| INVESTMENT SECURITIES |
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 September 30, 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 | | | | | | Amortized | | Unrealized | | Unrealized | | | | At September 30, 2020 | | Cost | | Gains | | Losses | | Fair Value | Debt securities available for sale: | | | | | | | | | | | | | Residential mortgage securities | | $ | 124,411 | | $ | 2,709 | | $ | — | | $ | 127,120 | Commercial mortgage securities | | | 26,246 | | | 1,051 | | | (42) | | | 27,255 | U.S. Government agency securities | | | 27,997 | | | — | | | (38) | | | 27,959 | Total securities available-for-sale | | $ | 178,654 | | $ | 3,760 | | $ | (80) | | $ | 182,334 | | | | | | | | | | | | | | Held-to-maturity securities: | | | | | | | | | | | | | Residential mortgage securities | | $ | 3,050 | | $ | 74 | | $ | — | | $ | 3,124 | Total securities held-to-maturity | | $ | 3,050 | | $ | 74 | | $ | — | | $ | 3,124 | | | | | | | | | | | | | | Equity investments: | | | | | | | | | | | | | CRA Mutual Fund | | $ | 2,290 | | $ | 21 | | $ | — | | $ | 2,311 | Total non-trading equity investment securities | | $ | 2,290 | | $ | 21 | | $ | — | | $ | 2,311 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | | | 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 September 30, 2020, there were calls of $25.0 million, at amortized cost, of available-for-sale securities. There were sales and calls of $108.1 million and $30.0 million, at amortized cost, respectively, for the nine months ended September 30, 2020 and calls of $1.1 million for the nine months ended September 30, 2019. The proceeds from sales and calls of securities and associated gains for the three and nine months ended September 30, 2020 and 2019 (in thousands): | | | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | | 2020 | | 2019 | | 2020 | | 2019 | Proceeds | | $ | 25,000 | | $ | — | | $ | 141,422 | | $ | 1,065 | Gross gains | | $ | — | | $ | — | | $ | 3,286 | | $ | — | Tax impact | | $ | — | | $ | — | | $ | (1,036) | | $ | — |
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 September 30, 2020 and December 31, 2019 (in thousands): | | | | | | | | | | | | | | | Held-to-Maturity | | Available-for-Sale | At September 30, 2020 | | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | Within one year | | $ | — | | $ | — | | $ | — | | $ | — | One to five years | | | — | | | — | | | 27,997 | | | 27,959 | Five to ten years | | | — | | | — | | | — | | | — | After ten years | | | — | | | — | | | — | | | — | Total | | $ | — | | $ | — | | $ | 27,997 | | $ | 27,959 | | | | | | | | | | | | | | Residential mortgage securities | | $ | 3,050 | | $ | 3,124 | | | 124,411 | | | 127,120 | Commercial mortgage securities | | | — | | | — | | | 26,246 | | | 27,255 | Total Securities | | $ | 3,050 | | $ | 3,124 | | $ | 178,654 | | $ | 182,334 |
| | | | | | | | | | | | | | | 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 |
There were no securities pledged as collateral at September 30, 2020. At December 31, 2019, there were $126.2 million of securities available for sale pledged as collateral for certain deposits. At September 30, 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 September 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 months or more | | Total | | | Estimated | | Unrealized | | Estimated | | Unrealized | | Estimated | | Unrealized | At September 30, 2020 | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | Debt securities available for sale: | | | | | | | | | | | | | | | | | | | Commercial mortgage securities | | $ | 5,477 | | $ | (41) | | $ | 387 | | $ | (1) | | $ | 5,864 | | $ | (42) | U.S. Government agency securities | | | 27,959 | | | (38) | | | — | | | — | | | 27,959 | | | (38) | Total securities available for sale | | $ | 33,436 | | $ | (79) | | $ | 387 | | $ | (1) | | $ | 33,823 | | $ | (80) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 months or more | | Total | | | Estimated | | Unrealized | | Estimated | | Unrealized | | Estimated | | Unrealized | 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 did not consider these securities to be other-than-temporarily impaired at September 30, 2020 or December 31, 2019 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 nine months ended September 30, 2020 or for the year ended December 31, 2019. At September 30, 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.
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