Securities (Tables)

9 Months Ended

Sep. 30, 2019

Securities available for sale consist of the following:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
September 30, 2019
U.S. agency	$	15,145	$	153	$	15	$	15,283
U.S. agency residential mortgage-backed		146,128		1,806		214		147,720
U.S. agency commercial mortgage-backed		11,182		155		18		11,319
Private label mortgage-backed		31,195		686		55		31,826
Other asset backed		94,799		185		199		94,785
Obligations of states and political subdivisions		99,352		1,880		93		101,139
Corporate		32,444		1,237		3		33,678
Trust preferred		1,966		-		146		1,820
Foreign government		2,020		4		2		2,022
Total	$	434,231	$	6,106	$	745	$	439,592

December 31, 2018
U.S. agency	$	20,198	$	9	$	193	$	20,014
U.S. agency residential mortgage-backed		124,777		817		1,843		123,751
U.S. agency commercial mortgage-backed		5,909		1		184		5,726
Private label mortgage-backed		29,735		321		637		29,419
Other asset backed		83,481		86		248		83,319
Obligations of states and political subdivisions		130,244		257		2,946		127,555
Corporate		34,866		29		586		34,309
Trust preferred		1,964		-		145		1,819
Foreign government		2,050		-		36		2,014
Total	$	433,224	$	1,520	$	6,818	$	427,926

Investments in a Continuous Unrealized Loss Position

Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:

	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)

September 30, 2019
U.S. agency	$	2,189	$	4	$	2,888	$	11	$	5,077	$	15
U.S. agency residential mortgage-backed		26,084		33		16,902		181		42,986		214
U.S. agency commercial mortgage-backed		1,987		12		882		6		2,869		18
Private label mortgage- backed		5,636		6		612		49		6,248		55
Other asset backed		23,926		100		11,487		99		35,413		199
Obligations of states and political subdivisions		14,457		37		4,362		56		18,819		93
Corporate		285		2		999		1		1,284		3
Trust preferred		900		100		920		46		1,820		146
Foreign government		-		-		1,519		2		1,519		2
Total	$	75,464	$	294	$	40,571	$	451	$	116,035	$	745

December 31, 2018
U.S. agency	$	7,150	$	46	$	11,945	$	147	$	19,095	$	193
U.S. agency residential mortgage-backed		18,374		180		48,184		1,663		66,558		1,843
U.S. agency commercial mortgage-backed		566		3		5,094		181		5,660		184
Private label mortgage-backed		8,273		57		16,145		580		24,418		637
Other asset backed		53,043		160		10,235		88		63,278		248
Obligations of states and political subdivisions		25,423		262		80,701		2,684		106,124		2,946
Corporate		17,758		343		9,222		243		26,980		586
Trust preferred		939		61		880		84		1,819		145
Foreign government		-		-		2,014		36		2,014		36
Total	$	131,526	$	1,112	$	184,420	$	5,706	$	315,946	$	6,818

Private Label Mortgage Backed Securities Below Investment Grade

At September 30, 2019, two private label mortgage-backed securities had credit related OTTI and are summarized as follows:

	Senior Security		Super Senior Security		Total
	(In thousands)

Fair value	$	645	$	647	$	1,292
Amortized cost		552		479		1,031
Non-credit unrealized loss		-		-		-
Unrealized gain		93		168		261
Cumulative credit related OTTI		757		457		1,214

Credit Losses Recognized in Earnings on Securities Available for Sale

A roll forward of credit losses recognized in earnings on securities available for sale follows:

	Three months ended September 30,					Nine months ended September 30,
	2019			2018		2019			2018
	(In thousands)					(In thousands)
Balance at beginning of period	$	1,594		$	1,594	$	1,594		$	1,594
Additions to credit losses on securities for which no previous OTTI was recognized		-			-		-			-
Increases to credit losses on securities for which OTTI was previously recognized		-			-		-			-
Reduction(1)		(380	)		-		(380	)		-
Balance at end of period	$	1,214		$	1,594	$	1,214		$	1,594

⁽¹⁾During the third quarter of 2019 one security with previously recorded OTTI was settled and balance is now zero.

Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity

The amortized cost and fair value of securities available for sale at September 30, 2019, by contractual maturity, follow:

	Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	13,331	$	13,347
Maturing after one year but within five years		53,809		54,524
Maturing after five years but within ten years		47,726		49,239
Maturing after ten years		36,061		36,832
		150,927		153,942
U.S. agency residential mortgage-backed		146,128		147,720
U.S. agency commercial mortgage-backed		11,182		11,319
Private label mortgage-backed		31,195		31,826
Other asset backed		94,799		94,785
Total	$	434,231	$	439,592

Gains and Losses Realized on Sale of Securities Available for Sale

A summary of proceeds from the sale of securities available for sale and gains and losses for the nine month periods ending September 30, follows:

			Realized
	Proceeds		Gains (1)		Losses
	(In thousands)
2019	$	44,305	$	169	$	32
2018	$	31,445	$	81	$	126

(1)	2018 excludes a $0.144 million gain on the sale of 1,000 VISA class B shares.