INVESTMENT SECURITIES AVAILABLE FOR SALE

12 Months Ended

Dec. 31, 2019

Investment Securities Available For Sale [Abstract]

INVESTMENT SECURITIES AVAILABLE FOR SALE

2.  INVESTMENT SECURITIES AVAILABLE FOR SALE

A summary of amortized cost and approximate fair value of investment securities available for sale included in the consolidated statements of condition as of December 31, 2019 and 2018 follows:

	2019
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
U.S. government-sponsored agencies	$	34,961	$	37	$	(214	)	$	34,784
Mortgage-backed securities-residential		337,489		2,365		(950	)		338,904
SBA pool securities		2,799		—		(15	)		2,784
State and political subdivisions		11,175		41		(1	)		11,215
Corporate bond		3,000		68		—			3,068
Total	$	389,424	$	2,511	$	(1,180	)	$	390,755

	2018
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
U.S. government-sponsored agencies	$	102,915	$	82	$	(984	)	$	102,013
Mortgage-backed securities-residential		254,383		418		(3,439	)		251,362
SBA pool securities		3,883		—		(44	)		3,839
State and political subdivisions		17,729		27		(146	)		17,610
Corporate bond		3,000		112		—			3,112
Total	$	381,910	$	639	$	(4,613	)	$	377,936

The amortized cost and fair value of investment securities available for sale as of December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity, such as mortgage-backed securities, marketable equity securities are shown separately.

(In thousands)
Maturing in:	Amortized Cost		Fair Value
One year or less	$	1,564	$	1,571
After one year through five years		17,318		17,299
After five years through ten years		30,254		30,197
After ten years		—		—
		49,136		49,067
Mortgage-backed securities-residential		337,489		338,904
SBA pool securities		2,799		2,784
Total	$	389,424	$	390,755

Securities available for sale with a fair value of $374.6 million and $337.1 million as of December 31, 2019 and December 31, 2018, respectively, were pledged, but not necessarily encumbered, to secure public funds and for other purposes required or permitted by law.

The following is a summary of the gross gains, gross losses and net tax benefit related to proceeds on sales of securities available for sale for the years ended December 31:

(In thousands)	2019		2018			2017
Proceeds on sales	$	—	$	19,542		$	—
Gross gains		—		45			—
Gross losses		—		(333	)		—
Net tax benefit		—		(68	)		—

The following table presents the Company’s available for sale securities with continuous unrealized losses and the approximate fair value of these investments as of December 31, 2019 and 2018.

	2019
	Duration of Unrealized Loss
	Less Than 12 Months					12 Months or Longer					Total
	Approximate					Approximate					Approximate
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. government-    sponsored agencies	$	19,758	$	(214	)	$	-	$	-		$	19,758	$	(214	)
Mortgage-backed    securities-residential		78,982		(382	)		69,142		(568	)		148,124		(950	)
SBA pool securities		—		—			2,784		(15	)		2,784		(15	)
State and political    subdivisions		783		(1	)		-		-			783		(1	)
Total	$	99,523	$	(597	)	$	71,926	$	(583	)	$	171,449	$	(1,180	)

	2018
	Duration of Unrealized Loss
	Less Than 12 Months					12 Months or Longer					Total
	Approximate					Approximate					Approximate
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. government-    sponsored agencies	$	18,840	$	(103	)	$	33,600	$	(881	)	$	52,440	$	(984	)
Mortgage-backed    securities-residential		51,697		(303	)		136,130		(3,136	)		187,827		(3,439	)
SBA pool securities		—		—			3,839		(44	)		3,839		(44	)
State and political    subdivisions		421		(1	)		7,274		(145	)		7,695		(146	)
Total	$	70,958	$	(407	)	$	180,843	$	(4,206	)	$	251,801	$	(4,613	)

Management believes that the unrealized losses on investment securities available for sale are temporary and due to interest rate fluctuations and/or volatile market conditions rather than the credit worthiness of the issuers. The Company does not intend to sell these securities nor is it likely that it will be required to sell the securities before their anticipated recovery; therefore, none of the securities in an unrealized loss position were determined to be other-than-temporarily impaired.

No other-than-temporary impairment charges were recognized in 2019, 2018 or 2017.

During the first quarter of 2018, the Company adopted ASU 2016-01 “Financial Instruments” which resulted in the reclassification of the Company’s investment in the CRA investment fund from available for sale to equity securities, which resulted in a gain of $117,000 and a loss of $105,000 for the years ended December 31, 2019 and 2018, respectively.  This amount is included in securities (losses)/gains, net on the Consolidated Statements of Income.