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Securities
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
Securities held for indefinite periods of time are classified as AFS and carried at estimated fair value. Investment activity for the year ended December 31, 2021, included $389.5 million of securities purchased, partially offset by $113.5 million in sales and $99.2 million in maturities, principal repayments, and calls. The net unrealized gain on the securities AFS portfolio decreased $13.5 million for the year ended December 31, 2021, resulting in an unrealized loss of $4.8 million as of December 31, 2021.
The amortized cost and estimated fair value of securities AFS are summarized in the following tables:
December 31, 2021
(in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities AFS:
Mortgage-backed securities$386,874 $1,112 $(8,460)$379,526 
Municipal bonds227,248 3,665 (942)229,971 
U.S. Treasury securities41,770 — (154)41,616 
U.S. agency securities8,062 61 (58)8,065 
Total Securities AFS$663,954 $4,838 $(9,614)$659,178 
December 31, 2020
(in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities AFS:
Mortgage-backed securities$271,709 $3,450 $(332)$274,827 
Municipal bonds207,834 5,498 (51)213,281 
U.S. Treasury securities— — — — 
U.S. agency securities9,902 200 (4)10,098 
Total Securities AFS$489,445 $9,148 $(387)$498,206 
The amortized cost and estimated fair value of debt securities as of December 31, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties.
(in thousands)Amortized
Cost		Fair
Value
Within one year$9,819 $9,886 
After one year but within five years71,026 71,293 
After five years but within ten years65,419 65,956 
After ten years517,690 512,043 
Total$663,954 $659,178 
Information pertaining to securities with gross unrealized losses as of December 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position is described as follows:
Less than twelve monthsTwelve months or more
(in thousands)Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value
December 31, 2021
Securities AFS:
Mortgage-backed securities$(6,627)$282,705 $(1,833)$47,171 
Municipal bonds(918)51,333 (24)2,577 
U.S. Treasury securities(154)41,616 — — 
U.S. agency securities(58)4,913 — — 
Total Securities AFS$(7,757)$380,567 $(1,857)$49,748 
December 31, 2020
Securities AFS:
Mortgage-backed securities$(332)$72,367 $— $— 
Municipal bonds(51)9,466 — — 
U.S. Treasury securities— — — — 
U.S. agency securities(4)4,996 — — 
Total Securities AFS$(387)$86,829 $— $— 
As of December 31, 2021, the Company held 185 securities that were in unrealized loss positions. The aggregate unrealized loss of these securities as of December 31, 2021, was 1.45% of the amortized cost basis of the total securities AFS portfolio. Management and the Asset-Liability Management Committee continually monitor the securities portfolio and are able to effectively measure and monitor the unrealized loss positions on these securities. Management does not intend to sell these securities prior to recovery, and it is more likely than not that the Company will have the ability to hold them, primarily due to adequate liquidity, until each security has recovered its cost basis. The unrealized losses on these securities have been determined by management to be a function of the movement of interest rates since the time of purchase. Based on a review of available information, including recent changes in interest rates and credit rating information, management believes the decline in fair value of these securities is temporary. The Company does not consider these securities to have OTTI.
Management evaluates securities for OTTI on at least a quarterly basis and more frequently if economic or market concerns merit such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) whether the Company intends to, and it is more likely than not that it will be able to, retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Additionally, the Company annually performs a detailed credit review of the municipal securities owned to identify any potential credit concerns. There were no OTTI losses on debt securities related to credit losses recognized during the years ended December 31, 2021 and December 31, 2020.
The proceeds from sales and calls of securities AFS and their gross gain (loss) for the years ended December 31, 2021 and 2020, are shown below:
Years Ended December 31,
(in thousands)20212020
Proceeds (1)
$120,374 $151,253 
Gross gain859 1,723 
Gross loss(665)(282)
(1)The proceeds include the gross gain and loss.
Pledged Securities
Securities with carrying values of approximately $118.6 million and $105.1 million were pledged to secure public entity deposits, as of December 31, 2021 and December 31, 2020, respectively.