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INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 2022
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 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
June 30, 2022
U.S. Treasuries$314,613 $— $— $(1,724)$312,889 
U.S. government-sponsored agencies2,050 — — (29)2,021 
State, county and municipal securities41,428 — 261 (726)40,963 
Corporate debt securities15,897 (88)2 (348)15,463 
SBA pool securities35,854 — 6 (1,429)34,431 
Mortgage-backed securities658,508 — 420 (12,427)646,501 
Total debt securities available-for-sale$1,068,350 $(88)$689 $(16,683)$1,052,268 
December 31, 2021
U.S. government-sponsored agencies$7,084 $— $88 $— $7,172 
State, county and municipal securities45,470 — 2,342 — 47,812 
Corporate debt securities27,897 — 719 (120)28,496 
SBA pool securities44,312 — 958 (69)45,201 
Mortgage-backed securities448,124 — 15,822 (6)463,940 
Total debt securities available-for-sale$572,887 $— $19,929 $(195)$592,621 
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
June 30, 2022
State, county and municipal securities$31,905 $— $(4,279)$27,626 
Mortgage-backed securities79,749 — (10,231)69,518 
Total debt securities held-to-maturity$111,654 $— $(14,510)$97,144 
December 31, 2021
State, county and municipal securities$8,905 $4 $(198)$8,711 
Mortgage-backed securities70,945 — (1,450)69,495 
Total debt securities held-to-maturity$79,850 $4 $(1,648)$78,206 

The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity as of June 30, 2022, 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$6,745 $6,754 $— $— 
Due from one year to five years339,429 337,279 — — 
Due from five to ten years31,462 31,085 — — 
Due after ten years32,206 30,649 31,905 27,626 
Mortgage-backed securities658,508 646,501 79,749 69,518 
 $1,068,350 $1,052,268 $111,654 $97,144 

Securities with a carrying value of approximately $298.2 million and $366.7 million at June 30, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021:

 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
June 30, 2022      
U.S. Treasuries$312,889 $(1,724)$— $— $312,889 $(1,724)
U.S. government-sponsored agencies2,021 (29)— — 2,021 (29)
State, county and municipal securities15,199 (726)— — 15,199 (726)
Corporate debt securities12,244 (256)1,320 (92)13,564 (348)
SBA pool securities31,755 (1,379)2,310 (50)34,065 (1,429)
Mortgage-backed securities569,386 (12,427)1 — 569,387 (12,427)
Total debt securities available-for-sale$943,494 $(16,541)$3,631 $(142)$947,125 $(16,683)
December 31, 2021      
Corporate debt securities$— $— $1,380 $(120)$1,380 $(120)
SBA pool securities1,312 (6)2,572 (63)3,884 (69)
Mortgage-backed securities5,514 (6)1 — 5,515 (6)
Total debt securities available-for-sale$6,826 $(12)$3,953 $(183)$10,779 $(195)
As of June 30, 2022, the Company’s available-for-sale security portfolio consisted of 433 securities, 331 of which were in an unrealized loss position. At June 30, 2022, the Company held 270 mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. At June 30, 2022, the Company held 33 U.S. Small Business Administration (“SBA”) pool securities, 12 state, county and municipal securities, four corporate securities two U.S. government-sponsored agency securities, and ten US Treasury 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 June 30, 2022:

 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
June 30, 2022
State, county and municipal securities$27,626 $(4,279)$— $— $27,626 $(4,279)
Mortgage-backed securities69,518 (10,231)— — 69,518 (10,231)
Total debt securities held-to-maturity$97,144 $(14,510)$— $— $97,144 $(14,510)
December 31, 2021
State, county and municipal securities$3,707 $(198)$— $— $3,707 $(198)
Mortgage-backed securities69,495 (1,450)— — 69,495 (1,450)
Total debt securities held-to-maturity$73,202 $(1,648)$— $— $73,202 $(1,648)

As of June 30, 2022, the Company’s held-to-maturity security portfolio consisted of 19 securities, 19 of which were in an unrealized loss position. At June 30, 2022, the Company held 13 mortgage-backed securities and six state, county and municipal securities that were in an unrealized loss position.

During 2022 and 2021, 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 June 30, 2022 or December 31, 2021.

At June 30, 2022 and December 31, 2021, 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 June 30, 2022, 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 June 30, 2022, management determined that $88,000 was attributable to credit impairment and an allowance for credit losses was recorded. The remaining $16.7 million in unrealized loss was determined to be from factors other than credit.

(dollars in thousands)Three Months Ended June 30,Six Months Ended June 30,
Allowance for credit losses
2022202120222021
Beginning balance$— $101 $— $112 
Provision for expected credit losses88 (20)88 (31)
Ending balance$88 $81 $88 $81 

The Company's held-to-maturity securities have no expected credit losses, and no related allowance for credit losses has been established.
Total net gain (loss) on securities reported on the consolidated statements of income and comprehensive income is comprised of the following for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2022202120222021
Unrealized holding gains (losses) on equity securities$(22)$1 $(49)$(11)
Net realized gains on sales of other investments270 — 270 — 
Net gain (loss) on securities$248 $1 $221 $(11)