Securities

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Securities available-for-sale at December 31, 2020 and December 31, 2019 are as follows:


	December 31, 2020						December 31, 2019
	Amortized		Gross Unrealized				Fair		Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Gov’t sponsored entities	$	150,404	$	6,698	$	(60)	$	157,042	$	124,189	$	2,924	$	(19)	$	127,094
State & political subdivisions	67,819		3,186		(122)		70,883		101,177		3,288		(102)		104,363
Residential & multi-family mortgage	306,054		9,276		(138)		315,192		273,404		4,117		(885)		276,636
Corporate notes & bonds	15,221		105		(400)		14,926		8,350		14		(282)		8,082

Pooled SBA	24,975		912		(1)		25,886		25,063		274		(163)		25,174
Other	1,020		0		(41)		979		1,020		0		(56)		964
Total	$	565,493	$	20,177	$	(762)	$	584,908	$	533,203	$	10,617	$	(1,507)	$	542,313

Information pertaining to security sales is as follows:


Year ended December 31	Proceeds		Gross Gains		Gross Losses
2020	$	57,185	$	2,257	$	67
2019	11,403		152		4
2018	0		0		0

The tax provision related to these net realized gains at December 31, 2020, 2019 and 2018 was $460, $31, and $0, respectively.

The following is a schedule of the contractual maturity of securities available for sale, excluding other securities, at December 31, 2020:


	December 31, 2020
	Amortized Cost		Fair Value
1 year or less	$	53,144	$	53,448
1 year – 5 years	109,071		112,643
5 years – 10 years	61,604		66,743
After 10 years	10,645		10,996
	234,464		243,830
Residential and multi-family mortgage	306,054		315,192
Pooled SBA	24,975		25,886

Total debt securities	$	565,493	$	584,908

Mortgage 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.

On December 31, 2020 and December 31, 2019, securities carried at $453,407 and $405,200, respectively, were pledged to secure public deposits and for other purposes as provided by law.

At December 31, 2020 and December 31, 2019, there were no holdings of securities by any one issuer, other than U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity.

Securities with unrealized losses at December 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:


December 31, 2020	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	$	24,991	$	(60)	0		0		$	24,991	$	(60)
State & political subdivisions	3,854		(19)		164		(103)		4,018		(122)
Residential & multi-family mortgage	44,092		(119)		3,277		(19)		47,369		(138)
Corporate notes & bonds	0		0		4,545		(400)		4,545		(400)
Pooled SBA	525		(1)		0		0		525		(1)
Other	0		0		979		(41)		979		(41)
	$	73,462	$	(199)	$	8,965	$	(563)	$	82,427	$	(762)


December 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	7,040	(3)	14,989	(16)	22,029	(19)
State & political subdivisions	826	(5)	684	(97)	1,510	(102)
Residential and multi-family mortgage	41,841	(346)	32,555	(539)	74,396	(885)
Corporate notes & bonds	0	0	4,718	(282)	4,718	(282)
Pooled SBA	8,560	(80)	6,075	(83)	14,635	(163)
Other	0	0	964	(56)	964	(56)
	58,267	(434)	59,985	(1,073)	118,252	(1,507)

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 December 31, 2020 and 2019, 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 December 31, 2020 and 2019 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, 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 December 31, 2020 and 2019, 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.

Trading securities at December 31, 2020 and December 31, 2019 are as follows:


	December 31, 2020		December 31, 2019
Corporate equity securities	$	4,343	$	7,946
Mutual funds	1,283		807
Money market	404		350
Corporate notes and bonds	569		655
U.S. Government sponsored entities	50		51
Total	$	6,649	$	9,809

During December 31, 2020, December 31, 2019, and December 31, 2018, the Corporation sold trading securities. Proceeds were $5,935 in December 31, 2020, $301 in December 31, 2019 and $455 in December 31, 2018, resulting in net realized gains of $75 in December 31, 2020, $16 in December 31, 2019, and $151 in December 31, 2018. During 2019, the Corporation sold Visa Class B shares. The proceeds and realized gain related to the sale of the Visa Class B shares were $463.