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Securities
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Securities SECURITIES
Amortized cost and fair values of investment securities at December 31, 2020 are summarized as follows:
December 31, 2020
(dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
AFS Securities
Asset-backed securities issued by GSEs and U.S. Agencies
Residential Mortgage Backed Securities ("MBS")
$33,248 $1,735 $30 $34,953 
Residential Collateralized Mortgage Obligations ("CMOs")
125,564 2,180 297 127,447 
Asset-backed securities ("ABSs") issued by Others:
Residential CMOs
292 5 9 288 
Student Loan Trust ABSs37,141 386 88 37,439 
U.S. government obligations
1,500 — — 1,500 
Municipal bonds
42,268 2,210 — 44,478 
Total AFS Securities$240,013 $6,516 $424 $246,105 
Equity securities carried at fair value through income
CRA investment fund$4,855 $— $— $4,855 
Non-marketable equity securities
Other equity securities$207 $— $— $207 
Total Investment Securities$245,075 $6,516 $424 $251,167 
Amortized cost and fair values of investment securities at December 31, 2019 are summarized as follows:
December 31, 2019
(dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
AFS Securities
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 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 AFS Securities$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 
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 HTM investment portfolio, totaling $83.1 million with unrealized holding gains of $0.8 million to the AFS investments category. The reclassification resulted in an increase to accumulated other comprehensive income of $0.6 million and to deferred tax liabilities of $0.2 million. 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.
At December 31, 2020, and December 31, 2019 securities with an amortized cost of $48.2 million and $47.4 million were pledged to secure certain customer deposits. At December 31, 2020, and December 31, 2019, no securities were pledged as collateral for advances from the FHLB of Atlanta.
During the year ended December 31, 2020, the Company recognized net gains of $1.4 million on the sale of 42 AFS securities with aggregate carrying values of $62.5 million. During the year ended December 31, 2019, the Company recognized net gains of $0.2 million 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 December 31, 2020, the details of which are included in the following table. Although these securities, if sold at December 31, 2020 would result in a pretax loss of $0.4 million, the Company has no intent to sell the applicable securities at such fair values, and maintains the Company has 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 can be traced to general market conditions which reflect the prospect 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 December 31, 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 for the years ended December 31, 2020 and December 31, 2019.
AFS Securities
Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2020 and 2019 were as follows:
December 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
$32,281 $320 $670 $7 $32,951 $327 
Asset-backed securities issued by Others
— — 87 9 87 9 
Student Loan Trust ABSs12,511 88 — — 12,511 88 
$44,792 $408 $757 $16 $45,549 $424 

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 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 AFS U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government. At December 31, 2020, and 2019 total unrealized losses on the portfolio were $0.4 million and $0.6 million of the portfolio amortized cost of $240.0 million and $206.1 million, respectively.
At December 31, 2020 and 2019, AFS asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had amortized cost of $33.3 million and $56.8 million, respectively, with the unrealized losses of $0.3 million and $0.4 million, respectively. At December 31, 2020, AFS asset-backed securities issued by student loan trust and others with unrealized losses had amortized cost of $12.6 million with unrealized losses of $0.1 million. The Company's amortized cost investment of $37.1 million in student loan trusts are 97% U.S. government guaranteed. At December 31, 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 $0.2 million. Management believes that the securities will either recover in market value or be paid off as agreed.
Maturities
The amortized cost and estimated fair value of debt securities at December 31, 2020 by contractual maturity, are shown below. The Company has allocated the AFS securities into the four maturity groups listed below using the expected average life of the individual securities based on statistics provided by industry sources. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
December 31, 2020Available for Sale
(dollars in thousands)
Amortized Cost
Estimated Fair Value
Within one year
$36,165 $37,084 
Over one year through five years
60,669 62,209 
Over five years through ten years
67,158 68,862 
After ten years
76,021 77,950 
Total AFS securities$240,013 $246,105