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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 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
September 30, 2023
U.S. Treasuries$781,154 $— $— $(20,558)$760,596 
U.S. government-sponsored agencies1,026 — — (57)969 
State, county and municipal securities29,492 — — (1,789)27,703 
Corporate debt securities16,171 (80)— (1,055)15,036 
SBA pool securities23,834 — 2 (2,085)21,751 
Mortgage-backed securities650,535 — 16 (52,525)598,026 
Total debt securities available-for-sale$1,502,212 $(80)$18 $(78,069)$1,424,081 
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
September 30, 2023
State, county and municipal securities$31,905 $— $(7,350)$24,555 
Mortgage-backed securities109,954 — (18,820)91,134 
Total debt securities held-to-maturity$141,859 $— $(26,170)$115,689 
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 September 30, 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$380,435 $375,844 $— $— 
Due from one year to five years439,956 422,385 — — 
Due from five to ten years10,753 9,897 — — 
Due after ten years20,533 17,929 31,905 24,555 
Mortgage-backed securities650,535 598,026 109,954 91,134 
 $1,502,212 $1,424,081 $141,859 $115,689 

Securities with a carrying value of approximately $827.9 million and $861.6 million at September 30, 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 September 30, 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
September 30, 2023      
U.S. Treasuries$230,519 $(2,956)$530,077 $(17,602)$760,596 $(20,558)
U.S. government-sponsored agencies— — 969 (57)969 (57)
State, county and municipal securities6,739 (135)19,549 (1,654)26,288 (1,789)
Corporate debt securities491 (9)13,045 (1,046)13,536 (1,055)
SBA pool securities43 — 21,547 (2,085)21,590 (2,085)
Mortgage-backed securities22,744 (834)573,996 (51,691)596,740 (52,525)
Total debt securities available-for-sale$260,536 $(3,934)$1,159,183 $(74,135)$1,419,719 $(78,069)
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 September 30, 2023, the Company’s available-for-sale security portfolio consisted of 419 securities, 412 of which were in an unrealized loss position. At September 30, 2023, the Company held 320 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, 2023, the Company held 30 U.S. Small Business Administration (“SBA”) pool securities, 27 state, county and municipal securities, six corporate securities, one U.S. government-sponsored agency security, and 28 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, 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
September 30, 2023
State, county and municipal securities$— $— $24,555 $(7,350)$24,555 $(7,350)
Mortgage-backed securities12,794 (1,046)78,340 (17,774)91,134 (18,820)
Total debt securities held-to-maturity$12,794 $(1,046)$102,895 $(25,124)$115,689 $(26,170)
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 September 30, 2023, the Company’s held-to-maturity security portfolio consisted of 27 securities, all of which were in an unrealized loss position. At September 30, 2023, the Company held 21 mortgage-backed securities and six state, county and municipal securities that were in an unrealized loss position.

At September 30, 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 September 30, 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 September 30, 2023, management determined that $80,000 was attributable to credit impairment and an allowance for credit losses was recorded. The remaining $78.1 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
2023202220232022
Beginning balance$82 $88 $75 $— 
Provision for other credit losses(2)(9)5 79 
Ending balance$80 $79 $80 $79 

The Company's held-to-maturity securities have no expected credit losses, and no related allowance for credit losses has been established.
The following table is a summary of sales activities in the Company's debt securities available for sale for the three and nine months ended September 30, 2023 and 2022:

Three Months Ended September 30,Nine Months Ended September 30,
(dollars in thousands)2023202220232022
Gross gains on sales of securities$— $— $— $— 
Gross losses on sales of securities— — — — 
Net realized gains (losses) on sales of debt securities available for sale$— $— $— $— 
Sales proceeds$216 $— $216 $— 

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, 2023 and 2022:

Three Months Ended September 30,Nine Months Ended September 30,
(dollars in thousands)2023202220232022
Unrealized holding gains (losses) on equity securities$(16)$(21)$(16)$(70)
Net realized gains on sales of other investments— — — 270 
Net gain (loss) on securities$(16)$(21)$(16)$200