Securities

9 Months Ended

Sep. 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 September 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 September 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

September 30, 2023

Agency obligations (a)

$

15,063

49,036

58,651

—

122,750

—

17,152

$

139,902

Agency MBS (a)

—

10,095

26,845

155,517

192,457

—

39,581

232,038

State and political subdivisions

300

981

15,488

41,310

58,079

—

8,717

66,796

Total available-for-sale

$

15,363

60,112

100,984

196,827

373,286

—

65,450

$

438,736

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 $

224.6

 million and $

208.3

 million at September 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. 

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, 2023 and $

1.2

 million at December 31,

2022. Non-marketable equity investments include FHLB of Atlanta tock, 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, 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

September 30, 2023:

Agency obligations 

$

—

—

122,750

17,152

$

122,750

17,152

Agency MBS

84

3

192,373

39,578

192,457

39,581

State and political subdivisions

12,726

755

44,313

7,962

57,039

8,717

Total 

$

12,810

758

359,436

64,692

$

372,246

65,450

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 September 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 September 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 for available-for-sale securities at

September 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 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)

2023

2022

2023

2022

Gross realized gains

$

—

44

$

—

44

Realized gains, net

$

—

44

$

—

44