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v3.20.1

Securities | 3 Months Ended
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Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract] |
Securities | SECURITIES Securities available for sale at March 31, 2020 and December 31, 2019 are as follows:
| March 31, 2020 |  | December 31, 2019
| Amortized |  | Unrealized |  | Fair |  | Amortized |  | Unrealized |  | Fair
| Cost |  | Gains |  | Losses |  | Value |  | Cost |  | Gains |  | Losses |  | Value
U.S. Gov’t sponsored entities | $ | 119,158 |  |  | $ | 6,908 |  |  | $ | 0 |  |  | $ | 126,066 |  |  | $ | 124,189 |  |  | $ | 2,924 |  |  | $ | (19 | ) |  | $ | 127,094 |
State & political subdivisions | 99,926 |  |  | 3,664 |  |  | (298 | ) |  | 103,292 |  |  | 101,177 |  |  | 3,288 |  |  | (102 | ) |  | 104,363 |
Residential & multi-family mortgage | 295,695 |  |  | 12,052 |  |  | (227 | ) |  | 307,520 |  |  | 273,404 |  |  | 4,117 |  |  | (885 | ) |  | 276,636 |
Corporate notes & bonds | 8,350 |  |  | 12 |  |  | (740 | ) |  | 7,622 |  |  | 8,350 |  |  | 14 |  |  | (282 | ) |  | 8,082 |
Pooled SBA | 24,168 |  |  | 933 |  |  | 0 |  |  | 25,101 |  |  | 25,063 |  |  | 274 |  |  | (163 | ) |  | 25,174 |
Other | 1,020 |  |  | 0 |  |  | (39 | ) |  | 981 |  |  | 1,020 |  |  | 0 |  |  | (56 | ) |  | 964 |
Total | $ | 548,317 |  |  | $ | 23,569 |  |  | $ | (1,304 | ) |  | $ | 570,582 |  |  | $ | 533,203 |  |  | $ | 10,617 |  |  | $ | (1,507 | ) |  | $ | 542,313 |
At March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019 are as follows:
| March 31, 2020 |  | December 31, 2019
Corporate equity securities | $ | 3,699 |  |  | $ | 7,946 |
Mutual funds | 487 |  |  | 807 |
Certificates of deposit | 614 |  |  | 350 |
Corporate notes and bonds | 655 |  |  | 655 |
U.S. Government sponsored entities | 52 |  |  | 51 |
Total | $ | 5,507 |  |  | $ | 9,809 |
Securities with unrealized losses at March 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: March 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 | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
State & political subdivisions | 3,761 |  |  | (111 | ) |  | 682 |  |  | (187 | ) |  | 4,443 |  |  | (298 | )
Residential & multi-family mortgage | 2,382 |  |  | (63 | ) |  | 2,822 |  |  | (164 | ) |  | 5,204 |  |  | (227 | )
Corporate notes & bonds | 0 |  |  | 0 |  |  | 4,848 |  |  | (740 | ) |  | 4,848 |  |  | (740 | )
Pooled SBA | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Other | 0 |  |  | 0 |  |  | 981 |  |  | (39 | ) |  | 981 |  |  | (39 | )
| $ | 6,143 |  |  | $ | (174 | ) |  | $ | 9,333 |  |  | $ | (1,130 | ) |  | $ | 15,476 |  |  | $ | (1,304 | )
December 31, 2019
| 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 | $ | 7,040 |  |  | $ | (3 | ) |  | $ | 14,989 |  |  | $ | (16 | ) |  | $ | 22,029 |  |  | $ | (19 | )
State & political subdivisions | 826 |  |  | (5 | ) |  | 684 |  |  | (97 | ) |  | 1,510 |  |  | (102 | )
Residential & 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 March 31, 2020 and December 31, 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 March 31, 2020 and December 31, 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, 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 March 31, 2020 and December 31, 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. On March 31, 2020 and December 31, 2019, securities carried at $409,616 and $405,200, respectively, were pledged to secure public deposits and for other purposes as provided by law. The following is a schedule of the contractual maturity of securities available for sale at March 31, 2020:
| Amortized Cost |  | Fair Value
1 year or less | $ | 64,728 |  |  | $ | 64,979 |
1 year – 5 years | 90,138 |  |  | 93,743 |
5 years – 10 years | 65,049 |  |  | 70,592 |
After 10 years | 7,519 |  |  | 7,666 |
| 227,434 |  |  | 236,980 |
Residential & multi-family mortgage | 295,695 |  |  | 307,520 |
Pooled SBA | 24,168 |  |  | 25,101 |
Other | 1,020 |  |  | 981 |
Total debt securities | $ | 548,317 |  |  | $ | 570,582 |
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. Information pertaining to security sales on available for sale securities is as follows:
| Proceeds |  | Gross Gains |  | Gross Losses
Three months ended March 31, 2020 | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Three months ended March 31, 2019 | $ | 11,403 |  |  | $ | 152 |  |  | $ | 4 |
The tax provision related to these net realized gains was $0 and $31 during the three months ended March 31, 2020 and 2019, respectively. Subsequent to March 31, 2020, the Corporation received $50,902 in proceeds from security sales on available for sale securities and recognized a net realized gain of $2,033, comprised of $2,100 in gross gains and $67 in gross losses. The Corporation’s decision to sell these securities was based on a proactive approach to reduce higher concentration levels in bond types and geographies. Given the total fair value of the securities available for sale portfolio of $570,582, at March 31, 2020, the Corporation believes this transaction does not represent a significant impact on the overall portfolio.

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- Definition The entire disclosure of cash, cash equivalents, and debt and equity securities, including any unrealized or realized gain (loss). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(1)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 + Details
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