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)