Exhibit 99.1

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October 30, 2020

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Earnings Report – September 30, 2020

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Dear Shareholders:

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Like many companies, we continue to adjust and move forward in dealing with the challenges presented by COVID-19.  Provided below are our financial results for the year-to-date and an update in the context of our four primary stakeholder groups;  shareholders, customers, employees, and communities.

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Shareholders:  Year-to-date net income was $8.2 million for the period ending September 30, 2020 compared to $9.7 million for the period ending September 30, 2019.  Year-to-date diluted earnings per share was $1.38 and $1.62, for September 30, 2020 and 2019, respectively.  Total assets were $1.20 billion as of September 30, 2020 compared to $1.08 billion as of September 30, 2019.  The primary drivers behind the decrease in earnings from year-to-year is a $1.1 million increase in provision for loan loss expense and a decrease of $525 thousand in net interest income.  The increase in the provision expense is a result of our best effort to analyze the negative economic impact of COVID-19.  The decrease in net interest income is due to declining interest rates. We remain well capitalized but, like the rest of the banking industry, we do expect continued pressure on net interest margins and a certain degree of uncertainty relating to the health of the economy.

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Customers:  We recognize COVID-19 has impacted consumer and commercial customers so we have designed programs to support both groups.  We are offering a Skip-a-Pay opportunity to our consumer loan customers allowing them to defer loan payments through year-end.  Since mid-March, we have worked with commercial and residential loan customers most impacted by this economic recession for principal and/or interest deferments ranging from three to twelve months.  Since early April, we have worked with commercial customers to originate approximately $60 million in U.S. Small Business Administration Paycheck Protection Program loans.  

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Employees:  We value the health of our employees and customers and have followed the state and local safety guidelines by increasing physical work space and limiting lobby access at times.  By the end of July, all of our branch lobbies returned to full access.  Our employees have performed exceedingly well during this trying time and have continued to provide Premier Customer Service.  We will continue to follow state and local safety guidelines as COVID cases have recently increased nationally and regionally.  

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Communities: The wellbeing of a community bank is closely tied to the wellbeing of the communities in which it serves.  In mid-March, we increased our corporate donations to non-profit groups serving those most in need within our communities.  In addition, we opened our newest branch, Tates Creek Centre Lexington, on July 6.  This new branch increases our presence in Lexington which is the largest market we serve and provides additional access for existing customers and potential customers.

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The coming quarters will be challenging from a financial prospective, but as always, we will strive for the long-term best interest of our shareholders, customers, and employees.  Thank you for your continued support.

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UNAUDITED

CONSOLIDATED BALANCE SHEET

(in thousands)

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CONSOLIDATED INCOME STATEMENT

(in thousands)

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