F & M Bank (FMBM) 10-Q 15 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 05, 2024
Cover [Abstract]
Entity Registrant Name	F&M BANK CORP.
Entity Central Index Key	0000740806
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		3,516,091
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-13273
Entity Incorporation State Country Code	VA
Entity Tax Identification Number	54-1280811
Entity Address Address Line 1	P. O. Box 1111
Entity Address City Or Town	Timberville
Entity Address State Or Province	VA
Entity Address Postal Zip Code	22853
City Area Code	540
Local Phone Number	896-8941
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 27,758	$ 19,790
Money market funds and interest-bearing deposits in other banks	543	178
Federal funds sold	24,185	3,749
Cash and cash equivalents	52,486	23,717
Securities Available for sale, at fair value	359,024	368,674
Other investments	10,720	10,883
Loans held for sale, at fair value	1,385	1,119
Loans held for investment, net of deferred fees and costs	825,872	822,092
Less: allowance for credit losses	(8,408)	(8,321)
Net loans held for investment	817,464	813,771
Bank premises and equipment, net	23,369	23,655
Other real estate owned	0	55
Interest receivable	5,094	5,034
Goodwill	3,082	3,082
Bank owned life insurance	23,055	22,878
Other assets	20,535	21,728
Total Assets	1,316,214	1,294,596
Deposits:
Noninterest bearing	267,106	264,254
Interest bearing	889,237	868,982
Total deposits	1,156,343	1,133,236
Short-term debt	60,000	60,000
Long-term debt	6,943	6,932
Other liabilities	15,194	16,105
Total Liabilities	1,238,480	1,216,273
Shareholders' Equity
Common stock, $5 par value, 6,000,000 shares authorized, 3,516,013 (2024) and 3,485,570 (2023) shares issued and outstanding	17,318	17,263
Additional paid in capital	11,097	11,043
Retained earnings	81,346	81,034
Accumulated other comprehensive loss	(32,027)	(31,017)
Total Shareholders' Equity	77,734	78,323
Total Liabilities and Shareholders' Equity	$ 1,316,214	$ 1,294,596

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Consolidated Balance Sheets
Common stock, shares par value	$ 5	$ 5
Common stock, shares authorized	6,000,000	6,000,000
Common stock, shares issued	3,516,013	3,485,570
Common stock, shares outstanding	3,516,013	3,485,570

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Income (Unaudited)
Interest and fees on loans held for investment	$ 13,352	$ 10,854
Interest and fees on loans held for sale	17	22
Interest from money market funds and federal funds sold	273	84
Interest on debt securities	1,878	2,013
Total interest and dividend income	15,520	12,973
Interest expense
Total interest on deposits	6,337	4,042
Interest from short-term debt	996	992
Interest from long-term debt	116	112
Total interest expense	7,449	5,146
Net interest income	8,071	7,827
Provision for Credit Losses	823	0
Net Interest Income After Provision for Credit Losses	7,248	7,827
Noninterest income
Service charges on deposit accounts	273	225
Investment services and insurance income	581	507
Mortgage banking income	388	540
Title insurance income	303	248
Income on bank owned life insurance	182	179
Low income housing partnership losses	(197)	(205)
Card services and interchange income	726	690
Other operating income	135	182
Total noninterest income	2,391	2,366
Noninterest expense
Salaries	3,780	4,342
Employee benefits	866	1,043
Occupancy expense	377	335
Equipment expense	337	325
FDIC insurance assessment	258	145
Other real estate owned, net	(21)	0
Marketing expense	142	218
Legal and professional fees	485	371
ATM and check card fees	292	319
Telecommunication and data processing expense	705	766
Directors' fees	102	157
Bank franchise tax	190	168
Other operating expenses	910	1,000
Total noninterest expense	8,423	9,189
Income before income taxes	1,216	1,004
Income tax benefit	(1)	(51)
Net Income	$ 1,217	$ 1,055
Per Common Share Data
Net income (basic and diluted)	$ 0.35	$ 0.30
Cash dividends on common stock	$ 0.26	$ 0.26
Weighted average common shares outstanding (basic and diluted)	3,490,371	3,462,698

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Comprehensive Income (Unaudited)
Net Income	$ 1,217	$ 1,055
Other comprehensive (loss) income:
Unrealized holding (losses) gains on available-for sale securities	(1,280)	3,438
Tax effect	270	(722)
Unrealized holding (losses) gains, net of tax	(1,010)	2,716
Total other comprehensive (loss) income	(1,010)	2,716
Total comprehensive income	$ 207	$ 3,771

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated other comprehensive loss
Balance, amount at Dec. 31, 2022	$ 70,792	$ 17,149	$ 10,577	$ 83,078	$ (40,012)
Net income	1,055	0	0	1,055	0
Cumulative effect adjustment due to the adoption of ASC 326, net of tax	(1,203)	0	0	(1,203)	0
Other comprehensive income	2,716	0	0	0	2,716
Dividends on common stock	(899)	0	0	(899)	0
Common stock issued	81	18	63	0	0
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes	29	40	(11)	0	0
Stock-based compensation expense	64	0	64	0	0
Other comprehensive loss	2,716
Balance, amount at Mar. 31, 2023	72,635	17,207	10,693	82,031	(37,296)
Balance, amount at Dec. 31, 2023	78,323	17,263	11,043	81,034	(31,017)
Net income	1,217	0	0	1,217	0
Dividends on common stock	(905)	0	0	(905)	0
Common stock issued	50	14	36	0	0
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes	0	41	(41)	0	0
Stock-based compensation expense	59	0	59	0	0
Other comprehensive loss	(1,010)	0	0	0	(1,010)
Balance, amount at Mar. 31, 2024	$ 77,734	$ 17,318	$ 11,097	$ 81,346	$ (32,027)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ 1,217	$ 1,055
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	356	276
Amortization of intangibles	3	8
Amortization of securities	180	195
Proceeds from loans held for sale	18,481	31,451
Loans held for sale originated	(18,664)	(30,748)
Gain on sale of loans held for sale	(83)	(572)
Provision for credit losses	823	0
Increase in interest receivable	(60)	(170)
(Increase) decrease in deferred taxes	(2)	9
Decrease in taxes payable	0	(38)
Decrease (increase) in other assets	1,467	(2,302)
Decrease in other liabilities	(840)	(2,486)
Amortization of limited partnership investments	197	205
Amortization of debt issuance costs	11	11
Income from life insurance investment	(182)	(179)
(Gain) on the sale of fixed assets	0	(9)
(Gain) on the sale of OREO	(21)	0
Stock-based compensation expense	59	64
Net cash provided by (used in) operating activities	2,942	(3,230)
Cash flows from investing activities
Proceeds from maturity of investments available for sale	5,000	3,825
Proceeds from paydowns of mortgage-backed securities	3,189	3,266
(Investment in) proceeds from the redemption of restricted stock, net	(33)	624
Investment in limited partnership	0	(100)
Net increase loans held for investment	(4,587)	(13,483)
Proceeds from the sale of fixed assets	0	33
Proceeds from the sale of OREO	76	0
Net purchase of property and equipment	(70)	(684)
Net cash provided by (used in) investing activities	3,575	(6,519)
Cash flows from financing activities
Net change in deposits	23,107	21,858
Net change in short-term debt	0	(15,000)
Dividends paid in cash	(905)	(899)
Proceeds from issuance of common stock	50	110
Net cash provided by financing activities	22,252	6,069
Net increase (decrease) in Cash and Cash Equivalents	28,769	(3,680)
Cash and cash equivalents, beginning of period	23,717	34,953
Cash and cash equivalents, end of period	52,486	31,273
Supplemental Cash Flow information:
Cash paid for: Interest	7,248	4,765
Taxes	0	360
Supplemental non-cash disclosures:
Change in unrealized loss on securities available for sale	(1,280)	3,438
Cumulative effect of the adoption of ASC 326	$ 0	$ 1,524

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of F&M Bank Corp. (the “Company”), Farmers & Merchants Bank (the “Bank”), TEB Life Insurance Company (“TEB”), Farmers & Merchants Financial Services, Inc. (“FMFS”), VBS Mortgage, LLC (dba “F&M Mortgage”), and VSTitle, LLC (“VST”), with all significant intercompany accounts and transactions eliminated. TEB was dissolved on November 8, 2023. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and to accepted practices within the banking industry. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for credit losses. Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income. Nature of Operations The Company, through its subsidiary Farmers & Merchants Bank, operates under a charter issued by the Commonwealth of Virginia and provides commercial banking services. As a state chartered bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions and the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Bank provides services to customers primarily in the counties of Rockingham, Shenandoah, Augusta, and Frederick, and the cities of Harrisonburg, Staunton, Waynesboro, and Winchester in Virginia. Services are provided at fourteen branch offices and a Dealer Finance Division. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries Farmers & Merchants Financial Services, Inc., F&M Mortgage, and VSTitle, LLC. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and interest-bearing deposits. Generally, federal funds are purchased and sold on an overnight basis. Allowance for Credit Losses – Available for Sale Securities For available for sale securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. In making the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income. Changes in the allowance for credit loss are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance for credit loss when management believes an available for sale security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2024, there was no allowance for credit loss related to the available for sale securities portfolio. Accrued interest receivable on available for sale debt securities totaled $1.4 million at March 31, 2024 and was excluded from the estimate of credit losses. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of discounts and deferred fees and costs. Accrued interest receivable related to loans totaled $3.7 million at March 31, 2024 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using methods that approximate a level yield without anticipating prepayments. The accrual of interest is generally discontinued when a loan becomes 90 days past due and is not well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. Past due status is based on contractual terms of the loan. A loan is considered to be past due when a scheduled payment has not been received 30 days after the contractual due date. All accrued interest is reversed against interest income when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and future payments are reasonably assured. Allowance for Credit Losses – Loans The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Accrued interest receivable is excluded from the estimate of credit losses. The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company utilizes a Qualitative Scorecard (“scorecard”) to adjust the historical loss information, as necessary, to reflect the Company’s expectations about the future. For each segment, the scorecard calculates the difference between the quantitative expected credit loss and the high watermark average remaining maturity loss rates. This difference is the maximum qualitative adjustment that can be applied to that segment. Due to the low number of losses in the Bank’s portfolio, in particular from 2008-2012, a number of pool sets will leverage peer data to calculate the overall loss rate. The Company believes that in order to provide a reasonable and supportable loss rate, data representative of losses during a financial downturn will provide a better representation of the perceived risk in the portfolio. In determining how to apply the weightings for the various qualitative factors, management assessed which factors would have the highest impact on potential loan losses. The economy and problem loan trends were determined to have the most significant effect on the estimated losses. The most influential factor on potential loan losses was economic conditions, with a weighting of 20%-25%. The Company will evaluate the weighting applied to each pool on an annual basis. The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified the following portfolio segments and calculates the allowance for credit losses for each using a remaining life methodology: 1-4 family residential construction. Other construction, land development and land. Secured by farmland. Home equity - open end. Real estate. Home equity - closed end. Multifamily. Owner-occupied commercial real estate. Other commercial real estate. Agriculture loans. Commercial and industrial. Credit cards. Automobile loans. Other consumer loans. Municipal loans. Additionally, the allowance for credit losses calculation includes adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management experience and risk tolerance, loan review and audit results, asset quality and portfolio trends, loan portfolio growth, industry concentrations, trends in underlying collateral, external factors and economic conditions not already captured. Loans that do not share risk characteristics are evaluated on an individual basis. When management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting dated adjusted for selling costs as appropriate. Allowance for Credit Losses – Unfunded Commitments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for credit losses in the Company’s income statements. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees. The allowance for unfunded commitments is included in other liabilities on the Company’s consolidated balance sheets. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period, including voting rights and sharing in nonforfeitable dividends. Diluted earnings per share includes all convertible securities, such as convertible preferred stock, convertible debt, equity options, and warrants. The Company does not have any convertible securities that would dilute the earnings per share. Recent Accounting Pronouncements Accounting Standards adopted in 2024: In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. ASU 2023-02 was effective for the Company on January 1, 2024. The adoption of ASU 2023-02 did not have a material impact on the Company’s consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” These amendments require entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 was effective for the Company on January 1, 2024. The adoption of ASU 2023-01 did not have a material impact on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 was effective for the Company on January 1, 2024. The adoption of ASU 2022-03 did not have a material impact on the Company’s consolidated financial statements. In August 2020, Accounting Standards Pending Adoption: In March 2024, the FASB issued ASU 2024-02, “Codification Improvements – Amendments to Remove References to the Concepts Statements”. This ASU contains amendments to the Codification that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Statements to provide guidance in certain topical areas. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively to all new transactions recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied. If an entity adopts the amendments retrospectively, it should adjust the opening balance of retained earnings as of the beginning of the earliest comparative period presented. The Company does not expect the adoption of ASU 2024-02 to have a material impact on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, “Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards”. This ASU provides an illustrative example intended to demonstrate how entities that account for profits interest and similar awards would determine whether a profits interest award should be accounted for in accordance with Topic 718. This ASU is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the annual period that includes that interim period. Transition can be done either retrospectively or prospectively. The Company does not expect the adoption of ASU 2024-01 to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pretax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), an amount for other segment items by reportable segment and a description of its composition, all annual disclosures about a reportable segment profit or loss and assets currently required by FASB ASU Topic 280 in interim periods, and the title and position of the CODM and how the CODM uses the reported measures. Additionally, this ASU requires that at least one of the reported segment profit and loss measures should be the measure that is most consistent with the measurement principles used in an entity’s consolidated financial statements. Lastly, this ASU requires public business entities with a single reportable segment to provide all disclosures required by these amendments in this ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively. The Company does not expect the adoption of ASU 2023-07 to have a material impact on its consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU incorporates certain U.S. Securities and Exchange Commission (SEC) disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its consolidated financial statements. In July 2023, the FASB issued ASU 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718).” This ASU amends the FASB Accounting Standards Codification for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. ASU 2023-03 is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2023-03 to have a material impact on its consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Company’s financial position, result of operations or cash flows.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2024
SECURITIES
SECURITIES	NOTE 2 SECURITIES The amortized cost and estimated fair value of securities available for sale, along with gross unrealized gains and losses are summarized as follows (dollars in thousands): March 31, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U. S. Treasuries $ 30,052 $ - $ 2,121 $ 27,931 U. S. Government sponsored enterprises 133,491 - 8,741 124,750 Securities issued by States and political subdivisions of the U.S. 41,300 87 2,737 38,650 Mortgage-backed obligations of federal agencies 165,131 237 24,931 140,437 Corporate debt securities 30,550 - 3,294 27,256 Total Securities Available for Sale $ 400,524 $ 324 $ 41,824 $ 359,024 December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U. S. Treasuries $ 35,048 $ - $ 2,167 $ 32,881 U. S. Government sponsored enterprises 133,487 - 8,784 124,703 Securities issued by States and political subdivisions of the U.S. 41,341 145 2,725 38,761 Mortgage-backed obligations of federal agencies 168,468 173 23,568 145,073 Corporate debt securities 30,550 25 3,319 27,256 Total Securities Available for Sale $ 408,894 $ 343 $ 40,563 $ 368,674 There was no allowance for credit losses on available for sale securities. The amortized cost and fair value of securities at March 31, 2024, by contractual maturity are shown below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available for Sale Amortized Fair Cost Value Due in one year or less $ 92,330 $ 89,785 Due after one year through five years 103,331 94,064 Due after five years 66,528 58,331 Due after ten years 138,335 116,844 Total $ 400,524 $ 359,024 There were no sales of available for sale securities in the first quarter of 2024 or 2023. The following table shows the gross unrealized losses and estimated fair value of available for sale securities for which an allowance for credit losses has not been recorded, aggregated by category and length of time that securities have been in a continuous unrealized loss position at March 31, 2024 (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2024 U.S. Treasuries $ 116 $ 9 $ 27,815 $ 2,112 $ 27,931 $ 2,121 U.S. Government sponsored enterprises - - 124,750 8,741 124,750 8,741 Securities issued by States and political subdivisions in the U.S. - - 31,186 2,737 31,186 2,737 Mortgage-backed obligations of federal agencies - - 135,578 24,931 135,578 24,931 Corporate debt securities 2,190 310 25,066 2,984 27,256 3,294 Total $ 2,306 $ 319 $ 344,395 $ 41,505 $ 346,701 $ 41,824 Unrealized losses at March 31, 2024 were generally attributable to changes in market interest rates and interest spread relationships since the investment securities were originally purchased, and not due to the credit quality concerns on the investment securities. Issuers continue to make timely principal and interest payments and the Company currently has no plans to sell the investments and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be at maturity. The following table shows the gross unrealized losses and estimated fair value of available sale securities and held to maturity securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2023 (dollars in thousands): Less than 12 Months More than 12 Months Total December 31, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U. S. Treasuries $ 125 $ - $ 32,756 $ 2,167 $ 32,881 $ 2,167 U. S. Government sponsored enterprises - - 124,703 8,784 124,703 8,784 Securities issued by States and political subdivisions in the U.S. 484 11 32,597 2,714 33,081 2,725 Mortgage-backed obligations of federal agencies - - 140,041 23,568 140,041 23,568 Corporate debt securities 1,729 271 25,002 3,048 26,731 3,319 Total $ 2,338 $ 282 $ 355,099 $ 40,281 $ 357,437 $ 40,563 The Company had securities with a market value of $207.2 million pledged to the Federal Reserve Discount Window as of March 31, 2024. The Discount Window provides access to funding to help depository institutions manage their liquidity risks. The Bank did not borrow from the Discount Window during the first three months of 2024. As of March 31, 2024, other investments consisted of investments in eleven low-income housing and historic equity partnerships (carrying basis of $4.9 million), stock in the Federal Home Loan Bank of Atlanta (“FHLB’) (carrying basis $3.8 million) and various other investments (carrying basis $2.0 million). The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted as to sales. The fair values of these securities are estimated to approximate their carrying value as of March 31, 2024. At March 31, 2024, the Company was committed to invest an additional $524 thousand in three low-income housing limited partnerships. These funds will be paid as requested by the general partner to complete the projects. This additional investment has been reflected in the above carrying basis and in other liabilities on the consolidated balance sheet.

LOANS AND CREDIT QUALITY

LOANS AND CREDIT QUALITY	3 Months Ended
	Mar. 31, 2024
LOANS AND CREDIT QUALITY
LOANS AND CREDIT QUALITY	NOTE 3 LOANS AND CREDIT QUALITY The following is a summary of the major categories of total loans outstanding at March 31, 2024 and December 31, 2023 (dollars in thousands): March 31, 2024 December 31, 2023 1-4 Family residential construction $ 32,397 $ 30,488 Other construction, land development and land 52,812 47,749 Secured by farmland 82,048 81,657 Home equity – open end 46,087 45,749 Real estate 202,867 200,629 Home Equity – closed end 6,281 4,835 Multifamily 10,699 8,203 Owner-occupied commercial real estate 88,660 92,362 Other commercial real estate 101,237 106,181 Agricultural loans 14,869 14,405 Commercial and industrial 46,582 44,329 Credit Cards 3,290 3,252 Automobile loans 119,785 122,924 Other consumer loans 13,456 14,376 Municipal loans 5,480 5,625 Gross loans 826,550 822,764 Unamortized net deferred loan fees (678 ) (672 ) Less allowance for credit losses 8,408 8,321 Net loans $ 817,464 $ 813,771 The table above does not include loans held for sale of $1.4 million and $1.1 million at March 31, 2024 and December 31, 2023, respectively. Loans held for sale consist of single-family residential real estate loans originated for sale in the secondary market. Accrued interest receivable on loans held for investment totaled $3.7 million and $3.6 million at March 31, 2024 and December 31, 2023, respectively. For the quarter ended March 31, 2024, and the year ended December 31, 2023, accrued interest receivable write-offs were not material to the Company’s consolidated financial statements. The Company had loans held for investment pledged as collateral for borrowings with the FHLB totaling $295.4 million and $289.1 million as of March 31, 2024, and December 31, 2023, respectively. The Company maintains a blanket lien on certain loans in its residential real estate, commercial, agricultural farmland, and home equity portfolios. Nonaccrual and Past Due Loans The following tables show the aging of the Company’s loan portfolio, by class, for the periods indicated (dollars in thousands): Age Analysis of Past Due Loans and Leases As of March 31, 2024 Accruing Loans 30-59 Days Past due Accruing Loans 60-89 Days Past due Accruing Loans 90 Days or More Past due Nonaccrual Loans Accruing Current Loans Total Loans 1-4 Family residential construction $ 382 $ - $ - $ 439 $ 31,576 $ 32,397 Other construction, land development and land - - - 517 52,295 52,812 Secured by farmland - - - 53 81,995 82,048 Home equity – open end 241 50 - 311 45,485 46,087 Real estate 2,751 199 - 674 199,243 202,867 Home Equity – closed end - - - - 6,281 6,281 Multifamily - - - - 10,699 10,699 Owner-occupied commercial real estate 1,305 - - 3,258 84,097 88,660 Other commercial real estate 89 - - - 101,148 101,237 Agricultural loans 92 - - - 14,777 14,869 Commercial and industrial 20 - - 605 45,957 46,582 Credit Cards 28 15 9 - 3,238 3,290 Automobile loans 1,610 308 - 380 117,487 119,785 Other consumer loans 101 34 - 1 13,320 13,456 Municipal loans - - - - 5,480 5,480 Gross loans 6,619 606 9 6,238 813,078 826,550 Less: Unamortized net deferred loan fees - - - - (678 ) (678 ) Loans held for investment $ 6,619 $ 606 $ 9 $ 6,238 $ 812,400 $ 825,872 Age Analysis of Past Due Loans and Leases As of December 31, 2023 Accruing Loans 30-59 Days Past due Accruing Loans 60-89 Days Past due Accruing Loans 90 Days or More Past due Nonaccrual Loans Accruing Current Loans Total Loans 1-4 Family residential construction $ - $ - $ - $ 440 $ 30,048 $ 30,488 Other construction, land development and land - - - 528 47,221 47,749 Secured by farmland - - - 596 81,061 81,657 Home equity – open end 595 74 - 217 44,863 45,749 Real estate 2,125 425 - 701 197,378 200,629 Home Equity – closed end 41 - - - 4,794 4,835 Multifamily - - - - 8,203 8,203 Owner-occupied commercial real estate 1,482 - - 3,000 87,880 92,362 Other commercial real estate 92 887 - - 105,202 106,181 Agricultural loans 10 - - 73 14,322 14,405 Commercial and industrial 75 39 25 622 43,568 44,329 Credit Cards 35 7 6 - 3,204 3,252 Automobile loans 1,137 481 - 237 121,069 122,924 Other consumer loans 151 14 - 24 14,187 14,376 Municipal loans - - - - 5,625 5,625 Gross loans 5,743 1,927 31 6,438 808,625 822,764 Less: Unamortized net deferred loan fees - - - - (672 ) (672 ) Loans held for investment $ 5,743 $ 1,927 $ 31 $ 6,438 $ 807,953 $ 822,092 There were $6.2 million and $6.4 million in nonaccrual loans at March 31, 2024 and December 31, 2023, respectively. There was no income recognized on nonaccrual loans during the three months ended March 31, 2024 and year ended December 31, 2023. The following table is a summary of the Company’s nonaccrual loans by major categories for the periods indicated (dollars in thousands). March 31, 2024 December 31, 2023 Nonaccrual loans Nonaccrual loans With no Allowance With an Allowance Total With no Allowance With an Allowance Total 1-4 Family residential construction $ - $ 439 $ 439 $ - $ 440 $ 440 Other construction, land development and land 517 - 517 528 - 528 Secured by farmland 53 - 53 596 - 596 Home equity – open end 311 - 311 217 - 217 Real estate 674 - 674 701 - 701 Owner-occupied commercial real estate - 3,258 3,258 - 3,000 3,000 Agricultural loans - - - 73 - 73 Commercial and industrial - 605 605 25 597 622 Automobile loans 380 - 380 237 - 237 Other consumer loans 1 - 1 24 - 24 Total loans $ 1,936 $ 4,302 $ 6,238 $ 2,401 $ 4,037 $ 6,438 Troubled Loan Modifications Loan modifications where the borrower is experiencing financial difficulty and the modification is in the form of principal forgiveness, interest rate reductions, term extensions, other-than-insignificant payment delays, or a combination of the above modifications, are defined by the Company as troubled loan modifications. The allowance for credit losses on loans (“ACLL”) on troubled loan modifications is measured using the same method as other loans held for investment. The Company evaluates all loan modifications according to the accounting guidance for loan refinancing and restructuring to determine whether the modification should be accounted for as a new loan or a continuation of the existing loan. If the modification meets the criteria to be accounted for as a new loan, any deferred fees and costs remaining prior to the modification are recognized in income and any new deferred fees and costs are recorded on the loan as part of the modification. If the modification does not meet the criteria to be accounted for as a new loan, any new deferred fees and costs resulting from the modification are added to the existing amortized cost basis of the loan. The following tables present the amortized cost of loans and leases to borrowers experiencing financial difficulty by class of financing receivable, type of modification, financial effect of the modification, and percentage of the amortized cost basis of modifications as compared to the amortized cost basis of each loan segment for the periods presented (dollars in thousands). Amortized Cost of Basis of Loan Modifications Made to Borrowers Experiencing Financial Difficulty For the Quarter Ended March 31, 2024 Term Extension Weighted Average Term Extension (in months) % of Total Loan Type Owner-occupied commercial real estate 33 13.0 0.04 % Automobile loans 64 4.5 0.05 % Total Term Extension $ 97 7.4 0.05 % Amortized Cost of Basis of Loan Modifications Made to Borrowers Experiencing Financial Difficulty For the Year Ended December 31, 2023 Term Extension Weighted Average Term Extension (in months) % of Total Loan Type Owner-occupied commercial real estate 45 13.0 0.05 % Automobile loans 68 4.5 0.06 % Total Term Extension $ 113 7.9 0.05 % The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company considers a default on a troubled loan modification to occur when the borrower is 90 days past due following the modification or a foreclosure and repossession of the applicable collateral occurs. No loan or lease modifications to borrowers experiencing financial difficulty had a payment default at March 31, 2024 or December 31, 2023. Additionally, the Company did not have any troubled loan modifications that were past due as of the same time periods. As of March 31, 2024, the Company did not have any unfunded commitments on loans modified and designated as troubled loan modifications. Collateral Dependent Disclosures The collateral method is applied to individually evaluated loans for which foreclosure is probable. The collateral method is also applied to individually evaluated loans when borrowers are experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the allowance for credit losses. Under the current expected credit loss model, or CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The following table presents an analysis of collateral-dependent loans of the Company as of the periods noted (dollars in thousands): Collateral Dependent Loans March 31, 2024 Real Estate Business/Other Assets 1-4 Family residential construction $ 439 $ - Other construction, land development and land 500 - Owner-occupied commercial real estate 3,258 - Commercial and industrial - 605 Total loans $ 4,197 $ 605 Collateral Dependent Loans December 31, 2023 Real Estate Business/Other Assets 1-4 Family residential construction $ 440 $ - Other construction, land development and land 511 - Secured by farmland 596 - Owner-occupied commercial real estate 3,000 - Commercial and industrial - 597 Total loans $ 4,547 $ 597 The following tables present the loan portfolio by segment, details of the loan portfolio and the ACLL calculated in accordance with our credit loss accounting methodology for loans described above (dollars in thousands). March 31, 2024 Loan Balances Allowance for Credit Losses - Loans Loans Individually Evaluated Loans Collectively Evaluated Total Loans Individually Evaluated Loans Collectively Evaluated Total 1-4 Family residential construction $ 439 $ 31,958 $ 32,397 $ 362 $ 372 $ 734 Other construction, land development and land 500 52,312 52,812 - 1,345 1,345 Secured by farmland - 82,048 82,048 - 825 825 Home equity – open end - 46,087 46,087 - 181 181 Real estate - 202,867 202,867 - 815 815 Home Equity – closed end - 6,281 6,281 - 100 100 Multifamily - 10,699 10,699 - 243 243 Owner-occupied commercial real estate 3,258 85,402 88,660 513 801 1,314 Other commercial real estate - 101,237 101,237 - 178 178 Agricultural loans - 14,869 14,869 - 21 21 Commercial and industrial 605 45,977 46,582 95 712 807 Credit Cards - 3,290 3,290 - 84 84 Automobile loans - 119,785 119,785 - 1,459 1,459 Other consumer loans - 13,456 13,456 - 285 285 Municipal loans - 5,480 5,480 - 17 17 Gross loans 4,802 821,748 826,550 970 7,438 8,408 Less: Unamortized net deferred loan fees - - (678 ) - - - Net loans held for investment $ 4,802 $ 821,748 $ 825,872 $ 970 $ 7,438 $ 8,408 December 31, 2023 Loan Balances Allowance for Credit Losses - Loans Loans Individually Evaluated Loans Collectively Evaluated Total Loans Individually Evaluated Loans Collectively Evaluated Total 1-4 Family residential construction $ 440 $ 30,048 $ 30,488 $ 363 $ 351 $ 714 Other construction, land development and land 511 47,238 47,749 - 1,287 1,287 Secured by farmland 596 81,061 81,657 - 815 815 Home equity – open end - 45,749 45,749 - 180 180 Real estate - 200,629 200,629 - 810 810 Home Equity – closed end - 4,835 4,835 - 77 77 Multifamily - 8,203 8,203 - 181 181 Owner-occupied commercial real estate 3,000 89,362 92,362 263 958 1,221 Other commercial real estate - 106,181 106,181 - 166 166 Agricultural loans - 14,405 14,405 - 20 20 Commercial and industrial 597 43,732 44,329 351 683 1,034 Credit Cards - 3,252 3,252 - 81 81 Automobile loans - 122,924 122,924 - 1,443 1,443 Other consumer loans - 14,376 14,376 - 292 292 Municipal loans - 5,625 5,625 - - - Gross loans 5,144 817,620 822,764 977 7,344 8,321 Less: Unamortized net deferred loan fees - - (672 ) - - - Net loans held for investment $ 5,144 $ 817,620 $ 822,092 $ 977 $ 7,344 $ 8,321 Credit Quality Indicators The Company presents loan and lease portfolio segments and classes by credit quality indicator and vintage year. The Company defines the vintage date for the purpose of this disclosure as the date of the most recent credit decision. Renewals are categorized as new credit decisions and reflect the renewal date as the vintage date, except for renewals of loans modified for borrowers experiencing financial difficulty which are presented in the original vintage. Description of the Company’s credit quality indicators: Pass: Grade 6 – Watch Grade 7 – Substandard Credit cards are classified as pass or substandard. A credit card is substandard when payments of principal and interest are past due 90 days or more. The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of March 31, 2024 (dollars in thousands): Term Loans by Year of Origination 2024 2023 2022 2021 2020 Prior Revolving Total 1-4 Family residential construction Pass $ 268 $ - $ - $ - $ - $ 81 $ 31,609 $ 31,958 Watch - - - - - - - - Substandard - - - - - - 439 439 Total 1-4 Family residential construction 268 - - - - 81 32,048 32,397 Current period gross write-offs - - - - - - - - Other construction, land development and land Pass 450 6,052 9,093 4,823 1,805 9,792 19,865 51,880 Watch - - - - - 65 348 413 Substandard - - - - - 519 - 519 Total Other construction, land development and land 450 6,052 9,093 4,823 1,805 10,376 20,213 52,812 Current period gross write-offs - - - - - - - - Secured by farmland Pass 2,113 10,407 15,846 13,478 26,650 9,551 3,179 81,224 Watch - - - - - 771 - 771 Substandard - - - - - 53 - 53 Total Secured by farmland 2,113 10,407 15,846 13,478 26,650 10,375 3,179 82,048 Current period gross write-offs - - - - - - - - Home equity – open end Pass - 370 - - - 141 44,370 44,881 Watch - - - - - - 845 845 Substandard - - - - - - 361 361 Total Home equity - open end - 370 - - - 141 45,576 46,087 Current period gross write-offs - - - - - - - - Real estate Pass 6,855 51,876 47,243 14,905 12,059 62,902 446 196,286 Watch - - 44 25 497 3,214 - 3,780 Substandard - - 85 538 - 2,178 - 2,801 Total Real estate 6,855 51,876 47,372 15,468 12,556 68,294 446 202,867 Current period gross write-offs - - - - - - - - Home Equity – closed end Pass 150 2,599 372 114 1,022 2,012 - 6,269 Watch - - - - - - - - Substandard - - - - - 12 - 12 Total Home Equity - closed end 150 2,599 372 114 1,022 2,024 - 6,281 Current period gross write-offs - - - - - - - - Multifamily Pass 2,153 - 2,694 1,381 896 1,544 1,936 10,604 Watch - - - - - 95 - 95 Substandard - - - - - - - - Total Multifamily 2,153 - 2,694 1,381 896 1,639 1,936 10,699 Current period gross write-offs - - - - - - - - Owner-occupied commercial real estate Pass 1,210 2,785 17,635 17,426 7,006 25,008 4,543 75,613 Watch - - - - - 771 - 771 Substandard - - - - - 8,720 3,556 12,276 Total Owner-occupied commercial real estate 1,210 2,785 17,635 17,426 7,006 34,499 8,099 88,660 Current period gross write-offs - - - - - - - - Other commercial real estate Pass 1,096 9,786 29,532 12,234 4,921 33,805 605 91,979 Watch - - - - - 9,171 - 9,171 Substandard - - - - - 87 - 87 Total Other commercial real estate 1,096 9,786 29,532 12,234 4,921 43,063 605 101,237 Current period gross write-offs - - - - - - - - Term Loans by Year of Origination 2024 2023 2022 2021 2020 Prior Revolving Total Agricultural loans Pass 1,367 2,994 2,393 494 284 27 7,129 14,688 Watch - - - - 31 - 150 181 Substandard - - - - - - - - Total Agricultural loans 1367 2,994 2,393 494 315 27 7,279 14,869 Current period gross write-offs - - - - - - - - Commercial and industrial Pass 612 7,286 8,786 4,968 1,491 751 18,776 42,670 Watch - - 41 47 - - 3,210 3,298 Substandard - - - 613 - 1 - 614 Total 1-4 Commercial and industrial 612 7,286 8,827 5,628 1,491 752 21,986 46,582 Current period gross write-offs - - 133 47 24 - - 204 Credit Cards Pass - - - - - - 3,281 3,281 Substandard - - - - - - 9 9 Total Credit cards - - - - - - 3,290 3,290 Current period gross write-offs - - - - - - 9 9 Automobile loans Pass 8,612 50,205 34,868 16,858 6,069 2,447 - 119,059 Watch - 42 180 35 48 41 - 346 Substandard - 235 62 69 9 5 - 380 Total Automobile loans 8,612 50,482 35,110 16,962 6,126 2,493 - 119,785 Current period gross write-offs - 284 245 139 62 27 - 757 Other consumer loans Pass 985 4,683 4,384 1,886 653 489 352 13,432 Watch - 5 3 7 - 3 1 19 Substandard - - - - - 5 - 5 Total Other consumer loans 985 4,688 4,387 1,893 653 497 353 13,456 Current period gross write-offs - 19 15 6 - 1 - 41 Municipal loans Pass - - 118 886 1,096 3,380 - 5,480 Watch - - - - - - - - Substandard - - - - - - - - Total Municipal loans - - 118 886 1,096 3,380 - 5,480 Current period gross write-offs - - - - - - - - Total loans $ 25,871 $ 149,325 $ 173,379 $ 90,787 $ 64,537 $ 177,641 $ 145,010 $ 826,550 Less: Unamortized net deferred loan fees (678 ) Loans held for investment $ 825,872 Current period gross write-offs $ - $ 303 $ 393 $ 192 $ 86 $ 28 $ 9 $ 1,011 The following table presents the Company’s recorded investment in loans by credit quality indicators by year of origination as of December 31, 2023 (dollars in thousands): Term Loans by Year of Origination 2023 2022 2021 2020 2019 Prior Revolving Total 1-4 Family residential construction Pass $ 162 $ - $ - $ - $ - $ 108 $ 29,214 $ 29,484 Watch - - - - - - 564 564 Substandard - - - - - - 440 440 Total 1-4 Family residential construction 162 - - - - 108 30,218 30,488 Current period gross write-offs - 70 - - - - - 70 Other construction, land development and land Pass 5,123 9,138 4,983 1,831 2,847 5,456 17,770 47,148 Watch - - - - - 67 - 67 Substandard 511 - - - - 23 - 534 Total Other construction, land development and land 5,634 9,138 4,983 1,831 2,847 5,546 17,770 47,749 Current period gross write-offs - - - - - - - - Secured by farmland Pass 7,503 15,834 13,688 27,020 2,509 7,842 5,869 80,265 Watch - - - - 781 - - 781 Substandard - - 333 - - 263 15 611 Total Secured by farmland 7,503 15,834 14,021 27,020 3,290 8,105 5,884 81,657 Current period gross write-offs - - - - - - - - Home equity – open end Pass 370 - - - - 141 44,089 44,600 Watch - - - - - - 883 883 Substandard - - - - - - 266 266 Total Home equity - open end 370 - - - - 141 45,238 45,749 Current period gross write-offs - - - - - - - - Real estate Pass 53,413 47,785 15,211 12,192 6,490 55,665 386 191,142 Watch - 45 - 499 155 4,893 - 5,592 Substandard - 88 539 - 1,212 2,056 - 3,895 Total Real estate 53,413 47,918 15,750 12,691 7,857 62,614 386 200,629 Current period gross write-offs - - - - - 19 - 19 Home Equity – closed end Pass 1,126 382 117 1,044 464 1,690 - 4,823 Watch - - - - - - - - Substandard - - - - 12 - - 12 Total Home Equity - closed end 1,126 382 117 1,044 476 1,690 - 4,835 Current period gross write-offs - - - - - - - - Multifamily Pass - 2,712 1,395 906 - 1,567 1,524 8,104 Watch - - - - - 99 - 99 Substandard - - - - - - - - Total Multifamily - 2,712 1,395 906 - 1,666 1,524 8,203 Current period gross write-offs - - - - - - - - Owner-occupied commercial real estate Pass 2,820 18,049 17,775 7,109 3,586 22,301 7,821 79,461 Watch - - - - 40 2,097 - 2,137 Substandard - - - - 6,283 1,183 3,298 10,764 Total Owner-occupied commercial real estate 2,820 18,049 17,775 7,109 9,909 25,581 11,119 92,362 Current period gross write-offs - - - - - - - - Other commercial real estate Pass 10,193 29,317 12,744 4,990 3,739 32,666 3,206 96,855 Watch - - - - - 9,239 - 9,239 Substandard - - - - - 87 - 87 Total Other commercial real estate 10,193 29,317 12,744 4,990 3,739 41,992 3,206 106,181 Current period gross write-offs - - - - - - - - Term Loans by Year of Origination 2023 2022 2021 2020 2019 Prior Revolving Total Agricultural loans Pass 4,626 2,548 534 340 - 38 6,066 14,152 Watch - - - 31 - - 149 180 Substandard - 48 14 11 - - - 73 Total Agricultural loans 4,626 2,596 548 382 - 38 6,215 14,405 Current period gross write-offs - - - - - - - - Commercial and industrial Pass 7,396 9,373 5,359 1,691 674 272 17,408 42,173 Watch - 44 91 - - - 1,363 1,498 Substandard - - 632 25 - 1 - 658 Total Commercial and industrial 7,396 9,417 6,082 1,716 674 273 18,771 44,329 Current period gross write-offs - 31 - - - 2 - 33 Credit Cards Pass - - - - - - 3,246 3,246 Substandard - - - - - - 6 6 Total Credit cards - - - - - - 3,252 3,252 Current period gross write-offs - - - - - - 69 69 Automobile loans Pass 52,471 38,375 19,193 7,301 2,145 2,367 - 121,852 Watch 179 323 158 106 36 32 - 834 Substandard 98 48 63 6 18 5 - 238 Total Automobile loans 52,748 38,746 19,414 7,413 2,199 2,404 - 122,924 Current period gross write-offs 334 669 560 149 53 39 - 1,804 Other consumer loans Pass 5,169 4,983 2,230 843 194 367 530 14,316 Watch 17 4 7 - 1 2 1 32 Substandard 12 7 2 - 6 1 - 28 Total Other consumer loans 5,198 4,994 2,239 843 201 370 531 14,376 Current period gross write-offs - 77 3 3 6 4 - 93 Municipal loans Pass - 118 923 1,096 1,228 2,260 - 5,625 Watch - - - - - - - - Substandard - - - - - - - - Total Municipal loans - 118 923 1,096 1,228 2,260 - 5,625 Current period gross write-offs - - - - - - - - Total loans $ 151,189 $ 179,221 $ 95,991 $ 67,041 $ 32,420 $ 152,788 $ 144,114 $ 822,764 Less: Unamortized net deferred loan fees (672 ) Loans held for investment $ 822,092 Current period gross write-offs $ 334 $ 847 $ 563 $ 152 $ 59 $ 64 $ 69 $ 2,088

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	3 Months Ended
	Mar. 31, 2024
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES	NOTE 4 ALLOWANCE FOR CREDIT LOSSES The allowance for credit losses (“ACL”) consists of the allowance for credit losses on loans and the reserve for unfunded commitments. The Company’s ACL is governed by the Company’s ACL Committee, which reports to the Board of Directors and contains representatives from the Company’s finance, credit, and risk teams, and is responsible for calculating the Company’s estimate of expected credit losses and resulting ACL. The ACL Committee considers the quantitative model results and qualitative factors when finalizing the ACL. The Company’s ACL model is subject to the Company’s models risk management program, which is overseen by the Director of Risk Management that reports to the Company’s Board Risk Committee. Allowance for Credit Losses on Loans The following tables show the allowance for credit losses activity by loan segment for the periods indicated, (dollars in thousands). Allowance for Credit Losses and Carrying Amount of Loans For the Three Months Ended March 31, 2024 Beginning Balance Charge-offs Recoveries Provision for loan credit losses Ending Balance 1-4 Family residential construction $ 714 $ - $ - $ 20 $ 734 Other construction, land development and land 1,287 - - 58 1,345 Secured by farmland 815 - - 10 825 Home equity – open end 180 - 25 (24 ) 181 Real estate 810 - 1 4 815 Home Equity – closed end 77 - - 23 100 Multifamily 181 - - 62 243 Owner-occupied commercial real estate 1,221 - - 93 1,314 Other commercial real estate 166 - - 12 178 Agricultural loans 20 - - 1 21 Commercial and industrial 1,034 204 27 (50 ) 807 Credit Cards 81 9 10 2 84 Automobile loans 1,443 757 135 638 1,459 Other consumer loans 292 41 6 28 285 Municipal loans - - - 17 17 Total loans $ 8,321 $ 1,011 $ 204 $ 894 $ 8,408 Allowance for Credit Losses and Carrying Amount of Loans For the Year Ended December 31, 2023 Beginning Balance Adjustment for adoption of ASU 2016-13 Charge-offs Recoveries Provision for loan credit losses Ending Balance 1-4 Family residential construction $ 324 $ 109 $ 70 $ 1 $ 350 $ 714 Other construction, land development and land 694 602 - - (9 ) 1,287 Secured by farmland 571 311 - - (67 ) 815 Home equity – open end 446 (189 ) - 3 (80 ) 180 Real estate 1,389 (184 ) 19 2 (378 ) 810 Home Equity – closed end 39 96 - - (58 ) 77 Multifamily 71 182 - - (72 ) 181 Owner-occupied commercial real estate 992 280 - - (51 ) 1,221 Other commercial real estate 1,023 (582 ) - - (275 ) 166 Agricultural loans 80 (58 ) - - (2 ) 20 Commercial and industrial 368 338 33 2 359 1,034 Credit Cards 68 26 69 37 19 81 Automobile loans 1,790 (257 ) 1,804 514 1,200 1,443 Other consumer loans 81 103 93 55 146 292 Municipal loans - - - - - - Total loans $ 7,936 $ 777 $ 2,088 $ 614 $ 1,082 $ 8,321 Unfunded Commitments The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable (i.e. commitment cannot be canceled at any time). The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over their estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans and are discussed above. The allowance for credit losses for unfunded loan commitments of $619 thousand at March 31, 2024 and $690 thousand at December 31, 2023 is separately classified on the balance sheet within Other liabilities. The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the periods indicated (dollars in thousands). 2024 2023 Balance as of January 1 $ 690 $ - Adjustment to allowance for unfunded commitments for adoption of ASU 2016-13 - 747 Recovery of credit losses – unfunded commitments (71 ) - Balance as of March 31 $ 619 $ 747

LEASES

LEASES	3 Months Ended
	Mar. 31, 2024
LEASES
LEASES	NOTE 5 LEASES Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs, and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term. The Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The Company has five operating leases for office properties. The following tables present information about the Company’s leases (dollars in thousands): March 31, 2024 Lease Liabilities $ 713 Right-of-use assets $ 689 Weighted average remaining lease term (years) 1.27 years Weighted average discount rate 3.39 % For the Three Months Ended March 31, 2024 2023 Operating lease cost $ 52 $ 40 Total lease cost $ 52 $ 40 Cash paid for amounts included in the measurement of lease liabilities $ 58 $ 58 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): March 31, 2024 Nine months ending December 31, 2024 $ 134 Twelve months ending December 31, 2025 125 Twelve months ending December 31, 2026 70 Twelve months ending December 31, 2027 56 Twelve months ending December 31, 2028 57 Thereafter 406 Total undiscounted cash flows $ 848 Discount (135 ) Lease liabilities $ 713

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	3 Months Ended
	Mar. 31, 2024
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED	NOTE 6 OTHER REAL ESTATE OWNED The table below reflects other real estate owned (“OREO”) activity for the three months ended March 31, 2024 and 2023 (dollars in thousands). 2024 2023 Balance as of January 1 $ 55 $ - Purchase of foreclosed real estate - - Loans transferred to OREO - - Proceeds from sale of OREO (76 ) - Gain on sales of OREO 21 - Balance as of March 31 $ - $ - The Company did not have any other real estate owned at March 31, 2024 or 2023.

SHORT TERM DEBT

SHORT TERM DEBT	3 Months Ended
	Mar. 31, 2024
SHORT TERM DEBT
SHORT-TERM DEBT	NOTE 7 SHORT-TERM DEBT The Company utilizes short-term debt such as Federal funds purchased and FHLB short-term borrowings to support loan growth and provide liquidity. Federal funds purchased are unsecured overnight borrowings from other financial institutions. FHLB short term debt, which is secured by the loan portfolio, can be a daily rate variable loan that acts as a line of credit or a fixed rate advance, depending on the need of the Company. There was $60.0 million in short-term debt at March 31, 2024 and December 31, 2023.

LONG TERM DEBT

LONG TERM DEBT	3 Months Ended
	Mar. 31, 2024
LONG TERM DEBT
LONG-TERM DEBT	NOTE 8 LONG-TERM DEBT On July 29, 2020, the Company sold and issued to an institutional accredited investor a 6.00% fixed to floating rate subordinated note due July 31, 2030 with an aggregate principal amount of $7.0 million. The note initially bears interest at 6.00% per annum, beginning July 29, 2020 but excluding July 31, 2025, payable semi-annually in arrears. From and including July 31, 2025 through July 30, 2030, or up to an early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 593 basis points, payable quarterly in arrears. Beginning on July 31, 2025 through maturity, the note may be redeemed, at the Company’s option, on any scheduled interest payment date. The note will mature on July 31, 2030. The subordinated note, net of issuance costs totaled $6.9 million at March 31, 2024 and December 31, 2023.

MORTGAGE BANKING DERIVATIVES

MORTGAGE BANKING DERIVATIVES	3 Months Ended
	Mar. 31, 2024
MORTGAGE BANKING DERIVATIVES
MORTGAGE BANKING DERIVATIVES	NOTE 9 MORTGAGE BANKING DERIVATIVES Loans Held for Sale (“LHFS”) The Company, through the Bank’s mortgage banking subsidiary, F&M Mortgage Company, originates residential mortgage loans for sale in the secondary market. Residential mortgage loans held for sale are sold to a permanent investor with the mortgage servicing rights released. Fair value of the Company’s LHFS is based on observable market prices for the identical instruments traded in the secondary mortgage loan markets in which the Company conducts business, totaling $1.4 million as of March 31, 2024, of which $1.4 million is related to unpaid principal. The Company’s portfolio of LHFS is classified as Level 2. Interest Rate Lock Commitments and Forward Sales Commitments (“IRLCs”) The Company, through F&M Mortgage Company, enters commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed interest rate lock commitments (“IRLCs”). Such rate lock commitments on mortgage loans to be sold in the secondary market are derivatives. Upon entering a commitment to originate a loan, the Company protects itself from changes in interest rates during the period prior to sale by requiring a firm purchase agreement from a permanent investor before a loan can be closed (forward sales commitment). The Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best-efforts basis, thus limiting interest rate risk. Certain additional risks exist if the investor fails to meet its purchase obligation; however, based on historical performance and the size and nature of the investors, the Company does not expect them to fail to meet their obligation. The Company determines the fair value of the IRLCs based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best-efforts basis while taking into consideration the probability that the rate loan commitments will close. The fair value of these derivative instruments is reported in “Other assets” in the Consolidated Balance Sheet at March 31, 2024, and totaled $78 thousand, with a notional amount of $10.3 million and total positions of 40. The fair value of the IRLCs at December 31, 2023 totaled $81 thousand, with a notional amount of $6.2 million and total positions of 22. Changes in fair value are recorded as a component of “Mortgage banking income” in the Consolidated Income Statement for the period ended March 31, 2024. The Company’s IRLCs are classified as Level 2. At March 31, 2024 and 2023, each IRLC and all LHFS were subject to a forward sales commitment on a best- efforts basis. The Company uses fair value accounting for its forward sales commitments related to IRLCs and LHFS under ASC 825-10-15-4(b). The fair value of forward sales commitments reported in “Other Assets” in the Consolidated Balance Sheet at March 31, 2024 totaled $5 thousand, with a notational amount of $8.9 million and total positions of 35. The fair value of forward sales commitments reported in “Other Liabilities” in the Consolidated Balance Sheet at December 31, 2023 totaled $22 thousand, with a notional amount of $7.3 million and total positions of 27.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
	Mar. 31, 2024
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS	NOTE 10 ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present components of accumulated other comprehensive loss for the periods stated (dollars in thousands). Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2022 $ (40,452 ) $ 439 $ (40,012 ) Change in unrealized securities gains, net of tax expense of $722 2,716 - 2,716 Balance at March 31, 2023 $ (37,736 ) $ 439 $ (37,296 ) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2023 $ (31,774 ) $ 757 $ (31,017 ) Change in unrealized securities losses, net of tax benefit of $270 (1,010 ) - (1,010 ) Balance at March 31, 2024 $ (32,784 ) $ 757 $ (32,027 ) There were no reclassification adjustments reported on the consolidated statements of income during the three months ended March 31, 2024 or 2023.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2024
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 11 FAIR VALUE MEASUREMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Available for Sale Securities (“AFS Securities”) Loans Held for Sale Derivative assets – IRLCs Derivative Asset/Liability – Forward Sale Commitments The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of the periods indicated (dollars in thousands): March 31, 2024 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 1,385 $ - $ 1,385 $ - U. S. Treasury securities 27,931 - 27,931 - U.S. Government sponsored enterprises 124,750 - 124,750 - Securities issued by States and political subdivisions of the US 38,650 - 38,650 - Mortgage-backed obligations of federal agencies 140,437 - 140,437 - Corporate debt securities 27,256 - 27,256 - IRLC 78 - 78 - Forward sales commitments 5 - 5 - Assets at Fair Value $ 360,492 $ - $ 360,492 $ - December 31, 2023 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 1,119 $ - $ 1,119 $ - U. S. Treasury securities 32,881 - 32,881 - U.S. Government sponsored enterprises 124,703 - 124,703 - Securities issued by States and political subdivisions of the US 38,761 - 38,761 - Mortgage-backed obligations of federal agencies 145,073 - 145,073 - Corporate debt securities 27,256 - 27,256 - IRLC 81 - 81 - Assets at Fair Value $ 369,874 $ - $ 369,874 $ - Liabilities: Forward sales commitments $ 22 $ - $ 22 $ - Liabilities at Fair Value $ 22 $ - $ 22 $ - Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements: Collateral Dependent Loans with an ACL 326, may Other Real Estate Owned The Company markets OREO independently and with local realtors. Properties marketed by realtors are discounted by selling costs. Properties that the Company markets independently are not discounted by selling costs. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2024 and December 31, 2023 (dollars in thousands). Fair values are estimated under the exit price notion in accordance with the adoption of ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities.” The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands): March 31, 2024 Fair Value Measurements Using: Collateral dependent loans with an ACL Balance Level 1 Level 2 Level 3 1-4 family residential construction $ 77 $ - $ - $ 77 Owner-occupied commercial real estate 2,745 - - 2,745 Commercial and industrial 510 - - 510 Total collateral dependent loans with an ACL $ 3,332 $ - $ - $ 3,332 OREO $ - $ - $ - $ - December 31, 2023 Fair Value Measurements Using: Collateral dependent loans with an ACL Balance Level 1 Level 2 Level 3 1-4 family residential construction $ 77 $ - $ - $ 77 Owner-occupied commercial real estate 2,737 - - 2,737 Commercial and industrial 246 - - 246 Total collateral dependent loans with an ACL $ 3,060 $ - $ - $ 3,060 OREO $ 55 $ - $ - $ 55 The following table presents information about Level 3 Fair Value Measurements for the periods indicated (dollars in thousands): March 31, 2024 Fair Value Valuation Technique Significant Unobservable Inputs Range Collateral Dependent Loans $ 3,332 Discounted appraised value Discount for selling costs and marketability 33% December 31, 2023 Fair Value Valuation Technique Significant Unobservable Inputs Range Collateral Dependent Loans $ 3,060 Discounted appraised value Discount for selling costs and marketability 31% - 71% (Average 44%) OREO $ 55 Discounted appraised value Discount for selling costs and marketability 29% March 31, 2024 Fair Value Measurements using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Assets: Cash and cash equivalents $ 52,486 $ 52,486 $ - $ - $ 52,486 Securities 359,024 - 359,024 - 359,024 Loans held for sale 1,385 - 1,385 - 1,385 Loans held for investment, net 825,872 - - 796,122 796,122 Interest receivable 5,094 - 5,094 - 5,094 Bank owned life insurance 23,055 - 23,055 - 23,055 IRLC 78 - 78 - 78 Forward sales commitments 5 - 5 - 5 Liabilities: Deposits $ 1,156,343 $ - $ 1,154,647 $ - $ 1,154,647 Short-term debt 60,000 - - 60,000 60,000 Long-term debt 6,943 - - 6,762 6,762 Interest payable 1,793 - 1,793 - 1,793 December 31, 2023 Fair Value Measurements using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Assets: Cash and cash equivalents $ 23,717 $ 23,717 $ - $ - $ 23,717 Securities 368,674 - 368,674 - 368,674 Loans held for sale 1,119 - 1,119 - 1,119 Loans held for investment, net 822,092 - - 793,440 793,440 Interest receivable 5,034 - 5,034 - 5,034 Bank owned life insurance 22,878 - 22,878 - 22,878 IRLC 81 - 81 - 81 Liabilities: Deposits $ 1,133,236 $ - $ 1,131,747 $ - $ 1,131,747 Short-term debt 60,000 - - 60,000 60,000 Long-term debt 6,932 - - 6,761 6,761 Interest payable 1,592 - 1,592 - 1,592 Forward sales commitments 22 - 22 - 22

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	3 Months Ended
	Mar. 31, 2024
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS	NOTE 12 EMPLOYEE BENEFITS Defined Benefit Pension Plan The Bank has a qualified noncontributory defined benefit pension plan which covers substantially all full-time employees hired before April 1, 2012. The benefits are primarily based on years of service and earnings. The Company uses December 31 st Three Months Ended March 31, 2024 March 31, 2023 Service cost $ - $ - Interest cost 79 92 Expected return on plan assets (98 ) (130 ) Recognized net actuarial gain (5 ) - Net periodic pension cost $ (24 ) $ (38 ) Stock Incentive Plan The Company grants stock awards to directors and employees under the Company’s 2020 Stock Incentive Plan and 2023 Directors Stock Incentive Plan. On March 7, 2024, the Company’s Compensation Committee awarded 33,568 shares with a fair value of $597 thousand from the 2020 Stock Incentive Plan to selected employees. These shares vest 25% over each of the next four years. Unrecognized compensation expense related to the nonvested restricted stock as of March 31, 2024 totaled $1.0 million.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2024
REVENUE RECOGNITION
REVENUE RECOGNITION	NOTE 13 REVENUE RECOGNITION The majority of the Company’s noninterest income is generated from short-term contracts for fees on deposit accounts, ATM and check cards, and annuity and insurance commissions that is accounted for in accordance with ASC Topic 606, Revenue from Contracts with Customers Service charges on deposit accounts consist of account maintenance charges and overdrawn account fees. The Company’s performance obligation is generally satisfied, and the related revenue recognized, immediately, when the transaction occurs, or by month-end. Investment services and insurance income consists primarily of commissions received on mutual funds and other investment sales that are recognized on the trade date, which is when the Company has satisfied its performance obligation. Title insurance and real estate settlement services revenue is recognized at the time the real estate transaction is completed. Card services and interchange income primarily consist of debit and credit card income, ATM fees, merchant services income, and other service charges. The Company’s performance obligation is generally satisfied, and the related revenue recognized, immediately, when the transaction occurs, or by month-end. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized no less than monthly. Noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC 606, for March 31, 2024 and 2023 consisted of the following (dollars in thousands). Three Months Ended March 31, 2024 2023 Noninterest income Service charges on deposit accounts $ 273 $ 225 Investment services and insurance income 581 507 Title insurance income 303 248 Card services and interchange income 726 690 Other 63 11 Within scope of ASC 606 1,946 1,681 Not within scope of ASC 606 445 685 Total noninterest income $ 2,391 $ 2,366

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14 SUBSEQUENT EVENTS On April 25, 2024, the Company was notified that settlement accounting was triggered on its defined benefit pension plan. Under FASB Accounting Standards Codification 715, settlement accounting is triggered when the lump sum payments during the year exceed the sum of the plan’s service cost and interest cost. The impact of settlement accounting is that a percentage of any outstanding gains or losses the plan is currently amortizing must be recognized immediately. As a result, the Company recognized a gain of $547,345 in the second quarter of 2024. On May 8, 2024, the gain was increased to $577,305 due to an additional lump sum distribution.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles Of Consolidation	The Consolidated Financial Statements include the accounts of F&M Bank Corp. (the “Company”), Farmers & Merchants Bank (the “Bank”), TEB Life Insurance Company (“TEB”), Farmers & Merchants Financial Services, Inc. (“FMFS”), VBS Mortgage, LLC (dba “F&M Mortgage”), and VSTitle, LLC (“VST”), with all significant intercompany accounts and transactions eliminated. TEB was dissolved on November 8, 2023. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and to accepted practices within the banking industry.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for credit losses.
Reclassification	Certain reclassifications have been made to prior period amounts to conform to current period presentation. None of these reclassifications are considered material and have no impact on net income.
Nature Of Operations	The Company, through its subsidiary Farmers & Merchants Bank, operates under a charter issued by the Commonwealth of Virginia and provides commercial banking services. As a state chartered bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions and the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Bank provides services to customers primarily in the counties of Rockingham, Shenandoah, Augusta, and Frederick, and the cities of Harrisonburg, Staunton, Waynesboro, and Winchester in Virginia. Services are provided at fourteen branch offices and a Dealer Finance Division. The Company offers insurance, mortgage lending, title insurance and financial services through its subsidiaries Farmers & Merchants Financial Services, Inc., F&M Mortgage, and VSTitle, LLC.
Cash and Cash Equivalents	For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and interest-bearing deposits. Generally, federal funds are purchased and sold on an overnight basis.
Allowance for Credit Losses - Available for Sale Securities	For available for sale securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. In making the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income. Changes in the allowance for credit loss are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance for credit loss when management believes an available for sale security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2024, there was no allowance for credit loss related to the available for sale securities portfolio. Accrued interest receivable on available for sale debt securities totaled $1.4 million at March 31, 2024 and was excluded from the estimate of credit losses.
Loans	Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of discounts and deferred fees and costs. Accrued interest receivable related to loans totaled $3.7 million at March 31, 2024 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using methods that approximate a level yield without anticipating prepayments. The accrual of interest is generally discontinued when a loan becomes 90 days past due and is not well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. Past due status is based on contractual terms of the loan. A loan is considered to be past due when a scheduled payment has not been received 30 days after the contractual due date. All accrued interest is reversed against interest income when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and future payments are reasonably assured.
Allowance for Credit Losses - Loans	The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Accrued interest receivable is excluded from the estimate of credit losses. The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company utilizes a Qualitative Scorecard (“scorecard”) to adjust the historical loss information, as necessary, to reflect the Company’s expectations about the future. For each segment, the scorecard calculates the difference between the quantitative expected credit loss and the high watermark average remaining maturity loss rates. This difference is the maximum qualitative adjustment that can be applied to that segment. Due to the low number of losses in the Bank’s portfolio, in particular from 2008-2012, a number of pool sets will leverage peer data to calculate the overall loss rate. The Company believes that in order to provide a reasonable and supportable loss rate, data representative of losses during a financial downturn will provide a better representation of the perceived risk in the portfolio. In determining how to apply the weightings for the various qualitative factors, management assessed which factors would have the highest impact on potential loan losses. The economy and problem loan trends were determined to have the most significant effect on the estimated losses. The most influential factor on potential loan losses was economic conditions, with a weighting of 20%-25%. The Company will evaluate the weighting applied to each pool on an annual basis. The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified the following portfolio segments and calculates the allowance for credit losses for each using a remaining life methodology: 1-4 family residential construction. Other construction, land development and land. Secured by farmland. Home equity - open end. Real estate. Home equity - closed end. Multifamily. Owner-occupied commercial real estate. Other commercial real estate. Agriculture loans. Commercial and industrial. Credit cards. Automobile loans. Other consumer loans. Municipal loans. Additionally, the allowance for credit losses calculation includes adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management experience and risk tolerance, loan review and audit results, asset quality and portfolio trends, loan portfolio growth, industry concentrations, trends in underlying collateral, external factors and economic conditions not already captured. Loans that do not share risk characteristics are evaluated on an individual basis. When management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting dated adjusted for selling costs as appropriate.
Allowance for Credit Losses - Unfunded Commitments	Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for credit losses in the Company’s income statements. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees. The allowance for unfunded commitments is included in other liabilities on the Company’s consolidated balance sheets.
Earnings Per Share	Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period, including voting rights and sharing in nonforfeitable dividends. Diluted earnings per share includes all convertible securities, such as convertible preferred stock, convertible debt, equity options, and warrants. The Company does not have any convertible securities that would dilute the earnings per share.
Recent Accounting Pronouncements	Accounting Standards adopted in 2024: In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. ASU 2023-02 was effective for the Company on January 1, 2024. The adoption of ASU 2023-02 did not have a material impact on the Company’s consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” These amendments require entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 was effective for the Company on January 1, 2024. The adoption of ASU 2023-01 did not have a material impact on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 was effective for the Company on January 1, 2024. The adoption of ASU 2022-03 did not have a material impact on the Company’s consolidated financial statements. In August 2020, Accounting Standards Pending Adoption: In March 2024, the FASB issued ASU 2024-02, “Codification Improvements – Amendments to Remove References to the Concepts Statements”. This ASU contains amendments to the Codification that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Statements to provide guidance in certain topical areas. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively to all new transactions recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied. If an entity adopts the amendments retrospectively, it should adjust the opening balance of retained earnings as of the beginning of the earliest comparative period presented. The Company does not expect the adoption of ASU 2024-02 to have a material impact on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-01, “Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards”. This ASU provides an illustrative example intended to demonstrate how entities that account for profits interest and similar awards would determine whether a profits interest award should be accounted for in accordance with Topic 718. This ASU is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the annual period that includes that interim period. Transition can be done either retrospectively or prospectively. The Company does not expect the adoption of ASU 2024-01 to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pretax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), an amount for other segment items by reportable segment and a description of its composition, all annual disclosures about a reportable segment profit or loss and assets currently required by FASB ASU Topic 280 in interim periods, and the title and position of the CODM and how the CODM uses the reported measures. Additionally, this ASU requires that at least one of the reported segment profit and loss measures should be the measure that is most consistent with the measurement principles used in an entity’s consolidated financial statements. Lastly, this ASU requires public business entities with a single reportable segment to provide all disclosures required by these amendments in this ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively. The Company does not expect the adoption of ASU 2023-07 to have a material impact on its consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU incorporates certain U.S. Securities and Exchange Commission (SEC) disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its consolidated financial statements. In July 2023, the FASB issued ASU 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718).” This ASU amends the FASB Accounting Standards Codification for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. ASU 2023-03 is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2023-03 to have a material impact on its consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Company’s financial position, result of operations or cash flows.

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2024
SECURITIES
Schedule Of Amortized Cost And Fair Value For Securities	March 31, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U. S. Treasuries $ 30,052 $ - $ 2,121 $ 27,931 U. S. Government sponsored enterprises 133,491 - 8,741 124,750 Securities issued by States and political subdivisions of the U.S. 41,300 87 2,737 38,650 Mortgage-backed obligations of federal agencies 165,131 237 24,931 140,437 Corporate debt securities 30,550 - 3,294 27,256 Total Securities Available for Sale $ 400,524 $ 324 $ 41,824 $ 359,024 December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U. S. Treasuries $ 35,048 $ - $ 2,167 $ 32,881 U. S. Government sponsored enterprises 133,487 - 8,784 124,703 Securities issued by States and political subdivisions of the U.S. 41,341 145 2,725 38,761 Mortgage-backed obligations of federal agencies 168,468 173 23,568 145,073 Corporate debt securities 30,550 25 3,319 27,256 Total Securities Available for Sale $ 408,894 $ 343 $ 40,563 $ 368,674
Schedule Amortized Cost And Fair Value Of Securities, Maturity	Securities Available for Sale Amortized Fair Cost Value Due in one year or less $ 92,330 $ 89,785 Due after one year through five years 103,331 94,064 Due after five years 66,528 58,331 Due after ten years 138,335 116,844 Total $ 400,524 $ 359,024
Schedule Of Unrealized Losses	Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2024 U.S. Treasuries $ 116 $ 9 $ 27,815 $ 2,112 $ 27,931 $ 2,121 U.S. Government sponsored enterprises - - 124,750 8,741 124,750 8,741 Securities issued by States and political subdivisions in the U.S. - - 31,186 2,737 31,186 2,737 Mortgage-backed obligations of federal agencies - - 135,578 24,931 135,578 24,931 Corporate debt securities 2,190 310 25,066 2,984 27,256 3,294 Total $ 2,306 $ 319 $ 344,395 $ 41,505 $ 346,701 $ 41,824 Less than 12 Months More than 12 Months Total December 31, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U. S. Treasuries $ 125 $ - $ 32,756 $ 2,167 $ 32,881 $ 2,167 U. S. Government sponsored enterprises - - 124,703 8,784 124,703 8,784 Securities issued by States and political subdivisions in the U.S. 484 11 32,597 2,714 33,081 2,725 Mortgage-backed obligations of federal agencies - - 140,041 23,568 140,041 23,568 Corporate debt securities 1,729 271 25,002 3,048 26,731 3,319 Total $ 2,338 $ 282 $ 355,099 $ 40,281 $ 357,437 $ 40,563

LOANS AND CREDIT QUALITY (Table

LOANS AND CREDIT QUALITY (Tables)	3 Months Ended
	Mar. 31, 2024
LOANS AND CREDIT QUALITY
Schedule Of Loans Outstanding	March 31, 2024 December 31, 2023 1-4 Family residential construction $ 32,397 $ 30,488 Other construction, land development and land 52,812 47,749 Secured by farmland 82,048 81,657 Home equity – open end 46,087 45,749 Real estate 202,867 200,629 Home Equity – closed end 6,281 4,835 Multifamily 10,699 8,203 Owner-occupied commercial real estate 88,660 92,362 Other commercial real estate 101,237 106,181 Agricultural loans 14,869 14,405 Commercial and industrial 46,582 44,329 Credit Cards 3,290 3,252 Automobile loans 119,785 122,924 Other consumer loans 13,456 14,376 Municipal loans 5,480 5,625 Gross loans 826,550 822,764 Unamortized net deferred loan fees (678 ) (672 ) Less allowance for credit losses 8,408 8,321 Net loans $ 817,464 $ 813,771
Summary Of Non accrual and Past Due Loans	Age Analysis of Past Due Loans and Leases As of March 31, 2024 Accruing Loans 30-59 Days Past due Accruing Loans 60-89 Days Past due Accruing Loans 90 Days or More Past due Nonaccrual Loans Accruing Current Loans Total Loans 1-4 Family residential construction $ 382 $ - $ - $ 439 $ 31,576 $ 32,397 Other construction, land development and land - - - 517 52,295 52,812 Secured by farmland - - - 53 81,995 82,048 Home equity – open end 241 50 - 311 45,485 46,087 Real estate 2,751 199 - 674 199,243 202,867 Home Equity – closed end - - - - 6,281 6,281 Multifamily - - - - 10,699 10,699 Owner-occupied commercial real estate 1,305 - - 3,258 84,097 88,660 Other commercial real estate 89 - - - 101,148 101,237 Agricultural loans 92 - - - 14,777 14,869 Commercial and industrial 20 - - 605 45,957 46,582 Credit Cards 28 15 9 - 3,238 3,290 Automobile loans 1,610 308 - 380 117,487 119,785 Other consumer loans 101 34 - 1 13,320 13,456 Municipal loans - - - - 5,480 5,480 Gross loans 6,619 606 9 6,238 813,078 826,550 Less: Unamortized net deferred loan fees - - - - (678 ) (678 ) Loans held for investment $ 6,619 $ 606 $ 9 $ 6,238 $ 812,400 $ 825,872 Age Analysis of Past Due Loans and Leases As of December 31, 2023 Accruing Loans 30-59 Days Past due Accruing Loans 60-89 Days Past due Accruing Loans 90 Days or More Past due Nonaccrual Loans Accruing Current Loans Total Loans 1-4 Family residential construction $ - $ - $ - $ 440 $ 30,048 $ 30,488 Other construction, land development and land - - - 528 47,221 47,749 Secured by farmland - - - 596 81,061 81,657 Home equity – open end 595 74 - 217 44,863 45,749 Real estate 2,125 425 - 701 197,378 200,629 Home Equity – closed end 41 - - - 4,794 4,835 Multifamily - - - - 8,203 8,203 Owner-occupied commercial real estate 1,482 - - 3,000 87,880 92,362 Other commercial real estate 92 887 - - 105,202 106,181 Agricultural loans 10 - - 73 14,322 14,405 Commercial and industrial 75 39 25 622 43,568 44,329 Credit Cards 35 7 6 - 3,204 3,252 Automobile loans 1,137 481 - 237 121,069 122,924 Other consumer loans 151 14 - 24 14,187 14,376 Municipal loans - - - - 5,625 5,625 Gross loans 5,743 1,927 31 6,438 808,625 822,764 Less: Unamortized net deferred loan fees - - - - (672 ) (672 ) Loans held for investment $ 5,743 $ 1,927 $ 31 $ 6,438 $ 807,953 $ 822,092
Summary Of non accrual loans by major categories	March 31, 2024 December 31, 2023 Nonaccrual loans Nonaccrual loans With no Allowance With an Allowance Total With no Allowance With an Allowance Total 1-4 Family residential construction $ - $ 439 $ 439 $ - $ 440 $ 440 Other construction, land development and land 517 - 517 528 - 528 Secured by farmland 53 - 53 596 - 596 Home equity – open end 311 - 311 217 - 217 Real estate 674 - 674 701 - 701 Owner-occupied commercial real estate - 3,258 3,258 - 3,000 3,000 Agricultural loans - - - 73 - 73 Commercial and industrial - 605 605 25 597 622 Automobile loans 380 - 380 237 - 237 Other consumer loans 1 - 1 24 - 24 Total loans $ 1,936 $ 4,302 $ 6,238 $ 2,401 $ 4,037 $ 6,438
Schedule Of modified to borrowers experiencing	Amortized Cost of Basis of Loan Modifications Made to Borrowers Experiencing Financial Difficulty For the Quarter Ended March 31, 2024 Term Extension Weighted Average Term Extension (in months) % of Total Loan Type Owner-occupied commercial real estate 33 13.0 0.04 % Automobile loans 64 4.5 0.05 % Total Term Extension $ 97 7.4 0.05 % Amortized Cost of Basis of Loan Modifications Made to Borrowers Experiencing Financial Difficulty For the Year Ended December 31, 2023 Term Extension Weighted Average Term Extension (in months) % of Total Loan Type Owner-occupied commercial real estate 45 13.0 0.05 % Automobile loans 68 4.5 0.06 % Total Term Extension $ 113 7.9 0.05 %
Summary Of analysis of collateral-dependent loans	Collateral Dependent Loans March 31, 2024 Real Estate Business/Other Assets 1-4 Family residential construction $ 439 $ - Other construction, land development and land 500 - Owner-occupied commercial real estate 3,258 - Commercial and industrial - 605 Total loans $ 4,197 $ 605 Collateral Dependent Loans December 31, 2023 Real Estate Business/Other Assets 1-4 Family residential construction $ 440 $ - Other construction, land development and land 511 - Secured by farmland 596 - Owner-occupied commercial real estate 3,000 - Commercial and industrial - 597 Total loans $ 4,547 $ 597
Summary Of segregated loan portfolio segment	March 31, 2024 Loan Balances Allowance for Credit Losses - Loans Loans Individually Evaluated Loans Collectively Evaluated Total Loans Individually Evaluated Loans Collectively Evaluated Total 1-4 Family residential construction $ 439 $ 31,958 $ 32,397 $ 362 $ 372 $ 734 Other construction, land development and land 500 52,312 52,812 - 1,345 1,345 Secured by farmland - 82,048 82,048 - 825 825 Home equity – open end - 46,087 46,087 - 181 181 Real estate - 202,867 202,867 - 815 815 Home Equity – closed end - 6,281 6,281 - 100 100 Multifamily - 10,699 10,699 - 243 243 Owner-occupied commercial real estate 3,258 85,402 88,660 513 801 1,314 Other commercial real estate - 101,237 101,237 - 178 178 Agricultural loans - 14,869 14,869 - 21 21 Commercial and industrial 605 45,977 46,582 95 712 807 Credit Cards - 3,290 3,290 - 84 84 Automobile loans - 119,785 119,785 - 1,459 1,459 Other consumer loans - 13,456 13,456 - 285 285 Municipal loans - 5,480 5,480 - 17 17 Gross loans 4,802 821,748 826,550 970 7,438 8,408 Less: Unamortized net deferred loan fees - - (678 ) - - - Net loans held for investment $ 4,802 $ 821,748 $ 825,872 $ 970 $ 7,438 $ 8,408 December 31, 2023 Loan Balances Allowance for Credit Losses - Loans Loans Individually Evaluated Loans Collectively Evaluated Total Loans Individually Evaluated Loans Collectively Evaluated Total 1-4 Family residential construction $ 440 $ 30,048 $ 30,488 $ 363 $ 351 $ 714 Other construction, land development and land 511 47,238 47,749 - 1,287 1,287 Secured by farmland 596 81,061 81,657 - 815 815 Home equity – open end - 45,749 45,749 - 180 180 Real estate - 200,629 200,629 - 810 810 Home Equity – closed end - 4,835 4,835 - 77 77 Multifamily - 8,203 8,203 - 181 181 Owner-occupied commercial real estate 3,000 89,362 92,362 263 958 1,221 Other commercial real estate - 106,181 106,181 - 166 166 Agricultural loans - 14,405 14,405 - 20 20 Commercial and industrial 597 43,732 44,329 351 683 1,034 Credit Cards - 3,252 3,252 - 81 81 Automobile loans - 122,924 122,924 - 1,443 1,443 Other consumer loans - 14,376 14,376 - 292 292 Municipal loans - 5,625 5,625 - - - Gross loans 5,144 817,620 822,764 977 7,344 8,321 Less: Unamortized net deferred loan fees - - (672 ) - - - Net loans held for investment $ 5,144 $ 817,620 $ 822,092 $ 977 $ 7,344 $ 8,321
Schedule Of Credit Quality Indicators	Term Loans by Year of Origination 2024 2023 2022 2021 2020 Prior Revolving Total 1-4 Family residential construction Pass $ 268 $ - $ - $ - $ - $ 81 $ 31,609 $ 31,958 Watch - - - - - - - - Substandard - - - - - - 439 439 Total 1-4 Family residential construction 268 - - - - 81 32,048 32,397 Current period gross write-offs - - - - - - - - Other construction, land development and land Pass 450 6,052 9,093 4,823 1,805 9,792 19,865 51,880 Watch - - - - - 65 348 413 Substandard - - - - - 519 - 519 Total Other construction, land development and land 450 6,052 9,093 4,823 1,805 10,376 20,213 52,812 Current period gross write-offs - - - - - - - - Secured by farmland Pass 2,113 10,407 15,846 13,478 26,650 9,551 3,179 81,224 Watch - - - - - 771 - 771 Substandard - - - - - 53 - 53 Total Secured by farmland 2,113 10,407 15,846 13,478 26,650 10,375 3,179 82,048 Current period gross write-offs - - - - - - - - Home equity – open end Pass - 370 - - - 141 44,370 44,881 Watch - - - - - - 845 845 Substandard - - - - - - 361 361 Total Home equity - open end - 370 - - - 141 45,576 46,087 Current period gross write-offs - - - - - - - - Real estate Pass 6,855 51,876 47,243 14,905 12,059 62,902 446 196,286 Watch - - 44 25 497 3,214 - 3,780 Substandard - - 85 538 - 2,178 - 2,801 Total Real estate 6,855 51,876 47,372 15,468 12,556 68,294 446 202,867 Current period gross write-offs - - - - - - - - Home Equity – closed end Pass 150 2,599 372 114 1,022 2,012 - 6,269 Watch - - - - - - - - Substandard - - - - - 12 - 12 Total Home Equity - closed end 150 2,599 372 114 1,022 2,024 - 6,281 Current period gross write-offs - - - - - - - - Multifamily Pass 2,153 - 2,694 1,381 896 1,544 1,936 10,604 Watch - - - - - 95 - 95 Substandard - - - - - - - - Total Multifamily 2,153 - 2,694 1,381 896 1,639 1,936 10,699 Current period gross write-offs - - - - - - - - Owner-occupied commercial real estate Pass 1,210 2,785 17,635 17,426 7,006 25,008 4,543 75,613 Watch - - - - - 771 - 771 Substandard - - - - - 8,720 3,556 12,276 Total Owner-occupied commercial real estate 1,210 2,785 17,635 17,426 7,006 34,499 8,099 88,660 Current period gross write-offs - - - - - - - - Other commercial real estate Pass 1,096 9,786 29,532 12,234 4,921 33,805 605 91,979 Watch - - - - - 9,171 - 9,171 Substandard - - - - - 87 - 87 Total Other commercial real estate 1,096 9,786 29,532 12,234 4,921 43,063 605 101,237 Current period gross write-offs - - - - - - - - Term Loans by Year of Origination 2024 2023 2022 2021 2020 Prior Revolving Total Agricultural loans Pass 1,367 2,994 2,393 494 284 27 7,129 14,688 Watch - - - - 31 - 150 181 Substandard - - - - - - - - Total Agricultural loans 1367 2,994 2,393 494 315 27 7,279 14,869 Current period gross write-offs - - - - - - - - Commercial and industrial Pass 612 7,286 8,786 4,968 1,491 751 18,776 42,670 Watch - - 41 47 - - 3,210 3,298 Substandard - - - 613 - 1 - 614 Total 1-4 Commercial and industrial 612 7,286 8,827 5,628 1,491 752 21,986 46,582 Current period gross write-offs - - 133 47 24 - - 204 Credit Cards Pass - - - - - - 3,281 3,281 Substandard - - - - - - 9 9 Total Credit cards - - - - - - 3,290 3,290 Current period gross write-offs - - - - - - 9 9 Automobile loans Pass 8,612 50,205 34,868 16,858 6,069 2,447 - 119,059 Watch - 42 180 35 48 41 - 346 Substandard - 235 62 69 9 5 - 380 Total Automobile loans 8,612 50,482 35,110 16,962 6,126 2,493 - 119,785 Current period gross write-offs - 284 245 139 62 27 - 757 Other consumer loans Pass 985 4,683 4,384 1,886 653 489 352 13,432 Watch - 5 3 7 - 3 1 19 Substandard - - - - - 5 - 5 Total Other consumer loans 985 4,688 4,387 1,893 653 497 353 13,456 Current period gross write-offs - 19 15 6 - 1 - 41 Municipal loans Pass - - 118 886 1,096 3,380 - 5,480 Watch - - - - - - - - Substandard - - - - - - - - Total Municipal loans - - 118 886 1,096 3,380 - 5,480 Current period gross write-offs - - - - - - - - Total loans $ 25,871 $ 149,325 $ 173,379 $ 90,787 $ 64,537 $ 177,641 $ 145,010 $ 826,550 Less: Unamortized net deferred loan fees (678 ) Loans held for investment $ 825,872 Current period gross write-offs $ - $ 303 $ 393 $ 192 $ 86 $ 28 $ 9 $ 1,011 Term Loans by Year of Origination 2023 2022 2021 2020 2019 Prior Revolving Total 1-4 Family residential construction Pass $ 162 $ - $ - $ - $ - $ 108 $ 29,214 $ 29,484 Watch - - - - - - 564 564 Substandard - - - - - - 440 440 Total 1-4 Family residential construction 162 - - - - 108 30,218 30,488 Current period gross write-offs - 70 - - - - - 70 Other construction, land development and land Pass 5,123 9,138 4,983 1,831 2,847 5,456 17,770 47,148 Watch - - - - - 67 - 67 Substandard 511 - - - - 23 - 534 Total Other construction, land development and land 5,634 9,138 4,983 1,831 2,847 5,546 17,770 47,749 Current period gross write-offs - - - - - - - - Secured by farmland Pass 7,503 15,834 13,688 27,020 2,509 7,842 5,869 80,265 Watch - - - - 781 - - 781 Substandard - - 333 - - 263 15 611 Total Secured by farmland 7,503 15,834 14,021 27,020 3,290 8,105 5,884 81,657 Current period gross write-offs - - - - - - - - Home equity – open end Pass 370 - - - - 141 44,089 44,600 Watch - - - - - - 883 883 Substandard - - - - - - 266 266 Total Home equity - open end 370 - - - - 141 45,238 45,749 Current period gross write-offs - - - - - - - - Real estate Pass 53,413 47,785 15,211 12,192 6,490 55,665 386 191,142 Watch - 45 - 499 155 4,893 - 5,592 Substandard - 88 539 - 1,212 2,056 - 3,895 Total Real estate 53,413 47,918 15,750 12,691 7,857 62,614 386 200,629 Current period gross write-offs - - - - - 19 - 19 Home Equity – closed end Pass 1,126 382 117 1,044 464 1,690 - 4,823 Watch - - - - - - - - Substandard - - - - 12 - - 12 Total Home Equity - closed end 1,126 382 117 1,044 476 1,690 - 4,835 Current period gross write-offs - - - - - - - - Multifamily Pass - 2,712 1,395 906 - 1,567 1,524 8,104 Watch - - - - - 99 - 99 Substandard - - - - - - - - Total Multifamily - 2,712 1,395 906 - 1,666 1,524 8,203 Current period gross write-offs - - - - - - - - Owner-occupied commercial real estate Pass 2,820 18,049 17,775 7,109 3,586 22,301 7,821 79,461 Watch - - - - 40 2,097 - 2,137 Substandard - - - - 6,283 1,183 3,298 10,764 Total Owner-occupied commercial real estate 2,820 18,049 17,775 7,109 9,909 25,581 11,119 92,362 Current period gross write-offs - - - - - - - - Other commercial real estate Pass 10,193 29,317 12,744 4,990 3,739 32,666 3,206 96,855 Watch - - - - - 9,239 - 9,239 Substandard - - - - - 87 - 87 Total Other commercial real estate 10,193 29,317 12,744 4,990 3,739 41,992 3,206 106,181 Current period gross write-offs - - - - - - - - Term Loans by Year of Origination 2023 2022 2021 2020 2019 Prior Revolving Total Agricultural loans Pass 4,626 2,548 534 340 - 38 6,066 14,152 Watch - - - 31 - - 149 180 Substandard - 48 14 11 - - - 73 Total Agricultural loans 4,626 2,596 548 382 - 38 6,215 14,405 Current period gross write-offs - - - - - - - - Commercial and industrial Pass 7,396 9,373 5,359 1,691 674 272 17,408 42,173 Watch - 44 91 - - - 1,363 1,498 Substandard - - 632 25 - 1 - 658 Total Commercial and industrial 7,396 9,417 6,082 1,716 674 273 18,771 44,329 Current period gross write-offs - 31 - - - 2 - 33 Credit Cards Pass - - - - - - 3,246 3,246 Substandard - - - - - - 6 6 Total Credit cards - - - - - - 3,252 3,252 Current period gross write-offs - - - - - - 69 69 Automobile loans Pass 52,471 38,375 19,193 7,301 2,145 2,367 - 121,852 Watch 179 323 158 106 36 32 - 834 Substandard 98 48 63 6 18 5 - 238 Total Automobile loans 52,748 38,746 19,414 7,413 2,199 2,404 - 122,924 Current period gross write-offs 334 669 560 149 53 39 - 1,804 Other consumer loans Pass 5,169 4,983 2,230 843 194 367 530 14,316 Watch 17 4 7 - 1 2 1 32 Substandard 12 7 2 - 6 1 - 28 Total Other consumer loans 5,198 4,994 2,239 843 201 370 531 14,376 Current period gross write-offs - 77 3 3 6 4 - 93 Municipal loans Pass - 118 923 1,096 1,228 2,260 - 5,625 Watch - - - - - - - - Substandard - - - - - - - - Total Municipal loans - 118 923 1,096 1,228 2,260 - 5,625 Current period gross write-offs - - - - - - - - Total loans $ 151,189 $ 179,221 $ 95,991 $ 67,041 $ 32,420 $ 152,788 $ 144,114 $ 822,764 Less: Unamortized net deferred loan fees (672 ) Loans held for investment $ 822,092 Current period gross write-offs $ 334 $ 847 $ 563 $ 152 $ 59 $ 64 $ 69 $ 2,088

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	3 Months Ended
	Mar. 31, 2024
ALLOWANCE FOR CREDIT LOSSES
Schdule of allowance for loan losses	Allowance for Credit Losses and Carrying Amount of Loans For the Three Months Ended March 31, 2024 Beginning Balance Charge-offs Recoveries Provision for loan credit losses Ending Balance 1-4 Family residential construction $ 714 $ - $ - $ 20 $ 734 Other construction, land development and land 1,287 - - 58 1,345 Secured by farmland 815 - - 10 825 Home equity – open end 180 - 25 (24 ) 181 Real estate 810 - 1 4 815 Home Equity – closed end 77 - - 23 100 Multifamily 181 - - 62 243 Owner-occupied commercial real estate 1,221 - - 93 1,314 Other commercial real estate 166 - - 12 178 Agricultural loans 20 - - 1 21 Commercial and industrial 1,034 204 27 (50 ) 807 Credit Cards 81 9 10 2 84 Automobile loans 1,443 757 135 638 1,459 Other consumer loans 292 41 6 28 285 Municipal loans - - - 17 17 Total loans $ 8,321 $ 1,011 $ 204 $ 894 $ 8,408 Allowance for Credit Losses and Carrying Amount of Loans For the Year Ended December 31, 2023 Beginning Balance Adjustment for adoption of ASU 2016-13 Charge-offs Recoveries Provision for loan credit losses Ending Balance 1-4 Family residential construction $ 324 $ 109 $ 70 $ 1 $ 350 $ 714 Other construction, land development and land 694 602 - - (9 ) 1,287 Secured by farmland 571 311 - - (67 ) 815 Home equity – open end 446 (189 ) - 3 (80 ) 180 Real estate 1,389 (184 ) 19 2 (378 ) 810 Home Equity – closed end 39 96 - - (58 ) 77 Multifamily 71 182 - - (72 ) 181 Owner-occupied commercial real estate 992 280 - - (51 ) 1,221 Other commercial real estate 1,023 (582 ) - - (275 ) 166 Agricultural loans 80 (58 ) - - (2 ) 20 Commercial and industrial 368 338 33 2 359 1,034 Credit Cards 68 26 69 37 19 81 Automobile loans 1,790 (257 ) 1,804 514 1,200 1,443 Other consumer loans 81 103 93 55 146 292 Municipal loans - - - - - - Total loans $ 7,936 $ 777 $ 2,088 $ 614 $ 1,082 $ 8,321
Summarize of activity in the allowance for credit losses	2024 2023 Balance as of January 1 $ 690 $ - Adjustment to allowance for unfunded commitments for adoption of ASU 2016-13 - 747 Recovery of credit losses – unfunded commitments (71 ) - Balance as of March 31 $ 619 $ 747

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2024
LEASES
Summary of Lease	March 31, 2024 Lease Liabilities $ 713 Right-of-use assets $ 689 Weighted average remaining lease term (years) 1.27 years Weighted average discount rate 3.39 % For the Three Months Ended March 31, 2024 2023 Operating lease cost $ 52 $ 40 Total lease cost $ 52 $ 40 Cash paid for amounts included in the measurement of lease liabilities $ 58 $ 58
Maturity of lease liability	March 31, 2024 Nine months ending December 31, 2024 $ 134 Twelve months ending December 31, 2025 125 Twelve months ending December 31, 2026 70 Twelve months ending December 31, 2027 56 Twelve months ending December 31, 2028 57 Thereafter 406 Total undiscounted cash flows $ 848 Discount (135 ) Lease liabilities $ 713

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2024
OTHER REAL ESTATE OWNED
Other real estate owned activity	2024 2023 Balance as of January 1 $ 55 $ - Purchase of foreclosed real estate - - Loans transferred to OREO - - Proceeds from sale of OREO (76 ) - Gain on sales of OREO 21 - Balance as of March 31 $ - $ -

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Mar. 31, 2024
ACCUMULATED OTHER COMPREHENSIVE LOSS
Schedule of Accumulated other comprehensive loss	Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2022 $ (40,452 ) $ 439 $ (40,012 ) Change in unrealized securities gains, net of tax expense of $722 2,716 - 2,716 Balance at March 31, 2023 $ (37,736 ) $ 439 $ (37,296 ) Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2023 $ (31,774 ) $ 757 $ (31,017 ) Change in unrealized securities losses, net of tax benefit of $270 (1,010 ) - (1,010 ) Balance at March 31, 2024 $ (32,784 ) $ 757 $ (32,027 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables 1)	3 Months Ended
	Mar. 31, 2024
FAIR VALUE MEASUREMENTS
Fair value on a recurring basis	March 31, 2024 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 1,385 $ - $ 1,385 $ - U. S. Treasury securities 27,931 - 27,931 - U.S. Government sponsored enterprises 124,750 - 124,750 - Securities issued by States and political subdivisions of the US 38,650 - 38,650 - Mortgage-backed obligations of federal agencies 140,437 - 140,437 - Corporate debt securities 27,256 - 27,256 - IRLC 78 - 78 - Forward sales commitments 5 - 5 - Assets at Fair Value $ 360,492 $ - $ 360,492 $ - December 31, 2023 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 1,119 $ - $ 1,119 $ - U. S. Treasury securities 32,881 - 32,881 - U.S. Government sponsored enterprises 124,703 - 124,703 - Securities issued by States and political subdivisions of the US 38,761 - 38,761 - Mortgage-backed obligations of federal agencies 145,073 - 145,073 - Corporate debt securities 27,256 - 27,256 - IRLC 81 - 81 - Assets at Fair Value $ 369,874 $ - $ 369,874 $ - Liabilities: Forward sales commitments $ 22 $ - $ 22 $ - Liabilities at Fair Value $ 22 $ - $ 22 $ -
Summarizes Measured At Fair Value On A Nonrecurring Basis	March 31, 2024 Fair Value Measurements Using: Collateral dependent loans with an ACL Balance Level 1 Level 2 Level 3 1-4 family residential construction $ 77 $ - $ - $ 77 Owner-occupied commercial real estate 2,745 - - 2,745 Commercial and industrial 510 - - 510 Total collateral dependent loans with an ACL $ 3,332 $ - $ - $ 3,332 OREO $ - $ - $ - $ - December 31, 2023 Fair Value Measurements Using: Collateral dependent loans with an ACL Balance Level 1 Level 2 Level 3 1-4 family residential construction $ 77 $ - $ - $ 77 Owner-occupied commercial real estate 2,737 - - 2,737 Commercial and industrial 246 - - 246 Total collateral dependent loans with an ACL $ 3,060 $ - $ - $ 3,060 OREO $ 55 $ - $ - $ 55 March 31, 2024 Fair Value Valuation Technique Significant Unobservable Inputs Range Collateral Dependent Loans $ 3,332 Discounted appraised value Discount for selling costs and marketability 33% December 31, 2023 Fair Value Valuation Technique Significant Unobservable Inputs Range Collateral Dependent Loans $ 3,060 Discounted appraised value Discount for selling costs and marketability 31% - 71% (Average 44%) OREO $ 55 Discounted appraised value Discount for selling costs and marketability 29%
Carrying value and estimated fair value for financial instruments	March 31, 2024 Fair Value Measurements using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Assets: Cash and cash equivalents $ 52,486 $ 52,486 $ - $ - $ 52,486 Securities 359,024 - 359,024 - 359,024 Loans held for sale 1,385 - 1,385 - 1,385 Loans held for investment, net 825,872 - - 796,122 796,122 Interest receivable 5,094 - 5,094 - 5,094 Bank owned life insurance 23,055 - 23,055 - 23,055 IRLC 78 - 78 - 78 Forward sales commitments 5 - 5 - 5 Liabilities: Deposits $ 1,156,343 $ - $ 1,154,647 $ - $ 1,154,647 Short-term debt 60,000 - - 60,000 60,000 Long-term debt 6,943 - - 6,762 6,762 Interest payable 1,793 - 1,793 - 1,793 December 31, 2023 Fair Value Measurements using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Assets: Cash and cash equivalents $ 23,717 $ 23,717 $ - $ - $ 23,717 Securities 368,674 - 368,674 - 368,674 Loans held for sale 1,119 - 1,119 - 1,119 Loans held for investment, net 822,092 - - 793,440 793,440 Interest receivable 5,034 - 5,034 - 5,034 Bank owned life insurance 22,878 - 22,878 - 22,878 IRLC 81 - 81 - 81 Liabilities: Deposits $ 1,133,236 $ - $ 1,131,747 $ - $ 1,131,747 Short-term debt 60,000 - - 60,000 60,000 Long-term debt 6,932 - - 6,761 6,761 Interest payable 1,592 - 1,592 - 1,592 Forward sales commitments 22 - 22 - 22

EMPLOYEE BENEFITS (Tables)

EMPLOYEE BENEFITS (Tables)	3 Months Ended
	Mar. 31, 2024
EMPLOYEE BENEFITS
Schedule Of Employee Benefit Plan	Three Months Ended March 31, 2024 March 31, 2023 Service cost $ - $ - Interest cost 79 92 Expected return on plan assets (98 ) (130 ) Recognized net actuarial gain (5 ) - Net periodic pension cost $ (24 ) $ (38 )

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2024
REVENUE RECOGNITION
Summary Of Noninterest Income, Segregated By Revenue Streams	Three Months Ended March 31, 2024 2023 Noninterest income Service charges on deposit accounts $ 273 $ 225 Investment services and insurance income 581 507 Title insurance income 303 248 Card services and interchange income 726 690 Other 63 11 Within scope of ASC 606 1,946 1,681 Not within scope of ASC 606 445 685 Total noninterest income $ 2,391 $ 2,366

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Millions	Mar. 31, 2024 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accrued interest receivable on available for sale debt securities	$ 1.4
Accrued interest receivable related to loans	$ 3.7

SECURITIES (Details)

SECURITIES (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair value	$ 359,024,000	$ 368,674,000
Amortized Cost	400,524,000	408,894,000
Gross Unrealized gains	324,000	343,000
Gross Unrealized losses	41,824,000	40,563,000
U S Treasuries [Member]
Fair value	27,931,000	32,881,000
Amortized Cost	30,052,000	35,048,000
Gross Unrealized gains		0
Gross Unrealized losses	2,121,000	2,167,000
U. S. Government Sponsored Enterprises [Member]
Fair value	124,750,000	124,703,000
Amortized Cost	133,491,000	133,487,000
Gross Unrealized gains	0	0
Gross Unrealized losses	8,741,000	8,784,000
Securities issued by States and political subdivisions in the U.S. [Member]
Fair value	38,650,000	38,761,000
Amortized Cost	41,300,000	41,341,000
Gross Unrealized gains	87,000	145,000
Gross Unrealized losses	2,737,000	2,725,000
Mortgage-backed obligations of federal agencies [Member]
Fair value	140,437,000	145,073,000
Amortized Cost	165,131,000	168,468,000
Gross Unrealized gains	237,000	173,000
Gross Unrealized losses	24,931,000	23,568,000
Corporate debt security [Member]
Fair value	27,256,000	27,256,000
Amortized Cost	30,550,000	30,550,000
Gross Unrealized gains		25,000
Gross Unrealized losses	$ 3,294,000	$ 3,319,000

SECURITIES (Details 1)

SECURITIES (Details 1) - Securities Available for Sale [Member] $ in Thousands	Mar. 31, 2024 USD ($)
Due in one year or less, amortized cost	$ 92,330
Due in one year or less, fair value	89,785
Due after one year through five years, amortized cost	103,331
Due after one year through five years, fair value	94,064
Due after five years through ten years, amortized cost	66,528
Due after five years through ten years, fair value	58,331
Due after ten years, amortized cost	138,335
Due after ten years, fair value	116,844
Total, amortized cost	400,524
Total fair value	$ 359,024

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair value less than 12 months	$ 2,306	$ 2,338
Unrealized losses less than 12 months	319	282
Fair value more than 12 months	344,395	355,099
Unrealized losses more than 12 months	41,505	40,281
Fair value total	346,701	357,437
Unrealized losses total	41,824	40,563
U S Treasuries [Member]
Fair value less than 12 months	116	125
Unrealized losses less than 12 months	9	0
Fair value more than 12 months	27,815	32,756
Unrealized losses more than 12 months	2,112	2,167
Fair value total	27,931	32,881
Unrealized losses total	2,121	2,167
U. S. Government Sponsored Enterprises [Member]
Fair value less than 12 months		0
Unrealized losses less than 12 months		0
Fair value more than 12 months	124,750	124,703
Unrealized losses more than 12 months	8,741	8,784
Fair value total	124,750	124,703
Unrealized losses total	8,741	8,784
Securities issued by States and political subdivisions in the U.S. [Member]
Fair value less than 12 months		484
Unrealized losses less than 12 months		11
Fair value more than 12 months	31,186	32,597
Unrealized losses more than 12 months	2,737	2,714
Fair value total	31,186	33,081
Unrealized losses total	2,737	2,725
Mortgage-backed obligations of federal agencies [Member]
Fair value less than 12 months		0
Unrealized losses less than 12 months	0	0
Fair value more than 12 months	135,578	140,041
Unrealized losses more than 12 months	24,931	23,568
Fair value total	135,578	140,041
Unrealized losses total	24,931	23,568
Corporate debt security [Member]
Fair value less than 12 months	2,190	1,729
Unrealized losses less than 12 months	310	271
Fair value more than 12 months	25,066	25,002
Unrealized losses more than 12 months	2,984	3,048
Fair value total	27,256	26,731
Unrealized losses total	$ 3,294	$ 3,319

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) $ in Thousands	Mar. 31, 2024 USD ($)
SECURITIES
Market value of pledged securities to BTFP	$ 207,200
Carrying basis low income housing historic equity partnerships	4,900
Carrying Basis of Stock in FHLB	3,800
Carrying basis of various other investments	2,000
Additional commitment to low-income housing limited partnerships	$ 524

LOANS AND CREDIT QUALITY (Detai

LOANS AND CREDIT QUALITY (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Gross loans	$ 826,550	$ 822,764
Unamortized net deferred loan fees	(678)	(672)
Less allowance for credit losses	8,408	8,321
Loans outstanding	817,464	813,771
Multi-Family [Member]
Loans outstanding	10,699	8,203
1-4 Family residential construction [Member]
Loans outstanding	32,397	30,488
Owner-occupied commercial real estate [Member]
Loans outstanding	88,660	92,362
Real Estate [Member]
Loans outstanding	202,867	200,629
Credit Cards [Member]
Loans outstanding	3,290	3,252
Other commercial real estate [Member]
Loans outstanding	101,237	106,181
Commercial and industrial [Member]
Loans outstanding	46,582	44,329
Automobile loans [Member]
Loans outstanding	119,785	122,924
Farmland [Member]
Loans outstanding	82,048	81,657
Home Equity - Closed End [Member]
Loans outstanding	6,281	4,835
Home Equity - Open End [Member]
Loans outstanding	46,087	45,749
Construction/Land Developments [Member]
Loans outstanding	52,812	47,749
Agricultural loans [Member]
Loans outstanding	14,869	14,405
Other consumer loans [Member]
Loans outstanding	13,456	14,376
Municipal loans [Member]
Loans outstanding	$ 5,480	$ 5,625

LOANS AND CREDIT QUALITY (Det_2

LOANS AND CREDIT QUALITY (Details 1) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Gross loans, net of costs, current	$ 813,078,000	$ 808,625,000
Gross loans, net of costs, 30-59 days past due	6,660,000	5,743,000
Gross loans, net of costs, 60-89 days past due	606,000	1,927,000
Gross loans, net of costs, greater than 90 days	9,000	31,000
Gross loans, net of costs, non accruel loans	6,238,000	6,438,000
Less: Deferred loan fees, net of costs, current	(678,000)	(672,000)
Less: Deferred loan fees, net of costs, total loan receivable	(678,000)	(672,000)
Gross loans, net of costs, total loan receivable	826,550,000	822,764,000
Commercial Real Estate Portfolio Segment [Member]
Non-Accrual Loans	0
Current	194,847,000
Total Loan Receivable	195,163,000
30-59 Days Past Due	234,000
60-89 Days Past Due	82,000
Greater than 90 Days	0
Total [Member]
30-59 Days Past due	6,619,000	5,743,000
60-89 Days Past due	606,000	1,927,000
Greater than 90 Days	9,000	31,000
Non-Accrual Loans	6,238,000	6,438,000
Current	812,400,000	807,953,000
Total Loan Receivable	825,872,000	822,092,000
Multi-Family [Member]
Current	10,699,000	8,203,000
Total Loan Receivable	10,699,000	8,203,000
Construction/Land Development Other [Member]
Non-Accrual Loans	517,000	528,000
Current	52,295,000	47,221,000
Total Loan Receivable	52,812,000	47,749,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Real Estate [Member]
Non-Accrual Loans	674,000	701,000
Current	199,243,000	197,378,000
Total Loan Receivable	202,867,000	200,629,000
30-59 Days Past Due	2,751,000	2,125,000
60-89 Days Past Due	199,000	425,000
Greater than 90 Days	0	0
Credit Cards [Member]
Current	3,238,000	3,204,000
Total Loan Receivable	3,290,000	3,252,000
30-59 Days Past Due	28,000	35,000
60-89 Days Past Due	15,000	7,000
Greater than 90 Days	9,000	6,000
Other commercial real estate [Member]
Current	101,148,000	105,202,000
Total Loan Receivable	101,237,000	106,181,000
30-59 Days Past Due	89,000	92,000
60-89 Days Past Due		887,000
Commercial and industrial [Member]
Non-Accrual Loans	605,000	622,000
Current	45,957,000	43,568,000
Total Loan Receivable	46,582,000	44,329,000
30-59 Days Past Due	20,000	75,000
60-89 Days Past Due	0	39,000
Greater than 90 Days	0	25,000
Automobile loans [Member]
Non-Accrual Loans	380,000	237,000
Current	117,487,000	121,069,000
Total Loan Receivable	119,785,000	122,924,000
30-59 Days Past Due	1,610,000	1,137,000
60-89 Days Past Due	308,000	481,000
Greater than 90 Days	0	0
1-4 Family residential construction [Member]
Non-Accrual Loans	439,000	440,000
Current	31,576,000	30,048,000
Total Loan Receivable	32,397,000	30,488,000
30-59 Days Past Due	382,000
Owner-occupied [Member]
Non-Accrual Loans	3,258,000	3,000,000
Current	84,097,000	87,880,000
Total Loan Receivable	88,660,000	92,362,000
30-59 Days Past Due	1,305,000	1,482,000
Farmland [Member]
Non-Accrual Loans	53,000	596,000
Current	81,995,000	81,061,000
Total Loan Receivable	82,048,000	81,657,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Agricultural loans [Member]
Non-Accrual Loans	0	73,000
Current	14,777,000	14,322,000
Total Loan Receivable	14,869,000	14,405,000
30-59 Days Past Due	92,000	10,000
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Other consumer loans [Member]
Non-Accrual Loans	1,000	24,000
Current	13,320,000	14,187,000
Total Loan Receivable	13,456,000	14,376,000
30-59 Days Past Due	101,000	151,000
60-89 Days Past Due	34,000	14,000
Greater than 90 Days	0	0
Municipal loans [Member]
Current	5,480,000	5,625,000
Total Loan Receivable	5,480,000	5,625,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Home Equity - Close End [Member]
Current	6,281,000	4,794,000
Total Loan Receivable	6,281,000	4,835,000
30-59 Days Past Due	41,000	41,000
Home Equity Open End [Member]
Non-Accrual Loans	311,000	217,000
Current	45,485,000	44,863,000
Total Loan Receivable	46,087,000	45,749,000
30-59 Days Past Due	241,000	595,000
60-89 Days Past Due	50,000	74,000
Greater than 90 Days	$ 0	$ 0

LOANS AND CREDIT QUALITY (Det_3

LOANS AND CREDIT QUALITY (Details 2) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Total [Member]
Nonaccrual loans with No Allowance	$ 1,936,000	$ 2,401,000
Nonaccrual Loans with an Allowance	4,302,000	4,037,000
Non-Accrual Loans	6,238,000	6,438,000
Other Commercial Real Estate [Member]
Nonaccrual loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	3,258,000	3,000,000
Non-Accrual Loans	3,258,000	3,000,000
Other construction, land development and land [Member]
Nonaccrual loans with No Allowance	517,000	528,000
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	517,000	528,000
Real Estate [Member]
Nonaccrual loans with No Allowance	674,000	701,000
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	674,000	701,000
Automobile loans [Member]
Nonaccrual loans with No Allowance	380,000	237,000
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	380,000	237,000
1-4 Family residential construction [Member]
Nonaccrual loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	439,000	440,000
Non-Accrual Loans	439,000	440,000
Farmland [Member]
Nonaccrual loans with No Allowance	53,000	596,000
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	53,000	596,000
Agricultural loans [Member]
Nonaccrual loans with No Allowance	0	73,000
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	0	73,000
Home Equity Open End [Member]
Nonaccrual loans with No Allowance	311,000	217,000
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	311,000	217,000
Commercial & Industrial [Member]
Nonaccrual loans with No Allowance	0	25,000
Nonaccrual Loans with an Allowance	605,000	597,000
Non-Accrual Loans	605,000	622,000
Other consumer loans [Member]
Nonaccrual loans with No Allowance	1,000	24,000
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	$ 1,000	$ 24,000

LOANS AND CREDIT QUALITY (Det_4

LOANS AND CREDIT QUALITY (Details 3) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Total [Member]
Weighted Average TermExtension (Months)	7 years 4 months 24 days	7 years 10 months 24 days
Loan percentage	0.05%	0.05%
Term Extension	$ 97	$ 113
Commercial Real Estate [Member]
Weighted Average TermExtension (Months)	13 years	13 years
Loan percentage	0.04%	0.05%
Term Extension	$ 33	$ 45
Automobile loans [Member]
Weighted Average TermExtension (Months)	4 years 6 months	4 years 6 months
Loan percentage	0.05%	0.06%
Term Extension	$ 64	$ 68

LOANS AND CREDIT QUALITY (Det_5

LOANS AND CREDIT QUALITY (Details 4) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Business/Other Assets	$ 20,535	$ 21,728
Total [Member]
Real state	4,197	4,547
Business/Other Assets	605	597
Owner-occupied commercial real estateCommercial Real Estate [Member]
Real state	3,258	3,000
Business/Other Assets		0
1-4 Family residential construction [Member]
Real state	439	440
Business/Other Assets		0
Other construction, land development and land [Member]
Real state	500	511
Business/Other Assets		0
Farmland [Member]
Real state		596
Business/Other Assets		0
Commercial & Industrial [Member]
Real state		0
Business/Other Assets	$ 605	$ 597

LOANS AND CREDIT QUALITY (Det_6

LOANS AND CREDIT QUALITY (Details 5) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Less: Unamortized net deferred loan fees, Loan Balances	$ (678,000)	$ (672,000)
Net loans held for investment loans balance individually	4,802,000	4,802,000
Net loans held for investment loans balance collectively	821,748,000	821,748,000
Net loans held for investment loans balance	825,872,000	822,092,000
Net loans held for investment allowance for Credit Losses - Loans individually	970,000	977,000
Net loans held for investment allowance for Credit Losses - Loans Collectively	7,438,000	7,344,000
Net loans held for investment allowance for Credit Losses - Loans	8,408,000	8,321,000
Owner-occupied commercial real estateCommercial Real Estate [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	1,314,000	1,221,000
Loan Individually Evaluated For Impairment	513,000	263,000
Collectively Evaluated for Impairment	801,000	958,000
Other Commercial Real Estate [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	178,000	166,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	178,000	166,000
Multi-Family [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	243,000	181,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	243,000	181,000
Home Equity - Close End [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	100,000	77,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	100,000	77,000
Agricultural loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	21,000	20,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	21,000	20,000
Automobile loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	1,459,000	1,443,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	1,459,000	1,443,000
Other consumer loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	285,000	292,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	285,000	292,000
Municipal loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	17,000	0
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	17,000	0
Other construction, land development and land [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	1,345,000	1,287,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	1,345,000	1,287,000
Farmland [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	825,000	815,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	825,000	815,000
Home Equity Open End [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	181,000	180,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	181,000	180,000
Gross Loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	8,408,000	8,321,000
Loan Individually Evaluated For Impairment	970,000	977,000
Collectively Evaluated for Impairment	7,438,000	7,344,000
1-4 Family residential construction [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	734,000	714,000
Loan Individually Evaluated For Impairment	362,000	363,000
Collectively Evaluated for Impairment	372,000	351,000
Real Estate [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	815,000	810,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	815,000	810,000
Commercial and industrial [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	807,000	1,034,000
Loan Individually Evaluated For Impairment	95,000	351,000
Collectively Evaluated for Impairment	712,000	683,000
Credit Cards [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	84,000	81,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	84,000	81,000
Loans Balances [Member] | Owner-occupied commercial real estateCommercial Real Estate [Member]
Loan Balances	88,660,000	92,362,000
Loan Individually Evaluated For Impairment	3,258,000	3,000,000
Collectively Evaluated for Impairment	85,402,000	89,362,000
Loans Balances [Member] | Other Commercial Real Estate [Member]
Loan Balances	101,237,000	106,181,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	101,237,000	106,181,000
Loans Balances [Member] | Multi-Family [Member]
Loan Balances	10,699,000	8,203,000
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	10,699,000	8,203,000
Loans Balances [Member] | Home Equity - Close End [Member]
Loan Balances	6,281,000	4,835,000
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	6,281,000	4,835,000
Loans Balances [Member] | Agricultural loans [Member]
Loan Balances	14,869,000	14,405,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	14,869,000	14,405,000
Loans Balances [Member] | Automobile loans [Member]
Loan Balances	119,785,000	122,924,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	119,785,000	122,924,000
Loans Balances [Member] | Other consumer loans [Member]
Loan Balances	13,456,000	14,376,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	13,456,000	14,376,000
Loans Balances [Member] | Municipal loans [Member]
Loan Balances	5,480,000	5,625,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	5,480,000	5,625,000
Loans Balances [Member] | Other construction, land development and land [Member]
Loan Balances	52,812,000	47,749,000
Loan Individually Evaluated For Impairment	500,000	511,000
Collectively Evaluated for Impairment	52,312,000	47,238,000
Loans Balances [Member] | Farmland [Member]
Loan Balances	82,048,000	81,657,000
Loan Individually Evaluated For Impairment	0	596,000
Collectively Evaluated for Impairment	82,048,000	81,061,000
Loans Balances [Member] | Home Equity Open End [Member]
Loan Balances	46,087,000	45,749,000
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	46,087,000	45,749,000
Loans Balances [Member] | Gross Loans [Member]
Loan Balances	826,550,000	822,764,000
Loan Individually Evaluated For Impairment	4,802,000	5,144,000
Collectively Evaluated for Impairment		817,620,000
Loans Balances [Member] | 1-4 Family residential construction [Member]
Loan Balances	32,397,000	30,488,000
Loan Individually Evaluated For Impairment	439,000	440,000
Collectively Evaluated for Impairment	31,958,000	30,048,000
Loans Balances [Member] | Real Estate [Member]
Loan Balances	202,867,000	200,629,000
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	202,867,000	200,629,000
Loans Balances [Member] | Commercial and industrial [Member]
Loan Balances	46,582,000	44,329,000
Loan Individually Evaluated For Impairment	605,000	597,000
Collectively Evaluated for Impairment	45,977,000	43,732,000
Loans Balances [Member] | Credit Cards [Member]
Loan Balances	3,290,000	3,252,000
Loan Individually Evaluated For Impairment		0
Collectively Evaluated for Impairment	$ 3,290,000	$ 3,252,000

LOANS AND CREDIT QUALITY (Det_7

LOANS AND CREDIT QUALITY (Details 6) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Less: Unamortized net deferred loan fees	$ (678,000)	$ (672,000)
Loans held for investment	825,872,000	822,092,000
Total [Member]
2024	25,871,000
2023	149,325,000	151,189,000
2022	173,379,000	179,221,000
2021	90,787,000	95,991,000
2020	64,537,000	67,041,000
2019		32,420,000
Prior	177,641,000	152,788,000
Revolving	145,010,000	144,114,000
Total	826,550,000	822,764,000
Current Period Gross Write Offs Member [Member] | Total [Member]
2024	0
2023	303,000	334,000
2022	393,000	847,000
2021	192,000	563,000
2020	86,000	152,000
2019		59,000
Prior	28,000	64,000
Revolving	9,000	69,000
Total	1,011,000	2,088,000
Current Period Gross Write Offs Member [Member] | 1-4 Family residential construction [Member]
2024	0
2023	0	0
2022	0	70,000
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	0
Total	0	70,000
Multi-Family [Member]
2024	2,153,000
2023	0	0
2022	2,694,000	2,712,000
2021	1,381,000	1,395,000
2020	896,000	906,000
2019		0
Prior	1,639,000	1,666,000
Revolving	1,936,000	1,524,000
Total	10,699,000	8,203,000
Multi-Family [Member] | Pass [Member]
2024	2,153,000
2023	0	0
2022	2,694,000	2,712,000
2021	1,381,000	1,395,000
2020	896,000	906,000
2019		0
Prior	1,544,000	1,567,000
Revolving	1,936,000	1,524,000
Total	10,604,000	8,104,000
Multi-Family [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	95,000	99,000
Revolving	0	0
Total	95,000	99,000
Multi-Family [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	0
Total	0	0
Real Estate [Member]
2024	6,855,000
2023	51,876,000	53,413,000
2022	47,372,000	47,918,000
2021	15,468,000	15,750,000
2020	12,556,000	12,691,000
2019		7,857,000
Prior	68,294,000	62,614,000
Revolving	446,000	386,000
Total	202,867,000	200,629,000
Real Estate [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	19,000
Revolving	0	0
Total	0	19,000
Real Estate [Member] | Pass [Member]
2024	6,855,000
2023	51,876,000	53,413,000
2022	47,243,000	47,785,000
2021	14,905,000	15,211,000
2020	12,059,000	12,192,000
2019		6,490,000
Prior	62,902,000	55,665,000
Revolving	446,000	386,000
Total	196,286,000	191,142,000
Real Estate [Member] | Watch [Member]
2024	0
2023	0	0
2022	44,000	45,000
2021	25,000	0
2020	497,000	499,000
2019		155,000
Prior	3,214,000	4,893,000
Revolving	0	0
Total	3,780,000	5,592,000
Real Estate [Member] | Substandard [Member]
2024	0
2023	0	0
2022	85,000	88,000
2021	538,000	539,000
2020	0	0
2019		1,212,000
Prior	2,178,000	2,056,000
Revolving	0	0
Total	2,801,000	3,895,000
Credit Cards [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	3,290,000	3,252,000
Total	3,290,000	3,252,000
Credit Cards [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	9,000	69,000
Total	9,000	69,000
Credit Cards [Member] | Pass [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	3,281,000	3,246,000
Total	3,281,000	3,246,000
Credit Cards [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	9,000	6,000
Total	9,000	6,000
Other commercial real estate [Member]
2024	1,096,000
2023	9,786,000	10,193,000
2022	29,532,000	29,317,000
2021	12,234,000	12,744,000
2020	4,921,000	4,990,000
2019		3,739,000
Prior	43,063,000	41,992,000
Revolving	605,000	3,206,000
Total	101,237,000	106,181,000
Other commercial real estate [Member] | Pass [Member]
2024	1,096,000
2023	9,786,000	10,193,000
2022	29,532,000	29,317,000
2021	12,234,000	12,744,000
2020	4,921,000	4,990,000
2019		3,739,000
Prior	33,805,000	32,666,000
Revolving	605,000	3,206,000
Total	91,979,000	96,855,000
Other commercial real estate [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	9,171,000	9,239,000
Revolving	0	0
Total	9,171,000	9,239,000
Other commercial real estate [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	87,000	87,000
Revolving	0	0
Total	87,000	87,000
Commercial and industrial [Member]
2024	612,000
2023	7,286,000	7,396,000
2022	8,827,000	9,417,000
2021	5,628,000	6,082,000
2020	1,491,000	1,716,000
2019		674,000
Prior	752,000	273,000
Revolving	21,986,000	18,771,000
Total	46,582,000	44,329,000
Commercial and industrial [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	0	0
2022	133,000	31,000
2021	47,000	0
2020	24,000	0
2019		0
Prior	0	2,000
Revolving	0	0
Total	204,000	33,000
Commercial and industrial [Member] | Pass [Member]
2024	612,000
2023	7,286,000	7,396,000
2022	8,786,000	9,373,000
2021	4,968,000	5,359,000
2020	1,491,000	1,691,000
2019		674,000
Prior	751,000	272,000
Revolving	18,776,000	17,408,000
Total	42,670,000	42,173,000
Commercial and industrial [Member] | Watch [Member]
2024	0
2023	0	0
2022	41,000	44,000
2021	47,000	91,000
2020	0	0
2019		0
Prior	0	0
Revolving	3,210,000	1,363,000
Total	3,298,000	1,498,000
Commercial and industrial [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	613,000	632,000
2020	0	25,000
2019		0
Prior	1,000	1,000
Revolving	0	0
Total	614,000	658,000
Automobile loans [Member]
2024	8,612,000
2023	50,482,000	52,748,000
2022	35,110,000	38,746,000
2021	16,962,000	19,414,000
2020	6,126,000	7,413,000
2019		2,199,000
Prior	2,493,000	2,404,000
Revolving	0	0
Total	119,785,000	122,924,000
1-4 Family residential construction [Member]
2024	268,000
2023	0	162,000
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	81,000	108,000
Revolving	32,048,000	30,218,000
Total	32,397,000	30,488,000
1-4 Family residential construction [Member] | Pass [Member]
2024	268,000
2023	0	162,000
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	81,000	108,000
Revolving	31,609,000	29,214,000
Total	31,958,000	29,484,000
1-4 Family residential construction [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	564,000
Total	0	564,000
1-4 Family residential construction [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	439,000	440,000
Total	439,000	440,000
Owner-occupied [Member]
2024	1,210,000
2023	2,785,000	2,820,000
2022	17,635,000	18,049,000
2021	17,426,000	17,775,000
2020	7,006,000	7,109,000
2019		9,909,000
Prior	34,499,000	25,581,000
Revolving	8,099,000	11,119,000
Total	88,660,000	92,362,000
Owner-occupied [Member] | Pass [Member]
2024	1,210,000
2023	2,785,000	2,820,000
2022	17,635,000	18,049,000
2021	17,426,000	17,775,000
2020	7,006,000	7,109,000
2019		3,586,000
Prior	25,008,000	22,301,000
Revolving	4,543,000	7,821,000
Total	75,613,000	79,461,000
Owner-occupied [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		40,000
Prior	771,000	2,097,000
Revolving	0	0
Total	771,000	2,137,000
Owner-occupied [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		6,283,000
Prior	8,720,000	1,183,000
Revolving	3,556,000	3,298,000
Total	12,276,000	10,764,000
Construction/Land [Member] | Pass [Member]
2024	450,000
2023	6,052,000	5,123,000
2022	9,093,000	9,138,000
2021	4,823,000	4,983,000
2020	1,805,000	1,831,000
2019		2,847,000
Prior	9,792,000	5,456,000
Revolving	19,865,000	17,770,000
Total	51,880,000	47,148,000
Construction/Land [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	65,000	67,000
Revolving	348,000	0
Total	413,000	67,000
Construction/Land [Member] | Substandard [Member]
2024	0
2023	0	511,000
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	519,000	23,000
Revolving	0	0
Total	519,000	534,000
Automobile loans [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	284,000	334,000
2022	245,000	669,000
2021	139,000	560,000
2020	62,000	149,000
2019		53,000
Prior	27,000	39,000
Revolving	0	0
Total	757,000	1,804,000
Automobile loans [Member] | Pass [Member]
2024	8,612,000
2023	50,205,000	52,471,000
2022	34,868,000	38,375,000
2021	16,858,000	19,193,000
2020	6,069,000	7,301,000
2019		2,145,000
Prior	2,447,000	2,367,000
Revolving	0	0
Total	119,059,000	121,852,000
Automobile loans [Member] | Watch [Member]
2024	0
2023	42,000	179,000
2022	180,000	323,000
2021	35,000	158,000
2020	48,000	106,000
2019		36,000
Prior	41,000	32,000
Revolving	0	0
Total	346,000	834,000
Automobile loans [Member] | Substandard [Member]
2024	0
2023	235,000	98,000
2022	62,000	48,000
2021	69,000	63,000
2020	9,000	6,000
2019		18,000
Prior	5,000	5,000
Revolving	0	0
Total	380,000	238,000
Farmland [Member]
2024	2,113,000
2023	10,407,000	7,503,000
2022	15,846,000	15,834,000
2021	13,478,000	14,021,000
2020	26,650,000	27,020,000
2019		3,290,000
Prior	10,375,000	8,105,000
Revolving	3,179,000	5,884,000
Total	82,048,000	81,657,000
Farmland [Member] | Pass [Member]
2024	2,113,000
2023	10,407,000	7,503,000
2022	15,846,000	15,834,000
2021	13,478,000	13,688,000
2020	26,650,000	27,020,000
2019		2,509,000
Prior	9,551,000	7,842,000
Revolving	3,179,000	5,869,000
Total	81,224,000	80,265,000
Farmland [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		781,000
Prior	771,000	0
Revolving	0	0
Total	771,000	781,000
Farmland [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	333,000
2020	0	0
2019		0
Prior	53,000	263,000
Revolving	0	15,000
Total	53,000	611,000
Agricultural loans [Member]
2024	1,367,000
2023	2,994,000	4,626,000
2022	2,393,000	2,596,000
2021	494,000	548,000
2020	315,000	382,000
2019		0
Prior	27,000	38,000
Revolving	7,279,000	6,215,000
Total	14,869,000	14,405,000
Agricultural loans [Member] | Pass [Member]
2024	1,367,000
2023	2,994,000	4,626,000
2022	2,393,000	2,548,000
2021	494,000	534,000
2020	284,000	340,000
2019		0
Prior	27,000	38,000
Revolving	7,129,000	6,066,000
Total	14,688,000	14,152,000
Agricultural loans [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	31,000	31,000
2019		0
Prior	0	0
Revolving	150,000	149,000
Total	181,000	180,000
Agricultural loans [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	48,000
2021	0	14,000
2020	0	11,000
2019		0
Prior	0	0
Revolving	0	0
Total	0	73,000
Other consumer loans [Member]
2024	985,000
2023	4,688,000	5,198,000
2022	4,387,000	4,994,000
2021	1,893,000	2,239,000
2020	653,000	843,000
2019		201,000
Prior	497,000	370,000
Revolving	353,000	531,000
Total	13,456,000	14,376,000
Other consumer loans [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	19,000	0
2022	15,000	77,000
2021	6,000	3,000
2020	0	3,000
2019		6,000
Prior	1,000	4,000
Revolving	0	0
Total	41,000	93,000
Other consumer loans [Member] | Pass [Member]
2024	985,000
2023	4,683,000	5,169,000
2022	4,384,000	4,983,000
2021	1,886,000	2,230,000
2020	653,000	843,000
2019		194,000
Prior	489,000	367,000
Revolving	352,000	530,000
Total	13,432,000	14,316,000
Other consumer loans [Member] | Watch [Member]
2024	0
2023	5,000	17,000
2022	3,000	4,000
2021	7,000	7,000
2020	0	0
2019		1,000
Prior	3,000	2,000
Revolving	1,000	1,000
Total	19,000	32,000
Other consumer loans [Member] | Substandard [Member]
2024	0
2023	0	12,000
2022	0	7,000
2021	0	2,000
2020	0	0
2019		6,000
Prior	5,000	1,000
Revolving	0	0
Total	5,000	28,000
Municipal loans [Member]
2024	0
2023	118,000	0
2022	0	118,000
2021	886,000	923,000
2020	1,096,000	1,096,000
2019		1,228,000
Prior	3,380,000	2,260,000
Revolving	0	0
Total	5,480,000	5,625,000
Municipal loans [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	0
Total	0	0
Municipal loans [Member] | Pass [Member]
2024	0
2023	0	0
2022	118,000	118,000
2021	886,000	923,000
2020	1,096,000	1,096,000
2019		1,228,000
Prior	3,380,000	2,260,000
Revolving	0	0
Total	5,480,000	5,625,000
Municipal loans [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	0
Total	0	0
Municipal loans [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	0
Total	0	0
Home Equity - Close End [Member]
2024	150,000
2023	2,599,000	1,126,000
2022	372,000	382,000
2021	114,000	117,000
2020	1,022,000	1,044,000
2019		476,000
Prior	2,024,000	1,690,000
Revolving	0	0
Total	6,281,000	4,835,000
Home Equity - Close End [Member] | Pass [Member]
2024	150,000
2023	2,599,000	1,126,000
2022	372,000	382,000
2021	114,000	117,000
2020	1,022,000	1,044,000
2019		464,000
Prior	2,012,000	1,690,000
Revolving	0	0
Total	6,269,000	4,823,000
Home Equity - Close End [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	0
Total	0	0
Home Equity - Close End [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		12,000
Prior	12,000	0
Revolving	0	0
Total	12,000	12,000
Home Equity Open End [Member]
2024	0
2023	370,000	370,000
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	141,000	141,000
Revolving	45,576,000	45,238,000
Total	46,087,000	45,749,000
Home Equity Open End [Member] | Pass [Member]
2024	0
2023	0	370,000
2022	370,000	0
2021	0	0
2020	0	0
2019		0
Prior	141,000	141,000
Revolving	44,370,000	44,089,000
Total	44,881,000	44,600,000
Home Equity Open End [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	845,000	883,000
Total	845,000	883,000
Home Equity Open End [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	361,000	266,000
Total	361,000	266,000
Construction/Land [Member]
2024	450,000
2023	6,052,000	5,634,000
2022	9,093,000	9,138,000
2021	4,823,000	4,983,000
2020	1,805,000	1,831,000
2019		2,847,000
Prior	10,376,000	5,546,000
Revolving	20,213,000	17,770,000
Total	$ 52,812,000	$ 47,749,000

LOANS AND CREDIT QUALITY (Det_8

LOANS AND CREDIT QUALITY (Details Narrative) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
LOANS AND CREDIT QUALITY
Loans pledged as collateral	$ 295.4	$ 289.1
Loans held for sale	1.4	1.1
Accrued interest receivable on loans held for investment	3.7	3.6
Nonaccrual loans	$ 6.2	$ 6.4

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Allowance for credit losses on loans beginning balance	$ 8,321,000	$ 7,936,000
Charge-offs	1,011,000	2,088,000
Recoveries	204,000	614,000
Provision for Loan Losses	894,000	1,082,000
Allowance for credit losses on loans ending balance	8,408,000	8,321,000
Adjustment for adoption of ASU		777,000
Agricultural loans [Member]
Allowance for credit losses on loans beginning balance	20,000	80,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	1,000	(2,000)
Allowance for credit losses on loans ending balance	21,000	20,000
Adjustment for adoption of ASU		(58,000)
Other consumer loans [Member]
Allowance for credit losses on loans beginning balance	292,000	81,000
Charge-offs	41,000	93,000
Recoveries	6,000	55,000
Provision for Loan Losses	28,000	146,000
Allowance for credit losses on loans ending balance	285,000	292,000
Adjustment for adoption of ASU		103,000
Municipal loans [Member]
Allowance for credit losses on loans beginning balance	0	0
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	17,000	0
Allowance for credit losses on loans ending balance	17,000	0
Adjustment for adoption of ASU		0
Home Equity - Close End [Member]
Allowance for credit losses on loans beginning balance	77,000	39,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	23,000	(58,000)
Allowance for credit losses on loans ending balance	100,000	77,000
Adjustment for adoption of ASU		96,000
Home Equity Open End [Member]
Allowance for credit losses on loans beginning balance	180,000	446,000
Charge-offs	0	0
Recoveries	25,000	3,000
Provision for Loan Losses	(24,000)	(80,000)
Allowance for credit losses on loans ending balance	181,000	180,000
Adjustment for adoption of ASU		(189,000)
Multi-Family [Member]
Allowance for credit losses on loans beginning balance	181,000	71,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	62,000	(72,000)
Allowance for credit losses on loans ending balance	243,000	181,000
Adjustment for adoption of ASU		182,000
1-4 Family residential construction [Member]
Allowance for credit losses on loans beginning balance	714,000	324,000
Charge-offs	0	70,000
Recoveries	0	1,000
Provision for Loan Losses	20,000	350,000
Allowance for credit losses on loans ending balance	734,000	714,000
Adjustment for adoption of ASU		109,000
Owner-occupied commercial real estate [Member]
Allowance for credit losses on loans beginning balance	1,221,000	992,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	93,000	(51,000)
Allowance for credit losses on loans ending balance	1,314,000	1,221,000
Adjustment for adoption of ASU		280,000
Other construction, land development and land [Member]
Allowance for credit losses on loans beginning balance	1,287,000	694,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	58,000	(9,000)
Allowance for credit losses on loans ending balance	13,435,000	1,287,000
Adjustment for adoption of ASU		602,000
Secured by farmland [Member]
Allowance for credit losses on loans beginning balance	815,000	571,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	10,000	(67,000)
Allowance for credit losses on loans ending balance	825,000	815,000
Adjustment for adoption of ASU		311,000
Real Estate [Member]
Allowance for credit losses on loans beginning balance	810,000	1,389,000
Charge-offs	0	19,000
Recoveries	1,000	2,000
Provision for Loan Losses	4,000	(378,000)
Allowance for credit losses on loans ending balance	815,000	810,000
Adjustment for adoption of ASU		(184,000)
Credit Cards [Member]
Allowance for credit losses on loans beginning balance	81,000	68,000
Charge-offs	9,000	69,000
Recoveries	10,000	37,000
Provision for Loan Losses	2,000	19,000
Allowance for credit losses on loans ending balance	84,000	81,000
Adjustment for adoption of ASU		26,000
Other commercial real estate [Member]
Allowance for credit losses on loans beginning balance	166,000	1,023,000
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	12,000	(275,000)
Allowance for credit losses on loans ending balance	178,000	166,000
Adjustment for adoption of ASU		(582,000)
Commercial and industrial [Member]
Allowance for credit losses on loans beginning balance	1,034,000	368,000
Charge-offs	204,000	33,000
Recoveries	27,000	2,000
Provision for Loan Losses	(50,000)	359,000
Allowance for credit losses on loans ending balance	807,000	1,034,000
Adjustment for adoption of ASU		338,000
Automobile loans [Member]
Allowance for credit losses on loans beginning balance	1,443,000	1,790,000
Charge-offs	757,000	1,804,000
Recoveries	135,000	514,000
Provision for Loan Losses	638,000	1,200,000
Allowance for credit losses on loans ending balance	$ 1,459,000	1,443,000
Adjustment for adoption of ASU		$ (257,000)

ALLOWANCE FOR CREDIT LOSSES (_2

ALLOWANCE FOR CREDIT LOSSES (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
ALLOWANCE FOR CREDIT LOSSES
Allowance for Credit Losses - Unfunded Commitments	$ 690	$ 0
Adjustment to allowance for unfunded commitments for adoption of ASU 2016-13	0	747
Recovery of credit losses - unfunded commitments	(71)	0
Allowance for Credit Losses - Unfunded Commitments	$ 619	$ 747

ALLOWANCE FOR CREDIT LOSSES (_3

ALLOWANCE FOR CREDIT LOSSES (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
ALLOWANCE FOR CREDIT LOSSES
Allowance for Credit Losses - Unfunded Commitments	$ 619	$ 690	$ 747	$ 0

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lease liabilities	$ 713
Long-Term Lease Agreements [Member]
Lease liabilities	713
Right-of-use assets	$ 689
Weighted average discount rate	3.39%
Weighted average remaining lease term	1 year 3 months 7 days
Operating lease cost	$ 52	$ 40
Total lease cost	52	40
Cash paid for amounts included in the measurement of lease liabilities	$ 58	$ 58

LEASES (Details 1)

LEASES (Details 1) $ in Thousands	Mar. 31, 2024 USD ($)
LEASES
Nine months ending December 31, 2024	$ 134
Twelve months ending December 31, 2025	125
Twelve months ending December 31, 2026	70
Twelve months ending December 31, 2027	56
Twelve months ending December 31, 2028	57
Thereafter	406
Total undiscounted cash flows	848
Discount	(135)
Lease Liabilites	$ 713

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
OTHER REAL ESTATE OWNED
Beginning balance	$ 55	$ 0
Purchase of foreclosed real estate	0	0
Loans transferred to OREO	0	0
Proceeds from sale of OREO	(76)	0
Gain on sales of OREO	21	0
Ending balance	$ 0	$ 0

SHORTTERM DEBT (Details Narrati

SHORTTERM DEBT (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Short term debt	$ 60,000,000	$ 60,000,000
Short Term Debt [Member]
Short term debt	$ 60,000,000	$ 60,000,000

LONGTERM DEBT (Details Narrativ

LONGTERM DEBT (Details Narrative) - USD ($)	1 Months Ended
	Jul. 29, 2020	Mar. 31, 2024	Dec. 31, 2023
Subordinated notes, net of issuance costs		$ 6,900,000	$ 6,900,000
2030 Notes [Member] | Accredited Investor [Member]
Principal amount	$ 7,000,000
Interest rate description	The note initially bears interest at 6.00% per annum, beginning July 29, 2020 but excluding July 31, 2025, payable semi-annually in arrears. From and including July 31, 2025 through July 30, 2030
Maturity date	Jul. 31, 2030
Interest rate	6%

MORTGAGE BANKING DERIVATIVES (D

MORTGAGE BANKING DERIVATIVES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Mortgage loan	$ 1,400
Unpaid mortgage loan	1,400
Interest Rate Lock Commitments [Member]
Fair value of these derivative instruments	$ 5	$ 22
No. of positions	35	27
Notional amount	$ 8,900	$ 7,300
Other Assets [Member]
Fair value of these derivative instruments	$ 78	$ 81
No. of positions	40	22
Notional amount	$ 10,300	$ 6,200

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Unrealized Securities Gains Losses [Member]
Beginning balance	$ (31,774,000)	$ (40,452,000)
Change in unrealized securities gains (losses), net of tax benefit	(1,010,000)	2,716,000
Ending balance	(32,784,000)	(37,736,000)
Adjustments Related to Pension Plan
Beginning balance	757,000	439,000
Change in unrealized securities gains (losses), net of tax benefit	0	0
Ending balance	757,000	439,000
Accumulated Other comprehensive Income (Loss)
Beginning balance	(31,017,000)	(40,012,000)
Change in unrealized securities gains (losses), net of tax benefit	(1,010,000)	2,716,000
Ending balance	$ (32,027,000)	$ (37,296,000)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Loans held for sale, F&M Mortgage	$ 1,385,000	$ 1,119,000
U.S Treasury securities	27,931,000	32,881,000
U. S. Government sponsored enterprises	124,750,000	124,703,000
Securities issued by States and political subdivisions in the U. S.	38,650,000	38,761,000
Mortgage-backed obligations of federal agencies	140,437,000	145,073,000
Corporate debt securities	27,256,000	27,256,000
IRLC	78,000	81,000
Forward sales commitments	5,000	22,000
Assets at Fair Value	360,492,000	369,874,000
Total fair value of liabilities		22,000
Fair Value Inputs Level 2 [Member]
Loans held for sale, F&M Mortgage	1,385,000	1,119,000
U.S Treasury securities	27,931,000	32,881,000
U. S. Government sponsored enterprises	124,750,000	124,703,000
Securities issued by States and political subdivisions in the U. S.	38,650,000	38,761,000
Mortgage-backed obligations of federal agencies	140,437,000	145,073,000
Corporate debt securities	27,256,000	27,256,000
IRLC	78,000	81,000
Forward sales commitments	5,000	22,000
Assets at Fair Value	360,492,000	369,874,000
Total fair value of liabilities		22,000
Fair Value Inputs Level 1 [Member]
Loans held for sale, F&M Mortgage	0	0
U.S Treasury securities	0	0
U. S. Government sponsored enterprises	0	0
Securities issued by States and political subdivisions in the U. S.	0	0
Mortgage-backed obligations of federal agencies	0	0
Fair Value Inputs Level 3 [Member]
Loans held for sale, F&M Mortgage	0	0
U.S Treasury securities	0	0
U. S. Government sponsored enterprises	0	0
Securities issued by States and political subdivisions in the U. S.	0	0
Mortgage-backed obligations of federal agencies	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Deta_2

FAIR VALUE MEASUREMENTS (Details 1) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
OREO	$ 3,332,000	$ 3,060,000
Collateral dependent loans with an ACL		55,000
Commercial and industrial [Member]
Collateral dependent loans with an ACL	510,000	246,000
Commercial Real Estate Portfolio Segment [Member]
Collateral dependent loans with an ACL	2,745,000	2,737,000
Fair Value Inputs Level 2 [Member]
Collateral dependent loans with an ACL	0
Fair Value Inputs Level 2 [Member] | Commercial Real Estate Portfolio Segment [Member]
Collateral dependent loans with an ACL	0
Fair Value Inputs Level 1 [Member]
Collateral dependent loans with an ACL	0	0
Fair Value Inputs Level 3 [Member]
OREO	3,332,000	3,060,000
Collateral dependent loans with an ACL		55,000
Fair Value Inputs Level 3 [Member] | Commercial and industrial [Member]
Collateral dependent loans with an ACL	510,000	246,000
Fair Value Inputs Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]
Collateral dependent loans with an ACL	2,745,000	2,737,000
1-4 family residential construction [Member]
Collateral dependent loans with an ACL	77,000	77,000
1-4 family residential construction [Member] | Fair Value Inputs Level 2 [Member]
Collateral dependent loans with an ACL	0	0
1-4 family residential construction [Member] | Fair Value Inputs Level 1 [Member]
Collateral dependent loans with an ACL	0	0
1-4 family residential construction [Member] | Fair Value Inputs Level 3 [Member]
Collateral dependent loans with an ACL	77,000	77,000
Commercial & Industrial [Member] | Fair Value Inputs Level 2 [Member]
Collateral dependent loans with an ACL	0	0
Commercial & Industrial [Member] | Fair Value Inputs Level 1 [Member]
Collateral dependent loans with an ACL	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Deta_3

FAIR VALUE MEASUREMENTS (Details 2) - Fair Value Inputs Level 3 [Member] - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Average impaired loans		44%
Collateral Dependent Loans	$ 3,332	$ 3,060
OREO		$ 55
OREO range		29%
Range impaired loans	33%
Minimum [Member]
Range impaired loans		31%
Maximum [Member]
Range impaired loans		71%

FAIR VALUE MEASUREMENTS (Deta_4

FAIR VALUE MEASUREMENTS (Details 3) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Cash and cash equivalents	$ 52,486,000	$ 23,717,000
Securities	359,024,000	368,674,000
Loans held for sale	1,385,000	1,119,000
Loans held for investment, net	796,122,000	793,440,000
Interest receivable	5,094,000	5,034,000
Bank owned life insurance	23,055,000	22,878,000
IRLC	78,000	81,000
Deposits	1,154,647,000	1,131,747,000
Short-term debt	60,000,000	60,000,000
Long-term debt	6,762,000	6,761,000
Interest payable	1,793,000	1,592,000
Forward sales commitments	5,000	22,000
Carrying Amount [Member]
Cash and cash equivalents	52,846,000	23,717,000
Securities	359,024,000	368,674,000
Loans held for sale	1,385,000	1,119,000
Loans held for investment, net	825,872,000	822,092,000
Interest receivable	5,094,000	5,034,000
Bank owned life insurance	23,055,000	22,878,000
IRLC	78,000	81,000
Deposits	1,156,343,000	1,133,236,000
Short-term debt	60,000,000	60,000,000
Long-term debt	6,943,000	6,932,000
Interest payable	1,793,000	1,592,000
Forward sales commitments	5,000	22,000
Fair Value Inputs Level 2 [Member]
Cash and cash equivalents	0	0
Securities	359,024,000	368,674,000
Loans held for sale	1,385,000	1,119,000
Loans held for investment, net	0	0
Interest receivable	5,094,000	5,034,000
Bank owned life insurance	23,055,000	22,878,000
IRLC	78,000	81,000
Deposits	1,154,647,000	1,131,747,000
Interest payable	1,793,000	1,592,000
Forward sales commitments	5,000	22,000
Fair Value Inputs Level 1 [Member]
Cash and cash equivalents	52,486,000	23,717,000
Securities	0	0
Loans held for sale	0	0
Loans held for investment, net	0	0
Interest receivable	0	0
Bank owned life insurance	0	0
Fair Value Inputs Level 3 [Member]
Cash and cash equivalents	0	0
Securities	0	0
Loans held for sale	0	0
Loans held for investment, net	796,122,000	793,440,000
Interest receivable	0	0
Bank owned life insurance	0	0
Short-term debt	60,000,000	60,000,000
Long-term debt	$ 6,762,000	$ 6,761,000

EMPLOYEE BENEFITS (Details)

EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
EMPLOYEE BENEFITS
Service cost	$ 0	$ 0
Interest cost	79	92
Expected return on plan assets	(98)	(130)
Amortization of net loss	(5)	0
Net periodic pension cost	$ (24)	$ (38)

EMPLOYEE BENEFITS (Details Narr

EMPLOYEE BENEFITS (Details Narrative) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 07, 2024
EMPLOYEE BENEFITS
Fair value shares, amount		$ 597
Stock shares		33,568
Allocation pension plan, percentage equity		25%
Unrecognized compensation cost	$ 1,000

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Total noninterest income	$ 2,391	$ 2,366
Card Services And Interchange Income Member
Total noninterest income	726	690
Service Charges on Deposits
Total noninterest income	273	225
Investment Services and Insurance Income
Total noninterest income	581	507
Title Insurance Income
Total noninterest income	303	248
Other
Total noninterest income	63	11
Noninterest Income (in-scope of Topic 606)
Total noninterest income	1,946	1,681
Noninterest Income (out-of-scope of Topic 606)
Total noninterest income	$ 445	$ 685

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event - USD ($)		3 Months Ended
	May 08, 2024	Jun. 30, 2024
Due to additional lump sum payment	$ 577,305
Recognized Gain		$ 547,345,000