Quarterly report [Sections 13 or 15(d)]

INVESTMENT SECURITIES

v3.25.2
INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 2025
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
June 30, 2025
U.S. Government Treasury
$
221,568
$
1,116
$
363
$
-
$
222,321
U.S. Government Agency
166,665
69
3,666
-
163,068
States and Political Subdivisions
40,551
31
2,708
(1)
37,873
Mortgage-Backed Securities
(1)
62,904
1
9,277
-
53,628
Corporate Debt Securities
51,619
-
3,080
(69)
48,470
Other Securities
(2)
8,097
-
-
-
8,097
Total
 
$
551,404
$
1,217
$
19,094
$
(70)
$
533,457
December 31, 2024
U.S. Government Treasury
$
106,710
$
25
$
934
$
-
$
105,801
U.S. Government Agency
148,666
39
5,578
-
143,127
States and Political Subdivisions
43,212
-
3,827
(3)
39,382
Mortgage-Backed Securities
(1)
66,379
-
10,902
-
55,477
Corporate Debt Securities
55,970
-
4,444
(64)
51,462
Other Securities
(2)
8,096
-
-
-
8,096
Total
 
$
429,033
$
64
$
25,685
$
(67)
$
403,345
Held to Maturity
Amortized
Unrealized
Unrealized
Fair
(Dollars in Thousands)
Cost
Gains
Losses
Value
June 30, 2025
U.S. Government Treasury
$
235,499
$
-
$
2,748
$
232,751
Mortgage-Backed Securities
(1)
227,100
236
11,176
216,160
Total
 
$
462,599
$
236
$
13,924
$
448,911
December 31, 2024
U.S. Government Treasury
$
368,005
$
-
$
6,476
$
361,529
Mortgage-Backed Securities
(1)
199,150
16
16,235
182,931
Total
 
$
567,155
$
16
$
22,711
$
544,460
(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 June 30, 2025 and at December 31, 2024.
At June 30, 2025 and December 31, 2024, the investment portfolio had $
3.2
 
million and $
2.4
 
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 $
385.5
 
million and $
489.5
 
million at June 30, 2025 and December 31, 2024, 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, which is included in other securities is pledged to secure FHLB advances.
 
No ready market exists for this stock, and it has no
quoted fair value; however, redemption
 
of this stock has historically been at par value.
 
As a member of the Federal Reserve Bank of
Atlanta, the Bank is required to maintain stock in the Federal Reserve Bank of Atlanta
 
based on a specified ratio relative to the Bank’s
capital.
 
Federal Reserve Bank stock is carried at cost.
Investment Sales.
There were
no
 
sales of investment securities for the three and six months ended June 30, 2025 and
 
2024.
 
Maturity Distribution
.
 
At June 30, 2025, 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, certain amortizing U.S. government agency
 
securities and other 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
$
58,288
 
$
57,421
 
$
227,073
 
$
224,454
Due after one year through five years
 
298,624
 
 
294,770
 
 
8,426
 
 
8,297
Due after five year through ten years
 
16,353
 
 
14,603
 
 
-
 
 
-
Mortgage-Backed Securities
62,904
53,628
227,100
216,160
U.S. Government Agency
 
107,138
 
 
104,938
 
 
-
 
 
-
Other Securities
 
8,097
 
 
8,097
 
 
-
 
 
-
Total
 
$
551,404
 
$
533,457
 
$
462,599
 
$
448,911
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
June 30, 2025
Available for
 
Sale
U.S. Government Treasury
$
28,929
 
$
14
 
$
11,742
 
$
349
 
$
40,671
 
$
363
U.S. Government Agency
41,132
264
93,868
3,402
135,000
3,666
States and Political Subdivisions
1,622
 
66
 
34,125
 
2,642
 
35,747
 
2,708
Mortgage-Backed Securities
39
 
-
 
53,545
 
9,277
 
53,584
 
9,277
Corporate Debt Securities
1,077
 
68
 
47,393
 
3,012
 
48,470
 
3,080
Total
 
$
72,799
 
$
412
 
$
240,673
 
$
18,682
 
$
313,472
 
$
19,094
 
Held to Maturity
U.S. Government Treasury
 
-
 
-
 
 
232,751
 
2,748
 
 
232,751
 
 
2,748
Mortgage-Backed Securities
50,264
 
204
 
110,114
 
10,972
 
160,378
 
11,176
Total
 
$
50,264
 
$
204
 
$
342,865
 
$
13,720
 
$
393,129
 
$
13,924
December 31, 2024
Available for
 
Sale
 
U.S. Government Treasury
$
81,363
 
$
318
 
$
14,510
 
$
616
 
$
95,873
 
$
934
U.S. Government Agency
33,155
184
100,844
5,394
133,999
5,578
States and Political Subdivisions
 
2,728
 
 
164
 
 
36,654
 
 
3,663
 
 
39,382
 
 
3,827
Mortgage-Backed Securities
54
-
55,409
10,902
55,463
10,902
Corporate Debt Securities
3,093
249
48,369
4,195
51,462
4,444
Total
 
$
120,393
 
$
915
 
$
255,786
 
$
24,770
 
$
376,179
 
$
25,685
 
Held to Maturity
U.S. Government Treasury
 
-
 
 
-
 
 
361,529
 
 
6,476
 
 
361,529
 
 
6,476
Mortgage-Backed Securities
58,230
1,000
119,353
15,235
177,583
16,235
Total
 
$
58,230
 
$
1,000
 
$
480,882
 
$
21,711
 
$
539,112
 
$
22,711
At June 30, 2025, there were
788
 
positions (combined AFS and HTM) with unrealized pre-tax losses totaling $
33.0
 
million.
 
48
 
of
these positions are U.S. Treasury bonds
 
and carry the full faith and credit of the U.S. Government.
 
650
 
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 June 30, 2025, 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
90
 
positions (municipal securities and corporate bonds) have a credit component.
 
At
June 30, 2025, corporate debt securities had an allowance for credit losses of
 
$
69,000
 
and municipal securities had an allowance of
less than $
1,000
. None of the securities held by the Company were past due or in nonaccrual status at June 30,
 
2025.
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.