INVESTMENT SECURITIES (Dollars In Thousands)

The following table is the schedule of Available-For-Sale Securities at December 31, 2018 and 2017:



Available-For-Sale Securities
	U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
December 31, 2018
Available-For-Sale Securities, at Amortized Cost	$	47,071	$	1,193	$	273,227	$	1,000	$	322,491
Available-For-Sale Securities, at Fair Value	46,765		1,195		268,775		800		317,535
Gross Unrealized Gains	—		2		288		—		290
Gross Unrealized Losses	306		—		4,740		200		5,246
Available-For-Sale Securities, Pledged as Collateral, at Fair Value									236,163

Maturities of Debt Securities, at Amortized Cost:
Within One Year	42,068		201		738		—		43,007
From 1 - 5 Years	5,003		512		145,554		—		151,069
From 5 - 10 Years	—		—		106,777		—		106,777
Over 10 Years	—		480		20,158		1,000		21,638

Maturities of Debt Securities, at Fair Value:
Within One Year	41,864		204		743		—		42,811
From 1 - 5 Years	4,901		511		142,091		—		147,503
From 5 - 10 Years	—		—		105,902		—		105,902
Over 10 Years	—		480		20,039		800		21,319

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	—	$	—	$	107,550	$	—	$	107,550
12 Months or Longer	46,765		—		124,627		800		172,192
Total	$	46,765	$	—	$	232,177	$	800	$	279,742
Number of Securities in a Continuous Loss Position	10		—		86		1		97

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	—	$	—	$	841	$	—	$	841
12 Months or Longer	306		—		3,899		200		4,405
Total	$	306	$	—	$	4,740	$	200	$	5,246

Disaggregated Details:
US Treasury Obligations, at Amortized Cost	$	—
US Treasury Obligations, at Fair Value	—
US Agency Obligations, at Amortized Cost	47,071
US Agency Obligations, at Fair Value	46,765
US Government Agency Securities, at Amortized Cost					$	72,095
US Government Agency Securities, at Fair Value					71,800
Government Sponsored Entity Securities, at Amortized Cost					201,132
Government Sponsored Entity Securities, at Fair Value					196,975



Available-For-Sale Securities
	U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Mutual Funds and Equity Securities		Total Available- For-Sale Securities
December 31, 2017
Available-For-Sale Securities, at Amortized Cost	$	60,328	$	10,351	$	229,077	$	1,000	$	1,120	$	301,876
Available-For-Sale Securities, at Fair Value	59,894		10,349		227,596		800		1,561		300,200
Gross Unrealized Gains	—		9		485		—		441		935
Gross Unrealized Losses	434		11		1,966		200		—		2,611
Available-For-Sale Securities, Pledged as Collateral, at Fair Value											183,052

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	20,348	$	8,498	$	70,930	$	—	$	—	$	99,776
12 Months or Longer	39,546		—		80,759		800		—		121,105
Total	$	59,894	$	8,498	$	151,689	$	800	$	—	$	220,881
Number of Securities in a Continuous Loss Position	14		36		55		1		—		106

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	172	$	11	$	363	$	—	$	—	$	546
12 Months or Longer	262		—		1,603		200		—		2,065
Total	$	434	$	11	$	1,966	$	200	$	—	$	2,611

Disaggregated Details:
US Treasury Obligations, at Amortized Cost	$	—
US Treasury Obligations, at Fair Value	—
US Agency Obligations, at Amortized Cost	60,328
US Agency Obligations, at Fair Value	59,894
US Government Agency Securities, at Amortized Cost					$	40,832
US Government Agency Securities, at Fair Value					40,832
Government Sponsored Entity Securities, at Amortized Cost					188,245
Government Sponsored Entity Securities, at Fair Value					186,764

The following table is the schedule of Held-To-Maturity Securities at December 31, 2018 and 2017:



Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
December 31, 2018
Held-To-Maturity Securities, at Amortized Cost	$	235,782	$	47,694	$	283,476
Held-To-Maturity Securities, at Fair Value	233,359		46,979		280,338
Gross Unrealized Gains	486		—		486
Gross Unrealized Losses	2,909		715		3,624
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value					266,341

Maturities of Debt Securities, at Amortized Cost:
Within One Year	27,426		—		27,426
From 1 - 5 Years	93,495		47,694		141,189
From 5 - 10 Years	112,499		—		112,499
Over 10 Years	2,362		—		2,362

Maturities of Debt Securities, at Fair Value:
Within One Year	27,464		—		27,464
From 1 - 5 Years	93,130		46,979		140,109
From 5 - 10 Years	110,396		—		110,396
Over 10 Years	2,369		—		2,369

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	32,093	$	33,309	$	65,402
12 Months or Longer	110,947		13,670		124,617
Total	$	143,040	$	46,979	$	190,019
Number of Securities in a Continuous Loss Position	411		47		458

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	162	$	456	$	618
12 Months or Longer	2,747		259		3,006
Total	$	2,909	$	715	$	3,624

Disaggregated Details:
US Government Agency Securities, at Amortized Cost			$	2,180
US Government Agency Securities, at Fair Value			2,143
Government Sponsored Entity Securities, at Amortized Cost			45,514
Government Sponsored Entity Securities, at Fair Value			44,836



Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
December 31, 2017
Held-To-Maturity Securities, at Amortized Cost	$	275,530	$	60,377	$	335,907
Held-To-Maturity Securities, at Fair Value	275,353		60,548		335,901
Gross Unrealized Gains	1,691		269		1,960
Gross Unrealized Losses	1,868		98		1,966
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value					318,622

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	55,648	$	13,764	$	69,412
12 Months or Longer	65,152		3,257		68,409
Total	$	120,800	$	17,021	$	137,821
Number of Securities in a Continuous Loss Position	352		14		366

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	442	$	56	$	498
12 Months or Longer	1,425		43		1,468
Total	$	1,867	$	99	$	1,966

Disaggregated Details:
US Government Agency Securities, at Amortized Cost			$	2,680
US Government Agency Securities, at Fair Value			2,661
Government Sponsored Entity Securities, at Amortized Cost			57,697
Government Sponsored Entity Securities, at Fair Value			57,887

In the tables above, maturities of mortgage-backed securities are included based on their expected average lives. Actual maturities will differ because issuers may have the right to call or prepay obligations with or without prepayment penalties.

Securities in a continuous loss position, in the tables above for December 31, 2018 and December 31, 2017 do not reflect any deterioration of the credit worthiness of the issuing entities. U.S. agency issues, including mortgage-backed securities, are all rated AAA by Moody's and AA+ by Standard and Poor's. The state and municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. Obligations issued by school districts are supported by state aid. For any non-rated municipal securities, credit analysis is performed in-house based upon data that has been submitted by the issuers to the NY State Comptroller. That analysis shows no deterioration in the credit worthiness of the municipalities. Subsequent to December 31, 2018, there were no securities downgraded below investment grade.

The unrealized losses on these temporarily impaired securities are primarily the result of changes in interest rates for fixed rate securities where the interest rate received is less than the current rate available for new offerings of similar securities, changes in market spreads as a result of shifts in supply and demand, and/or changes in the level of prepayments for mortgage related securities. Because we do not currently intend to sell any of our temporarily impaired securities, and because it is not more likely-than-not we would be required to sell the securities prior to recovery, the impairment is considered temporary.

Pledged securities, in the tables above, are primarily used to collateralize state and municipal deposits, as required under New York State law. A small portion of the pledged securities are used to collateralize repurchase agreements and pooled deposits of our trust customers.

The following table is the schedule of Equity Securities at December 31, 2018. Upon the adoption of ASU 2016-01 effective January 1, 2018, Equity Securities are not included in Securities Available-For-Sale since unrealized gains and losses are now recorded in the Consolidated Statements of Income. Prior to January 1, 2018, Equity Securities were included in Securities Available-For-Sale.



Equity Securities

December 31, 2018
Equity Securities, at Fair Value	$	1,774

The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the year ended December 31, 2018:



	Twelve months ended December 31, 2018
Net Gain on Equity Securities	$	213
Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period	—
Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date	$	213

Schedule of Federal Reserve Bank and Federal Home Loan Bank Stock (at cost)



	December 31,
	2018		2017
Federal Reserve Bank Stock	$	1,132	$	1,120
Federal Home Loan Bank Stock	14,374		8,829
Total Federal Reserve Bank and Federal Home Loan Bank Stock	$	15,506	$	9,949