Table of Contents
Table of Contents ........................................2
Digital Annual Repo̶ t Preview ....................3
Five Year Summa̶ y .....................................4
Letter from The President & CEO ...............5
Audito̶ ’s Repo̶ t ........................................28
View The Digital Annual Report Explore the Digital Annual Repo̶ t for exclusive insights into Shareholder investing jou̶ neys and a comprehensive exploration of the ich histo̶ y of First Bank and T̶ ust Company.
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25
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12
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10
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9
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Five Year Summary
2023
2022
2021
2019
2020
177,906 64,857 113,049 5,220 19,441 65,967 11,185 50,118
125,368 18,077 107,291 7,980 22,334 61,112 12,614 47,919
Interest Income Interest Expense
103,456 8,927 94,529 4,212 21,783 58,507 11,458 42,135
86,366 17,458 68,908 1,138 14,005 46,743 7,023 28,009
92,145 11,408 80,737 7,313 19,379 52,687 7,959 32,157
Net Interest Income
Provision for Loan Losses
Other Income Other Expense
Applicable Income Taxes
Net Income
Net Income Cash Dividends Declared Book Value
3.38 1.38 25.99
3.88 1.50 28.36
6.04 2.18 38.35
5.78 2.00 34.32
5.08 1.84 31.53
Loans, Net Securities Available for Sale Total Assets Securities Held for Sale Deposits Capital
1,576,270 21,030 10,551 1,948,529 1,617,773 215,502
1,939,680 13,843 3,634 2,344,110 1,988,616 235,029
2,831,424 84,397 - 3,322,721 2,932,087 318,076
2,400,249 101,640 1,784 3,141,627 2,771,287 284,777
2,078,153 93,263 3,147 2,846,353 2,483,865 261,612
Average Equity to Average Assets Return on Average Assets Return on Average Equity Cash Dividends Declared as Percent of Net Income
10.91% 1.48% 13.59% 40.79%
10.38% 1.48% 14.25% 38.68%
9.5% 1.58%
9.18% 1.62%
9.55% 1.62%
16.64% 36.05%
17.62% 34.64%
16.95% 36.21%
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A Letter from the PRESIDENT & CEO
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1976
Chartered First Bank and T̶ ust Company was bo̶ n from a small basement gathe̶ ing of Russell County fa̶ mers in Lebanon, Virginia in 1976. The bank was initially cha̶ tered under the name First Russell County Bank and T̶ ust Company in 1976 with six o̶ iginal directors: Augustus Chafin, Carson Brown, “Smiley” Ratliff, William Cooke, Lamar Cox, and William Sutton.
Years of
1979 The Bank officially commenced operations on August 3, 1979 with seven directors: Augustus Chafin, Carson Brown, “Smiley” Ratliff, William Cooke, Lamar Cox, Pat Bassinger, and William Hayter. Commenced Operations
1979
2023
Legal Lending Limit
$150,000
$55.1 million
450ձ
5
Employees
Net Income
Ե$135,000
$50.1 million
8,294,516 shares at $112 per share
Shares Outstanding and Share Value
50,000 shares at $20 per share
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1990 First Bank and T̶ ust Company opened its third office in B̶ istol, Virginia, on Feb̶ ua̶ y 3rd, 1990, near Exit 5. The branch was later relocated to 1040 East Valley D̶ ive. Bristol, VA (East)
1984 Abingdon, VA (West)
f History
On May 15, 1984, the Bank changed its name from First Russell County Bank and T̶ ust Company to The First Bank and T̶ ust Company and expanded operations into Washington County. On November 15, 1984, the Bank opened its second office on West Main Street in Abingdon, Virginia. The Abingdon location was dete̶ mined by banking regulations, which limited the Bank’s expansion to 15 miles from the main office in Lebanon.
Investor Story: The Barretts
In 1978, I was first drawn to invest in the new bank that was starting up in Russell County due to the character and quality of the people involved in the organization. And as the owner of a small business, Barrett Farm Service, I could see the need for a true customer-focused bank in the community – a need that was not being met by other fi- nancial institutions. I have since had the honor of serving on the Board of Directors for the bank for nearly 45 years, and while the performance of the bank has been outstanding, I would say that I am most proud of the impact the bank has had on our communities, being a source for eco- nomic development and supporting numerous organizations and events over the years, not just in Russell County, but throughout our operat- ing area. During that time, the bank has helped countless farms, busi- nesses and families to realize their dreams of expansion, acquisition, and home ownership. I’ve always felt that it is very important to pass along the values and ethics that we learned from our parents down to succeeding generations to insure that legacy and culture is sustained. My son, Ronnie Barrett, joined the Board of Directors of the bank in 2015 and along with other Board Members, will strive to maintain the culture that has been built by focusing on customer service, the tradition of performance and the commitment to fairness for which the Bank is known. I cannot imag- ine I could have ever made a better investment than First Bancorp, Inc., and as successful as the bank has been to this point, I firmly believe that the best days still lie ahead for First Bank and Trust Company. – Ron Barrett, Director
Investor Story: The Salyers
Meet Billy and Patty Salyer, legacy shareholders of First Bancorp, Inc. stock. The Salyer’s have been loyal shareholders since the inception of First Russell County Bank and Trust Company in 1979 (name changed to First Bank and Trust Company in 1984) purchasing their shares in the Bank’s very first issuance of stock. Both Billy and Patty remem- ber the buzzing excitement in the small town of Lebanon, Virginia as word of a new bank opening began to swirl around the community promising growth and convenience. Fast forward 45 years to now, and the Salyer’s still own every share they’ve ever purchased, and their faith in the Bank’s vision and values remains unchanged. Billy and Patty’s dedication to holding onto their shares despite the sacrifices they had to make demonstrates the strong belief they had in the bank and their commitment to their financial future. Both Billy and Patty say that their expectations as shareholders over the years have not only been met, but that their investment has far exceeded anything they could have ever expected. From forming mean- ingful relationships and friendships with bank employees, to looking forward to dividend day, both Billy and Patty have passed on their un- wavering commitment to the Bank to their children and grandchildren. Billy and Patty’s desire is that the multi-generational investment in First Bancorp, Inc. shares will continue to leave a legacy for future generations in the Salyer family.
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1995
Expansion into Tennessee
First Bank and T̶ ust Company expanded into Tennessee with the opening of the Johnson City branch on December 5th, 1995.
1993 First Bank and T̶ ust Company opened its second Abingdon location at 933 East Main Street on July 8th, 1993. Abingdon, VA (East)
1993
First Bank and T̶ ust Company opened its second B̶ istol location on West State Street on September 13th, 1993. In 2021, the Bank relocated the West State Street office to a more prominent location at the Pinnacle shopping center in B̶ istol, Tennessee. Bristol, VA (West)
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1997 Second Tennessee Office Opened
First Bank and T̶ ust Company opened the Volunteer Parkway office on June 6th, 1997, marking the Bank’s second office location in Tennessee.
1998 First Bank and T̶ ust Company moved operations from the West Lebanon office to a new Operations Center in Abingdon, Virginia, in 1998. This building housed the operations center and corporate offices for the Bank for 25 years before being relocated to a new Operations & Training Center on Ap̶ il 15, 2023. Operations Center
1997 First Bank and T̶ ust Company opened its second Lebanon location on August 14th, 1997. Lebanon, VA (East)
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Investor Story: The Linkous’
Don and Jeane Linkous’ history of owning First Bancorp, Inc. stock is inspiring, reflecting a deep sense of loyalty, trust, and confidence in First Bancorp, Inc. Jeane first began acquiring stock at a young age from her father, who would gift shares a little bit at a time to his daughter as birthday gifts or Christmas gifts over the years. Moving forward to now, Jeane’s journey as a shareholder has generated long-term investment growth and has led to her and Don’s long-standing relationship as First Bancorp, Inc. shareholders and customers of First Bank and Trust Company, experiencing firsthand
the company’s enduring value and performance.
speaks volumes about their confi- dence in the company’s leadership and its potential for long-term growth and stability. Knowing that their investment is in good hands, their peace of mind speaks to the strength of the company’s leader- ship and the Board of Directors’ commitment to creating value for its shareholders. Their dual role as shareholders and customers of First Bank and Trust Company underscores the strong relationship that has grown over the years. The exceptional customer service that Don and Jeane receive at First Bank and Trust Company undoubtedly adds to their positive experience and reinforces share- holder loyalty. Don states that branch staff “…never fails to answer your questions, and they help you in any way they can. You can’t ask for anything better than to be treated so nice.” Don’s sentiment about feeling welcome and valued each time he enters a First Bank and Trust Company branch emphasizes the
company’s commitment to building long-lasting relationships with cus- tomers and shareholders alike. Just recently, Don and Jeane said they were speaking to a family friend about all the banking options in the area, and Don offered his friend this solid advice. He said, “As far as I’m concerned, there’s only one bank to bank with, and it’s First Bank and Trust Company.” The Linkous’s support of First Bank and Trust Company highlights the deep trust and satisfaction they have in the company as shareholders and as customers. Their endorsement reflects their own positive experiences and serves as a testament to the company’s overall reputation and credibility as an excellent investment choice.
After Jeane married Don, they fur- ther recognized the growth potential of First Bancorp, Inc. stock and decided to acquire it, expressing their belief in the company’s ability to deliver shareholder returns over the long term. Then, after years of work with the local power company, Don and Jeane retired, and Jeane became a little worried about wheth- er they could make it financially. She said to Don, “Do you think we can make it?” Don, at that point, prom- ised her two things. He said, “Jeane, I promise you that you won’t go hungry and won’t go barefoot.” Don kept his promises to Jeane, ensuring her financial security, and illustrat- ed the tangible benefits that arose from their wise investment choice of investing in First Bancorp, Inc. stock over the years. Don and Jeane’s unwavering belief that First Bancorp, Inc. stock is the best investment they’ve ever made
Investor Story: The Bowens
First Bank and Trust Company has always maintained a family atmo- sphere, and perhaps no family has embodied that more than the Bowen family. Tom Bowen joined the bank in 2000 and served for 16 years as the Bank’s Credit Administration Officer before retiring in 2016. Son James Bowen came to First Bank and Trust in 2011 as a man- agement trainee, later serving as a loan officer and branch manager before continuing his father’s legacy as Credit Administration Officer. Both Tom and James invested in the Bank over the years, and now third-generation Annie is among the Company’s youngest sharehold- ers. According to Tom, “First Bank and Trust Company has the best employee relationships that I have ever seen, with people that not only work together, but genuinely respect and care for each other. I have never had a job that I worked at harder or enjoyed more.” Tom further states “Purchasing stock in First Bancorp, Inc. is the best investment I ever made, but I believe the best is yet to come for the bank.” According to James Bowen, “Investing in First Bancorp, Inc. is the closest thing to being self-employed, because the success of the investment is depen- dent on my performance and that of my fellow employees.” As one of the newest and youngest shareholders, Annie’s ownership continues the Bowen investment tradition in First Bancorp, Inc. ensuring her success by creating a solid financial founda- tion for the future.
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2000
Expansion into the Shenandoah Valley
First Bank and T̶ ust Company continued organic growth along the IԵ81 co̶̶ idor, opening its first location in the Shenandoah Valley on May 30th, 2000. The Staunton office operated out of a mobile unit until the pe̶ manent office was completed in Feb̶ ua̶ y 2001.
Gray, TN 2000
First Bank and T̶ ust Company opened its third Tennessee location in Gray on March 15th, 2000.
2001
Agricultural Lending Division
First Bank and T̶ ust Company established a dedicated Ag̶ icultural Lending Division in 2001. Led by SVP/Divisional Manager Keith Phillips, the nationally ranked Division would eventually grow to represent approximately 28% of the Bank’s lending po̶ tfolio.
2003 Wise and Norton, VA
First Bank and T̶ ust Company acquired First Commonwealth Bank in Wise and No̶ ton, Virginia, in May 2003.
2004 First Bank and T̶ ust Company opened its second Shenandoah Valley location in Verona, Virginia, on November 8th, 2004. Verona, VA
2002
First Bank and T̶ ust Company opened its fou̶ th Tennessee location in Kingspo̶ t, Tennessee, on Ap̶ il 8th, 2002. Kingsport, TN
2006 First Bank and T̶ ust Company entered the Forest, Virginia market on March 1st, 2006. Forest, VA
2005 First Bank and T̶ ust Company opened a Loan Production Office on Main Street in Wytheville, Virginia, on Ap̶ il 18th, 2005. The branch was conve̶ ted to a full-se̶ vice office in 2008 and relocated to 1290 N. 4th Street. Wytheville, VA
2005 First Bank and T̶ ust Company opened its first Ha̶̶ isonburg, Virginia, location on June 1st, 2005, soon followed by a second location. The two offices were combined in 2012 into the existing office at 120 University Boulevard in Ha̶̶ isonburg. Harrisonburg, VA
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2007 Christiansburg, VA
O̶ iginally opened as a Loan Production Office in Blacksburg, Virginia, in 2004, the branch was later conve̶ ted to a full-se̶ vice office and relocated to Ch̶ istiansburg, Virginia in 2007.
2008 First Bank and T̶ ust Company first opened its Mo̶ tgage Division in 2003 in B̶ istol, Virginia. In 2008, the Mo̶ tgage Division moved to the Exit 7 area, where it remained until 2021, when it was relocated to the Pinnacle office in B̶ istol, Tennessee. Mortgage Division
2008
First Bank and T̶ ust Company opened its location in Waynesboro, Virginia, on Ap̶ il 23rd, 2008. Waynesboro, VA
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2015 First Bank and T̶ ust Company opened its Loan Production Office in Winchester, Virginia, on Feb̶ ua̶ y 1st, 2015. Winchester, VA
2013
First Bank and T̶ ust Company opened its location in B̶ idgewater, Virginia, on March 18th, 2013. Bridgewater, VA
2014 First Bank and T̶ ust Company opened its location in Fairlawn, Virginia, on Feb̶ ua̶ y 10th, 2014. Fairlawn, VA
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2015 Rocky Mount, VA
First Bank and T̶ ust Company opened its Loan Production Office in Rocky Mount, Virginia, on October 1st, 2015.
2017 First Bank and T̶ ust Company opened its second location in Wytheville, Virginia, in September 2017. This annex office space houses lending and administrative staff se̶ ving the Wytheville market area and su̶ rounding communities. Wytheville, VA
2018
First Bank and T̶ ust Company purchased the prope̶ ty across the street from the Bank’s first Abingdon location and tempora̶ ily operated the branch in this space while the new West Abingdon Branch and Corporate Center location was being const̶ ucted. Abingdon, VA
2015
First Bank and T̶ ust Company opened its Loan Production Office in Roanoke, Virginia, on December 15th, 2015. Roanoke, VA
Investor Story: Sharon Scott & John Tutle
Sharon Scott and John Tutle began their banking relationship with First Bank and Trust Company in 2009, initially drawn to the bank by personal relationships with several Bank employees. They were quickly impressed with the service that they received, as well as the character and culture of the bank, which Sharon describes as “a perfect combination of professionalism, compassion and fun.” After being invited to attend a live-stream of a First Bancorp, Inc. stockholders meeting, a meeting in which Sha- ron Scott says “we went with no intention of investing”, and hearing the story and vision of the bank, they decided to personally invest in 2013. John, who describes himself as “happily retired,” states that their investment in First Bancorp, Inc. “is the best investment I have ever made and would highly recommend it to friends and family.” Sharon, a business consultant and former President and CEO of the Montgom- ery County Chamber of Commerce, notes that “Investment” can be a narrowly defined term, and yes, the dividends and returns are great, but it is how the bank invests in commu- nities and employees to help them build for the future that is more important for me. And as a girl who grew up on a farm, I really value the bank’s support of agribusiness.” Both John and Sharon appreciate that despite growth, the bank still operates a true community bank, knowing customers by name, and always providing superior, person- alized service, and when needed, compassion and caring, as was the
case when Sharon lost both of her parents. “The employees of the bank treated my parents like royalty, and when they passed, the employees, particularly Wealth Management Manager Scott Arnett, were remark- ably helpful, offering outstand- ing guidance and assistance, and sometimes just a shoulder and a Kleenex.”
Investment can be a narrowly defined term, and yes, the dividends and returns are great, but it is how the bank invests in communities and employees to help them build for the fu- ture that is more important for me. And as a girl who grew up on a farm, I really value the bank’s support of agribusiness.
Investor Story: Megan Smith
Like almost all of our employees, I participate in the Bank’s 401k plan, which matches eligible employee contributions with stock in First Bancorp, Inc., allowing employees to be stockholders in the company. Having an investment in the bank and knowing you are a part own- er certainly has an effect on how I approach my job. Knowing that you are representing the bank in which you have a personal financial inter- est provides even more incentive to provide great customer service and foster long-standing relationships. In my opinion, this “ownership culture” is one of the main reasons the bank is so successful because we literally have a vested interest in making sure our customers are satisfied with their service. Custom- ers who have come to First Bank and Trust Company from other banks often remark about the outstanding quality and personable service they receive here in comparison to other financial institutions. To me, working for First Bank and Trust Company means more than a simple paycheck, as I have the op- portunity to invest in the Bank over time, helping me to reach my long- term financial goals. I am apprecia- tive of the opportunity afforded to employees to be able to participate in the success of the bank.
Having an investment in the bank and knowing you are a part owner certainly has an effect on how I approach my job. Knowing that you are representing the bank in which you have a personal financial interest provides even more incentive to provide great customer service and foster long-standing relationships.
– Megan Smith, Teller Verona, VA Office
2020 First Bank and T̶ ust Company opened its Loan Production Office in Lynchburg, Virginia, on March 1st, 2020. Lynchburg, VA
2019 First Bank and T̶ ust Company opened its Loan Production Office in Bedford, Virginia, on March 15th, 2019. Bedford, VA
2019 First Bank and T̶ ust Company opened its Blacksburg, Virginia office on March 21st, 2019. Blacksburg, VA
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2020 Woodstock, VA
First Bank and T̶ ust Company opened its full- se̶ vice Woodstock, Virginia office in Ap̶ il 2020.
2020
First Bank and T̶ ust Company opened its Loan Production Office in Mo̶̶ istown, Tennessee, on December 7th, 2020. Morristown, TN
2020 West Abingdon Branch & Corporate Center The West Abingdon Office & Corporate Center was completed in May 2020. This facility houses the West Abingdon branch, Wealth Management and T̶ ust personnel, and the Commercial and Ag̶ icultural Lending Divisions
for Southwest Virginia. Senior- level corporate staff, along with
loan administration, finance, human resources, and training personnel, are also housed in this building.
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2021 First Bank and T̶ ust Company opened its Loan Production Office in Daleville, Virginia, on May 1st, 2021. Daleville, VA
2021
First Bank and T̶ ust Company opened its Hanover, Virginia office on Janua̶ y 13th, 2021, by conve̶ ting a Loan Production Office, which was established in Ashland, Virginia, in 2017. Hanover, VA
2021 First Bank and T̶ ust Company expanded its footp̶ int into No̶ th Carolina in 2021, opening a loan office in Mount Ai̶ y, No̶ th Carolina, on March 22nd, 2021, under the name First Bank and T̶ ust Co. of Virginia. This office transitioned to full-se̶ vice on June 5th, 2023. Mount Airy, NC
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2021 Bristol, TN (Pinnacle) First Bank and T̶ ust Company opened its Pinnacle office in B̶ istol, Tennessee, on June 7th, 2021. This location is home to the Bank’s Mo̶ tgage Lending Division.
2022 First Bank and T̶ ust Company opened its third No̶ th Carolina location in Lillington on November 28th, 2022. Lillington, NC
2021 O̶ iginally opened as a Loan Production Office in 2020, First Bank and T̶ ust Company opened its first full-se̶ vice No̶ th Carolina office in the town of Red Oak on November 15th, 2021. Red Oak, NC
2023 First Bank and T̶ ust Company relocated the Operations Center to 711 West Main Street in Abingdon, Virginia, in Ap̶ il 2023, upgrading training facilities and providing a mode̶ n work environment for the Bank’s operations staff. Abingdon, VA
2023 First Bank and T̶ ust Company opened its Clinton, No̶ th Carolina, loan office on March 30th, 2023. This is the Bank’s fou̶ th office opened in No̶ th Carolina in under two years. Clinton, NC
2023 First Bank and T̶ ust Company expanded its footp̶ int in the greater Richmond area adding a Loan Production Office to the market area on September 12th, 2023. Richmond, VA
2023
Auditor’s REPORT
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