Basis of Presentation and Significant Accounting Policies [Text Block]

Note 1. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

First Community Bankshares, Inc. (the “Company”) is a financial holding company incorporated under the laws of the Commonwealth of Virginia. The Company’s principal executive office is located in Bluefield, Virginia. The Company provides banking products and services to individual and commercial customers through its wholly owned subsidiary First Community Bank (the “Bank”), a Virginia-chartered banking institution founded in 1874. The Bank offers wealth management and investment advice through its Trust Division and wholly owned subsidiary First Community Wealth Management (“FCWM”). Unless the context suggests otherwise, the terms “First Community,” “Company,” “we,” “our,” and “us” refer to First Community Bankshares, Inc. and its subsidiaries as a consolidated entity.

Principles of Consolidation

The Company’s accounting and reporting policies conform with U.S. generally accepted accounting principles (“GAAP”) and prevailing practices in the banking industry. The consolidated financial statements include all accounts of the Company and its wholly owned subsidiaries and eliminate all intercompany balances and transactions. The Company operates in one business segment, Community Banking, which consists of all operations, including commercial and consumer banking, lending activities, and wealth management.

The Company maintains investments in variable interest entities (“VIEs”). VIEs are legal entities in which equity investors do not have sufficient equity at risk for the entity to independently finance its activities, or as a group, the holders of the equity investment at risk lack the power through voting or similar rights to direct the activities of the entity that most significantly impact its economic performance, or do not have the obligation to absorb the expected losses of the entity or the right to receive expected residual returns of the entity. Consolidation of a VIE is required if a reporting entity is the primary beneficiary of the VIE. The Company periodically reviews its VIEs and has determined that it is not the primary beneficiary of any VIE; therefore, the assets and liabilities of these entities are not consolidated into the financial statements.

Reclassification

Certain amounts reported in prior years have been reclassified to conform to the current year’s presentation. These reclassifications had no effect on the Company’s results of operations, financial position, or net cash flow.

Use of Estimates

To prepare financial statements in conformity with accounting principles generally accepted in the United States of America management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

Summary of Significant Accounting Policies

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able to transact, and willing to transact.

The fair value hierarchy ranks the inputs used in measuring fair value as follows:

●

Level 1 – Observable, unadjusted quoted prices in active markets

●

Level 2 – Inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability

●

Level 3 – Unobservable inputs with little or no market activity that require the Company to use reasonable inputs and assumptions

The Company uses fair value measurements to record adjustments to certain financial assets and liabilities on a recurring basis. The Company may be required to record certain assets at fair value on a nonrecurring basis in specific circumstances, such as evidence of impairment. Methodologies used to determine fair value might be highly subjective and judgmental in nature; therefore, valuations may not be precise. If the Company determines that a valuation technique change is necessary, the change is assumed to have occurred at the end of the respective reporting period.

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks, federal funds sold, and interest-bearing balances on deposit with the Federal Home Loan Bank ("FHLB"), the Federal Reserve Bank of Richmond ("FRB"), and correspondent banks that are available for immediate withdrawal.

Investment Securities

Management classifies debt securities as held-to-maturity or available-for-sale based on the intent and ability to hold the securities to maturity. Debt securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity securities and carried at amortized cost. Debt securities not classified as held to maturity are classified as available-for-sale securities and carried at estimated fair value. Available-for-sale securities consist of securities the Company intends to hold for indefinite periods of time including securities to be used as part of the Company’s asset/liability management strategy and securities that may be sold for a variety of reasons. Unrealized gains and losses on available-for-sale securities are included in accumulated other comprehensive income (“AOCI”), net of income taxes, in stockholders’ equity. Gains or losses on calls, maturities, or sales of investment securities are recorded based on the specific identification method and included in noninterest income. Premiums are amortized to first call date and discounts are accreted over the life of a security into interest income.

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses and the creation of an allowance for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) our intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. The Company evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. The nature of the collateral is considered along with potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses in the Statement of Income and establish an allowance for credit losses on the Balance Sheet.

The Company excludes the accrued interest receivable, from the amortized cost basis in measuring expected credit losses on the investment securities. Nor does the Company record an allowance for credit losses on accrued interest receivable. As of December 31, 2024, the accrued interest receivable for investment securities available for sale was $ 694 thousand compared to $1.25 million as of December 31, 2023.

Other Investments

As a condition of membership in the FHLB and the Federal Reserve, the Company is required to hold a minimum level of stock in the FHLB of Atlanta and the FRB of Richmond. These securities are carried at cost and periodically reviewed for impairment. The total investment in FHLB and FRB stock, which is included in other assets, was $12.78 million as of December 31, 2024, and $13.04 million as of December 31, 2023.

The Company owns certain long-term equity investments without readily determinable fair values, including certain tax credit limited partnerships and various limited liability companies that manage real estate investments, facilitate tax credits, and provide title insurance and other related financial services. These investments are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The total carrying value in these investments, which is included other assets, totaled $3.62 million as of December 31, 2024, and $3.70 million as of December 31, 2023.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting as outlined in using Topic 805 of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. In instances where the price of the acquired business is less than the net assets acquired, a gain on the purchase is recorded. Fair values are assigned based on quoted prices for similar assets, if readily available, or appraisals by qualified independent parties for relevant asset and liability categories. Certain financial assets and liabilities are valued using discount models that apply current discount rates to streams of cash flow. Valuation methods require assumptions, which can result in alternate valuations, varying levels of goodwill or bargain purchase gains, or amortization expense or accretion income. Management must make estimates for the useful or economic lives of certain acquired assets and liabilities that are used to establish the amortization or accretion of some intangible assets and liabilities, such as core deposits. Fair values are subject to refinement for up to one year after the closing date of the acquisition as additional information about the closing date fair values becomes available. Acquisition and divestiture activities are included in the Company’s consolidated results of operations from the closing date of the transaction. Acquisition and divestiture related costs are recognized in noninterest expense as incurred. For additional information, see “Purchased Credit Deteriorated Loans” and “Intangible Assets” below.

Loans Held for Investment

Loans classified as held for investment are originated with the intent to hold indefinitely, until maturity, or until pay-off. Loans held for investment are carried at the principal amount outstanding, net of unearned income and any necessary write-downs to reduce individual loans to net realizable value. Interest income on performing loans is recognized as interest income at the contractual rate of interest. Loan origination fees, including loan commitment and underwriting fees, are reduced by direct costs associated with loan processing, including salaries, legal review, and appraisal fees. Net deferred loan fees are deferred and amortized over the life of the related loan or commitment period.

Purchased Performing Loans. Purchased loans that are deemed to be performing at the acquisition date are accounted for using the contractual cash flow method of accounting, which results in the loans being recorded at fair value with a credit discount. The fair value discount or premium is accreted or amortized, as the case may be, as an adjustment to yield over the estimated contractual lives of the loans.

Purchased Credit Deteriorated (“PCD”) Loans. Purchased credit-deteriorated, otherwise referred to herein as PCD, assets are defined as acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e. allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition date, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the fair value and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the provision for credit losses. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the standard, the Company’s acquired purchased credit impaired loans were treated as PCD loans.

Individually Evaluated Loans and Nonperforming Assets. The Company maintains an active and robust problem credit identification system through its ongoing credit review function. When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company currently maintains a net book balance threshold of $500,000 for individually-evaluated loans. Generally, individually-evaluated loans are on nonaccrual status. Based on the threshold above, consumer loans will generally remain in pools unless they meet the dollar threshold and foreclosure is probable. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on "AIR". The accrual of interest, which is based on the daily amount of principal outstanding, on individually evaluated loans is generally continued unless the loan becomes delinquent 90 days or more.

Loans are considered past due when either principal or interest payments become contractually delinquent by 30 days or more. The Company’s policy is to discontinue the accrual of interest, if warranted, on loans based on the payment status, evaluation of the related collateral, and the financial strength of the borrower. Loans that are 90 days or more past due are placed on nonaccrual status. Management may elect to continue the accrual of interest when the loan is well secured and in process of collection. When interest accruals are discontinued, interest accrued and not collected in the current year is reversed from income, and interest accrued and not collected from prior years is charged to the allowance for credit losses. Nonaccrual loans may be returned to accrual status when all principal and interest amounts contractually due, including past due payments, are brought current; the ability of the borrower to repay the obligation is reasonably assured; and there is generally a period of at least six months of repayment performance by the borrower in accordance with the contractual terms.

Seriously delinquent loans are evaluated for loss mitigation options. Closed-end retail loans are generally charged off against the allowance for credit losses when the loans become 120 days past due. Open-end retail loans and residential real estate secured loans are generally charged off when the loans become 180 days past due. Unsecured loans are generally charged off when the loans become 90 days past due. All other loans are charged off against the allowance for credit losses after collection attempts have been exhausted, which generally is within 120 days. Recoveries of loans previously charged off are credited to the allowance for credit losses in the period received.

Effective January 1, 2023, the Company adopted Financial Accounting Standards Board issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. The allowance for credit losses incorporates an estimate of lifetime credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the the time of the modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, the Company may allow a loan to go interest only for a specified period of time.

Other real estate owned (“OREO”) acquired through foreclosure, or other settlement, is carried at the lower of cost or fair value less estimated selling costs. The fair value is generally based on current third-party appraisals. When a property is transferred into OREO, any excess of the loan balance over the net realizable fair value is charged against the allowance for credit losses. Operating expenses, gains, and losses on the sale of OREO are included in other noninterest expense in the Company’s consolidated statements of income after any fair value write-downs are recorded as valuation adjustments.

Allowance for Credit Losses (ACL)

The Company reviews our allowance for credit losses quarterly to determine if it is sufficient to absorb expected credit losses in the portfolio. This determination requires management to make significant estimates and assumptions. While the Company uses its best judgment and available information, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates, and the view of regulatory authorities towards loan classifications. These uncertainties may result in material changes to the allowance for credit losses in the near term; however, the amount of the change cannot reasonably be estimated.

The ACL is an estimate of losses that will result from the inability of borrowers to make required loan payments. The Company established the incremental increase in the ACL at the adoption through retained earnings and subsequent adjustments will be made through a provision for credit losses charged to earnings. Loans charged off are recorded against the ACL and subsequent recoveries increase the ACL when they are recognized.

A systematic methodology is used to determine ACL for loans held for investment and certain off-balance sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. The Company considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio. The Company’s estimate of its ACL involves a high degree of judgement and reflects management’s best estimate within the range of expected credit losses. The Company recognizes in net income the amount needed to adjust the ACL for management’s current estimate of expected credit losses. The Company’s ACL is calculated using collectively evaluated and individually evaluated loans.

The Company collectively evaluates loans that share similar risk characteristics. In general, loans are segmented by loan purpose. The Company collectively evaluates loans within the following consumer and commercial segments: Loans secured by 1-4 Family Properties, Home Equity Lines of Credit (“HELOC”), Owner Occupied Construction Loans, Consumer Loans, Commercial and Industrial, Multi-family, Non-farm/Non-residential Property, Commercial Construction/A&D/other Land Loans, Agricultural Loans, Credit Card Loans, Loans Secured by Farmland, and Other Consumer Loans (Overdrafts).

Risk characteristics of residential real estate loans which include loans secured by Single family properties, HELOC, and Owner occupied construction loans are dependent upon individual borrowers who are affected by changes in general economic conditions, real estate valuations, and the demand for housing. Commercial and Industrial, Multi-family residential, Non-farm/non-residential, Agricultural, and Loans secured by Farmland are similar in that they are generally dependent upon the borrower's internal cash flow from operations to service the debt and changes in general economic conditions. Commercial construction, Development, and other land loans, Consumer, and Other consumer loans (open pool) are similar in that they are dependent on changes in general economic conditions.

For collectively evaluated loans, the Company uses a combination of discounted cash flow and open pool to estimate expected credit losses. During 2022, the Company changed third party model providers which necessitated a change from remaining life to open pool for the portfolios noted above. The change in method was not quantitatively significant. In addition to its own loss experience, management also includes peer bank historical loss experience in its assessment of expected credit losses to determine the ACL. The Company utilized call report data to measure its and its peers' historical credit losses experience with similar risk characteristics within the segments over an economic cycle. The Company reviewed the historical loss information to appropriately adjust for differences in current asset specific risk characteristics. Also considered were further adjustments to historical loss information for current conditions and reasonable and supportable forecasts that differ from the conditions that existed for the period over which historical information was evaluated. For the majority of the segments of collectively evaluated loans, the Company incorporated at least one macroeconomic driver using a statistical regression modeling methodology.

The Company considers forward-looking information in estimated expected credit losses. The Company subscribes to a third-party service which provides summary detail of dozens of economic forecasts. Using that information and other publicly available economic forecasts, management determines the economic variables to use for the one-year reasonable and supportable forecast period. Management has determined that the forecast period is consistent with how the Company has historically forecasted for its profitability planning and capital management. Management has evaluated the appropriateness of the reasonable and supportable forecast for the current period along with the inputs used in the estimation of expected credit losses. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to historical loss information over eight quarters using a straight-line approach. Management may apply different reversion techniques depending on the economic environment for the financial asset portfolio and as of the current period has utilized a linear reversion technique.

Included in its systematic methodology to determine its ACL for loans held for investment and certain off-balance sheet credit exposures, The Company considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process. These qualitative adjustments either increase or decrease the quantitative model estimation. Each period the Company considers qualitative factors that are relevant within the qualitative framework that includes the following: 1) changes in lending policies and procedures, 2) changes in economic conditions, 3) changes in portfolio nature and volume, 4) changes in management, 5) changes in past due loans, 6) changes in the quality of the Company’s credit review system, 7) changes in the value of underlying collateral, 8) the effect of concentrations of credit, and 9) the effect of other external factors.

When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company currently maintains a net book balance threshold of $500,000 for individually-evaluated loans. Generally, individually-evaluated loans are on nonaccrual status. Based on the threshold above, consumer loans will generally remain in pools unless they meet the dollar threshold and foreclosure is probable. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset.

When loans are acquired they are identified as either purchased credit deteriorated ("PCD") or non-PCD. PCD loans represent assets that are acquired with evidence of more than insignificant credit quality deterioration since the origination of the loans as of the acquisition date. The ACL for PCD assets is recognized within the business combination accounting with no initial impact to net income. Changes is estimates of expected credit losses on PCD loans after acquisition are recognized as provision expense (or reversal of provision expense) in subsequent periods as they arise.

Non-PCD loans acquired are generally estimated at fair value using a discounted cash flow approach with assumptions of discount rate, remaining life, prepayments, probability of default, and loss given default. The actual cash flows on these loans could differ materially from the fair value estimates. The amount we record as the fair values for the loans is generally less than the contractual unpaid principal balance due from the borrowers, with the difference being referred to as the "discount" on the acquired loans. Discounts on acquired non-PCD loans are accreted to interest income over their estimated remaining lives, which may include prepayment estimates in certain circumstances. The ACL for non-PCD assets is recognized as provision expense in the same reporting period as the business combination. Estimated credit losses for acquired loans are determined using methodologies and applying estimates and assumptions similar to originated performing loans.

As previously noted, effective January 1, 2023, the Company adopted Financial Accounting Standards Board issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. The allowance for credit losses incorporates an estimate of lifetime credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the the time of the modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, the Company may allow a loan to go interest only for a specified period of time.

The Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit. The expected losses associated with these exposures within the unfunded portion of the loans will be recorded as a liability on the balance sheet with an offsetting income statement expense. The Company has determined that a majority of the Company’s off-balance-sheet credit exposures are not unconditionally cancellable. As of December 31, 2024, the liability recorded for expected credit losses on unfunded commitments in Other Liabilities was $341 thousand compared to $746 thousand as of December 31, 2023. The estimates are determined based on the likelihood of funding during the contractual term and an estimate of credit losses subsequent to funding. Estimated credit losses on subsequently funded balances are based on the same assumptions as used to estimate credit losses on existing funded loans. The current adjustment to the ACL for unfunded commitments is recognized through provision for credit losses in the Statement of Income. Prior to 2023, the current adjustment to the ACL for unfunded commitments was recognized through other operating expense in the Statement of Income. For additional information, see Note 6, “Allowance for Credit Losses,” to the Consolidated Financial Statements in Item 8 of this report.

Premises and Equipment

Premises, equipment, and leases are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets. Useful lives range from 5 to 10 years for furniture, fixtures, and equipment; 3 to 5 years for computer software, hardware, and data handling equipment; and 7 to 40 years for buildings and building improvements. Land improvements are amortized over a period of 20 years and leasehold improvements are amortized over the lesser of the term of the respective leases plus the first optional renewal period, when renewal is reasonably assured, or the estimated useful lives of the improvements. The Company leases various properties within its branch network. Leases generally have initial terms of up to 10 years and most contain options to renew with increases in rent. All leases are accounted for as operating leases. Maintenance and repairs are charged to current operations while improvements that extend the economic useful life of the underlying asset are capitalized. Disposition gains and losses are reflected in current operations.

Intangible Assets

Intangible assets consist of goodwill, core deposit intangible assets, and other identifiable intangible assets that result from business combinations. Goodwill represents the excess of the purchase price over the fair value of net assets acquired that is allocated to the appropriate reporting unit when acquired. Core deposit intangible assets represent the future earnings potential of acquired deposit relationships that are amortized over their estimated remaining useful lives. Other identifiable intangible assets primarily represent the rights arising from contractual arrangements that are amortized using the straight-line method.

An interim analysis of Goodwill is performed quarterly, and goodwill is tested for impairment annually, on October 31st, or more frequently if events or circumstances indicate there may be impairment. We have one reporting unit, Community Banking. If we elect to perform a qualitative assessment, we evaluate factors such as macroeconomic conditions, industry and market considerations, overall financial performance, changes in stock price, and progress towards stated objectives in determining if it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, a quantitative test is performed; otherwise, no further testing is required. The quantitative test consists of comparing the fair value of our reporting unit to its carrying amount, including goodwill. If the fair value of our reporting unit is greater than its book value, no goodwill impairment exists. If the carrying amount of our reporting unit is greater than its calculated fair value, a goodwill impairment charge is recognized for the difference.

Management has concluded that there was no goodwill impairment for 2024 and 2023.

Bank Owned Life Insurance

The Company has purchased life insurance policies on certain key executives and personnel. The value recorded on the balance sheet is the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other changes or amounts due that are probable at settlement.

Other Comprehensive Income

Other comprehensive income includes unrealized gains and losses on securities available-for-sale and changes in the funded status of the nonqualified domestic, noncontributory defined benefit plans which are recognized as separate components of equity.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonable estimated. For additional information, see Note 19, “Litigation, Commitments, and Contingencies,” to the Consolidated Financial Statements in Item 8 of this report.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase are generally accounted for as collateralized financing transactions and recognized as short-term borrowings in the Company’s consolidated balance sheets. Securities, generally U.S. government and federal agency securities, pledged as collateral under these arrangements can be sold or repledged only if replaced by the secured party. The fair value of the collateral provided to a third party is continually monitored and additional collateral is provided as appropriate.

Derivative Instruments

The Company primarily uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities and on future cash flows. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another asset to the other party based on a notional amount and an underlying asset as specified in the contract such as interest rates, equity security prices, currencies, commodity prices, or credit spreads. These derivative instruments may consist of interest rate swaps, floors, caps, collars, futures, forward contracts, and written and purchased options. Derivative contracts often involve future commitments to exchange interest payment streams or currencies based on a notional or contractual amount, such as interest rate swaps or currency forwards, or to purchase or sell other financial instruments at specified terms on a specified date, such as options to buy or sell securities or currencies. Derivative instruments are subject to counterparty credit risk due to the possibility that the Company will incur a loss because a counterparty, which may be a bank, a broker-dealer or a customer, fails to meet its contractual obligations. This risk is measured as the expected positive replacement value of contracts. Derivative contracts may be executed only with exchanges or counterparties approved by the Company’s Asset/Liability Management Committee.

If certain conditions are met, a derivative may be designated as a hedge related to fair value, cash flow, or foreign exposure risk. The recognition of changes in the fair value of a derivative instrument varies depending on the intended use of the derivative and the resulting designation. The Company accounts for hedges of customer loans as fair value hedges. The change in fair value of the hedging derivative and the change in fair value of the hedged exposure are recorded in earnings. Any hedge ineffectiveness is also reflected in current earnings. Changes in the fair value of derivatives not designated as hedging instruments are recognized as a gain or loss in earnings. The Company formally documents any relationships between hedging instruments and hedged items and the risk management objective and strategy for undertaking each hedged transaction. All derivative instruments are reported at fair value in the consolidated balance sheets.

Equity-Based Compensation

The cost of employee services received in exchange for equity instruments, including stock options and restricted stock awards, is generally measured at fair value on the grant date. The Black-Scholes-Merton valuation model is used to estimate the fair value of stock options at the grant date while the fair value of restricted stock awards is based on the market price of the Company’s common stock on the grant date. The Black-Scholes-Merton model incorporates the following assumptions: the expected volatility is based on the weekly historical volatility of the Company’s common stock price over the expected term of the option; the expected term is generally calculated using the shortcut method; the risk-free interest rate is based on the U.S. Department of the Treasury’s (“Treasury”) yield curve on the grant date with a term comparable to the grant; and the dividend yield is based on the Company’s dividend yield using the most recent dividend rate paid per share and trading price of the Company’s common stock. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the restriction period for restricted stock awards. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Revenue Recognition

Wealth management. Wealth management income represents monthly fees due from wealth management customers in consideration for managing and administrating the customers' assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services and similar fiduciary activities. Revenue is recognized when the performance obligation is completed each month, which is generally the time that payment is received. Income also includes fees received from a third party broker-dealer as part of a revenue-sharing agreement for fees earned from customers that are referred to the third party. These fees are paid to the Company by the third party on a quarterly basis and recognized ratably throughout the quarter as the performance obligation is satisfied.

Service charges on deposits and other service charges and fees.

Service charges on deposits and other service charges and fees represent general service fees for account maintenance and activity and transaction-based fees that consist of transaction-based revenue, time-based revenue (service period), item-based revenue, or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied. Other service charges and fees include interchange income from debit and credit card transaction fees.

Advertising Expenses

Advertising costs are generally expensed as incurred. The Company may establish accruals for incurred advertising expenses in the course of a fiscal year.

Income Taxes

Income tax expense is comprised of the current and deferred tax consequences of events and transactions already recognized. The Company includes interest and penalties related to income tax liabilities in income tax expense. The effective tax rate, income tax expense as a percent of pre-tax income, may vary significantly from statutory rates due to tax credits and permanent differences. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are adjusted through the provision for income taxes as changes in tax laws or rates are enacted.

Per Share Results

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of potential common stock that could be issued by the Company. Under the treasury stock method of accounting, potential common stock may be issued for stock options, non-vested restricted stock awards, performance based stock awards, and convertible preferred stock. Diluted earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding for the period plus the number of dilutive potential common shares. The calculation of diluted earnings per common share excludes potential common shares that have an exercise price greater than the average market value of the Company’s common stock because the effect would be antidilutive.

Recent Accounting Standards

Standards Adopted

In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". The amendment requires companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker. This ASU became effective for the Company on December 31, 2024. The Company has one reportable segment and as such, adoption of ASU No. 2023-07 did not have a material impact on the Company's financial statements.

Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740).” The amendments in this ASU are related to the rate reconciliation and income taxes paid disclosures and are designed to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The ASU will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The adoption of this pronouncement is not expected to have a material impact on the Consolidated Financial Statements.

In November 2024, the FASB issued ASU No. 2024-03, "Expense Disaggregation Disclosures (Topic 230): Disaggregation of Income Statement Expenses". The amendment requires disclosure of disaggregated information about specific expense categories underlying certain income statement expense line items. This ASU will become effective for the Company on December 31, 2027.

The Company does not expect other recent accounting standards issued by the FASB or other standards-setting bodies to have a material impact on the consolidated financial statements.

Note 2 - Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2024

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 2. Acquisitions and Divestitures

On September 16, 2022, the Company completed the sale of its Emporia, Virginia branch (the "Emporia Branch Sale") to Benchmark Community Bank ("Benchmark"). The sale included the branch real estate, certain personal property, and all deposits associated with the branch. There were no loans included in the transaction. Benchmark paid a deposit premium of two percent for certain deposits. In addition, Benchmark paid $1.50 million for branch real estate and certain personal property. Total deposits acquired by Benchmark totaled $61.05 million. The deposits were composed of $18.38 million in demand, $28.46 million in interest-bearing demand, $11.52 million in savings, and $2.69 million in time deposits. The Company recognized a gain of $1.66 million from the Emporia Branch Sale.

On November 18, 2022, the Company and NC-based Surrey Bancorp ("Surrey"), parent company of Surrey Bank & Trust, jointly announced their entry into an agreement and plan of merger pursuant to which First Community would acquire Surrey and its wholly-owned bank subsidiary, Surrey Bank & Trust. Under the terms of the agreement and plan of merger, each share of Surrey common stock immediately converted into the right to receive 0.7159 shares of the Company's common stock. The transaction was consummated on April 21, 2023. The total purchase price for the transaction was $71.37 million.

The Surrey transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair value on the acquisition date. Fair values are preliminary and subject to refinement for up to a year after the closing date of the acquisition. The Company incurred a total of $2.99 million in merger expenses related to the Surrey transaction, $596 thousand was recorded in the last quarter of 2022 and $2.39 million in the first nine months of 2023. These costs were primarily related to data conversion, investment banking fees, and legal fees.

Goodwill arising from business combinations represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the fair value of the liabilities assumed. The Surrey acquisition resulted in the Company recognizing $14.38 million in goodwill. The primary identifiable intangible asset we typically record in connection with a whole bank or bank branch acquisition is the value of the core deposit intangibles which represents the estimated value of the long-term deposit relationships acquired in the transaction. Determining the amount of identifiable intangible assets and their average lives involves multiple assumptions and estimates and is typically determined by performing a discounted cash flow analysis, which involves a combination of any or all of the following assumptions: customer attrition/runoff, alternative funding costs, deposit servicing costs, and discount rates. The core deposit intangibles are amortized over the estimated useful lives of the deposit accounts based on a method that we believe reasonably approximates the anticipated benefit stream from this intangible. Core deposit intangibles for the Surrey transaction totaled $12.70 million.

When loans are acquired they are identified as either purchased credit deteriorated PCD or non-PCD. PCD loans represent assets that are acquired with evidence of more than insignificant credit quality deterioration since the origination of the loans as of the acquisition date. The ACL for PCD assets is recognized within business combination accounting with no initial impact to net income. Changes in estimates of expected credit losses on PCD loans after acquisition are recognized as provision expense (or reversal of provision expense) in subsequent periods as they arise. Non-PCD loans acquired are generally estimated at fair value using a discounted cash flow approach with assumptions of discount rate, remaining life, prepayments, probability of default, and loss given default. The actual cash flows on these loans could differ materially from the fair value estimates. The amount we record as the fair values for the loans is generally less than the contractual unpaid principal balance due from the borrowers, with the difference being referred to as the “discount” on the acquired loans. Discounts on acquired non-PCD loans are accreted to interest income over their estimated remaining lives, which may include prepayment estimates in certain circumstances. The ACL for non-PCD assets is recognized as provision expense in the same reporting period as the business combination. Estimated credit losses for acquired loans are determined using methodologies and applying estimates and assumptions similar to originated performing loans. The fair value of purchased loans with credit deterioration was $101.42 million on the date of acquisition with the gross contractual amount totaling $111.22 million. The Company estimates that $2.01 million of contractual cash flows specific to the purchased loans with credit deterioration will not be collected. Non purchased credit deteriorated loans acquired had a fair value of $137.55 million with a gross contractual value of $143.55 million.

	As recorded by		Fair Value				As recorded by
(Amounts in thousands, except share data)	Surrey		Adjustments				the Company
Assets
Cash and cash equivalents	$	176,700	$	—			$	176,700
Securities available for sale		22,027		(1,093	)	( a )		20,934
Loans held for investment, net of allowance and mark		251,944		(12,864	)	( b )		239,080
Premises and equipment		5,501		774		( c )		6,275
Other assets		10,787		(229	)	( d ), ( e )		10,558
Intangible assets		—		12,700		( f )		12,700
Total assets	$	466,959	$	(712	)		$	466,247

LIABILITIES
Deposits:
Noninterest-bearing	$	158,389	$	—			$	158,389
Interest-bearing		246,460		(1,214	)	( g )		245,246
Total deposits		404,849		(1,214	)			403,635
Long term debt		—		—				—
Other liabilities		6,004		(381	)	( h )		5,623
Total liabilities		410,853		(1,595	)			409,258
Net identifiable assets acquired over (under) liabilities assumed		56,106		883				56,989
Goodwill		—		14,381				14,381
Net assets acquired over liabilities assumed	$	56,106	$	15,264			$	71,370




Consideration:
First Community Bankshares, Inc. common								2,996,786
Purchase price per share of the Company's common stock							$	23.81
Fair Value of Company common stock issued								71,354
Cash paid for fractional shares								16
Fair Value of total consideration transferred							$	71,370

Explanation of fair value adjustments;

(a)	Adjustment reflects the fair value adjustment based on the Company's evaluation of the acquired investment portfolio.

(b)	Adjustment reflects the fair value adjustments of $(15.80) million based on the Company's evaluation of the acquired loan portfolio and excludes the allowance for credit losses and deferred loan fees of $2.94 million as recorded by Surrey.

(c)	Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired premises and equipment.

(d)	Adjustment reflects the fair value adjustment based on the Company's evaluation of stocks with other banks of $47 thousand.

(e)	Adjustment to record the deferred tax asset related to the fair value adjustments $(177) thousand.

(f)	Adjustment to record the core deposit intangible on the acquired deposit accounts.

(g)	Adjustment reflects the fair value adjustment based on the Company's evaluation of the time deposit portfolio.

(h)	Adjustment to reclass deferred tax asset $(99) thousand, goodwill $(282) thousand, federal income tax payable $(389) thousand, and state income tax payable $8 thousand.

Note 3 - Debt Securities

12 Months Ended

Dec. 31, 2024

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3. Debt Securities

The following tables present the amortized cost and fair value of available-for-sale debt securities, including gross unrealized gains and losses, as of the dates indicated:

	*December 31, 2024*
	*Amortized*		*Unrealized*		*Unrealized*			*Fair*
	*Cost*		*Gains*		*Losses*			*Value*
(Amounts in thousands)
U.S. Treasury securities	$	55,760	$	10	$	(1	)	$	55,769
Municipal securities		13,949		2		(114	)		13,837
Corporate Notes		28,598		—		(1,056	)		27,542
Mortgage-backed Agency securities		86,380		—		(13,679	)		72,701
Total	$	184,687	$	12	$	(14,850	)	$	169,849

	*December 31, 2023*
	*Amortized*		*Unrealized*		*Unrealized*			*Fair*
	*Cost*		*Gains*		*Losses*			*Value*
(Amounts in thousands)
U.S. Agency securities	$	5,750	$	—	$	(1	)	$	5,749
U.S. Treasury securities		146,653		16		(843	)		145,826
Municipal securities		19,528		11		(162	)		19,377
Corporate Notes		28,566		—		(1,485	)		27,081
Mortgage-backed Agency securities		94,548		2		(11,622	)		82,928
	$	295,045	$	29	$	(14,113	)	$	280,961

The following table presents the amortized cost and fair value of available-for-sale debt securities, by contractual maturity, as of December 31, 2024. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.

(Amounts in thousands)	U.S. Treasury Securities		Municipal Securities		Corporate Notes		Total
Amortized cost maturity:
One year or less	$	55,760	$	4,074	$	3,761	$	63,595
After one year through five years		—		9,875		24,837		34,712
After five years through ten years		—		—		—		—
After ten years		—		—		—		—
Amortized cost	$	55,760	$	13,949	$	28,598		98,307
Mortgage-backed securities								86,380
Total amortized cost							$	184,687

Fair value maturity:
One year or less	$	55,769	$	4,073	$	3,719	$	63,561
After one year through five years		—		9,764		23,823		33,587
After five years through ten years		—		—		—		—
After ten years		—		—		—		—
Fair value	$	55,769	$	13,837	$	27,542		97,148
Mortgage-backed securities								72,701
Total fair value							$	169,849

The following tables present the fair values and unrealized losses for available-for-sale debt securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the dates indicated:

	*December 31, 2024*
	*Less than 12 Months*					*12 Months or Longer*					*Total*
	*Fair*		*Unrealized*			*Fair*		*Unrealized*			*Fair*		*Unrealized*
	*Value*		*Losses*			*Value*		*Losses*			*Value*		*Losses*
(Amounts in thousands)
U.S. Treasury securities	$	4,984	$	(1	)	$	-	$	-		$	4,984	$	(1	)
Municipal securities		3,914		(16	)		6,638		(98	)		10,552		(114	)
Corporate Notes		—		—			27,542		(1,056	)		27,542		(1,056	)
Mortgage-backed Agency securities		4,100		(81	)		68,601		(13,598	)		72,701		(13,679	)
Total	$	12,998	$	(98	)	$	102,781	$	(14,752	)	$	115,779	$	(14,850	)

	*December 31, 2023*
	*Less than 12 Months*					*12 Months or Longer*					*Total*
	*Fair*		*Unrealized*			*Fair*		*Unrealized*			*Fair*		*Unrealized*
	*Value*		*Losses*			*Value*		*Losses*			*Value*		*Losses*
(Amounts in thousands)
U.S. Agency securities	$	5,749	$	(1	)	$	—	$	—		$	5,749	$	(1	)
U.S. Treasury securities		11,417		(14	)		129,108		(829	)		140,525		(843	)
Municipal securities		4,742		(20	)		5,484		(142	)		10,226		(162	)
Corporate Notes		—		—			27,081		(1,485	)		27,081		(1,485	)
Mortgage-backed Agency securities		3,421		(10	)		78,319		(11,612	)		81,740		(11,622	)
Total	$	25,329	$	(45	)	$	239,992	$	(14,068	)	$	265,321	$	(14,113	)

There were 103 individual debt securities in an unrealized loss position as of December 31, 2024, and their combined depreciation in value represented 8.74% of the debt securities portfolio. There were 112 individual debt securities in an unrealized loss position as of December 31, 2023, and their combined depreciation in value represented 5.02 % of the debt securities portfolio.

There were no sales of available for sale debt securities in 2024 nor in 2022. Approximately $38.98 million in securities available for sale were sold in 2023. Gross gains and gross losses were $30 thousand and $51 thousand, respectively for December 31, 2023. The carrying amount of securities pledged for various purposes totaled $24.64 million as of December 31, 2024, and $145.09 million as of December 31, 2023.

In determining whether or not a security is impaired, we consider the severity of the loss as well as our intent to hold the securities to maturity or the recovery of the cost basis. Unrealized losses have not been recognized into income as the decline in fair value is largely due to changes in interest rates and other market conditions. 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.

U.S. Treasury securities

U.S. Treasury securities are backed by the full faith and credit of the United States government. At December 31, 2024, the total amortized cost of available for sale U. S. Treasury securities was $55.76 million. Based on management's analysis and judgement, there were no credit losses attributable to U.S. Treasury securities at December 31, 2024.

Municipal securities

Municipal securities are securities issued by various municipalities in the United States. At December 31, 2024, the total amortized cost of available for sale Municipal securities was $13.95 million. The majority of the portfolio was rated AA or higher, with no securities rated below investment grade at year-end. Based on management's analysis and judgement, there were no credit losses attributable to Municipal securities at December 31, 2024.

Corporate Notes

Corporate notes are debt obligations issued by public or private corporations. As of December 31, 2024, the total amortized cost of available for sale Corporate notes was $28.60 million. The majority of the portfolio was rated AA or higher, with no securities rated below investment grade at year-end. Based on management's analysis and judgement, there were no credit losses attributable to Corporate note securities at December 31, 2024.

Mortgage-backed Agency securities

Mortgage-backed Agency securities within the Company's portfolio are issued by Ginnie Mae, Fannie Mae, and Freddie Mac. As of December 31, 2024, the total amortized cost of available for sale mortgage-backed Agency securities was $86.38 million. Each agency provides a guarantee of full and timely payments of principal and interest by the issuing agency. Based on management's analysis and judgement, there were no credit losses attributable to mortgage-backed Agency securities at December 31, 2024.

Note 4 - Loans

12 Months Ended

Dec. 31, 2024

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 4. Loans

The Company groups loans into three segments (commercial loans, consumer real estate loans, and consumer and other loans) with each segment divided into various classes. Customer overdrafts reclassified as loans totaled $1.82 million as of December 31, 2024, and $1.50 million as of December 31, 2023. Deferred loan fees were $6.60 million as of December 31, 2024, and $7.71 million as of December 31, 2023. For information about off-balance sheet financing, see Note 19, “Litigation, Commitments, and Contingencies,” to the Consolidated Financial Statements of this report.

In accordance with the adoption of ASU 2016-13, the table below reflects the loan portfolio at the amortized cost basis for the periods indicated, to include net deferred loan fees of $6.60 million as of December 31, 2024, and $7.71 million as of December 31, 2023. Additionally, included is, the unamortized discount total related to loans acquired of $12.39 million as of December 31, 2024, and $15.29 million as of December 31, 2023. Accrued interest receivable of $8.51 million as of December 31, 2024, and $9.64 million as of December 31, 2023, is accounted for separately and reported in Interest Receivable on the Consolidated Balance Sheet.

The following table presents loans, net of unearned income by loan class, as of the dates indicated:

	*December 31,*
	*2024*					*2023*
(Amounts in thousands)	*Amount*		*Percent*			*Amount*		*Percent*
Commercial loans
Construction, development, and other land	$	72,319		2.99	%	$	105,945		4.12	%
Commercial and industrial		232,854		9.64	%		211,850		8.24	%
Multi-family residential		199,521		8.26	%		188,382		7.32	%
Single family non-owner occupied		195,588		8.10	%		224,895		8.74	%
Non-farm, non-residential		852,223		35.27	%		894,550		34.78	%
Agricultural		16,676		0.69	%		21,669		0.84	%
Farmland		12,311		0.51	%		14,202		0.55	%
Total commercial loans		1,581,492		65.46	%		1,661,493		64.59	%
Consumer real estate loans
Home equity lines		90,227		3.73	%		87,626		3.41	%
Single family owner occupied		650,306		26.92	%		696,140		27.06	%
Owner occupied construction		4,491		0.19	%		8,445		0.33	%
Total consumer real estate loans		745,024		30.84	%		792,211		30.80	%
Consumer and other loans
Consumer loans		87,758		3.63	%		117,091		4.55	%
Other		1,815		0.08	%		1,503		0.06	%
Total consumer and other loans		89,573		3.71	%		118,594		4.61	%
Total loans held for investment, net of unearned income	$	2,416,089		100.00	%	$	2,572,298		100.00	%

Note 5 - Credit Quality

12 Months Ended

Dec. 31, 2024

Financing Receivables [Text Block]

Note 5. Credit Quality

The Company uses a risk grading matrix to assign a risk grade to each loan in its portfolio. Loan risk ratings may be upgraded or downgraded to reflect current information identified during the loan review process. The general characteristics of each risk grade are as follows:

●

Pass -- This grade is assigned to loans with acceptable credit quality and risk. The Company further segments this grade based on borrower characteristics that include capital strength, earnings stability, liquidity, leverage, and industry conditions.

●

Special Mention -- This grade is assigned to loans that require an above average degree of supervision and attention. These loans have the characteristics of an asset with acceptable credit quality and risk; however, adverse economic or financial conditions exist that create potential weaknesses deserving of management’s close attention. If potential weaknesses are not corrected, the prospect of repayment may worsen.

●

Substandard -- This grade is assigned to loans that have well defined weaknesses that may make payment default, or principal exposure, possible. These loans will likely be dependent on collateral liquidation, secondary repayment sources, or events outside the normal course of business to meet repayment terms.

●

Doubtful -- This grade is assigned to loans that have the weaknesses inherent in substandard loans; however, the weaknesses are so severe that collection or liquidation in full is unlikely based on current facts, conditions, and values. Due to certain specific pending factors, the amount of loss cannot yet be determined.

●

Loss -- This grade is assigned to loans that will be charged off or charged down when payments, including the timing and value of payments, are uncertain. This risk grade does not imply that the asset has no recovery or salvage value, but simply means that it is not practical or desirable to defer writing off, either all or a portion of, the loan balance even though partial recovery may be realized in the future.

The following tables present the recorded investment of the loan portfolio, by loan class and credit quality, as of the dates indicated.

	*December 31, 2024*
			*Special*
(Amounts in thousands)	*Pass*		*Mention*		*Substandard*		*Doubtful*		*Loss*		*Total*
Commercial loans
Construction, development, and other land	$	69,290	$	133	$	2,896	$	—	$	—	$	72,319
Commercial and industrial		227,108		2,045		3,701		—		—		232,854
Multi-family residential		194,865		3,319		1,337		—		—		199,521
Single family non-owner occupied		187,762		1,701		6,125		—		—		195,588
Non-farm, non-residential		831,821		12,572		7,830		—		—		852,223
Agricultural		11,144		3,589		1,943		—		—		16,676
Farmland		10,729		430		1,152		—		—		12,311
Consumer real estate loans
Home equity lines		86,908		476		2,843		—		—		90,227
Single family owner occupied		627,853		2,047		20,406		—		—		650,306
Owner occupied construction		4,491		—		—		—		—		4,491
Consumer and other loans
Consumer loans		86,177		—		1,581		—		—		87,758
Other		1,815		—		—		—		—		1,815
Total loans	$	2,339,963	$	26,312	$	49,814	$	—	$	—	$	2,416,089

	*December 31, 2023*
			*Special*
(Amounts in thousands)	*Pass*		*Mention*		*Substandard*		*Doubtful*		*Loss*		*Total*
Commercial loans
Construction, development, and other land	$	103,573	$	1,955	$	417	$	—	$	—	$	105,945
Commercial and industrial		207,034		2,097		2,719		—		—		211,850
Multi-family residential		184,565		3,522		295		—		—		188,382
Single family non-owner occupied		215,375		2,016		7,504		—		—		224,895
Non-farm, non-residential		866,711		15,240		12,599		—		—		894,550
Agricultural		15,944		3,878		1,847		—		—		21,669
Farmland		12,480		484		1,238		—		—		14,202
Consumer real estate loans
Home equity lines		83,769		546		3,311		—		—		87,626
Single family owner occupied		669,878		2,360		23,902		—		—		696,140
Owner occupied construction		8,445		—		—		—		—		8,445
Consumer and other loans
Consumer loans		114,725		4		2,362		—		—		117,091
Other		1,503		—		—		—		—		1,503
Total loans	$	2,484,002	$	32,102	$	56,194	$	-	$	-	$	2,572,298

The following tables present the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of the dates indicated:

(Amounts in thousands)	*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2024	*2024*		*2023*		*2022*		*2021*		*2020*		*Prior*		*Revolving*		*Total*
Construction, development
and other land
Pass	$	9,806	$	7,378	$	33,423	$	12,495	$	1,948	$	3,589	$	651	$	69,290
Special Mention		-		-		-		-		65		68		-		133
Substandard		164		2,418		-		-		11		303				2,896
Doubtful		-		-		-		-		-		-				-
Loss		-		-		-		-		-		-		-		-
Total construction, development, and other land	$	9,970	$	9,796	$	33,423	$	12,495	$	2,024	$	3,960	$	651	$	72,319
Current period gross write-offs	$	-	$	-	$	-	$	-	$	1	$	8	$	-	$	9
Commercial and industrial
Pass	$	71,241	$	34,794	$	50,214	$	11,973	$	7,332	$	12,265	$	39,289	$	227,108
Special Mention		5		-		35		82		-		1,584		339		2,045
Substandard		193		404		831		457		465		1,351		-		3,701
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total commercial and industrial	$	71,439	$	35,198	$	51,080	$	12,512	$	7,797	$	15,200	$	39,628	$	232,854
Current period gross write-offs	$	24	$	95	$	351	$	48	$	34	$	2	$	-	$	554
Multi-family residential
Pass	$	775	$	10,084	$	73,633	$	42,533	$	28,855	$	36,150	$	2,835	$	194,865
Special Mention		-		-		-		-		-		3,319				3,319
Substandard		-		-		1,285		-		-		52				1,337
Doubtful		-		-		-		-		-		-				-
Loss		-		-		-		-		-		-		-		-
Total multi-family residential	$	775	$	10,084	$	74,918	$	42,533	$	28,855	$	39,521	$	2,835	$	199,521
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-farm, non-residential
Pass	$	40,054	$	76,285	$	226,217	$	140,911	$	104,728	$	235,001	$	8,625	$	831,821
Special Mention		154		-		565		1,758		-		10,095		-		12,572
Substandard		-		593		285		1,882		872		3,885		313		7,830
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-				-
Total non-farm, non-residential	$	40,208	$	76,878	$	227,067	$	144,551	$	105,600	$	248,981	$	8,938	$	852,223
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	29	$	-	$	29
Agricultural
Pass	$	646	$	3,168	$	2,723	$	1,561	$	245	$	1,754	$	1,047	$	11,144
Special Mention		-		-		256		161		3		3,169				3,589
Substandard		-		429		166		25		79		1,244				1,943
Doubtful		-		-		-		-		-		-				-
Loss		-		-		-		-		-		-		-		-
Total agricultural	$	646	$	3,597	$	3,145	$	1,747	$	327	$	6,167	$	1,047	$	16,676
Current period gross write-offs	$	-	$	115	$	96	$	19	$	-	$	-	$	-	$	230
Farmland
Pass	$	861	$	1,175	$	1,052	$	1,389	$	665	$	4,429	$	1,158	$	10,729
Special Mention		-		-		-		99		-		331				430
Substandard		-		-		-		-		142		1,010				1,152
Doubtful		-		-		-		-		-		-				-
Loss		-		-		-		-		-		-		-		-
Total farmland	$	861	$	1,175	$	1,052	$	1,488	$	807	$	5,770	$	1,158	$	12,311
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

(Amounts in thousands)	*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2024	*2024*		*2023*		*2022*		*2021*		*2020*		*Prior*		*Revolving*		*Total*
Home equity lines
Pass	$	10	$	106	$	1,205	$	100	$	86	$	4,175	$	81,226	$	86,908
Special Mention		-		-		-		-		-		140		336		476
Substandard		23		22		78		-		22		1,793		905		2,843
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total home equity lines	$	33	$	128	$	1,283	$	100	$	108	$	6,108	$	82,467	$	90,227
Current period gross write-offs	$	3	$	-	$	-	$	-	$	47	$	-	$	17	$	67
Single family Mortgage
Pass	$	16,876	$	47,598	$	154,680	$	204,443	$	173,310	$	218,047	$	661	$	815,615
Special Mention		-		-		-		440		-		3,308		-		3,748
Substandard		6		779		1,550		1,270		1,161		21,765		-		26,531
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total single family owner and non-owner occupied	$	16,882	$	48,377	$	156,230	$	206,153	$	174,471	$	243,120	$	661	$	845,894
Current period gross write-offs	$	-	$	-	$	-	$	185	$	-	$	84	$	-	$	269
Owner occupied construction
Pass	$	2,387	$	1,272	$	318	$	217	$	-	$	297	$	-	$	4,491
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total owner occupied construction	$	2,387	$	1,272	$	318	$	217	$	-	$	297	$	-	$	4,491
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans
Pass	$	19,684	$	20,709	$	24,573	$	10,590	$	3,214	$	1,493	$	7,729	$	87,992
Special Mention		-		-		-		-		-		-		-		-
Substandard		94		327		532		284		30		279		35		1,581
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total consumer loans	$	19,778	$	21,036	$	25,105	$	10,874	$	3,244	$	1,772	$	7,764	$	89,573
Current period gross write-offs	$	1,518	$	1,269	$	2,277	$	908	$	243	$	105	$	373	$	6,693

(Amounts in thousands)	*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2024	*2024*		*2023*		*2022*		*2021*		*2020*		*Prior*		*Revolving*		*Total*
Total Loans
Pass	$	162,340	$	202,569	$	568,038	$	426,212	$	320,383	$	517,200	$	143,221	$	2,339,963
Special Mention		159		-		856		2,540		68		22,014		675		26,312
Substandard		480		4,972		4,727		3,918		2,782		31,682		1,253		49,814
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total loans	$	162,979	$	207,541	$	573,621	$	432,670	$	323,233	$	570,896	$	145,149	$	2,416,089
Current period gross write-offs	$	1,545	$	1,479	$	2,724	$	1,160	$	325	$	228	$	390	$	7,851

(Amounts in thousands)	*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving*		*Total*
Construction, development
and other land
Pass	$	12,379	$	54,752	$	23,328	$	4,121	$	2,700	$	3,874	$	2,419	$	103,573
Special Mention		1,737		-		-		139		-		79		-		1,955
Substandard		-		-		-		-		175		242		-		417
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total construction, development, and other land	$	14,116	$	54,752	$	23,328	$	4,260	$	2,875	$	4,195	$	2,419	$	105,945
Current period gross write-offs	$	-	$	-	$	-	$	-	$	13	$	-	$	-	$	13
Commercial and industrial
Pass	$	53,619	$	64,380	$	19,477	$	11,538	$	5,717	$	11,775	$	40,528	$	207,034
Special Mention		-		229		11		-		349		1,408		100		2,097
Substandard		51		744		276		86		926		636		-		2,719
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total commercial and industrial	$	53,670	$	65,353	$	19,764	$	11,624	$	6,992	$	13,819	$	40,628	$	211,850
Current period gross write-offs	$	66	$	168	$	201	$	51	$	32	$	66	$	-	$	584
Multi-family residential
Pass	$	6,753	$	67,484	$	36,621	$	30,021	$	3,280	$	36,982	$	3,424	$	184,565
Special Mention		-		-		-		-		-		3,522		-		3,522
Substandard		-		-		-		-		-		295		-		295
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total multi-family residential	$	6,753	$	67,484	$	36,621	$	30,021	$	3,280	$	40,799	$	3,424	$	188,382
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-farm, non-residential
Pass	$	83,420	$	234,607	$	151,433	$	114,974	$	53,466	$	217,034	$	11,777	$	866,711
Special Mention		65		583		2,590		819		-		11,132		51		15,240
Substandard		1,175		238		1,968		690		3,175		5,143		210		12,599
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total non-farm, non-residential	$	84,660	$	235,428	$	155,991	$	116,483	$	56,641	$	233,309	$	12,038	$	894,550
Current period gross write-offs	$	-	$	8	$	-	$	-	$	-	$	2	$	-	$	10
Agricultural
Pass	$	5,004	$	4,215	$	2,352	$	625	$	674	$	2,094	$	980	$	15,944
Special Mention		28		276		184		8		90		3,292		-		3,878
Substandard		157		166		50		28		1,188		258		-		1,847
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total agricultural	$	5,189	$	4,657	$	2,586	$	661	$	1,952	$	5,644	$	980	$	21,669
Current period gross write-offs	$	-	$	59	$	-	$	9	$	14	$	8	$	-	$	90
Farmland
Pass	$	1,380	$	1,237	$	1,557	$	912	$	745	$	5,766	$	883	$	12,480
Special Mention		-		-		103		-		-		381		-		484
Substandard		-		-		-		-		-		1,238		-		1,238
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total farmland	$	1,380	$	1,237	$	1,660	$	912	$	745	$	7,385	$	883	$	14,202
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

(Amounts in thousands)	*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving*		*Total*
Home equity lines
Pass	$	9	$	962	$	86	$	73	$	68	$	3,800	$	78,771	$	83,769
Special Mention		-		-		-		-		-		45		501		546
Substandard		-		12		-		27		102		1,853		1,317		3,311
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total home equity lines	$	9	$	974	$	86	$	100	$	170	$	5,698	$	80,589	$	87,626
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	227	$	227
Single family Mortgage
Pass	$	50,826	$	164,974	$	221,352	$	191,156	$	44,974	$	211,540	$	431	$	885,253
Special Mention		-		-		465		98		108		3,705		-		4,376
Substandard		236		555		1,464		1,381		1,515		26,255		-		31,406
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total single family owner and non-owner occupied	$	51,062	$	165,529	$	223,281	$	192,635	$	46,597	$	241,500	$	431	$	921,035
Current period gross write-offs	$	-	$	-	$	47	$	-	$	-	$	194	$	-	$	241
Owner occupied construction
Pass	$	3,620	$	4,232	$	240	$	-	$	21	$	332	$	-	$	8,445
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total owner occupied construction	$	3,620	$	4,232	$	240	$	-	$	21	$	332	$	-	$	8,445
Current period gross write-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans
Pass	$	31,243	$	43,675	$	20,672	$	7,710	$	3,214	$	1,026	$	8,688	$	116,228
Special Mention		-		-		3		-		-		-		1		4
Substandard		338		820		590		198		157		212		47		2,362
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total consumer loans	$	31,581	$	44,495	$	21,265	$	7,908	$	3,371	$	1,238	$	8,736	$	118,594
Current period gross write-offs	$	1,238	$	3,594	$	1,852	$	518	$	196	$	77	$	185	$	7,660

(Amounts in thousands)	*Term Loans Amortized Cost Basis by Origination Year*
Balance at December 31, 2023	*2023*		*2022*		*2021*		*2020*		*2019*		*Prior*		*Revolving*		*Total*
Total Loans
Pass	$	248,253	$	640,518	$	477,118	$	361,130	$	114,859	$	494,223	$	147,901	$	2,484,002
Special Mention		1,830		1,088		3,356		1,064		547		23,564		653		32,102
Substandard		1,957		2,535		4,348		2,410		7,238		36,132		1,574		56,194
Doubtful		-		-		-		-		-		-		-		-
Loss		-		-		-		-		-		-		-		-
Total loans	$	252,040	$	644,141	$	484,822	$	364,604	$	122,644	$	553,919	$	150,128	$	2,572,298
Current period gross write-offs	$	1,304	$	3,829	$	2,100	$	578	$	255	$	347	$	412	$	8,825

The Company generally places a loan on nonaccrual status when it is 90 days or more past due. The following table presents nonaccrual loans by loan class, as of the dates indicated:

	*December 31, 2024*						*December 31, 2023*
(Amounts in thousands)	*No Allowance*		*With an Allowance*		*Total*		*No Allowance*		*With an Allowance*		*Total*
Commercial loans
Construction, development, and other land	$	140	$	—	$	140	$	172	$	—	$	172
Commercial and industrial		2,492		—		2,492		1,438		—		1,438
Multi-family residential		152		—		152		183		—		183
Single family non-owner occupied		983		—		983		832		—		832
Non-farm, non-residential		2,284		531		2,815		1,271		1,173		2,444
Agricultural		1,541		—		1,541		1,558		—		1,558
Farmland		386		—		386		123		—		123
Consumer real estate loans
Home equity lines		1,072		—		1,072		1,335		—		1,335
Single family owner occupied		9,189		—		9,189		9,365		—		9,365
Owner occupied construction		—		—		—		—		—		—
Consumer and other loans
Consumer loans		1,099		—		1,099		1,906		—		1,906
Total nonaccrual loans	$	19,338	$	531	$	19,869	$	18,183	$	1,173	$	19,356

In both 2024 and 2023 nonaccrual loan interest recognized was immaterial.

The following tables presents the aging of past due loans by loan class, as of the date indicated. Nonaccrual loans 30 days or more past due are included in the applicable delinquency category.

	*December 31, 2024*
													*Amortized Cost of*
	*30 - 59 Days*		*60 - 89 Days*		*90+ Days*		*Total*		*Current*		*Total*		*>90 Days Accruing*
(Amounts in thousands)	*Past Due*		*Past Due*		*Past Due*		*Past Due*		*Loans*		*Loans*		*No Allowance*
Commercial loans
Construction, development, and other land	$	40	$	2,424	$	143	$	2,607	$	69,712	$	72,319	$	—
Commercial and industrial		1,100		295		2,285		3,680		229,174		232,854		—
Multi-family residential		—		—		—		—		199,521		199,521		—
Single family non-owner occupied		1,228		434		500		2,162		193,426		195,588		—
Non-farm, non-residential		3,182		123		1,457		4,762		847,461		852,223		—
Agricultural		159		67		492		718		15,958		16,676		—
Farmland		11		2		142		155		12,156		12,311		—
Consumer real estate loans
Home equity lines		599		230		558		1,387		88,840		90,227		—
Single family owner occupied		5,812		1,457		3,974		11,243		639,063		650,306		—
Owner occupied construction		—		—		—		—		4,491		4,491		—
Consumer and other loans
Consumer loans		2,960		932		560		4,452		83,306		87,758		—
Other		—		—		—		—		1,815		1,815		—
Total loans	$	15,091	$	5,964	$	10,111	$	31,166	$	2,384,923	$	2,416,089	$	—

	*December 31, 2023*
													*Amortized Cost of*
	*30 - 59 Days*		*60 - 89 Days*		*90+ Days*		*Total*		*Current*		*Total*		*>90 Days Accruing*
(Amounts in thousands)	*Past Due*		*Past Due*		*Past Due*		*Past Due*		*Loans*		*Loans*		*No Allowance*
Commercial loans
Construction, development, and other land	$	38	$	6	$	23	$	67	$	105,878	$	105,945	$	—
Commercial and industrial		1,232		766		390		2,388		209,462		211,850		—
Multi-family residential		115		68		—		183		188,199		188,382		—
Single family non-owner occupied		777		455		232		1,464		223,431		224,895		—
Non-farm, non-residential		617		229		382		1,228		893,322		894,550		—
Agricultural		22		56		217		295		21,374		21,669		—
Farmland		15		—		—		15		14,187		14,202		—
Consumer real estate loans
Home equity lines		639		343		534		1,516		86,110		87,626		—
Single family owner occupied		6,108		2,831		3,519		12,458		683,682		696,140		—
Owner occupied construction		—		—		—		—		8,445		8,445		—
Consumer and other loans
Consumer loans		4,390		1,440		1,087		6,917		110,174		117,091		—
Other		—		—		—		—		1,503		1,503		—
Total loans	$	13,953	$	6,194	$	6,384	$	26,531	$	2,545,767	$	2,572,298	$	—

ASC 326 prescribes that when an entity determines foreclosure is probable, the expected credit loss is required to be measured based on the fair value of the collateral. As a practical expedient, an entity may use the fair value as of the reporting date when recording the net carrying amount of the asset. For the collateral dependent asset ("CDA") a credit loss expense is recorded for loan amounts in excess of fair value of the collateral. The table below summarizes collateral dependent loans, where foreclosure is possible, by type of collateral, and the extent to which they are collateralized during the periods.

	*December 31, 2024*							*December 31, 2023*
(Amounts in thousands)	*Balance*		*Collateral Coverage*		*Coverage Ratio*			*Balance*		*Collateral Coverage*		*Coverage Ratio*
Commercial Real Estate
Other	$	531	$	645		121.57	%	$	1,173	$	825		70.33	%
Consumer owner occupied		-		-					-		-
Total collateral dependent loans	$	531	$	645		121.57	%	$	1,173	$	825		70.33	%

The Company may make concessions in interest rates, loan terms and/or amortization terms when restructuring loans for borrowers experiencing financial difficulty. Effective, January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. The amendments eliminated TDR accounting guidance for issuers that adopted ASU 2015-13, created a single loan modification accounting model, and clarified disclosure requirements for loan modifications and write-offs. Presented below are the amortized cost basis and percentage of loan class for loan modifications made to borrowers experiencing financial difficulty by loan class, concession type, and financial effect as of the date indicated.

	Payment Delays
	Amortized Cost Basis		% of Total Class of
	December 31, 2024		Financing Receivable			Financial Effect

(Amounts in thousands)
Non Farm, Non Residential Property	$	625		0.07	%	Deferred 6 months of interest to Loan Maturity.
Single Family Owner Occupied		509		0.08	%	Deferred $66 thousand in Principal to Loan Maturity.
Single Family Non Owner Occupied		30		0.02	%	Deferred 6 months of interest to Loan Maturity.
Commercial & Industrial		135		0.06	%	Deferred $8 thousand in Principal to Loan Maturity.
Total	$	1,299

	*Term Extensions*
	*Amortized Cost Basis*		*% of Total Class of*
	*December 31, 2024*		*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Commercial & Industrial	$	144		0.06	%	Delayed repayment of P & I for two years.
Consumer		2		0.00	%	Extended term from 60 to 84 months.
Home Equity		2		0.00	%	Delayed repayment of P & I for two years.
Total	$	148

	*Term Extension and Rate Reduction*
	*Amortized Cost Basis*		*% of Total Class of*
	*December 31, 2024*		*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Single Family Owner Occupied	$	806		0.12	%	Reduced interest income and extended time to recover principal.
Consumer		7		0.01	%	Reduced rate to 10.5%; extended term by ten months.
Total	$	813

	*Payment Delays*
	*Amortized Cost Basis*		*% of Total Class of*
	*December 31, 2023*		*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Non farm, non residential property	$	662		0.07	%	Deferred 6 months of interest to loan maturity.
Single family owner occupied		548		0.08	%	Deferred $66 thousand in principal to loan maturity.
Single family non owner occupied		89		0.04	%	Deferred 6 months of interest to loan maturity.
Commercial & industrial		171		0.08	%	Deferred $8 thousand in principal to loan maturity.
Total	$	1,470

	*Term Extensions*
	*Amortized Cost Basis*		*% of Total Class of*
	*December 31, 2023*		*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Consumer	$	6		0.01	%	Extended term from 60 to 84 months.
Total	$	6


	*Principal Forgiveness*
	*Amortized Cost Basis*		*% of Total Class of*
	*December 31, 2023*		*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Single family owner occupied	$	5		0.00	%	Reduced amortized cost basis by $13 thousand.
Total	$	5


	*Term Extension and Rate Reduction*
	*Amortized Cost Basis*		*% of Total Class of*
	*December 31, 2023*		*Financing Receivable*			*Financial Effect*

(Amounts in thousands)
Single family owner occupied	$	565		0.08	%	Reduced interest income and extended time to recover principal.
Total	$	565

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. As of December 31, 2024, there were no modified loans (or portions of a loan) deemed uncollectible.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last twelve months:

	*December 31, 2024*
	*Payment Status (Amortized Cost Basis)*
	*Current*		*30-89 Days Past Due*		*90+ Days Past Due*

(Amounts in thousands)
Non Farm, Non Residential Property	$	625	$	-	$	-
Single Family Owner Occupied		1,140		174		-
Single Family Non Owner Occupied		-		30		-
Commercial & Industrial		144		-		135
Consumer		10		-		-
Home Equity		2
Total	$	1,921	$	204	$	135

	*December 31, 2023*
	*Payment Status (Amortized Cost Basis)*
	*Current*		*30-89 Days Past Due*		*90+ Days Past Due*

(Amounts in thousands)
Non farm, non residential property	$	662	$	-	$	-
Single family owner occupied		864		254		-
Single family non owner occupied		89
Commercial & industrial		171
Consumer		6		-		-
Total	$	1,792	$	254	$	-

The following table provides information about OREO, which consists of properties acquired through foreclosure, as of the dates indicated:

	*December 31, 2024*		*December 31, 2023*
(Amounts in thousands)
Total OREO	$	521	$	192

OREO secured by residential real estate	$	521	$	192
Residential real estate loans in the foreclosure process(1)	$	2,625	$	1,895

(1)	The recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction

Note 6 - Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

Allowance for Credit Losses [Text Block]

Note 6. Allowance for Credit Losses

The following tables present the changes in the allowance for credit losses, by loan segment, during the periods indicated.

	*Year Ended December 31, 2024*
(Amounts in thousands)	*Commercial*			*Consumer Real Estate*			*Consumer and Other*			*Total Allowance*

Total allowance
Balance at beginning of year:
Allowance for credit losses - loans	$	21,850		$	9,693		$	4,646		$	36,189
Allowance for credit losses - loan commitments		597			121			28			746
Total allowance for credit losses beginning of year		22,447			9,814			4,674			36,935
Provision for credit losses:
(Recovery of) provision for credit losses - loans		(1,227	)		175			5,054			4,002
(Recovery of) provision for credit losses - loan commitments		(426	)		17			4			(405	)
Total provision for credit losses - loans and loan commitments		(1,653	)		192			5,058			3,597
Charge-offs		(822	)		(336	)		(6,693	)		(7,851	)
Recoveries		617			375			1,493			2,485
Net (charge-offs) recoveries		(205	)		39			(5,200	)		(5,366	)
Allowance for credit losses - loans		20,418			9,907			4,500			34,825
Allowance for credit losses - loan commitments		171			138			32			341
Ending balance	$	20,589		$	10,045		$	4,532		$	35,166

	*Year Ended December 31, 2023*
(Amounts in thousands)	*Commercial*			*Consumer Real Estate*			*Consumer and Other*			*Total Allowance*

Total allowance
Balance at beginning of year:
Allowance for credit losses - loans	$	17,213		$	8,931		$	4,412		$	30,556
Allowance for credit losses - loan commitments		1,018			156			22			1,196
Total allowance for credit losses beginning of year		18,231			9,087			4,434			31,752
Purchased credit deteriorated -Surrey acquisition		1,452			529			30			2,011
Provision for credit losses:
Provision for (recovery of) credit losses - loans		2,217			125			6,093			8,435
(Recovery of) provision for credit losses - loan commitments		(421	)		(35	)		6			(450	)
Total provision for credit losses - loans and loan commitments		1,796			90			6,099			7,985
Charge-offs		(753	)		(412	)		(7,660	)		(8,825	)
Recoveries		1,721			520			1,771			4,012
Net (charge-offs) recoveries		968			108			(5,889	)		(4,813	)
Allowance for credit losses - loans		21,850			9,693			4,646			36,189
Allowance for credit losses - loan commitments		597			121			28			746
Ending balance	$	22,447		$	9,814		$	4,674		$	36,935

Note 7 - Premises, Equipment, and Leases

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment Disclosure [Text Block]

Note 7. Premises, Equipment, and Leases

Premises and Equipment

The following table presents the components of premises and equipment as of the dates indicated:

	*December 31,*
	*2024*			*2023*
(Amounts in thousands)
Land	$	19,309		$	19,497
Buildings and leasehold improvements		50,903			51,557
Equipment		43,889			42,810
Total premises and equipment		114,101			113,864
Accumulated depreciation and amortization		(65,366	)		(63,184	)
Total premises and equipment, net	$	48,735		$	50,680

There were no impairment charges related to certain long-term investments in land and buildings in 2024, in 2023, or in 2022. Depreciation and amortization expense for premises and equipment was $4.35 million in 2024, $3.95 million in 2023, and $4.15 million in 2022.

Leases

Operating leases are recorded as a right of use (“ROU”) asset and operating lease liability. The ROU asset is recorded in other assets, while the lease liability is recorded in other liabilities on the condensed balance sheet beginning January 1, 2019, when the Company adopted ASU 2016-02, on a prospective basis. The ROU asset represents the right to use an underlying asset during the lease term and the lease liability represents the obligation to make lease payments arising from the lease. The ROU asset and lease liability have been recognized based on the present value of the lease payments using a discount rate that represented our incremental borrowing rate at the lease commencement date or the date of adoption of ASU 2016-02. The lease expense, which is comprised of the amortization of the ROU asset and the implicit interest accreted on the lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy expense in the condensed statements of income.

The Company’s current operating leases relate to two existing bank branches and one operating lease acquired in a prior bank acquisition. The acquired operating lease was for vacant land and will terminate in July of 2029. The Company's ROU asset was $489 thousand as of December 31, 2024, compared to $594 thousand as of December 31, 2023. The operating lease liability as of December 31, 2024, was $515 thousand compared to $620 thousand as of December 31, 2023. The Company’s total operating leases have remaining terms of 3 months to 4.5 years compared with 1 years to 5.5 years as of December 31, 2023. The December 31, 2024, weighted average discount was 3.39%, compared to 3.24% from December 31, 2023.

Future minimum lease payments as of the dates indicated are as follows:

Year	*Amount*
(Amounts in thousands)
2025	$	130
2026		110
2027		101
2028		101
2029 and thereafter		59
Total lease payments		501
Less: Interest		(14	)
Present value of lease liabilities	$	515

Lease expense which is included in occupancy expense on the Consolidated Statement of Income was $178 thousand in 2024, $171 thousand in 2023, and $175 thousand in 2022. The Company maintained no subleases as of December 31, 2024.

Note 8 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

Note 8. Goodwill and Other Intangible Assets

Goodwill

The Company has one reporting unit for goodwill impairment testing purposes, Community Banking. The Company performed its annual assessment of goodwill as of October 31, 2024, and concluded that the carrying value of goodwill was not impaired. No events have occurred after the analysis to indicate potential impairment.

As of December 31, 2024, and as of December 31, 2023, the Company's goodwill totaled $143.95 million. The Surrey acquisition resulted in the Company recognizing $14.38 million in goodwill in the transaction. The balance was $129.57 million for 2022.

(Amounts in thousands)
Balance January 1, 2022	$	129,565
Acquisitions		—
Balance December 31, 2022	$	129,565

Balance January 1, 2023	$	129,565
Acquisitions		14,381
Balance December 31, 2023	$	143,946

Balance January 1, 2024	$	143,946
Acquisitions		—
Balance December 31, 2024	$	143,946

Other Intangible Assets

As of December 31, 2024, the remaining lives of core deposit intangibles ranged from 6 months to 8 years with a weighted average remaining life of 7.63 years. The Surrey acquisition resulted in the Company recognizing $12.70 million in core deposit intangibles. The following table presents the components of other intangible assets as of the dates indicated:

	*December 31,*
	*2024*			*2023*			*2022*
(Amounts in thousands)
Core deposit intangibles	$	25,374		$	12,674		$	12,674
Acquisitions		—			12,700			—
Accumulated amortization		(12,360	)		(10,229	)		(8,498	)
Total other intangible assets, net	$	13,014		$	15,145		$	4,176

Amortization expense for other intangible assets was $2.13 million in 2024, $1.73 million in 2023, and $1.45 million in 2022.

The following schedule presents the estimated amortization expense for intangible assets, by year, as of December 31, 2024:

(Amounts in thousands)
2025	$	1,916
2026		1,719
2027		1,719
2028		1,719
2029		1,717
2030 and thereafter		4,224
Total estimated amortization expense	$	13,014

Note 9 - Deposits

12 Months Ended

Dec. 31, 2024

Deposit Liabilities Disclosures [Text Block]

Note 9. Deposits

The following table presents the components of deposits as of the dates indicated:

	*December 31,*
	*2024*		*2023*
(Amounts in thousands)
Noninterest-bearing demand deposits	$	883,499	$	931,920
Interest-bearing deposits
Interest-bearing demand deposits		675,522		693,979
Money market accounts		338,527		307,487
Savings deposits		553,158		535,566
Certificates of deposit		162,139		166,417
Individual retirement accounts		78,402		86,956
Total interest-bearing deposits		1,807,748		1,790,405
Total deposits	$	2,691,247	$	2,722,325

The following schedule presents the contractual maturities of time deposits, defined as certificates of deposits and individual retirement accounts, by year, as of December 31, 2024:

(Amounts in thousands)
2025	$	163,517
2026		31,564
2027		17,932
2028		15,805
2029		9,695
2030 and thereafter		2,028
Total contractual maturities	$	240,541

Time deposits of $250 thousand or more totaled $22.39 million as of December 31, 2024, and $18.59 million as of December 31, 2023. The following schedule presents the contractual maturities of time deposits of $250 thousand or more as of December 31, 2024:

(Amounts in thousands)
Three months or less	$	1,903
Over three through six months		8,477
Over six through twelve months		8,712
Over twelve months		3,300
Total contractual maturities	$	22,392

Note 10 - Borrowings

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Text Block]

Note 10. Borrowings

The following table presents the components of borrowings as of the dates indicated:

	*December 31,*
	*2024*					*2023*
(Amounts in thousands)	*Balance*		*Weighted Average Rate*			*Balance*		*Weighted Average Rate*

Retail repurchase agreements	$	906		0.05	%	$	1,119		0.06	%

Repurchase agreements are secured by certain securities that remain under the Company’s control during the terms of the agreements. The counterparties may redeem callable repurchase agreements, which could substantially shorten the borrowings’ lives. The prepayment or early termination of a repurchase agreement may result in substantial penalties based on market conditions. The following schedule presents the contractual maturities of repurchase agreements, by type of collateral pledged, as of December 31, 2024:

	*Overnight and Continuous*		*Up to 30 Days*		*30 - 90 Days*		*Greater than 90 Days*		*Total*

(Amounts in thousands)
Municipal securities	$	220	$	-	$	-	$	-	$	220
Mortgage-backed Agency securities		686		—		—		—		686
Total	$	906	$	—	$	—	$	—	$	906

As of December 31, 2024, unused borrowing capacity with the FHLB totaled $352.32 million, net of FHLB letters of credit of $122.72 million. The Company pledged $475.03 million in qualifying loans to secure the FHLB letters of credit, which provide an attractive alternative to pledging securities for public unit deposits.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Note 11 - Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 11. Derivative Instruments and Hedging Activities

Generally, derivative instruments help the Company manage exposure to market risk and meet customer financing needs. Market risk represents the possibility that fluctuations in external factors such as interest rates, market-driven loan rates, prices, or other economic factors will adversely affect economic value or net interest income.

The Company has used interest rate swap contracts to modify its exposure to interest rate risk caused by changes in benchmark interest rates in relation to certain designated fixed rate loans. These instruments are used to convert these fixed rate loans to an effective floating rate. If the Secured Overnight Financing Rate ("SOFR") plus a spread falls below the loan’s stated fixed rate for a given period, the Company will owe the floating rate payer the notional amount times the difference between the floating rate and the stated fixed rate. If SOFR is above the stated rate for a given period, the Company will receive payments based on the notional amount times the difference between the floating rate and the stated fixed rate.

Certain of the Company's interest rate swaps qualify as fair value hedging instruments. Therefore, fair value changes in the derivative and hedged item attributable to the hedged risk are recognized in earnings in the same period. The fair value hedges were effective as of December 31, 2024.

The following table presents the notional, or contractual, amounts and fair values of derivative instruments as of the dates indicated:

	*December 31,*
	*2024*						*2023*
(Amounts in thousands)	*Notional or Contractual Amount*		*Derivative Assets*		*Derivative Liabilities*		*Notional or Contractual Amount*		*Derivative Assets*		*Derivative Liabilities*
Derivatives designated as hedges
Interest rate swaps	$	3,109	$	116	$	—	$	3,557	$	136	$	—
Derivatives not designated as hedges
Interest rate swaps		-		-		-		-		-		-
Total derivatives	$	3,109	$	116	$	—	$	3,557	$	136	$	—

The following table presents the interest component of derivative and hedging activity, if applicable, on the consolidated statements of income for the periods indicated:

	*Year Ended December 31,*
(Amounts in thousands)	*2024*			*2023*			*2022*		*Income Statement Location*
Derivatives designated as hedges
Interest rate swaps	$	(97	)	$	(102	)	$	35	Interest and fees on loans
Derivatives not designated as hedges
Interest rate swaps		-			-			90	Interest and fees on loans
Total derivative expense	$	(97	)	$	(102	)	$	125

Note 12 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2024

Compensation and Employee Benefit Plans [Text Block]

Note 12. Employee Benefit Plans

Defined Benefit Plans

The Company maintains two nonqualified domestic, noncontributory defined benefit plans (the “Benefit Plans”) for key members of senior management and non-management directors. The Company’s unfunded Benefit Plans include the Supplemental Executive Retention Plan (“SERP”) and the Directors’ Supplemental Retirement Plan (“Directors’ Plan”). The SERP provides for a defined benefit, at normal retirement age, targeted at 35% of the participant’s projected final average compensation, subject to a defined maximum annual benefit. Benefits under the SERP generally become payable at age 62. The Directors’ Plan provides for a defined benefit, at normal retirement age, up to 100% of the participant’s highest consecutive three-year average compensation. Benefits under the Directors’ Plan generally become payable at age 70. The SERP was frozen near the end of 2021; the Directors' Plan was fundamentally frozen at that time as well. The following table presents the changes in the aggregate actuarial benefit obligation for the two plans combined during the periods indicated:

	*December 31,*
	*2024*			*2023*
(Amounts in thousands)
Beginning balance	$	9,050		$	9,488
Effect of curtailment		—			—
Service cost		—			—
Interest cost		414			451
Actuarial gain		(440	)		(306	)
Benefits paid		(583	)		(583	)
Ending balance	$	8,441		$	9,050

The following table presents the components of net periodic pension cost, the effect on the consolidated statements of income, and the assumed discount rate for the periods indicated:

	*Year Ended December 31,*
	*2024*			*2023*			*2022*			*Income Statement Location*
(Amounts in thousands)
Service cost	$	—		$	—		$	—		Salaries and employee benefits
Interest cost		414			451			332		Other expense
Effect of curtailment		—			—			—		Salaries and employee benefits
Amortization of prior service cost		—			—			—		Other expense
Amortization of losses		37			38			135		Other expense
Net periodic cost	$	451		$	489		$	467

Assumed discount rate		5.35	%		4.79	%		4.96	%

The following schedule presents the projected benefit payments to be paid under the Benefit Plans, by year, as of December 31, 2024:

(Amounts in thousands)
2025	$	731
2026		823
2027		793
2028		755
2029		714
2030 through 2034		3,459

Deferred Compensation Plan

The Company maintains deferred compensation agreements with certain current and former officers that provide benefit payments, over various periods, commencing at retirement or death. There were no accrued benefits, which are based on the present values of expected payments and estimated life expectancies, as of December 31, 2024 or 2023. There was no deferred compensation plan expense in 2024, 2023, or 2022.

The Company maintains a deferred compensation plan, referred to as the WRAP, and is a voluntary, non-tax qualified deferred compensation plan available to certain employees, including executive officers. Under the plan, participants may defer a portion of their base and/or annual incentive compensation. The plan is intended to mirror the Corporation's qualified KSOP, and may include discretionary match that coincides with a match made to the KSOP to the extent participants cannot otherwise receive the full match in the KSOP. The balance as of December 31, 2024 and 2023 was $8.73 million and $8.28 million, respectively.

Employee Welfare Plan

The Company provides various medical, dental, vision, life, accidental death and dismemberment, and long-term disability insurance benefits to all full-time employees who elect coverage under this program. A third-party administrator manages the health plan. Monthly employer and employee contributions are made to a tax-exempt employee benefits trust where the third-party administrator processes and pays claims. As of December 31, 2024, stop-loss insurance coverage generally limits the Company’s risk of loss to $200 thousand for individual claims and $5.56 million for aggregate claims. Health plan expenses were $4.10 million in 2024, $4.16 million in 2023, and $4.04 million in 2022.

Employee Stock Ownership and Savings Plan

The Company maintains the Employee Stock Ownership and Savings Plan (“KSOP”) that consists of a 401(k) savings feature that covers all employees that meet minimum eligibility requirements. The Company matches employee contributions at levels determined by the Board of Directors annually. These contributions are made in the first quarter following each plan year and employees must be employed on the last day of the plan year to be eligible. Matching contributions to qualified deferrals under the 401(k) savings component of the KSOP totaled $1.89 million in 2024, $1.76 million in 2023, and $1.82 million in 2022. The KSOP held 266,533 shares of the Company’s common stock as of December 31, 2024, 282,072 shares as of December 31, 2023, and 309,019 shares as of December 31, 2022.

Equity-Based Compensation Plans

The Company maintains equity-based compensation plans to promote the long-term success of the Company by encouraging officers, employees, directors, and other individuals performing services for Company to focus on critical long-range objectives. The Company’s most current equity-based compensation plans include the 2022 Omnibus Equity Compensation Plan (the “2022 Plan”), which authorized 1,000,000 shares for potential grants of Non-Qualified Stock Options, Incentive Stock Options, Performance Shares, Performance Stock Units, Restricted Stock, Restricted Stock Units, and Performance Awards. The Company’s Compensation and Retirement Committee determines the vesting period for each grant; however, awards shall have a minimum vesting/exercise schedule of at least one year, except that a shorter vesting/exercise schedule may apply to not more than 5% of the shares authorized for issuance under the 2022 Plan.

The following table presents the pre-tax compensation expense and excess tax benefit recognized in earnings for all equity-based compensation plans for the periods indicated:

	*Year Ended December 31,*
	*2024*			*2023*			*2022*
(Amounts in thousands)
Pre-tax compensation expense	$	403		$	597		$	718
Excess tax (benefit) expense		(227	)		(167	)		(68	)

Stock Options

The following table presents stock option activity and related information for the year ended December 31, 2024:

(Amounts in thousands, except share and per share data)	*Option Shares*			*Weighted Average Exercise Price Per Share*		*Weighted Average Remaining Contractual Term (Years)*		*Aggregate Intrinsic Value*

Outstanding, January 1, 2024		186,264		$	29.72
Granted		—			—
Exercised		(51,088	)		27.61
Canceled/Expired		(4,536	)		22.58
Outstanding, December 31, 2024		130,640		$	30.79		5.49	$	1,417
Exercisable, December 31, 2024		130,640		$	30.79		5.49	$	1,417

There were no options granted in 2024. There were 51,088 options exercised in 2024 and 4,288 options exercised in 2023. The intrinsic value of options exercised was $832 thousand in 2024, and $58 thousand in 2023. As of December 31, 2024, there was no unrecognized compensation cost related to nonvested stock options.

Restricted Stock and Stock Unit Awards

The following table presents restricted stock activity and related information for the year ended December 31, 2024:

	*Shares/Units*			*Weighted Average Grant-Date Fair Value*

Nonvested, January 1, 2024		108,993		$	37.10
Granted		59,484			33.99
Vested		(16,648	)		35.00
Canceled		(708	)		41.55
Nonvested, December 31, 2024		151,121		$	36.09

As of December 31, 2024, unrecognized compensation cost related to nonvested restricted stock/unit awards totaled $2.47 million with an expected weighted average recognition period of 1.91 years. The actual compensation cost recognized might differ from this estimate due to various items, including new awards granted and changes in estimated forfeitures.

Note 13 - Other Operating Income and Expense

12 Months Ended

Dec. 31, 2024

Other Income and Other Expense Disclosure [Text Block]

Note 13. Other Operating Income and Expense

The following table presents the components of other operating income and expense for the periods indicated:

	*Year Ended December 31,*
(Amounts in thousands)	*2024*		*2023*		*2022*
Other operating income
Bank owned life insurance	$	1,143	$	829	$	961
Other(1)		5,358		4,822		4,187
Total other operating income	$	6,501	$	5,651	$	5,148

Other operating expense
OREO expense and net loss		50		129		557
Telephone and data communications		1,313		1,326		1,658
Office supplies		599		586		494
Other(1)		11,134		9,994		7,766
Total other operating expense	$	13,096	$	12,035	$	10,475

(1)

Components of other operating income or expense that do not exceed 1% of total income

Note 14 - Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Text Block]

Note 14. Income Taxes

Income tax expense is comprised of current and deferred, federal and state income taxes on the Company’s pre-tax earnings. The following table presents the components of the income tax provision for the periods indicated:

	*Year Ended December 31,*
(Amounts in thousands)	*2024*		*2023*		*2022*
Current tax expense:
Federal	$	11,070	$	11,055	$	9,883
State		1,173		1,553		1,648
Total current tax expense		12,243		12,608		11,531

Deferred tax expense:
Federal		1,624		1,166		1,800
State		223		180		164
Total deferred tax expense		1,847		1,346		1,964
Total income tax expense	$	14,090	$	13,954	$	13,495

The Company’s effective tax rate, income tax as a percent of pre-tax income, may vary significantly from the statutory rate due to permanent differences and available tax credits. Permanent differences are income and expense items excluded by law in the calculation of taxable income. The Company’s most significant permanent differences generally include interest income on municipal securities and increases in the cash surrender value of life insurance policies. The following table reconciles the Company’s income tax expense to the amount computed by applying the federal statutory tax rate to pre-tax income for the periods indicated:

	*Year Ended December 31,*
	*2024*						*2023*						*2022*
	*Amount*			*Percent*			*Amount*			*Percent*			*Amount*			*Percent*
(Amounts in thousands)
Federal income tax at the statutory rate	$	13,796			21.00	%	$	13,014			21.00	%	$	12,633			21.00	%
State income tax, net of federal benefit		1,102			1.68	%		1,368			2.21	%		1,432			2.38	%
		14,898			22.68	%		14,382			23.21	%		14,065			23.38	%
Increase (decrease) resulting from:
Tax-exempt interest income		(351	)		(0.54	)%		(348	)		(0.56	)%		(347	)		(0.58	)%
Excess tax benefits		(104	)		(0.16	)%		(25	)		(0.04	)%		(24	)		(0.04	)%
Bank owned life insurance		(227	)		(0.35	)%		(167	)		(0.27	)%		(68	)		(0.11	)%
Other items, net		(126	)		(0.19	)%		112			0.17	%		(131	)		(0.22	)%
Income tax at the effective tax rate	$	14,090			21.44	%	$	13,954			22.51	%	$	13,495			22.43	%

Deferred taxes derived from continuing operations reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for tax purposes. The following table presents the significant components of the net deferred tax asset as of the dates indicated:

	*December 31,*
(Amounts in thousands)	*2024*			*2023*
Deferred tax assets
Allowance for credit losses	$	8,193		$	8,523
Unrealized losses on available-for-sale securities		3,116			2,958
Unrealized asset losses		329			420
FDIC assisted transactions		333			346
Deferred loan fees		3,978			4,674
Deferred compensation assets		6,918			6,316
Federal net operating loss carryforward		—			266
Lease liability		121			146
Accrued litigation		83			824
Other		1,200			831
Total deferred tax assets		24,271			25,304

Deferred tax liabilities
Fixed assets		(1,332	)		(939	)
Intangible assets		(4,671	)		(4,303	)
Odd days interest deferral		(3,874	)		(4,134	)
Purchase accounting		(31	)		(81	)
Right of use asset		(115	)		(140	)
Other		(1,197	)		(869	)
Total deferred tax liabilities		(11,220	)		(10,466	)
Net deferred tax asset	$	13,051		$	14,838

The Company had no unrecognized tax benefits or accrued interest or penalties as of December 31, 2024 or 2023. The Company had no deferred tax valuation allowance recorded as of December 31, 2024 or 2023, as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. The Company and its subsidiaries are subject to U.S. federal income tax of the various states. The Company is no longer subject to examination by federal or state taxing authorities for years before 2021.

At December 31, 2024, the Company had no federal or state net operating loss carryforwards.

The Company has analyzed the tax positions taken, or expected to be taken in its tax returns, and concluded it has no liability related to uncertain tax positions.

The entire disclosure for income tax.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

Note 15 - Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2024

Comprehensive Income (Loss) Note [Text Block]

Note 15. Accumulated Other Comprehensive Income

The following table presents the changes in AOCI, net of tax and by component, during the periods indicated:

	*Unrealized Gains (Losses) on Available for-Sale Securities*			*Employee Benefit Plans*			*Total*
(Amounts in thousands)
Balance January 1, 2022	$	15		$	(1,561	)	$	(1,546	)
Other comprehensive (loss) income before reclassifications		(15,636	)		1,357			(14,279	)
Reclassified from AOCI		—			106			106
Other comprehensive (loss) income, net		(15,636	)		1,463			(14,173	)
Balance December 31, 2022	$	(15,621	)	$	(98	)	$	(15,719	)

Balance January 1, 2023	$	(15,621	)	$	(98	)	$	(15,719	)
Other comprehensive income before reclassifications		4,479			242			4,721
Reclassified from AOCI		16			31			47
Other comprehensive income, net		4,495			273			4,768
Balance December 31, 2023	$	(11,126	)	$	175		$	(10,951	)

Balance January 1, 2024	$	(11,126	)	$	175		$	(10,951	)
Other comprehensive (loss) income before reclassifications		(596	)		347			(249	)
Reclassified from AOCI		—			29			29
Other comprehensive (loss) income, net		(596	)		376			(220	)
Balance December 31, 2024	$	(11,722	)	$	551		$	(11,171	)

The following table presents reclassifications out of AOCI, by component, during the periods indicated:

	*Year Ended December 31,*									*Income Statement*
(Amounts in thousands)	*2024*			*2023*			*2022*			*Line Item Affected*
Available-for-sale securities
Loss recognized	$	—		$	21		$	—		Net loss on sale of securities
Reclassified out of AOCI, before tax		—			21			—		Income before income taxes
Income tax benefit		—			(5	)		—		Income tax expense
Reclassified out of AOCI, net of tax		—			16			—		Net income
Employee benefit plans
Amortization of prior service cost		—			—			—		Other operating expense
Amortization of net actuarial loss		37			38			135		Other operating expense
Reclassified out of AOCI, before tax		37			38			135		Income before income taxes
Income tax benefit		(8	)		(7	)		(29	)	Income tax expense
Reclassified out of AOCI, net of tax		29			31			106		Net income
Total reclassified out of AOCI, net of tax	$	29		$	47		$	106		Net income

Note 16 - Fair Value

12 Months Ended

Dec. 31, 2024

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

Note 16. Fair Value

Financial Instruments Measured at Fair Value

The following discussion describes the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments under the valuation hierarchy.

Assets and Liabilities Reported at Fair Value on a Recurring Basis

Available-for-Sale Debt Securities. Debt securities available for sale are reported at fair value on a recurring basis. The fair value of Level 1 securities is based on quoted market prices in active markets, if available. If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are primarily derived from or corroborated by observable market data. Level 2 securities use fair value measurements from independent pricing services obtained by the Company. These fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and bond terms and conditions. The Company’s Level 2 securities include U.S. Agency and Treasury securities, municipal securities, and mortgage-backed securities. Securities are based on Level 3 inputs when there is limited activity or less transparency to the valuation inputs. In the absence of observable or corroborated market data, internally developed estimates that incorporate market-based assumptions are used when such information is available.

Fair value models may be required when trading activity has declined significantly or does not exist, prices are not current, or pricing variations are significant. For Level 3 securities, the Company obtains the cash flow of specific securities from third parties that use modeling software to determine cash flows based on market participant data and knowledge of the structures of each individual security. The fair values of Level 3 securities are determined by applying proper market observable discount rates to the cash flow derived from third-party models. Discount rates are developed by determining credit spreads above a benchmark rate, such as SOFR, and adding premiums for illiquidity, which are based on a comparison of initial issuance spread to SOFR versus a financial sector curve for recently issued debt to SOFR. Securities with increased uncertainty about the receipt of cash flows are discounted at higher rates due to the addition of a deal specific credit premium based on assumptions about the performance of the underlying collateral. Finally, internal fair value model pricing and external pricing observations are combined by assigning weights to each pricing observation. Pricing is reviewed for reasonableness based on the direction of specific markets and the general economic indicators.

Equity Securities. Equity securities are recorded at fair value on a recurring basis and included in other assets in the consolidated balance sheets. The Company uses Level 1 inputs to value equity securities that are traded in active markets. Equity securities that are not actively traded are classified in Level 2.

Loans Held for Investment. Loans held for investment are reported at fair value using the exit price notion, which is derived from third-party models. Loans related to fair value hedges are recorded at fair value on a recurring basis.

Deferred Compensation Assets and Liabilities. Securities held for trading purposes are recorded at fair value on a recurring basis and included in other assets in the consolidated balance sheets. These securities include assets related to employee deferred compensation plans, which are generally invested in Level 1 equity securities. The liability associated with these deferred compensation plans is carried at the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets.

Derivative Assets and Liabilities. Derivatives are recorded at fair value on a recurring basis. The Company obtains dealer quotes, Level 2 inputs, based on observable data to value derivatives.

The following tables summarize financial assets and liabilities recorded at fair value on a recurring basis, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:

	*December 31, 2024*
	*Total*		*Fair Value Measurements Using*
(Amounts in thousands)	*Fair Value*		*Level 1*		*Level 2*		*Level 3*
Available-for-sale debt securities
U.S. Treasury securities	$	55,769	$	-	$	55,769		—
Municipal securities		13,837		—		13,837	$	-
Corporate Notes		27,542		—		27,542		—
Mortgage-backed Agency securities		72,701		—		72,701		—
Total available-for-sale debt securities		169,849		—		169,849		—
Equity securities		55		—		55		—
Fair value loans		2,993		—		—		2,993
Derivative assets		116		—		116		—
Deferred compensation assets		8,571		8,571		—		—
Deferred compensation liabilities		10,189		10,189		—		—

	*December 31, 2023*
	*Total*		*Fair Value Measurements Using*
(Amounts in thousands)	*Fair Value*		*Level 1*		*Level 2*		*Level 3*
Available-for-sale debt securities
U.S. Agency securities	$	5,749	$	—	$	5,749	$	—
U.S. Treasury securities		145,826	$	—		145,826	$	—
Municipal securities		19,377		—		19,377		—
Corporate Notes		27,081		—		27,081		—
Mortgage-backed Agency securities		82,928		—		82,928		—
Total available-for-sale debt securities		280,961		—		280,961		—
Equity securities		55		—		55		—
Fair value loans		3,421		—		—		3,421
Derivative assets		136		—		136		—
Deferred compensation assets		6,729		6,729		—		—
Deferred compensation liabilities		8,282		8,282		—		—

Changes in Level 3 Fair Value Measurements

The following table presents the changes in Level 3 assets recorded at fair value on a recurring basis during the period indicated:

	*Assets*
(Amounts in thousands)
Balance January 1, 2023	$	3,784
Changes in fair value		63
Changes due to principal reduction		(426	)
Balance December 31, 2023	$	3,421

Balance January 1, 2024	$	3,421
Changes in fair value		20
Changes due to principal reduction		(448	)
Balance December 31, 2024	$	2,993

No transfers into or out of Level 3 of the fair value hierarchy occurred during the year ended December 31, 2024 or 2023.

Assets Measured at Fair Value on a Nonrecurring Basis

Impaired Loans. Prior to the adoption of ASU 2016-13, impaired loans were recorded at fair value on a nonrecurring basis when repayment is expected solely from the sale of the loan's collateral. Fair value is based on appraised value adjusted for customized discounting criteria, Level 3 inputs.

The Company maintains an active and robust problem credit identification system. The review includes obtaining third-party collateral valuations to help management identify potential credit impairment and determine the amount of impairment to record. The Company’s Special Assets staff manages and monitors all impaired loans. Internal collateral valuations are generally performed within two to four weeks of identifying the initial potential impairment. The internal valuation compares the original appraisal to current local real estate market conditions and considers experience and expected liquidation costs. The Company typically receives a third-party valuation within thirty to forty-five days of completing the internal valuation. When a third-party valuation is received, it is reviewed for reasonableness. Once the valuation is reviewed and accepted, discounts are applied to fair market value, based on, but not limited to, our historical liquidation experience for like collateral, resulting in an estimated net realizable value. The estimated net realizable value is compared to the outstanding loan balance to determine the appropriate amount of specific impairment reserve.

OREO. OREO is recorded at fair value on a nonrecurring basis using Level 3 inputs. The Company calculates the fair value of OREO from current or prior appraisals that have been adjusted for valuation declines, estimated selling costs, and other proprietary qualitative adjustments that are deemed necessary.

The following tables present assets measured at fair value on a nonrecurring basis, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:

	*December 31, 2024*
	*Total*		*Fair Value Measurements Using*
	*Fair Value*		*Level 1*		*Level 2*		*Level 3*
(Amounts in thousands)
Collateral dependent assets with specific reserves	$	531	$	—	$	—	$	531
OREO		521		—		—		521

	*December 31, 2023*
	*Total*		*Fair Value Measurements Using*
	*Fair Value*		*Level 1*		*Level 2*		*Level 3*
(Amounts in thousands)
Collateral dependent assets with specific reserves	$	825	$	—	$	—	$	825
OREO		192		—		—		192

Quantitative Information about Level 3 Fair Value Measurements

The following table provides quantitative information for assets measured at fair value on a nonrecurring basis using Level 3 valuation inputs as of the dates indicated:

			*Discount Range*
	*Valuation*	*Unobservable*	*(Weighted Average)*
	*Technique*	*Input*	*December 31, 2024*

Collateral dependent assets with specific reserves	Discounted appraisals(1)	Appraisal adjustments(2)		0	%	0	%
OREO	Discounted appraisals(1)	Appraisal adjustments(2)		20% to 74%			61%

(1)		Fair value is generally based on appraisals of the underlying collateral.
(2)		Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.

			*Discount Range*
	*Valuation*	*Unobservable*	*(Weighted Average)*
	*Technique*	*Input*	*December 31, 2023*

Collateral dependent assets with specific reserves	Discounted appraisals(1)	Appraisal adjustments(2)		42	%	42%
OREO	Discounted appraisals(1)	Appraisal adjustments(2)		20% to 100%		10%

(1)		Fair value is generally based on appraisals of the underlying collateral.
(2)		Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.

The following tables present the carrying amounts and fair values of financial instruments, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:

	*December 31, 2024*
	*Carrying*				*Fair Value Measurements Using*
(Amounts in thousands)	*Amount*		*Fair Value*		*Level 1*		*Level 2*		*Level 3*
Assets
Cash and cash equivalents	$	377,454	$	377,454	$	377,454	$	—	$	—
Debt securities available for sale		169,849		169,849		—		169,849		—
Equity securities		55		55		—		55		—
Loans held for investment, net of allowance		2,381,264		2,177,891		—		—		2,177,891
Interest receivable		9,207		9,207		—		1,246		9,635
Deferred compensation assets		8,571		8,571		8,571		—		—
Derivative assets		116		116		—		116		—

Liabilities
Time deposits		240,541		238,262		—		238,262		—
Securities sold under agreements to repurchase		906		906		—		906		—
Interest payable		880		880		—		880		—
Deferred compensation liabilities		10,189		10,189		10,189		—		—

	*December 31, 2023*
	*Carrying*				*Fair Value Measurements Using*
(Amounts in thousands)	*Amount*		*Fair Value*		*Level 1*		*Level 2*		*Level 3*
Assets
Cash and cash equivalents	$	116,420	$	116,420	$	116,420	$	—	$	—
Debt securities available for sale		280,961		280,961		—		280,961		—
Equity securities		55		55		—		55		—
Loans held for investment, net of allowance		2,536,109		2,350,071		—		—		2,350,071
Interest receivable		10,881		10,881		—		1,246		9,635
Deferred compensation assets		6,729		6,729		6,729		—		—
Derivative assets		136		136				136

Liabilities
Time deposits		253,373		247,141		—		247,141		—
Securities sold under agreements to repurchase		1,119		1,119		—		1,119		—
Interest payable		556		556		—		556		—
Deferred compensation liabilities		8,282		8,282		8,282		—		—

Note 17 - Earnings Per Share

12 Months Ended

Dec. 31, 2024

Earnings Per Share [Text Block]

Note 17. Earnings per Share

The following table presents the calculation of basic and diluted earnings per common share for the periods indicated:

	*Year Ended December 31,*
	*2024*		*2023*		*2022*
(Amounts in thousands, except share and per share data)
Net income	$	51,604	$	48,020	$	46,662

Weighted average common shares outstanding, basic		18,349,498		17,996,373		16,519,848
Dilutive effect of potential common shares
Stock options		33,692		15,856		18,784
Restricted stock and units		47,016		14,922		23,625
Total dilutive effect of potential common shares		80,708		30,778		42,409
Weighted average common shares outstanding, diluted		18,430,206		18,027,151		16,562,257

Basic earnings per common share	$	2.81	$	2.67	$	2.82
Diluted earnings per common share		2.80		2.72		2.82

Potential antidilutive common shares
Stock options		—		129,324		131,198
Restricted stock and units		76		32,706		—
Total potential antidilutive shares		76		162,030		131,198

Note 18 - Related Party Transactions

12 Months Ended

Dec. 31, 2024

Note 18. Related Party Transactions

Loans to principal officers, directors, and their affiliates were as follows:

	*Year Ended December 31,*
	*2024*			*2023*
(Amounts in thousands)
Beginning balance	$	30,017		$	30,981
New loans and advances		6,727			5,215
Loan repayments		(11,497	)		(6,217	)
Reclassifications(1)		307			38
Ending balance	$	25,554		$	30,017

(1)

Changes related to the composition of the Company's directors, executive officers, and related insiders

Deposits from related parties totaled $15.16 million as of December 31, 2024, and $15.19 million as of December 31, 2023. Legal fees paid to related parties totaled $81 thousand in 2024, $41 thousand in 2023, and $47 thousand in 2022. There were no lease payments paid to related parties in 2024, 2023, or 2022. Other expense paid to related parties totaled $6 thousand in 2024, $53 thousand in 2023, and $23 thousand in 2022.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Note 19 - Litigation, Commitments, and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Text Block]

Note 19. Litigation, Commitments, and Contingencies

Litigation

On May 6, 2024, the Bank agreed to settle a putative class action lawsuit pending in the United States District Court for the Southern District of West Virginia, filed on June 24, 2022. The civil action alleges the Bank breached its deposit account agreements and was unjustly enriched by collecting overdraft fees with respect to certain debit card transactions and by assessing more than one nonsufficient funds fee on items presented multiple times for payment. The Bank denies each and every substantive allegation asserted in the civil action. Under the settlement, which is subject to documentation and preliminary and final court approval, the Bank agrees to establish a $4.80 million settlement fund and forgive up to $500,000 in assessed but unpaid fees. Attorneys’ fees, settlement administration expenses, and settlement payments to eligible class members will be paid from the settlement fund. Under the settlement, the Bank admitted no wrongdoing and will receive a complete release of all claims asserted in the civil action. The Bank agreed to the settlement in order to resolve the litigation and avoid further expense. The Company previously accrued $3.00 million as an estimated liability relating to this civil action.

The Company and its subsidiaries are currently involved in various legal proceedings in the normal course of business. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with all pending or threatened claims and litigation, utilizing the most recent information available. On a matter-by-matter basis, an accrual for loss is established for those matters which the Company believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, each accrual is adjusted as appropriate to reflect any subsequent developments. Accordingly, management’s estimate will change from time to time, and actual losses may be more or less than the current estimate. For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established.

We are currently a defendant in other legal actions and asserted claims in the normal course of business. Although we are unable to assess the ultimate outcome of each matter with certainty, we believe that the resolution of these actions should not have a material adverse effect on our financial position, results of operations, or cash flows.

Commitments and Contingencies

The Company is a party to financial instruments with off balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, and financial guarantees. These instruments involve, to varying degrees, elements of credit and interest rate risk beyond the amount recognized in the consolidated balance sheets. The contractual amounts of these instruments reflect the extent of involvement the Company has in particular classes of financial instruments. If the other party to a financial instrument does not perform, the Company’s credit loss exposure is the same as the contractual amount of the instrument. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments are expected to expire without being drawn on, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of each customer on a case-by-case basis. Collateral may include accounts receivable, inventory, property, plant and equipment, and income producing commercial properties. The Company maintains a reserve for the risk inherent in unfunded lending commitments, which is included in other liabilities in the consolidated balance sheets.

Standby letters of credit and financial guarantees are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending credit to customers. The amount of collateral obtained, if deemed necessary, to secure the customer’s performance under certain letters of credit is based on management’s credit evaluation of the customer.

The following table presents the off-balance sheet financial instruments as of the dates indicated:

	*December 31,*
	*2024*		*2023*
(Amounts in thousands)
Commitments to extend credit	$	252,225	$	277,462
Standby letters of credit and financial guarantees(1)		125,561		129,220
Total off-balance sheet risk		377,786		406,682

(1)	Includes FHLB letters of credit

Note 20 - Regulatory Requirements and Restrictions

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note 20. Regulatory Requirements and Restrictions

The Company and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, which applies only to the Bank, the Bank must meet specific capital guidelines that involve quantitative measures of the entity’s balance sheet assets and off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In addition, the Company and the Bank are subject to various regulatory restrictions related to the payment of dividends, including requirements to maintain capital at or above regulatory minimums.

The current risk-based capital requirements, based on the international capital standards known as Basel III, requires the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital, and total capital to risk-weighted assets, and of Tier 1 capital to average consolidated assets (“Tier 1 leverage ratio”), as defined in the regulations. Basel III’s capital conservation buffer (“CCB”), which is intended to absorb losses during periods of economic stress, increased those minimum ratios by 2.5% on January 1, 2019).

The following tables present actual and required capital ratios, under Basel III capital rules, as of the dates indicated:

	*December 31, 2024*
	*Actual*					*Minimum Basel III Requirement*					*Minimum Basel III Requirement - with CCB*					*Well Capitalized Requirement(1)*
(Amounts in thousands)	*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*
The Company
Common equity Tier 1 ratio	$	380,602		16.75	%	$	102,277		4.50	%	$	159,097		7.00	%		N/A		N/A
Tier 1 risk-based capital ratio		380,602		16.75	%		136,369		6.00	%		193,190		8.50	%		N/A		N/A
Total risk-based capital ratio		409,096		18.00	%		181,826		8.00	%		238,646		10.50	%		N/A		N/A
Tier 1 Leverage ratio		380,602		12.25	%		124,267		4.00	%		N/A		N/A			N/A		N/A

The Bank
Common equity Tier 1 ratio	$	315,006		13.89	%	$	102,025		4.50	%	$	158,705		7.00	%	$	147,369		6.50	%
Tier 1 risk-based capital ratio		315,006		13.89	%		136,003		6.00	%		192,713		8.50	%		181,377		8.00	%
Total risk-based capital ratio		343,430		15.15	%		181,377		8.00	%		238,058		10.50	%		226,722		10.00	%
Tier 1 Leverage ratio		315,006		10.32	%		122,092		4.00	%		N/A		N/A			152,615		5.00	%

(1)	Based on prompt corrective action provisions

	*December 31, 2023*
	*Actual*					*Minimum Basel III Requirement*					*Minimum Basel III Requirement - with CCB*					*Well Capitalized Requirement(1)*
(Amounts in thousands)	*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*			*Amount*		*Ratio*
The Company
Common equity Tier 1 ratio	$	355,157		14.69	%	$	108,761		4.50	%	$	169,184		7.00	%		N/A		N/A
Tier 1 risk-based capital ratio		355,157		14.69	%		145,015		6.00	%		205,438		8.50	%		N/A		N/A
Total risk-based capital ratio		385,369		15.94	%		193,353		8.00	%		253,776		10.50	%		N/A		N/A
Tier 1 Leverage ratio		355,157		11.52	%		123,278		4.00	%		N/A		N/A			N/A		N/A

The Bank
Common equity Tier 1 ratio	$	312,593		12.97	%	$	108,461		4.50	%	$	168,718		7.00	%	$	156,667		6.50	%
Tier 1 risk-based capital ratio		312,593		12.97	%		144,615		6.00	%		204,872		8.50	%		192,820		8.00	%
Total risk-based capital ratio		342,805		14.22	%		192,820		8.00	%		253,077		10.50	%		241,026		10.00	%
Tier 1 Leverage ratio		312,593		10.07	%		124,181		4.00	%		N/A		N/A			155,226		5.00	%

(1)	Based on prompt corrective action provisions

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Note 21 - Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting Disclosure [Text Block]

Note 21. Segment Information

The Company conducts its business activities through community banking. Community banking revolves around serving the community and customers where the bank has branches and offices. Community banking consists of commercial and consumer banking, lending activities, and wealth management.

The Company’s chief executive officer is in charge of allocating the Company’s resources and assessing the Company's performance, and as such, has been identified as the chief operating decision maker. The chief operating decision maker regularly reviews a multitude of reports that have a varying level of combined detail on products offered, however, all of the information and activity reviewed fall under the definition of community banking.

Based on the business activities and information reviewed by the chief operating decision maker, the Company has one reportable segment - Community Banking.

The accounting policies of the community banking segment are the same as those for the Company described in Note 1. In accordance with ASC 280, the Company has concluded that consolidated net income is the measure of segment profit or loss that is required to be reported because it is the measure determined in accordance with measurement principles that are most consistent with US GAAP. As the Company only has one reportable segment, total segment net income and total segment assets are equivalent to the results disclosed in the accompanying Consolidated Statements of Income and Consolidated Balance Sheets, respectively

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/280/tableOfContent

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Note 22 - Parent Company Financial Information

12 Months Ended

Dec. 31, 2024

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 22. Parent Company Financial Information

The following tables present condensed financial information for the parent company, First Community Bankshares, Inc., as of and for the dates indicated:

	*CONDENSED BALANCE SHEETS*
	*December 31,*
(Amounts in thousands)	*2024*			*2023*
Assets
Cash and due from banks	$	3,952		$	14,681
Securities available for sale		55,768			22,468
Investment in subsidiaries		460,789			460,731
Other assets		6,166			6,227
Total assets	$	526,675		$	504,107

Liabilities
Other liabilities	$	283		$	813
Total liabilities		283			813

Stockholders' equity
Common stock		18,322			18,502
Additional paid-in capital		169,752			175,841
Retained earnings		349,489			319,902
Accumulated other comprehensive loss		(11,171	)		(10,951	)
Total stockholders' equity		526,392			503,294
Total liabilities and stockholders' equity	$	526,675		$	504,107

	*CONDENSED STATEMENTS OF INCOME*
	*Year Ended December 31,*
	*2024*		*2023*			*2022*
(Amounts in thousands)
Cash dividends received from subsidiary bank	$	50,800	$	45,700		$	56,250
Other income		2,432		1,397			222
Other operating expense		1,859		1,524			1,052
Income before income taxes and equity in undistributed net income of subsidiaries		51,373		45,573			55,420
Income tax benefit		50		(41	)		(224	)
Income before equity in undistributed net income of subsidiaries		51,323		45,614			55,644
Equity in (dividends in excess) of undistributed net income of subsidiaries		281		2,406			(8,982	)
Net income	$	51,604	$	48,020		$	46,662

	*CONDENSED STATEMENTS OF CASH FLOWS*
	*Year Ended December 31,*
(Amounts in thousands)	*2024*			*2023*			*2022*
Operating activities
Net income	$	51,604		$	48,020		$	46,662
Adjustments to reconcile net income to net cash provided by operating activities
Net change in other operating activities		(1,818	)		(3,275	)		8,442
Net cash provided by operating activities		49,786			44,745			55,104
Investing activities
Purchase of investment securities		(109,979	)		(69,469	)		(19,372	)
Proceeds from maturities, calls, sales of investment securities		77,750			65,250			11,807
Dividends in excess of undistributed net income of subsidiaries		—			—			—
Net cash (used) provided by investing activities		(32,229	)		(4,219	)		(7,565	)
Financing activities
Proceeds from issuance of common stock		1,410			91			172
Payments for repurchase of common stock		(8,717	)		(23,038	)		(21,311	)
Payments of common dividends		(22,017	)		(21,089	)		(18,515	)
Net change in other financing activities		1,038			1,203			1,375
Net cash (used) provided by financing activities		(28,286	)		(42,833	)		(38,279	)
Cash and cash equivalents increase (decrease)		(10,729	)		(2,307	)		9,260
Cash and cash equivalents at carrying value at beginning of period		14,681			16,988			7,728
Cash and cash equivalents at carrying value at end of period	$	3,952		$	14,681		$	16,988

Note 23 - Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2024