Debt Securities Held-to-Maturity

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

The following is a summary of mortgage-backed securities held-to-maturity at December 31, 2019 and 2018 (in thousands):



	2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities:
Pass-through certificates:
GSEs	$	8,762	$	129	$	5	$	8,886
Total securities held-to-maturity	$	8,762	$	129	$	5	$	8,886



	2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities:
Pass-through certificates:
GSEs	$	9,505	$	—	$	256	$	9,249
Total securities held-to-maturity	$	9,505	$	—	$	256	$	9,249

Contractual maturities for mortgage-backed securities are not presented, as expected maturities on mortgage-backed securities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. There were no sales of held-to-maturity securities for the years ended December 31, 2019, 2018 and 2017. At December 31, 2019, and December 31, 2018, debt securities held-to-maturity with a carrying value of $7.4 million and $6.5 million, respectively, were pledged to secure repurchase agreements and deposits. See Note 8 - "Borrowings" for further discussion regarding securities pledged or encumbered for borrowings

Gross unrealized losses on mortgage-backed securities held-to-maturity, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019 and 2018, were as follows (in thousands):



	December 31, 2019
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
Mortgage-backed securities:
Pass-through certificates:
GSEs	$	—	$	—	$	5	$	378	$	5	$	378
Total	$	—	$	—	$	5	$	378	$	5	$	378



	December 31, 2018
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
Mortgage-backed securities:
Pass-through certificates:
GSEs	$	34	$	2,133	$	222	$	7,116	$	256	$	9,249
Total	$	34	$	2,133	$	222	$	7,116	$	256	$	9,249

The Company held one pass-through mortgage-backed debt security held-to-maturity, issued or guaranteed by GSEs, that was in a continuous unrealized loss position of greater than twelve months at December 31, 2019. Management evaluated this security and concluded that the decline in value relates to the general interest rate environment and is considered temporary. The security cannot be prepaid in a manner that would result in the Company not receiving all of its amortized cost. The Company neither has an intent to sell, nor is it more likely than not that the Company will be required to sell, the security before the recovery of its amortized cost basis or, if necessary, maturity.

The fair values of our debt securities held-to-maturity could decline in the future if the underlying performance of the collateral for the collateralized mortgage obligations or other securities deteriorates and our credit enhancement levels do not provide sufficient protections to our contractual principal and interest. As a result, there is a risk that significant other-than-temporary impairments may occur in the future. The Company did not recognize any other-than-temporary impairment charges in earnings on securities held-to-maturity during the years ended December 31, 2019, 2018 and 2017.