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Available for Sale Securities
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Available for Sale Securities
NOTE 3 — Available for Sale Securities
Amortized costs and fair values of available for sale securities are summarized as follows:
 
December 31, 2018
 
Amortized

Cost
 
 
Gross

Unrealized

Gains
 
 
Gross

Unrealized

Losses
 
 
Estimated

Fair Value
 
Obligations of states and political subdivisions
 
$
11,348
 
 
$
25
 
 
$
(204
)
 
$
11,169
 
Government-sponsored mortgage-backed securities
 
 
52,363
 
 
 
4
 
 
 
(1,992
)
 
 
50,375
 
Corporate collateralized mortgage obligations
 
 
410
 
 
 
1
 
 
 
(1
)
 
 
410
 
Asset-backed securities
 
 
3,530
 
 
 
2
 
 
 
(1
)
 
 
3,531
 
Certificates of deposit
 
 
249
 
 
 
—
 
 
 
(3
)
 
 
246
 
Total available for sale securities
 
$
67,900
 
 
$
32
 
 
$
(2,201
)
 
$
65,731
 
 
December 31, 2017
 
Amortized

Cost
 
 
Gross

Unrealized

Gains
 
 
Gross

Unrealized

Losses
 
 
Estimated

Fair Value
 
Obligations of states and political subdivisions
 
$
20,545
 
 
$
243
 
 
$
(158
)
 
$
20,630
 
Government-sponsored mortgage-backed securities
 
 
61,218
 
 
 
41
 
 
 
(1,235
)
 
 
60,024
 
Corporate collateralized mortgage obligations
 
 
696
 
 
 
6
 
 
 
—
 
 
 
702
 
Asset-backed securities
 
 
4,835
 
 
 
9
 
 
 
(12
)
 
 
4,832
 
Corporate bonds
 
 
1,495
 
 
 
21
 
 
 
—
 
 
 
1,516
 
Certificates of deposit
 
 
1,246
 
 
 
5
 
 
 
—
 
 
 
1,251
 
Total available for sale securities
 
$
90,035
 
 
$
325
 
 
$
(1,405
)
 
$
88,955
 
Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in estimated fair value.
The Bank’s mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by one of the following government enterprises: Fannie Mae, Freddie Mac or Ginnie Mae. At December 31, 2018, $9,301 of the Bank’s mortgage related securities were pledged as collateral to secure customer deposit accounts. There were no securities pledged as of December 31, 2017.
The following table presents the portion of the Bank’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position:
 
 
 
Less than 12 months
 
 
12 months or more
 
 
Total
 
December 31, 2018
 
Fair

Value
 
 
Unrealized

Loss
 
 
Fair

Value
 
 
Unrealized

Loss
 
 
Fair

Value
 
 
Unrealized

Loss
 
Obligations of states and political subdivisions
 
$
1,567
 
 
$
(5
)
 
$
6,909
 
 
$
(199
)
 
$
8,476
 
 
$
(204
)
Government-sponsored mortgage-backed securities
 
 
29
 
 
 
—
 
 
 
49,549
 
 
 
(1,992
)
 
 
49,578
 
 
 
(1,992
)
Corporate collateralized mortgage obligations
 
 
204
 
 
 
—
 
 
 
147
 
 
 
(1
)
 
 
351
 
 
 
(1
)
Asset-backed securities
 
 
813
 
 
 
(1
)
 
 
—
 
 
 
—
 
 
 
813
 
 
 
(1
)
Certificates of deposit
 
 
—
 
 
 
—
 
 
 
246
 
 
 
(3
)
 
 
246
 
 
 
(3
)
Total
 
$
2,613
 
 
$
(6
)
 
$
56,851
 
 
$
(2,195
)
 
$
59,464
 
 
$
(2,201
)
 
 
 
Less than 12 months
 
 
12 months or more
 
 
Total
 
December 31, 2017
 
Fair

Value
 
 
Unrealized

Loss
 
 
Fair

Value
 
 
Unrealized

Loss
 
 
Fair

Value
 
 
Unrealized

Loss
 
Obligations of states and political subdivisions
 
$
1,435
 
 
$
(18
)
 
$
5,866
 
 
$
(140
)
 
$
7,301
 
 
$
(158
)
Government-sponsored mortgage-backed securities
 
 
18,507
 
 
 
(131
)
 
 
36,176
 
 
 
(1,104
)
 
 
54,683
 
 
 
(1,235
)
Corporate collateralized mortgage obligations
 
 
8
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
8
 
 
 
—
 
Asset-backed securities
 
 
—
 
 
 
—
 
 
 
936
 
 
 
(12
)
 
 
936
 
 
 
(12
)
Certificates of deposit
 
 
249
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
249
 
 
 
—
 
Total
 
$
20,199
 
 
$
(149
)
 
$
42,978
 
 
$
(1,256
)
 
$
63,177
 
 
$
(1,405
)
At December 31, 2018, the bank had 59 debt securities with unrealized losses with aggregate depreciation of 3.6% from the Bank’s amortized cost basis. These unrealized losses relate principally to the changes in interest rates and are not caused by changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability to hold debt securities for the foreseeable future, no declines are deemed to be other than temporary.
The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below:
 
 
 
December 31, 2018
 
 
 
Amortized

Cost
 
 
Fair

Value
 
Due in one year or less
 
$
1,940
 
 
$
1,939
 
Due after one through 5 years
 
 
6,443
 
 
 
6,327
 
Due after 5 through 10 years
 
 
3,214
 
 
 
3,149
 
Due after 10 years
 
 
—
 
 
 
—
 
Subtotal
 
 
11,597
 
 
 
11,415
 
Mortgage-related securities
 
 
52,773
 
 
 
50,785
 
Asset-backed securities
 
 
3,530
 
 
 
3,531
 
Total
 
$
67,900
 
 
$
65,731
 
The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for each of the periods listed below:
 
 
 
Years ended December 31,
 
 
 
2018
 
 
2017
 
Proceeds from sales of available for sale securities
 
$
14,392
 
 
$
—
 
Gross gains
 
 
137
 
 
 
—
 
Gross losses
 
 
(70
)
 
 
—