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Securities (Notes) | 12 Months Ended
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Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract] |
Securities | The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income is as follows:
Available-for-Sale Securities | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2018 |  |  |  |  |  |  |
Certificates of deposit | $ | 73,507 |  |  | $ | — |  |  | $ | — |  |  | $ | 73,507 |
Municipal securities | 509 |  |  | — |  |  | — |  |  | 509 |
Mortgage-backed securities - residential | 10,116 |  |  | 400 |  |  | (38 | ) |  | 10,478 |
Collateralized mortgage obligations - residential | 3,676 |  |  | 11 |  |  | (2 | ) |  | 3,685 |
| $ | 87,808 |  |  | $ | 411 |  |  | $ | (40 | ) |  | $ | 88,179 |
December 31, 2017 |  |  |  |  |  |  |
Certificates of deposit | $ | 75,916 |  |  | $ | — |  |  | $ | — |  |  | $ | 75,916 |
Equity mutual fund | 500 |  |  | — |  |  | (1 | ) |  | 499 |
Mortgage-backed securities - residential | 11,969 |  |  | 520 |  |  | (17 | ) |  | 12,472 |
Collateralized mortgage obligations - residential | 4,481 |  |  | 16 |  |  | (11 | ) |  | 4,486 |
SBA-guaranteed loan participation certificates | 10 |  |  | — |  |  | — |  |  | 10 |
| $ | 92,876 |  |  | $ | 536 |  |  | $ | (29 | ) |  | $ | 93,383 |
Equity Investments (1) |  |  |  |  |  |  |
December 31, 2018 |  |  |  |  |  |  |
Visa Class B shares | $ | — |  |  | 3,427 |  |  | — |  |  | $ | 3,427 |
(1) | Equity investments are included in Other Assets in the Consolidated Statements of Financial Condition.
Mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities and agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the government has affirmed its commitment to support. The amortized cost and fair values of securities available-for-sale at December 31, 2018 by contractual maturity are shown below. Securities not due at a single maturity date are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
| December 31, 2018
| Amortized Cost |  | Fair Value
Due in one year or less | $ | 73,507 |  |  | $ | 73,507 |
Due after one year through five years | 509 |  |  | 509 |
| 74,016 |  |  | 74,016 |
Mortgage-backed securities - residential | 10,116 |  |  | 10,478 |
Collateralized mortgage obligations - residential | 3,676 |  |  | 3,685 |
| $ | 87,808 |  |  | $ | 88,179 |
Investment securities available for sale with carrying amounts of $2.7 million and $3.7 million at December 31, 2018 and 2017, respectively, were pledged as collateral on customer repurchase agreements and for other purposes as required or permitted by law. Sales of equity securities were as follows:
| For the years ended December 31,
| 2018 |  | 2017
Proceeds | $ | 4,059 |  |  | $ | — |
Gross gains | 3,572 |  |  | — |
Gross losses | (14 | ) |  | — |
Securities available-for-sale with unrealized losses at December 31, 2018 and 2017 not recognized in income are as follows:
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities - residential | $ | — |  |  | $ | — |  |  | $ | 904 |  |  | $ | (38 | ) |  | $ | 904 |  |  | $ | (38 | )
Collateralized mortgage obligations - residential | — |  |  | — |  |  | 1,729 |  |  | (2 | ) |  | 1,729 |  |  | (2 | )
| $ | — |  |  | $ | — |  |  | $ | 2,633 |  |  | $ | (40 | ) |  | $ | 2,633 |  |  | $ | (40 | )
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |
Equity mutual fund | $ | 499 |  |  | $ | (1 | ) |  | $ | — |  |  | $ | — |  |  | $ | 499 |  |  | $ | (1 | )
Mortgage-backed securities - residential | — |  |  | — |  |  | 1,149 |  |  | (17 | ) |  | 1,149 |  |  | (17 | )
Collateralized mortgage obligations - residential | — |  |  | — |  |  | 2,083 |  |  | (11 | ) |  | 2,083 |  |  | (11 | )
| $ | 499 |  |  | $ | (1 | ) |  | $ | 3,232 |  |  | $ | (28 | ) |  | $ | 3,731 |  |  | $ | (29 | )
The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary. Certain residential mortgage-backed securities and collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at December 31, 2018, but the unrealized loss was not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is not likely that the Company will be required to sell the securities before their anticipated recovery occurs. The Bank, as a member of Visa USA, received 51,404 unrestricted shares of Visa, Inc. Class B common stock in connection with Visa, Inc.’s initial public offering in 2007. The retroactive responsibility plan obligates all former Visa USA members to indemnify Visa USA, in proportion to their equity interests in Visa USA, for certain litigation losses and expenses, including settlement expenses, for the lawsuits covered by the retrospective responsibility plan. Due to the restrictions that the retrospective responsibility plan imposes on the Company’s Visa, Inc. Class B shares, the Company had not recorded the Class B shares as an asset. The Bank sold 25,702 shares of Visa Class B common stock in the fourth quarter of 2018 and recored a gain of $3.6 million. For equity investments without readily determinable fair values, when an orderly transaction for the identical or similar investment of the same issuer is identified, we use the valuation techniques permitted under ASC 820 Fair Value to evaluate the observed transaction(s) and adjust the fair value of the equity investment. Based on the existing transfer restriction and the uncertainty of the outcome of the Visa litigation mentioned above, the remaining 25,702 Visa Class B shares that the Company owns as of December 31, 2018 are carried at $3.4 million in other assets. ASC 321-10 also provides guidance related to accounting for impairment of equity securities without readily determinable fair values. The qualitative assessment to determine whether impairment exists requires the use of our judgment in certain circumstances. If, after completing the qualitative assessment we conclude an equity investment without a readily determinable fair value is impaired, a loss for the difference between the equity investment’s carrying value and its fair value may be recognized as a reduction to noninterest income in the Consolidated Statements of Operations.

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