INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2018

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

NOTE 2 - INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized losses (dollars in thousands):

At March 31, 2018	Amortized Cost		Gross Unrealized/Unrecognized Gains		Gross Unrealized/Unrecognized Losses			Fair Value
Available-for-sale
Residential mortgage-backed securities	$	23,563	$	8	$	(533	)	$	23,038
Residential collateralized mortgage obligations		2,649		-		(128	)		2,521
Commercial collateralized mortgage obligations		1,571		-		(39	)		1,532
Municipal bond		1,092		8		-			1,100
CRA mutual fund		2,171		-		(86	)		2,085
Total securities available-for-sale	$	31,046	$	16	$	(786	)	$	30,276
Held-to-maturity
Residential mortgage-backed securities	$	5,187		-	$	(190	)	$	4,997
Foreign government securities		25		-		-			25
Total securities held-to-maturity	$	5,212	$	-	$	(190	)	$	5,022

At December 31, 2017	Amortized Cost		Gross Unrealized/Unrecognized Gains		Gross Unrealized/Unrecognized Losses			Fair Value
Available-for-sale
Residential mortgage-backed securities	$	24,856	$	70	$	(242	)	$	24,684
Residential collateralized mortgage obligations		2,809		-		(103	)		2,706
Commercial collateralized mortgage obligations		1,581		-		(31	)		1,550
Municipal bond		1,098		11		-			1,109
CRA mutual fund		2,160		-		(52	)		2,108
Total securities available-for-sale	$	32,504	$	81	$	(428	)	$	32,157
Held-to-maturity
Residential mortgage-backed securities	$	5,403	$	-	$	(98	)	$	5,305
Foreign government securities		25		-		-			25
Total securities held-to-maturity	$	5,428	$	-	$	(98	)	$	5,330

There were no sales or calls of securities during the three months ended March 31, 2018 and March 31, 2017.

The amortized cost and fair value of debt securities at March 31, 2018 and December 31, 2017 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mutual funds and mortgage-backed securities are shown separately (dollars in thousands):

	Held to Maturity				Available for Sale
At March 31, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	-	$	-	$	-	$	-
One to five years		25		25		-		-
Five to ten years		-		-		-		-
Beyond ten years		-		-		1,092		1,100
Total		25		25		1,092		1,100
Residential mortgage-backed securities	$	5,187	$	4,997	$	23,563	$	23,038
Residential collateralized mortgage obligations		-		-		2,649		2,521
Commercial collateralized mortgage obligations		-		-		1,571		1,532
CRA mutual fund		-		-		2,171		2,085
Total Securities	$	5,212	$	5,022	$	31,046	$	30,276

	Held to Maturity				Available for Sale
At December 31, 2017	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	-	$	-	$	-	$	-
One to five years		25		25		-		-
Five to ten years		-		-		-		-
Beyond ten years		-		-		1,098		1,109
Total		25		25		1,098		1,109
Residential mortgage-backed securities	$	5,403	$	5,305	$	24,856	$	24,684
Residential collateralized mortgage obligations		-		-		2,809		2,706
Commercial collateralized mortgage obligations		-		-		1,581		1,550
CRA mutual fund		-		-		2,160		2,108
Total Securities	$	5,428	$	5,330	$	32,504	$	32,157

There were no securities pledged at March 31, 2018 and December 31, 2017 to secure borrowings.

At March 31, 2018 and December 31, 2017, all of the mortgage-backed securities and collateralized mortgage obligations held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support.

Securities with unrealized/unrecognized losses at March 31, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized/unrecognized loss position, are as follows (dollars in thousands):

	Less than 12 Months					12 months or more					Total
At March 31, 2018	Estimated Fair Value		Unrealized/ Unrecognized Losses			Estimated Fair Value		Unrealized/ Unrecognized Losses			Estimated Fair Value		Unrealized/ Unrecognized Losses
Residential mortgage-backed securities	$	15,148	$	(261	)	$	7,195	$	(272	)	$	22,343	$	(533	)
Residential collateralized mortgage obligations		-		-			2,521		(128	)		2,521		(128	)
Commercial collateralized mortgage obligations		-		-			1,532		(39	)		1,532		(39	)
CRA mutual fund		-		-			2,085		(86	)		2,085		(86	)
Total securities available-for-sale	$	15,148	$	(261	)	$	13,333	$	(525	)	$	28,481	$	(786	)
Residential mortgage-backed securities	$	3,062	$	(91	)	$	1,935	$	(99	)		4,997		(190	)
Total held-to-maturity	$	3,062	$	(91	)	$	1,935	$	(99	)	$	4,997	$	(190	)

	Less than 12 Months					12 months or more					Total
At December 31, 2017	Estimated Fair Value		Unrealized/ Unrecognized Losses			Estimated Fair Value		Unrealized/ Unrecognized Losses			Estimated Fair Value		Unrealized/ Unrecognized Losses
Residential mortgage-backed securities	$	9,194	$	(85	)	$	7,738	$	(157	)	$	16,932	$	(242	)
Residential collateralized mortgage obligations		-		-			2,706		(103	)		2,706		(103	)
Commercial collateralized mortgage obligations							1,550		(31	)		1,550		(31	)
CRA mutual fund		-		-			2,108		(52	)		2,108		(52	)
Total securities available-for-sale	$	9,194	$	(85	)	$	14,102	$	(343	)	$	23,296	$	(428	)
Residential mortgage-backed securities	$	3,260	$	(33	)	$	2,045	$	(65	)	$	5,305	$	(98	)
Total held-to-maturity	$	3,260	$	(33	)	$	2,045	$	(65	)	$	5,305	$	(98	)

Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2018 and December 31, 2017.

At March 31, 2018 and December 31, 2017, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.