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Securities
9 Months Ended
Sep. 30, 2025
Investments debt and equity securities [Abstract]  
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block
NOTE 2: SECURITIES
At September 30, 2025 and December 31, 2024, 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, 2025
and December 31, 2024, 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, 2025
Agency obligations (a)
$
35,343
18,093
53,436
5,164
$
58,600
Agency MBS (a)
20,188
17,185
128,210
165,583
20,629
186,212
State and political subdivisions
1,653
9,095
6,653
17,401
1
2,346
19,746
Total available-for-sale
$
57,184
44,373
134,863
236,420
1
28,139
$
264,558
December 31, 2024
Agency obligations (a)
$
26,655
25,756
52,411
7,734
$
60,145
Agency MBS (a)
10
19,863
14,904
138,899
173,676
28,901
202,577
State and political subdivisions
966
8,244
7,715
16,925
2,901
19,826
Total available-for-sale
$
10
47,484
48,904
146,614
243,012
39,536
$
282,548
(a) Includes securities issued by U.S. government agencies or government
-sponsored entities.
Expected lives of these
securities may differ from contractual maturities because (i) issuers may
have the right to call or repay such securities
obligations with or without prepayment penalties and (ii) borrowers of
the loans included in Agency MBS generally
have the right to prepay such loan in whole or in part at any time.
Securities with aggregate fair values of $
202.8
million and $
222.3
million at September 30, 2025 and December 31, 2024,
respectively, were
pledged to secure public deposits,
securities sold under agreements to repurchase, FHLB advances, and
for other purposes required or permitted by law.
Included in other assets on the accompanying consolidated balance sheets include
non-marketable equity investments.
The
carrying amounts of non-marketable equity investments were $
1.4
million at September 30, 2025 and December 31, 2024,
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, 2025 and December 31, 2024, 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, 2025:
Agency obligations
$
53,436
5,164
$
53,436
5,164
Agency MBS
96
1
165,487
20,628
165,583
20,629
State and political subdivisions
14,610
2,346
14,610
2,346
Total
$
96
1
233,533
28,138
$
233,629
28,139
December 31, 2024:
Agency obligations
$
52,411
7,734
$
52,411
7,734
Agency MBS
7
173,669
28,901
173,676
28,901
State and political subdivisions
1,798
17
14,776
2,884
16,574
2,901
Total
$
1,805
17
240,856
39,519
$
242,661
39,536
For the securities in the previous table, the Company assesses whether or not
it intends to sell the security, or more
likely
than not will be required to sell the security,
before recovery of its amortized cost basis which would require a write-down
to fair value through net income.
Because the Company currently does not intend to sell those securities that have an
unrealized loss at September 30, 2025, and it is not more-likely-than-not
that the Company will be required to sell the
securities before recovery of their amortized cost bases, which may be
maturity, the Company
has determined that no write-
down is necessary.
In addition, the Company evaluates whether any portion of the decline in fair
value of securities is the
result of credit deterioration, which would require the recognition of
an 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 securities at September 30,
2025 are driven by changes in 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 securities at September
30, 2025.
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 or losses on sale of securities during the quarter
and nine months ended September 30,
2025 and 2024, respectively.