INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Note 2 – Investment Securities

Amortized cost and fair values of investment securities available-for-sale at December 31, 2020 are summarized as follows:


(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	56,207	$	995	$	(210)	$	56,992
United States sponsored mortgage-backed securities	94,968		972		(171)		95,769
Municipal securities	223,642		8,327		(82)		231,887
Other debt securities	7,500		—		—		7,500
Total debt securities	382,317		10,294		(463)		392,148
Other securities	18,401		146		(71)		18,476
Total investment securities available-for-sale	$	400,718	$	10,440	$	(534)	$	410,624

Amortized cost and fair values of investment securities available-for-sale at December 31, 2019 are summarized as follows:


(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	52,046	$	199	$	(249)	$	51,996
United States sponsored mortgage-backed securities	58,748		188		(624)		58,312
Municipal securities	108,750		4,399		(57)		113,092
Total debt securities	219,544		4,786		(930)		223,400
Other securities	12,247		181		(7)		12,421
Total investment securities available-for-sale	$	231,791	$	4,967	$	(937)	$	235,821

The following table summarizes amortized cost and fair values of debt securities by maturity:


	December 31, 2020
	Available for sale
(Dollars in thousands)	Amortized Cost		Fair Value
Within one year	$	—	$	—
After one year, but within five years	9,254		9,629
After five years, but within ten years	36,097		36,863
After ten years	336,966		345,656
Total	$	382,317	$	392,148

The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may repay sooner than scheduled.

Investment securities with a carrying value of $229.4 million and $68.0 million at December 31, 2020 and 2019, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window.

The Company’s investment portfolio includes securities that are in an unrealized loss position as of December 31, 2020, the details of which are included in the following table. Although these securities, if sold at December 31, 2020 would result in a pretax loss of $0.5 million, the Company has no intent to sell the applicable securities at such fair values, and maintains the Company has the ability to hold these securities until all principal has been recovered. It is more likely than not that the Company will not, for liquidity purposes, sell any securities at a loss. Declines in the fair values of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company’s ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency and whether or not the financial condition of the security issuer has severely deteriorated. As of December 31, 2020, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain material realized losses as a result of the current temporary decline in fair value.

The following table discloses the length of time that investments have remained in an unrealized loss position at December 31, 2020:


(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (27)	$	19,021	$	(68)	$	12,574	$	(142)
United States sponsored mortgage-backed securities (9)	15,331		(155)		3,349		(16)
Municipal securities (14)	11,856		(82)		—		—
Other securities (5)	3,947		(71)		—		—
	$	50,155	$	(376)	$	15,923	$	(158)

The following table discloses the length of time that investments have remained in an unrealized loss position at December 31, 2019:


(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (26)	$	8,160	$	(59)	$	15,399	$	(190)
United States sponsored mortgage-backed securities (40)	16,660		(170)		27,498		(454)
Municipal securities (13)	6,018		(40)		828		(17)
Other securities (2)	1,093		(7)		—		—
	$	31,931	$	(276)	$	43,725	$	(661)

The following table summarizes the investment sales and related gains and losses in 2020, 2019 and 2018:


(Dollars in thousands)	2020		2019		2018
Sales of available-for-sale investments	$	54,023	$	31,220	$	2,743
Gross gains	948		105		352

Gross losses	34		271		25

Sales of equity investments	$	4,622	$	5,968	$	—
Gross gains	3,501		—		—
Gross losses	—		7		—

The Company recognized unrealized holding gains on equity securities of $0.4 million, $13.8 million and $0.6 million in 2020, 2019 and 2018, respectively, and these were recorded in noninterest income. A majority of the 2019 unrealized holding gains on equity securities was the result of the Company recognizing a $13.5 million pre-tax gain after a valuation on its Fintech investment portfolio in the second quarter of 2019.

There were no held-to-maturity securities at December 31, 2020 or December 31, 2019 and the Company sold no held-to-maturity investments during the years of 2020, 2019 or 2018.