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Investment Securities and Other Investments | 12 Months Ended
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Dec. 31, 2023
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 AFS as of the dates stated.
|  | December 31, 2023 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |
Mortgage backed securities |  | $ | 212,214 |  |  | $ | — |  |  | $ | (35,244 | ) |  | $ | 176,970 |
U.S. Treasury and agencies |  |  | 79,856 |  |  |  | — |  |  |  | (10,985 | ) |  |  | 68,871 |
State and municipal |  |  | 50,682 |  |  |  | — |  |  |  | (7,357 | ) |  |  | 43,325 |
Corporate bonds |  |  | 36,902 |  |  |  | 12 |  |  |  | (4,999 | ) |  |  | 31,915 |
Total investment securities |  | $ | 379,654 |  |  | $ | 12 |  |  | $ | (58,585 | ) |  | $ | 321,081 |
|  | December 31, 2022 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |
Mortgage backed securities |  | $ | 230,015 |  |  | $ | 51 |  |  | $ | (33,730 | ) |  | $ | 196,336 |
U.S. Treasury and agencies |  |  | 80,073 |  |  |  | — |  |  |  | (12,911 | ) |  |  | 67,162 |
State and municipal |  |  | 60,018 |  |  |  | — |  |  |  | (9,025 | ) |  |  | 50,993 |
Corporate bonds |  |  | 42,909 |  |  |  | 124 |  |  |  | (3,183 | ) |  |  | 39,850 |
Total investment securities |  | $ | 413,015 |  |  | $ | 175 |  |  | $ | (58,849 | ) |  | $ | 354,341 |
At December 31, 2023 and 2022, securities with fair values of $35.9 million and $241.9 million, respectively, were pledged to secure the Bank’s line of credit with the FHLB. As of December 31, 2023, the Company pledged securities with $260.9 million of par value (amortized cost and fair value of $262.7 million and $218.7 million, respectively) as collateral for the Bank Term Funding Program (“BTFP”), established by the Federal Reserve on March 12, 2023. The BTFP was created in response to industry events in early 2023 to provide banks with additional liquidity via a secured line of credit collateralized by eligible pledged securities. 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, 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 |
Mortgage backed securities |  |  | 86 |  |  | $ | 7,497 |  |  | $ | (45 | ) |  | $ | 169,474 |  |  | $ | (35,199 | ) |  | $ | 176,971 |  |  | $ | (35,244 | )
U.S. Treasury and agencies |  |  | 29 |  |  |  | 283 |  |  |  | (1 | ) |  |  | 68,399 |  |  |  | (10,984 | ) |  |  | 68,682 |  |  |  | (10,985 | )
State and municipal |  |  | 65 |  |  |  | 536 |  |  |  | (9 | ) |  |  | 41,118 |  |  |  | (7,348 | ) |  |  | 41,654 |  |  |  | (7,357 | )
Corporate bonds |  |  | 39 |  |  |  | 7,469 |  |  |  | (830 | ) |  |  | 21,683 |  |  |  | (4,169 | ) |  |  | 29,152 |  |  |  | (4,999 | )
Total |  |  | 219 |  |  | $ | 15,785 |  |  | $ | (885 | ) |  | $ | 300,674 |  |  | $ | (57,700 | ) |  | $ | 316,459 |  |  | $ | (58,585 | )
|  |  |  |  | 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 |
Mortgage backed securities |  |  | 78 |  |  | $ | 39,006 |  |  | $ | (3,061 | ) |  | $ | 148,449 |  |  | $ | (30,669 | ) |  | $ | 187,455 |  |  | $ | (33,730 | )
U.S. Treasury and agencies |  |  | 28 |  |  |  | 9,904 |  |  |  | (1,039 | ) |  |  | 56,686 |  |  |  | (11,872 | ) |  |  | 66,590 |  |  |  | (12,911 | )
State and municipal |  |  | 82 |  |  |  | 18,252 |  |  |  | (2,178 | ) |  |  | 31,530 |  |  |  | (6,847 | ) |  |  | 49,782 |  |  |  | (9,025 | )
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 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, 2023 |
(Dollars in thousands) |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 3,210 |  |  | $ | 3,097 |
Due after one year through five years |  |  | 40,828 |  |  |  | 37,337 |
Due after five years through ten years |  |  | 127,934 |  |  |  | 109,682 |
Due after ten years |  |  | 207,682 |  |  |  | 170,965 |
Total |  | $ | 379,654 |  |  | $ | 321,081 |
The Company evaluates the fair value and credit quality of its securities AFS portfolio no less than quarterly. At December 31, 2023 and 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. The Company evaluated the issuers of these individually, observing that each issuer had strong capital ratios and profitability thereby indicating limited exposure to asset quality or liquidity issues, which resulted in no identifiable credit losses. Investment securities with unrealized losses are generally 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 and U.S. Treasury and agencies 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 December 31, 2023, there was no ACL for the Company's securities AFS portfolio. Restricted equity investments consisted of stock in the FHLB (carrying basis $12.3 million and $14.7 million at December 31, 2023 and 2022, respectively), stock in the Federal Reserve Bank of Richmond ("FRB") (carrying basis of $5.9 million and $6.1 million at December 31, 2023 and 2022), respectively, and stock in the Company’s correspondent bank (carrying basis of $468 thousand at both December 31, 2023 and 2022). Restricted equity investments are carried at cost. The Company has various other equity investments, including investment in a fintech company and other limited partnership investments, totaling $12.9 million and $23.8 million as of December 31, 2023 and 2022, respectively. The Company also holds investments in early-stage focused investment funds, SBICs, and low-income housing partnerships, which totaled $29.5 million and $24.7 million as of December 31, 2023 and 2022, respectively.

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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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