,376 $ 674,811 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 |
8. Troubled Debt Restructuring
8. Troubled Debt Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Troubled Debt Restructuring Abstract | |
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 for loan loss methodology. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance calculation. Additionally, specific reserves may be established on restructured loans which are evaluated individually for impairment. During the three months ended March 31, 2019, there were two loan modifications that were considered to be troubled debt restructurings. These modifications include 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. March 31, 2019 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Consumer 2 5 5 Total 2 $ 5 $ 5 At March 31, 2019, there were three loans restructured in the previous 12 months in default or on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due. March 31, 2019 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Consumer 3 10 10 Total 3 $ 10 $ 10 During the three months ended March 31, 2018, there were ten loan modifications that were considered to be troubled debt restructurings. A restructured loan is considered in default when it becomes 90 days past due. March 31, 2018 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 1 $ 1,008 $ 1,008 Consumer 9 133 133 Total 10 $ 1,141 $ 1,141 At March 31, 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. |
9. Accumulated Other Comprehens
9. Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | The balances in accumulated other comprehensive loss are shown in the following table: (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 26 - 26 Balance at March 31, 2019 $ (68 ) $ (3 875 ) $ (3,943 ) (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 (115 ) - (115 ) Balance at March 31, 2018 $ (135 ) $ (4,122 ) $ (4,257 ) There were no reclassifications adjustments reported on the consolidated statements of income during 2018 or 2019. |
10. Business Segments
10. Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Business Segments | |
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. Three Months Ended March 31, 2019 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,501 $ 25 $ 34 $ - $ - $ (28 ) $ 9,532 Service charges on deposits 386 - - - - - 386 Investment services and insurance income - - 152 - - (1 ) 151 Mortgage banking income, net - 530 - - - - 530 Title insurance income - - - 276 - - 276 Other operating income 444 - - - 2 - 446 Total income 10,331 555 186 276 2 (29 ) 11,321 Expenses: Interest Expense 1,500 26 - - - (28 ) 1,498 Provision for loan losses 1,450 - - - - - 1,450 Salary and benefit expense 3,290 430 81 222 - - 4,023 Other operating expenses 2,754 173 13 62 6 (1 ) 3,007 Total expense 8,994 629 94 284 6 (29 ) 9,978 Income (loss) before income taxes 1,337 (74 ) 92 (8 ) (4 ) - 1,343 Income tax expense 47 - 13 - 19 - 79 Net income (loss) 1,290 (74 ) 79 (8 ) (23 ) - 1,264 Net (income) loss attributable to noncontrolling interest - (22 ) - (2 ) 2 - (22 Net Income (loss) attributable to F & M Bank Corp. $ 1,290 $ (52 ) $ 79 $ (6 ) $ (25 ) $ - $ 1,286 Total Assets $ 763,585 $ 6,744 $ 7,487 $ 769 $ 91,635 $ (90,183 ) $ 780,037 Goodwill $ 2,670 $ 47 $ - $ 3 $ 164 $ - $ 2,884 Three Months Ended March 31, 2018 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,704 $ 29 $ 35 $ - $ - $ (25 ) $ 8,743 Service charges on deposits 366 - - - - - 366 Investment services and insurance income - - 203 - - (6 ) 197 Mortgage banking income, net - 520 - - - - 520 Title insurance income - 61 - 195 - - 256 Other operating income 393 1 - - - - 394 Total income 9,463 611 238 195 - (31 ) 10,476 Expenses: Interest Expense 981 23 - - - (25 ) 979 Provision for loan losses 680 - - - - - 680 Salary and benefit expense 3,297 414 146 166 - - 4,023 Other operating expenses 2,176 212 10 48 14 (6 ) 2,454 Total expense 7,134 649 156 214 14 (31 ) 8,136 Income (loss) before income taxes 2,329 (38 ) 82 (19 ) (14 ) - 2,340 Income tax expense 141 - 15 - 223 - 379 Net income (loss) 2,188 (38 ) 67 (19 ) (237 ) - 1,961 Net loss attributable to noncontrolling interest - 11 - - - - 11 Net Income (loss) attributable to F & M Bank Corp. $ 2,188 $ (27 ) $ 67 $ (19 ) $ (237 ) $ - $ 1,972 Total Assets $ 731,512 $ 8,552 $ 6,972 $ 574 $ 91,591 $ (110,213 ) $ 728,988 Goodwill $ 2,670 $ 65 $ - $ 57 $ 164 $ - $ 2,956 |
11. Debt
11. Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt | |
Debt | Short-term Debt The Company utilizes short-term debt such as Federal funds purchased and Federal Home Loan Bank of Atlanta (FHLB) short term borrowings to support the loans held for sale participation program and provide liquidity. Federal funds purchased are unsecured overnight borrowings from other financial institutions. FHLB short term debt, which is secured by the loan portfolio, can be a daily rate variable loan that acts as a line of credit or a fixed rate advance, depending on the need of the Company. Short-term debt totaled $30,000 and $40,116 at March 31, 2019 and December 31, 2018, respectively, primarily to support loans held for sale. 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 1.71% to 2.56%; the weighted average interest rate was 1.96% at March 31, 2019 and December 31, 2018. The balance of these obligations at March 31, 2019 and December 31, 2018 were $39,018 and $40,125 respectively. There were no new borrowings in 2018 and a $10,000 advance in 2019. These advances include a $5,000 letter of credit at FHLB that is pledged to the Commonwealth of Virginia to secure public funds. The Company had a note payable to purchase a lot adjacent to one of the Bank branches which paid in full on January 1, 2019. There was $85 outstanding on this note at December 31, 2018. VSTitle, LLC has a note payable for vehicle purchases with a balance of $7 and $8 at March 31, 2019 and December 31, 2018, respectively. |
12. Revenue Recognition
12. Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) 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), 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 months ended March 31, 2019 and 2018. Noninterest income out-of-scope of Topic 606 includes losses on low income housing investments, which results in a loss. Three Months Ended March 31, 2019 2018 Noninterest Income (in thousands) In-scope of Topic 606: Service Charges on Deposits $ 386 $ 366 Investment Services and Insurance Income 681 717 Title Insurance Income 276 256 ATM and check card fees 369 347 Other 127 116 Noninterest Income (in-scope of Topic 606) 1,839 1,802 Noninterest Income (out-of-scope of Topic 606) (50 ) (69 ) Total Noninterest Income $ 1,789 $ 1,733 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 March 31, 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. |
13. Leases
13. Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases: (Dollars in thousands) March 31, 2019 Lease liabilities $ 1,019 Right-of-use assets $ 1,033 Weighted average remaining lease term 8.51 years Weighted average discount rate 3.51 % For the Three Months Ended March 31, 2019 Lease cost Operating lease cost $ 32 Total lease cost $ 32 Cash paid for amounts included in the measurement of lease liabilities $ 38 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: Lease payments due As of March 31, 2019 Nine months ending December 31, 2019 $ 113 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 $ 1,268 Discount (249 ) Lease liabilities $ 1,019 |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Principles Policies Abstract | |
Principles of Consolidation | The accompanying unaudited consolidated financial statements of F&M Bank Corp. (“the Company”) 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 noncontrolling interest) and VSTitle, LLC (net of noncontrolling interest) 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 quarter ended March 31, 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.(TEB), Farmers & Merchants Financial Services, Inc (FMFS), F&M Mortgage and VSTitle, LLC. |
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 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 by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that 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: For the quarter ended March 31, 2019 March 31, 2018 Earnings available to common stockholders: Net income $ 1,264 $ 1,961 Noncontrolling interest income (loss) (22 ) (11 ) Preferred stock dividends 79 103 Net income available to common stockholders $ 1,207 $ 1,869 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Three months ended March 31, 2019 March 31, 2018 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 1,207 3,210,042 $ 0.38 $ 1,869 3,255,291 $ 0.57 Effect of Dilutive Securities: Convertible Preferred Stock 79 274,864 (0.01 ) 103 360,131 (0.02 ) Diluted EPS $ 1,286 3,484,906 $ 0.37 $ 1,972 3,615,422 $ 0.55 |
1. Summary of Significant Acc_3
1. Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Principles Tables Abstract | |
Schedule of earnings per share | The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: For the quarter ended March 31, 2019 March 31, 2018 Earnings available to common stockholders: Net income $ 1,264 $ 1,961 Noncontrolling interest income (loss) (22 ) (11 ) Preferred stock dividends 79 103 Net income available to common stockholders $ 1,207 $ 1,869 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Three months ended March 31, 2019 March 31, 2018 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 1,207 3,210,042 $ 0.38 $ 1,869 3,255,291 $ 0.57 Effect of Dilutive Securities: Convertible Preferred Stock 79 274,864 (0.01 ) 103 360,131 (0.02 ) Diluted EPS $ 1,286 3,484,906 $ 0.37 $ 1,972 3,615,422 $ 0.55 |
2. Investment Securities (Table
2. Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investment Securities Tables Abstract | |
Schedule of amortized cost and fair value for securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2019 U. S. Treasuries $ 123 $ - $ - $ 123 December 31, 2018 U. S. Treasuries $ 123 $ - $ - $ 123 |
Amortized cost and fair value of securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2019 U. S. Government sponsored enterprises $ 7,999 $ - $ 80 $ 7,919 Mortgage-backed obligations of federal agencies 392 - 6 386 Total Securities Available for Sale $ 8,391 $ - $ 86 $ 8,305 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 |
Schedule of gain and losses on sales of debt and equity securities | 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 $ 123 $ 123 $ - $ - Due after one year through five years - - 7,999 7,919 Due after five years - - 392 386 Due after ten years - - - - Total $ 123 $ 123 $ 8,391 $ 8,305 |
Schedule of securities with unrealized losses | Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2019 U. S. Government sponsored enterprises $ - $ - $ 7,919 $ (80 ) $ 7,919 $ (80 ) Mortgage-backed obligations of federal agencies - - 386 (6 ) 386 (6 ) Total $ - $ - $ 8,305 $ (86 ) $ 8,305 $ (86 ) 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 $ - $ - $ 7,886 $ (113 ) $ 7,886 $ (113 ) Mortgage-backed obligations of federal agencies - - 403 (6 ) 403 (6 ) Total $ - $ - $ 8,289 $ (119 ) $ 8,289 $ (119 ) |
3. Loans (Tables)
3. Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Loans Held For Investment Tables Abstract | |
Schedule of loans outstanding | (dollars in thousands) 2019 2018 Construction/Land Development $ 65,582 $ 61,659 Farmland 24,451 17,030 Real Estate 191,102 192,278 Multi-Family 9,568 9,665 Commercial Real Estate 143,776 147,342 Home Equity – closed end 9,030 11,039 Home Equity – open end 51,574 53,197 Commercial & Industrial – Non-Real Estate 35,572 36,021 Consumer 9,477 9,861 Dealer Finance 101,162 97,523 Credit Cards 2,919 3,184 Total $ 644,213 $ 638,799 |
Schedule impaired loans | March 31, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment1 Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 2,045 $ 2,045 $ - $ 2,414 $ 2,414 $ - Farmland 1,941 1,941 - 1,941 1,941 - Real Estate 1,917 1,917 - 1,932 1,932 - Multi-Family - - - - - - Commercial Real Estate 1,825 1,825 - 6,176 6,176 - Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 57 57 - 32 32 - 7,785 7,785 12,495 12,495 Impaired loans with a valuation allowance Construction/Land Development 2,723 4,308 530 4,311 4,871 1,627 Farmland - - - - - - Real Estate 419 419 7 422 422 7 Multi-Family - - - - - - Commercial Real Estate 4,193 4,193 648 - 1,500 - Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer 5 5 - 8 8 2 Credit cards - - - - - - Dealer Finance 159 159 10 194 94 10 7,499 9,084 1,195 4,935 6,995 1,646 Total impaired loans $ 15,284 $ 16,869 $ 1,195 $ 17,430 $ 19,490 $ 1,646 |
Schedule of recorded investment | March 31, 2019 December 31, 2018 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 2,230 $ 38 $ 3,586 $ 89 Farmland 1,941 - 1,963 80 Real Estate 1,925 29 1,542 98 Multi-Family - - - - Commercial Real Estate 4,001 40 2,304 286 Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 45 1 28 5 10,142 108 9,423 558 Impaired loans with a valuation allowance Construction/Land Development 3,517 57 6,352 91 Farmland - - - - Real Estate 421 8 554 23 Multi-Family - - - - Commercial Real Estate 2,097 137 4,167 - Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer 7 - 10 1 Credit cards - - - - Dealer Finance 177 4 206 14 6,219 206 11,289 129 Total impaired loans $ 16,361 $ 314 $ 20,712 $ 687 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 March 31, 2019 Construction/Land Development $ 1,211 $ 159 $ 1,186 $ 2,556 $ 63,026 $ 65,582 $ 2,959 $ - Farmland - 1,941 - 1,941 22,510 24,451 - - Real Estate 2,116 367 1,151 3,634 187,468 191,102 1,368 488 Multi-Family - - - - 9,568 9,568 - - Commercial Real Estate 666 4,333 52 5,051 138,725 143,776 4,915 - Home Equity – closed end - - - - 9,030 9,030 - - Home Equity – open end 406 171 559 1,136 50,438 51,574 268 291 Commercial & Industrial – Non-Real Estate 152 122 79 353 35,219 35,572 - 79 Consumer 70 50 31 151 9,326 9,477 - 13 Dealer Finance 1,830 202 142 2,174 98,988 101,162 185 18 Credit Cards 22 16 3 41 2,878 2,919 - 3 Total $ 6,473 $ 7,361 $ 3,203 $ 17,037 $ 627,176 $ 644,213 $ 9,695 $ 892 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 |
4. Allowance for Loan Losses (T
4. Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Allowance For Loan Losses Tables Abstract | |
Summary loan loss allowance transactions | March 31, 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 $ - $ 667 $ 1,176 $ 530 $ 646 Farmland 15 - - 10 25 - 25 Real Estate 292 - - 19 311 7 304 Multi-Family 10 - - 1 11 - 11 Commercial Real Estate 416 - 8 707 1,131 648 483 Home Equity – closed end 13 - - (1 ) 12 - 12 Home Equity – open end 126 26 - 32 132 - 132 Commercial & Industrial – Non-Real Estate 192 49 5 (12 ) 136 - 136 Consumer 70 10 8 31 99 - 99 Dealer Finance 1,974 572 483 (26 ) 1,859 10 1,849 Credit Cards 38 28 8 22 40 - 40 Total $ 5,240 $ 2,270 $ 512 $ 1,450 $ 4,932 $ 1,195 $ 3,737 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 |
Schedule of recorded investment in loan receivables | March 31, 2019 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 65,582 $ 4,768 $ 60,814 Farmland 24,451 1,941 22,510 Real Estate 191,102 2,336 188,766 Multi-Family 9,568 - 9,568 Commercial Real Estate 143,776 6,018 137,758 Home Equity – closed end 9,030 - 9,030 Home Equity –open end 51,574 - 51,574 Commercial & Industrial – Non-Real Estate 35,572 - 35,572 Consumer 9,477 5 9,472 Dealer Finance 101,162 216 100,946 Credit Cards 2,919 - 2,919 $ 644,213 $ 15,284 $ 628,929 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 |
Schedule of loan portfolio by internal loan grade | , 2018: March 31, 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 $ - $ 366 $ 17,300 $ 33,785 $ 9,887 $ 296 $ 3,948 $ - $ 65,582 Farmland 61 410 6,942 11,267 3,329 501 1,941 - 24,451 Real Estate - 1,634 54,658 105,506 23,310 1,445 4,549 - 191,102 Multi-Family - - 2,862 6,544 162 - - - 9,568 Commercial Real Estate - 2,168 46,410 75,921 12,094 2,268 4,915 - 143,776 Home Equity – closed end - 156 2,795 4,076 2,001 - 2 - 9,030 Home Equity – open end 19 1,771 18,966 26,110 3,655 469 584 - 51,574 Commercial & Industrial (Non-Real Estate) 173 1,854 16,698 13,866 2,346 485 150 - 35,572 Consumer (excluding dealer) 25 164 2,673 4,708 1,790 64 53 - 9,477 Total $ 278 $ 8,523 $ 169,304 $ 281,783 $ 58,574 $ 5,528 $ 16,142 $ - $ 540,132 Credit Cards Dealer Finance Performing $ 2,916 $ 101,020 Non performing 3 142 Total $ 2,919 $ 101,162 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 |
5. Employee Benefit Plan (Table
5. Employee Benefit Plan (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Employee Benefit Plan Tables Abstract | |
Schedule of employee benefit plan | Three Months Ended March 31, 2019 March 31, 2018 Service cost $ 185 $ 192 Interest cost 137 124 Expected return on plan assets (202 ) (231 ) Amortization of prior service cost (4 ) (4 ) Amortization of net loss 70 76 Net periodic pension cost $ 186 $ 157 |
6. Fair Value (Tables)
6. Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Tables Abstract | |
Schedule of assets and liabilities at fair value on recurring basis | March 31, 2019 Total Level 1 Level 2 Level 3 U. S. Government sponsored enterprises $ 7,919 $ - $ 7,919 Mortgage-backed obligations of federal agencies 386 - 386 - Total securities available for sale $ 8,305 - $ 8,305 - Derivatives (Indexed CD product) $ 64 - $ 64 - 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 - |
Schedule of assets and liabilities at fair value on non-recurring basis | March 31, 2019 Total Level 1 Level 2 Level 3 Construction/Land Development $ 2,193 - - $ 2,193 Real Estate 412 - - 412 Commercial Real Estate 3,545 3,545 Consumer 5 5 Dealer Finance 149 - - 149 Impaired loans $ 6,304 - - $ 6,304 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 |
Schedule of fair value measurements | (dollars in thousands) Fair Value at March 31, 2019 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 6,304 Discounted appraised value Discount for selling costs and marketability 6%-22% (Average 11.56%) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 3,289 Discounted appraised value Discount for selling costs and marketability 2%-9% (Average 4.21%) March 31, 2019 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,174 - - $ 2,174 December 31, 2018 Total Level 1 Level 2 Level 3 Other real estate owned $ 2,443 - - $ 2,443 The following table presents information about Level 3 Fair Value Measurements for March 31, 2019: (dollars in thousands) Fair Value at March 31, 2019 Valuation Technique Significant Unobservable Inputs Range Other real estate owned $ 2,174 Discounted appraised value Discount for selling costs 5%-15% (Average 8%) The following table presents information about Level 3 Fair Value Measurements for December 31, 2018: (dollars in thousands) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Range Other real estate owned $ 2,443 Discounted appraised value Discount for selling costs 5%-15% (Average 8%) |
7. Disclosures About Fair Val_2
7. Disclosures About Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosures About Fair Value Of Financial Instruments Tables Abstract | |
Schedule of carrying value and estimated fair value for financial instruments | Fair Value Measurements at March 31, 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 March 31, 2019 Assets: Cash and cash equivalents $ 15,360 $ 15,360 $ - $ - $ 15,360 Securities 8,428 - 8,428 - 8,428 Loans held for sale 44,528 - 44,528 - 44,528 Loans held for investment, net 639,281 - - 622,079 622,079 Interest receivable 2,203 - 2,203 - 2,203 Bank owned life insurance 19,607 - 19,607 - 19,607 Total $ 729,407 $ 15,360 $ 74,766 $ 622,079 $ 712,205 Liabilities: Deposits $ 600,836 $ - $ 455,087 $ 150,658 $ 605,745 Short-term debt 30,000 - 30,000 - 30,000 Long-term debt 39,025 - - 38,718 38,718 Interest payable 348 - 348 - 348 Total $ 670,209 $ - $ 485,435 $ 189,376 $ 674,811 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 |
8. Troubled Debt Restructuring
8. Troubled Debt Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Troubled Debt Restructuring Abstract | |
Schedule of troubled debt restructuring | March 31, 2019 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Consumer 2 5 5 Total 2 $ 5 $ 5 March 31, 2019 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Consumer 3 10 10 Total 3 $ 10 $ 10 March 31, 2018 Pre-Modification Post-Modification (dollars in thousands) Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial Real Estate 1 $ 1,008 $ 1,008 Consumer 9 133 133 Total 10 $ 1,141 $ 1,141 |
9. Accumulated Other Comprehe_2
9. Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss | |
Schedule of accumulated other comprehensive loss | (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 26 - 26 Balance at March 31, 2019 $ (68 ) $ (3 875 ) $ (3,943 ) (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 (115 ) - (115 ) Balance at March 31, 2018 $ (135 ) $ (4,122 ) $ (4,257 ) |
10. Business Segments (Tables)
10. Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Segments Tables Abstract | |
Schedule of business segments | Three Months Ended March 31, 2019 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,501 $ 25 $ 34 $ - $ - $ (28 ) $ 9,532 Service charges on deposits 386 - - - - - 386 Investment services and insurance income - - 152 - - (1 ) 151 Mortgage banking income, net - 530 - - - - 530 Title insurance income - - - 276 - - 276 Other operating income 444 - - - 2 - 446 Total income 10,331 555 186 276 2 (29 ) 11,321 Expenses: Interest Expense 1,500 26 - - - (28 ) 1,498 Provision for loan losses 1,450 - - - - - 1,450 Salary and benefit expense 3,290 430 81 222 - - 4,023 Other operating expenses 2,754 173 13 62 6 (1 ) 3,007 Total expense 8,994 629 94 284 6 (29 ) 9,978 Income (loss) before income taxes 1,337 (74 ) 92 (8 ) (4 ) - 1,343 Income tax expense 47 - 13 - 19 - 79 Net income (loss) 1,290 (74 ) 79 (8 ) (23 ) - 1,264 Net (income) loss attributable to noncontrolling interest - (22 ) - (2 ) 2 - (22) Net Income (loss) attributable to F & M Bank Corp. $ 1,290 $ (52 ) $ 79 $ (6 ) $ (25 ) $ - $ 1,286 Total Assets $ 763,585 $ 6,744 $ 7,487 $ 769 $ 91,635 $ (90,183 ) $ 780,037 Goodwill $ 2,670 $ 47 $ - $ 3 $ 164 $ - $ 2,884 Three Months Ended March 31, 2018 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,704 $ 29 $ 35 $ - $ - $ (25 ) $ 8,743 Service charges on deposits 366 - - - - - 366 Investment services and insurance income - - 203 - - (6 ) 197 Mortgage banking income, net - 520 - - - - 520 Title insurance income - 61 - 195 - - 256 Other operating income 393 1 - - - - 394 Total income 9,463 611 238 195 - (31 ) 10,476 Expenses: Interest Expense 981 23 - - - (25 ) 979 Provision for loan losses 680 - - - - - 680 Salary and benefit expense 3,297 414 146 166 - - 4,023 Other operating expenses 2,176 212 10 48 14 (6 ) 2,454 Total expense 7,134 649 156 214 14 (31 ) 8,136 Income (loss) before income taxes 2,329 (38 ) 82 (19 ) (14 ) - 2,340 Income tax expense 141 - 15 - 223 - 379 Net income (loss) 2,188 (38 ) 67 (19 ) (237 ) - 1,961 Net loss attributable to noncontrolling interest - 11 - - - - 11 Net Income (loss) attributable to F & M Bank Corp. $ 2,188 $ (27 ) $ 67 $ (19 ) $ (237 ) $ - $ 1,972 Total Assets $ 731,512 $ 8,552 $ 6,972 $ 574 $ 91,591 $ (110,213 ) $ 728,988 Goodwill $ 2,670 $ 65 $ - $ 57 $ 164 $ - $ 2,956 |
12. Revenue Recognition (Tables
12. Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition Tables Abstract | |
Summary of noninterest income, segregated by revenue streams | Three Months Ended March 31, 2019 2018 Noninterest Income (in thousands) In-scope of Topic 606: Service Charges on Deposits $ 386 $ 366 Investment Services and Insurance Income 681 717 Title Insurance Income 276 256 ATM and check card fees 369 347 Other 127 116 Noninterest Income (in-scope of Topic 606) 1,839 1,802 Noninterest Income (out-of-scope of Topic 606) (50 ) (69 ) Total Noninterest Income $ 1,789 $ 1,733 |
13. Leases (Tables)
13. Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases Tables Abstract | |
Leases | (Dollars in thousands) March 31, 2019 Lease liabilities $ 1,019 Right-of-use assets $ 1,033 Weighted average remaining lease term 8.51 years Weighted average discount rate 3.51 % |
Lease cost | For the Three Months Ended March 31, 2019 Lease cost Operating lease cost $ 32 Total lease cost $ 32 Cash paid for amounts included in the measurement of lease liabilities $ 38 |
Maturity of operating leases | Lease payments due As of March 31, 2019 Nine months ending December 31, 2019 $ 113 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 $ 1,268 Discount (249 ) Lease liabilities $ 1,019 |
1. Summary of Significant Acc_4
1. Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings available to common stockholders: | ||
Net income | $ 1,264 | $ 1,961 |
Noncontrolling interest income | (22) | (11) |
Preferred stock dividends | 79 | 103 |
Net income available to common stockholders | $ 1,207 | $ 1,869 |
1. Summary of Significant Acc_5
1. Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary Of Significant Accounting Policies | ||
Basic EPS, Income | $ 1,207 | $ 1,869 |
Effect of Dilutive Securities Convertible Preferred Stock, Income | 79 | 103 |
Diluted EPS, Income | $ 1,286 | $ 1,972 |
Diluted EPS, Shares | 3,210,042 | 3,255,291 |
Effect of Dilutive Securities Convertible Preferred Stock, Shares | 274,864 | 360,131 |
Diluted EPS, Shares | 3,484,906 | 3,615,422 |
Basic EPS, Per Shares | $ 0.38 | $ 0.57 |
Effect of Dilutive Securities Convertible Preferred Stock, Per Shares | (0.01) | (0.02) |
Diluted EPS, Per Shares | $ 0.37 | $ 0.55 |
2. Investment Securities (Detai
2. Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Securities available for sale | ||
Cost | $ 8,391 | $ 8,408 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 86 | 119 |
Market Value | 8,305 | 8,289 |
U. S. Treasury and agency obligations [Member] | ||
Securities held to maturity | ||
Cost | 123 | 123 |
Market Value | 123 | 123 |
Government Sponsored Enterprises [Member] | ||
Securities available for sale | ||
Cost | 7,999 | 7,999 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 80 | 113 |
Market Value | 7,919 | 7,886 |
Mortgage-backed securities [Member] | ||
Securities available for sale | ||
Cost | 392 | 409 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 6 | 6 |
Market Value | $ 386 | $ 403 |
2. Investment Securities (Det_2
2. Investment Securities (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total, Amortized Cost | $ 123 | $ 123 |
Securities Held to Maturity [Member] | ||
Due in one year or less, Amortized Cost | 123 | |
Due after one year through five years, Amortized Cost | 0 | |
Due after five years, Amortized Cost | 0 | |
Due after ten years, Amortized Cost | 0 | |
Total, Amortized Cost | 123 | |
Due in one year or less, Fair Value | 123 | |
Due after one year through five years, Fair Value | 0 | |
Due after five years, Fair Value | 0 | |
Due after ten years, Fair Value | 0 | |
Total, Fair Value | 123 | |
Securities Available for Sale [Member] | ||
Due in one year or less, Amortized Cost | 0 | |
Due after one year through five years, Amortized Cost | 7,999 | |
Due after five years, Amortized Cost | 392 | |
Due after ten years, Amortized Cost | 0 | |
Total, Amortized Cost | 8,391 | |
Due in one year or less, Fair Value | 0 | |
Due after one year through five years, Fair Value | 7,919 | |
Due after five years, Fair Value | 386 | |
Due after ten years, Fair Value | 0 | |
Total, Fair Value | $ 8,305 |
2. Investment Securities (Det_3
2. Investment Securities (Details 2) - USD ($) $ in Thousands | Mar. 31, 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 | 8,305 | 8,289 |
Unrealized Losses More than 12 Months | (86) | (119) |
Fair Value Total | 8,305 | 8,289 |
Unrealized Losses Total | (86) | (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 | 7,919 | 7,886 |
Unrealized Losses More than 12 Months | (80) | (113) |
Fair Value Total | 7,919 | 7,886 |
Unrealized Losses Total | (80) | (113) |
Mortgage-backed securities [Member] | ||
Fair Value Less than 12 Months | 0 | 0 |
Unrealized Losses Less than 12 Months | 0 | 0 |
Fair Value More than 12 Months | 386 | 403 |
Unrealized Losses More than 12 Months | (6) | (6) |
Fair Value Total | 386 | 403 |
Unrealized Losses Total | $ (6) | $ (6) |
2. Investment Securities (Det_4
2. Investment Securities (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Invetment Securities Details 3Abstract | ||
Other investments | $ 13,206 | $ 13,432 |
3. Loans (Details)
3. Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans outstanding | $ 644,213 | $ 638,799 |
Construction/Land Development [Member] | ||
Loans outstanding | 65,582 | 61,659 |
Farmland [Member] | ||
Loans outstanding | 24,451 | 17,030 |
Real Estate [Member] | ||
Loans outstanding | 191,102 | 192,278 |
Multi-Family [Member] | ||
Loans outstanding | 9,568 | 9,665 |
Commercial Real Estate [Member] | ||
Loans outstanding | 143,776 | 147,342 |
Home Equity - Closed End [Member] | ||
Loans outstanding | 9,030 | 11,039 |
Home Equity [Member] | ||
Loans outstanding | 51,574 | 53,197 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loans outstanding | 35,572 | 36,021 |
Consumer [Member] | ||
Loans outstanding | 9,477 | 9,861 |
Dealer Finance [Member] | ||
Loans outstanding | 101,162 | 97,523 |
Credit Cards [Member] | ||
Loans outstanding | $ 2,919 | $ 3,184 |
3. Loans (Details 1)
3. Loans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 7,785 | $ 12,495 |
Unpaid Principal Balance | 7,785 | 12,495 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 10,142 | 9,423 |
Interest Income Recognized | 108 | 558 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 7,499 | 4,935 |
Unpaid Principal Balance | 9,084 | 6,995 |
Related Allowance | 1,195 | 1,646 |
Average Recorded Investment | 6,219 | 11,289 |
Interest Income Recognized | 206 | 129 |
Total impaired loans | ||
Recorded Investment | 15,284 | 17,430 |
Unpaid Principal Balance | 16,869 | 19,490 |
Related Allowance | 1,195 | 1,646 |
Interest Income Recognized | 314 | 687 |
Construction/Land Development [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 2,045 | 2,414 |
Unpaid Principal Balance | 2,045 | 2,414 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,230 | 3,586 |
Interest Income Recognized | 38 | 89 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 2,723 | 4,311 |
Unpaid Principal Balance | 4,308 | 4,871 |
Related Allowance | 530 | 1,627 |
Average Recorded Investment | 3,517 | 6,352 |
Interest Income Recognized | 57 | 91 |
Farmland [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 1,941 | 1,941 |
Unpaid Principal Balance | 1,941 | 1,941 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 1,941 | 1,963 |
Interest Income Recognized | 0 | 80 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 1,917 | 1,932 |
Unpaid Principal Balance | 1,917 | 1,932 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 1,925 | 1,542 |
Interest Income Recognized | 29 | 98 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 419 | 422 |
Unpaid Principal Balance | 419 | 422 |
Related Allowance | 7 | 7 |
Average Recorded Investment | 421 | 554 |
Interest Income Recognized | 8 | 23 |
Multi-Family [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 1,825 | 6,176 |
Unpaid Principal Balance | 1,825 | 6,176 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 4,001 | 2,304 |
Interest Income Recognized | 40 | 286 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 4,193 | 0 |
Unpaid Principal Balance | 4,193 | 1,500 |
Related Allowance | 648 | 0 |
Average Recorded Investment | 2,097 | 4,167 |
Interest Income Recognized | 137 | 0 |
Home Equity - Closed End [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Home Equity [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Consumer [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 5 | 8 |
Unpaid Principal Balance | 5 | 8 |
Related Allowance | 0 | 2 |
Average Recorded Investment | 7 | 10 |
Interest Income Recognized | 0 | 1 |
Credit Cards [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Dealer Finance [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 57 | 32 |
Unpaid Principal Balance | 57 | 32 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 45 | 28 |
Interest Income Recognized | 1 | 5 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 159 | 194 |
Unpaid Principal Balance | 159 | 94 |
Related Allowance | 10 | 10 |
Average Recorded Investment | 177 | 206 |
Interest Income Recognized | $ 4 | $ 14 |
3. Loans (Details 2)
3. Loans (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
30-59 Days Past due | $ 6,473 | $ 6,933 |
60-89 Days Past due | 7,361 | 1,433 |
Greater than 90 Days (excluding non-accrual) | 3,203 | 9,089 |
Total past due | 17,037 | 17,455 |
Current | 627,176 | 621,344 |
Total Loans Receivable | 644,213 | 638,799 |
Non-Accrual Loans | 9,695 | 9,405 |
Recorded Investment >90 days & accruing | 892 | 800 |
Credit Cards [Member] | ||
30-59 Days Past due | 22 | 50 |
60-89 Days Past due | 16 | 11 |
Greater than 90 Days (excluding non-accrual) | 3 | 9 |
Total past due | 41 | 70 |
Current | 2,878 | 3,114 |
Total Loans Receivable | 2,919 | 3,184 |
Non-Accrual Loans | 0 | 0 |
Recorded Investment >90 days & accruing | 3 | 0 |
Construction/Land Development [Member] | ||
30-59 Days Past due | 1,211 | 290 |
60-89 Days Past due | 159 | 0 |
Greater than 90 Days (excluding non-accrual) | 1,186 | 1,767 |
Total past due | 2,556 | 2,057 |
Current | 63,026 | 59,602 |
Total Loans Receivable | 65,582 | 61,659 |
Non-Accrual Loans | 2,959 | 2,327 |
Recorded Investment >90 days & accruing | 0 | 0 |
Farmland [Member] | ||
30-59 Days Past due | 0 | 0 |
60-89 Days Past due | 1,941 | 0 |
Greater than 90 Days (excluding non-accrual) | 0 | 0 |
Total past due | 1,941 | 0 |
Current | 22,510 | 17,030 |
Total Loans Receivable | 24,451 | 17,030 |
Non-Accrual Loans | 0 | 0 |
Recorded Investment >90 days & accruing | 0 | 0 |
Real Estate [Member] | ||
30-59 Days Past due | 2,116 | 3,074 |
60-89 Days Past due | 367 | 677 |
Greater than 90 Days (excluding non-accrual) | 1,151 | 1,729 |
Total past due | 3,634 | 5,480 |
Current | 187,468 | 186,798 |
Total Loans Receivable | 191,102 | 192,278 |
Non-Accrual Loans | 1,368 | 1,477 |
Recorded Investment >90 days & accruing | 488 | 726 |
Multi-Family [Member] | ||
30-59 Days Past due | 0 | 0 |
60-89 Days Past due | 0 | 0 |
Greater than 90 Days (excluding non-accrual) | 0 | 0 |
Total past due | 0 | 0 |
Current | 9,568 | 9,665 |
Total Loans Receivable | 9,568 | 9,665 |
Non-Accrual Loans | 0 | 0 |
Recorded Investment >90 days & accruing | 0 | 0 |
Commercial Real Estate [Member] | ||
30-59 Days Past due | 666 | 479 |
60-89 Days Past due | 4,333 | 189 |
Greater than 90 Days (excluding non-accrual) | 52 | 5,073 |
Total past due | 5,051 | 5,741 |
Current | 138,725 | 141,601 |
Total Loans Receivable | 143,776 | 147,342 |
Non-Accrual Loans | 4,915 | 5,074 |
Recorded Investment >90 days & accruing | 0 | 0 |
Home Equity - Closed End [Member] | ||
30-59 Days Past due | 0 | 0 |
60-89 Days Past due | 0 | 0 |
Greater than 90 Days (excluding non-accrual) | 0 | 12 |
Total past due | 0 | 12 |
Current | 9,030 | 11,027 |
Total Loans Receivable | 9,030 | 11,039 |
Non-Accrual Loans | 0 | 0 |
Recorded Investment >90 days & accruing | 0 | 12 |
Home Equity [Member] | ||
30-59 Days Past due | 406 | 148 |
60-89 Days Past due | 171 | 171 |
Greater than 90 Days (excluding non-accrual) | 559 | 320 |
Total past due | 1,136 | 639 |
Current | 50,438 | 52,558 |
Total Loans Receivable | 51,574 | 53,197 |
Non-Accrual Loans | 268 | 269 |
Recorded Investment >90 days & accruing | 291 | 51 |
Commercial & Industrial - Non-Real Estate [Member] | ||
30-59 Days Past due | 152 | 40 |
60-89 Days Past due | 122 | 22 |
Greater than 90 Days (excluding non-accrual) | 79 | 80 |
Total past due | 353 | 142 |
Current | 35,219 | 35,879 |
Total Loans Receivable | 35,572 | 36,021 |
Non-Accrual Loans | 0 | 98 |
Recorded Investment >90 days & accruing | 79 | 0 |
Consumer [Member] | ||
30-59 Days Past due | 70 | 89 |
60-89 Days Past due | 50 | 26 |
Greater than 90 Days (excluding non-accrual) | 31 | 3 |
Total past due | 151 | 118 |
Current | 9,326 | 9,743 |
Total Loans Receivable | 9,477 | 9,861 |
Non-Accrual Loans | 0 | 5 |
Recorded Investment >90 days & accruing | 13 | 2 |
Dealer Finance [Member] | ||
30-59 Days Past due | 1,830 | 2,763 |
60-89 Days Past due | 202 | 337 |
Greater than 90 Days (excluding non-accrual) | 142 | 96 |
Total past due | 2,174 | 3,196 |
Current | 98,988 | 94,327 |
Total Loans Receivable | 101,162 | 97,523 |
Non-Accrual Loans | 185 | 155 |
Recorded Investment >90 days & accruing | $ 18 | $ 9 |
3. Loans (Details Narrative)
3. Loans (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Loans Details Narrative Abstract | ||
Pledged loans | $ 193,810 | $ 186,673 |
Loans held for sale | 44,528 | 55,910 |
Foreclosed residential real estate in other real estate | $ 371 | $ 375 |
4. Allowance for Loan Losses (D
4. Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Beginning Balance | $ 5,240 | $ 6,044 |
Charge-offs | 2,270 | 4,920 |
Recoveries | 512 | 1,186 |
Provision | 1,450 | 2,930 |
Ending Balance | 4,932 | 5,240 |
Individually Evaluated for Impairment | 1,195 | 1,646 |
Collectively Evaluated for Impairment | 3,737 | 3,594 |
Construction/Land Development [Member] | ||
Beginning Balance | 2,094 | 2,547 |
Charge-offs | 1,585 | 489 |
Recoveries | 0 | 122 |
Provision | 667 | (86) |
Ending Balance | 1,176 | 2,094 |
Individually Evaluated for Impairment | 530 | 1,627 |
Collectively Evaluated for Impairment | 646 | 467 |
Farmland [Member] | ||
Beginning Balance | 15 | 25 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 10 | (10) |
Ending Balance | 25 | 15 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 25 | 15 |
Real Estate [Member] | ||
Beginning Balance | 292 | 719 |
Charge-offs | 0 | 99 |
Recoveries | 0 | 12 |
Provision | 19 | (340) |
Ending Balance | 311 | 292 |
Individually Evaluated for Impairment | 7 | 7 |
Collectively Evaluated for Impairment | 304 | 285 |
Multi-Family [Member] | ||
Beginning Balance | 10 | 19 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 1 | (9) |
Ending Balance | 11 | 10 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 11 | 10 |
Commercial Real Estate [Member] | ||
Beginning Balance | 416 | 482 |
Charge-offs | 0 | 1,546 |
Recoveries | 8 | 1 |
Provision | 707 | 1,479 |
Ending Balance | 1,131 | 416 |
Individually Evaluated for Impairment | 648 | 0 |
Collectively Evaluated for Impairment | 483 | 416 |
Home Equity - Closed End [Member] | ||
Beginning Balance | 13 | 66 |
Charge-offs | 0 | 3 |
Recoveries | 0 | 4 |
Provision | (1) | (54) |
Ending Balance | 12 | 13 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 12 | 13 |
Home Equity [Member] | ||
Beginning Balance | 126 | 209 |
Charge-offs | 26 | 0 |
Recoveries | 0 | 8 |
Provision | 32 | (91) |
Ending Balance | 132 | 126 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 132 | 126 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Beginning Balance | 192 | 337 |
Charge-offs | 49 | 573 |
Recoveries | 5 | 91 |
Provision | (12) | 337 |
Ending Balance | 136 | 192 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | 136 | 192 |
Consumer [Member] | ||
Beginning Balance | 70 | 148 |
Charge-offs | 10 | 51 |
Recoveries | 8 | 41 |
Provision | 31 | (68) |
Ending Balance | 99 | 70 |
Individually Evaluated for Impairment | 0 | 2 |
Collectively Evaluated for Impairment | 99 | 68 |
Dealer Finance [Member] | ||
Beginning Balance | 1,974 | 1,440 |
Charge-offs | 572 | 2,083 |
Recoveries | 483 | 861 |
Provision | (26) | 1,756 |
Ending Balance | 1,859 | 1,974 |
Individually Evaluated for Impairment | 10 | 10 |
Collectively Evaluated for Impairment | 1,849 | 1,964 |
Credit Cards [Member] | ||
Beginning Balance | 38 | 52 |
Charge-offs | 28 | 76 |
Recoveries | 8 | 46 |
Provision | 22 | 16 |
Ending Balance | 40 | 38 |
Individually Evaluated for Impairment | 0 | 0 |
Collectively Evaluated for Impairment | $ 40 | $ 38 |
4. Allowance for Loan Losses _2
4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loan Receivable | $ 644,213 | $ 638,799 |
Loans Individually Evaluated for Impairment | 15,284 | 17,430 |
Loans Collectively Evaluated for Impairment | 628,929 | 621,369 |
Construction/Land Development [Member] | ||
Loan Receivable | 65,582 | 61,659 |
Loans Individually Evaluated for Impairment | 4,768 | 6,725 |
Loans Collectively Evaluated for Impairment | 60,814 | 54,934 |
Farmland [Member] | ||
Loan Receivable | 24,451 | 17,030 |
Loans Individually Evaluated for Impairment | 1,941 | 1,941 |
Loans Collectively Evaluated for Impairment | 22,510 | 15,089 |
Real Estate [Member] | ||
Loan Receivable | 191,102 | 192,278 |
Loans Individually Evaluated for Impairment | 2,336 | 2,354 |
Loans Collectively Evaluated for Impairment | 188,766 | 189,924 |
Multi-Family [Member] | ||
Loan Receivable | 9,568 | 9,665 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 9,568 | 9,665 |
Commercial Real Estate [Member] | ||
Loan Receivable | 143,776 | 147,342 |
Loans Individually Evaluated for Impairment | 6,018 | 6,176 |
Loans Collectively Evaluated for Impairment | 137,758 | 141,166 |
Home Equity - Closed End [Member] | ||
Loan Receivable | 9,030 | 11,039 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 9,030 | 11,039 |
Home Equity [Member] | ||
Loan Receivable | 51,574 | 53,197 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 51,574 | 53,197 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loan Receivable | 35,572 | 36,021 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 35,572 | 36,021 |
Consumer [Member] | ||
Loan Receivable | 9,477 | 9,861 |
Loans Individually Evaluated for Impairment | 5 | 8 |
Loans Collectively Evaluated for Impairment | 9,472 | 9,853 |
Dealer Finance [Member] | ||
Loan Receivable | 101,162 | 97,523 |
Loans Individually Evaluated for Impairment | 216 | 226 |
Loans Collectively Evaluated for Impairment | 100,946 | 97,297 |
Credit Cards [Member] | ||
Loan Receivable | 2,919 | 3,184 |
Loans Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | $ 2,919 | $ 3,184 |
4. Allowance for Loan Losses _3
4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Construction/Land Development | $ 65,582 | $ 61,659 |
Farmland | 24,451 | 17,030 |
Real Estate | 191,102 | 192,278 |
Multi-Family | 9,568 | 9,665 |
Commercial Real Estate | 143,776 | 147,342 |
Home Equity - closed end | 9,030 | 11,039 |
Home Equity - open end | 51,574 | 53,197 |
Commercial & Industrial (Non-Real Estate) | 35,572 | 36,021 |
Consumer (excluding dealer) | 9,477 | 9,861 |
Total | 540,132 | 538,092 |
Grade 1 Minimal Risk [Member] | ||
Construction/Land Development | 0 | 0 |
Farmland | 61 | 62 |
Real Estate | 0 | 0 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 0 | 0 |
Home Equity - closed end | 0 | 0 |
Home Equity - open end | 19 | 60 |
Commercial & Industrial (Non-Real Estate) | 173 | 193 |
Consumer (excluding dealer) | 25 | 27 |
Total | 278 | 342 |
Grade 2 Modest Risk [Member] | ||
Construction/Land Development | 366 | 1,148 |
Farmland | 410 | 0 |
Real Estate | 1,634 | 1,644 |
Multi-Family | 0 | |
Commercial Real Estate | 2,168 | 2,437 |
Home Equity - closed end | 156 | 31 |
Home Equity - open end | 1,771 | 1,554 |
Commercial & Industrial (Non-Real Estate) | 1,854 | 2,291 |
Consumer (excluding dealer) | 164 | 190 |
Total | 8,523 | 9,295 |
Grade 3 Average Risk [Member] | ||
Construction/Land Development | 17,300 | 15,857 |
Farmland | 6,942 | 4,953 |
Real Estate | 54,658 | 55,429 |
Multi-Family | 2,862 | 2,895 |
Commercial Real Estate | 46,410 | 44,065 |
Home Equity - closed end | 2,795 | 3,245 |
Home Equity - open end | 18,966 | 19,464 |
Commercial & Industrial (Non-Real Estate) | 16,698 | 17,144 |
Consumer (excluding dealer) | 2,673 | 2,648 |
Total | 169,304 | 165,700 |
Grade 4 Acceptable Risk [Member] | ||
Construction/Land Development | 33,785 | 29,301 |
Farmland | 11,267 | 6,376 |
Real Estate | 105,506 | 106,387 |
Multi-Family | 6,544 | 6,604 |
Commercial Real Estate | 75,921 | 81,916 |
Home Equity - closed end | 4,076 | 5,842 |
Home Equity - open end | 26,110 | 27,347 |
Commercial & Industrial (Non-Real Estate) | 13,866 | 13,254 |
Consumer (excluding dealer) | 4,708 | 5,192 |
Total | 281,783 | 282,219 |
Grade 5 Marginally Acceptable [Member] | ||
Construction/Land Development | 9,887 | 9,353 |
Farmland | 3,329 | 3,205 |
Real Estate | 23,310 | 22,679 |
Multi-Family | 162 | 166 |
Commercial Real Estate | 12,094 | 11,564 |
Home Equity - closed end | 2,001 | 1,909 |
Home Equity - open end | 3,655 | 4,157 |
Commercial & Industrial (Non-Real Estate) | 2,346 | 2,704 |
Consumer (excluding dealer) | 1,790 | 1,800 |
Total | 58,574 | 57,537 |
Grade 6 Watch [Member] | ||
Construction/Land Development | 296 | 0 |
Farmland | 501 | 493 |
Real Estate | 1,445 | 1,531 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 2,268 | 2,286 |
Home Equity - closed end | 0 | 0 |
Home Equity - open end | 469 | 223 |
Commercial & Industrial (Non-Real Estate) | 485 | 337 |
Consumer (excluding dealer) | 64 | 0 |
Total | 5,528 | 4,870 |
Grade 7 Substandard [Member] | ||
Construction/Land Development | 3,948 | 6,000 |
Farmland | 1,941 | 1,941 |
Real Estate | 4,549 | 4,608 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 4,915 | 5,074 |
Home Equity - closed end | 2 | 12 |
Home Equity - open end | 584 | 392 |
Commercial & Industrial (Non-Real Estate) | 150 | 98 |
Consumer (excluding dealer) | 53 | 4 |
Total | 16,142 | 18,129 |
Grade 8 Doubtful [Member] | ||
Construction/Land Development | 0 | 0 |
Farmland | 0 | 0 |
Real Estate | 0 | 0 |
Multi-Family | 0 | 0 |
Commercial Real Estate | 0 | 0 |
Home Equity - closed end | 0 | 0 |
Home Equity - open end | 0 | 0 |
Commercial & Industrial (Non-Real Estate) | 0 | 0 |
Consumer (excluding dealer) | 0 | 0 |
Total | $ 0 | $ 0 |
4. Allowance for Loan Losses _4
4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Credit cards | $ 2,919 | $ 3,184 |
Dealer Finance | 101,162 | 97,523 |
Performing [Member] | ||
Credit cards | 2,916 | 3,175 |
Dealer Finance | 101,020 | 97,368 |
Non performing [Member] | ||
Credit cards | 3 | 9 |
Dealer Finance | $ 142 | $ 155 |
5. Employee Benefit Plan (Detai
5. Employee Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Benefit Plan Details Abstract | ||
Service cost | $ 185 | $ 192 |
Interest cost | 137 | 124 |
Expected return on plan assets | 202 | 231 |
Amortization of prior service cost | (4) | (4) |
Amortization of net loss | 70 | 76 |
Net periodic pension cost | $ 186 | $ 157 |
6. Fair Value (Details)
6. Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. Government sponsored enterprises | $ 7,919 | $ 7,886 |
Mortgage-backed obligations of federal agencies | 386 | 403 |
Total securities available for sale | 8,305 | 8,289 |
Derivatives (Indexed CD product) | 64 | 44 |
Fair Value Inputs Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. Government sponsored enterprises | 7,919 | 7,886 |
Mortgage-backed obligations of federal agencies | 386 | 403 |
Total securities available for sale | 8,305 | 8,289 |
Derivatives (Indexed CD product) | 64 | 44 |
Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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 |
6. Fair Value (Details 1)
6. Fair Value (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Impaired loans | $ 6,304 | $ 3,289 |
Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 6,304 | 3,289 |
Construction/Land Development [Member] | ||
Impaired loans | 2,193 | 2,684 |
Construction/Land Development [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Construction/Land Development [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Construction/Land Development [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 2,193 | 2,684 |
Real Estate [Member] | ||
Impaired loans | 412 | 415 |
Real Estate [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Real Estate [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Real Estate [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 412 | 415 |
Commercial Real Estate [Member] | ||
Impaired loans | 3,545 | |
Commercial Real Estate [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | |
Commercial Real Estate [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | |
Commercial Real Estate [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 3,545 | |
Consumer [Member] | ||
Impaired loans | 5 | 6 |
Consumer [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Consumer [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Consumer [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 5 | 6 |
Dealer Finance [Member] | ||
Impaired loans | 149 | 184 |
Dealer Finance [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | 0 | 0 |
Dealer Finance [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | 0 | 0 |
Dealer Finance [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 149 | $ 184 |
6. Fair Value (Details 2)
6. Fair Value (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Impaired Loans | $ 6,304 | $ 3,289 |
Fair Value Inputs Level 3 [Member] | ||
Impaired Loans | 6,304 | 3,289 |
Other Real Estate Owned | $ 2,174 | $ 2,443 |
Valuation Technique Impaired Loans | Discounted appraised value | Discounted appraised value |
Valuation Technique Other Real Estate Owned | Discounted appraised value | Discounted appraised value |
Significant Unobservable Inputs Impaired Loans | Discount for selling costs and marketability | Discount for selling costs and marketability |
Significant Unobservable Inputs Other Real Estate Owned | Discount for selling costs | Discount for selling costs |
Average Impaired Loans | 11.56% | 4.21% |
Average Other Real Estate Owned | 8.00% | 8.00% |
Fair Value Inputs Level 3 [Member] | Minimum [Member] | ||
Range Impaired Loans | 6.00% | 2.00% |
Range Other Real Estate Owned | 5.00% | 5.00% |
Fair Value Inputs Level 3 [Member] | Maximum [Member] | ||
Range Impaired Loans | 22.00% | 9.00% |
Range Other Real Estate Owned | 15.00% | 15.00% |
7. Disclosures About Fair Val_3
7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents, Carrying amount | $ 15,360 | $ 10,912 |
Cash and cash equivalents, Fair value | 15,360 | 10,912 |
Securities, Carrying amount | 8,428 | 8,412 |
Securities, Fair value | 8,428 | 8,412 |
Loans held for sale, Carrying Amount | 44,528 | 55,910 |
Loans held for sale, Fair Value | 44,528 | 55,910 |
Loans held for investment, net, Carrying Amount | 639,281 | 633,559 |
Loans held for investment, net, Fair Value | 622,079 | 613,717 |
Interest receivable, Carrying Amount | 2,203 | 2,078 |
Interest receivable, Fair Value | 2,203 | 2,078 |
Bank owned life insurance, Carrying Amount | 19,607 | 19,464 |
Bank owned life insurance, Fair Value | 19,607 | 19,464 |
Total Assets, Carrying Amount | 729,407 | 730,335 |
Total Assets, Fair Value | 712,205 | 710,493 |
Liabilities | ||
Deposits, Carrying Amount | 600,836 | 591,325 |
Deposits, Fair Value | 605,745 | 595,167 |
Short-term debt, Carrying Amount | 30,000 | 40,116 |
Short-term debt, Fair Value | 30,000 | 40,116 |
Long-term debt, Carrying Amount | 39,025 | 40,218 |
Long-term debt, Fair Value | 38,718 | 39,609 |
Interest payable, Carrying Amount | 348 | 348 |
Interest payable, Fair Value | 348 | 348 |
Total Liabilities, Carrying Amount | 670,209 | 672,007 |
Total Liabilities, Fair Value | 674,811 | 675,240 |
Fair Value Inputs Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents, Fair value | 15,360 | 10,912 |
Securities, Fair value | 0 | 0 |
Loans held for sale, Fair Value | 0 | 0 |
Loans held for investment, net, Fair Value | 0 | 0 |
Interest receivable, Fair Value | 0 | 0 |
Bank owned life insurance, Fair Value | 0 | 0 |
Total Assets, Fair Value | 15,360 | 10,912 |
Liabilities | ||
Deposits, Fair Value | 0 | 0 |
Short-term debt, Fair Value | 0 | 0 |
Long-term debt, Fair Value | 0 | 0 |
Interest payable, Fair Value | 0 | 0 |
Total Liabilities, Fair Value | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Assets: | ||
Cash and cash equivalents, Fair value | 0 | 0 |
Securities, Fair value | 8,428 | 8,412 |
Loans held for sale, Fair Value | 44,528 | 55,910 |
Loans held for investment, net, Fair Value | 0 | 0 |
Interest receivable, Fair Value | 2,203 | 2,078 |
Bank owned life insurance, Fair Value | 19,607 | 19,464 |
Total Assets, Fair Value | 74,766 | 85,864 |
Liabilities | ||
Deposits, Fair Value | 455,087 | 441,319 |
Short-term debt, Fair Value | 30,000 | 40,116 |
Long-term debt, Fair Value | 0 | 0 |
Interest payable, Fair Value | 348 | 348 |
Total Liabilities, Fair Value | 485,435 | 481,783 |
Fair Value Inputs Level 3 [Member] | ||
Assets: | ||
Cash and cash equivalents, Fair value | 0 | 0 |
Securities, Fair value | 0 | 0 |
Loans held for sale, Fair Value | 0 | 0 |
Loans held for investment, net, Fair Value | 622,079 | 613,717 |
Interest receivable, Fair Value | 0 | 0 |
Bank owned life insurance, Fair Value | 0 | 0 |
Total Assets, Fair Value | 622,079 | 613,717 |
Liabilities | ||
Deposits, Fair Value | 150,658 | 153,848 |
Short-term debt, Fair Value | 0 | 0 |
Long-term debt, Fair Value | 38,718 | 39,609 |
Interest payable, Fair Value | 0 | 0 |
Total Liabilities, Fair Value | $ 189,376 | $ 193,457 |
8. Troubled Debt Restructurin_2
8. Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)Integer | Mar. 31, 2018USD ($)Integer | Mar. 31, 2019USD ($)Integer | |
Number of Contracts | Integer | 2 | 10 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 5 | $ 1,141 | $ 10 |
Post-Modification Outstanding Recorded Investment | $ 5 | $ 1,141 | $ 10 |
Consumer [Member] | |||
Number of Contracts | Integer | 2 | 9 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 5 | $ 133 | $ 10 |
Post-Modification Outstanding Recorded Investment | $ 5 | $ 133 | $ 10 |
Commercial Real Estate [Member] | |||
Number of Contracts | Integer | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,008 | ||
Post-Modification Outstanding Recorded Investment | $ 1,008 |
9. Accumulated Other Comprehe_3
9. Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Unrealized Securities Gains (Losses) [Member] | ||
Beginning balance | $ (94) | $ (20) |
Change in unrealized securities gains (losses), net of tax | 26 | (115) |
Ending balance | (68) | (135) |
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 | 26 | (115) |
Ending balance | $ (3,943) | $ (4,257) |
10. Business Segments (Details)
10. Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Interest Income | $ 9,532 | $ 8,743 | |
Service charges on deposits | 386 | 366 | |
Investment services and insurance income | 151 | 197 | |
Mortgage banking income, net | 530 | 520 | |
Title insurance income | 276 | 256 | |
Expenses: | |||
Interest Expense | 1,498 | 979 | |
Provision for loan losses | 1,450 | 680 | |
Income tax expense | 79 | 379 | |
Net income (loss) | 1,264 | 1,961 | |
Total Assets | 780,037 | $ 780,253 | |
Goodwill | 2,884 | $ 2,884 | |
F&M Bank Member | |||
Interest Income | 9,501 | 8,704 | |
Service charges on deposits | 386 | 366 | |
Investment services and insurance income | 0 | 0 | |
Mortgage banking income, net | 0 | 0 | |
Title insurance income | 0 | 0 | |
Other operating income | 444 | 393 | |
Total income | 10,331 | 9,463 | |
Expenses: | |||
Interest Expense | 1,500 | 981 | |
Provision for loan losses | 1,450 | 680 | |
Salary and benefit expense | 3,290 | 3,297 | |
Other operating expenses | 2,754 | 2,176 | |
Total expense | 8,994 | 7,134 | |
Income (loss) before income taxes | 1,337 | 2,329 | |
Income tax expense | 47 | 141 | |
Net income (loss) | 1,290 | 2,188 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to F & M Bank Corp. | 1,290 | 2,188 | |
Total Assets | 763,585 | 731,512 | |
Goodwill | 2,670 | 2,670 | |
F&M Mortgage | |||
Interest Income | 25 | 29 | |
Service charges on deposits | 0 | 0 | |
Investment services and insurance income | 0 | 0 | |
Mortgage banking income, net | 530 | 520 | |
Title insurance income | 0 | 61 | |
Other operating income | 0 | 1 | |
Total income | 555 | 611 | |
Expenses: | |||
Interest Expense | 26 | 23 | |
Provision for loan losses | 0 | 0 | |
Salary and benefit expense | 430 | 414 | |
Other operating expenses | 173 | 212 | |
Total expense | 629 | 649 | |
Income (loss) before income taxes | (74) | (38) | |
Income tax expense | 0 | 0 | |
Net income (loss) | (74) | (38) | |
Net (income) loss attributable to noncontrolling interest | (22) | 11 | |
Net income attributable to F & M Bank Corp. | (52) | (27) | |
Total Assets | 6,744 | 8,552 | |
Goodwill | 47 | 65 | |
TEB Life/FMFS | |||
Interest Income | 34 | 35 | |
Service charges on deposits | 0 | 0 | |
Investment services and insurance income | 152 | 203 | |
Mortgage banking income, net | 0 | 0 | |
Title insurance income | 0 | 0 | |
Other operating income | 0 | 0 | |
Total income | 186 | 238 | |
Expenses: | |||
Interest Expense | 0 | 0 | |
Provision for loan losses | 0 | 0 | |
Salary and benefit expense | 81 | 146 | |
Other operating expenses | 13 | 10 | |
Total expense | 94 | 156 | |
Income (loss) before income taxes | 92 | 82 | |
Income tax expense | 13 | 15 | |
Net income (loss) | 79 | 67 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to F & M Bank Corp. | 79 | 67 | |
Total Assets | 7,487 | 6,972 | |
Goodwill | 0 | 0 | |
VS Title | |||
Interest Income | 0 | 0 | |
Service charges on deposits | 0 | 0 | |
Investment services and insurance income | 0 | 0 | |
Mortgage banking income, net | 0 | 0 | |
Title insurance income | 276 | 195 | |
Other operating income | 0 | 0 | |
Total income | 276 | 195 | |
Expenses: | |||
Interest Expense | 0 | 0 | |
Provision for loan losses | 0 | 0 | |
Salary and benefit expense | 222 | 166 | |
Other operating expenses | 62 | 48 | |
Total expense | 284 | 214 | |
Income (loss) before income taxes | (8) | (19) | |
Income tax expense | 0 | 0 | |
Net income (loss) | (8) | (19) | |
Net (income) loss attributable to noncontrolling interest | (2) | 0 | |
Net income attributable to F & M Bank Corp. | (6) | (19) | |
Total Assets | 769 | 574 | |
Goodwill | 3 | 57 | |
Parent Only | |||
Interest Income | 0 | 0 | |
Service charges on deposits | 0 | 0 | |
Investment services and insurance income | 0 | 0 | |
Mortgage banking income, net | 0 | 0 | |
Title insurance income | 0 | 0 | |
Other operating income | 2 | 0 | |
Total income | 2 | 0 | |
Expenses: | |||
Interest Expense | 0 | 0 | |
Provision for loan losses | 0 | 0 | |
Salary and benefit expense | 0 | 0 | |
Other operating expenses | 6 | 14 | |
Total expense | 6 | 14 | |
Income (loss) before income taxes | (4) | (14) | |
Income tax expense | 19 | 223 | |
Net income (loss) | (23) | (237) | |
Net (income) loss attributable to noncontrolling interest | 2 | 0 | |
Net income attributable to F & M Bank Corp. | (25) | (237) | |
Total Assets | 91,635 | 91,591 | |
Goodwill | 164 | 164 | |
Eliminations | |||
Interest Income | (28) | (25) | |
Service charges on deposits | 0 | 0 | |
Investment services and insurance income | (1) | (6) | |
Mortgage banking income, net | 0 | 0 | |
Title insurance income | 0 | 0 | |
Other operating income | 0 | 0 | |
Total income | (29) | (31) | |
Expenses: | |||
Interest Expense | (28) | (25) | |
Provision for loan losses | 0 | 0 | |
Salary and benefit expense | 0 | 0 | |
Other operating expenses | (1) | (6) | |
Total expense | (29) | (31) | |
Income (loss) before income taxes | 0 | 0 | |
Income tax expense | 0 | 0 | |
Net income (loss) | 0 | 0 | |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | |
Net income attributable to F & M Bank Corp. | 0 | 0 | |
Total Assets | (90,183) | (110,213) | |
Goodwill | 0 | 0 | |
F&M Bank Corp Consolidated | |||
Interest Income | 9,532 | 8,743 | |
Service charges on deposits | 386 | 366 | |
Investment services and insurance income | 151 | 197 | |
Mortgage banking income, net | 530 | 520 | |
Title insurance income | 276 | 256 | |
Other operating income | 446 | 394 | |
Total income | 11,321 | 10,476 | |
Expenses: | |||
Interest Expense | 1,498 | 979 | |
Provision for loan losses | 1,450 | 680 | |
Salary and benefit expense | 4,023 | 4,023 | |
Other operating expenses | 3,007 | 2,454 | |
Total expense | 9,978 | 8,136 | |
Income (loss) before income taxes | 1,343 | 2,340 | |
Income tax expense | 79 | 379 | |
Net income (loss) | 1,264 | 1,961 | |
Net (income) loss attributable to noncontrolling interest | (22) | 11 | |
Net income attributable to F & M Bank Corp. | 1,286 | 1,972 | |
Total Assets | 780,037 | 728,988 | |
Goodwill | $ 2,884 | $ 2,956 |
11. Debt (Details Narrative)
11. Debt (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Details Narrative Abstract | ||
Short term debt | $ 30,000 | $ 40,116 |
Weighted average interest rate | 1.96% | 1.96% |
Debt obligations | $ 39,018 | $ 40,125 |
Note payable balance | $ 7 | $ 8 |
12. Revenue Recognition (Detail
12. Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total noninterest income | $ 1,789 | $ 1,733 |
Service Charges on Deposits | ||
Total noninterest income | 386 | 366 |
Investment Services and Insurance Income | ||
Total noninterest income | 681 | 717 |
Title Insurance Income | ||
Total noninterest income | 276 | 256 |
ATM and check card fees | ||
Total noninterest income | 369 | 347 |
Other | ||
Total noninterest income | 127 | 116 |
Noninterest Income (in-scope of Topic 606) | ||
Total noninterest income | 1,839 | 1,802 |
Noninterest Income (out-of-scope of Topic 606) | ||
Total noninterest income | $ (50) | $ (69) |
13. Leases (Details)
13. Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases Details Abstract | |
Lease liabilities | $ 1,019 |
Right-of-use assets | $ 1,033 |
Weighted average remaining lease term | 8 years 6 months 4 days |
Weighted average discount rate | 3.51% |
13. Leases (Details 1)
13. Leases (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases Details 1Abstract | |
Operating lease cost | $ 32 |
Total lease cost | 32 |
Cash paid for amounts included in the measurement of lease liabilities | $ 38 |
13. Leases (Details 2)
13. Leases (Details 2) $ in Thousands | Mar. 31, 2019USD ($) |
Leases Details 2Abstract | |
Nine months ending December 31, 2019 | $ 113 |
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 | 1,268 |
Discount | (249) |
Lease liabilities | $ 1,019 |