Securities Available for Sale

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

2.Securities Available for Sale

The amortized cost, gross unrealized gains and losses, and fair value of securities held at March 31, 2022, and December 31, 2021, are as follows:

			Gross		Gross
(DOLLARS IN THOUSANDS)	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	$		$		$			$
March 31, 2022
U.S. treasuries		35,683		—		(1,392	)		34,291
U.S. government agencies		27,609		2		(1,720	)		25,891
U.S. agency mortgage-backed securities		56,150		50		(2,123	)		54,077
U.S. agency collateralized mortgage obligations		35,640		15		(1,207	)		34,448
Non-agency MBS/CMO		23,307		—		(275	)		23,032
Asset-backed securities		91,795		96		(1,098	)		90,793
Corporate bonds		81,973		56		(3,244	)		78,785
Obligations of states and political subdivisions		263,028		698		(15,550	)		248,176
Total securities available for sale		615,185		917		(26,609	)		589,493
December 31, 2021
U.S. Treasuries		14,821		14		(22	)		14,813
U.S. government agencies		29,613		50		(642	)		29,021
U.S. agency mortgage-backed securities		51,964		502		(478	)		51,988
U.S. agency collateralized mortgage obligations		30,917		241		(81	)		31,077
Asset-backed securities		100,998		605		(384	)		101,219
Corporate bonds		82,617		420		(528	)		82,509
Obligations of states and political subdivisions		242,807		5,848		(1,189	)		247,466
Total securities available for sale		553,737		7,680		(3,324	)		558,093

The amortized cost and fair value of securities available for sale at March 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions.

CONTRACTUAL MATURITY OF DEBT SECURITIES

(DOLLARS IN THOUSANDS)

	Amortized
	Cost		Fair Value
	$		$
Due in one year or less		29,664		29,220
Due after one year through five years		127,954		124,750
Due after five years through ten years		151,046		143,953
Due after ten years		306,521		291,570
Total debt securities		615,185		589,493

Securities available for sale with a par value of $88,591,000 and $94,283,000 at March 31, 2022, and December 31, 2021, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair value of these pledged securities was $86,576,000 at March 31, 2022, and $96,521,000 at December 31, 2021.

9

ENB FINANCIAL CORP

Notes to the Unaudited Consolidated Interim Financial Statements

Proceeds from active sales of securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification.

PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE

(DOLLARS IN THOUSANDS)

	Three Months Ended March 31,
	2022		2021
	$		$
Proceeds from sales		8,575		50,341
Gross realized gains		139		141
Gross realized losses		—		(54	)

Management evaluates all of the Corporation’s securities for other-than-temporary impairment (OTTI) on a periodic basis. No securities in the portfolio had other-than-temporary impairment recorded in the first three months of 2022 or 2021.

Information pertaining to securities with gross unrealized losses at March 31, 2022, and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:

TEMPORARY IMPAIRMENTS OF SECURITIES

(DOLLARS IN THOUSANDS)

	Less than 12 months					More than 12 months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	$		$			$		$			$		$
As of March 31, 2022
U.S. Treasuries		34,291		(1,392	)		—		—			34,291		(1,392	)
U.S. government agencies		2,001		(9	)		22,689		(1,711	)		24,690		(1,720	)
U.S. agency mortgage-backed securities		32,444		(1,122	)		12,274		(1,001	)		44,718		(2,123	)
U.S. agency collateralized mortgage obligations		28,325		(1,193	)		2,884		(14	)		31,209		(1,207	)
Non-Agency MBS/CMO		9,275		(275	)		—		—			9,275		(275	)
Asset-backed securities		73,552		(1,005	)		5,973		(93	)		79,525		(1,098	)
Corporate bonds		54,102		(3,244	)		—		—			54,102		(3,244	)
Obligations of states & political subdivisions		188,073		(14,222	)		9,645		(1,328	)		197,718		(15,550	)
Total temporarily impaired securities		422,063		(22,462	)		53,465		(4,147	)		475,528		(26,609	)
As of December 31, 2021
U.S. Treasuries		4,959		(22	)		—		—			4,959		(22	)
U.S. government agencies		16,386		(519	)		7,375		(123	)		23,761		(642	)
U.S. agency mortgage-backed securities		24,090		(468	)		2,458		(10	)		26,548		(478	)
U.S. agency collateralized mortgage obligations		14,206		(66	)		2,965		(15	)		17,171		(81	)
Asset-backed securities		50,466		(338	)		2,826		(46	)		53,292		(384	)
Corporate bonds		44,907		(528	)		—		—			44,907		(528	)
Obligations of states & political subdivisions		70,021		(1,043	)		6,023		(146	)		76,044		(1,189	)
Total temporarily impaired securities		225,035		(2,984	)		21,647		(340	)		246,682		(3,324	)

In the debt security portfolio there were 289 positions that were carrying unrealized losses as of March 31, 2022. There were no instruments considered to be other-than-temporarily impaired at March 31, 2022.