Securities Available-for-sale

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Securities Available-for-sale

NOTE 3 – SECURITIES AVAILABLE-FOR-SALE

The amortized costs and fair values of securities available-for-sale were as follows:

	June 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Obligations of states and political subdivisions	$	9,421	$	67	$	(20	)	$	9,468
Government-sponsored mortgage-backed securities		54,169		380		(542	)		54,007
Corporate collateralized mortgage obligations		346		7		—			353
Asset-backed securities		2,926		4		(4	)		2,926
Certificates of deposit		1,707		5		(1	)		1,711
Total	$	68,569	$	463	$	(567	)	$	68,465
	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
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	$	67,900	$	32	$	(2,201	)	$	65,731

The amortized costs and fair values of securities available-for-sale, by contractual maturity, 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. In addition, expected maturities will differ from contractual maturities for mortgage-backed securities and asset-backed securities, as the expected repayment terms may be less than the underlying mortgage pool contractual maturities. Therefore, these securities are not included in the maturity categories in the maturity summary below.

	June 30, 2019
	Amortized Cost		Fair Value
	(in thousands)
Debt and other securities:
Due in one year or less	$	374	$	374
Due after one through 5 years		8,297		8,319
Due after 5 through 10 years		2,457		2,486
Due after 10 years		—		—
Mortgage-related securities		54,515		54,360
Asset-backed securities		2,926		2,926
Total	$	68,569	$	68,465

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

	June 30, 2019
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Obligations of states and political subdivisions	$	—	$	—		$	5,018	$	(20	)	$	5,018	$	(20	)
Government-sponsored mortgage-backed securities		1		—			30,112		(542	)		30,113		(542	)
Asset-backed securities		893		(4	)		—		—			893		(4	)
Certificates of deposit		249		(1	)		249		—			498		(1	)
Total	$	1,143	$	(5	)	$	35,379	$	(562	)	$	36,522	$	(567	)
	December 31, 2018
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
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	)

At June 30, 2019 and December 31, 2018, respectively, the Bank had 33 and 59 debt securities with unrealized losses representing aggregate depreciation of approximately 1.5% and 3.6% from their respective amortized cost bases. These unrealized losses relate principally to changes in interest rates and were not caused by changes in the financial condition of the issuers, 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. As management has the intent and ability to hold these debt securities to projected recovery, none of these declines are deemed to be other-than-temporary.

The following table provides a summary of the proceeds from sales of securities available-for-sale, as well as gross gains and losses, for the periods presented:

	Three Months ended June 30,				Six Months ended June 30,
	2019		2018		2019		2018
	(in thousands)				(in thousands)
Proceeds from sales of securities available-for-sale	$	—	$	4,875	$	—	$	14,392
Gross realized gains		—		46		—		137
Gross realized losses		—		—		—		70