Item 2. Properties
Item
2. Properties
As
of December 31, 2022, the Company's net investment in premises and equipment was $19.3 million. Our main office and operations center
are in Honaker, Virginia, which includes a full-service branch, and a separate administration and operations center.
14
The
Bank owns 13 of its 17 full-service branch offices, including its headquarters office. 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 an operations building housing its network and other support operations. The bank owns two former branch offices that were
closed in 2022, and the facility that formerly housed ITM network and call center operations, that was closed in 2021. The former ITM
network and call center facility was sold in March, 2023. 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 renewed in June 2022.
A
former branch office located in Jonesborough, Tennessee is used as a hub for meeting with prospective loan customers.
During
2022, two branch locations were closed, Big Stone Gap, Virginia and Chilhowie, Virginia, with customer accounts transferred to nearby
offices. ITM services remain available at these two locations. Three former branch offices that were transferred to other real estate
owned in 2021, were sold in 2022.
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.
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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