XML 19 R10.htm IDEA: XBRL DOCUMENT
v3.23.3

Investment Securities and Other Investments | 3 Months Ended
--- | ---
Mar. 31, 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.
|  | March 31, 2023 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |
State and municipal |  | $ | 59,408 |  |  | $ | — |  |  | $ | (7,747 | ) |  | $ | 51,661 |
U.S. Treasury and agencies |  |  | 72,051 |  |  |  | — |  |  |  | (9,898 | ) |  |  | 62,153 |
Mortgage backed securities |  |  | 231,761 |  |  |  | 19 |  |  |  | (32,461 | ) |  |  | 199,319 |
Corporate bonds |  |  | 42,420 |  |  |  | 32 |  |  |  | (3,595 | ) |  |  | 38,857 |
Total investment securities |  | $ | 405,640 |  |  | $ | 51 |  |  | $ | (53,701 | ) |  | $ | 351,990 |
|  | 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 March 31, 2023 and December 31, 2022, securities with a fair value of $242.8 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 March 31, 2023, the Company pledged securities with $29.9 million of par value (amortized cost and fair value of $29.8 million and $25.5 million, respectively) as collateral for the Bank Term Funding Program (“BTFP”) established by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The BTFP was created and announced on March 12, 2023 in response to industry events to provide banks with additional liquidity via a secured line of credit collateralized by eligible pledged securities. Available credit is equal to the current par value of the pledged securities. Advances under the BTFP are up to a one-year term and are priced at the one-year overnight index swap rate plus 10 basis points, which is fixed for the term on the advance date. 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.
|  | March 31, 2023 |
(Dollars in thousands) |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 1,502 |  |  | $ | 1,499 |
Due after one year through five years |  |  | 52,227 |  |  |  | 47,470 |
Due after five years through ten years |  |  | 129,729 |  |  |  | 114,220 |
Due after ten years |  |  | 222,182 |  |  |  | 188,801 |
Total |  | $ | 405,640 |  |  | $ | 351,990 |
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.
|  |  |  |  | March 31, 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 |  |  | 80 |  |  | $ | 3,265 |  |  | $ | (92 | ) |  | $ | 46,807 |  |  | $ | (7,655 | ) |  | $ | 50,072 |  |  | $ | (7,747 | )
U.S. Treasury and agencies |  |  | 26 |  |  |  | 4,885 |  |  |  | (115 | ) |  |  | 57,264 |  |  |  | (9,783 | ) |  |  | 62,149 |  |  |  | (9,898 | )
Mortgage backed securities |  |  | 81 |  |  |  | 11,475 |  |  |  | (408 | ) |  |  | 179,759 |  |  |  | (32,053 | ) |  |  | 191,234 |  |  |  | (32,461 | )
Corporate bonds |  |  | 34 |  |  |  | 20,801 |  |  |  | (1,729 | ) |  |  | 12,724 |  |  |  | (1,866 | ) |  |  | 33,525 |  |  |  | (3,595 | )
Total |  |  | 221 |  |  | $ | 40,426 |  |  | $ | (2,344 | ) |  | $ | 296,554 |  |  | $ | (51,357 | ) |  | $ | 336,980 |  |  | $ | (53,701 | )
|  |  |  |  | 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 at least quarterly. At March 31, 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 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 March 31, 2023, there is no ACL against the Company's AFS securities portfolio. Restricted equity investments consiste d of stock in the FHLB (carrying value of $11.8 million and $14.7 million as of March 31, 2023 and December 31, 2022, respectively), stock in the Federal Reserve Bank of Richmond ("FRB") (carrying value of $6.1 m illion at both March 31, 2023 and December 31, 2022), and stock in the Bank’s correspondent bank (carrying value of $468 thousand at both March 31, 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 $23.0 million and $23.8 million as of March 31, 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.

X
- 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
Name: | us-gaap_InvestmentHoldingsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ScheduleOfInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration