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Investment Securities and Other Investments | 9 Months Ended
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Sep. 30, 2023
Schedule of Investments [Abstract] |
Investment Securities and Other Investments | Note 3 – In vestment Securities and Other Investments Investment securities classified as AFS are carried at fair value in the consolidated balance sheets. The following tables present amortized cost, fair values, and gross unrealized gains and losses of investment securities AFS as of the dates stated.
|  | September 30, 2023 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |
State and municipal |  | $ | 51,122 |  |  | $ | — |  |  | $ | (9,845 | ) |  | $ | 41,277 |
U.S. Treasury and agencies |  |  | 72,063 |  |  |  | — |  |  |  | (12,651 | ) |  |  | 59,412 |
Mortgage backed securities |  |  | 223,638 |  |  |  | — |  |  |  | (42,905 | ) |  |  | 180,733 |
Corporate bonds |  |  | 36,908 |  |  |  | — |  |  |  | (4,400 | ) |  |  | 32,508 |
Total investment securities |  | $ | 383,731 |  |  | $ | — |  |  | $ | (69,801 | ) |  | $ | 313,930 |
|  | 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 |
As of September 30, 2023 and December 31, 2022, securities with a fair value of $25.0 million and $241.9 million, respectively, were pledged to secure the Bank’s line of credit with the Federal Home Loan Bank of Atlanta (“FHLB”). As of September 30, 2023 the Company pledged securities with $267.0 million of par value (amortized cost and fair value of $269.0 million and $216.0 million, respectively) as collateral for the Bank Term Funding Program (“BTFP”), established by the Board of Governors of the Federal Reserve System on March 12, 2023. The BTFP was created in response to industry events to provide banks with additional liquidity via a secured line of credit collateralized by eligible pledged securities. In addition, securities with a fair value of $11.2 million and $0 were pledged as of September 30, 2023 and December 31, 2022, respectively, to secure potential borrowings from the Federal Reserve Bank of Richmond (“FRB”) Discount Window. The following table presents the amortized cost and fair value of securities available for sale by contractual maturity as of the date stated. Expected maturities may differ from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | September 30, 2023 |
(Dollars in thousands) |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 2 |  |  | $ | 2 |
Due after one year through five years |  |  | 40,689 |  |  |  | 36,416 |
Due after five years through ten years |  |  | 131,518 |  |  |  | 109,844 |
Due after ten years |  |  | 211,522 |  |  |  | 167,668 |
Total |  | $ | 383,731 |  |  | $ | 313,930 |
The following tables present a summary of unrealized losses and the length of time securities have been in a continuous loss position, by security type and number of securities, as of the dates stated.
|  |  |  |  | September 30, 2023 |
|  |  |  |  | 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 |  |  | 71 |  |  | $ | 2,026 |  |  | $ | (54 | ) |  | $ | 39,251 |  |  | $ | (9,791 | ) |  | $ | 41,277 |  |  | $ | (9,845 | )
U.S. Treasury and agencies |  |  | 25 |  |  |  | 479 |  |  |  | — |  |  |  | 59,410 |  |  |  | (12,651 | ) |  |  | 59,889 |  |  |  | (12,651 | )
Mortgage backed securities |  |  | 83 |  |  |  | 1,013 |  |  |  | (104 | ) |  |  | 171,876 |  |  |  | (42,801 | ) |  |  | 172,889 |  |  |  | (42,905 | )
Corporate bonds |  |  | 33 |  |  |  | 9,569 |  |  |  | (931 | ) |  |  | 19,140 |  |  |  | (3,469 | ) |  |  | 28,709 |  |  |  | (4,400 | )
Total |  |  | 212 |  |  | $ | 13,087 |  |  | $ | (1,089 | ) |  | $ | 289,677 |  |  | $ | (68,712 | ) |  | $ | 302,764 |  |  | $ | (69,801 | )
|  |  |  |  | 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 | )
The Company reviews its AFS securities portfolio for potential credit losses no less than quarterly. At September 30, 2023 and December 31, 2022, 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 mortgage backed securities 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. As of September 30, 2023, there was no ACL for the Company's AFS securities portfolio. Restricted equity investments consisted of stock in the FHLB (carrying value of $9.4 million and $14.7 million as of September 30, 2023 and December 31, 2022, respectively), stock in the FRB (carrying value of $6.1 million at both September 30, 2023 and December 31, 2022), and stock in the Bank’s correspondent bank (carrying value of $468 thousand at both September 30, 2023 and December 31, 2022). Restricted equity investments are carried at cost. The Company also has various other equity investments, including shares in other financial institutions and fintech companies, totaling $22.1 million and $23.8 million as of September 30, 2023 and December 31, 2022, respectively, which are carried at fair value with any gain or loss reported in the consolidated statements of operations 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://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 210 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480524/946-210-50-12 + Details
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