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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES
NOTE 2 – INVESTMENT SECURITIES

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 LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
March 31, 2021
U.S. government sponsored agencies$12,138 $— $256 $— $12,394 
State, county and municipal securities60,140 — 2,845 — 62,985 
Corporate debt securities46,131 (101)946 (229)46,747 
SBA pool securities54,305 — 1,488 (102)55,691 
Mortgage-backed securities654,015 — 27,851 (31)681,835 
Total debt securities$826,729 $(101)$33,386 $(362)$859,652 
December 31, 2020
U.S. government sponsored agencies$17,161 $— $343 $— $17,504 
State, county and municipal securities63,286 — 3,492 — 66,778 
Corporate debt securities51,639 (112)602 (233)51,896 
SBA pool securities59,973 — 2,620 (96)62,497 
Mortgage-backed securities748,521 — 35,797 (114)784,204 
Total debt securities$940,580 $(112)$42,854 $(443)$982,879 

The amortized cost and estimated fair value of debt securities available for sale securities as of March 31, 2021, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the
mortgages underlying these 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$20,247 $20,462 
Due from one year to five years48,460 50,244 
Due from five to ten years59,558 61,722 
Due after ten years44,449 45,389 
Mortgage-backed securities654,015 681,835 
 $826,729 $859,652 
 
Securities with a carrying value of approximately $372.8 million and $438.7 million at March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020:
 Less Than 12 Months12 Months or MoreTotal
(dollars in thousands)Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses
March 31, 2021      
Corporate debt securities$2,920 $(229)$— $— $2,920 $(229)
SBA pool securities1,755 (13)3,798 (89)5,553 (102)
Mortgage-backed securities10,102 (28)374 (3)10,476 (31)
Total debt securities$14,777 $(270)$4,172 $(92)$18,949 $(362)
December 31, 2020      
Corporate debt securities$10,159 $(233)$— $— $10,159 $(233)
SBA pool securities— — 3,948 (96)3,948 (96)
Mortgage-backed securities24,120 (114)2 — 24,122 (114)
Total debt securities$34,279 $(347)$3,950 $(96)$38,229 $(443)

As of March 31, 2021, the Company’s security portfolio consisted of 488 securities, 33 of which were in an unrealized loss position. At March 31, 2021, the Company held 21 mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. At March 31, 2021, the Company held nine U.S. Small Business Administration (“SBA”) pool securities and three corporate securities that were in an unrealized loss position.

During 2021 and 2020, 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 March 31, 2021 or December 31, 2020.

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 March 31, 2021, 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 March 31, 2021, management determined $101,000 was attributable to credit impairment and established the allowance for credit losses accordingly. The remaining $362,000 in unrealized loss was determined to be from factors other than credit.
(dollars in thousands)
Allowance for credit losses
Three Months Ended
March 31, 2021		Three Months Ended
March 31, 2020
Beginning balance$112 $— 
Provision for expected credit losses(11)— 
Ending balance$101 $— 

At March 31, 2021 and December 31, 2020, all of the Company’s mortgage-backed securities were obligations of government-sponsored agencies.

Total loss on securities reported on the consolidated statements of income and comprehensive income is comprised of the following for the three months ended March 31, 2021 and 2020:
(dollars in thousands)March 31, 2021March 31, 2020
Unrealized holding losses on equity securities$(12)$(9)
Total loss on securities$(12)$(9)