XML 19 R10.htm IDEA: XBRL DOCUMENT v3.23.1
Securities
 3 Months Ended
Mar. 31, 2023
Securities [Abstract]  
Securities
Note 2. Securities

On January 1, 2023, the Company adopted ASC 326, which made changes to the accounting for available-for-sale debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 1. Description of Business and Summary of Significant Accounting Policies.

All securities information presented as of March 31, 2023, is in accordance with ASC 326. All securities information presented prior to March 31, 2023 is in accordance with previous applicable GAAP. See information regarding the Company’s prior accounting policies in Note 1. Significant Accounting Policies in the Company’s 2022 Form 10-K.

Amortized costs and fair values, with gross unrealized gains and losses, of securities available-for-sale as of the dates indicated were as follows:

   
March 31, 2023
  
           Gross    
Gross
        
     Amortized      Unrealized      Unrealized      Fair  
(Dollars in thousands)
  
Cost
    
Gains
    
(Losses)
    
Value
  
U.S. Treasury securities
  
$
8,013
    
$
-
    
$
(265
)
  
$
7,748
  
Obligations of U.S. Government agencies
    
40,680
      
24
      
(963
)
    
39,741
  
Obligations of state and political subdivisions
    
70,351
      
-
      
(9,698
)
    
60,653
  
Mortgage-backed securities
    
98,554
      
-
      
(9,858
)
    
88,696
  
Money market investments
    
1,661
      
-
      
-
      
1,661
  
Corporate bonds and other securities
    
27,990
      
-
      
(2,576
)
    
25,414
  
   
$
247,249
    
$
24
    
$
(23,360
)
  
$
223,913
  

   
December 31, 2022
  
           Gross      Gross        
 
Amortized
      Unrealized      Unrealized      Fair  
(Dollars in thousands)
  
Cost
    
Gains
    
(Losses)
    
Value
  
U.S. Treasury securities
  
$
8,013
    
$
-
    
$
(342
)
  
$
7,671
  
Obligations of U.S. Government agencies
    
43,622
      
10
      
(1,233
)
    
42,399
  
Obligations of state and political subdivisions
    
70,491
      
-
      
(11,107
)
    
59,384
  
Mortgage-backed securities
    
99,874
      
-
      
(10,961
)
    
88,913
  
Money market investments
    
1,816
      
-
      
-
      
1,816
  
Corporate bonds and other securities
    
27,990
      
-
      
(2,655
)
    
25,335
  
   
$
251,806
    
$
10
    
$
(26,298
)
  
$
225,518
  

The amortized cost and fair value of securities by contractual maturity are shown below.

   
March 31, 2023
  
     Amortized      Fair  
(Dollars in thousands)
  
Cost
    
Value
  
Due in one year or less
  
$
1,460
    
$
1,427
  
Due after one year through five years
    
19,519
      
18,758
  
Due after five through ten years
    
64,982
      
57,497
  
Due after ten years
    
159,627
      
144,570
  
Other securities, restricted
    
1,661
      
1,661
  
   
$
247,249
    
$
223,913
  

The Company did not realize any gains or losses on the sale of investment securities during the three months ended March 31, 2023 and 2022, respectively.
The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses for which an allowance for credit losses has not been recorded as of March 31, 2023 and that are deemed to be temporarily impaired as of December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:

   
March 31, 2023
  

 
Less than 12 months
    
12 months or more
    
Total
  

   Gross    
     Gross          
Gross
        

   Unrealized      Fair      Unrealized      Fair      Unrealized      Fair  
(Dollars in thousands)
   Losses      Value     Losses     Value      Losses      Value  
U.S. Treasury securities
   $ 20     $ 3,902     $
245     $ 3,846     $ 265     $ 7,748  
Obligations of U.S. Government agencies
    
53
      
7,558
      
910
      
26,736
      
963
      
34,294
  
Obligations of state and political subdivisions
    
381
      
7,247
      
9,317
      
53,406
      
9,698
      
60,653
  
Mortgage-backed securities
    
817
      
22,700
      
9,041
      
65,996
      
9,858
      
88,696
  
Corporate bonds and other securities
    
249
      
4,991
      
2,327
      
19,423
      
2,576
      
24,414
  
Total securities available-for-sale
  
$
1,520
    
$
46,398
    
$
21,840
    
$
169,407
    
$
23,360
    
$
215,805
  

   
December 31, 2022
  

 
Less than 12 months
    
12 months or more
    
Total
  
     Gross            Gross            Gross        
     Unrealized      Fair      Unrealized      Fair      Unrealized      Fair  
(Dollars in thousands)
  
Losses
    
Value
    
Losses
    
Value
    
Losses
    
Value
  
U.S. Treasury securities   $ 342     $ 7,671     $ -     $ -     $ 342     $ 7,671  
Obligations of U.S. Government agencies
    
258
      
13,873
      
975
      
22,851
      
1,233
      
36,724
  
Obligations of state and political subdivisions
     5,386       33,720       5,721       23,856       11,107       57,576  
Mortgage-backed securities
    
4,157
      
52,717
      
6,804
      
36,196
      
10,961
      
88,913
  
Corporate bonds and other securities
    
1,084
      
12,906
      
1,571
      
11,429
      
2,655
      
24,335
  
Total securities available-for-sale
  
$
11,227
    
$
120,887
    
$
15,071
    
$
94,332
    
$
26,298
    
$
215,219
  

The number of investments in an unrealized loss position as of March 31, 2023 and December 31, 2022 were 162, respectively. The Company concluded no allowance for credit loss should be recognized as of March 31, 2023 and December 31, 2022, based primarily on the fact that changes in fair value  were caused primarily by increases in interest rates, securities with unrealized losses had generally high credit quality, the Company intends to hold these investments to maturity, it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments.

Restricted Stock
The restricted stock category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB), the Federal Reserve Bank (FRB), and Community Bankers' Bank (CBB). These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB, FRB, and CBB stock are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered.