INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

3.      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
September 30, 2022
Residential government-sponsored mortgage-backed securities	$	124,407	$	1	$	(18,129)	$	106,279
Obligations of states and political subdivisions		34,179		1		(5,425)		28,755
Corporate securities		16,000		—		(1,146)		14,854
Collateralized loan obligations		5,023		—		(220)		4,803
Residential government-sponsored collateralized mortgage obligations		25,064		—		(2,021)		23,043
Government-sponsored agency securities		17,707		—		(3,022)		14,685
Agency commercial mortgage-backed securities		44,833		—		(4,733)		40,100
SBA pool securities		6,437		18		(83)		6,372
Total	$	273,650	$	20	$	(34,779)	$	238,891

	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
September 30, 2022
Residential government-sponsored mortgage-backed securities	$	10,953	$	—	$	(1,183)	$	—	$	9,770
Obligations of states and political subdivisions		3,120		—		(100)		—		3,020
Residential government-sponsored collateralized mortgage obligations		318		—		(23)		—		295
Total	$	14,391	$	—	$	(1,306)	$	—	$	13,085

	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 September 30, 2022 and 2021, $4.9 million and $16.5 million, respectively, of available-for-sale investment securities were purchased. No held-to-maturity investments were purchased during the three months ended September 30, 2022 and 2021. No investment securities were sold during the three months ended September 30, 2022 and 2021.

During the nine months ended September 30, 2022 and 2021, $32.5 million and $85.0 million, respectively, of available-for-sale investment securities were purchased. No held-to-maturity investments were purchased during the nine months ended September 30, 2022 and 2021. No investment securities were sold during the nine months ended September 30, 2022 and 2021.

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 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	$	1,500	$	1,480	$	400		400
Due in one to five years		10,015		9,086		867		855
Due in five to ten years		29,222		25,912		1,519		1,429
Due after ten years		32,172		26,619		334		336
Residential government-sponsored mortgage-backed securities		124,407		106,279		10,953		9,770
Residential government-sponsored collateralized mortgage obligations		25,064		23,043		318		295
Agency commercial mortgage-backed securities		44,833		40,100		—		—
SBA pool securities		6,437		6,372		—		—
Total	$	273,650	$	238,891	$	14,391	$	13,085

Investment securities with a carrying amount of approximately $102.7 million and $180.7 million at September 30, 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 September 30, 2022, Primis did not have any allowance for credit losses on held-to-maturity securities.

The unrealized losses related to investment securities available-for-sale identified as of September 30, 2022, or December 31, 2021, relate to changes in interest rates relative to when the investment securities were purchased, and do not indicate credit-related impairment. Primis performs quantitative analysis and if needed, a qualitative analysis in this determination. As a result, none of the securities were deemed to require an allowance for credit losses. Primis has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses.

The following tables present information regarding investment securities available-for-sale and held-to-maturity in a continuous unrealized loss position as of September 30, 2022 and December 31, 2021 by duration of time in a loss position (in thousands):

	Less than 12 months				12 Months or More				Total
September 30, 2022	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale	value		Losses		value		Losses		value		Losses
Residential government-sponsored mortgage-backed securities	$	64,600	$	(9,940)	$	41,366	$	(8,189)	$	105,966	$	(18,129)
Obligations of states and political subdivisions		18,212		(2,865)		9,542		(2,560)		27,754		(5,425)
Corporate securities		14,854		(1,146)		—		—		14,854		(1,146)
Collateralized loan obligations		—		—		4,803		(220)		4,803		(220)
Residential government-sponsored collateralized mortgage obligations		18,984		(1,348)		4,059		(673)		23,043		(2,021)
Government-sponsored agency securities		7,547		(810)		7,138		(2,212)		14,685		(3,022)
Agency commercial mortgage-backed securities		22,072		(1,528)		18,028		(3,205)		40,100		(4,733)
SBA pool securities		533		(34)		3,521		(49)		4,054		(83)
Total	$	146,802	$	(17,671)	$	88,457	$	(17,108)	$	235,259	$	(34,779)

	Less than 12 months				12 Months or More				Total
September 30, 2022	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
Held-to-Maturity	value		Losses		value		Losses		value		Losses
Residential government-sponsored mortgage-backed securities	$	9,699	$	(1,178)	$	70	$	(5)	$	9,769	$	(1,183)
Obligations of states and political subdivisions		2,285		(100)		—		—		2,285		(100)
Residential government-sponsored collateralized mortgage obligations		295		(23)		—		—		295		(23)
Total	$	12,279	$	(1,301)	$	70	$	(5)	$	12,349	$	(1,306)

	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 and nine months ended September 30, 2022 and 2021 are shown in the tables below. All amounts are net of tax (in thousands).

	Unrealized Holding
	Gains (Losses) on		Held-to-Maturity
For the three months ended September 30, 2022	Available-for-Sale		Securities		Total
Beginning balance	$	(17,926)	$	—	$	(17,926)
Current period other comprehensive income (loss)		(9,534)		—		(9,534)
Ending balance	$	(27,460)	$	—	$	(27,460)

	Unrealized Holding
	Gains on		Held-to-Maturity
For the three months ended September 30, 2021	Available-for-Sale		Securities		Total
Beginning balance	$	3,243		(2)	$	3,241
Current period other comprehensive income (loss)		(82)		—		(82)
Ending balance	$	3,161	$	(2)	$	3,159

	Unrealized Holding
	Gains (Losses) on		Held-to-Maturity
For the nine months ended September 30, 2022	Available-for-Sale		Securities		Total
Beginning balance	$	1,112	$	—	$	1,112
Current period other comprehensive income (loss)		(28,572)		—		(28,572)
Ending balance	$	(27,460)	$	—	$	(27,460)

	Unrealized Holding
	Gains (Losses) on		Held-to-Maturity
For the nine months ended September 30, 2021	Available-for-Sale		Securities		Total
Beginning balance	$	3,636	$	(151)	$	3,485
Current period other comprehensive income (loss)		(475)		149		(326)
Ending balance	$	3,161	$	(2)	$	3,159