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Investment Securities | 9 Months Ended
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Sep. 30, 2024
Investment Securities |
Investment Securities | Note 2— Investment Securities Available-for-Sale ​ Each of the securities in the Company’s available-for-sale investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All available-for-sale securities were current with no securities past due or on nonaccrual as of September 30, 2024 or December 31, 2023. ​ The following tables summarize the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses at September 30, 2024 and December 31, 2023. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2024
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost |  | Gains |  | (Losses) |  | Value
Available-for-sale | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S. Treasuries | ​ | $ | 30,892 | ​ | $ | — | ​ | $ | (888) | ​ | $ | 30,004
U.S. government and federal agencies | ​ |  | 13,939 | ​ |  | — | ​ |  | (318) | ​ |  | 13,621
Corporate bonds | ​ |  | 3,000 | ​ |  | — | ​ |  | (345) | ​ |  | 2,655
U.S. agency collateralized mortgage obligations | ​ |  | 38,508 | ​ |  | — | ​ |  | (5,602) | ​ |  | 32,906
Tax-exempt municipal | ​ |  | 1,379 | ​ |  | — | ​ |  | (158) | ​ |  | 1,221
Taxable municipal | ​ |  | 270 | ​ |  | — | ​ |  | (9) | ​ |  | 261
U.S. agency mortgage-backed | ​ |  | 68,438 | ​ |  | — | ​ |  | (4,457) | ​ |  | 63,981
Total Available-for-sale Securities | ​ | $ | 156,426 | ​ | $ | — | ​ | $ | (11,777) | ​ | $ | 144,649
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2023
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost |  | Gains |  | (Losses) |  | Value
Available-for-sale | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S. Treasuries | ​ | $ | 44,793 | ​ | $ | — | ​ | $ | (1,816) | ​ | $ | 42,977
U.S. government and federal agencies | ​ |  | 13,850 | ​ |  | — | ​ |  | (575) | ​ |  | 13,275
Corporate bonds | ​ |  | 3,000 | ​ |  | — | ​ |  | (477) | ​ |  | 2,523
U.S. agency collateralized mortgage obligations | ​ |  | 40,806 | ​ |  | — | ​ |  | (6,496) | ​ |  | 34,310
Tax-exempt municipal | ​ |  | 1,380 | ​ |  | — | ​ |  | (149) | ​ |  | 1,231
Taxable municipal | ​ |  | 606 | ​ |  | — | ​ |  | (19) | ​ |  | 587
U.S. agency mortgage-backed | ​ |  | 81,255 | ​ |  | — | ​ |  | (6,165) | ​ |  | 75,090
Total Available-for-sale Securities | ​ | $ | 185,690 | ​ | $ | — | ​ | $ | (15,697) | ​ | $ | 169,993
​ The Company did not sell or recognize any gain or loss for any securities for the three or nine months ended September 30, 2024. During the three months ended September 30, 2023, the Company sold available-for-sale securities with a total par value of $161.2 million resulting in a gross pre-tax loss of $17.1 million. During the nine months ended September 30, 2023, the Company sold available-for-sale securities with a total par value of $173.2 million resulting in a gross pre-tax loss of $17.3 million. Available-for-sale securities having a market value of $56.4 million and $90.3 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $59.1 million and $95.8 million at September 30, 2024 and December 31, 2023, respectively. The following tables summarize the fair value of securities available-for-sale at September 30, 2024 and December 31, 2023 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, 2024
​ | ​ | 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
Available-for-sale | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S. Treasuries | ​ | $ | — | ​ | $ | — | ​ | $ | 30,004 | ​ | $ | (888) | ​ | $ | 30,004 | ​ | $ | (888)
U.S. government and federal agencies | ​ |  | — | ​ |  | — | ​ |  | 13,621 | ​ |  | (318) | ​ |  | 13,621 | ​ |  | (318)
Corporate bonds | ​ |  | — | ​ |  | — | ​ |  | 2,655 | ​ |  | (345) | ​ |  | 2,655 | ​ |  | (345)
U.S. agency collateralized mortgage obligations | ​ |  | — | ​ |  | — | ​ |  | 32,906 | ​ |  | (5,602) | ​ |  | 32,906 | ​ |  | (5,602)
Tax-exempt municipal | ​ |  | — | ​ |  | — | ​ |  | 1,221 | ​ |  | (158) | ​ |  | 1,221 | ​ |  | (158)
Taxable municipal | ​ |  | — | ​ |  | — | ​ |  | 261 | ​ |  | (9) | ​ |  | 261 | ​ |  | (9)
U.S. agency mortgage-backed | ​ |  | — | ​ |  | — | ​ |  | 63,981 | ​ |  | (4,457) | ​ |  | 63,981 | ​ |  | (4,457)
Total Available-for-sale Securities | ​ | $ | — | ​ | $ | — | ​ | $ | 144,649 | ​ | $ | (11,777) | ​ | $ | 144,649 | ​ | $ | (11,777)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2023
​ | ​ | 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
Available-for-sale | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Treasuries | ​ | $ | — | ​ | $ | — | ​ | $ | 42,977 | ​ | $ | (1,816) | ​ | $ | 42,977 | ​ | $ | (1,816)
U.S. government and federal agencies | ​ |  | — | ​ |  | — | ​ |  | 13,275 | ​ |  | (575) | ​ |  | 13,275 | ​ |  | (575)
Corporate bonds | ​ | ​ | — | ​ |  | — | ​ |  | 2,523 | ​ |  | (477) | ​ |  | 2,523 | ​ |  | (477)
U.S. agency collateralized mortgage obligations | ​ |  | — | ​ |  | — | ​ |  | 34,310 | ​ |  | (6,496) | ​ |  | 34,310 | ​ |  | (6,496)
Tax-exempt municipal | ​ | ​ | — | ​ |  | — | ​ |  | 1,231 | ​ |  | (149) | ​ |  | 1,231 | ​ |  | (149)
Taxable municipal | ​ |  | — | ​ |  | — | ​ |  | 587 | ​ |  | (19) | ​ |  | 587 | ​ |  | (19)
U.S. agency mortgage-backed | ​ |  | — | ​ |  | — | ​ |  | 75,090 | ​ |  | (6,165) | ​ |  | 75,090 | ​ |  | (6,165)
Total Available-for-sale Securities | ​ | $ | — | ​ | $ | — | ​ | $ | 169,993 | ​ | $ | (15,697) | ​ | $ | 169,993 | ​ | $ | (15,697)
​ The Company had 151 and 158 securities in an unrealized loss position for 12 months or longer as of September 30, 2024 and December 31, 2023, respectively. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at September 30, 2024 and December 31, 2023 and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no allowance for credit losses on available-for-sale securities at September 30, 2024. ​ The table below summarizes the contractual maturities of our available-for-sale investment securities as of September 30, 2024. Issuers may have the right to call or prepay certain obligations, and as such, the expected maturities of our securities may differ from the scheduled contractual maturities presented below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2024
​ | ​ | Amortized | ​ | Fair
(Dollars in thousands) |  | Cost |  | Value
Available-for-sale | ​ |  |  | ​ |  |
Due in one year or less | ​ | $ | 23,710 | ​ | $ | 23,463
Due after one year through five years | ​ |  | 35,095 | ​ |  | 33,934
Due after five years through ten years | ​ |  | 40,145 | ​ |  | 38,487
Due after ten years | ​ |  | 57,476 | ​ |  | 48,765
Total Available-for-sale Securities | ​ | $ | 156,426 | ​ | $ | 144,649
​ In the prevailing rate environments as of September 30, 2024 and December 31, 2023, the Company’s available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 2.8 years and 3.0 years, respectively. Held-to-Maturity ​ Each of the securities in the Company’s held-to-maturity investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All held-to-maturity securities were current with no securities past due or on nonaccrual as of September 30, 2024 or December 31, 2023. ​ The following tables summarize the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized losses at September 30, 2024 and December 31, 2023, respectively. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2024
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost |  | Gains |  | (Losses) |  | Value
Held-to-maturity |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. Treasuries | ​ | $ | 6,002 | ​ | $ | — | ​ | $ | (501) | ​ | $ | 5,501
U.S. government and federal agencies | ​ |  | 35,359 | ​ |  | — | ​ |  | (3,874) | ​ |  | 31,485
U.S. agency collateralized mortgage obligations | ​ |  | 18,227 | ​ |  | — | ​ |  | (3,511) | ​ |  | 14,716
Taxable municipal | ​ |  | 6,045 | ​ |  | — | ​ |  | (887) | ​ |  | 5,158
U.S. agency mortgage-backed | ​ |  | 27,230 | ​ |  | — | ​ |  | (4,359) | ​ |  | 22,871
Total Held-to-maturity Securities | ​ | $ | 92,863 | ​ | $ | — | ​ | $ | (13,132) | ​ | $ | 79,731
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2023
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost |  | Gains |  | (Losses) |  | Value
Held-to-maturity |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. Treasuries | ​ | $ | 6,001 | ​ | $ | — | ​ | $ | (667) | ​ | $ | 5,334
U.S. government and federal agencies | ​ |  | 35,434 | ​ |  | — | ​ |  | (5,100) | ​ |  | 30,334
U.S agency collateralized mortgage obligations | ​ |  | 19,395 | ​ |  | — | ​ |  | (4,095) | ​ |  | 15,300
Taxable municipal | ​ |  | 6,057 | ​ |  | — | ​ |  | (1,101) | ​ |  | 4,956
U.S. agency mortgage-backed | ​ |  | 28,618 | ​ |  | — | ​ |  | (5,010) | ​ |  | 23,608
Total Held-to-maturity Securities | ​ | $ | 95,505 | ​ | $ | — | ​ | $ | (15,973) | ​ | $ | 79,532
​ Held-to-maturity securities having a market value of $44.3 million and $36.1 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $50.0 million and $42.3 million at September 30, 2024 and December 31, 2023, respectively. The Company evaluates the credit risk of its held-to-maturity securities on at least a quarterly basis. The Company estimates expected credit losses on held-to-maturity securities on an individual basis based on a probability of default/loss given default methodology primarily using security-level credit ratings. The primary indicators of credit quality for the Company’s held-to-maturity portfolio are security type and credit rating, which is influenced by a number of factors including obligor cash flow, geography, seniority, and others. The Company’s held-to-maturity securities with credit risk were comprised of municipal bonds and had a credit rating of AA or better as of September 30, 2024. All other held-to-maturity securities are covered by the explicit or implied guarantee of the United States government or one of its agencies. The Company did not have an allowance for credit losses on held-to-maturity securities as of September 30, 2024 or December 31, 2023. ​ The table below summarizes the contractual maturities of our held-to-maturity investment securities as of September 30, 2024. Issuers 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, 2024
​ | ​ | Amortized | ​ | Fair
(Dollars in thousands) |  | Cost |  | Value
Held-to-maturity |  | ​ |  |  | ​ |
Due in one year or less | ​ | $ | — | ​ | $ | —
Due after one year through five years | ​ |  | 25,428 | ​ |  | 23,212
Due after five years through ten years | ​ |  | 23,647 | ​ |  | 20,555
Due after ten years | ​ |  | 43,788 | ​ |  | 35,964
Total Held-to-maturity Securities | ​ | $ | 92,863 | ​ | $ | 79,731
​ In the prevailing rate environments as of September 30, 2024 and December 31, 2023, the Company’s held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 6.0 years and 6.7 years, respectively. ​ Restricted Securities ​ The table below summarizes the carrying amount of restricted securities as of September 30, 2024 and December 31, 2023. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | September 30, 2024 |  | December 31, 2023
Federal Reserve Bank Stock | ​ | $ | 3,323 | ​ | $ | 3,310
Federal Home Loan Bank Stock | ​ |  | 4,247 | ​ |  | 1,642
Community Bankers’ Bank Stock | ​ |  | 60 | ​ |  | 60
Total Restricted Securities | ​ | $ | 7,630 | ​ | $ | 5,012
​ Equity Securities The Company held equity securities with readily determinable fair values totaling $2.7 million and $2.8 million at September 30, 2024 and December 31, 2023, 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. Changes in the fair value of these securities are reflected in earnings. A gain of $139 thousand and a loss $(60) thousand were recorded in non-interest income in the Consolidated Statements of Income for the three months ended September 30, 2024 and September 30, 2023, respectively. Gains of $298 thousand and $112 thousand were recorded in non-interest income in the Consolidated Statements of Income for the nine months ended September 30, 2024 and September 30, 2023, respectively.

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