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 December 31, 2019 and 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses (dollars in thousands):


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2019	Cost		Gains		Losses		Fair Value
Debt securities available for sale
Residential mortgage securities	$	175,902	$	1,478	$	(117)	$	177,263
Commercial mortgage securities		32,284		206		(18)		32,472
U.S. Government agency securities		25,000		207		—		25,207
Total securities available for sale	$	233,186	$	1,891	$	(135)	$	234,942

Held-to-Maturity Securities:
Residential mortgage securities		3,722		9		(19)		3,712
Total securities held to maturity	$	3,722	$	9	$	(19)	$	3,712

Equity investments:
CRA Mutual Fund		2,258		—		(34)		2,224
Total equity investment securities	$	2,258	$	—	$	(34)	$	2,224


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2018	Cost		Gains		Losses		Fair Value
Debt securities available for sale
Residential mortgage securities	$	24,093	$	3	$	(583)	$	23,513
Commercial mortgage securities		5,874		—		(25)		5,849
Municipal bond		1,074		3		—		1,077
Total securities available for sale	$	31,041	$	6	$	(608)	$	30,439

Held-to-Maturity Securities:
Residential mortgage securities		4,546		—		(168)		4,378
Foreign government securities		25		—		—		25
Total securities held to maturity	$	4,571	$	—	$	(168)	$	4,403

Equity investments:
CRA Mutual Fund	$	2,208		—		(98)		2,110
Total equity investment securities	$	2,208	$	—	$	(98)	$	2,110

The proceeds from calls of securities during the years ended December 31, 2019 and 2018 were $1.1 million and $1.5 million, respectively. There were no gains or losses on the call of securities during the year ended December 31, 2019. Loss on calls of securities during the year ended December 31, 2018 were $37,000.

The following table summarizes, by contractual maturity, amortized cost and fair value of debt securities at December 31, 2019 and 2018. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The table does not include the effect of principal repayments. Equity securities, primarily investment in mutual funds, have been excluded from the table. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately (dollars in thousands):


	Held-to-Maturity				Available-for-Sale
At December 31, 2019	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		25,000		25,207
Due after ten years		—		—		—		—
Total	$	—	$	—	$	25,000	$	25,207

Residential mortgage securities	$	3,722	$	3,712	$	175,902	$	177,263
Commercial mortgage securities		—		—		32,284	$	32,472

Total Securities	$	3,722	$	3,712	$	233,186	$	234,942


	Held-to-Maturity				Available-for-Sale
At December 31, 2018	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	25	$	25	$	257	$	258
One to five years		—		—		—		—
Five to ten years		—		—		—		—
Due after ten years		—		—		817		819
Total	$	25	$	25	$	1,074	$	1,077

Residential mortgage securities	$	4,546	$	4,378	$	24,093	$	23,513
Commercial mortgage securities		—		—		5,874	$	5,849

Total Securities	$	4,571	$	4,403	$	31,041	$	30,439

There were $126.2 million of AFS securities pledged as collateral for certain deposits at December 31, 2019. There were no securities pledged at December 31, 2018.

At December 31, 2019 and 2018, all of the mortgage-backed securities and collateralized mortgage obligations held by the Bank were issued by U.S. government-sponsored entities and agencies.

Securities with unrealized losses for the years ended December 31, 2019 and 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized 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 December 31, 2019	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Debt securities available for sale
Residential mortgage securities	$	22,850	$	(52)	$	6,728	$	(65)	$	29,578	$	(117)
Commercial mortgage securities		9,911		(18)		—		—		9,911		(18)
Total securities available for sale	$	32,761	$	(70)	$	6,728	$	(65)	$	39,489	$	(135)

Held-to-Maturity Securities:
Residential mortgage securities	$	—	$	—	$	1,470	$	(19)	$	1,470	$	(19)
Total securities held to maturity	$	—	$	—	$	1,470	$	(19)	$	1,470	$	(19)

Equity investments:
CRA Mutual Fund	$	—	$	—	$	2,224	$	(34)	$	2,224	$	(34)
Total equity investment securities	$	—	$	—	$	2,224	$	(34)	$	2,224	$	(34)


	Less than 12 Months				12 months or more				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At December 31, 2018	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Debt securities available for sale
Residential mortgage securities	$	10,374	$	(73)	$	9,890	$	(510)	$	20,264	$	(583)
Commercial mortgage securities		—		—		5,849		(25)		5,849		(25)
Total securities available for sale	$	10,374	$	(73)	$	15,739	$	(535)	$	26,113	$	(608)

Held-to-Maturity Securities:
Residential mortgage securities	$	—	$	—	$	4,378	$	(168)	$	4,378	$	(168)
Total securities held to maturity	$	—	$	—	$	4,378	$	(168)	$	4,378	$	(168)

Equity investments:
CRA Mutual Fund	$	—	$	—	$	2,110	$	(98)	$	2,110	$	(98)
Total equity investment securities	$	—	$	—	$	2,110	$	(98)	$	2,110	$	(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 December 31, 2019 and 2018 since the decline in market value was 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 years ended December 31, 2019 or 2018.

As of December 31, 2019 and 2018, 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.