SECURITIES (Tables)

3 Months Ended

Mar. 31, 2021

SECURITIES

Schedule of 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 is provided in the tables below.

			Gross		Gross		Allowance
	Amortized		Unrealized		Unrealized		for Credit		Fair
(dollars in thousands)	Cost		Gain		Losses		Losses		Value
March 31, 2021
U.S. Treasury securities	$	900	$	0	$	0	$	0	$	900
U.S. government sponsored agencies		36,150		0		(1,260)		0		34,890
Mortgage-backed securities: residential		344,668		6,903		(4,239)		0		347,332
Mortgage-backed securities: commercial		35,220		700		(2)		0		35,918
State and municipal securities		402,602		19,777		(990)		0		421,389
Total	$	819,540	$	27,380	$	(6,491)	$	0	$	840,429
December 31, 2020
U.S. government sponsored agencies	$	36,492	$	56	$	(61)	$	0	$	36,487
Mortgage-backed securities: residential		270,231		9,289		(17)		0		279,503
Mortgage-backed securities: commercial		35,877		1,004		0		0		36,881
State and municipal securities		355,306		26,696		(28)		0		381,974
Total	$	697,906	$	37,045	$	(106)	$	0	$	734,845

Schedule of Available-For-Sale Securities By Maturity

Information regarding the fair value and amortized cost of available-for-sale debt securities by maturity as of March 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 a prepayment penalty.

	Amortized		Fair
(dollars in thousands)	Cost		Value
Due in one year or less	$	3,275	$	3,289
Due after one year through five years		10,703		10,961
Due after five years through ten years		37,520		39,209
Due after ten years		388,154		403,720
		439,652		457,179
Mortgage-backed securities		379,888		383,250
Total debt securities	$	819,540	$	840,429

Schedule of Sales of Securities Available For Sale

Securities proceeds, gross gains and gross losses are presented below.

	Three months ended March 31,
(dollars in thousands)	2021		2020
Sales of securities available-for-sale
Proceeds	$	13,506	$	0
Gross gains		753		0
Gross losses		0		0
Number of securities		7		0

Schedule of Available-For-Sale Securities Continuous Unrealized Loss Position

Information regarding securities with unrealized losses as of March 31, 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 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
March 31, 2021
U.S. government sponsored agencies	$	34,890	$	1,260	$	0	$	0	$	34,890	$	1,260
Mortgage-backed securities: residential		161,631		4,239		0		0		161,631		4,239
Mortgage-backed securities: commercial		2,567		2		0		0		2,567		2
State and municipal securities		63,625		990		0		0		63,625		990
Total temporarily impaired	$	262,713	$	6,491	$	—	$	—	$	262,713	$	6,491
December 31, 2020
U.S. government sponsored agencies	$	19,800	$	61	$	0	$	0	$	19,800	$	61
Mortgage-backed securities: residential		3		0		3,112		17		3,115		17
Mortgage-backed securities: commercial		0		0		0		0		0		0
State and municipal securities		6,921		28		0		0		6,921		28
Total temporarily impaired	$	26,724	$	89	$	3,112	$	17	$	29,836	$	106

Schedule of Quantitative Disclosure of Available-For-Sale Securities

The total number of securities with unrealized losses as of March 31, 2021 and December 31, 2020 is presented below.

	Less than	12 months
	12 months	or more	Total
March 31, 2021
U.S. government sponsored agencies	6	0	6
Mortgage-backed securities: residential	18	0	18
Mortgage-backed securities: commercial	1	0	1
State and municipal securities	45	0	45
Total temporarily impaired	70	0	70
December 31, 2020
U.S. government sponsored agencies	3	0	3
Mortgage-backed securities: residential	2	1	3
Mortgage-backed securities: commercial	0	0	0
State and municipal securities	2	0	2
Total temporarily impaired	7	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 March 31, 2021. Accrued interest receivable on available-for-sale debt securities totaled $4.4 million at March 31, 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 three months ended March 31, 2020.