
	September 30, 2020 (1)
(amounts in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale debt securities:
Asset-backed securities	$	374,151	$	1,404	$	(174)	$	375,381
U.S. government agencies securities	40,000		8		—		40,008
Agency-guaranteed residential mortgage-backed securities	59,013		2,066		—		61,079

Agency-guaranteed collateralized mortgage obligations	153,088		771		(80)		153,779
State and political subdivision debt securities (2)	17,391		868		—		18,259
Private label collateralized mortgage obligations	118,979		8		—		118,987
Corporate notes (3)	344,344		19,632		(104)		363,872

Available for sale debt securities	$	1,106,966	$	24,757	$	(358)	1,131,365

Equity securities (5)							2,466
Total investment securities, at fair value							$	1,133,831


	December 31, 2019
(amounts in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale debt securities:
Agency-guaranteed residential mortgage-backed securities	$	273,252	$	5,069	$	—	$	278,321

Corporate notes (3)	284,639		14,238		—		298,877
Available for sale debt securities	$	557,891	$	19,307	$	—	577,198
Interest-only GNMA securities (4)							16,272
Equity securities (5)							2,406
Total investment securities, at fair value							$	595,876

(1)Accrued interest on AFS debt securities totaled $4.2 million at September 30, 2020 and is included in accrued interest receivable on the consolidated balance sheet.

On June 28, 2019, Customers obtained ownership of certain interest-only GNMA securities that served as the primary collateral for loans made to one commercial mortgage warehouse customer through a Uniform Commercial Code private sale transaction. In connection with the acquisition of the interest-only GNMA securities, Customers recognized a pre-tax loss of $7.5 million for the three months ended June 30, 2019 for the shortfall in the fair value of the interest-only GNMA securities compared to its credit exposure to this commercial mortgage warehouse customer. Upon acquisition, Customers elected the fair value option for these interest-only GNMA securities. These securities were sold for $15.4 million with a realized gain of $1.0 million during the three months ended September 30, 2020.

During the three and nine months ended September 30, 2020, Customers recognized unrealized gains of $0.2 million and $0.1 million, respectively, on its equity securities. During the three and nine months ended September 30, 2019, Customers recognized unrealized gains of $1.3 million and $1.0 million, respectively, on its equity securities. These unrealized gains and losses are reported as unrealized gain (loss) on investment securities within non-interest income on the consolidated statements of income.

Proceeds from the sale of available for sale debt securities were $268.6 million and $377.8 million for the three and nine months ended September 30, 2020. Realized gains from the sale of available for sale debt securities were $11.7 million and $20.0 million for the three and nine months ended September 30, 2020, respectively. Proceeds from the sale of available for sale debt securities were $97.6 million for the three and nine months ended September 30, 2019. Realized gains from the sale of available for sale debt securities were $1.0 million for the three and nine months ended September 30, 2019. These gains (losses) were determined using the specific identification method and were reported as gain (loss) on sale of investment securities within non-interest income on the consolidated statements of income.

The following table shows debt securities by stated maturity. Debt securities backed by mortgages and other assets securities have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date:


	September 30, 2020
(amounts in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	8,000	$	8,000
Due after one year through five years	83,209		84,275
Due after five years through ten years	274,135		292,605
Due after ten years	36,391		37,259
Asset-backed securities	374,151		375,381
Agency-guaranteed residential mortgage-backed securities	59,013		61,079
Agency-guaranteed collateralized mortgage obligations	153,088		153,779
Private label collateralized mortgage obligations	118,979		118,987


Total debt securities	$	1,106,966	$	1,131,365

Gross unrealized losses and fair value of Customers' available for sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020 were as follows:



	September 30, 2020
	Less Than 12 Months				12 Months or More				Total
(amounts in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale debt securities:
Asset-backed securities	$	107,610	$	(174)	$	—	$	—	$	107,610	$	(174)
Agency-guaranteed residential mortgage-backed securities	19,019		(80)		—		—		19,019		(80)

Corporate notes	40,409		(104)		—		—		40,409		(104)

Total	$	167,038	$	(358)	$	—	$	—	$	167,038	$	(358)

At September 30, 2020, there were fifteen available for sale debt securities with unrealized losses in the less-than-twelve-month category and no available for sale debt securities with unrealized losses in the twelve-month-or-more category. The unrealized losses were principally due to changes in market interest rates that resulted in a negative impact on the respective securities' fair value. All amounts related to these securities are expected to be recovered when market prices recover or at maturity. Customers does not intend to sell any of the 15 securities, and it is not more likely than not that Customers will be required to sell any of the 15 securities before recovery of the amortized cost basis. At December 31, 2019, there were no available for sale debt securities in an unrealized loss position.

At September 30, 2020 and December 31, 2019, Customers Bank had pledged investment securities aggregating $20.1 million and $20.4 million in fair value, respectively, as collateral against its borrowings primarily with an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities.

At September 30, 2020 and December 31, 2019, no securities holding of any one issuer, other than the U.S. Government and its agencies, amounted to greater than 10% of shareholders' equity.