NOTE 4 - INVESTMENT SECURITIES

The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity at September 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized losses (dollars in thousands):


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At September 30, 2019	Cost		Gains		Losses		Fair Value
Debt securities available-for-sale
Residential mortgage securities	$	190,244	$	1,863	$	(102)	$	192,005
Commercial mortgage securities		32,898		476		(14)		33,360
U.S. Government agency securities		25,000		309		—		25,309
Total securities available-for-sale	$	248,142	$	2,648	$	(116)	$	250,674

Held-to-maturity securities:
Residential mortgage securities	$	3,938	$	2	$	(26)	$	3,914
Total securities held-to-maturity	$	3,938	$	2	$	(26)	$	3,914

Marketable equity securities:
CRA Mutual Fund	$	2,246	$	—	$	(23)	$	2,223
Total non-trading equity investment securities	$	2,246	$	—	$	(23)	$	2,223


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2018	Cost		Gains		Losses		Fair Value
Debt securities available-for-sale
Residential mortgage securities	$	24,093	$	3	$	(583)	$	23,513
Commercial mortgage securities		5,874		—		(25)		5,849
Municipal bond		1,074		3		—		1,077
Total securities available-for-sale	$	31,041	$	6	$	(608)	$	30,439

Held to Maturity Securities:
Residential mortgage securities		4,546		—		(168)		4,378
Foreign government securities		25		—		—		25
Total securities held-to-maturity	$	4,571	$	—	$	(168)	$	4,403

Marketable equity securities:
CRA Mutual Fund	$	2,208		—		(98)		2,110
Total non-trading equity investment securities	$	2,208	$	—	$	(98)	$	2,110

There were no sales or calls of securities for the three months ended September 30, 2019 and September 30, 2018. The proceeds from sales or calls of securities and associated losses for the nine months ended September 30, 2019 are listed below (dollars in thousands):


	Nine months ended September 30,
	2019		2018
Proceeds	$	1,065	$	1,463
Gross losses	$	—	$	(37)
Tax impact	$	—	$	11

Expected maturities may differ from contractual maturities if borrowers 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. The amortized cost and fair value of debt securities at September 30, 2019 and December 31, 2018 are shown by contractual maturity below (dollars in thousands). There were no debt securities with a single contractual maturity at September 30, 2019.


	Held to Maturity				Available for Sale
At September 30, 2019	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		25,000		25,309
After ten years		—		—		—		—
Total	$	—	$	—	$	25,000	$	25,309

Residential mortgage securities	$	3,938	$	3,914		190,244		192,005
Commercial mortgage securities		—		—		32,898		33,360
U.S. Government agency securities		—		—		—		—
Total Securities	$	3,938	$	3,914	$	248,142	$	250,674


	Held to Maturity				Available for Sale
At December 31, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	25	$	25	$	257	$	258
One to five years		—		—		—		—
Five to ten years		—		—		—		—
After ten years		—		—		817		819
Total	$	25	$	25	$	1,074	$	1,077

Residential mortgage securities	$	4,546	$	4,378	$	24,093	$	23,513
Commercial mortgage securities		—		—		5,874		5,849
Total Securities	$	4,571	$	4,403	$	31,041	$	30,439

There were $223.8 million of available-for-sale securities pledged to secure certain deposit accounts at September 30, 2019. There were no securities pledged at December 31, 2018.

At September 30, 2019 and December 31, 2018, all of the residential mortgage securities and commercial mortgage securities held by the Bank were issued by U.S. Government-sponsored entities and agencies.

Securities with unrealized/unrecognized losses at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized/unrecognized loss position, are as follows (dollars in thousands):


	Less than 12 Months				12 months or more					Total
			Unrealized/					Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated			Unrecognized		Estimated		Unrecognized
At September 30, 2019	Fair Value		Losses		Fair Value			Losses		Fair Value		Losses
Available-for-Sale Securities:
Residential mortgage securities		12,120		(9)		5,317			(93)		17,437		(102)
Commercial mortgage securities		2,997		(14)		1,805			—		4,802		(14)
Total securities available-for-sale	$	15,117	$	(23)	$	7,122		$	(93)	$	22,239	$	(116)

Held to Maturity Securities:
Residential mortgage securities	$	—		—		1,551			(26)		1,551	$	(26)
Total securities held-to-maturity	$	—	$	—	$	1,551	$	$	(26)	$	1,551	$	(26)


	Less than 12 Months				12 months or more					Total
			Unrealized/					Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated			Unrecognized		Estimated		Unrecognized
At December 31, 2018	Fair Value		Losses		Fair Value			Losses		Fair Value		Losses
Debt securities available-for-sale
Residential mortgage securities	$	10,374	$	(73)	$	9,890		$	(510)	$	20,264	$	(583)
Commercial mortgage securities		—		—		5,849			(25)		5,849		(25)
Total securities available-for-sale	$	10,374	$	(73)	$	15,739		$	(535)	$	26,113	$	(608)

Held to Maturity Securities:
Residential mortgage securities	$	—	$	—	$	4,378		$	(168)	$	4,378	$	(168)
Total securities held-to-maturity	$	—	$	—	$	4,378	$	$	(168)	$	4,378	$	(168)

The unrealized losses of securities are primarily due to the changes in market interest rates subsequent to purchase. The Bank does not consider these securities to be other-than-temporarily impaired at September 30, 2019 and December 31, 2018 since the decline in market value is attributable to changes in interest rates and not credit quality. In addition, the Bank does not intend to sell and does not believe that it is more likely than not that it will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, no impairment loss was recognized during the three and nine months ended September 30, 2019 and for the year ended December 31, 2018.

At September 30, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.