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Investment Securities
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
Amortized cost and fair values of investment securities at December 31, 2022 and December 31, 2021 are as follows:
December 31, 2022
(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")$126,861 $12 $13,203 $113,670 
Residential collateralized mortgage obligations ("CMOs")175,905 8 16,500 159,413 
U.S. Agency14,658 — 2,302 12,356 
Asset-backed securities ("ABSs") issued by Others:
Residential CMOs12,593 13 400 12,206 
Student loan trust ABSs49,566 39 2,293 47,312 
Municipal bonds99,766 — 20,148 79,618 
Corporate bonds4,863 — 459 4,404 
U.S. government obligations36,813 1 3,047 33,767 
Total AFS Securities$521,025 $73 $58,352 $462,746 
Equity securities carried at fair value through income
CRA investment fund$4,286 $— $— $4,286 
Non-marketable equity securities
Other equity securities$207 $— $— $207 
Total Investment Securities$525,518 $73 $58,352 $467,239 
December 31, 2021
(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 MBS$121,125 $1,057 $2,266 $119,916 
Residential CMOs198,780 710 2,367 197,123 
U.S. Agency

14,433 

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 $1.8 million and $1.1 million as of December 31, 2022, and December 31, 2021, respectively. AIR is included in the “accrued interest receivable” line item on the Company’s consolidated balance sheets.
At December 31, 2022, and December 31, 2021 securities with an amortized cost of $56.4 million and $50.9 million were pledged to secure certain customer deposits.
During the year ended December 31, 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 December 31, 2022 have credit loss impairment. As of December 31, 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, asset backed securities issued by Student Loan Trust, and corporate bonds issued by the Insured Depositories. 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 the individual AFS securities have been in a continuous unrealized loss position at December 31, 2022 and 2021 were as follows:
December 31, 2022

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

$24,688 

$1,493 

$259,127 

$30,512 

$283,815 

$32,005 
Residential CMOs

7,469 

381 

138 

19 

7,607 

400 
Student Loan Trust ABSs

1,950 

1 

42,170 

2,292 

44,120 

2,293 
Municipal bonds

6,695 

796 

72,923 

19,352 

79,618 

20,148 
Corporate bonds

4,404 

459 

— 

— 

4,404 

459 
U.S. government obligations

18,764 

1,137 

13,041 

1,910 

31,805 

3,047 


$63,970 

$4,267 

$387,399 

$54,085 

$451,369 

$58,352 
December 31, 2021

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

$205,891 

$3,997 

$41,327 

$776 

$247,218 

$4,773 
Residential CMOs

— 

— 

57 

4 

57 

4 
Student Loan Trust ABSs

21,640 

281 

2,226 

5 

23,866 

286 
Municipal bonds

47,314 

776 

6,696 

108 

54,010 

884 
U.S. government obligations

14,860 

82 

1,999 

— 

16,859 

82 


$289,705 

$5,136 

$52,305 

$893 

$342,010 

$6,029 
There were 296 available-for-sale securities in an unrealized loss position at December 31, 2022.
Maturities
The amortized cost and estimated fair value of debt securities at December 31, 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.

December 31, 2022December 31, 2021
(dollars in thousands)
Amortized Cost
Estimated Fair Value
Amortized Cost
Estimated Fair Value
Within one year
$35,441 $31,477 $36,859 $36,665 
Over one year through five years
136,449 121,186 121,308 120,668 
Over five years through ten years
228,997 203,383 191,166 190,158 
After ten years
120,138 106,700 151,145 150,348 
Total AFS securities
$521,025 $462,746 $500,478 $497,839