INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021 and 2020 were as follows (in thousands):

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
U.S. Agency securities	$	73,803	$	976	$	(834	)	$	73,945
U.S. Treasuries		116,743		63		(1,459	)		115,347
Obligations of state and political subdivisions		109,367		2,706		(52	)		112,021
Corporate obligations		10,378		39		(84	)		10,333
Mortgage-backed securities in government sponsored entities		101,727		597		(1,568	)		100,756
Total available-for-sale securities	$	412,018	$	4,381	$	(3,997	)	$	412,402

December 31, 2020
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

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, 2021 and 2020 (in thousands). As of December 31, 2021, the Company owned 138 securities each of whose fair value was less than its cost basis.

	Less than Twelve Months					Twelve Months or Greater					Total
2021	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. agency securities	$	26,754	$	(387	)	$	7,542	$	(447	)	$	34,296	$	(834	)
U.S. Treasuries		106,794		(1,459	)		-		-			106,794		(1,459	)
Obligations of states and political subdivisions		10,744		(26	)		2,899		(26	)		13,643		(52	)
Corporate obligations		6,922		(84	)		-		-			6,922		(84	)
Mortgage-backed securities in government sponsored entities		60,182		(1,305	)		7,975		(263	)		68,157		(1,568	)
Total securities	$	211,396	$	(3,261	)	$	18,416	$	(736	)	$	229,812	$	(3,997	)

	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	)

Gross Gains and Losses on Available-for-sale Securities

Proceeds from sales of securities available-for-sale during 2021, 2020 and 2019 were $29,198,000, $23,415,000, and $10,489,000, respectively. The gross gains realized during 2021 consisted of $177,000 and $125,000 from the sales of six treasury securities and three agency securities, respectively. The gross losses realized during 2021 consisted of $90,000 from the sale of one agency security. 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. Gross gains and gross losses were realized as follows on available for sale securities (in thousands):

	2021			2020			2019
Gross gains	$	302		$	344		$	25
Gross losses		(90	)		(39	)		(1	)
Net gains	$	212		$	305		$	24

Unrealized Gains (Losses) Related to Equity Securities

The following table presents the net gains (losses) on the Company’s equity investments recognized in earnings during 2021, 2020 and 2019 and the portion of unrealized gains for the period that relates to equity investments held at December 31, 2021, 2020 and 2019 (in thousands):

Equity Securities	2021		2020			2019
Net gains (losses) recognized in equity securities during the period	$	339	$	(109	)	$	120
Less: Net gains realized on the sale of equity securities during the period		-		68			-
Net unrealized gains (losses)	$	339	$	(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, 2021, 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:

Available-for-sale securities:	Amortized Cost		Fair Value
Due in one year or less	$	15,002	$	15,175
Due after one year through five years		108,284		108,590
Due after five years through ten years		133,646		132,786
Due after ten years		155,086		155,851
Total	$	412,018	$	412,402