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SECURITIES
 12 Months Ended
Dec. 31, 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 at December 31, 2021 is provided in the tables below.
(dollars in thousands)Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Losses		Fair
Value
2021
U.S. Treasury securities$900 $0 $0 $900 
U.S. government sponsored agencies145,858 39 (2,445)143,452 
Mortgage-backed securities: residential487,157 4,455 (4,936)486,676 
Mortgage-backed securities: commercial522 1 0 523 
State and municipal securities742,532 25,749 (1,274)767,007 
Total$1,376,969 $30,244 $(8,655)$1,398,558 
2020
U.S. government sponsored agencies$36,492 $56 $(61)$36,487 
Mortgage-backed securities: residential270,231 9,289 (17)279,503 
Mortgage-backed securities: commercial35,877 1,004 0 36,881 
State and municipal securities355,306 26,696 (28)381,974 
Total$697,906 $37,045 $(106)$734,845 
Information regarding the fair value and amortized cost of available-for-sale debt securities by maturity as of December 31, 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 prepayment penalty.
NOTE 2 – SECURITIES (continued)
(dollars in thousands)Amortized
Cost		Fair
Value
Due in one year or less$3,700 $3,704 
Due after one year through five years9,534 9,823 
Due after five years through ten years52,232 54,892 
Due after ten years823,824 842,940 
889,290 911,359 
Mortgage-backed securities487,679 487,199 
Total debt securities$1,376,969 $1,398,558 
Security proceeds, gross gains and gross losses for 2021, 2020 and 2019 were as follows:
(dollars in thousands)202120202019
Sales of securities available-for-sale
Proceeds$13,964 $8,018 $57,114 
Gross gains797 433 279 
Gross losses0 0 (137)
Number of securities9 17 46 
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 $300.8 million and $382.7 million were pledged as of December 31, 2021 and 2020, respectively, as collateral for borrowings from the FHLB and Federal Reserve Bank and for other purposes as permitted or required by law.
Information regarding securities with unrealized losses as of December 31, 2021 and 2020 is presented below. The tables distribute 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 LossesFair
Value		Unrealized LossesFair
Value		Unrealized Losses
2021            
U.S. government sponsored agencies$85,968 $1,364 $28,676 $1,081 $114,644 $2,445 
Mortgage-backed securities: residential272,264 4,076 22,792 860 295,056 4,936 
State and municipal securities138,659 1,274 0 0 138,659 1,274 
Total temporarily impaired$496,891 $6,714 $51,468 $1,941 $548,359 $8,655 
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 
State and municipal securities6,921 28 0 0 6,921 28 
Total temporarily impaired$26,724 $89 $3,112 $17 $29,836 $106 
NOTE 2 – SECURITIES (continued)
The number of securities with unrealized losses as of December 31, 2021 and 2020 is presented below.
Less than
12 months		12 months
or more		Total
2021    
U.S. government sponsored agencies8 5 13 
Mortgage-backed securities: residential29 3 32 
State and municipal securities80 0 80 
Total temporarily impaired117 8 125 
2020
U.S. government sponsored agencies3 0 3 
Mortgage-backed securities: residential2 1 3 
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 assesses 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 December 31, 2021. Accrued interest receivable on available-for-sale debt securities totaled $7.4 million at December 31, 2021 and is excluded from the estimate of credit losses.
Ninety-nine percent of the securities are backed by the U.S. government, government agencies, government sponsored agencies or are rated above investment grade, except for certain non-local or local municipal securities, which are not rated.
The Company does not have a history of actively trading securities, but keeps the securities available-for-sale should liquidity for interest rate risk management or other needs develop that would warrant the sale of securities. While these securities are held in the available-for-sale portfolio, it is management’s current intent and ability to hold them until a recovery in fair value or maturity.