Investment Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

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)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2021
U.S. treasury securities	$	88,638	$	—	$	(1,087)	$	87,551
U.S. agency	17,916		5		(140)		17,781
State, county and municipal securities	252,632		877		(3,356)		250,153
Corporate debt securities	48,153		520		(265)		48,408
Mortgage-backed securities	539,172		2,160		(7,061)		534,271
Total debt securities	$	946,511	$	3,562	$	(11,909)	$	938,164


(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2020
U.S. treasury securities	$	245	$	—	$	—	$	245
U.S. agency	1,000		4		—		1,004
State, county and municipal securities	61,298		1,155		(65)		62,388
Corporate debt securities	4,250		1		(1)		4,250
Mortgage-backed securities	305,438		7,837		(348)		312,927
Total debt securities	$	372,231	$	8,997	$	(414)	$	380,814

The gross unrealized losses and estimated fair value of securities aggregated by category and length of time that securities have been in a continuous unrealized loss position are summarized as follows:


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2021
U.S. treasury securities	$	87,302	$	(1,087)	$	—	$	—	$	87,302	$	(1,087)
U.S. agency	10,969		(140)		—		—		10,969		(140)
State, county and municipal securities	180,551		(3,131)		5,970		(225)		186,521		(3,356)
Corporate debt securities	31,977		(265)		—		—		31,977		(265)
Mortgage-backed securities	377,413		(6,421)		21,129		(640)		398,542		(7,061)
Total debt securities	$	688,212	$	(11,044)	$	27,099	$	(865)	$	715,311	$	(11,909)

December 31, 2020
State, county and municipal securities	$	8,282	$	(65)	$	—	$	—	$	8,282	$	(65)
Corporate debt securities	999		(1)		—		—		999		(1)
Mortgage-backed securities	28,835		(77)		3,949		(271)		32,784		(348)
Total debt securities	$	38,116	$	(143)	$	3,949	$	(271)	$	42,065	$	(414)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At December 31, 2021, 272 securities have unrealized losses from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased.

As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other than temporary.

The amortized cost and fair value of investment securities as of December 31, 2021, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.


	Securities Available for Sale
(dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	453	$	453
Due after one year through five years	49,599		49,622
Due after five years through ten years	144,692		143,011
Due after ten years	212,595		210,807
	$	407,339	$	403,893
Mortgage-backed securities	539,172		534,271
	$	946,511	$	938,164

Proceeds from sales of investments available for sale were $96.8 million in 2021 and $58.1 million in 2020. Gross realized gains totaled $391,000 in 2021 and $1,228,000 in 2020. Gross realized losses totaled $478,000 in 2021 and $302,000 in 2020.

Investment securities having a carrying value totaling $247.4 million and $126.5 million as of December 31, 2021 and 2020, respectively, were pledged to secure public deposits and for other purposes.