Investment Securities (Tables)

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of Held-to-maturity Securities Reconciliation

Our investment securities portfolio consists of obligations of state and political subdivisions, corporate bonds, U.S. government agency securities, including residential and commercial mortgage-backed securities (“MBS”\"CMBS") and collateralized mortgage obligations (“CMOs”) issued or guaranteed by Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), or Government National Mortgage Association ("GNMA"), Small Business Administration ("SBA") backed securities, debentures issued by government-sponsored agencies such as FNMA, Federal Farm Credit Bureau, FHLB and FHLMC, as well as privately issued CMOs, as reflected in the table below:



	December 31, 2018									December 31, 2017
	Amortized		Fair		Gross Unrealized					Amortized		Fair		Gross Unrealized
(in thousands)	Cost		Value		Gains		(Losses)			Cost		Value		Gains		(Losses)
Held-to-maturity:
Securities of U.S. government agencies:
MBS pass-through securities issued by FHLMC and FNMA	$	88,606	$	85,804	$	7	$	(2,809	)	$	100,376	$	100,096	$	234	$	(514	)
SBA-backed securities	8,720		8,757		37		—			—		—		—		—
CMOs issued by FNMA	11,447		11,327		—		(120		)	—		—		—		—
CMOs issued by FHLMC	33,583		33,021		8		(570		)	31,010		30,938		2		(74		)
CMOs issued by GNMA	3,739		3,769		30		—			—		—		—		—
Obligations of state and political subdivisions	11,111		11,216		128		(23		)	19,646		19,998		383		(31		)
Total held-to-maturity	157,206		153,894		210		(3,522		)	151,032		151,032		619		(619		)
Available-for-sale:
Securities of U.S. government agencies:
MBS pass-through securities issued by FHLMC and FNMA	95,339		94,467		358		(1,230		)	65,559		65,262		126		(423		)
SBA-backed securities	50,722		50,781		465		(406		)	25,979		25,982		58		(55		)
CMOs issued by FNMA	28,275		28,079		134		(330		)	35,340		35,125		33		(248		)
CMOs issued by FHLMC	145,979		144,836		454		(1,597		)	70,514		69,889		3		(628		)
CMOs issued by GNMA	11,294		11,021		1		(274		)	17,953		17,785		26		(194		)
Debentures of government- sponsored agencies	52,956		53,018		185		(123		)	12,940		12,938		3		(5		)
Privately issued CMOs	295		297		2		—			1,432		1,431		1		(2		)
Obligations of state and political subdivisions	79,046		77,960		134		(1,220		)	98,027		97,491		298		(834		)
Corporate bonds	2,004		2,005		15		(14		)	6,541		6,564		26		(3		)
Total available-for-sale	465,910		462,464		1,748		(5,194		)	334,285		332,467		574		(2,392		)
Total investment securities	$	623,116	$	616,358	$	1,958	$	(8,716	)	$	485,317	$	483,499	$	1,193	$	(3,011	)

Schedule of Available-for-sale Securities



	December 31, 2018									December 31, 2017
	Amortized		Fair		Gross Unrealized					Amortized		Fair		Gross Unrealized
(in thousands)	Cost		Value		Gains		(Losses)			Cost		Value		Gains		(Losses)
Held-to-maturity:
Securities of U.S. government agencies:
MBS pass-through securities issued by FHLMC and FNMA	$	88,606	$	85,804	$	7	$	(2,809	)	$	100,376	$	100,096	$	234	$	(514	)
SBA-backed securities	8,720		8,757		37		—			—		—		—		—
CMOs issued by FNMA	11,447		11,327		—		(120		)	—		—		—		—
CMOs issued by FHLMC	33,583		33,021		8		(570		)	31,010		30,938		2		(74		)
CMOs issued by GNMA	3,739		3,769		30		—			—		—		—		—
Obligations of state and political subdivisions	11,111		11,216		128		(23		)	19,646		19,998		383		(31		)
Total held-to-maturity	157,206		153,894		210		(3,522		)	151,032		151,032		619		(619		)
Available-for-sale:
Securities of U.S. government agencies:
MBS pass-through securities issued by FHLMC and FNMA	95,339		94,467		358		(1,230		)	65,559		65,262		126		(423		)
SBA-backed securities	50,722		50,781		465		(406		)	25,979		25,982		58		(55		)
CMOs issued by FNMA	28,275		28,079		134		(330		)	35,340		35,125		33		(248		)
CMOs issued by FHLMC	145,979		144,836		454		(1,597		)	70,514		69,889		3		(628		)
CMOs issued by GNMA	11,294		11,021		1		(274		)	17,953		17,785		26		(194		)
Debentures of government- sponsored agencies	52,956		53,018		185		(123		)	12,940		12,938		3		(5		)
Privately issued CMOs	295		297		2		—			1,432		1,431		1		(2		)
Obligations of state and political subdivisions	79,046		77,960		134		(1,220		)	98,027		97,491		298		(834		)
Corporate bonds	2,004		2,005		15		(14		)	6,541		6,564		26		(3		)
Total available-for-sale	465,910		462,464		1,748		(5,194		)	334,285		332,467		574		(2,392		)
Total investment securities	$	623,116	$	616,358	$	1,958	$	(8,716	)	$	485,317	$	483,499	$	1,193	$	(3,011	)

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of investment debt securities by contractual maturity at December 31, 2018 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.



	December 31, 2018								December 31, 2017
	Held-to-Maturity				Available-for-Sale				Held-to-Maturity				Available-for-Sale
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	6,194	$	6,182	$	9,863	$	9,795	$	2,151	$	2,172	$	10,268	$	10,272
After one but within five years	5,481		5,492		84,871		84,435		15,577		15,791		71,576		71,237
After five years through ten years	59,231		58,120		252,274		250,055		54,641		54,554		129,723		128,954
After ten years	86,300		84,100		118,902		118,179		78,663		78,515		122,718		122,004
Total	$	157,206	$	153,894	$	465,910	$	462,464	$	151,032	$	151,032	$	334,285	$	332,467

Gain (Loss) on Investments

Sales of investment securities and gross gains and losses are shown in the following table.



(in thousands)	2018			2017
Available-for-sale:
Sales proceeds	$	16,972		$	55,408
Gross realized gains	$	27		$	46
Gross realized losses	$	(106	)	$	(231	)

Schedule of Financial Instruments Owned and Pledged as Collateral

Pledged investment securities are shown in the following table:



(in thousands)	December 31, 2018		December 31, 2017
Pledged to the State of California:
Secure public deposits in compliance with the Local Agency Security Program	$	125,696	$	107,829
Collateral for trust deposits	734		761
Total investment securities pledged to the State of California	$	126,430	$	108,590
Collateral for Wealth Management and Trust Services ("WMTS') checking account	$	2,000	$	2,026

Schedule of Unrealized Loss on Investments

Those securities are summarized and classified according to the duration of the loss period in the tables below:



December 31, 2018	< 12 continuous months					≥ 12 continuous months					Total securities in a loss position
(in thousands)	Fair value		Unrealized loss			Fair value		Unrealized loss			Fair value		Unrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC and FNMA	$	198	$	(9	)	$	83,990	$	(2,800	)	$	84,188	$	(2,809	)
CMOs issued by FNMA	—		—			11,327		(120		)	11,327		(120		)
CMOs issued by FHLMC	2,880		(3		)	28,171		(567		)	31,051		(570		)
Obligations of state and political subdivisions	—		—			3,565		(23		)	3,565		(23		)
Total held-to-maturity	3,078		(12		)	127,053		(3,510		)	130,131		(3,522		)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA	19,971		(128		)	50,077		(1,102		)	70,048		(1,230		)
SBA-backed securities	13,175		(122		)	20,123		(284		)	33,298		(406		)
CMOs issued by FNMA	2,345		(8		)	16,138		(322		)	18,483		(330		)
CMOs issued by FHLMC	24,094		(330		)	74,243		(1,267		)	98,337		(1,597		)
CMOs issued by GNMA	1,666		(7		)	9,112		(267		)	10,778		(274		)
Debentures of government-sponsored agencies	4,992		(8		)	11,349		(115		)	16,341		(123		)
Obligations of state and political subdivisions	15,290		(54		)	52,804		(1,166		)	68,094		(1,220		)
Corporate bonds	—		—			1,004		(14		)	1,004		(14		)
Privately issued CMO's											—		—
Total available-for-sale	81,533		(657		)	234,850		(4,537		)	316,383		(5,194		)
Total temporarily impaired securities	$	84,611	$	(669	)	$	361,903	$	(8,047	)	$	446,514	$	(8,716	)



December 31, 2017	< 12 continuous months					> 12 continuous months					Total securities in a loss position
(in thousands)	Fair value		Unrealized loss			Fair value		Unrealized loss			Fair value		Unrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC and FNMA	$	16,337	$	(143	)	$	46,845	$	(371	)	$	63,182	$	(514	)
CMOs issued by FHLMC	11,066		(31		)	13,824		(43		)	24,890		(74		)
Obligations of state and political subdivisions	3,648		(31		)	—		—			3,648		(31		)
Total held-to-maturity	31,051		(205		)	60,669		(414		)	91,720		(619		)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA	32,189		(121		)	15,325		(302		)	47,514		(423		)
SBA-backed securities	11,028		(53		)	165		(2		)	11,193		(55		)
CMOs issued by FNMA	26,401		(171		)	5,440		(77		)	31,841		(248		)
CMOs issued by FHLMC	69,276		(628		)	—		—			69,276		(628		)
CMOs issued by GNMA	14,230		(194		)	—		—			14,230		(194		)
Debentures of government- sponsored agencies	2,984		(5		)	—		—			2,984		(5		)
Obligations of state and political subdivisions	52,197		(288		)	19,548		(546		)	71,745		(834		)
Corporate bonds	3,060		(3		)						3,060		(3		)
Privately issued CMO's	1,310		(2		)	—		—			1,310		(2		)
Total available-for-sale	212,675		(1,465		)	40,478		(927		)	253,153		(2,392		)
Total temporarily impaired securities	$	243,726	$	(1,670	)	$	101,147	$	(1,341	)	$	344,873	$	(3,011	)