SECURITIES

Securities available for sale at September 30, 2018 and December 31, 2017 are as follows:



	September 30, 2018									December 31, 2017
	Amortized		Unrealized					Fair		Amortized		Unrealized					Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. gov’t sponsored entities	$	148,034	$	178	$	(2,703	)	$	145,509	$	108,578	$	478	$	(908	)	$	108,148
State & political subdivisions	137,848		1,643		(1,096		)	138,395		134,428		3,609		(314		)	137,723
Residential & multi-family mortgage	199,968		76		(5,409		)	194,635		111,214		304		(1,882		)	109,636
Corporate notes & bonds	12,358		31		(353		)	12,036		17,610		52		(462		)	17,200
Pooled SBA	32,079		66		(1,312		)	30,833		36,260		355		(575		)	36,040
Other	1,020		—		(94		)	926		1,020		—		(58		)	962
Total	$	531,307	$	1,994	$	(10,967	)	$	522,334	$	409,110	$	4,798	$	(4,199	)	$	409,709

At September 30, 2018 and December 31, 2017, there were no holdings of securities of any one issuer, other than the U.S. government sponsored entities, in an amount greater than 10% of shareholders’ equity. The Corporation’s residential and multi-family mortgage securities are issued by government sponsored entities.

Trading securities at September 30, 2018 and December 31, 2017 are as follows:



	September 30, 2018		December 31, 2017
Corporate equity securities	$	6,643	$	5,125
Mutual funds	1,687		1,499
Certificates of deposit	228		220
Corporate notes and bonds	278		254
U.S. government sponsored entities	51		52
Total	$	8,887	$	7,150

Securities with unrealized losses at September 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

September 30, 2018



	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. gov’t sponsored entities	$	63,025	$	(736	)	$	70,211	$	(1,967	)	$	133,236	$	(2,703	)
State & political subdivisions	45,113		(617		)	7,907		(479		)	53,020		(1,096		)
Residential & multi-family mortgage	106,762		(2,196		)	62,880		(3,213		)	169,642		(5,409		)
Corporate notes & bonds	5,229		(29		)	4,676		(324		)	9,905		(353		)
Pooled SBA	7,326		(106		)	19,377		(1,206		)	26,703		(1,312		)
Other	—		—			926		(94		)	926		(94		)
	$	227,455	$	(3,684	)	$	165,977	$	(7,283	)	$	393,432	$	(10,967	)

December 31, 2017



	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. gov’t sponsored entities	$	55,696	$	(540	)	$	34,754	$	(368	)	$	90,450	$	(908	)
State & political subdivisions	15,890		(69		)	4,104		(245		)	19,994		(314		)
Residential and multi-family mortgage	30,144		(153		)	63,699		(1,729		)	93,843		(1,882		)
Corporate notes & bonds	5,005		(9		)	9,042		(453		)	14,047		(462		)
Pooled SBA	—		—			22,270		(575		)	22,270		(575		)
Other	—		—			962		(58		)	962		(58		)
	$	106,735	$	(771	)	$	134,831	$	(3,428	)	$	241,566	$	(4,199	)

The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

A roll-forward of the other-than-temporary impairment amount related to credit losses for the three and nine months ended September 30, 2018 and 2017 is as follows:



	2018		2017
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period	$	—	$	2,071
Credit losses previously recognized on securities sold during the period	—		(2,071		)
Additional credit loss for which other-than-temporary impairment was not previously recognized	—		—
Additional credit loss for which other-than-temporary impairment was previously recognized	—		—
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period	$	—	$	—

For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the SEC, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed as appropriate given the following considerations: When reviewing securities for other-than-temporary impairment, management considers the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred. Management also considers the length of time and extent to which fair value has been less than cost, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

As of September 30, 2018 and December 31, 2017, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:


•	There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.


•	All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis.

On September 30, 2018 and December 31, 2017, securities carried at $311,336 and $319,575, respectively, were pledged to secure public deposits and for other purposes as provided by law.

Information pertaining to security sales on available for sale securities is as follows:



	Proceeds		Gross Gains		Gross Losses
Three months ended September 30, 2018	$	—	$	—	$	—
Three months ended September 30, 2017	$	7,757	$	76	$	(71	)
Nine months ended September 30, 2018	$	—	$	—	$	—
Nine months ended September 30, 2017	$	15,374	$	1,614	$	(71	)

The tax provision related to these net realized gains was $2 and $540 during the three and nine months ended September 30, 2017.

The following is a schedule of the contractual maturity of securities available for sale, at September 30, 2018:



	Amortized Cost		Fair Value
1 year or less	$	58,844	$	58,554
1 year – 5 years	164,854		163,471
5 years – 10 years	70,767		70,223
After 10 years	3,775		3,692
	298,240		295,940
Residential and multi-family mortgage	199,968		194,635
Pooled SBA	32,079		30,833
Other securities	1,020		926
Total securities	$	531,307	$	522,334

Mortgage and asset backed securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.