
	September 30, 2022								December 31, 2021
	Amortized		Unrealized				Fair		Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Government sponsored entities	$	3,166	$	0	$	(88)	$	3,078	$	110,788	$	2,728	$	(1,768)	$	111,748
State & political subdivisions	114,082		24		(18,124)		95,982		103,232		2,162		(1,682)		103,712
Residential & multi-family mortgage	263,957		2		(41,163)		222,796		437,021		4,127		(6,513)		434,635
Corporate notes & bonds	47,103		0		(4,649)		42,454		28,257		250		(443)		28,064
Pooled SBA	15,208		0		(1,282)		13,926		18,787		283		(38)		19,032

Total	$	443,516	$	26	$	(65,306)	$	378,236	$	698,085	$	9,550	$	(10,444)	$	697,191


	September 30, 2022								December 31, 2021
	Amortized		Unrealized				Fair		Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Government sponsored entities	$	307,672	$	0	$	(28,325)	$	279,347	$	0	$	0	$	0	$	0
Residential & multi-family mortgage	100,537		0		(10,782)		89,755		0		0		0		0





Total	$	408,209	$	0	$	(39,107)	$	369,102	$	0	$	0	$	0	$	0

The Corporation elected to transfer 23 AFS securities with an aggregate fair value of $101.1 million to a classification of HTM on January 1, 2022. In accordance with FASB ASC 320-10-55-24, the transfer from AFS to HTM must be recorded at the fair value of the AFS securities at the time of transfer. The net unrealized holding gain of $373 thousand, net of tax, at the date of transfer was retained in accumulated other comprehensive income (loss), with the associated pre-tax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities.

The Corporation elected to transfer 51 AFS securities with an aggregate fair value of $112.6 million to a classification of HTM on April 1, 2022. The net unrealized holding loss of $6.0 million, net of tax, at the date of transfer was retained in accumulated other comprehensive income (loss), with the associated pre-tax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities.


	Proceeds		Gross Gains		Gross Losses
Three months ended September 30, 2022	$	0	$	0	$	0
Three months ended September 30, 2021	0		0		0
Nine months ended September 30, 2022	22,164		651		0
Nine months ended September 30, 2021	0		0		0

The tax provision related to these net realized gains was zero and $137 thousand for the three and nine months ended September 30, 2022 and zero during the three and nine months ended September 30, 2021, respectively.


	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
1 year or less	$	4,744	$	4,722	$	5,092	$	4,972
1 year – 5 years	40,445		38,367		242,851		224,129
5 years – 10 years	91,164		77,651		54,242		45,773
After 10 years	27,998		20,774		5,487		4,473
	164,351		141,514		307,672		279,347
Residential & multi-family mortgage	263,957		222,796		100,537		89,755
Pooled SBA	15,208		13,926		0		0

Total debt securities	$	443,516	$	378,236	$	408,209	$	369,102

At September 30, 2022 and December 31, 2021, 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.

AFS debt securities with unrealized losses at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:


	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. Government sponsored entities	$	3,078	$	(88)	$	0	$	0	$	3,078	$	(88)
State & political subdivisions	44,052		(5,329)		45,418		(12,795)		89,470		(18,124)
Residential & multi-family mortgage	78,017		(7,116)		144,421		(34,047)		222,438		(41,163)
Corporate notes & bonds	34,567		(3,750)		6,887		(899)		41,454		(4,649)
Pooled SBA	11,334		(955)		2,592		(327)		13,926		(1,282)

	$	171,048	$	(17,238)	$	199,318	$	(48,068)	$	370,366	$	(65,306)


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government sponsored entities	$	23,733	$	(553)	$	37,911	$	(1,215)	$	61,644	$	(1,768)
State & political subdivisions	55,636		(1,399)		5,026		(283)		60,662		(1,682)
Residential & multi-family mortgage	248,690		(4,837)		45,185		(1,676)		293,875		(6,513)
Corporate notes & bonds	6,466		(249)		3,806		(194)		10,272		(443)
Pooled SBA	4,394		(37)		127		(1)		4,521		(38)

	$	338,919	$	(7,075)	$	92,055	$	(3,369)	$	430,974	$	(10,444)

HTM debt securities with unrealized losses at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:


	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. Government sponsored entities	$	225,598	$	(20,668)	$	53,749	$	(7,657)	$	279,347	$	(28,325)
Residential & multi-family mortgage	45,766		(4,417)		43,989		(6,365)		89,755		(10,782)





	$	271,364	$	(25,085)	$	97,738	$	(14,022)	$	369,102	$	(39,107)


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government sponsored entities	$	0	$	0	$	0	$	0	$	0	$	0
Residential & multi-family mortgage	0		0		0		0		0		0





	$	0	$	0	$	0	$	0	$	0	$	0

At September 30, 2022 and December 31, 2021, management performed an assessment for possible impairment related to credit losses 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 there is no credit related impairment of these debt securities at September 30, 2022 and December 31, 2021.

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 potential credit 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.

•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.