Securities (Tables)

3 Months Ended

Mar. 31, 2020

Marketable Securities [Line Items]

Securities

	March 31, 2020
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale (AFS)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential Mortgage Backed Securities ("MBS")	$	30,264	$	1,710	$	—	$	31,974
Residential Collateralized Mortgage Obligations ("CMOs")	131,135		3,774		625		134,284
U.S. Agency	1,285		51		—		1,336
Asset-backed securities issued by Others:
Residential CMOs	360		—		47		313
Student Loan Trust CMOs	18,495		—		873		17,622
Certificates of Deposit Fixed	250		—		—		250
U.S. government obligations	1,495		4		—		1,499
Municipal bonds	26,607		390		112		26,885
Total investment securities available-for-sale	$	209,891	$	5,929	$	1,657	$	214,163
Equity securities carried at fair value through income
CRA investment fund	$	4,768	$	—	$	—	$	4,768
Non-marketable equity securities
Other equity securities	$	209	$	—	$	—	$	209
Total investment securities	$	214,868	$	5,929	$	1,657	$	219,140

In December 2019, the Company reclassified the entire held to maturity ("HTM") investment portfolio, totaling $83.1 million with unrealized holding gains of $810,000 to the AFS investments category. The reclassification resulted in an increase to accumulated other comprehensive income of $587,000 and to deferred tax liabilities of $223,000. The Bank's primary reasons for the reclassification were to better manage interest rate risks and provide additional on-balance sheet liquidity. Based on accounting rules, the Bank will not be able to designate any securities as HTM securities for a period of time. Management determined that it no longer had the positive intent to hold its investment in securities classified as HTM until maturity and does not intend to hold HTM securities in the future. Management judgment is required in determining when circumstances have changed such that management can assert with a greater degree of credibility that it now has the intent and ability to hold debt securities to maturity. The Company's HTM portfolio was primarily comprised of asset-backed securities issued by GSEs and U.S. Agencies.

Amortized cost and fair values of AFS investment securities at December 31, 2019 were as follows:

	December 31, 2019
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale (AFS)
Asset-backed securities issued by GSEs and U.S. Agencies
Residential Mortgage Backed Securities ("MBS")	$	35,351	$	754	$	13	$	36,092
Residential Collateralized Mortgage Obligations ("CMOs")	145,479		1,839		386		146,932
U.S. Agency	9,671		122		60		9,733
Asset-backed securities issued by Others:
Residential CMOs	380		3		12		371
Callable GSE Agency Bonds	2,001		1		—		2,002
Certificates of Deposit Fixed	250		—		—		250
U.S. government obligations	1,490		—		1		1,489
Municipal bonds	11,491		—		173		11,318
Total investment securities available-for-sale	$	206,113	$	2,719	$	645	$	208,187
Equity securities carried at fair value through income
CRA investment fund	$	4,669	$	—	$	—	$	4,669
Non-marketable equity securities
Other equity securities	$	209	$	—	$	—	$	209
Total investment securities	$	210,991	$	2,719	$	645	$	213,065

Available-For-Sale Securities [Member]

Marketable Securities [Line Items]

Schedule of Unrealized Loss on Investments

AFS Securities

Gross unrealized losses and estimated fair value by length of time that individual AFS securities have been in a continuous unrealized loss position at March 31, 2020, and December 31, 2019 were as follows:

March 31, 2020	Less Than 12 Months				More Than 12 Months				Total
(dollars in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Losses
Asset-backed securities issued by GSEs and U.S. Agencies	$	25,549	$	562	$	5,426	$	63	$	30,975	$	625
Asset-backed securities issued by Others	17,621		873		313		47		17,934		920
Municipal bonds	5,964		112		—		—		5,964		112
	$	49,134	$	1,547	$	5,739	$	110	$	54,873	$	1,657

December 31, 2019	Less Than 12 Months				More Than 12 Months				Total
(dollars in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Losses
Asset-backed securities issued by GSEs and U.S. Agencies	$	15,215	$	63	$	39,689	$	336	$	54,904	$	399
U.S. SBA Debentures	—		—		4,744		60		4,744		60
Asset-backed securities issued by Others	—		—		136		12		136		12
Municipal bonds	11,318		173		—		—		11,318		173
U.S. government obligations	1,489		1		—		—		1,489		1
	$	28,022	$	237	$	44,569	$	408	$	72,591	$	645