Exhibit 99.1

January 27, 2021

Earnings Report – December 31, 2020

Record Assets

Dear Shareholders:

We are pleased to announce record assets for your company.  Total assets were $1.2 billion as of December 31, 2020 compared to $1.1 billion as of December 31, 2019.  Year-to-date net income was $11.7 million for the period ending December 31, 2020 compared to $13.2 million for the period ending December 31, 2019.  Year-to-date diluted earnings per share was $1.97 and $2.21, for December 31, 2020 and 2019, respectively.

The change in year-to-date net income from prior year was impacted by the following factors:  a decrease in net interest income primarily due to lower interest rates, higher provision for loan loss expense due to qualitative factors for COVID-19 and one specifically reserved loan, higher non-interest income lifted by gains on secondary market loan sales, and an increase in non-interest expense driven by compensation expense.  The increase in the balance sheet was due to higher investment securities and higher loans which were led by Paycheck Protection Program (“PPP”) loans.  The increase in securities and loans were funded by higher deposits.

As we look back on 2020, we have accomplished a great deal.  We opened two new branches in Lexington, navigated untold challenges due to COVID, and managed to support our small business customers through PPP loans and loan deferrals, all while continuing to provide Premier Customer Service.  As we look forward to 2021 and beyond, we believe we are incredibly well positioned for continued growth.  

As always, thank you for your continued support.

/s/Louis Prichard

Louis Prichard

President, CEO

UNAUDITED

CONSOLIDATED BALANCE SHEET

(in thousands)

					Percentage
	12/31/2020		12/31/2019		Change
Assets
Cash & Due From Banks	$	38,579	$	21,922	76.0	%
Federal Funds Sold		395		260	51.9
Interest Bearing Time Deposits		2,470		2,375	4.0
Securities		353,494		265,330	33.2
Loans Held for Sale		4,427		2,144	106.5
Loans		766,871		744,313	3.0
Reserve for Loan Losses		9,897		8,460	17.0
Net Loans		756,974		735,853	2.9
Bank Owned Life Insurance		18,713		18,165	3.0
Other Assets		64,453		64,741	(0.4)
Total Assets	$	1,239,505	$	1,110,790	11.6	%
Liabilities & Stockholders' Equity
Deposits
Demand	$	313,285	$	235,268	33.2	%
Savings & Interest Checking		494,928		395,680	25.1
Certificates of Deposit		170,391		211,705	(19.5)
Total Deposits		978,604		842,653	16.1
Repurchase Agreements		9,129		5,994	52.3
Other Borrowed Funds		103,749		123,635	(16.1)
Other Liabilities		19,681		19,245	2.3
Total Liabilities		1,111,163		991,527	12.1
Stockholders' Equity		128,342		119,263	7.6
Total Liabilities & Stockholders' Equity	$	1,239,505	$	1,110,790	11.6	%

CONSOLIDATED INCOME STATEMENT

(in thousands)

	Years Ending								Three Months Ending
							Percentage								Percentage
	12/31/2020			12/31/2019			Change		12/31/2020			12/31/2019			Change
Interest Income	$	42,685		$	45,532		(6.3)	%	$	10,488		$	11,481		(8.6)	%
Interest Expense		6,703			8,983		(25.4)			1,289			2,240		(42.5)
Net Interest Income		35,982			36,549		(1.6)			9,199			9,241		(0.5)
Loan Loss Provision		1,775			1,250		42.0			(100)			425		(123.5)
Net Interest Income After Provision		34,207			35,299		(3.1)			9,299			8,816		5.5
Other Income		15,975			14,239		12.2			4,269			3,844		11.1
Other Expenses		37,607			35,308		6.5			9,603			9,035		6.3
Income Before Taxes		12,575			14,230		(11.6)			3,965			3,625		9.4
Income Taxes		878			1,077		(18.5)			444			136		226.5
Net Income	$	11,697		$	13,153		(11.1)	%	$	3,521		$	3,489		0.9	%
Selected Ratios
Return on Average Assets		0.97	%		1.20	%				1.16	%		1.24	%
Return on Average Equity		9.54			11.52					11.22			11.82
Earnings Per Share	$	1.97		$	2.21				$	0.59		$	0.59
Earnings Per Share - assuming dilution		1.97			2.21					0.59			0.59
Cash Dividends Per Share		0.72			0.68					0.18			0.17
Book Value Per Share		21.58			20.17
Tangible Book Value Per Share		19.22			17.78

Market Price	High		Low		Close
Fourth Quarter '20	$	20.70	$	15.75	$	20.70
Third Quarter '20	$	17.00	$	15.83	$	16.10