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 September 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):


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At September 30, 2018	Cost		Gains		Losses		Fair Value
Available-for-sale
Residential mortgage-backed securities	$	22,911	$	1	$	(787)	$	22,125
Residential collateralized mortgage obligations		2,340		—		(135)		2,205
Commercial collateralized mortgage obligations		—		—		—		—
Municipal bond		1,080		3		—		1,083
CRA mutual fund		2,195		—		(118)		2,077
Total securities available-for-sale	$	28,526	$	4	$	(1,040)	$	27,490

Held-to-maturity
Residential mortgage-backed securities	$	4,732		—	$	(228)	$	4,504
Foreign government securities		25		—		—		25
Total securities held-to-maturity	$	4,757	$	—	$	(228)	$	4,529


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2017	Cost		Gains		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 calls of securities and the associated losses during the nine months ended September 30, 2018 were $1.5 million and $(37,000), respectively. There were no sales or calls of securities for the three months ended September 30, 2018 and for the year ended December 31, 2017.

The amortized cost and fair value of debt securities at September 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 September 30, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	25	$	25	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		22,018		21,205
Due after ten years		4,732		4,504		6,508		6,285
Total	$	4,757	$	4,529	$	28,526	$	27,490


	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		1,581		1,550
Five to ten years		—		—		17,036		16,905
Due after ten years		5,403		5,305		13,887		13,702
Total	$	5,428	$	5,330	$	32,504	$	32,157

There were no securities pledged at September 30, 2018 and December 31, 2017 to secure borrowings.

At September 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.

Securities with unrealized/unrecognized losses at September 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
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At September 30, 2018	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Residential mortgage-backed securities	$	10,826	$	(236)	$	11,054	$	(551)	$	21,880		(787)
Residential collateralized mortgage obligations		—		—		2,205		(135)		2,205		(135)
CRA mutual fund		—		—		2,077		(118)		2,077		(118)
Total securities available-for-sale	$	10,826	$	(236)	$	15,336	$	(804)	$	26,162	$	(1,040)

Residential mortgage-backed securities	$	—	$	—	$	4,504	$	(228)		4,504		(228)
Total securities held-to-maturity	$	—	$	—	$	4,504	$	(228)	$	4,504	$	(228)


	Less than 12 Months				12 months or more				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At December 31, 2017	Fair Value		Losses		Fair Value		Losses		Fair Value		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 securities 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 September 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 Bank 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 three and nine months ended September 30, 2018 and for the year ended December 31, 2017.

At September 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.