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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Cash Flows from Operating Activities          
Net income $ 4,454 $ 2,398 $ 12,018 $ 8,176  
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization of premises and equipment     1,118 1,005  
Amortization of core deposit intangibles     14 24  
Amortization of debt issuance costs     2 2  
Origination of mortgage loans held for sale     0 (1,586)  
Proceeds from sale of mortgage loans held for sale     0 1,856  
Net gains on sales of mortgage loans held for sale 0 0 0 (25)  
Provision for (recovery of) loan losses     600 (1,000) $ (650)
Fair value adjustments on other real estate owned     0 139  
Net gains on securities available for sale 0 0 0 (37)  
Net losses (gains) on sale of other real estate owned     33 (8)  
Increase in cash value of bank owned life insurance     (441) (374)  
Accretion of discounts and amortization of premiums on securities, net     891 725  
Accretion of premium on time deposits     (159) (101)  
Accretion of certain acquisition-related loan discounts, net     (1,013) 0  
Stock-based compensation     728 300  
Excess tax benefits on stock-based compensation     3 3  
Losses (gains) on disposal of premises and equipment, net     4 (26)  
Deferred income tax expense (benefit)     46 (1,750)  
Changes in assets and liabilities:          
(Increase) decrease in interest receivable     (344) 453  
Decrease in other assets     3,513 2,938  
(Decrease) increase in accrued interest payable and other liabilities     (176) 1,625  
Net cash provided by operating activities     16,837 12,339  
Cash Flows from Investing Activities          
Proceeds from maturities, calls, principal payments, and sales of securities available for sale     21,556 43,247  
Proceeds from maturities, calls, and principal payments of securities held to maturity     7,086 4,120  
Purchases of securities available for sale     (21,147) (160,864)  
Net increase in federal funds sold     0 (80,589)  
Purchases of securities held to maturity     (54,038) 0  
Net (purchase) redemption of restricted securities     (95) 245  
Purchase of premises and equipment     (596) (622)  
Cash value of bank owned life insurance released     360 0  
Proceeds from sale of premises and equipment     0 32  
Proceeds from sale of other real estate owned     421 288  
Net (increase) in loans     (80,401) (14)  
Net cash used in investing activities     (126,854) (156,587)  
Cash Flows from Financing Activities          
Net increase in demand deposits and savings accounts     29,090 137,352  
Net decrease in time deposits     (11,637) (3,923)  
Repayment of subordinated debt     (5,000) 0  
Cash dividends paid on common stock, net of reinvestment     (2,474) (1,798)  
Net cash provided by financing activities     9,796 131,592  
(Decrease) in cash and cash equivalents     (100,221) (12,656)  
Cash and Cash Equivalents          
Beginning     176,006 127,297 127,297
Ending $ 75,785 $ 114,641 75,785 114,641 $ 176,006
Supplemental Disclosures of Cash Flow Information          
Interest     2,285 1,728  
Income taxes     2,265 1,674  
Supplemental Disclosures of Noncash Investing and Financing Activities          
Unrealized (losses) on securities available for sale     (29,649) (2,733)  
Unrealized losses on securities transferred from available for sale to held to maturity     (7,641) 0  
Fair value of securities transferred from available for sale to held to maturity     74,416 0  
Change in fair value of cash flow hedges     1,782 559  
Transfer from premises and equipment to other real estate owned, net     (184) 0  
Transfer from loans to other real estate owned     0 130  
Issuance of common stock, dividend reinvestment plan     152 115  
Smartbank [Member]          
Cash Flows from Investing Activities          
Net cash paid in acquisition     0 (1,793)  
The Bank of Fincastle [Member]          
Cash Flows from Investing Activities          
Net cash paid in acquisition     0 39,363  
First National Corporation 2014 Stock Incentive Plan [Member]          
Cash Flows from Financing Activities          
Repurchase of common stock     $ (183) $ (39)