INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2018

INVESTMENT SECURITIES

Schedule of the amortized cost and fair value of securities available for sale, with gross unrealized gains and losses recognized

The following presents the amortized cost and fair value of securities available‑for‑sale, with gross unrealized gains and losses recognized in accumulated other comprehensive income as of September 30, 2018 and December 31, 2017 (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
September 30, 2018	Cost		Gains		Losses		Value
Investment securities available-for-sale:
U.S. Treasury debt	$	250	$	—	$	(1)	$	249
Government National Mortgage
Association (“GNMA”) mortgage-backed securities – residential		36,792		4		(2,274)		34,522
Securities issued by U.S. government sponsored entities and agencies		8,775		—		(494)		8,281
Corporate collateralized mortgage obligations and mortgage-backed securities		1,423		2		(2)		1,423
Small Business Investment Company		1,017		—		—		1,017
Total securities available-for-sale	$	48,257	$	6	$	(2,771)	$	45,492

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2017	Cost		Gains		Losses		Value
Investment securities available-for-sale:
U.S. Treasury debt	$	250	$	—	$	(1)	$	249
GNMA mortgage-backed securities – residential		42,001		27		(1,192)		40,836
Securities issued by U.S. government sponsored entities and agencies		9,736		13		(296)		9,453
Corporate collateralized mortgage obligations and mortgage-backed securities		1,529		—		(50)		1,479
Small Business Investment Company		930		—		—		930
Equity mutual funds		750		—		(47)		703
Total securities available-for-sale	$	55,196	$	40	$	(1,586)	$	53,650

Summary of the amortized cost and estimated fair value of available for sale securities, excluding SBIC with contractual maturity dates

As of September 30, 2018, equity mutual funds have been recorded at fair value within the other assets line item in the consolidated balance sheet with changes recorded in the other line item in the consolidated statement of income (in thousands).

	Amortized		Fair
September 30, 2018	Cost		Value
Due after one year through five years	$	557	$	554
Securities (agency and collateralized mortgage obligations)		46,683		43,921
	$	47,240	$	44,475

Summary of securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position

The following table summarizes securities with unrealized losses at September 30, 2018 and December 31, 2017, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands, before tax):

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
September 30, 2018	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury debt	$	249	$	(1)	$	—	$	—	$	249	$	(1)
GNMA mortgage-backed securities – residential		1,874		(38)		31,998		(2,236)		33,872		(2,274)
Securities issued by U.S. government sponsored entities and agencies		741		(9)		7,321		(485)		8,062		(494)
Corporate collateralized mortgage obligations and mortgage-backed securities		63		(2)		—		—		63		(2)
Total	$	2,927	$	(50)	$	39,319	$	(2,721)	$	42,246	$	(2,771)

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2017	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury debt	$	—	$	—	$	249	$	(1)	$	249	$	(1)
GNMA mortgage-backed securities – residential		11,621		(237)		27,480		(955)		39,101		(1,192)
Securities issued by U.S. government sponsored entities and agencies		677		(2)		7,968		(294)		8,645		(296)
Corporate collateralized mortgage obligations and mortgage-backed securities		—		—		1,316		(50)		1,316		(50)
Equity mutual funds		—		—		703		(47)		703		(47)
Total	$	12,298		(239)		37,716		(1,347)		50,014		(1,586)