INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2018

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

NOTE 4 - INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair value of securities available for sale and securities held to maturity at June 30, 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 June 30, 2018	Amortized Cost		Gross Unrealized/ Unrecognized Gains		Gross Unrealized/ Unrecognized Losses			Fair Value
Available for sale
Residential mortgage-backed securities	$	24,133	$	3	$	(672	)	$	23,464
Residential collateralized mortgage obligations		2,485		-		(134	)		2,351
Municipal bond		1,086		7		-			1,093
CRA mutual fund		2,183		-		(102	)		2,081
Total securities available for sale	$	29,887	$	10	$	(908	)	$	28,989
Held to maturity
Residential mortgage-backed securities	$	4,960		-	$	(203	)	$	4,757
Foreign government securities		25		-		-			25
Total securities held to maturity	$	4,985	$	-	$	(203	)	$	4,782

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

The proceeds from sales and calls of securities and the associated gains and losses are listed below (dollars in thousands):

	Three and six months ended June 30,
	2018			2017
Proceeds	$	1,500		$	-
Gross gains	$	-		$	-
Gross losses	$	(37	)	$	-
Tax impact	$	11		$	-

The amortized cost and fair value of debt securities at June 30, 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 (dollars in thousands):

	Held to Maturity				Available for Sale
At June 30, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	25	$	25	$	-	$	-
One to five years		-		-		-		-
Five to ten years		-		-		-		-
Due after ten years		-		-		1,086		1,093
Total	$	25	$	25	$	1,086	$	1,093
Residential mortgage-backed securities	$	4,960	$	4,757	$	24,133	$	23,464
Residential collateralized mortgage obligations		-		-		2,485		2,351
CRA mutual fund		-		-		2,183		2,081
Total Securities	$	4,985	$	4,782	$	29,887	$	28,989

	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		-		-		-		-
Due after 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 June 30, 2018 and December 31, 2017 to secure borrowings.

At June 30, 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 June 30, 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 June 30, 2018	Estimated Fair Value		Unrealized/ Unrecognized Losses			Estimated Fair Value		Unrealized/ Unrecognized Losses			Estimated Fair Value		Unrealized/ Unrecognized Losses
Residential mortgage-backed securities	$	15,054	$	(308	)	$	8,148	$	(364	)	$	23,202	$	(672	)
Residential collateralized mortgage obligations		-		-			2,351		(134	)		2,351		(134	)
CRA mutual fund		-		-			2081		(102	)		2,081		(102	)
Total securities available for sale	$	15,054	$	(308	)	$	12,580	$	(600	)	$	27,634	$	(908	)
Residential mortgage-backed securities	$	2,909	$	(95	)	$	1,848	$	(108	)	$	4,757	$	(203	)
Total held to maturity	$	2,909	$	(95	)	$	1,848	$	(108	)	$	4,757	$	(203	)

	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	)

The unrealized losses of securities are primarily due to the changes in market interest rates subsequent to purchase. The Bank does not consider these securities to be other-than-temporarily impaired at June 30, 2018 and December 31, 2017 since the decline in market value is attributable to changes in interest rates and not credit quality. In addition, the Company does not intend to sell and does not believe that it is more likely than not that it will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, no impairment loss was recognized during the six months ended June 30, 2018.

At June 30, 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.