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Securities | 9 Months Ended
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Sep. 30, 2020
Investments Debt And Equity Securities [Abstract] |
Securities | Securities: The following table summarizes the amortized cost and fair value of the available for sale investment securities portfolio at September 30, 2020 and December 31, 2019 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income:
|  |  |  |  | Gross |  |  | Gross |  |  |  |  |
| Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
(In Thousands of Dollars) | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government sponsored entities | $ | 3,790 |  |  | $ | 118 |  |  | $ | 0 |  |  | $ | 3,908 |
State and political subdivisions |  | 307,946 |  |  |  | 19,606 |  |  |  | (131 | ) |  |  | 327,421 |
Corporate bonds |  | 3,574 |  |  |  | 147 |  |  |  | 0 |  |  |  | 3,721 |
Mortgage-backed securities - residential |  | 105,799 |  |  |  | 5,263 |  |  |  | 0 |  |  |  | 111,062 |
Collateralized mortgage obligations - residential |  | 28,734 |  |  |  | 827 |  |  |  | (2 | ) |  |  | 29,559 |
Small Business Administration |  | 5,652 |  |  |  | 186 |  |  |  | 0 |  |  |  | 5,838 |
Totals | $ | 455,495 |  |  | $ | 26,147 |  |  | $ | (133 | ) |  | $ | 481,509 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |  |
| Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
(In Thousands of Dollars) | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government sponsored entities | $ | 3,773 |  |  | $ | 41 |  |  | $ | (3 | ) |  | $ | 3,811 |
State and political subdivisions |  | 250,905 |  |  |  | 10,944 |  |  |  | (424 | ) |  |  | 261,425 |
Corporate bonds |  | 1,238 |  |  |  | 22 |  |  |  | 0 |  |  |  | 1,260 |
Mortgage-backed securities - residential |  | 145,886 |  |  |  | 2,396 |  |  |  | (372 | ) |  |  | 147,910 |
Collateralized mortgage obligations - residential |  | 11,459 |  |  |  | 101 |  |  |  | (213 | ) |  |  | 11,347 |
Small Business Administration |  | 6,534 |  |  |  | 0 |  |  |  | (54 | ) |  |  | 6,480 |
Totals | $ | 419,795 |  |  | $ | 13,504 |  |  | $ | (1,066 | ) |  | $ | 432,233 |
Proceeds from the sale of portfolio securities were $2.3 million and $17.7 million during the three and nine month periods ended September 30, 2020, respectively. Gross gains of $48 thousand and $330 thousand along with gross losses of $0 and $12 thousand were realized on these sales during the three and nine month periods ended September 30, 2020. $22 thousand of realized gains during the three month period and $117 thousand of realized losses during the nine month period were recognized in the income statement for equity securities as of September 30, 2020. Proceeds from the sale of portfolio securities were $4.7 million during the three month and $15.0 million during the nine month periods ended September 30, 2019. Gross gains were $19 thousand and $43 thousand along with gross losses of $4 thousand and $61 thousand during the same three and nine month periods ended September 30, 2019. $7 thousand of realized losses and $32 thousand of realized gains during the three and nine month periods ended September 30, 2019 were recognized in the income statement for equity securities. The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|  | September 30, 2020 |
(In Thousands of Dollars) |  | Amortized Cost |  |  | Fair Value |
Maturity |  |  |  |  |  |  |  |
Within one year |  | $ | 935 |  |  | $ | 941 |
One to five years |  |  | 7,982 |  |  |  | 8,151 |
Five to ten years |  |  | 25,863 |  |  |  | 27,470 |
Beyond ten years |  |  | 280,530 |  |  |  | 298,488 |
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities |  |  | 140,185 |  |  |  | 146,459 |
Total |  | $ | 455,495 |  |  | $ | 481,509 |
The following table summarizes the available for sale investment securities with unrealized losses at September 30, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position.
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(In Thousands of Dollars) |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions |  | $ | 9,816 |  |  | $ | (131 | ) |  | $ | 0 |  |  | $ | 0 |  |  | $ | 9,816 |  |  | $ | (131 | )
Collateralized mortgage obligations - residential |  |  | 311 |  |  |  | (2 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 311 |  |  |  | (2 | )
Total |  | $ | 10,127 |  |  | $ | (133 | ) |  | $ | 0 |  |  | $ | 0 |  |  | $ | 10,127 |  |  | $ | (133 | )
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(In Thousands of Dollars) |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government sponsored entities |  | $ | 0 |  |  | $ | 0 |  |  | $ | 622 |  |  | $ | (3 | ) |  | $ | 622 |  |  | $ | (3 | )
State and political subdivisions |  |  | 30,887 |  |  |  | (424 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 30,887 |  |  |  | (424 | )
Corporate bonds |  |  | 0 |  |  |  | 0 |  |  |  | 100 |  |  |  | 0 |  |  |  | 100 |  |  |  | 0 |
Mortgage-backed securities - residential |  |  | 14,435 |  |  |  | (98 | ) |  |  | 22,381 |  |  |  | (274 | ) |  |  | 36,816 |  |  |  | (372 | )
Collateralized mortgage obligations - residential |  |  | 1,198 |  |  |  | (18 | ) |  |  | 7,935 |  |  |  | (195 | ) |  |  | 9,133 |  |  |  | (213 | )
Small Business Administration |  |  | 6,479 |  |  |  | (54 | ) |  |  | 1 |  |  |  | 0 |  |  |  | 6,480 |  |  |  | (54 | )
Total |  | $ | 52,999 |  |  | $ | (594 | ) |  | $ | 31,039 |  |  | $ | (472 | ) |  | $ | 84,038 |  |  | $ | (1,066 | )
Other-Than-Temporary-Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities are generally evaluated for OTTI under ASC Topic 320: Investments - Debt Securities. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions and whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, or U.S. government sponsored enterprises, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment, and is based on the information available to management at a point in time. Due to market changes during the nine months of 2020, securities that had unrealized losses for greater than twelve months at December 31, 2019, appreciated and are in an unrealized gain position at September 30, 2020. Unrealized losses are generally due to changes in interest rates or general market conditions. As of September 30, 2020 and 2019, debt securities had net unrealized gains of $26 million and $12 million, respectively. These unrealized losses are generally due to changes in interest rates or general market conditions. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management concluded that the unrealized losses on debt securities were temporary. Due to potential changes in conditions, it is at least reasonably possible that changes in fair values and management’s assessments will occur in the near term and that such changes could materially affect the amounts reported in the Company’s financial statements. As of September 30, 2020, the Company’s security portfolio consisted of 783 securities, 53 of which were in an unrealized loss position. The majority of the unrealized losses on the Company’s securities are related to its holdings of state and political subdivisions and collateralized mortgage obligations securities as discussed below. Unrealized losses on debt securities issued by state and political subdivisions have not been recognized into income. These securities have maintained their investment grade ratings and management does not have the intent and does not expect to be required to sell these securities before their anticipated recovery. The fair value is expected to recover as the securities approach their maturity date. All of the Company’s holdings of collateralized mortgage obligations securities were issued by U.S. government-sponsored entities. Unrealized losses on these securities have not been recognized into income. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, the issues are guaranteed by the issuing entity which the U.S. government has affirmed its commitment to support, and because the Company does not have the intent to sell these collateralized mortgage obligations securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be OTTI.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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