Securities (Tables)

6 Months Ended

Jun. 30, 2020

Marketable Securities [Line Items]

Securities

	June 30, 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")	$	29,084	$	1,860	$	13	$	30,931
Residential Collateralized Mortgage Obligations ("CMOs")	128,466		3,643		176		131,933
U.S. Agency	1,243		68		—		1,311
Asset-backed securities issued by Others:
Residential CMOs	336		—		16		320
Student Loan Trust CMOs	25,684		28		682		25,030
Certificates of Deposit Fixed	250		—		—		250
U.S. government obligations	1,499		—		1		1,498
Municipal bonds	42,310		1,418		19		43,709
Total investment securities available-for-sale	$	228,872	$	7,017	$	907	$	234,982
Equity securities carried at fair value through income
CRA investment fund	$	4,831	$	—	$	—	$	4,831
Non-marketable equity securities
Other equity securities	$	209	$	—	$	—	$	209
Total investment securities	$	233,912	$	7,017	$	907	$	240,022

In December 2019, 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. 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. The Company's HTM portfolio was primarily composed 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

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 June 30, 2020, and December 31, 2019 were as follows:

June 30, 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	$	33,799	$	172	$	3,081	$	17	$	36,880	$	189
Asset-backed securities issued by Others	17,338		682		319		16		17,657		698
Municipal bonds	8,205		19		—		—		8,205		19
U.S. government obligations	1,499		1		—		—		1,499		1
	$	60,841	$	874	$	3,400	$	33	$	64,241	$	907

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