On January 1, 2021, the Company adopted ASC 326, which made changes to the accounting for AFS debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. In addition, ASC 326 requires financial assets measured at amortized cost, including held-to-maturity debt securities, to measure an expected credit loss under CECL methodology that requires consideration of a broader range of reasonable and supportable information to inform credit losses estimates. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 3 “Accounting Standards” to the Consolidated Financial Statements for additional information.

All securities information presented as of June 30, 2021 is in accordance with ASC 326. All securities information presented prior to January 1, 2021 is in accordance with previous applicable GAAP. See the Company’s prior accounting policies in Note 1 “Summary of Significant Accounting Policies” of the 2020 Form 10-K.

ASC 326 makes targeted improvements to the accounting for credit losses on securities AFS. The concept of other-than-temporarily impaired has been replaced with the allowance for credit losses. Unlike securities held-to-maturity, securities available-for-sale are evaluated on an individual level and pooling of securities is not allowed.

Quarterly, the Company evaluates if a security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below:

At June 30, 2021, the results of the analysis did not identify any securities where the decline was indicative of credit loss factors; therefore, no DCF analysis was performed and no credit loss was recognized on any of the securities AFS.

Accrued interest receivable is excluded from the estimate of credit losses for securities AFS. At June 30, 2021, accrued interest receivable totaled $6.1 million for securities AFS and was reported in interest receivable on the accompanying Consolidated Balance Sheet.

All AFS securities were current with no securities past due or on nonaccrual as of June 30, 2021.

The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities at June 30, 2021 and December 31, 2020:


($ in thousands)	June 30, 2021
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale securities:
U.S. Treasury	$	36,806	$	205	$	54	$	36,957
Obligations of U.S. government agencies and sponsored entities		147,594		2,965		55		150,504
Tax-exempt and taxable obligations of states and municipal subdivisions		519,573		13,757		2,196		531,134
Mortgage-backed securities - residential		336,122		6,243		1,098		341,267
Mortgage-backed securities - commercial		185,161		4,948		627		189,482
Corporate obligations		29,939		1,485		7		31,417
Total	$	1,255,195	$	29,603	$	4,037	$	1,280,761


($ in thousands)	December 31, 2020
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-sale securities:
U.S. Treasury	$	9,063	$	320	$	—	$	9,383
Obligations of U.S. government agencies sponsored entities		97,107		3,130		67		100,170
Tax-exempt and taxable obligations of states and municipal subdivisions		464,348		16,326		300		480,374
Mortgage-backed securities - residential		228,257		8,206		42		236,421
Mortgage-backed securities - commercial		158,784		6,087		60		164,811
Corporate obligations		30,063		976		16		31,023
Total	$	987,622	$	35,045	$	485	$	1,022,182

The amortized cost and fair value of debt securities at June 30, 2021 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


($ in thousands)	June 30, 2021
	Available-for-Sale
	Amortized		Fair
	Cost		Value
Due less than one year	$	45,101	$	45,446
Due after one year through five years		143,216		147,901
Due after five years through ten years		308,271		313,844
Due greater than ten years		237,324		242,821
Mortgage-backed securities - residential		336,122		341,267
Mortgage-backed securities - commercial		185,161		189,482
Total	$	1,255,195	$	1,280,761

The amortized costs of securities pledged as collateral, to secure public deposits and for other purposes, was $795.3 million and $576.0 million at June 30, 2021 and December 31, 2020, respectively.

The following table summarizes available-for-sale securities with unrealized losses position for which an allowance for credit losses has not been recorded at June 30, 2021 and that are not deemed to be other than temporarily impaired as of December 31, 2020. The securities are aggregated by major security type and length of time in a continuous unrealized loss position:


($ in thousands)	June 30, 2021
	Losses < 12 Months				Losses 12 Months or >				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury	$	10,888	$	54	$	—	$	—	$	10,888	$	54
Obligations of U.S government agencies and sponsored entities		9,112		52		522		3		9,634		55
Tax-exempt and taxable obligations of state and municipal subdivisions		129,571		1,938		5,053		258		134,624		2,196
Mortgage-backed securities - residential		128,546		1,091		502		7		129,048		1,098
Mortgage-backed securities - commercial		56,200		611		1,660		16		57,860		627
Corporate obligations		—		—		41		7		41		7
Total	$	334,317	$	3,746	$	7,778	$	291	$	342,095	$	4,037


($ in thousands)	December 31, 2020
	Losses < 12 Months				Losses 12 Months or >				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of U.S government agencies and sponsored entities		6,593		65		326		2		6,919		67
Tax-exempt and taxable obligations of state and municipal subdivisions		10,193		300		—		—		10,193		300
Mortgage-backed securities - residential		30,202		42		11		—		30,213		42
Mortgage-backed securities - commercial		10,134		29		3,596		31		13,730		60
Corporate obligations		5,217		8		40		8		5,257		16
Total	$	62,339	$	444	$	3,973	$	41	$	66,312	$	485

At June 30, 2021 and December 31, 2020, the Company’s securities portfolio consisted of 145 and 71 securities, respectively, which were in an unrealized loss position. AFS securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost basis. No allowance for credit losses for available-for-sale debt securities was needed at June 30, 2021. The Company did not consider these investments to be other-than-temporarily impaired at December 31, 2020.