Securities (Tables)

12 Months Ended

Dec. 31, 2017


	December 31, 2017
	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")	$ 7,265	$ -	$ 178	$ 7,087
Residential Collateralized Mortgage Obligations ("CMOs")	45,283	12	1,158	44,137
U.S. Agency	12,863	-	346	12,517
Corporate equity securities	37	-	-	37
Bond mutual funds	4,480	27	-	4,507
Total securities available for sale	$ 69,928	$ 39	$ 1,682	$ 68,285

Securities held to maturity (HTM)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential MBS	$ 29,113	$ 135	$ 261	$ 28,987
Residential CMOs	54,805	62	845	54,022
U.S. Agency	8,660	-	235	8,425
Asset-backed securities issued by Others:
Residential CMOs	651	-	52	599
Callable GSE Agency Bonds	5,017	-	43	4,974
U.S. government obligations	1,000	-	-	1,000
Total securities held to maturity	$ 99,246	$ 197	$ 1,436	$ 98,007


	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 MBS	$ 4,377	$ -	$ 194	$ 4,183
Residential 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
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

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities at December 31, 2017 and 2016 by contractual maturity, are shown below. The Company has allocated the asset-backed securities into the four maturity groups listed below using the expected average life of the individual securities based on statistics provided by industry sources. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.


	Available for Sale		Held to Maturity
December 31, 2017		Estimated		Estimated
	Amortized	Fair	Amortized	Fair
(dollars in thousands)	Cost	Value	Cost	Value
Within one year
Bond mutual funds	$ 4,480	$ 4,507	$ -	$ -
U.S. government obligations	-	-	1,000	1,000

Asset-backed securities & U.S. Agencies
Within one year	9,853	9,601	18,722	22,512
Over one year through five years	28,832	28,096	41,433	38,813
Over five years through ten years	20,357	19,838	25,309	23,709
After ten years	6,369	6,206	12,782	11,973
Total asset-backed securities	65,411	63,741	98,246	97,007

	$ 69,891	$ 68,248	$ 99,246	$ 98,007


	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

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, 2017 and 2016 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, 2017		December 31, 2016
Credit Rating	Amount	Credit Rating	Amount
(dollars in thousands)
AAA	$ 162,336	AAA	$ 156,947
BB	651	BB	411
B+	-	B+	472
Total	$ 162,987	Total	$ 157,830

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, 2017 were as follows:

December 31, 2017

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

$ 24,571

$ 328

$ 38,428

$ 1,354

$ 62,999

$ 1,682

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

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, 2017 were as follows:


December 31, 2017	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	36,607	254	45,119	1,130	81,726	1,384
Asset-backed securities issued by Others	-	-	599	52	599	52
	$ 36,607	$ 254	$ 45,718	$ 1,182	$ 82,325	$ 1,436

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