Quarterly report [Sections 13 or 15(d)]

INVESTMENT SECURITIES

v3.25.3
INVESTMENT SECURITIES
 9 Months Ended
Sep. 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
September 30, 2025
U.S. Government Treasury
$
272,030
$
1,567
$
283
$
-
$
273,314
U.S. Government Agency
165,774
59
3,148
-
162,685
States and Political Subdivisions
37,525
42
2,319
-
35,248
Mortgage-Backed Securities
(1)
61,225
1
8,286
-
52,940
Corporate Debt Securities
47,672
-
2,580
(43)
45,049
Other Securities
(2)
8,097
-
-
-
8,097
Total
 
$
592,323
$
1,669
$
16,616
$
(43)
$
577,333
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
September 30, 2025
U.S. Government Treasury
$
170,612
$
-
$
1,348
$
169,264
Mortgage-Backed Securities
(1)
234,047
625
9,811
224,861
Total
 
$
404,659
$
625
$
11,159
$
394,125
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 September 30, 2025 and at December 31, 2024.
At September 30, 2025 and December 31, 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 $
442.6
 
million and $
489.5
 
million at September 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 nine months ended September 30, 2025 and
 
2024.
 
Maturity Distribution
.
 
At September 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
$
89,433
 
$
88,479
 
$
170,612
 
$
169,264
Due after one year through five years
 
306,889
 
 
304,548
 
 
-
 
 
-
Due after five year through ten years
 
12,896
 
 
11,675
 
 
-
 
 
-
Mortgage-Backed Securities
61,225
52,940
234,047
224,861
U.S. Government Agency
 
113,783
 
 
111,594
 
 
-
 
 
-
Other Securities
 
8,097
 
 
8,097
 
 
-
 
 
-
Total
 
$
592,323
 
$
577,333
 
$
404,659
 
$
394,125
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, 2025
Available for
 
Sale
U.S. Government Treasury
$
14,604
 
$
43
 
$
11,832
 
$
240
 
$
26,436
 
$
283
U.S. Government Agency
68,734
456
82,855
2,692
151,589
3,148
States and Political Subdivisions
1,876
 
124
 
31,747
 
2,195
 
33,623
 
2,319
Mortgage-Backed Securities
36
 
-
 
52,861
 
8,286
 
52,897
 
8,286
Corporate Debt Securities
-
 
-
 
43,522
 
2,580
 
43,522
 
2,580
Total
 
$
85,250
 
$
623
 
$
222,817
 
$
15,993
 
$
308,067
 
$
16,616
 
Held to Maturity
U.S. Government Treasury
 
-
 
-
 
 
169,264
 
1,348
 
 
169,264
 
 
1,348
Mortgage-Backed Securities
17,694
 
93
 
113,104
 
9,718
 
130,798
 
9,811
Total
 
$
17,694
 
$
93
 
$
282,368
 
$
11,066
 
$
300,062
 
$
11,159
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 September 30, 2025, there were
750
 
positions (combined AFS and HTM) with unrealized pre-tax losses totaling
 
$
27.8
 
million.
 
33
of these positions are U.S. Treasury bonds and carry
 
the full faith and credit of the U.S. Government.
 
634
 
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, 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
83
 
positions (municipal securities and corporate bonds) have a credit
component.
 
At September 30, 2025, corporate debt securities had an allowance for credit losses of $
43,000
 
and municipal securities
had an allowance of less than $
1,000
.
No
ne of the securities held by the Company were past due or in nonaccrual status at September
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.