Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 21, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000719402 | ||
Entity Registrant Name | FIRST NATIONAL CORP /VA/ | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 1-38874 | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 54-1232965 | ||
Entity Address, Address Line One | 112 West King Street | ||
Entity Address, City or Town | Strasburg | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22657 | ||
City Area Code | 540 | ||
Local Phone Number | 465-9121 | ||
Title of 12(b) Security | Common stock, par value $1.25 per share | ||
Trading Symbol | FXNC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 83,326,978 | ||
Entity Common Stock, Shares Outstanding | 6,249,784 | ||
Auditor Name | Yount, Hyde & Barbour, P.C. | ||
Auditor Location | Winchester, Virginia | ||
Auditor Firm ID | 613 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 18,725 | $ 13,115 |
Interest-bearing deposits in banks | 157,281 | 114,182 |
Securities available for sale, at fair value | 289,495 | 140,225 |
Securities held to maturity, at amortized cost (fair value, 2021, $33,617; 2020, $14,743) | 33,441 | 14,234 |
Restricted securities, at cost | 1,813 | 1,875 |
Loans held for sale | 0 | 245 |
Loans, net of allowance for loan losses, 2021, $5,710, 2020, $7,485 | 819,408 | 622,429 |
Other real estate owned, net of valuation allowance, 2021, $139, 2020, $0 | 1,848 | 0 |
Premises and equipment, net | 22,403 | 19,319 |
Accrued interest receivable | 3,903 | 2,717 |
Bank owned life insurance | 24,294 | 17,916 |
Core deposit intangibles, net | 154 | 19 |
Goodwill | 3,030 | 0 |
Other assets | 13,642 | 4,656 |
Total assets | 1,389,437 | 950,932 |
Liabilities | ||
Noninterest-bearing demand deposits | 413,188 | 263,229 |
Savings and interest-bearing demand deposits | 689,998 | 479,035 |
Time deposits | 145,566 | 100,197 |
Total deposits | 1,248,752 | 842,461 |
Subordinated debt | 9,993 | 9,991 |
Junior subordinated debt | 9,279 | 9,279 |
Accrued interest payable and other liabilities | 4,374 | 4,285 |
Total liabilities | 1,272,398 | 866,016 |
Commitments and contingencies | ||
Shareholders’ Equity | ||
Preferred stock, par value $1.25 per share; authorized 1,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, par value $1.25 per share; authorized 8,000,000 shares; issued and outstanding, 2021, 6,228,176 shares, 2020, 4,860,399 shares | 7,785 | 6,075 |
Surplus | 31,966 | 6,151 |
Retained earnings | 76,990 | 69,292 |
Accumulated other comprehensive income, net | 298 | 3,398 |
Total shareholders’ equity | 117,039 | 84,916 |
Total liabilities and shareholders’ equity | $ 1,389,437 | $ 950,932 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Securities, fair value | $ 33,617 | $ 14,743 |
Allowance for loan losses | 5,710 | 7,485 |
Other real estate owned, valuation allowance | $ 139 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, shares authorized (in shares) | 8,000,000 | 8,000,000 |
Common stock, shares issued (in shares) | 6,228,176 | 4,860,399 |
Common stock, shares outstanding (in shares) | 6,228,176 | 4,860,399 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 32,797 | $ 29,497 |
Interest on deposits in banks | 213 | 190 |
Interest on federal funds sold | 10 | 0 |
Interest and dividends on securities: | ||
Taxable interest | 3,100 | 2,448 |
Tax-exempt interest | 936 | 617 |
Dividends | 88 | 99 |
Total interest and dividend income | 37,144 | 32,851 |
Interest Expense | ||
Interest on deposits | 1,415 | 2,589 |
Interest on subordinated debt | 619 | 501 |
Interest on junior subordinated debt | 270 | 293 |
Total interest expense | 2,304 | 3,383 |
Net interest income | 34,840 | 29,468 |
(Recovery of) provision for loan losses | (650) | 3,000 |
Net interest income after (recovery of) provision for loan losses | 35,490 | 26,468 |
Noninterest Income | ||
Noninterest income | 9,019 | 7,493 |
Income from bank owned life insurance | 526 | 469 |
Net gains on securities available for sale | 37 | 40 |
Net gains on sale of loans | 25 | 70 |
Net gains on disposal of premises and equipment | 15 | 29 |
Other operating income | 555 | 113 |
Total noninterest income | 10,187 | 8,254 |
Noninterest Expense | ||
Salaries and employee benefits | 17,792 | 13,321 |
Occupancy | 1,856 | 1,666 |
Equipment | 1,910 | 1,707 |
Marketing | 666 | 355 |
Supplies | 509 | 394 |
Legal and professional fees | 2,537 | 1,152 |
ATM and check card expenses | 1,145 | 980 |
FDIC assessment | 346 | 247 |
Bank franchise tax | 665 | 637 |
Data processing expense | 2,156 | 759 |
Amortization expense | 28 | 151 |
Other real estate owned expense, net | 26 | 0 |
Other operating expense | 3,096 | 2,446 |
Total noninterest expense | 32,732 | 23,815 |
Income before income taxes | 12,945 | 10,907 |
Income tax expense | 2,586 | 2,049 |
Net income | $ 10,359 | $ 8,858 |
Earnings per common share | ||
Basic (in dollars per share) | $ 1.87 | $ 1.82 |
Diluted (in dollars per share) | $ 1.86 | $ 1.82 |
Deposit Account [Member] | ||
Noninterest Income | ||
Noninterest income | $ 2,061 | $ 2,028 |
Credit and Debit Card [Member] | ||
Noninterest Income | ||
Noninterest income | 2,930 | 2,314 |
Asset Management [Member] | ||
Noninterest Income | ||
Noninterest income | 2,712 | 2,208 |
Financial Service, Other [Member] | ||
Noninterest Income | ||
Noninterest income | 787 | 627 |
Mortgage Banking [Member] | ||
Noninterest Income | ||
Noninterest income | $ 539 | $ 356 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 10,359 | $ 8,858 |
Other comprehensive income, net of tax: | ||
Unrealized holding (loss) gains on available for sale securities, net of tax ($923) and $629, respectively | (3,474) | 2,366 |
Reclassification adjustment for (losses) included in net income, net of tax ($8) and ($8), respectively | (29) | (32) |
Change in fair value of cash flow hedges, net of tax $107 and $91, respectively | 403 | 340 |
Total other comprehensive (loss) income | (3,100) | 2,674 |
Total comprehensive income | $ 7,259 | $ 11,532 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unrealized holding losses on securities transferred from held to maturity to available for sale, tax | $ (923) | $ 629 |
Reclassification adjustment for losses included in net income, tax | (8) | (8) |
Change in fair value of cash flow hedges, tax | $ 107 | $ 91 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 10,359 | $ 8,858 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 1,377 | 1,316 |
Amortization of core deposit intangibles | 28 | 151 |
Amortization of debt issuance costs | 2 | 18 |
Origination of loans held for sale | (1,586) | (4,152) |
Proceeds from sale of loans held for sale | 1,856 | 4,144 |
Net gains on sales of loans held for sale | (25) | (70) |
(Recovery of) provision for loan losses | (650) | 3,000 |
Fair value adjustments on other real estate owned | 139 | 0 |
Gains on securities available for sale | (37) | (40) |
Net gains on sale of other real estate owned | (8) | 0 |
Increase in cash value of bank owned life insurance | (526) | (469) |
Accretion of discounts and amortization of premiums on securities, net | 1,078 | 687 |
Accretion of premium on time deposits | (179) | (23) |
Accretion of certain acquisition-related discounts, net | (408) | 0 |
Stock-based compensation | 354 | 290 |
Excess tax benefits on stock-based compensation | 3 | (2) |
(Gains) on disposal of premises and equipment | (15) | (29) |
Deferred income tax benefit | (1,682) | (923) |
Changes in assets and liabilities: | ||
Decrease (increase) in interest receivable | 545 | (652) |
(Increase) decrease in other assets | (1,714) | 828 |
(Decrease) increase in accrued expenses and other liabilities | (1,043) | 2,159 |
Net cash provided by operating activities | 7,868 | 15,091 |
Cash Flows from Investing Activities | ||
Proceeds from maturities, calls, principal payments, and sales of securities available for sale | 54,551 | 34,057 |
Proceeds from maturities, calls, and principal payments of securities held to maturity | 4,732 | 3,283 |
Purchases of securities available for sale | (197,074) | (50,881) |
Purchases of securities held to maturity | (24,049) | 0 |
Net redemption (purchase) of restricted securities | 245 | (69) |
Purchase of premises and equipment, net | (835) | (909) |
Proceeds from sale of premises and equipment | 32 | 50 |
Proceeds from sale of other real estate owned | 288 | 0 |
Net (decrease) increase in loans | 80,145 | (56,017) |
Net cash used in investing activities | (126,304) | (70,486) |
Cash Flows from Financing Activities | ||
Net increase in demand deposits and savings accounts | 176,387 | 153,386 |
Net decrease in time deposits | (6,698) | (17,344) |
Proceeds from subordinated debt, net of issuance costs | 0 | 4,990 |
Cash dividends paid on common stock, net of reinvestment | (2,505) | (2,007) |
Net cash provided by financing activities | 167,145 | 136,907 |
Increase in cash and cash equivalents | 48,709 | 81,512 |
Cash and Cash Equivalents | ||
Beginning | 127,297 | 45,785 |
Ending | 176,006 | 127,297 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | 2,464 | 3,457 |
Income taxes | 2,025 | 3,088 |
Supplemental Disclosures of Noncash Transactions | ||
Unrealized (losses) gains on securities available for sale | (4,434) | 2,955 |
Change in fair value of cash flow hedges | 510 | 431 |
Transfer from loans to other real estate owned | 130 | 0 |
Issuance of common stock, dividend reinvestment plan | 156 | 142 |
Supplemental Disclosures of Noncash Transactions Related to Acquisitions | ||
Assets acquired | 306,171 | 0 |
Liabilities assumed | 237,913 | 0 |
Smartbank [Member] | ||
Cash Flows from Investing Activities | ||
Net cash paid in acquisition | (83,745) | 0 |
The Bank of Fincastle [Member] | ||
Cash Flows from Investing Activities | ||
Net cash paid in acquisition | 39,406 | 0 |
First National Corporation 2014 Stock Incentive Plan [Member] | ||
Cash Flows from Financing Activities | ||
Repurchase of common stock | (39) | (47) |
Stock Repurchase Plan [Member] | ||
Cash Flows from Financing Activities | ||
Repurchase of common stock | $ 0 | $ (2,071) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | First National Corporation 2014 Stock Incentive Plan [Member]Common Stock [Member] | First National Corporation 2014 Stock Incentive Plan [Member]Additional Paid-in Capital [Member] | First National Corporation 2014 Stock Incentive Plan [Member]Retained Earnings [Member] | First National Corporation 2014 Stock Incentive Plan [Member]AOCI Attributable to Parent [Member] | First National Corporation 2014 Stock Incentive Plan [Member] | Stock Repurchase Plan [Member]Common Stock [Member] | Stock Repurchase Plan [Member]Additional Paid-in Capital [Member] | Stock Repurchase Plan [Member]Retained Earnings [Member] | Stock Repurchase Plan [Member]AOCI Attributable to Parent [Member] | Stock Repurchase Plan [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2019 | $ 6,212 | $ 7,700 | $ 62,583 | $ 724 | $ 77,219 | ||||||||||
Net income | 0 | 0 | 8,858 | 0 | 8,858 | ||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 2,674 | 2,674 | ||||||||||
Cash dividends on common stock | 0 | 0 | (2,149) | 0 | (2,149) | ||||||||||
Stock-based compensation | 0 | 290 | 0 | 0 | 290 | ||||||||||
Issuance of common stock, dividend reinvestment plan | 11 | 131 | 0 | 0 | 142 | ||||||||||
Issuance of 12,492 shares common stock, stock incentive plan | 16 | (16) | 0 | 0 | 0 | ||||||||||
Repurchase of common stock | $ (3) | $ (44) | $ 0 | $ 0 | $ (47) | $ (161) | $ (1,910) | $ 0 | $ 0 | $ (2,071) | |||||
Balance at Dec. 31, 2020 | 6,075 | 6,151 | 69,292 | 3,398 | 84,916 | ||||||||||
Net income | 0 | 0 | 10,359 | 0 | 10,359 | ||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | (3,100) | (3,100) | ||||||||||
Cash dividends on common stock | 0 | 0 | (2,661) | 0 | (2,661) | ||||||||||
Stock-based compensation | 0 | 354 | 0 | 0 | 354 | ||||||||||
Issuance of common stock, dividend reinvestment plan | 9 | 147 | 0 | 0 | 156 | ||||||||||
Issuance of 12,492 shares common stock, stock incentive plan | 18 | (18) | 0 | 0 | 0 | ||||||||||
Repurchase of common stock | $ (2) | $ (37) | $ 0 | $ 0 | $ (39) | ||||||||||
Shares issued to shareholders of The Bank of Fincastle, net of costs (1,348,065 shares) | 1,685 | 25,369 | 0 | 0 | 27,054 | ||||||||||
Balance at Dec. 31, 2021 | $ 7,785 | $ 31,966 | $ 76,990 | $ 298 | $ 117,039 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
First National Corporation 2014 Stock Incentive Plan [Member] | ||
Repurchase of common stock shares (in shares) | 2,221 | 2,223 |
Stock Repurchase Plan [Member] | ||
Repurchase of common stock shares (in shares) | 129,035 | |
Cash dividends on common stock, per share (in dollars per share) | $ 0.48 | $ 0.44 |
Issuance of common stock, dividend reinvestment plan, shares (in shares) | 7,861 | 9,449 |
Issuance of common stock, stock incentive plan, shares (in shares) | 14,073 | 12,492 |
Shares issued, acquisition (in shares) | 1,348,065 |
Note 1 - Nature of Banking Acti
Note 1 - Nature of Banking Activities and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1. First National Corporation (the Company) is the bank holding company of First Bank (the Bank), First National (VA) Statutory Trust II (Trust II), and First National (VA) Statutory Trust III (Trust III and, together with Trust II, the Trusts). The Trusts were formed for the purpose of issuing redeemable capital securities, commonly known as trust preferred securities and are not tes. Bank of Fincastle Services, Inc. owns an entity that provides mortgage services. T The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to accepted practices within the banking industry. Risks and Uncertainties The outbreak of COVID- 19 no 19 Congress, the President, and the Federal Reserve have taken several actions designed to cushion the economic fallout. Most notably, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law in March 2020 $2 2021 March 2021 $1.9 19. 19, may The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID- 19 not 19, Results of Operations The Company’s net interest income could decrease due to COVID- 19. 19 6 24 19 19 may not may no The Company’s net interest income could also decrease due to adverse economic conditions that may 19 The Company's noninterest income could decrease due to COVID- 19. 2020 may may may may The Company’s noninterest expense could increase due to COVID- 19. may At this time, the Company is unable to project the full extent or materiality of the foregoing impacts but recognizes the breadth of the economic impacts of COVID- 19 may Capital and Liquidity While the Company believes it has sufficient capital to withstand an extended economic recession brought about by COVID- 19, may March 2020, December 31, 202 0. June 2020, The Company maintains access to multiple sources of liquidity. While wholesale funding markets have remained open, interest rates for short term funding could become volatile. If funding costs would become elevated for an extended period of time, it may Processes, Controls and Business Continuity Plan The Company continues to operate under its Pandemic Continuity of Operations Plan that includes a remote working strategy. The Company has not No not 19. not Lending Operations and Accommodations to Borrowers In keeping with regulatory guidance to work with borrowers during this unprecedented situation, the Company offered a payment deferral program, primarily during the second third 2020, 90 December 31, 2021. August 2020, not During the fourth 2020, taled $11.5 million at December 31, 2021. The Bank actively participated as a lender in the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) to support local small businesses and non-profit organizations by providing forgivable loans. Loan fees received from the SBA are accreted by the Bank into income evenly over the life of the loans, net of loan origination costs, through interest and fees on loans. PPP loans totaled $12.5 million at December 31, 2021, second third 2022, first second 2026. The Bank recognized $2.0 million and $824 thousand of accretion on deferred PPP income, net of origination costs, through interest and fees on loans for the year ended December 31, 2021 2020, . The total amount of deferred PPP income, net of origination costs, that has not December 31, 2021. Asset Quality The economic impact of the pandemic had an unfavorable impact on the financial condition of certain Bank customers. The Bank entered into loan modification agreements in the fourth 2020 The magnitude of the potential decline in the Bank’s loan quality will likely depend on the length and extent that the Bank’s customers experience business interruptions from the pandemic. Principles of Consolidation The consolidated financial statements of First National Corporation include the accounts of all six Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that require the most subjective or complex judgments relate to fair value measurements, the allowance for loan losses and goodwill and other intangible asset. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the Shenandoah Valley, central regions of Virginia, and the Richmond and Roanoke market areas. The types of lending that the Company engages in are included in Note 3. not one Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company has defined cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-bearing deposits in banks.” Securities Investments in debt securities with readily determinable fair values are classified as either held to maturity (HTM), available for sale (AFS), or trading based on management’s intent. Currently, all of the Company’s debt securities are classified as either AFS or HTM. Equity investments in the FHLB, the Federal Reserve Bank of Richmond, and Community Bankers Bank are separately classified as restricted securities and are carried at cost. AFS securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income, and HTM securities are carried at amortized cost. When an individual AFS security is sold, the Company releases the income tax effects associated with the AFS security from accumulated other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains or losses on the sale of securities are recorded on the trade date using the amortized cost of the specific security sold. Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either the Company ( 1 2 not not not no no For equity securities carried at cost, such as restricted securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. The Company regularly reviews each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity, and the likelihood that the Company would be required to sell the security before recovery. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Company, through its banking subsidiary, requires a firm purchase commitment from a permanent investor before loans held for sale can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Bank enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 60 not The market value of rate lock commitments and best efforts contracts is not not no Loans The Company, through its banking subsidiary, grants mortgage, commercial, and consumer loans to customers. The Bank segments its loan portfolio into real estate loans, commercial and industrial loans, and consumer and other loans. Real estate loans are further divided into the following classes: Construction and Land Development; 1 4 Real Estate Loans – Construction and Land Development one four Real Estate Loans – 1 4 Family one four first Real Estate Loans – Other Commercial and Industrial Loans: may Consumer and Other Loans A substantial portion of the loan portfolio is represented by residential and commercial loans secured by real estate throughout the Bank's market area. The ability of the Bank’s debtors to honor their contracts may Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances less the allowance for loan losses and any deferred fees or costs on originated loans. Interest income is accrued and credited to income based on the unpaid principal balance. Loan origination fees, net of certain origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest income includes amortization of purchase premiums and discounts, recognized evenly over the life of the loans. A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on non-accrual status when the collection of principal or interest is 90 90 may first may All interest accrued but not Any unsecured loan that is deemed uncollectible is charged-off in full. Any secured loan that is considered by management to be uncollectible is partially charged-off and carried at the fair value of the collateral less estimated selling costs. This charge-off policy applies to all loan segments. Loans Acquired in a Business Combination Acquired loans are classified as either (i) purchased credit-impaired (PCI) loans or (ii) purchased performing loans and are recorded at fair value on the date of acquisition. PCI loans are those for which there is evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the Company will not third 2021. Purchased performing loans are those for which there is no third 2021 Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value (net of selling costs), and the probability of collecting scheduled principal and interest payments when due. Additionally, management generally evaluates substandard and doubtful loans greater than $250 thousand for impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not not Troubled Debt Restructurings (TDR) In situations where, for economic or legal reasons related to a borrower’s financial condition, management grants a concession to the borrower that it would not no may December 31, 2021 2020 Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines that the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. For further information about the Company’s loans and the allowance for loan losses, see Notes 3 4. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may The Company performs regular credit reviews of the loan portfolio to review credit quality and adherence to underwriting standards. The credit reviews consist of reviews by its internal credit administration department and reviews performed by an independent third one one The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may may • 1 4 • Real estate construction and land development loans carry risks that the project may not may not may, may may not may • Other real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may • Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may may • Consumer and other loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, if any. These loans are typically either unsecured or secured by rapidly depreciating assets such as automobiles. They are also likely to be immediately and adversely affected by job loss, divorce, illness, personal bankruptcy, or other changes in circumstances. Consumer and other loans also include purchased consumer loans which could have been originated outside of the Company's market area. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows, fair value of collateral less estimated costs to sell, or observable market price of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal is ordered if a current one not third may The general component covers loans that are not twelve may Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three forty three seven Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. Other Real Estate Owned Other real estate owned (OREO) consists of properties obtained through a foreclosure proceeding or through an in-substance foreclosure in satisfaction of loans and properties originally acquired for branch operations or expansion but no may Bank-Owned Life Insurance The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as income from bank owned life insurance on the consolidated statements of income. In the event of the death of an insured individual under these policies, the Company receives a death benefit which is also recorded as income from bank owned life insurance. The Company is exposed to credit risk to the extent an insurance company is unable to fulfill its financial obligations under a policy. Intangible Assets Intangible assets consist of a core deposit intangible asset arising from the acquisition of the Bank of Fincastle which is amortized on an accelerated method over its estima ted useful life of ten 2021. Goodwill and Other Intangible Assets Goodwill arises from business combinations and is determined as the excess fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not June 30 Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from 6 to 10 years. Derivative Financial Instruments The Company recognizes derivative financial instruments at fair value as either an other asset or other liability in its Consolidated Balance Sheets. The Company’s derivative financial instruments are comprised of interest rate swaps that qualify and are designated as cash flow hedges on the Company’s junior subordinated debt. Gains or losses on the Company’s cash flow hedges are reported as a component of other comprehensive income, net of deferred income taxes, and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. The Company’s derivative financial instruments are described more fully in Note 24. Stock Based Compensation Compensation cost is recognized for restricted stock units and other stock awards issued to employees and directors based on the fair value of the awards at the date of grant. The market price of the Company’s common stock at the date of grant is used to estimate the fair value of restricted stock units and other stock awards. Retirement Plans Employee 401 Transfers of Financial Assets Transfers of financial assets, including loan participations, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when ( 1 2 3 not Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not not When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not not not 50 no December 31, 2021 2020 Wealth Management Department Securities and other property held by the wealth management department in a fiduciary or agency capacity are not not Earnings Per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may 14 Advertising Costs The Company follows the policy of charging the production costs of advertising to expense as incurred. Total advertising expense incurred for 2021 2020 Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities and changes in fair values of cash flow hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. 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 reasonably estimated. Management does not Business Combination On July 1, 2021, September 30, 2021, the fixed assets for an amount equal to SmartBank’s book value. Additional information about these acquisitions is presented in Note 25. Adoption of New Accounting Standards In December 2019, No. 2019 12, 740 2019 12 removing specific exceptions to general principles in Topic 740 make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. ASU 2019 12 January 1, 2021. not In January 2020, No. 2020 01, 321 323 815 321, 323, 815” 2020 01 consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016 01 value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. ASU 2020 01 January 1, 2021. not In October 2020, No. 2020 08, 310 20, 2020 08 310 20 35 33 period. ASU 2020 08 January 1, 2021. not In December 2020, 2021 541 first 19 information about the impact of the COVID- 19 Recent Accounting Pronouncements In June 2016, No. 2016 13, 326 2016 13 2016 13 326, 2019 04, 2019 05, 2019 10, 2019 11, 2020 02, 2020 03. not December 15, 2022. 2016 13 may Effective November 25, 2019, 119. 119 326, 1 2 f a systematic methodology; ( 3 4 In March 2020, No. 2020 04, 848 2020 04 March 12, 2020 December 31, 2022. January 2021, No. 2021 01 848 2021 01 848 848 may 2021 01 March 12, 2020, January 7, 2021, may 2021 01 March 12, 2020, March 12, 2020. December 31, 2022. not 2020 04 |
Note 2 - Securities
Note 2 - Securities | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2. The Company invests in U.S. Treasury securities, U.S. agency and mortgage-backed securities, obligations of states and political subdivisions, and corporate debt securities. Amortized costs and fair values of securities at December 31, 2021 2020 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. Treasury securities $ 39,871 $ 37 $ (250 ) $ 39,658 U.S. agency and mortgage-backed securities 177,131 1,085 (1,837 ) 176,379 Obligations of states and political subdivisions 71,037 910 (509 ) 71,438 Corporate debt securities 2,019 1 — 2,020 Total securities available for sale $ 290,058 $ 2,033 $ (2,596 ) $ 289,495 Securities held to maturity: U.S. agency and mortgage-backed securities $ 26,392 $ 124 $ (53 ) $ 26,463 Obligations of states and political subdivisions 7,049 118 (13 ) 7,154 Total securities held to maturity $ 33,441 $ 242 $ (66 ) $ 33,617 Total securities $ 323,499 $ 2,275 $ (2,662 ) $ 323,112 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. agency and mortgage-backed securities $ 98,848 $ 2,830 $ (80 ) $ 101,598 Obligations of states and political subdivisions 37,507 1,122 (2 ) 38,627 Total securities available for sale $ 136,355 $ 3,952 $ (82 ) $ 140,225 Securities held to maturity: U.S. agency and mortgage-backed securities $ 9,588 $ 264 $ — $ 9,852 Obligations of states and political subdivisions 3,146 140 — 3,286 Corporate debt securities 1,500 105 — 1,605 Total securities held to maturity $ 14,234 $ 509 $ — $ 14,743 Total securities $ 150,589 $ 4,461 $ (82 ) $ 154,968 At December 31, 2021 2020 2021 Less than 12 months 12 months or more Total Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Securities available for sale: U.S. Treasury securities $ 29,656 $ (250 ) $ — $ — $ 29,656 $ (250 ) U.S. agency and mortgage-backed securities 109,950 (1,335 ) 14,749 (502 ) 124,699 (1,837 ) Obligations of states and political subdivisions 34,611 (500 ) 1,009 (9 ) 35,620 (509 ) Total securities available for sale $ 174,217 $ (2,085 ) $ 15,758 $ (511 ) $ 189,975 $ (2,596 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 5,411 $ (53 ) $ — $ — $ 5,411 $ (53 ) Obligations of states and political subdivisions 999 (13 ) — — 999 (13 ) Total securities held to maturity $ 6,410 $ (66 ) $ — $ — $ 6,410 $ (66 ) Total securities $ 180,627 $ (2,151 ) $ 15,758 $ (511 ) $ 196,385 $ (2,662 ) 2020 Less than 12 months 12 months or more Total Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 17,367 $ (80 ) $ — $ — $ 17,367 $ (80 ) Obligations of states and political subdivisions 1,020 (2 ) — — 1,020 (2 ) Total securities available for sale $ 18,387 $ (82 ) $ — $ — $ 18,387 $ (82 ) The tables above provide information about securities that have been in an unrealized loss position for less than twelve twelve 1 2 not 3 not not not At December 31, 2021 six eight as 5.2 years December 31, 2021 December 31, 2020 seven one December 31, 2020 December 31, 2020 December 31, 2021 not The amortized cost and fair value of securities at December 31, 2021 may Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 765 $ 766 $ 2,410 $ 2,412 Due after one year through five years 37,128 37,119 2,332 2,415 Due after five years through ten years 65,837 66,087 6,288 6,362 Due after ten years 186,328 185,523 22,411 22,428 $ 290,058 $ 289,495 $ 33,441 $ 33,617 Proceeds from maturities, calls, principal payments, and sales of secur ities available for sale during 2021 and 2020 were $54.6 million and $34.1 million, respectively. Gross gains of $37 thousand and $40 thousand were realized on calls and sales during 2021 and 2020 , respectively. The Company did not 2021 or 2020 . Proceeds from maturities, calls, and principal payments of securities held to maturity during 2021 2020 e $4.7 million and $3.3 million, respectively. There were no sales of securities from the held to maturity portfolio for the years ended December 31, 2021 or 2020 . The Company did not 2021 or 2020 . Securities having a fair value of $83.8 million and $66.5 million at December 31, 2021 2020 Federal Home Loan Bank, Federal Reserve Bank, and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not December 31, 2021 The composition of restricted securities at December 31, 2021 2020 2021 2020 Federal Home Loan Bank stock $ 701 $ 818 Federal Reserve Bank stock 980 980 Community Bankers’ Bank stock 132 77 $ 1,813 $ 1,875 The Company also holds limited partnership investments in Small Business Investment Companies (SBICs), which are included in other assets in the Consolidated Balance Sheets. The limited partnership investments are measured as equity investments without readily determinable fair values at their cost, less any impairment. The amounts included in other assets for the limited partnership investments were $504 thousand and $529 thousand at December 31, 2021 2020 , respectively. |
Note 3 - Loans
Note 3 - Loans | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables, Excluding Allowance for Credit Losses [Text Block] | Note 3. Loans at December 31, 2021 2020 2021 2020 Real estate loans: Construction and land development $ 55,721 $ 27,328 Secured by 1-4 family residential 291,990 235,814 Other real estate 364,921 246,883 Commercial and industrial loans 99,805 109,838 Consumer and other loans 12,681 10,051 Total loans $ 825,118 $ 629,914 Allowance for loan losses (5,710 ) (7,485 ) Loans, net $ 819,408 $ 622,429 Net deferred loan fees included in the above loan categories were $871 thousand a December 31, 2021 2020 December 31, 2021 2020 The following tables provide a summary of loan classes and an aging of past due loans as of December 31, 2021 2020 December 31, 2021 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Non-Accrual Loans 90 Days or More Past Due and Accruing Real estate loans: Construction and land development $ — $ 115 $ — $ 115 $ 55,606 $ 55,721 $ — $ — 1-4 family residential 1,293 100 372 1,765 290,225 291,990 766 — Other real estate loans 186 — — 186 364,735 364,921 29 — Commercial and industrial 1,474 — — 1,474 98,331 99,805 1,509 — Consumer and other loans 56 11 — 67 12,614 12,681 — — Total $ 3,009 $ 226 $ 372 $ 3,607 $ 821,511 $ 825,118 $ 2,304 $ — December 31, 2020 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Non-Accrual Loans 90 Days or More Past Due and Accruing Real estate loans: Construction and land development $ 47 $ 20 $ — $ 67 $ 27,261 $ 27,328 $ 276 $ — 1-4 family residential 657 125 324 1,106 234,708 235,814 449 298 Other real estate loans 0 131 133 264 246,619 246,883 4,441 — Commercial and industrial 104 0 — 104 109,734 109,838 1,548 — Consumer and other loans 16 21 4 41 10,010 10,051 — 4 Total $ 824 $ 297 $ 461 $ 1,582 $ 628,332 $ 629,914 $ 6,714 $ 302 Credit Quality Indicators As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans. The Company utilizes a risk grading matrix to assign a rating to each of its loans. The loan ratings are summarized into the following categories: pass, special mention, substandard, doubtful, and loss. Pass rated loans include all risk rated credits other than those included in special mention, substandard, or doubtful. Loans classified as loss are charged-off. Loan officers assign risk grades to loans at origination and as renewals arise. The Bank’s Credit Administration department reviews risk grades for accuracy on a quarterly basis and as credit issues arise. In addition, a certain amount of loans are reviewed each year through the Company’s internal and external loan review process. A description of the general characteristics of the loan grading categories is as follows: Pass – Special Mention – may Substandard – not Doubtful – Loss – not The following tables provide an analysis of the credit risk profile of each loan class as of December 31, 2021 2020 December 31, 2021 Pass Special Mention Substandard Doubtful Total Real estate loans: Construction and land development $ 55,721 $ — $ — $ — $ 55,721 Secured by 1-4 family residential 290,909 — 1,081 — 291,990 Other real estate loans 364,892 — 29 — 364,921 Commercial and industrial 97,215 1,081 1,509 — 99,805 Consumer and other loans 12,681 — — — 12,681 Total $ 821,418 $ 1,081 $ 2,619 $ — $ 825,118 December 31, 2020 Pass Special Mention Substandard Doubtful Total Real estate loans: Construction and land development $ 26,896 $ — $ 432 $ — $ 27,328 Secured by 1-4 family residential 235,035 — 779 — 235,814 Other real estate loans 242,441 — 4,442 — 246,883 Commercial and industrial 107,383 — 2,455 — 109,838 Consumer and other loans 10,051 — — — 10,051 Total $ 621,806 $ — $ 8,108 $ — $ 629,914 Loans acquired in business combinations are recorded in the Consolidated Balance Sheets at fair value at the acquisition date under the acquisition method of accounting. The outstanding principal balance and the carrying amount at December 31, 2021 Acquired Loans- Purchased (Dollars in thousands) Performing Outstanding principal balance $ 216,706 Carrying amount Real estate loans: Construction and land development $ 26,348 Secured by 1-4 family residential 53,803 Other real estate loans 90,908 Commercial and industrial loans 36,968 Consumer and other loans 5,012 Total acquired loans $ 213,039 |
Note 4 - Allowance for Loan Los
Note 4 - Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Allowance for Credit Losses [Text Block] | Note 4. The following tables present, as of December 31, 2021 2020 December 31, 2021 Construction and Land Development Secure by 1-4 Family Residential Other Real Estate Commercial and Industrial Consumer and Other Loans Total Allowance for loan losses: Beginning Balance, December 31, 2020 $ 306 $ 1,022 $ 4,956 $ 784 $ 417 $ 7,485 Charge-offs — (15 ) (992 ) (6 ) (434 ) (1,447 ) Recoveries 6 65 3 7 241 322 Provision for (recovery of) loan losses 33 5 (737 ) (67 ) 116 (650 ) Ending Balance, December 31, 2021 $ 345 $ 1,077 $ 3,230 $ 718 $ 340 $ 5,710 Ending Balance: Individually evaluated for impairment — — — 55 — 55 Collectively evaluated for impairment 345 1,077 3,230 663 340 5,655 Loans: Ending Balance 55,721 291,990 364,921 99,805 12,681 825,118 Individually evaluated for impairment — 765 30 1,509 — 2,304 Collectively evaluated for impairment 55,721 291,225 364,891 98,296 12,681 822,814 December 31, 2020 Construction and Land Development Secured by 1-4 Family Residential Other Real Estate Commercial and Industrial Consumer and Other Loans Total Allowance for loan losses: Beginning Balance, December 31, 2019 $ 464 $ 776 $ 2,296 $ 562 $ 836 $ 4,934 Charge-offs — — — (69 ) (715 ) (784 ) Recoveries 2 8 2 18 305 335 Provision for (recovery of) loan losses (160 ) 238 2,658 273 (9 ) 3,000 Ending Balance, December 31, 2020 $ 306 $ 1,022 $ 4,956 $ 784 $ 417 $ 7,485 Ending Balance: Individually evaluated for impairment — — 2,065 158 — 2,223 Collectively evaluated for impairment 306 1,022 2,891 626 417 5,262 Loans: Ending Balance 27,328 235,814 246,883 109,838 10,051 629,914 Individually evaluated for impairment 276 449 4,441 1,548 — 6,714 Collectively evaluated for impairment 27,052 235,365 242,442 108,290 10,051 623,200 Impaired loans and the related allowance at December 31, 2021 2020 December 31, 2021 Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Real estate loans: Construction and land development $ — $ — $ — $ — $ — $ 91 $ — Secured by 1-4 family 889 766 — 766 — 429 9 Other real estate loans 40 29 — 29 — 2,384 — Commercial and industrial 1,673 — 1,509 1,509 55 1,613 — Total $ 2,602 $ 795 $ 1,509 $ 2,304 $ 55 $ 4,517 $ 9 December 31, 2020 Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Real estate loans: Construction and land development $ 325 $ 276 $ — $ 276 $ — $ 344 $ — Secured by 1-4 family 568 449 — 449 — 517 1 Other real estate loans 4,492 171 4,270 4,441 2,065 2,623 109 Commercial and industrial 1,582 — 1,548 1,548 158 393 77 Total $ 6,967 $ 896 $ 5,818 $ 6,714 $ 2,223 $ 3,877 $ 187 The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans. Only loan classes with balances are included in the tables above. As of December 31, 2021 $1.6 million. December 31, 2021 none g assets. There were $6.0 million in TDRs a December 31, 2020 none may . There were no loans modified as TDRs during the year ended December 31, 2021 . The TDRs described above increased the specific reserve component of the allowance for loan losses by $55 thousand at December 31, 2021 . In response to the COVID- 19 first 2020, 90 December 31, 2021 not During the fourth 2020, 19 December 31, 2021 d $11.5 million. not For the years ended December 31, 2021 2020 there were no TDRs that subsequently defaulted within twelve 90 twelve There were no non-accrual loans excluded from impaired loan disclosure at December 31, 2021 December 31, 2020 nt of tho December 31, 2021 2020 |
Note 5 - Other Real Estate Owne
Note 5 - Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Real Estate Owned [Text Block] | Note 5. Changes in the balance for OREO during the years en ded December 31, 2021 and 2020 ar 2021 2020 Balance at the beginning of year, gross $ — $ — Transfers in 130 — Acquired in merger 2,137 — Sales proceeds (288 ) — Gain on disposition 8 — Balance at the end of year, gross $ 1,987 $ — Less: valuation allowance (139 ) — Balance at the end of year, net $ 1,848 $ — There were no residential real estate properties included in the ending OREO balances a t December 31, 2021 and 2020 . T not December 31, 2021. not , were $34 thousand fo d December 31, 2021 . T not ended December 31, 2020 . |
Note 6 - Premises and Equipment
Note 6 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 6. Premises and equipment are summarized as follows at December 31, 2021 2020 2021 2020 Land $ 5,486 $ 4,717 Buildings and leasehold improvements 22,158 19,816 Furniture and equipment 8,814 7,550 Construction in process — 16 $ 36,458 $ 32,099 Less accumulated depreciation 14,055 12,780 $ 22,403 $ 19,319 Depreciation expense included in operating expenses for 2021 2020 |
Note 7 - Deposits
Note 7 - Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Deposit Liabilities Disclosures [Text Block] | Note 7. The aggregate amount of time deposits, in denominations of $250 December 31, 2021 2020 The Bank obtains certain deposits through the efforts of third December 31, 2021 2020 At December 31, 2021 2022 $ 87,845 2023 24,551 2024 11,599 2025 11,827 2026 9,744 Thereafter — $ 145,566 |
Note 8 - Other Borrowings
Note 8 - Other Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Other Borrowings [Text Block] | Note 8. The Company had an unsecured line of credit totaling $5.0 million with a non-affiliated bank at December 31, 2021 . There were no borrowings outstanding on the line of credit at December 31, 2021 . The interest rate on the line of credit floats at Wall Street Journal Prime Rate plus 0.25%, with a floor of 3.50%, and matures on March 25, 2026. The Bank had unused lines of credit totaling $240.4 million and $237.7 million available with non-affiliated banks at December 31, 2021 2020 p to 19% o December 31, 2021 December 31, 2021 2020 not December 31, 2021 2020 |
Note 9 - Subordinated Debt
Note 9 - Subordinated Debt | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Subordinated Borrowings Disclosure [Text Block] | Note 9. On October 30, 2015, 2025 December 31, 2021 October 1, 2025. January 1, 2022. On June 29, 2020, 2030 July 1, 2025, three December 31, 2021 2020 July 1, 2030. may July 1, 2025 may not not not |
Note 10 - Junior Subordinated D
Note 10 - Junior Subordinated Debt | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 10. On June 8, 2004, June 17, 2004, December 31, 2021 2020 was 2.82% a June 17, 2034, September 17, 2009. On July 24, 2006, July 31, 2006, December 31, 2021 2020 October 1, 2036, October 1, 2011. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 11. The Company is subject to U.S. federal and Virginia income tax as well as bank franchise tax in the state of Virginia. With few exceptions, the Company is no 2017. Net deferred tax assets consisted of the following components at December 31, 2021 2020 2021 2020 Deferred Tax Assets Allowance for loan losses $ 1,199 $ 1,572 Acquisition accounting adjustments, net 822 — Post-retirement benefits 156 101 Core deposit intangible 309 381 Unvested stock-based compensation 45 31 Reserve for letter of credit losses 66 — Limited partnership investments 8 8 Lease liability 60 72 Housing tax credit 24 — Unrealized loss on securities available for sale 118 — NOL carryover - acquired from Fincastle 1,548 — Loan origination fees, net 183 328 $ 4,538 $ 2,493 Deferred Tax Liabilities Depreciation $ 750 $ 663 Right of use asset 61 73 Housing equity fund 12 — Unrealized gains on securities available for sale — 813 Other real estate owned 158 — Cash flow hedges 198 91 $ 1,179 $ 1,640 Net deferred tax assets $ 3,359 $ 853 The income tax expense for the years ended December 31, 2021 2020 2021 2020 Current tax expense $ 4,268 $ 2,972 Deferred tax benefit (1,682 ) (923 ) $ 2,586 $ 2,049 The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2021 2020 2021 2020 Computed tax expense at statutory federal rate $ 2,718 $ 2,290 Increase in income taxes resulting from: Merger expenses 165 — Other 28 10 Decrease in income taxes resulting from: Tax-exempt interest and dividend income (214 ) (153 ) Income from bank owned life insurance (111 ) (98 ) $ 2,586 $ 2,049 |
Note 12 - Funds Restrictions an
Note 12 - Funds Restrictions and Reserve Balance | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Funds Restrictions and Reserve Balance [Text Block] | Note 12. Transfers of funds from the banking subsidiary to the parent company in the form of loans, advances, and cash dividends are restricted by federal and state regulatory authorities. At December 31, 2021 , totaled $13.4 million. The amount of unrestricted funds is generally determined by subtracting the total dividend payments of the Bank from the Bank’s net income for that year, combined with the Bank’s retained net income for the preceding two The Bank is typically required to maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. The Federal Reserve adopted a rule in March 2020 December 31, 2021 or December 31, 2020 |
Note 13 - Benefit Plans
Note 13 - Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note 13. 401 The Company maintains a 401 may first one fifty two six one thousand nineteen two December 31, 2021 2020 Supplemental Executive Retirement Plans On March 15, 2019, three December 31, 2021 2020 |
Note 14 - Earnings Per Common S
Note 14 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 14. Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2021 2020 2021 2020 (Numerator): Net income $ 10,359 $ 8,858 (Denominator): Weighted average shares outstanding – basic 5,550,589 4,878,139 Potentially dilutive common shares – restricted stock units 8,492 2,127 Weighted average shares outstanding – diluted 5,559,081 4,880,266 Income per common share Basic $ 1.87 $ 1.82 Diluted $ 1.86 $ 1.82 |
Note 15 - Commitments and Unfun
Note 15 - Commitments and Unfunded Credits | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 15. The Company, through its banking subsidiary, is a party to credit related financial instruments with risk not At December 31, 2021 2020 2021 2020 Commitments to extend credit and unfunded commitments under lines of credit $ 161,428 $ 114,892 Stand-by letters of credit 18,904 10,675 Commitments to extend credit are agreements to lend to a customer as long as there is no may may not Unfunded commitments under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are collateralized as deemed necessary and may may not Commercial and standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third one At December 31, 2021 had $4.6 milli no December 31, 2021. not The Bank has cash accounts in other commercial banks. The amount on deposit at these banks at December 31, 2021 |
Note 16 - Transactions with Rel
Note 16 - Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 16. During the year, executive officers and directors (and companies controlled by them) were customers of and had transactions with the Company in the normal course of business. In management’s opinion, these transactions were made on substantially the same terms as those prevailing for other customers. At December 31, 2021 2020 d $1.6 million an 2021 tions were $9.2 million and total principal payments were $8.9 million. Included in principal additions is $9.2 million acquired from Fincastle. Deposits from related parties held by the Bank at December 31, 2021 2020 d to $17.3 million an |
Note 17 - Lease Commitments
Note 17 - Lease Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 17. Lease liabilities represent the Company's obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company's incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company's right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and, if applicable, prepaid rent, initial direct costs, and any incentives received from the lessor. Lease payments Lease payments for short-term leases are recognized as lease expense on a straight-line basis over the lease term, or for variable lease payments, in the period in which the obligation was incurred. Payments for leases with terms longer than twelve may not not Options to extend, residual value guarantees, and restrictions and covenants Of the Company's eight six None none The following table presents the operating lease right-of-use asset and operating lease liability as of December 31, 2021 2020 Classification in the Consolidated Balance Sheets 2021 2020 Operating lease right-of-use asset Other assets $ 290 $ 347 Operating lease liability Accrued interest payable and other liabilities 284 341 The following table presents the weighted average remaining operating lease term and the weighted average discount rate for operating leases as of December 31, 2021 2020 2021 2020 Weighted average remaining lease term, in years 2.8 3.2 Weighted average discount rate 2.65 % 1.72 % The following table presents the components of operating lease expense and supplemental cash flow information for the years ended December 31, 2021 2020 2021 2020 Lease Expense Operating lease expense $ 154 $ 135 Short-term lease expense 14 2 Total lease expense (1) $ 168 $ 137 Cash paid for amounts included in lease liability $ 156 $ 138 ( 1 Included in occupancy expense in the Company's consolidated statements of income. The following table presents a maturity schedule of undiscounted cash flows that contribute to the operating lease liability as of December 31, 2021 Twelve months ending December 31, 2022 $ 144 Twelve months ending December 31, 2023 72 Twelve months ending December 31, 2024 46 Twelve months ending December 31, 2025 27 Twelve months ending December 31, 2026 — Total undiscounted cash flows $ 289 Less: discount (5 ) Operating lease liability $ 284 The contracts in which the Company is lessee are with parties external to the Company and not |
Note 18 - Dividend Reinvestment
Note 18 - Dividend Reinvestment Plan | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Dividend Reinvestment Plan [Text Block] | Note 18. The Company has in effect a Dividend Reinvestment Plan (DRIP) which provides an automatic conversion of dividends into common stock for enrolled shareholders. The Company may The Compan y issued 7,861 and 9,449 December 31, 2021 2020 |
Note 19 - Fair Value Measuremen
Note 19 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 19. Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurement and Disclosures” topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no not may not The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not may Fair Value Hierarchy In accordance with this guidance, the Company groups its assets and liabilities generally measured at fair value in three Level 1 Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 Level 2 Valuation is based on inputs other than quoted prices included within Level 1 may not Level 3 Valuation is based on unobservable inputs that are supported by little or no 3 An instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a recurring basis in the financial statements: Securities available for sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1 not may 2 Derivative asset/liability - cash flow hedges Cash flow hedges are recorded at fair value on a recurring basis. The fair value of the Company's cash flow hedges is determined by a third 2 The following tables present the balances of assets measured at fair value on a recurring basis as of December 31, 2021 2020 Fair Value Measurements at December 31, 2021 Description Balance as of December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Securities available for sale U.S. Treasury securities $ 39,658 $ — $ 39,658 $ — U.S. agency and mortgage-backed securities 176,379 — 176,379 — Obligations of states and political subdivisions 71,438 — 71,438 — Corporate debt securities 2,020 — 2,020 — Total securities available for sale $ 289,495 $ — $ 289,495 $ — Derivatives - cash flow hedges 941 — 941 — Total assets $ 290,436 $ — $ 290,436 $ — Fair Value Measurements at December 31, 2020 Description Balance as of December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Securities available for sale U.S. agency and mortgage-backed securities $ 101,598 $ — $ 101,598 $ — Obligations of states and political subdivisions 38,627 — 38,627 — Total securities available for sale $ 140,225 $ — $ 140,225 $ — Derivatives - cash flow hedges 431 — 431 — Total assets $ 140,656 $ — $ 140,656 $ — Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Loans held for sale Loans held for sale are carried at the lower of cost or market value. These loans currently consist of one four not 2 December 31, 2021 and 2020 . Impaired Loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not may 2 twelve one not 3 one not 3 The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2021 2020 Fair Value Measurements at December 31, 2021 Description Balance as of December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans, net $ 1,454 $ — $ — $ 1,454 Fair Value Measurements at December 31, 2020 Description Balance as of December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs(Level 2) Significant Unobservable Inputs (Level 3) Impaired loans, net $ 3,595 $ — $ — $ 3,595 Quantitative information about Level 3 Fair Value Measurements for December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (1) Impaired loans, net 1,454 Present value of cash flows Discount rate 6.50 % Quantitative information about Level 3 Fair Value Measurements for December 31, 2020 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (1) Impaired loans, net $ 2,205 Property appraisals Selling cost 10.00 % ( 1 Unobservable inputs were weighted by the relative fair value of the instruments. Accounting guidance requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not December 31, 2021 2020 Fair Value Measurements at December 31, 2021 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Fair Value Financial Assets Cash and short-term investments $ 176,006 $ 176,006 $ — $ — $ 176,006 Securities available for sale 289,495 — 289,495 — 289,495 Securities held to maturity 33,441 — 33,617 — 33,617 Restricted securities 1,813 — 1,813 — 1,813 Loans held for sale — — — — — Loans, net 819,408 — — 827,248 827,248 Bank owned life insurance 24,294 — 24,294 — 24,294 Accrued interest receivable 3,903 — 3,903 — 3,903 Derivatives - cash flow hedges 941 — 941 — 941 Financial Liabilities Deposits $ 1,248,752 $ — $ 1,103,186 $ 145,101 $ 1,248,287 Subordinated debt 9,993 — — 8,932 8,932 Junior subordinated debt 9,279 — — 8,145 8,145 Accrued interest payable 152 — 152 — 152 Fair Value Measurements at December 31, 2020 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Fair Value Financial Assets Cash and short-term investments $ 127,297 $ 127,297 $ — $ — $ 127,297 Securities available for sale 140,225 — 140,225 — 140,225 Securities held to maturity 14,234 — 13,138 1,605 14,743 Restricted securities 1,875 — 1,875 — 1,875 Loans held for sale 245 — 245 — 245 Loans, net 622,429 — — 633,638 633,638 Bank owned life insurance 17,916 — 17,916 — 17,916 Accrued interest receivable 2,717 — 2,717 — 2,717 Derivatives - cash flow hedges 431 — 431 — 431 Financial Liabilities Deposits $ 842,461 $ — $ 742,264 $ 101,154 $ 843,418 Subordinated debt 9,991 — — 10,304 10,304 Junior subordinated debt 9,279 — — 10,364 10,364 Accrued interest payable 134 — 134 — 134 The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may |
Note 20 - Regulatory Matters
Note 20 - Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 20. The Bank is subject to various regulatory capital requirements administered by the 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 Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. Prompt corrective action provisions are not The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective January 1, 2015, January 1, 2019. 1 four January 1, 2016 January 1, 2019. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total (as defined in the regulations), Tier 1 1 1 December 31, 2021 December 31, 2020 As of December 31, 2021 no A comparison of the capital of the Bank at December 31, 2021 December 31, 2020 Actual Minimum Capital Requirement Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2021: Total Capital (to Risk-Weighted Assets) $ 125,934 14.76 % $ 68,237 8.00 % $ 85,296 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 120,224 14.09 % $ 51,178 6.00 % $ 68,237 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 120,224 14.09 % $ 38,383 4.50 % $ 55,442 6.50 % Tier 1 Capital (to Average Assets) $ 120,224 8.82 % $ 54,497 4.00 % $ 68,121 5.00 % December 31, 2020: Total Capital (to Risk-Weighted Assets) $ 91,243 15.82 % $ 46,129 8.00 % $ 57,661 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 84,032 14.57 % $ 34,597 6.00 % $ 46,129 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 84,032 14.57 % $ 25,948 4.50 % $ 37,480 6.50 % Tier 1 Capital (to Average Assets) $ 84,032 8.80 % $ 38,187 4.00 % $ 47,733 5.00 % In addition to the regulatory minimum risk-based capital amounts presented above, the Bank must maintain a capital conservation buffer as required by the Basel III final rules. Accordingly, the Bank was required to maintain a capital conservation buffer of 2.50% at December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 |
Note 21 - Accumulated Other Com
Note 21 - Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 21. Changes in each component of accumulated other comprehensive income (loss) were as follows (in thousands): Net Unrealized Gains (Losses) on Securities Change in Fair Value of Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2019 $ 724 $ — $ 724 Unrealized holding gains (net of tax, $ 629 2,366 — 2,366 Reclassification adjustment (net of tax, $ 8 (32 ) — (32 ) Change in fair value (net of tax, $ 91 — 340 340 Change during period 2,334 340 2,674 Balance at December 31, 2020 $ 3,058 $ 340 $ 3,398 Unrealized holding losses (net of tax, ($ 923 (3,474 ) — (3,474 ) Reclassification adjustment (net of tax, ($ 8 (29 ) — (29 ) Change in fair value (net of tax, $ 107 — 403 403 Change during period (3,503 ) 403 (3,100 ) Balance at December 31, 2021 $ (445 ) $ 743 $ 298 The following table presents information related to reclassifications from accumulated other comprehensive income (loss) for the years ended December 31, 2021 2020 Details About Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income For the year ended December 31, 2021 2020 Securities available for sale: Net securities gains reclassified into earnings $ (37 ) $ (40 ) Net gains on securities available for sale Related income tax expense 8 8 Income tax expense Total reclassifications $ (29 ) $ (32 ) Net of tax |
Note 22 - Stock Compensation Pl
Note 22 - Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 22. On May 13, 2014, 2014 Stock Awards Whenever the Company deems it appropriate to grant a stock award, the recipient receives a specified number of unrestricted shares of employer stock. Stock awards may may During 2021 d $127 thousand a December 31, 2021 2020 Restricted Stock Units Restricted stock units are an award of units that correspond in number and value to a specified number of shares of employer stock which the recipient receives according to a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with the employer for a particular length of time. Each restricted stock unit that vests entitles the recipient to receive one On February 23, 2021 , 13,094 re two one five July 1, 2021, two February 23 October 13, 2021, five three five not A summary of the activity for the Company’s restricted stock units for the period indicated is presented in the following table: 2021 Shares Weighted Average Grant Date Fair Value Unvested, January 1, 2021 15,858 $ 20.40 Granted 23,094 19.39 Vested (8,073 ) 19.84 Forfeited (98 ) 18.41 Unvested, December 31, 2021 30,781 $ 19.79 At December 31, 2021 2024. December 31, 2021 2020 |
Note 23 - Revenue Recognition
Note 23 - Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 23. Most revenue associated with financial instruments, including interest income, loan origination fees, and credit card fees, is outside the scope of ASC topic 606. 606 Service charges on deposit accounts Service charges on deposit accounts consist of monthly service fees, overdraft and nonsufficient funds fees, and other deposit account related fees. The Company's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers' accounts. Overdraft and nonsufficient funds fees and other deposit account related fees are transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. ATM and check card fees ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. ATM fees are transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. Check card fees are primarily comprised of interchange fee income. Interchange fees are earned whenever the Company's debit cards are processed through card payment networks, such as Visa. The Company's performance obligation for interchange fee income is largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. In compliance with Topic 606, Wealth management fees Wealth management fees are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company's performance obligation is generally satisfied over time and the resulting fees are primarily recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month-end through a direct charge to customers' accounts. Estate management fees are based upon the size of the estate. Revenue for estate management fees are recorded periodically, according to a fee schedule, and are based on the services that have been provided. Brokered mortgage fees Brokered mortgage fees are comprised of loan fee income earned from generating loans in the secondary market. Brokered mortgage fee income is recognized at loan closing. Fees for other customer services Fees for other customer services include check ordering charges, merchant services income, safe deposit box rental fees, and other service charges. Check ordering charges are transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. Merchant services income mainly represent fees charged to merchants to process their debit and credit card transactions. The Company's performance obligation for merchant services income is largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, December 31, 2021 2020 2021 2020 Noninterest Income Service charges on deposit accounts $ 2,061 $ 2,028 ATM and check card fees 2,930 2,314 Wealth management fees 2,712 2,208 Brokered mortgage fees 539 356 Fees for other customer services 777 587 Noninterest income (in-scope of Topic 606) $ 9,019 $ 7,493 Noninterest income (out-of-scope of Topic 606) 1,168 761 Total noninterest income $ 10,187 $ 8,254 |
Note 24 - Derivative Financial
Note 24 - Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 24. On April 21, 2020, two June 17, 2034, March 17, 2020. June 17, 2034. three October 1, 2036, April 1, 2020. October 1, 2036. three The Company entered into interest rate swaps to reduce interest rate risk and to manage interest expense. By entering into these agreements, the Company converted variable rate debt into fixed rate debt. Alternatively, the Company may 1 no December 31, 2021 June 2034 October 2036. not not All interest rate swaps were entered into with counterparties that met the Company's credit standards and the agreements contain collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in these derivative contracts is not Unrealized gains or losses recorded in other comprehensive income related to cash flow hedges are reclassified into earnings in the same period(s) during which the hedged interest payments affect earnings. When a designated hedging instrument is terminated and the hedged interest payments remain probable of occurring, any remaining unrecognized gain or loss in other comprehensive income is reclassified into earnings in the period(s) during which the forecasted interest payments affect earnings. Amounts reclassified into earnings and interest receivable or payable under designated interest rate swaps are reported in interest expense. The Company does not twelve The following table summarizes key elements of the Company's derivative instruments at December 31, 2021 2020 2021 Notional Amount Assets Liabilities Collateral Pledged(1) Cash Flow Hedges Interest rate swap contracts $ 9,000 $ 941 $ — $ — 2020 Notional Amount Assets Liabilities Collateral Pledged(1) Cash Flow Hedges Interest rate swap contracts $ 9,000 $ 431 $ — $ — ( 1 Collateral pledged may |
Note 25 - Acquisitions
Note 25 - Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 25. Acquisition of the Bank of Fincastle On July 1, 2021, transaction, Fincastle was merged with and into First Bank. At the time of closing of the acquisition, The Bank of Fincastle had six converted on October 16, 2021. June 30, 2021, December 31, 2021, first second 2022. Acquisition of SmartBank Loan Portfolio On September 30, 2021, not December 31, 2021. December 31, 2021 operates a loan production office in the location of the former SmartBank branch. First Bank’s assumption of the lease and acquisition of the remaining branch assets was completed in the fourth 2021. 2021. The acquisitions were accounted for as business combinations under ASC 805, may may not one The following table presents the total consideration paid by the Company in connection with the acquisition of Fincastle and the SmartBank loan portfolio, the fair values of the assets acquired and liabilities assumed, and the resulting goodwill. Amounts for the Bank of Fincastle acquisition are as of July 1, 2021. SmartBank are as of September 30, 2021. (Dollars in thousands) Bank of Fincastle SmartBank Total Purchase price: Cash paid $ 6,752 $ 83,745 $ 90,497 Common stock issued 27,069 - 27,069 Total purchase price $ 33,821 $ 83,745 $ 117,566 Identifiable assets acquired: Cash and due from banks $ 46,158 $ - $ 46,158 Federal funds sold 120 - 120 Securities, AFS, at fair value 12,112 - 12,112 Restricted securities 183 - 183 Loans, net of ALLL 194,617 81,637 276,254 Bank premises and equipment 3,471 172 3,643 Accrued interest receivable 1,588 143 1,731 OREO 2,137 - 2,137 BOLI 5,852 - 5,852 Other assets 4,259 - 4,259 Total identifiable assets acquired $ 270,497 $ 81,952 $ 352,449 Identifiable liabilities assumed: Demand deposits & savings accounts $ 184,535 $ - $ 184,535 Time deposits 52,246 - 52,246 Accrued expenses and other liabilities 1,132 - 1,132 Total identifiable liabilities assumed $ 237,913 $ - $ 237,913 Net identifiable assets acquired at fair value $ 32,584 $ 81,952 $ 114,536 Goodwill resulting from acquisitions $ 1,237 $ 1,793 $ 3,030 The following table presents certain unaudited pro forma information as if the acquisition had taken place on January 1, 2020. the acquisition method, including certain fair value adjustments, this pro forma information is not January 1, 2020. December 31, 2021 December 31, 2020 December 31, 2021 2020 no Additionally, the Company expects to achieve further operational cost savings and other efficiencies as a result of the acquisition which are not Unaudited Pro Forma Unaudited Pro Forma Twelve Months Ended Twelve Months Ended (Dollars in thousands, except per share amounts) December 31, 2021 December 31, 2020 Total revenues (net interest income plus noninterest income) $ 42,116 $ 43,234 Net income $ 9,826 $ 7,660 Net income per share, basic $ 1.77 $ 1.57 Net income per share, diluted $ 1.77 $ 1.57 The revenue and earnings amounts specific to SmartBank since the acquisition date that are included in the consolidated results for 2021 2020 not December 31, 2021. first second 2022. |
Note 26 - Subsequent Events
Note 26 - Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 26. On October 30, 2015, 2025 d a fixed i nter October 1, 2025. January 1, 2022. |
Note 27 - Parent Company Only F
Note 27 - Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 27. FIRST NATIONAL CORPORATION (Parent Company Only) Balance Sheets December 31, 2021 2020 (in thousands) 2021 2020 Assets Cash $ 7,303 $ 16,440 Investment in subsidiaries, at cost, plus undistributed net income 122,964 87,109 Other assets 6,256 740 Total assets $ 136,523 $ 104,289 Liabilities and Shareholders’ Equity Subordinated debt $ 9,993 $ 9,991 Junior subordinated debt 9,279 9,279 Other liabilities 212 103 Total liabilities $ 19,484 $ 19,373 Preferred stock $ — $ — Common stock 7,785 6,075 Surplus 31,966 6,151 Retained earnings 76,990 69,292 Accumulated other comprehensive income, net 298 3,398 Total shareholders’ equity $ 117,039 $ 84,916 Total liabilities and shareholders’ equity $ 136,523 $ 104,289 FIRST NATIONAL CORPORATION (Parent Company Only) Statements of Income Years Ended December 31, 2021 2020 (in thousands) 2021 2020 Income Dividends from subsidiary $ 6,000 $ 6,600 Total income $ 6,000 $ 6,600 Expense Interest expense $ 889 $ 794 Supplies 56 3 Legal and professional fees 107 215 Data processing 29 29 Management fee-subsidiary 305 294 Other expense 104 80 Total expense $ 1,490 $ 1,415 Income before allocated tax benefits and undistributed income of subsidiary $ 4,510 $ 5,185 Allocated income tax benefit 312 297 Income before equity in undistributed income of subsidiary $ 4,822 $ 5,482 Equity in undistributed income of subsidiary 5,537 3,376 Net income $ 10,359 $ 8,858 FIRST NATIONAL CORPORATION (Parent Company Only) Statements of Cash Flows Years Ended December 31, 2021 2020 (in thousands) 2021 2020 Cash Flows from Operating Activities Net income $ 10,359 $ 8,858 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiary (5,537 ) (3,376 ) Stock-based compensation 354 290 Amortization of debt issuance costs 2 18 (Increase) decrease in other assets (5,020 ) 3 Increase in other liabilities 1 4 Net cash (used in) provided by operating activities $ 159 $ 5,797 Cash Flows from Investing Activities Net cash paid in acquisition of The Bank of Fincastle $ (6,752 ) $ — Net cash used in investing activities $ (6,752 ) $ — Cash Flows from Financing Activities Proceeds from subordinated debt, net of issuance costs $ — $ 4,990 Cash dividends paid on common stock, net of reinvestment (2,505 ) (2,007 ) Repurchase of common stock (39 ) (2,118 ) Net cash (used in) provided by financing activities $ (2,544 ) $ 865 (Decrease) increase in cash and cash equivalents $ (9,137 ) $ 6,662 Cash and Cash Equivalents Beginning 16,440 9,778 Ending $ 7,303 $ 16,440 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | First National Corporation (the Company) is the bank holding company of First Bank (the Bank), First National (VA) Statutory Trust II (Trust II), and First National (VA) Statutory Trust III (Trust III and, together with Trust II, the Trusts). The Trusts were formed for the purpose of issuing redeemable capital securities, commonly known as trust preferred securities and are not tes. Bank of Fincastle Services, Inc. owns an entity that provides mortgage services. T The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to accepted practices within the banking industry. |
Risks and Uncertainties [Policy Text Block] | Risks and Uncertainties The outbreak of COVID- 19 no 19 Congress, the President, and the Federal Reserve have taken several actions designed to cushion the economic fallout. Most notably, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law in March 2020 $2 2021 March 2021 $1.9 19. 19, may The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID- 19 not 19, Results of Operations The Company’s net interest income could decrease due to COVID- 19. 19 6 24 19 19 may not may no The Company’s net interest income could also decrease due to adverse economic conditions that may 19 The Company's noninterest income could decrease due to COVID- 19. 2020 may may may may The Company’s noninterest expense could increase due to COVID- 19. may At this time, the Company is unable to project the full extent or materiality of the foregoing impacts but recognizes the breadth of the economic impacts of COVID- 19 may Capital and Liquidity While the Company believes it has sufficient capital to withstand an extended economic recession brought about by COVID- 19, may March 2020, December 31, 202 0. June 2020, The Company maintains access to multiple sources of liquidity. While wholesale funding markets have remained open, interest rates for short term funding could become volatile. If funding costs would become elevated for an extended period of time, it may Processes, Controls and Business Continuity Plan The Company continues to operate under its Pandemic Continuity of Operations Plan that includes a remote working strategy. The Company has not No not 19. not Lending Operations and Accommodations to Borrowers In keeping with regulatory guidance to work with borrowers during this unprecedented situation, the Company offered a payment deferral program, primarily during the second third 2020, 90 December 31, 2021. August 2020, not During the fourth 2020, taled $11.5 million at December 31, 2021. The Bank actively participated as a lender in the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) to support local small businesses and non-profit organizations by providing forgivable loans. Loan fees received from the SBA are accreted by the Bank into income evenly over the life of the loans, net of loan origination costs, through interest and fees on loans. PPP loans totaled $12.5 million at December 31, 2021, second third 2022, first second 2026. The Bank recognized $2.0 million and $824 thousand of accretion on deferred PPP income, net of origination costs, through interest and fees on loans for the year ended December 31, 2021 2020, . The total amount of deferred PPP income, net of origination costs, that has not December 31, 2021. Asset Quality The economic impact of the pandemic had an unfavorable impact on the financial condition of certain Bank customers. The Bank entered into loan modification agreements in the fourth 2020 The magnitude of the potential decline in the Bank’s loan quality will likely depend on the length and extent that the Bank’s customers experience business interruptions from the pandemic. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements of First National Corporation include the accounts of all six |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that require the most subjective or complex judgments relate to fair value measurements, the allowance for loan losses and goodwill and other intangible asset. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the Shenandoah Valley, central regions of Virginia, and the Richmond and Roanoke market areas. The types of lending that the Company engages in are included in Note 3. not one |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company has defined cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-bearing deposits in banks.” |
Investment, Policy [Policy Text Block] | Securities Investments in debt securities with readily determinable fair values are classified as either held to maturity (HTM), available for sale (AFS), or trading based on management’s intent. Currently, all of the Company’s debt securities are classified as either AFS or HTM. Equity investments in the FHLB, the Federal Reserve Bank of Richmond, and Community Bankers Bank are separately classified as restricted securities and are carried at cost. AFS securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income, and HTM securities are carried at amortized cost. When an individual AFS security is sold, the Company releases the income tax effects associated with the AFS security from accumulated other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains or losses on the sale of securities are recorded on the trade date using the amortized cost of the specific security sold. Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either the Company ( 1 2 not not not no no For equity securities carried at cost, such as restricted securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. The Company regularly reviews each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity, and the likelihood that the Company would be required to sell the security before recovery. |
Financing Receivable, Held-for-sale [Policy Text Block] | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Company, through its banking subsidiary, requires a firm purchase commitment from a permanent investor before loans held for sale can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Bank enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 60 not The market value of rate lock commitments and best efforts contracts is not not no |
Financing Receivable [Policy Text Block] | Loans The Company, through its banking subsidiary, grants mortgage, commercial, and consumer loans to customers. The Bank segments its loan portfolio into real estate loans, commercial and industrial loans, and consumer and other loans. Real estate loans are further divided into the following classes: Construction and Land Development; 1 4 Real Estate Loans – Construction and Land Development one four Real Estate Loans – 1 4 Family one four first Real Estate Loans – Other Commercial and Industrial Loans: may Consumer and Other Loans A substantial portion of the loan portfolio is represented by residential and commercial loans secured by real estate throughout the Bank's market area. The ability of the Bank’s debtors to honor their contracts may Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances less the allowance for loan losses and any deferred fees or costs on originated loans. Interest income is accrued and credited to income based on the unpaid principal balance. Loan origination fees, net of certain origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest income includes amortization of purchase premiums and discounts, recognized evenly over the life of the loans. A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on non-accrual status when the collection of principal or interest is 90 90 may first may All interest accrued but not Any unsecured loan that is deemed uncollectible is charged-off in full. Any secured loan that is considered by management to be uncollectible is partially charged-off and carried at the fair value of the collateral less estimated selling costs. This charge-off policy applies to all loan segments. Loans Acquired in a Business Combination Acquired loans are classified as either (i) purchased credit-impaired (PCI) loans or (ii) purchased performing loans and are recorded at fair value on the date of acquisition. PCI loans are those for which there is evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the Company will not third 2021. Purchased performing loans are those for which there is no third 2021 |
Impaired Financing Receivable, Policy [Policy Text Block] | Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value (net of selling costs), and the probability of collecting scheduled principal and interest payments when due. Additionally, management generally evaluates substandard and doubtful loans greater than $250 thousand for impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not not |
Troubled Debt Restructuring [Policy Text Block] | Troubled Debt Restructurings (TDR) In situations where, for economic or legal reasons related to a borrower’s financial condition, management grants a concession to the borrower that it would not no may December 31, 2021 2020 |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines that the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. For further information about the Company’s loans and the allowance for loan losses, see Notes 3 4. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may The Company performs regular credit reviews of the loan portfolio to review credit quality and adherence to underwriting standards. The credit reviews consist of reviews by its internal credit administration department and reviews performed by an independent third one one The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may may • 1 4 • Real estate construction and land development loans carry risks that the project may not may not may, may may not may • Other real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may • Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may may • Consumer and other loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, if any. These loans are typically either unsecured or secured by rapidly depreciating assets such as automobiles. They are also likely to be immediately and adversely affected by job loss, divorce, illness, personal bankruptcy, or other changes in circumstances. Consumer and other loans also include purchased consumer loans which could have been originated outside of the Company's market area. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows, fair value of collateral less estimated costs to sell, or observable market price of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal is ordered if a current one not third may The general component covers loans that are not twelve may |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three forty three seven Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. |
Financing Receivable, Real Estate Acquired Through Foreclosure [Policy Text Block] | Other Real Estate Owned Other real estate owned (OREO) consists of properties obtained through a foreclosure proceeding or through an in-substance foreclosure in satisfaction of loans and properties originally acquired for branch operations or expansion but no may |
Bank Owned Life Insurance [Policy Text Block] | Bank-Owned Life Insurance The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as income from bank owned life insurance on the consolidated statements of income. In the event of the death of an insured individual under these policies, the Company receives a death benefit which is also recorded as income from bank owned life insurance. The Company is exposed to credit risk to the extent an insurance company is unable to fulfill its financial obligations under a policy. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets Intangible assets consist of a core deposit intangible asset arising from the acquisition of the Bank of Fincastle which is amortized on an accelerated method over its estima ted useful life of ten 2021. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Goodwill arises from business combinations and is determined as the excess fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not June 30 Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from 6 to 10 years. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company recognizes derivative financial instruments at fair value as either an other asset or other liability in its Consolidated Balance Sheets. The Company’s derivative financial instruments are comprised of interest rate swaps that qualify and are designated as cash flow hedges on the Company’s junior subordinated debt. Gains or losses on the Company’s cash flow hedges are reported as a component of other comprehensive income, net of deferred income taxes, and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. The Company’s derivative financial instruments are described more fully in Note 24. |
Share-based Payment Arrangement [Policy Text Block] | Stock Based Compensation Compensation cost is recognized for restricted stock units and other stock awards issued to employees and directors based on the fair value of the awards at the date of grant. The market price of the Company’s common stock at the date of grant is used to estimate the fair value of restricted stock units and other stock awards. |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | Retirement Plans Employee 401 |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Policy [Policy Text Block] | Transfers of Financial Assets Transfers of financial assets, including loan participations, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when ( 1 2 3 not |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not not When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not not not 50 no December 31, 2021 2020 |
Management and Investment Advisory Fees, Policy [Policy Text Block] | Wealth Management Department Securities and other property held by the wealth management department in a fiduciary or agency capacity are not not |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may 14 |
Advertising Cost [Policy Text Block] | Advertising Costs The Company follows the policy of charging the production costs of advertising to expense as incurred. Total advertising expense incurred for 2021 2020 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities and changes in fair values of cash flow hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. |
Commitments and Contingencies, Policy [Policy Text Block] | 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 reasonably estimated. Management does not |
Business Combinations Policy [Policy Text Block] | Business Combination On July 1, 2021, September 30, 2021, the fixed assets for an amount equal to SmartBank’s book value. Additional information about these acquisitions is presented in Note 25. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Standards In December 2019, No. 2019 12, 740 2019 12 removing specific exceptions to general principles in Topic 740 make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. ASU 2019 12 January 1, 2021. not In January 2020, No. 2020 01, 321 323 815 321, 323, 815” 2020 01 consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016 01 value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. ASU 2020 01 January 1, 2021. not In October 2020, No. 2020 08, 310 20, 2020 08 310 20 35 33 period. ASU 2020 08 January 1, 2021. not In December 2020, 2021 541 first 19 information about the impact of the COVID- 19 Recent Accounting Pronouncements In June 2016, No. 2016 13, 326 2016 13 2016 13 326, 2019 04, 2019 05, 2019 10, 2019 11, 2020 02, 2020 03. not December 15, 2022. 2016 13 may Effective November 25, 2019, 119. 119 326, 1 2 f a systematic methodology; ( 3 4 In March 2020, No. 2020 04, 848 2020 04 March 12, 2020 December 31, 2022. January 2021, No. 2021 01 848 2021 01 848 848 may 2021 01 March 12, 2020, January 7, 2021, may 2021 01 March 12, 2020, March 12, 2020. December 31, 2022. not 2020 04 |
Note 2 - Securities (Tables)
Note 2 - Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Available-for-sale and Held-to-maturity Reconciliation [Table Text Block] | 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. Treasury securities $ 39,871 $ 37 $ (250 ) $ 39,658 U.S. agency and mortgage-backed securities 177,131 1,085 (1,837 ) 176,379 Obligations of states and political subdivisions 71,037 910 (509 ) 71,438 Corporate debt securities 2,019 1 — 2,020 Total securities available for sale $ 290,058 $ 2,033 $ (2,596 ) $ 289,495 Securities held to maturity: U.S. agency and mortgage-backed securities $ 26,392 $ 124 $ (53 ) $ 26,463 Obligations of states and political subdivisions 7,049 118 (13 ) 7,154 Total securities held to maturity $ 33,441 $ 242 $ (66 ) $ 33,617 Total securities $ 323,499 $ 2,275 $ (2,662 ) $ 323,112 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. agency and mortgage-backed securities $ 98,848 $ 2,830 $ (80 ) $ 101,598 Obligations of states and political subdivisions 37,507 1,122 (2 ) 38,627 Total securities available for sale $ 136,355 $ 3,952 $ (82 ) $ 140,225 Securities held to maturity: U.S. agency and mortgage-backed securities $ 9,588 $ 264 $ — $ 9,852 Obligations of states and political subdivisions 3,146 140 — 3,286 Corporate debt securities 1,500 105 — 1,605 Total securities held to maturity $ 14,234 $ 509 $ — $ 14,743 Total securities $ 150,589 $ 4,461 $ (82 ) $ 154,968 |
Schedule of Temporary Impairment Losses, Investments [Table Text Block] | 2021 Less than 12 months 12 months or more Total Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Securities available for sale: U.S. Treasury securities $ 29,656 $ (250 ) $ — $ — $ 29,656 $ (250 ) U.S. agency and mortgage-backed securities 109,950 (1,335 ) 14,749 (502 ) 124,699 (1,837 ) Obligations of states and political subdivisions 34,611 (500 ) 1,009 (9 ) 35,620 (509 ) Total securities available for sale $ 174,217 $ (2,085 ) $ 15,758 $ (511 ) $ 189,975 $ (2,596 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 5,411 $ (53 ) $ — $ — $ 5,411 $ (53 ) Obligations of states and political subdivisions 999 (13 ) — — 999 (13 ) Total securities held to maturity $ 6,410 $ (66 ) $ — $ — $ 6,410 $ (66 ) Total securities $ 180,627 $ (2,151 ) $ 15,758 $ (511 ) $ 196,385 $ (2,662 ) 2020 Less than 12 months 12 months or more Total Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 17,367 $ (80 ) $ — $ — $ 17,367 $ (80 ) Obligations of states and political subdivisions 1,020 (2 ) — — 1,020 (2 ) Total securities available for sale $ 18,387 $ (82 ) $ — $ — $ 18,387 $ (82 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 765 $ 766 $ 2,410 $ 2,412 Due after one year through five years 37,128 37,119 2,332 2,415 Due after five years through ten years 65,837 66,087 6,288 6,362 Due after ten years 186,328 185,523 22,411 22,428 $ 290,058 $ 289,495 $ 33,441 $ 33,617 |
Marketable Securities [Table Text Block] | 2021 2020 Federal Home Loan Bank stock $ 701 $ 818 Federal Reserve Bank stock 980 980 Community Bankers’ Bank stock 132 77 $ 1,813 $ 1,875 |
Note 3 - Loans (Tables)
Note 3 - Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 2021 2020 Real estate loans: Construction and land development $ 55,721 $ 27,328 Secured by 1-4 family residential 291,990 235,814 Other real estate 364,921 246,883 Commercial and industrial loans 99,805 109,838 Consumer and other loans 12,681 10,051 Total loans $ 825,118 $ 629,914 Allowance for loan losses (5,710 ) (7,485 ) Loans, net $ 819,408 $ 622,429 |
Financing Receivable, Past Due [Table Text Block] | December 31, 2021 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Non-Accrual Loans 90 Days or More Past Due and Accruing Real estate loans: Construction and land development $ — $ 115 $ — $ 115 $ 55,606 $ 55,721 $ — $ — 1-4 family residential 1,293 100 372 1,765 290,225 291,990 766 — Other real estate loans 186 — — 186 364,735 364,921 29 — Commercial and industrial 1,474 — — 1,474 98,331 99,805 1,509 — Consumer and other loans 56 11 — 67 12,614 12,681 — — Total $ 3,009 $ 226 $ 372 $ 3,607 $ 821,511 $ 825,118 $ 2,304 $ — December 31, 2020 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Non-Accrual Loans 90 Days or More Past Due and Accruing Real estate loans: Construction and land development $ 47 $ 20 $ — $ 67 $ 27,261 $ 27,328 $ 276 $ — 1-4 family residential 657 125 324 1,106 234,708 235,814 449 298 Other real estate loans 0 131 133 264 246,619 246,883 4,441 — Commercial and industrial 104 0 — 104 109,734 109,838 1,548 — Consumer and other loans 16 21 4 41 10,010 10,051 — 4 Total $ 824 $ 297 $ 461 $ 1,582 $ 628,332 $ 629,914 $ 6,714 $ 302 |
Financing Receivable Credit Quality Indicators [Table Text Block] | December 31, 2021 Pass Special Mention Substandard Doubtful Total Real estate loans: Construction and land development $ 55,721 $ — $ — $ — $ 55,721 Secured by 1-4 family residential 290,909 — 1,081 — 291,990 Other real estate loans 364,892 — 29 — 364,921 Commercial and industrial 97,215 1,081 1,509 — 99,805 Consumer and other loans 12,681 — — — 12,681 Total $ 821,418 $ 1,081 $ 2,619 $ — $ 825,118 December 31, 2020 Pass Special Mention Substandard Doubtful Total Real estate loans: Construction and land development $ 26,896 $ — $ 432 $ — $ 27,328 Secured by 1-4 family residential 235,035 — 779 — 235,814 Other real estate loans 242,441 — 4,442 — 246,883 Commercial and industrial 107,383 — 2,455 — 109,838 Consumer and other loans 10,051 — — — 10,051 Total $ 621,806 $ — $ 8,108 $ — $ 629,914 |
Loans Acquired in Business Combination [Table Text Block] | Acquired Loans- Purchased (Dollars in thousands) Performing Outstanding principal balance $ 216,706 Carrying amount Real estate loans: Construction and land development $ 26,348 Secured by 1-4 family residential 53,803 Other real estate loans 90,908 Commercial and industrial loans 36,968 Consumer and other loans 5,012 Total acquired loans $ 213,039 |
Note 4 - Allowance for Loan L_2
Note 4 - Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | December 31, 2021 Construction and Land Development Secure by 1-4 Family Residential Other Real Estate Commercial and Industrial Consumer and Other Loans Total Allowance for loan losses: Beginning Balance, December 31, 2020 $ 306 $ 1,022 $ 4,956 $ 784 $ 417 $ 7,485 Charge-offs — (15 ) (992 ) (6 ) (434 ) (1,447 ) Recoveries 6 65 3 7 241 322 Provision for (recovery of) loan losses 33 5 (737 ) (67 ) 116 (650 ) Ending Balance, December 31, 2021 $ 345 $ 1,077 $ 3,230 $ 718 $ 340 $ 5,710 Ending Balance: Individually evaluated for impairment — — — 55 — 55 Collectively evaluated for impairment 345 1,077 3,230 663 340 5,655 Loans: Ending Balance 55,721 291,990 364,921 99,805 12,681 825,118 Individually evaluated for impairment — 765 30 1,509 — 2,304 Collectively evaluated for impairment 55,721 291,225 364,891 98,296 12,681 822,814 December 31, 2020 Construction and Land Development Secured by 1-4 Family Residential Other Real Estate Commercial and Industrial Consumer and Other Loans Total Allowance for loan losses: Beginning Balance, December 31, 2019 $ 464 $ 776 $ 2,296 $ 562 $ 836 $ 4,934 Charge-offs — — — (69 ) (715 ) (784 ) Recoveries 2 8 2 18 305 335 Provision for (recovery of) loan losses (160 ) 238 2,658 273 (9 ) 3,000 Ending Balance, December 31, 2020 $ 306 $ 1,022 $ 4,956 $ 784 $ 417 $ 7,485 Ending Balance: Individually evaluated for impairment — — 2,065 158 — 2,223 Collectively evaluated for impairment 306 1,022 2,891 626 417 5,262 Loans: Ending Balance 27,328 235,814 246,883 109,838 10,051 629,914 Individually evaluated for impairment 276 449 4,441 1,548 — 6,714 Collectively evaluated for impairment 27,052 235,365 242,442 108,290 10,051 623,200 |
Impaired Financing Receivables [Table Text Block] | December 31, 2021 Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Real estate loans: Construction and land development $ — $ — $ — $ — $ — $ 91 $ — Secured by 1-4 family 889 766 — 766 — 429 9 Other real estate loans 40 29 — 29 — 2,384 — Commercial and industrial 1,673 — 1,509 1,509 55 1,613 — Total $ 2,602 $ 795 $ 1,509 $ 2,304 $ 55 $ 4,517 $ 9 December 31, 2020 Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Real estate loans: Construction and land development $ 325 $ 276 $ — $ 276 $ — $ 344 $ — Secured by 1-4 family 568 449 — 449 — 517 1 Other real estate loans 4,492 171 4,270 4,441 2,065 2,623 109 Commercial and industrial 1,582 — 1,548 1,548 158 393 77 Total $ 6,967 $ 896 $ 5,818 $ 6,714 $ 2,223 $ 3,877 $ 187 |
Note 5 - Other Real Estate Ow_2
Note 5 - Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Other Real Estate, Roll Forward [Table Text Block] | 2021 2020 Balance at the beginning of year, gross $ — $ — Transfers in 130 — Acquired in merger 2,137 — Sales proceeds (288 ) — Gain on disposition 8 — Balance at the end of year, gross $ 1,987 $ — Less: valuation allowance (139 ) — Balance at the end of year, net $ 1,848 $ — |
Note 6 - Premises and Equipme_2
Note 6 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2021 2020 Land $ 5,486 $ 4,717 Buildings and leasehold improvements 22,158 19,816 Furniture and equipment 8,814 7,550 Construction in process — 16 $ 36,458 $ 32,099 Less accumulated depreciation 14,055 12,780 $ 22,403 $ 19,319 |
Note 7 - Deposits (Tables)
Note 7 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Time Deposit Maturities [Table Text Block] | 2022 $ 87,845 2023 24,551 2024 11,599 2025 11,827 2026 9,744 Thereafter — $ 145,566 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2021 2020 Deferred Tax Assets Allowance for loan losses $ 1,199 $ 1,572 Acquisition accounting adjustments, net 822 — Post-retirement benefits 156 101 Core deposit intangible 309 381 Unvested stock-based compensation 45 31 Reserve for letter of credit losses 66 — Limited partnership investments 8 8 Lease liability 60 72 Housing tax credit 24 — Unrealized loss on securities available for sale 118 — NOL carryover - acquired from Fincastle 1,548 — Loan origination fees, net 183 328 $ 4,538 $ 2,493 Deferred Tax Liabilities Depreciation $ 750 $ 663 Right of use asset 61 73 Housing equity fund 12 — Unrealized gains on securities available for sale — 813 Other real estate owned 158 — Cash flow hedges 198 91 $ 1,179 $ 1,640 Net deferred tax assets $ 3,359 $ 853 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2021 2020 Current tax expense $ 4,268 $ 2,972 Deferred tax benefit (1,682 ) (923 ) $ 2,586 $ 2,049 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2021 2020 Computed tax expense at statutory federal rate $ 2,718 $ 2,290 Increase in income taxes resulting from: Merger expenses 165 — Other 28 10 Decrease in income taxes resulting from: Tax-exempt interest and dividend income (214 ) (153 ) Income from bank owned life insurance (111 ) (98 ) $ 2,586 $ 2,049 |
Note 14 - Earnings Per Common_2
Note 14 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2021 2020 (Numerator): Net income $ 10,359 $ 8,858 (Denominator): Weighted average shares outstanding – basic 5,550,589 4,878,139 Potentially dilutive common shares – restricted stock units 8,492 2,127 Weighted average shares outstanding – diluted 5,559,081 4,880,266 Income per common share Basic $ 1.87 $ 1.82 Diluted $ 1.86 $ 1.82 |
Note 15 - Commitments and Unf_2
Note 15 - Commitments and Unfunded Credits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | 2021 2020 Commitments to extend credit and unfunded commitments under lines of credit $ 161,428 $ 114,892 Stand-by letters of credit 18,904 10,675 |
Note 17 - Lease Commitments (Ta
Note 17 - Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Assets and Liabilities, Lessee [Table Text Block] | Classification in the Consolidated Balance Sheets 2021 2020 Operating lease right-of-use asset Other assets $ 290 $ 347 Operating lease liability Accrued interest payable and other liabilities 284 341 |
Lease, Cost [Table Text Block] | 2021 2020 Weighted average remaining lease term, in years 2.8 3.2 Weighted average discount rate 2.65 % 1.72 % 2021 2020 Lease Expense Operating lease expense $ 154 $ 135 Short-term lease expense 14 2 Total lease expense (1) $ 168 $ 137 Cash paid for amounts included in lease liability $ 156 $ 138 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Twelve months ending December 31, 2022 $ 144 Twelve months ending December 31, 2023 72 Twelve months ending December 31, 2024 46 Twelve months ending December 31, 2025 27 Twelve months ending December 31, 2026 — Total undiscounted cash flows $ 289 Less: discount (5 ) Operating lease liability $ 284 |
Note 19 - Fair Value Measurem_2
Note 19 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at December 31, 2021 Description Balance as of December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Securities available for sale U.S. Treasury securities $ 39,658 $ — $ 39,658 $ — U.S. agency and mortgage-backed securities 176,379 — 176,379 — Obligations of states and political subdivisions 71,438 — 71,438 — Corporate debt securities 2,020 — 2,020 — Total securities available for sale $ 289,495 $ — $ 289,495 $ — Derivatives - cash flow hedges 941 — 941 — Total assets $ 290,436 $ — $ 290,436 $ — Fair Value Measurements at December 31, 2020 Description Balance as of December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Securities available for sale U.S. agency and mortgage-backed securities $ 101,598 $ — $ 101,598 $ — Obligations of states and political subdivisions 38,627 — 38,627 — Total securities available for sale $ 140,225 $ — $ 140,225 $ — Derivatives - cash flow hedges 431 — 431 — Total assets $ 140,656 $ — $ 140,656 $ — |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value Measurements at December 31, 2021 Description Balance as of December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans, net $ 1,454 $ — $ — $ 1,454 Fair Value Measurements at December 31, 2020 Description Balance as of December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs(Level 2) Significant Unobservable Inputs (Level 3) Impaired loans, net $ 3,595 $ — $ — $ 3,595 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Quantitative information about Level 3 Fair Value Measurements for December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (1) Impaired loans, net 1,454 Present value of cash flows Discount rate 6.50 % Quantitative information about Level 3 Fair Value Measurements for December 31, 2020 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (1) Impaired loans, net $ 2,205 Property appraisals Selling cost 10.00 % |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements at December 31, 2021 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Fair Value Financial Assets Cash and short-term investments $ 176,006 $ 176,006 $ — $ — $ 176,006 Securities available for sale 289,495 — 289,495 — 289,495 Securities held to maturity 33,441 — 33,617 — 33,617 Restricted securities 1,813 — 1,813 — 1,813 Loans held for sale — — — — — Loans, net 819,408 — — 827,248 827,248 Bank owned life insurance 24,294 — 24,294 — 24,294 Accrued interest receivable 3,903 — 3,903 — 3,903 Derivatives - cash flow hedges 941 — 941 — 941 Financial Liabilities Deposits $ 1,248,752 $ — $ 1,103,186 $ 145,101 $ 1,248,287 Subordinated debt 9,993 — — 8,932 8,932 Junior subordinated debt 9,279 — — 8,145 8,145 Accrued interest payable 152 — 152 — 152 Fair Value Measurements at December 31, 2020 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Fair Value Financial Assets Cash and short-term investments $ 127,297 $ 127,297 $ — $ — $ 127,297 Securities available for sale 140,225 — 140,225 — 140,225 Securities held to maturity 14,234 — 13,138 1,605 14,743 Restricted securities 1,875 — 1,875 — 1,875 Loans held for sale 245 — 245 — 245 Loans, net 622,429 — — 633,638 633,638 Bank owned life insurance 17,916 — 17,916 — 17,916 Accrued interest receivable 2,717 — 2,717 — 2,717 Derivatives - cash flow hedges 431 — 431 — 431 Financial Liabilities Deposits $ 842,461 $ — $ 742,264 $ 101,154 $ 843,418 Subordinated debt 9,991 — — 10,304 10,304 Junior subordinated debt 9,279 — — 10,364 10,364 Accrued interest payable 134 — 134 — 134 |
Note 20 - Regulatory Matters (T
Note 20 - Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual Minimum Capital Requirement Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2021: Total Capital (to Risk-Weighted Assets) $ 125,934 14.76 % $ 68,237 8.00 % $ 85,296 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 120,224 14.09 % $ 51,178 6.00 % $ 68,237 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 120,224 14.09 % $ 38,383 4.50 % $ 55,442 6.50 % Tier 1 Capital (to Average Assets) $ 120,224 8.82 % $ 54,497 4.00 % $ 68,121 5.00 % December 31, 2020: Total Capital (to Risk-Weighted Assets) $ 91,243 15.82 % $ 46,129 8.00 % $ 57,661 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 84,032 14.57 % $ 34,597 6.00 % $ 46,129 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 84,032 14.57 % $ 25,948 4.50 % $ 37,480 6.50 % Tier 1 Capital (to Average Assets) $ 84,032 8.80 % $ 38,187 4.00 % $ 47,733 5.00 % |
Note 21 - Accumulated Other C_2
Note 21 - Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Net Unrealized Gains (Losses) on Securities Change in Fair Value of Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2019 $ 724 $ — $ 724 Unrealized holding gains (net of tax, $ 629 2,366 — 2,366 Reclassification adjustment (net of tax, $ 8 (32 ) — (32 ) Change in fair value (net of tax, $ 91 — 340 340 Change during period 2,334 340 2,674 Balance at December 31, 2020 $ 3,058 $ 340 $ 3,398 Unrealized holding losses (net of tax, ($ 923 (3,474 ) — (3,474 ) Reclassification adjustment (net of tax, ($ 8 (29 ) — (29 ) Change in fair value (net of tax, $ 107 — 403 403 Change during period (3,503 ) 403 (3,100 ) Balance at December 31, 2021 $ (445 ) $ 743 $ 298 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Details About Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income For the year ended December 31, 2021 2020 Securities available for sale: Net securities gains reclassified into earnings $ (37 ) $ (40 ) Net gains on securities available for sale Related income tax expense 8 8 Income tax expense Total reclassifications $ (29 ) $ (32 ) Net of tax |
Note 22 - Stock Compensation _2
Note 22 - Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | 2021 Shares Weighted Average Grant Date Fair Value Unvested, January 1, 2021 15,858 $ 20.40 Granted 23,094 19.39 Vested (8,073 ) 19.84 Forfeited (98 ) 18.41 Unvested, December 31, 2021 30,781 $ 19.79 |
Note 23 - Revenue Recognition (
Note 23 - Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | 2021 2020 Noninterest Income Service charges on deposit accounts $ 2,061 $ 2,028 ATM and check card fees 2,930 2,314 Wealth management fees 2,712 2,208 Brokered mortgage fees 539 356 Fees for other customer services 777 587 Noninterest income (in-scope of Topic 606) $ 9,019 $ 7,493 Noninterest income (out-of-scope of Topic 606) 1,168 761 Total noninterest income $ 10,187 $ 8,254 |
Note 24 - Derivative Financia_2
Note 24 - Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Derivative Instruments [Table Text Block] | 2021 Notional Amount Assets Liabilities Collateral Pledged(1) Cash Flow Hedges Interest rate swap contracts $ 9,000 $ 941 $ — $ — 2020 Notional Amount Assets Liabilities Collateral Pledged(1) Cash Flow Hedges Interest rate swap contracts $ 9,000 $ 431 $ — $ — |
Note 25 - Acquisitions (Tables)
Note 25 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (Dollars in thousands) Bank of Fincastle SmartBank Total Purchase price: Cash paid $ 6,752 $ 83,745 $ 90,497 Common stock issued 27,069 - 27,069 Total purchase price $ 33,821 $ 83,745 $ 117,566 Identifiable assets acquired: Cash and due from banks $ 46,158 $ - $ 46,158 Federal funds sold 120 - 120 Securities, AFS, at fair value 12,112 - 12,112 Restricted securities 183 - 183 Loans, net of ALLL 194,617 81,637 276,254 Bank premises and equipment 3,471 172 3,643 Accrued interest receivable 1,588 143 1,731 OREO 2,137 - 2,137 BOLI 5,852 - 5,852 Other assets 4,259 - 4,259 Total identifiable assets acquired $ 270,497 $ 81,952 $ 352,449 Identifiable liabilities assumed: Demand deposits & savings accounts $ 184,535 $ - $ 184,535 Time deposits 52,246 - 52,246 Accrued expenses and other liabilities 1,132 - 1,132 Total identifiable liabilities assumed $ 237,913 $ - $ 237,913 Net identifiable assets acquired at fair value $ 32,584 $ 81,952 $ 114,536 Goodwill resulting from acquisitions $ 1,237 $ 1,793 $ 3,030 |
Business Acquisition, Pro Forma Information [Table Text Block] | Unaudited Pro Forma Unaudited Pro Forma Twelve Months Ended Twelve Months Ended (Dollars in thousands, except per share amounts) December 31, 2021 December 31, 2020 Total revenues (net interest income plus noninterest income) $ 42,116 $ 43,234 Net income $ 9,826 $ 7,660 Net income per share, basic $ 1.77 $ 1.57 Net income per share, diluted $ 1.77 $ 1.57 |
Note 27 - Parent Company Only_2
Note 27 - Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | 2021 2020 Assets Cash $ 7,303 $ 16,440 Investment in subsidiaries, at cost, plus undistributed net income 122,964 87,109 Other assets 6,256 740 Total assets $ 136,523 $ 104,289 Liabilities and Shareholders’ Equity Subordinated debt $ 9,993 $ 9,991 Junior subordinated debt 9,279 9,279 Other liabilities 212 103 Total liabilities $ 19,484 $ 19,373 Preferred stock $ — $ — Common stock 7,785 6,075 Surplus 31,966 6,151 Retained earnings 76,990 69,292 Accumulated other comprehensive income, net 298 3,398 Total shareholders’ equity $ 117,039 $ 84,916 Total liabilities and shareholders’ equity $ 136,523 $ 104,289 |
Condensed Income Statement [Table Text Block] | 2021 2020 Income Dividends from subsidiary $ 6,000 $ 6,600 Total income $ 6,000 $ 6,600 Expense Interest expense $ 889 $ 794 Supplies 56 3 Legal and professional fees 107 215 Data processing 29 29 Management fee-subsidiary 305 294 Other expense 104 80 Total expense $ 1,490 $ 1,415 Income before allocated tax benefits and undistributed income of subsidiary $ 4,510 $ 5,185 Allocated income tax benefit 312 297 Income before equity in undistributed income of subsidiary $ 4,822 $ 5,482 Equity in undistributed income of subsidiary 5,537 3,376 Net income $ 10,359 $ 8,858 |
Condensed Cash Flow Statement [Table Text Block] | 2021 2020 Cash Flows from Operating Activities Net income $ 10,359 $ 8,858 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiary (5,537 ) (3,376 ) Stock-based compensation 354 290 Amortization of debt issuance costs 2 18 (Increase) decrease in other assets (5,020 ) 3 Increase in other liabilities 1 4 Net cash (used in) provided by operating activities $ 159 $ 5,797 Cash Flows from Investing Activities Net cash paid in acquisition of The Bank of Fincastle $ (6,752 ) $ — Net cash used in investing activities $ (6,752 ) $ — Cash Flows from Financing Activities Proceeds from subordinated debt, net of issuance costs $ — $ 4,990 Cash dividends paid on common stock, net of reinvestment (2,505 ) (2,007 ) Repurchase of common stock (39 ) (2,118 ) Net cash (used in) provided by financing activities $ (2,544 ) $ 865 (Decrease) increase in cash and cash equivalents $ (9,137 ) $ 6,662 Cash and Cash Equivalents Beginning 16,440 9,778 Ending $ 7,303 $ 16,440 |
Note 1 - Nature of Banking Ac_2
Note 1 - Nature of Banking Activities and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2021 | Jul. 01, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Deferred Payments | $ 0 | $ 0 | ||||||
Financing Receivable, Modifications, Interest Only Payments | 11,500 | 11,500 | ||||||
Loans and Leases Receivable, Net Amount, Total | 819,408 | $ 622,429 | 819,408 | $ 622,429 | ||||
Financing Receivable, Troubled Debt Restructuring | 1,600 | $ 6,000 | 1,600 | 6,000 | ||||
Advertising Expense | 487 | 208 | ||||||
Business Combination, Consideration Transferred, Total | 117,566 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 352,449 | $ 352,449 | ||||||
Core Deposits [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||||
Fincastle and SmartBank [Member] | ||||||||
Financing Receivable, Purchased with Credit Deterioration, Amount at Purchase Price, Total | $ 0 | |||||||
The Bank of Fincastle [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 33,821 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 270,497 | |||||||
Smartbank [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 83,745 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 81,952 | $ 81,952 | ||||||
SBA CARES Act Paycheck Protection Program [Member] | ||||||||
Loans and Leases Receivable, Net Amount, Total | 12,500 | $ 12,500 | ||||||
Amortization of Deferred Loan Origination Fees, Net | 2,000 | $ 824 | ||||||
Loans and Leases Receivable, Deferred Income, Total | 367,000 | 367,000 | ||||||
SBA CARES Act Paycheck Protection Program [Member] | Maturing in Second and Third Quarters of 2022 [Member] | ||||||||
Loans and Leases Receivable, Net Amount, Total | 159,000 | 159,000 | ||||||
SBA CARES Act Paycheck Protection Program [Member] | Maturing in First and Second Quarters of 2026 [Member] | ||||||||
Loans and Leases Receivable, Net Amount, Total | $ 12,300 | 12,300 | ||||||
Minimum [Member] | ||||||||
Financing Receivable, Modifications, Interest Only Payments, Period (Month) | 6 months | 6 months | ||||||
Amount of Substandard and Doubtful Loans Evaluated as Impaired | $ 250 | |||||||
Minimum [Member] | Core Deposits [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 6 years | |||||||
Minimum [Member] | Premises and Equipment [Member] | ||||||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | |||||||
Minimum [Member] | Software and Software Development Costs [Member] | ||||||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | |||||||
Maximum [Member] | ||||||||
Financing Receivable, Modifications, Interest Only Payments, Period (Month) | 24 months | 24 months | ||||||
Maximum [Member] | Core Deposits [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||||
Maximum [Member] | Premises and Equipment [Member] | ||||||||
Property, Plant and Equipment, Useful Life (Year) | 40 years | |||||||
Maximum [Member] | Software and Software Development Costs [Member] | ||||||||
Property, Plant and Equipment, Useful Life (Year) | 7 years | |||||||
Subordinated Debt [Member] | ||||||||
Proceeds from Issuance of Debt | $ 5,000 |
Note 2 - Securities (Details Te
Note 2 - Securities (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Weighted Average Re-pricing Term (Year) | 5 years 2 months 12 days | 3 years 6 months |
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale, Total | $ 54,551 | $ 34,057 |
Debt Securities, Available-for-sale, Realized Gain | 37 | 40 |
Proceeds from Maturities, Prepayments and Calls of Held-to-maturity Securities | 4,700 | 3,300 |
Proceeds from Sale of Held-to-maturity Securities | 0 | 0 |
Debt Securities, Available-for-sale, Restricted | 83,800 | 66,500 |
Impairment Losses Related to Federal Home Loan Stock | 0 | |
Other Assets [Member] | ||
Equity Securities without Readily Determinable Fair Value, Amount | $ 504 | $ 529 |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 6 | |
Available-for-Sale Securities, Number of Securities | 8 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 58 | 7 |
Available-for-Sale Securities, Number of Securities | 135 | 101 |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 37 | 1 |
Available-for-Sale Securities, Number of Securities | 118 | 84 |
Note 2 - Securities - Summary o
Note 2 - Securities - Summary of Amortized Costs and Fair Values of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized cost, available for sale securities | $ 290,058 | $ 136,355 | |
Gross unrealized gains, available for sale securities | 2,033 | 3,952 | |
Gross unrealized losses, available for sale securities | (2,596) | (82) | |
Fair value, available for sale securities | 289,495 | $ 289,495 | 140,225 |
Securities held to maturity, at amortized cost (fair value, 2021, $33,617; 2020, $14,743) | 33,441 | 14,234 | |
Gross unrealized gains, held to maturity securities | 242 | 509 | |
Gross unrealized losses, held to maturity securities | (66) | 0 | |
Securities, fair value | 33,617 | 33,617 | 14,743 |
Amortized cost, held to maturity securities | 33,441 | 14,234 | |
Fair value, held to maturity securities | 33,617 | 33,617 | 14,743 |
Amortized cost | 323,499 | 150,589 | |
Gross unrealized gains | 2,275 | 4,461 | |
Gross unrealized losses | (2,662) | (82) | |
Total securities, fair value | 323,112 | 154,968 | |
US Treasury Securities [Member] | |||
Amortized cost, available for sale securities | 39,871 | ||
Gross unrealized gains, available for sale securities | 37 | ||
Gross unrealized losses, available for sale securities | (250) | ||
Fair value, available for sale securities | 39,658 | ||
US Agency and Mortgage-backed Securities [Member] | |||
Amortized cost, available for sale securities | 177,131 | 98,848 | |
Gross unrealized gains, available for sale securities | 1,085 | 2,830 | |
Gross unrealized losses, available for sale securities | (1,837) | (80) | |
Fair value, available for sale securities | 176,379 | 101,598 | |
Securities held to maturity, at amortized cost (fair value, 2021, $33,617; 2020, $14,743) | 26,392 | 9,588 | |
Gross unrealized gains, held to maturity securities | 124 | 264 | |
Gross unrealized losses, held to maturity securities | (53) | 0 | |
Securities, fair value | 26,463 | 9,852 | |
Amortized cost, held to maturity securities | 26,392 | 9,588 | |
Fair value, held to maturity securities | 26,463 | 9,852 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Amortized cost, available for sale securities | 71,037 | 37,507 | |
Gross unrealized gains, available for sale securities | 910 | 1,122 | |
Gross unrealized losses, available for sale securities | (509) | (2) | |
Fair value, available for sale securities | 71,438 | 38,627 | |
Securities held to maturity, at amortized cost (fair value, 2021, $33,617; 2020, $14,743) | 7,049 | 3,146 | |
Gross unrealized gains, held to maturity securities | 118 | 140 | |
Gross unrealized losses, held to maturity securities | (13) | 0 | |
Securities, fair value | 7,154 | 3,286 | |
Amortized cost, held to maturity securities | 7,049 | 3,146 | |
Fair value, held to maturity securities | 7,154 | 3,286 | |
Corporate Debt Securities [Member] | |||
Securities held to maturity, at amortized cost (fair value, 2021, $33,617; 2020, $14,743) | 2,019 | 1,500 | |
Gross unrealized gains, held to maturity securities | 1 | 105 | |
Gross unrealized losses, held to maturity securities | 0 | 0 | |
Securities, fair value | 2,020 | 1,605 | |
Amortized cost, held to maturity securities | $ 2,019 | 1,500 | |
Fair value, held to maturity securities | $ 2,020 | $ 1,605 |
Note 2 - Securities - Investmen
Note 2 - Securities - Investments in an Unrealized Loss Position That Were Temporarily Impaired (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Less than 12 months, fair value, available for sale securities | $ 174,217 | $ 18,387 |
Less than 12 months, unrealized (loss), available for sale securities | (2,085) | (82) |
12 months or more, fair value, available for sale securities | 15,758 | 0 |
12 months or more, unrealized (loss), available for sale securities | (511) | 0 |
Total, fair value, available for sale securities | 189,975 | 18,387 |
Total, unrealized (loss), available for sale securities | (2,596) | (82) |
Less than 12 months, fair value, held to maturity securities | 6,410 | |
Less than 12 months, fair value, held to maturity securities | (66) | |
12 months or more, fair value, held to maturity securities | 0 | |
12 months or more, unrealized (loss), available for sale securities | 0 | |
Total, fair value, held to maturity securities | 6,410 | |
Total, unrealized (loss), held to maturity securities | (66) | |
Less than 12 months, fair value | 180,627 | |
Less than 12 months, fair value, | (2,151) | |
12 months or more, fair value | 15,758 | |
12 months or more, unrealized (loss) | (511) | |
Total, fair value | 196,385 | |
Total, unrealized (loss) | (2,662) | |
US Treasury Securities [Member] | ||
Less than 12 months, fair value, available for sale securities | 29,656 | |
Less than 12 months, unrealized (loss), available for sale securities | (250) | |
12 months or more, fair value, available for sale securities | 0 | |
12 months or more, unrealized (loss), available for sale securities | 0 | |
Total, fair value, available for sale securities | 29,656 | |
Total, unrealized (loss), available for sale securities | (250) | |
US Agency and Mortgage-backed Securities [Member] | ||
Less than 12 months, fair value, available for sale securities | 109,950 | 17,367 |
Less than 12 months, unrealized (loss), available for sale securities | (1,335) | (80) |
12 months or more, fair value, available for sale securities | 14,749 | 0 |
12 months or more, unrealized (loss), available for sale securities | (502) | 0 |
Total, fair value, available for sale securities | 124,699 | 17,367 |
Total, unrealized (loss), available for sale securities | (1,837) | (80) |
Less than 12 months, fair value, held to maturity securities | 5,411 | |
Less than 12 months, fair value, held to maturity securities | (53) | |
12 months or more, fair value, held to maturity securities | 0 | |
12 months or more, unrealized (loss), available for sale securities | 0 | |
Total, fair value, held to maturity securities | 5,411 | |
Total, unrealized (loss), held to maturity securities | (53) | |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 months, fair value, available for sale securities | 34,611 | 1,020 |
Less than 12 months, unrealized (loss), available for sale securities | (500) | (2) |
12 months or more, fair value, available for sale securities | 1,009 | 0 |
12 months or more, unrealized (loss), available for sale securities | (9) | 0 |
Total, fair value, available for sale securities | 35,620 | 1,020 |
Total, unrealized (loss), available for sale securities | (509) | $ (2) |
Less than 12 months, fair value, held to maturity securities | 999 | |
Less than 12 months, fair value, held to maturity securities | (13) | |
12 months or more, fair value, held to maturity securities | 0 | |
12 months or more, unrealized (loss), available for sale securities | 0 | |
Total, fair value, held to maturity securities | 999 | |
Total, unrealized (loss), held to maturity securities | $ (13) |
Note 2 - Securities - Amortized
Note 2 - Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Due within one year, amortized cost, available for sale securities | $ 765 | ||
Due within one year, fair value, available for sale securities | 766 | ||
Due within one year, amortized cost, held to maturity securities | 2,410 | ||
Due within one year, fair value, held to maturity securities | 2,412 | ||
Due after one year through five years, amortized cost, available for sale securities | 37,128 | ||
Due after one year through five years, fair value, available for sale securities | 37,119 | ||
Due after one year through five years, amortized cost, held to maturity securities | 2,332 | ||
Due after one year through five years, fair value, held to maturity securities | 2,415 | ||
Due after five years through ten years, amortized cost, available for sale securities | 65,837 | ||
Due after five years through ten years, fair value, available for sale securities | 66,087 | ||
Due after five years through ten years, amortized cost, held to maturity securities | 6,288 | ||
Due after five years through ten years, fair value, held to maturity securities | 6,362 | ||
Due after ten years, amortized cost, available for sale securities | 186,328 | ||
Due after ten years, fair value, available for sale securities | 185,523 | ||
Due after ten years, amortized cost, held to maturity securities | 22,411 | ||
Due after ten years, fair value, held to maturity securities | 22,428 | ||
Amortized cost, available for sale securities | 290,058 | $ 136,355 | |
Fair value, available for sale securities | 289,495 | $ 289,495 | 140,225 |
Amortized cost, held to maturity securities | 33,441 | ||
Securities, fair value | $ 33,617 | $ 33,617 | $ 14,743 |
Note 2 - Securities - Compositi
Note 2 - Securities - Composition of Restricted Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank stock | $ 701 | $ 818 |
Federal Reserve Bank stock | 980 | 980 |
Community Bankers’ Bank stock | 132 | 77 |
Total restricted securities | $ 1,813 | $ 1,875 |
Note 3 - Loans (Details Textual
Note 3 - Loans (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total | $ 871 | $ 1,600 |
Loans and Leases Receivable, Gross, Total | 825,118 | 629,914 |
Consumer and Other Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 12,681 | 10,051 |
Consumer and Other Loans [Member] | Demand Deposit Overdrafts [Member] | ||
Loans and Leases Receivable, Gross, Total | $ 175 | $ 143 |
Note 3 - Loans - Summary of Loa
Note 3 - Loans - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans | $ 825,118 | $ 629,914 | |
Allowance for loan losses | (5,710) | (7,485) | $ (4,934) |
Loans, net | 819,408 | 622,429 | |
Commercial and Industrial Loans [Member] | |||
Loans | 99,805 | 109,838 | |
Allowance for loan losses | (718) | (784) | (562) |
Consumer and Other Loans [Member] | |||
Loans | 12,681 | 10,051 | |
Allowance for loan losses | (340) | (417) | (836) |
Construction and Land Development [Member] | Real Estate 1 [Member] | |||
Loans | 55,721 | 27,328 | |
Allowance for loan losses | (345) | (306) | (464) |
Secured by Multi-family Residential Properties [Member] | Real Estate 1 [Member] | |||
Loans | 291,990 | 235,814 | |
Allowance for loan losses | (1,077) | (1,022) | (776) |
Other Real Estate Loans [Member] | Real Estate 1 [Member] | |||
Loans | 364,921 | 246,883 | |
Allowance for loan losses | $ (3,230) | (4,956) | $ (2,296) |
Consumer and Other Loans [Member] | Consumer and Other Loans [Member] | |||
Loans | $ 10,051 |
Note 3 - Loans - Summary of L_2
Note 3 - Loans - Summary of Loan Classes and an Aging of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans | $ 825,118 | $ 629,914 |
Non-accrual loans | 2,304 | 6,714 |
Accruing loans past due 90 days or more amounted | 0 | 302 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans | 3,009 | 824 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans | 226 | 297 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans | 372 | 461 |
Financial Asset, Past Due [Member] | ||
Loans | 3,607 | 1,582 |
Financial Asset, Not Past Due [Member] | ||
Loans | 821,511 | 628,332 |
Real Estate 1 [Member] | Construction and Land Development [Member] | ||
Loans | 55,721 | 27,328 |
Non-accrual loans | 0 | 276 |
Accruing loans past due 90 days or more amounted | 0 | 0 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans | 0 | 47 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans | 115 | 20 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans | 0 | 0 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Financial Asset, Past Due [Member] | ||
Loans | 115 | 67 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Financial Asset, Not Past Due [Member] | ||
Loans | 55,606 | 27,261 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | ||
Loans | 291,990 | 235,814 |
Non-accrual loans | 766 | 449 |
Accruing loans past due 90 days or more amounted | 0 | 298 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans | 1,293 | 657 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans | 100 | 125 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans | 372 | 324 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Financial Asset, Past Due [Member] | ||
Loans | 1,765 | 1,106 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Financial Asset, Not Past Due [Member] | ||
Loans | 290,225 | 234,708 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | ||
Loans | 364,921 | 246,883 |
Non-accrual loans | 29 | 4,441 |
Accruing loans past due 90 days or more amounted | 0 | 0 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans | 186 | 0 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans | 0 | 131 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans | 0 | 133 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Financial Asset, Past Due [Member] | ||
Loans | 186 | 264 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Loans | 364,735 | 246,619 |
Commercial and Industrial Loans [Member] | ||
Loans | 99,805 | 109,838 |
Non-accrual loans | 1,509 | 1,548 |
Accruing loans past due 90 days or more amounted | 0 | 0 |
Commercial and Industrial Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans | 1,474 | 104 |
Commercial and Industrial Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans | 0 | 0 |
Commercial and Industrial Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans | 0 | 0 |
Commercial and Industrial Loans [Member] | Financial Asset, Past Due [Member] | ||
Loans | 1,474 | 104 |
Commercial and Industrial Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Loans | 98,331 | 109,734 |
Consumer and Other Loans [Member] | ||
Loans | 12,681 | 10,051 |
Non-accrual loans | 0 | 0 |
Accruing loans past due 90 days or more amounted | 0 | 4 |
Consumer and Other Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans | 56 | 16 |
Consumer and Other Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans | 11 | 21 |
Consumer and Other Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans | 0 | 4 |
Consumer and Other Loans [Member] | Financial Asset, Past Due [Member] | ||
Loans | 67 | 41 |
Consumer and Other Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Loans | $ 12,614 | $ 10,010 |
Note 3 - Loans - Analysis of th
Note 3 - Loans - Analysis of the Credit Risk Profile of Each Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans | $ 825,118 | $ 629,914 |
Pass [Member] | ||
Loans | 821,418 | 621,806 |
Special Mention [Member] | ||
Loans | 1,081 | 0 |
Substandard [Member] | ||
Loans | 2,619 | 8,108 |
Doubtful [Member] | ||
Loans | 0 | 0 |
Real Estate 1 [Member] | Construction and Land Development [Member] | ||
Loans | 55,721 | 27,328 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Pass [Member] | ||
Loans | 55,721 | 26,896 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Special Mention [Member] | ||
Loans | 0 | 0 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Substandard [Member] | ||
Loans | 0 | 432 |
Real Estate 1 [Member] | Construction and Land Development [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | ||
Loans | 291,990 | 235,814 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Pass [Member] | ||
Loans | 290,909 | 235,035 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Special Mention [Member] | ||
Loans | 0 | 0 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Substandard [Member] | ||
Loans | 1,081 | 779 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | ||
Loans | 364,921 | 246,883 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Pass [Member] | ||
Loans | 364,892 | 242,441 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Special Mention [Member] | ||
Loans | 0 | 0 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Substandard [Member] | ||
Loans | 29 | 4,442 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Commercial and Industrial Loans [Member] | ||
Loans | 99,805 | 109,838 |
Commercial and Industrial Loans [Member] | Pass [Member] | ||
Loans | 97,215 | 107,383 |
Commercial and Industrial Loans [Member] | Special Mention [Member] | ||
Loans | 1,081 | 0 |
Commercial and Industrial Loans [Member] | Substandard [Member] | ||
Loans | 1,509 | 2,455 |
Commercial and Industrial Loans [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Consumer and Other Loans [Member] | ||
Loans | 12,681 | 10,051 |
Consumer and Other Loans [Member] | Pass [Member] | ||
Loans | 12,681 | 10,051 |
Consumer and Other Loans [Member] | Special Mention [Member] | ||
Loans | 0 | 0 |
Consumer and Other Loans [Member] | Substandard [Member] | ||
Loans | 0 | 0 |
Consumer and Other Loans [Member] | Doubtful [Member] | ||
Loans | $ 0 | $ 0 |
Note 3 - Loans - Loans Acquired
Note 3 - Loans - Loans Acquired in Business Combinations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Outstanding principal balance | $ 825,118 | $ 629,914 |
Carrying amount | 819,408 | 622,429 |
Real Estate 1 [Member] | Construction and Land Development [Member] | ||
Outstanding principal balance | 55,721 | 27,328 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | ||
Outstanding principal balance | 291,990 | 235,814 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | ||
Outstanding principal balance | 364,921 | 246,883 |
Commercial and Industrial Loans [Member] | ||
Outstanding principal balance | 99,805 | 109,838 |
Consumer and Other Loans [Member] | ||
Outstanding principal balance | 12,681 | $ 10,051 |
Financial Asset Acquired and No Credit Deterioration [Member] | ||
Outstanding principal balance | 216,706 | |
Carrying amount | 213,039 | |
Financial Asset Acquired and No Credit Deterioration [Member] | Real Estate 1 [Member] | Construction and Land Development [Member] | ||
Carrying amount | 26,348 | |
Financial Asset Acquired and No Credit Deterioration [Member] | Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | ||
Carrying amount | 53,803 | |
Financial Asset Acquired and No Credit Deterioration [Member] | Real Estate 1 [Member] | Other Real Estate Loans [Member] | ||
Carrying amount | 90,908 | |
Financial Asset Acquired and No Credit Deterioration [Member] | Commercial and Industrial Loans [Member] | ||
Carrying amount | 36,968 | |
Financial Asset Acquired and No Credit Deterioration [Member] | Consumer and Other Loans [Member] | ||
Carrying amount | $ 5,012 |
Note 4 - Allowance for Loan L_3
Note 4 - Allowance for Loan Losses (Details Textual) Pure in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Financing Receivable, Troubled Debt Restructuring | $ 1,600 | $ 6,000 | $ 1,600 | $ 6,000 |
Financing Receivable, Modifications, Number of Contracts | 0 | |||
Financing Receivable, Deferred Payments | 0 | $ 0 | ||
Financing Receivable, Modifications, Interest Only Payments | $ 11,500 | 11,500 | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | 0 | 0 | ||
Financing Receivable Non-accrual Loans Excluded from Impaired Loan Disclosure | 0 | 0 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 155 | 271 | ||
Minimum [Member] | ||||
Financing Receivable, Modifications, Interest Only Payments, Period (Month) | 6 months | 6 months | ||
Maximum [Member] | ||||
Financing Receivable, Modifications, Interest Only Payments, Period (Month) | 24 months | 24 months | ||
TDR Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease), Total | 55 | |||
Performing Financial Instruments [Member] | ||||
Financing Receivable, Troubled Debt Restructuring | $ 0 | $ 0 | $ 0 | $ 0 |
Note 4 - Allowance for Loan L_4
Note 4 - Allowance for Loan Losses - Allowance by Impairment Methodology and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Beginning balance | $ 7,485 | $ 4,934 |
Charge-offs | (1,447) | (784) |
Recoveries | 322 | 335 |
(Recovery of) provision for loan losses | (650) | 3,000 |
Ending balance | 5,710 | 7,485 |
Individually evaluated for impairment, allowance | 55 | 2,223 |
Collectively evaluated for impairment, allowance | 5,655 | 5,262 |
Loans | 825,118 | 629,914 |
Individually evaluated for impairment, loans | 2,304 | 6,714 |
Collectively evaluated for impairment, loans | 822,814 | 623,200 |
Real Estate 1 [Member] | Construction and Land Development [Member] | ||
Beginning balance | 306 | 464 |
Charge-offs | 0 | 0 |
Recoveries | 6 | 2 |
(Recovery of) provision for loan losses | 33 | (160) |
Ending balance | 345 | 306 |
Individually evaluated for impairment, allowance | 0 | 0 |
Collectively evaluated for impairment, allowance | 345 | 306 |
Loans | 55,721 | 27,328 |
Individually evaluated for impairment, loans | 0 | 276 |
Collectively evaluated for impairment, loans | 55,721 | 27,052 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | ||
Beginning balance | 1,022 | 776 |
Charge-offs | (15) | 0 |
Recoveries | 65 | 8 |
(Recovery of) provision for loan losses | 5 | 238 |
Ending balance | 1,077 | 1,022 |
Individually evaluated for impairment, allowance | 0 | 0 |
Collectively evaluated for impairment, allowance | 1,077 | 1,022 |
Loans | 291,990 | 235,814 |
Individually evaluated for impairment, loans | 765 | 449 |
Collectively evaluated for impairment, loans | 291,225 | 235,365 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | ||
Beginning balance | 4,956 | 2,296 |
Charge-offs | (992) | 0 |
Recoveries | 3 | 2 |
(Recovery of) provision for loan losses | (737) | 2,658 |
Ending balance | 3,230 | 4,956 |
Individually evaluated for impairment, allowance | 0 | 2,065 |
Collectively evaluated for impairment, allowance | 3,230 | 2,891 |
Loans | 364,921 | 246,883 |
Individually evaluated for impairment, loans | 30 | 4,441 |
Collectively evaluated for impairment, loans | 364,891 | 242,442 |
Commercial and Industrial Loans [Member] | ||
Beginning balance | 784 | 562 |
Charge-offs | (6) | (69) |
Recoveries | 7 | 18 |
(Recovery of) provision for loan losses | (67) | 273 |
Ending balance | 718 | 784 |
Individually evaluated for impairment, allowance | 55 | 158 |
Collectively evaluated for impairment, allowance | 663 | 626 |
Loans | 99,805 | 109,838 |
Individually evaluated for impairment, loans | 1,509 | 1,548 |
Collectively evaluated for impairment, loans | 98,296 | 108,290 |
Consumer and Other Loans [Member] | ||
Beginning balance | 417 | 836 |
Charge-offs | (434) | (715) |
Recoveries | 241 | 305 |
(Recovery of) provision for loan losses | 116 | (9) |
Ending balance | 340 | 417 |
Individually evaluated for impairment, allowance | 0 | 0 |
Collectively evaluated for impairment, allowance | 340 | 417 |
Loans | 12,681 | 10,051 |
Individually evaluated for impairment, loans | 0 | 0 |
Collectively evaluated for impairment, loans | $ 12,681 | $ 10,051 |
Note 4 - Allowance for Loan L_5
Note 4 - Allowance for Loan Losses - Impaired Loans and Related Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Impaired loans, unpaid principal balance | $ 2,602 | $ 6,967 |
Impaired loans, recorded investment with no allowance | 795 | 896 |
Impaired loans, recorded investment with allowance | 1,509 | 5,818 |
Impaired loans, total recorded investment | 2,304 | 6,714 |
Impaired loans, related allowance | 55 | 2,223 |
Impaired loans, average recorded investment | 4,517 | 3,877 |
Impaired loans, interest income recognized | 9 | 187 |
Real Estate 1 [Member] | Construction and Land Development [Member] | ||
Impaired loans, unpaid principal balance | 0 | 325 |
Impaired loans, recorded investment with no allowance | 0 | 276 |
Impaired loans, recorded investment with allowance | 0 | 0 |
Impaired loans, total recorded investment | 0 | 276 |
Impaired loans, related allowance | 0 | 0 |
Impaired loans, average recorded investment | 91 | 344 |
Impaired loans, interest income recognized | 0 | 0 |
Real Estate 1 [Member] | Secured by Multi-family Residential Properties [Member] | ||
Impaired loans, unpaid principal balance | 889 | 568 |
Impaired loans, recorded investment with no allowance | 766 | 449 |
Impaired loans, recorded investment with allowance | 0 | 0 |
Impaired loans, total recorded investment | 766 | 449 |
Impaired loans, related allowance | 0 | 0 |
Impaired loans, average recorded investment | 429 | 517 |
Impaired loans, interest income recognized | 9 | 1 |
Real Estate 1 [Member] | Other Real Estate Loans [Member] | ||
Impaired loans, unpaid principal balance | 40 | 4,492 |
Impaired loans, recorded investment with no allowance | 29 | 171 |
Impaired loans, recorded investment with allowance | 0 | 4,270 |
Impaired loans, total recorded investment | 29 | 4,441 |
Impaired loans, related allowance | 0 | 2,065 |
Impaired loans, average recorded investment | 2,384 | 2,623 |
Impaired loans, interest income recognized | 0 | 109 |
Commercial and Industrial Loans [Member] | ||
Impaired loans, unpaid principal balance | 1,673 | 1,582 |
Impaired loans, recorded investment with no allowance | 0 | 0 |
Impaired loans, recorded investment with allowance | 1,509 | 1,548 |
Impaired loans, total recorded investment | 1,509 | 1,548 |
Impaired loans, related allowance | 55 | 158 |
Impaired loans, average recorded investment | 1,613 | 393 |
Impaired loans, interest income recognized | $ 0 | $ 77 |
Note 5 - Other Real Estate Ow_3
Note 5 - Other Real Estate Owned (Details Textual) - USD ($) $ in Thousands | Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Other Real Estate, Ending Balance | $ 1,848 | $ 0 | |
Mortgage Loans in Process of Foreclosure, Amount | 0 | ||
Other Real Estate, Additions | 2,137 | 0 | |
Other Real Estate Owned, Expenses | 34 | 0 | |
The Bank of Fincastle [Member] | |||
Other Real Estate, Additions | $ 2,100 | ||
Residential Real Estate Properties [Member] | |||
Other Real Estate, Ending Balance | $ 0 | $ 0 | |
Real Estate and Building Formerly Used as Bank Premises [Member] | The Bank of Fincastle [Member] | |||
Other Real Estate, Additions | $ 1,800 |
Note 5 - Other Real Estate Ow_4
Note 5 - Other Real Estate Owned - Changes in Balance for OREO (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance, gross | $ 0 | $ 0 |
Transfers in | 130 | 0 |
Acquired in merger | 2,137 | 0 |
Sales proceeds | (288) | 0 |
Gain on disposition | 8 | 0 |
Balance, gross | 1,987 | 0 |
Less: valuation allowance | (139) | 0 |
Balance at the end of period, net | $ 1,848 | $ 0 |
Note 6 - Premises and Equipme_3
Note 6 - Premises and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation, Total | $ 1.4 | $ 1.3 |
Note 6 - Premises and Equipme_4
Note 6 - Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment, Gross | $ 36,458 | $ 32,099 |
Less accumulated depreciation | 14,055 | 12,780 |
Property, Plant and Equipment, Net | 22,403 | 19,319 |
Land [Member] | ||
Property, Plant and Equipment, Gross | 5,486 | 4,717 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment, Gross | 22,158 | 19,816 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Gross | 8,814 | 7,550 |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Gross | $ 0 | $ 16 |
Note 7 - Deposits (Details Text
Note 7 - Deposits (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Time Deposits, at or Above FDIC Insurance Limit | $ 19,300 | $ 12,900 |
Brokered Deposits | $ 660 | $ 596 |
Note 7 - Deposits - Scheduled M
Note 7 - Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
2022 | $ 87,845 | |
2023 | 24,551 | |
2024 | 11,599 | |
2025 | 11,827 | |
2026 | 9,744 | |
Thereafter | 0 | |
Total time deposits | $ 145,566 | $ 100,197 |
Note 8 - Other Borrowings (Deta
Note 8 - Other Borrowings (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 240,400 | $ 237,700 |
Percentage of Assets, Maximum Borrowing Capacity from FHLB | 19.00% | |
Loans Pledged as Collateral | $ 205,800 | 221,100 |
Federal Home Loan Bank Stock | 701 | 818 |
Advances from Federal Home Loan Banks, Total | 0 | $ 0 |
FHLB Loans [Member] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 155,700 | |
Line of Credit [Member] | Unsecured Line of Credit [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | |
Long-term Line of Credit, Total | $ 0 | |
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
Debt Instrument, Interest Rate Floor | 3.50% |
Note 9 - Subordinated Debt (Det
Note 9 - Subordinated Debt (Details Textual) - USD ($) $ in Thousands | Jun. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 30, 2015 |
Subordinated Loan Agreement Note [Member] | ||||
Debt Instrument, Face Amount | $ 5,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||
Subordinated Term Note Due 2030 [Member] | ||||
Debt Instrument, Face Amount | $ 5,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |||
Debt Issuance Costs, Net, Total | $ 7 | $ 9 | ||
Subordinated Term Note Due 2030 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.10% |
Note 10 - Junior Subordinated_2
Note 10 - Junior Subordinated Debt (Details Textual) - USD ($) $ in Millions | Jul. 31, 2006 | Jun. 17, 2004 | Dec. 31, 2021 | Dec. 31, 2020 |
First National (VA) Statutory Trust II [Member] | ||||
Proceeds from Issuance of Trust Preferred Securities | $ 5 | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.82% | 2.83% | ||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust, Total | $ 5.2 | |||
First National (VA) Statutory Trust III [Member] | ||||
Proceeds from Issuance of Trust Preferred Securities | $ 4 | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.81% | 1.83% | ||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust, Total | $ 4.1 |
Note 11 - Income Taxes - Net De
Note 11 - Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for loan losses | $ 1,199 | $ 1,572 |
Acquisition accounting adjustments, net | 822 | 0 |
Post-retirement benefits | 156 | 101 |
Core deposit intangible | 309 | 381 |
Unvested stock-based compensation | 45 | 31 |
Reserve for letter of credit losses | 66 | 0 |
Limited partnership investments | 8 | 8 |
Lease liability | 60 | 72 |
Housing tax credit | 24 | 0 |
Unrealized loss on securities available for sale | 118 | 0 |
NOL carryover - acquired from Fincastle | 1,548 | 0 |
Loan origination fees, net | 183 | 328 |
Total deferred tax assets | 4,538 | 2,493 |
Depreciation | 750 | 663 |
Right of use asset | 61 | 73 |
Housing equity fund | 12 | 0 |
Unrealized gains on securities available for sale | 0 | 813 |
Other real estate owned | 158 | 0 |
Cash flow hedges | 198 | 91 |
Total deferred tax liabilities | 1,179 | 1,640 |
Net deferred tax assets | $ 3,359 | $ 853 |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense | $ 4,268 | $ 2,972 |
Deferred income tax benefit | (1,682) | (923) |
Income Tax Expense (Benefit), Total | $ 2,586 | $ 2,049 |
Note 11 - Income Taxes - Inco_2
Note 11 - Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Computed tax expense at statutory federal rate | $ 2,718 | $ 2,290 |
Merger expenses | 165 | 0 |
Other | 28 | 10 |
Tax-exempt interest and dividend income | (214) | (153) |
Income from bank owned life insurance | (111) | (98) |
Income Tax Expense (Benefit), Total | $ 2,586 | $ 2,049 |
Note 12 - Funds Restrictions _2
Note 12 - Funds Restrictions and Reserve Balance (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Aggregate Amount of Unrestricted Funds Transferred from Bank | $ 13,400 | |
Aggregate Amount of Daily Average Deposit | $ 0 | $ 0 |
Note 13 - Benefit Plans (Detail
Note 13 - Benefit Plans (Details Textual) $ in Thousands | Mar. 15, 2019 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 1.00% | ||
Defined Contribution Plan, Employer Matching Contribution for Employee's Contribution Between Two and Six Percent, Percent of Match | 50.00% | ||
Defined Contribution Plan, Service Hours Required by Eligible Employees to Receive Additional Contributions | 1,000 | ||
Defined Contribution Plan, Minimum Age for Eligibility (Year) | 19 years | ||
Defined Contribution Plan, Employer Matching Contribution, Vesting Period (Year) | 2 years | ||
The 401(k) Plan [Member] | |||
Defined Contribution Plan, Cost | $ 965 | $ 815 | |
Supplemental Employee Retirement Plan [Member] | |||
Defined Contribution Plan, Cost | $ 264 | $ 264 | |
Defined Contribution Plan, Number of Employees | 3 | ||
Defined Contribution Plan, Retirement Benefits Payable, Number of Monthly Payments | 180 | ||
Minimum [Member] | |||
Defined Contribution Plan, Stated Percentage of Employees Contribution | 2.00% | ||
Maximum [Member] | |||
Defined Contribution Plan, Stated Percentage of Employees Contribution | 6.00% |
Note 14 - Earnings Per Common_3
Note 14 - Earnings Per Common Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 10,359 | $ 8,858 |
Weighted average shares outstanding – basic (in shares) | 5,550,589 | 4,878,139 |
Potentially dilutive common shares – restricted stock units (in shares) | 8,492 | 2,127 |
Weighted average shares outstanding – diluted (in shares) | 5,559,081 | 4,880,266 |
Basic (in dollars per share) | $ 1.87 | $ 1.82 |
Diluted (in dollars per share) | $ 1.86 | $ 1.82 |
Note 15 - Commitments and Unf_3
Note 15 - Commitments and Unfunded Credits (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amount of Locked Rate Commitments for Mortgage Loans | $ 4,600 | |
Access Deposit in Other Commercial Banks | 22 | |
Financing Receivable, Held-for-Sale | $ 0 | $ 245 |
Note 15 - Commitments and Unf_4
Note 15 - Commitments and Unfunded Credits - Financial Instruments Representing Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments to Extend Credit [Member] | ||
Contract amounts represent credit risk | $ 161,428 | $ 114,892 |
Standby Letters of Credit [Member] | ||
Contract amounts represent credit risk | $ 18,904 | $ 10,675 |
Note 16 - Transactions with R_2
Note 16 - Transactions with Related Parties (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Leases Receivable, Related Parties, Ending Balance | $ 1.6 | $ 1.3 |
Loans and Leases Receivable, Related Parties, Additions | 9.2 | |
Loans and Leases Receivable, Related Parties, Proceeds | 8.9 | |
Deposit Related Party | 17.3 | $ 6.9 |
The Bank of Fincastle [Member] | ||
Loans and Leases Receivable, Related Parties, Additions | $ 9.2 |
Note 17 - Lease Commitments (De
Note 17 - Lease Commitments (Details Textual) | Dec. 31, 2021 |
Number of Leases | 8 |
Leases With Option to Extend the Lease [Member] | |
Number of Leases | 6 |
Note 17 - Lease Commitments - O
Note 17 - Lease Commitments - Operating Lease Right-of-use Asset and Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Assets [Member] | ||
Operating lease right-of-use asset | $ 290 | $ 347 |
Accrued Interest Payable and Other Liabilities [Member] | ||
Operating lease liability | $ 284 | $ 341 |
Note 17 - Lease Commitments - S
Note 17 - Lease Commitments - Schedule of Lease Cost and Additional Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Weighted average remaining lease term, in years (Year) | 2 years 9 months 18 days | 3 years 2 months 12 days | |
Weighted average discount rate | 2.65% | 1.72% | |
Operating lease expense | $ 154 | $ 135 | |
Short-term lease expense | 14 | 2 | |
Total lease expense (1) | [1] | 168 | 137 |
Cash paid for amounts included in lease liability | $ 156 | $ 138 | |
[1] | Included in occupancy expense in the Company's consolidated statements of income. |
Note 17 - Lease Commitments -_2
Note 17 - Lease Commitments - Schedule of Undiscounted Cash Flows that Contribute to the Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Twelve months ending December 31, 2022 | $ 144 | |
Twelve months ending December 31, 2023 | 72 | |
Twelve months ending December 31, 2024 | 46 | |
Twelve months ending December 31, 2025 | 27 | |
Twelve months ending December 31, 2026 | 0 | |
Total undiscounted cash flows | 289 | |
Less: discount | (5) | |
Accrued Interest Payable and Other Liabilities [Member] | ||
Operating lease liability | $ 284 | $ 341 |
Note 18 - Dividend Reinvestme_2
Note 18 - Dividend Reinvestment Plan (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Quoted Prices Preceding Dividend Payment Date Period (Day) | 10 days | |
Stock Issued During Period, Shares, Dividend Reinvestment Plan (in shares) | 7,861 | 9,449 |
Note 19 - Fair Value Measurem_3
Note 19 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Held for Sale [Member] | Fair Value, Nonrecurring [Member] | ||
Assets, Fair Value Adjustment | $ 0 | $ 0 |
Note 19 - Fair Value Measurem_4
Note 19 - Fair Value Measurements - Balances of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair value, available for sale securities | $ 289,495 | $ 289,495 | $ 140,225 |
Fair Value, Recurring [Member] | |||
Fair value, available for sale securities | 289,495 | 140,225 | |
Derivatives - cash flow hedges | 941 | 431 | |
Assets, Fair Value | 290,436 | 140,656 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair value, available for sale securities | 0 | 0 | |
Derivatives - cash flow hedges | 0 | 0 | |
Assets, Fair Value | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair value, available for sale securities | 289,495 | 140,225 | |
Derivatives - cash flow hedges | 941 | 431 | |
Assets, Fair Value | 290,436 | 140,656 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair value, available for sale securities | 0 | 0 | |
Derivatives - cash flow hedges | 0 | 0 | |
Assets, Fair Value | 0 | 0 | |
US Treasury Securities [Member] | |||
Fair value, available for sale securities | 39,658 | ||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | |||
Fair value, available for sale securities | 39,658 | ||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair value, available for sale securities | 0 | ||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair value, available for sale securities | 39,658 | ||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair value, available for sale securities | 0 | ||
US Agency and Mortgage-backed Securities [Member] | |||
Fair value, available for sale securities | $ 176,379 | 101,598 | |
US Agency and Mortgage-backed Securities [Member] | Fair Value, Recurring [Member] | |||
Fair value, available for sale securities | 176,379 | 101,598 | |
US Agency and Mortgage-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair value, available for sale securities | 0 | 0 | |
US Agency and Mortgage-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair value, available for sale securities | 176,379 | 101,598 | |
US Agency and Mortgage-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair value, available for sale securities | 0 | 0 | |
Municipal Bonds [Member] | Fair Value, Recurring [Member] | |||
Fair value, available for sale securities | 71,438 | 38,627 | |
Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair value, available for sale securities | 0 | 0 | |
Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair value, available for sale securities | 71,438 | 38,627 | |
Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair value, available for sale securities | 0 | $ 0 | |
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | |||
Fair value, available for sale securities | 2,020 | ||
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair value, available for sale securities | 0 | ||
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair value, available for sale securities | 2,020 | ||
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair value, available for sale securities | $ 0 |
Note 19 - Fair Value Measurem_5
Note 19 - Fair Value Measurements - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Impaired Loans [Member] - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets, Fair Value | $ 1,454 | $ 3,595 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value | $ 1,454 | $ 3,595 |
Note 19 - Fair Value Measurem_6
Note 19 - Fair Value Measurements - Quantitative Information About Level 3 Fair Value Measurements (Details) - Impaired Loans [Member] - Fair Value, Nonrecurring [Member] $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Assets, Fair Value | $ 1,454 | $ 3,595 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets, Fair Value | $ 1,454 | $ 3,595 | |
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Cost to Sell [Member] | |||
Measurement input | [1] | 0.0650 | 0.1000 |
Fair Value, Inputs, Level 3 [Member] | Valuation Technique, Property Appraisals [Member] | |||
Assets, Fair Value | $ 1,454 | $ 2,205 | |
[1] | Unobservable inputs were weighted by the relative fair value of the instruments. |
Note 19 - Fair Value Measurem_7
Note 19 - Fair Value Measurements - Carrying Values and Estimated Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair value, available for sale securities | $ 289,495 | $ 289,495 | $ 140,225 |
Securities held to maturity | 33,441 | ||
Restricted securities | 1,813 | 1,875 | |
Bank owned life insurance | 24,294 | 17,916 | |
Reported Value Measurement [Member] | |||
Cash and short-term investments | 176,006 | 127,297 | |
Fair value, available for sale securities | 289,495 | 140,225 | |
Securities held to maturity | 33,441 | 14,234 | |
Restricted securities | 1,813 | 1,875 | |
Loans held for sale | 0 | 245 | |
Loans, net | 819,408 | 622,429 | |
Bank owned life insurance | 24,294 | 17,916 | |
Accrued interest receivable | 3,903 | 2,717 | |
Derivatives - cash flow hedges | 941 | 431 | |
Deposits | 1,248,752 | 842,461 | |
Subordinated debt | 9,993 | 9,991 | |
Junior subordinated debt | 9,279 | 9,279 | |
Accrued interest payable | 152 | 134 | |
Estimate of Fair Value Measurement [Member] | |||
Cash and short-term investments | 176,006 | 127,297 | |
Fair value, available for sale securities | 289,495 | 140,225 | |
Securities held to maturity | 33,617 | 14,743 | |
Restricted securities | 1,813 | 1,875 | |
Loans held for sale | 0 | 245 | |
Loans, net | 827,248 | 633,638 | |
Bank owned life insurance | 24,294 | 17,916 | |
Accrued interest receivable | 3,903 | 2,717 | |
Derivatives - cash flow hedges | 941 | 431 | |
Deposits | 1,248,287 | 843,418 | |
Subordinated debt | 8,932 | 10,304 | |
Junior subordinated debt | 8,145 | 10,364 | |
Accrued interest payable | 152 | 134 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Cash and short-term investments | 176,006 | 127,297 | |
Fair value, available for sale securities | 0 | 0 | |
Securities held to maturity | 0 | 0 | |
Restricted securities | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Bank owned life insurance | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Derivatives - cash flow hedges | 0 | 0 | |
Deposits | 0 | 0 | |
Subordinated debt | 0 | 0 | |
Junior subordinated debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Cash and short-term investments | 0 | 0 | |
Fair value, available for sale securities | 289,495 | 140,225 | |
Securities held to maturity | 33,617 | 13,138 | |
Restricted securities | 1,813 | 1,875 | |
Loans held for sale | 0 | 245 | |
Loans, net | 0 | 0 | |
Bank owned life insurance | 24,294 | 17,916 | |
Accrued interest receivable | 3,903 | 2,717 | |
Derivatives - cash flow hedges | 941 | 431 | |
Deposits | 1,103,186 | 742,264 | |
Subordinated debt | 0 | 0 | |
Junior subordinated debt | 0 | 0 | |
Accrued interest payable | 152 | 134 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Cash and short-term investments | 0 | 0 | |
Fair value, available for sale securities | 0 | 0 | |
Securities held to maturity | 0 | 1,605 | |
Restricted securities | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 827,248 | 633,638 | |
Bank owned life insurance | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Derivatives - cash flow hedges | 0 | 0 | |
Deposits | 145,101 | 101,154 | |
Subordinated debt | 8,932 | 10,304 | |
Junior subordinated debt | 8,145 | 10,364 | |
Accrued interest payable | $ 0 | $ 0 |
Note 20 - Regulatory Matters (D
Note 20 - Regulatory Matters (Details Textual) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Banking Regulation, Capital Conservation Buffer, Capital Conserved, Minimum | 0.0250 | 0.0250 |
Capital Conservation Buffer Percentage, Maintained at Bank | 6.76% | 7.82% |
Note 20 - Regulatory Matters -
Note 20 - Regulatory Matters - Comparison of Capital of Company and Bank with Minimum Regulatory Guidelines (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Total Capital (to Risk-Weighted Assets), actual amount | $ 125,934 | $ 91,243 | |
Total Capital (to Risk-Weighted Assets), actual ratio | 0.1476 | 0.1582 | |
Total Capital (to Risk-Weighted Assets), minimum capital requirement amount | $ 68,237 | $ 46,129 | |
Total Capital (to Risk-Weighted Assets), minimum capital requirement ratio | 0.0800 | 0.0800 | |
Total Capital (to Risk-Weighted Assets), minimum to be well capitalized under prompt corrective action provisions, amount | $ 85,296 | $ 57,661 | |
Total Capital (to Risk-Weighted Assets), minimum to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 | |
Tier 1 Capital (to Risk-Weighted Assets), actual amount | $ 120,224 | 84,032 | |
Tier 1 Capital (to Risk-Weighted Assets), actual ratio | 0.1409 | 0.1457 | |
Tier 1 Capital (to Risk-Weighted Assets), minimum capital requirement amount | $ 51,178 | $ 34,597 | |
Tier 1 Capital (to Risk-Weighted Assets), minimum capital requirement ratio | 0.0600 | 0.0600 | |
Tier 1 Capital (to Risk-Weighted Assets), minimum to be well capitalized under prompt corrective action provisions, amount | $ 68,237 | $ 46,129 | |
Tier 1 Capital (to Risk-Weighted Assets), minimum to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 | |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), actual amount | $ 120,224 | 84,032 | |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), actual ratio | 0.1409 | 0.1457 | |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), minimum capital requirement amount | $ 38,383 | $ 25,948 | |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), minimum capital requirement ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), minimum to be well capitalized under prompt corrective action provisions, amount | $ 55,442 | $ 37,480 | |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), minimum to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% | |
Tier 1 Capital (to Average Assets), actual amount | $ 120,224 | $ 84,032 | |
Tier 1 Capital (to Average Assets), actual ratio | 0.0882 | 0.0880 | |
Tier 1 Capital (to Average Assets), minimum capital requirement amount | $ 54,497 | $ 38,187 | |
Tier 1 Capital (to Average Assets), minimum capital requirement ratio | 0.0400 | 0.0400 | |
Tier 1 Capital (to Average Assets), minimum to be well capitalized under prompt corrective action provisions, amount | $ 68,121 | $ 47,733 | |
Tier 1 Capital (to Average Assets), minimum to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Note 21 - Accumulated Other C_3
Note 21 - Accumulated Other Comprehensive Income (Loss) - Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 84,916 | $ 77,219 |
Reclassification adjustment | (29) | (32) |
Change in fair value of cash flow hedges, net of tax | 403 | 340 |
Total other comprehensive (loss) income | (3,100) | 2,674 |
Balance | 117,039 | 84,916 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||
Balance | 3,058 | 724 |
Unrealized holding gains, net of tax | (3,474) | 2,366 |
Reclassification adjustment | (29) | (32) |
Change in fair value of cash flow hedges, net of tax | 0 | 0 |
Total other comprehensive (loss) income | (3,503) | 2,334 |
Balance | (445) | 3,058 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Balance | 340 | 0 |
Unrealized holding gains, net of tax | 0 | 0 |
Reclassification adjustment | 0 | 0 |
Change in fair value of cash flow hedges, net of tax | 403 | 340 |
Total other comprehensive (loss) income | 403 | 340 |
Balance | 743 | 340 |
AOCI Attributable to Parent [Member] | ||
Balance | 3,398 | 724 |
Unrealized holding gains, net of tax | (3,474) | 2,366 |
Reclassification adjustment | (29) | (32) |
Change in fair value of cash flow hedges, net of tax | 403 | 340 |
Total other comprehensive (loss) income | (3,100) | 2,674 |
Balance | $ 298 | $ 3,398 |
Note 21 - Accumulated Other C_4
Note 21 - Accumulated Other Comprehensive Income (Loss) - Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Details) (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification adjustment, tax | $ 8 | $ 8 |
Change in fair value of cash flow hedges, tax | 107 | 91 |
Reclassification adjustment, tax | (8) | (8) |
AOCI Attributable to Parent [Member] | ||
Unrealized holding gains, tax | (923) | 629 |
Reclassification adjustment, tax | 8 | (8) |
Change in fair value of cash flow hedges, tax | 107 | 91 |
Reclassification adjustment, tax | $ (8) | $ 8 |
Note 21 - Accumulated Other C_5
Note 21 - Accumulated Other Comprehensive Income (Loss) - Reclassifications from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allocated income tax benefit | $ 2,586 | $ 2,049 |
Net income | 10,359 | 8,858 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Net securities gains reclassified into earnings | (37) | (40) |
Allocated income tax benefit | 8 | 8 |
Net income | $ (29) | $ (32) |
Note 22 - Stock Compensation _3
Note 22 - Stock Compensation Plans (Details Textual) - USD ($) $ in Thousands | Oct. 13, 2021 | Jul. 01, 2021 | Feb. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | May 13, 2014 |
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 7,000 | 3,000 | 13,094 | 23,094 | ||
Share-based Payment Arrangement, Expense | $ 226 | $ 240 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 2 years | |||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 236 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years | |||||
Restricted Stock Units (RSUs) [Member] | Vesting Immediately [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 2,026 | |||||
Restricted Stock Units (RSUs) [Member] | Vesting One Half Each Year for Two Years [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 4,040 | |||||
Restricted Stock Units (RSUs) [Member] | Vesting on Fifth Anniversary of Grant Date [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 6,000 | 7,028 | ||||
Restricted Stock Units (RSUs) [Member] | Vesting on February 23 Each Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 1,500 | |||||
Restricted Stock Units (RSUs) [Member] | Vesting on Third Anniversary of Grant Date [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 1,000 | |||||
Board of Directors [Member] | Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 6,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) | 6,000 | |||||
Share-based Payment Arrangement, Expense | $ 127 | $ 50 | ||||
First National Corporation 2014 Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 240,000 |
Note 22 - Stock Compensation _4
Note 22 - Stock Compensation Plans - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | Oct. 13, 2021 | Jul. 01, 2021 | Feb. 23, 2021 | Dec. 31, 2021 |
Unvested, Balance (in shares) | 15,858 | |||
Unvested, weighted average grant date fair value, balance (in dollars per share) | $ 20.40 | |||
Granted, shares (in shares) | 7,000 | 3,000 | 13,094 | 23,094 |
Granted, weighted average grant date fair value (in dollars per share) | $ 19.39 | |||
Vested, shares (in shares) | (8,073) | |||
Vested, weighted average grant date fair value (in dollars per share) | $ 19.84 | |||
Forfeited, shares (in shares) | (98) | |||
Forfeited, weighted average grant date fair value (in dollars per share) | $ 18.41 | |||
Unvested, Balance (in shares) | 30,781 | |||
Unvested, weighted average grant date fair value, balance (in dollars per share) | $ 19.79 |
Note 23 - Revenue Recognition -
Note 23 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Noninterest income | $ 9,019 | $ 7,493 |
Noninterest income (out-of-scope of Topic 606) | 1,168 | 761 |
Total noninterest income | 10,187 | 8,254 |
Service Charges on Deposit Accounts [Member] | ||
Noninterest income | 2,061 | 2,028 |
ATM and Check Card Fees [Member] | ||
Noninterest income | 2,930 | 2,314 |
Wealth Management Fees [Member] | ||
Noninterest income | 2,712 | 2,208 |
Mortgage Banking [Member] | ||
Noninterest income | 539 | 356 |
Fees for Other Customer Services [Member] | ||
Noninterest income | $ 777 | $ 587 |
Note 24 - Derivative Financia_3
Note 24 - Derivative Financial Instruments (Details Textual) $ in Millions | Apr. 21, 2020USD ($) |
Interest Rate Swap [Member] | |
Derivative, Number of Instruments Held, Total | 2 |
Interest Rate Swap One [Member] | |
Derivative, Notional Amount | $ 5 |
Derivative, Fixed Interest Rate | 0.79% |
Interest Rate Swap Two [Member] | |
Derivative, Notional Amount | $ 4 |
Derivative, Fixed Interest Rate | 0.82% |
Note 24 - Derivative Financia_4
Note 24 - Derivative Financial Instruments - Derivative Instruments Components (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Notional amount | $ 9,000 | $ 9,000 | |
Derivative Assets | 941 | 431 | |
Derivative liabilities | 0 | 0 | |
Interest rate swap contracts | [1] | $ 0 | $ 0 |
[1] | Collateral pledged may be comprised of cash or securities. |
Note 25 - Acquisitions (Details
Note 25 - Acquisitions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2021 | Jul. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 |
Business Combination, Consideration Transferred, Total | $ 117,566 | ||||||||
Payments to Acquire Businesses, Gross | 90,497 | ||||||||
Assets, Total | $ 1,389,437 | 1,389,437 | $ 950,932 | ||||||
Loans and Leases Receivable, Net Amount, Total | 819,408 | 819,408 | 622,429 | ||||||
Deposits, Total | 1,248,752 | 1,248,752 | 842,461 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 352,449 | 352,449 | |||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 9,826 | $ 7,660 | |||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic (in dollars per share) | $ 1.77 | $ 1.57 | |||||||
The Bank of Fincastle [Member] | |||||||||
Assets, Total | $ 267,900 | ||||||||
Loans and Leases Receivable, Net Amount, Total | 194,500 | ||||||||
Deposits, Total | 236,300 | ||||||||
Smartbank [Member] | |||||||||
Legal Fees | $ 629 | ||||||||
The Bank of Fincastle [Member] | |||||||||
Business Combination, Consideration Transferred, Total | $ 33,821 | ||||||||
Payments to Acquire Businesses, Gross | $ 6,752 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | 1,348,065 | ||||||||
Business Combination, Acquisition Related Costs | $ 3,400 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 270,497 | ||||||||
The Bank of Fincastle [Member] | Forecast [Member] | |||||||||
Business Combination, Acquisition Related Costs | $ 20,000 | $ 3,400 | |||||||
Smartbank [Member] | |||||||||
Business Combination, Consideration Transferred, Total | $ 83,745 | ||||||||
Payments to Acquire Businesses, Gross | 83,745 | ||||||||
Business Combination, Acquisition Related Costs | 101,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $ 81,952 | ||||||||
Smartbank [Member] | Merger Related Expenses, Net of Tax [Member] | |||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 3,400 | $ 3,400 | |||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic (in dollars per share) | $ (0.61) | $ (0.61) | |||||||
Fincastle and SmartBank [Member] | |||||||||
Business Combination, Acquisition Related Costs | $ 3,500 | ||||||||
Fincastle and SmartBank [Member] | Forecast [Member] | |||||||||
Business Combination, Acquisition Related Costs | $ 20 |
Note 25 - Acquisitions - Consid
Note 25 - Acquisitions - Consideration Paid and the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash paid | $ 90,497 | |||
Common stock issued | 27,069 | |||
Total purchase price | 117,566 | |||
Cash and due from banks | 46,158 | |||
Federal funds sold | 120 | |||
Securities, AFS, at fair value | 12,112 | |||
Restricted securities | 183 | |||
Loans, net of ALLL | 276,254 | |||
Bank premises and equipment | 3,643 | |||
Accrued interest receivable | 1,731 | |||
OREO | 2,137 | |||
BOLI | 5,852 | |||
Other assets | 4,259 | |||
Total identifiable assets acquired | 352,449 | |||
Demand deposits & savings accounts | 184,535 | |||
Time deposits | 52,246 | |||
Accrued expenses and other liabilities | 1,132 | |||
Total identifiable liabilities assumed | 237,913 | |||
Net identifiable assets acquired at fair value | 114,536 | |||
Goodwill resulting from acquisitions | $ 3,030 | $ 0 | ||
The Bank of Fincastle [Member] | ||||
Cash paid | $ 6,752 | |||
Common stock issued | 27,069 | |||
Total purchase price | 33,821 | |||
Cash and due from banks | 46,158 | |||
Federal funds sold | 120 | |||
Securities, AFS, at fair value | 12,112 | |||
Restricted securities | 183 | |||
Loans, net of ALLL | 194,617 | |||
Bank premises and equipment | 3,471 | |||
Accrued interest receivable | 1,588 | |||
OREO | 2,137 | |||
BOLI | 5,852 | |||
Other assets | 4,259 | |||
Total identifiable assets acquired | 270,497 | |||
Demand deposits & savings accounts | 184,535 | |||
Time deposits | 52,246 | |||
Accrued expenses and other liabilities | 1,132 | |||
Total identifiable liabilities assumed | 237,913 | |||
Net identifiable assets acquired at fair value | 32,584 | |||
Goodwill resulting from acquisitions | $ 1,237 | |||
Smartbank [Member] | ||||
Cash paid | $ 83,745 | |||
Common stock issued | 0 | |||
Total purchase price | 83,745 | |||
Cash and due from banks | 0 | |||
Federal funds sold | 0 | |||
Securities, AFS, at fair value | 0 | |||
Restricted securities | 0 | |||
Loans, net of ALLL | 81,637 | |||
Bank premises and equipment | 172 | |||
Accrued interest receivable | 143 | |||
OREO | 0 | |||
BOLI | 0 | |||
Other assets | 0 | |||
Total identifiable assets acquired | 81,952 | |||
Demand deposits & savings accounts | 0 | |||
Time deposits | 0 | |||
Accrued expenses and other liabilities | 0 | |||
Total identifiable liabilities assumed | 0 | |||
Net identifiable assets acquired at fair value | 81,952 | |||
Goodwill resulting from acquisitions | $ 1,793 |
Note 25 - Acquisitions - Unaudi
Note 25 - Acquisitions - Unaudited Pro Forma Amounts (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Total revenues (net interest income plus noninterest income) | $ 42,116 | $ 43,234 |
Net income | $ 9,826 | $ 7,660 |
Net income per share, basic (in dollars per share) | $ 1.77 | $ 1.57 |
Net income per share, diluted (in dollars per share) | $ 1.77 | $ 1.57 |
Note 26 - Subsequent Events (De
Note 26 - Subsequent Events (Details Textual) - Subordinated Loan Agreement Note [Member] $ in Millions | Oct. 30, 2015USD ($) |
Debt Instrument, Face Amount | $ 5 |
Debt Instrument, Interest Rate, Stated Percentage | 6.75% |
Debt Instrument, Maturity Date | Oct. 1, 2025 |
Note 27 - Parent Company Only_3
Note 27 - Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash | $ 18,725 | $ 13,115 | |
Other assets | 13,642 | 4,656 | |
Total assets | 1,389,437 | 950,932 | |
Subordinated debt | 9,993 | 9,991 | |
Junior subordinated debt | 9,279 | 9,279 | |
Total liabilities | 1,272,398 | 866,016 | |
Preferred stock | 0 | 0 | |
Common stock | 7,785 | 6,075 | |
Surplus | 31,966 | 6,151 | |
Retained earnings | 76,990 | 69,292 | |
Accumulated other comprehensive income, net | 298 | 3,398 | |
Total shareholders’ equity | 117,039 | 84,916 | $ 77,219 |
Total liabilities and shareholders’ equity | 1,389,437 | 950,932 | |
Parent Company [Member] | |||
Cash | 7,303 | 16,440 | |
Investment in subsidiaries, at cost, plus undistributed net income | 122,964 | 87,109 | |
Other assets | 6,256 | 740 | |
Total assets | 136,523 | 104,289 | |
Subordinated debt | 9,993 | 9,991 | |
Junior subordinated debt | 9,279 | 9,279 | |
Other liabilities | 212 | 103 | |
Total liabilities | 19,484 | 19,373 | |
Preferred stock | 0 | 0 | |
Common stock | 7,785 | 6,075 | |
Surplus | 31,966 | 6,151 | |
Retained earnings | 76,990 | 69,292 | |
Accumulated other comprehensive income, net | 298 | 3,398 | |
Total shareholders’ equity | 117,039 | 84,916 | |
Total liabilities and shareholders’ equity | $ 136,523 | $ 104,289 |
Note 27 - Parent Company Only_4
Note 27 - Parent Company Only Financial Statements - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense | $ 2,304 | $ 3,383 |
Supplies | 509 | 394 |
Legal and professional fees | 2,537 | 1,152 |
Data processing | 2,156 | 759 |
Allocated income tax benefit | 2,586 | 2,049 |
Net income | 10,359 | 8,858 |
Parent Company [Member] | ||
Dividends from subsidiary | 6,000 | 6,600 |
Total income | 6,000 | 6,600 |
Interest expense | 889 | 794 |
Supplies | 56 | 3 |
Legal and professional fees | 107 | 215 |
Data processing | 29 | 29 |
Management fee-subsidiary | 305 | 294 |
Other expense | 104 | 80 |
Total expense | 1,490 | 1,415 |
Income before allocated tax benefits and undistributed income of subsidiary | 4,510 | 5,185 |
Allocated income tax benefit | 312 | 297 |
Income before equity in undistributed income of subsidiary | 4,822 | 5,482 |
Equity in undistributed income of subsidiary | 5,537 | 3,376 |
Net income | $ 10,359 | $ 8,858 |
Note 27 - Parent Company Only_5
Note 27 - Parent Company Only Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 10,359 | $ 8,858 |
Stock-based compensation | 354 | 290 |
Amortization of debt issuance costs | 2 | 18 |
(Increase) decrease in other assets | 1,714 | (828) |
Increase in other liabilities | (1,043) | 2,159 |
Net cash (used in) provided by operating activities | 7,868 | 15,091 |
Net cash used in investing activities | (126,304) | (70,486) |
Proceeds from subordinated debt, net of issuance costs | 0 | 4,990 |
Cash dividends paid on common stock, net of reinvestment | 2,505 | 2,007 |
Net cash (used in) provided by financing activities | 167,145 | 136,907 |
(Decrease) increase in cash and cash equivalents | 48,709 | 81,512 |
Beginning | 127,297 | 45,785 |
Ending | 176,006 | 127,297 |
Parent Company [Member] | ||
Net income | 10,359 | 8,858 |
Equity in undistributed income of subsidiary | 5,537 | 3,376 |
Stock-based compensation | 354 | 290 |
Amortization of debt issuance costs | 2 | 18 |
(Increase) decrease in other assets | 5,020 | (3) |
Increase in other liabilities | 1 | 4 |
Net cash (used in) provided by operating activities | 159 | 5,797 |
Net cash used in investing activities | (6,752) | 0 |
Proceeds from subordinated debt, net of issuance costs | 0 | 4,990 |
Cash dividends paid on common stock, net of reinvestment | 2,505 | 2,007 |
Repurchase of common stock | 39 | 2,118 |
Net cash (used in) provided by financing activities | (2,544) | 865 |
(Decrease) increase in cash and cash equivalents | (9,137) | 6,662 |
Beginning | 16,440 | 9,778 |
Ending | 7,303 | 16,440 |
Parent Company [Member] | Fincastle and SmartBank [Member] | ||
Net cash paid in acquisition of The Bank of Fincastle | $ (6,752) | $ 0 |