XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Investment Securities | 9 Months Ended
--- | ---
Sep. 30, 2022
Investment Securities |
Investment Securities | Note 2— Investment Securities The following table summarizes the amortized cost and fair value of securities held-to-maturity and available-for-sale and the corresponding amounts of gross unrealized gains and losses at September 30, 2022 and December 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2022
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost |  | Gains |  | (Losses) |  | Value
Held-to-maturity |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S Treasuries | ​ | $ | 6,000 | ​ | $ | — | ​ | $ | (895) | ​ | $ | 5,105
U.S. government and federal agencies | ​ |  | 35,588 | ​ |  | — | ​ |  | (6,318) | ​ |  | 29,270
Collateralized mortgage obligations | ​ |  | 21,924 | ​ |  | — | ​ |  | (4,155) | ​ |  | 17,769
Taxable municipal | ​ |  | 6,076 | ​ |  | — | ​ |  | (1,340) | ​ |  | 4,736
Mortgage-backed | ​ |  | 31,010 | ​ |  | — | ​ |  | (6,125) | ​ |  | 24,885
Total Held-to-maturity Securities | ​ | $ | 100,598 | ​ | $ | — | ​ | $ | (18,833) | ​ | $ | 81,765
Available-for-sale | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S Treasuries | ​ | $ | 63,404 | ​ | $ | — | ​ | $ | (4,585) | ​ | $ | 58,819
U.S. government and federal agencies | ​ |  | 38,717 | ​ |  | — | ​ |  | (4,261) | ​ |  | 34,456
Corporate bonds | ​ |  | 3,000 | ​ |  | — | ​ |  | (308) | ​ |  | 2,692
Collateralized mortgage obligations | ​ |  | 46,188 | ​ |  | — | ​ |  | (5,977) | ​ |  | 40,211
Tax-exempt municipal | ​ |  | 4,996 | ​ |  | — | ​ |  | (623) | ​ |  | 4,373
Taxable municipal | ​ |  | 608 | ​ |  | — | ​ |  | (30) | ​ |  | 578
Mortgage-backed | ​ |  | 249,113 | ​ |  | — | ​ |  | (23,696) | ​ |  | 225,417
Total Available-for-sale Securities | ​ | $ | 406,026 | ​ | $ | — | ​ | $ | (39,480) | ​ | $ | 366,546
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2021
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost |  | Gains |  | (Losses) |  | Value
Held-to-maturity |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S Treasuries | ​ | $ | 6,000 | ​ | $ | — | ​ | $ | (150) | ​ | $ | 5,850
U.S. government and federal agencies | ​ |  | 35,720 | ​ |  | — | ​ |  | (726) | ​ |  | 34,994
Collateralized mortgage obligations | ​ |  | 25,606 | ​ |  | — | ​ |  | (534) | ​ |  | 25,072
Taxable municipal | ​ |  | 6,089 | ​ |  | — | ​ |  | (194) | ​ |  | 5,895
Mortgage-backed | ​ |  | 32,094 | ​ |  | — | ​ |  | (647) | ​ |  | 31,447
Total Held-to-maturity Securities | ​ | $ | 105,509 | ​ | $ | — | ​ | $ | (2,251) | ​ | $ | 103,258
Available-for-sale | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S Treasuries | ​ | $ | 30,954 | ​ | $ | — | ​ | $ | (411) | ​ | $ | 30,543
U.S. government and federal agencies | ​ |  | 34,803 | ​ |  | 258 | ​ |  | (524) | ​ |  | 34,537
Corporate bonds | ​ |  | 1,000 | ​ |  | 31 | ​ |  | — | ​ |  | 1,031
Collateralized mortgage obligations | ​ |  | 39,596 | ​ |  | 179 | ​ |  | (726) | ​ |  | 39,049
Tax-exempt municipal | ​ |  | 5,007 | ​ |  | 255 | ​ |  | — | ​ |  | 5,262
Taxable municipal | ​ |  | 1,653 | ​ |  | 37 | ​ |  | (5) | ​ |  | 1,685
Mortgage-backed | ​ |  | 127,287 | ​ |  | 1,232 | ​ |  | (1,326) | ​ |  | 127,193
Total Available-for-sale Securities | ​ | $ | 240,300 | ​ | $ | 1,992 | ​ | $ | (2,992) | ​ | $ | 239,300
​ During 2021, the Company transferred investment securities with a carrying value of $99.0 million, including an unrealized gain of $593 thousand from available-for-sale to held-to-maturity and began classifying certain newly purchased debt securities as held-to-maturity, as it has the intent and ability to hold these securities to maturity. The unrealized gain at the time of transfer is being amortized over the remaining lives of the securities. The Company did not sell nor recognize any gain or loss for any debt securities for the three or nine months ended September 30, 2022. The Company did not sell any debt securities for the three or nine months ended September 30, 2021. A gross gain of $10 thousand was recognized on the call of a security during the nine months ended September 30, 2021. Securities having a market value of $91.4 million and $78.6 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $105.8 million and $78.8 million at September 30, 2022 and December 31, 2021, respectively. The following tables summarize the fair value of securities held-to-maturity and securities available-for-sale at September 30, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized losses. Management uses the valuations as of month-end in determining when securities are in an unrealized loss position. Therefore, a security’s market value could have exceeded its amortized cost on other days during the prior twelve-month period. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2022
​ | ​ | Less than 12 Months | ​ | 12 Months or Longer | ​ | Total
​ | ​ | ​ | ​ | Gross | ​ | ​ | ​ | Gross | ​ | ​ | ​ | Gross
​ | ​ | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
(Dollars in thousands) | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses
Held-to-maturity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S Treasuries | ​ | $ | — | ​ | $ | — | ​ | $ | 5,105 | ​ | $ | (895) | ​ | $ | 5,105 | ​ | $ | (895)
U.S. government and federal agencies | ​ |  | 834 | ​ |  | (166) | ​ |  | 28,436 | ​ |  | (6,152) | ​ |  | 29,270 | ​ |  | (6,318)
Collateralized mortgage obligations | ​ |  | 5,679 | ​ |  | (1,126) | ​ |  | 12,090 | ​ |  | (3,029) | ​ |  | 17,769 | ​ |  | (4,155)
Taxable municipal | ​ |  | — | ​ |  | — | ​ |  | 4,736 | ​ |  | (1,340) | ​ |  | 4,736 | ​ |  | (1,340)
Mortgage-backed | ​ |  | 1,643 | ​ |  | (328) | ​ |  | 23,242 | ​ |  | (5,797) | ​ |  | 24,885 | ​ |  | (6,125)
Total Held-to-maturity Securities | ​ | $ | 8,156 | ​ | $ | (1,620) | ​ | $ | 73,609 | ​ | $ | (17,213) | ​ | $ | 81,765 | ​ | $ | (18,833)
Available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S Treasuries | ​ | $ | 39,019 | ​ | $ | (2,025) | ​ | $ | 19,800 | ​ | $ | (2,560) | ​ | $ | 58,819 | ​ | $ | (4,585)
U.S. government and federal agencies | ​ |  | 20,293 | ​ |  | (1,831) | ​ |  | 14,163 | ​ |  | (2,430) | ​ |  | 34,456 | ​ |  | (4,261)
Corporate bonds | ​ |  | 2,692 | ​ |  | (308) | ​ |  | — | ​ |  | — | ​ |  | 2,692 | ​ |  | (308)
Collateralized mortgage obligations | ​ |  | 20,001 | ​ |  | (1,507) | ​ |  | 20,210 | ​ |  | (4,470) | ​ |  | 40,211 | ​ |  | (5,977)
Tax-exempt municipal | ​ |  | 4,373 | ​ |  | (623) | ​ |  | — | ​ |  | — | ​ |  | 4,373 | ​ |  | (623)
Taxable municipal | ​ |  | 336 | ​ |  | (2) | ​ |  | 242 | ​ |  | (28) | ​ |  | 578 | ​ |  | (30)
Mortgage-backed | ​ |  | 165,485 | ​ |  | (13,529) | ​ |  | 59,932 | ​ |  | (10,167) | ​ |  | 225,417 | ​ |  | (23,696)
Total Available-for-sale Securities | ​ | $ | 252,199 | ​ | $ | (19,825) | ​ | $ | 114,347 | ​ | $ | (19,655) | ​ | $ | 366,546 | ​ | $ | (39,480)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2021
​ | ​ | Less than 12 Months | ​ | 12 Months or Longer | ​ | Total
​ | ​ | ​ | ​ | Gross | ​ | ​ | ​ | Gross | ​ | ​ | ​ | ​ | Gross
​ | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
(Dollars in thousands) | ​ | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
Held-to-maturity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S Treasuries | ​ | $ | 5,851 | ​ | $ | (150) | ​ | $ | — | ​ | $ | — | ​ | $ | 5,851 | ​ | $ | (150)
U.S. government and federal agencies | ​ |  | 31,617 | ​ |  | (645) | ​ |  | 3,376 | ​ |  | (81) | ​ |  | 34,993 | ​ |  | (726)
Collateralized mortgage obligations | ​ |  | 25,072 | ​ |  | (534) | ​ |  | — | ​ |  | — | ​ |  | 25,072 | ​ |  | (534)
Taxable municipal | ​ |  | 3,971 | ​ |  | (133) | ​ |  | 1,923 | ​ |  | (61) | ​ |  | 5,894 | ​ |  | (194)
Mortgage-backed | ​ |  | 27,995 | ​ |  | (573) | ​ |  | 3,452 | ​ |  | (74) | ​ |  | 31,447 | ​ |  | (647)
Total Held-to-maturity Securities | ​ | $ | 94,506 | ​ | $ | (2,035) | ​ | $ | 8,751 | ​ | $ | (216) | ​ | $ | 103,257 | ​ | $ | (2,251)
Available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S Treasuries | ​ | $ | 30,543 | ​ | $ | (411) | ​ | $ | — | ​ | $ | — | ​ | $ | 30,543 | ​ | $ | (411)
U.S. government and federal agencies | ​ |  | 14,154 | ​ |  | (301) | ​ |  | 6,877 | ​ |  | (223) | ​ |  | 21,031 | ​ |  | (524)
Collateralized mortgage obligations | ​ |  | 30,352 | ​ |  | (726) | ​ |  | — | ​ |  | — | ​ |  | 30,352 | ​ |  | (726)
Taxable municipal | ​ |  | 265 | ​ |  | (5) | ​ |  | — | ​ |  | — | ​ |  | 265 | ​ |  | (5)
Mortgage-backed | ​ |  | 93,129 | ​ |  | (1,280) | ​ |  | 918 | ​ |  | (46) | ​ |  | 94,047 | ​ |  | (1,326)
Total Available-for-sale Securities | ​ | $ | 168,443 | ​ | $ | (2,723) | ​ | $ | 7,795 | ​ | $ | (269) | ​ | $ | 176,238 | ​ | $ | (2,992)
​ U.S. Treasuries - The unrealized losses in 31 and 15 U.S. Treasury debt securities at September 30, 2022 and December 31, 2021, respectively, were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2022 or December 31, 2021. U.S. Government and Federal Agencies - The unrealized losses in 50 and 40 investments in direct obligations of U.S. government agencies at September 30, 2022 and December 31, 2021, respectively, were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2022 or December 31, 2021. Collateralized Mortgage Obligation Securities - The unrealized losses in 53 and 35 investments in collateralized mortgage obligation investments at September 30, 2022 and December 31, 2021, respectively, were caused by interest rate changes. The contractual cash flows of those investments are guaranteed by various agencies of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to change in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company did not consider the investment to be other-than-temporarily impaired at September 30, 2022 or December 31, 2021. Municipal Securities - The unrealized losses in 14 and eight investments in municipal securities at September 30, 2022 and December 31, 2021, respectively, were caused by interest rate changes. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2022 or December 31, 2021. Corporate Securities - The unrealized losses in three corporate securities at September 30, 2022 were caused by interest rate changes. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2022. Mortgage-Backed Securities - The unrealized losses in 218 and 75 investments in federal agency mortgage-backed securities at September 30, 2022 and December 31, 2021, respectively, were caused by interest rate changes. The contractual cash flows of those investments are guaranteed by various agencies of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to change in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2022 or December 31, 2021. The Company reviews each debt security for other-than-temporary impairment on at least a quarterly basis based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the security’s ratings, the Company’s best estimate of the present value of cash flows expected to be collected from debt securities, the intention with regards to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. The Company did not consider those investments to be other-than-temporary impaired at September 30, 2022 or December 31, 2021. Additionally, the Company has not recognized any other-than-temporary impairment on any of the investments owned as of September 30, 2022. The table below summarizes, by major security type, the contractual maturities of our investment securities as of September 30, 2022. Borrowers may have the right to call or prepay certain obligations and as such, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2022
​ | ​ | Amortized | ​ | Fair
(Dollars in thousands) |  | Cost |  | Value
Held-to-maturity |  | ​ |  |  | ​ |
Due in one year or less | ​ | $ | — | ​ | $ | —
Due after one year through five years | ​ |  | 993 | ​ |  | 840
Due after five years through ten years | ​ |  | 42,260 | ​ |  | 35,082
Due after ten years | ​ |  | 57,345 | ​ |  | 45,843
Total Held-to-maturity Securities | ​ | $ | 100,598 | ​ | $ | 81,765
Available-for-sale | ​ |  |  | ​ |  |
Due in one year or less | ​ | $ | 38 | ​ | $ | 38
Due after one year through five years | ​ |  | 99,559 | ​ |  | 92,262
Due after five years through ten years | ​ |  | 167,122 | ​ |  | 153,112
Due after ten years | ​ |  | 139,307 | ​ |  | 121,134
Total Available-for-sale Securities | ​ | $ | 406,026 | ​ | $ | 366,546
​ In the prevailing rate environments as of September 30, 2022 and December 31, 2021, the Company’s investment portfolio had an estimated weighted average remaining life of approximately 4.6 years and 4.5 years, respectively. The table below summarizes the carrying amount of restricted securities as of September 30, 2022 and December 31, 2021. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | September 30, 2022 |  | December 31, 2021
Federal Reserve Bank Stock | ​ | $ | 3,288 | ​ | $ | 3,275
Federal Home Loan Bank Stock | ​ |  | 1,073 | ​ |  | 1,616
Community Bankers’ Bank Stock | ​ |  | 60 | ​ |  | 60
Total Restricted Securities | ​ | $ | 4,421 | ​ | $ | 4,951
​ The Company held equity securities with readily determinable fair values totaling $1.9 million at September 30, 2022 and December 31, 2021. Changes in the fair value of these securities are reflected in earnings. Losses of $(107) thousand and $(14) thousand were recorded in other non-interest income in the Consolidated Statements of Income for the three months ended September 30, 2022 and September 30, 2021, respectively. A loss of $(498) thousand and a gain of $85 thousand was recorded in other non-interest income in the Consolidated Statements of Income for the nine months ended September 30, 2022 and September 30, 2021, respectively. These securities consist of mutual funds held in a trust and were obtained for the purpose of economically hedging changes in the Company’s nonqualified deferred compensation liability.

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

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration