Note 7 - Securities

The following tables summarize the Bank’s holdings for both securities held-to-maturity and securities available-for-sale as of March 31, 2019 and December 31, 2018 (amounts in thousands):


		March 31, 2019
	Amortized	Gross Unrealized		Fair Value
	Costs	Gains	(Losses)
Held-to-Maturity
US agency obligations	$3,697	$2	$(59)	$3,640

Available-for-Sale
US Treasuries	1,962	-	(69)	1,893
US agency obligations	24,658	6	(784)	23,880
Mortgage-backed securities	11,932	5	(333)	11,604
Municipals	12,375	17	(194)	12,198
Corporates	4,098	-	(176)	3,922
	$55,025	$28	$(1,556)	$53,497

		December 31, 2018
	Amortized	Gross Unrealized		Fair Value
	Costs	Gains	(Losses)
Held-to-Maturity
US agency obligations	$3,700	$3	$(185)	$3,515

Available-for-Sale
US Treasuries	1,961	-	(116)	1,845
US agency obligations	24,701	-	(1,434)	23,267
Mortgage-backed securities	12,390	-	(514)	11,876
Municipals	12,412	3	(406)	12,009
Corporates	4,102	-	(372)	3,730
	$55,566	$3	$(2,842)	$52,727

Note 7 – Securities (continued)

The following tables show the gross unrealized losses and fair value of the Bank’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018 (amounts in thousands):


	Less than 12 months		More than 12 months			Total
	Fair	Unrealized	Fair	Unrealized	Fair		Unrealized
March 31, 2019	Value	Losses	Value	Losses	Value		Losses
Description of securities
Held-to-maturity
US agency obligations	$ -	$ -	$3,640	$59	$3,640		$59

Available-for-sale
US Treasuries	-	-	1,893	69	1,893		69
US agency obligations	-	-	21,504	784	21,504		784
Mortgage-backed securities	-	-	10,617	333	10,617		333
Municipals	-	-	9,994	194	9,994		194
Corporates	-	-	3,922	176	3,922		176
Total	$ -	$ -	$47,930	$1,556	$47,930		$1,556

	Less than 12 months		More than 12 months			Total
	Fair	Unrealized	Fair	Unrealized	Fair		Unrealized
December 31, 2018	Value	Losses	Value	Losses	Value		Losses
Description of securities
Held-to-maturity
US agency obligations	$ -	$ -	$3,515	$185	$3,515		$185

Available-for-sale
US Treasuries	-	-	1,845	116	1,845		116
US agency obligations	-	-	23,267	1,434	23,267		1,434
Mortgage-backed securities	966	20	10,910	494	11,876		514
Municipals	-	-	10,994	406	10,994		406
Corporates	-	-	3,730	372	3,730		372
Total	$966	$20	$50,746	$2,822	$51,712		$2,842

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and may do so more frequently when economic or market concerns 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, (3) the intent of Financial, if any, to sell the security; (4) whether Financial more likely than not will be required to sell the security before recovering its cost; and (5) whether Financial does not expect to recover the security’s entire amortized cost basis (even if Financial does not intend to sell the security).

Note 7 – Securities (continued)

At March 31, 2019, the Company did not consider the unrealized losses as other-than-temporary losses due to the nature of the securities involved. As of March 31, 2019, the Bank owned 53 securities in an unrealized loss position that were being evaluated for other than temporary impairment. Eleven of these securities were S&P rated AAA, 39 were rated AA, two were rated A, and one was rated BBB+. As of March 31, 2019, 32 of these securities were direct obligations of the U.S. government or government sponsored entities, 16 were municipal issues, and five were investments in domestic corporate issued securities.

Based on the analysis performed by management as mandated by the Bank’s investment policy, management believes the default risk to be minimal. Because management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to change in interest rates and other market conditions, no declines currently are deemed to be other-than-temporary.

There were no gross gains on sales of available-for-sale securities during the three-month periods ended March 31, 2019 and 2018. There were no gross losses on sales of available-for-sale securities and no sales of held-to-maturity securities during the three-month periods ended March 31, 2019 and 2018.