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SECURITIES
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Securities SECURITIES
Amortized cost and fair values of AFS investment securities at September 30, 2020 were as follows:
September 30, 2020
(dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Securities available-for-sale ("AFS")
Asset-backed securities issued by GSEs and U.S. Agencies
Residential Mortgage Backed Securities ("MBS")$31,304 $1,888 $16 $33,176 
Residential Collateralized Mortgage Obligations ("CMOs")121,422 3,274 171 124,525 
U.S. Agency1,180 77 — 1,257 
Asset-backed securities ("ABSs") issued by Others:
Residential CMOs307 3 11 299 
Student Loan Trust ABSs30,638 129 357 30,410 
U.S. government obligations1,500 — — 1,500 
Municipal bonds36,804 1,649 — 38,453 
Total investment securities available-for-sale$223,155 $7,020 $555 $229,620 
Equity securities carried at fair value through income
CRA investment fund$4,851 $— $— $4,851 
Non-marketable equity securities
Other equity securities$209 $— $— $209 
Total investment securities$228,215 $7,020 $555 $234,680 

In December 2019, Management determined that it no longer had the positive intent to hold its investment in securities classified as held to maturity ("HTM") until maturity and does not intend to hold HTM securities in the future. The Company reclassified the entire 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 CostGross Unrealized GainsGross Unrealized LossesEstimated 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. Agency9,671 122 60 9,733 
Asset-backed securities ("ABSs") issued by Others:
Residential CMOs380 3 12 371 
Callable GSE Agency Bonds2,001 1 — 2,002 
Certificates of Deposit Fixed250 — — 250 
U.S. government obligations1,490 — 1 1,489 
Municipal bonds11,491 — 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 
At September 30, 2020 and December 31, 2019 securities with an amortized cost of $46.5 million and $47.4 million were pledged to secure certain customer deposits. At September 30, 2020, and December 31, 2019, no securities were pledged as collateral for advances from the FHLB of Atlanta.
During the quarter ended September 30, 2020, the Company recognized net gains of $229,000 on the sale of three AFS securities with aggregate carrying values of $6.5 million. During the year ended December 31, 2019, the Company recognized net gains of $226,000 on the sale of 20 AFS securities with aggregate carrying values of $31.6 million.
The Company’s investment portfolio includes securities that are in an unrealized loss position as of September 30, 2020, the details of which are included in the following table. Although these securities, if sold at September 30, 2020 would result in a pretax loss of $555,000, the Company has no intent to sell the applicable securities at such fair values, and maintains the ability to hold these securities until all principal has been recovered. It is more likely than not that the Company will not sell any securities at a loss for liquidity purposes. Declines in the fair values of these securities are due to general market conditions which reflect prospects for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company’s ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated. As of September 30, 2020, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe it will sustain any material realized losses as a result of the current temporary decline in fair value. No charges related to other-than-temporary impairment were made during the three and nine months ended September 30, 2020 and the year ended December 31, 2019.
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 September 30, 2020, and December 31, 2019 were as follows:
September 30, 2020Less Than 12 MonthsMore Than 12 MonthsTotal
(dollars in thousands)Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Losses
Asset-backed securities issued by GSEs and U.S. Agencies$26,359 $180 $697 $7 $27,056 $187 
Asset-backed securities issued by Others18,321 357 93 11 18,414 368 
$44,680 $537 $790 $18 $45,470 $555 

December 31, 2019Less Than 12 MonthsMore Than 12 MonthsTotal
(dollars in thousands)Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized 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 bonds11,318 173 — — 11,318 173 
U.S. government obligations1,489 1 — — 1,489 1 
$28,022 $237 $44,569 $408 $72,591 $645 
AFS asset-backed securities issued by GSEs are guaranteed by the issuer and U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government. At September 30, 2020 and December 31, 2019, total unrealized losses were $555,000 and $645,000 of the portfolio amortized cost of $223.2 million and $206.1 million, respectively.
At September 30, 2020 and December 31, 2019, AFS asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had amortized cost of $27.2 million and $56.8 million, respectively, with the unrealized losses of $187,000 and $399,000, average lives of 8.49 years and 4.67 years and average durations of 8.00 years and 4.22 years, respectively. At September 30, 2020, AFS asset-backed securities issued by student loan trust and others with unrealized losses had amortized cost of $18.8 million with unrealized losses of $368,000, an average life of 6.53 years and an average duration of 6.21 years. The Company's amortized cost investment of $30.6 million in student loan trusts are 97% U.S. government guaranteed. At September 30, 2020, AFS municipal bonds issued by states, political subdivisions, or agencies had no unrealized losses, and at December 31, 2019, AFS municipal bonds issued by states, political subdivisions, or agencies with unrealized losses had amortized cost of $11.5 million, with unrealized losses of $173,000, an average life of 9.51 years and an average duration of 8.18 years. Management believes that the securities will either recover in market value or be paid off as agreed.