BANK PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

BANK PREMISES AND EQUIPMENT

NOTE 9 BANK PREMISES AND EQUIPMENT

Depreciation expense for 2021 and 2020 was $2.1 million and $2.2 million, respectively. Bank premises and equipment at December 31, 2021 and 2020 are summarized as follows:

(Dollars are in thousands)	2021			2020
Land	$	7,424		$	7,796
Buildings and improvements		16,252			16,227
Furniture and equipment		14,139			16,253
Construction in progress		—			1,025
		37,815			43,008
Less accumulated depreciation		(17,080	)		(18,726	)
Bank Premises and Equipment	$	20,735		$	22,174

During the year ended December 31, 2021, the Bank sold four former branch locations, with net book values of approximately $1.1 million, resulting in approximately $173 thousand of net gains on sales.

Also, during 2021, the Bank transferred three other former branch locations, with net book values totaling approximately $2.0 million, to other real estate owned, resulting in an increase to OREO of $950 thousand, and disposal and valuation costs of approximately $1.1 million. Subsequently, in December 2021, these OREO properties were written down to $912 thousand. Equipment with a combined net book value of $188 thousand were written off in 2021.

One new branch office, in Bristol, Virginia, was opened in 2021, resulting in an increase of $2.7 million in premises and equipment. During 2020, the Bank opened a new branch office in Kingsport, Tennessee, and a loan production office in Boone, North Carolina.

As presented in Note 17 Leasing Activities, during 2021, the Bank repurchased the branch office located in Lebanon, Virginia, which had previously been sold and leased back.