Securities

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale and held-to-maturity at December 31, 2019, are summarized as follows:



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Available for Sale
Investment Securities
Municipal bonds	$	39,524	$	125	$	(367	)	$	39,282
U.S. government agency issued asset-backed securities (ABS agency)	29,796		—		(938		)	28,858
Corporate issued asset-backed securities (ABS corporate)	41,728		—		(873		)	40,855
Corporate issued debt securities (Corporate debt)	9,986		—		(343		)	9,643
U.S. Small Business Administration securities (SBA)	28,423		72		(36		)	28,459

Total	$	149,457	$	197	$	(2,557	)	$	147,097

Mortgage-Backed Securities
U.S. government agency issued mortgage-backed securities (MBS agency)	$	159,697	$	811	$	(341	)	$	160,167
Corporate issued mortgage-backed securities (MBS corporate)	8,374		—		(58		)	8,316

Total	$	168,071	$	811	$	(399	)	$	168,483

Total securities available for sale	$	317,528	$	1,008	$	(2,956	)	$	315,580

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale and held-to-maturity at December 31, 2018, are summarized as follows:



	December 31, 2018
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Available for Sale
Investment Securities
Municipal bonds	$	882	$	—	$	(13	)	$	869
ABS agency	26,125		—		(373		)	25,752
ABS corporate	37,897		—		(1,174		)	36,723
Corporate debt	9,986		98		(196		)	9,888
SBA	35,936		23		(289		)	35,670

Total	$	110,826	$	121	$	(2,045	)	$	108,902

Mortgage-Backed Securities
MBS agency	$	147,205	$	12	$	(3,762	)	$	143,455
MBS corporate	10,953		—		(343		)	10,610

Total	$	158,158	$	12	$	(4,105	)	$	154,065

Total securities available for sale	$	268,984	$	133	$	(6,150	)	$	262,967

Held to Maturity
Investment Securities
Municipal bonds	$	11,919	$	43	$	—		$	11,962
SBA	302		—		(1		)	301

Total	$	12,221	$	43	$	(1	)	$	12,263

Mortgage-Backed Securities
MBS agency	$	31,282	$	40	$	(595	)	$	30,727

Total securities held to maturity	$	43,503	$	83	$	(596	)	$	42,990

The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2019:



	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Investment Securities
Municipal bonds	$	(367	)	$	29,928	$	—		$	—	$	(367	)	$	29,928
ABS Agency	(59		)	3,855		(879		)	25,002		(938		)	28,857
ABS corporate	(31		)	3,848		(842		)	37,007		(873		)	40,855
Corporate debt	(17		)	4,983		(326		)	4,660		(343		)	9,643
SBA	—			—		(36		)	15,034		(36		)	15,034

Total	$	(474	)	$	42,614	$	(2,083	)	$	81,703	$	(2,557	)	$	124,317

Mortgage-Backed Securities
MBS agency	$	(166	)	$	18,744	$	(175	)	$	47,463	$	(341	)	$	66,207
MBS corporate	—			—		(58		)	8,316		(58		)	8,316

Total	$	(166	)	$	18,744	$	(233	)	$	55,779	$	(399	)	$	74,523



	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Investment Securities
Municipal bonds	$	(8	)	$	757	$	(5	)	$	110	$	(13	)	$	867
ABS Agency	(302		)	23,286		(71		)	2,466		(373		)	25,752
ABS Corporate	(571		)	14,527		(603		)	22,196		(1,174		)	36,723
Corporate debt	—			—		(196		)	4,791		(196		)	4,791
SBA	(44		)	13,400		(245		)	13,089		(289		)	26,489
Total	$	(925	)	$	51,970	$	(1,120	)	$	42,652	$	(2,045	)	$	94,622

Mortgage-Backed Securities
MBS agency	$	(28	)	$	17,996	$	(3,734	)	$	120,617	$	(3,762	)	$	138,613
MBS corporate	—			—		(343		)	10,610		(343		)	10,610
Total	$	(28	)	$	17,996	$	(4,077	)	$	131,227	$	(4,105	)	$	149,223

Held to Maturity
Investment Securities
SBA	$	(1	)	$	—	$	—		$	301	$	(1	)	$	301

Mortgage-Backed Securities
MBS agency	$	(70	)	$	6,241	$	(525	)	$	18,073	$	(595	)	$	24,314

The Company may hold certain investment securities in an unrealized loss position that are not considered OTTI. At December 31, 2019, there were 62 investment securities with $3.0 million of unrealized losses and a fair value of approximately $198.8 million. At December 31, 2018, there were 69 investment securities with $6.7 million of unrealized losses and a fair value of approximately $268.5 million.

Management believes that the unrealized losses on investment securities relate principally to the general change in interest rates and illiquidity, and not credit quality, that has occurred since the initial purchase, and such unrecognized losses or gains will continue to vary with general interest rate level fluctuations in the future. Certain investments in a loss position are guaranteed by government entities or government sponsored entities. The Company does not intend to sell the securities in an unrealized loss position and believes it is not likely it will be required to sell these investments prior to a market price recovery or maturity.

There were no OTTI losses during the years ended December 31, 2019 and 2018.

The amortized cost and estimated fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; therefore, these securities are shown separately.



	December 31, 2019
	Amortized Cost		Estimated Fair Value
Available for Sale	(In thousands)
Mortgage-backed securities:
Due within one year	$	—	$	—
Due after one through five years	13,360		13,391
Due after five through ten years	6,261		6,257
Due after ten years	148,450		148,835

Total mortgage-backed securities	168,071		168,483

All other investment securities:
Due within one year	—		—
Due after one through five years	2,043		2,084
Due after five through ten years	58,460		57,680
Due after ten years	88,954		87,333

Total all other investment securities	149,457		147,097

Total investment securities	$	317,528	$	315,580



	December 31, 2018
	Available for Sale				Held to Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Mortgage-backed securities:
Due within one year	$	—	$	—	$	—	$	—
Due after one through five years	7,204		7,089		578		569
Due after five through ten years	11,862		11,637		2,035		1,978
Due after ten years	139,092		135,339		28,669		28,180

Total mortgage-backed securities	158,158		154,065		31,282		30,727

All other investment securities:
Due within one year	—		—		—		—
Due after one through five years	—		—		734		741
Due after five through ten years	19,564		19,362		6,728		6,743
Due after ten years	91,262		89,540		4,759		4,779

Total all other investment securities	110,826		108,902		12,221		12,263

Total investment securities	$	268,984	$	262,967	$	43,503	$	42,990

Sales of available-for-sale securities were as follows:



	For the Year Ended December 31,
	2019		2018
	(In thousands)
Proceeds	$	16,545	$	56,683
Gross gains	836		233
Gross losses	—		(183		)

During the year ended December 31, 2019, the Bank changed the holding classification of the entire held to maturity portfolio to available for sale. The amortized cost of these securities was $37.6 million at the time of transfer.

During the year ended December 31, 2018, the Bank sold certain held to maturity investments that had substantially reached maturity, allowing us to sell the securities without tainting the remaining held to maturity securities portfolio. The held-to-maturity designation of the remaining securities is unchanged. Gross proceeds on the sale of these securities totaled $2.7 million with gross realized gains and losses of $32,000 and $5,000, respectively.