NOTE 3: SECURITIES

The following table provides a summary of the Company’s securities AFS portfolio as of:

	Amortized		Gross Unrealized					Estimated
(dollars in thousands)	Cost		Gains		Losses			Fair Value
September 30, 2017:
US Treasury securities	$	499	$	—	$	(4	)	$	495
Agency mortgage-backed securities		436,415		497		(4,464	)		432,448
Beneficial interests in FHLMC securitization		38,975		1,756		(2,172	)		38,559
Total	$	475,889	$	2,253	$	(6,640	)	$	471,502

December 31, 2016:
US Treasury securities	$	300	$	—	$	(3	)	$	297
Agency mortgage-backed securities		476,163		160		(7,414	)		468,909
Beneficial interests in FHLMC securitization		42,028		711		(2,367	)		40,372
Total	$	518,491	$	871	$	(9,784	)	$	509,578

The US Treasury securities are pledged as collateral to the State of California to meet regulatory requirements related to the Bank’s trust operations.

The tables below indicate, as of September 30, 2017 and December 31, 2016, the gross unrealized losses and fair values of our investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Securities with Unrealized Loss at September 30, 2017
	Less than 12 months					12 months or more					Total
(dollars in thousands)	Fair Value			Unrealized Loss		Fair Value			Unrealized Loss		Fair Value		Unrealized Loss
US Treasury securities	$	495	$	(4	)	$	—	$	—		$	495	$	(4	)
Agency mortgage backed securities		287,342		(2,670	)		58,044		(1,794	)		345,386		(4,464	)
Beneficial interests in FHLMC securitization		—		—			9,347		(2,172	)		9,347		(2,172	)
Total temporarily impaired securities	$	287,837	$	(2,674	)	$	67,391	$	(3,966	)	$	355,228	$	(6,640	)

	Securities with Unrealized Loss at December 31, 2016
	Less than 12 months					12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
US Treasury securities		297		(3	)		—		—		297		(3	)
Agency mortgage backed securities		445,591		(7,414	)		—		—		445,591		(7,414	)
Beneficial interests in FHLMC securitization		18,636		(2,367	)		—		—		18,636		(2,367	)
Total temporarily impaired securities	$	464,524	$	(9,784	)	$	—	$	—	$	464,524	$	(9,784	)

Unrealized losses in agency mortgage backed securities and beneficial interests in FHLMC securitizations have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in discount rates and assumptions regarding future interest rates. The fair value is expected to recover as the bonds approach maturity.

The scheduled maturities of securities AFS and the related weighted average yields were as follows as of September 30, 2017:

(dollars in thousands)	Less than 1 Year			1 Through 5 years			5 Through 10 Years			After 10 Years			Total
Amortized Cost:
US Treasury securities	$	—		$	499		$	—		$	—		$	499
Weighted average yield		—	%		1.03	%		—	%		—	%		1.03	%

Estimated Fair Value:
US Treasury Securities	$	—		$	495		$	—		$	—		$	495

Agency mortgage backed securities and beneficial interests in FHLMC securitizations are excluded from the above table because such securities are not due at a single maturity date. The weighted average yield of the agency mortgage backed securities and beneficial interests as of September 30, 2017 was 2.54%.