Securities (Tables)

12 Months Ended

Dec. 31, 2016


	December 31, 2016
	Amortized	Gross Unrealized	Gross Unrealized	Estimated
(dollars in thousands)	Cost	Gains	Losses	Fair Value
Securities available for sale (AFS)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential Mortgage Backed Securities ("MBS")	$ 4,377	$ -	$ 194	$ 4,183
Residential Collateralized Mortgage Obligations ("CMOs")	35,176	18	966	34,228
U.S. Agency	10,589	-	417	10,172
Corporate equity securities	37	-	-	37
Bond mutual funds	4,386	27	-	4,413
Total securities available for sale	$ 54,565	$ 45	$ 1,577	$ 53,033

Securities held to maturity (HTM)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential MBS	$ 34,735	$ 367	$ 569	$ 34,533
Residential CMOs	63,060	135	802	62,393
U.S. Agency	6,717	-	253	6,464
Asset-backed securities issued by Others:
Residential CMOs	884	-	81	803
Total debt securities held to maturity	105,396	502	1,705	104,193

Callable GSE Agency Bonds	3,001	-	10	2,991
U.S. government obligations	850	-	-	850
Total securities held to maturity	$ 109,247	$ 502	$ 1,715	$ 108,034


	December 31, 2015
	Amortized	Gross Unrealized	Gross Unrealized	Estimated
(dollars in thousands)	Cost	Gains	Losses	Fair Value
Securities available for sale (AFS)
Asset-backed securities issued by GSEs
Residential MBS	$ 22	$ 4	$ -	$ 26
Residential CMOs	31,182	39	557	30,664
Corporate equity securities	37	2	-	39
Bond mutual funds	4,289	98	-	4,387
Total securities available for sale	$ 35,530	$ 143	$ 557	$ 35,116

Securities held to maturity (HTM)
Asset-backed securities issued by GSEs
Residential MBS	$ 34,085	$ 552	$ 242	$ 34,395
Residential CMOs	73,492	278	599	73,171
Asset-backed securities issued by Others:
Residential CMOs	1,093	-	100	993
Total debt securities held to maturity	108,670	830	941	108,559

U.S. government obligations	750	-	-	750
Total securities held to maturity	$ 109,420	$ 830	$ 941	$ 109,309

Investments Classified by Contractual Maturity Date


	Available for Sale		Held to Maturity
December 31, 2016		Estimated		Estimated
	Amortized	Fair	Amortized	Fair
(dollars in thousands)	Cost	Value	Cost	Value
Within one year
Bond mutual funds	$ 4,386	$ 4,413	$ -	$ -
U.S. government obligations	-	-	850	850

Asset-backed securities & U.S. Agencies
Within one year	7,879	7,634	18,844	21,104
Over one year through five years	21,481	20,813	47,168	45,339
Over five years through ten years	13,093	12,686	29,803	28,647
After ten years	7,689	7,450	12,582	12,094
Total asset-backed securities	50,142	48,583	108,397	107,184

	$ 54,528	$ 52,996	$ 109,247	$ 108,034


	Available for Sale		Held to Maturity
December 31, 2015		Estimated		Estimated
	Amortized	Fair	Amortized	Fair
(dollars in thousands)	Cost	Value	Cost	Value
Within one year
Bond mutual funds	$ 4,289	$ 4,387	$ -	$ -
U.S. government obligations	-	-	750	750

Asset-backed securities
Within one year	6,075	5,975	21,850	21,828
Over one year through five years	15,355	15,102	50,895	50,843
Over five years through ten years	7,727	7,600	23,259	23,235
After ten years	2,047	2,013	12,666	12,653
Total asset-backed securities	31,204	30,690	108,670	108,559

	$ 35,493	$ 35,077	$ 109,420	$ 109,309

Credit Quality of Asset-Backed Securities and Agency Bonds

The tables below present the Standard & Poor’s (“S&P”) or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities issued by GSEs and U.S. Agencies and others or bonds issued by GSEs or U.S. government agencies at December 31, 2016 and 2015 by carrying value. The Company considers noninvestment grade securities rated BB+ or lower as classified assets for regulatory and financial reporting. GSE asset-backed securities and GSE agency bonds with S&P AA+ ratings were treated as AAA based on regulatory guidance.



December 31, 2016		December 31, 2015
Credit Rating	Amount	Credit Rating	Amount
(dollars in thousands)
AAA	$ 156,947	AAA	$ 138,267
BB	411	BB	518
B+	472	B+	575
Total	$ 157,830	Total	$ 139,360

Held-To-Maturity Securities [Member]

Schedule of Unrealized Loss on Investments

HTM Securities

Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2016 were as follows:


December 31, 2016	Less Than 12		More Than 12
	Months		Months		Total
(dollars in thousands)	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Losses
Asset-backed securities issued by GSEs and U.S. Agencies	77,879	1,452	6,340	182	84,219	1,634
Asset-backed securities issued by Others	-	-	803	81	803	81
	$ 77,879	$ 1,452	$ 7,143	$ 263	$ 85,022	$ 1,715

Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2015 were as follows:


December 31, 2015	Less Than 12		More Than 12
	Months		Months		Total
(dollars in thousands)	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Losses
Asset-backed securities issued by GSEs	$ 36,337	$ 346	$ 16,431	$ 495	$ 52,768	$ 841
Asset-backed securities issued by other	-	-	992	100	992	100
	$ 36,337	$ 346	$ 17,423	$ 595	$ 53,760	$ 941

Available-For-Sale Securities [Member]

Schedule of Unrealized Loss on Investments

AFS Securities

Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2016 were as follows:

December 31, 2016

Less Than 12

More Than 12

Months

Total

(dollars in thousands)

Fair Value

Unrealized Loss

Fair Value

Unrealized Loss

Fair Value

Unrealized Losses

Asset-backed securities issued by
GSEs and U.S. Agencies

$ 34,262

$ 1,110

$ 11,846

$ 467

$ 46,108

$ 1,577

Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2015 were as follows:

December 31, 2015

Less Than 12

More Than 12

Months

Total

(dollars in thousands)

Fair Value

Unrealized Loss

Fair Value

Unrealized Loss

Fair Value

Unrealized Losses

Asset-backed securities
issued by GSEs

$ 4,658

$ 28

$ 17,344

$ 529

$ 22,002

$ 557