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INVESTMENT SECURITIES
6 Months Ended
Jun. 30, 2023
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

June 30, 2023

Residential government-sponsored mortgage-backed securities

$

113,816

$

$

(15,802)

$

98,014

Obligations of states and political subdivisions

 

33,951

 

2

 

(4,280)

 

29,673

Corporate securities

 

16,000

 

 

(3,044)

 

12,956

Collateralized loan obligations

 

5,020

 

 

(119)

 

4,901

Residential government-sponsored collateralized mortgage obligations

 

30,813

 

 

(2,245)

 

28,568

Government-sponsored agency securities

 

16,243

 

 

(2,883)

 

13,360

Agency commercial mortgage-backed securities

 

35,374

(4,580)

 

30,794

SBA pool securities

 

4,884

 

10

 

(73)

 

4,821

Total

$

256,101

$

12

$

(33,026)

$

223,087

Amortized

Gross Unrealized

Fair

    

Cost

    

Gains

    

Losses

    

Value

December 31, 2022

Residential government-sponsored mortgage-backed securities

$

119,371

$

1

$

(16,491)

$

102,881

Obligations of states and political subdivisions

 

34,103

 

2

 

(4,927)

 

29,178

Corporate securities

 

16,000

 

 

(1,172)

 

14,828

Collateralized loan obligations

 

5,022

 

 

(146)

 

4,876

Residential government-sponsored collateralized mortgage obligations

 

28,643

 

 

(2,048)

 

26,595

Government-sponsored agency securities

 

17,719

 

 

(3,103)

 

14,616

Agency commercial mortgage-backed securities

 

42,180

(4,763)

 

37,417

SBA pool securities

 

5,998

 

13

 

(87)

 

5,924

Total

$

269,036

$

16

$

(32,737)

$

236,315

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

June 30, 2023

Residential government-sponsored mortgage-backed securities

$

9,753

$

$

(927)

$

$

8,826

Obligations of states and political subdivisions

 

2,388

 

1

 

(63)

 

 

2,326

Residential government-sponsored collateralized mortgage obligations

 

237

 

 

(20)

 

 

217

Total

$

12,378

$

1

$

(1,010)

$

$

11,369

Amortized

Gross Unrecognized

Allowance for

Fair

    

Cost

    

Gains

    

Losses

    

Credit Losses

    

Value

December 31, 2022

Residential government-sponsored mortgage-backed securities

$

10,522

$

$

(1,007)

$

$

9,515

Obligations of states and political subdivisions

 

 

2,721

 

3

 

(46)

 

 

2,678

Residential government-sponsored collateralized mortgage obligations

 

 

277

 

 

(21)

 

 

256

Total

$

13,520

$

3

$

(1,074)

$

$

12,449

Available-for-sale investment securities of $5.0 million were purchased during the three and six months ended June 30, 2023. During the three and six months ended June 30, 2022, $5.0 million and $27.6 million, respectively of available-for-sale investment securities were purchased. No held-to-maturity investments were purchased during the three and six months ended June 30, 2023 and 2022. No investment securities were sold during the three and six months ended June 30, 2023 and 2022.

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of June 30, 2023, 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

$

$

$

325

$

324

Due in one to five years

10,024

9,121

1,124

1,121

Due in five to ten years

 

34,261

 

28,718

 

939

 

881

Due after ten years

 

26,929

 

23,051

 

 

Residential government-sponsored mortgage-backed securities

 

113,816

 

98,014

 

9,753

 

8,826

Residential government-sponsored collateralized mortgage obligations

 

30,813

 

28,568

 

237

 

217

Agency commercial mortgage-backed securities

 

35,374

 

30,794

 

 

SBA pool securities

 

4,884

 

4,821

 

 

Total

$

256,101

$

223,087

$

12,378

$

11,369

Investment securities with a carrying amount of approximately $193.3 million and $99.4 million at June 30, 2023 and December 31, 2022, 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 basis 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 June 30, 2023, Primis had an immaterial allowance for credit losses on held-to-maturity securities.

The unrealized losses related to investment securities available-for-sale identified as of June 30, 2023 and December 31, 2022, relate to changes in interest rates relative to when the investment securities were purchased, and do not indicate credit-related impairment. Primis performs quantitative and qualitative analysis in this determination. As a result of the Company’s analysis, none of the securities were deemed to require an allowance for credit losses at June 30, 2023 and

December 31, 2022. 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 June 30, 2023 and December 31, 2022 by duration of time in a loss position (in thousands):

Less than 12 months

12 Months or More

Total

June 30, 2023

    

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

Available-for-Sale

value

Losses

value

Losses

value

Losses

Residential government-sponsored mortgage-backed securities

$

4,796

$

(281)

$

93,218

$

(15,521)

$

98,014

$

(15,802)

Obligations of states and political subdivisions

6,850

(84)

21,821

(4,196)

28,671

(4,280)

Corporate securities

5,591

(409)

7,365

(2,635)

12,956

(3,044)

Collateralized loan obligations

4,901

(119)

4,901

(119)

Residential government-sponsored collateralized mortgage obligations

13,910

(338)

14,658

(1,907)

28,568

(2,245)

Government-sponsored agency securities

 

 

 

13,360

 

(2,883)

 

13,360

 

(2,883)

Agency commercial mortgage-backed securities

 

 

 

30,794

 

(4,580)

 

30,794

 

(4,580)

SBA pool securities

 

 

 

3,009

 

(73)

 

3,009

 

(73)

Total

$

31,147

$

(1,112)

$

189,126

$

(31,914)

$

220,273

$

(33,026)

Less than 12 months

12 Months or More

Total

June 30, 2023

    

Fair

    

Unrecognized

    

Fair

    

Unrecognized

    

Fair

    

Unrecognized

Held-to-Maturity

value

Losses

value

Losses

value

Losses

Residential government-sponsored mortgage-backed securities

$

586

$

(35)

$

8,240

$

(892)

$

8,826

$

(927)

Obligations of states and political subdivisions

 

1,357

 

(17)

 

388

 

(46)

 

1,745

 

(63)

Residential government-sponsored collateralized mortgage obligations

 

58

 

(4)

 

159

 

(16)

 

217

 

(20)

Total

$

2,001

$

(56)

$

8,787

$

(954)

$

10,788

$

(1,010)

Less than 12 months

12 Months or More

Total

December 31, 2022

    

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

Available-for-Sale

value

Losses

value

Losses

value

Losses

Residential government-sponsored mortgage-backed securities

$

23,484

$

(2,268)

$

79,283

$

(14,223)

$

102,767

$

(16,491)

Obligations of states and political subdivisions

10,026

(388)

17,609

(4,539)

27,635

(4,927)

Corporate securities

14,828

(1,172)

14,828

(1,172)

Collateralized loan obligations

4,876

(146)

4,876

(146)

Residential government-sponsored collateralized mortgage obligations

22,343

(1,375)

4,252

(673)

26,595

(2,048)

Government-sponsored agency securities

 

1,484

 

(16)

 

13,132

 

(3,087)

 

14,616

 

(3,103)

Agency commercial mortgage-backed securities

 

13,031

 

(371)

 

24,386

 

(4,392)

 

37,417

 

(4,763)

SBA pool securities

 

529

 

(38)

 

3,243

 

(49)

 

3,772

 

(87)

Total

$

85,725

$

(5,628)

$

146,781

$

(27,109)

$

232,506

$

(32,737)

Less than 12 months

12 Months or More

Total

December 31, 2022

    

Fair

    

Unrecognized

    

Fair

    

Unrecognized

    

Fair

    

Unrecognized

Held-to-Maturity

value

Losses

value

Losses

value

Losses

Residential government-sponsored mortgage-backed securities

$

9,457

$

(1,002)

$

58

$

(5)

$

9,515

$

(1,007)

Obligations of states and political subdivisions

 

1,255

 

(46)

 

 

 

1,255

 

(46)

Residential government-sponsored collateralized mortgage obligations

 

75

 

(4)

 

181

 

(17)

 

256

 

(21)

Total

$

10,787

$

(1,052)

$

239

$

(22)

$

11,026

$

(1,074)

Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2023 and 2022 are shown in the tables below. All amounts are net of tax (in thousands).

Unrealized Holding

Gains (Losses) on

For the three months ended June 30, 2023

    

Available-for-Sale

Beginning balance

$

(23,475)

Current period other comprehensive income (loss)

 

(2,606)

Ending balance

$

(26,081)

Unrealized Holding

Gains (Losses) on

For the three months ended June 30, 2022

Available-for-Sale

Beginning balance

$

(9,455)

Current period other comprehensive income (loss)

 

(8,471)

Ending balance

$

(17,926)

Unrealized Holding

Gains (Losses) on

For the six months ended June 30, 2023

Available-for-Sale

Beginning balance

$

(25,850)

Current period other comprehensive income (loss)

 

(231)

Ending balance

$

(26,081)

Unrealized Holding

Gains (Losses) on

For the six months ended June 30, 2022

Available-for-Sale

Beginning balance

$

1,112

Current period other comprehensive income (loss)

 

(19,038)

Ending balance

$

(17,926)