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SECURITIES
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other investment securities are classified as available-for-sale securities.
Available-for-Sale 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 (loss) at December 31, 2022 and 2021 is provided in the tables on the next page.
NOTE 2 – SECURITIES (continued)
(dollars in thousands)Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
2022
U.S. Treasury securities$3,057 $0 $(23)$0 $3,034 
U.S. government sponsored agencies156,184 0 (29,223)0 126,961 
Mortgage-backed securities: residential578,175 67 (85,934)0 492,308 
Mortgage-backed securities: commercial0 0 0 0 0 
State and municipal securities663,367 157 (100,299)0 563,225 
Total$1,400,783 $224 $(215,479)$0 $1,185,528 
2021
U.S. Treasury securities$900 $0 $0 $0 $900 
U.S. government sponsored agencies145,858 39 (2,445)0 143,452 
Mortgage-backed securities: residential487,157 4,455 (4,936)0 486,676 
Mortgage-backed securities: commercial522 1 0 0 523 
State and municipal securities742,532 25,749 (1,274)0 767,007 
Total$1,376,969 $30,244 $(8,655)$0 $1,398,558 
Held-to-Maturity Securities
Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross gains and unrealized gains and losses at December 31, 2022 is presented in the table below.
(dollars in thousands)Amortized
Cost		Gross Unrealized GainGross Unrealized LossesAllowance for Credit LossesFair Value
2022
State and municipal securities$128,242 $0 $(17,213)$0 $111,029 
On April 1, 2022, the Company elected to transfer securities from available-for-sale to held-to-maturity as an overall balance sheet management strategy. The fair value of securities transferred was $127.0 million from available-for-sale to held-to-maturity. The unrealized loss on the securities transferred from available-for-sale to held-to-maturity was $24.4 million ($19.3 million, net of tax) based on the fair value of the securities on the transfer date and was $22.9 million ($18.1 million, net of tax) at December 31, 2022. The Company has the current intent and ability to hold the transferred securities until maturity. Any net unrealized gain or loss on the transferred securities included in accumulated other comprehensive income (loss) at the time of the transfer will be amortized over the remaining life of the underlying security as an adjustment to the yield on those securities. There were no securities transferred from available-for-sale to held-to-maturity during the year ended December 31, 2021 and there were no securities classified as held-to-maturity at December 31, 2021.
Information regarding the fair value and amortized cost of available-for-sale and held-to-maturity debt securities by maturity as of December 31, 2022 is presented on the next page. 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)
Available-for-SaleHeld-to-Maturity
(dollars in thousands)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$3,073 $3,059 $0 $0 
Due after one year through five years6,443 6,431 0 0 
Due after five years through ten years57,481 55,437 0 0 
Due after ten years755,611 628,293 128,242 111,029 
822,608 693,220 128,242 111,029 
Mortgage-backed securities578,175 492,308 0 0 
Total debt securities$1,400,783 $1,185,528 $128,242 $111,029 
Security proceeds, gross gains and gross losses for 2022, 2021 and 2020 were as follows:
(dollars in thousands)202220212020
Sales of securities available-for-sale
Proceeds$25,332 $13,964 $8,018 
Gross gains140 797 433 
Gross losses(119)0 0 
Number of securities30 9 17 
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 fair values of $298.2 million and $300.8 million were pledged as of December 31, 2022 and 2021, respectively, as collateral for borrowings from the FHLB and Federal Reserve Bank and for other purposes as permitted or required by law.
Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities
Information regarding available-for-sale securities securities with unrealized losses as of December 31, 2022 and 2021 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
2022            
U.S. Treasury securities$3,034 $23 $0 $0 $3,034 $23 
U.S. government sponsored agencies8,420 1,350 118,541 27,873 126,961 29,223 
Mortgage-backed securities: residential165,897 18,637 323,727 67,297 489,624 85,934 
State and municipal securities277,967 33,405 244,436 66,894 522,403 100,299 
Total temporarily impaired$455,318 $53,415 $686,704 $162,064 $1,142,022 $215,479 
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 
NOTE 2 – SECURITIES (continued)
Information regarding held-to-maturity securities with unrealized losses as of December 31, 2022 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more. No investment securities were designated as held-to-maturity at December 31, 2021.
Less than 12 months12 months or moreTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
December 31, 2022
State and municipal securities$0 $0 $111,029 $17,213 $111,029 $17,213 
The number of securities with unrealized losses as of December 31, 2022 and 2021 is presented below.
Available-for-SaleHeld-to-Maturity
Less than
12 months		12 months
or more		TotalLess than
12 months		12 months
or more		Total
2022    
U.S. Treasury securities7 0 7 0 0 0 
U.S. government sponsored agencies1 16 17 0 0 0 
Mortgage-backed securities: residential95 41 136 0 0 0 
State and municipal securities269 223 492 0 41 41 
Total temporarily impaired372 280 652 0 41 41 
2021
U.S. government sponsored agencies8 5 13 0 0 0 
Mortgage-backed securities: residential29 3 32 0 0 0 
State and municipal securities80 0 80 0 0 0 
Total temporarily impaired117 8 125 0 0 0 
Available-for-sale and held-to-maturity 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 and for held-to-maturity securities, 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. For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.
No allowance for credit losses for available-for-sale securities was recorded at December 31, 2022 or 2021. No allowance for credit losses for held-to-maturity debt securities was recorded at December 31, 2022. Accrued interest receivable on available-for-sale and held-to-maturity debt securities totaled $8.9 million and $7.4 million at December 31, 2022 and 2021, respectively, 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 with a long history of no credit losses, except for certain non-local or local municipal securities, which are not rated.
Prior to the adoption of ASC 326, there was no other-than-tempoarary impairment ("OTTI") recorded during the year ended December 31, 2020.