Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES

v3.24.3
INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2024
Investment Securities [Abstract]  
Investment Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE 2 –
INVESTMENT SECURITIES
Investment Portfolio Composition
. The following table summarizes the amortized cost and related fair value of investment
securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”)
 
and the corresponding amounts of gross
 
unrealized gains and losses.
Available for
 
Sale
Amortized
Unrealized
Unrealized
Allowance for
Fair
(Dollars in Thousands)
Cost
Gains
Losses
Credit Losses
Value
September 30, 2024
U.S. Government Treasury
$
51,082
$
222
$
658
$
-
$
50,646
U.S. Government Agency
130,176
63
4,909
-
125,330
States and Political Subdivisions
43,258
2
3,239
(4)
40,017
Mortgage-Backed Securities
(1)
68,054
1
8,274
-
59,781
Corporate Debt Securities
56,328
-
3,932
(79)
52,317
Other Securities
(2)
8,096
-
-
-
8,096
Total
 
$
356,994
$
288
$
21,012
$
(83)
$
336,187
December 31, 2023
U.S. Government Treasury
$
25,947
$
1
$
1,269
$
-
$
24,679
U.S. Government Agency
152,983
104
8,053
-
145,034
States and Political Subdivisions
43,951
1
4,861
(8)
39,083
Mortgage-Backed Securities
(1)
73,015
2
9,714
-
63,303
Corporate Debt Securities
63,600
-
6,031
(17)
57,552
Other Securities
(2)
8,251
-
-
-
8,251
Total
 
$
367,747
$
108
$
29,928
$
(25)
$
337,902
Held to Maturity
Amortized
Unrealized
Unrealized
Fair
(Dollars in Thousands)
Cost
Gains
Losses
Value
September 30, 2024
U.S. Government Treasury
$
397,977
$
-
$
7,424
$
390,553
Mortgage-Backed Securities
(1)
163,503
156
11,884
151,775
Total
 
$
561,480
$
156
$
19,308
$
542,328
December 31, 2023
U.S. Government Treasury
$
457,681
$
-
$
16,492
$
441,189
Mortgage-Backed Securities
(1)
167,341
13
16,792
150,562
Total
 
$
625,022
$
13
$
33,284
$
591,751
(1)
 
Comprised of residential mortgage-backed
 
securities.
(2)
 
Includes Federal Home Loan Bank and Federal Reserve Bank stock, recorded
 
at cost of $
3.0
 
million and $
5.1
 
million,
respectively,
 
at September 30, 2024 and $
3.2
 
million and $
5.1
 
million, respectively,
 
at December 31, 2023.
At September 30, 2024 and December 31, 2023, the investment portfolio
 
had $
7.0
 
million and $
3.5
 
million, respectively, in equity
securities. These securities do not have a readily determinable fair value
 
and were not credit impaired.
 
Securities with an amortized cost of $
413.6
 
million and $
578.5
 
million at September 30, 2024 and December 31, 2023, respectively,
were pledged to secure public deposits and for other purposes.
The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required
 
to own capital stock in the FHLB based
generally upon the balances of residential and commercial real estate loans and FHLB
 
advances.
 
The Bank’s investment in FHLB
stock is a restricted investment carried at par value ($
100
 
per share), which approximates its fair value.
 
No ready market exists for the
FHLB stock, and it has no quoted market value; however,
 
the Bank may request redemption at par value of any stock in excess of the
amount the Bank is required to hold.
 
Stock redemptions are made at the discretion of the FHLB.
 
Investment Sales.
There were
no
 
sales of investment securities for the three and nine months ended September 30,
 
2024 and $
30.4
million in sales for the three and nine months ended September 30, 2023.
 
Maturity Distribution
.
 
At September 30, 2024, the Company’s
 
investment securities had the following maturity distribution based on
contractual maturity.
 
Expected maturities may differ from contractual maturities because borrowers
 
may have the right to call or
prepay obligations.
 
Mortgage-backed securities (“MBS”) and certain amortizing U.S. government
 
agency securities are shown
separately because they are not due at a certain maturity date.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for
 
Sale
Held to Maturity
(Dollars in Thousands)
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Due in one year or less
$
32,570
 
$
31,822
 
$
227,491
 
$
224,457
Due after one year through five years
 
152,256
 
 
145,849
 
 
170,486
 
 
166,096
Due after five year through ten years
 
26,898
 
 
23,813
 
 
-
 
 
-
Mortgage-Backed Securities
68,054
59,781
163,503
151,775
U.S. Government Agency
 
69,120
 
 
66,826
 
 
-
 
 
-
Other Securities
 
8,096
 
 
8,096
 
 
-
 
 
-
Total
 
$
356,994
 
$
336,187
 
$
561,480
 
$
542,328
Unrealized Losses on Investment Securities.
 
The following table summarizes the available for sale and held to maturity investment
securities with unrealized losses aggregated by major security type and length
 
of time in a continuous unrealized loss position:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less Than
Greater Than
12 Months
12 Months
Total
Fair
Unrealized
Fair
Unrealized
Fair
Unrealized
(Dollars in Thousands)
Value
Losses
Value
Losses
Value
Losses
September 30, 2024
Available for
 
Sale
U.S. Government Treasury
$
-
 
$
-
 
$
17,490
 
$
658
 
$
17,490
 
$
658
U.S. Government Agency
10,677
32
106,912
4,877
117,589
4,909
States and Political Subdivisions
1,904
 
140
 
37,262
 
3,099
 
39,166
 
3,239
Mortgage-Backed Securities
-
 
-
 
59,709
 
8,274
 
59,709
 
8,274
Corporate Debt Securities
979
 
112
 
51,417
 
3,820
 
52,396
 
3,932
Total
 
$
13,560
 
$
284
 
$
272,790
 
$
20,728
 
$
286,350
 
$
21,012
 
Held to Maturity
U.S. Government Treasury
 
117,561
 
1,063
 
 
272,992
 
6,361
 
 
390,553
 
 
7,424
Mortgage-Backed Securities
2,954
 
4
 
130,035
 
11,880
 
132,989
 
11,884
Total
 
$
120,515
 
$
1,067
 
$
403,027
 
$
18,241
 
$
523,542
 
$
19,308
December 31, 2023
Available for
 
Sale
 
U.S. Government Treasury
$
-
 
$
-
 
$
19,751
 
$
1,269
 
$
19,751
 
$
1,269
U.S. Government Agency
12,890
74
121,220
7,979
134,110
8,053
States and Political Subdivisions
 
1,149
 
 
31
 
 
37,785
 
 
4,830
 
 
38,934
 
 
4,861
Mortgage-Backed Securities
23
-
63,195
9,714
63,218
9,714
Corporate Debt Securities
-
-
57,568
6,031
57,568
6,031
Total
 
$
14,062
 
$
105
 
$
299,519
 
$
29,823
 
$
313,581
 
$
29,928
 
Held to Maturity
U.S. Government Treasury
 
153,880
 
 
3,178
 
 
287,310
 
 
13,314
 
 
441,190
 
 
16,492
Mortgage-Backed Securities
786
14
148,282
16,778
149,068
16,792
Total
 
$
154,666
 
$
3,192
 
$
435,592
 
$
30,092
 
$
590,258
 
$
33,284
At September 30, 2024, there were
818
 
positions (combined AFS and HTM) with unrealized losses totaling $
40.3
 
million.
 
73
 
of these
positions are U.S. Treasury bonds and
 
carry the full faith and credit of the U.S. Government.
 
651
 
are U.S. government agency
securities issued by U.S. government sponsored entities.
 
We believe
 
the long history of no credit losses on government securities
indicates that the expectation of nonpayment of the amortized cost basis is effectively
 
zero.
 
At September 30, 2024, all collateralized
mortgage obligation securities, mortgage-backed securities, Small Business
 
Administration securities, U.S. Agency,
 
and U.S. Treasury
bonds held were AAA rated.
 
The remaining
94
 
positions (municipal securities and corporate bonds) have a credit component.
 
At
September 30, 2024, corporate debt securities had an allowance for credit
 
losses of $
79,000
 
and municipal securities had an allowance
of $
4,000
.
Credit Quality Indicators
The Company monitors the credit quality of its investment securities through
 
various risk management procedures, including the
monitoring of credit ratings.
 
A majority of the debt securities in the Company’s
 
investment portfolio were issued by a U.S.
government entity or agency and are either explicitly or implicitly guaranteed
 
by the U.S. government.
 
The Company believes the
long history of no credit losses on these securities indicates that the expectation
 
of nonpayment of the amortized cost basis is
effectively zero, even if the U.S. government were
 
to technically default.
 
Further, certain municipal securities held by the Company
have been pre-refunded and secured by government guaranteed
 
treasuries.
 
Therefore, for the aforementioned securities, the Company
does
no
t assess or record expected credit losses due to the zero loss assumption.
 
The Company monitors the credit quality of its
municipal and corporate securities portfolio via credit ratings
 
which are updated on a quarterly basis.
 
On a quarterly basis, municipal
and corporate securities in an unrealized loss position are evaluated to determine
 
if the loss is attributable to credit related factors and
if an allowance for credit loss is needed.