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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
Amortized cost and fair values of investment securities at September 30, 2022 and December 31, 2021 are summarized as follows:
September 30, 2022
(dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
AFS Securities
Asset-backed securities issued by GSEs and U.S. Agencies
Residential Mortgage Backed Securities ("MBS")$128,493 $13 $13,770 $114,736 
Residential Collateralized Mortgage Obligations ("CMOs")181,433 13 16,579 164,867 
U.S. Agency14,601 — 2,375 12,226 
Asset-backed securities ("ABSs") issued by Others:
Residential CMOs9,363 — 260 9,103 
Student Loan Trust ABSs50,315 103 1,879 48,539 
Municipal bonds99,846 — 20,982 78,864 
Corporate bonds
3,000 — 391 2,609 
U.S. government obligations36,831 — 3,273 33,558 
Total AFS Securities
$523,882 $129 $59,509 $464,502 
Equity securities carried at fair value through income
CRA investment fund$4,254 $— $— $4,254 
Non-marketable equity securities
Other equity securities$207 $— $— $207 
Total Investment Securities
$528,343 $129 $59,509 $468,963 
December 31, 2021
(dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
AFS Securities
Asset-backed securities issued by GSEs and U.S. Agencies
Residential MBS
$121,125 $1,057 $2,266 $119,916 
Residential CMOs
198,780 710 2,367 197,123 
U.S. Agency14,433 11 140 14,304 
Asset-backed securities issued by Others:
Residential CMOs220 5 4 221 
Student Loan Trust ABSs56,422 438 286 56,574 
Municipal bonds92,556 1,169 884 92,841 
U.S. government obligations16,942 — 82 16,860 
Total AFS Securities
$500,478 $3,390 $6,029 $497,839 
Equity securities carried at fair value through income
CRA investment fund$4,772 $— $— $4,772 
Non-marketable equity securities
Other equity securities$207 $— $— $207 
Total Investment Securities
$505,457 $3,390 $6,029 $502,818 
The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. AFS debt securities, AIR totaled $1.6 million and $1.1 million as of September 30, 2022, and December 31, 2021, respectively. AIR is included in the “accrued interest receivable” line item on the Company’s consolidated balance sheets.
At September 30, 2022 and December 31, 2021, securities with an amortized cost of $55.6 million and $50.9 million were pledged to secure certain customer deposits.
During the quarter ended September 30, 2022, the Company did not sell any securities. During the year ended December 31, 2021, the Company recognized net gains of $0.6 million on the sale of AFS securities with aggregate carrying values of $11.9 million.
Management does not believe that the AFS debt securities in an unrealized loss position as of September 30, 2022 have credit loss impairment. As of September 30, 2022, and December 31, 2021, the gross unrealized loss positions were primarily related to mortgage-backed securities issued by U.S. government agencies or U.S. government sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. The Company also performed credit reviews on municipal bonds issued by States and Political Subdivisions and asset backed securities issued by Student Loan Trust. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell the investment securities that were in an unrealized loss position, and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. Management believes that the securities will either recover in market value or be paid off as agreed.
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, 2022, and December 31, 2021 were as follows:
September 30, 2022Less 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$69,403 $6,302 $220,175 $26,422 $289,578 $32,724 
Asset-backed securities issued by Others5,937 244 149 16 6,086 260 
Student Loan Trust ABSs6,536 1,000 34,823 879 41,359 1,879 
Municipal bonds38,786 8,927 40,078 12,055 78,864 20,982 
Corporate bonds2,609 391 — — 2,609 391 
U.S. government obligations18,656 1,232 14,902 2,041 33,558 3,273 
$141,927 $18,096 $310,127 $41,413 $452,054 $59,509 
December 31, 2021Less 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$205,891 $3,997 $41,327 $776 $247,218 $4,773 
Asset-backed securities issued by Others— — 57 4 57 4 
Student Loan Trust ABSs21,640 281 2,226 5 23,866 286 
Municipal bonds47,314 776 6,696 108 54,010 884 
U.S. government obligations14,860 82 1,999 — 16,859 82 
$289,705 $5,136 $52,305 $893 $342,010 $6,029 
Maturities
The amortized cost and estimated fair value of debt securities at September 30, 2022, and December 31, 2021 by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call premiums or prepayment penalties.
September 30, 2022December 31, 2021
(dollars in thousands)Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
Within one year$35,730 $31,680 $36,859 $36,665 
Over one year through five years137,433 121,856 121,308 120,668 
Over five years through ten years219,912 194,986 191,166 190,158 
After ten years130,807 115,980 151,145 150,348 
Total AFS securities$523,882 $464,502 $500,478 $497,839