INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2020

Amortized Cost and Fair Value of Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of investment securities at December 31, 2020 and 2019 were as follows (in thousands):

December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
U.S. agency securities	$	79,065	$	2,403	$	(52	)	$	81,416
U.S. Treasuries		27,442		601		-			28,043
Obligations of state and political subdivisions		100,089		2,938		(55	)		102,972
Corporate obligations		6,413		96		-			6,509
Mortgage-backed securities in government sponsored entities		74,512		1,874		(137	)		76,249
Total available-for-sale securities	$	287,521	$	7,912	$	(244	)	$	295,189

December 31, 2019
Available-for-sale securities:
U.S. agency securities	$	83,410	$	1,523	$	(70	)	$	84,863
U.S. Treasuries		27,394		267		-			27,661
Obligations of state and political subdivisions		60,667		865		(77	)		61,455
Corporate obligations		3,250		78		-			3,328
Mortgage-backed securities in government sponsored entities		63,086		468		(155	)		63,399
Total available-for-sale securities	$	237,807	$	3,201	$	(302	)	$	240,706

Unrealized Losses and Fair Value of Investments

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at December 31, 2020 and 2019 (in thousands). As of December 31, 2020, the Company owned 29 securities each of whose fair value was less than its cost basis.

	Less than Twelve Months					Twelve Months or Greater					Total
2020	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. agency securities	$	13,720	$	(52	)	$	-	$	-		$	13,720	$	(52	)
Obligations of states and political subdivisions		5,407		(55	)		-		-			5,407		(55	)
Mortgage-backed securities in government sponsored entities		14,600		(99	)		5,633		(38	)		20,233		(137	)
Total securities	$	33,727	$	(206	)	$	5,633	$	(38	)	$	39,360	$	(244	)

2019
U.S. agency securities	$	14,587	$	(63	)	$	13,094	$	(7	)	$	27,681	$	(70	)
Obligations of states and political subdivisions		7,508		(75	)		1,507		(2	)		9,015		(77	)
Mortgage-backed securities in government sponsored entities		27,737		(97	)		9,559		(58	)		37,296		(155	)
Total securities	$	49,832	$	(235	)	$	24,160	$	(67	)	$	73,992	$	(302	)

Gross Gains and Losses on Available-for-sale Securities

Proceeds from sales of securities available-for-sale during 2020, 2019 and 2018 were $23,415,000, $10,489,000 and $27,149,000, respectively. The gross gains realized during 2020 consisted of $344,000 from the sales of seventeen mortgage backed securities. The gross losses realized during 2020 consisted of $39,000 from the sale of two mortgage backed securities. The gross gains realized during 2019 consisted of $1,000 and $24,000 from the sales of two agency securities and four treasury securities, respectively. The gross losses realized during 2019 consisted of $1,000 from the sale of one agency security. The gross gains realized during 2018 consisted of $160,000 from the sale of fourteen municipal securities. The gross losses realized during 2018 consisted of $179,000 from the sale of seven agency securities. Gross gains and gross losses were realized as follows on available for sale securities (in thousands):

	2020			2019			2018
Gross gains	$	344		$	25		$	160
Gross losses		(39	)		(1	)		(179	)
Net (losses) gains	$	305		$	24		$	(19	)

Unrealized Gains (Losses) Related to Equity Securities

The following table presents the net (losses) gains on the Company’s equity investments recognized in earnings during 2020, 2019 and 2019 and the portion of unrealized gains for the period that relates to equity investments held at December 31, 2020 and 2019 (in thousands):

Equity Securities	2020			2019		2018
Net gains (losses) recognized in equity securities during the period	$	(109	)	$	120	$	-
Less: Net gains realized on the sale of equity securities during the period		68			-		-
Net unrealized gains (losses)	$	(41	)	$	120	$	-

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of debt securities at December 31, 2019, by contractual maturity are shown below (in thousands). Municipal securities that have been refunded and will therefore pay-off on the call date are reflected in the table below utilizing the call date as the date of repayment as payment is guaranteed on that date:

	Amortized Cost		Fair Value
Available-for-sale securities:
Due in one year or less	$	18,786	$	19,037
Due after one year through five years		63,826		66,531
Due after five years through ten years		64,080		65,587
Due after ten years		140,829		144,034
Total	$	287,521	$	295,189