Securities Available for Sale
 3 Months Ended
Mar. 31, 2018
Securities Available for Sale [Abstract]  
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 2— Securities Available for Sale

The amortized cost and fair values of the Company's investment in securities available for sale follow:

  
March 31, 2018
 
  
Amortized cost
  
Gross unrealized gains
  
Gross unrealized losses
  
Fair value
 
  
(In Thousands)
 
Mortgage-backed securities
 
$
53,198
  
$
157
  
$
(772
)
 
$
52,583
 
Collateralized mortgage obligations:
                
Government sponsored enterprise issued
  
58,158
   
1
   
(1,489
)
  
56,670
 
Mortgage-related securities
  
111,356
   
158
   
(2,261
)
  
109,253
 
                 
Government sponsored enterprise bonds
  
500
   
-
   
(2
)
  
498
 
Municipal securities
  
62,312
   
674
   
(203
)
  
62,783
 
Other debt securities
  
15,004
   
-
   
(1,290
)
  
13,714
 
Debt securities
  
77,816
   
674
   
(1,495
)
  
76,995
 
Certificates of deposit
  
735
   
-
   
-
   
735
 
  
$
189,907
  
$
832
  
$
(3,756
)
 
$
186,983
 


  
December 31, 2017
 
  
Amortized cost
  
Gross unrealized gains
  
Gross unrealized losses
  
Fair value
 
  
(In Thousands)
 
Mortgage-backed securities
 
$
57,351
  
$
324
  
$
(240
)
 
$
57,435
 
Collateralized mortgage obligations:
                
Government sponsored enterprise issued
  
61,313
   
3
   
(816
)
  
60,500
 
Mortgage-related securities
  
118,664
   
327
   
(1,056
)
  
117,935
 
                 
Government sponsored enterprise bonds
  
2,500
   
-
   
(3
)
  
2,497
 
Municipal securities
  
62,516
   
1,334
   
(81
)
  
63,769
 
Other debt securities
  
15,005
   
12
   
(492
)
  
14,525
 
Debt securities
  
80,021
   
1,346
   
(576
)
  
80,791
 
Certificates of deposit
  
980
   
1
   
-
   
981
 
  
$
199,665
  
$
1,674
  
$
(1,632
)
 
$
199,707
 


 
The Company's mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. At March 31, 2018, $2.3 million of the Company's mortgage related securities were pledged as collateral to secure mortgage banking related activities. At December 31, 2017, $2.3 million of the Company's mortgage related securities were pledged as collateral to secure mortgage banking related activities.

The amortized cost and fair values of investment securities by contractual maturity at March 31, 2018 are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

  
Amortized
Cost
  
Fair
Value
 
  
(In Thousands)
 
Debt and other securities
      
Due within one year
 
$
8,202
  
$
8,178
 
Due after one year through five years
  
24,745
   
24,628
 
Due after five years through ten years
  
33,943
   
34,456
 
Due after ten years
  
11,661
   
10,468
 
Mortgage-related securities
  
111,356
   
109,253
 
  
$
189,907
  
$
186,983
 

Gross unrealized losses on securities available for sale and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows:

  
March 31, 2018
 
  
Less than 12 months
  
12 months or longer
  
Total
 
  
Fair value
  
Unrealized loss
  
Fair value
  
Unrealized loss
  
Fair value
  
Unrealized loss
 
  
(In Thousands)
 
Mortgage-backed securities
 
$
40,078
  
$
(595
)
 
$
4,180
  
$
(177
)
 
$
44,258
  
$
(772
)
Collateralized mortgage obligations:
                        
  Government sponsored enterprise issued
  
35,746
   
(780
)
  
20,319
   
(709
)
  
56,065
   
(1,489
)
Government sponsored enterprise bonds
  
498
   
(2
)
  
-
   
-
   
498
   
(2
)
Municipal securities
  
28,006
   
(201
)
  
100
   
(2
)
  
28,106
   
(203
)
Other debt securities
  
4,975
   
(29
)
  
8,739
   
(1,261
)
  
13,714
   
(1,290
)
Certificates of deposit
  
-
   
-
   
-
   
-
   
-
   
-
 
  
$
109,303
  
$
(1,607
)
 
$
33,338
  
$
(2,149
)
 
$
142,641
  
$
(3,756
)


  
December 31, 2017
 
  
Less than 12 months
  
12 months or longer
  
Total
 
  
Fair value
  
Unrealized loss
  
Fair value
  
Unrealized loss
  
Fair value
  
Unrealized loss
 
  
(In Thousands)
 
Mortgage-backed securities
 
$
35,136
  
$
(143
)
 
$
4,464
  
$
(97
)
 
$
39,600
  
$
(240
)
Collateralized mortgage obligations:
                        
Government sponsored enterprise issued
  
37,949
   
(348
)
  
21,651
   
(468
)
  
59,600
   
(816
)
Government sponsored enterprise bonds
  
2,497
   
(3
)
  
-
   
-
   
2,497
   
(3
)
Municipal securities
  
17,096
   
(80
)
  
100
   
(1
)
  
17,196
   
(81
)
Other debt securities
  
-
   
-
   
9,508
   
(492
)
  
9,508
   
(492
)
Certificates of deposit
  
-
   
-
   
-
   
-
   
-
   
-
 
  
$
92,678
  
$
(574
)
 
$
35,723
  
$
(1,058
)
 
$
128,401
  
$
(1,632
)

The Company reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. In evaluating whether a security's decline in market value is other-than-temporary, management considers the length of time and extent to which the fair value has been less than cost, the financial condition of the issuer and the underlying obligors, quality of credit enhancements, volatility of the fair value of the security, the expected recovery period of the security and ratings agency evaluations. In addition, the Company may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral.

 
The following table presents the change in other-than-temporary credit related impairment charges on securities available for sale for which a portion of the other-than-temporary impairments related to other factors was recognized in other comprehensive loss.

  
(In Thousands)
 
Credit-related impairments on securities as of December 31, 2016
 
$
94
 
Credit-related impairments related to securities for which an other- than-temporary impairment was not previously recognized
  
-
 
Credit-related impairments on securities as of December 31, 2017
  
94
 
Credit-related impairments related to securities for which an other- than-temporary impairment was not previously recognized
  
-
 
Credit-related impairments on securities as of March 31, 2018
 
$
94
 

As of March 31, 2018, the Company held one municipal security that had previously been deemed to be other-than-temporarily impaired. The security was issued by a tax incremental district in a municipality located in Wisconsin. During the year ended December 31, 2012, the Company received audited financial statements with respect to the municipal issuer that called into question the ability of the underlying taxing district that issued the security to operate as a going concern. During the year ended December 31, 2012, the Company's analysis of this security resulted in $77,000 in credit losses charged to earnings with respect to this municipal security. An additional $17,000 credit loss was charged to earnings during the year ended December 31, 2014 with respect to this security as a sale occurred at a discounted price. As of March 31, 2018, this security had an amortized cost of $116,000 and total life-to-date impairment of $94,000.

As of March 31, 2018, the Company had five mortgage-backed securities, 14 government sponsored enterprise issued securities, one municipal bond security, and one corporate debt security which had been in an unrealized loss position for twelve months or longer and represents a loss of 2.6% of the aggregate amortized cost. These securities were determined not to be other-than-temporarily impaired as of March 31, 2018. The Company has determined that the decline in fair value of these securities is primarily attributable to an increase in market interest rates compared to the stated rates on these securities and is not attributable to credit deterioration. As the Company does not intend to sell nor is it more likely than not that it will be required to sell these securities before recovery of the amortized cost basis, these securities are not considered other-than-temporarily impaired.

Deterioration of general economic market conditions could result in the recognition of future other than temporary impairment losses within the investment portfolio and such amounts could be material to our consolidated financial statements.

During the three months ended March 31, 2018 and March 31, 2017, there were no sales of securities.