Annual report [Section 13 and 15(d), not S-K Item 405]

INVESTMENT SECURITIES

v3.25.4
INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2025
Investment Securities [Abstract]  
INVESTMENT SECURITIES
Note 2
INVESTMENT SECURITIES
Investment Portfolio Composition
.
 
The following tables summarize the amortized cost and related fair value of investment
securities AFS and securities HTM, the corresponding amounts of
 
gross unrealized gains and losses, and allowance for credit
losses.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for
 
Sale
Amortized
Unrealized
Unrealized
Allowance for
Fair
(Dollars in Thousands)
Cost
Gains
Losses
Credit Losses
Value
December 31, 2025
U.S. Government Treasury
$
331,495
$
1,940
$
171
$
-
$
333,264
U.S. Government Agency
174,527
71
2,484
-
172,114
States and Political Subdivisions
36,918
38
2,045
-
34,911
Mortgage-Backed Securities
(1)
59,699
2
7,697
-
52,004
Corporate Debt Securities
45,810
-
2,236
(42)
43,532
Other Securities
(2)
8,097
-
-
-
8,097
Total
 
$
656,546
$
2,051
$
14,633
$
(42)
$
643,922
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
December 31, 2025
U.S. Government Treasury
$
129,782
$
-
$
514
$
129,268
Mortgage-Backed Securities
247,664
930
8,542
240,052
Total
 
$
377,446
$
930
$
9,056
$
369,320
December 31, 2024
U.S. Government Treasury
$
368,005
$
-
$
6,476
$
361,529
Mortgage-Backed Securities
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 recorded
 
at cost of $
3.0
 
million and $
5.1
 
million, respectively,
 
 
at December 31, 2025 and 2024.
 
At December 31, 2025, and 2024, the investment portfolio had $
2.1
 
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 $
461.3
 
million and $
489.5
 
million at December 31, 2025 and 2024, respectively,
 
were
pledged to secure public deposits and for other purposes.
At December 31, 2025 and 2024, there were
no
 
holdings of securities of any one issuer, other than
 
the U.S. Government and its
agencies, in an amount greater than 10% of shareowners’ equity.
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.
 
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
. During 2023, the Company sold $
30.4
 
million of investment securities. There were
no
 
significant sales of
investment securities during 2025 and 202
Maturity Distribution
.
 
The following table shows the Company’s
 
AFS and HTM investment securities maturity distribution
based on contractual maturity at December 31, 2025.
 
Expected maturities may differ from contractual maturities because
borrowers may have the right to call or prepay obligations.
 
Mortgage-backed securities and certain amortizing U.S. government
agency securities are shown separately since they are not due at a certain maturity
 
date.
 
Equity securities do not have a
contractual maturity date.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for
 
Sale
Held to Maturity
Amortized
 
Fair
 
Amortized
 
Fair
(Dollars in Thousands)
Cost
Value
Cost
Value
Due in one year or less
$
102,643
 
$
102,057
 
$
129,782
 
$
129,268
Due after one through five years
 
335,400
 
 
335,032
 
 
-
 
 
-
Due after five through ten years
25,188
23,042
-
-
Mortgage-Backed Securities
 
59,699
 
 
52,004
 
 
247,664
 
 
240,052
U.S. Government Agency
125,519
123,690
-
-
Other Securities
 
8,097
 
 
8,097
 
 
-
 
 
-
Total
 
$
656,546
 
$
643,922
 
$
377,446
 
$
369,320
Unrealized Losses
. The following table summarizes the investment securities with unrealized
 
losses at December 31, aggregated
by major security type and length of time in a continuous unrealized loss position:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less Than 12 Months
Greater Than 12 Months
Total
Fair
Unrealized
Fair
Unrealized
Fair
Unrealized
(Dollars in Thousands)
Value
Losses
Value
Losses
Value
Losses
December 31, 2025
Available for
 
Sale
U.S. Government Treasury
$
31,319
 
$
22
 
$
8,902
 
$
149
 
$
40,221
 
$
171
U.S. Government Agency
62,809
182
91,760
2,302
154,569
2,484
States and Political Subdivisions
3,030
 
124
 
30,705
 
1,921
 
33,735
 
2,045
Mortgage-Backed Securities
 
-
 
 
-
 
 
51,932
 
 
7,697
 
 
51,932
 
 
7,697
Corporate Debt Securities
-
-
42,333
2,236
42,333
2,236
Total
 
97,158
 
328
 
225,632
 
14,305
 
322,790
 
14,633
 
Held to Maturity
U.S. Government Treasury
 
-
 
 
-
 
 
129,268
 
 
514
 
 
129,268
 
 
514
Mortgage-Backed Securities
 
33,589
98
106,262
8,444
139,851
8,542
Total
 
$
33,589
 
$
98
 
$
235,530
 
$
8,958
 
$
269,119
 
$
9,056
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 December 31, 2025, there were
736
 
positions (combined AFS and HTM securities) with pre-tax unrealized
 
losses totaling
$
23.7
 
million.
 
At December 31, 2024 there were
856
 
positions (combined AFS and HTM securities) with pre-tax unrealized
losses totaling $
48.4
 
million.
 
For 2025,
29
 
of these of these positions were U.S. Treasury bonds
 
and carry the full faith and credit
of the U.S. Government.
 
625
 
of these positions were U.S. government agency and mortgage-backed
 
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
zero
.
 
The remaining
82
 
positions (municipal securities and corporate
bonds) have a credit component.
 
At December 31, 2025, all collateralized mortgage obligation securities (“CMO”), MBS,
 
Small
Business Administration securities (“SBA”), U.S. Agency,
 
and U.S. Treasury bonds held were AA1 or above rated.
 
At December
31, 2025, corporate debt securities had an allowance for credit losses of $
42
 
thousand.
 
No
ne of the securities held by the
Company were past due or in nonaccrual status at December 31, 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 large portion 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
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.