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SECURITIES
 6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income is provided in the tables below.
(dollars in thousands)Amortized
Cost		Gross Unrealized GainGross Unrealized LossesAllowance for Credit LossesFair Value
June 30, 2021
U.S. Treasury securities$900 $0 $0 $0 $900 
U.S. government sponsored agencies90,120 506 (254)0 90,372 
Mortgage-backed securities: residential442,803 6,558 (2,383)0 446,978 
Mortgage-backed securities: commercial29,480 641 0 0 30,121 
State and municipal securities531,035 25,054 (225)0 555,864 
Total$1,094,338 $32,759 $(2,862)$0 $1,124,235 
December 31, 2020
U.S. government sponsored agencies$36,492 $56 $(61)$0 $36,487 
Mortgage-backed securities: residential270,231 9,289 (17)0 279,503 
Mortgage-backed securities: commercial35,877 1,004 0 0 36,881 
State and municipal securities355,306 26,696 (28)0 381,974 
Total$697,906 $37,045 $(106)$0 $734,845 
Information regarding the fair value and amortized cost of available-for-sale debt securities by maturity as of June 30, 2021 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without a prepayment penalty.
(dollars in thousands)Amortized CostFair
Value
Due in one year or less$2,695 $2,706 
Due after one year through five years10,785 11,057 
Due after five years through ten years58,964 61,382 
Due after ten years549,611 571,991 
622,055 647,136 
Mortgage-backed securities472,283 477,099 
Total debt securities$1,094,338 $1,124,235 
Securities proceeds, gross gains and gross losses are presented below.
Three months ended June 30,Six Months Ended June 30,
(dollars in thousands)2021202020212020
Sales of securities available-for-sale
Proceeds$458 $1,148 $13,964 $1,148 
Gross gains44 49 797 49 
Gross losses0 0 0 0 
Number of securities1 3 8 3 
In accordance with ASU No. 2017-8, purchase premiums for callable securities are amortized to the earliest call date and premiums on non-callable securities as well as discounts are recognized in interest income using the interest method over the terms of the securities or over the estimated lives of mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date.
Securities with carrying values of $335.1 million and $382.7 million million were pledged as of June 30, 2021 and December 31, 2020, respectively, as collateral for borrowings from the Federal Home Loan Bank and Federal Reserve Bank and for other purposes as permitted or required by law.
Information regarding securities with unrealized losses as of June 30, 2021 and December 31, 2020 is presented below. The tables divide the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
Less than 12 months12 months or moreTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
June 30, 2021            
U.S. government sponsored agencies$35,386 $254 $0 $0 $35,386 $254 
Mortgage-backed securities: residential171,318 2,383 0 0 171,318 2,383 
Mortgage-backed securities: commercial0 0 0 0 0 0 
State and municipal securities58,684 225 0 0 58,684 225 
Total temporarily impaired$265,388 $2,862 $0 $0 $265,388 $2,862 
December 31, 2020
U.S. government sponsored agencies$19,800 $61 $0 $0 $19,800 $61 
Mortgage-backed securities: residential3 0 3,112 17 3,115 17 
Mortgage-backed securities: commercial0 0 0 0 0 0 
State and municipal securities6,921 28 0 0 6,921 28 
Total temporarily impaired$26,724 $89 $3,112 $17 $29,836 $106 

The total number of securities with unrealized losses as of June 30, 2021 and December 31, 2020 is presented below.
Less than
12 months		12 months
or more		Total
June 30, 2021    
U.S. government sponsored agencies6 0 6 
Mortgage-backed securities: residential20 0 20 
Mortgage-backed securities: commercial0 0 0 
State and municipal securities44 0 44 
Total temporarily impaired70 0 70 
December 31, 2020
U.S. government sponsored agencies3 0 3 
Mortgage-backed securities: residential2 1 3 
Mortgage-backed securities: commercial0 0 0 
State and municipal securities2 0 2 
Total temporarily impaired7 1 8 
Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for sale debt securities in an unrealized loss position, management first assess whether it intends to sell, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement. For available-for sale debt securities that do not meet the criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, management compares the present value of cash flows expected to be collected
from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale debt securities was needed at June 30, 2021. Accrued interest receivable on available-for-sale debt securities totaled $5.0 million at June 30, 2021 and is excluded from the estimate of credit losses.
The U.S. government sponsored agencies and mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses.
Prior to the adoption of ASC 326, there was no OTTI recorded during the six months ended June 30, 2020.