SECURITIES (Tables)

9 Months Ended

Sep. 30, 2020

Amortized cost and fair values of AFS investment securities at September 30, 2020 were as follows:


	September 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")	$	31,304	$	1,888	$	16	$	33,176
Residential Collateralized Mortgage Obligations ("CMOs")	121,422		3,274		171		124,525
U.S. Agency	1,180		77		—		1,257
Asset-backed securities ("ABSs") issued by Others:
Residential CMOs	307		3		11		299
Student Loan Trust ABSs	30,638		129		357		30,410


U.S. government obligations	1,500		—		—		1,500
Municipal bonds	36,804		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 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 ("ABSs") 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 September 30, 2020, and December 31, 2019 were as follows:


September 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	$	26,359	$	180	$	697	$	7	$	27,056	$	187


Asset-backed securities issued by Others	18,321		357		93		11		18,414		368


	$	44,680	$	537	$	790	$	18	$	45,470	$	555


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