Securities (Tables)

12 Months Ended

Dec. 31, 2018


	December 31, 2018
	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")	$ 7,641	$ 1	$ 281	$ 7,361
Residential Collateralized Mortgage Obligations ("CMOs")	102,411	199	1,870	100,740
U.S. Agency	12,472	9	606	11,875
Total securities available for sale	$ 122,524	$ 209	$ 2,757	$ 119,976

Securities held to maturity (HTM)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential MBS	$ 25,948	$ 75	$ 756	$ 25,267
Residential CMOs	52,375	64	1,360	51,079
U.S. Agency	10,508	7	404	10,111
Asset-backed securities issued by Others:
Residential CMOs	482	-	41	441
Callable GSE Agency Bonds	5,009	-	110	4,899
Certificates of Deposit Fixed	950	-	-	950
U.S. government obligations	999	-	1	998
Total securities held to maturity	$ 96,271	$ 147	$ 2,672	$ 93,745

Equity securities carried at fair value through income
CRA investment fund	$ 4,428	$ -	$ -	$ 4,428
Non-marketable equity securities
Other equity securities	$ 209	$ -	$ -	$ 209


	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 MBS	$ 7,265	$ -	$ 178	$ 7,087
Residential CMOs	45,283	12	1,158	44,137
U.S. Agency	12,863	-	346	12,517
Bond mutual funds	4,397	26	-	4,423
Total securities available for sale	$ 69,808	$ 38	$ 1,682	$ 68,164

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

Non-marketable equity securities
Other equity securities	$ 121	$ -	$ -	$ 121

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities at December 31, 2018 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.


December 31, 2018	Available for Sale		Held to Maturity
(dollars in thousands)	Amortized Cost	Estimated Fair Value	Amortized Cost	Estimated Fair Value
Within one year
U.S. government obligations	$ -	$ -	$ 999	$ 999

Asset-backed securities & U.S. Agencies
Within one year	19,719	19,309	19,862	23,965
Over one year through five years	59,732	58,490	41,013	37,408
Over five years through ten years	33,788	33,085	22,422	20,451
After ten years	9,285	9,092	11,975	10,922
Total asset-backed securities	122,524	119,976	95,272	92,746
	$ 122,524	$ 119,976	$ 96,271	$ 93,745

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, 2018 and 2017 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, 2018		December 31, 2017
Credit Rating	Amount	Credit Rating	Amount
(dollars in thousands)
AAA	$ 215,764	AAA	$ 162,336
BB	483	BB	651
B+	-	B+	-
Total	$ 216,247	Total	$ 162,987

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, 2018 and 2017 were as follows:


December 31, 2018	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	$ 30,095	$ 163	$ 54,846	$ 2,594	$ 84,941	$ 2,757
	$ 30,095	$ 163	$ 54,846	$ 2,594	$ 84,941	$ 2,757


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	$ 24,571	$ 328	$ 38,428	$ 1,354	$ 62,999	$ 1,682
	$ 24,571	$ 328	$ 38,428	$ 1,354	$ 62,999	$ 1,682

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, 2018 and 2017 were as follows:


December 31, 2018	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	$ 6,955	$ 38	$ 70,752	$ 2,483	$ 77,707	$ 2,521
Callable GSE Agency Bonds	-	-	4,899	110	4,899	110
Asset-backed securities issued by Others	-	-	441	41	441	41
	$ 6,955	$ 38	$ 76,092	$ 2,634	$ 83,047	$ 2,672


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