Available-for-Sale Securities, at Fair Value

6 Months Ended

Jun. 30, 2019

Debt Securities, Available-for-sale [Abstract]

Available-for-Sale Securities, at Fair Value

Available-for-Sale Securities

The following table presents the face value and carrying value (which approximates fair value) of AFS securities as of June 30, 2019 and December 31, 2018:

(in thousands)	June 30, 2019		December 31, 2018
Face value	$	12,798	$	12,798
Gross unrealized gains	32		—
Gross unrealized losses	—		(192		)
Carrying value	$	12,830	$	12,606

On June 30, 2019, the Company’s AFS securities had contractual maturities of less than one year.

At June 30, 2019 and December 31, 2018, the Company pledged AFS securities with a carrying value of $12.8 million and $12.6 million, respectively, as collateral for repurchase agreements. See Note 10 - Repurchase Agreements.

At June 30, 2019, the Company’s AFS securities were in a unrealized gain position. At December 31, 2018, the Company’s AFS securities were in an unrealized loss position for less than twelve months.

Evaluating AFS Securities for Other-Than-Temporary Impairments

In evaluating AFS securities for other-than-temporary impairments, or OTTI, the Company determines whether there has been a significant adverse quarterly change in the cash flow expectations for a security. The Company compares the amortized cost of each security in an unrealized loss position against the present value of expected future cash flows of the security. The Company also considers whether there has been a significant adverse change in the regulatory and/or economic environment as part of this analysis. If the amortized cost of the security is greater than the present value of expected future cash flows using the original yield as the discount rate, an other-than-temporary credit impairment has occurred. If the Company does not intend to sell and will not be more likely than not required to sell the security, the credit loss is recognized in earnings and the balance of the unrealized loss is recognized in other comprehensive income (loss). If the Company intends to sell the security or will be more likely than not required to sell the security, the full unrealized loss is recognized in earnings. The Company did not record any other-than-temporary credit impairments during the three and six months ended June 30, 2019 and 2018 as expected cash flows were greater than amortized cost for all AFS securities held.