Investments

The following tables summarize the amortized cost and fair value of investments available-for-sale at December 31, 2019 and 2018, and the corresponding amounts of gross unrealized gains and losses.



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Mortgage-backed investments:
Fannie Mae	$	15,605	$	128	$	(104	)	$	15,629
Freddie Mac	4,196		96		—			4,292
Ginnie Mae	23,239		140		(329		)	23,050
Other	11,407		66		(25		)	11,448
Municipal bonds	10,675		272		(36		)	10,911
U.S. Government agencies	46,672		13		(935		)	45,750
Corporate bonds	25,500		372		(351		)	25,521
	$	137,294	$	1,087	$	(1,780	)	$	136,601



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Mortgage-backed investments:
Fannie Mae	$	24,276	$	24	$	(657	)	$	23,643
Freddie Mac	6,351		10		(74		)	6,287
Ginnie Mae	23,311		—		(1,250		)	22,061
Other	8,983		17		(21		)	8,979
Municipal bonds	10,615		49		(120		)	10,544
U.S. Government agencies	48,190		73		(825		)	47,438
Corporate bonds	23,490		399		(671		)	23,218
	$	145,216	$	572	$	(3,618	)	$	142,170

There were no investments classified as held-to-maturity at December 31, 2019 or 2018.

The amortized cost and estimated fair value of investments available-for-sale at December 31, 2019, by expected maturity, are shown below. 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. Investments not due at a single maturity date, primarily mortgage‑backed investments are shown separately.



	December 31, 2019
	Amortized Cost		Fair Value
	(In thousands)
Due within one year	$	496	$	498
Due after one year through five years	6,597		6,738
Due after five years through ten years	18,664		18,613
Due after ten years	57,090		56,333
	82,847		82,182
Mortgage-backed investments	54,447		54,419
	$	137,294	$	136,601

Under Washington State law, in order to participate in the public funds program the Company is required to pledge eligible securities as collateral in an amount equal to 50% of the public deposits held. Investments with a carrying value of $19.0 million and $15.6 million were pledged as collateral for public deposits at December 31, 2019, and 2018, respectively, both of which exceeded the minimum collateral requirements established by the Washington Public Deposit Protection Commission. At December 31, 2019, and 2018, there were no investments pledged as collateral for FHLB advances.

Sales and other redemptions of available-for-sale investments were as follows:



	Year Ended December 31,
	2019			2018
	(In thousands)
Proceeds	$	14,260		$	17,159
Gross gains	190			9
Gross losses	(39		)	(29		)

The following tables summarize the aggregate fair value and gross unrealized loss by length of time those investments have been continuously in an unrealized loss position at December 31, 2019 and 2018.



	December 31, 2019
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
Mortgage-backed investments:
Fannie Mae	$	8,340	$	(104	)	$	—	$	—		$	8,340	$	(104	)
Freddie Mac	—		—			—		—			—		—
Ginnie Mae	156		—			12,921		(329		)	13,077		(329		)
Other	2,843		(7		)	6,000		(18		)	8,843		(25		)
Municipal bonds	3,257		(36		)	—		—			3,257		(36		)
U.S. Government agencies	12,266		(201		)	31,490		(734		)	43,756		(935		)
Corporate bonds	1,996		(12		)	7,161		(339		)	9,157		(351		)
	$	28,858	$	(360	)	$	57,572	$	(1,420	)	$	86,430	$	(1,780	)



	December 31, 2018
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
Mortgage-backed investments:
Fannie Mae	$	5,480	$	(32	)	$	16,721	$	(625	)	$	22,201	$	(657	)
Freddie Mac	1,994		(23		)	3,185		(51		)	5,179		(74		)
Ginnie Mae	2,867		(8		)	19,194		(1,242		)	22,061		(1,250		)
Other	6,008		(21		)	—		—			6,008		(21		)
Municipal bonds	4,161		(46		)	934		(74		)	5,095		(120		)
U.S. Government agencies	5,985		(13		)	30,779		(812		)	36,764		(825		)
Corporate bonds	—		—			6,828		(671		)	6,828		(671		)
	$	26,495	$	(143	)	$	77,641	$	(3,475	)	$	104,136	$	(3,618	)

At December 31, 2019, and 2018, the Company had 37 and 51 securities, respectively, with a gross unrealized loss position. Management reviewed the financial condition of the entities underlying the securities at both December 31, 2019, and December 31, 2018, and determined that no OTTI was required. Management believes that, while actual fluctuation in unrealized losses will occur over the life of an investment security, the temporary impairment on the investment securities that were in an unrealized loss position at December 31, 2019 and 2018, will be incrementally relieved as the individual investment securities approach their respective contractual maturity dates. The unrealized losses relate principally to the general change in interest rate and illiquidity, and not credit quality. As management does not intend to sell the security, and it is likely that it will not be required to sell the security before its anticipated recovery, no declines are deemed to be other-than-temporary.