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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2023
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
March 31, 2023
U.S. Treasuries$776,583 $— $911 $(11,365)$766,129 
U.S. government-sponsored agencies1,032 — — (45)987 
State, county and municipal securities33,965 — 21 (773)33,213 
Corporate debt securities16,397 (82)— (705)15,610 
SBA pool securities26,942 — 3 (1,603)25,342 
Mortgage-backed securities686,223 — 317 (30,985)655,555 
Total debt securities available-for-sale$1,541,142 $(82)$1,252 $(45,476)$1,496,836 
December 31, 2022
U.S. Treasuries$775,784 $— $131 $(16,381)$759,534 
U.S. government-sponsored agencies1,036 — — (57)979 
State, county and municipal securities35,358 — 17 (1,180)34,195 
Corporate debt securities16,397 (75)— (396)15,926 
SBA pool securities29,422 — 3 (2,027)27,398 
Mortgage-backed securities701,008 — 113 (39,093)662,028 
Total debt securities available-for-sale$1,559,005 $(75)$264 $(59,134)$1,500,060 

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
March 31, 2023
State, county and municipal securities$31,905 $— $(4,575)$27,330 
Mortgage-backed securities102,270 — (13,507)88,763 
Total debt securities held-to-maturity$134,175 $— $(18,082)$116,093 
December 31, 2022
State, county and municipal securities$31,905 $— $(5,380)$26,525 
Mortgage-backed securities102,959 — (14,946)88,013 
Total debt securities held-to-maturity$134,864 $— $(20,326)$114,538 

The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity as of March 31, 2023, 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$76,191 $75,649 $— $— 
Due from one year to five years732,862 722,272 — — 
Due from five to ten years23,108 22,363 — — 
Due after ten years22,758 20,997 31,905 27,330 
Mortgage-backed securities686,223 655,555 102,270 88,763 
 $1,541,142 $1,496,836 $134,175 $116,093 

Securities with a carrying value of approximately $927.7 million and $861.6 million at March 31, 2023 and December 31, 2022, respectively, serve as collateral to secure public deposits 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 March 31, 2023 and December 31, 2022:

 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
March 31, 2023      
U.S. Treasuries$509,696 $(9,501)$73,070 $(1,864)$582,766 $(11,365)
U.S. government-sponsored agencies— — 987 (45)987 (45)
State, county and municipal securities11,374 (174)12,223 (599)23,597 (773)
Corporate debt securities888 (10)13,223 (695)14,111 (705)
SBA pool securities472 (20)24,660 (1,583)25,132 (1,603)
Mortgage-backed securities369,445 (14,305)261,152 (16,680)630,597 (30,985)
Total debt securities available-for-sale$891,875 $(24,010)$385,315 $(21,466)$1,277,190 $(45,476)
December 31, 2022      
U.S. Treasuries$725,250 $(16,381)$— $— $725,250 $(16,381)
U.S. government sponsored agencies979 (57)— — 979 (57)
State, county and municipal securities27,438 (1,180)— — 27,438 (1,180)
Corporate debt securities13,271 (126)1,155 (270)14,426 (396)
SBA pool securities17,806 (1,298)9,329 (729)27,135 (2,027)
Mortgage-backed securities620,544 (37,774)16,847 (1,319)637,391 (39,093)
Total debt securities available-for-sale$1,405,288 $(56,816)$27,331 $(2,318)$1,432,619 $(59,134)

As of March 31, 2023, the Company’s available-for-sale security portfolio consisted of 438 securities, 410 of which were in an unrealized loss position. At March 31, 2023, the Company held 329 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, 2023, the Company held 30 U.S. Small Business Administration (“SBA”) pool securities, 24 state, county and municipal securities, six corporate securities, one U.S. government-sponsored agency security, and 20 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 March 31, 2023 and December 31, 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
March 31, 2023
State, county and municipal securities$7,746 $(254)$19,584 $(4,321)$27,330 $(4,575)
Mortgage-backed securities32,750 (1,650)56,013 (11,857)88,763 (13,507)
Total debt securities held-to-maturity$40,496 $(1,904)$75,597 $(16,178)$116,093 $(18,082)
December 31, 2022
State, county and municipal securities$16,512 $(1,488)$10,013 $(3,892)$26,525 $(5,380)
Mortgage-backed securities32,471 (1,925)55,542 (13,021)88,013 (14,946)
Total debt securities held-to-maturity$48,983 $(3,413)$65,555 $(16,913)$114,538 $(20,326)

As of March 31, 2023, the Company’s held-to-maturity security portfolio consisted of 25 securities, all of which were in an unrealized loss position. At March 31, 2023, the Company held 19 mortgage-backed securities and six state, county and municipal securities that were in an unrealized loss position.

At March 31, 2023 and December 31, 2022, 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 March 31, 2023, 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, 2023, management determined that $82,000 was attributable to credit impairment and an allowance for credit losses was recorded. The remaining $45.5 million in unrealized loss was determined to be from factors other than credit.

(dollars in thousands)Three Months Ended March 31,
Allowance for credit losses
20232022
Beginning balance$75 $— 
Provision for other credit losses7 — 
Ending balance$82 $— 

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 months ended March 31, 2023 and 2022:

Three Months Ended March 31,
(dollars in thousands)20232022
Unrealized holding gains (losses) on equity securities$6 $(27)
Net gain (loss) on securities$6 $(27)