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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 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)
Securities available-for-sale
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
September 30, 2021
U.S. government sponsored agencies$12,102 $— $150 $— $12,252 
State, county and municipal securities51,541 — 2,675 — 54,216 
Corporate debt securities33,397 — 722 (121)33,998 
SBA pool securities46,354 — 1,629 (66)47,917 
Mortgage-backed securities513,408 — 22,718 (5)536,121 
Total debt securities available-for-sale$656,802 $— $27,894 $(192)$684,504 
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 available-for-sale$940,580 $(112)$42,854 $(443)$982,879 

The amortized cost and estimated fair value of securities held-to-maturity along with gross unrealized gains and losses are summarized as follows:

(dollars in thousands)
Securities held-to-maturity
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
September 30, 2021
State, county and municipal securities$3,905 $— $(121)$3,784 
Mortgage-backed securities60,546 — (1,026)59,520 
Total debt securities held-to-maturity$64,451 $— $(1,147)$63,304 
The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity as of September 30, 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:

Available-for-SaleHeld-to-Maturity
(dollars in thousands)
Amortized
Cost		Estimated Fair ValueAmortized
Cost		Estimated Fair Value
Due in one year or less$17,228 $17,357 $— $— 
Due from one year to five years34,212 35,780 — — 
Due from five to ten years52,456 54,242 — — 
Due after ten years39,498 41,004 3,905 3,784 
Mortgage-backed securities513,408 536,121 60,546 59,520 
 $656,802 $684,504 $64,451 $63,304 

Securities with a carrying value of approximately $354.2 million and $438.7 million at September 30, 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 available-for-sale securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at September 30, 2021 and December 31, 2020:

 Less Than 12 Months12 Months or MoreTotal
(dollars in thousands)
Securities available-for-sale
Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses
September 30, 2021      
Corporate debt securities$— $— $1,380 $(121)$1,380 $(121)
SBA pool securities— — 2,754 (66)2,754 (66)
Mortgage-backed securities3,034 (5)137 — 3,171 (5)
Total debt securities available-for-sale$3,034 $(5)$4,271 $(187)$7,305 $(192)
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 available-for-sale$34,279 $(347)$3,950 $(96)$38,229 $(443)

As of September 30, 2021, the Company’s available-for-sale security portfolio consisted of 450 securities, 13 of which were in an unrealized loss position. At September 30, 2021, the Company held six mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. At September 30, 2021, the Company held five U.S. Small Business Administration (“SBA”) pool securities and two corporate securities that were in an unrealized loss position.

The following table shows the gross unrealized losses and estimated fair value of held-to-maturity securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at September 30, 2021:

 Less Than 12 Months12 Months or MoreTotal
(dollars in thousands)
Securities held-to-maturity
Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses
September 30, 2021
State, county and municipal securities$3,784 $(121)$— $— $3,784 $(121)
Mortgage-backed securities59,520 (1,026)— — 59,520 (1,026)
Total debt securities held-to-maturity$63,304 $(1,147)$— $— $63,304 $(1,147)
As of September 30, 2021, the Company’s held-to-maturity security portfolio consisted of 11 securities, 11 of which were in an unrealized loss position. At September 30, 2021, the Company held nine mortgage-backed securities and two state, county and municipal 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 September 30, 2021 or December 31, 2020.

At September 30, 2021 and December 31, 2020, all of the Company’s mortgage-backed securities were obligations of government-sponsored agencies.

Management and the Company’s Asset and Liability Committee (the “ALCO Committee”) evaluate available-for-sale 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 available-for-sale investment securities at an unrealized loss position at September 30, 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 September 30, 2021, management determined that none were attributable to credit impairment and reversed the previously established allowance for credit losses accordingly. The $192,000 in unrealized loss was determined to be from factors other than credit.

(dollars in thousands)Three Months Ended September 30,Nine Months Ended September 30,
Allowance for credit losses
2021202020212020
Beginning balance$81 $— $112 $— 
Provision for expected credit losses(81)68 (112)68 
Ending balance$— $68 $— $68 

The Company's held-to-maturity securities have zero expected credit losses and no related allowance for credit losses has been established.

Total net gain on securities reported on the consolidated statements of income and comprehensive income is comprised of the following for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended September 30,Nine Months Ended September 30,
(dollars in thousands)2021202020212020
Unrealized holding gains (losses) on equity securities$(2)$— $(13)$5 
Net realized gains on sales of other investments532 — 532 — 
Total gain on securities$530 $— $519 $5