Financial Performance - Net income for the three months ended March 31, 2019, decreased by $426 thousand to $2.3 million, or $0.46 per share, compared to $2.7 million, or $0.54 per share, for the same period in 2018[118]. - Noninterest income decreased by $648 thousand, or 25%, while noninterest expenses increased by $232 thousand, or 4%, compared to the same period in 2018[119]. - Net interest income increased by $352 thousand, or 5%, driven by a higher net interest margin and higher average earning asset balances[119]. - The efficiency ratio for the three months ended March 31, 2019, was 67.23%, compared to 62.39% for the same period in 2018[123]. - Noninterest income decreased by $648 thousand, or 25%, to $2.0 million for the three months ended March 31, 2019, compared to $2.6 million for the same period in 2018[156]. - Noninterest expense increased by $232 thousand, or 4%, to $6.1 million for the quarter ended March 31, 2019, compared to $5.9 million for the same period in 2018[157]. Interest Income and Margin - Interest income from loans increased to $6.996 million for the three months ended March 31, 2019, compared to $6.305 million for the same period in 2018[124]. - Total tax-equivalent net interest income for the first quarter of 2019 was $6.951 million, up from $6.596 million in the same period of 2018[124]. - For the three months ended March 31, 2019, net interest income increased by $352 thousand, or 5%, to $6.9 million compared to $6.5 million for the first quarter of 2018[147]. - Average earning asset balances increased by 1%, and the net interest margin increased by 18 basis points to 3.97% for the quarter ended March 31, 2019, compared to 3.79% for the same period in 2018[147]. - The yield on loans increased by 29 basis points, contributing significantly to the increase in the yield on earning assets[148]. - Interest rate spread increased to 3.71% for the quarter ended March 31, 2019, compared to 3.62% for the same period in 2018[159]. Loan Losses and Provisions - The provision for loan losses was not required during the first quarter of 2019, while a provision of $100 thousand was recorded in the first quarter of 2018[121]. - The Bank did not record a provision for loan losses during the first quarter of 2019, resulting in an allowance for loan losses of $4.9 million, or 0.90% of total loans[153]. - The allowance for loan losses was $4.9 million at March 31, 2019, representing 0.90% of total loans, slightly down from $5.0 million or 0.92% at December 31, 2018[180]. - Net charge-offs totaled $63 thousand for the first quarter of 2019, compared to $154 thousand for the same period of 2018[154]. - Loans greater than 90 days past due and still accruing totaled $133 thousand at March 31, 2019, down from $235 thousand at December 31, 2018[179]. - The recorded investment in impaired loans was $2.2 million at March 31, 2019, compared to $3.4 million at December 31, 2018[174]. - Non-performing assets amounted to $1.9 million at March 31, 2019, representing 0.25% of total assets, down from $3.2 million or 0.42% at December 31, 2018[177]. - Other potential problem loans totaled $3.1 million at March 31, 2019, down from $3.5 million at December 31, 2018[178]. Assets and Liabilities - Total assets increased by $22.1 million to $775.1 million at March 31, 2019, compared to $753.0 million at December 31, 2018[159]. - Total liabilities increased by $19.1 million to $705.4 million at March 31, 2019, compared to $686.3 million at December 31, 2018[160]. - Total shareholders' equity increased by $3.1 million to $69.7 million at March 31, 2019, compared to $66.7 million at December 31, 2018[161]. - Loans, net of the allowance for loan losses, increased by $7.7 million to $545.5 million at March 31, 2019, compared to $537.8 million at December 31, 2018[162]. - Deposits increased by $13.7 million to $684.2 million at March 31, 2019, compared to $670.6 million at December 31, 2018[187]. Capital and Commitments - As of March 31, 2019, the Bank's total capital to risk-weighted assets ratio was 14.49%[194]. - The Tier 1 capital to risk-weighted assets ratio stood at 13.60% as of March 31, 2019[194]. - The Bank met the "well capitalized" requirements with a common equity Tier 1 capital ratio of 13.60%[195]. - Commitments to extend credit increased to $98.4 million at March 31, 2019, up from $91.1 million at December 31, 2018[198]. - The Bank had $10.0 million in outstanding standby letters of credit as of March 31, 2019, compared to $9.9 million at December 31, 2018[200]. - Locked-rate commitments to originate mortgage loans amounted to $4.4 million at March 31, 2019[201]. - The capital conservation buffer ratio was reported at 6.49%[194]. - The Bank's Tier 1 leverage ratio was 10.01% as of March 31, 2019[194]. - The Bank's exposure to credit loss from off-balance sheet arrangements includes commitments to extend credit and letters of credit[197]. Operational Insights - The Bank operates 14 branch offices and a loan production office, strategically located in attractive markets along major interstate corridors in Virginia[115]. - The provision for loan losses, noninterest income, and noninterest expense are key components that determine net income[146]. - The general allowance for loan losses is based on historical loss experience adjusted for qualitative factors, which may change from period to period[132]. - The Company regularly reviews each security for other-than-temporary impairment based on various criteria, including market price and issuer's financial health[133]. - The Bank's loan policy includes approval limits for individual loan officers based on their position and experience, with oversight from the Board Loan Committee[134]. - The Bank's commercial real estate loan underwriting criteria require an examination of debt service coverage ratios and the borrower's creditworthiness[141]. - The average recorded investment in impaired loans was $2.4 million for the three months ended March 31, 2019[182]. - Management believes the Bank has sufficient reserves to cover losses inherent within the loan portfolio[183]. - There were no material changes to the contractual obligations disclosed in the Company's Annual Report for the year ended December 31, 2018[196].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-K _______________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-23976 ____________________________ ...