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Investment Securities and Other Investments | 12 Months Ended
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Dec. 31, 2024
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, 2024 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |
Mortgage backed securities |  | $ | 199,453 |  |  | $ | — |  |  | $ | (35,015 | ) |  | $ | 164,438 |
U.S. Treasury and agencies |  |  | 79,430 |  |  |  | — |  |  |  | (9,975 | ) |  |  | 69,455 |
State and municipal |  |  | 50,233 |  |  |  | — |  |  |  | (7,296 | ) |  |  | 42,937 |
Corporate bonds |  |  | 38,453 |  |  |  | — |  |  |  | (3,248 | ) |  |  | 35,205 |
Total investment securities |  | $ | 367,569 |  |  | $ | — |  |  | $ | (55,534 | ) |  | $ | 312,035 |
|  | 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 |
As of December 31, 2024 and December 31, 2023, securities with fair values of $268.9 million and $35.9 million, respectively, were pledged to secure the Bank’s borrowing facility with the FHLB. As of December 31, 2024 and December 31, 2023, securities with fair values of $16.3 million and $0, respectively, were pledged to secure borrowing capacity through the Federal Reserve Bank of Richmond ("FRB") Discount Window, of which there were no outstanding advances as of either date. 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. Effective March 11, 2024, the Federal Reserve terminated the BTFP. During the second quarter of 2024, the Company repaid its BTFP $65.0 million advance upon its maturity and unpledged all collateralized 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. Excluded from the tables below were securities whose amortized cost equaled their fair value or were in an unrealized gain position as of the dates stated totaling $1.1 million and $4.4 million, as of December 31, 2024 and 2023, respectively.
|  |  |  |  | December 31, 2024 |
|  |  |  |  | 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 |  |  | 85 |  |  | $ | 11,637 |  |  | $ | (107 | ) |  | $ | 152,802 |  |  | $ | (34,908 | ) |  | $ | 164,439 |  |  | $ | (35,015 | )
U.S. Treasury and agencies |  |  | 29 |  |  |  | — |  |  |  | — |  |  |  | 69,453 |  |  |  | (9,975 | ) |  |  | 69,453 |  |  |  | (9,975 | )
State and municipal |  |  | 70 |  |  |  | 2,040 |  |  |  | (42 | ) |  |  | 40,531 |  |  |  | (7,254 | ) |  |  | 42,571 |  |  |  | (7,296 | )
Corporate bonds |  |  | 42 |  |  |  | 3,803 |  |  |  | (21 | ) |  |  | 30,653 |  |  |  | (3,227 | ) |  |  | 34,456 |  |  |  | (3,248 | )
Total |  |  | 226 |  |  | $ | 17,480 |  |  | $ | (170 | ) |  | $ | 293,439 |  |  | $ | (55,364 | ) |  | $ | 310,919 |  |  | $ | (55,534 | )
|  |  |  |  | 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 | )
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 because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | December 31, 2024 |
(Dollars in thousands) |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 496 |  |  | $ | 496 |
Due after one year through five years |  |  | 51,381 |  |  |  | 47,504 |
Due after five years through ten years |  |  | 117,352 |  |  |  | 101,662 |
Due after ten years |  |  | 198,340 |  |  |  | 162,373 |
Total |  | $ | 367,569 |  |  | $ | 312,035 |
At December 31, 2024 and 2023, the majority of securities in an unrealized loss position were of investment grade; however, a portion of the portfolio does not have a third-party investment grade available (securities with fair values of of $29.3 million and $20.5 million, respectively). These 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. Contractual cash flows for mortgage backed securities and U.S. Treasury and agencies are guaranteed and/or funded by the U.S. government and government agencies. State and municipal securities showed no indication that the contractual cash flows would 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 impaired securities prior to the recovery of the amortized cost. As of December 31, 2024 and 2023, there was no ACL for the Company's securities AFS portfolio. Any impairment that has not been recorded through an ACL is recognized in accumulated other comprehensive income (loss). Restricted equity investments consisted of stock in the FHLB (carrying basis $9.4 million and $12.3 million at December 31, 2024 and 2023, respectively), FRB stock (carrying basis of $9.4 million and $5.9 million at December 31, 2024 and 2023), respectively, and stock in the Company’s correspondent bank (carrying basis of $468 thousand at both December 31, 2024 and 2023). Restricted equity investments are carried at cost. The Company has various other equity investments, including investments in a fintech company and limited partnerships, totaling $4.8 million and $12.9 million as of December 31, 2024 and 2023, respectively. In the second quarter of 2024, the Company identified potential impairment triggers related to one of its investments, mainly due to regulatory pressures on banks partnering with fintech companies in the banking-as-a-service sector. These pressures led some fintech companies to announce cost-saving measures and at least one to seek bankruptcy protection. As a result, the Company engaged a third-party valuation firm to value the Company's investment in a fintech company. This valuation resulted in an $8.5 million impairment charge to adjust the investment to its estimated fair market value recorded in fair value adjustments of other equity investments in the consolidated statement of operations. As of December 31, 2024, the Company held investments in early-stage focused investment funds and low-income housing partnerships, which totaled $19.4 million. As of December 31, 2023, the Company held investments in early-stage focused investment funds, SBICs, and low-income housing partnerships, which totaled $29.5 million. These investments are reported in other investments on the consolidated balance sheets. The Company sold all of its SBIC investments ($11.9 million) during 2024 for a $139 thousand net gain, which is reported in other noninterest income in the consolidated statement of operations.

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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/1943274/2147478795/946-210-50-12 + Details
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