Item 2. Properties
Item
2. Properties
At
December 31, 2021, the Company's net investment in premises and equipment was $20.7 million. Our main office and operations center are
in Honaker, Virginia, which includes a full-service branch, and a separate administration and operations center.
The
Bank owns 14 of its 18 full-service branch offices, including its headquarters office, plus its one limited-service branch. In addition
to the headquarters in Honaker, Virginia we own or lease branch offices located in Virginia, West Virginia, Tennessee, and a loan production
office in North Carolina. Additionally, the Bank owns two operations buildings, one housing its network operations and another that serves
as our call center and ITM network operations center. The facility housing ITM network operations was closed on December 31, 2021, and
those operations were transferred to our Abingdon, Virginia branch. We also own a warehouse facility in Honaker, Virginia. Our loan production
office operates from a building in Boone, North Carolina under a short-term lease executed in November 2020.
A
former branch office located in Jonesborough, Tennessee is being used as a hub for meeting with prospective loan customers.
During
2021, two branch locations were closed, Weber City, Virginia and Pound, Virginia, with customer accounts transferred to nearby offices.
The renovation of the Bristol – W. State Street office was completed in 2021 and the office opened during the fourth quarter of
2021. Four former branch offices, Weber City, Virginia, Bristol, Virginia, Dungannon, Virginia, and Kingsport, Tennessee were sold in
2021. Three other former branch offices located in Pound, Virginia, Jonesville, Virginia and Bluewell, West Virginia, were transferred
to other real estate owned in September 2021.
We
continue to assess our branch network as we look to improve the efficiency of our branch operations while seeking to increase market
share.
We
believe that all of our properties are maintained in good operating condition and are suitable and adequate for our operational needs.
16
Item
3. Legal Proceedings
In
the normal course of operations, we may become a party to legal proceedings, as discussed in Note 20 Legal Contingencies to the consolidated
financial statements contained in Item 8 of this form 10-K.
Item
4. Mine Safety Disclosures
Not
applicable.
PART
II
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