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Securities Available for Sale
 6 Months Ended
Jun. 30, 2020
Securities Available for Sale [Abstract]  
Securities Available for Sale
Note 2— Securities Available for Sale

The amortized cost and fair values of the Company’s investment in securities available for sale follow:

  
June 30, 2020
  
   
Amortized cost
    
Gross unrealized gains
    
Gross unrealized losses
    
Fair value
  
   
(In Thousands)
  
Mortgage-backed securities
  
$
28,320
    
$
1,392
    
$
-
    
$
29,712
  
Collateralized mortgage obligations:
                                
Government sponsored enterprise issued
    
66,610
      
2,377
      
-
      
68,987
  
Private-label issued
    
3,776
      
28
      
-
      
3,804
  
Mortgage-related securities
    
98,706
      
3,797
      
-
      
102,503
  
                                 
Municipal securities
    
48,421
      
2,229
      
-
      
50,650
  
Other debt securities
    
12,500
      
-
      
(1,541
)
    
10,959
  
Debt securities
    
60,921
      
2,229
      
(1,541
)
    
61,609
  
   
$
159,627
    
$
6,026
    
$
(1,541
)
  
$
164,112
  


 
December 31, 2019
  
   
Amortized cost
    
Gross unrealized gains
    
Gross unrealized losses
    
Fair value
  
   
(In Thousands)
  
Mortgage-backed securities
  
$
33,773
    
$
422
    
$
(45
)
  
$
34,150
  
Collateralized mortgage obligations:
                                
Government sponsored enterprise issued
    
81,232
      
776
      
(254
)
    
81,754
  
Mortgage-related securities
    
115,005
      
1,198
      
(299
)
    
115,904
  
                                 
Municipal securities
    
51,898
      
1,795
      
(1
)
    
53,692
  
Other debt securities
    
10,000
      
-
      
(1,120
)
    
8,880
  
Debt securities
    
61,898
      
1,795
      
(1,121
)
    
62,572
  
   
$
176,903
    
$
2,993
    
$
(1,420
)
  
$
178,476
  

The Company’s mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. At June 30, 2020, $1.0 million of the Company’s mortgage related securities were pledged as collateral to secure mortgage banking related activities and $6.9 million were pledged as collateral to secure back-to-back swaps. At December 31, 2019, $1.2 million of the Company's mortgage related securities were pledged as collateral to secure mortgage banking related activities.

The amortized cost and fair values of investment securities by contractual maturity at June 30, 2020 are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

  
Amortized
Cost
    
Fair
Value
  
   
(In Thousands)
  
Debt and other securities
            
Due within one year
  
$
4,208
    
$
4,244
  
Due after one year through five years
    
34,829
      
35,902
  
Due after five years through ten years
    
21,236
      
20,625
  
Due after ten years
    
648
      
838
  
Mortgage-related securities
    
98,706
      
102,503
  
   
$
159,627
    
$
164,112
  


Gross unrealized losses on securities available for sale and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows:

  
June 30, 2020
  
   
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 securities
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Collateralized mortgage obligations:
                                                
  Government sponsored enterprise issued
    
-
      
-
      
-
      
-
      
-
      
-
  
  Private label issued
    
-
      
-
      
-
      
-
      
-
      
-
  
Municipal securities
    
-
      
-
      
-
      
-
      
-
      
-
  
Other debt securities
    
2,467
      
(33
)
    
8,492
      
(1,508
)
    
10,959
      
(1,541
)
   
$
2,467
    
$
(33
)
  
$
8,492
    
$
(1,508
)
  
$
10,959
    
$
(1,541
)


 
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 securities
  
$
2,929
    
$
(20
)
  
$
2,849
    
$
(25
)
  
$
5,778
    
$
(45
)
Collateralized mortgage obligations:
                                                
Government sponsored enterprise issued
    
21,723
      
(136
)
    
7,180
      
(118
)
    
28,903
      
(254
)
Municipal securities
    
100
      
(1
)
    
-
      
-
      
100
      
(1
)
Other debt securities
    
-
      
-
      
8,880
      
(1,120
)
    
8,880
      
(1,120
)
   
$
24,752
    
$
(157
)
  
$
18,909
    
$
(1,263
)
  
$
43,661
    
$
(1,420
)

The Company reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. In evaluating whether a security’s decline in market value is other-than-temporary, management considers the length of time and extent to which the fair value has been less than cost, the financial condition of the issuer and the underlying obligors, quality of credit enhancements, volatility of the fair value of the security, the expected recovery period of the security and ratings agency evaluations. In addition, the Company may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral.

As of June 30, 2020, the Company held one municipal security that had previously been deemed to be other-than-temporarily impaired. The security was issued by a tax incremental district in a municipality located in Wisconsin. During the year ended December 31, 2012, the Company received audited financial statements with respect to the municipal issuer that called into question the ability of the underlying taxing district that issued the security to operate as a going concern. During the year ended December 31, 2012, the Company's analysis of this security resulted in $77,000 in credit losses charged to earnings with respect to this municipal security. An additional $17,000 credit loss was charged to earnings during the year ended December 31, 2014 with respect to this security as a sale occurred at a discounted price.  There have been no additional credit losses related to the security.  As of June 30, 2020, this security had an amortized cost of $116,000 and total life-to-date impairment of $94,000.

As of June 30, 2020, the Company had one corporate debt security which had been in an unrealized loss position for twelve months or longer and this security represents a loss of 15.1% of its aggregate amortized cost. The security was determined not to be other-than-temporarily impaired as of June 30, 2020. The Company has determined that the decline in fair value of the security is primarily attributable to an increase in market interest rates compared to the stated rates on this security and is not attributable to credit deterioration. As the Company does not intend to sell nor is it more likely than not that it will be required to sell the security before recovery of the amortized cost basis, it is not considered other-than-temporarily impaired. The unrealized losses for the corporate debt security with an unrealized loss greater than 12 months is due to the current slope of the yield curve.  The security currently earns a floating rate that is indexed to the 10 year Treasury interest rate that is reset on a quarterly basis.

Deterioration of general economic market conditions could result in the recognition of future other than temporary impairment losses within the investment portfolio and such amounts could be material to our consolidated financial statements.

During the six months ended June 30, 2020 and June 30, 2019, there were no sales of securities.