XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Securities | 9 Months Ended
--- | ---
Sep. 30, 2022
Investments debt and equity securities [Abstract] |
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block | NOTE 4: SECURITIES At September 30, 2022 and December 31, 2021, respectively, all securities within the scope of ASC 320, Investments – Debt and Equity Securities, were classified as available-for-sale. The fair value and amortized cost for securities available- for-sale by contractual maturity at September 30, 2022 and December 31, 2021, respectively, are presented below. 1 year 1 to 5 5 to 10 After 10 Fair Gross Unrealized Amortized (Dollars in thousands) or less years years years Value Gains Losses Cost September 30, 2022 Agency obligations (a) $ — 50,826 74,490 — 125,316 — 16,305 $ 141,621 Agency MBS (a) — 382 34,606 186,320 221,308 — 36,601 257,909 State and political subdivisions 170 924 16,243 47,577 64,914 7 8,093 73,000 Total available-for-sale $ 170 52,132 125,339 233,897 411,538 7 60,999 $ 472,530 December 31, 2021 Agency obligations (a) $ 5,007 49,604 69,802 — 124,413 1,080 2,079 $ 125,412 Agency MBS (a) — 680 35,855 186,836 223,371 1,527 2,680 224,524 State and political subdivisions 170 647 15,743 57,547 74,107 3,611 270 70,766 Total available-for-sale $ 5,177 50,931 121,400 244,383 421,891 6,218 5,029 $ 420,702 (a) Includes securities issued by U.S. government agencies or government-sponsored entities. Securities with aggregate fair values of $ 210.7 million and $ 172.3 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, Federal Home Loan Bank of Atlanta (“FHLB of Atlanta”) advances, and for other purposes required or permitted by law. Included in other assets on the accompanying consolidated balance sheets are non-marketable equity investments. The carrying amounts of non-marketable equity investments were $ 1.2 million at September 30, 2022 and December 31, 2021, respectively. Non-marketable equity investments include FHLB of Atlanta Stock, Federal Reserve Bank of Atlanta (“FRB”) stock, and stock in a privately held financial institution. Gross Unrealized Losses and Fair Value The fair values and gross unrealized losses on securities at September 30, 2022 and December 31, 2021, respectively, segregated by those securities that have been in an unrealized loss position for less than 12 months and 12 months or longer, are presented below. Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses September 30, 2022: Agency obligations $ 64,689 5,097 60,627 11,208 $ 125,316 16,305 Agency MBS 117,411 14,777 103,897 21,824 221,308 36,601 State and political subdivisions 56,132 5,977 7,027 2,116 63,159 8,093 Total $ 238,232 25,851 171,551 35,148 $ 409,783 60,999 December 31, 2021: Agency obligations $ 49,799 1,025 26,412 1,054 $ 76,211 2,079 Agency MBS 130,110 1,555 38,611 1,125 168,721 2,680 State and political subdivisions 7,960 109 3,114 161 11,074 270 Total $ 187,869 2,689 68,137 2,340 $ 256,006 5,029 For the securities in the previous table, the Company does not have the intent to sell and has determined it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost basis, which may be maturity. On a quarterly basis, the Company also assesses each security for credit impairment. For debt securities, the Company evaluates, where necessary, whether credit impairment exists by comparing the present value of the expected cash flows to the securities’ amortized cost basis. In determining whether a loss is temporary, the Company considers all relevant information including: ● the length of time and the extent to which the fair value has been less than the amortized cost basis; ● adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of MBS, in the financial condition of the underlying obligors on the assets securing such MBS, including changes in technology or the discontinuance of a segment of the business that may affect the future earnings potential of the issuer or underlying loan obligors of the security or changes in the quality of the credit enhancement); ● the historical and implied volatility of the security’s fair value; ● the payment structure of the debt security and, in the case of variable rate securities, the likelihood of the issuer being able to make payments that may increase in the future; ● failure of the issuer of the security to make scheduled interest or principal payments; ● any changes to the rating of the security by a rating agency; and ● recoveries or additional declines in fair value subsequent to the balance sheet date. Agency obligations The unrealized losses associated with agency obligations were primarily driven by increases in market interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government- sponsored entities and did not have any credit losses given the explicit government guarantee or other government support. Agency mortgage-backed securities (“MBS”) The unrealized losses associated with agency MBS were primarily driven by increases in market interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government-sponsored entities and did not have any credit losses given the explicit government guarantee or other government support. Securities of U.S. states and political subdivisions The unrealized losses associated with securities of U.S. states and political subdivisions were primarily driven by increases in market interest rates and were not due to the credit quality of the securities. Some of these securities are guaranteed by a bond insurer, but management did not rely on such guarantees in making its investment decision. These securities will continue to be monitored as part of the Company’s quarterly impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond insurers. As a result, the Company expects to recover the entire amortized cost basis of these securities. The carrying values of the Company’s investment securities could decline in the future if market interest rates continue to increase. If the financial condition of an issuer (other than the U.S. government or its agencies’ obligations) deteriorates and the Company determines it is probable that it will not recover the entire amortized cost basis for the security, there is a risk that other-than-temporary impairment charges may occur in the future. The Company will evaluate whether any loss is temporary or not. Other-Than-Temporarily Impaired Securities Credit-impaired debt securities are debt securities where the Company has written down the amortized cost basis of a security for other-than-temporary impairment and the credit component of the loss is recognized in earnings. At September 30, 2022 and December 31, 2021, the Company had no credit-impaired debt securities and there were no additions or reductions in the credit loss component of credit-impaired debt securities during the quarters and nine months ended September 30, 2022 and 2021, respectively. Realized Gains and Losses The following table presents the gross realized gains and losses on sales of securities. Quarter ended September 30, Nine months ended September 30, (Dollars in thousands) 2022 2021 2022 2021 Gross realized gains $ 44 15 $ 44 15 Realized gains, net $ 44 15 $ 44 15

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 https://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 https://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 https://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 https://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