Debt Securities Available for Sale

6 Months Ended

Jun. 30, 2018

Debt Securities Available for Sale [Abstract]

Note 6 –Debt Securities Available for Sale

The following tables present by maturity the amortized cost, gross unrealized gains and losses on, and fair value of, securities available for sale as of June 30, 2018 and December 31, 2017:




	June 30, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Mortgage-backed securities:
Due after one year through five years	$	5,210	$	-	$	160	$	5,050
Due after five years through ten years		4,170		-		30		4,140
Due after ten years		119,842		57		5,471		114,428

Municipal obligations:
Due after one year through five years		493		-		-		493
Due after five years through ten years		2,140		-		5		2,135
Due after ten years		1,045		-		-		1,045
	$	132,900	$	57	$	5,666	$	127,291



	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Mortgage-backed securities:
Due after one year through five years	$	3,276	$	3	$	76	$	3,203
Due after five years through ten years		622		-		10		612
Due after ten years		110,156		44		2,222		107,978

Municipal obligations:
Due within one year		2,506		-		4		2,502
	$	116,560	$	47	$	2,312	$	114,295

The unrealized losses, categorized by the length of time of continuous loss position, and fair value of related securities available for sale were as follows:



	Less than 12 Months				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
June 30, 2018
Residential mortgage-backed securities	$	74,704	$	2,228	$	41,934	$	3,433	$	116,638	$	5,661
Municipal obligations		3,180		5		-		-		3,180		5
	$	77,884	$	2,233	$	41,934	$	3,433	$	119,818	$	5,666

December 31, 2017
Residential mortgage-backed securities	$	94,909	$	1,951	$	12,309	$	357	$	107,218	$	2,308
Municipal obligations		2,502		4		-		-		2,502		4
	$	97,411	$	1,955	$	12,309	$	357	$	109,720	$	2,312

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Company intends to sell the security or more likely than not will be required to sell the security before its anticipated recovery. At June 30, 2018 and December 31, 2017, management performed an assessment for possible OTTI of the Company’s residential mortgage-backed securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. The extent of individual analysis applied to each security depended on the size of the Company’s investment, as well as management’s perception of the credit risk associated with each security. Based on the results of the assessment, management believes impairment of these securities, at June 30, 2018 and December 31, 2017, to be temporary.