v3.26.1
Securities
3 Months Ended
Mar. 31, 2026
Investments debt and equity securities [Abstract]  
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block
NOTE 3: SECURITIES
At March 31, 2026 and December 31, 2025, respectively,
all securities within the scope of ASC 320,
Investments – Debt
and Equity Securities,
were classified as available-for-sale.
The fair value and amortized cost for securities available-for-
sale by contractual maturity at March 31, 2026 and December 31, 2025,
respectively, are presented
below.
1 year
1 to 5
5 to 10
After 10
Fair
Gross Unrealized
Amortized
(Dollars in thousands)
or less
years
years
years
Value
Gains
Losses
Cost
March 31, 2026
Agency obligations (a)
$
552
34,328
17,761
52,641
4,862
$
57,503
Agency MBS (a)
20,274
18,399
118,069
156,742
19,141
175,883
State and political subdivisions
2,981
8,250
6,171
17,402
2,222
19,624
Total available-for-sale
$
552
57,583
44,410
124,240
226,785
26,225
$
253,010
December 31, 2025
Agency obligations (a)
$
35,580
18,204
53,784
4,727
$
58,511
Agency MBS (a)
20,112
16,171
125,644
161,927
19,063
180,990
State and political subdivisions
1,590
9,160
6,798
17,548
1
2,103
19,650
Total available-for-sale
$
57,282
43,535
132,442
233,259
1
25,893
$
259,151
(a) Includes securities issued by U.S. government agencies or government
-sponsored entities.
Expected lives of these
securities may differ from contractual maturities because (i) issuers may
have the right to call or repay such securities
obligations with or without prepayment penalties and (ii) loans included in Agency
MBS generally have the right to
prepay such loan in whole or in part at any time.
Securities with aggregate fair values of $
203.7
million and $
209.4
million at March 31, 2026 and December 31, 2025,
respectively, were
pledged to secure public deposits, securities sold under agreements to repurchase,
Federal Home Loan
Bank of Atlanta (“FHLB – Atlanta”) advances, and for other purposes required
or permitted by law.
Included in other assets on the accompanying consolidated balance sheets are
nonmarketable equity investments.
The
carrying amounts of nonmarketable equity investments were $
1.4
million at both March 31, 2026 and December 31, 2025,
respectively.
Nonmarketable equity investments include FHLB - Atlanta stock, Federal
Reserve Bank (“FRB”) stock, and
stock in a privately held financial institution.
Gross Unrealized Losses and Fair Value
The fair values and gross unrealized losses on securities at March 31, 2026
and December 31, 2025, respectively,
segregated by those securities that have been in an unrealized loss position
for less than 12 months and 12 months or
longer, are presented below.
Less than 12 Months
12 Months or Longer
Total
Fair
Unrealized
Fair
Unrealized
Fair
Unrealized
(Dollars in thousands)
Value
Losses
Value
Losses
Value
Losses
March 31, 2026:
Agency obligations
$
52,641
4,862
$
52,641
4,862
Agency MBS
2,672
60
154,070
19,081
156,742
19,141
State and political subdivisions
1,627
8
13,680
2,214
15,307
2,222
Total
$
4,299
68
220,391
26,157
$
224,690
26,225
December 31, 2025:
Agency obligations
$
53,784
4,727
$
53,784
4,727
Agency MBS
161,840
19,063
161,840
19,063
State and political subdivisions
14,827
2,103
14,827
2,103
Total
$
230,451
25,893
$
230,451
25,893
For the securities in the previous table, the Company assesses whether or not
it intends to sell the security, or more
likely
than not will be required to sell the security,
before recovery of its amortized cost basis. Unrealized losses have not been
recognized into income as the decline in fair value is largely
due to changes in interest rates and not credit quality.
For the securities in the previous table, as of March 31, 2026 the Company does not intend to sell and
it is likely that
management will not be required to sell the securities prior to their anticipated recovery.
Agency Obligations
Investments in agency obligations are guaranteed of full and timely
payments by the issuing agency.
Based on
management's analysis and judgement, there were no credit losses attributable
to the Company’s investments
in agency
obligations at March 31, 2026.
Agency MBS
Investments in agency MBS are issued by Ginnie Mae, Fannie Mae, and
Freddie Mac. Each of these agencies provide a
guarantee of full and timely payments of principal and interest by the issuing
agency. Based on management's analysis
and
judgement, there were no credit losses attributable to the Company’s
investments in agency MBS at March 31, 2026.
State and Political Subdivisions
Investments in state and political subdivisions are securities issued by various
municipalities in the United States. The
majority of the portfolio was rated AA or higher,
with no securities rated below investment grade at March 31, 2026.
Based on management's analysis and judgement, there were no credit
losses attributable to the Company’s
investments in
state and political subdivisions at March 31, 2026.
Realized Gains and Losses
The Company had no realized gains or losses on sale of securities during
the quarters ended March 31, 2026 and 2025,
respectively.