SECURITIES

Securities available for sale at March 31, 2019 and December 31, 2018 are as follows:



	March 31, 2019									December 31, 2018
	Amortized		Unrealized					Fair		Amortized		Unrealized					Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. Gov’t sponsored entities	$	129,993	$	1,127	$	(745	)	$	130,375	$	134,010	$	254	$	(1,570	)	$	132,694
State & political subdivisions	118,673		2,595		(178		)	121,090		134,662		1,942		(573		)	136,031
Residential & multi-family mortgage	207,588		1,711		(1,808		)	207,491		209,126		500		(3,573		)	206,053
Corporate notes & bonds	12,354		26		(476		)	11,904		12,356		22		(601		)	11,777
Pooled SBA	29,186		196		(581		)	28,801		30,163		135		(924		)	29,374
Other	1,020		0		(73		)	947		1,020		0		(86		)	934
Total	$	498,814	$	5,655	$	(3,861	)	$	500,608	$	521,337	$	2,853	$	(7,327	)	$	516,863

At March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018 are as follows:



	March 31, 2019		December 31, 2018
Corporate equity securities	$	6,947	$	5,828
Mutual funds	871		1,058
Certificates of deposit	179		268
Corporate notes and bonds	594		581
U.S. Government sponsored entities	51		51
Total	$	8,642	$	7,786

Securities with unrealized losses at March 31, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

March 31, 2019



	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	$	4,963	$	(2	)	$	69,440	$	(743	)	$	74,403	$	(745	)
State & political subdivisions	994		(13		)	10,389		(165		)	11,383		(178		)
Residential & multi-family mortgage	3,186		(10		)	87,606		(1,798		)	90,792		(1,808		)
Corporate notes & bonds	0		0			9,528		(476		)	9,528		(476		)
Pooled SBA	0		0			19,035		(581		)	19,035		(581		)
Other	0		0			947		(73		)	947		(73		)
	$	9,143	$	(25	)	$	196,945	$	(3,836	)	$	206,088	$	(3,861	)

December 31, 2018



	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	14,786	$	(41	)	$	70,676	$	(1,529	)	$	86,462	$	(1,570	)
State & political subdivisions	13,834		(62		)	21,080		(511		)	34,914		(573		)
Residential & multi-family mortgage	69,015		(656		)	87,286		(2,917		)	156,301		(3,573		)
Corporate notes & bonds	0		0			9,759		(601		)	9,759		(601		)
Pooled SBA	760		(7		)	20,795		(917		)	21,555		(924		)
Other	0		0			934		(86		)	934		(86		)
	$	98,395	$	(766	)	$	210,530	$	(6,561	)	$	309,925	$	(7,327	)

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.

At March 31, 2019 and December 31, 2018, management performed an assessment for possible other-than-temporary impairment of the Corporation’s debt securities, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. Based on the results of the assessment, management believes impairment of these debt securities at March 31, 2019 and December 31, 2018 to be temporary.

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 Securities and Exchange Commission, 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 March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018, securities carried at $269,591 and $290,717, 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 March 31, 2019	$	11,403	$	152	$	4
Three months ended March 31, 2018	$	0	$	0	$	0

The tax provision related to these net realized gains was $31 and $0, respectively.

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at March 31, 2019:



	Amortized Cost		Fair Value
1 year or less	$	58,770	$	58,412
1 year – 5 years	131,226		131,749
5 years – 10 years	65,503		67,547
After 10 years	5,521		5,661
	261,020		263,369
Residential and multi-family mortgage	207,588		207,491
Pooled SBA	29,186		28,801
Other	1,020		947
Total debt securities	$	498,814	$	500,608

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.