Investment Securities

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

NOTE 2 – Investment Securities

The amortized costs and fair value of investment securities are as follows:


	June 30, 2025
	Amortized		Gross Unrealized				Fair
(dollars in thousands) Corporate bonds [Member]	Cost		Gains		Losses		Value
Available for sale Asset-backed securities [Member]
Corporate bonds US treasuries [Member]	$	2,109		-		147		1,962
US treasuries		999		-		63		936
US government agencies US government agencies [Member]		16,861		27		1,323		15,565
State and political subdivisions		22,261		-		2,759		19,502
Asset-backed securities Mortgage-backed securities [Member]		34,603		24		293		34,334
Mortgage-backed securities		64,197		11		7,640		56,568
Total investment securities available for sale	$	141,030		62		12,225		128,867

	December 31, 2024
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Available for sale
Corporate bonds	$	2,121		-		194		1,927
US treasuries		999		-		91		908
US government agencies		17,540		1		1,746		15,795
State and political subdivisions		22,387		-		3,065		19,322
Asset-backed securities		36,613		36		111		36,538
Mortgage-backed securities		66,988		19		9,370		57,637
Total investment securities available for sale	$	146,648		56		14,577		132,127

Contractual maturities and yields on the Company’s investment securities at June 30, 2025 and December 31, 2024 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.



																			June 30, 2025
	Less than one year					One to five years					Five to ten years					Over ten years						Total
(dollars in thousands)	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Available for sale
Corporate bonds	$	-		-		$	1,962		2.03	%	$	-		-		$	-		-		$	1,962	2.03	%
US treasuries		-		-			936		1.27	%		-		-			-		-			936	1.27	%
US government agencies		-		-			5,196		1.10	%		10,369		4.11	%		-		-			15,565	3.11	%
State and political subdivisions		466		2.13	%		2,995		1.64	%		4,558		2.23	%		11,483		2.14	%		19,502	2.09	%
Asset-backed securities		-		-			-		-			3,449		5.23	%		30,885		5.51	%		34,334	5.48	%
Mortgage-backed securities		-		-			6,635		1.28	%		8,865		2.86	%		41,068		2.39	%		56,568	2.34	%
Total investment securities	$	466		2.13	%	$	17,724		1.37	%	$	27,241		3.53	%	$	83,436		3.51	%	$	128,867	3.22	%

																			December 31, 2024
		Less than one year					One to five years					Five to ten years					Over ten years					Total
(dollars in thousands)		Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount	Yield
Available for sale
Corporate bonds	$	-		-		$	1,927		2.02	%	$	-		-		$	-		-		$	1,927	2.02	%
US treasuries		-		-			908		1.27	%		-		-			-		-			908	1.27	%
US government agencies		-		-			5,021		1.10	%		10,774		4.51	%		-		-			15,795	3.43	%
State and political subdivisions		461		2.13	%		1,726		1.61	%		5,049		2.10	%		12,086		2.13	%		19,322	2.08	%
Asset-backed securities		-		-			23		6.14	%		3,420		5.25	%		33,095		5.87	%		36,538	5.81	%
Mortgage-backed securities		-		-			6,549		1.28	%		7,548		3.00	%		43,540		2.45	%		57,637	2.39	%
Total investment securities	$	461		2.13	%	$	16,154		1.35	%	$	26,791		3.73	%	$	88,721		3.68	%	$	132,127	3.40	%

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.



													June 30, 2025
Total investment securities[Member]	Less than 12 months						12 months or longer						Total
(dollars in thousands)	#		Fair value		Unrealized losses		#		Fair value		Unrealized losses		#		Fair value		Unrealized losses
Available for sale
Corporate bonds		-	$	-	$	-		1	$	1,962	$	147		1	$	1,962	$	147
US treasuries		-		-		-		1		936		63		1		936		63
US government agencies		-		-		-		9		10,693		1,323		9		10,693		1,323
State and political subdivisions		2		945		107		31		18,557		2,652		33		19,502		2,759
Asset-backed		10		21,352		134		5		8,400		159		15		29,752		293
Mortgage-backed securities		8		11,319		197		59		44,283		7,443		67		55,602		7,640
Total investment securities		20	$	33,616	$	438		106	$	84,831	$	11,787		126	$	118,447	$	12,225

																December 31, 2024
		Less than 12 months						12 months or longer						Total
(dollars in thousands)		#		Fair value		Unrealized losses		#		Fair value		Unrealized losses		#		Fair value		Unrealized losses
Available for sale
Corporate bonds		-	$	-	$	-		1	$	1,927	$	194		1	$	1,927	$	194
US treasuries		-		-		-		1		908		91		1		908		91
US government agencies		1		2,694		1		9		10,269		1,745		10		12,963		1,746
State and political subdivisions		3		1,436		153		30		17,886		2,912		33		19,322		3,065
Asset-backed		6		15,828		83		5		5,344		28		11		21,172		111
Mortgage-backed securities		6		8,226		409		61		45,360		8,961		67		53,586		9,370
Total investment securities		16	$	28,184	$	646		107	$	81,694	$	13,931		123	$	109,878	$	14,577

At June 30, 2025, the Company had 126 individual investments that were in an unrealized loss position. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. As such, there is no allowance for credit losses on available for sale securities recognized as of June 30, 2025.

Other investments are comprised of the following and are recorded at cost which approximates fair value.

Schedule of other investments

(dollars in thousands)	June 30, 2025		December 31, 2024
Federal Home Loan Bank stock	$	14,540		14,516
Other nonmarketable investments		4,963		4,571
Investment in Trust Preferred subsidiaries		403		403
Total other investments	$	19,906		19,490

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of June 30, 2025 and that ultimate recoverability of the par value of the investments is probable. All of the FHLB stock is used to collateralize advances with the FHLB.

At June 30, 2025, there were no securities pledged as collateral for repurchase agreements from brokers.

SOUTHERN FIRST BANCSHARES INC 10-Q