Investment securities classified as available for sale ("AFS") are carried at fair value in the consolidated balance sheets. The following tables present amortized cost, fair values, and gross unrealized gains and losses of investment securities AFS as of the dates stated.


	June 30, 2024
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale
Mortgage backed securities	$	198,042	$	—	$	(34,929	)	$	163,113
U.S. Treasury and agencies		79,634		—		(10,739	)		68,895
State and municipal		50,356		—		(7,353	)		43,003
Corporate bonds		36,889		—		(4,473	)		32,416
Total investment securities	$	364,921	$	—	$	(57,494	)	$	307,427


	December 31, 2023
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale
Mortgage backed securities	$	212,214	$	—	$	(35,244	)	$	176,970
U.S. Treasury and agencies		79,856		—		(10,985	)		68,871
State and municipal		50,682		—		(7,357	)		43,325
Corporate bonds		36,902		12		(4,999	)		31,915
Total investment securities	$	379,654	$	12	$	(58,585	)	$	321,081

As of June 30, 2024 and December 31, 2023, securities with a fair value of $266.7 million and $35.9 million, respectively, were pledged to secure the Bank’s line of credit with the Federal Home Loan Bank of Atlanta ("FHLB").

As of December 31, 2023, the Company pledged securities with $260.9 million of par value (amortized cost and fair value of $262.7 million and $218.7 million, respectively) as collateral for the Bank Term Funding Program (“BTFP”) established by the Board of Governors of the Federal Reserve System. At June 30, 2024, there were no securities pledged as collateral for the BTFP.

The following tables present a summary of unrealized losses and the length of time securities have been in a continuous loss position, by security type and number of securities, as of the dates stated.


			June 30, 2024
			Less than 12 Months					12 Months or Greater					Total
(Dollars in thousands)	Number of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Mortgage backed securities		80	$	—	$	—		$	163,113	$	(34,929	)	$	163,113	$	(34,929	)
U.S. Treasury and agencies		29		275		(1	)		68,619		(10,738	)		68,894		(10,739	)
State and municipal		70		1,282		(13	)		41,446		(7,340	)		42,728		(7,353	)
Corporate bonds		40		6,853		(696	)		24,813		(3,777	)		31,666		(4,473	)
Total		219	$	8,410	$	(710	)	$	297,991	$	(56,784	)	$	306,401	$	(57,494	)


			December 31, 2023
			Less than 12 Months					12 Months or Greater					Total
(Dollars in thousands)	Number of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Mortgage backed securities		86	$	7,497	$	(45	)	$	169,474	$	(35,199	)	$	176,971	$	(35,244	)
U.S. Treasury and agencies		29		283		(1	)		68,399		(10,984	)		68,682		(10,985	)
State and municipal		65		536		(9	)		41,118		(7,348	)		41,654		(7,357	)
Corporate bonds		39		7,469		(830	)		21,683		(4,169	)		29,152		(4,999	)
Total		219	$	15,785	$	(885	)	$	300,674	$	(57,700	)	$	316,459	$	(58,585	)

The Company evaluates the fair value and credit quality of its securities AFS portfolio no less than quarterly. At June 30, 2024 and December 31, 2023, the majority of securities in an unrealized loss position were of investment grade; however, a portion of the portfolio does not have a third-party investment grade available. These ungraded securities were primarily subordinated debt instruments issued by bank holding companies and are classified as corporate bonds in the tables above. The Company evaluated the issuers of these individually, observing that each issuer had strong capital ratios and profitability thereby indicating limited exposure to asset quality or liquidity issues, which resulted in no identifiable credit losses. Investment securities with unrealized losses are generally attributable to pricing changes due to changes in the interest rate environment since purchase and not as a result of permanent credit impairment. Contractual cash flows for mortgage backed securities and U.S. Treasury and agencies are guaranteed and/or funded by the U.S. government and government agencies. State and municipal securities showed no indication that the contractual cash flows would not be received when due. The Company does not intend to sell, nor does it believe that it will be required to sell, any of its temporarily impaired securities prior to the recovery of the amortized cost. As of June 30, 2024 and December 31, 2023, there was no allowance for credit losses (“ACL”) against the Company's securities AFS portfolio.

Restricted equity investments consisted of stock in the FHLB (carrying value of $11.9 million and $12.3 million as of June 30, 2024 and December 31, 2023, respectively), stock in the Federal Reserve Bank of Richmond ("FRB") (carrying value of $5.9 million at both June 30, 2024 and December 31, 2023), and stock in the Bank’s correspondent bank (carrying value of $468 thousand at both June 30, 2024 and December 31, 2023). Restricted equity investments are carried at cost.

The Company also has various other equity investments, including an investment in a fintech company and limited partnerships, totaling $4.4 million and $12.9 million as of June 30, 2024 and December 31, 2023, respectively. The Company reports such investments at fair value if observable market transactions have occurred in similar securities, resulting in a new carrying value that is evaluated for impairment no less than quarterly. These impairment analyses may include quantitative and/or qualitative information obtained either directly from the investee, a third-party broker, or a third-party valuation firm. If a potential impairment has been identified, the carrying value of the investment would be written down to its estimated fair market value through a charge to earnings. In the second quarter of 2024, the Company identified potential impairment triggers related to its holdings, mainly due to regulatory pressures on banks partnering with fintech companies in the banking-as-a-service sector. These pressures led some fintech companies to announce cost-saving measures and at least one to seek bankruptcy protection. As a result, the Company engaged a third-party valuation firm to value the Company's investment in a fintech company. This valuation resulted in an $8.5 million impairment charge, recorded in fair value adjustments of other equity investments, to adjust the investment to its estimated fair market value as of June 30, 2024.

The Company also holds investments in early-stage focused investment funds, small business investment companies ("SBIC"), and low-income housing partnerships, which totaled $21.1 million and $29.5 million as of June 30, 2024 and December 31, 2023, respectively, and are reported in other investments on the consolidated balance sheets. These investments do not have readily-determinable fair values, are generally reported at amortized cost, and are periodically evaluated for potential impairment. In the second quarter of 2024, the Company sold $6.4 million of its SBIC investments at a $69 thousand loss, which is reported in other noninterest income.