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INVESTMENT SECURITIES
 9 Months Ended
Sep. 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
September 30, 2022
U.S. Treasuries$520,085 $— $— $(16,275)$503,810 
U.S. government-sponsored agencies1,039 — — (62)977 
State, county and municipal securities40,842 — 10 (1,584)39,268 
Corporate debt securities15,897 (79)— (522)15,296 
SBA pool securities31,063 — 4 (2,216)28,851 
Mortgage-backed securities710,523 — 12 (43,588)666,947 
Total debt securities available-for-sale$1,319,449 $(79)$26 $(64,247)$1,255,149 
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
September 30, 2022
State, county and municipal securities$31,905 $— $(6,832)$25,073 
Mortgage-backed securities98,309 — (15,568)82,741 
Total debt securities held-to-maturity$130,214 $— $(22,400)$107,814 
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 September 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$5,874 $5,861 $— $— 
Due from one year to five years548,134 530,891 — — 
Due from five to ten years25,568 24,709 — — 
Due after ten years29,350 26,741 31,905 25,073 
Mortgage-backed securities710,523 666,947 98,309 82,741 
 $1,319,449 $1,255,149 $130,214 $107,814 

Securities with a carrying value of approximately $663.6 million and $366.7 million at September 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 September 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
September 30, 2022      
U.S. Treasuries$503,810 $(16,275)$— $— $503,810 $(16,275)
U.S. government-sponsored agencies977 (62)— — 977 (62)
State, county and municipal securities30,049 (1,584)— — 30,049 (1,584)
Corporate debt securities12,596 (301)1,200 (221)13,796 (522)
SBA pool securities26,326 (2,170)2,191 (46)28,517 (2,216)
Mortgage-backed securities664,877 (43,588)1 — 664,878 (43,588)
Total debt securities available-for-sale$1,238,635 $(63,980)$3,392 $(267)$1,242,027 $(64,247)
December 31, 2021      
Corporate debt securities$— $— $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 September 30, 2022, the Company’s available-for-sale security portfolio consisted of 441 securities, 425 of which were in an unrealized loss position. At September 30, 2022, the Company held 338 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, 2022, the Company held 33 U.S. Small Business Administration (“SBA”) pool securities, 30 state, county and municipal securities, five corporate securities, one U.S. government-sponsored agency security, and 18 U.S. 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 September 30, 2022 and December 31, 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, 2022
State, county and municipal securities$24,323 $(6,382)$750 $(450)$25,073 $(6,832)
Mortgage-backed securities36,036 (3,065)46,705 (12,503)82,741 (15,568)
Total debt securities held-to-maturity$60,359 $(9,447)$47,455 $(12,953)$107,814 $(22,400)
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 September 30, 2022, the Company’s held-to-maturity security portfolio consisted of 24 securities, all of which were in an unrealized loss position. At September 30, 2022, the Company held 18 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 September 30, 2022 or December 31, 2021.

At September 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 September 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 September 30, 2022, management determined that $79,000 was attributable to credit impairment and an allowance for credit losses was recorded. The remaining $64.2 million 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
2022202120222021
Beginning balance$88 $81 $— $112 
Provision for expected credit losses(9)(81)79 (112)
Ending balance$79 $— $79 $— 
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 nine months ended September 30, 2022 and 2021:

Three Months Ended September 30,Nine Months Ended September 30,
(dollars in thousands)2022202120222021
Unrealized holding gains (losses) on equity securities$(21)$(2)$(70)$(13)
Net realized gains on sales of other investments— 532 270 532 
Net gain (loss) on securities$(21)$530 $200 $519