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Investment Securities and Other Investments | 12 Months Ended
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Dec. 31, 2022
Schedule of Investments [Abstract] |
Investment Securities and Other Investments | Note 3. Investment Securities and Other Investments Investment securities available for sale are carried on the Company's consolidated balance sheets at fair value. The following table presents amortized cost, fair values, and gross unrealized gains and losses of investment securities as of the dates stated.
|  | December 31, 2022 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |
State and municipal |  | $ | 60,018 |  |  | $ | — |  |  | $ | (9,025 | ) |  | $ | 50,993 |
U.S. Treasury and agencies |  |  | 80,073 |  |  |  | — |  |  |  | (12,911 | ) |  |  | 67,162 |
Mortgage backed securities |  |  | 230,015 |  |  |  | 51 |  |  |  | (33,730 | ) |  |  | 196,336 |
Corporate bonds |  |  | 42,909 |  |  |  | 124 |  |  |  | (3,183 | ) |  |  | 39,850 |
Total investment securities |  | $ | 413,015 |  |  | $ | 175 |  |  | $ | (58,849 | ) |  | $ | 354,341 |
|  | December 31, 2021 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |
State and municipal |  | $ | 51,341 |  |  | $ | 302 |  |  | $ | (530 | ) |  | $ | 51,113 |
U.S. Treasury and agencies |  |  | 65,680 |  |  |  | — |  |  |  | (1,614 | ) |  |  | 64,066 |
Mortgage backed securities |  |  | 222,968 |  |  |  | 403 |  |  |  | (4,261 | ) |  |  | 219,110 |
Corporate bonds |  |  | 38,752 |  |  |  | 808 |  |  |  | (317 | ) |  |  | 39,243 |
Total investment securities |  | $ | 378,741 |  |  | $ | 1,513 |  |  | $ | (6,722 | ) |  | $ | 373,532 |
At December 31, 2022 and 2021, no securities and securities with fair values of $8.7 million, respectively, were pledged to secure public deposits with the Treasury Board of the Commonwealth of Virginia. At December 31, 2022 and 2021, securities with fair values of $241.9 million and $23.1 million, respectively, were pledged to secure the Bank’s line of credit with the FHLB. The following tables present fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates stated. The reference point for determining when securities are in an unrealized loss position is period-end; therefore, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period.
|  |  |  |  | December 31, 2022 |
|  |  |  |  | Less than 12 Months |  |  | 12 Months or Greater |  |  | Total |
(Dollars in thousands) |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
State and municipal |  |  | 82 |  |  | $ | 18,252 |  |  | $ | (2,178 | ) |  | $ | 31,530 |  |  | $ | (6,847 | ) |  | $ | 49,782 |  |  | $ | (9,025 | )
U.S. Treasury and agencies |  |  | 28 |  |  |  | 9,904 |  |  |  | (1,039 | ) |  |  | 56,686 |  |  |  | (11,872 | ) |  |  | 66,590 |  |  |  | (12,911 | )
Mortgage backed securities |  |  | 78 |  |  |  | 39,006 |  |  |  | (3,061 | ) |  |  | 148,449 |  |  |  | (30,669 | ) |  |  | 187,455 |  |  |  | (33,730 | )
Corporate bonds |  |  | 33 |  |  |  | 26,018 |  |  |  | (2,283 | ) |  |  | 5,675 |  |  |  | (900 | ) |  |  | 31,693 |  |  |  | (3,183 | )
Total |  |  | 221 |  |  | $ | 93,180 |  |  | $ | (8,561 | ) |  | $ | 242,340 |  |  | $ | (50,288 | ) |  | $ | 335,520 |  |  | $ | (58,849 | )
|  |  |  |  | December 31, 2021 |
|  |  |  |  | Less than 12 Months |  |  | 12 Months or Greater |  |  | Total |
(Dollars in thousands) |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
State and municipal |  |  | 38 |  |  | $ | 27,905 |  |  | $ | (530 | ) |  | $ | — |  |  | $ | — |  |  | $ | 27,905 |  |  | $ | (530 | )
U.S. Treasury and agencies |  |  | 22 |  |  |  | 64,067 |  |  |  | (1,614 | ) |  |  | — |  |  |  | — |  |  |  | 64,067 |  |  |  | (1,614 | )
Mortgage backed securities |  |  | 54 |  |  |  | 186,924 |  |  |  | (4,257 | ) |  |  | 543 |  |  |  | (4 | ) |  |  | 187,467 |  |  |  | (4,261 | )
Corporate bonds |  |  | 11 |  |  |  | 6,770 |  |  |  | (313 | ) |  |  | 996 |  |  |  | (4 | ) |  |  | 7,766 |  |  |  | (317 | )
Total |  |  | 125 |  |  | $ | 285,666 |  |  | $ | (6,714 | ) |  | $ | 1,539 |  |  | $ | (8 | ) |  | $ | 287,205 |  |  | $ | (6,722 | )
The following table presents the amortized cost and fair value of securities available for sale by contractual maturity as of the dates stated. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | December 31, 2022 |
(Dollars in thousands) |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 4,896 |  |  | $ | 4,880 |
Due after one year through five years |  |  | 30,765 |  |  |  | 28,243 |
Due after five years through ten years |  |  | 136,788 |  |  |  | 118,605 |
Due after ten years |  |  | 240,566 |  |  |  | 202,613 |
Total |  | $ | 413,015 |  |  | $ | 354,341 |
The Company reviews for OTTI of its investment securities portfolio quarterly. At December 31, 2022 and 2021, the majority of securities in an unrealized loss position were of investment grade; however, a few did not have a third-party investment grade available. These ungraded securities were primarily subordinated debt instruments issued by bank holding companies and are classified as corporate bonds in the tables above. Investment securities with unrealized losses are generally a result of pricing changes due to changes in the interest rate environment since purchase and not as a result of permanent credit impairment. Contractual cash flows for MBS are guaranteed and/or funded by the U.S. government. Municipal securities show no indication that the contractual cash flows will not be received when due. The Company does not intend to sell, nor does it believe that it will be required to sell, any of its temporarily impaired securities prior to the recovery of the amortized cost. Restricted equity investments consisted of stock in the FHLB (carrying basis $14.7 million and $1.7 million at December 31, 2022 and 2021, respectively), FRB stock (carrying basis of $6.1 million at both December 31, 2022 and 2021), and stock in the Company’s correspondent bank (carrying basis of $468 thousand at both December 31, 2022 and 2021). Restricted equity investments are carried at cost. The Company has various other equity investments, including shares in other financial institutions and fintech companies, totaling $23.8 million and $14.2 million as of December 31, 2022 and 2021, respectively, which are carried at fair value with any gain or loss reported in the consolidated income statements each reporting period. As no actively traded market exists for substantially all of the Company's other equity investments, fair value adjustments are determined by reviewing recent observable market transactions, such as stock or equity transactions, that are substantially similar to the Company's existing investments. Other equity investments are also periodically evaluated for impairment using information obtained either directly from the investee or from a third-party broker. If an impairment has been identified, the carrying value of the investment is written down to its estimated fair market value through a charge to earnings.

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- Definition The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611322-123010 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-12B) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611197-123010 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 5D -Subparagraph (SX 210.12-13D) -URI https://asc.fasb.org/extlink&oid=122147990&loc=SL120429264-123010 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-12) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611133-123010 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 5 -Subparagraph (SX 210.12-13) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611282-123010 + Details
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