INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

2.      INVESTMENT SECURITIES

The amortized cost and fair value of available-for-sale investment securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows (in thousands):

	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
March 31, 2022
Residential government-sponsored mortgage-backed securities	$	127,180	$	102	$	(6,532)	$	120,750
Obligations of states and political subdivisions		34,852		172		(1,988)		33,036
Corporate securities		16,000		147		(24)		16,123
Collateralized loan obligations		5,026		—		(48)		4,978
Residential government-sponsored collateralized mortgage obligations		23,137		25		(594)		22,568
Government-sponsored agency securities		17,683		3		(1,433)		16,253
Agency commercial mortgage-backed securities		51,843		81		(1,809)		50,115
SBA pool securities		7,873		19		(89)		7,803
Total	$	283,594	$	549	$	(12,517)	$	271,626

	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
December 31, 2021
Residential government-sponsored mortgage-backed securities	$	122,506	$	740	$	(636)	$	122,610
Obligations of states and political subdivisions		30,728		755		(252)		31,231
Corporate securities		13,000		685		—		13,685
Collateralized loan obligations		5,026		—		(16)		5,010
Residential government-sponsored collateralized mortgage obligations		19,671		297		(161)		19,807
Government-sponsored agency securities		17,671		32		(215)		17,488
Agency commercial mortgage-backed securities		52,452		513		(298)		52,667
SBA pool securities		8,870		48		(84)		8,834
Total	$	269,924	$	3,070	$	(1,662)	$	271,332

The amortized cost, gross unrecognized gains and losses, allowance for credit losses and fair value of investment securities held-to-maturity were as follows (in thousands):

	Amortized		Gross Unrecognized				Allowance for		Fair
	Cost		Gains		Losses		Credit Losses		Value
March 31, 2022
Residential government-sponsored mortgage-backed securities	$	12,553	$	4	$	(238)	$	—	$	12,319
Obligations of states and political subdivisions		3,123		35		(11)		—		3,147
Residential government-sponsored collateralized mortgage obligations		462		5		(6)		—		461
Total	$	16,138	$	44	$	(255)	$	—	$	15,927

	Amortized		Gross Unrecognized				Allowance for		Fair
	Cost		Gains		Losses		Credit Losses		Value
December 31, 2021
Residential government-sponsored mortgage-backed securities	$	13,616	$	296	$	(1)	$	—	$	13,911
Obligations of states and political subdivisions		3,805		93		—		—		3,898
Residential government-sponsored collateralized mortgage obligations		519		13		—		—		532
Government-sponsored agency securities		5,000		23		—		—		5,023
Total	$	22,940	$	425	$	(1)	$	—	$	23,364

During the three months ended March 31, 2022 and 2021, $22.6 million and $28.2 million, respectively, of available-for-sale investment securities were purchased. No held-to-maturity investments were purchased during the three months ended March 31, 2022 and 2021. No investment securities were sold during the three months ended March 31, 2022 and 2021.

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of March 31, 2022, by contractual maturity were as follows (in thousands). Investment securities not due at a single maturity date are shown separately.

	Available-for-Sale				Held-to-Maturity
	Amortized				Amortized
	Cost		Fair Value		Cost		Fair Value
Due within one year	$	—	$	—	$	404	$	407
Due in one to five years		11,008		10,619		865		881
Due in five to ten years		26,566		26,113		1,519		1,524
Due after ten years		35,987		33,658		335		335
Residential government-sponsored mortgage-backed securities		127,180		120,750		12,553		12,319
Residential government-sponsored collateralized mortgage obligations		23,137		22,568		462		461
Agency commercial mortgage-backed securities		51,843		50,115		—		—
SBA pool securities		7,873		7,803		—		—
Total	$	283,594	$	271,626	$	16,138	$	15,927

Investment securities with a carrying amount of approximately $169.5 million and $180.7 million at March 31, 2022 and December 31, 2021, respectively, were pledged to secure public deposits, certain other deposits, a line of credit for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta, and repurchase agreements.

Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to U.S. Treasury and residential mortgage-backed securities issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to securities issued by States and political subdivisions and other held-to-maturity securities, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities and (iv) internal forecasts. As of March 31, 2022, Primis did not have any allowance for credit losses on held-to-maturity securities.

The following tables present information regarding investment securities available-for-sale and held-to-maturity in a continuous unrealized loss position as of March 31, 2022 and December 31, 2021 by duration of time in a loss position (in thousands):

	Less than 12 months				12 Months or More				Total
March 31, 2022	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale	value		Losses		value		Losses		value		Losses
Residential government-sponsored mortgage-backed securities	$	104,457	$	(6,162)	$	4,171	$	(370)	$	108,628	$	(6,532)
Obligations of states and political subdivisions		15,774		(1,325)		5,059		(663)		20,833		(1,988)
Corporate securities		976		(24)		—		—		976		(24)
Collateralized loan obligations		4,978		(48)		—		—		4,978		(48)
Residential government-sponsored collateralized mortgage obligations		14,553		(371)		3,003		(223)		17,556		(594)
Government-sponsored agency securities		14,750		(1,433)		—		—		14,750		(1,433)
Agency commercial mortgage-backed securities		26,892		(1,611)		1,926		(198)		28,818		(1,809)
SBA pool securities		978		(13)		4,208		(76)		5,186		(89)
Total	$	183,358	$	(10,987)	$	18,367	$	(1,530)	$	201,725	$	(12,517)

	Less than 12 months				12 Months or More				Total
March 31, 2022	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
Held-to-Maturity	value		Losses		value		Losses		value		Losses
Residential government-sponsored mortgage-backed securities	$	11,545	$	(237)	$	119	$	(1)	$	11,664	$	(238)
Obligations of states and political subdivisions		422		(11)		—		—		422		(11)
Residential government-sponsored collateralized mortgage obligations		256		(6)		—		—		256		(6)
Total	$	12,223	$	(254)	$	119	$	(1)	$	12,342	$	(255)

	Less than 12 months				12 Months or More				Total
December 31, 2021	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale	value		Losses		value		Losses		value		Losses
Residential government-sponsored mortgage-backed securities	$	84,123	$	(636)	$	—	$	—	$	84,123	$	(636)
Obligations of states and political subdivisions		14,472		(252)		—		—		14,472		(252)
Collateralized loan obligations		5,010		(16)		—		—		5,010		(16)
Residential government-sponsored collateralized mortgage obligations		5,589		(161)		—		—		5,589		(161)
Government-sponsored agency securities		15,956		(215)		—		—		15,956		(215)
Agency commercial mortgage-backed securities		20,786		(194)		2,027		(104)		22,813		(298)
SBA pool securities		—		—		4,544		(84)		4,544		(84)
Total	$	145,936	$	(1,474)	$	6,571	$	(188)	$	152,507	$	(1,662)

	Less than 12 months				12 Months or More				Total
December 31, 2021	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
Held-to-Maturity	value		Losses		value		Losses		value		Losses
Residential government-sponsored mortgage-backed securities	$	—	$	—	$	324	$	(1)	$	324	$	(1)
Total	$	—	$	—	$	324	$	(1)	$	324	$	(1)

Changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2022 and 2021 are shown in the tables below. All amounts are net of tax (in thousands).

	Unrealized Holding
	Gains on		Held-to-Maturity
For the three months ended March 31, 2022	Available-for-Sale		Securities		Total
Beginning balance	$	1,112	$	—	$	1,112
Current period other comprehensive income (loss)		(10,567)		—		(10,567)
Ending balance	$	(9,455)	$	—	$	(9,455)

	Unrealized Holding
	Gains on		Held-to-Maturity
For the three months ended March 31, 2021	Available-for-Sale		Securities		Total
Beginning balance	$	3,636		(151)	$	3,485
Current period other comprehensive income		(1,371)		149		(1,222)
Ending balance	$	2,265	$	(2)	$	2,263