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Securities
6 Months Ended
Jun. 30, 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 June 30, 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 June 30, 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
June 30, 2023
Agency obligations (a)
$
5,306
59,203
60,643
125,152
15,422
$
140,574
Agency MBS (a)
6,687
31,155
169,138
206,980
31,769
238,749
State and political subdivisions
300
1,014
15,354
45,279
61,947
14
4,998
66,931
Total available-for-sale
$
5,606
66,904
107,152
214,417
394,079
14
52,189
$
446,254
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 $
215.9
 
million and $
208.3
 
million at June 30, 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 June 30, 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 June 30, 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
June 30, 2023:
Agency obligations
 
$
17,994
1,243
107,158
14,179
$
125,152
15,422
Agency MBS
22,246
1,332
184,734
30,437
206,980
31,769
State and political subdivisions
17,358
330
39,727
4,668
57,085
4,998
Total
 
$
57,598
2,905
331,619
49,284
$
389,217
52,189
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 June 30, 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 provision for 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 June 30, 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
June 30, 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 quarter
 
and six months ended June 30, 2023
and 2022, respectively.