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Securities | 9 Months Ended
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Sep. 30, 2023
Securities |
Securities | NOTE 2: Securities ​ On January 1, 2023, the Corporation adopted ASC 326, which made changes to accounting for available for sale debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. In addition, ASC 326 requires financial assets measured at amortized cost to measure an expected credit loss under the CECL methodology that requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. All securities information presented as of September 30, 2023 is in accordance with ASC 326. All securities information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. For further discussion on the Corporation’s accounting policies and policy elections related to the accounting standard update refer to Note 1. ​ The Corporation’s debt securities, all of which are classified as available for sale, are summarized as follows: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2023 |
​ |  | ​ | ​ |  | Gross |  | Gross |  | ​ | ​ |
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | ​ |
(Dollars in thousands) | ​ | Cost | ​ | Gains | ​ | Losses | ​ | Fair Value |
U.S. Treasury securities | ​ | $ | 52,785 | ​ | $ | — | ​ | $ | (1,391) | ​ | $ | 51,394 | ​
U.S. government agencies and corporations | ​ | ​ | 106,455 | ​ | ​ | — | ​ | ​ | (12,405) | ​ | ​ | 94,050 | ​
Mortgage-backed securities | ​ |  | 183,552 | ​ |  | 2 | ​ |  | (23,239) | ​ |  | 160,315 | ​
Obligations of states and political subdivisions | ​ |  | 142,593 | ​ |  | 97 | ​ | ​ | (8,525) | ​ |  | 134,165 | ​
Corporate and other debt securities | ​ | ​ | 25,212 | ​ | ​ | — | ​ | ​ | (4,483) | ​ | ​ | 20,729 | ​
​ | ​ | $ | 510,597 | ​ | $ | 99 | ​ | $ | (50,043) | ​ | $ | 460,653 | ​
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2022 |
​ |  | ​ | ​ |  | Gross |  | Gross |  | ​ | ​ |
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | ​ |
(Dollars in thousands) | ​ | Cost | ​ | Gains | ​ | Losses | ​ | Fair Value |
U.S. Treasury securities | ​ | $ | 60,886 | ​ | $ | — | ​ | $ | (2,053) | ​ | $ | 58,833 | ​
U.S. government agencies and corporations | ​ | ​ | 143,241 | ​ | ​ | — | ​ | ​ | (12,967) | ​ | ​ | 130,274 | ​
Mortgage-backed securities | ​ |  | 200,393 | ​ |  | 65 | ​ |  | (20,540) | ​ |  | 179,918 | ​
Obligations of states and political subdivisions | ​ |  | 127,317 | ​ |  | 300 | ​ |  | (6,790) | ​ |  | 120,827 | ​
Corporate and other debt securities | ​ |  | 25,291 | ​ |  | — | ​ |  | (2,552) | ​ |  | 22,739 | ​
​ | ​ | $ | 557,128 | ​ | $ | 365 | ​ | $ | (44,902) | ​ | $ | 512,591 | ​
​ The amortized cost and estimated fair value of securities at September 30, 2023, by the earlier of contractual maturity or expected maturity, are shown below. The Corporation has elected to exclude accrued interest receivable, totaling $2.82 million at September 30, 2023, from the amortized cost basis of securities. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2023 |
​ |  | Amortized |  | ​ |
(Dollars in thousands) | ​ | Cost | ​ | Fair Value |
Due in one year or less | ​ | $ | 122,708 | ​ | $ | 117,683 | ​
Due after one year through five years | ​ |  | 180,708 | ​ |  | 161,000 | ​
Due after five years through ten years | ​ |  | 123,319 | ​ |  | 105,599 | ​
Due after ten years | ​ |  | 83,862 | ​ |  | 76,371 | ​
​ | ​ | $ | 510,597 | ​ | $ | 460,653 | ​
​ The following table presents the gross realized gains and losses on and the proceeds from the sales, maturities and calls of securities. During the three and nine months ended September 30, 2023 and 2022 there were no sales of securities. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 | ​ | 2022
Realized gains from sales, maturities and calls of securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gross realized gains | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Gross realized losses | ​ |  | — | ​ |  | — | ​ |  | (5) | ​ |  | —
Net realized losses | ​ | $ | — | ​ | $ | — | ​ | $ | (5) | ​ | $ | —
Proceeds from sales, maturities, calls and paydowns of securities | ​ | $ | 30,719 | ​ | $ | 12,700 | ​ | $ | 75,560 | ​ | $ | 43,681
​ The Corporation pledges securities primarily to secure public deposits, repurchase agreements and lines of credit that provide liquidity to the Corporation and C&F Bank. Securities with an aggregate amortized cost of $215.22 million and an aggregate fair value of $190.51 million were pledged at September 30, 2023. Securities with an aggregate amortized cost of $237.15 million and an aggregate fair value of $213.58 million were pledged at December 31, 2022. ​ Securities in an unrealized loss position at September 30, 2023, by duration of the period of the unrealized loss, are shown below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less Than 12 Months | ​ | 12 Months or More | ​ | Total |
​ |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized |
(Dollars in thousands) | ​ | Value | ​ | Loss | ​ | Value | ​ | Loss | ​ | Value | ​ | Loss |
U.S. Treasury securities | ​ | $ | — | ​ | ​ | — | ​ | $ | 51,394 | ​ | $ | 1,391 | ​ | $ | 51,394 | ​ | $ | 1,391 | ​
U.S. government agencies and corporations | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 94,050 | ​ | ​ | 12,405 | ​ | ​ | 94,050 | ​ | ​ | 12,405 | ​
Mortgage-backed securities | ​ |  | 10,704 | ​ | ​ | 697 | ​ |  | 149,535 | ​ |  | 22,542 | ​ |  | 160,239 | ​ |  | 23,239 | ​
Obligations of states and political subdivisions | ​ |  | 44,075 | ​ | ​ | 1,657 | ​ |  | 71,081 | ​ |  | 6,868 | ​ |  | 115,156 | ​ |  | 8,525 | ​
Corporate and other debt securities | ​ | ​ | 3,260 | ​ | ​ | 489 | ​ | ​ | 17,469 | ​ | ​ | 3,994 | ​ | ​ | 20,729 | ​ | ​ | 4,483 | ​
Total temporarily impaired securities | ​ | $ | 58,039 | ​ | $ | 2,843 | ​ | $ | 383,529 | ​ | $ | 47,200 | ​ | $ | 441,568 | ​ | $ | 50,043 | ​
​ There were 615 debt securities with a fair value below the amortized cost basis, totaling $441.57 million of aggregate fair value as of September 30, 2023. The Corporation concluded that a credit loss does not exist in its securities portfolio at September 30, 2023, and no impairment loss has been recognized based on the fact that (1) changes in fair value were caused primarily by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Corporation intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Corporation will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Corporation’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments. ​ Securities in an unrealized loss position at December 31, 2022, by duration of the period of the unrealized loss, are shown below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less Than 12 Months | ​ | 12 Months or More | ​ | Total |
​ |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized |
(Dollars in thousands) | ​ | Value | ​ | Loss | ​ | Value | ​ | Loss | ​ | Value | ​ | Loss |
U.S. Treasury securities | ​ | $ | 50,556 | ​ | $ | 1,368 | ​ | $ | 8,277 | ​ | $ | 685 | ​ | $ | 58,833 | ​ | $ | 2,053 | ​
U.S. government agencies and corporations | ​ | ​ | 71,948 | ​ | ​ | 1,578 | ​ | ​ | 58,326 | ​ | ​ | 11,389 | ​ | ​ | 130,274 | ​ | ​ | 12,967 | ​
Mortgage-backed securities | ​ | ​ | 73,301 | ​ |  | 5,441 | ​ |  | 104,563 | ​ |  | 15,099 | ​ |  | 177,864 | ​ |  | 20,540 | ​
Obligations of states and political subdivisions | ​ | ​ | 60,838 | ​ | ​ | 2,434 | ​ | ​ | 32,120 | ​ | ​ | 4,356 | ​ | ​ | 92,958 | ​ | ​ | 6,790 | ​
Corporate and other debt securities | ​ |  | 15,049 | ​ |  | 1,702 | ​ |  | 6,681 | ​ |  | 850 | ​ |  | 21,730 | ​ |  | 2,552 | ​
Total temporarily impaired securities | ​ | $ | 271,692 | ​ | $ | 12,523 | ​ | $ | 209,967 | ​ | $ | 32,379 | ​ | $ | 481,659 | ​ | $ | 44,902 | ​
​ The Corporation’s investment in restricted stock totaled $4.80 million at September 30, 2023 and $1.12 million at December 31, 2022 and consisted of Federal Home Loan Bank of Atlanta (FHLB) stock. Restricted stock is generally viewed as a long-term investment, which is carried at cost because there is no market for the stock other than the FHLBs. Therefore, when evaluating restricted stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing any temporary decline in value. The Corporation did not consider its investment in restricted stock to be impaired at September 30, 2023 and no impairment has been recognized.

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