XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.24.3

Investments | 9 Months Ended
--- | ---
Sep. 30, 2024
Schedule of Investments [Abstract] |
Investments | 2. Investments A summary of the Company’s investment securities classified as available-for-sale and held-to-maturity as of September 30, 2024 and December 31, 2023 is as follows: Schedule of Available-for-sale and Held to Maturity Securities
(Dollars in thousands) |  | As of September 30, 2024 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Amortized |  |  | unrealized |  |  | unrealized |  |  | Estimated |
|  | cost |  |  | gains |  |  | losses |  |  | fair value |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. treasury securities |  | $ | 85,457 |  |  | $ | 1 |  |  | $ | (1,705 | ) |  | $ | 83,753 |
Municipal obligations, tax exempt |  |  | 114,184 |  |  |  | 94 |  |  |  | (2,152 | ) |  |  | 112,126 |
Municipal obligations, taxable |  |  | 76,753 |  |  |  | 723 |  |  |  | (2,347 | ) |  |  | 75,129 |
Agency mortgage-backed securities |  |  | 147,928 |  |  |  | 421 |  |  |  | (8,345 | ) |  |  | 140,004 |
Total available-for-sale |  | $ | 424,322 |  |  | $ | 1,239 |  |  | $ | (14,549 | ) |  | $ | 411,012 |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other |  | $ | 3,643 |  |  | $ | - |  |  | $ | (512 | ) |  | $ | 3,131 |
Total held-to-maturity |  | $ | 3,643 |  |  | $ | - |  |  | $ | (512 | ) |  | $ | 3,131 |
|  | As of December 31, 2023 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Amortized |  |  | unrealized |  |  | unrealized |  |  | Estimated |
|  | cost |  |  | gains |  |  | losses |  |  | fair value |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. treasury securities |  | $ | 99,340 |  |  | $ | - |  |  | $ | (3,673 | ) |  | $ | 95,667 |
Municipal obligations, tax exempt |  |  | 122,775 |  |  |  | 186 |  |  |  | (2,338 | ) |  |  | 120,623 |
Municipal obligations, taxable |  |  | 82,926 |  |  |  | 225 |  |  |  | (4,068 | ) |  |  | 79,083 |
Agency mortgage-backed securities |  |  | 169,656 |  |  |  | 247 |  |  |  | (12,507 | ) |  |  | 157,396 |
Total available-for-sale |  | $ | 474,697 |  |  | $ | 658 |  |  | $ | (22,586 | ) |  | $ | 452,769 |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other |  | $ | 3,555 |  |  | $ | - |  |  | $ | (506 | ) |  | $ | 3,049 |
Total held-to-maturity |  | $ | 3,555 |  |  | $ | - |  |  | $ | (506 | ) |  | $ | 3,049 |
The amortized cost of the above held-to-maturity investment securities has been further reduced by the allowance for credit losses of $91,000 at both September 30, 2024 and December 31, 2023. The tables above show that some of the securities in the Company’s available-for-sale and held-to-maturity investment portfolios had unrealized losses, or were temporarily impaired, as of both September 30, 2024 and December 31, 2023. This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. The following table summarizes available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2024 and December 31, 2023 along with the length of time each category of securities has been in a continuous loss position: Schedule of Available for Sale Securities Continuous Unrealized Loss Position Fair Value
|  |  |  |  | As of September 30, 2024 |
(Dollars in thousands) |  |  |  |  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | No. of |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | securities |  |  | value |  |  | losses |  |  | value |  |  | losses |  |  | value |  |  | losses |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  |  | 45 |  |  | $ | 1,764 |  |  | $ | (4 | ) |  | $ | 81,295 |  |  | $ | (1,701 | ) |  | $ | 83,059 |  |  | $ | (1,705 | )
Municipal obligations, tax exempt |  |  | 231 |  |  |  | 13,705 |  |  |  | (97 | ) |  |  | 82,828 |  |  |  | (2,055 | ) |  |  | 96,533 |  |  |  | (2,152 | )
Municipal obligations, taxable |  |  | 76 |  |  |  | - |  |  |  | - |  |  |  | 47,358 |  |  |  | (2,347 | ) |  |  | 47,358 |  |  |  | (2,347 | )
Agency mortgage-backed securities |  |  | 96 |  |  |  | - |  |  |  | - |  |  |  | 114,329 |  |  |  | (8,345 | ) |  |  | 114,329 |  |  |  | (8,345 | )
Total for available-for-sale |  |  | 448 |  |  | $ | 15,469 |  |  | $ | (101 | ) |  | $ | 325,810 |  |  | $ | (14,448 | ) |  | $ | 341,279 |  |  | $ | (14,549 | )
|  |  |  |  | As of December 31, 2023 |
|  |  |  |  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | No. of |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | securities |  |  | value |  |  | losses |  |  | value |  |  | losses |  |  | value |  |  | losses |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  |  | 47 |  |  | $ | 1,129 |  |  | $ | (7 | ) |  | $ | 93,833 |  |  | $ | (3,666 | ) |  | $ | 94,962 |  |  | $ | (3,673 | )
Municipal obligations, tax exempt |  |  | 229 |  |  |  | 31,468 |  |  |  | (337 | ) |  |  | 64,962 |  |  |  | (2,001 | ) |  |  | 96,430 |  |  |  | (2,338 | )
Municipal obligations, taxable |  |  | 110 |  |  |  | 17,278 |  |  |  | (151 | ) |  |  | 52,212 |  |  |  | (3,917 | ) |  |  | 69,490 |  |  |  | (4,068 | )
Agency mortgage-backed securities |  |  | 100 |  |  |  | 6,480 |  |  |  | (68 | ) |  |  | 128,512 |  |  |  | (12,439 | ) |  |  | 134,992 |  |  |  | (12,507 | )
Total for available-for-sale |  |  | 486 |  |  |  | 56,355 |  |  |  | (563 | ) |  |  | 339,519 |  |  |  | (22,023 | ) |  |  | 395,874 |  |  |  | (22,586 | )
The Company’s U.S. treasury portfolio consists of securities issued by the United States Department of the Treasury (“U.S. treasury”). The receipt of principal and interest on U.S. treasury securities is guaranteed by the full faith and credit of the U.S. government. Based on these factors, along with the Company’s intent to not sell the securities and its belief that it was more likely than not that the Company will not be required to sell the securities before recovery of its cost basis, the Company believed that the available-for-sale U.S. treasury securities identified in the table above were temporarily impaired as of September 30, 2024 and December 31, 2023. The Company’s portfolio of municipal obligations consists of both tax-exempt and taxable general obligations securities issued by various municipalities. As of September 30, 2024, the Company did not intend to sell and it was more likely than not that the Company would not be required to sell its municipal obligations in an unrealized loss position until the recovery of its cost basis. Due to the issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and the expectation that they will continue to do so, the evaluation of the fundamentals of the issuers’ financial condition and other objective evidence, the Company believed that the municipal obligations identified in the tables above were temporarily impaired as of September 30, 2024 and December 31, 2023. The Company’s agency mortgage-backed securities portfolio consists of securities underwritten to the standards of and guaranteed by the government-sponsored agencies of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and the Government National Mortgage Association. The receipt of principal, at par, and interest on agency mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believed that its agency mortgage-backed securities did not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the securities and the Company’s belief that it was more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believed that the agency mortgage-backed securities identified in the table above were temporarily impaired as of September 30, 2024 and December 31, 2023. The Company’s other investment securities portfolio consists of seven subordinated debentures issued by financial institutions. These investment securities were acquired in the Freedom Bank acquisition in 2022 and classified as held-to-maturity. The securities were issued in 2021 and 2022 with a 10 year maturity and a fixed rate for five years. The securities are callable after the end of the fixed rate term, beginning September 3, 2026. The following table provides information regarding the Company’s allowance for credit losses related to held-to-maturity investment securities: Schedule of Allowance for Credit Losses Related to Held-to-maturity Investment Securities
(Dollars in thousands) |  | 2024 |  |  | 2023 |
|  | Nine months ended |
|  | September 30, |
(Dollars in thousands) |  | 2024 |  |  | 2023 |
Balance at January 1, |  | $ | 91 |  |  | $ | - |
Balance |  | $ | 91 |  |  | $ | - |
Impact of adopting ASC 326 |  |  | - |  |  |  | 72 |
Provision for credit losses |  |  | - |  |  |  | 19 |
Balance at September 30, |  | $ | 91 |  |  | $ | 91 |
Balance |  | $ | 91 |  |  | $ | 91 |
The table below sets forth the amortized cost and fair value of investment securities at September 30, 2024. The table includes scheduled principal payments and estimated prepayments, based on observable market inputs, for agency mortgage-backed securities. Actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. Schedule of Investments Classified by Contractual Maturity Date
(Dollars in thousands) |  | Amortized |  |  | Estimated |
|  | cost |  |  | fair value |
Available-for-sale: |  |  |  |  |  |  |  |
Due in less than one year |  | $ | 49,872 |  |  | $ | 49,319 |
Due after one year but within five years |  |  | 237,634 |  |  |  | 228,782 |
Due after five years but within ten years |  |  | 98,484 |  |  |  | 95,207 |
Due after ten years |  |  | 38,332 |  |  |  | 37,704 |
Total available-for-sale |  | $ | 424,322 |  |  | $ | 411,012 |
Held-to-maturity: |  |  |  |  |  |  |  |
Due after one year but within five years |  |  | 3,643 |  |  |  | 3,131 |
Total held-to-maturity |  | $ | 3,643 |  |  | $ | 3,131 |
The Company did not record any sales of available-for-sale securities during the nine months ended September 30, 2024 or 2023. Securities with carrying values of $343.7 million and $380.4 million were pledged to secure public funds on deposit, repurchase agreements and as collateral for borrowings at September 30, 2024 and December 31, 2023, respectively. Except for U.S. federal agency obligations, no investment in a single issuer exceeded 10% of consolidated stockholders’ equity.

X
- 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
Name: | us-gaap_InvestmentHoldingsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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