Securities (Tables)

6 Months Ended

Jun. 30, 2019



(dollars in thousands)	June 30, 2019
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available for sale (AFS)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential Mortgage Backed Securities ("MBS")	$	12,000	$	54	$	21	$	12,033
Residential Collateralized Mortgage Obligations ("CMOs")	105,150		1,761		377		106,534
U.S. Agency	11,621		95		71		11,645
Total securities available for sale	$	128,771	$	1,910	$	469	$	130,212

Securities held to maturity (HTM)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential MBS	28,639		590		21		29,208
Residential CMOs	50,025		353		278		50,100
U.S. Agency	9,804		140		51		9,893
Asset-backed securities issued by others:
Residential CMOs	435		4		14		425
Callable GSE agency bonds	5,005		—		8		4,997
Certificates of deposit fixed	250		—		—		250
U.S. government obligations	1,499		—		—		1,499
Total securities held to maturity	$	95,657	$	1,087	$	372	$	96,372

Equity securities carried at fair value through income
CRA investment fund	$	4,603	$	—	$	—	$	4,603
Non-marketable equity securities
Other equity securities	$	209	$	—	$	—	$	209



(dollars in thousands)	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


Securities available for sale (AFS)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential MBS	$	7,641	$	1	$	281	$	7,361
Residential 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	$	146	$	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

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 securities at June 30, 2019 and December 31, 2018 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.



June 30, 2019			December 31, 2018
Credit Rating	Amount		Credit Rating	Amount
(dollars in thousands)
AAA	$	225,434	AAA	$	215,765
BB	435		BB	482
B+	—		B+	—
Total	$	225,869	Total	$	216,247

Available-For-Sale Securities [Member]

Marketable Securities [Line Items]

Schedule of Unrealized Loss on Investments

AFS Securities

Gross unrealized losses and estimated fair value by length of time that individual AFS securities have been in a continuous unrealized loss position at June 30, 2019, and December 31, 2018 were as follows:



June 30, 2019	Less Than 12 Months				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	$	—	$	—	$	32,400	$	469	$	32,400	$	469
	$	—	$	—	$	32,400	$	469	$	32,400	$	469



December 31, 2018	Less Than 12 Months				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	$	30,095	$	163	$	54,846	$	2,594	$	84,941	$	2,757
	$	30,095	$	163	$	54,846	$	2,594	$	84,941	$	2,757

Held-To-Maturity Securities [Member]

Marketable Securities [Line Items]

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 June 30, 2019 and December 31, 2018 were as follows:



June 30, 2019	Less Than 12 Months				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	$	—	$	—	$	32,989	$	350	$	32,989	$	350
Callable GSE Agency Bonds	—		—		4,998		8		4,998		8
Asset-backed securities issued by others	—		—		425		14		425		14
	$	—	$	—	$	38,412	$	372	$	38,412	$	372



December 31, 2018	Less Than 12 Months				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	$	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