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Securities
3 Months Ended
Mar. 31, 2023
Investments debt and equity securities [Abstract]  
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block
NOTE 4: SECURITIES
At March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022,
 
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
March 31, 2023
Agency obligations (a)
$
5,300
59,997
61,883
127,180
13,574
$
140,754
Agency MBS (a)
6,984
27,601
181,114
215,699
29,522
245,221
State and political subdivisions
300
1,032
15,581
45,900
62,813
49
4,300
67,064
Total available-for-sale
$
5,600
68,013
105,065
227,014
405,692
49
47,396
$
453,039
December 31, 2022
Agency obligations (a)
$
4,935
50,746
69,936
125,617
15,826
$
141,443
Agency MBS (a)
7,130
27,153
183,877
218,160
33,146
251,306
State and political subdivisions
300
642
15,130
45,455
61,527
11
5,681
67,197
Total available-for-sale
$
5,235
58,518
112,219
229,332
405,304
11
54,653
$
459,946
(a) Includes securities issued by U.S. government agencies or government-sponsored
 
entities.
Securities with aggregate fair values of $
207.6
 
million and $
208.3
 
million at March 31, 2023 and December 31, 2022,
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 March 31, 2023 and December 31, 2022,
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 March 31, 2023
 
and December 31, 2022, 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
March 31, 2023:
Agency obligations
 
$
18,263
950
108,917
12,624
$
127,180
13,574
Agency MBS
23,127
1,047
192,572
28,475
215,699
29,522
State and political subdivisions
19,186
278
35,741
4,022
54,927
4,300
Total
 
$
60,576
2,275
337,230
45,121
$
397,806
47,396
December 31, 2022:
Agency obligations
 
$
55,931
4,161
69,686
11,665
$
125,617
15,826
Agency MBS
70,293
5,842
147,867
27,304
218,160
33,146
State and political subdivisions
44,777
2,176
13,043
3,505
57,820
5,681
Total
 
$
171,001
12,179
230,596
42,474
$
401,597
54,653
For the securities in the previous table, the Company assesses whether or not it intends to
 
sell or is 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.
 
Because the Company currently does not intend to sell those securities that have an
 
unrealized loss at March 31, 2023 and it
is not more-likely-than-not that the Company will be required
 
to sell the security before recovery of their amortized cost
bases, which may be maturity,
 
the Company has determined that no credit loss is necessary.
 
In addition, the Company
evaluates whether any portion of the decline in fair value of available-for-sale
 
securities is the result of credit deterioration,
which would require the recognition of a provision to increase the allowance
 
for credit losses. Such evaluations consider the
extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings
 
and any other known
adverse conditions related to the specific security.
 
The unrealized losses associated with available-for-sale
 
securities at
March 31, 2023 are driven by changes in market interest rates and are not due to the credit quality of the
 
securities, and
accordingly, no allowance
 
for credit losses is considered necessary related to available-for-sale
 
securities at March 31,
2023. These securities will continue to be monitored as a part of the Company's ongoing
 
evaluation of credit quality.
Management evaluates the financial performance of the issuers on a quarterly basis to determine
 
if it is probable that the
issuers can make all contractual principal and interest payments.
Realized Gains and Losses
 
The Company had no realized gains and losses on sale of securities during the quarters ended
 
March 31, 2023 and 2022,
respectively.