
(dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2021
U.S. government sponsored agencies	$	7,084	$	—	$	88	$	—	$	7,172
State, county and municipal securities	45,470		—		2,342		—		47,812
Corporate debt securities	27,897		—		719		(120)		28,496
SBA pool securities	44,312		—		958		(69)		45,201
Mortgage-backed securities	448,124		—		15,822		(6)		463,940
Total debt securities available-for-sale	$	572,887	$	—	$	19,929	$	(195)	$	592,621

December 31, 2020
U.S. government sponsored agencies	$	17,161	$	—	$	343	$	—	$	17,504
State, county and municipal securities	63,286		—		3,492		—		66,778
Corporate debt securities	51,639		(112)		602		(233)		51,896
SBA pool securities	59,973		—		2,620		(96)		62,497
Mortgage-backed securities	748,521		—		35,797		(114)		784,204
Total debt securities available-for-sale	$	940,580	$	(112)	$	42,854	$	(443)	$	982,879


(dollars in thousands) Securities held-to-maturity	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2021

State, county and municipal securities	$	8,905	$	4	$	(198)	$	8,711


Mortgage-backed securities	70,945		—		(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 December 31, 2021, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the 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-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	11,561	$	11,679	$	—	$	—
Due from one year to five years	31,957		33,185		—		—
Due from five to ten years	43,673		45,126		—		—
Due after ten years	37,572		38,691		8,905		8,711
Mortgage-backed securities	448,124		463,940		70,945		69,495
	$	572,887	$	592,621	$	79,850	$	78,206

Securities with a carrying value of approximately $366.7 million and $438.7 million at December 31, 2021 and 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 December 31, 2021 and 2020.


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands) Securities available-for-sale	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2021


Corporate debt securities	$	—	$	—	$	1,380	$	(120)	$	1,380	$	(120)
SBA pool securities	1,312		(6)		2,572		(63)		3,884		(69)
Mortgage-backed securities	5,514		(6)		1		—		5,515		(6)
Total debt securities	$	6,826	$	(12)	$	3,953	$	(183)	$	10,779	$	(195)

December 31, 2020


Corporate debt securities	$	10,159	$	(233)	$	—	$	—	$	10,159	$	(233)
SBA pool securities	—		—		3,948		(96)		3,948		(96)
Mortgage-backed securities	24,120		(114)		2		—		24,122		(114)
Total debt securities	$	34,279	$	(347)	$	3,950	$	(96)	$	38,229	$	(443)

As of December 31, 2021, the Company’s available-for-sale security portfolio consisted of 431 securities, 11 of which were in an unrealized loss position. At December 31, 2021, the Company held four mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. At December 31, 2021, the Company also held five SBA pool securities and two 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 September 30, 2021:


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands) Securities held-to-maturity	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2021

State, county and municipal securities	$	3,707	$	(198)	$	—	$	—	$	3,707	$	(198)


Mortgage-backed securities	69,495		(1,450)		—		—		69,495		(1,450)
Total debt securities held-to-maturity	$	73,202	$	(1,648)	$	—	$	—	$	73,202	$	(1,648)

As of December 31, 2021, the Company’s held-to-maturity security portfolio consisted of 14 securities, 13 of which were in an unrealized loss position. At December 31, 2021, the Company held 11 mortgage-backed securities and two state, county and municipal securities that 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 December 31, 2021 or 2020.

Management and the Company’s Asset and Liability Committee (the “ALCO Committee”) evaluates 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 investment securities at an

unrealized loss position at December 31, 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 December 31, 2021, management determined none was attributable to credit impairment and decreased the allowance for credit losses accordingly. The remaining $195,000 in unrealized loss was determined to be from factors other than credit.


	For the Years Ended December 31,
(dollars in thousands)	2021		2020
Allowance for credit losses
Beginning balance	$	112	$	—
Current-period provision for expected credit losses	(112)		112



Ending balance	$	—	$	112


	For the Years Ended December 31,
(dollars in thousands)	2021		2020		2019
Gross gains on sales of securities	$	—	$	—	$	522
Gross losses on sales of securities	—		—		(464)
Net realized gains on sales of securities available-for-sale	$	—	$	—	$	58

Sales proceeds	$	—	$	—	$	64,995

Net gain (loss) on securities reported on the consolidated statements of income is comprised of the following:


	For the Years Ended December 31,
(dollars in thousands)	2021		2020		2019
Net realized gains on sales of securities available-for-sale	$	—	$	—	$	58
Unrealized holding gains (losses) on equity securities	(17)		5		19
Net realized gains on sales of other investments	532		—		61
Net gain (loss) on securities	$	515	$	5	$	138