Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 27, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001657642 | ||
Entity Registrant Name | Skyline Bankshares, Inc. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 333-209052 | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 47-5486027 | ||
Entity Address, Address Line One | 101 Jacksonville Circle | ||
Entity Address, City or Town | Floyd | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 24091 | ||
City Area Code | 540 | ||
Local Phone Number | 745-4191 | ||
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 | $ 64,203,200 | ||
Entity Common Stock, Shares Outstanding | 5,607,416 | ||
Auditor Name | Elliott Davis, PLLC | ||
Auditor Firm ID | 149 | ||
Auditor Location | Charlotte, North Carolina |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 19,299 | $ 14,349 |
Interest-bearing deposits with banks | 10,802 | 5,986 |
Federal funds sold | 960 | 95,311 |
Investment securities available for sale | 135,151 | 129,715 |
Restricted equity securities | 1,950 | 1,971 |
Loans, net of allowance for loan losses of $6,248 at December 31, 2022 and $5,677 at December 31, 2021 | 748,624 | 677,855 |
Cash value of life insurance | 22,484 | 18,750 |
Other real estate owned | 235 | 0 |
Properties and equipment, net | 31,753 | 30,856 |
Accrued interest receivable | 2,979 | 2,363 |
Core deposit intangible | 1,286 | 1,764 |
Goodwill | 3,257 | 3,257 |
Deferred tax assets, net | 5,744 | 1,122 |
Other assets | 13,210 | 12,549 |
Assets, Total | 997,734 | 995,848 |
Liabilities | ||
Noninterest-bearing | 310,510 | 298,107 |
Interest-bearing | 609,817 | 600,119 |
Total deposits | 920,327 | 898,226 |
Borrowings | 0 | 8,200 |
Accrued interest payable | 95 | 73 |
Other liabilities | 4,376 | 4,155 |
Liabilities, Total | 924,798 | 910,654 |
Commitments and contingencies (Note 18) | ||
Stockholders’ Equity | ||
Preferred stock, no par value; 5,000,000 shares authorized, none issued | 0 | 0 |
Common stock, no par value; 25,000,000 shares authorized, 5,617,416 and 5,606,216 issued and outstanding at December 31, 2022 and 2021, respectively | 0 | 0 |
Surplus | 33,613 | 33,588 |
Retained earnings | 62,229 | 53,745 |
Accumulated other comprehensive loss | (22,906) | (2,139) |
Stockholders' Equity Attributable to Parent, Ending Balance | 72,936 | 85,194 |
Liabilities and Equity, Total | $ 997,734 | $ 995,848 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for credit loss | $ 6,248 | $ 5,677 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, issued (in shares) | 5,617,416 | 5,606,216 |
Common stock, outstanding (in shares) | 5,617,416 | 5,606,216 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income | ||
Loans and fees on loans | $ 32,687 | $ 33,089 |
Interest-bearing deposits with banks | 788 | 88 |
Federal funds sold | 29 | 44 |
Interest on taxable securities | 2,716 | 1,372 |
Interest on nontaxable securities | 242 | 53 |
Dividends | 105 | 110 |
Interest and Dividend Income, Operating, Total | 36,567 | 34,756 |
Interest expense | ||
Deposits | 1,742 | 2,343 |
Interest on borrowings | 188 | 86 |
Interest Expense, Total | 1,930 | 2,429 |
Net interest income | 34,637 | 32,327 |
Provision for loan losses | 606 | 723 |
Net interest income after provision for loan losses | 34,031 | 31,604 |
Noninterest income | ||
Net realized gains (losses) on securities | (10) | 265 |
Increase in cash value of life insurance | 513 | 446 |
Life insurance income | 217 | 0 |
Other income | 61 | 649 |
Noninterest Income, Total | 6,257 | 6,568 |
Noninterest expenses | ||
Salaries and employee benefits | 14,823 | 14,680 |
Occupancy and equipment | 4,410 | 3,618 |
Data processing expense | 1,971 | 2,026 |
FDIC Assessments | 430 | 430 |
Advertising | 657 | 702 |
Bank franchise tax | 506 | 499 |
Director fees | 354 | 368 |
Professional fees | 684 | 639 |
Telephone expense | 482 | 390 |
Core deposit intangible amortization | 478 | 595 |
Other expense | 2,693 | 2,320 |
Noninterest Expense, Total | 27,488 | 26,267 |
Income before income taxes | 12,800 | 11,905 |
Income tax expense | 2,519 | 2,423 |
Net income | $ 10,281 | $ 9,482 |
Basic earnings per share (in dollars per share) | $ 1.84 | $ 1.59 |
Weighted average shares outstanding (in shares) | 5,588,394 | 5,967,751 |
Dividends declared per share (in dollars per share) | $ 0.32 | $ 0.27 |
Deposit Account [Member] | ||
Noninterest income | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,906 | $ 1,541 |
Financial Service, Other [Member] | ||
Noninterest income | ||
Revenue from Contract with Customer, Including Assessed Tax | 3,171 | 2,606 |
Mortgage Banking [Member] | ||
Noninterest income | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 399 | $ 1,061 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 10,281 | $ 9,482 |
Net change in pension reserve: | ||
Change in pension reserve during the year | (1,648) | 558 |
Tax related to change in pension reserve | 346 | (117) |
Unrealized losses on investment securities available for sale: | ||
Unrealized losses arising during the year | (24,650) | (2,340) |
Tax related to unrealized losses | 5,177 | 490 |
Reclassification of net realized (gains) losses during the year | 10 | (265) |
Tax related to net realized gains (losses) | (2) | 56 |
Total other comprehensive loss | (20,767) | (1,618) |
Total comprehensive income (loss) | $ (10,486) | $ 7,864 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2020 | 6,045,775 | ||||
Balance at Dec. 31, 2020 | $ 0 | $ 39,740 | $ 45,887 | $ (521) | $ 85,106 |
Net income | 0 | 0 | 9,482 | 0 | 9,482 |
Other comprehensive income (loss) | 0 | 0 | 0 | (1,618) | (1,618) |
Dividends paid | $ 0 | 0 | (1,624) | 0 | (1,624) |
Restricted stock Issued (in shares) | 14,500 | ||||
Restricted stock Issued | $ 0 | 0 | 0 | 0 | 0 |
Stock awards Issued (in shares) | 8,700 | ||||
Stock awards Issued | $ 0 | 0 | 0 | 0 | 0 |
Share-based compensation | $ 0 | 155 | 0 | 0 | 155 |
Common stock repurchased (in shares) | (462,759) | ||||
Common stock repurchased | $ 0 | (6,307) | 0 | 0 | (6,307) |
Balance (in shares) at Dec. 31, 2021 | 5,606,216 | ||||
Balance at Dec. 31, 2021 | $ 0 | 33,588 | 53,745 | (2,139) | 85,194 |
Net income | 0 | 0 | 10,281 | 0 | 10,281 |
Other comprehensive income (loss) | 0 | 0 | 0 | (20,767) | (20,767) |
Dividends paid | $ 0 | 0 | (1,797) | 0 | (1,797) |
Restricted stock Issued (in shares) | 14,500 | ||||
Restricted stock Issued | $ 0 | 0 | 0 | 0 | 0 |
Stock awards Issued (in shares) | 8,700 | ||||
Stock awards Issued | $ 0 | 0 | 0 | 0 | 0 |
Share-based compensation | $ 0 | 179 | 0 | 0 | 179 |
Common stock repurchased (in shares) | (12,000) | ||||
Common stock repurchased | $ 0 | (154) | 0 | 0 | (154) |
Balance (in shares) at Dec. 31, 2022 | 5,617,416 | ||||
Balance at Dec. 31, 2022 | $ 0 | $ 33,613 | $ 62,229 | $ (22,906) | $ 72,936 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Dividends paid per share (in dollars per share) | $ 0.32 | $ 0.27 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 10,281 | $ 9,482 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation | 1,690 | 1,492 |
Amortization of core deposit intangible | 478 | 595 |
Accretion of loan discount and deposit premium, net | (415) | (1,048) |
Provision for loan loss | 606 | 723 |
Deferred income taxes | 899 | 327 |
Net realized losses (gains) on securities | 10 | (265) |
Accretion of discount on securities, net of amortization of premiums | 236 | 360 |
Deferred compensation | 166 | 16 |
Share-based compensation | 179 | 155 |
Adjustment of carrying value of other real estate owned | 72 | 0 |
Losses on sale of properties and equipment | 6 | 8 |
Life insurance income | (217) | 0 |
Changes in assets and liabilities: | ||
Cash value of life insurance | (513) | (446) |
Accrued interest receivable | (616) | (8) |
Other assets | (2,123) | (1,424) |
Accrued interest payable | 22 | (51) |
Other liabilities | (131) | (363) |
Net cash provided by operating activities | 10,630 | 9,553 |
Cash flows from investing activities | ||
Purchases | (45,181) | (117,526) |
Sales | 2,507 | 8,619 |
Maturities/calls/paydowns | 12,352 | 9,999 |
Redemption of restricted equity securities | 21 | 445 |
Net increase in loans | (71,010) | (18,443) |
Purchases of life insurance contracts | (3,500) | 0 |
Proceeds from life insurance contracts | 496 | 0 |
Purchases of property and equipment | (3,795) | (5,825) |
Proceeds from sale of property and equipment | 895 | 60 |
Net cash used in investing activities | (107,215) | (122,671) |
Cash flows from financing activities | ||
Net increase in deposits | 22,151 | 142,806 |
Repayment of FHLB advances | (5,000) | (5,000) |
Advance on short-term line of credit | 150 | 3,200 |
Payment on short-term line of credit | (3,350) | 0 |
Common stock repurchased | (154) | (6,307) |
Dividends paid | (1,797) | (1,624) |
Net cash provided by financing activities | 12,000 | 133,075 |
Net (decrease) increase in cash and cash equivalents | (84,585) | 19,957 |
Cash and cash equivalents, beginning | 115,646 | 95,689 |
Cash and cash equivalents, ending | 31,061 | 115,646 |
Supplemental disclosure of cash flow information | ||
Interest paid | 1,908 | 2,480 |
Taxes paid | 1,218 | 2,273 |
Supplemental disclosure of noncash investing activities | ||
Effect on equity of change in net unrealized loss on available for sale securities | (19,465) | (2,059) |
Effect on equity of change in funded pension liability | (1,302) | 441 |
Transfer of bank property to other real estate owned | 307 | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 327 | $ 11 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1. Organization Skyline Bankshares, Inc. (formerly Parkway Acquisition Corp.) (the “Company”), is a bank holding company headquartered in Floyd, Virginia. The Company offers a wide range of retail and commercial banking services through its wholly-owned bank subsidiary, Skyline National Bank (the “Bank”). On January 1, 2023, The Company was incorporated as a Virginia corporation on November 2, 2015. November 6, 2015, July 1, 2016. March 13, 2017, On March 1, 2018, July 1, 2018. The Bank was organized under the laws of the United States in 1900 twenty-five Critical Accounting Policies Management believes the policies with respect to the methodology for the determination of the allowance for loan losses, and asset impairment judgments, such as the recoverability of intangible assets and other-than-temporary impairment of investment securities, involve a higher degree of complexity and require management to make difficult and subjective judgments that often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could cause reported results to differ materially. These critical policies and their application are periodically reviewed with the Audit Committee and the Board of Directors. Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank, which is wholly owned. All significant, intercompany transactions and balances have been eliminated in consolidation. Business Segments The Company reports its activities as a single business segment. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. Business Combinations Generally, acquisitions are accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, one one not No Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and foreclosed real estate losses, management obtains independent appraisals for significant properties. Substantially all of the Bank’s loan portfolio consists of loans in its market area. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate are susceptible to changes in local market conditions. The regional economy is diverse, but influenced to an extent by the manufacturing and agricultural segments. While management uses available information to recognize loan and foreclosed real estate losses, future additions to the allowances may may may The Company seeks strategies that minimize the tax effect of implementing their business strategies. As such, judgments are made regarding the ultimate consequence of long-term tax planning strategies, including the likelihood of future recognition of deferred tax benefits. The Company’s tax returns are subject to examination by both Federal and State authorities. Such examinations may Accounting for pension benefits, costs and related liabilities are developed using actuarial valuations. These valuations include key assumptions determined by management, including the discount rate and expected long-term rate of return on plan assets. Material changes in pension costs may Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes cash and amounts due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. Trading Securities The Company does not not Securities Held to Maturity Bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at amortized cost. The Company does not Securities Available for Sale Available for sale securities are reported at fair value and consist of mortgage-backed, U.S. government agencies, corporate, and state and municipal securities not Unrealized holding gains and losses, net of tax, on available for sale securities are reported as a net amount in a separate component of accumulated other comprehensive income. Realized gains and losses on the sale of available for sale securities are determined using the specific-identification method. The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity for discounts and the earlier of call date or maturity for premiums. Declines in the fair value of individual held to maturity and available for sale securities below cost that are other than temporary are reflected as write-downs of the individual securities to fair value. Related write-downs are included in earnings as realized losses. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal amount adjusted for any charge-offs and the allowance for loan losses. Loan origination costs are capitalized and recognized as an adjustment to yield over the life of the related loan. Interest is accrued and credited to income based on the principal amount outstanding. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may first Purchased Performing Loans no Purchased Credit-Impaired ( PCI ) Loans not may not 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 believes the uncollectability of a loan balance, or portion thereof, is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular 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 allowance consists of specific, general and unallocated components. The specific component is calculated on an individual basis for larger-balance, non-homogeneous loans, which are considered impaired. A specific allowance is established when the discounted cash flows, collateral value (less disposal costs), or observable market price of the impaired loan is lower than its carrying value. The specific component of the allowance for smaller- balance loans whose terms have been modified in a troubled debt restructuring (“TDR”) is calculated on a pooled basis considering historical experience adjusted for qualitative factors. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the 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, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not Troubled Debt Restructurings Under GAAP, the Bank is required to account for certain loan modifications or restructurings as “troubled debt restructurings” or "troubled debt restructured loans." In general, the modification or restructuring of a debt constitutes a troubled debt restructuring if the Bank for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that the Bank would not not not Operating, Accounting and Reporting Considerations related to COVID- 19 The COVID- 19 March 27, 2020. $2.2 19 not Accounting for Loan Modifications 4013 may 1 2 5 Paycheck Protection Program 7 December 27, 2020 2021 first second May 31, 2021. 4 Also, in response to the COVID- 19 March 22, 2020; April 7, 2020). not Accounting for Loan Modifications not may not 19 not 5 Past Due Reporting not not 19 not Nonaccrual Status and Charge-offs 19 not The Company offered short-term loan modifications to assist borrowers during the COVID- 19 six 4013 not 19 19. 4013 six 12 August 3, 2020, 19. 4013 4013. 1 19 2 not 30 December 31, 2019; 3 March 1, 2020, 60 December 31, 2020. December 31, 2020 January 1, 2022 4013 not Small Business Administration Paycheck Protection Program The SBA-PPP is one February 15, 2020, August 8, 2020. eight 24 As a qualified SBA lender, we were automatically authorized to originate SBA-PPP loans and began taking applications on April 3, 2020. 1 2.5 2 $10.0 1.0%, two five six 100% Due to the unique nature of these provisions, SBA-PPP loans have been disclosed as a separate loan class. Origination fees received by the SBA are capitalized into the carrying amount of the loans. The deferred fee income, net of origination costs, is recognized over the life of the loan as an adjustment to yield using the straight-line method. The allowance for loan losses for SBA-PPP loans originated during 2021 2020 zero Property and Equipment Land is carried at cost. Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed principally by the straight-line method over the following estimated useful lives: Years Buildings and improvements 10 - 40 Furniture and equipment 5 - 12 Other Real Estate Owned Other real estate owned represents properties acquired through, or in lieu of, loan foreclosure and former branch sites that have been closed and for which there are no Share-Based Compensation The Parkway Acquisition Corp. 2020 March 17, 2020 August 18, 2020. As of December 31, 2022, 15 Pension Plan Prior to the Cardinal merger, both Grayson National Bank (“Grayson”) and Bank of Floyd (“Floyd”) had qualified noncontributory defined benefit pension plans in place which covered substantially all of each bank’s employees. The benefits in each plan are primarily based on years of service and earnings. Both Grayson and Floyd plans were amended to freeze benefit accruals for all eligible employees prior to the effective date of the Cardinal merger. Grayson’s plan is a single-employer plan, the funded status of which is measured as the difference between the fair value of plan assets and the projected benefit obligation. Floyd’s plan is a multi-employer plan for accounting purposes and is a multiple-employer plan under the Employee Retirement Income Security Act of 1974 Transfers of Financial Assets Transfers of financial assets 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 Goodwill and Other Intangible Assets Goodwill arises from business combinations and is generally determined as the excess of fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquire, over the fair value of the nets assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not November 1 November 1, 2022, no Other intangible assets consist of core deposit intangibles that represent the value of long-term deposit relationships acquired in a business combination. Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired. The core deposit intangible as a result of the Cardinal merger, is amortized over an estimated useful life of twenty seven Cash Value of Life Insurance The Bank is owner and beneficiary of life insurance policies on certain current and former employees and directors. The Company records these policies in the consolidated balance sheets at cash surrender value, with changes recorded in noninterest income in the consolidated statements of income. Revenue Recognition Service Charges on Deposit Accounts - December 31, 2022 2021 Mortgage Origination Fees December 31, 2022 2021 Other Service Charges and Fees - ● ATM, Credit and Debit Card Fees - December 31, 2022 2021 ● Insurance and Investment - December 31, 2022 2021 Leases We have performed an evaluation of our leasing contracts and activities. We have developed our methodology to estimate the right-of use assets and lease liabilities, which is based on the present value of lease payments. There was not 8 Income Taxes Provision for income taxes is based on amounts reported in the statements of income (after exclusion of non-taxable income such as interest on state and municipal securities) and consists of taxes currently due plus deferred taxes on temporary differences in the recognition of income and expense for tax and financial statement purposes. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, not 50 not 50 not not not not Advertising Expense The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2022 2021 Basic Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends. For the years ended December 31, 2022 2021, no Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan which are also recognized as separate components of equity. The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows: (dollars in thousands) Unrealized Gains And Losses On Available for Sale Securities Defined Benefit Pension Items Total Balance, December 31, 2020 $ 582 $ (1,103 ) $ (521 ) Other comprehensive income (loss) before Reclassifications (1,850 ) 441 (1,409 ) Amounts reclassified from accumulated other comprehensive loss (209 ) - (209 ) Balance, December 31, 2021 $ (1,477 ) $ (662 ) $ (2,139 ) Balance, December 31, 2021 $ (1,477 ) $ (662 ) $ (2,139 ) Other comprehensive loss before Reclassifications (19,473 ) (1,302 ) (20,775 ) Amounts reclassified from accumulated other comprehensive loss 8 - 8 Balance, December 31, 2022 $ (20,942 ) $ (1,964 ) $ (22,906 ) Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under line of credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 12. Reclassification Certain reclassifications have been made to the prior years’ financial statements to place them on a comparable basis with the current presentation. Net income and stockholders’ equity previously reported were not Recent Accounting Pronouncements The following accounting standards may In June 2016, No. 2016 13, Financial Instruments Credit Losses (Topic 326 January 1, 2023. January 1, 2023 third December 31, 2022. 10 March 31, 2023. In January 2017, not 2 not December 15, 2022. January 1, 2017. In May 2019, 2016 13, December 15, 2022. not In November 2019, 2016 13. not 2016 13, December 15, 2022, 2016 13. not In November 2019, not December 15, 2022, In March 2020, March 12, 2020 December 31, 2022. not In August 2021, No. 33 10786, No. 33 10835, not In March 2022, No. 2022 02, Financial Instruments-Credit Losses (Topic 326 2022 02 2016 13 2016 13, 2022 02 December 15, 2022, not 2016 13, 2022 02 2016 13. 2016 13. may not In June 2022, December 15, 2023, not In December 2022, 848 December 31, 2022, December 31, 2024, not December 31, 2021, June 2023. not Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not |
Note 2 - Restrictions on Cash
Note 2 - Restrictions on Cash | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 2. The Bank is required to maintain vault cash on hand or on deposit with the Federal Reserve Bank based on the amount of certain customer deposits, mainly checking accounts. The Board of Governors of the Federal Reserve lowered the reserve requirement ratios on transaction accounts to zero percent effective March 26, 2020, December 31, 2022 December 31, 2021. |
Note 3 - Investment Securities
Note 3 - Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3. Investment securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost of securities and their approximate fair values at December 31 (dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value 2022 Available for sale: U.S. Treasury securities $ 4,980 $ - $ (146 ) $ 4,834 U.S. Government agencies 25,025 - (4,179 ) 20,846 Mortgage-backed securities 78,755 - (11,485 ) 67,270 Corporate securities 1,500 - - 1,500 State and municipal securities 51,400 16 (10,715 ) 40,701 $ 161,660 $ 16 $ (26,525 ) $ 135,151 2021 Available for sale: U.S. Government agencies $ 20,333 $ 7 $ (191 ) $ 20,149 Mortgage-backed securities 64,437 208 (1,334 ) 63,311 Corporate securities 1,500 - - 1,500 State and municipal securities 45,314 189 (748 ) 44,755 $ 131,584 $ 404 $ (2,273 ) $ 129,715 Restricted equity securities totaled $2.0 million at December 31, 2022 2021, may The following tables details unrealized losses and related fair values in the Company’s available for sale investment securities portfolios. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2022 2021. Less Than 12 Months 12 Months or More Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses 2022 Available for sale: U.S. Treasury securities $ 4,834 $ (146 ) $ - $ - $ 4,834 $ (146 ) U.S. Government agencies 8,563 (1,227 ) 12,282 (2,952 ) 20,845 (4,179 ) Mortgage-backed securities 27,796 (2,756 ) 39,467 (8,729 ) 67,263 (11,485 ) State and municipal securities 15,234 (2,633 ) 24,492 (8,082 ) 39,726 (10,715 ) Total securities available for sale $ 56,427 $ (6,762 ) $ 76,241 $ (19,763 ) $ 132,668 $ (26,525 ) 2021 Available for sale: U.S. Government agencies $ 15,091 $ (191 ) $ - $ - $ 15,091 $ (191 ) Mortgage-backed securities 51,990 (1,334 ) - - 51,990 (1,334 ) State and municipal securities 28,305 (589 ) 3,560 (159 ) 31,865 (748 ) Total securities available for sale $ 95,386 $ (2,114 ) $ 3,560 $ (159 ) $ 98,946 $ (2,273 ) At December 31, 2022, not not none December 31, 2022. no not Proceeds from the sales of investment securities available for sale were $2.5 million and $8.6 million for the years ended December 31, 2022 2021, December 31, 2022 2021, December 31 (dollars in thousands) 2022 2021 Realized gains $ - $ 265 Realized losses (10 ) - $ (10 ) $ 265 There were no may The scheduled maturities of securities available for sale at December 31, 2022, (dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 78 $ 78 Due after one year through five years 13,659 13,114 Due after five years through ten years 74,141 62,775 Due after ten years 73,782 59,184 $ 161,660 $ 135,151 Maturities of mortgage-backed securities are based on contractual amounts. Actual maturity will vary as loans underlying the securities are prepaid. Investment securities with amortized cost of approximately $33.7 million and $32.0 million at December 31, 2022 2021, |
Note 4 - Loans Receivable
Note 4 - Loans Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The major components of loans in the consolidated balance sheets at December 31, 2022 December 31, 2021 (dollars in thousands) 2022 2021 Construction & development $ 49,728 $ 44,252 Farmland 23,688 25,026 Residential 358,526 298,413 Commercial mortgage 263,664 230,071 Commercial & agricultural 39,434 38,442 SBA-PPP 71 24,528 Consumer & other 19,761 22,800 Total loans, net of deferred fees and costs 754,872 683,532 Allowance for loan losses (6,248 ) (5,677 ) Loans, net of allowance for loan losses $ 748,624 $ 677,855 Included in total loans above are deferred loan fees of $1.1 million and $2.7 million at December 31, 2022 December 31, 2021, December 31, 2022 December 31, 2021, As of December 31, 2022 2021, 1 4 Small Business Administration Paycheck Protection Program Gross SBA-PPP loans totaling $79 thousand with net deferred fees of $8 thousand remained on the balance sheet as of December 31, 2022. December 31, 2021. December 31, 2022 December 31, 2021 (dollars in thousands) December 31, 2022 # of SBA Balance Less SBA Tier Approved Mix Unearned Fees Mix $2 million to $10 million - - % $ - - % Over $350,000 to less than $2 million - - % - - % Up to $350,000 7 100.00 % 71 100.00 % Total 7 100.00 % $ 71 100.00 % (dollars in thousands) December 31, 2021 # of SBA Balance Less SBA Tier Approved Mix Unearned Fees Mix $2 million to $10 million 1 0.12 % $ 1,950 7.95 % Over $350,000 to less than $2 million 11 1.36 % 5,018 20.46 % Up to $350,000 797 98.52 % 17,560 71.59 % Total 809 100.00 % $ 24,528 100.00 % A summary of our SBA-PPP loans as of December 31, 2022 December 31, 2021 (dollars in thousands) December 31, 2022 # of SBA Balance Less Industry Approved Mix Unearned Fees Mix Manufacturing - - % $ - - % Retail Trade 1 14.29 % 20 28.17 % Construction 1 14.29 % 4 5.63 % Health Care & Social Assistance 1 14.29 % 4 5.63 % Accommodation & Retail Services 1 14.29 % 27 38.03 % Educational Services - - % - - % General & Other 3 42.84 % 16 22.54 % Total 7 100.00 % $ 71 100.00 % (dollars in thousands) December 31, 2021 # of SBA Balance Less Industry Approved Mix Unearned Fees Mix Manufacturing 26 3.21 % $ 2,067 8.43 % Retail Trade 61 7.54 % 1,124 4.58 % Construction 127 15.70 % 2,855 11.64 % Health Care & Social Assistance 18 2.23 % 1,300 5.30 % Accommodation & Retail Services 58 7.17 % 4,235 17.27 % Educational Services 4 0.49 % 2,424 9.88 % General & Other 515 63.66 % 10,523 42.90 % Total 809 100.00 % $ 24,528 100.00 % |
Note 5 - Allowance for Loan Los
Note 5 - Allowance for Loan Losses and Impaired Loans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Allowance for Credit Losses [Text Block] | Note 5. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed to be sufficient to provide for estimated loan losses based on evaluating known and inherent risks in the loan portfolio. The allowance is provided based upon management’s comprehensive analysis of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the amount and composition of the loan portfolio, delinquency levels, actual loss experience, current economic conditions, and detailed analysis of individual loans for which the full collectability may not A provision for loan losses is charged against operations and is added to the allowance for loan losses based on quarterly comprehensive analyses of the loan portfolio. The allowance for loan losses is allocated to certain loan categories based on the relative risk characteristics, asset classifications and actual loss experience of the loan portfolio. While management has allocated the allowance for loan losses to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. As noted in Note 1, zero December 31, 2022 December 31, 2021: Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Construction & Development Farmland Residential Commercial Mortgage Commercial & Agricultural Consumer & Other Total December 31, 2022 Allowance for loan losses: Beginning Balance $ 484 $ 315 $ 2,521 $ 1,908 $ 321 $ 128 $ 5,677 Charge-offs - - - - (14 ) (114 ) (128 ) Recoveries 3 - 12 8 30 40 93 Provision 39 (56 ) 287 281 (25 ) 80 606 Ending Balance $ 526 $ 259 $ 2,820 $ 2,197 $ 312 $ 134 $ 6,248 Ending balance: individually evaluated for impairment $ 4 $ - $ - $ - $ - $ - $ 4 Ending balance: collectively evaluated for impairment $ 522 $ 259 $ 2,820 $ 2,197 $ 312 $ 134 $ 6,244 Loans outstanding: Ending Balance $ 49,728 $ 23,688 $ 358,526 $ 263,664 $ 39,434 $ 19,761 $ 754,801 Ending balance: individually evaluated for impairment $ 313 $ - $ - $ 382 $ - $ - $ 695 Ending balance: collectively evaluated for impairment $ 49,415 $ 23,688 $ 358,410 $ 263,194 $ 39,434 $ 19,761 $ 753,902 Ending balance: purchased credit impaired loans $ - $ - $ 116 $ 88 $ - $ - $ 204 December 31, 2021 Allowance for loan losses: Beginning Balance $ 499 $ 406 $ 2,167 $ 1,421 $ 293 $ 114 $ 4,900 Charge-offs - - - - (8 ) (102 ) (110 ) Recoveries 5 - 2 61 53 43 164 Provision (20 ) (91 ) 352 426 (17 ) 73 723 Ending Balance $ 484 $ 315 $ 2,521 $ 1,908 $ 321 $ 128 $ 5,677 Ending balance: individually evaluated for impairment $ - $ 8 $ - $ - $ - $ - $ 8 Ending balance: collectively evaluated for impairment $ 484 $ 307 $ 2,521 $ 1,908 $ 321 $ 128 $ 5,669 Loans outstanding: Ending Balance $ 44,252 $ 25,026 $ 298,413 $ 230,071 $ 38,442 $ 22,800 $ 659,004 Ending balance: individually evaluated for impairment $ 712 $ 283 $ - $ - $ - $ - $ 995 Ending balance: collectively evaluated for impairment $ 43,540 $ 24,743 $ 298,279 $ 229,970 $ 38,396 $ 22,800 $ 657,728 Ending balance: purchased credit impaired loans $ - $ - $ 134 $ 101 $ 46 $ - $ 281 As of December 31, 2022 December 31, 2021, Management closely monitors the quality of the loan portfolio and has established a loan review process designed to help grade the quality of the Bank’s loan portfolio. The Bank’s loan ratings coincide with the “Substandard,” “Doubtful” and “Loss” classifications used by federal regulators in their examination of financial institutions. Generally, an asset is considered Substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. Substandard assets include those characterized by the distinct possibility that the insured financial institution will sustain some loss if the deficiencies are not not not one December 31, 2022 December 31, 2021, no The following table lists the loan grades utilized by the Bank and the corresponding total of outstanding loans in each category as of December 31, 2022 December 31, 2021: Credit Risk Profile by Internally Assigned Grades Loan Grades (dollars in thousands) Pass Watch Special Mention Substandard Total December 31, 2022 Real Estate Secured: Construction & development $ 49,384 $ - $ - $ 344 $ 49,728 Farmland 21,156 814 468 1,250 23,688 Residential 356,327 947 499 753 358,526 Commercial mortgage 259,529 2,130 153 1,852 263,664 Non-Real Estate Secured: Commercial & agricultural 39,339 13 - 82 39,434 SBA-PPP 71 - - - 71 Consumer & other 19,761 - - - 19,761 Total $ 745,567 $ 3,904 $ 1,120 $ 4,281 $ 754,872 December 31, 2021 Real Estate Secured: Construction & development $ 43,423 $ - $ - $ 829 $ 44,252 Farmland 21,430 831 480 2,285 25,026 Residential 296,160 356 582 1,315 298,413 Commercial mortgage 220,061 5,036 3,607 1,367 230,071 Non-Real Estate Secured: Commercial & agricultural 38,254 20 - 168 38,442 SBA-PPP 24,528 - - - 24,528 Consumer & other 22,800 - - - 22,800 Total $ 666,656 $ 6,243 $ 4,669 $ 5,964 $ 683,532 Loans may may first The following table presents an age analysis of nonaccrual and past due loans by category as of December 31, 2022 December 31, 2021: (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90+ Days Past Due and Still Accruing Nonaccrual Loans December 31, 2022 Real Estate Secured: Construction & development $ - $ 30 $ 313 $ 343 $ 49,385 $ 49,728 $ - $ 344 Farmland 4 - - 4 23,684 23,688 - 94 Residential 94 315 240 649 357,877 358,526 - 565 Commercial mortgage 44 86 46 176 263,488 263,664 - 622 Non-Real Estate Secured: Commercial & agricultural - - 9 9 39,425 39,434 - 9 SBA-PPP - - - - 71 71 - - Consumer & other 5 - - 5 19,756 19,761 - - Total $ 147 $ 431 $ 608 $ 1,186 $ 753,686 $ 754,872 $ - $ 1,634 December 31, 2021 Real Estate Secured: Construction & development $ - $ - $ 426 $ 426 $ 43,826 $ 44,252 $ - $ 426 Farmland - - 117 117 24,909 25,026 - 117 Residential 246 163 285 694 297,719 298,413 - 596 Commercial mortgage - - 46 46 230,025 230,071 - 121 Non-Real Estate Secured: Commercial & agricultural 58 - 46 104 38,338 38,442 - 60 SBA-PPP - - - - 24,528 24,528 - - Consumer & other 11 - - 11 22,789 22,800 - - Total $ 315 $ 163 $ 920 $ 1,398 $ 682,134 $ 683,532 $ - $ 1,320 Impaired Loans A loan is considered impaired when it is probable that the Bank will be unable to collect all contractual principal and interest payments due in accordance with the original or modified terms of the loan agreement. Smaller balance homogenous loans may not may third third may As of December 31, 2022 December 31, 2021, December 31, 2022 December 31, 2021, December 31, 2022 December 31, 2021, not December 31, 2022 December 31, 2021, The categories of non-accrual loans and impaired loans overlap, although they are not Management collectively evaluates performing TDRs with a loan balance of $250,000 December 31, 2022 December 31, 2021, The following table is a summary of information related to impaired loans as of December 31, 2022 December 31, 2021: Impaired Loans (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance December 31, 2022 With no related allowance recorded: Construction & development $ 203 $ 203 $ - Farmland - - - Residential - - - Commercial mortgage 381 395 - Commercial & agricultural - - - Consumer & other - - - Subtotal 584 598 - With an allowance recorded: Construction & development 119 119 4 Farmland 355 371 15 Residential 1,885 2,043 96 Commercial mortgage 66 66 3 Commercial & agricultural 24 24 1 Consumer & other - - - Subtotal 2,449 2,623 119 Totals: Construction & development 322 322 4 Farmland 355 371 15 Residential 1,885 2,043 96 Commercial mortgage 447 461 3 Commercial & agricultural 24 24 1 Consumer & other - - - Total $ 3,033 $ 3,221 $ 119 1 (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance December 31, 2021 With no related allowance recorded: Construction & development $ 713 $ 712 $ - Farmland - - - Residential - - - Commercial mortgage - - - Commercial & agricultural - - - Consumer & other - - - Subtotal 713 712 - With an allowance recorded: Construction & development 136 136 8 Farmland 394 410 9 Residential 2,248 2,425 127 Commercial mortgage 70 70 4 Commercial & agricultural 32 32 2 Consumer & other - - - Subtotal 2,880 3,073 150 Totals: Construction & development 849 848 8 Farmland 394 410 9 Residential 2,248 2,425 127 Commercial mortgage 70 70 4 Commercial & agricultural 32 32 2 Consumer & other - - - Total $ 3,593 $ 3,785 $ 150 1 The following table shows the average recorded investment and interest income recognized for impaired loans for the years ended December 31, 2022 2021: December 31, 2022 2021 (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Construction & development $ 645 $ 55 $ 807 $ 22 Farmland 372 23 2,137 895 Residential 2,124 133 2,577 191 Commercial mortgage 464 21 46 6 Commercial & agricultural 28 2 40 2 Consumer & other - - - - Total $ 3,633 $ 234 $ 5,607 $ 1,116 Troubled Debt Restructuring A troubled debt restructured loan is a loan for which the Bank, for reasons related to the borrower’s financial difficulties, grants a concession to the borrower that the Bank would not The loan terms which have been modified or restructured due to a borrower’s financial difficulty, include but are not The following table sets forth information with respect to the Bank’s troubled debt restructurings as of December 31, 2022 December 31, 2021: TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment December 31, 2022 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential 2 79 79 - - - Commercial mortgage 1 403 381 - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 3 $ 482 $ 460 - $ - $ - During the twelve December 31, 2022, three twelve December 31, 2022. ( 1 30 TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment December 31, 2021 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential - - - - - - Commercial mortgage 1 73 70 - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 1 $ 73 $ 70 - $ - $ - During the twelve December 31, 2021, twelve December 31, 2021. ( 1 30 Modifications in response to COVID- 19 The Company offered short-term loan modifications to assist borrowers during the COVID- 19 six 19 19. six 12 not 19 not not December 31, 2021. 1 The Bank began receiving requests for loan deferments on March 23, 2020 December 31, 2021, 250 no December 31, 2022 December 31, 2021. Purchased Credit Impaired Loans During 2018, not December 31, 2022 December 31, 2021 (dollars in thousands) 2022 2021 Residential $ 116 $ 134 Commercial mortgage 88 101 Commercial & agricultural - 46 Outstanding balance $ 204 $ 281 Carrying amount $ 204 $ 281 There was no There were no December 31, 2022 December 31, 2021. not |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 6. Components of property and equipment and total accumulated depreciation at December 31, 2022 2021, (dollars in thousands) 2022 2021 Land $ 8,429 $ 9,178 Buildings and improvements 25,835 24,170 Furniture and equipment 13,221 11,619 47,485 44,967 Less accumulated depreciation (15,732 ) (14,111 ) $ 31,753 $ 30,856 Depreciation expense for the years ended December 31, 2022 2021 |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 7. An analysis of goodwill during the years ended December 31, 2022 2021 (dollars in thousands) 2022 2021 Beginning of year $ 3,257 $ 3,257 Impairment - - End of the period $ 3,257 $ 3,257 Intangible Assets The following table presents the activity for the Company’s core deposit intangible assets, which are the only identifiable intangible assets subject to amortization. Core deposit intangibles at December 31, 2022 2021 dollars in thousands) 2022 2021 Balance at beginning of year, net $ 1,764 $ 2,359 Amortization expense (478 ) (595 ) Net book value $ 1,286 $ 1,764 The following table presents the estimated amortization expense of the core deposit intangible over the remaining useful life: (dollars in thousands) For the year ended December 31, 2023 $ 369 For the year ended December 31, 2024 262 For the year ended December 31, 2025 154 For the year ended December 31, 2026 97 For the year ended December 31, 2027 81 Thereafter 323 Total $ 1,286 |
Note 8 - Leases
Note 8 - Leases | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 8. The Company’s leases are recorded under ASC Topic 842, Leases Contracts are evaluated to determine whether they are or contain a lease in accordance with Topic 842. 842 not not 12 2021 2022 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. For our incremental borrowing rate, we used the Federal Home Loan Bank rate available at the time of lease inception. The right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The contracts in which the Company is lessee are with parties external to the Company and not (dollars in thousands) 2022 2021 Lease liabilities $ 739 $ 553 Right-of-use assets $ 739 $ 553 Weighted average remaining lease term (years) 5.59 6.70 Weighted average discount rate 2.75 % 2.45 % (dollars in thousands) 2022 2021 Lease Expense Operating lease expense $ 158 $ 153 Short-term lease expense 8 29 Total lease expense $ 166 $ 182 Cash paid for amounts included in lease liabilities $ 158 $ 153 The following table presents a maturity schedule of undiscounted cash flows that contribute to the lease liabilities: (dollars in thousands) Twelve months ending December 31, 2023 $ 153 Twelve months ending December 31, 2024 139 Twelve months ending December 31, 2025 143 Twelve months ending December 31, 2026 143 Twelve months ending December 31, 2027 107 Thereafter 114 Total undiscounted cash flows $ 799 Less discount (60 ) Lease liabilities $ 739 |
Note 9 - Deposits
Note 9 - Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Deposit Liabilities Disclosures [Text Block] | Note 9. The following table presents the composition of deposits at December 31, 2022 December 31, 2021: (dollars in thousands) 2022 2021 Interest-bearing deposits: Interest-bearing demand deposit accounts $ 144,540 $ 119,320 Money market 87,012 103,217 Savings 194,723 187,248 Time deposits 183,542 190,334 Total interest-bearing deposits 609,817 600,119 Noninterest-bearing deposits 310,510 298,107 Total deposits $ 920,327 $ 898,226 The aggregate amount of time deposits in denominations of more than $250 December 31, 2022 2021 December 31, 2022, (dollars in thousands) 2023 $ 120,614 2024 21,892 2025 18,556 2026 13,951 2027 8,529 After Five Years - Total $ 183,542 |
Note 10 - Short-term Borrowings
Note 10 - Short-term Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Short-Term Debt [Text Block] | Note 10. At December 31, 2022 On December 21, 2021, December 21, 2022. December 31, 2021, 2022, December 2022, not At December 31, 2022, |
Note 11 - Long-term Borrowings
Note 11 - Long-term Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | Note 11. Long-Term Borrowings At December 31, 2022, December 31, 2021, 2022, 2021, December 31, 2020 |
Note 12 - Financial Instruments
Note 12 - Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | Note 12. FASB ASC 825, not not not 825 not The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2022 December 31, 2021. no For loans, the carrying amount is net of unearned income and the allowance for loan losses. In accordance with the prospective adoption of ASU No. 2016 01, December 31, 2022 2021 Fair Value Measurements (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2022 Financial Instruments – Assets Net Loans $ 748,624 $ 702,549 $ - $ - $ 702,549 Financial Instruments – Liabilities Time Deposits 183,542 181,525 - 181,525 - December 31, 2021 Financial Instruments – Assets Net Loans $ 677,855 $ 671,826 $ - $ - $ 671,826 Financial Instruments – Liabilities Time Deposits 190,334 191,464 - 191,464 - FHLB Advances 5,000 4,951 - 4,951 - The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale and derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may Fair Value Hierarchy Under FASB ASC 820, three Level 1 Level 2 not Level 3 one not may Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. Investment Securities Available for Sale Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not 1 2 3 Loans The Company does not not one not December 31, 2022, 2. no 3. Derivative Assets and Liabilities Derivative instruments held or issued by the Company for risk management purposes are traded in over-the-counter markets where quoted market prices are not third 2. 2 December 31, 2022 2021. Other Real Estate Owned Other real estate owned is adjusted to fair value upon transfer of the loans, or former bank premises, to other real estate owned. Subsequently, other reals estate owned is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price the Company records the other real estate owned as nonrecurring Level 2. no 3. December 31, 2022 December 31, 2021. Assets Recorded at Fair Value on a Recurring Basis (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022 Investment securities available for sale U.S. Treasury securities $ 4,834 $ - $ 4,834 $ - U.S. Government agencies 20,846 - 20,846 - Mortgage-backed securities 67,270 - 67,270 - Corporate securities 1,500 - 1,500 - State and municipal securities 40,701 - 40,701 - Total assets at fair value $ 135,151 $ - $ 135,151 $ - December 31, 2021 Investment securities available for sale U.S. Government agencies $ 20,149 $ - $ 20,149 $ - Mortgage-backed securities 63,311 - 63,311 - Corporate securities 1,500 - 1,500 - State and municipal securities 44,755 - 44,755 - Total assets at fair value $ 129,715 $ - $ 129,715 $ - No liabilities were recorded at fair value on a recurring basis as of December 31, 2022 2021. no December 31, 2022 2021. Assets Recorded at Fair Value on a Nonrecurring Basis The Company may December 31, 2022 2021. (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022 Impaired loans $ 173 $ - $ - $ 173 Other real estate owned 235 - - 235 Total assets at fair value $ 408 $ - $ - $ 408 December 31, 2021 Impaired loans $ 189 $ - $ - $ 189 Other real estate owned - - - - Total assets at fair value $ 189 $ - $ - $ 189 For Level 3 December 31, 2022 2021, Fair Value at December 31, 2022 Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 173 $ 189 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 10% Other Real Estate Owned $ 235 $ - Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 10% |
Note 13 - Employee Benefit Plan
Note 13 - Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note 13. Prior to the merger, both Grayson and Floyd had qualified noncontributory defined benefit pension plans in place which covered substantially all of each bank’s employees. The benefits in each plan are primarily based on years of service and earnings. Both Grayson and Floyd plans were amended to freeze benefit accruals for all eligible employees prior to the effective date of the merger. A summary of each plan follows: Grayson Plan The following is a summary of the plan’s funded status as of December 31: (dollars in thousands) 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 5,830 $ 6,083 Interest cost 147 143 Actuarial gain (1,327 ) (212 ) Benefits paid (1,499 ) (158 ) Settlement (gain) loss 36 (26 ) Benefit obligation at end of year 3,187 5,830 Change in plan assets Fair value of plan assets at beginning of year 11,081 10,291 Actual return on plan assets (2,414 ) 948 Benefits paid (1,499 ) (158 ) Fair value of plan assets at end of year 7,168 11,081 Funded status at the end of the year $ 3,981 $ 5,251 (dollars in thousands) 2022 2021 Amounts recognized in the Balance Sheet Prepaid benefit cost $ 6,467 $ 6,089 Unrecognized net actuarial loss (2,486 ) (838 ) Amount recognized in other assets $ 3,981 $ 5,251 Amounts recognized in accumulated comprehensive loss Unrecognized net actuarial loss $ (2,486 ) $ (838 ) Deferred taxes 522 176 Amount recognized in accumulated comprehensive loss, net $ (1,964 ) $ (662 ) Prepaid benefit detail Benefit obligation $ (3,187 ) $ (5,830 ) Fair value of assets 7,168 11,081 Unrecognized net actuarial loss 2,486 838 Prepaid benefit cost $ 6,467 $ 6,089 Components of net periodic pension cost Interest cost $ 147 $ 143 Expected return on plan assets (741 ) (694 ) Recognized net loss due to settlement 216 32 Recognized net actuarial loss - 35 Net periodic benefit expense $ (378 ) $ (484 ) Additional disclosure information Accumulated benefit obligation $ 3,187 $ 5,830 Vested benefit obligation $ 3,187 $ 5,830 Discount rate used for net periodic pension cost 2.75 % 2.50 % Discount rate used for disclosure 5.00 % 2.75 % Expected return on plan assets 7.00 % 7.00 % Rate of compensation increase N/A N/A Average remaining service (years) 9 9 Using the same fair value hierarchy described in Note 12, (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022 Mutual funds – equities $ 3,727 $ 3,727 $ - $ - Mutual funds – fixed income 3,441 3,441 - - Total assets at fair value $ 7,168 $ 7,168 $ - $ - December 31, 2021 Mutual funds – equities $ 5,762 $ 5,762 $ - $ - Mutual funds – fixed income 5,319 5,319 - - Total assets at fair value $ 11,081 $ 11,081 $ - $ - Estimated Future Benefit Payments (dollars in thousands) Pension Benefits 2023 $ 693 2024 334 2025 58 2026 281 2027 299 2028 – 2032 1,043 $ 2,708 Funding Policy It has been Bank practice to contribute the maximum tax-deductible amount each year as determined by the plan administrator. As a result of prior year contributions exceeding the minimum requirements, a Prefunding Balance existed as of December 31, 2022 no 2023. not 2023. Long-Term Rate of Return The plan sponsor selects the expected long-term rate-of-return-on-assets assumption in consultation with their investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed – especially with respect to real rates of return (net of inflation) – for the major asset classes held, or anticipated to be held by the trust, and for the trust itself. Undue weight is not may not Because assets are held in a qualified trust, anticipated returns are not not not Asset Allocation The pension plan’s weighted-average asset allocations at December 31, 2022 2021, 2022 2021 Mutual funds – fixed income 48 % 48 % Mutual funds – equity 52 % 52 % Total 100 % 100 % The trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 50 percent fixed income and 50 percent equities. The Investment Manager selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance, for the implementation of the Plan’s investment strategy. The Investment Manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure. It is the responsibility of the Trustee to administer the investments of the Trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not Floyd Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (“The Pentegra DB Plan”), a tax-qualified defined-benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and is a multiple-employer plan under the Employee Retirement Income Security Act of 1974 no The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413 may Funded Status (market value of plan assets divided by funding target) as of July 1 , 2022 Valuation 2021 Valuation Source Report Report Bank of Floyd Plan 105.50% 117.03% Employer Contributions Plan expenses paid by the Company totaled approximately $39 thousand and $70 thousand for the years ended December 31, 2022 2021, VBA Defined Contribution Plan for Skyline National Bank The Bank has established a qualified defined contribution plan that covers all eligible employees of the Bank who have completed at least three first may December 31, 2022 2021, |
Note 14 - Deferred Compensation
Note 14 - Deferred Compensation and Supplemental Executive Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans, Other than Share-Based Compensation [Text Block] | Note 14. Deferred compensation plans have been adopted for certain executive officers and members of the Board of Directors for future compensation upon retirement. Under plan provisions aggregate annual payments ranging from $4,268 to $26,791 are payable for ten December 31, 2022 2021, 2022 2021, Supplemental executive retirement plans for certain executive officers were adopted in 2017 2022. December 31, 2022 2021, 2022 2021, Prior to the Cardinal merger, the Bank of Floyd had adopted supplemental executive plans to provide benefits for two December 31, 2022 2021, 2022 2021, |
Note 15 - Share-based Compensat
Note 15 - Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 15. The Company’s 2020 March 17, 2020 August 18, 2020 ( The purpose of the Plan is to promote the success of the Company and its subsidiaries by providing incentives to key employees and non-employee directors that will promote the identification of their personal interests with the long-term financial success of the Company and with growth in shareholder value, consistent with the Company’s risk management practices. The Plan is designed to provide flexibility to the Company, including its subsidiaries, in its ability to attract, retain the services of, and motivate key employees and non-employee directors upon whose judgment, interest, and special effort the successful conduct of its operation is largely dependent. The Plan was effective on the Effective Date, and no may March 16, 2030. may not December 31, 2022, On February 18, 2022, December 15, 2022, December 15, 2023, December 15, 2024, December 15, 2025, December 15, 2026. December 31, 2022 2021, As of December 31, 2022, Grant Date Fair Value of Restricted Stock that Weighted Vested During Number of Average Grant The Year Shares Date Fair Value (in thousands) Unvested as of December 31, 2020 - $ - Granted 14,500 11.30 Vested (3,625 ) 11.30 $ 42 Forfeited - - Unvested as of December 31, 2021 10,875 $ 11.30 Granted 14,500 13.00 Vested (6,525 ) 12.13 $ 80 Forfeited - - Unvested as of December 31, 2022 18,850 $ 12.38 On December 31, 2022, December 31, 2022, December 31, 2021, December 31, 2021, |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 16. Current and Deferred Income Tax Components The components of income tax expense (substantially all Federal) are as follows: (dollars in thousands) 2022 2021 Current $ 1,620 $ 2,096 Deferred 899 327 $ 2,519 $ 2,423 Rate Reconciliation A reconciliation of income tax expense computed at the statutory federal income tax rate to income tax expense included in the statements of income follows: (dollars in thousands) 2022 2021 Tax at statutory federal rate $ 2,688 $ 2,500 Tax exempt interest income (88 ) (52 ) Tax exempt insurance income (153 ) (93 ) State income tax, net of federal benefit 72 59 Other - 9 $ 2,519 $ 2,423 Deferred Income Tax Analysis The significant components of net deferred tax assets (all Federal) at December 31, 2022 2021 (dollars in thousands) 2022 2021 Deferred tax assets Allowance for loan losses $ 1,347 $ 1,221 Acquired loan credit mark 145 223 Deferred compensation 302 291 Investment impairment charge recorded directly to stockholders’ equity as a component of other comprehensive income 43 48 Minimum pension liability 522 176 Net operating loss carryforward 1,333 1,444 Nonaccrual interest income 324 352 Net unrealized losses on securities available for sale 5,567 392 Other 11 28 $ 9,594 $ 4,175 Deferred tax liabilities Deferred loan origination costs 642 121 Core deposit intangible 277 379 Accrued pension costs 1,395 1,310 Depreciation 1,452 1,239 Other real estate owned 51 - Accretion of discount on investment securities, net 33 4 $ 3,850 $ 3,053 Net deferred tax asset $ 5,744 $ 1,122 In March 2020, December 31, 2019 The Bank has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no 2019 Deferred tax assets or liabilities are initially recognized for differences between the financial statement carrying amount and the tax basis of assets and liabilities which will result in future deductible or taxable amounts and operating loss and tax credit carry-forwards. A valuation allowance is then established, as applicable, to reduce the deferred tax asset to the level at which it is “more likely than not” may 1 2 3 December 31, 2022 2021. not 2031. not. |
Note 17 - Transactions With Rel
Note 17 - Transactions With Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 17. The Bank has entered into transactions with its directors, significant stockholders and their affiliates (related parties). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, Aggregate 2022 2021 (dollars in thousands) 2022 2021 Balance, beginning $ 9,140 $ 12,427 New loans 4,368 4,351 Repayments (3,479 ) (7,607 ) Change in relationship - (31 ) Balance, ending $ 10,029 $ 9,140 The Company has accepted deposits during the ordinary course of business from certain directors and executive officers of the Company and from their affiliates and associates. The total amount of these deposits outstanding was $15.9 million, and $22.3 million at December 31, 2022 2021, |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 18. Litigation In the normal course of business, the Bank is involved in various legal proceedings. After consultation with legal counsel, management believes that any liability resulting from such proceedings will not Financial Instruments with Off-Balance Sheet Risk The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, credit risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as for on-balance sheet instruments. A summary of the Bank’s commitments at December 31, 2022 2021 (dollars in thousands) 2022 2021 Commitments to extend credit $ 163,250 $ 140,526 Standby letters of credit 833 1,161 $ 164,083 $ 141,687 Commitments to extend credit are agreements to lend to a customer as long as there is no may not may Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third Concentrations of Credit Risk Substantially all of the Bank’s loans, commitments to extend credit, and standby letters of credit have been granted to customers in the Bank’s market area and such customers are generally depositors of the Bank. Investments in state and municipal securities involve governmental entities within and outside the Bank’s market area. The concentrations of credit by type of loan are set forth in Note 4. not |
Note 19 - Regulatory Restrictio
Note 19 - Regulatory Restrictions | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 19. Dividends The Company’s dividend payments are generally made from dividends received from the Bank. Under applicable federal law, the Comptroller of the Currency restricts national bank total dividend payments in any calendar year to net profits of that year, as defined, combined with retained net profits for the two Intercompany Transactions The Bank’s legal lending limit on loans to the Company is governed by Federal Reserve Act 23A, may not December 31, 2022. No 23A December 31, 2022. Capital Requirements The Bank is subject to various regulatory capital requirements administered by federal and state 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 the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Effective January 1, 2015, 1 1 January 1, 2019, 1 4.5% 1 1 1 6.0% 1 1 8.0% 1 Under Basel III Capital requirements, a capital conservation buffer of 0.625% became effective beginning on January 1, 2016. January 1, 2019 December 31, 2022. The rules also revised the prompt corrective action framework, which is designed to place restrictions on insured depository institutions if their capital levels begin to show signs of weakness. Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions are required to meet the following capital level requirements in order to qualify as “well capitalized:” a common equity Tier 1 6.5%; 1 8%; 10%; 1 The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy Statement, and is not December 31, 2022 2021. January 1, 2015. Actual For Capital Adequacy Purposes To Be Well- Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total Capital (to risk weighted assets) $ 97,172 12.42 % $ 62,592 8.00 % $ 78,240 10.00 % Tier 1 Capital (to risk weighted assets) $ 90,878 11.62 % $ 46,944 6.00 % $ 62,592 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 90,878 11.62 % $ 35,208 4.50 % $ 50,856 6.50 % Tier 1 Capital (to average total assets) $ 90,878 8.79 % $ 41,342 4.00 % $ 51,677 5.00 % December 31, 2021 Total Capital (to risk weighted assets) $ 90,617 12.23 % $ 59,256 8.00 % $ 74,071 10.00 % Tier 1 Capital (to risk weighted assets) $ 84,900 11.46 % $ 44,442 6.00 % $ 59,256 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 84,900 11.46 % $ 33,332 4.50 % $ 48,146 6.50 % Tier 1 Capital (to average total assets) $ 84,900 8.58 % $ 39,598 4.00 % $ 49,497 5.00 % On September 17, 2019 In order to qualify for the CBLR framework, a community banking organization must have a Tier 1 not The CBLR framework was available for banks to use in their December 31, 2022, not may |
Note 20 - Parent Company Financ
Note 20 - Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 20. Condensed financial information of Skyline Bankshares, Inc. is presented as follows: Balance Sheets December 31, 2022 2021 (dollars in thousands) 2022 2021 Assets Cash and due from banks $ 63 $ 26 Investment in affiliate bank 72,559 88,049 Other assets 359 357 Total assets $ 72,981 $ 88,432 Liabilities Borrowings $ - $ 3,200 Other liabilities 45 38 Total liabilities 45 3,238 Stockholders Equity Common stock - - Surplus 33,613 33,588 Retained earnings 62,229 53,745 Accumulated other comprehensive loss (22,906 ) (2,139 ) Total stockholders’ equity 72,936 85,194 Total liabilities and stockholders’ equity $ 72,981 $ 88,432 Statements of Income For the years ended December 31, 2022 2021 (dollars in thousands) 2022 2021 Income Dividends from affiliate bank $ 5,346 $ 7,995 5,346 7,995 Expenses Interest on borrowings 178 3 Share-based compensation 179 155 Management and professional fees 68 60 Other expenses 7 39 432 257 Income before tax benefit and equity in undistributed income of affiliate 4,914 7,738 Federal income tax benefit 90 55 Income before equity in undistributed income of affiliate 5,004 7,793 Equity in undistributed income of affiliate 5,277 1,689 Net income $ 10,281 $ 9,482 Statements of Cash Flows For the years ended December 31, 2022 2021 (dollars in thousands) 2022 2021 Cash flows from operating activities Net income $ 10,281 $ 9,482 Adjustments to reconcile net income to net cash provided by operations: Equity in undistributed income of affiliate (5,277 ) (1,689 ) Share-based compensation 179 155 Change in other assets (2 ) (32 ) Change in other liabilities 7 10 Net cash provided by operating activities 5,188 7,926 Cash flows from investing activities Investment in affiliate - (3,200 ) Net cash used by investing activities - (3,200 ) Cash flows from financing activities Advance on short-term line of credit 150 3,200 Repayment on short-term line of credit (3,350 ) - Common stock repurchased (154 ) (6,307 ) Dividends paid (1,797 ) (1,624 ) Net cash used by financing activities (5,151 ) (4,731 ) Net increase (decrease) in cash and cash equivalents 37 (5 ) Cash and cash equivalents, beginning 26 31 Cash and cash equivalents, ending $ 63 $ 26 |
Note 21 - Subsequent Events
Note 21 - Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 21. Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not The Company has disclosed deposit compositions in Note 9. no no The Company has disclosed its investment portfolio position in Note 3. no Management has reviewed the events occurring through the date the consolidated financial statements were issued and no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Critical Accounting Policies Management believes the policies with respect to the methodology for the determination of the allowance for loan losses, and asset impairment judgments, such as the recoverability of intangible assets and other-than-temporary impairment of investment securities, involve a higher degree of complexity and require management to make difficult and subjective judgments that often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could cause reported results to differ materially. These critical policies and their application are periodically reviewed with the Audit Committee and the Board of Directors. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank, which is wholly owned. All significant, intercompany transactions and balances have been eliminated in consolidation. |
Segment Reporting, Policy [Policy Text Block] | Business Segments The Company reports its activities as a single business segment. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. |
Business Combinations Policy [Policy Text Block] | Business Combinations Generally, acquisitions are accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, one one not No |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and foreclosed real estate losses, management obtains independent appraisals for significant properties. Substantially all of the Bank’s loan portfolio consists of loans in its market area. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate are susceptible to changes in local market conditions. The regional economy is diverse, but influenced to an extent by the manufacturing and agricultural segments. While management uses available information to recognize loan and foreclosed real estate losses, future additions to the allowances may may may The Company seeks strategies that minimize the tax effect of implementing their business strategies. As such, judgments are made regarding the ultimate consequence of long-term tax planning strategies, including the likelihood of future recognition of deferred tax benefits. The Company’s tax returns are subject to examination by both Federal and State authorities. Such examinations may Accounting for pension benefits, costs and related liabilities are developed using actuarial valuations. These valuations include key assumptions determined by management, including the discount rate and expected long-term rate of return on plan assets. Material changes in pension costs may |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes cash and amounts due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. |
Marketable Securities, Trading Securities [Policy Text Block] | Trading Securities The Company does not not |
Marketable Securities, Held-to-maturity Securities [Policy Text Block] | Securities Held to Maturity Bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at amortized cost. The Company does not |
Marketable Securities, Available-for-sale Securities [Policy Text Block] | Securities Available for Sale Available for sale securities are reported at fair value and consist of mortgage-backed, U.S. government agencies, corporate, and state and municipal securities not Unrealized holding gains and losses, net of tax, on available for sale securities are reported as a net amount in a separate component of accumulated other comprehensive income. Realized gains and losses on the sale of available for sale securities are determined using the specific-identification method. The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity for discounts and the earlier of call date or maturity for premiums. Declines in the fair value of individual held to maturity and available for sale securities below cost that are other than temporary are reflected as write-downs of the individual securities to fair value. Related write-downs are included in earnings as realized losses. |
Policy Loans Receivable, Policy [Policy Text Block] | Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal amount adjusted for any charge-offs and the allowance for loan losses. Loan origination costs are capitalized and recognized as an adjustment to yield over the life of the related loan. Interest is accrued and credited to income based on the principal amount outstanding. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may first Purchased Performing Loans no Purchased Credit-Impaired ( PCI ) Loans not may not |
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 believes the uncollectability of a loan balance, or portion thereof, is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular 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 allowance consists of specific, general and unallocated components. The specific component is calculated on an individual basis for larger-balance, non-homogeneous loans, which are considered impaired. A specific allowance is established when the discounted cash flows, collateral value (less disposal costs), or observable market price of the impaired loan is lower than its carrying value. The specific component of the allowance for smaller- balance loans whose terms have been modified in a troubled debt restructuring (“TDR”) is calculated on a pooled basis considering historical experience adjusted for qualitative factors. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the 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, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not |
Troubled Debt Restructuring [Policy Text Block] | Troubled Debt Restructurings Under GAAP, the Bank is required to account for certain loan modifications or restructurings as “troubled debt restructurings” or "troubled debt restructured loans." In general, the modification or restructuring of a debt constitutes a troubled debt restructuring if the Bank for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that the Bank would not not not |
Operating, Accounting and Reporting Considerations Related to COVID-19 [Policy Text Block] | Operating, Accounting and Reporting Considerations related to COVID- 19 The COVID- 19 March 27, 2020. $2.2 19 not Accounting for Loan Modifications 4013 may 1 2 5 Paycheck Protection Program 7 December 27, 2020 2021 first second May 31, 2021. 4 Also, in response to the COVID- 19 March 22, 2020; April 7, 2020). not Accounting for Loan Modifications not may not 19 not 5 Past Due Reporting not not 19 not Nonaccrual Status and Charge-offs 19 not The Company offered short-term loan modifications to assist borrowers during the COVID- 19 six 4013 not 19 19. 4013 six 12 August 3, 2020, 19. 4013 4013. 1 19 2 not 30 December 31, 2019; 3 March 1, 2020, 60 December 31, 2020. December 31, 2020 January 1, 2022 4013 not |
SBA CARES Act Paycheck Protection Program, Policy [Policy Text Block] | Small Business Administration Paycheck Protection Program The SBA-PPP is one February 15, 2020, August 8, 2020. eight 24 As a qualified SBA lender, we were automatically authorized to originate SBA-PPP loans and began taking applications on April 3, 2020. 1 2.5 2 $10.0 1.0%, two five six 100% Due to the unique nature of these provisions, SBA-PPP loans have been disclosed as a separate loan class. Origination fees received by the SBA are capitalized into the carrying amount of the loans. The deferred fee income, net of origination costs, is recognized over the life of the loan as an adjustment to yield using the straight-line method. The allowance for loan losses for SBA-PPP loans originated during 2021 2020 zero |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Land is carried at cost. Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed principally by the straight-line method over the following estimated useful lives: Years Buildings and improvements 10 - 40 Furniture and equipment 5 - 12 |
Financing Receivable, Held-for-investment, Foreclosed Asset [Policy Text Block] | Other Real Estate Owned Other real estate owned represents properties acquired through, or in lieu of, loan foreclosure and former branch sites that have been closed and for which there are no |
Share-Based Payment Arrangement [Policy Text Block] | Share-Based Compensation The Parkway Acquisition Corp. 2020 March 17, 2020 August 18, 2020. As of December 31, 2022, 15 |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | Pension Plan Prior to the Cardinal merger, both Grayson National Bank (“Grayson”) and Bank of Floyd (“Floyd”) had qualified noncontributory defined benefit pension plans in place which covered substantially all of each bank’s employees. The benefits in each plan are primarily based on years of service and earnings. Both Grayson and Floyd plans were amended to freeze benefit accruals for all eligible employees prior to the effective date of the Cardinal merger. Grayson’s plan is a single-employer plan, the funded status of which is measured as the difference between the fair value of plan assets and the projected benefit obligation. Floyd’s plan is a multi-employer plan for accounting purposes and is a multiple-employer plan under the Employee Retirement Income Security Act of 1974 |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Policy [Policy Text Block] | Transfers of Financial Assets Transfers of financial assets 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 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Goodwill arises from business combinations and is generally determined as the excess of fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquire, over the fair value of the nets assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not November 1 November 1, 2022, no Other intangible assets consist of core deposit intangibles that represent the value of long-term deposit relationships acquired in a business combination. Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired. The core deposit intangible as a result of the Cardinal merger, is amortized over an estimated useful life of twenty seven |
Cash Value of Life Insurance [Policy Text Block] | Cash Value of Life Insurance The Bank is owner and beneficiary of life insurance policies on certain current and former employees and directors. The Company records these policies in the consolidated balance sheets at cash surrender value, with changes recorded in noninterest income in the consolidated statements of income. |
Revenue [Policy Text Block] | Revenue Recognition Service Charges on Deposit Accounts - December 31, 2022 2021 Mortgage Origination Fees December 31, 2022 2021 Other Service Charges and Fees - ● ATM, Credit and Debit Card Fees - December 31, 2022 2021 ● Insurance and Investment - December 31, 2022 2021 |
Lessee, Leases [Policy Text Block] | Leases We have performed an evaluation of our leasing contracts and activities. We have developed our methodology to estimate the right-of use assets and lease liabilities, which is based on the present value of lease payments. There was not 8 |
Income Tax, Policy [Policy Text Block] | Income Taxes Provision for income taxes is based on amounts reported in the statements of income (after exclusion of non-taxable income such as interest on state and municipal securities) and consists of taxes currently due plus deferred taxes on temporary differences in the recognition of income and expense for tax and financial statement purposes. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, not 50 not 50 not not not not |
Advertising Cost [Policy Text Block] | Advertising Expense The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2022 2021 |
Earnings Per Share, Policy [Policy Text Block] | Basic Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends. For the years ended December 31, 2022 2021, no |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan which are also recognized as separate components of equity. The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows: (dollars in thousands) Unrealized Gains And Losses On Available for Sale Securities Defined Benefit Pension Items Total Balance, December 31, 2020 $ 582 $ (1,103 ) $ (521 ) Other comprehensive income (loss) before Reclassifications (1,850 ) 441 (1,409 ) Amounts reclassified from accumulated other comprehensive loss (209 ) - (209 ) Balance, December 31, 2021 $ (1,477 ) $ (662 ) $ (2,139 ) Balance, December 31, 2021 $ (1,477 ) $ (662 ) $ (2,139 ) Other comprehensive loss before Reclassifications (19,473 ) (1,302 ) (20,775 ) Amounts reclassified from accumulated other comprehensive loss 8 - 8 Balance, December 31, 2022 $ (20,942 ) $ (1,964 ) $ (22,906 ) |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under line of credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 12. |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification Certain reclassifications have been made to the prior years’ financial statements to place them on a comparable basis with the current presentation. Net income and stockholders’ equity previously reported were not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements The following accounting standards may In June 2016, No. 2016 13, Financial Instruments Credit Losses (Topic 326 January 1, 2023. January 1, 2023 third December 31, 2022. 10 March 31, 2023. In January 2017, not 2 not December 15, 2022. January 1, 2017. In May 2019, 2016 13, December 15, 2022. not In November 2019, 2016 13. not 2016 13, December 15, 2022, 2016 13. not In November 2019, not December 15, 2022, In March 2020, March 12, 2020 December 31, 2022. not In August 2021, No. 33 10786, No. 33 10835, not In March 2022, No. 2022 02, Financial Instruments-Credit Losses (Topic 326 2022 02 2016 13 2016 13, 2022 02 December 15, 2022, not 2016 13, 2022 02 2016 13. 2016 13. may not In June 2022, December 15, 2023, not In December 2022, 848 December 31, 2022, December 31, 2024, not December 31, 2021, June 2023. not Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not |
Note 1 - Organization and Sum_2
Note 1 - Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Useful Lives of Property, Plant and Equipment [Table Text Block] | Years Buildings and improvements 10 - 40 Furniture and equipment 5 - 12 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | (dollars in thousands) Unrealized Gains And Losses On Available for Sale Securities Defined Benefit Pension Items Total Balance, December 31, 2020 $ 582 $ (1,103 ) $ (521 ) Other comprehensive income (loss) before Reclassifications (1,850 ) 441 (1,409 ) Amounts reclassified from accumulated other comprehensive loss (209 ) - (209 ) Balance, December 31, 2021 $ (1,477 ) $ (662 ) $ (2,139 ) Balance, December 31, 2021 $ (1,477 ) $ (662 ) $ (2,139 ) Other comprehensive loss before Reclassifications (19,473 ) (1,302 ) (20,775 ) Amounts reclassified from accumulated other comprehensive loss 8 - 8 Balance, December 31, 2022 $ (20,942 ) $ (1,964 ) $ (22,906 ) |
Note 3 - Investment Securities
Note 3 - Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | (dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value 2022 Available for sale: U.S. Treasury securities $ 4,980 $ - $ (146 ) $ 4,834 U.S. Government agencies 25,025 - (4,179 ) 20,846 Mortgage-backed securities 78,755 - (11,485 ) 67,270 Corporate securities 1,500 - - 1,500 State and municipal securities 51,400 16 (10,715 ) 40,701 $ 161,660 $ 16 $ (26,525 ) $ 135,151 2021 Available for sale: U.S. Government agencies $ 20,333 $ 7 $ (191 ) $ 20,149 Mortgage-backed securities 64,437 208 (1,334 ) 63,311 Corporate securities 1,500 - - 1,500 State and municipal securities 45,314 189 (748 ) 44,755 $ 131,584 $ 404 $ (2,273 ) $ 129,715 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less Than 12 Months 12 Months or More Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses 2022 Available for sale: U.S. Treasury securities $ 4,834 $ (146 ) $ - $ - $ 4,834 $ (146 ) U.S. Government agencies 8,563 (1,227 ) 12,282 (2,952 ) 20,845 (4,179 ) Mortgage-backed securities 27,796 (2,756 ) 39,467 (8,729 ) 67,263 (11,485 ) State and municipal securities 15,234 (2,633 ) 24,492 (8,082 ) 39,726 (10,715 ) Total securities available for sale $ 56,427 $ (6,762 ) $ 76,241 $ (19,763 ) $ 132,668 $ (26,525 ) 2021 Available for sale: U.S. Government agencies $ 15,091 $ (191 ) $ - $ - $ 15,091 $ (191 ) Mortgage-backed securities 51,990 (1,334 ) - - 51,990 (1,334 ) State and municipal securities 28,305 (589 ) 3,560 (159 ) 31,865 (748 ) Total securities available for sale $ 95,386 $ (2,114 ) $ 3,560 $ (159 ) $ 98,946 $ (2,273 ) |
Schedule of Realized Gain (Loss) [Table Text Block] | (dollars in thousands) 2022 2021 Realized gains $ - $ 265 Realized losses (10 ) - $ (10 ) $ 265 |
Investments Classified by Contractual Maturity Date [Table Text Block] | (dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 78 $ 78 Due after one year through five years 13,659 13,114 Due after five years through ten years 74,141 62,775 Due after ten years 73,782 59,184 $ 161,660 $ 135,151 |
Note 4 - Loans Receivable (Tabl
Note 4 - Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (dollars in thousands) 2022 2021 Construction & development $ 49,728 $ 44,252 Farmland 23,688 25,026 Residential 358,526 298,413 Commercial mortgage 263,664 230,071 Commercial & agricultural 39,434 38,442 SBA-PPP 71 24,528 Consumer & other 19,761 22,800 Total loans, net of deferred fees and costs 754,872 683,532 Allowance for loan losses (6,248 ) (5,677 ) Loans, net of allowance for loan losses $ 748,624 $ 677,855 (dollars in thousands) December 31, 2022 # of SBA Balance Less SBA Tier Approved Mix Unearned Fees Mix $2 million to $10 million - - % $ - - % Over $350,000 to less than $2 million - - % - - % Up to $350,000 7 100.00 % 71 100.00 % Total 7 100.00 % $ 71 100.00 % (dollars in thousands) December 31, 2021 # of SBA Balance Less SBA Tier Approved Mix Unearned Fees Mix $2 million to $10 million 1 0.12 % $ 1,950 7.95 % Over $350,000 to less than $2 million 11 1.36 % 5,018 20.46 % Up to $350,000 797 98.52 % 17,560 71.59 % Total 809 100.00 % $ 24,528 100.00 % (dollars in thousands) December 31, 2022 # of SBA Balance Less Industry Approved Mix Unearned Fees Mix Manufacturing - - % $ - - % Retail Trade 1 14.29 % 20 28.17 % Construction 1 14.29 % 4 5.63 % Health Care & Social Assistance 1 14.29 % 4 5.63 % Accommodation & Retail Services 1 14.29 % 27 38.03 % Educational Services - - % - - % General & Other 3 42.84 % 16 22.54 % Total 7 100.00 % $ 71 100.00 % (dollars in thousands) December 31, 2021 # of SBA Balance Less Industry Approved Mix Unearned Fees Mix Manufacturing 26 3.21 % $ 2,067 8.43 % Retail Trade 61 7.54 % 1,124 4.58 % Construction 127 15.70 % 2,855 11.64 % Health Care & Social Assistance 18 2.23 % 1,300 5.30 % Accommodation & Retail Services 58 7.17 % 4,235 17.27 % Educational Services 4 0.49 % 2,424 9.88 % General & Other 515 63.66 % 10,523 42.90 % Total 809 100.00 % $ 24,528 100.00 % |
Note 5 - Allowance for Loan L_2
Note 5 - Allowance for Loan Losses and Impaired Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | (dollars in thousands) Construction & Development Farmland Residential Commercial Mortgage Commercial & Agricultural Consumer & Other Total December 31, 2022 Allowance for loan losses: Beginning Balance $ 484 $ 315 $ 2,521 $ 1,908 $ 321 $ 128 $ 5,677 Charge-offs - - - - (14 ) (114 ) (128 ) Recoveries 3 - 12 8 30 40 93 Provision 39 (56 ) 287 281 (25 ) 80 606 Ending Balance $ 526 $ 259 $ 2,820 $ 2,197 $ 312 $ 134 $ 6,248 Ending balance: individually evaluated for impairment $ 4 $ - $ - $ - $ - $ - $ 4 Ending balance: collectively evaluated for impairment $ 522 $ 259 $ 2,820 $ 2,197 $ 312 $ 134 $ 6,244 Loans outstanding: Ending Balance $ 49,728 $ 23,688 $ 358,526 $ 263,664 $ 39,434 $ 19,761 $ 754,801 Ending balance: individually evaluated for impairment $ 313 $ - $ - $ 382 $ - $ - $ 695 Ending balance: collectively evaluated for impairment $ 49,415 $ 23,688 $ 358,410 $ 263,194 $ 39,434 $ 19,761 $ 753,902 Ending balance: purchased credit impaired loans $ - $ - $ 116 $ 88 $ - $ - $ 204 December 31, 2021 Allowance for loan losses: Beginning Balance $ 499 $ 406 $ 2,167 $ 1,421 $ 293 $ 114 $ 4,900 Charge-offs - - - - (8 ) (102 ) (110 ) Recoveries 5 - 2 61 53 43 164 Provision (20 ) (91 ) 352 426 (17 ) 73 723 Ending Balance $ 484 $ 315 $ 2,521 $ 1,908 $ 321 $ 128 $ 5,677 Ending balance: individually evaluated for impairment $ - $ 8 $ - $ - $ - $ - $ 8 Ending balance: collectively evaluated for impairment $ 484 $ 307 $ 2,521 $ 1,908 $ 321 $ 128 $ 5,669 Loans outstanding: Ending Balance $ 44,252 $ 25,026 $ 298,413 $ 230,071 $ 38,442 $ 22,800 $ 659,004 Ending balance: individually evaluated for impairment $ 712 $ 283 $ - $ - $ - $ - $ 995 Ending balance: collectively evaluated for impairment $ 43,540 $ 24,743 $ 298,279 $ 229,970 $ 38,396 $ 22,800 $ 657,728 Ending balance: purchased credit impaired loans $ - $ - $ 134 $ 101 $ 46 $ - $ 281 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Loan Grades (dollars in thousands) Pass Watch Special Mention Substandard Total December 31, 2022 Real Estate Secured: Construction & development $ 49,384 $ - $ - $ 344 $ 49,728 Farmland 21,156 814 468 1,250 23,688 Residential 356,327 947 499 753 358,526 Commercial mortgage 259,529 2,130 153 1,852 263,664 Non-Real Estate Secured: Commercial & agricultural 39,339 13 - 82 39,434 SBA-PPP 71 - - - 71 Consumer & other 19,761 - - - 19,761 Total $ 745,567 $ 3,904 $ 1,120 $ 4,281 $ 754,872 December 31, 2021 Real Estate Secured: Construction & development $ 43,423 $ - $ - $ 829 $ 44,252 Farmland 21,430 831 480 2,285 25,026 Residential 296,160 356 582 1,315 298,413 Commercial mortgage 220,061 5,036 3,607 1,367 230,071 Non-Real Estate Secured: Commercial & agricultural 38,254 20 - 168 38,442 SBA-PPP 24,528 - - - 24,528 Consumer & other 22,800 - - - 22,800 Total $ 666,656 $ 6,243 $ 4,669 $ 5,964 $ 683,532 |
Financing Receivable, Past Due [Table Text Block] | (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90+ Days Past Due and Still Accruing Nonaccrual Loans December 31, 2022 Real Estate Secured: Construction & development $ - $ 30 $ 313 $ 343 $ 49,385 $ 49,728 $ - $ 344 Farmland 4 - - 4 23,684 23,688 - 94 Residential 94 315 240 649 357,877 358,526 - 565 Commercial mortgage 44 86 46 176 263,488 263,664 - 622 Non-Real Estate Secured: Commercial & agricultural - - 9 9 39,425 39,434 - 9 SBA-PPP - - - - 71 71 - - Consumer & other 5 - - 5 19,756 19,761 - - Total $ 147 $ 431 $ 608 $ 1,186 $ 753,686 $ 754,872 $ - $ 1,634 December 31, 2021 Real Estate Secured: Construction & development $ - $ - $ 426 $ 426 $ 43,826 $ 44,252 $ - $ 426 Farmland - - 117 117 24,909 25,026 - 117 Residential 246 163 285 694 297,719 298,413 - 596 Commercial mortgage - - 46 46 230,025 230,071 - 121 Non-Real Estate Secured: Commercial & agricultural 58 - 46 104 38,338 38,442 - 60 SBA-PPP - - - - 24,528 24,528 - - Consumer & other 11 - - 11 22,789 22,800 - - Total $ 315 $ 163 $ 920 $ 1,398 $ 682,134 $ 683,532 $ - $ 1,320 |
Impaired Financing Receivables [Table Text Block] | (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance December 31, 2022 With no related allowance recorded: Construction & development $ 203 $ 203 $ - Farmland - - - Residential - - - Commercial mortgage 381 395 - Commercial & agricultural - - - Consumer & other - - - Subtotal 584 598 - With an allowance recorded: Construction & development 119 119 4 Farmland 355 371 15 Residential 1,885 2,043 96 Commercial mortgage 66 66 3 Commercial & agricultural 24 24 1 Consumer & other - - - Subtotal 2,449 2,623 119 Totals: Construction & development 322 322 4 Farmland 355 371 15 Residential 1,885 2,043 96 Commercial mortgage 447 461 3 Commercial & agricultural 24 24 1 Consumer & other - - - Total $ 3,033 $ 3,221 $ 119 (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance December 31, 2021 With no related allowance recorded: Construction & development $ 713 $ 712 $ - Farmland - - - Residential - - - Commercial mortgage - - - Commercial & agricultural - - - Consumer & other - - - Subtotal 713 712 - With an allowance recorded: Construction & development 136 136 8 Farmland 394 410 9 Residential 2,248 2,425 127 Commercial mortgage 70 70 4 Commercial & agricultural 32 32 2 Consumer & other - - - Subtotal 2,880 3,073 150 Totals: Construction & development 849 848 8 Farmland 394 410 9 Residential 2,248 2,425 127 Commercial mortgage 70 70 4 Commercial & agricultural 32 32 2 Consumer & other - - - Total $ 3,593 $ 3,785 $ 150 December 31, 2022 2021 (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Construction & development $ 645 $ 55 $ 807 $ 22 Farmland 372 23 2,137 895 Residential 2,124 133 2,577 191 Commercial mortgage 464 21 46 6 Commercial & agricultural 28 2 40 2 Consumer & other - - - - Total $ 3,633 $ 234 $ 5,607 $ 1,116 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment December 31, 2022 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential 2 79 79 - - - Commercial mortgage 1 403 381 - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 3 $ 482 $ 460 - $ - $ - TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment December 31, 2021 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential - - - - - - Commercial mortgage 1 73 70 - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 1 $ 73 $ 70 - $ - $ - |
Schedule of Business Acquisition, Carrying Amount of Acquired Loans [Table Text Block] | (dollars in thousands) 2022 2021 Residential $ 116 $ 134 Commercial mortgage 88 101 Commercial & agricultural - 46 Outstanding balance $ 204 $ 281 Carrying amount $ 204 $ 281 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (dollars in thousands) 2022 2021 Land $ 8,429 $ 9,178 Buildings and improvements 25,835 24,170 Furniture and equipment 13,221 11,619 47,485 44,967 Less accumulated depreciation (15,732 ) (14,111 ) $ 31,753 $ 30,856 |
Note 7 - Goodwill and Intangi_2
Note 7 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | (dollars in thousands) 2022 2021 Beginning of year $ 3,257 $ 3,257 Impairment - - End of the period $ 3,257 $ 3,257 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | dollars in thousands) 2022 2021 Balance at beginning of year, net $ 1,764 $ 2,359 Amortization expense (478 ) (595 ) Net book value $ 1,286 $ 1,764 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (dollars in thousands) For the year ended December 31, 2023 $ 369 For the year ended December 31, 2024 262 For the year ended December 31, 2025 154 For the year ended December 31, 2026 97 For the year ended December 31, 2027 81 Thereafter 323 Total $ 1,286 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | (dollars in thousands) 2022 2021 Lease liabilities $ 739 $ 553 Right-of-use assets $ 739 $ 553 Weighted average remaining lease term (years) 5.59 6.70 Weighted average discount rate 2.75 % 2.45 % (dollars in thousands) 2022 2021 Lease Expense Operating lease expense $ 158 $ 153 Short-term lease expense 8 29 Total lease expense $ 166 $ 182 Cash paid for amounts included in lease liabilities $ 158 $ 153 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (dollars in thousands) Twelve months ending December 31, 2023 $ 153 Twelve months ending December 31, 2024 139 Twelve months ending December 31, 2025 143 Twelve months ending December 31, 2026 143 Twelve months ending December 31, 2027 107 Thereafter 114 Total undiscounted cash flows $ 799 Less discount (60 ) Lease liabilities $ 739 |
Note 9 - Deposits (Tables)
Note 9 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Deposit Liabilities, Type [Table Text Block] | (dollars in thousands) 2022 2021 Interest-bearing deposits: Interest-bearing demand deposit accounts $ 144,540 $ 119,320 Money market 87,012 103,217 Savings 194,723 187,248 Time deposits 183,542 190,334 Total interest-bearing deposits 609,817 600,119 Noninterest-bearing deposits 310,510 298,107 Total deposits $ 920,327 $ 898,226 |
Time Deposit Maturities [Table Text Block] | 2023 $ 120,614 2024 21,892 2025 18,556 2026 13,951 2027 8,529 After Five Years - Total $ 183,542 |
Note 12 - Financial Instrumen_2
Note 12 - Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2022 Financial Instruments – Assets Net Loans $ 748,624 $ 702,549 $ - $ - $ 702,549 Financial Instruments – Liabilities Time Deposits 183,542 181,525 - 181,525 - December 31, 2021 Financial Instruments – Assets Net Loans $ 677,855 $ 671,826 $ - $ - $ 671,826 Financial Instruments – Liabilities Time Deposits 190,334 191,464 - 191,464 - FHLB Advances 5,000 4,951 - 4,951 - |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022 Investment securities available for sale U.S. Treasury securities $ 4,834 $ - $ 4,834 $ - U.S. Government agencies 20,846 - 20,846 - Mortgage-backed securities 67,270 - 67,270 - Corporate securities 1,500 - 1,500 - State and municipal securities 40,701 - 40,701 - Total assets at fair value $ 135,151 $ - $ 135,151 $ - December 31, 2021 Investment securities available for sale U.S. Government agencies $ 20,149 $ - $ 20,149 $ - Mortgage-backed securities 63,311 - 63,311 - Corporate securities 1,500 - 1,500 - State and municipal securities 44,755 - 44,755 - Total assets at fair value $ 129,715 $ - $ 129,715 $ - |
Fair Value Measurements, Nonrecurring [Table Text Block] | (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022 Impaired loans $ 173 $ - $ - $ 173 Other real estate owned 235 - - 235 Total assets at fair value $ 408 $ - $ - $ 408 December 31, 2021 Impaired loans $ 189 $ - $ - $ 189 Other real estate owned - - - - Total assets at fair value $ 189 $ - $ - $ 189 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value at December 31, 2022 Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 173 $ 189 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 10% Other Real Estate Owned $ 235 $ - Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 10% |
Note 13 - Employee Benefit Pl_2
Note 13 - Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | (dollars in thousands) 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 5,830 $ 6,083 Interest cost 147 143 Actuarial gain (1,327 ) (212 ) Benefits paid (1,499 ) (158 ) Settlement (gain) loss 36 (26 ) Benefit obligation at end of year 3,187 5,830 Change in plan assets Fair value of plan assets at beginning of year 11,081 10,291 Actual return on plan assets (2,414 ) 948 Benefits paid (1,499 ) (158 ) Fair value of plan assets at end of year 7,168 11,081 Funded status at the end of the year $ 3,981 $ 5,251 |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | (dollars in thousands) 2022 2021 Amounts recognized in the Balance Sheet Prepaid benefit cost $ 6,467 $ 6,089 Unrecognized net actuarial loss (2,486 ) (838 ) Amount recognized in other assets $ 3,981 $ 5,251 Amounts recognized in accumulated comprehensive loss Unrecognized net actuarial loss $ (2,486 ) $ (838 ) Deferred taxes 522 176 Amount recognized in accumulated comprehensive loss, net $ (1,964 ) $ (662 ) Prepaid benefit detail Benefit obligation $ (3,187 ) $ (5,830 ) Fair value of assets 7,168 11,081 Unrecognized net actuarial loss 2,486 838 Prepaid benefit cost $ 6,467 $ 6,089 Components of net periodic pension cost Interest cost $ 147 $ 143 Expected return on plan assets (741 ) (694 ) Recognized net loss due to settlement 216 32 Recognized net actuarial loss - 35 Net periodic benefit expense $ (378 ) $ (484 ) Additional disclosure information Accumulated benefit obligation $ 3,187 $ 5,830 Vested benefit obligation $ 3,187 $ 5,830 Discount rate used for net periodic pension cost 2.75 % 2.50 % Discount rate used for disclosure 5.00 % 2.75 % Expected return on plan assets 7.00 % 7.00 % Rate of compensation increase N/A N/A Average remaining service (years) 9 9 |
Schedule of Allocation of Plan Assets [Table Text Block] | (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022 Mutual funds – equities $ 3,727 $ 3,727 $ - $ - Mutual funds – fixed income 3,441 3,441 - - Total assets at fair value $ 7,168 $ 7,168 $ - $ - December 31, 2021 Mutual funds – equities $ 5,762 $ 5,762 $ - $ - Mutual funds – fixed income 5,319 5,319 - - Total assets at fair value $ 11,081 $ 11,081 $ - $ - |
Schedule of Expected Benefit Payments [Table Text Block] | (dollars in thousands) Pension Benefits 2023 $ 693 2024 334 2025 58 2026 281 2027 299 2028 – 2032 1,043 $ 2,708 |
Schedule of Weighted Average Number of Shares [Table Text Block] | 2022 2021 Mutual funds – fixed income 48 % 48 % Mutual funds – equity 52 % 52 % Total 100 % 100 % |
Schedule of Net Funded Status [Table Text Block] | 2022 Valuation 2021 Valuation Source Report Report Bank of Floyd Plan 105.50% 117.03% |
Note 15 - Share-based Compens_2
Note 15 - Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Grant Date Fair Value of Restricted Stock that Weighted Vested During Number of Average Grant The Year Shares Date Fair Value (in thousands) Unvested as of December 31, 2020 - $ - Granted 14,500 11.30 Vested (3,625 ) 11.30 $ 42 Forfeited - - Unvested as of December 31, 2021 10,875 $ 11.30 Granted 14,500 13.00 Vested (6,525 ) 12.13 $ 80 Forfeited - - Unvested as of December 31, 2022 18,850 $ 12.38 |
Note 16 - Income Taxes (Tables)
Note 16 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | (dollars in thousands) 2022 2021 Current $ 1,620 $ 2,096 Deferred 899 327 $ 2,519 $ 2,423 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | (dollars in thousands) 2022 2021 Tax at statutory federal rate $ 2,688 $ 2,500 Tax exempt interest income (88 ) (52 ) Tax exempt insurance income (153 ) (93 ) State income tax, net of federal benefit 72 59 Other - 9 $ 2,519 $ 2,423 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (dollars in thousands) 2022 2021 Deferred tax assets Allowance for loan losses $ 1,347 $ 1,221 Acquired loan credit mark 145 223 Deferred compensation 302 291 Investment impairment charge recorded directly to stockholders’ equity as a component of other comprehensive income 43 48 Minimum pension liability 522 176 Net operating loss carryforward 1,333 1,444 Nonaccrual interest income 324 352 Net unrealized losses on securities available for sale 5,567 392 Other 11 28 $ 9,594 $ 4,175 Deferred tax liabilities Deferred loan origination costs 642 121 Core deposit intangible 277 379 Accrued pension costs 1,395 1,310 Depreciation 1,452 1,239 Other real estate owned 51 - Accretion of discount on investment securities, net 33 4 $ 3,850 $ 3,053 Net deferred tax asset $ 5,744 $ 1,122 |
Note 17 - Transactions With R_2
Note 17 - Transactions With Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | (dollars in thousands) 2022 2021 Balance, beginning $ 9,140 $ 12,427 New loans 4,368 4,351 Repayments (3,479 ) (7,607 ) Change in relationship - (31 ) Balance, ending $ 10,029 $ 9,140 |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Fair Value, off-Balance-Sheet Risks [Table Text Block] | (dollars in thousands) 2022 2021 Commitments to extend credit $ 163,250 $ 140,526 Standby letters of credit 833 1,161 $ 164,083 $ 141,687 |
Note 19 - Regulatory Restrict_2
Note 19 - Regulatory Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual For Capital Adequacy Purposes To Be Well- Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total Capital (to risk weighted assets) $ 97,172 12.42 % $ 62,592 8.00 % $ 78,240 10.00 % Tier 1 Capital (to risk weighted assets) $ 90,878 11.62 % $ 46,944 6.00 % $ 62,592 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 90,878 11.62 % $ 35,208 4.50 % $ 50,856 6.50 % Tier 1 Capital (to average total assets) $ 90,878 8.79 % $ 41,342 4.00 % $ 51,677 5.00 % December 31, 2021 Total Capital (to risk weighted assets) $ 90,617 12.23 % $ 59,256 8.00 % $ 74,071 10.00 % Tier 1 Capital (to risk weighted assets) $ 84,900 11.46 % $ 44,442 6.00 % $ 59,256 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 84,900 11.46 % $ 33,332 4.50 % $ 48,146 6.50 % Tier 1 Capital (to average total assets) $ 84,900 8.58 % $ 39,598 4.00 % $ 49,497 5.00 % |
Note 20 - Parent Company Fina_2
Note 20 - Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | (dollars in thousands) 2022 2021 Assets Cash and due from banks $ 63 $ 26 Investment in affiliate bank 72,559 88,049 Other assets 359 357 Total assets $ 72,981 $ 88,432 Liabilities Borrowings $ - $ 3,200 Other liabilities 45 38 Total liabilities 45 3,238 Stockholders Equity Common stock - - Surplus 33,613 33,588 Retained earnings 62,229 53,745 Accumulated other comprehensive loss (22,906 ) (2,139 ) Total stockholders’ equity 72,936 85,194 Total liabilities and stockholders’ equity $ 72,981 $ 88,432 |
Condensed Income Statement [Table Text Block] | (dollars in thousands) 2022 2021 Income Dividends from affiliate bank $ 5,346 $ 7,995 5,346 7,995 Expenses Interest on borrowings 178 3 Share-based compensation 179 155 Management and professional fees 68 60 Other expenses 7 39 432 257 Income before tax benefit and equity in undistributed income of affiliate 4,914 7,738 Federal income tax benefit 90 55 Income before equity in undistributed income of affiliate 5,004 7,793 Equity in undistributed income of affiliate 5,277 1,689 Net income $ 10,281 $ 9,482 |
Condensed Cash Flow Statement [Table Text Block] | (dollars in thousands) 2022 2021 Cash flows from operating activities Net income $ 10,281 $ 9,482 Adjustments to reconcile net income to net cash provided by operations: Equity in undistributed income of affiliate (5,277 ) (1,689 ) Share-based compensation 179 155 Change in other assets (2 ) (32 ) Change in other liabilities 7 10 Net cash provided by operating activities 5,188 7,926 Cash flows from investing activities Investment in affiliate - (3,200 ) Net cash used by investing activities - (3,200 ) Cash flows from financing activities Advance on short-term line of credit 150 3,200 Repayment on short-term line of credit (3,350 ) - Common stock repurchased (154 ) (6,307 ) Dividends paid (1,797 ) (1,624 ) Net cash used by financing activities (5,151 ) (4,731 ) Net increase (decrease) in cash and cash equivalents 37 (5 ) Cash and cash equivalents, beginning 26 31 Cash and cash equivalents, ending $ 63 $ 26 |
Note 1 - Organization and Sum_3
Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||||||
Jul. 01, 2018 USD ($) shares | Jul. 01, 2016 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2023 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2020 USD ($) | |
Fees, Credit and Debit Cards | $ 2,800 | $ 2,300 | |||||
Insurance Services Revenue, Total | 56 | 60 | |||||
Advertising Expense | 657 | 702 | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 6,248 | 5,677 | $ 4,900 | ||||
Accounting Standards Update 2016-13 [Member] | |||||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 6,300 | ||||||
Accounting Standards Update 2016-13 [Member] | Subsequent Event [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 6,100 | ||||||
Liability for Unfunded Commitments | $ 286 | ||||||
Service Charge on Deposit Accounts [Member] | |||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,900 | 1,500 | |||||
Mortgage Banking [Member] | |||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 399 | $ 1,061 | |||||
Grayson Bankshares, Inc [Member] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 1.76 | ||||||
Grayson Bankshares, Inc [Member] | Parkway Acquisition Corp. [Member] | |||||||
Ownership Percentage in Newly Issued Shares | 60% | ||||||
Cardinal Bankshares Corporation [Member] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 1.30 | ||||||
Cardinal Bankshares Corporation [Member] | Core Deposits [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years | ||||||
Cardinal Bankshares Corporation [Member] | Parkway Acquisition Corp. [Member] | |||||||
Ownership Percentage in Newly Issued Shares | 40% | ||||||
Great State Bank [Member] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 1.21 | ||||||
Stock Issued During Period, Shares, Acquisitions (in shares) | shares | 1,191,899 | ||||||
Stock Issued During Period, Value, Acquisitions | $ 15,500 | ||||||
Great State Bank [Member] | Core Deposits [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years |
Note 1 - Organization and Sum_4
Note 1 - Organization and Summary of Significant Accounting Policies - Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property and equipment useful life (Year) | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property and equipment useful life (Year) | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property and equipment useful life (Year) | 5 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property and equipment useful life (Year) | 12 years |
Note 1 - Organization and Sum_5
Note 1 - Organization and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 85,194 | $ 85,106 |
Balance | 72,936 | 85,194 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | ||
Balance | (1,477) | 582 |
Other comprehensive income (loss) before Reclassifications | (19,473) | (1,850) |
Amounts reclassified from accumulated other comprehensive loss | 8 | (209) |
Balance | (20,942) | (1,477) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Balance | (662) | (1,103) |
Other comprehensive income (loss) before Reclassifications | (1,302) | 441 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance | (1,964) | (662) |
AOCI Attributable to Parent [Member] | ||
Balance | (2,139) | (521) |
Other comprehensive income (loss) before Reclassifications | (20,775) | (1,409) |
Amounts reclassified from accumulated other comprehensive loss | 8 | (209) |
Balance | $ (22,906) | $ (2,139) |
Note 2 - Restrictions on Cash (
Note 2 - Restrictions on Cash (Details Textual) - USD ($) Pure in Thousands, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 26, 2020 |
Reserve Requirements with Federal Reserve, Reserve Requirement Ratio | 0% | ||
Reserve Requirements with Federal Reserve | $ 0 | $ 0 |
Note 3 - Investment Securitie_2
Note 3 - Investment Securities (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Restricted Investments | $ 1,950 | $ 1,971 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | 82 | |
Percentage of Debt Securities with Unrealized Losses Depreciated | 16.66% | |
Proceeds from Sale of Debt Securities, Available-for-Sale | $ 2,507 | 8,619 |
Proceeds from Calls of Debt Securities, Available-for-sale | 1,700 | 500 |
Deposit Liabilities, Collateral Issued, Financial Instruments | $ 33,700 | $ 32,000 |
Note 3 - Investment Securitie_3
Note 3 - Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized cost | $ 161,660 | $ 131,584 |
Unrealized gains | 16 | 404 |
Unrealized losses | (26,525) | (2,273) |
Investment securities available for sale | 135,151 | 129,715 |
US Treasury Securities [Member] | ||
Amortized cost | 4,980 | 20,333 |
Unrealized gains | 0 | 7 |
Unrealized losses | (146) | (191) |
Investment securities available for sale | 4,834 | 20,149 |
US Government Agencies Debt Securities [Member] | ||
Amortized cost | 25,025 | |
Unrealized gains | 0 | |
Unrealized losses | (4,179) | |
Investment securities available for sale | 20,846 | |
Collateralized Mortgage-Backed Securities [Member] | ||
Amortized cost | 78,755 | 64,437 |
Unrealized gains | 0 | 208 |
Unrealized losses | (11,485) | (1,334) |
Investment securities available for sale | 67,270 | 63,311 |
Corporate Debt Securities [Member] | ||
Amortized cost | 1,500 | 1,500 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Investment securities available for sale | 1,500 | 1,500 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized cost | 51,400 | 45,314 |
Unrealized gains | 16 | 189 |
Unrealized losses | (10,715) | (748) |
Investment securities available for sale | $ 40,701 | $ 44,755 |
Note 3 - Investment Securitie_4
Note 3 - Investment Securities - Continuous Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Less than 12 months, fair value | $ 56,427 | $ 95,386 | |
Less than 12 months, unrealized losses | $ (6,762) | (2,114) | |
12 months or more, fair value | 76,241 | 3,560 | |
12 months or more, unrealized losses | (19,763) | (159) | |
Fair value | 132,668 | 98,946 | |
Unrealized losses | (26,525) | (2,273) | |
US Treasury Securities [Member] | |||
Less than 12 months, fair value | 4,834 | ||
Less than 12 months, unrealized losses | (146) | ||
12 months or more, fair value | 0 | ||
12 months or more, unrealized losses | 0 | ||
Fair value | 4,834 | ||
Unrealized losses | (146) | ||
US Government Agencies Debt Securities [Member] | |||
Less than 12 months, fair value | 8,563 | 15,091 | |
Less than 12 months, unrealized losses | (1,227) | (191) | |
12 months or more, fair value | 12,282 | 0 | |
12 months or more, unrealized losses | (2,952) | 0 | |
Fair value | 20,845 | 15,091 | |
Unrealized losses | (4,179) | (191) | |
Collateralized Mortgage-Backed Securities [Member] | |||
Less than 12 months, fair value | 27,796 | 51,990 | |
Less than 12 months, unrealized losses | (2,756) | (1,334) | |
12 months or more, fair value | 39,467 | 0 | |
12 months or more, unrealized losses | (8,729) | 0 | |
Fair value | 67,263 | 51,990 | |
Unrealized losses | (11,485) | (1,334) | |
US States and Political Subdivisions Debt Securities [Member] | |||
Less than 12 months, fair value | 15,234 | 28,305 | |
Less than 12 months, unrealized losses | (2,633) | (589) | |
12 months or more, fair value | 24,492 | 3,560 | |
12 months or more, unrealized losses | (8,082) | (159) | |
Fair value | 39,726 | 31,865 | |
Unrealized losses | $ (10,715) | $ (748) |
Note 3 - Investment Securitie_5
Note 3 - Investment Securities - Realized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Realized gains | $ 0 | $ 265 |
Realized losses | (10) | 0 |
Net realized gains (losses) on securities | $ (10) | $ 265 |
Note 3 - Investment Securitie_6
Note 3 - Investment Securities - Maturities of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Due in one year or less, amortized cost | $ 78 | |
Due in one year or less, fair value | 78 | |
Due after one year through five years, amortized cost | 13,659 | |
Due after one year through five years, fair value | 13,114 | |
Due after five years through ten years, amortized cost | 74,141 | |
Due after five years through ten years, fair value | 62,775 | |
Due after ten years, amortized cost | 73,782 | |
Due after ten years, fair value | 59,184 | |
Amortized cost | 161,660 | $ 131,584 |
Fair value | $ 135,151 | $ 129,715 |
Note 4 - Loans Receivable (Deta
Note 4 - Loans Receivable (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Deferred Commitment Fee | $ 1,100 | $ 2,700 |
Financing Receivable, Deferred Payments | 4,100 | 3,300 |
Financing Receivable, before Allowance for Credit Loss, Total | 659,004 | |
SBA PPP Loans [Member] | ||
Financing Receivable, before Allowance for Credit Loss, Total | 71 | 24,528 |
SBA PPP Loans [Member] | SBA CARES Act Paycheck Protection Program [Member] | ||
Financing Receivable, Deferred Commitment Fee | 8 | 1,800 |
Financing Receivable, before Allowance for Credit Loss, Total | $ 79 | $ 26,300 |
Note 4 - Loans Receivable - Com
Note 4 - Loans Receivable - Components of Loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Loans, net of deferred fees and costs | $ 754,872 | $ 683,532 | |
Allowance for loan losses | (6,248) | (5,677) | $ (4,900) |
Loans, net of allowance for loan losses | 748,624 | 677,855 | |
Financing Receivable, before Allowance for Credit Loss, Total | 659,004 | ||
Loans receivable | 659,004 | ||
Construction and Development Loan [Member] | |||
Loans, net of deferred fees and costs | 49,728 | 44,252 | |
Allowance for loan losses | (526) | (484) | (499) |
Financing Receivable, before Allowance for Credit Loss, Total | 49,728 | 44,252 | |
Loans receivable | 49,728 | 44,252 | |
SBA PPP Loans [Member] | |||
Loans, net of deferred fees and costs | $ 71 | $ 24,528 | |
Number of SBA Loans | 7 | 809 | |
Financing receivables, percent mix one | 100% | 100% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 71 | $ 24,528 | |
Financing receivables, percent mix two | 100% | 100% | |
Number of industry SBA loans | 7 | 809 | |
Industry percentage mix one of SBA loans | 100% | 100% | |
Loans receivable | $ 71 | $ 24,528 | |
Industry percentage mix two of SBA loans | 100% | 100% | |
SBA PPP Loans [Member] | Manufacturing [Member] | |||
Number of SBA Loans | 0 | 26 | |
Financing receivables, percent mix one | 0% | 3.21% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 0 | $ 2,067 | |
Financing receivables, percent mix two | 0% | 8.43% | |
Number of industry SBA loans | 0 | 26 | |
Industry percentage mix one of SBA loans | 0% | 3.21% | |
Loans receivable | $ 0 | $ 2,067 | |
Industry percentage mix two of SBA loans | 0% | 8.43% | |
SBA PPP Loans [Member] | Retail Trade [Member] | |||
Number of SBA Loans | 1 | 61 | |
Financing receivables, percent mix one | 14.29% | 7.54% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 20 | $ 1,124 | |
Financing receivables, percent mix two | 28.17% | 4.58% | |
Number of industry SBA loans | 1 | 61 | |
Industry percentage mix one of SBA loans | 14.29% | 7.54% | |
Loans receivable | $ 20 | $ 1,124 | |
Industry percentage mix two of SBA loans | 28.17% | 4.58% | |
SBA PPP Loans [Member] | Construction Industry [Member] | |||
Number of SBA Loans | 1 | 127 | |
Financing receivables, percent mix one | 14.29% | 15.70% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 4 | $ 2,855 | |
Financing receivables, percent mix two | 5.63% | 11.64% | |
Number of industry SBA loans | 1 | 127 | |
Industry percentage mix one of SBA loans | 14.29% | 15.70% | |
Loans receivable | $ 4 | $ 2,855 | |
Industry percentage mix two of SBA loans | 5.63% | 11.64% | |
SBA PPP Loans [Member] | Healthcare Sector [Member] | |||
Number of SBA Loans | 1 | 18 | |
Financing receivables, percent mix one | 14.29% | 2.23% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 4 | $ 1,300 | |
Financing receivables, percent mix two | 5.63% | 5.30% | |
Number of industry SBA loans | 1 | 18 | |
Industry percentage mix one of SBA loans | 14.29% | 2.23% | |
Loans receivable | $ 4 | $ 1,300 | |
Industry percentage mix two of SBA loans | 5.63% | 5.30% | |
SBA PPP Loans [Member] | Accommodation and Retail Services [Member] | |||
Number of SBA Loans | 1 | 58 | |
Financing receivables, percent mix one | 14.29% | 7.17% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 27 | $ 4,235 | |
Financing receivables, percent mix two | 38.03% | 17.27% | |
Number of industry SBA loans | 1 | 58 | |
Industry percentage mix one of SBA loans | 14.29% | 7.17% | |
Loans receivable | $ 27 | $ 4,235 | |
Industry percentage mix two of SBA loans | 38.03% | 17.27% | |
SBA PPP Loans [Member] | Education Services [Member] | |||
Number of SBA Loans | 0 | 4 | |
Financing receivables, percent mix one | 0% | 0.49% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 0 | $ 2,424 | |
Financing receivables, percent mix two | 0% | 9.88% | |
Number of industry SBA loans | 0 | 4 | |
Industry percentage mix one of SBA loans | 0% | 0.49% | |
Loans receivable | $ 0 | $ 2,424 | |
Industry percentage mix two of SBA loans | 0% | 9.88% | |
SBA PPP Loans [Member] | General and Other [Member] | |||
Number of SBA Loans | 3 | 515 | |
Financing receivables, percent mix one | 42.84% | 63.66% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 16 | $ 10,523 | |
Financing receivables, percent mix two | 22.54% | 42.90% | |
Number of industry SBA loans | 3 | 515 | |
Industry percentage mix one of SBA loans | 42.84% | 63.66% | |
Loans receivable | $ 16 | $ 10,523 | |
Industry percentage mix two of SBA loans | 22.54% | 42.90% | |
SBA PPP Loans [Member] | SBA Tier 1 [Member] | |||
Number of SBA Loans | 0 | 1 | |
Financing receivables, percent mix one | 0% | 0.12% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 0 | $ 1,950 | |
Financing receivables, percent mix two | 0% | 7.95% | |
Number of industry SBA loans | 0 | 1 | |
Industry percentage mix one of SBA loans | 0% | 0.12% | |
Loans receivable | $ 0 | $ 1,950 | |
Industry percentage mix two of SBA loans | 0% | 7.95% | |
SBA PPP Loans [Member] | SBA Tier 2 [Member] | |||
Number of SBA Loans | 0 | 11 | |
Financing receivables, percent mix one | 0% | 1.36% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 0 | $ 5,018 | |
Financing receivables, percent mix two | 0% | 20.46% | |
Number of industry SBA loans | 0 | 11 | |
Industry percentage mix one of SBA loans | 0% | 1.36% | |
Loans receivable | $ 0 | $ 5,018 | |
Industry percentage mix two of SBA loans | 0% | 20.46% | |
SBA PPP Loans [Member] | SBA Tier 3 [Member] | |||
Number of SBA Loans | 7 | 797 | |
Financing receivables, percent mix one | 100% | 98.52% | |
Financing Receivable, before Allowance for Credit Loss, Total | $ 71 | $ 17,560 | |
Financing receivables, percent mix two | 100% | 71.59% | |
Number of industry SBA loans | 7 | 797 | |
Industry percentage mix one of SBA loans | 100% | 98.52% | |
Loans receivable | $ 71 | $ 17,560 | |
Industry percentage mix two of SBA loans | 100% | 71.59% | |
Farmland Loan [Member] | |||
Loans, net of deferred fees and costs | $ 23,688 | $ 25,026 | |
Allowance for loan losses | (259) | (315) | (406) |
Financing Receivable, before Allowance for Credit Loss, Total | 23,688 | 25,026 | |
Loans receivable | 23,688 | 25,026 | |
Residential Loan [Member] | |||
Loans, net of deferred fees and costs | 358,526 | 298,413 | |
Allowance for loan losses | (2,820) | (2,521) | (2,167) |
Financing Receivable, before Allowance for Credit Loss, Total | 358,526 | 298,413 | |
Loans receivable | 358,526 | 298,413 | |
Commercial Mortgage Loan [Member] | |||
Loans, net of deferred fees and costs | 263,664 | 230,071 | |
Allowance for loan losses | (2,197) | (1,908) | (1,421) |
Financing Receivable, before Allowance for Credit Loss, Total | 263,664 | 230,071 | |
Loans receivable | 263,664 | 230,071 | |
Commercial and Agricultural Loan [Member] | |||
Loans, net of deferred fees and costs | 39,434 | 38,442 | |
Allowance for loan losses | (312) | (321) | (293) |
Financing Receivable, before Allowance for Credit Loss, Total | 39,434 | 38,442 | |
Loans receivable | 39,434 | 38,442 | |
Consumer and Other Loan [Member] | |||
Loans, net of deferred fees and costs | 19,761 | 22,800 | |
Allowance for loan losses | (134) | (128) | $ (114) |
Financing Receivable, before Allowance for Credit Loss, Total | 19,761 | 22,800 | |
Loans receivable | $ 19,761 | $ 22,800 |
Note 5 - Allowance for Loan L_3
Note 5 - Allowance for Loan Losses and Impaired Loans (Details Textual) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 6,248 | $ 5,677 | $ 4,900 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 606 | 723 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 659,004 | ||||
Impaired Financing Receivable, Recorded Investment | [1] | 3,033 | 3,593 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | [1] | 584 | 713 | ||
Financing Receivable, Troubled Debt Restructuring | 3,000 | 3,200 | |||
Financing Receivable, Troubled Debt Restructuring, Collectively Evaluated for impairment | 2,300 | 2,600 | |||
Financing Receivable, Troubled Debt Restructuring, Related Allowance | $ 115 | $ 142 | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | 0 | [2] | 0 | ||
Financing Receivable, Modifications, Number of Contracts | 3 | 1 | |||
Financing Receivable, Outstanding Loan Payments Approved for Deferment | $ 66,500 | ||||
Financing Receivable, Purchased with Credit Deterioration, Amount at Par Value | $ 0 | 0 | |||
Collateral Pledged [Member] | |||||
Impaired Financing Receivable, Recorded Investment | 695 | 995 | |||
Doubtful [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 0 | 0 | |||
Unallocated Financing Receivables [Member] | |||||
Financing Receivable, Credit Loss, Expense (Reversal) | 0 | 0 | |||
SBA PPP Loans [Member] | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 71 | 24,528 | |||
SBA PPP Loans [Member] | SBA CARES Act Paycheck Protection Program [Member] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 0 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 79 | $ 26,300 | |||
[1]Recorded investment is the loan balance, net of any charge-offs[2]Loans past due 30 days or more are considered to be in default. |
Note 5 - Allowance for Loan L_4
Note 5 - Allowance for Loan Losses and Impaired Loans - Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 5,677 | $ 4,900 |
Charge-offs | (128) | (110) |
Recoveries | 93 | 164 |
Financing Receivable, Credit Loss, Expense (Reversal) | 606 | 723 |
Balance | 6,248 | 5,677 |
Ending balance: individually evaluated for impairment | 4 | 8 |
Ending balance: collectively evaluated for impairment | 6,244 | 5,669 |
Loans receivable | 659,004 | |
Ending balance: individually evaluated for impairment | 995 | |
Ending balance: collectively evaluated for impairment | 657,728 | |
Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | 204 | 281 |
Construction and Development Loan [Member] | ||
Balance | 484 | 499 |
Charge-offs | 0 | |
Recoveries | 3 | 5 |
Financing Receivable, Credit Loss, Expense (Reversal) | 39 | (20) |
Balance | 526 | 484 |
Ending balance: individually evaluated for impairment | 4 | 0 |
Ending balance: collectively evaluated for impairment | 522 | 484 |
Loans receivable | 49,728 | 44,252 |
Ending balance: individually evaluated for impairment | 313 | 712 |
Ending balance: collectively evaluated for impairment | 49,415 | 43,540 |
Construction and Development Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | 0 | |
Farmland Loan [Member] | ||
Balance | 315 | 406 |
Charge-offs | 0 | |
Recoveries | 0 | |
Financing Receivable, Credit Loss, Expense (Reversal) | (56) | (91) |
Balance | 259 | 315 |
Ending balance: individually evaluated for impairment | 0 | 8 |
Ending balance: collectively evaluated for impairment | 259 | 307 |
Loans receivable | 23,688 | 25,026 |
Ending balance: individually evaluated for impairment | 0 | 283 |
Ending balance: collectively evaluated for impairment | 23,688 | 24,743 |
Farmland Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | 0 | |
Residential Loan [Member] | ||
Balance | 2,521 | 2,167 |
Charge-offs | 0 | |
Recoveries | 12 | 2 |
Financing Receivable, Credit Loss, Expense (Reversal) | 287 | 352 |
Balance | 2,820 | 2,521 |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 2,820 | 2,521 |
Loans receivable | 358,526 | 298,413 |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 358,410 | 298,279 |
Residential Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | 116 | 134 |
Commercial Mortgage Loan [Member] | ||
Balance | 1,908 | 1,421 |
Charge-offs | 0 | |
Recoveries | 8 | 61 |
Financing Receivable, Credit Loss, Expense (Reversal) | 281 | 426 |
Balance | 2,197 | 1,908 |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 2,197 | 1,908 |
Loans receivable | 263,664 | 230,071 |
Ending balance: individually evaluated for impairment | 382 | 0 |
Ending balance: collectively evaluated for impairment | 263,194 | 229,970 |
Commercial Mortgage Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | 88 | 101 |
Commercial and Agricultural Loan [Member] | ||
Balance | 321 | 293 |
Charge-offs | (14) | (8) |
Recoveries | 30 | 53 |
Financing Receivable, Credit Loss, Expense (Reversal) | (25) | (17) |
Balance | 312 | 321 |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 312 | 321 |
Loans receivable | 39,434 | 38,442 |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 39,434 | 38,396 |
Commercial and Agricultural Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | 0 | 46 |
Consumer and Other Loan [Member] | ||
Balance | 128 | 114 |
Charge-offs | (114) | (102) |
Recoveries | 40 | 43 |
Financing Receivable, Credit Loss, Expense (Reversal) | 80 | 73 |
Balance | 134 | 128 |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 134 | 128 |
Loans receivable | 19,761 | 22,800 |
Ending balance: individually evaluated for impairment | 0 | |
Ending balance: collectively evaluated for impairment | 19,761 | 22,800 |
Consumer and Other Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | 0 | |
Loans Excluding SBA PPP Loans [Member] | ||
Loans receivable | 754,801 | |
Ending balance: individually evaluated for impairment | 695 | |
Ending balance: collectively evaluated for impairment | 753,902 | |
Loans Excluding SBA PPP Loans [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans receivable | $ 204 | $ 281 |
Note 5 - Allowance for Loan L_5
Note 5 - Allowance for Loan Losses and Impaired Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans, net of deferred fees and costs | $ 754,872 | $ 683,532 |
Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 49,728 | 44,252 |
Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 23,688 | 25,026 |
Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 358,526 | 298,413 |
Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 263,664 | 230,071 |
Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 39,434 | 38,442 |
SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 71 | 24,528 |
Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 19,761 | 22,800 |
Pass [Member] | ||
Loans, net of deferred fees and costs | 745,567 | 666,656 |
Pass [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 49,384 | 43,423 |
Pass [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 21,156 | 21,430 |
Pass [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 356,327 | 296,160 |
Pass [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 259,529 | 220,061 |
Pass [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 39,339 | 38,254 |
Pass [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 71 | 24,528 |
Pass [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 19,761 | 22,800 |
Watch [Member] | ||
Loans, net of deferred fees and costs | 3,904 | 6,243 |
Watch [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Watch [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 814 | 831 |
Watch [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 947 | 356 |
Watch [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 2,130 | 5,036 |
Watch [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 13 | 20 |
Watch [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Watch [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Special Mention [Member] | ||
Loans, net of deferred fees and costs | 1,120 | 4,669 |
Special Mention [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Special Mention [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 468 | 480 |
Special Mention [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 499 | 582 |
Special Mention [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 153 | 3,607 |
Special Mention [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Special Mention [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Special Mention [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Substandard [Member] | ||
Loans, net of deferred fees and costs | 4,281 | 5,964 |
Substandard [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 344 | 829 |
Substandard [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 1,250 | 2,285 |
Substandard [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 753 | 1,315 |
Substandard [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 1,852 | 1,367 |
Substandard [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 82 | 168 |
Substandard [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Substandard [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | $ 0 | $ 0 |
Note 5 - Allowance for Loan L_6
Note 5 - Allowance for Loan Losses and Impaired Loans - Analysis of Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans, net of deferred fees and costs | $ 754,872 | $ 683,532 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 1,634 | 1,320 |
Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 49,728 | 44,252 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 344 | 426 |
Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 23,688 | 25,026 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 94 | 117 |
Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 358,526 | 298,413 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 565 | 596 |
Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 263,664 | 230,071 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 622 | 121 |
Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 39,434 | 38,442 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 9 | 60 |
SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 71 | 24,528 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 19,761 | 22,800 |
Past due and still accruing | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, net of deferred fees and costs | 147 | 315 |
Financial Asset, 30 to 59 Days Past Due [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 4 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 94 | 246 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 44 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 58 |
Financial Asset, 30 to 59 Days Past Due [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 5 | 11 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, net of deferred fees and costs | 431 | 163 |
Financial Asset, 60 to 89 Days Past Due [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 30 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 315 | 163 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 86 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, net of deferred fees and costs | 608 | 920 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 313 | 426 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 117 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 240 | 285 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 46 | 46 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 9 | 46 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, Past Due [Member] | ||
Loans, net of deferred fees and costs | 1,186 | 1,398 |
Financial Asset, Past Due [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 343 | 426 |
Financial Asset, Past Due [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 4 | 117 |
Financial Asset, Past Due [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 649 | 694 |
Financial Asset, Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 176 | 46 |
Financial Asset, Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 9 | 104 |
Financial Asset, Past Due [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 0 | 0 |
Financial Asset, Past Due [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | 5 | 11 |
Financial Asset, Not Past Due [Member] | ||
Loans, net of deferred fees and costs | 753,686 | 682,134 |
Financial Asset, Not Past Due [Member] | Construction and Development Loan [Member] | ||
Loans, net of deferred fees and costs | 49,385 | 43,826 |
Financial Asset, Not Past Due [Member] | Farmland Loan [Member] | ||
Loans, net of deferred fees and costs | 23,684 | 24,909 |
Financial Asset, Not Past Due [Member] | Residential Loan [Member] | ||
Loans, net of deferred fees and costs | 357,877 | 297,719 |
Financial Asset, Not Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Loans, net of deferred fees and costs | 263,488 | 230,025 |
Financial Asset, Not Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Loans, net of deferred fees and costs | 39,425 | 38,338 |
Financial Asset, Not Past Due [Member] | SBA PPP Loans [Member] | ||
Loans, net of deferred fees and costs | 71 | 24,528 |
Financial Asset, Not Past Due [Member] | Consumer and Other Loan [Member] | ||
Loans, net of deferred fees and costs | $ 19,756 | $ 22,789 |
Note 5 - Allowance for Loan L_7
Note 5 - Allowance for Loan Losses and Impaired Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Recorded investment with no related allowance | [1] | $ 584 | $ 713 |
Unpaid principal balance with no related allowance | 598 | 712 | |
Recorded investment with related allowance | [1] | 2,449 | 2,880 |
Unpaid principal balance with related allowance | 2,623 | 3,073 | |
Related allowance | 119 | 150 | |
Recorded investment | [1] | 3,033 | 3,593 |
Unpaid principal balance | 3,221 | 3,785 | |
Average recorded investment | 3,633 | 5,607 | |
Interest income recognized | 234 | 1,116 | |
Construction and Development Loan [Member] | |||
Recorded investment with no related allowance | [1] | 203 | 713 |
Unpaid principal balance with no related allowance | 203 | 712 | |
Recorded investment with related allowance | [1] | 119 | 136 |
Unpaid principal balance with related allowance | 119 | 136 | |
Related allowance | 4 | 8 | |
Recorded investment | [1] | 322 | 849 |
Unpaid principal balance | 322 | 848 | |
Average recorded investment | 645 | 807 | |
Interest income recognized | 55 | 22 | |
Farmland Loan [Member] | |||
Recorded investment with related allowance | [1] | 355 | 394 |
Unpaid principal balance with related allowance | 371 | 410 | |
Related allowance | 15 | 9 | |
Recorded investment | [1] | 355 | 394 |
Unpaid principal balance | 371 | 410 | |
Average recorded investment | 372 | 2,137 | |
Interest income recognized | 23 | 895 | |
Residential Loan [Member] | |||
Recorded investment with related allowance | [1] | 1,885 | 2,248 |
Unpaid principal balance with related allowance | 2,043 | 2,425 | |
Related allowance | 96 | 127 | |
Recorded investment | 1,885 | 2,248 | |
Unpaid principal balance | 2,043 | 2,425 | |
Average recorded investment | 2,124 | 2,577 | |
Interest income recognized | 133 | 191 | |
Commercial Mortgage Loan [Member] | |||
Recorded investment with no related allowance | [1] | 381 | |
Unpaid principal balance with no related allowance | 395 | ||
Recorded investment with related allowance | [1] | 66 | 70 |
Unpaid principal balance with related allowance | 66 | 70 | |
Related allowance | 3 | 4 | |
Recorded investment | [1] | 447 | 70 |
Unpaid principal balance | 461 | 70 | |
Average recorded investment | 464 | 46 | |
Interest income recognized | 21 | 6 | |
Commercial and Agricultural Loan [Member] | |||
Recorded investment with related allowance | [1] | 24 | 32 |
Unpaid principal balance with related allowance | 24 | 32 | |
Related allowance | 1 | 2 | |
Recorded investment | [1] | 24 | 32 |
Unpaid principal balance | 24 | 32 | |
Average recorded investment | 28 | 40 | |
Interest income recognized | 2 | ||
Consumer and Other Loan [Member] | |||
Unpaid principal balance with related allowance | 0 | ||
Unpaid principal balance | $ 0 | ||
Average recorded investment | $ 0 | ||
[1]Recorded investment is the loan balance, net of any charge-offs |
Note 5 - Allowance for Loan L_8
Note 5 - Allowance for Loan Losses and Impaired Loans - Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |||
Number of contracts, subsequently defaulted | 0 | [1] | 0 | |
Premodification, subsequently defaulted | [1] | $ 0 | ||
Postmodification, subsequently defaulted | [1] | $ 0 | ||
Number of contracts | 3 | 1 | ||
Premodification | $ 482 | $ 73 | ||
Postmodification | $ 460 | $ 70 | ||
Construction and Development Loan [Member] | ||||
Number of contracts, subsequently defaulted | [1] | 0 | ||
Premodification, subsequently defaulted | [1] | $ 0 | ||
Postmodification, subsequently defaulted | [1] | $ 0 | ||
Farmland Loan [Member] | ||||
Number of contracts, subsequently defaulted | [1] | 0 | ||
Premodification, subsequently defaulted | [1] | $ 0 | ||
Postmodification, subsequently defaulted | [1] | $ 0 | ||
Residential Loan [Member] | ||||
Number of contracts, subsequently defaulted | [1] | 0 | ||
Premodification, subsequently defaulted | [1] | $ 0 | ||
Postmodification, subsequently defaulted | [1] | $ 0 | ||
Number of contracts | 2 | 0 | ||
Premodification | $ 79 | $ 0 | ||
Postmodification | $ 79 | $ 0 | ||
Commercial Mortgage Loan [Member] | ||||
Number of contracts, subsequently defaulted | [1] | 0 | ||
Premodification, subsequently defaulted | [1] | $ 0 | ||
Postmodification, subsequently defaulted | [1] | $ 0 | ||
Number of contracts | 1 | 1 | ||
Premodification | $ 403 | $ 73 | ||
Postmodification | $ 381 | $ 70 | ||
Commercial and Agricultural Loan [Member] | ||||
Number of contracts, subsequently defaulted | [1] | 0 | ||
Premodification, subsequently defaulted | [1] | $ 0 | ||
Postmodification, subsequently defaulted | [1] | $ 0 | ||
Consumer and Other Loan [Member] | ||||
Number of contracts, subsequently defaulted | [1] | 0 | ||
Premodification, subsequently defaulted | [1] | $ 0 | ||
Postmodification, subsequently defaulted | [1] | $ 0 | ||
[1]Loans past due 30 days or more are considered to be in default. |
Note 5 - Allowance for Loan L_9
Note 5 - Allowance for Loan Losses and Impaired Loans - Carrying Amount of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Outstanding balance | $ 659,004 | |
Loans, net of allowance for loan losses of $6,248 at December 31, 2022 and $5,677 at December 31, 2021 | $ 748,624 | 677,855 |
Financial Asset Acquired with Credit Deterioration [Member] | ||
Outstanding balance | 204 | 281 |
Loans, net of allowance for loan losses of $6,248 at December 31, 2022 and $5,677 at December 31, 2021 | 204 | 281 |
Residential Loan [Member] | ||
Outstanding balance | 358,526 | 298,413 |
Residential Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Outstanding balance | 116 | 134 |
Commercial Mortgage Loan [Member] | ||
Outstanding balance | 263,664 | 230,071 |
Commercial Mortgage Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Outstanding balance | 88 | 101 |
Commercial and Agricultural Loan [Member] | ||
Outstanding balance | 39,434 | 38,442 |
Commercial and Agricultural Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Outstanding balance | $ 0 | $ 46 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation, Total | $ 1,690 | $ 1,492 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment - Components of Property and Equipment and Total Accumulated Depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, plant, and equipment gross | $ 47,485 | $ 44,967 |
Less accumulated depreciation | (15,732) | (14,111) |
Property, plant, and equipment net | 31,753 | 30,856 |
Land [Member] | ||
Property, plant, and equipment gross | 8,429 | 9,178 |
Building and Building Improvements [Member] | ||
Property, plant, and equipment gross | 25,835 | 24,170 |
Furniture and Equipment [Member] | ||
Property, plant, and equipment gross | $ 13,221 | $ 11,619 |
Note 7 - Goodwill and Intangi_3
Note 7 - Goodwill and Intangible Assets - Change in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Beginning of year | $ 3,257 | $ 3,257 |
Impairment | 0 | 0 |
End of the period | $ 3,257 | $ 3,257 |
Note 7 - Goodwill and Intangi_4
Note 7 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 1,764 | |
Balance | 1,286 | $ 1,764 |
Core Deposits [Member] | ||
Balance | 1,764 | 2,359 |
Amortization expense | (478) | (595) |
Balance | $ 1,286 | $ 1,764 |
Note 7 - Goodwill and Intangi_5
Note 7 - Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
For the year ended December 31, 2023 | $ 369 | |
For the year ended December 31, 2024 | 262 | |
For the year ended December 31, 2025 | 154 | |
For the year ended December 31, 2026 | 97 | |
For the year ended December 31, 2027 | 81 | |
Thereafter | 323 | |
Total | $ 1,286 | $ 1,764 |
Note 8 - Leases - Lease Expense
Note 8 - Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted average remaining lease term (years) (Year) | 5 years 7 months 2 days | 6 years 8 months 12 days |
Weighted average discount rate | 2.75% | 2.45% |
Operating lease expense | $ 158 | $ 153 |
Short-term lease expense | 8 | 29 |
Total lease expense | 166 | 182 |
Cash paid for amounts included in lease liabilities | 158 | 153 |
Other Liabilities [Member] | ||
Lease liabilities | 739 | 553 |
Other Assets [Member] | ||
Right-of-use assets | $ 739 | $ 553 |
Note 8 - Leases - Maturity Sche
Note 8 - Leases - Maturity Schedule of Undiscounted Cash flow (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Twelve months ending December 31, 2023 | $ 153 | |
Twelve months ending December 31, 2024 | 139 | |
Twelve months ending December 31, 2025 | 143 | |
Twelve months ending December 31, 2026 | 143 | |
Twelve months ending December 31, 2027 | 107 | |
Thereafter | 114 | |
Total undiscounted cash flows | 799 | |
Less discount | (60) | |
Other Liabilities [Member] | ||
Lease liabilities | $ 739 | $ 553 |
Note 9 - Deposits (Details Text
Note 9 - Deposits (Details Textual) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Time Deposits, at or Above FDIC Insurance Limit | $ 49.5 | $ 41.3 |
Note 9 - Deposits - Deposits (D
Note 9 - Deposits - Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Interest-bearing demand deposit accounts | $ 144,540 | $ 119,320 |
Money market | 87,012 | 103,217 |
Savings | 194,723 | 187,248 |
Time deposits | 183,542 | 190,334 |
Total interest-bearing deposits | 609,817 | 600,119 |
Noninterest-bearing | 310,510 | 298,107 |
Total deposits | $ 920,327 | $ 898,226 |
Note 9 - Deposits - Scheduled M
Note 9 - Deposits - Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 120,614 |
2024 | 21,892 |
2025 | 18,556 |
2026 | 13,951 |
2027 | 8,529 |
After Five Years | 0 |
Total | $ 183,542 |
Note 10 - Short-term Borrowin_2
Note 10 - Short-term Borrowings (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 21, 2021 | |
Short-Term Debt, Total | $ 0 | ||
Proceeds from Lines of Credit, Total | 150 | $ 3,200 | |
Repayments of Lines of Credit | 3,350 | 0 | |
Unsecured Lines of Credit [Member] | |||
Line of Credit Facility, Current Borrowing Capacity | 73,000 | ||
Unsecured Lines of Credit [Member] | Federal Home Loan Bank [Member] | |||
Line of Credit Facility, Current Borrowing Capacity | 255,900 | ||
Unsecured Lines of Credit [Member] | Revolving Credit Facility [Member] | |||
Short-Term Debt, Total | $ 3,200 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 5,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.25% | ||
Proceeds from Lines of Credit, Total | 150 | ||
Repayments of Lines of Credit | $ 3,350 | ||
Unsecured Lines of Credit [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1% |
Note 11 - Long-term Borrowings
Note 11 - Long-term Borrowings (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Advance from Federal Home Loan Bank, Total | $ 0 | $ 5,000 | $ 10,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Prepayment Amount | 5,000 | 5,000 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Repayment and Penalties | $ 8 | $ 44 |
Note 12 - Financial Instrumen_3
Note 12 - Financial Instruments (Details Textual) Pure in Thousands, $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Number of Derivative Instruments Held | 0 | 0 |
Other Real Estate, Ending Balance | $ 235 | $ 0 |
Fair Value, Recurring [Member] | ||
Liabilities, Fair Value Disclosure, Total | 0 | 0 |
Fair Value, Nonrecurring [Member] | ||
Liabilities, Fair Value Disclosure, Total | $ 0 | $ 0 |
Note 12 - Financial Instrumen_4
Note 12 - Financial Instruments - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Reported Value Measurement [Member] | ||
Net Loans | $ 748,624 | $ 677,855 |
Time Deposits | 183,542 | 190,334 |
Time Deposits | 183,542 | 190,334 |
FHLB Advances | 5,000 | |
Estimate of Fair Value Measurement [Member] | ||
Net Loans | 702,549 | 671,826 |
Time Deposits | 181,525 | 191,464 |
Time Deposits | 181,525 | 191,464 |
FHLB Advances | 4,951 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Net Loans | 0 | 0 |
Time Deposits | 181,525 | 191,464 |
Time Deposits | 181,525 | 191,464 |
FHLB Advances | 4,951 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Net Loans | $ 702,549 | 671,826 |
FHLB Advances | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
FHLB Advances | $ 0 |
Note 12 - Financial Instrumen_5
Note 12 - Financial Instruments - Assets Recorded at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment securities available for sale | $ 135,151 | $ 129,715 |
Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 135,151 | 129,715 |
US Treasury Securities [Member] | ||
Investment securities available for sale | 4,834 | 20,149 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 4,834 | 20,149 |
US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale | 20,846 | |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 20,846 | |
Collateralized Mortgage-Backed Securities [Member] | ||
Investment securities available for sale | 67,270 | 63,311 |
Collateralized Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 67,270 | 63,311 |
Corporate Debt Securities [Member] | ||
Investment securities available for sale | 1,500 | 1,500 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 1,500 | 1,500 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale | 40,701 | 44,755 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | $ 40,701 | $ 44,755 |
Note 12 - Financial Instrumen_6
Note 12 - Financial Instruments - Assets Recorded at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Impaired Loans [Member] | ||
Assets at fair value | $ 173 | $ 189 |
Other Real Estate Owned [Member] | ||
Assets at fair value | 235 | 0 |
Fair Value, Nonrecurring [Member] | ||
Assets at fair value | 408 | 189 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value | 408 | 189 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | ||
Assets at fair value | 173 | 189 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value | 173 | 189 |
Fair Value, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Assets at fair value | 235 | 0 |
Fair Value, Nonrecurring [Member] | Other Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value | 0 | 0 |
Fair Value, Nonrecurring [Member] | Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value | $ 235 | $ 0 |
Note 12 - Financial Instrumen_7
Note 12 - Financial Instruments - Significant Unobservable Inputs Used Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Impaired loans, significant unobservable inputs | 0 | |
Other Real Estate Owned, significant unobservable inputs | 0 | |
Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Impaired loans, significant unobservable inputs | 0.10 | |
Other Real Estate Owned, significant unobservable inputs | 0.10 | |
Impaired Loans [Member] | ||
Assets at fair value | $ 173 | $ 189 |
Other Real Estate Owned [Member] | ||
Assets at fair value | $ 235 | $ 0 |
Note 13 - Employee Benefit Pl_3
Note 13 - Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Bank of Floyd Plan [Member] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 39 | $ 70 |
VBA Defined Contribution Plan for Skyline National Bank, First Arrangement [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3% | |
VBA Defined Contribution Plan for Skyline National Bank, Second Arrangement [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2% | |
VBA Defined Contribution Plan For Skyline National Bank [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5% | |
Defined Contribution Plan, Cost | $ 379 | $ 378 |
Fixed Income Securities [Member] | Mutual Fund [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50% | |
Equity Securities [Member] | Mutual Fund [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50% |
Note 13 - Employee Benefit Pl_4
Note 13 - Employee Benefit Plans - Summary of Plan's Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Benefit obligation at beginning of year | $ 5,830 | $ 6,083 |
Interest cost | 147 | 143 |
Actuarial gain | (1,327) | (212) |
Benefits paid | (1,499) | (158) |
Settlement (gain) loss | 36 | (26) |
Fair value of plan assets at beginning of year | 11,081 | 10,291 |
Actual return on plan assets | (2,414) | 948 |
Benefits paid | (1,499) | (158) |
Fair value of plan assets at end of year | 7,168 | 11,081 |
Funded status at the end of the year | $ 3,981 | $ 5,251 |
Note 13 - Employee Benefit Pl_5
Note 13 - Employee Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amount recognized in accumulated comprehensive loss, net | $ (1,964) | $ (662) | |
Benefit obligation | 3,187 | 5,830 | $ 6,083 |
Fair value of assets | 7,168 | 11,081 | $ 10,291 |
Interest cost | 147 | 143 | |
Grayson Plan [Member] | |||
Prepaid benefit cost | 6,467 | 6,089 | |
Unrecognized net actuarial loss | (2,486) | (838) | |
Amount recognized in other assets | 3,981 | 5,251 | |
Unrecognized net actuarial loss | (2,486) | (838) | |
Deferred taxes | 522 | 176 | |
Benefit obligation | 3,187 | 5,830 | |
Fair value of assets | 7,168 | 11,081 | |
Unrecognized net actuarial loss | 2,486 | 838 | |
Prepaid benefit cost | 6,467 | 6,089 | |
Interest cost | 147 | 143 | |
Expected return on plan assets | (741) | (694) | |
Recognized net loss due to settlement | 216 | 32 | |
Recognized net actuarial loss | 0 | 35 | |
Net periodic benefit expense | (378) | (484) | |
Accumulated benefit obligation | 3,187 | 5,830 | |
Vested benefit obligation | $ 3,187 | $ 5,830 | |
Discount rate used for net periodic pension cost | 2.75% | 2.50% | |
Discount rate used for disclosure | 5% | 2.75% | |
Expected return on plan assets | 7% | 7% | |
Average remaining service (years) (Year) | 9 years | 9 years |
Note 13 - Employee Benefit Pl_6
Note 13 - Employee Benefit Plans - Fair Values of Pension Plan Assets, by Asset Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Plan assets at fair value | $ 7,168 | $ 11,081 | $ 10,291 |
Fair Value, Inputs, Level 1 [Member] | |||
Plan assets at fair value | 7,168 | 11,081 | |
Fair Value, Inputs, Level 2 [Member] | |||
Plan assets at fair value | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Plan assets at fair value | 0 | 0 | |
Equity Securities [Member] | Mutual Fund [Member] | |||
Plan assets at fair value | 3,727 | 5,762 | |
Equity Securities [Member] | Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Plan assets at fair value | 3,727 | 5,762 | |
Equity Securities [Member] | Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Plan assets at fair value | 0 | 0 | |
Equity Securities [Member] | Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Plan assets at fair value | 0 | 0 | |
Fixed Income Securities [Member] | Mutual Fund [Member] | |||
Plan assets at fair value | 3,441 | 5,319 | |
Fixed Income Securities [Member] | Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Plan assets at fair value | 3,441 | 5,319 | |
Fixed Income Securities [Member] | Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Plan assets at fair value | 0 | 0 | |
Fixed Income Securities [Member] | Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Plan assets at fair value | $ 0 | $ 0 |
Note 13 - Employee Benefit Pl_7
Note 13 - Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 693 |
2024 | 334 |
2025 | 58 |
2026 | 281 |
2027 | 299 |
2028-2023 | 1,043 |
Defined Benefit Plan, Expected Future Benefit Payments | $ 2,708 |
Note 13 - Employee Benefit Pl_8
Note 13 - Employee Benefit Plans - Pension Plan's Weighted-average Asset Allocations, by Asset Category (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average asset allocations | 100% | 100% |
Mutual Fund [Member] | Fixed Income Securities [Member] | ||
Weighted-average asset allocations | 48% | 48% |
Mutual Fund [Member] | Equity Securities [Member] | ||
Weighted-average asset allocations | 52% | 52% |
Note 13 - Employee Benefit Pl_9
Note 13 - Employee Benefit Plans (Funded Status - Market Value of Plan Assets Divided by Funding Target) as of July 1 (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Bank of Floyd Plan [Member] | ||
Funded status (market value of plan assets divided by funding target) as of July 1 | 105.50% | 117.03% |
Note 14 - Deferred Compensati_2
Note 14 - Deferred Compensation and Supplemental Executive Retirement Plans (Details Textual) | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | Certain Executive Officers and Members of The Board of Directors [Member] | Minimum [Member] | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 4,268 | |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | Certain Executive Officers and Members of The Board of Directors [Member] | Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 26,791 | |
Deferred Compensation Plans [Member] | Certain Executive Officers and Members of The Board of Directors [Member] | ||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term (Year) | 10 years | |
Deferred Compensation Arrangement with Individual, Employee's Age Limit for Payments | 65 | |
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 103,000 | $ 134,000 |
Deferred Compensation Plans [Member] | Certain Executive Officers and Members of The Board of Directors [Member] | Salary and Benefits Expense [Member] | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 9,000 | 12,000 |
Deferred Compensation Arrangement with Individual, Present Value of Future Cash Flows, Discount Rate | 8% | |
Skyline National Bank [Member]] | Chief Executive Officer [Member] | Minimum [Member] | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 12,857,000 | |
Skyline National Bank [Member]] | Chief Executive Officer [Member] | Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | 88,000,000 | |
Skyline National Bank [Member]] | Executive Officer [Member] | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | 640,000 | 399,000 |
Skyline National Bank [Member]] | Executive Officer [Member] | Salary and Benefits Expense [Member] | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | 241,000 | 92,000 |
Supplemental Executive Plans of Bank of Floyd [Member] | Former Members of Management [Member] | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 69,000 | |
Deferred Compensation Arrangement with Individual, Maximum Contractual Term (Year) | 20 years | |
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 601,000 | 645,000 |
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 25,000 | $ 26,000 |
Deferred Compensation Arrangement with Individual, Present Value of Future Cash Flows, Discount Rate | 4% | |
Deferred Compensation Arrangement with Individual, Number of Employees Covered | 2 |
Note 15 - Share-based Compens_3
Note 15 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 28 Months Ended | ||
Feb. 18, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 46,400 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 253,600 | 253,600 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 14,500 | 14,500 | 14,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 13 | $ 11.30 | ||
Share-Based Payment Arrangement, Expense | $ 80 | $ 41 | ||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 231 | $ 231 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 3 months | |||
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 20% | |||
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 20% | |||
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 20% | |||
Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Four [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 20% | |||
Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Five [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 20% | |||
Stock Award [Member] | Share-Based Payment Arrangement, Nonemployee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 8,700 | 8,700 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 13 | $ 11.35 | $ 13 | |
Share-Based Payment Arrangement, Expense | $ 99 | $ 113 | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 300,000 | 300,000 |
Note 15 - Share-based Compens_4
Note 15 - Share-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 18, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance (in shares) | 10,875 | 0 | |
Balance, weighted average grant date fair value (in dollars per share) | $ 11.30 | $ 0 | |
Granted (in shares) | 14,500 | 14,500 | 14,500 |
Granted, weighted average grant date fair value (in dollars per share) | $ 13 | $ 11.30 | |
Vested (in shares) | (6,525) | (3,625) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 12.13 | $ 11.30 | |
Vested, grant date fair value | $ 80 | $ 42 | |
Forfeited (in shares) | 0 | 0 | |
Balance (in shares) | 18,850 | 10,875 | |
Balance, weighted average grant date fair value (in dollars per share) | $ 12.38 | $ 11.30 |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Liability for Uncertainty in Income Taxes, Current | $ 0 | ||
Deferred Tax Assets, Valuation Allowance, Total | $ 0 | $ 0 | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 6,300 | ||
Earliest Tax Year [Member] | |||
Operating Loss Carryforwards, Expiration Year | 2031 | ||
Domestic Tax Authority [Member] | |||
Open Tax Year | 2019 2020 2021 2022 | ||
State and Local Jurisdiction [Member] | |||
Open Tax Year | 2019 2020 2021 2022 |
Note 16 - Income Taxes - Compon
Note 16 - Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current | $ 1,620 | $ 2,096 |
Deferred | 899 | 327 |
Income Tax Expense (Benefit), Total | $ 2,519 | $ 2,423 |
Note 16 - Income Taxes - Reconc
Note 16 - Income Taxes - Reconciliation of Income Tax Expense Computed at Statutory Federal Income Tax Rate to Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Tax at statutory federal rate | $ 2,688 | $ 2,500 |
Tax exempt interest income | (88) | (52) |
Tax exempt insurance income | (153) | (93) |
State income tax, net of federal benefit | 72 | 59 |
Other | 0 | 9 |
Income Tax Expense (Benefit), Total | $ 2,519 | $ 2,423 |
Note 16 - Income Taxes - Signif
Note 16 - Income Taxes - Significant Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for loan losses | $ 1,347 | $ 1,221 |
Acquired loan credit mark | 145 | 223 |
Deferred compensation | 302 | 291 |
Investment impairment charge recorded directly to stockholders’ equity as a component of other comprehensive income | 43 | 48 |
Minimum pension liability | 522 | 176 |
Net operating loss carryforward | 1,333 | 1,444 |
Nonaccrual interest income | 324 | 352 |
Net unrealized losses on securities available for sale | 5,567 | 392 |
Other | 11 | 28 |
Deferred Tax Assets, Gross, Total | 9,594 | 4,175 |
Deferred loan origination costs | 642 | 121 |
Core deposit intangible | 277 | 379 |
Accrued pension costs | 1,395 | 1,310 |
Depreciation | 1,452 | 1,239 |
Other real estate owned | 51 | 0 |
Accretion of discount on investment securities, net | 33 | 4 |
Deferred Tax Liabilities, Gross, Total | 3,850 | 3,053 |
Net deferred tax asset | $ 5,744 | $ 1,122 |
Note 17 - Transactions With R_3
Note 17 - Transactions With Related Parties (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits, Total | $ 920,327 | $ 898,226 |
Directors and Executive Officers [Member] | ||
Deposits, Total | $ 15,900 | $ 22,300 |
Note 17 - Transactions With R_4
Note 17 - Transactions With Related Parties - Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance, beginning | $ 9,140 | $ 12,427 |
New loans | 4,368 | 4,351 |
Repayments | (3,479) | (7,607) |
Change in relationship | 0 | (31) |
Balance, ending | $ 10,029 | $ 9,140 |
Note 18 - Commitments and Con_3
Note 18 - Commitments and Contingencies - Summary of Bank's Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments with off balance sheet risk | $ 164,083 | $ 141,687 |
Commitments to Extend Credit [Member] | ||
Financial instruments with off balance sheet risk | 163,250 | 140,526 |
Standby Letters of Credit [Member] | ||
Financial instruments with off balance sheet risk | $ 833 | $ 1,161 |
Note 19 - Regulatory Restrict_3
Note 19 - Regulatory Restrictions (Details Textual) $ in Millions | 12 Months Ended | ||||
Jan. 01, 2015 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Jan. 01, 2019 | Jan. 01, 2016 | |
Percentage of Aggregate Transfer of Capital and Surplus by Banking Subsidiaries | 10% | ||||
Collateral Requirements, Minimum Percentage Collateral to Fair Value of Securities Loaned from Subsidiary Under Security Lending Transactions | 20% | ||||
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.10 | 0.1000 | |||
Legal Limit on Loans to an Affiliate | $ 9.7 | ||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 | |||
Tier One Leverage Capital to Average Assets | 0.0879 | 0.0858 | |||
Common Equity Tier One Capital Ratio | 0.1162 | 0.1146 | |||
Capital Conservation Buffer | 4.42% | ||||
Tier One Risk Based Capital to Risk Weighted Assets | 0.1162 | 0.1146 | |||
Capital to Risk Weighted Assets | 0.1242 | 0.1223 | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 | |||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0800 | 0.0800 | |||
Federal Home Loan Bank, Leverage Ratio, Actual | 9% | ||||
FDIC Indemnification Asset, Ending Balance | $ 10,000 | ||||
Basel III [Member] | |||||
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.04 | ||||
Common Equity Tier One Capital Required to Be Well Capitalized to Risk Weighted Assets | 6.50% | ||||
Basel III [Member] | Current Regulatory Requirements [Member] | |||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.06 | ||||
Capital Conservation Buffer | 0.625% | ||||
Basel III [Member] | Fully Phased-in Period Regulatory Requirements [Member] | |||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.060 | ||||
Capital Conservation Buffer | 2.50% | 2.50% | |||
Basel III [Member] | Minimum [Member] | |||||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||||
Basel III [Member] | Minimum [Member] | Current Regulatory Requirements [Member] | |||||
Capital Conservation Buffer Percentage, at Fully Phased-in Stage | 8% | ||||
Tier One Leverage Capital to Average Assets | 0.04 | ||||
Basel III [Member] | Minimum [Member] | Fully Phased-in Period Regulatory Requirements [Member] | |||||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7% | ||||
Common Equity Tier One Capital Ratio | 0.045 | ||||
Common Equity, Tier One Risk Based Capital To Risk Weighted Assets, Capital Conservation Buffer | 2.50% | ||||
Tier One Risk Based Capital to Risk Weighted Assets | 0.085 | ||||
Capital to Risk Weighted Assets | 0.080 | 0.08 | |||
Tier One Risk Based Capital to Risk Weighted Assets, Capital Conversion Buffer | 2.50% | ||||
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.105 | ||||
FDIA [Member] | Minimum [Member] | |||||
Common Equity Tier One Capital Required to Be Well Capitalized to Risk Weighted Assets | 10% | ||||
FDIA [Member] | Minimum [Member] | Current Regulatory Requirements [Member] | |||||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.05 |
Note 19 - Regulatory Restrict_4
Note 19 - Regulatory Restrictions - Capital Amounts and Ratios (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Capital | $ 97,172 | $ 90,617 |
Capital, ratio | 0.1242 | 0.1223 |
Capital required for capital adequacy | $ 62,592 | $ 59,256 |
Capital required for capital adequacy, ratio | 0.0800 | 0.0800 |
Capital required to be well capitalized | $ 78,240 | $ 74,071 |
Capital required to be well capitalized, ratio | 0.10 | 0.1000 |
Tier 1 capital risk | $ 90,878 | $ 84,900 |
Tier 1 capital risk, raio | 0.1162 | 0.1146 |
Tier 1 Capital risk required for capital adequacy | $ 46,944 | $ 44,442 |
Tier 1 Capital risk required for capital adequacy, ratio | 0.0600 | 0.0600 |
Tier 1 Capital risk required to be well capitalized | $ 62,592 | $ 59,256 |
Tier 1 Capital risk required to be well capitalized, ratio | 0.0800 | 0.0800 |
Common equity Tier 1 | $ 90,878 | $ 84,900 |
Common equity Tier 1, raio | 0.1162 | 0.1146 |
Common equity Tier 1 required for capital adequacy | $ 35,208 | $ 33,332 |
Common equity Tier 1 required for capital adequacy, raio | 0.0450 | 0.0450 |
Common equity Tier 1 required to be well capitalized | $ 50,856 | $ 48,146 |
Common equity Tier 1 required to be well capitalized, ratio | 0.0650 | 0.0650 |
Tier 1 capital average | $ 90,878 | $ 84,900 |
Tier 1 capital average, ratio | 0.0879 | 0.0858 |
Tier 1 capital average required for capital adequacy | $ 41,342 | $ 39,598 |
Tier 1 capital average required for capital adequacy, ratio | 0.0400 | 0.0400 |
Tier 1 capital average required to be well capitalized | $ 51,677 | $ 49,497 |
Tier 1 capital average required to be well capitalized, ratio | 0.0500 | 0.0500 |
Note 20 - Parent Company Fina_3
Note 20 - Parent Company Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and due from banks | $ 19,299 | $ 14,349 | |
Other assets | 13,210 | 12,549 | |
Total assets | 997,734 | 995,848 | |
Other liabilities | 4,376 | 4,155 | |
Total liabilities | 924,798 | 910,654 | |
Common stock | 0 | 0 | |
Surplus | 33,613 | 33,588 | |
Retained earnings | 62,229 | 53,745 | |
Accumulated other comprehensive loss | (22,906) | (2,139) | |
Total stockholders’ equity | 72,936 | 85,194 | $ 85,106 |
Total liabilities and stockholders’ equity | 997,734 | 995,848 | |
Parent Company [Member] | |||
Cash and due from banks | 63 | 26 | |
Investment in affiliate bank | 72,559 | 88,049 | |
Other assets | 359 | 357 | |
Total assets | 72,981 | 88,432 | |
Borrowings | 0 | 3,200 | |
Other liabilities | 45 | 38 | |
Total liabilities | 45 | 3,238 | |
Common stock | 0 | 0 | |
Surplus | 33,613 | 33,588 | |
Retained earnings | 62,229 | 53,745 | |
Accumulated other comprehensive loss | (22,906) | (2,139) | |
Total stockholders’ equity | 72,936 | 85,194 | |
Total liabilities and stockholders’ equity | $ 72,981 | $ 88,432 |
Note 20 - Parent Company Fina_4
Note 20 - Parent Company Financial Information - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Dividends | $ 105 | $ 110 |
Interest on borrowings | 188 | 86 |
Professional fees | 684 | 639 |
Other expense | 2,693 | 2,320 |
Federal income tax benefit | (2,519) | (2,423) |
Net income | 10,281 | 9,482 |
Parent Company [Member] | ||
Dividends | 5,346 | 7,995 |
Revenues, Total | 5,346 | 7,995 |
Interest on borrowings | 178 | 3 |
Share-Based Payment Arrangement, Expense | 179 | 155 |
Professional fees | 68 | 60 |
Other expense | 7 | 39 |
Operating Expenses, Total | 432 | 257 |
Income before tax benefit and equity in undistributed income of affiliate | 4,914 | 7,738 |
Federal income tax benefit | 90 | 55 |
Income before equity in undistributed income of affiliate | 5,004 | 7,793 |
Equity in undistributed income of affiliate | 5,277 | 1,689 |
Net income | $ 10,281 | $ 9,482 |
Note 20 - Parent Company Fina_5
Note 20 - Parent Company Financial Information - Statements of Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 10,281 | $ 9,482 |
Share-based compensation | 179 | 155 |
Change in other assets | (2,123) | (1,424) |
Other liabilities | (131) | (363) |
Net cash provided by operating activities | 10,630 | 9,553 |
Net cash used by investing activities | (107,215) | (122,671) |
Proceeds from Lines of Credit, Total | 150 | 3,200 |
Payment on short-term line of credit | (3,350) | 0 |
Common stock repurchased | (154) | (6,307) |
Dividends paid | (1,797) | (1,624) |
Net cash used by financing activities | 12,000 | 133,075 |
Net increase (decrease) in cash and cash equivalents | (84,585) | 19,957 |
Parent Company [Member] | ||
Net income | 10,281 | 9,482 |
Equity in undistributed income of affiliate | (5,277) | (1,689) |
Share-based compensation | 179 | 155 |
Change in other assets | (2) | (32) |
Other liabilities | 7 | 10 |
Net cash provided by operating activities | 5,188 | 7,926 |
Investment in affiliate | 0 | (3,200) |
Net cash used by investing activities | 0 | (3,200) |
Proceeds from Lines of Credit, Total | 150 | 3,200 |
Payment on short-term line of credit | (3,350) | 0 |
Common stock repurchased | (154) | (6,307) |
Dividends paid | (1,797) | (1,624) |
Net cash used by financing activities | (5,151) | (4,731) |
Net increase (decrease) in cash and cash equivalents | 37 | (5) |
Cash and cash equivalents, beginning | 26 | 31 |
Cash and cash equivalents, ending | $ 63 | $ 26 |