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INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 2021
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 allowance for credit losses, 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, 2021
U.S. government sponsored agencies$12,120 $— $207 $— $12,327 
State, county and municipal securities58,016 — 2,820 — 60,836 
Corporate debt securities43,132 (81)810 (249)43,612 
SBA pool securities52,283 — 2,071 (73)54,281 
Mortgage-backed securities581,021 — 26,100 (10)607,111 
Total debt securities available-for-sale$746,572 $(81)$32,008 $(332)$778,167 
December 31, 2020
U.S. government sponsored agencies$17,161 $— $343 $— $17,504 
State, county and municipal securities63,286 — 3,492 — 66,778 
Corporate debt securities51,639 (112)602 (233)51,896 
SBA pool securities59,973 — 2,620 (96)62,497 
Mortgage-backed securities748,521 — 35,797 (114)784,204 
Total debt securities available-for-sale$940,580 $(112)$42,854 $(443)$982,879 

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, 2021
Mortgage-backed securities$29,055 $10 $(57)$29,008 
Total debt securities held-to-maturity$29,055 $10 $(57)$29,008 
The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity as of June 30, 2021, 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$21,699 $21,889 $— $— 
Due from one year to five years43,270 44,969 — — 
Due from five to ten years58,019 60,100 — — 
Due after ten years42,563 44,098 — — 
Mortgage-backed securities581,021 607,111 29,055 29,008 
 $746,572 $778,167 $29,055 $29,008 

Securities with a carrying value of approximately $389.6 million and $438.7 million at June 30, 2021 and December 31, 2020, 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, 2021 and December 31, 2020:

 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, 2021      
Corporate debt securities$2,920 $(249)$— $— $2,920 $(249)
SBA pool securities— — 2,983 (73)2,983 (73)
Mortgage-backed securities3,214 (7)424 (3)3,638 (10)
Total debt securities available-for-sale$6,134 $(256)$3,407 $(76)$9,541 $(332)
December 31, 2020      
Corporate debt securities$10,159 $(233)$— $— $10,159 $(233)
SBA pool securities— — 3,948 (96)3,948 (96)
Mortgage-backed securities24,120 (114)2 — 24,122 (114)
Total debt securities available-for-sale$34,279 $(347)$3,950 $(96)$38,229 $(443)

As of June 30, 2021, the Company’s available-for-sale security portfolio consisted of 470 securities, 17 of which were in an unrealized loss position. At June 30, 2021, the Company held nine 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, 2021, the Company held five U.S. Small Business Administration (“SBA”) pool securities and three corporate 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, 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
June 30, 2021
Mortgage-backed securities$9,583 $(57)$— $— $9,583 $(57)
Total debt securities held-to-maturity$9,583 $(57)$— $— $9,583 $(57)

As of June 30, 2021, the Company’s held-to-maturity security portfolio consisted of four mortgage-backed securities, two of which were in an unrealized loss position.
During 2021 and 2020, 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, 2021 or December 31, 2020.

At June 30, 2021 and December 31, 2020, 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, 2021, 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, 2021, management determined $81,000 was attributable to credit impairment and established the allowance for credit losses accordingly. The remaining $332,000 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
2021202020212020
Beginning balance$101 $— $112 $— 
Provision for expected credit losses(20)— (31)— 
Ending balance$81 $— $81 $— 

The Company's held-to-maturity securities have zero expected credit losses and no related allowance for credit losses has been established.

Total 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, 2021 and 2020:

Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2021202020212020
Unrealized holding gains (losses) on equity securities$1 $14 $(11)$5 
Total gain (loss) on securities$1 $14 $(11)$5