F & M Bank (FMBM) 10-Q 14 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 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	Jun. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		3,519,402
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	Jun. 30, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 19,251	$ 19,790
Money market funds and interest-bearing deposits in other banks	952	178
Federal funds sold	30,256	3,749
Cash and cash equivalents	50,459	23,717
Securities Available for sale, at fair value	352,211	368,674
Other investments	3,719	5,535
Loans held for sale, at fair value	3,958	1,119
Loans held for investment, net of deferred fees and costs	826,340	822,092
Less: allowance for credit losses	(7,815)	(8,321)
Net loans held for investment	818,525	813,771
Bank premises and equipment, net	23,365	24,328
Other real estate owned	0	55
Interest receivable	5,123	5,034
Goodwill	3,082	3,082
Bank owned life insurance	23,235	22,878
Other assets	25,968	26,403
Total Assets	1,309,645	1,294,596
Deposits:
Noninterest bearing	270,246	264,254
Interest bearing	915,011	868,982
Total deposits	1,185,257	1,133,236
Short-term debt	20,000	60,000
Long-term debt	6,954	6,932
Other liabilities	15,818	16,105
Total Liabilities	1,228,029	1,216,273
Shareholders' Equity
Common stock, $5 par value, 6,000,000 shares authorized, 3,519,117 (2024) and 3,485,570 (2023) shares issued and outstanding	17,333	17,263
Additional paid in capital	11,134	11,043
Retained earnings	83,447	81,034
Accumulated other comprehensive loss	(30,298)	(31,017)
Total Shareholders' Equity	81,616	78,323
Total Liabilities and Shareholders' Equity	$ 1,309,645	$ 1,294,596

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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	3,519,117	3,485,570
Common stock, shares outstanding	3,519,117	3,485,570

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest and Dividend income
Interest and fees on loans held for investment	$ 13,494	$ 11,517	$ 26,846	$ 22,371
Interest and fees on loans held for sale	46	25	64	47
Interest from money market funds and federal funds sold	216	58	373	132
Interest and dividends on interest bearing deposits and other investments	129	102	301	191
Interest on debt securities	1,835	1,932	3,713	3,875
Total interest and dividend income	15,720	13,634	31,297	26,616
Interest expense
Interest on deposits	6,951	5,218	13,288	9,255
Interest from short-term debt	454	523	1,450	1,514
Interest from long-term debt	116	116	231	228
Total interest expense	7,521	5,857	14,969	10,997
Net interest income	8,199	7,777	16,328	15,619
(Recovery of) Provision for Credit Losses	(458)	539	366	539
Net Interest Income After (Recovery of) Provision for Credit Losses	8,657	7,238	15,962	15,080
Noninterest income
Service charges on deposit accounts	292	274	565	499
Investment services and insurance income	629	357	1,211	866
Mortgage banking income	762	526	1,150	1,058
Title insurance income	427	359	730	594
Income on bank owned life insurance	185	621	367	801
Low income housing partnership losses	(197)	(205)	(393)	(411)
Card services and interchange income	801	797	1,527	1,488
Other operating income	87	178	171	202
Total noninterest income	2,986	2,907	5,328	5,097
Noninterest expense
Salaries	3,845	5,076	7,625	9,361
Employee benefits	352	1,036	1,218	2,137
Occupancy expense	392	304	773	641
Equipment expense	356	402	679	667
FDIC insurance assessment	263	174	521	320
Other real estate owned, net			(21)	0
Marketing expense	140	281	282	510
Legal and professional fees	473	544	958	916
ATM and check card fees	223	311	515	595
Telecommunication and data processing expense	738	725	1,457	1,493
Directors' fees	126	131	229	291
Bank franchise tax	195	154	388	325
Other operating expenses	1,053	1,197	1,963	2,108
Total noninterest expense	8,156	10,335	16,587	19,364
Income (loss) before income taxes	3,487	(190)	4,703	813
Income tax expense (benefit)	471	(431)	470	(483)
Net Income	$ 3,016	$ 241	$ 4,233	$ 1,296
Per Common Share Data
Net income (basic and diluted)	$ 0.86	$ 0.07	$ 1.21	$ 0.37
Cash dividends on common stock	$ 0.26	$ 0.26	$ 0.52	$ 0.52
Weighted average common shares outstanding (basic and diluted)	3,517,122	3,478,304	3,503,790	3,470,501

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Consolidated Statements of Comprehensive Income (Unaudited)
Net Income	$ 3,016	$ 241	$ 4,233	$ 1,296
Other comprehensive income:
Unrealized holding gains on available-for sale securities	2,189	90	907	3,529
Tax effect	460	19	188	742
Unrealized holding gains, net of tax	1,729	71	719	2,787
Total other comprehensive income	1,729	71	719	2,787
Total comprehensive income	$ 4,745	$ 312	$ 4,952	$ 4,083

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	1,296	0	0	1,296	0
Cumulative effect adjustment due to the adoption of ASC 326, net of tax	(1,203)	0	0	(1,203)	0
Other comprehensive income	2,787	0	0	0	2,787
Dividends on common stock	(1,802)	0	0	(1,802)	0
Common stock issued	163	39	124	0	0
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes	28	40	(12)	0	0
Stock-based compensation expense	133	0	133	0	0
Balance, amount at Jun. 30, 2023	72,194	17,228	10,822	81,369	(37,225)
Balance, amount at Mar. 31, 2023	72,635	17,207	10,693	82,031	(37,296)
Net Income	241	0	0	241	0
Other comprehensive income	71	0	0	0	71
Dividends on common stock	(903)	0	0	(903)	0
Common stock issued	82	21	61	0	0
Stock-based compensation expense	68	0	68	0	0
Balance, amount at Jun. 30, 2023	72,194	17,228	10,822	81,369	(37,225)
Balance, amount at Dec. 31, 2023	78,323	17,263	11,043	81,034	(31,017)
Net Income	4,233	0	0	4,233	0
Other comprehensive income	719	0	0	0	719
Dividends on common stock	(1,820)	0	0	(1,820)	0
Common stock issued	102	29	73	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
Balance, amount at Jun. 30, 2024	81,616	17,333	11,134	83,447	(30,298)
Balance, amount at Mar. 31, 2024	77,734	17,318	11,097	81,346	(32,027)
Net Income	3,016	0	0	3,016	0
Other comprehensive income	1,729	0	0	0	1,729
Dividends on common stock	(915)	0	0	(915)	0
Common stock issued	52	15	37	0	0
Balance, amount at Jun. 30, 2024	$ 81,616	$ 17,333	$ 11,134	$ 83,447	$ (30,298)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net Income	$ 4,233	$ 1,296
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	755	665
Amortization of intangibles	14	15
Amortization of securities	364	390
Proceeds from loans held for sale	50,927	63,681
Loans held for sale originated	(52,750)	(61,971)
Gain on sale of loans held for sale	(1,016)	(1,218)
Provision for credit losses	366	539
Increase in interest receivable	(89)	(285)
(Increase) decrease in deferred taxes	(3)	2
Decrease in taxes payable	0	(824)
(Increase) in other assets	(147)	(3,964)
Decrease in other liabilities	(172)	(411)
Amortization of limited partnership investments	393	411
Amortization of debt issuance costs	22	21
Income from life insurance investment	(367)	(438)
(Gain) on life insurance investment	0	(363)
(Gain) on the sale of fixed assets	(11)	(36)
(Gain) on the sale of OREO	(21)	0
Stock-based compensation expense	59	133
Net cash provided by (used in) operating activities	2,557	(2,357)
Cash flows from investing activities
Proceeds from maturity of investments available for sale	10,000	3,825
Proceeds from paydowns of mortgage-backed securities	7,005	6,758
Proceeds from the redemption of restricted stock, net	1,867	964
Investment in limited partnership	(50)	(150)
Net increase in loans held for investment	(5,235)	(33,167)
Proceeds from life insurance investment	0	1,729
Proceeds from the sale of fixed assets	372	93
Proceeds from the sale of OREO	76	0
Net purchase of property and equipment	(153)	(5,267)
Net cash provided by (used in) investing activities	13,882	(25,215)
Cash flows from financing activities
Net change in deposits	52,021	53,735
Net change in short-term debt	(40,000)	(23,000)
Dividends paid in cash	(1,820)	(1,802)
Proceeds from issuance of common stock	102	191
Net cash provided by financing activities	10,303	29,124
Net increase in Cash and Cash Equivalents	26,742	1,552
Cash and cash equivalents, beginning of period	23,717	34,953
Cash and cash equivalents, end of period	50,459	36,505
Supplemental Cash Flow information:
Cash paid for: Interest	14,400	10,523
Taxes	0	360
Supplemental non-cash disclosures:
Change in unrealized loss on securities available for sale	907	3,529
Cumulative effect of the adoption of ASC 326	$ 0	$ 1,524

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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”), F&M 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. FMFS was dissolved effective April 25, 2024, and its legal existence was subsequently terminated on June 7, 2024. The operations, assets, and liabilities of FMFS were transferred to the Bank. 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 or shareholders' equity. Nature of Operations The Company, through its subsidiary Farmers & Merchants Bank, operates under a charter issued by the Commonwealth of Virginia to provide 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, through its subsidiaries, offers insurance, mortgage lending, title insurance and financial services. 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 recovery 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 June 30, 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 June 30, 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 $3.8 million at June 30, 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 expected 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. These risks are measured by market-area unemployment rates, bankruptcy rates, housing and commercial building market trends, and interest rates. Risks specific to the borrower are also evaluated, including previous repayment history, debt service ability, and current and projected loan-to-value ratios for the collateral. 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 date, 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 (the “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	6 Months Ended
	Jun. 30, 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): June 30, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U. S. Treasuries $ 30,060 $ - $ 1,943 $ 28,117 U. S. Government sponsored enterprises 128,494 - 7,655 120,839 Securities issued by States and political subdivisions of the U.S. 41,260 30 2,743 38,547 Mortgage-backed obligations of federal agencies 161,160 172 23,914 137,418 Corporate debt securities 30,550 - 3,260 27,290 Total Securities Available for Sale $ 391,524 $ 202 $ 39,515 $ 352,211 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 at June 30, 2024 and December 31, 2023. The amortized cost and fair value of securities at June 30, 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 $ 87,343 $ 85,641 Due after one year through five years 106,110 96,982 Due after five years 64,264 56,777 Due after ten years 133,807 112,811 Total $ 391,524 $ 352,211 There were no sales of available for sale securities in the first six months 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 June 30, 2024 (dollars in thousands): Less than 12 Months More than 12 Months Total June 30, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 116 $ 8 $ 28,001 $ 1,935 $ 28,117 $ 1,943 U.S. Government sponsored enterprises - - 120,839 7,655 120,839 7,655 Securities issued by States and political subdivisions of the U.S. 3,449 63 31,195 2,680 34,644 2,743 Mortgage-backed obligations of federal agencies - - 132,935 23,914 132,935 23,914 Corporate debt securities 496 4 26,794 3,256 27,290 3,260 Total $ 4,061 $ 75 $ 339,764 $ 39,440 $ 343,825 $ 39,515 Unrealized losses at June 30, 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 their 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 $206.6 million pledged to the Federal Reserve Discount Window as of June 30, 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 six months of 2024. As of June 30, 2024, other investments consisted of stock in the Federal Home Loan Bank of Atlanta (“FHLB”) (carrying basis $1.9 million), stock in the Federal Reserve Bank (carrying basis $1.1 million), and various other investments (carrying basis $719 thousand). The sale of these securities is restricted. The fair values of these securities are estimated to approximate their carrying value as of June 30, 2024. As of June 30, 2024, the Bank held investments in eleven low-income housing and historic equity partnerships (carrying basis of $4.7 million) and reported in other assets on the consolidated balance sheet. The interests in low-income housing and historic equity partnerships have limited transferability. The fair values of these investments are estimated to approximate their carrying value as of June 30, 2024. The Company was committed to invest an additional $524 thousand in three low-income housing limited partnerships on June 30, 2024. 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	6 Months Ended
	Jun. 30, 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 June 30, 2024 and December 31, 2023 (dollars in thousands): June 30, 2024 December 31, 2023 1-4 Family residential construction $ 24,478 $ 30,488 Other construction, land development and land 58,062 47,749 Secured by farmland 81,326 81,657 Home equity – open end 45,743 45,749 Real estate 207,355 200,629 Home Equity – closed end 6,405 4,835 Multifamily 11,044 8,203 Owner-occupied commercial real estate 87,282 92,362 Other commercial real estate 99,265 106,181 Agricultural loans 15,210 14,405 Commercial and industrial 52,466 44,329 Credit Cards 3,319 3,252 Automobile loans 116,770 122,924 Other consumer loans 12,952 14,376 Municipal loans 5,325 5,625 Gross loans 827,002 822,764 Unamortized net deferred loan fees (662 ) (672 ) Less allowance for credit losses 7,815 8,321 Net loans $ 818,525 $ 813,771 The table above does not include loans held for sale of $4.0 million and $1.1 million at June 30, 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 $3.8 million and $3.6 million at June 30, 2024 and December 31, 2023, respectively. For the quarter ended June 30, 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 $296.9 million and $289.1 million as of June 30, 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 As of June 30, 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 $ - $ - $ - $ 439 $ 24,039 $ 24,478 Other construction, land development and land 164 - 1 15 57,882 58,062 Secured by farmland - - - 53 81,273 81,326 Home equity – open end 153 153 - 309 45,128 45,743 Real estate 900 495 - 645 205,315 207,355 Home Equity – closed end - - - - 6,405 6,405 Multifamily - - - - 11,044 11,044 Owner-occupied commercial real estate 19 - - 4,860 82,403 87,282 Other commercial real estate - - - - 99,265 99,265 Agricultural loans - - - 150 15,060 15,210 Commercial and industrial 64 68 - 665 51,669 52,466 Credit Cards 16 9 1 - 3,293 3,319 Automobile loans 1,703 342 14 396 114,315 116,770 Other consumer loans 64 80 - 38 12,770 12,952 Municipal loans - - - - 5,325 5,325 Gross loans 3,083 1,147 16 7,570 815,186 827,002 Less: Unamortized net deferred loan fees - - - - (662 ) (662 ) Loans held for investment $ 3,083 $ 1,147 $ 16 $ 7,570 $ 814,524 $ 826,340 Age Analysis of Past Due Loans 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 $7.6 million and $6.4 million in nonaccrual loans at June 30, 2024 and December 31, 2023, respectively. There was no income recognized on nonaccrual loans during the six months ended June 30, 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). June 30, 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 15 - 15 528 - 528 Secured by farmland 53 - 53 596 - 596 Home equity – open end 309 - 309 217 - 217 Real estate 645 - 645 701 - 701 Owner-occupied commercial real estate 3,555 1,305 4,860 - 3,000 3,000 Agricultural loans 150 - 150 73 - 73 Commercial and industrial 665 - 665 25 597 622 Automobile loans 396 - 396 237 - 237 Other consumer loans 38 - 38 24 - 24 Total loans $ 5,826 $ 1,744 $ 7,570 $ 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 June 30, 2024 Term Extension Weighted Average Term Extension (in months) % of Total Loan Type Owner-occupied commercial real estate $ 24 13.0 0.02 % Automobile loans 59 4.3 0.05 % Total Term Extension $ 83 6.9 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 June 30, 2024 or December 31, 2023. As of June 30, 2024 and December 31, 2023, $18 thousand and $159 thousand in loans modified and designated as a troubled loan modification were past due. As of June 30, 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. 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 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 June 30, 2024 Real Estate Business/Other Assets 1-4 Family residential construction $ 439 $ - Owner-occupied commercial real estate 4,860 - Commercial and industrial - 605 Total loans $ 5,299 $ 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). June 30, 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 $ 24,039 $ 24,478 $ 362 $ 240 $ 602 Other construction, land development and land - 58,062 58,062 - 1,448 1,448 Secured by farmland - 81,326 81,326 - 817 817 Home equity – open end - 45,743 45,743 - 177 177 Real estate - 207,355 207,355 - 780 780 Home Equity – closed end - 6,405 6,405 - 102 102 Multifamily - 11,044 11,044 - 251 251 Owner-occupied commercial real estate 4,860 82,422 87,282 75 773 848 Other commercial real estate - 99,265 99,265 - 174 174 Agricultural loans - 15,210 15,210 - 22 22 Commercial and industrial 605 51,861 52,466 - 801 801 Credit Cards - 3,319 3,319 - 83 83 Automobile loans - 116,770 116,770 - 1,469 1,469 Other consumer loans - 12,952 12,952 - 225 225 Municipal loans - 5,325 5,325 - 16 16 Gross loans 5,904 821,098 827,002 437 7,378 7,815 Less: Unamortized net deferred loan fees - - (662 ) - - - Net loans held for investment $ 5,904 $ 821,098 $ 826,340 $ 437 $ 7,378 $ 7,815 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 June 30, 2024 (dollars in thousands): Term Loans by Year of Origination 2024 2023 2022 2021 2020 Prior Revolving Total 1-4 Family residential construction Pass $ - $ - $ - $ - $ - $ - $ 24,039 $ 24,039 Watch - - - - - - - - Substandard - - - - - - 439 439 Total 1-4 Family residential construction - - - - - - 24,478 24,478 Current period gross write-offs - - - - - - - - Other construction, land development and land Pass 1,568 7,873 8,954 4,694 1,779 9,522 22,473 56,863 Watch - - - - - - 670 670 Substandard - - - - - 529 - 529 Total Other construction, land development and land 1,568 7,873 8,954 4,694 1,779 10,051 23,143 58,062 Current period gross write-offs - - - - - - - - Secured by farmland Pass 2,802 10,321 13,932 13,270 26,263 9,276 2,890 78,754 Watch - - 1,748 - - 771 - 2,519 Substandard - - - - - 53 - 53 Total Secured by farmland 2,802 10,321 15,680 13,270 26,263 10,100 2,890 81,326 Current period gross write-offs - - - - - - - - Home equity – open end Pass - - - - - 140 44,957 45,097 Watch - - - - - - 286 286 Substandard - - - - - - 360 360 Total Home equity - open end - - - - - 140 45,603 45,743 Current period gross write-offs - - - - - - - - Real estate Pass 11,902 56,841 46,378 14,415 12,025 62,643 530 204,734 Watch - - 83 - - - - 83 Substandard - - - 534 - 2,004 - 2,538 Total Real estate 11,902 56,841 46,461 14,949 12,025 64,647 530 207,355 Current period gross write-offs - - - - - - - - Home Equity – closed end Pass 418 2,570 364 111 995 1,947 - 6,405 Watch - - - - - - - - Substandard - - - - - - - - Total Home Equity - closed end 418 2,570 364 111 995 1,947 - 6,405 Current period gross write-offs - - - - - - - - Multifamily Pass 2,145 - 2,675 1,357 886 1,611 2,370 11,044 Watch - - - - - - - - Substandard - - - - - - - - Total Multifamily 2,145 - 2,675 1,357 886 1,611 2,370 11,044 Current period gross write-offs - - - - - - - - Owner-occupied commercial real estate Pass 1,761 2,455 17,470 16,915 6,906 24,287 4,198 73,992 Watch - - - - - 767 - 767 Substandard - - - - - 8,671 3,852 12,523 Total Owner-occupied commercial real estate 1,761 2,455 17,470 16,915 6,906 33,725 8,050 87,282 Current period gross write-offs - - - - - - - - Other commercial real estate Pass 837 9,692 29,370 12,078 4,850 31,950 612 89,389 Watch 7,953 - - - - 1,836 - 9,789 Substandard - - - - - 87 - 87 Total Other commercial real estate 8,790 9,692 29,370 12,078 4,850 33,873 612 99,265 Current period gross write-offs - - - - - - - - Term Loans by Year of Origination 2024 2023 2022 2021 2020 Prior Revolving Total Agricultural loans Pass 1,946 2,545 2,185 439 248 17 7,633 15,013 Watch - - 16 - 31 - 150 197 Substandard - - - - - - - - Total Agricultural loans 1,946 2,545 2,201 439 279 17 7,783 15,210 Current period gross write-offs - - - - - - - - Commercial and industrial Pass 1,567 5,984 7,927 4,524 1,278 612 23,646 45,538 Watch - - 110 42 - - 6,036 6,188 Substandard - - 68 612 - - 60 740 Total Commercial and industrial 1,567 5,984 8,105 5,178 1,278 612 29,742 52,466 Current period gross write-offs - - 133 47 24 5 - 209 Credit Cards Pass - - - - - - 3,318 3,318 Substandard - - - - - - 1 1 Total Credit cards - - - - - - 3,319 3,319 Current period gross write-offs - - - - - - 21 21 Automobile loans Pass 17,564 45,646 31,633 14,625 4,957 1,949 - 116,374 Watch - - - - - - - - Substandard - 113 87 170 21 5 - 396 Total Automobile loans 17,564 45,759 31,720 14,795 4,978 1,954 - 116,770 Current period gross write-offs 6 556 389 176 64 32 - 1,223 Other consumer loans Pass 2,338 4,139 3,751 1,545 468 315 356 12,912 Watch - - - - - - - - Substandard - 8 7 10 12 3 - 40 Total Other consumer loans 2,338 4,147 3,758 1,555 480 318 356 12,952 Current period gross write-offs - 20 32 11 3 1 - 67 Municipal loans Pass - - 118 849 1,065 3,293 - 5,325 Watch - - - - - - - - Substandard - - - - - - - - Total Municipal loans - - 118 849 1,065 3,293 - 5,325 Current period gross write-offs - - - - - - - - Total loans $ 52,801 $ 148,187 $ 166,876 $ 86,190 $ 61,784 $ 162,288 $ 148,876 $ 827,002 Less: Unamortized net deferred loan fees (662 ) Loans held for investment $ 826,340 Current period gross write-offs $ 6 $ 576 $ 554 $ 234 $ 91 $ 38 $ 21 $ 1,520 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	6 Months Ended
	Jun. 30, 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). Beginning Balance Charge-offs Recoveries Provision for loan credit losses Ending Balance 1-4 Family residential construction $ 714 $ - $ - $ (112 ) $ 602 Other construction, land development and land 1,287 - - 161 1,448 Secured by farmland 815 - - 2 817 Home equity – open end 180 - 25 (28 ) 177 Real estate 810 - 3 (33 ) 780 Home Equity – closed end 77 - - 25 102 Multifamily 181 - - 70 251 Owner-occupied commercial real estate 1,221 - - (373 ) 848 Other commercial real estate 166 - - 8 174 Agricultural loans 20 - - 2 22 Commercial and industrial 1,034 209 42 (66 ) 801 Credit Cards 81 21 15 8 83 Automobile loans 1,443 1,223 377 872 1,469 Other consumer loans 292 67 71 (71 ) 225 Municipal loans - - - 16 16 Total loans $ 8,321 $ 1,520 $ 533 $ 481 $ 7,815 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 $575 thousand at June 30, 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 (115 ) - Balance as of June 30 $ 575 $ 747

LEASES

LEASES	6 Months Ended
	Jun. 30, 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 four operating leases for office properties. The following tables present information about the Company’s leases (dollars in thousands): June 30, 2024 Lease Liabilities $ 659 Right-of-use assets $ 628 Weighted average remaining lease term (years) 1.04 years Weighted average discount rate 3.41 % For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 23 $ 43 $ 75 $ 83 Total lease cost $ 23 $ 43 $ 75 $ 83 Cash paid for amounts included in the measurement of lease liabilities $ 30 $ 47 $ 89 $ 105 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): June 30 , 2024 Six months ending December 31, 2024 $ 80 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 $ 794 Discount (135 ) Lease liabilities $ 659

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 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 six months ended June 30, 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 June 30 $ - $ - The Company did not have any other real estate owned at June 30, 2024 or 2023.

SHORT TERM DEBT

SHORT TERM DEBT	6 Months Ended
	Jun. 30, 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 needs of the Company. There was $20.0 million and $60.0 million in short-term debt at June 30, 2024 and December 31, 2023, respectively.

LONG TERM DEBT

LONG TERM DEBT	6 Months Ended
	Jun. 30, 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 $7.0 and $6.9 million at June 30, 2024 and December 31, 2023, respectively.

MORTGAGE BANKING DERIVATIVES

MORTGAGE BANKING DERIVATIVES	6 Months Ended
	Jun. 30, 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, 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 $4.0 million as of June 30, 2024, of which $4.0 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, enters into commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed interest rate lock commitments (“IRLCs”). Such rate lock commitments on mortgage loans to be sold in the secondary market are derivatives. Upon entering into a commitment to originate a loan, the Company protects itself from changes in interest rates during the period prior to sale by requiring a firm purchase agreement from a permanent investor before a loan can be closed (forward sales commitment). The Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best-efforts basis, thus limiting interest rate risk. Certain additional risks exist if the investor fails to meet its purchase obligation; however, based on historical performance and the size and nature of the investors, the Company does not expect them to fail to meet their obligation. The Company determines the fair value of the IRLCs based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best-efforts basis while taking into consideration the probability that the loan commitments will close. The fair value of these derivative instruments is reported in Other assets in the consolidated balance sheet at June 30, 2024, and totaled $2 thousand, with a notional amount of $9.7 million and total positions of 31. 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 June 30, 2024 and 2023. The Company’s IRLCs are classified as Level 2. At June 30, 2024 and 2023, each IRLC and all LHFS were subject to a forward sales commitment on a best-efforts basis. The Company elects the fair value option 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 June 30, 2024 totaled $55 thousand, with a notional amount of $15.3 million and total positions of 49. 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	6 Months Ended
	Jun. 30, 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). For the three months ended June 30, 2024 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2024 $ (32,784 ) $ 757 $ (32,027 ) Change in unrealized securities gains, net of tax expense of $460 1,729 - 1,729 Balance at June 30, 2024 $ (31,055 ) $ 757 $ (30,298 ) For the three months ended June 30, 2023 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2023 $ (37,735 ) $ 439 $ (37,296 ) Change in unrealized securities gains, net of tax benefit of $19 71 - 71 Balance at June 30, 2023 $ (37,664 ) $ 439 $ (37,225 ) For the six months ended June 30, 2024 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 gains, net of tax benefit of $188 719 - 719 Balance at June 30, 2024 $ (31,055 ) $ 757 $ (30,298 ) For the six months ended June 30, 2023 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2022 $ (40,451 ) $ 439 $ (40,012 ) Change in unrealized securities gains, net of tax benefit of $742 2,787 - 2,787 Balance at June 30, 2023 $ (37,664 ) $ 439 $ (37,225 ) There were no reclassification adjustments reported on the consolidated statements of income during the three or six months ended June 30, 2024 or 2023.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 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): June 30, 2024 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 3,958 $ - $ 3,958 $ - U. S. Treasury securities 28,117 - 28,117 - U.S. Government sponsored enterprises 120,839 - 120,839 - Securities issued by States and political subdivisions of the US 38,547 - 38,547 - Mortgage-backed obligations of federal agencies 137,418 - 137,418 - Corporate debt securities 27,290 - 27,290 - IRLC 55 - 55 - Forward sales commitments 2 - 2 - Assets at Fair Value $ 356,226 $ - $ 356,226 $ - 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 (“OREO”) The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands): June 30, 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 1,230 - - 1,230 Total collateral-dependent loans with an ACL $ 1,307 $ - $ - $ 1,307 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): June 30, 2024 Fair Value Valuation Technique Significant Unobservable Inputs 1-4 family residential construction $ 77 Discounted appraised value Discount for marketability (25%) and selling costs (25%) Owner-occupied commercial real estate 1,230 Discounted appraised value Discount for marketability (25%) and selling costs (10%) December 31, 2023 Fair Value Valuation Technique Significant Unobservable Inputs 1-4 family residential construction $ 77 Discounted appraised value Discount for marketability (25%) and selling costs (10%) Owner-occupied commercial real estate 2,737 Discounted appraised value Discount for marketability (25%) and selling costs (8%) Commercial and industrial 246 Discounted appraised value Discount for marketability (65%) and selling costs (6%) OREO 55 Discounted appraised value Discount for marketability (60%) and selling costs (10%) June 30, 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 $ 50,459 $ 50,459 $ - $ - $ 50,459 Securities 352,211 - 352,211 - 352,211 Loans held for sale 3,958 - 3,958 - 3,958 Loans held for investment, net 826,340 - - 798,078 798,078 Interest receivable 5,123 - 5,123 - 5,123 Bank owned life insurance 23,235 - 23,235 - 23,235 IRLC 55 - 55 - 55 Forward sales commitments 2 - 2 - 2 Liabilities: Deposits $ 1,185,257 $ - $ 1,183,671 $ - $ 1,183,671 Short-term debt 20,000 - - 20,000 20,000 Long-term debt 6,954 - - 6,811 6,811 Interest payable 2,161 - 2,161 - 2,161 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	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Service cost $ - $ - $ - $ - Interest cost 79 92 158 184 Expected return on plan assets (98 ) (130 ) (196 ) (260 ) Recognized net actuarial gain (5 ) - (10 ) - Net periodic pension cost $ (24 ) $ (38 ) $ (48 ) $ (76 ) 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. In the three months ended June 30, 2024, no shares were granted or vested to employees, and they forfeited 5,755 shares. Unrecognized compensation expense related to the nonvested restricted stock as of June 30, 2024 totaled $978 thousand. In the three and six-months ended June 30, 2024, no shares were granted to directors. Shares granted to directors vest at issuance and compensation expense is recognized immediately.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 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 June 30, 2024 and 2023 consisted of the following (dollars in thousands). Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Noninterest income Service charges on deposit accounts $ 292 $ 274 $ 565 $ 499 Investment services and insurance income 629 357 1,211 866 Title insurance income 427 359 730 594 Card services and interchange income 801 797 1,527 1,488 Other 83 177 139 198 Within scope of ASC 606 2,232 1,964 4,172 3,645 Not within scope of ASC 606 754 943 1,156 1,452 Total noninterest income $ 2,986 $ 2,907 $ 5,328 $ 5,097

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	Note 14 SUBSEQUENT EVENTS On July 26, 2024, Kevin Russell, Executive Vice President of the Bank and President of Mortgage, Title and Financial Services announced his separation from the Bank by mutual agreement. The Bank agreed to provide a severance agreement of $219,390 in recognition of his service. Mr. Russell's last day of employment will be August 30, 2024.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 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”), F&M 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. FMFS was dissolved effective April 25, 2024, and its legal existence was subsequently terminated on June 7, 2024. The operations, assets, and liabilities of FMFS were transferred to the Bank. 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 or shareholders' equity.
Nature Of Operations	The Company, through its subsidiary Farmers & Merchants Bank, operates under a charter issued by the Commonwealth of Virginia to provide 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, through its subsidiaries, offers insurance, mortgage lending, title insurance and financial services.
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 recovery 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 June 30, 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 June 30, 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 $3.8 million at June 30, 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 expected 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. These risks are measured by market-area unemployment rates, bankruptcy rates, housing and commercial building market trends, and interest rates. Risks specific to the borrower are also evaluated, including previous repayment history, debt service ability, and current and projected loan-to-value ratios for the collateral. 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 date, 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 (the “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)	6 Months Ended
	Jun. 30, 2024
SECURITIES
Schedule Of Amortized Cost And Fair Value For Securities	June 30, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U. S. Treasuries $ 30,060 $ - $ 1,943 $ 28,117 U. S. Government sponsored enterprises 128,494 - 7,655 120,839 Securities issued by States and political subdivisions of the U.S. 41,260 30 2,743 38,547 Mortgage-backed obligations of federal agencies 161,160 172 23,914 137,418 Corporate debt securities 30,550 - 3,260 27,290 Total Securities Available for Sale $ 391,524 $ 202 $ 39,515 $ 352,211 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 $ 87,343 $ 85,641 Due after one year through five years 106,110 96,982 Due after five years 64,264 56,777 Due after ten years 133,807 112,811 Total $ 391,524 $ 352,211
Schedule Of Unrealized Losses	Less than 12 Months More than 12 Months Total June 30, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasuries $ 116 $ 8 $ 28,001 $ 1,935 $ 28,117 $ 1,943 U.S. Government sponsored enterprises - - 120,839 7,655 120,839 7,655 Securities issued by States and political subdivisions of the U.S. 3,449 63 31,195 2,680 34,644 2,743 Mortgage-backed obligations of federal agencies - - 132,935 23,914 132,935 23,914 Corporate debt securities 496 4 26,794 3,256 27,290 3,260 Total $ 4,061 $ 75 $ 339,764 $ 39,440 $ 343,825 $ 39,515 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)	6 Months Ended
	Jun. 30, 2024
LOANS AND CREDIT QUALITY
Schedule Of Loans Outstanding	June 30, 2024 December 31, 2023 1-4 Family residential construction $ 24,478 $ 30,488 Other construction, land development and land 58,062 47,749 Secured by farmland 81,326 81,657 Home equity – open end 45,743 45,749 Real estate 207,355 200,629 Home Equity – closed end 6,405 4,835 Multifamily 11,044 8,203 Owner-occupied commercial real estate 87,282 92,362 Other commercial real estate 99,265 106,181 Agricultural loans 15,210 14,405 Commercial and industrial 52,466 44,329 Credit Cards 3,319 3,252 Automobile loans 116,770 122,924 Other consumer loans 12,952 14,376 Municipal loans 5,325 5,625 Gross loans 827,002 822,764 Unamortized net deferred loan fees (662 ) (672 ) Less allowance for credit losses 7,815 8,321 Net loans $ 818,525 $ 813,771
Summary Of Non accrual and Past Due Loans	Age Analysis of Past Due Loans As of June 30, 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 $ - $ - $ - $ 439 $ 24,039 $ 24,478 Other construction, land development and land 164 - 1 15 57,882 58,062 Secured by farmland - - - 53 81,273 81,326 Home equity – open end 153 153 - 309 45,128 45,743 Real estate 900 495 - 645 205,315 207,355 Home Equity – closed end - - - - 6,405 6,405 Multifamily - - - - 11,044 11,044 Owner-occupied commercial real estate 19 - - 4,860 82,403 87,282 Other commercial real estate - - - - 99,265 99,265 Agricultural loans - - - 150 15,060 15,210 Commercial and industrial 64 68 - 665 51,669 52,466 Credit Cards 16 9 1 - 3,293 3,319 Automobile loans 1,703 342 14 396 114,315 116,770 Other consumer loans 64 80 - 38 12,770 12,952 Municipal loans - - - - 5,325 5,325 Gross loans 3,083 1,147 16 7,570 815,186 827,002 Less: Unamortized net deferred loan fees - - - - (662 ) (662 ) Loans held for investment $ 3,083 $ 1,147 $ 16 $ 7,570 $ 814,524 $ 826,340 Age Analysis of Past Due Loans 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	June 30, 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 15 - 15 528 - 528 Secured by farmland 53 - 53 596 - 596 Home equity – open end 309 - 309 217 - 217 Real estate 645 - 645 701 - 701 Owner-occupied commercial real estate 3,555 1,305 4,860 - 3,000 3,000 Agricultural loans 150 - 150 73 - 73 Commercial and industrial 665 - 665 25 597 622 Automobile loans 396 - 396 237 - 237 Other consumer loans 38 - 38 24 - 24 Total loans $ 5,826 $ 1,744 $ 7,570 $ 2,401 $ 4,037 $ 6,438
Schedule Of modified to borrowers experiencing	Term Extension Weighted Average Term Extension (in months) % of Total Loan Type Owner-occupied commercial real estate $ 24 13.0 0.02 % Automobile loans 59 4.3 0.05 % Total Term Extension $ 83 6.9 0.05 % 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 June 30, 2024 Real Estate Business/Other Assets 1-4 Family residential construction $ 439 $ - Owner-occupied commercial real estate 4,860 - Commercial and industrial - 605 Total loans $ 5,299 $ 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	June 30, 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 $ 24,039 $ 24,478 $ 362 $ 240 $ 602 Other construction, land development and land - 58,062 58,062 - 1,448 1,448 Secured by farmland - 81,326 81,326 - 817 817 Home equity – open end - 45,743 45,743 - 177 177 Real estate - 207,355 207,355 - 780 780 Home Equity – closed end - 6,405 6,405 - 102 102 Multifamily - 11,044 11,044 - 251 251 Owner-occupied commercial real estate 4,860 82,422 87,282 75 773 848 Other commercial real estate - 99,265 99,265 - 174 174 Agricultural loans - 15,210 15,210 - 22 22 Commercial and industrial 605 51,861 52,466 - 801 801 Credit Cards - 3,319 3,319 - 83 83 Automobile loans - 116,770 116,770 - 1,469 1,469 Other consumer loans - 12,952 12,952 - 225 225 Municipal loans - 5,325 5,325 - 16 16 Gross loans 5,904 821,098 827,002 437 7,378 7,815 Less: Unamortized net deferred loan fees - - (662 ) - - - Net loans held for investment $ 5,904 $ 821,098 $ 826,340 $ 437 $ 7,378 $ 7,815 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 $ - $ - $ - $ - $ - $ - $ 24,039 $ 24,039 Watch - - - - - - - - Substandard - - - - - - 439 439 Total 1-4 Family residential construction - - - - - - 24,478 24,478 Current period gross write-offs - - - - - - - - Other construction, land development and land Pass 1,568 7,873 8,954 4,694 1,779 9,522 22,473 56,863 Watch - - - - - - 670 670 Substandard - - - - - 529 - 529 Total Other construction, land development and land 1,568 7,873 8,954 4,694 1,779 10,051 23,143 58,062 Current period gross write-offs - - - - - - - - Secured by farmland Pass 2,802 10,321 13,932 13,270 26,263 9,276 2,890 78,754 Watch - - 1,748 - - 771 - 2,519 Substandard - - - - - 53 - 53 Total Secured by farmland 2,802 10,321 15,680 13,270 26,263 10,100 2,890 81,326 Current period gross write-offs - - - - - - - - Home equity – open end Pass - - - - - 140 44,957 45,097 Watch - - - - - - 286 286 Substandard - - - - - - 360 360 Total Home equity - open end - - - - - 140 45,603 45,743 Current period gross write-offs - - - - - - - - Real estate Pass 11,902 56,841 46,378 14,415 12,025 62,643 530 204,734 Watch - - 83 - - - - 83 Substandard - - - 534 - 2,004 - 2,538 Total Real estate 11,902 56,841 46,461 14,949 12,025 64,647 530 207,355 Current period gross write-offs - - - - - - - - Home Equity – closed end Pass 418 2,570 364 111 995 1,947 - 6,405 Watch - - - - - - - - Substandard - - - - - - - - Total Home Equity - closed end 418 2,570 364 111 995 1,947 - 6,405 Current period gross write-offs - - - - - - - - Multifamily Pass 2,145 - 2,675 1,357 886 1,611 2,370 11,044 Watch - - - - - - - - Substandard - - - - - - - - Total Multifamily 2,145 - 2,675 1,357 886 1,611 2,370 11,044 Current period gross write-offs - - - - - - - - Owner-occupied commercial real estate Pass 1,761 2,455 17,470 16,915 6,906 24,287 4,198 73,992 Watch - - - - - 767 - 767 Substandard - - - - - 8,671 3,852 12,523 Total Owner-occupied commercial real estate 1,761 2,455 17,470 16,915 6,906 33,725 8,050 87,282 Current period gross write-offs - - - - - - - - Other commercial real estate Pass 837 9,692 29,370 12,078 4,850 31,950 612 89,389 Watch 7,953 - - - - 1,836 - 9,789 Substandard - - - - - 87 - 87 Total Other commercial real estate 8,790 9,692 29,370 12,078 4,850 33,873 612 99,265 Current period gross write-offs - - - - - - - - Term Loans by Year of Origination 2024 2023 2022 2021 2020 Prior Revolving Total Agricultural loans Pass 1,946 2,545 2,185 439 248 17 7,633 15,013 Watch - - 16 - 31 - 150 197 Substandard - - - - - - - - Total Agricultural loans 1,946 2,545 2,201 439 279 17 7,783 15,210 Current period gross write-offs - - - - - - - - Commercial and industrial Pass 1,567 5,984 7,927 4,524 1,278 612 23,646 45,538 Watch - - 110 42 - - 6,036 6,188 Substandard - - 68 612 - - 60 740 Total Commercial and industrial 1,567 5,984 8,105 5,178 1,278 612 29,742 52,466 Current period gross write-offs - - 133 47 24 5 - 209 Credit Cards Pass - - - - - - 3,318 3,318 Substandard - - - - - - 1 1 Total Credit cards - - - - - - 3,319 3,319 Current period gross write-offs - - - - - - 21 21 Automobile loans Pass 17,564 45,646 31,633 14,625 4,957 1,949 - 116,374 Watch - - - - - - - - Substandard - 113 87 170 21 5 - 396 Total Automobile loans 17,564 45,759 31,720 14,795 4,978 1,954 - 116,770 Current period gross write-offs 6 556 389 176 64 32 - 1,223 Other consumer loans Pass 2,338 4,139 3,751 1,545 468 315 356 12,912 Watch - - - - - - - - Substandard - 8 7 10 12 3 - 40 Total Other consumer loans 2,338 4,147 3,758 1,555 480 318 356 12,952 Current period gross write-offs - 20 32 11 3 1 - 67 Municipal loans Pass - - 118 849 1,065 3,293 - 5,325 Watch - - - - - - - - Substandard - - - - - - - - Total Municipal loans - - 118 849 1,065 3,293 - 5,325 Current period gross write-offs - - - - - - - - Total loans $ 52,801 $ 148,187 $ 166,876 $ 86,190 $ 61,784 $ 162,288 $ 148,876 $ 827,002 Less: Unamortized net deferred loan fees (662 ) Loans held for investment $ 826,340 Current period gross write-offs $ 6 $ 576 $ 554 $ 234 $ 91 $ 38 $ 21 $ 1,520 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)	6 Months Ended
	Jun. 30, 2024
ALLOWANCE FOR CREDIT LOSSES
Schdule of allowance for loan losses	Beginning Balance Charge-offs Recoveries Provision for loan credit losses Ending Balance 1-4 Family residential construction $ 714 $ - $ - $ (112 ) $ 602 Other construction, land development and land 1,287 - - 161 1,448 Secured by farmland 815 - - 2 817 Home equity – open end 180 - 25 (28 ) 177 Real estate 810 - 3 (33 ) 780 Home Equity – closed end 77 - - 25 102 Multifamily 181 - - 70 251 Owner-occupied commercial real estate 1,221 - - (373 ) 848 Other commercial real estate 166 - - 8 174 Agricultural loans 20 - - 2 22 Commercial and industrial 1,034 209 42 (66 ) 801 Credit Cards 81 21 15 8 83 Automobile loans 1,443 1,223 377 872 1,469 Other consumer loans 292 67 71 (71 ) 225 Municipal loans - - - 16 16 Total loans $ 8,321 $ 1,520 $ 533 $ 481 $ 7,815 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 (115 ) - Balance as of June 30 $ 575 $ 747

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
LEASES
Summary of Lease	June 30, 2024 Lease Liabilities $ 659 Right-of-use assets $ 628 Weighted average remaining lease term (years) 1.04 years Weighted average discount rate 3.41 % For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 23 $ 43 $ 75 $ 83 Total lease cost $ 23 $ 43 $ 75 $ 83 Cash paid for amounts included in the measurement of lease liabilities $ 30 $ 47 $ 89 $ 105
Maturity of lease liability	June 30 , 2024 Six months ending December 31, 2024 $ 80 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 $ 794 Discount (135 ) Lease liabilities $ 659

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 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 June 30 $ - $ -

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	6 Months Ended
	Jun. 30, 2024
ACCUMULATED OTHER COMPREHENSIVE LOSS
Schedule of Accumulated other comprehensive loss	For the three months ended June 30, 2024 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2024 $ (32,784 ) $ 757 $ (32,027 ) Change in unrealized securities gains, net of tax expense of $460 1,729 - 1,729 Balance at June 30, 2024 $ (31,055 ) $ 757 $ (30,298 ) For the three months ended June 30, 2023 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at March 31, 2023 $ (37,735 ) $ 439 $ (37,296 ) Change in unrealized securities gains, net of tax benefit of $19 71 - 71 Balance at June 30, 2023 $ (37,664 ) $ 439 $ (37,225 ) For the six months ended June 30, 2024 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 gains, net of tax benefit of $188 719 - 719 Balance at June 30, 2024 $ (31,055 ) $ 757 $ (30,298 ) For the six months ended June 30, 2023 Unrealized Securities Gains (Losses) Adjustments Related to Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2022 $ (40,451 ) $ 439 $ (40,012 ) Change in unrealized securities gains, net of tax benefit of $742 2,787 - 2,787 Balance at June 30, 2023 $ (37,664 ) $ 439 $ (37,225 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables 1)	6 Months Ended
	Jun. 30, 2024
FAIR VALUE MEASUREMENTS
Fair value on a recurring basis	June 30, 2024 Total Level 1 Level 2 Level 3 Assets: Loans held for sale, F&M Mortgage $ 3,958 $ - $ 3,958 $ - U. S. Treasury securities 28,117 - 28,117 - U.S. Government sponsored enterprises 120,839 - 120,839 - Securities issued by States and political subdivisions of the US 38,547 - 38,547 - Mortgage-backed obligations of federal agencies 137,418 - 137,418 - Corporate debt securities 27,290 - 27,290 - IRLC 55 - 55 - Forward sales commitments 2 - 2 - Assets at Fair Value $ 356,226 $ - $ 356,226 $ - 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	June 30, 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 1,230 - - 1,230 Total collateral-dependent loans with an ACL $ 1,307 $ - $ - $ 1,307 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
Carrying value and estimated fair value for financial instruments	June 30, 2024 Fair Value Valuation Technique Significant Unobservable Inputs 1-4 family residential construction $ 77 Discounted appraised value Discount for marketability (25%) and selling costs (25%) Owner-occupied commercial real estate 1,230 Discounted appraised value Discount for marketability (25%) and selling costs (10%) December 31, 2023 Fair Value Valuation Technique Significant Unobservable Inputs 1-4 family residential construction $ 77 Discounted appraised value Discount for marketability (25%) and selling costs (10%) Owner-occupied commercial real estate 2,737 Discounted appraised value Discount for marketability (25%) and selling costs (8%) Commercial and industrial 246 Discounted appraised value Discount for marketability (65%) and selling costs (6%) OREO 55 Discounted appraised value Discount for marketability (60%) and selling costs (10%) June 30, 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 $ 50,459 $ 50,459 $ - $ - $ 50,459 Securities 352,211 - 352,211 - 352,211 Loans held for sale 3,958 - 3,958 - 3,958 Loans held for investment, net 826,340 - - 798,078 798,078 Interest receivable 5,123 - 5,123 - 5,123 Bank owned life insurance 23,235 - 23,235 - 23,235 IRLC 55 - 55 - 55 Forward sales commitments 2 - 2 - 2 Liabilities: Deposits $ 1,185,257 $ - $ 1,183,671 $ - $ 1,183,671 Short-term debt 20,000 - - 20,000 20,000 Long-term debt 6,954 - - 6,811 6,811 Interest payable 2,161 - 2,161 - 2,161 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)	6 Months Ended
	Jun. 30, 2024
EMPLOYEE BENEFITS
Schedule Of Employee Benefit Plan	Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Service cost $ - $ - $ - $ - Interest cost 79 92 158 184 Expected return on plan assets (98 ) (130 ) (196 ) (260 ) Recognized net actuarial gain (5 ) - (10 ) - Net periodic pension cost $ (24 ) $ (38 ) $ (48 ) $ (76 )

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jun. 30, 2024
REVENUE RECOGNITION
Summary Of Noninterest Income, Segregated By Revenue Streams	Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Noninterest income Service charges on deposit accounts $ 292 $ 274 $ 565 $ 499 Investment services and insurance income 629 357 1,211 866 Title insurance income 427 359 730 594 Card services and interchange income 801 797 1,527 1,488 Other 83 177 139 198 Within scope of ASC 606 2,232 1,964 4,172 3,645 Not within scope of ASC 606 754 943 1,156 1,452 Total noninterest income $ 2,986 $ 2,907 $ 5,328 $ 5,097

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Millions	Jun. 30, 2024 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accrued interest receivable on available for sale debt securities	$ 1.4
Accrued interest receivable related to loans	$ 3.8

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Fair value	$ 352,211	$ 368,674
Amortized Cost	391,524	408,894
Gross Unrealized gains	202	343
Gross Unrealized losses	39,515	40,563
U S Treasuries [Member]
Fair value	28,117	32,881
Amortized Cost	30,060	35,048
Gross Unrealized gains	0	0
Gross Unrealized losses	1,943	2,167
U. S. Government Sponsored Enterprises [Member]
Fair value	120,839	124,703
Amortized Cost	128,494	133,487
Gross Unrealized gains	0	0
Gross Unrealized losses	7,655	8,784
Securities issued by States and political subdivisions in the U.S. [Member]
Fair value	38,547	38,761
Amortized Cost	41,260	41,341
Gross Unrealized gains	30	145
Gross Unrealized losses	2,743	2,725
Mortgage-backed obligations of federal agencies [Member]
Fair value	137,418	145,073
Amortized Cost	161,160	168,468
Gross Unrealized gains	172	173
Gross Unrealized losses	23,914	23,568
Corporate debt security [Member]
Fair value	27,290	27,256
Amortized Cost	30,550	30,550
Gross Unrealized gains	0	25
Gross Unrealized losses	$ 3,260	$ 3,319

SECURITIES (Details 1)

SECURITIES (Details 1) - Securities Available for Sale [Member] $ in Thousands	Jun. 30, 2024 USD ($)
Due in one year or less, amortized cost	$ 87,343
Due in one year or less, fair value	85,641
Due after one year through five years, amortized cost	106,110
Due after one year through five years, fair value	96,982
Due after five years through ten years, amortized cost	64,264
Due after five years through ten years, fair value	56,777
Due after ten years, amortized cost	133,807
Due after ten years, fair value	112,811
Total, amortized cost	391,524
Total fair value	$ 352,211

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair value less than 12 months	$ 4,061	$ 2,338
Unrealized losses less than 12 months	75	282
Fair value more than 12 months	339,764	355,099
Unrealized losses more than 12 months	39,440	40,281
Fair value total	343,825	357,437
Unrealized losses total	39,515	40,563
U S Treasuries [Member]
Fair value less than 12 months	116	125
Unrealized losses less than 12 months	8	0
Fair value more than 12 months	28,001	32,756
Unrealized losses more than 12 months	1,935	2,167
Fair value total	28,117	32,881
Unrealized losses total	1,943	2,167
U. S. Government Sponsored Enterprises [Member]
Fair value less than 12 months	0	0
Unrealized losses less than 12 months	0	0
Fair value more than 12 months	120,839	124,703
Unrealized losses more than 12 months	7,655	8,784
Fair value total	120,839	124,703
Unrealized losses total	7,655	8,784
Securities issued by States and political subdivisions in the U.S. [Member]
Fair value less than 12 months	3,449	484
Unrealized losses less than 12 months	63	11
Fair value more than 12 months	31,195	32,597
Unrealized losses more than 12 months	2,680	2,714
Fair value total	34,644	33,081
Unrealized losses total	2,743	2,725
Mortgage-backed obligations of federal agencies [Member]
Fair value less than 12 months	0	0
Unrealized losses less than 12 months	0	0
Fair value more than 12 months	132,935	140,041
Unrealized losses more than 12 months	23,914	23,568
Fair value total	132,935	140,041
Unrealized losses total	23,914	23,568
Corporate debt security [Member]
Fair value less than 12 months	496	1,729
Unrealized losses less than 12 months	4	271
Fair value more than 12 months	26,794	25,002
Unrealized losses more than 12 months	3,256	3,048
Fair value total	27,290	26,731
Unrealized losses total	$ 3,260	$ 3,319

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) $ in Thousands	Jun. 30, 2024 USD ($)
SECURITIES
Market value of pledged securities to BTFP	$ 206,600
Carrying basis low income housing historic equity partnerships	4,700
Carrying Basis of Stock in FHLB	1,900
Carrying basis of various other investments	719
Additional commitment to low-income housing limited partnerships	524
Carrying Basis of stock in the Federal Reserve Bank	$ 1,100

LOANS AND CREDIT QUALITY (Detai

LOANS AND CREDIT QUALITY (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Gross loans	$ 827,002	$ 822,764
Unamortized net deferred loan fees	662	(672)
Less allowance for credit losses	7,815	8,321
Loans outstanding	818,525	813,771
Multi-Family [Member]
Loans outstanding	11,044	8,203
1-4 Family residential construction [Member]
Loans outstanding	24,478	30,488
Owner-occupied commercial real estate [Member]
Loans outstanding	87,282	92,362
Real Estate [Member]
Loans outstanding	207,355	200,629
Credit Cards [Member]
Loans outstanding	3,319	3,252
Other commercial real estate [Member]
Loans outstanding	99,265	106,181
Commercial and industrial [Member]
Loans outstanding	52,466	44,329
Automobile loans [Member]
Loans outstanding	116,770	122,924
Construction/Land Developments [Member]
Loans outstanding	58,062	47,749
Farmland [Member]
Loans outstanding	81,326	81,657
Home Equity - Open End [Member]
Loans outstanding	45,743	45,749
Home Equity - Closed End [Member]
Loans outstanding	6,405	4,835
Agricultural loans [Member]
Loans outstanding	15,210	14,405
Other consumer loans [Member]
Loans outstanding	12,952	14,376
Municipal loans [Member]
Loans outstanding	$ 5,325	$ 5,625

LOANS AND CREDIT QUALITY (Det_2

LOANS AND CREDIT QUALITY (Details 1) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Less: Deferred loan fees, net of costs, 30-59 days past due	$ 0	$ 0
Gross loans, net of costs, current	814,524,000	807,953,000
Gross loans, net of costs, 30-59 days past due	3,083,000	5,743,000
Less: Deferred loan fees, net of costs, 60-89 days past due	0	0
Gross loans, net of costs, 60-89 days past due	1,147,000	1,927,000
Less: Deferred loan fees, net of costs, greater than 90 days	0	0
Gross loans, net of costs, greater than 90 days	16,000	31,000
Less: Deferred loan fees, net of costs, non accruel loans	0	0
Gross loans, net of costs, non accruel loans	7,570,000	6,438,000
Less: Deferred loan fees, net of costs, current	662,000	672,000
Less: Deferred loan fees, net of costs, total loan receivable	662,000	672,000
Gross loans, net of costs, total loan receivable	826,340,000	822,092,000
Total [Member]
30-59 Days Past due	3,083,000	5,743,000
60-89 Days Past due	1,147,000	1,927,000
Greater than 90 Days	16,000	31,000
Non-Accrual Loans	7,570,000	6,438,000
Current	815,186,000	808,625,000
Total Loan Receivable	827,002,000	822,764,000
Multi-Family [Member]
Non-Accrual Loans	0	0
Current	11,044,000	8,203,000
Total Loan Receivable	11,044,000	8,203,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Construction/Land Development Other [Member]
Non-Accrual Loans	15,000	528,000
Current	57,882,000	47,221,000
Total Loan Receivable	58,062,000	47,749,000
30-59 Days Past Due	164,000	0
60-89 Days Past Due	0	0
Greater than 90 Days	1,000
Real Estate [Member]
Non-Accrual Loans	645,000	701,000
Current	205,315,000	197,378,000
Total Loan Receivable	207,355,000	200,629,000
30-59 Days Past Due	900,000	2,125,000
60-89 Days Past Due	495,000	425,000
Credit Cards [Member]
Non-Accrual Loans	0	0
Current	3,293,000	3,204,000
Total Loan Receivable	3,319,000	3,252,000
30-59 Days Past Due	16,000	35,000
60-89 Days Past Due	9,000	7,000
Greater than 90 Days	1,000	6,000
Other commercial real estate [Member]
Non-Accrual Loans	0	0
Current	99,265,000	105,202,000
Total Loan Receivable	99,265,000	106,181,000
30-59 Days Past Due	0	92,000
60-89 Days Past Due	0	887,000
Commercial and industrial [Member]
Non-Accrual Loans	665,000	622,000
Current	51,669,000	43,568,000
Total Loan Receivable	52,466,000	44,329,000
30-59 Days Past Due	64,000	75,000
60-89 Days Past Due	68,000	39,000
Greater than 90 Days		25,000
Automobile loans [Member]
Non-Accrual Loans	396,000	237,000
Current	114,315,000	121,069,000
Total Loan Receivable	116,770,000	122,924,000
30-59 Days Past Due	1,703,000	1,137,000
60-89 Days Past Due	342,000	481,000
Greater than 90 Days	14,000
1-4 Family residential construction [Member]
Non-Accrual Loans	439,000	440,000
Current	24,039,000	30,048,000
Total Loan Receivable	24,478,000	30,488,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Owner-occupied [Member]
Non-Accrual Loans	4,860,000	3,000,000
Current	82,403,000	87,880,000
Total Loan Receivable	87,282,000	92,362,000
30-59 Days Past Due	19,000	1,482,000
60-89 Days Past Due	0	0
Farmland [Member]
Non-Accrual Loans	53,000	596,000
Current	81,273,000	81,061,000
Total Loan Receivable	81,326,000	81,657,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Agricultural loans [Member]
Non-Accrual Loans	150,000	73,000
Current	15,060,000	14,322,000
Total Loan Receivable	15,210,000	14,405,000
30-59 Days Past Due	0	10,000
60-89 Days Past Due	0	0
Other consumer loans [Member]
Non-Accrual Loans	38,000	24,000
Current	12,770,000	14,187,000
Total Loan Receivable	12,952,000	14,376,000
30-59 Days Past Due	64,000	151,000
60-89 Days Past Due	80,000	14,000
Municipal loans [Member]
Non-Accrual Loans	0	0
Current	5,325,000	5,625,000
Total Loan Receivable	5,325,000	5,625,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Home Equity - Close End [Member]
Non-Accrual Loans	0	0
Current	6,405,000	4,794,000
Total Loan Receivable	6,405,000	4,835,000
30-59 Days Past Due	0	41,000
60-89 Days Past Due	0	0
Home Equity Open End [Member]
Non-Accrual Loans	309,000	217,000
Current	45,128,000	44,863,000
Total Loan Receivable	45,743,000	45,749,000
30-59 Days Past Due	153,000	595,000
60-89 Days Past Due	$ 153,000	$ 74,000

LOANS AND CREDIT QUALITY (Det_3

LOANS AND CREDIT QUALITY (Details 2) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other construction, land development and land [Member]
Nonaccrual loans with No Allowance	$ 15	$ 528
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	15	528
Total [Member]
Nonaccrual loans with No Allowance	5,826	2,401
Nonaccrual Loans with an Allowance	1,744	4,037
Non-Accrual Loans	7,570	6,438
Other Commercial Real Estate [Member]
Nonaccrual loans with No Allowance	3,555	0
Nonaccrual Loans with an Allowance	1,305	3,000
Non-Accrual Loans	4,860	3,000
Real Estate [Member]
Nonaccrual loans with No Allowance	645	701
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	645	701
Automobile loans [Member]
Nonaccrual loans with No Allowance	396	237
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	396	237
1-4 Family residential construction [Member]
Nonaccrual loans with No Allowance	0	0
Nonaccrual Loans with an Allowance	439	440
Non-Accrual Loans	439	440
Farmland [Member]
Nonaccrual loans with No Allowance	53	596
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	53	596
Agricultural loans [Member]
Nonaccrual loans with No Allowance	150	73
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	150	73
Home Equity Open End [Member]
Nonaccrual loans with No Allowance	309	217
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	309	217
Other consumer loans [Member]
Nonaccrual loans with No Allowance	38	24
Nonaccrual Loans with an Allowance	0	0
Non-Accrual Loans	38	24
Commercial & Industrial [Member]
Nonaccrual loans with No Allowance	665	25
Nonaccrual Loans with an Allowance	0	597
Non-Accrual Loans	$ 665	$ 622

LOANS AND CREDIT QUALITY (Det_4

LOANS AND CREDIT QUALITY (Details 3) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Total [Member]
Weighted Average TermExtension (Months)	6 months 27 days	7 months 27 days
Loan percentage	0.05%	0.05%
Term Extension	$ 83	$ 113
Automobile loans [Member]
Weighted Average TermExtension (Months)	4 months 9 days	4 months 15 days
Loan percentage	0.05%	0.06%
Term Extension	$ 59	$ 68
Commercial Real Estate [Member]
Weighted Average TermExtension (Months)	13 months	13 months
Loan percentage	0.02%	0.05%
Term Extension	$ 24	$ 45

LOANS AND CREDIT QUALITY (Det_5

LOANS AND CREDIT QUALITY (Details 4) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Business/Other Assets	$ 25,968	$ 26,403
1-4 Family residential construction [Member]
Real state	439	440
Business/Other Assets	0	0
Other construction, land development and land [Member]
Real state		511
Business/Other Assets		0
Total [Member]
Real state	5,299	4,547
Business/Other Assets	605	597
Owner-occupied commercial real estateCommercial Real Estate [Member]
Real state	4,860	3,000
Business/Other Assets	0	0
Farmland [Member]
Real state		596
Business/Other Assets		0
Commercial & Industrial [Member]
Real state	0	0
Business/Other Assets	$ 605	$ 597

LOANS AND CREDIT QUALITY (Det_6

LOANS AND CREDIT QUALITY (Details 5) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Less: Unamortized net deferred loan fees, Loan Balances	$ (662)	$ (672)
Less: Unamortized net deferred loan fees, Allowance for Credit Losses - Loans	0	0
Net loans held for investment loans balance individually	5,904	5,144
Net loans held for investment loans balance collectively	821,098	817,620
Net loans held for investment loans balance	826,340	822,092
Net loans held for investment allowance for Credit Losses - Loans individually	437	977
Net loans held for investment allowance for Credit Losses - Loans Collectively	7,378	7,344
Net loans held for investment allowance for Credit Losses - Loans	7,815	8,321
Owner-occupied commercial real estateCommercial Real Estate [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	848	1,221
Loan Individually Evaluated For Impairment	75	263
Collectively Evaluated for Impairment	773	958
Other Commercial Real Estate [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	174	166
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	174	166
Multi-Family [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	251	181
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	251	181
Other construction, land development and land [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	1,448	1,287
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	1,448	1,287
Farmland [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	817	815
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	817	815
Home Equity Open End [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	177	180
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	177	180
Home Equity - Close End [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	102	77
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	102	77
Agricultural loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	22	20
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	22	20
Automobile loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	1,469	1,443
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	1,469	1,443
Other consumer loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	225	292
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	225	292
Municipal loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	16	0
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	16	0
Gross Loans [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	7,815	8,321
Loan Individually Evaluated For Impairment	437	977
Collectively Evaluated for Impairment	7,378	7,344
1-4 Family residential construction [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	602	714
Loan Individually Evaluated For Impairment	362	363
Collectively Evaluated for Impairment	240	351
Real Estate [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	780	810
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	780	810
Commercial and industrial [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	801	1,034
Loan Individually Evaluated For Impairment	0	351
Collectively Evaluated for Impairment	801	683
Credit Cards [Member] | Allowance for Credit Losses - Loans [Member]
Allowance for Credit Losses - Loans	83	81
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	83	81
Loans Balances [Member] | Owner-occupied commercial real estateCommercial Real Estate [Member]
Loan Balances	87,282	92,362
Loan Individually Evaluated For Impairment	4,860	3,000
Collectively Evaluated for Impairment	82,422	89,362
Loans Balances [Member] | Other Commercial Real Estate [Member]
Loan Balances	99,265	106,181
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	99,265	106,181
Loans Balances [Member] | Multi-Family [Member]
Loan Balances	11,044	8,203
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	11,044	8,203
Loans Balances [Member] | Other construction, land development and land [Member]
Loan Balances	58,062	47,749
Loan Individually Evaluated For Impairment	0	511
Collectively Evaluated for Impairment	58,062	47,238
Loans Balances [Member] | Farmland [Member]
Loan Balances	81,326	81,657
Loan Individually Evaluated For Impairment	0	596
Collectively Evaluated for Impairment	81,326	81,061
Loans Balances [Member] | Home Equity Open End [Member]
Loan Balances	0	45,749
Loan Individually Evaluated For Impairment	45,743	0
Collectively Evaluated for Impairment	45,743	45,749
Loans Balances [Member] | Home Equity - Close End [Member]
Loan Balances	6,405	4,835
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	6,405	4,835
Loans Balances [Member] | Agricultural loans [Member]
Loan Balances	15,210	14,405
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	15,210	14,405
Loans Balances [Member] | Automobile loans [Member]
Loan Balances	116,770	122,924
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	116,770	122,924
Loans Balances [Member] | Other consumer loans [Member]
Loan Balances	12,952	14,376
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	12,952	14,376
Loans Balances [Member] | Municipal loans [Member]
Loan Balances	5,325	5,625
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	5,325	5,625
Loans Balances [Member] | Gross Loans [Member]
Loan Balances	827,002	822,764
Loan Individually Evaluated For Impairment	5,904	5,144
Collectively Evaluated for Impairment	821,098	817,620
Loans Balances [Member] | 1-4 Family residential construction [Member]
Loan Balances	24,478	30,488
Loan Individually Evaluated For Impairment	439	440
Collectively Evaluated for Impairment	24,039	30,048
Loans Balances [Member] | Real Estate [Member]
Loan Balances	207,355	200,629
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	207,355	200,629
Loans Balances [Member] | Commercial and industrial [Member]
Loan Balances	52,466	44,329
Loan Individually Evaluated For Impairment	605	597
Collectively Evaluated for Impairment	51,861	43,732
Loans Balances [Member] | Credit Cards [Member]
Loan Balances	3,319	3,252
Loan Individually Evaluated For Impairment	0	0
Collectively Evaluated for Impairment	$ 3,319	$ 3,252

LOANS AND CREDIT QUALITY (Det_7

LOANS AND CREDIT QUALITY (Details 6) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Less: Unamortized net deferred loan fees	$ (662)	$ (672)
Loans held for investment	826,340	822,092
Total [Member]
2024	52,801
2023	148,187	151,189
2022	166,876	179,221
2021	86,190	95,991
2020	61,784	67,041
2019		32,420
Prior	162,288	152,788
Revolving	148,876	144,114
Total	827,002	822,764
Current Period Gross Write Offs Member [Member] | Total [Member]
2024	6
2023	576	334
2022	554	847
2021	234	563
2020	91	152
2019		59
Prior	38	64
Revolving	21	69
Total	1,520	2,088
Current Period Gross Write Offs Member [Member] | 1-4 Family residential construction [Member]
2024	0
2023	0	0
2022	0	70
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	0	0
Total	0	70
Multi-Family [Member]
2024	2,145
2023	0	0
2022	2,675	2,712
2021	1,357	1,395
2020	886	906
2019		0
Prior	1,611	1,666
Revolving	2,370	1,524
Total	11,044	8,203
Multi-Family [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	99
Revolving	0	0
Total	0	99
Multi-Family [Member] | Pass [Member]
2024	2,145
2023	0	0
2022	2,675	2,712
2021	1,357	1,395
2020	886	906
2019		0
Prior	1,611	1,567
Revolving	2,370	1,524
Total	11,044	8,104
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	11,902
2023	56,841	53,413
2022	46,461	47,918
2021	14,949	15,750
2020	12,025	12,691
2019		7,857
Prior	64,647	62,614
Revolving	530	386
Total	207,355	200,629
Real Estate [Member] | Watch [Member]
2024	0
2023	0	0
2022	83	45
2021	0	0
2020	0	499
2019		155
Prior	0	4,893
Revolving	0	0
Total	83	5,592
Real Estate [Member] | Pass [Member]
2024	11,902
2023	56,841	53,413
2022	46,378	47,785
2021	14,415	15,211
2020	12,025	12,192
2019		6,490
Prior	62,643	55,665
Revolving	530	386
Total	204,734	191,142
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
Revolving	0	0
Total	0	19
Real Estate [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	88
2021	534	539
2020	0	0
2019		1,212
Prior	2,004	2,056
Revolving	0	0
Total	2,538	3,895
Credit Cards [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	0
Revolving	3,319	3,252
Total	3,319	3,252
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	3,318	3,246
Total	3,318	3,246
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	21	69
Total	21	69
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	1	6
Total	1	6
Other commercial real estate [Member]
2024	8,790
2023	9,692	10,193
2022	29,370	29,317
2021	12,078	12,744
2020	4,850	4,990
2019		3,739
Prior	33,873	41,992
Revolving	612	3,206
Total	99,265	106,181
Other commercial real estate [Member] | Watch [Member]
2024	7,953
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	1,836	9,239
Revolving	0	0
Total	9,789	9,239
Other commercial real estate [Member] | Pass [Member]
2024	837
2023	9,692	10,193
2022	29,370	29,317
2021	12,078	12,744
2020	4,850	4,990
2019		3,739
Prior	31,950	32,666
Revolving	612	3,206
Total	89,389	96,855
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	87
Revolving	0	0
Total	87	87
Commercial and industrial [Member]
2024	1,567
2023	5,984	7,396
2022	8,105	9,417
2021	5,178	6,082
2020	1,278	1,716
2019		674
Prior	612	273
Revolving	29,742	18,771
Total	52,466	44,329
Commercial and industrial [Member] | Watch [Member]
2024	0
2023	0	0
2022	110	44
2021	42	91
2020	0	0
2019		0
Prior	0	0
Revolving	6,036	1,363
Total	6,188	1,498
Commercial and industrial [Member] | Pass [Member]
2024	1,567
2023	5,984	7,396
2022	7,927	9,373
2021	4,524	5,359
2020	1,278	1,691
2019		674
Prior	612	272
Revolving	23,646	17,408
Total	45,538	42,173
Commercial and industrial [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	0	0
2022	133	31
2021	47	0
2020	24	0
2019		0
Prior	5	2
Revolving	0	0
Total	209	33
Commercial and industrial [Member] | Substandard [Member]
2024	0
2023	0	0
2022	68	0
2021	612	632
2020	0	25
2019		0
Prior	0	1
Revolving	60	0
Total	740	658
Automobile loans [Member]
2024	17,564
2023	45,759	52,748
2022	31,720	38,746
2021	14,795	19,414
2020	4,978	7,413
2019		2,199
Prior	1,954	2,404
Revolving	0	0
Total	116,770	122,924
1-4 Family residential construction [Member]
2024	0
2023	0	162
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	108
Revolving	24,478	30,218
Total	24,478	30,488
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
Total	0	564
1-4 Family residential construction [Member] | Pass [Member]
2024	0
2023	0	162
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	108
Revolving	24,039	29,214
Total	24,039	29,484
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	440
Total	439	440
Owner-occupied [Member]
2024	1,761
2023	2,455	2,820
2022	17,470	18,049
2021	16,915	17,775
2020	6,906	7,109
2019		9,909
Prior	33,725	25,581
Revolving	8,050	11,119
Total	87,282	92,362
Owner-occupied [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		40
Prior	767	2,097
Revolving	0	0
Total	767	2,137
Owner-occupied [Member] | Pass [Member]
2024	1,761
2023	2,455	2,820
2022	17,470	18,049
2021	16,915	17,775
2020	6,906	7,109
2019		3,586
Prior	24,287	22,301
Revolving	4,198	7,821
Total	73,992	79,461
Owner-occupied [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		6,283
Prior	8,671	1,183
Revolving	3,852	3,298
Total	12,523	10,764
Construction/Land [Member] | Watch [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	0	67
Revolving	670	0
Total	670	67
Construction/Land [Member] | Pass [Member]
2024	1,568
2023	7,873	5,123
2022	8,954	9,138
2021	4,694	4,983
2020	1,779	1,831
2019		2,847
Prior	9,522	5,456
Revolving	22,473	17,770
Total	56,863	47,148
Construction/Land [Member] | Substandard [Member]
2024	0
2023	0	511
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	529	23
Revolving	0	0
Total	529	534
Automobile loans [Member] | Watch [Member]
2024	0
2023	0	179
2022	0	323
2021	0	158
2020	0	106
2019		36
Prior	0	32
Revolving	0	0
Total	0	834
Automobile loans [Member] | Pass [Member]
2024	17,564
2023	45,646	52,471
2022	31,633	38,375
2021	14,625	19,193
2020	4,957	7,301
2019		2,145
Prior	1,949	2,367
Revolving	0	0
Total	116,374	121,852
Automobile loans [Member] | Current Period Gross Write Offs Member [Member]
2024	6
2023	556	334
2022	389	669
2021	176	560
2020	64	149
2019		53
Prior	32	39
Revolving	0	0
Total	1,223	1,804
Automobile loans [Member] | Substandard [Member]
2024	0
2023	113	98
2022	87	48
2021	170	63
2020	21	6
2019		18
Prior	5	5
Revolving	0	0
Total	396	238
Farmland [Member]
2024	2,802
2023	10,321	7,503
2022	15,680	15,834
2021	13,270	14,021
2020	26,263	27,020
2019		3,290
Prior	10,100	8,105
Revolving	2,890	5,884
Total	81,326	81,657
Farmland [Member] | Watch [Member]
2024	0
2023	0	0
2022	1,748	0
2021	0	0
2020	0	0
2019		781
Prior	771	0
Revolving	0	0
Total	2,519	781
Farmland [Member] | Pass [Member]
2024	2,802
2023	10,321	7,503
2022	13,932	15,834
2021	13,270	13,688
2020	26,263	27,020
2019		2,509
Prior	9,276	7,842
Revolving	2,890	5,869
Total	78,754	80,265
Farmland [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	333
2020	0	0
2019		0
Prior	53	263
Revolving	0	15
Total	53	611
Agricultural loans [Member]
2024	1,946
2023	2,545	4,626
2022	2,201	2,596
2021	439	548
2020	279	382
2019		0
Prior	17	38
Revolving	7,783	6,215
Total	15,210	14,405
Agricultural loans [Member] | Watch [Member]
2024	0
2023	0	0
2022	16	0
2021	0	0
2020	31	31
2019		0
Prior	0	0
Revolving	150	149
Total	197	180
Agricultural loans [Member] | Pass [Member]
2024	1,946
2023	2,545	4,626
2022	2,185	2,548
2021	439	534
2020	248	340
2019		0
Prior	17	38
Revolving	7,633	6,066
Total	15,013	14,152
Agricultural loans [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	48
2021	0	14
2020	0	11
2019		0
Prior	0	0
Revolving	0	0
Total	0	73
Other consumer loans [Member]
2024	2,338
2023	4,147	5,198
2022	3,758	4,994
2021	1,555	2,239
2020	480	843
2019		201
Prior	318	370
Revolving	356	531
Total	12,952	14,376
Other consumer loans [Member] | Watch [Member]
2024	0
2023	0	17
2022	0	4
2021	0	7
2020	0	0
2019		1
Prior	0	2
Revolving	0	1
Total	0	32
Other consumer loans [Member] | Pass [Member]
2024	2,338
2023	4,139	5,169
2022	3,751	4,983
2021	1,545	2,230
2020	468	843
2019		194
Prior	315	367
Revolving	356	530
Total	12,912	14,316
Other consumer loans [Member] | Current Period Gross Write Offs Member [Member]
2024	0
2023	20	0
2022	32	77
2021	11	3
2020	3	3
2019		6
Prior	1	4
Revolving	0	0
Total	67	93
Other consumer loans [Member] | Substandard [Member]
2024	0
2023	8	12
2022	7	7
2021	10	2
2020	12	0
2019		6
Prior	3	1
Revolving	0	0
Total	40	28
Municipal loans [Member]
2024	0
2023	0	0
2022	118	118
2021	849	923
2020	1,065	1,096
2019		1,228
Prior	3,293	2,260
Revolving	0	0
Total	5,325	5,625
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] | Pass [Member]
2024	0
2023	0	0
2022	118	118
2021	849	923
2020	1,065	1,096
2019		1,228
Prior	3,293	2,260
Revolving	0	0
Total	5,325	5,625
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] | 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	418
2023	2,570	1,126
2022	364	382
2021	111	117
2020	995	1,044
2019		476
Prior	1,947	1,690
Revolving	0	0
Total	6,405	4,835
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] | Pass [Member]
2024	418
2023	2,570	1,126
2022	364	382
2021	111	117
2020	995	1,044
2019		464
Prior	1,947	1,690
Revolving	0	0
Total	6,405	4,823
Home Equity - Close End [Member] | Substandard [Member]
2024	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019		12
Prior	0	0
Revolving	0	0
Total	0	12
Home Equity Open End [Member]
2024	0
2023	0	370
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	140	141
Revolving	45,603	45,238
Total	45,743	45,749
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	286	883
Total	286	883
Home Equity Open End [Member] | Pass [Member]
2024	0
2023	0	370
2022	0	0
2021	0	0
2020	0	0
2019		0
Prior	140	141
Revolving	44,957	44,089
Total	45,097	44,600
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	360	266
Total	360	266
Construction/Land [Member]
2024	1,568
2023	7,873	5,634
2022	8,954	9,138
2021	4,694	4,983
2020	1,779	1,831
2019		2,847
Prior	10,051	5,546
Revolving	23,143	17,770
Total	$ 58,062	$ 47,749

LOANS AND CREDIT QUALITY (Det_8

LOANS AND CREDIT QUALITY (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
LOANS AND CREDIT QUALITY
Troubled loan Borrower	$ 18	$ 159
Loans pledged as collateral	296,900	289,100
Loans held for sale	4,000	1,100
Accrued interest receivable on loans held for investment	3,800	3,600
Nonaccrual loans	$ 7,600	$ 6,400

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Allowance for credit losses on loans beginning balance	$ 8,321	$ 7,936
Charge-offs	1,520	2,088
Recoveries	533	614
Provision for Loan Losses	481	1,082
Allowance for credit losses on loans ending balance	7,815	8,321
Adjustment for adoption of ASU		777
Agricultural loans [Member]
Allowance for credit losses on loans beginning balance	20	80
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	2	(2)
Allowance for credit losses on loans ending balance	22	20
Adjustment for adoption of ASU		(58)
Other consumer loans [Member]
Allowance for credit losses on loans beginning balance	292	81
Charge-offs	67	93
Recoveries	71	55
Provision for Loan Losses	71	146
Allowance for credit losses on loans ending balance	225	292
Adjustment for adoption of ASU		103
Municipal loans [Member]
Allowance for credit losses on loans beginning balance	0	0
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	16	0
Allowance for credit losses on loans ending balance	16	0
Adjustment for adoption of ASU		0
Home Equity - Close End [Member]
Allowance for credit losses on loans beginning balance	77	39
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	25	(58)
Allowance for credit losses on loans ending balance	102	77
Adjustment for adoption of ASU		96
Home Equity Open End [Member]
Allowance for credit losses on loans beginning balance	180	446
Charge-offs	0	0
Recoveries	25	3
Provision for Loan Losses	(28)	(80)
Allowance for credit losses on loans ending balance	177	180
Adjustment for adoption of ASU		(189)
Multi-Family [Member]
Allowance for credit losses on loans beginning balance	181	71
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	70	(72)
Allowance for credit losses on loans ending balance	251	181
Adjustment for adoption of ASU		182
1-4 Family residential construction [Member]
Allowance for credit losses on loans beginning balance	714	324
Charge-offs	0	70
Recoveries	0	1
Provision for Loan Losses	112	350
Allowance for credit losses on loans ending balance	602	714
Adjustment for adoption of ASU		109
Owner-occupied commercial real estate [Member]
Allowance for credit losses on loans beginning balance	1,221	992
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	373	(51)
Allowance for credit losses on loans ending balance	848	1,221
Adjustment for adoption of ASU		280
Other construction, land development and land [Member]
Allowance for credit losses on loans beginning balance	1,287	694
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	161	(9)
Allowance for credit losses on loans ending balance	1,448	1,287
Adjustment for adoption of ASU		602
Secured by farmland [Member]
Allowance for credit losses on loans beginning balance	815	571
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	2	(67)
Allowance for credit losses on loans ending balance	817	815
Adjustment for adoption of ASU		311
Real Estate [Member]
Allowance for credit losses on loans beginning balance	810	1,389
Charge-offs	0	19
Recoveries	3	2
Provision for Loan Losses	33	(378)
Allowance for credit losses on loans ending balance	780	810
Adjustment for adoption of ASU		(184)
Credit Cards [Member]
Allowance for credit losses on loans beginning balance	81	68
Charge-offs	21	69
Recoveries	15	37
Provision for Loan Losses	8	19
Allowance for credit losses on loans ending balance	83	81
Adjustment for adoption of ASU		26
Other commercial real estate [Member]
Allowance for credit losses on loans beginning balance	166	1,023
Charge-offs	0	0
Recoveries	0	0
Provision for Loan Losses	8	(275)
Allowance for credit losses on loans ending balance	174	166
Adjustment for adoption of ASU		(582)
Commercial and industrial [Member]
Allowance for credit losses on loans beginning balance	1,034	368
Charge-offs	209	33
Recoveries	42	2
Provision for Loan Losses	(66)	359
Allowance for credit losses on loans ending balance	801	1,034
Adjustment for adoption of ASU		338
Automobile loans [Member]
Allowance for credit losses on loans beginning balance	1,443	1,790
Charge-offs	1,223	1,804
Recoveries	377	514
Provision for Loan Losses	872	1,200
Allowance for credit losses on loans ending balance	$ 1,469	1,443
Adjustment for adoption of ASU		$ (257)

ALLOWANCE FOR CREDIT LOSSES (_2

ALLOWANCE FOR CREDIT LOSSES (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 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	(115)	0
Allowance for Credit Losses - Unfunded Commitments	$ 575	$ 747

ALLOWANCE FOR CREDIT LOSSES (_3

ALLOWANCE FOR CREDIT LOSSES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
ALLOWANCE FOR CREDIT LOSSES
Allowance for Credit Losses - Unfunded Commitments	$ 575	$ 690	$ 747	$ 0

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease liabilities	$ 659		$ 659
Long-Term Lease Agreements [Member]
Lease liabilities	659		659
Right-of-use assets	$ 628		$ 628
Weighted average discount rate	3.41%		3.41%
Weighted average remaining lease term			1 year 14 days
Operating lease cost	$ 23	$ 43	$ 75	$ 83
Total lease cost	23	43	75	83
Cash paid for amounts included in the measurement of lease liabilities	$ 30	$ 47	$ 89	$ 105

LEASES (Details 1)

LEASES (Details 1) $ in Thousands	Jun. 30, 2024 USD ($)
LEASES
Nine months ending December 31, 2024	$ 80
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	794
Discount	(135)
Lease Liabilites	$ 659

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 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 ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Short term debt	$ 20,000	$ 60,000
Short Term Debt [Member]
Short term debt	$ 20,000	$ 60,000

LONGTERM DEBT (Details Narrativ

LONGTERM DEBT (Details Narrative) - USD ($) $ in Millions	1 Months Ended
	Jul. 29, 2020	Jun. 30, 2024	Dec. 31, 2023
Subordinated notes, net of issuance costs		$ 7	$ 6.9
2030 Notes [Member] | Accredited Investor [Member]
Principal amount	$ 7
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	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Mortgage loan	$ 4,000
Unpaid mortgage loan	4,000
Interest Rate Lock Commitments [Member]
Fair value of these derivative instruments	$ 55	$ 22
No. of positions	49	27
Notional amount	$ 15,300	$ 7,300
Other Assets [Member]
Fair value of these derivative instruments	$ 2	$ 81
No. of positions	31	22
Notional amount	$ 9,700	$ 6,200

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Unrealized Securities Gains Losses [Member]
Beginning balance	$ (32,784)	$ (37,735)	$ (31,774)	$ (40,451)
Change in unrealized securities gains (losses), net of tax benefit	1,729	71	(719)	2,787
Ending balance	(31,055)	(37,664)	(31,055)	(37,664)
Adjustments Related to Pension Plan [Member]
Beginning balance	757	439	757	439
Change in unrealized securities gains (losses), net of tax benefit	0	0	0	0
Ending balance	757	439	757	439
Accumulated Other comprehensive Income (Loss) [Member]
Beginning balance	(32,027)	(37,296)	(31,017)	(40,012)
Change in unrealized securities gains (losses), net of tax benefit	1,729	71	(719)	2,787
Ending balance	$ (30,298)	$ (37,225)	$ (30,298)	$ (37,225)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Loans held for sale, F&M Mortgage	$ 3,958	$ 1,119
U.S Treasury securities	28,117	32,881
U. S. Government sponsored enterprises	120,839	124,703
Securities issued by States and political subdivisions in the U. S.	38,547	38,761
Mortgage-backed obligations of federal agencies	137,418	145,073
Corporate debt securities	27,290	27,256
IRLC	55	81
Forward sales commitments	2	22
Assets at Fair Value	356,226	369,874
Total fair value of liabilities		22
Fair Value Inputs Level 2 [Member]
Loans held for sale, F&M Mortgage	3,958	1,119
U.S Treasury securities	28,117	32,881
U. S. Government sponsored enterprises	120,839	124,703
Securities issued by States and political subdivisions in the U. S.	38,547	38,761
Mortgage-backed obligations of federal agencies	137,418	145,073
Corporate debt securities	27,290	27,256
IRLC	55	81
Forward sales commitments	2	22
Assets at Fair Value	356,226	369,874
Total fair value of liabilities		22
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
Corporate debt securities	0	0
IRLC	0	0
Forward sales commitments	0	0
Assets at Fair Value	0	0
Total fair value of liabilities		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
Corporate debt securities	0	0
IRLC	0	0
Forward sales commitments	0	0
Assets at Fair Value	$ 0	0
Total fair value of liabilities		$ 0

FAIR VALUE MEASUREMENTS (Deta_2

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
OREO		$ 55
Collateral dependent loans with an ACL	$ 1,307	3,060
Commercial and industrial [Member]
Collateral dependent loans with an ACL		246
Fair Value Inputs Level 2 [Member]
OREO		0
Collateral dependent loans with an ACL	0	0
Fair Value Inputs Level 1 [Member]
OREO		0
Collateral dependent loans with an ACL	0	0
Fair Value Inputs Level 3 [Member]
OREO		55
Collateral dependent loans with an ACL	1,307	3,060
Fair Value Inputs Level 3 [Member] | Commercial and industrial [Member]
Collateral dependent loans with an ACL		246
1-4 family residential construction [Member]
Collateral dependent loans with an ACL	77	77
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	77
Commercial & Industrial [Member] | Fair Value Inputs Level 2 [Member]
Collateral dependent loans with an ACL		0
Commercial & Industrial [Member] | Fair Value Inputs Level 1 [Member]
Collateral dependent loans with an ACL		0
Commercial Real Estate Portfolio Segment [Member]
Collateral dependent loans with an ACL	1,230	2,737
Commercial Real Estate Portfolio Segment [Member] | Fair Value Inputs Level 2 [Member]
Collateral dependent loans with an ACL	0	0
Commercial Real Estate Portfolio Segment [Member] | Fair Value Inputs Level 1 [Member]
Collateral dependent loans with an ACL	0	0
Commercial Real Estate Portfolio Segment [Member] | Fair Value Inputs Level 3 [Member]
Collateral dependent loans with an ACL	$ 1,230	$ 2,737

FAIR VALUE MEASUREMENTS (Deta_3

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Owner-occupied [Member]
Discount for marketability	25%	25%
Selling Costs	10%	8%
Collateral Dependent Loans	$ 1,230	$ 2,737
Commercial & Industrial [Member]
Discount for marketability		65%
Selling Costs		6%
Collateral Dependent Loans		$ 246
1-4 family residential construction [Member]
Discount for marketability	25%	25%
Selling Costs	25%	10%
Collateral Dependent Loans	$ 77	$ 77
OREO [Member]
Discount for marketability		60%
Selling Costs		10%
Collateral Dependent Loans		$ 55

FAIR VALUE MEASUREMENTS (Deta_4

FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Cash and cash equivalents	$ 50,459	$ 23,717
Securities	352,211	368,674
Loans held for sale	3,958	1,119
Loans held for investment, net	798,078	793,440
Interest receivable	5,123	5,034
Bank owned life insurance	23,235	22,878
IRLC	55	81
Deposits	1,183,671	1,131,747
Short-term debt	20,000	60,000
Long-term debt	6,811	6,761
Interest payable	2,161	1,592
Forward sales commitments	2	22
Carrying Amount [Member]
Cash and cash equivalents	50,459	23,717
Securities	352,211	368,674
Loans held for sale	3,958	1,119
Loans held for investment, net	826,340	822,092
Interest receivable	5,123	5,034
Bank owned life insurance	23,235	22,878
IRLC	55	81
Deposits	1,185,257	1,133,236
Short-term debt	20,000	60,000
Long-term debt	6,954	6,932
Interest payable	2,161	1,592
Forward sales commitments	2	22
Fair Value Inputs Level 2 [Member]
Cash and cash equivalents	0	0
Securities	352,211	368,674
Loans held for sale	3,958	1,119
Loans held for investment, net	0	0
Interest receivable	5,123	5,034
Bank owned life insurance	23,235	22,878
IRLC	55	81
Deposits	1,183,671	1,131,747
Short-term debt	0	0
Long-term debt	0	0
Interest payable	2,161	1,592
Forward sales commitments	2	22
Fair Value Inputs Level 1 [Member]
Cash and cash equivalents	50,459	23,717
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
IRLC	0	0
Deposits	0	0
Short-term debt	0	0
Long-term debt	0	0
Interest payable	0	0
Forward sales commitments	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	798,078	793,440
Interest receivable	0	0
Bank owned life insurance	0	0
IRLC	0	0
Deposits	0	0
Short-term debt	20,000	60,000
Long-term debt	6,811	6,761
Interest payable	0	0
Forward sales commitments	$ 0	$ 0

EMPLOYEE BENEFITS (Details)

EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
EMPLOYEE BENEFITS
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	79	92	158	184
Expected return on plan assets	(98)	(130)	(196)	(260)
Amortization of net loss	(5)	0	(10)	0
Net periodic pension cost	$ (24)	$ (38)	$ (48)	$ (76)

EMPLOYEE BENEFITS (Details Narr

EMPLOYEE BENEFITS (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Mar. 07, 2024
EMPLOYEE BENEFITS
Fair value shares, amount		$ 597
Stock shares		33,568,000
Allocation pension plan, percentage equity		25%
Unrecognized compensation cost	$ 978
Shares forefeited	5,755

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total noninterest income	$ 2,986	$ 2,907	$ 5,328	$ 5,097
Card Services And Interchange Income [Member]
Total noninterest income	801	797	1,527	1,488
Service Charges on Deposits [Member]
Total noninterest income	292	274	565	499
Investment Services and Insurance Income [Member]
Total noninterest income	629	357	1,211	866
Title Insurance Income [Member]
Total noninterest income	427	359	730	594
Other [Member]
Total noninterest income	83	177	139	198
Noninterest Income (in-scope of Topic 606) [Member]
Total noninterest income	2,232	1,964	4,172	3,645
Noninterest Income (out-of-scope of Topic 606) [Member]
Total noninterest income	$ 754	$ 943	$ 1,156	$ 1,452

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	1 Months Ended
	Jul. 26, 2024 USD ($)
Subsequent event [Member] | Executive Vice President [Member]
Recognition of service	$ 219,390