The amortized cost and fair value of securities were as follows (dollars in thousands):

There were no sales of securities available for sale during the years ended December 31, 2022 and 2021.

 

Contractual maturities of debt securities at December 31, 2022 were as follows (dollars in thousands):

NOTE 2 – SECURITIES (Continued)

 

Securities with unrealized losses at December 31, 2022 and 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands):

Other-Than-Temporary-Impairment

 

Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At December 31, 2022, 444 securities available for sale with fair values totaling $464.4 million had unrealized losses totaling $40.1 million. At December 31, 2021, 127 securities available for sale with fair values totaling $191.4 million had unrealized losses totaling $3.1 million. At December 31, 2022, 76 securities held to maturity with fair values totaling $317.0 million had unrealized losses totaling $16.5 million. At December 31, 2021, 9 securities held to maturity with fair values totaling $61.2 million had unrealized losses totaling $215,000.  Management has the ability and intent to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities.  In addition, management believes it is more likely than not that the Company will not be required to sell any of its investment securities before a recovery of cost.  Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality.  As such, no OTTI charges were necessary during 2022 and 2021.

On January 1, 2022, the Company transferred all of its US Treasury securities held at that time from available for sale to held to maturity.  These securities had an amortized cost of $123.5 million and an unrealized gain of $113,000 at the date of transfer.  The transfer was made at fair value, with the unrealized gain becoming part of purchase premium which will be amortized over the remaining life of the securities.  The other comprehensive income component is separated from the remaining available for sale securities and is amortized over the remaining life of the securities transferred.  Management has the ability and intent to hold these securities until they mature, at which time the Company will receive full value for the securities.

NOTE 2 – SECURITIES (Continued)

Securities with a carrying value of approximately $3.5 million and $4.9 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at December 31, 2022 and 2021, respectively.

The Company also has an investment in a fund that invests in projects qualifying for Community Reinvestment Act credit.  As an equity investment, accounting standards require this $1.5 million investment be carried at fair value and reported in other assets at December 31, 2022 and 2021.