INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

The amortized cost and estimated fair value of securities available for sale along with allowance for credit losses, gross unrealized gains and losses are summarized as follows:


(dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2020
U.S. government sponsored agencies	$	17,161	$	—	$	343	$	—	$	17,504
State, county and municipal securities	63,286		—		3,492		—		66,778
Corporate debt securities	51,639		(112)		602		(233)		51,896
SBA pool securities	59,973		—		2,620		(96)		62,497
Mortgage-backed securities	748,521		—		35,797		(114)		784,204
Total debt securities	$	940,580	$	(112)	$	42,854	$	(443)	$	982,879

December 31, 2019
U.S. government sponsored agencies	$	22,246	$	—	$	116	$	—	$	22,362
State, county and municipal securities	102,952		—		2,310		(2)		105,260
Corporate debt securities	51,720		—		1,281		(2)		52,999
SBA pool securities	73,704		—		617		(409)		73,912
Mortgage-backed securities	1,129,816		—		19,937		(883)		1,148,870
Total debt securities	$	1,380,438	$	—	$	24,261	$	(1,296)	$	1,403,403

The amortized cost and estimated fair value of debt securities available for sale as of December 31, 2020, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without penalty. Therefore, these securities are not included in the maturity categories in the following maturity summary.


(dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	29,918	$	30,228
Due from one year to five years	49,109		51,276
Due from five to ten years	66,769		68,972
Due after ten years	46,263		48,199
Mortgage-backed securities	748,521		784,204
	$	940,580	$	982,879

Securities with a carrying value of approximately $438.7 million and $679.6 million at December 31, 2020 and 2019, respectively, serve as collateral to secure public deposits, securities sold under agreements to repurchase and for other purposes required or permitted by law.

The following table shows the gross unrealized losses and estimated fair value of securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2020 and 2019.


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2020


Corporate debt securities	$	10,159	$	(233)	$	—	$	—	$	10,159	$	(233)
SBA pool securities	—		—		3,948		(96)		3,948		(96)
Mortgage-backed securities	24,120		(114)		2		—		24,122		(114)
Total debt securities	$	34,279	$	(347)	$	3,950	$	(96)	$	38,229	$	(443)


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2019

State, county and municipal securities	$	803	$	(2)	$	—	$	—	$	803	$	(2)
Corporate debt securities	2,573		(2)		—		—		2,573		(2)
SBA pool securities	28,521		(285)		4,825		(124)		33,346		(409)
Mortgage-backed securities	99,279		(416)		52,326		(467)		151,605		(883)
Total debt securities	$	131,176	$	(705)	$	57,151	$	(591)	$	188,327	$	(1,296)

As of December 31, 2020, the Company’s security portfolio consisted of 510 securities, 40 of which were in an unrealized loss position. At December 31, 2020, the Company held 27 mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. At December 31, 2020, the Company held seven SBA pool securities and six corporate securities that were in an unrealized loss position.

During 2020 and 2019, the Company received timely and current interest and principal payments on all of the securities classified as corporate debt securities. The Company’s investments in subordinated debt include investments in regional and super-regional banks on which the Company prepares regular analysis through review of financial information and credit ratings. Investments in preferred securities are also concentrated in the preferred obligations of regional and super-regional banks through non-pooled investment structures. The Company did not have investments in “pooled” trust preferred securities at December 31, 2020 or 2019.

Management and the Company’s Asset and Liability Committee (the “ALCO Committee”) evaluate securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation, to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. The Company does not intend to sell these investment securities at an unrealized loss position at December 31, 2020, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on the results of management's review, at December 31, 2020, management determined $112,000 was attributable to credit impairment and increased the allowance for credit losses accordingly. The remaining $443,000 in unrealized loss was determined to be from factors other than credit.


(dollars in thousands)	Year Ended December 31, 2020
Allowance for credit losses
Beginning balance	$	—
Current-period provision for expected credit losses	112



Ending balance	$	112

At December 31, 2020 and 2019, all of the Company's mortgage-backed securities were obligations of government-sponsored agencies.

The following table is a summary of sales activities in the Company's investment securities available for sale:


	For the Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Gross gains on sales of securities	$	—	$	522	$	390
Gross losses on sales of securities	—		(464)		(301)
Net realized gains on sales of securities available for sale	$	—	$	58	$	89

Sales proceeds	$	—	$	64,995	$	68,727

Total gain (loss) on securities reported on the consolidated statements of income is comprised of the following:


	For the Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Net realized gains on sales of securities available for sale	$	—	$	58	$	89
Unrealized holding gains (losses) on equity securities	5		19		(126)
Net realized gains on sales of other investments	—		61		—
Total gain (loss) on securities	$	5	$	138	$	(37)