Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | F&M BANK CORP | |
Entity Central Index Key | 0000740806 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 3,453,393 | |
Document Quarterly Report | true | |
Entity File Number | 000-13273 | |
Entity Incorporation State Country Code | VA | |
Entity Tax Identification Number | 54-1280811 | |
Entity Address Address Line 1 | P. O. Box 1111 | |
Entity Address City Or Town | Timberville | |
Entity Address State Or Province | VA | |
Entity Address Postal Zip Code | 22853 | |
City Area Code | 540 | |
Local Phone Number | 896-8941 | |
Security 12b Title | Common Stock, par value ‑ $5 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 13,556 | $ 8,516 |
Money market funds and interest-bearing deposits in other banks | 268 | 2,938 |
Federal funds sold | 3,430 | 76,667 |
Cash and cash equivalents | 17,254 | 88,121 |
Securities: | ||
Held to maturity, at amortized cost - fair value of $125 in 2022 and 2021, respectively | 125 | 125 |
Available for sale, at fair value | 446,823 | 403,882 |
Other investments | 9,688 | 9,210 |
Loans held for sale, at fair value | 5,449 | 4,887 |
Loans held for investment, net of deferred fees and costs | 690,497 | 662,421 |
Less: allowance for loan losses | (7,798) | (7,748) |
Net loans held for investment | 682,699 | 654,673 |
Bank premises and equipment, net | 18,901 | 17,063 |
Bank premises held for sale | 300 | 300 |
Interest receivable | 3,567 | 3,117 |
Goodwill | 3,082 | 3,082 |
Bank owned life insurance | 23,210 | 22,878 |
Other real estate owned | 197 | 0 |
Other assets | 20,257 | 12,004 |
Total Assets | 1,231,552 | 1,219,342 |
Deposits: | ||
Noninterest bearing | 291,728 | 280,993 |
Interest bearing | 808,482 | 799,302 |
Total deposits | 1,100,210 | 1,080,295 |
Short-term debt | 30,000 | 0 |
Long-term debt | 11,788 | 21,772 |
Other liabilities | 17,604 | 16,819 |
Total liabilities | 1,159,602 | 1,118,886 |
Stockholders' Equity | ||
Common stock, $5 par value, 6,000,000 shares authorized, 200,000 designated, 3,453,393 and 3,430,175 shares issued and outstanding (29,238 and 15,869 unvested restricted shares) | 17,121 | 17,071 |
Additional paid in capital - common stock | 10,351 | 10,127 |
Retained earnings | 80,878 | 78,350 |
Accumulated other comprehensive loss | (36,400) | (5,092) |
Total stockholders' equity | 71,950 | 100,456 |
Total liabilities and stockholders' equity | $ 1,231,552 | $ 1,219,342 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Held To Maturity - Fair Value | $ 125,000 | $ 125,000 |
Common Stock, Shares Par Value | $ 5 | $ 5 |
Common Stock, Shares Authorized | 6,000,000 | 6,000,000 |
Common Stock, Shares Designated | 200,000 | 200,000 |
Common Stock, Shares Issued | 3,453,393 | 3,430,175 |
Common Stock, Shares Outstanding | 3,453,393 | 3,430,175 |
Unvested Restricted Shares | 29,238 | 15,869 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest and Dividend income | ||||
Interest and fees on loans held for investment | $ 7,993 | $ 8,217 | $ 15,503 | $ 16,387 |
Interest and fees on loans held for sale | 32 | 37 | 61 | 137 |
Interest from money market funds and federal funds sold | 14 | 29 | 39 | 44 |
Interest on debt securities | 1,970 | 536 | 3,467 | 997 |
Total interest and dividend income | 10,009 | 8,819 | 19,070 | 17,565 |
Interest expense | ||||
Total interest on deposits | 837 | 818 | 1,682 | 1,613 |
Interest from short-term debt | 46 | 0 | 46 | 0 |
Interest from long-term debt | 124 | 251 | 283 | 524 |
Total interest expense | 1,007 | 1,069 | 2,011 | 2,137 |
Net interest income | 9,002 | 7,750 | 17,059 | 15,428 |
Provision for (Recovery of) Loan Losses | 600 | (1,250) | 150 | (1,975) |
Net Interest Income After Provision for (Recovery of) Loan Losses | 8,402 | 9,000 | 16,909 | 17,403 |
Noninterest income | ||||
Service charges on deposit accounts | 274 | 254 | 581 | 539 |
Investment services and insurance income, net | 198 | 180 | 449 | 527 |
Mortgage banking income, net | 637 | 1,027 | 1,379 | 2,699 |
ATM and check card fees Noninterest income | 632 | 600 | 1,195 | 1,120 |
Title insurance income | 366 | 595 | 839 | 1,051 |
Income on bank owned life insurance | 173 | 165 | 344 | 333 |
Low income housing partnership losses | (204) | (216) | (408) | (431) |
Net investment securities (losses) | (97) | 0 | (97) | 0 |
Other operating income | 292 | 481 | 472 | 603 |
Total noninterest income | 2,271 | 3,086 | 4,754 | 6,441 |
Noninterest expense | ||||
Salaries | 3,965 | 3,589 | 7,602 | 6,885 |
Employee benefits | 1,137 | 1,056 | 2,425 | 2,272 |
Occupancy expense | 346 | 343 | 686 | 638 |
Equipment expense | 314 | 319 | 600 | 596 |
FDIC insurance assessment | 165 | 105 | 281 | 204 |
Advertising expense | 228 | 197 | 406 | 333 |
Legal and professional fees | 215 | 246 | 423 | 445 |
ATM and check card fees Noninterest expense | 335 | 294 | 633 | 551 |
Telecommunication and data processing expense | 685 | 582 | 1,586 | 1,122 |
Directors fees | 129 | 112 | 293 | 258 |
Bank franchise tax | 158 | 179 | 332 | 352 |
Impairment on long lived assets | 0 | 171 | 0 | 171 |
Other operating expenses | 1,076 | 1,251 | 2,036 | 2,303 |
Total noninterest expense | 8,753 | 8,444 | 17,303 | 16,130 |
Income before income taxes | 1,920 | 3,642 | 4,360 | 7,714 |
Income tax expense | 131 | 422 | 43 | 693 |
Net Income | 1,789 | 3,220 | 4,317 | 7,021 |
Dividends paid/accumulated on preferred stock | 0 | 66 | 0 | 131 |
Net income available to common stockholders | $ 1,789 | $ 3,154 | $ 4,317 | $ 6,890 |
Per Common Share Data | ||||
Net income - basic | $ 0.51 | $ 0.98 | $ 1.25 | $ 2.15 |
Net income - diluted | 0.51 | 0.93 | 1.25 | 2.04 |
Cash dividends on common stock | $ 0.26 | $ 0.26 | $ 0.52 | $ 0.52 |
Weighted average common shares outstanding - basic | 3,452,711 | 3,207,978 | 3,443,850 | 3,206,534 |
Weighted average common shares outstanding - diluted | 3,452,711 | 3,413,305 | 3,443,850 | 3,434,652 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) | ||||
Net Income | $ 1,789 | $ 3,220 | $ 4,317 | $ 7,021 |
Other comprehensive (loss) income: | ||||
Unrealized holding (losses) gains on available-for sale securities | (21,678) | 353 | (39,727) | (1,057) |
Tax effect | 4,552 | (74) | 8,342 | 222 |
Unrealized holding (losses) gains, net of tax | (17,126) | 279 | (31,385) | (835) |
Reclassifications adjustment for losses included in net income | 97 | 0 | 97 | 0 |
Tax effect after adjustment | 20 | 0 | 20 | 0 |
Realized losses on sale of available-for sale securities, net | 77 | 0 | 77 | 0 |
Total other comprehensive (loss) income | (17,049) | 279 | (31,308) | (835) |
Total comprehensive income | $ (15,260) | $ 3,499 | $ (26,991) | $ 6,186 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Stockholders Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, amount at Dec. 31, 2020 | $ 95,629 | $ 4,558 | $ 16,017 | $ 6,866 | $ 71,205 | $ (3,017) |
Net Income | 7,021 | 0 | 0 | 0 | 7,021 | 0 |
Other comprehensive income (loss) | (835) | 0 | 0 | 0 | 0 | (835) |
Dividends on preferred stock | (131) | 0 | 0 | 0 | (131) | 0 |
Dividends on common stock | (1,670) | 0 | 0 | 0 | (1,670) | 0 |
Common stock issued | 127 | 0 | 23 | 104 | 0 | 0 |
Common stock issued for Stock-based Compensation | 36 | 0 | 7 | 29 | 0 | 0 |
Stock-based compensation expense | 35 | 0 | 0 | 35 | 0 | 0 |
Balance, amount at Jun. 30, 2021 | 100,212 | 4,558 | 16,047 | 7,034 | 76,425 | (3,852) |
Balance, amount at Mar. 31, 2021 | 97,527 | 4,558 | 16,036 | 6,956 | 74,108 | (4,131) |
Net Income | 3,220 | 0 | 0 | 0 | 3,220 | 0 |
Other comprehensive income (loss) | 279 | 0 | 0 | 0 | 0 | 279 |
Dividends on preferred stock | (66) | 0 | 0 | 0 | (66) | 0 |
Dividends on common stock | (837) | 0 | 0 | 0 | (837) | 0 |
Common stock issued | 63 | 0 | 11 | 52 | 0 | 0 |
Stock-based compensation expense | 26 | 0 | 0 | 26 | 0 | 0 |
Balance, amount at Jun. 30, 2021 | 100,212 | 4,558 | 16,047 | 7,034 | 76,425 | (3,852) |
Balance, amount at Dec. 31, 2021 | 100,456 | 0 | 17,071 | 10,127 | 78,350 | (5,092) |
Net Income | 4,317 | 0 | 0 | 0 | 4,317 | 0 |
Other comprehensive income (loss) | (31,308) | 0 | 0 | 0 | 0 | (31,308) |
Dividends on common stock | (1,789) | 0 | 0 | 0 | (1,789) | 0 |
Common stock issued | 144 | 0 | 24 | 120 | 0 | 0 |
Common stock issued for Stock-based Compensation | 56 | 0 | 26 | 30 | 0 | 0 |
Stock-based compensation expense | 74 | 0 | 0 | 74 | 0 | 0 |
Balance, amount at Jun. 30, 2022 | 71,950 | 0 | 17,121 | 10,351 | 80,878 | (36,400) |
Balance, amount at Mar. 31, 2022 | 87,985 | 0 | 17,110 | 10,240 | 79,986 | (19,351) |
Net Income | 1,789 | 0 | 0 | 0 | 1,789 | 0 |
Other comprehensive income (loss) | (17,049) | 0 | 0 | 0 | 0 | (17,049) |
Dividends on common stock | (897) | 0 | 0 | 0 | (897) | 0 |
Common stock issued | 64 | 0 | 11 | 53 | 0 | 0 |
Stock-based compensation expense | 58 | 0 | 0 | 58 | 0 | 0 |
Balance, amount at Jun. 30, 2022 | $ 71,950 | $ 0 | $ 17,121 | $ 10,351 | $ 80,878 | $ (36,400) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 4,317 | $ 7,021 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 562 | 595 |
Amortization of intangibles | 19 | 33 |
Amortization of securities | 13,690 | 495 |
Proceeds from loans held for sale originated | 76,909 | 121,553 |
Loans held for sale originated | (76,266) | (112,965) |
Gain on sale of loans held for sale originated | (1,205) | (3,136) |
Provision for (Recovery of) loan losses | 150 | (1,975) |
(Increase) decrease in interest receivable | (450) | 250 |
(Increase) in deferred taxes | (253) | (189) |
(Decrease) in taxes payable | 0 | (469) |
Decrease in other assets | 42 | 1,159 |
Increase (decrease) in accrued expenses | 1,059 | (505) |
Amortization of limited partnership investments | 408 | 443 |
Income from life insurance investment | (345) | (333) |
Loss on the sale of investment securities | 97 | 0 |
(Gain) on the sale of fixed assets | (10) | 0 |
Stock-based compensation expense | 74 | 35 |
Loss on sale and valuation adjustments for other real estate owned and bank premises held for sale | 0 | 171 |
Net cash provided by operating activities | 18,798 | 12,183 |
Cash flows from investing activities | ||
Purchase of investments available for sale and other investments | (108,057) | (92,006) |
Proceeds from maturity of investments available for sale | 3,000 | 8,699 |
Proceeds from the sale of investments available for sale | 8,699 | 0 |
(Investment in) proceeds from the redemption of restricted stock, net | (886) | 395 |
Net (increase) decrease in loans held for investment | (28,373) | 600 |
Net decrease in loans held for sale participations | 0 | 44,372 |
Proceeds from the sale of fixed assets | 27 | 0 |
Net purchase of property and equipment | (2,417) | (288) |
Proceeds from life insurance benefits | 0 | 421 |
Cash received in branch acquisition (net of cash paid) | 0 | 13,946 |
Net cash (used in) investing activities | (128,007) | (23,861) |
Cash flows from financing activities | ||
Net change in deposits | 19,915 | 122,816 |
Net change in short-term debt | 30,000 | 0 |
Dividends paid in cash | (1,789) | (1,801) |
Proceeds from issuance of common stock | 200 | 198 |
Amortization of debt issuance costs | 16 | 16 |
Repayments of long-term debt | (10,000) | (1,909) |
Net cash provided by financing activities | 38,342 | 119,285 |
Net (decrease) increase in Cash and Cash Equivalents | (70,867) | 107,607 |
Cash and cash equivalents, beginning of period | 88,121 | 78,408 |
Cash and cash equivalents, end of period | 17,254 | 186,015 |
Supplemental Cash Flow information: | ||
Cash paid for: Interest | 2,162 | 2,187 |
Taxes | 0 | 1,537 |
Supplemental non-cash disclosures: | ||
Change in unrealized (loss) on securities available for sale | (39,630) | (1,057) |
Transfer from loans to other real estate owned | 197 | 0 |
Tangible assets acquired (net of cash received) | 0 | 61 |
Identifiable intangible assets acquired | 0 | 73 |
Liabilities assumed | $ 0 | $ 14,044 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Note 1. Summary Of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), and VSTitle, LLC and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021 (the “2021 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 in the counties of Rockingham, Shenandoah, and Augusta, and the cities of Harrisonburg, Staunton, Waynesboro and Winchester 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 Company, Farmers & Merchants Financial Services, Inc. (“FMFS”), F&M Mortgage, and VSTitle, LLC (“VST”). Basis of Presentation The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect 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 and fair value. 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. Risk and Uncertainties The COVID-19 pandemic has had a disruptive impact on the U.S. and global economy since the first quarter of 2020. Since the pandemic is ongoing and dynamic, there are many uncertainties on the potential impacts to our customers, employees and vendors; as well as the economy as a whole. The Company carefully monitors economic impacts attributable to the COVID-19 pandemic and the potential impacts on the Company’s loan portfolio and their borrowers ability to repay their loans. As the COVID-19 pandemic continues, its magnitude and duration remain uncertain. The risks and uncertainties resulting from the pandemic may adversely the Company’s future operational and financial performance; however, these remain highly uncertain and cannot be predicted. Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income. Earnings per Share Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. 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 common share calculation. All of the Company’s outstanding preferred stock was redeemed by the Company for cash or converted to common stock during the fourth quarter of 2021. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period, including voting rights and sharing in nonforfeitable dividends. 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 (dollars in thousands): For the Six months ended For the Three months ended For the Six months ended For the Three months ended June 30, 2022 June 30, 2022 June 30, 2021 June 30, 2021 Earnings available to common stockholders: Net income $ 4,317 $ 1,789 $ 7,021 $ 3,220 Preferred stock dividends - - 131 66 Net income available to common stockholders $ 4,317 $ 1,789 $ 6,890 $ 3,154 The following table shows the effect of dilutive preferred stock conversion on the Company’s earnings per share for the periods indicated (dollars in thousands): Six months ended June 30, 2022 Six months ended June 30, 2021 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 4,317 3,443,850 $ 1.25 $ 6,890 3,206,534 $ 2.15 Effect of Dilutive Securities: Convertible Preferred Stock - - - 131 228,118 (0.11 ) Diluted EPS $ 4,317 3,443,850 $ 1.25 $ 7,021 3,434,652 $ 2.04 Three months ended June 30, 2022 Three months ended June 30, 2021 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 1,789 3,452,711 $ 0.51 $ 3,154 3,207,978 $ 0.98 Effect of Dilutive Securities: Convertible Preferred Stock - - - 66 205,327 (0.05 ) Diluted EPS $ 1,789 3,452,711 $ 0.51 $ 3,220 3,413,305 $ 0.93 |
Investment securities
Investment securities | 6 Months Ended |
Jun. 30, 2022 | |
Investment securities | |
Note 2. Investment Securities | Note 2. Investment Securities Investment securities available for sale are carried in the consolidated balance sheets at their approximate fair value. Investment securities held to maturity are carried in the consolidated balance sheets at their amortized cost at June 30, 2022 and December 31, 2021 are as follows (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2022 U. S. Treasuries $ 125 $ - $ - $ 125 December 31, 2021 U. S. Treasuries $ 125 $ - $ - $ 125 The amortized cost and fair value of securities available for sale are as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2022 U.S. Government treasuries $ 49,778 $ - $ 3,041 $ 46,737 U.S. Government sponsored enterprises 168,464 - 12,315 156,149 Securities issued by States and political subdivisions in the U.S. 47,416 - 3,730 43,686 Mortgage-backed obligations of federal agencies 192,525 106 21,601 171,030 Corporate debt security 30,550 640 1,969 29,221 Total Securities Available for Sale $ 488,733 $ 746 $ 42,656 $ 446,823 December 31, 2021 U.S. Government treasuries $ 29,847 $ - $ 365 $ 29,482 U.S. Government sponsored enterprises 134,466 - 752 133,714 Securities issued by States and political subdivisions of the U.S. 34,078 406 147 34,337 Mortgage-backed obligations of federal agencies 185,216 522 2,091 183,647 Corporate debt securities 22,555 372 225 22,702 Total Securities Available for Sale $ 406,162 $ 1,300 $ 3,580 $ 403,882 The amortized cost and fair value of securities at June 30, 2022, by contractual maturity are shown below (dollars in thousands). 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 Cost Value Cost Value Due in one year or less $ 125 $ 125 $ 4,833 $ 4,789 Due after one year through five years - - 210,477 198,311 Due after five years - - 107,718 97,741 Due after ten years - - 165,705 145,982 Total $ 125 $ 125 $ 488,733 $ 446,823 The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, 2022 Six Month Ended June 30, 2022 Realized gains (losses): Gross realized gains $ - $ - Gross realized losses (97 ) - Net realized (losses) $ (97 ) $ - Proceeds from sales of securities $ 8,699 $ - Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Realized gains (losses): Gross realized gains $ - $ - Gross realized (losses) - - Net realized (losses) $ - $ - Proceeds from sales of securities $ - $ - Securities held that are U.S. Agency, Treasury, Government Sponsored Entities and Agency MBS carry an implicit government guarantee and are not subject to other than temporary impairment evaluation. Other securities were reviewed for impairment. The securities issued by States and political subdivisions in the U.S. were in an unrealized loss position for less than 12 months. Two bank subordinated debt offerings were in a loss position for 12 consecutive months and totaled $1,132 thousand. The pricing services tend to not be exact on these offerings because of the marketability of the offering. The Company reviews the relevant ratios on each subordinated debt holding quarterly. Because management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions, no declines are currently deemed to be other than temporary. A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of June 30, 2022 and December 31, 2021 were as follows: Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2022 U.S. Government treasuries $ 38,025 $ 1,843 $ 8,711 $ 1,198 $ 46,736 $ 3,041 U.S. Government sponsored enterprises 134,269 9,201 21,880 3,114 156,149 12,315 Securities issued by States and political subdivisions in the U.S. 43,686 3,730 - - 43,686 3,730 Mortgage-backed obligations of federal agencies 131,930 17,112 34,388 4,489 166,318 21,601 Corporate debt security 19,749 1,851 1,132 118 20,881 1,969 Total $ 367,659 $ 33,737 $ 66,111 $ 8,919 $ 433,770 $ 42,656 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2021 U.S. Government treasuries $ 29,481 $ 365 $ - $ - $ 29,481 $ 365 U.S. Government sponsored enterprises 93,714 752 - - 93,714 752 Securities issued by State and political subdivisions in the U.S. 13,308 147 - - 13,308 147 Mortgage-backed obligations of federal agencies 126,501 1,871 10,074 220 136,575 2,091 Corporate debt security 8,825 225 - - 8,825 225 Total $ 271,829 $ 3,360 $ 10,074 $ 220 $ 281,903 $ 3,850 As of June 30, 2022, other investments consist of investments in thirteen low-income housing and historic equity partnerships (carrying basis of $6,354), stock in the Federal Home Loan Bank (carrying basis $1,744) and various other investments (carrying basis $1,590). The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted as to sales. The fair values of these securities are estimated to approximate their carrying value as of June 30, 2022. At June 30, 2022, the Company was committed to invest an additional $961 in four 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 other liabilities on the consolidated balance sheet. The Company does not have any pledged securities. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2022 | |
Loans | |
Note 3. Loans | Note 3. Loans Loans held for investment outstanding at June 30, 2022 and December 31, 2021 are summarized as follows (in thousands): 2022 2021 Construction/Land Development $ 71,212 $ 75,236 Farmland 72,573 66,344 Real Estate 133,747 139,552 Multi-Family 8,548 4,887 Commercial Real Estate 172,680 163,564 Home Equity – closed end 5,524 6,262 Home Equity – open end 44,267 44,247 Commercial & Industrial – Non-Real Estate 50,689 44,224 Consumer 8,852 8,036 Dealer Finance 119,758 107,346 Credit Cards 3,051 3,000 Gross loans 690,901 662,698 Less: Deferred loan fees, net of costs (404 ) (277 ) Total $ 690,497 $ 662,421 The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $161,729 and $163,326 as of June 30, 2022 and December 31, 2021, respectively. The Company maintains a blanket lien on certain loans in its residential real estate, commercial and home equity portfolios. Loans held for sale, at fair value consists of loans originated by F&M Mortgage for sale in the secondary market. The volume of loans fluctuates due to changes in secondary market rates, which affects demand for mortgage loans. Loans held for sale as of June 30, 2022 and December 31, 2021 were $5,449 and $4,887, respectively. The following is a summary of information pertaining to impaired loans (dollars in thousand): June 30, 2022 December 31, 2021 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment (1) Balance Allowance Investment (1) Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 468 $ 468 $ - $ 645 $ 645 $ - Farmland 2,165 2,165 - 2,286 2,286 - Real Estate 2,331 2,331 - 2,748 2,748 - Multi-Family - - - - - - Commercial Real Estate 8,058 8,058 - 8,494 8,494 - Home Equity – closed end - - - 147 147 - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - 5 5 - Credit cards - - - - - - Dealer Finance 12 12 - 12 12 - 13,034 13,034 - 14,337 14,337 - Impaired loans with a valuation allowance Construction/Land Development - - - - - - Farmland - - - - - - Real Estate 1,546 1,546 34 1,172 1,172 119 Multi-Family - - - - - - Commercial Real Estate 2,527 2,527 446 6,004 6,004 603 Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 77 77 3 95 95 14 4,150 4,150 483 7,271 7,271 736 Total impaired loans $ 17,184 $ 17,184 $ 483 $ 21,608 $ 21,608 $ 736 1 The following is a summary of the average investment and interest income recognized for impaired loans (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 553 $ 4 $ 1,280 $ 3 $ 601 $ 10 $ 1,222 $ 16 Farmland 2,190 10 1,191 108 2,268 80 1,191 108 Real Estate 2,358 32 6,287 (52 ) 2,654 65 3,985 87 Multi-Family - - - - - - - - Commercial Real Estate 9,545 (31 ) 9,940 102 8,291 155 5,558 123 Home Equity – closed end - - 674 6 81 - 684 11 Home Equity – open end - - - - - - - - Commercial & Industrial – Non-Real Estate - - 4 - - - 7 - Consumer - - - - - - - - Credit Cards - - - - - - - - Dealer Finance 14 1 15 1 14 1 17 1 14,660 16 19,391 168 13,909 311 12,664 346 Impaired loans with a valuation allowance: Construction/Land Development $ - $ - $ - $ - $ - $ - $ 131 $ - Farmland - - 839 (59 ) - - 876 - Real Estate 1,521 18 1,621 22 1,363 34 5,456 32 Multi-Family - - - - - - - - Commercial Real Estate 2,885 25 6,382 25 4,281 67 4,973 91 Home Equity – closed end - - - - - - - - Home Equity – open end - - - - - - 76 - Commercial & Industrial – Non-Real Estate - - - - - - - - Consumer - - - - - - 1 - Credit Card - - - - - - - - Dealer Finance 66 3 124 2 90 4 135 5 4,472 46 8,966 (10 ) 5,734 105 11,648 128 Total Impaired Loans $ 19,132 $ 62 $ 28,357 $ 158 $ 19,643 $ 416 $ 24,312 $ 474 The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of June 30, 2022 and December 31, 2021: June 30, 2022 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 Construction/Land Development $ 521 $ 28 $ - $ 549 $ 70,663 $ 71,212 $ 28 $ - Farmland - 332 - 332 72,241 72,573 1,218 - Real Estate 1,636 34 142 1,812 131,935 133,747 402 - Multi-Family - - - - 8,548 8,548 - - Commercial Real Estate - - 108 108 172,572 172,680 108 - Home Equity – closed end - 105 - 105 5,419 5,524 - - Home Equity – open end 431 167 - 598 43,669 44,267 - - Commercial & Industrial – Non- Real Estate 180 22 41 243 50,446 50,689 - 41 Consumer 23 - - 23 8,829 8,852 - - Dealer Finance 572 125 95 792 118,966 119,758 95 - Credit Cards 12 20 13 45 3,006 3,051 - 13 Less: Deferred loan fees, net of costs - - - - (404 ) (404 ) - - Total $ 3,375 $ 833 $ 399 $ 4,584 $ 685,890 $ 690,497 $ 1,851 $ 55 December 31, 2021 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 Construction/Land Development $ 360 $ 41 $ 38 $ 439 $ 74,797 $ 75,236 $ 302 $ - Farmland - - - - 66,344 66,344 1,320 - Real Estate 1,254 89 395 1,738 137,814 139,552 827 - Multi-Family - - - - 4,887 4,887 - - Commercial Real Estate - - 108 108 163,456 163,564 2,975 - Home Equity – closed end 53 - - 53 6,209 6,262 - - Home Equity – open end 471 216 - 687 43,560 44,247 - - Commercial & Industrial – Non- Real Estate 35 1 43 79 44,145 44,224 - 43 Consumer 9 67 - 76 7,960 8,036 1 - Dealer Finance 694 91 16 801 106,545 107,346 40 - Credit Cards 16 - - 16 2,984 3,000 - - Less: Deferred loan fees, net of costs - - - - (277 ) (277 ) - - Total $ 2,892 $ 505 $ 600 $ 3,997 $ 658,424 $ 662,421 $ 5,465 $ 43 On June 30, 2022, other real estate owned included $197 of foreclosed residential real estate and on December 31, 2021, other real estate owned did not include any foreclosed residential real estate. The Company has $122 thousand of consumer mortgages for which foreclosure was in process on June 30, 2022. Nonaccrual loans on June 30, 2022 would have earned approximately $28 thousand in interest income for the quarter had they been accruing loans. |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2022 | |
Allowance for Loan Losses | |
Note 4. Allowance For Loan Losses | Note 4. Allowance for Loan Losses A summary of changes in the allowance for loan losses (dollars in thousands) for June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 977 $ - $ - $ (97 ) $ 880 $ - $ 880 Farmland 448 - - 71 519 - 519 Real Estate 1,162 17 - (14 ) 1,131 34 1,097 Multi-Family 29 - - 25 54 - 54 Commercial Real Estate 2,205 - - 98 2,303 446 1,857 Home Equity – closed end 41 - - (2 ) 39 - 39 Home Equity – open end 407 - 130 (162 ) 375 - 375 Commercial & Industrial – Non-Real Estate 288 36 32 100 384 - 384 Consumer 520 24 14 (148 ) 362 - 362 Dealer Finance 1,601 523 337 272 1,687 3 1,684 Credit Cards 70 21 8 7 64 - 64 Total $ 7,748 $ 621 $ 521 $ 150 $ 7,798 $ 483 $ 7,315 December 31, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 1,249 $ - $ 307 $ (579 ) $ 977 $ - $ 977 Farmland 731 - - (283 ) 448 - 448 Real Estate 1,624 - 76 (538 ) 1,162 119 1,043 Multi-Family 54 - - (25 ) 29 - 29 Commercial Real Estate 3,662 - 19 (1,476 ) 2,205 603 1,602 Home Equity – closed end 55 - - (14 ) 41 - 41 Home Equity – open end 463 - 13 (69 ) 407 - 407 Commercial & Industrial – Non-Real Estate 363 40 37 (72 ) 288 - 288 Consumer 521 33 24 8 520 - 520 Dealer Finance 1,674 1,038 754 211 1,601 14 1,587 Credit Cards 79 54 29 16 70 - 70 Total $ 10,475 $ 1,165 $ 1,259 $ (2,821 ) $ 7,748 $ 736 $ 7,012 The following table presents the recorded investment in loans (dollars in thousands) based on impairment method as of June 30, 2022 and December 31, 2021: June 30, 2022 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 71,212 $ 468 $ 70,744 Farmland 72,573 2,165 70,408 Real Estate 133,747 3,877 129,870 Multi-Family 8,548 - 8,548 Commercial Real Estate 172,680 10,585 162,095 Home Equity – closed end 5,524 - 5,524 Home Equity –open end 44,267 - 44,267 Commercial & Industrial – Non-Real Estate 50,689 - 50,689 Consumer 8,852 - 8,852 Dealer Finance 119,758 89 119,669 Credit Cards 3,051 - 3,051 Gross loans 690,901 17,184 673,717 Less: Deferred loan fees, net of costs (404 ) - (404 ) Total $ 690,497 $ 17,184 $ 673,313 December 31, 2021 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 75,236 $ 645 $ 74,591 Farmland 66,344 2,286 64,058 Real Estate 139,552 3,920 135,632 Multi-Family 4,887 - 4,887 Commercial Real Estate 163,564 14,498 149,066 Home Equity – closed end 6,262 147 6,115 Home Equity –open end 44,247 - 44,247 Commercial & Industrial – Non-Real Estate 44,224 - 44,224 Consumer 8,036 5 8,031 Dealer Finance 107,346 107 107,239 Credit Cards 3,000 - 3,000 Gross loans 662,698 21,608 641,090 Less: Deferred loan fees, net of costs (277 ) - (277 ) Total $ 662,421 $ 21,608 $ 640,813 The following table shows the Company’s loan portfolio broken down by internal loan grade (dollars in thousands) as of June 30, 2022 and December 31, 2021: June 30, 2022 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 $ - $ 5 $ 11,182 $ 39,977 $ 18,463 $ 1,557 $ 28 $ - $ 71,212 Farmland 55 283 9,519 42,734 16,916 1,848 1,218 - 72,573 Real Estate - 694 26,840 65,846 27,333 8,598 4,436 - 133,747 Multi-Family - - 992 5,315 2,120 121 - - 8,548 Commercial Real Estate - 1,350 37,964 77,168 31,341 15,199 9,658 - 172,680 Home Equity – closed end - 55 983 2,804 672 1,010 - - 5,524 Home Equity – open end - 1,346 17,430 21,853 1,927 1,494 217 - 44,267 Commercial & Industrial -Non-Real Estate 25 1,186 12,133 29,606 6,350 1,330 59 - 50,689 Consumer 26 368 3,451 4,769 171 67 - - 8,852 Gross Loans $ 106 $ 5,287 $ 120,494 $ 290,072 $ 105,293 $ 31,224 $ 15,616 $ - $ 568,092 Less: Deferred loan fees, net of costs (404 ) Total $ 567,688 Credit Cards Dealer Finance Performing $ 3,038 $ 119,663 Non-performing 13 95 Total $ 3,051 $ 119,758 December 31, 2021 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 $ - $ 6 $ 9,952 $ 43,861 $ 19,457 $ 1,658 $ 302 $ - $ 75,236 Farmland 56 291 6,804 42,615 13,620 1,638 1,320 - 66,344 Real Estate - 1,128 30,268 61,940 28,895 12,462 4,859 - 139,552 Multi-Family - - 1,021 2,586 1,154 126 - - 4,887 Commercial Real Estate - 2,124 36,308 72,414 35,444 4,428 12,846 - 163,564 Home Equity – closed end - 61 1,268 3,103 762 1,068 - - 6,262 Home Equity – open end - 1,293 17,333 21,296 2,477 1,632 216 - 44,247 Commercial & Industrial - Non-Real Estate - 1,001 7,562 21,527 13,538 533 63 - 44,224 Consumer 10 522 2,919 3,526 980 79 - - 8,036 Gross loans $ 66 $ 6,426 $ 113,435 $ 272,868 $ 116,327 $ 23,624 $ 19,606 $ - $ 552,352 Less: Deferred loan fees, net of costs (277 ) Total $ 552,075 Credit Cards Dealer Finance Performing $ 3,000 $ 107,330 Non-performing - 16 Total $ 3,000 $ 107,346 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. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2022 | |
Employee Benefit Plan | |
Note 5. Employee Benefit Plan | Note 5. Employee Benefit Plan The Bank has a qualified noncontributory defined benefit pension plan which covers substantially all of its full-time employees hired before April 1, 2012. The benefits are primarily based on years of service and earnings. The Company uses December 31 st The following is a summary of net periodic pension costs for the three and six month periods ended June 30, 2022 and 2021 (dollars in thousands): Six Months Ended Three Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Service cost $ 380 $ 606 $ 190 $ 216 Interest cost 208 314 104 95 Expected return on plan assets - (55 ) - (198 ) Amortization of prior service cost (390 ) (9 ) (195 ) - Amortization of net loss 116 166 58 72 Net periodic pension cost $ 314 $ 1,022 $ 157 $ 185 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value | |
Note 6. Fair Value | Note 6. Fair Value The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Accounting guidance for fair value excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The Company records fair value adjustments to certain assets and liabilities and determines fair value disclosures utilizing a definition of fair value of assets and liabilities that states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Additional considerations are involved to determine the fair value of financial assets in markets that are not active. The Company uses a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: 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. Loans Held for Sale The Company uses the fair value accounting for its entire portfolio of originated loans held for sale in accordance with ASC 820 – Fair Value Measurement and Disclosures. Fair value of the Company’s originated loans held for sale through F&M Mortgage is based on observable market prices for similar instruments traded in the secondary mortgage loan markets in which the Company conducts business. The Company’s portfolio of loans held for sale through F&M Mortgage is classified as Level 2. Gains and losses on the sale of loans are recorded within mortgage banking income, net on the Consolidated Statements of Income. Derivative assets – IRLCs The Company recognizes IRLCs at fair value based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best-efforts basis while taking into consideration the probability that the rate lock commitments will close. All of the Company’s IRLCs are classified as Level 2. Derivative Asset/Liability – Forward Sale Commitments The Company uses the fair value accounting for its forward sales commitments related to IRLCs and LHFS. Best efforts sales commitments are entered into for loans intended for sale in the secondary market at the time the borrower commitment is made. The best efforts commitments are valued using the committed price to the counter-party against the current market price of the interest rate lock commitment or mortgage loan held for sale. All the Company’s forward sale commitments are classified Level 2. Derivative Asset/Liability – Indexed Certificate of Deposit The Company’s derivatives, which are associated with the Indexed Certificate of Deposit (ICD) product once offered, 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. This product is no longer offered and the remaining certificates of deposits matured in the three months ending June 30, 2022. The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 5,449 $ - $ 5,449 $ - U. S. Treasury securities 46,737 - 46,737 - U. S. Government sponsored enterprises 156,149 - 156,149 - Securities issued by States and political subdivisions in the U. S. 43,686 - 43,686 - Mortgage-backed obligations of federal agencies 171,030 - 171,030 - Corporate debt securities 29,221 - 29,221 - Forward Sales Commitments 535 - 535 - Assets at Fair Value $ 452,807 $ - $ 452,807 $ - Liabilities: IRLC $ 273 $ - $ 273 $ - Liabilities at Fair Value $ 273 $ - $ 273 $ - December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 4,887 $ - $ 4,887 $ - IRLC 258 - 258 - U.S. Government treasuries 29,482 - 29,482 - U.S. Government sponsored enterprises 133,714 - 133,714 - Securities issued by States and political subdivisions of the US 34,337 - 34,337 - Mortgage-backed obligations of federal agencies 183,647 - 183,647 - Corporate debt securities 22,702 - 22,702 - Forward sales commitments 112 - 112 - Assets at Fair Value $ 409,139 $ - $ 409,139 $ - Liabilities: Derivatives – ICD $ 3 $ - $ 3 $ - Liabilities at Fair Value $ 3 $ - $ 3 $ - 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: Assets Held for Sale Assets held for sale were transferred from bank premises at the lower of cost less accumulated depreciation or fair value at the date of transfer. The Company periodically evaluates the value of assets held for sale and records an impairment charge for any subsequent declines in fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the assets held for sale as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the asset held for sale as nonrecurring Level 3. 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 “liquidation” value of independent appraisals or evaluations. The value of real estate collateral is determined by an independent appraisal utilizing an income or market valuation approach. Appraisals conducted by an independent, licensed appraiser outside of the Company as observable market data is categorized as Level 3. The value of business equipment is based upon an outside appraisal (Level 3) if deemed significant, or the net book value on the applicable business’ financial statements (Level 3) if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). As of June 30, 2022 and December 31, 2021, the fair value measurements for impaired loans with specific allocations were primarily based upon the fair value of the collateral. 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 and assets held for sale 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 and assets held for sale that were measured at fair value on a nonrecurring basis as of June 30, 2022 and December 31, 2021 (dollars in thousands). 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): June 30, 2022 Total Level 1 Level 2 Level 3 Real Estate $ 1,512 $ - $ - $ 1,512 Commercial Real Estate 2,081 - - 2,081 Dealer Finance 74 - - 74 Impaired loans $ 3,667 $ - $ - $ 3,667 Bank premises held for sale $ 300 $ - $ - $ 300 Other real estate owned $ 197 $ - $ - $ 197 December 31, 2021 Total Level 1 Level 2 Level 3 Real Estate $ 1,053 $ - $ - $ 1,053 Commercial Real Estate 5,401 - - 5,401 Dealer Finance 81 - - 81 Impaired loans $ 6,535 $ - $ - $ 6,535 Bank premises held for sale $ 300 $ - $ - $ 300 Other real estate owned $ - $ - $ - $ - The following table presents information about Level 3 Fair Value Measurements for June 30, 2022 and December 31, 2021 (dollars in thousands): Fair Value at June 30, 2022 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 3,667 Discounted appraised value Discount for selling costs and marketability 14.00%-32.92% (Average 22.97%) Bank premises held for sale 300 Contract value Discount for selling costs and marketability n/a Other real estate owned 197 Discounted appraised value Discount for selling costs and marketability 6.00% (Average 6.00%) Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 6,535 Discounted appraised value Discount for selling costs and marketability 11.76%-28.00% (Average 17.31%) Bank premises held for sale 300 Contract value Discount for selling costs and marketability n/a Other real estate owned - - - - |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosures about Fair Value of Financial Instruments | |
Note 7. Disclosures about Fair Value of Financial Instruments | N ote 7. Disclosures about Fair Value of Financial Instruments The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2022 and December 31, 2021. Fair values for June 30, 2022 and December 31, 2021 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities. The estimated fair values, and related carrying amounts (dollars in thousands), of the Company’s financial instruments are as follows (dollars in thousands): Fair Value Measurements at June 30, 2022 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at June 30, 2022 Assets: Cash and cash equivalents $ 17,254 $ 17,254 $ - $ - $ 17,254 Securities 446,948 - 446,948 - 446,948 Loans held for sale 5,449 - 5,449 - 5,449 Loans held for investment, net 690,497 - - 676,687 676,687 Interest receivable 3,567 - 3,567 - 3,567 Bank owned life insurance 23,210 - 23,210 - 23,210 Forward sales commitments 535 - 535 - 535 Total $ 1,187,460 $ 17,254 $ 479,709 $ 676,687 $ 1,173,650 Liabilities: Deposits $ 1,100,210 $ - $ 980,822 $ 116,563 $ 1,097,385 Short-term debt 30,000 - 30,015 30,015 Long-term debt 11,788 - - 11,890 11,890 IRLC 273 - 273 273 Interest payable 341 - 341 - 341 Total $ 1,142,612 $ - $ 981,436 $ 158,468 $ 1,139,904 Fair Value Measurements at December 31, 2021 Using 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, 2021 Assets: Cash and cash equivalents $ 88,121 $ 88,121 $ - $ - $ 88,121 Securities 404,007 - 404,007 - 404,007 Loans held for sale 4,887 - 4,887 - 4,887 IRLC 258 - 258 - 258 Loans held for investment, net 662,421 - - 652,096 652,096 Interest receivable 3,117 - 3,117 - 3,117 Bank owned life insurance 22,878 - 22,878 - 22,878 Forward sales commitments 112 - 112 - 112 Total $ 1,185,801 $ 88,121 $ 435,259 $ 652,096 $ 1,175,476 Liabilities: Deposits $ 1,080,295 $ - $ 956,439 $ 123,718 $ 1,080,157 Long-term debt 21,772 - - 22,443 22,443 Interest payable 491 - 491 - 491 Total $ 1,102,558 $ - $ 956,930 $ 146,161 $ 1,103,091 |
Troubled Debt Restructuring
Troubled Debt Restructuring | 6 Months Ended |
Jun. 30, 2022 | |
Troubled Debt Restructuring | |
Note 8. Troubled Debt Restructuring | Note 8. Troubled Debt Restructuring As of June 30, 2022, the Company had TDRs totaling $4,205 with an estimated allowance of $124. As of December 31, 2021, the Company had TRDs totaling $5,138 with an estimated allowance of $167. Troubled debt restructurings include modifications of interest rates, 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. All loans that are considered to be TDRs are reviewed for impairment in accordance with the Company’s ALLL methodology. The Company considers loans placed on nonaccrual status or 90 days past due to be nonperforming. There were no nonperforming TDRs at June 30, 2022 and December 31, 2021. The following table shows, by modification type, TDRs that occurred during the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Change in terms - $ - $ - 1 $ 164 $ 164 Extended maturity 3 50 50 3 50 50 Total 3 $ 50 $ 50 4 $ 214 $ 214 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Change in terms 1 $ 986 $ 986 2 $ 1,096 $ 1,096 Total 1 $ 986 $ 986 2 $ 1,096 $ 1,096 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Loss | |
Note 9. Accumulated Other Comprehensive Loss | Note 9. Accumulated Other Comprehensive Loss The following tables present components of accumulated other comprehensive loss for the periods stated (dollars in thousands). For the three months ended June 30, 2022 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2022 $ (16,060 ) $ (3,291 ) $ (19,351 ) Change in unrealized securities gains (losses), net of tax benefit of $4,512 (16,972 ) - (16,972 ) Reclassification for previously unrealized net losses recognized in net income, net of tax benefit of $20 (77 ) - (77 ) Balance at June 30, 2022 $ (33,109 ) $ (3,291 ) $ (36,400 ) For the three months ended June 30, 2021 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2021 $ (310 ) $ (3,821 ) $ (4,131 ) Change in unrealized securities gains (losses), net of tax expense of $74 279 - 279 Balance at June 30, 2021 $ (31 ) $ (3,821 ) $ (3,852 ) For the six months ended June 30, 2022 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2021 $ (1,801 ) $ (3,291 ) $ (5,092 ) Change in unrealized securities gains (losses), net of tax benefit of $8,301 (31,231 ) - (31,231 ) Reclassification for previously unrealized net losses recognized in net income, net of tax benefit of $20 (77 ) - (77 ) Balance at June 30, 2022 $ (33,109 ) $ (3,291 ) $ (36,400 ) For the six months ended June 30, 2021 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2020 $ 804 $ (3,821 ) $ (3,017 ) Change in unrealized securities gains (losses), net of tax benefit of $222 (835 ) - (835 ) Balance at June 30, 2021 $ (31 ) $ (3,821 ) $ (3,852 ) During the three months ended June 30, 2022 there were security losses of $97, net of tax of $20, that were reclassified out of unrealized gains on available for sale securities and reclassified into net investment security losses on the consolidated statements of income. There were no reclassifications adjustments reported on the consolidated statements of income during the three or six months ended June 30, 2021. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2022 | |
Business Segments | |
Note 10. Business Segments | Note 10. Business Segments The Company utilizes its subsidiaries to provide multiple business segments including retail banking, mortgage banking, title insurance services, investment services and credit life and accident and health insurance products related to lending. Revenues from retail banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from title insurance services, investment services and insurance products consist of commissions on products provided. The following tables represent revenues and expenses by segment for the three and six months ended June 30, 2022 and 2021 (dollars in thousands). Six Months Ended June 30, 2022 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 19,019 $ 61 $ 15 $ - $ 1 $ (26 ) $ 19,070 Service charges on deposits 581 - - - - - 581 Investment services and insurance income - - 454 - - (5 ) 449 Mortgage banking income, net - 1,379 - - - - 1,379 Title insurance income - - - 839 - - 839 Other operating income 1,504 2 - - - - 1,506 Total income (loss) 21,104 1,442 469 839 1 (31 ) 23,824 Expenses: Interest Expense 1,774 12 - - 251 (26 ) 2,011 Provision for loan losses 150 - - - - - 150 Salary and benefit expense 8,003 1,196 218 610 - - 10,027 Other operating expenses 6,636 464 32 162 (13 ) (5 ) 7,276 Total expense 16,563 1,672 250 772 238 (31 ) 19,464 Net income (loss) before taxes 4,541 (230 ) 219 67 (237 ) - 4,360 Income tax expense (benefit) 469 - 47 - (473 ) - 43 Net Income (Loss) attributable to F&M Bank Corp. $ 4,072 $ (230 ) $ 172 $ 67 $ 236 $ - $ 4,317 Total Assets $ 1,230,308 $ 9,499 $ 8,863 $ 4,635 $ 83,962 $ (105,715 ) $ 1,231,552 Goodwill $ 2,868 $ - $ - $ 3 $ 211 $ - $ 3,082 Three months ended June 30, 2022 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,982 $ 32 $ 7 $ - $ 1 $ (13 ) $ 10,009 Service charges on deposits 274 - - - - - 274 Investment services and insurance income - - 201 - - (3 ) 198 Mortgage banking income, net - 637 - - - - 637 Title insurance income - - - 366 - - 366 Other operating income 796 - - - - - 796 Total income (loss) 11,052 669 208 366 1 (16 ) 12,280 Expenses: Interest Expense 900 6 - - 114 (13 ) 1,007 Provision for loan losses 600 - - - - - 600 Salary and benefit expense 4,056 623 114 309 - - 5,102 Other operating expenses 3,308 250 11 79 6 (3 ) 3,651 Total expense 8,864 879 125 388 120 (16 ) 10,360 Net income (loss) before taxes 2,188 (210 ) 83 (22 ) (119 ) - 1,920 Income tax expense 83 - 16 - 32 - 131 Net Income (Loss) attributable to F&M Bank Corp. $ 2,105 $ (210 ) $ 67 $ (22 ) $ (151 ) $ - $ 1,789 Six Months Ended June 30, 2021 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 17,489 $ 124 $ 59 $ - $ 1 $ (108 ) $ 17,565 Service charges on deposits 539 - - - - - 539 Investment services and insurance income - - 530 - - (3 ) 527 Mortgage banking income, net - 2,699 - - - - 2,699 Title insurance income - - - 1,051 - - 1,051 Other operating income (loss) 1,621 80 - - (76 ) - 1,625 Total income (loss) 19,649 2,903 589 1,051 (75 ) (111 ) 24,006 Expenses: Interest Expense 1,771 98 - - 376 (108 ) 2,137 (Recovery of) loan losses (1,975 ) - - - - - (1,975 ) Salary and benefit expense 7,112 1,282 181 582 - - 9,157 Other operating expenses 6,300 464 19 154 39 (3 ) 6,973 Total expense 13,208 1,844 200 736 415 (111 ) 16,292 Net income (loss) before taxes 6,441 1,059 389 315 (490 ) - 7,714 Income tax expense (benefit) 922 - 81 - (310 ) - 693 Net Income (Loss) attributable to F&M Bank Corp. $ 5,519 $ 1,059 $ 308 $ 315 $ (180 ) $ - $ 7,021 Total Assets $ 1,110,211 $ 13,969 $ 8,367 $ 3,049 $ 112,338 $ (142,959 ) $ 1,104,975 Goodwill $ 2,868 $ 47 $ - $ 3 $ 164 $ - $ 3,082 Three Months Ended June 30, 2021 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,773 $ 52 $ 29 $ - $ 1 $ (36 ) $ 8,819 Service charges on deposits 254 - - - - - 254 Investment services and insurance income - - 182 - - (2 ) 180 Mortgage banking income, net - 1,027 - - - - 1,027 Title insurance income - - - 595 - - 595 Other operating income (loss) 1,028 57 - - (55 ) - 1,030 Total income (loss) 10,055 1,136 211 595 (54 ) (38 ) 11,905 Expenses: Interest Expense 895 32 - - 178 (36 ) 1,069 (Recovery of) loan losses (1,250 ) - - - - - (1,250 ) Salary and benefit expense 3,598 667 84 296 - - 4,645 Other operating expenses 3,466 231 13 72 19 (2 ) 3,799 Total expense 6,709 930 97 368 197 (38 ) 8,263 Net income (loss) before taxes 3,346 206 114 227 (251 ) - 3,642 Income tax expense (benefit) 401 - 24 - (3 ) - 422 Net Income (Loss) attributable to F&M Bank Corp. $ 2,945 $ 206 $ 90 $ 227 $ (248 ) $ - $ 3,220 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt | |
Note 11. Debt | Note 11. 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 loans growth 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. There was $30,000 in short-term debt at June 30, 2022 and no short-term debt at December 31, 2021. Long-term Debt The Company also utilizes the FHLB advance program to fund loan growth and provide liquidity. The balance of these obligations at June 30, 2022 and December 31, 2021 were $0 and $10,000, respectively. The interest rates on long-term debt are fixed at the time of the advance; the weighted average interest rate was .81% at at December 31, 2021. FHLB advances include a $10,000 letter of credit at FHLB that is pledged to the Commonwealth of Virginia to secure public funds. On July 29, 2020, the Company sold and issued to certain institutional accredited investors $5,000 in aggregate principal amount of 5.75% fixed rated subordinated notes due July 31, 2027 (the “2027 Notes”) and $7,000 in aggregate principal amount of 6.00% fixed to floating rate subordinated notes due July 31, 2030 (the “2030 Notes”). The 2027 Notes will bear interest at 5.75% per annum, payable semi-annually in arrears. Beginning on July 31, 2022 through maturity, the 2027 Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The 2027 Notes will mature on July 31, 2027. The 2030 Notes will initially bear interest at 6.00% per annum, beginning July 29, 2020 to but excluding July 31, 2025, payable semi-annually in arrears. From and including July 31, 2025 through July 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 593 basis points, payable quarterly in arrears. Beginning on July 31, 2025 through maturity, the 2030 Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The 2030 Notes will mature on July 31, 2030. The subordinated notes, net of issuance costs totaled $11,788 at June 30, 2022. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue Recognition | |
Note 12. Revenue Recognition | Note 12. Revenue Recognition 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 guidance. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. 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. Gains/Losses on sale of OREO The Company records a gain or loss from the sale of OREO when the control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. The Company recorded no losses on the sale of OREO property in the three months ended June 30, 2022 and 2021, which is presented on the consolidated income statement as a noninterest expense and therefore, not reflected in the table below. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2022 and 2021 (dollars in thousands). Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 Noninterest Income In-scope of Topic 606: Service Charges on Deposits $ 581 $ 539 $ 274 $ 254 Investment Services and Insurance Income 449 527 198 180 Title Insurance Income 839 1,051 366 595 ATM and check card fees 1,195 1,120 632 600 Other 399 514 242 448 Noninterest Income (in-scope of Topic 606) 3,463 3,751 1,712 2,077 Noninterest Income (out-of-scope of Topic 606) 1,291 2,690 559 1,009 Total Noninterest Income $ 4,754 $ 6,441 $ 2,271 $ 3,086 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2022 and December 31, 2021, 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. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Note 13. Leases | Note 13. Leases 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): June 30, 2022 Lease Liabilities $ 865 Right-of-use assets $ 842 Weighted average remaining lease term (years) 2.97 years Weighted average discount rate 3.10 % For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Operating lease cost $ 47 $ 15 $ 94 $ 51 Total lease cost $ 47 $ 15 $ 94 $ 51 Cash paid for amounts included in the measurement of lease liabilities $ 53 $ 35 $ 105 $ 66 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): June 30, 2022 Six months ending December 31, 2022 $ 79 Twelve months ending December 31, 2023 135 Twelve months ending December 31, 2024 136 Twelve months ending December 31, 2025 98 Twelve months ending December 31, 2026 70 Thereafter 518 Total undiscounted cash flows $ 1,036 Discount 171 Lease liabilities $ 865 |
Mortgage Banking and Derivative
Mortgage Banking and Derivatives | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Banking and Derivatives | |
Note 14. Mortgage Banking And Derrivatives | Note 14. Mortgage Banking and Derivatives Loans Held for Sale The Company, through the Bank’s mortgage banking subsidiary, F&M Mortgage, originates residential mortgage loans for sale in the secondary market. Residential mortgage loans held for sale are sold to the permanent investor with the mortgage servicing rights released. The Company uses fair value accounting for its entire portfolio of loans held for sale (LHFS) in accordance with ASC 820 – Fair Value Measurement and Disclosures. Fair value of the Company’s LHFS is based on observable market prices for the identical instruments traded in the secondary mortgage loan markets in which the Company conducts business total $5,449 as of June 30, 2022 of which $5,509 is related to unpaid principal. The Company’s portfolio of LHFS is classified as Level 2. Interest Rate Lock Commitments and Forward Sales Commitments The Company, through F&M Mortgage, enters into commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed interest rate lock commitments (IRLCs). Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. Upon entering into a commitment to originate a loan, the Company protects itself from changes in interest rates during the period prior to sale by requiring a firm purchase agreement from a permanent investor before a loan can be closed (forward sales commitment). The Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best efforts basis, thus limiting interest rate risk. Certain additional risks exist if the investor fails to meet its purchase obligation; however, based on historical performance and the size and nature of the investors the Company does not expect them to fail to meet their obligation. The Company determines the fair value of the IRLCs based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis while taking into consideration the probability that the rate loan commitments will close. The fair value of these derivative instruments is reported in “Other Liabilities” in the Consolidated Balance Sheet at June 30, 2022, and totaled $273, with a notional amount of $24,826 and total positions of 78. The fair value of the IRLCs at December 31, 2021 totaled $258, with a notional amount of $18,801 and total positions of 70. Changes in fair value are recorded as a component of “Mortgage banking income, net” in the Consolidated Income Statement for the period ended June 30, 2022 and 2021. The Company’s IRLCs are classified as Level 2. At June 30, 2022 and December 31, 2021, each IRLC and all LHFS were subject to a forward sales commitment on a best efforts basis. The Company uses fair value accounting for its forward sales commitments related to IRLCs and LHFS under ASC 825-10-15-4(b). The fair value of forward sales commitments was reported in “Other Assets” in the Consolidated Balance Sheet at June 30, 2022 totaled $535, with a notional amount of $30,335 and total positions of 95. The fair value of forward sales commitments was reported in “Other Assets” in the Consolidated Balance Sheet at December 31, 2021 totaled $112, with a notional amount of $23,721 and total positions of 91. |
StockBased Compensation
StockBased Compensation | 6 Months Ended |
Jun. 30, 2022 | |
StockBased Compensation | |
Note 15. Stock-based Compensation | Note 15. Stock-Based Compensation The Company granted stock awards to directors and employees under the Company’s 2020 Stock Incentive Plan. On March 7, 2022 the Company’s Stock Plan Committee awarded 17,763 shares with a fair value of $547,989 to selected employees. These shares vest 25% over each of the next four years. The Committee also awarded 1,145 shares with a fair value of $35,323 to directors that vested upon issuance. There were no restricted stock awards granted, vested or forfeited during the three months ending June 30, 2022. Unrecognized compensation expense related to the nonvested restricted stock as of June 30, 2022 totaled $780 thousand. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events | |
Note 16. Subsequent Events | Note 16. Subsequent Events On July 29, 2022 the Company redeemed the $5,000 in subordinated notes described in Note 11 as the “2027 Notes.” |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Principles Of Consolidation | The accompanying unaudited consolidated financial statements include the accounts of Farmers & Merchants Bank, TEB Life Insurance Company, Farmers & Merchants Financial Services, Inc., VBS Mortgage, LLC (dba F&M Mortgage), and VSTitle, LLC and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021 (the “2021 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 in the counties of Rockingham, Shenandoah, and Augusta, and the cities of Harrisonburg, Staunton, Waynesboro and Winchester 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 Company, Farmers & Merchants Financial Services, Inc. (“FMFS”), F&M Mortgage, and VSTitle, LLC (“VST”). |
Basis Of Presentation | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect 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 and fair value. 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. |
Risk And Uncertainties | The COVID-19 pandemic has had a disruptive impact on the U.S. and global economy since the first quarter of 2020. Since the pandemic is ongoing and dynamic, there are many uncertainties on the potential impacts to our customers, employees and vendors; as well as the economy as a whole. The Company carefully monitors economic impacts attributable to the COVID-19 pandemic and the potential impacts on the Company’s loan portfolio and their borrowers ability to repay their loans. As the COVID-19 pandemic continues, its magnitude and duration remain uncertain. The risks and uncertainties resulting from the pandemic may adversely the Company’s future operational and financial performance; however, these remain highly uncertain and cannot be predicted. |
Reclassification | Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income. |
Earnings Per Share | Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. 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 common share calculation. All of the Company’s outstanding preferred stock was redeemed by the Company for cash or converted to common stock during the fourth quarter of 2021. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period, including voting rights and sharing in nonforfeitable dividends. 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 (dollars in thousands): For the Six months ended For the Three months ended For the Six months ended For the Three months ended June 30, 2022 June 30, 2022 June 30, 2021 June 30, 2021 Earnings available to common stockholders: Net income $ 4,317 $ 1,789 $ 7,021 $ 3,220 Preferred stock dividends - - 131 66 Net income available to common stockholders $ 4,317 $ 1,789 $ 6,890 $ 3,154 The following table shows the effect of dilutive preferred stock conversion on the Company’s earnings per share for the periods indicated (dollars in thousands): Six months ended June 30, 2022 Six months ended June 30, 2021 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 4,317 3,443,850 $ 1.25 $ 6,890 3,206,534 $ 2.15 Effect of Dilutive Securities: Convertible Preferred Stock - - - 131 228,118 (0.11 ) Diluted EPS $ 4,317 3,443,850 $ 1.25 $ 7,021 3,434,652 $ 2.04 Three months ended June 30, 2022 Three months ended June 30, 2021 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 1,789 3,452,711 $ 0.51 $ 3,154 3,207,978 $ 0.98 Effect of Dilutive Securities: Convertible Preferred Stock - - - 66 205,327 (0.05 ) Diluted EPS $ 1,789 3,452,711 $ 0.51 $ 3,220 3,413,305 $ 0.93 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Schedule Of Net income avalaible to shareholders | For the Six months ended For the Three months ended For the Six months ended For the Three months ended June 30, 2022 June 30, 2022 June 30, 2021 June 30, 2021 Earnings available to common stockholders: Net income $ 4,317 $ 1,789 $ 7,021 $ 3,220 Preferred stock dividends - - 131 66 Net income available to common stockholders $ 4,317 $ 1,789 $ 6,890 $ 3,154 |
Schedule Of dilutive preferred stock conversion | Six months ended June 30, 2022 Six months ended June 30, 2021 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 4,317 3,443,850 $ 1.25 $ 6,890 3,206,534 $ 2.15 Effect of Dilutive Securities: Convertible Preferred Stock - - - 131 228,118 (0.11 ) Diluted EPS $ 4,317 3,443,850 $ 1.25 $ 7,021 3,434,652 $ 2.04 Three months ended June 30, 2022 Three months ended June 30, 2021 Income Weighted Average Shares Per Share Amounts Income Weighted Average Shares Per Share Amounts Basic EPS $ 1,789 3,452,711 $ 0.51 $ 3,154 3,207,978 $ 0.98 Effect of Dilutive Securities: Convertible Preferred Stock - - - 66 205,327 (0.05 ) Diluted EPS $ 1,789 3,452,711 $ 0.51 $ 3,220 3,413,305 $ 0.93 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investment Securities (Tables) | |
Schedule Of Amortized Cost And Fair Value For Securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2022 U. S. Treasuries $ 125 $ - $ - $ 125 December 31, 2021 U. S. Treasuries $ 125 $ - $ - $ 125 |
Schedule Of Amortized Cost And Fair Value Of Securities Current | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2022 U.S. Government treasuries $ 49,778 $ - $ 3,041 $ 46,737 U.S. Government sponsored enterprises 168,464 - 12,315 156,149 Securities issued by States and political subdivisions in the U.S. 47,416 - 3,730 43,686 Mortgage-backed obligations of federal agencies 192,525 106 21,601 171,030 Corporate debt security 30,550 640 1,969 29,221 Total Securities Available for Sale $ 488,733 $ 746 $ 42,656 $ 446,823 December 31, 2021 U.S. Government treasuries $ 29,847 $ - $ 365 $ 29,482 U.S. Government sponsored enterprises 134,466 - 752 133,714 Securities issued by States and political subdivisions of the U.S. 34,078 406 147 34,337 Mortgage-backed obligations of federal agencies 185,216 522 2,091 183,647 Corporate debt securities 22,555 372 225 22,702 Total Securities Available for Sale $ 406,162 $ 1,300 $ 3,580 $ 403,882 |
Schedule Amortized Cost And Fair Value Of Securities, Maturity | Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 125 $ 125 $ 4,833 $ 4,789 Due after one year through five years - - 210,477 198,311 Due after five years - - 107,718 97,741 Due after ten years - - 165,705 145,982 Total $ 125 $ 125 $ 488,733 $ 446,823 |
Schedule Of Unrealized Losses | Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2022 U.S. Government treasuries $ 38,025 $ 1,843 $ 8,711 $ 1,198 $ 46,736 $ 3,041 U.S. Government sponsored enterprises 134,269 9,201 21,880 3,114 156,149 12,315 Securities issued by States and political subdivisions in the U.S. 43,686 3,730 - - 43,686 3,730 Mortgage-backed obligations of federal agencies 131,930 17,112 34,388 4,489 166,318 21,601 Corporate debt security 19,749 1,851 1,132 118 20,881 1,969 Total $ 367,659 $ 33,737 $ 66,111 $ 8,919 $ 433,770 $ 42,656 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2021 U.S. Government treasuries $ 29,481 $ 365 $ - $ - $ 29,481 $ 365 U.S. Government sponsored enterprises 93,714 752 - - 93,714 752 Securities issued by State and political subdivisions in the U.S. 13,308 147 - - 13,308 147 Mortgage-backed obligations of federal agencies 126,501 1,871 10,074 220 136,575 2,091 Corporate debt security 8,825 225 - - 8,825 225 Total $ 271,829 $ 3,360 $ 10,074 $ 220 $ 281,903 $ 3,850 |
Schedule of Realized gains and losses | Three Months Ended June 30, 2022 Six Month Ended June 30, 2022 Realized gains (losses): Gross realized gains $ - $ - Gross realized losses (97 ) - Net realized (losses) $ (97 ) $ - Proceeds from sales of securities $ 8,699 $ - Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Realized gains (losses): Gross realized gains $ - $ - Gross realized (losses) - - Net realized (losses) $ - $ - Proceeds from sales of securities $ - $ - |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans | |
Schedule Of Loans Outstanding | 2022 2021 Construction/Land Development $ 71,212 $ 75,236 Farmland 72,573 66,344 Real Estate 133,747 139,552 Multi-Family 8,548 4,887 Commercial Real Estate 172,680 163,564 Home Equity – closed end 5,524 6,262 Home Equity – open end 44,267 44,247 Commercial & Industrial – Non-Real Estate 50,689 44,224 Consumer 8,852 8,036 Dealer Finance 119,758 107,346 Credit Cards 3,051 3,000 Gross loans 690,901 662,698 Less: Deferred loan fees, net of costs (404 ) (277 ) Total $ 690,497 $ 662,421 |
Summary Of Information Pertaining To Impaired Loans | June 30, 2022 December 31, 2021 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment (1) Balance Allowance Investment (1) Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 468 $ 468 $ - $ 645 $ 645 $ - Farmland 2,165 2,165 - 2,286 2,286 - Real Estate 2,331 2,331 - 2,748 2,748 - Multi-Family - - - - - - Commercial Real Estate 8,058 8,058 - 8,494 8,494 - Home Equity – closed end - - - 147 147 - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - 5 5 - Credit cards - - - - - - Dealer Finance 12 12 - 12 12 - 13,034 13,034 - 14,337 14,337 - Impaired loans with a valuation allowance Construction/Land Development - - - - - - Farmland - - - - - - Real Estate 1,546 1,546 34 1,172 1,172 119 Multi-Family - - - - - - Commercial Real Estate 2,527 2,527 446 6,004 6,004 603 Home Equity – closed end - - - - - - Home Equity – open end - - - - - - Commercial & Industrial – Non-Real Estate - - - - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 77 77 3 95 95 14 4,150 4,150 483 7,271 7,271 736 Total impaired loans $ 17,184 $ 17,184 $ 483 $ 21,608 $ 21,608 $ 736 |
Summary Of The Average Investment And Interest Income | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 553 $ 4 $ 1,280 $ 3 $ 601 $ 10 $ 1,222 $ 16 Farmland 2,190 10 1,191 108 2,268 80 1,191 108 Real Estate 2,358 32 6,287 (52 ) 2,654 65 3,985 87 Multi-Family - - - - - - - - Commercial Real Estate 9,545 (31 ) 9,940 102 8,291 155 5,558 123 Home Equity – closed end - - 674 6 81 - 684 11 Home Equity – open end - - - - - - - - Commercial & Industrial – Non-Real Estate - - 4 - - - 7 - Consumer - - - - - - - - Credit Cards - - - - - - - - Dealer Finance 14 1 15 1 14 1 17 1 14,660 16 19,391 168 13,909 311 12,664 346 Impaired loans with a valuation allowance: Construction/Land Development $ - $ - $ - $ - $ - $ - $ 131 $ - Farmland - - 839 (59 ) - - 876 - Real Estate 1,521 18 1,621 22 1,363 34 5,456 32 Multi-Family - - - - - - - - Commercial Real Estate 2,885 25 6,382 25 4,281 67 4,973 91 Home Equity – closed end - - - - - - - - Home Equity – open end - - - - - - 76 - Commercial & Industrial – Non-Real Estate - - - - - - - - Consumer - - - - - - 1 - Credit Card - - - - - - - - Dealer Finance 66 3 124 2 90 4 135 5 4,472 46 8,966 (10 ) 5,734 105 11,648 128 Total Impaired Loans $ 19,132 $ 62 $ 28,357 $ 158 $ 19,643 $ 416 $ 24,312 $ 474 |
Schedule Of Recorded Investment Of Past Due Loans | June 30, 2022 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 Construction/Land Development $ 521 $ 28 $ - $ 549 $ 70,663 $ 71,212 $ 28 $ - Farmland - 332 - 332 72,241 72,573 1,218 - Real Estate 1,636 34 142 1,812 131,935 133,747 402 - Multi-Family - - - - 8,548 8,548 - - Commercial Real Estate - - 108 108 172,572 172,680 108 - Home Equity – closed end - 105 - 105 5,419 5,524 - - Home Equity – open end 431 167 - 598 43,669 44,267 - - Commercial & Industrial – Non- Real Estate 180 22 41 243 50,446 50,689 - 41 Consumer 23 - - 23 8,829 8,852 - - Dealer Finance 572 125 95 792 118,966 119,758 95 - Credit Cards 12 20 13 45 3,006 3,051 - 13 Less: Deferred loan fees, net of costs - - - - (404 ) (404 ) - - Total $ 3,375 $ 833 $ 399 $ 4,584 $ 685,890 $ 690,497 $ 1,851 $ 55 December 31, 2021 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 Construction/Land Development $ 360 $ 41 $ 38 $ 439 $ 74,797 $ 75,236 $ 302 $ - Farmland - - - - 66,344 66,344 1,320 - Real Estate 1,254 89 395 1,738 137,814 139,552 827 - Multi-Family - - - - 4,887 4,887 - - Commercial Real Estate - - 108 108 163,456 163,564 2,975 - Home Equity – closed end 53 - - 53 6,209 6,262 - - Home Equity – open end 471 216 - 687 43,560 44,247 - - Commercial & Industrial – Non- Real Estate 35 1 43 79 44,145 44,224 - 43 Consumer 9 67 - 76 7,960 8,036 1 - Dealer Finance 694 91 16 801 106,545 107,346 40 - Credit Cards 16 - - 16 2,984 3,000 - - Less: Deferred loan fees, net of costs - - - - (277 ) (277 ) - - Total $ 2,892 $ 505 $ 600 $ 3,997 $ 658,424 $ 662,421 $ 5,465 $ 43 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Allowance for Loan Losses (Tables) | |
Summary Loan Loss Allowance Transactions | June 30, 2022 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 977 $ - $ - $ (97 ) $ 880 $ - $ 880 Farmland 448 - - 71 519 - 519 Real Estate 1,162 17 - (14 ) 1,131 34 1,097 Multi-Family 29 - - 25 54 - 54 Commercial Real Estate 2,205 - - 98 2,303 446 1,857 Home Equity – closed end 41 - - (2 ) 39 - 39 Home Equity – open end 407 - 130 (162 ) 375 - 375 Commercial & Industrial – Non-Real Estate 288 36 32 100 384 - 384 Consumer 520 24 14 (148 ) 362 - 362 Dealer Finance 1,601 523 337 272 1,687 3 1,684 Credit Cards 70 21 8 7 64 - 64 Total $ 7,748 $ 621 $ 521 $ 150 $ 7,798 $ 483 $ 7,315 December 31, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 1,249 $ - $ 307 $ (579 ) $ 977 $ - $ 977 Farmland 731 - - (283 ) 448 - 448 Real Estate 1,624 - 76 (538 ) 1,162 119 1,043 Multi-Family 54 - - (25 ) 29 - 29 Commercial Real Estate 3,662 - 19 (1,476 ) 2,205 603 1,602 Home Equity – closed end 55 - - (14 ) 41 - 41 Home Equity – open end 463 - 13 (69 ) 407 - 407 Commercial & Industrial – Non-Real Estate 363 40 37 (72 ) 288 - 288 Consumer 521 33 24 8 520 - 520 Dealer Finance 1,674 1,038 754 211 1,601 14 1,587 Credit Cards 79 54 29 16 70 - 70 Total $ 10,475 $ 1,165 $ 1,259 $ (2,821 ) $ 7,748 $ 736 $ 7,012 |
Schedule Of Recorded Investment In Loans | June 30, 2022 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 71,212 $ 468 $ 70,744 Farmland 72,573 2,165 70,408 Real Estate 133,747 3,877 129,870 Multi-Family 8,548 - 8,548 Commercial Real Estate 172,680 10,585 162,095 Home Equity – closed end 5,524 - 5,524 Home Equity –open end 44,267 - 44,267 Commercial & Industrial – Non-Real Estate 50,689 - 50,689 Consumer 8,852 - 8,852 Dealer Finance 119,758 89 119,669 Credit Cards 3,051 - 3,051 Gross loans 690,901 17,184 673,717 Less: Deferred loan fees, net of costs (404 ) - (404 ) Total $ 690,497 $ 17,184 $ 673,313 December 31, 2021 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 75,236 $ 645 $ 74,591 Farmland 66,344 2,286 64,058 Real Estate 139,552 3,920 135,632 Multi-Family 4,887 - 4,887 Commercial Real Estate 163,564 14,498 149,066 Home Equity – closed end 6,262 147 6,115 Home Equity –open end 44,247 - 44,247 Commercial & Industrial – Non-Real Estate 44,224 - 44,224 Consumer 8,036 5 8,031 Dealer Finance 107,346 107 107,239 Credit Cards 3,000 - 3,000 Gross loans 662,698 21,608 641,090 Less: Deferred loan fees, net of costs (277 ) - (277 ) Total $ 662,421 $ 21,608 $ 640,813 |
Schedule Of Loan Portfolio | June 30, 2022 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 $ - $ 5 $ 11,182 $ 39,977 $ 18,463 $ 1,557 $ 28 $ - $ 71,212 Farmland 55 283 9,519 42,734 16,916 1,848 1,218 - 72,573 Real Estate - 694 26,840 65,846 27,333 8,598 4,436 - 133,747 Multi-Family - - 992 5,315 2,120 121 - - 8,548 Commercial Real Estate - 1,350 37,964 77,168 31,341 15,199 9,658 - 172,680 Home Equity – closed end - 55 983 2,804 672 1,010 - - 5,524 Home Equity – open end - 1,346 17,430 21,853 1,927 1,494 217 - 44,267 Commercial & Industrial -Non-Real Estate 25 1,186 12,133 29,606 6,350 1,330 59 - 50,689 Consumer 26 368 3,451 4,769 171 67 - - 8,852 Gross Loans $ 106 $ 5,287 $ 120,494 $ 290,072 $ 105,293 $ 31,224 $ 15,616 $ - $ 568,092 Less: Deferred loan fees, net of costs (404 ) Total $ 567,688 Credit Cards Dealer Finance Performing $ 3,038 $ 119,663 Non-performing 13 95 Total $ 3,051 $ 119,758 December 31, 2021 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 $ - $ 6 $ 9,952 $ 43,861 $ 19,457 $ 1,658 $ 302 $ - $ 75,236 Farmland 56 291 6,804 42,615 13,620 1,638 1,320 - 66,344 Real Estate - 1,128 30,268 61,940 28,895 12,462 4,859 - 139,552 Multi-Family - - 1,021 2,586 1,154 126 - - 4,887 Commercial Real Estate - 2,124 36,308 72,414 35,444 4,428 12,846 - 163,564 Home Equity – closed end - 61 1,268 3,103 762 1,068 - - 6,262 Home Equity – open end - 1,293 17,333 21,296 2,477 1,632 216 - 44,247 Commercial & Industrial - Non-Real Estate - 1,001 7,562 21,527 13,538 533 63 - 44,224 Consumer 10 522 2,919 3,526 980 79 - - 8,036 Gross loans $ 66 $ 6,426 $ 113,435 $ 272,868 $ 116,327 $ 23,624 $ 19,606 $ - $ 552,352 Less: Deferred loan fees, net of costs (277 ) Total $ 552,075 Credit Cards Dealer Finance Performing $ 3,000 $ 107,330 Non-performing - 16 Total $ 3,000 $ 107,346 |
Employee Benefit Plan (Tables)
Employee Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Employee Benefit Plan | |
Schedule Of Employee Benefit Plan | Six Months Ended Three Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Service cost $ 380 $ 606 $ 190 $ 216 Interest cost 208 314 104 95 Expected return on plan assets - (55 ) - (198 ) Amortization of prior service cost (390 ) (9 ) (195 ) - Amortization of net loss 116 166 58 72 Net periodic pension cost $ 314 $ 1,022 $ 157 $ 185 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value | |
Schedule Of Assets And Liabilities At Fair Value On Recurring Basis | June 30, 2022 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 5,449 $ - $ 5,449 $ - U. S. Treasury securities 46,737 - 46,737 - U. S. Government sponsored enterprises 156,149 - 156,149 - Securities issued by States and political subdivisions in the U. S. 43,686 - 43,686 - Mortgage-backed obligations of federal agencies 171,030 - 171,030 - Corporate debt securities 29,221 - 29,221 - Forward Sales Commitments 535 - 535 - Assets at Fair Value $ 452,807 $ - $ 452,807 $ - Liabilities: IRLC $ 273 $ - $ 273 $ - Liabilities at Fair Value $ 273 $ - $ 273 $ - December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 4,887 $ - $ 4,887 $ - IRLC 258 - 258 - U.S. Government treasuries 29,482 - 29,482 - U.S. Government sponsored enterprises 133,714 - 133,714 - Securities issued by States and political subdivisions of the US 34,337 - 34,337 - Mortgage-backed obligations of federal agencies 183,647 - 183,647 - Corporate debt securities 22,702 - 22,702 - Forward sales commitments 112 - 112 - Assets at Fair Value $ 409,139 $ - $ 409,139 $ - Liabilities: Derivatives – ICD $ 3 $ - $ 3 $ - Liabilities at Fair Value $ 3 $ - $ 3 $ - |
Summarizes Measured At Fair Value On A Nonrecurring Basis | June 30, 2022 Total Level 1 Level 2 Level 3 Real Estate $ 1,512 $ - $ - $ 1,512 Commercial Real Estate 2,081 - - 2,081 Dealer Finance 74 - - 74 Impaired loans $ 3,667 $ - $ - $ 3,667 Bank premises held for sale $ 300 $ - $ - $ 300 Other real estate owned $ 197 $ - $ - $ 197 December 31, 2021 Total Level 1 Level 2 Level 3 Real Estate $ 1,053 $ - $ - $ 1,053 Commercial Real Estate 5,401 - - 5,401 Dealer Finance 81 - - 81 Impaired loans $ 6,535 $ - $ - $ 6,535 Bank premises held for sale $ 300 $ - $ - $ 300 Other real estate owned $ - $ - $ - $ - |
Schedule Fair Value Measurements Level 3 | Fair Value at June 30, 2022 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 3,667 Discounted appraised value Discount for selling costs and marketability 14.00%-32.92% (Average 22.97%) Bank premises held for sale 300 Contract value Discount for selling costs and marketability n/a Other real estate owned 197 Discounted appraised value Discount for selling costs and marketability 6.00% (Average 6.00%) Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 6,535 Discounted appraised value Discount for selling costs and marketability 11.76%-28.00% (Average 17.31%) Bank premises held for sale 300 Contract value Discount for selling costs and marketability n/a Other real estate owned - - - - |
Disclosures About Fair Value _2
Disclosures About Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosures about Fair Value of Financial Instruments | |
Schedule Of Carrying Value And Estimated Fair Value For Financial Instruments | Fair Value Measurements at June 30, 2022 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at June 30, 2022 Assets: Cash and cash equivalents $ 17,254 $ 17,254 $ - $ - $ 17,254 Securities 446,948 - 446,948 - 446,948 Loans held for sale 5,449 - 5,449 - 5,449 Loans held for investment, net 690,497 - - 676,687 676,687 Interest receivable 3,567 - 3,567 - 3,567 Bank owned life insurance 23,210 - 23,210 - 23,210 Forward sales commitments 535 - 535 - 535 Total $ 1,187,460 $ 17,254 $ 479,709 $ 676,687 $ 1,173,650 Liabilities: Deposits $ 1,100,210 $ - $ 980,822 $ 116,563 $ 1,097,385 Short-term debt 30,000 - 30,015 30,015 Long-term debt 11,788 - - 11,890 11,890 IRLC 273 - 273 273 Interest payable 341 - 341 - 341 Total $ 1,142,612 $ - $ 981,436 $ 158,468 $ 1,139,904 Fair Value Measurements at December 31, 2021 Using 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, 2021 Assets: Cash and cash equivalents $ 88,121 $ 88,121 $ - $ - $ 88,121 Securities 404,007 - 404,007 - 404,007 Loans held for sale 4,887 - 4,887 - 4,887 IRLC 258 - 258 - 258 Loans held for investment, net 662,421 - - 652,096 652,096 Interest receivable 3,117 - 3,117 - 3,117 Bank owned life insurance 22,878 - 22,878 - 22,878 Forward sales commitments 112 - 112 - 112 Total $ 1,185,801 $ 88,121 $ 435,259 $ 652,096 $ 1,175,476 Liabilities: Deposits $ 1,080,295 $ - $ 956,439 $ 123,718 $ 1,080,157 Long-term debt 21,772 - - 22,443 22,443 Interest payable 491 - 491 - 491 Total $ 1,102,558 $ - $ 956,930 $ 146,161 $ 1,103,091 |
Troubled Debt Restructuring (Ta
Troubled Debt Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Troubled Debt Restructuring (Tables) | |
Schedule Of Loan Restructured | Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Change in terms - $ - $ - 1 $ 164 $ 164 Extended maturity 3 50 50 3 50 50 Total 3 $ 50 $ 50 4 $ 214 $ 214 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment No. of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Change in terms 1 $ 986 $ 986 2 $ 1,096 $ 1,096 Total 1 $ 986 $ 986 2 $ 1,096 $ 1,096 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Loss | |
Schedule Of Accumulated Other Comprehensive Loss | For the three months ended June 30, 2022 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2022 $ (16,060 ) $ (3,291 ) $ (19,351 ) Change in unrealized securities gains (losses), net of tax benefit of $4,512 (16,972 ) - (16,972 ) Reclassification for previously unrealized net losses recognized in net income, net of tax benefit of $20 (77 ) - (77 ) Balance at June 30, 2022 $ (33,109 ) $ (3,291 ) $ (36,400 ) For the three months ended June 30, 2021 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2021 $ (310 ) $ (3,821 ) $ (4,131 ) Change in unrealized securities gains (losses), net of tax expense of $74 279 - 279 Balance at June 30, 2021 $ (31 ) $ (3,821 ) $ (3,852 ) For the six months ended June 30, 2022 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2021 $ (1,801 ) $ (3,291 ) $ (5,092 ) Change in unrealized securities gains (losses), net of tax benefit of $8,301 (31,231 ) - (31,231 ) Reclassification for previously unrealized net losses recognized in net income, net of tax benefit of $20 (77 ) - (77 ) Balance at June 30, 2022 $ (33,109 ) $ (3,291 ) $ (36,400 ) For the six months ended June 30, 2021 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2020 $ 804 $ (3,821 ) $ (3,017 ) Change in unrealized securities gains (losses), net of tax benefit of $222 (835 ) - (835 ) Balance at June 30, 2021 $ (31 ) $ (3,821 ) $ (3,852 ) |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Segments | |
Schedule Of Business Segments | Six Months Ended June 30, 2022 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 19,019 $ 61 $ 15 $ - $ 1 $ (26 ) $ 19,070 Service charges on deposits 581 - - - - - 581 Investment services and insurance income - - 454 - - (5 ) 449 Mortgage banking income, net - 1,379 - - - - 1,379 Title insurance income - - - 839 - - 839 Other operating income 1,504 2 - - - - 1,506 Total income (loss) 21,104 1,442 469 839 1 (31 ) 23,824 Expenses: Interest Expense 1,774 12 - - 251 (26 ) 2,011 Provision for loan losses 150 - - - - - 150 Salary and benefit expense 8,003 1,196 218 610 - - 10,027 Other operating expenses 6,636 464 32 162 (13 ) (5 ) 7,276 Total expense 16,563 1,672 250 772 238 (31 ) 19,464 Net income (loss) before taxes 4,541 (230 ) 219 67 (237 ) - 4,360 Income tax expense (benefit) 469 - 47 - (473 ) - 43 Net Income (Loss) attributable to F&M Bank Corp. $ 4,072 $ (230 ) $ 172 $ 67 $ 236 $ - $ 4,317 Total Assets $ 1,230,308 $ 9,499 $ 8,863 $ 4,635 $ 83,962 $ (105,715 ) $ 1,231,552 Goodwill $ 2,868 $ - $ - $ 3 $ 211 $ - $ 3,082 Three months ended June 30, 2022 F&M Bank F&M Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 9,982 $ 32 $ 7 $ - $ 1 $ (13 ) $ 10,009 Service charges on deposits 274 - - - - - 274 Investment services and insurance income - - 201 - - (3 ) 198 Mortgage banking income, net - 637 - - - - 637 Title insurance income - - - 366 - - 366 Other operating income 796 - - - - - 796 Total income (loss) 11,052 669 208 366 1 (16 ) 12,280 Expenses: Interest Expense 900 6 - - 114 (13 ) 1,007 Provision for loan losses 600 - - - - - 600 Salary and benefit expense 4,056 623 114 309 - - 5,102 Other operating expenses 3,308 250 11 79 6 (3 ) 3,651 Total expense 8,864 879 125 388 120 (16 ) 10,360 Net income (loss) before taxes 2,188 (210 ) 83 (22 ) (119 ) - 1,920 Income tax expense 83 - 16 - 32 - 131 Net Income (Loss) attributable to F&M Bank Corp. $ 2,105 $ (210 ) $ 67 $ (22 ) $ (151 ) $ - $ 1,789 Six Months Ended June 30, 2021 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 17,489 $ 124 $ 59 $ - $ 1 $ (108 ) $ 17,565 Service charges on deposits 539 - - - - - 539 Investment services and insurance income - - 530 - - (3 ) 527 Mortgage banking income, net - 2,699 - - - - 2,699 Title insurance income - - - 1,051 - - 1,051 Other operating income (loss) 1,621 80 - - (76 ) - 1,625 Total income (loss) 19,649 2,903 589 1,051 (75 ) (111 ) 24,006 Expenses: Interest Expense 1,771 98 - - 376 (108 ) 2,137 (Recovery of) loan losses (1,975 ) - - - - - (1,975 ) Salary and benefit expense 7,112 1,282 181 582 - - 9,157 Other operating expenses 6,300 464 19 154 39 (3 ) 6,973 Total expense 13,208 1,844 200 736 415 (111 ) 16,292 Net income (loss) before taxes 6,441 1,059 389 315 (490 ) - 7,714 Income tax expense (benefit) 922 - 81 - (310 ) - 693 Net Income (Loss) attributable to F&M Bank Corp. $ 5,519 $ 1,059 $ 308 $ 315 $ (180 ) $ - $ 7,021 Total Assets $ 1,110,211 $ 13,969 $ 8,367 $ 3,049 $ 112,338 $ (142,959 ) $ 1,104,975 Goodwill $ 2,868 $ 47 $ - $ 3 $ 164 $ - $ 3,082 Three Months Ended June 30, 2021 F&M Bank VBS Mortgage TEB Life/FMFS VS Title Parent Only Eliminations F&M Bank Corp. Consolidated Revenues: Interest Income $ 8,773 $ 52 $ 29 $ - $ 1 $ (36 ) $ 8,819 Service charges on deposits 254 - - - - - 254 Investment services and insurance income - - 182 - - (2 ) 180 Mortgage banking income, net - 1,027 - - - - 1,027 Title insurance income - - - 595 - - 595 Other operating income (loss) 1,028 57 - - (55 ) - 1,030 Total income (loss) 10,055 1,136 211 595 (54 ) (38 ) 11,905 Expenses: Interest Expense 895 32 - - 178 (36 ) 1,069 (Recovery of) loan losses (1,250 ) - - - - - (1,250 ) Salary and benefit expense 3,598 667 84 296 - - 4,645 Other operating expenses 3,466 231 13 72 19 (2 ) 3,799 Total expense 6,709 930 97 368 197 (38 ) 8,263 Net income (loss) before taxes 3,346 206 114 227 (251 ) - 3,642 Income tax expense (benefit) 401 - 24 - (3 ) - 422 Net Income (Loss) attributable to F&M Bank Corp. $ 2,945 $ 206 $ 90 $ 227 $ (248 ) $ - $ 3,220 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue Recognition | |
Summary Of Noninterest Income, Segregated By Revenue Streams | Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 Noninterest Income In-scope of Topic 606: Service Charges on Deposits $ 581 $ 539 $ 274 $ 254 Investment Services and Insurance Income 449 527 198 180 Title Insurance Income 839 1,051 366 595 ATM and check card fees 1,195 1,120 632 600 Other 399 514 242 448 Noninterest Income (in-scope of Topic 606) 3,463 3,751 1,712 2,077 Noninterest Income (out-of-scope of Topic 606) 1,291 2,690 559 1,009 Total Noninterest Income $ 4,754 $ 6,441 $ 2,271 $ 3,086 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule Of Leases | June 30, 2022 Lease Liabilities $ 865 Right-of-use assets $ 842 Weighted average remaining lease term (years) 2.97 years Weighted average discount rate 3.10 % |
Schedule Of Operating Lease Liabilities And Reconciliation | For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Operating lease cost $ 47 $ 15 $ 94 $ 51 Total lease cost $ 47 $ 15 $ 94 $ 51 Cash paid for amounts included in the measurement of lease liabilities $ 53 $ 35 $ 105 $ 66 |
Schedule Of Operating Lease Liabilities and Maturities | June 30, 2022 Six months ending December 31, 2022 $ 79 Twelve months ending December 31, 2023 135 Twelve months ending December 31, 2024 136 Twelve months ending December 31, 2025 98 Twelve months ending December 31, 2026 70 Thereafter 518 Total undiscounted cash flows $ 1,036 Discount 171 Lease liabilities $ 865 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary of Significant Accounting Policies | ||||
Net Income | $ 1,789 | $ 3,220 | $ 4,317 | $ 7,021 |
Preferred Stock Dividends | 0 | 66 | 0 | 131 |
Net Income Available To Common Stockholders | $ 1,789 | $ 3,154 | $ 4,317 | $ 6,890 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary of Significant Accounting Policies | ||||
Basic Eps, Income | $ 1,789,000 | $ 3,154,000 | $ 4,317,000 | $ 6,890,000 |
Effect Of Dilutive Securities Convertible Preferred Stock, Income | 66,000 | 0 | 131 | |
Diluted Eps, Income | $ 1,789,000 | $ 3,220,000 | $ 4,317,000 | $ 7,021,000 |
Basic Eps, Shares | 3,452,711 | 3,207,978 | 3,443,850 | 3,206,534 |
Effect Of Dilutive Securities Convertible Preferred Stock, Shares | 205,327 | 228,118 | ||
Diluted Eps, Share | 3,452,711 | 3,413,305 | 3,443,850 | 3,434,652 |
Basic Eps, Per Shares | $ 0.51 | $ 0.98 | $ 1.25 | $ 2.15 |
Effect Of Dilutive Securities Convertible Preferred Stock, Per Shares | (0.05) | 0 | (0.11) | |
Diluted Eps, Per Shares | $ 0.51 | $ 0.93 | $ 1.25 | $ 2.04 |
Investment Securities (Details)
Investment Securities (Details) - Treasury and agency obligations - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | $ 125,000 | $ 125,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 125,000 | $ 125,000 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Amortized Cost | $ 488,733 | $ 406,162 |
Gross Unrealized Gains | 746 | 1,300 |
Gross Unrealized Losses | 42,656 | 3,580 |
Fair Value | 446,823 | 403,882 |
U S Treasuries [Member] | ||
Amortized Cost | 49,778 | 29,847 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3,041 | |
Fair Value | 46,737 | 29,482 |
U. S. Government Sponsored Enterprises [Member] | ||
Amortized Cost | 168,464 | 134,466 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 12,315 | 752 |
Fair Value | 156,149 | 133,714 |
Securities issued by States and political subdivisions in the U.S. [Member] | ||
Amortized Cost | 47,416 | 34,078 |
Gross Unrealized Gains | 0 | 406 |
Gross Unrealized Losses | 3,730 | 147 |
Fair Value | 43,686 | 34,337 |
Mortgage-backed obligations of federal agencies [Member] | ||
Amortized Cost | 192,525 | 185,216 |
Gross Unrealized Gains | 106 | 522 |
Gross Unrealized Losses | 21,601 | 2,091 |
Fair Value | 171,030 | 183,647 |
Corporate debt security [Member] | ||
Amortized Cost | 30,550 | 22,555 |
Gross Unrealized Gains | 640 | 372 |
Gross Unrealized Losses | 1,969 | 225 |
Fair Value | $ 29,221 | $ 22,702 |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Total, Amortized Cost | $ 125,000 | $ 125,000 |
Securities Held to Maturity [Member] | ||
Due In One Year Or Less, Amortized Cost | 125,000 | |
Due In One Year Or Less, Fair Value | 125,000 | |
Due After One Year Through Five Years, Amortized Cost | 0 | |
Due After One Year Through Five Years, Fair Value | 0 | |
Due After Five Years Through Ten Years, Amortized Cost | 0 | |
Due After Five Years Through Ten Years, Fair Value | 0 | |
Due After Ten Years, Amortized Cost | 0 | |
Due After Ten Years, Fair Value | 0 | |
Total, Amortized Cost | 125,000 | |
Total Fair Value | 125,000 | |
Securities Available for Sale [Member] | ||
Due In One Year Or Less, Amortized Cost | 4,833,000 | |
Due In One Year Or Less, Fair Value | 4,789,000 | |
Due After One Year Through Five Years, Amortized Cost | 210,477,000 | |
Due After One Year Through Five Years, Fair Value | 198,311,000 | |
Due After Five Years Through Ten Years, Amortized Cost | 107,718,000 | |
Due After Five Years Through Ten Years, Fair Value | 97,741,000 | |
Due After Ten Years, Amortized Cost | 165,705,000 | |
Due After Ten Years, Fair Value | 145,982,000 | |
Total, Amortized Cost | 488,733,000 | |
Total Fair Value | $ 446,823,000 |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investment Securities (Tables) | ||||
Gross realized gains | $ 0 | $ 0 | $ 0 | $ 0 |
Gross realized losses | (97) | 0 | 0 | 0 |
Net realized (losses) | (97) | 0 | 0 | 0 |
Proceeds from sale of securities | $ 8,699 | $ 0 | $ 0 | $ 0 |
Investment Securities (Detail_4
Investment Securities (Details 4) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Less Than 12 Months | $ 367,659,000 | $ 271,829,000 |
Unrealized Losses Less Than 12 Months | 33,737,000 | 3,360,000 |
Fair Value More Than 12 Months | 66,111,000 | 10,074,000 |
Unrealized Losses More Than 12 Months | 8,919,000 | 220,000 |
Fair Value Total | 433,770,000 | 281,903,000 |
Unrealized Losses Total | 42,656,000 | 3,850,000 |
U S Treasuries [Member] | ||
Fair Value Less Than 12 Months | 38,025,000 | 29,481,000 |
Unrealized Losses Less Than 12 Months | 1,843,000 | 365,000 |
Fair Value More Than 12 Months | 8,711,000 | 0 |
Unrealized Losses More Than 12 Months | 1,198,000 | 0 |
Fair Value Total | 46,736,000 | 29,481,000 |
Unrealized Losses Total | 3,041,000 | 365,000 |
U. S. Government Sponsored Enterprises [Member] | ||
Fair Value Less Than 12 Months | 134,269,000 | 93,714,000 |
Unrealized Losses Less Than 12 Months | 9,201,000 | 752,000 |
Fair Value More Than 12 Months | 21,880,000 | 0 |
Unrealized Losses More Than 12 Months | 3,114,000 | 0 |
Fair Value Total | 156,149,000 | 93,714,000 |
Unrealized Losses Total | 12,315,000 | 752,000 |
Securities issued by States and political subdivisions in the U.S. [Member] | ||
Fair Value Less Than 12 Months | 43,686,000 | 13,308,000 |
Unrealized Losses Less Than 12 Months | 3,730,000 | 147,000 |
Fair Value More Than 12 Months | 0 | 0 |
Unrealized Losses More Than 12 Months | 0 | |
Fair Value Total | 43,686,000 | 13,308,000 |
Unrealized Losses Total | 3,730,000 | 147,000 |
Mortgage-backed obligations of federal agencies [Member] | ||
Fair Value Less Than 12 Months | 131,930,000 | 126,501,000 |
Unrealized Losses Less Than 12 Months | 17,112,000 | 1,871,000 |
Fair Value More Than 12 Months | 34,388,000 | 10,074,000 |
Unrealized Losses More Than 12 Months | 4,489,000 | 220,000 |
Fair Value Total | 166,318,000 | 136,575,000 |
Unrealized Losses Total | 21,601,000 | 2,091,000 |
Corporate debt security [Member] | ||
Fair Value Less Than 12 Months | 19,749,000 | 8,825,000 |
Unrealized Losses Less Than 12 Months | 1,851,000 | 225,000 |
Fair Value More Than 12 Months | 1,132,000 | 0 |
Unrealized Losses More Than 12 Months | 118,000 | |
Fair Value Total | 20,881,000 | 8,825,000 |
Unrealized Losses Total | $ 1,969,000 | $ 225,000 |
Investment Securities (Detail_5
Investment Securities (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Subordinated Debt | $ 1,132 | |
Other Investments | 9,688 | $ 9,210 |
Twenty Low-Income housing [Member] | ||
Other Investments | 6,354 | |
Federal Home Loan Bank [Member] | ||
Other Investments | 1,590 | |
Stock | 1,744 | |
Fifteen low-income housing limited partnerships [Member] | ||
Other Investments | $ 961 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Gross Loans | $ 690,901 | $ 662,698 |
Less: Deferred Loan Fess, Net Of Costs | 404 | 277 |
Total | 690,497 | 662,421 |
Commercial Real Estate [Member] | ||
Loans Outstanding | 172,680 | 163,564 |
Multi-Family [Member] | ||
Loans Outstanding | 8,548 | 4,887 |
Real Estate Loan [Member] | ||
Loans Outstanding | 133,747 | 139,552 |
Credit Cards [Member] | ||
Loans Outstanding | 3,051 | 3,000 |
Construction/Land Development [Member] | ||
Loans Outstanding | 71,212 | 75,236 |
Farmland [Member] | ||
Loans Outstanding | 72,573 | 66,344 |
Home Equity - Closed End [Member] | ||
Loans Outstanding | 5,524 | 6,262 |
Home Equity - Open End [Member] | ||
Loans Outstanding | 44,267 | 44,247 |
Commercial & Industrial - Non- Real Estate [Member] | ||
Loans Outstanding | 50,689 | 44,224 |
Consumer [Member] | ||
Loans Outstanding | 8,852 | 8,036 |
Dealers Finance [Member] | ||
Loans Outstanding | $ 119,758 | $ 107,346 |
Loans (Details 1)
Loans (Details 1) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | $ 0 | $ 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Impaired loans without a valuation allowance [Member] | Commercial Real Estate [Member] | ||
Recorded Investment | 8,058,000 | 8,494,000 |
Unpaid Principal Balance | 8,058,000 | 8,494,000 |
Related Allowance | 0 | 0 |
Impaired loans without a valuation allowance [Member] | Multi-Family [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Impaired loans without a valuation allowance [Member] | Real Estate Loan [Member] | ||
Recorded Investment | 2,331,000 | 2,748,000 |
Unpaid Principal Balance | 2,331,000 | 2,748,000 |
Related Allowance | 0 | 0 |
Impaired loans without a valuation allowance [Member] | Credit Cards [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 4,150,000 | 7,271,000 |
Unpaid Principal Balance | 4,150,000 | 7,271,000 |
Related Allowance | 483,000 | 736,000 |
Impaired loans With a valuation allowance [Member] | Commercial Real Estate [Member] | ||
Recorded Investment | 2,527,000 | 6,004,000 |
Unpaid Principal Balance | 2,527,000 | 6,004,000 |
Related Allowance | 446,000 | 603,000 |
Impaired loans With a valuation allowance [Member] | Multi-Family [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Impaired loans With a valuation allowance [Member] | Real Estate Loan [Member] | ||
Recorded Investment | 1,546,000 | 1,172,000 |
Unpaid Principal Balance | 1,546,000 | 1,172,000 |
Related Allowance | 34,000 | 119,000 |
Impaired loans With a valuation allowance [Member] | Credit Cards [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Construction/Land Development [Member] | Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | 468,000 | 645,000 |
Unpaid Principal Balance | 468,000 | 645,000 |
Related Allowance | 0 | 0 |
Construction/Land Development [Member] | Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Farmland [Member] | Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | 2,165,000 | 2,286,000 |
Unpaid Principal Balance | 2,165,000 | 2,286,000 |
Related Allowance | 0 | 0 |
Home Equity - Close End [Member] | Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | 0 | 147,000 |
Unpaid Principal Balance | 0 | 147,000 |
Related Allowance | 0 | 0 |
Home Equity - Close End [Member] | Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Home Equity Open End [Member] | Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Home Equity Open End [Member] | Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Commercial & Industrial (Non-Real Estate) | Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Consumer [Member] | Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | 0 | 5,000 |
Unpaid Principal Balance | 0 | 5,000 |
Related Allowance | 0 | 0 |
Dealers Finance [Member] | Impaired loans without a valuation allowance [Member] | ||
Recorded Investment | 12,000 | 12,000 |
Unpaid Principal Balance | 12,000 | 12,000 |
Related Allowance | 0 | 0 |
Dealers Finance [Member] | Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 77,000 | 95,000 |
Unpaid Principal Balance | 77,000 | 95,000 |
Related Allowance | 3,000 | 14,000 |
Farmland [Member] | Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Commercial & Industrial - Non- Real Estate [Member] | Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Consumer [Member] | Impaired loans With a valuation allowance [Member] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Total impaired loans [Member] | ||
Recorded Investment | 17,184,000 | 21,608,000 |
Unpaid Principal Balance | 17,184,000 | 21,608,000 |
Related Allowance | $ 483,000 | $ 736,000 |
Loans (Details 2)
Loans (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | $ 16,000 | $ 168,000 | $ 311,000 | $ 346,000 |
Average Recorded Investment | 14,660,000 | 19,391,000 | 13,909,000 | 12,664,000 |
Impaired loans without a valuation allowance [Member] | Commercial Real Estate [Member] | ||||
Interest Income Recognized | 31,000 | 102,000 | 155,000 | 123,000 |
Average Recorded Investment | 9,545,000 | 9,940,000 | 8,291,000 | 5,558,000 |
Impaired loans without a valuation allowance [Member] | Multi-Family [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired loans without a valuation allowance [Member] | Real Estate Loan [Member] | ||||
Interest Income Recognized | 10,000 | 52,000 | 65,000 | 87,000 |
Average Recorded Investment | 2,190,000 | 6,287,000 | 2,654,000 | 3,985,000 |
Impaired loans without a valuation allowance [Member] | Credit Cards [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 46,000 | 10,000 | 105,000 | 128,000 |
Average Recorded Investment | 4,472,000 | 8,966,000 | 5,734,000 | 11,648,000 |
Impaired loans With a valuation allowance [Member] | Commercial Real Estate [Member] | ||||
Interest Income Recognized | 25,000 | 25,000 | 67,000 | 91,000 |
Average Recorded Investment | 2,885,000 | 6,382,000 | 4,281,000 | 4,973,000 |
Impaired loans With a valuation allowance [Member] | Multi-Family [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired loans With a valuation allowance [Member] | Real Estate Loan [Member] | ||||
Interest Income Recognized | 18,000 | 22,000 | 34,000 | 32,000 |
Average Recorded Investment | 1,521,000 | 1,621,000 | 1,363,000 | 5,456,000 |
Impaired loans With a valuation allowance [Member] | Credit Cards [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Construction/Land Development [Member] | Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | 4,000 | 3,000 | 10,000 | 16,000 |
Average Recorded Investment | 553,000 | 1,280,000 | 601,000 | 1,222,000 |
Construction/Land Development [Member] | Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 131,000 | 0 |
Farmland [Member] | Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | 10,000 | 108,000 | 80,000 | 108,000 |
Average Recorded Investment | 2,190,000 | 1,191,000 | 2,268,000 | 1,191,000 |
Home Equity - Close End [Member] | Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 6,000 | 0 | 11,000 |
Average Recorded Investment | 0 | 674,000 | 81,000 | 684,000 |
Home Equity - Close End [Member] | Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Home Equity Open End [Member] | Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Home Equity Open End [Member] | Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 76,000 |
Commercial & Industrial (Non-Real Estate) | Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 4,000 | 0 | 7,000 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Consumer [Member] | Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Dealers Finance [Member] | Impaired loans without a valuation allowance [Member] | ||||
Interest Income Recognized | 1,000 | 1,000 | 1,000 | 1,000 |
Average Recorded Investment | 14,000 | 15,000 | 14,000 | 17,000 |
Dealers Finance [Member] | Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 3,000 | 2,000 | 4,000 | 5,000 |
Average Recorded Investment | 66,000 | 124,000 | 90,000 | 135,000 |
Farmland [Member] | Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 59,000 | 0 | 0 |
Average Recorded Investment | 0 | 839,000 | 0 | 876,000 |
Commercial & Industrial - Non- Real Estate [Member] | Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 |
Consumer [Member] | Impaired loans With a valuation allowance [Member] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 1,000 |
Total impaired loans [Member] | ||||
Interest Income Recognized | 62,000 | 158,000 | 416,000 | 474,000 |
Average Recorded Investment | $ 19,132,000 | $ 28,357,000 | $ 19,643,000 | $ 24,312,000 |
Loans (Details 3)
Loans (Details 3) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Less: Deferred Aoan Fees, Net Of Costs, 30-59 Days Past Due | $ 0 | $ 0 |
Less: Deferred Aoan Fees, Net Of Costs, 60-89 Days Past Due | 0 | 0 |
Less: Deferred Aoan Fees, Net Of Costs, Greater Than 90 Days | 0 | 0 |
Less: Deferred Aoan Fees, Net Of Costs, Total Past Due | 0 | 0 |
Less: Deferred Aoan Fees, Net Of Costs, Non Accruel Loans | (404,000) | (277,000) |
Less: Deferred Aoan Fees, Net Of Costs, Recorded Investment Greater Than 90 Days And Accruing | (404,000) | (277,000) |
Less: Deferred Aoan Fees, Net Of Costs, Current | 0 | 0 |
Less: Deferred Loan Fees, Net Of Costs, Total Loan Receivable | 0 | 0 |
30-59 Days Past Due | 3,375,000 | 2,892,000 |
60-89 Days Past Due | 833,000 | 505,000 |
Greater Than 90 Days | 399,000 | 600,000 |
Total Past Due | 4,584,000 | 3,997,000 |
Current | 685,890,000 | 658,424,000 |
Total Loan Receivable | 690,497,000 | 662,421,000 |
Non-accrual Loans | 1,851,000 | 5,465,000 |
Recorded Investment & 90 Days & Accruing | 55,000 | 43,000 |
Commercial Real Estate [Member] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days | 108,000 | 108,000 |
Total Past Due | 108,000 | 108,000 |
Current | 172,572,000 | 163,456,000 |
Total Loan Receivable | 172,680,000 | 163,564,000 |
Non-accrual Loans | 180,000 | 2,975,000 |
Multi-Family [Member] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 8,548,000 | 4,887,000 |
Total Loan Receivable | 8,548,000 | 4,887,000 |
Non-accrual Loans | 0 | 0 |
Real Estate Loan [Member] | ||
30-59 Days Past Due | 1,636,000 | 1,254,000 |
60-89 Days Past Due | 34,000 | 89,000 |
Greater Than 90 Days | 142,000 | 395,000 |
Total Past Due | 1,812,000 | 1,738,000 |
Current | 131,935,000 | 137,814,000 |
Total Loan Receivable | 133,747,000 | 139,552,000 |
Non-accrual Loans | 402,000 | 827,000 |
Credit Cards [Member] | ||
30-59 Days Past Due | 12,000 | 16,000 |
60-89 Days Past Due | 20,000 | 0 |
Greater Than 90 Days | 13,000 | 0 |
Total Past Due | 45,000 | 16,000 |
Current | 3,006,000 | 2,984,000 |
Total Loan Receivable | 3,051,000 | 3,000,000 |
Non-accrual Loans | 0 | 0 |
Recorded Investment & 90 Days & Accruing | 13,000 | 0 |
Construction/Land Development [Member] | ||
30-59 Days Past Due | 521,000 | 360,000 |
60-89 Days Past Due | 28,000 | 41,000 |
Greater Than 90 Days | 0 | 38,000 |
Total Past Due | 549,000 | 439,000 |
Current | 70,663,000 | 74,797,000 |
Total Loan Receivable | 71,212,000 | 75,236,000 |
Non-accrual Loans | 28,000 | 302,000 |
Farmland [Member] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 332,000 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 332,000 | 0 |
Current | 72,241,000 | 66,344,000 |
Total Loan Receivable | 72,573,000 | 66,344,000 |
Non-accrual Loans | 1,218,000 | 1,320,000 |
Commercial & Industrial - Non- Real Estate [Member] | ||
30-59 Days Past Due | 180,000 | 35,000 |
60-89 Days Past Due | 22,000 | 1,000 |
Greater Than 90 Days | 41,000 | 43,000 |
Total Past Due | 243,000 | 79,000 |
Current | 50,446,000 | 44,145,000 |
Total Loan Receivable | 50,689,000 | 44,224,000 |
Recorded Investment & 90 Days & Accruing | 41,000 | 43,000 |
Consumer [Member] | ||
30-59 Days Past Due | 23,000 | 9,000 |
60-89 Days Past Due | 0 | 67,000 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 23,000 | 76,000 |
Current | 8,829,000 | 7,960,000 |
Total Loan Receivable | 8,852,000 | 8,036,000 |
Non-accrual Loans | 0 | 1,000 |
Dealers Finance [Member] | ||
30-59 Days Past Due | 572,000 | 694,000 |
60-89 Days Past Due | 125,000 | 91,000 |
Greater Than 90 Days | 95,000 | 16,000 |
Total Past Due | 792,000 | 801,000 |
Current | 118,966,000 | 106,545,000 |
Total Loan Receivable | 119,758,000 | 107,346,000 |
Non-accrual Loans | 95,000 | 40,000 |
Recorded Investment & 90 Days & Accruing | 0 | |
Home Equity - Close End [Member] | ||
30-59 Days Past Due | 0 | 53,000 |
60-89 Days Past Due | 105,000 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 105,000 | 53,000 |
Current | 5,419,000 | 6,209,000 |
Total Loan Receivable | 5,524,000 | 6,262,000 |
Non-accrual Loans | 0 | 0 |
Recorded Investment & 90 Days & Accruing | 0 | |
Home Equity Open End [Member] | ||
30-59 Days Past Due | 431,000 | 471,000 |
60-89 Days Past Due | 167,000 | 216,000 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 598,000 | 687,000 |
Current | 43,669,000 | 43,560,000 |
Total Loan Receivable | 44,267,000 | 44,247,000 |
Non-accrual Loans | $ 0 | 0 |
Recorded Investment & 90 Days & Accruing | $ 0 |
Loans (Details Narrative)
Loans (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Transfer from loans to other real estate owned | $ 197 | $ 0 | |
Loans Held For Sale | 5,449 | $ 4,887 | |
Pledged Loans | 161,729 | $ 163,326 | |
CARES Act [Member] | |||
Deferral Loan, Amount | 122 | ||
Interest Income | $ 28 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Total [Member] | ||
Beginning Balance | $ 7,748,000 | $ 10,475,000 |
Charge-offs | 621,000 | 1,165,000 |
Recoveries | 521,000 | 1,259,000 |
Provision For Loan Losses | 150,000 | (2,821,000) |
Ending Balance | 7,798,000 | 7,748,000 |
Individually Evaluated For Impairment | 483,000 | 736,000 |
Collectively Evaluated For Impairment | 7,315,000 | 7,012,000 |
Real Estates [Member] | ||
Beginning Balance | 1,162,000 | 1,624,000 |
Charge-offs | 17,000 | 0 |
Recoveries | 0 | 76,000 |
Provision For Loan Losses | (14,000) | (538,000) |
Ending Balance | 1,131,000 | 1,162,000 |
Individually Evaluated For Impairment | 34,000 | 119,000 |
Collectively Evaluated For Impairment | 1,097,000 | 1,043,000 |
Credit Cards [Member] | ||
Beginning Balance | 70,000 | 79,000 |
Charge-offs | 21,000 | 54,000 |
Recoveries | 8,000 | 29,000 |
Provision For Loan Losses | 7,000 | 16,000 |
Ending Balance | 64,000 | 70,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 64,000 | 70,000 |
Commercial Real Estate [Member] | ||
Beginning Balance | 2,205,000 | 3,662,000 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 19,000 |
Provision For Loan Losses | 98,000 | (1,476,000) |
Ending Balance | 2,303,000 | 2,205,000 |
Individually Evaluated For Impairment | 446,000 | 603,000 |
Collectively Evaluated For Impairment | 1,857,000 | 1,602,000 |
Multi-Family [Member] | ||
Beginning Balance | 29,000 | 54,000 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision For Loan Losses | 25,000 | (25,000) |
Ending Balance | 54,000 | 29,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 54,000 | 29,000 |
Construction/Land Development [Member] | ||
Beginning Balance | 977,000 | 1,249,000 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 307 |
Provision For Loan Losses | (97,000) | (579,000) |
Ending Balance | 880,000 | 977,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 880,000 | 977,000 |
Farmland [Member] | ||
Beginning Balance | 448,000 | 731,000 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision For Loan Losses | 71,000 | (283,000) |
Ending Balance | 519,000 | 448,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 519,000 | 448,000 |
Consumer [Member] | ||
Beginning Balance | 520,000 | 521,000 |
Charge-offs | 24,000 | 33,000 |
Recoveries | 14,000 | 24,000 |
Provision For Loan Losses | (148,000) | 8,000 |
Ending Balance | 362,000 | 520,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 362,000 | 520,000 |
Dealers Finance [Member] | ||
Beginning Balance | 1,601,000 | 1,674,000 |
Charge-offs | 523,000 | 1,038,000 |
Recoveries | 337,000 | 754,000 |
Provision For Loan Losses | 272,000 | 211,000 |
Ending Balance | 1,687,000 | 1,601,000 |
Individually Evaluated For Impairment | 3,000 | 14,000 |
Collectively Evaluated For Impairment | 1,684,000 | 1,587,000 |
Home Equity - Close End [Member] | ||
Beginning Balance | 41,000 | 55,000 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision For Loan Losses | (2,000) | (14,000) |
Ending Balance | 39,000 | 41,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 39,000 | 41,000 |
Home Equity Open End [Member] | ||
Beginning Balance | 407,000 | 463,000 |
Charge-offs | 0 | 0 |
Recoveries | 130,000 | 13,000 |
Provision For Loan Losses | (162,000) | (69,000) |
Ending Balance | 375,000 | 407,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 375,000 | 407,000 |
Commercial & Industrial (Non-Real Estate) | ||
Beginning Balance | 288,000 | 363,000 |
Charge-offs | 36,000 | 40,000 |
Recoveries | 32,000 | 37,000 |
Provision For Loan Losses | 100,000 | (72,000) |
Ending Balance | 384,000 | 288,000 |
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | $ 384,000 | $ 288,000 |
Allowance for Loan Losses (De_2
Allowance for Loan Losses (Details 1) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Loan Receivable | $ 690,497,000 | $ 662,421,000 |
Less: Deferred loan fees, net of costs [Member] | ||
Loan Receivable | 404,000 | 277,000 |
Loan Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 404,000 | 277,000 |
Gross loans [Member] | ||
Loan Receivable | 690,901,000 | 662,698,000 |
Loan Individually Evaluated For Impairment | 17,184,000 | 21,608,000 |
Collectively Evaluated For Impairment | 673,717,000 | 641,090,000 |
Total [Member] | ||
Loan Receivable | 690,497,000 | 662,421,000 |
Loan Individually Evaluated For Impairment | 17,184,000 | 21,608,000 |
Collectively Evaluated For Impairment | 673,313,000 | 640,813,000 |
Real Estates [Member] | ||
Loan Receivable | 133,747,000 | 139,552,000 |
Loan Individually Evaluated For Impairment | 3,877,000 | 3,920,000 |
Collectively Evaluated For Impairment | 129,870,000 | 135,632,000 |
Credit Card [Member] | ||
Loan Receivable | 3,051,000 | 3,000,000 |
Loan Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 3,051,000 | 3,000,000 |
Commercial Real Estate [Member] | ||
Loan Receivable | 172,680,000 | 163,564,000 |
Loan Individually Evaluated For Impairment | 10,585,000 | 14,498,000 |
Collectively Evaluated For Impairment | 162,095,000 | 149,066,000 |
Multi-Family [Member] | ||
Loan Receivable | 8,548,000 | 4,887,000 |
Loan Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 8,548,000 | 4,887,000 |
Construction/Land Development [Member] | ||
Loan Receivable | 71,212,000 | 75,236,000 |
Loan Individually Evaluated For Impairment | 468,000 | 645,000 |
Collectively Evaluated For Impairment | 70,744,000 | 74,591,000 |
Farmland [Member] | ||
Loan Receivable | 72,573,000 | 66,344,000 |
Loan Individually Evaluated For Impairment | 2,165,000 | 2,286,000 |
Collectively Evaluated For Impairment | 70,408 | 64,058,000 |
Consumer [Member] | ||
Loan Receivable | 8,852,000 | 8,036,000 |
Loan Individually Evaluated For Impairment | 0 | 5,000 |
Collectively Evaluated For Impairment | 8,852,000 | 8,031,000 |
Dealers Finance [Member] | ||
Loan Receivable | 119,758,000 | 107,346,000 |
Loan Individually Evaluated For Impairment | 89,000 | 107,000 |
Collectively Evaluated For Impairment | 119,669,000 | 107,239,000 |
Home Equity - Close End [Member] | ||
Loan Receivable | 5,524,000 | 6,262,000 |
Loan Individually Evaluated For Impairment | 0 | 147,000 |
Collectively Evaluated For Impairment | 5,524,000 | 6,115,000 |
Home Equity Open End [Member] | ||
Loan Receivable | 44,267,000 | 44,247,000 |
Loan Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 44,267,000 | 44,247,000 |
Commercial & Industrial (Non-Real Estate) | ||
Loan Receivable | 50,689,000 | 44,224,000 |
Loan Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | $ 50,689,000 | $ 44,224,000 |
Allowance for Loan Losses (De_3
Allowance for Loan Losses (Details 2) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Less: Deferred loan fees, net of costs [Member] | ||
Total | $ (404,000) | $ (277,000) |
Gross loans [Member] | ||
Grade 1 Minimal Risk | 106,000 | 66,000 |
Grade 2 Modest Risk | 5,287,000 | 6,426,000 |
Grade 3 Average Risk | 120,494,000 | 113,435,000 |
Grade 4 Acceptable Risk | 290,072,000 | 272,868,000 |
Grade 5 Marginally Acceptable | 105,293,000 | 116,327,000 |
Grade 6 Watch | 31,224,000 | 23,624,000 |
Grade 7 Substandard | 15,616,000 | 19,606,000 |
Total | 568,092 | 552,352 |
Grade 8 Doubtful | 0 | 0 |
Credit Card [Member] | ||
Total | 3,051,000 | 3,000,000 |
Non-performing | 13,000 | 0 |
Performing | 3,038,000 | 3,000,000 |
Real Estate [Member] | ||
Grade 1 Minimal Risk | 0 | 0 |
Grade 2 Modest Risk | 694,000 | 1,128,000 |
Grade 3 Average Risk | 26,840,000 | 30,268,000 |
Grade 4 Acceptable Risk | 65,846,000 | 61,940,000 |
Grade 5 Marginally Acceptable | 27,333,000 | 28,895,000 |
Grade 6 Watch | 8,598,000 | 12,462,000 |
Grade 7 Substandard | 4,436,000 | 4,859,000 |
Total | 133,747,000 | 139,552,000 |
Grade 8 Doubtful | 0 | 0 |
Total [Member] | ||
Total | 567,688,000 | 552,075,000 |
Commercial Real Estate [Member] | ||
Grade 1 Minimal Risk | 0 | 0 |
Grade 2 Modest Risk | 1,350,000 | 2,124,000 |
Grade 3 Average Risk | 37,964,000 | 36,308,000 |
Grade 4 Acceptable Risk | 77,168,000 | 72,414,000 |
Grade 5 Marginally Acceptable | 31,341,000 | 35,444,000 |
Grade 6 Watch | 15,199,000 | 4,428,000 |
Grade 7 Substandard | 9,658,000 | 12,846,000 |
Total | 172,680,000 | 163,564,000 |
Grade 8 Doubtful Account | 0 | 0 |
Multi-Family [Member] | ||
Grade 1 Minimal Risk | 0 | 0 |
Grade 2 Modest Risk | 0 | 0 |
Grade 3 Average Risk | 992,000 | 1,021,000 |
Grade 4 Acceptable Risk | 5,315,000 | 2,586,000 |
Grade 5 Marginally Acceptable | 2,120,000 | 1,154,000 |
Grade 6 Watch | 121,000 | 0 |
Grade 7 Substandard | 0 | 0 |
Total | 8,548,000 | 4,887,000 |
Grade 8 Doubtful | 0 | 0 |
Construction/Land Development [Member] | ||
Grade 1 Minimal Risk | 0 | 0 |
Grade 2 Modest Risk | 5,000 | 6,000 |
Grade 3 Average Risk | 11,182,000 | 9,952,000 |
Grade 4 Acceptable Risk | 39,977,000 | 43,861 |
Grade 5 Marginally Acceptable | 18,463,000 | 19,457,000 |
Grade 6 Watch | 1,557,000 | 1,658,000 |
Grade 7 Substandard | 28,000 | 302,000 |
Total | 71,212,000 | 75,236,000 |
Grade 8 Doubtful | 0 | 0 |
Farmland [Member] | ||
Grade 1 Minimal Risk | 55,000 | 56,000 |
Grade 2 Modest Risk | 283,000 | 291,000 |
Grade 3 Average Risk | 9,519,000 | 6,804,000 |
Grade 4 Acceptable Risk | 42,734,000 | 42,615,000 |
Grade 5 Marginally Acceptable | 16,916,000 | 13,620,000 |
Grade 6 Watch | 1,848,000 | 1,638,000 |
Grade 7 Substandard | 1,218,000 | 1,320,000 |
Total | 72,573,000 | 66,344,000 |
Grade 8 Doubtful | 0 | 0 |
Consumer [Member] | ||
Grade 1 Minimal Risk | 26,000 | 10,000 |
Grade 2 Modest Risk | 368,000 | 522,000 |
Grade 3 Average Risk | 3,451,000 | 2,919,000 |
Grade 4 Acceptable Risk | 4,769,000 | 3,526,000 |
Grade 5 Marginally Acceptable | 171,000 | 980,000 |
Grade 6 Watch | 67,000 | 79,000 |
Grade 7 Substandard | 0 | 0 |
Total | 8,852,000 | 8,036,000 |
Grade 8 Doubtful | 0 | 0 |
Dealers Finance [Member] | ||
Total | 119,758 | 107,346 |
Non-performing | 95,000 | 16,000 |
Performing | 119,663,000 | 107,330,000 |
Home Equity - Close End [Member] | ||
Grade 1 Minimal Risk | 0 | 0 |
Grade 2 Modest Risk | 55,000 | 61,000 |
Grade 3 Average Risk | 983,000 | 1,268,000 |
Grade 4 Acceptable Risk | 2,804,000 | 3,103,000 |
Grade 5 Marginally Acceptable | 672,000 | 762,000 |
Grade 6 Watch | 1,010,000 | 1,068,000 |
Grade 7 Substandard | 0 | 0 |
Total | 5,524,000 | 6,262,000 |
Grade 8 Doubtful | 0 | 0 |
Home Equity Open End [Member] | ||
Grade 1 Minimal Risk | 0 | 0 |
Grade 2 Modest Risk | 1,346,000 | 1,293,000 |
Grade 3 Average Risk | 17,430,000 | 17,333,000 |
Grade 4 Acceptable Risk | 21,853,000 | 21,296,000 |
Grade 5 Marginally Acceptable | 1,927,000 | 2,477,000 |
Grade 6 Watch | 1,494,000 | 1,632,000 |
Grade 7 Substandard | 217,000 | 216,000 |
Total | 44,267,000 | 44,247,000 |
Grade 8 Doubtful | 0 | 0 |
Commercial & Industrial (Non-Real Estate) | ||
Grade 1 Minimal Risk | 25,000 | 0 |
Grade 2 Modest Risk | 1,186,000 | 1,001,000 |
Grade 3 Average Risk | 12,133,000 | 7,562,000 |
Grade 4 Acceptable Risk | 29,606,000 | 21,527,000 |
Grade 5 Marginally Acceptable | 6,350,000 | 13,538,000 |
Grade 6 Watch | 1,330,000 | 533,000 |
Grade 7 Substandard | 59,000 | 63,000 |
Total | 50,689,000 | 44,224,000 |
Grade 8 Doubtful | $ 0 | $ 0 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Benefit Plan | ||||
Service Cost | $ 190,000 | $ 216,000 | $ 380,000 | $ 606,000 |
Interest Cost | 104,000 | 95,000 | 208,000 | 314,000 |
Expected Return On Plan Assets | 0 | (198,000) | 0 | (55,000) |
Amortization of prior service cost | (195,000) | 0 | (390,000) | (9,000) |
Amortization Of Net Loss | 58,000 | 72,000 | 116,000 | 166,000 |
Net Periodic Pension Cost | $ 157,000 | $ 185,000 | $ 314,000 | $ 1,022,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Loans Held For Sale | $ 5,449,000 | $ 4,887,000 |
U. S. Treasury Securities | 46,737,000 | 29,482,000 |
U. S. Government Sponsored Enterprises | 156,149,000 | 133,714,000 |
Securities Issued By States And Political Subdivisions In The U. S. | 43,686,000 | 34,337,000 |
Mortgage-backed Obligations Of Federal Agencies | 171,030,000 | 183,647,000 |
Corporate Debt Securities | 29,221,000 | 22,702,000 |
Assets At Fair Value | 452,807 | 409,139,000 |
Derivatives Icd | 3,000 | |
Irlc | 273,000 | 258,000 |
Forward Sales Commitments | 535,000 | 112,000 |
Total Fair Value Of Liabilities | 273,000 | 3,000 |
Fair Value Inputs Level 1 | ||
Loans Held For Sale | 0 | 0 |
U. S. Treasury Securities | 0 | 0 |
U. S. Government Sponsored Enterprises | 0 | 0 |
Securities Issued By States And Political Subdivisions In The U. S. | 0 | 0 |
Mortgage-backed Obligations Of Federal Agencies | 0 | |
Irlc | 0 | 0 |
Fair Value Inputs Level 2 | ||
Loans Held For Sale | 5,449,000 | 4,887,000 |
U. S. Treasury Securities | 46,737,000 | 29,482,000 |
U. S. Government Sponsored Enterprises | 156,149,000 | 133,714,000 |
Securities Issued By States And Political Subdivisions In The U. S. | 43,686,000 | 34,337,000 |
Mortgage-backed Obligations Of Federal Agencies | 171,030,000 | 183,647,000 |
Corporate Debt Securities | 29,221,000 | 22,702,000 |
Assets At Fair Value | 452,807 | 409,139,000 |
Derivatives Icd | 3,000 | |
Irlc | 273,000 | 258,000 |
Forward Sales Commitments | 535,000 | 112,000 |
Total Fair Value Of Liabilities | 273,000 | 3,000 |
Fair Value Inputs Level 3 | ||
Loans Held For Sale | 0 | 0 |
U. S. Treasury Securities | 0 | 0 |
U. S. Government Sponsored Enterprises | 0 | 0 |
Securities Issued By States And Political Subdivisions In The U. S. | 0 | 0 |
Mortgage-backed Obligations Of Federal Agencies | 0 | |
Irlc | $ 0 | $ 0 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Other real estate owned [Member] | ||
Impaired Loans | $ 197,000 | $ 0 |
Fair Value Inputs Level 1 | ||
Impaired Loans | 0 | 0 |
Fair Value Inputs Level 2 | ||
Impaired Loans | 0 | 0 |
Fair Value Inputs Level 3 | ||
Impaired Loans | 3,667,000 | 6,535,000 |
Fair Value Inputs Level 3 | Commercial Real Estate [Member] | ||
Impaired Loans | 2,081,000 | 5,401,000 |
Fair Value Inputs Level 3 | Other real estate owned [Member] | ||
Impaired Loans | 197,000 | 0 |
Real Estate [Member] | ||
Impaired Loans | 1,512,000 | 1,053,000 |
Real Estate [Member] | Fair Value Inputs Level 1 | ||
Impaired Loans | 0 | 0 |
Real Estate [Member] | Fair Value Inputs Level 2 | ||
Impaired Loans | 0 | 0 |
Real Estate [Member] | Fair Value Inputs Level 3 | ||
Impaired Loans | 1,512,000 | 1,053,000 |
Dealers Finance [Member] | ||
Impaired Loans | 74,000 | 81,000 |
Dealers Finance [Member] | Fair Value Inputs Level 1 | ||
Impaired Loans | 0 | 0 |
Dealers Finance [Member] | Fair Value Inputs Level 2 | ||
Impaired Loans | 0 | 0 |
Dealers Finance [Member] | Fair Value Inputs Level 3 | ||
Impaired Loans | 74,000 | 81,000 |
Bank premises [Member] | ||
Impaired Loans | 300,000 | 300,000 |
Bank premises [Member] | Fair Value Inputs Level 1 | ||
Impaired Loans | 0 | 0 |
Bank premises [Member] | Fair Value Inputs Level 2 | ||
Impaired Loans | 0 | 0 |
Bank premises [Member] | Fair Value Inputs Level 3 | ||
Impaired Loans | 300,000 | 300,000 |
Impaired loans [Member] | Fair Value Inputs Level 3 | ||
Impaired Loans | 3,667,000 | 6,535,000 |
Commercial Real Estate [Member] | ||
Impaired Loan | 2,081,000 | 5,401,000 |
Commercial Real Estate [Member] | Fair Value Inputs Level 1 | ||
Impaired Loans | 0 | 0 |
Commercial Real Estate [Member] | Fair Value Inputs Level 2 | ||
Impaired Loans | $ 0 | $ 0 |
Fair Value (Details 2)
Fair Value (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Other real estate owned [Member] | ||
Valuation Technique Other Real Estate Owned | Discounted appraised value | |
Significant Unobservable Inputs Lmpaired Loans | Discount for selling costs and marketability | |
Impaired Loans | $ 197 | |
Range Impaired Loans | 6% | |
Fair Value Inputs Level 3 | Minimum [Member] | ||
Range Impaired Loans | 14% | 11.76% |
Fair Value Inputs Level 3 | Maximum [Member] | ||
Range Impaired Loans | 32.92% | 28% |
Impaired loans [Member] | Fair Value Inputs Level 3 | ||
Valuation Technique Other Real Estate Owned | Discounted appraised value | Discounted appraised value |
Significant Unobservable Inputs Lmpaired Loans | Discount for selling costs and marketability | Discount for selling costs and marketability |
Impaired Loans | $ 3,667 | $ 6,535 |
Bank premises [Member] | Fair Value Inputs Level 3 | ||
Valuation Technique Other Real Estate Owned | Contract value | Contract value |
Significant Unobservable Inputs Lmpaired Loans | Discount for selling costs and marketability | Discount for selling costs and marketability |
Impaired Loans | $ 300 | $ 300 |
Disclosures About Fair Value _3
Disclosures About Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Cash And Cash Equivalents, Carrying Amount | $ 17,254,000 | $ 88,121,000 | $ 186,015,000 | $ 78,408,000 |
Securities, Carrying Amount | 446,948,000 | 404,007,000 | ||
Loans Held For Sale, Carrying Amount | 5,449,000 | 4,887,000 | ||
Loans Held For Investment, Net, Carrying Amount | 690,497,000 | 662,421,000 | ||
Interest Receivable, Carrying Amount | 3,567,000 | 3,117,000 | ||
Bank Owned Life Insurance, Carrying Amount | 23,210,000 | 22,878,000 | ||
Forward Sales Commitments, Carrying Amount | 535,000 | 112,000 | ||
Total Assets, Carrying Amount | 1,187,460,000 | 1,185,801,000 | ||
Deposits, Carrying Amount | 1,100,210,000 | 1,080,295,000 | ||
Short-term Debt, Carrying Amount | 30,000,000 | |||
Long-term Debt, Carrying Amount | 11,788,000 | 21,772,000 | ||
IRLC, Carrying Amount | 273,000 | 258,000 | ||
Interest Payable, Carrying Amount | 341,000 | 491,000 | ||
Total Liabilities, Carrying Amount | 1,142,612,000 | 1,102,558,000 | ||
Loans Held For Sale, Fair Value | 5,449,000 | 4,887,000 | ||
Short-term Debt, Fair Value | 30,000,000 | 0 | ||
Fair Value [Member] | ||||
Forward Sales Commitments, Carrying Amount | 535,000 | 112,000 | ||
IRLC, Carrying Amount | 273,000 | 258,000 | ||
Cash And Cash Equivalents, Fair Value | 17,254,000 | 88,121,000 | ||
Securities, Fair Value | 446,948,000 | 404,007,000 | ||
Loans Held For Sale, Fair Value | 5,449,000 | 4,887,000 | ||
Loans Held For Investment, Net, Fair Value | 676,687,000 | 652,096,000 | ||
Interest Receivable, Fair Value | 3,567,000 | 3,117,000 | ||
Bank Owned Life Insurance, Fair Value | 23,210,000 | 22,878,000 | ||
Total Assets, Fair Value | 1,173,650,000 | 1,175,476,000 | ||
Deposits, Fair Value | 1,097,385,000 | 1,080,157,000 | ||
Short-term Debt, Fair Value | 30,015,000 | |||
Long-term Debt, Fair Value | 11,890,000 | 22,443,000 | ||
Interest Payable, Fair Value | 341,000 | 491,000 | ||
Total Liabilities, Fair Value | 1,139,904,000 | 1,103,091,000 | ||
Fair Value Inputs Level 1 | ||||
Cash And Cash Equivalents, Fair Value | 17,254,000 | 88,121,000 | ||
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 | 17,254,000 | 88,121,000 | ||
Deposits, 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 | ||||
Forward Sales Commitments, Carrying Amount | 535,000 | 112,000 | ||
IRLC, Carrying Amount | 273,000 | 258,000 | ||
Cash And Cash Equivalents, Fair Value | 0 | 0 | ||
Securities, Fair Value | 446,948,000 | 404,007,000 | ||
Loans Held For Sale, Fair Value | 5,449,000 | 4,887,000 | ||
Loans Held For Investment, Net, Fair Value | 0 | 0 | ||
Interest Receivable, Fair Value | 3,567,000 | 3,117,000 | ||
Bank Owned Life Insurance, Fair Value | 23,210,000 | 22,878,000 | ||
Total Assets, Fair Value | 479,709,000 | 435,259,000 | ||
Deposits, Fair Value | 980,822,000 | 956,439,000 | ||
Long-term Debt, Fair Value | 0 | 0 | ||
Interest Payable, Fair Value | 341,000 | 491,000 | ||
Total Liabilities, Fair Value | 981,436,000 | 956,930,000 | ||
Fair Value Inputs Level 3 | ||||
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 | 676,687,000 | 652,096,000 | ||
Interest Receivable, Fair Value | 0 | 0 | ||
Bank Owned Life Insurance, Fair Value | 0 | 0 | ||
Total Assets, Fair Value | 676,687,000 | 652,096,000 | ||
Deposits, Fair Value | 116,563,000 | 123,718,000 | ||
Short-term Debt, Fair Value | 30,015,000 | |||
Long-term Debt, Fair Value | 11,890,000 | 22,443,000 | ||
Interest Payable, Fair Value | 0 | 0 | ||
Total Liabilities, Fair Value | $ 158,468,000 | $ 146,161,000 |
Troubled Debt Restructuring (De
Troubled Debt Restructuring (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) integer | Jun. 30, 2021 USD ($) integer | Jun. 30, 2022 USD ($) integer | Jun. 30, 2021 USD ($) integer | |
Extended maturity [Member] | ||||
Number Of Contracts | integer | 3 | 3 | ||
Pre-modification Outstanding Recorded Investment | $ 50,000 | $ 50,000 | ||
Post-modification Outstanding Recorded Investment | $ 50,000 | $ 50,000 | ||
Change in terms [Member] | ||||
Number Of Contracts | integer | 0 | 1 | 1 | 2 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 986,000 | $ 164,000 | $ 1,096,000 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 986,000 | $ 164,000 | $ 1,096,000 |
Total [Member] | ||||
Number Of Contracts | integer | 3 | 1 | 4 | 2 |
Pre-modification Outstanding Recorded Investment | $ 50,000 | $ 986,000 | $ 214,000 | $ 1,096,000 |
Post-modification Outstanding Recorded Investment | $ 50,000 | $ 986,000 | $ 214,000 | $ 1,096,000 |
Troubled Debt Restructuring (_2
Troubled Debt Restructuring (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Troubled Debt Restructuring (Tables) | ||
Troubled debt restructuring cost | $ 4,205 | $ 5,138 |
Allowance of debt restructuring | $ 124 | $ 167 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Beginning Balance | $ (5,092,000) | |||
Ending Balance | $ (36,400,000) | (36,400,000) | ||
Unrealized Securities Gains (Losses) [Member] | ||||
Beginning Balance | (16,060,000) | $ (310,000) | (1,801,000) | $ 804,000 |
Change In Unrealized Securities Gains (losses), Net Of Tax | (16,972,000) | 279,000 | (31,231,000) | (835,000) |
Reclassification for previously unrealized net losses recognized in net income, net of tax benefit of $20 | (77,000) | (77,000) | ||
Ending Balance | (33,109,000) | (31,000) | (33,109,000) | (31,000) |
Adjustments Related to Pension Plan [Member] | ||||
Beginning Balance | (3,291,000) | (3,821,000) | (3,291,000) | (3,821,000) |
Change In Unrealized Securities Gains (losses), Net Of Tax | 0 | 0 | 0 | 0 |
Reclassification for previously unrealized net losses recognized in net income, net of tax benefit of $20 | 0 | 0 | ||
Ending Balance | (3,291,000) | (3,821,000) | (3,291,000) | (3,821,000) |
Accumulated Other Comprehensive Loss [Member] | ||||
Beginning Balance | (19,351,000) | (4,131,000) | (5,092,000) | (3,017,000) |
Change In Unrealized Securities Gains (losses), Net Of Tax | (16,972,000) | 279,000 | (31,231,000) | (835,000) |
Reclassification for previously unrealized net losses recognized in net income, net of tax benefit of $20 | (77,000) | (77,000) | ||
Ending Balance | $ (36,400,000) | $ (3,852,000) | $ (36,400,000) | $ (3,852,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Loss | ||||
Tax effect after adjustment | $ 20 | $ 0 | $ 20 | $ 0 |
Reclassifications adjustment for losses included in net income | $ 97 | $ 0 | $ 97 | $ 0 |
Business Segments (Details)
Business Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Interest Income | $ 10,009,000 | $ 8,819,000 | $ 19,070,000 | $ 17,565,000 | |
Service Charges On Deposits | 274,000 | 254,000 | 581,000 | 539,000 | |
Mortgage Banking Income, Net | 637,000 | 1,027,000 | 1,379,000 | 2,699,000 | |
Title Insurance Income | 366,000 | 595,000 | 839,000 | 1,051,000 | |
Interest Expense | 1,007,000 | 1,069,000 | 2,011,000 | 2,137,000 | |
Income Tax Expense (benefit) | 131,000 | 422,000 | 43,000 | 693,000 | |
Net Income (Loss) attributable to F&M Bank Corp. | 1,789,000 | 3,220,000 | 4,317,000 | 7,021,000 | |
Goodwill | 3,082,000 | 3,082,000 | $ 3,082,000 | ||
Total Assets | 1,231,552,000 | 1,231,552,000 | $ 1,219,342,000 | ||
VS Title | |||||
Interest Income | 0 | 0 | 0 | ||
Service Charges On Deposits | 0 | 0 | 0 | ||
Investment Services And Insurance Income | 0 | 0 | 0 | ||
Mortgage Banking Income, Net | 0 | 0 | 0 | ||
Title Insurance Income | 366,000 | 595,000 | 839,000 | 1,051,000 | |
Other Operating Income | 0 | 0 | 0 | ||
Total Income | 366,000 | 595,000 | 839,000 | 1,051,000 | |
Interest Expense | 0 | 0 | 0 | ||
Provision For Loan Losses | 0 | 0 | 0 | ||
Salary And Benefit Expense | 309,000 | 296,000 | 610,000 | 582,000 | |
Other Operating Expenses | 79,000 | 72,000 | 162,000 | 154,000 | |
Total Expense | 388,000 | 368,000 | 772,000 | 736,000 | |
Income (loss) Before Taxes | (22,000) | 227,000 | 67,000 | 315,000 | |
Income Tax Expense (benefit) | 0 | 0 | 0 | ||
Net Income (Loss) attributable to F&M Bank Corp. | (22,000) | 227,000 | 67,000 | 315,000 | |
Goodwill | 3,000 | 3,000 | 3,000 | 3,000 | |
Total Assets | 4,635,000 | 3,049,000 | 4,635,000 | 3,049,000 | |
Parent Only | |||||
Interest Income | 1,000 | 1,000 | 1,000 | 1,000 | |
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 | 55,000 | 0 | 76,000 | ||
Total Income | 1,000 | (54,000) | 1,000 | (75,000) | |
Interest Expense | 114,000 | 178,000 | 251,000 | 376,000 | |
Provision For Loan Losses | 0 | 0 | |||
Salary And Benefit Expense | 0 | 0 | |||
Other Operating Expenses | 6,000 | 19,000 | (13,000) | 39,000 | |
Total Expense | 120,000 | 197,000 | 238,000 | 415,000 | |
Income (loss) Before Taxes | (119,000) | (251,000) | (237,000) | (490,000) | |
Income Tax Expense (benefit) | 32,000 | (3,000) | (473,000) | (310,000) | |
Net Income (Loss) attributable to F&M Bank Corp. | (151,000) | (248,000) | 236,000 | (180,000) | |
Goodwill | 211,000 | 164,000 | 211,000 | 164,000 | |
Total Assets | 83,962,000 | 112,338,000 | 83,962,000 | 112,338,000 | |
F&M Bank Member | |||||
Interest Income | 9,982,000 | 8,773,000 | 19,019,000 | 17,489,000 | |
Service Charges On Deposits | 274,000 | 254,000 | 581,000 | 539,000 | |
Investment Services And Insurance Income | 0 | 0 | |||
Mortgage Banking Income, Net | 0 | 0 | |||
Title Insurance Income | 0 | 0 | |||
Other Operating Income | 796,000 | 1,028,000 | 1,504,000 | 1,621,000 | |
Total Income | 11,052,000 | 10,055,000 | 21,104,000 | 19,649,000 | |
Interest Expense | 900,000 | 895,000 | 1,774,000 | 1,771,000 | |
Provision For Loan Losses | 600,000 | (1,250,000) | 150,000 | (1,975,000) | |
Salary And Benefit Expense | 4,056,000 | 3,598,000 | 8,003,000 | 7,112,000 | |
Other Operating Expenses | 3,308,000 | 3,466,000 | 6,636,000 | 6,300,000 | |
Total Expense | 8,864,000 | 6,709,000 | 16,563,000 | 13,208,000 | |
Income (loss) Before Taxes | 2,188,000 | 3,346,000 | 4,541,000 | 6,441,000 | |
Income Tax Expense (benefit) | 83,000 | 401,000 | 469,000 | 922,000 | |
Net Income (Loss) attributable to F&M Bank Corp. | 2,105,000 | 2,945,000 | 4,072,000 | 5,519,000 | |
Goodwill | 2,868,000 | 2,868,000 | 2,868,000 | 2,868,000 | |
Total Assets | 1,230,308,000 | 1,110,211,000 | 1,230,308,000 | 1,110,211,000 | |
F&M Mortgage | |||||
Interest Income | 32,000 | 61,000 | |||
Service Charges On Deposits | 0 | ||||
Investment Services And Insurance Income | 0 | ||||
Mortgage Banking Income, Net | 637,000 | 1,379,000 | |||
Title Insurance Income | 0 | ||||
Other Operating Income | 2,000 | ||||
Total Income | 669,000 | 1,442,000 | |||
Interest Expense | 6,000 | 12,000 | |||
Provision For Loan Losses | 0 | ||||
Salary And Benefit Expense | 623,000 | 1,196,000 | |||
Other Operating Expenses | 250,000 | 464,000 | |||
Total Expense | 879,000 | 1,672,000 | |||
Income (loss) Before Taxes | (210,000) | (230,000) | |||
Income Tax Expense (benefit) | 0 | ||||
Net Income (Loss) attributable to F&M Bank Corp. | (210,000) | (230,000) | |||
Goodwill | 0 | 0 | |||
Total Assets | 9,499,000 | 9,499,000 | |||
TEB Life/FMFS | |||||
Interest Income | 7,000 | 29,000 | 15,000 | 59,000 | |
Service Charges On Deposits | 0 | 0 | |||
Investment Services And Insurance Income | 201,000 | 182,000 | 454,000 | 530,000 | |
Mortgage Banking Income, Net | 0 | 0 | |||
Title Insurance Income | 0 | 0 | |||
Other Operating Income | 0 | 0 | |||
Total Income | 208,000 | 211,000 | 469,000 | 589,000 | |
Interest Expense | 0 | 0 | |||
Provision For Loan Losses | 0 | 0 | |||
Salary And Benefit Expense | 114,000 | 84,000 | 218,000 | 181,000 | |
Other Operating Expenses | 11,000 | 13,000 | 32,000 | 19,000 | |
Total Expense | 125,000 | 97,000 | 250,000 | 200,000 | |
Income (loss) Before Taxes | 83,000 | 114,000 | 219,000 | 389,000 | |
Income Tax Expense (benefit) | 16,000 | 24,000 | 47,000 | 81,000 | |
Net Income (Loss) attributable to F&M Bank Corp. | 67,000 | 90,000 | 172,000 | 308,000 | |
Goodwill | 0 | 0 | 0 | 0 | |
Total Assets | 8,863,000 | 8,367,000 | 8,863,000 | 8,367,000 | |
Eliminations | |||||
Interest Income | 13,000 | 36,000 | 26,000 | 108,000 | |
Service Charges On Deposits | 0 | 0 | |||
Investment Services And Insurance Income | (3,000) | (2,000) | (5,000) | (3,000) | |
Mortgage Banking Income, Net | 0 | 0 | |||
Title Insurance Income | 0 | 0 | |||
Other Operating Income | 0 | 0 | |||
Total Income | (16,000) | (38,000) | (31,000) | (111,000) | |
Interest Expense | 13,000 | 36,000 | 26,000 | 108,000 | |
Provision For Loan Losses | 0 | 0 | |||
Salary And Benefit Expense | 0 | 0 | |||
Other Operating Expenses | (3,000) | (2,000) | (5,000) | (3,000) | |
Total Expense | (16,000) | (38,000) | (31,000) | (111,000) | |
Income (loss) Before Taxes | 0 | 0 | |||
Income Tax Expense (benefit) | 0 | 0 | |||
Net Income (Loss) attributable to F&M Bank Corp. | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | 0 | |
Total Assets | 105,715,000 | 142,959,000 | 105,715,000 | 142,959,000 | |
F&M Bank Corp Consolidated | |||||
Interest Income | 10,009,000 | 8,819,000 | 19,070,000 | 17,565,000 | |
Service Charges On Deposits | 274,000 | 254,000 | 581,000 | 539,000 | |
Investment Services And Insurance Income | 198,000 | 180,000 | 449,000 | 527,000 | |
Mortgage Banking Income, Net | 637,000 | 1,027,000 | 1,379,000 | 2,699,000 | |
Title Insurance Income | 366,000 | 595,000 | 839,000 | 1,051,000 | |
Other Operating Income | 796,000 | 1,030,000 | 1,506,000 | 1,625,000 | |
Total Income | 12,280,000 | 11,905,000 | 23,824,000 | 24,006,000 | |
Interest Expense | 1,007,000 | 1,069,000 | 2,011,000 | 2,137,000 | |
Provision For Loan Losses | 600,000 | (1,250,000) | 150,000 | (1,975,000) | |
Salary And Benefit Expense | 5,102,000 | 4,645,000 | 10,027,000 | 9,157,000 | |
Other Operating Expenses | 3,651,000 | 3,799,000 | 7,276,000 | 6,973,000 | |
Total Expense | 10,360,000 | 8,263,000 | 19,464,000 | 16,292,000 | |
Income (loss) Before Taxes | 1,920,000 | 3,642,000 | 4,360,000 | 7,714,000 | |
Income Tax Expense (benefit) | 131,000 | 422,000 | 43,000 | 693,000 | |
Net Income (Loss) attributable to F&M Bank Corp. | 1,789,000 | 3,220,000 | 4,317,000 | 7,021,000 | |
Goodwill | 3,082,000 | 3,082,000 | 3,082,000 | 3,082,000 | |
Total Assets | $ 1,231,552,000 | 1,104,975,000 | $ 1,231,552,000 | 1,104,975,000 | |
VBS Mortgage | |||||
Interest Income | 52,000 | 124,000 | |||
Service Charges On Deposits | 0 | ||||
Investment Services And Insurance Income | 0 | ||||
Mortgage Banking Income, Net | 1,027,000 | 2,699,000 | |||
Title Insurance Income | 0 | 0 | |||
Other Operating Income | 57,000 | 80,000 | |||
Total Income | 1,136,000 | 2,903,000 | |||
Interest Expense | 32,000 | 98,000 | |||
Provision For Loan Losses | 0 | ||||
Salary And Benefit Expense | 667,000 | 1,282,000 | |||
Other Operating Expenses | 231,000 | 464,000 | |||
Total Expense | 930,000 | 1,844,000 | |||
Income (loss) Before Taxes | 206,000 | 1,059,000 | |||
Income Tax Expense (benefit) | 0 | ||||
Net Income (Loss) attributable to F&M Bank Corp. | 206,000 | 1,059,000 | |||
Goodwill | 47,000 | 47,000 | |||
Total Assets | $ 13,969,000 | $ 13,969,000 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | 1 Months Ended | ||
Jul. 29, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | |
Balance Of Obligations | $ 0 | $ 10,000 | |
Short term deb | 30,000,000 | ||
Weighted Average Cost | 0.81% | ||
Subordinated Debt | 11,788 | ||
FHLB short term | |||
Letter Of Credit | $ 10,000,000 | ||
2027 Notes [Member] | Accredited Investor [Member] | |||
Interest Rate | 5.75% | ||
Interest Rate Description | The 2027 Notes will bear interest at 5.75% per annum, payable semi-annually in arrears. Beginning on July 31, 2022 through maturity, the 2027 Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The 2027 Notes will mature on July 31, 2027. | ||
Maturity Date | July 31, 2027. | ||
Principal Amount | $ 5,000,000 | ||
2030 Notes [Member] | Accredited Investor [Member] | |||
Interest Rate | 6% | ||
Interest Rate Description | The 2030 Notes will initially bear interest at 6.00% per annum, beginning July 29, 2020 to but excluding July 31, 2025, payable semi-annually in arrears. From and including July 31, 2025 through July 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 593 basis points, payable quarterly in arrears. | ||
Maturity Date | July 31, 2030. | ||
Principal Amount | $ 7,000,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total Noninterest Income | $ 2,271 | $ 3,086 | $ 4,754 | $ 6,441 |
Service Charges on Deposits | ||||
Total Noninterest Income | 274 | 254 | 581 | 539 |
Investment Services and Insurance Income | ||||
Total Noninterest Income | 198 | 180 | 449 | 527 |
Title Insurance Income | ||||
Total Noninterest Income | 366 | 595 | 839 | 1,051 |
ATM and check card fees | ||||
Total Noninterest Income | 632 | 600 | 1,195 | 1,120 |
Other | ||||
Total Noninterest Income | 242 | 448 | 399 | 514 |
Noninterest Income (in-scope of Topic 606) | ||||
Total Noninterest Income | 1,712 | 2,077 | 3,463 | 3,751 |
Noninterest Income (out-of-scope of Topic 606) | ||||
Total Noninterest Income | $ 559 | $ 1,009 | $ 1,291 | $ 2,690 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||||
Lease Liabilities | $ 865 | $ 865 | ||
Right-of-use Assets | $ 842 | $ 842 | ||
Weighted Average Remaining Lease Term | 2 years 11 months 19 days | |||
Weighted Average Discount Rate | 3.10% | 3.10% | ||
Operating Lease Cost | $ 47 | $ 15 | $ 94 | $ 51 |
Total Lease Cost | 47 | 15 | 94 | 51 |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities | $ 53 | $ 35 | $ 105 | $ 66 |
Leases (Details 1)
Leases (Details 1) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases | |
Nine Months Ending December 31, 2022 | $ 79 |
Twelve Months Ending December 31, 2023 | 135 |
Twelve Months Ending December 31, 2024 | 136 |
Twelve Months Ending December 31, 2025 | 98 |
Twelve Months Ending December 31, 2026 | 70 |
Thereafter | 518 |
Total Undiscounted Cash Flows | 1,036 |
Discount | 171 |
Lease Liabilities | $ 865 |
Mortgage Banking and Derivati_2
Mortgage Banking and Derivatives (Details Narrative) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) integer | Dec. 31, 2021 USD ($) integer | |
Total Amount Of Conducted Business | $ 5,449 | |
Total Amount Of Conducted Business Unpaid | 5,509 | |
Other Assets [Member] | ||
Notional Debt Amount | $ 24,826 | $ 18,801 |
Total Notional Positions | integer | 78 | 70 |
Fair Value Of Derivative Instruments | $ 273 | $ 258 |
Other Liability [Member] | ||
Total Notional Positions | integer | 95 | 91 |
Fair Value Of Forward Sales | $ 535 | $ 112 |
Notional Amount | $ 30,335 | $ 23,721 |
StockBased Compensation (Detail
StockBased Compensation (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Unrecognized compensation expense | $ 780 |
Directors [Member] | |
Stock Plan Committee Awarded Shares Issued | shares | 1,145 |
Employee Service Fair Value | $ 35,323 |
March 5, 2021 [Member] | |
Stock Plan Committee Awarded Shares Issued | shares | 17,763 |
Employee Service Fair Value | $ 547,989 |
Description Of Vest Shares | These shares vest 25% over each of the next four years. |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) $ in Thousands | 1 Months Ended |
Jul. 29, 2022 USD ($) | |
Subsequent Event | |
Redeemed amount | $ 5,000 |