Held to Maturity Securities

9 Months Ended

Sep. 30, 2018

Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]

Held to Maturity Securities

3. Held to Maturity Securities

The amortized cost, gross unrealized gains and losses and fair values of held to maturity securities are as follows:

	September 30, 2018
	(unaudited)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Other	$	-	$	-	$	-		$	-
Municipal securities ¹		-		-		-			-
Total	$	-	$	-	$	-		$	-
	December 31, 2017
Other	$	332	$	-	$	-		$	332
Municipal securities ¹		1,582		15		(1	)		1,596
Total	$	1,914	$	15	$	(1	)	$	1,928

¹ The issuers of municipal securities are all within New York State.

The amortized cost and fair value of held to maturity debt securities at September 30, 2018 and December 31, 2017, by contractual maturities, are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without any penalties:

	September 30, 2018				December 31, 2017
	(unaudited)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity:
Within 1 year	$	-	$	-	$	252	$	252
After 1 but within 5 years		-		-		576		575
After 5 but within 10 years		-		-		-		-
After 10 years		-		-		754		769
Other		-		-		332		332
Total	$	-	$	-	$	1,914	$	1,928

At September 30, 2018 and December 31, 2017, held to maturity securities with an amortized cost of $0 and $1,362, respectively, were pledged at the FRBNY for borrowings.

During the third quarter, as part of an effort to increase the performance of our investment portfolio, seven underperforming bonds were swapped for better yielding instruments. It was later discovered that in the group sold were two bonds, totaling $575 in book value, which were designated as held to maturity (“HTM”). As part of that transaction a loss on disposition of $4 was recognized. As a further consequence of this action, in accordance with ASC 320-10-35, the four remaining HTM securities that totaled $1,163 were reclassified as available for sale (“AFS”) and the unrealized holding loss of $1 was recognized in AOCI, net of the applicable taxes for the period ended September 30, 2018. As a result of the sale and subsequent reclassification, the whole of our investment portfolio is now AFS. Securities purchased in the future will be designated as AFS.