NOTE 4 - INVESTMENT SECURITIES

The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity at March 31, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses (in thousands):


			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At March 31, 2020	Cost		Gains		Losses		Fair Value
Debt securities available for sale:
Residential mortgage securities	$	163,163	$	5,951	$	—	$	169,114
Commercial mortgage securities		29,371		1,374		(5)		30,740
Total securities available-for-sale	$	192,534	$	7,325	$	(5)	$	199,854

Held-to-maturity securities:
Residential mortgage securities	$	3,520	$	68	$	—	$	3,588
Total securities held-to-maturity	$	3,520	$	68	$	—	$	3,588

Equity investments:
CRA Mutual Fund	$	2,270	$	2	$	—	$	2,272
Total non-trading equity investment securities	$	2,270	$	2	$	—	$	2,272


			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 non-trading equity investment securities	$	2,258	$	—	$	(34)	$	2,224

For the three months ended March 31, 2020, U.S. Agency Securities classified as available-for-sale were called and sold in the amounts of $5.0 million and $21.0 million, respectively. There were no sales or calls of securities for the three months ended March 31, 2019. The proceeds from sales and calls of securities and associated gains for the three months ended March 31, 2020 are listed below (in thousands):


	Three months ended March 31,
	2020		2019
Proceeds	$	20,975	$	—
Gross gains	$	975	$	—
Tax impact	$	(387)	$	—

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 are shown separately. The following tables summarize, by contractual maturity, the amortized cost and fair value of debt securities at March 31, 2020 and December 31, 2019. There were no debt securities with a single contractual maturity at March 31, 2020.


At March 31, 2020	Held-to-Maturity				Available-for-Sale
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	—	$	—	$	—	$	—
One to five years		—		—		—		—
Five to ten years		—		—		—		—
After ten years		—		—		—		—
Total	$	—	$	—	$	—	$	—

Residential mortgage securities	$	3,520	$	3,588		163,163		169,114
Commercial mortgage securities		—		—		29,371		30,740
Total Securities	$	3,520	$	3,588	$	192,534	$	199,854


At December 31, 2019	Held-to-Maturity				Available-for-Sale
(in thousands)	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

There were no securities pledged as collateral at March 31, 2020. At December 31, 2019, there were $126.2 million of securities available for sale pledged as collateral for certain deposits.

At March 31, 2020 and December 31, 2019, all of the residential mortgage securities and commercial mortgage securities held by the Bank were issued by U.S. Government-sponsored entities and agencies.

Securities with unrealized/unrecognized losses at March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized/unrecognized loss position, are as follows (in thousands):


	Less than 12 Months				12 months or more				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At March 31, 2020	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Debt securities available for sale:
Residential mortgage securities	$	—	$	—	$	—	$	—	$	—	$	—
Commercial mortgage securities		388		(5)		—		—		388		(5)
Total securities available for sale	$	388	$	(5)	$	—	$	—	$	388	$	(5)

Held-to-Maturity Securities:
Residential mortgage securities	$	—	$	—	$	—	$	—	$	—	$	—
Total securities held to maturity	$	—	$	—	$	—	$	—	$	—	$	—

Equity investments:
CRA Mutual Fund	$	—	$	—	$	—	$	—	$	—	$	—
Total equity investment securities	$	—	$	—	$	—	$	—	$	—	$	—


	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)

The unrealized losses on 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 March 31, 2020 and December 31, 2019 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 months ended March 31, 2020 or for the year ended December 31, 2019.

At March 31, 2020 and December 31, 2019, 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.