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Securities
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities SECURITIES
Securities available for sale at September 30, 2019 and December 31, 2018 are as follows:
 
September 30, 2019
 
December 31, 2018
 
Amortized
 
Unrealized
 
Fair
 
Amortized
 
Unrealized
 
Fair
 
Cost
 
Gains
 
Losses
 
Value
 
Cost
 
Gains
 
Losses
 
Value
U.S. Gov’t sponsored entities
$
135,215

 
$
3,620

 
$
(67
)
 
$
138,768

 
$
134,010

 
$
254

 
$
(1,570
)
 
$
132,694

State & political subdivisions
111,468

 
3,687

 
(91
)
 
115,064

 
134,662

 
1,942

 
(573
)
 
136,031

Residential & multi-family mortgage
236,241

 
5,362

 
(637
)
 
240,966

 
209,126

 
500

 
(3,573
)
 
206,053

Corporate notes & bonds
7,350

 
14

 
(361
)
 
7,003

 
12,356

 
22

 
(601
)
 
11,777

Pooled SBA
26,810

 
361

 
(70
)
 
27,101

 
30,163

 
135

 
(924
)
 
29,374

Other
1,020

 
0

 
(55
)
 
965

 
1,020

 
0

 
(86
)
 
934

Total
$
518,104

 
$
13,044

 
$
(1,281
)
 
$
529,867

 
$
521,337

 
$
2,853

 
$
(7,327
)
 
$
516,863



At September 30, 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 September 30, 2019 and December 31, 2018 are as follows:
 
September 30, 2019
 
December 31, 2018
Corporate equity securities
$
7,259

 
$
5,828

Mutual funds
911

 
1,058

Certificates of deposit
210

 
268

Corporate notes and bonds
657

 
581

U.S. Government sponsored entities
51

 
51

Total
$
9,088

 
$
7,786


Securities with unrealized losses at September 30, 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:
September 30, 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
$
9,045

 
$
(7
)
 
$
23,954

 
$
(60
)
 
$
32,999

 
$
(67
)
State & political subdivisions
0

 
0

 
714

 
(91
)
 
714

 
(91
)
Residential & multi-family mortgage
15,527

 
(67
)
 
35,984

 
(570
)
 
51,511

 
(637
)
Corporate notes & bonds
0

 
0

 
4,639

 
(361
)
 
4,639

 
(361
)
Pooled SBA
9,118

 
(20
)
 
6,576

 
(50
)
 
15,694

 
(70
)
Other
0

 
0

 
965

 
(55
)
 
965

 
(55
)
 
$
33,690

 
$
(94
)
 
$
72,832

 
$
(1,187
)
 
$
106,522

 
$
(1,281
)

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
)
 
$
85,462

 
$
(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
)
 
$
308,925

 
$
(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 September 30, 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 September 30, 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; the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred, 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, 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 September 30, 2019 and December 31, 2018, securities carried at $257,233 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 September 30, 2019
$
0

 
$
0

 
$
0

Three months ended September 30, 2018
$
0

 
$
0

 
$
0

Nine months ended September 30, 2019
$
11,403

 
$
152

 
$
4

Nine months ended September 30, 2018
$
0

 
$
0

 
$
0


The tax provision related to these net realized gains was $0 and $31 during the three and nine months ended September 30, 2019.
The following is a schedule of the contractual maturity of securities available for sale at September 30, 2019:
 
Amortized
Cost
 
Fair
Value
1 year or less
$
71,463

 
$
71,468

1 year – 5 years
108,190

 
110,168

5 years – 10 years
68,636

 
73,242

After 10 years
5,744

 
5,957

 
254,033

 
260,835

Residential and multi-family mortgage
236,241

 
240,966

Pooled SBA
26,810

 
27,101

Other
1,020

 
965

Total debt securities
$
518,104

 
$
529,867



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.