Investment Securities

6 Months Ended

Jun. 30, 2019

Debt Securities, Available-for-sale [Abstract]

Investment Securities

2. Investment Securities

The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows:

	June 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(unaudited)
U.S. Treasury securities	$	-	$	-	$	-		$	-
U.S. government agency mortgage-backed securities-residential		89,707		592		(586	)		89,713
U.S. government agency securities		19,935		29		(117	)		19,847
Municipal securities ¹		1,229		18		-			1,247
Other		542		49		-			591
Total	$	111,413	$	688	$	(703	)	$	111,398
	December 31, 2018
U.S. Treasury securities	$	3,036	$	-	$	(65	)	$	2,971
U.S. government agency mortgage-backed securities-residential		82,965		8		(2,757	)		80,216
U.S. government agency securities		16,919		-		(451	)		16,468
Municipal securities ¹		1,228		4		-			1,232
Other		425		-		-			425
Total	$	104,573	$	12	$	(3,273	)	$	101,312

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

The following table presents the fair value and unrealized losses of the Company’s available for sale securities with gross unrealized losses aggregated by the length of time the individual securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
						June 30, 2019
	(unaudited)
U.S. Treasury securities	$	-	$	-		$	-	$	-		$	-	$	-
U.S. government agency mortgage-backed securities-residential		-		-			40,967		(586	)		40,967		(586	)
U.S. government agency securities		-		-			12,820		(117	)		12,820		(117	)
Total	$	-	$	-		$	53,787	$	(703	)	$	53,787	$	(703	)
	December 31, 2018
U.S. Treasury securities	$	-	$	-		$	2,971	$	(65	)	$	2,971	$	(65	)
U.S. government agency mortgage-backed securities-residential		1,669		(4	)		76,586		(2,753	)		78,255		(2,757	)
U.S. government agency securities		0		0			16,468		(451	)		16,468		(451	)
Total	$	1,669	$	(4	)	$	96,025	$	(3,269	)	$	97,694	$	(3,273	)

At June 30, 2019 and December 31, 2018, the Company had 59 and 96 individual available-for-sale securities with unrealized losses totaling $703 and $3,273, respectively, with an aggregate depreciation of 1.31% and 3.35%, respectively, from the Company’s amortized cost.

Management believes that none of the unrealized losses on available for sale securities are other-than-temporary because substantially all of the unrealized losses in the Company’s investment portfolio relate to market interest rate changes on debt and mortgage-backed securities issued either directly by the government or from government sponsored enterprises. Because the Company does not intend to sell the securities and it is not likely that the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Company did not consider those investments to be other-than-temporarily impaired at June 30, 2019 or December 31, 2018.

The amortized cost and fair value of available for sale debt securities at June 30, 2019 and December 31, 2018, 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. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary:

	June 30, 2019				December 31, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(unaudited)
Maturity:
Within 1 year	$	1,221	$	1,217	$	1,221	$	1,210
After 1 but within 5 years		14,186		14,074		17,253		16,780
After 5 but within 10 years		5,557		5,603		1,975		1,945
After 10 years		200		200		734		736
Total Maturities		21,164		21,094		21,183		20,671
Mortgage-backed securities		89,707		89,713		82,965		80,216
Other		542		591		425		425
Total	$	111,413	$	111,398	$	104,573	$	101,312

At June 30, 2019 and December 31, 2018, available for sale securities with a carrying value of $26,222 and $27,465, respectively, were pledged to secure Federal Home Loan Bank of New York (“FHLB”) borrowings. In addition $1,187 and $1,032 of available for sale securities, respectively, were pledged to secure borrowings at the Federal Reserve Bank of New York.

During the six months ended June 30, 2019, there was $4,990 in proceeds from the sales of available for sale securities with $40 in gross losses realized. Proceeds from the sale of available for sale securities and calls aggregated $2,113 with $22 in gross losses realized for the year ended December 31, 2018.