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Securities

6 Months Ended

Jun. 30, 2025

NOTE 2: Securities

The Corporation’s debt securities, all of which are classified as available for sale, are summarized in the following tables. The Corporation has elected to exclude accrued interest receivable, totaling $2.36 million and $2.32 million at June 30, 2025 and December 31, 2024, respectively, from the amortized cost basis of securities.

June 30, 2025

Gross

Gross

Amortized

Unrealized

Unrealized

(Dollars in thousands)

Cost

Gains

Losses

Fair Value

U.S. Treasury securities

$

4,990

$

—

$

(192)

$

4,798

U.S. government agencies and corporations

67,774

—

(6,516)

61,258

Mortgage-backed securities

212,941

349

(11,757)

201,533

Obligations of states and political subdivisions

150,247

257

(5,764)

144,740

Corporate and other debt securities

23,750

12

(1,585)

22,177

Total

$

459,702

$

618

$

(25,814)

$

434,506


		December 31, 2024
					Gross			Gross
		Amortized			Unrealized			Unrealized
(Dollars in thousands)		Cost			Gains			Losses			Fair Value
U.S. Treasury securities		$	10,985		$	—		$	(285)		$	10,700
U.S. government agencies and corporations			68,772			—			(8,113)			60,659
Mortgage-backed securities			197,923			69			(15,556)			182,436
Obligations of states and political subdivisions			147,532			691			(4,613)			143,610
Corporate and other debt securities			23,404			29			(2,213)			21,220
Total		$	448,616		$	789		$	(30,780)		$	418,625

The amortized cost and estimated fair value of securities at June 30, 2025, by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.


		June 30, 2025
		Amortized
(Dollars in thousands)		Cost			Fair Value
Due in one year or less		$	71,670		$	69,510
Due after one year through five years			187,528			176,739
Due after five years through ten years			126,996			118,560
Due after ten years			73,508			69,697
Total		$	459,702		$	434,506

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 six months ended June 30, 2025 and 2024, there were no sales of securities.


		Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)		2025			2024			2025			2024
Realized gains from sales, maturities and calls of securities:
Gross realized gains		$	—		$	—		$	—		$	—
Gross realized losses			—			—			—			—
Net realized losses		$	—		$	—		$	—		$	—
Proceeds from sales, maturities, calls and paydowns of securities		$	14,157		$	35,572		$	31,333		$	72,896

The Corporation pledges securities primarily to secure municipal deposits, repurchase agreements and lines of credit that provide liquidity to the Corporation and C&F Bank. Securities with an aggregate amortized cost of $152.14 million and an aggregate fair value of $141.01 million were pledged at June 30, 2025. Securities with an aggregate amortized cost of $212.92 million and an aggregate fair value of $196.10 million were pledged at December 31, 2024.

Securities in an unrealized loss position at June 30, 2025, 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

$

—

$

—

$

4,798

$

192

$

4,798

$

192

U.S. government agencies and corporations

—

—

61,258

6,516

61,258

6,516

Mortgage-backed securities

57,111

1,112

112,751

10,645

169,862

11,757

Obligations of states and political subdivisions

49,939

1,780

59,579

3,984

109,518

5,764

Corporate and other debt securities

489

12

18,427

1,573

18,916

1,585

Total

$

107,539

$

2,904

$

256,813

$

22,910

$

364,352

$

25,814

There were 598 debt securities with a fair value below the amortized cost basis, totaling $364.35 million of aggregate fair value as of June 30, 2025. The Corporation concluded that a credit loss did not exist in its securities portfolio at June 30, 2025, and no allowance for credit losses has been recognized based on the fact that (1) changes in fair value were caused primarily by fluctuations in interest rates or other market factors, such as changes in demand, (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, 2024, 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		$	—		$	—		$	10,700		$	285		$	10,700		$	285
U.S. government agencies and corporations			—			—			60,659			8,113			60,659			8,113
Mortgage-backed securities			53,734			1,253			123,307			14,303			177,041			15,556
Obligations of states and political subdivisions			31,981			412			66,743			4,201			98,724			4,613
Corporate and other debt securities			474			26			19,717			2,187			20,191			2,213
Total		$	86,189		$	1,691		$	281,126		$	29,089		$	367,315		$	30,780

The Corporation’s investment in restricted stock totaled $4.25 million at June 30, 2025 and $3.59 million at December 31, 2024 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 to be redeemed or repurchased by the FHLB. 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 June 30, 2025 and no impairment has been recognized.