XML 10 R20.htm IDEA: XBRL DOCUMENT
v3.19.3

Investment Securities - (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
Summary of Held-to-Maturity Investments | Our investment securities portfolio consists of obligations of state and political subdivisions, U.S. corporations, U.S. federal government agencies such as Government National Mortgage Association ("GNMA") and Small Business Administration ("SBA"), U.S. government-sponsored enterprise securities ("GSEs"), such as Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), Federal Farm Credit Banks Funding Corporation and FHLB. We also invest in residential and commercial mortgage-backed securities (“MBS”/"CMBS") and collateralized mortgage obligations (“CMOs”) issued or guaranteed by the GSEs, and privately issued CMOs, as reflected in the following table:
| September 30, 2019 |  | December 31, 2018
| 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-sponsored enterprises: |  |  |  |  |  |  |  |  |
MBS pass-through securities issued by FHLMC and FNMA | $ | 80,166 |  | $ | 81,308 |  | $ | 1,357 |  | $ | (215 | ) |  | $ | 88,606 |  | $ | 85,804 |  | $ | 7 |  | $ | (2,809 | )
SBA-backed securities | 8,001 |  | 8,360 |  | 359 |  | — |  |  | 8,720 |  | 8,757 |  | 37 |  | — |
CMOs issued by FNMA | 10,679 |  | 10,981 |  | 302 |  | — |  |  | 11,447 |  | 11,327 |  | — |  | (120 | )
CMOs issued by FHLMC | 32,568 |  | 33,524 |  | 966 |  | (10 | ) |  | 33,583 |  | 33,021 |  | 8 |  | (570 | )
CMOs issued by GNMA | 3,757 |  | 3,810 |  | 53 |  | — |  |  | 3,739 |  | 3,769 |  | 30 |  | — |
Obligations of state and political subdivisions | 7,042 |  | 7,135 |  | 93 |  | — |  |  | 11,111 |  | 11,216 |  | 128 |  | (23 | )
Total held-to-maturity | 142,213 |  | 145,118 |  | 3,130 |  | (225 | ) |  | 157,206 |  | 153,894 |  | 210 |  | (3,522 | )
Available-for-sale: |  |  |  |  |  |  |  |  |
Securities of U.S. government-sponsored enterprises: |  |  |  |  |  |  |  |  |
MBS pass-through securities issued by FHLMC and FNMA | 62,654 |  | 64,290 |  | 1,683 |  | (47 | ) |  | 95,339 |  | 94,467 |  | 358 |  | (1,230 | )
SBA-backed securities | 36,014 |  | 36,943 |  | 990 |  | (61 | ) |  | 50,722 |  | 50,781 |  | 465 |  | (406 | )
CMOs issued by FNMA | 24,168 |  | 24,560 |  | 392 |  | — |  |  | 28,275 |  | 28,079 |  | 134 |  | (330 | )
CMOs issued by FHLMC | 138,731 |  | 144,067 |  | 5,374 |  | (38 | ) |  | 145,979 |  | 144,836 |  | 454 |  | (1,597 | )
CMOs issued by GNMA | 12,621 |  | 12,686 |  | 66 |  | (1 | ) |  | 11,294 |  | 11,021 |  | 1 |  | (274 | )
Debentures of government- sponsored agencies | 23,069 |  | 23,822 |  | 753 |  | — |  |  | 52,956 |  | 53,018 |  | 185 |  | (123 | )
Privately issued CMOs | 120 |  | 119 |  | — |  | (1 | ) |  | 295 |  | 297 |  | 2 |  | — |
Obligations of state and political subdivisions | 48,993 |  | 50,232 |  | 1,292 |  | (53 | ) |  | 79,046 |  | 77,960 |  | 134 |  | (1,220 | )
Corporate bonds | 1,999 |  | 2,005 |  | 7 |  | (1 | ) |  | 2,004 |  | 2,005 |  | 15 |  | (14 | )
Total available-for-sale | 348,369 |  | 358,724 |  | 10,557 |  | (202 | ) |  | 465,910 |  | 462,464 |  | 1,748 |  | (5,194 | )
Total investment securities | $ | 490,582 |  | $ | 503,842 |  | $ | 13,687 |  | $ | (427 | ) |  | $ | 623,116 |  | $ | 616,358 |  | $ | 1,958 |  | $ | (8,716 | )
Summary of Available-for-Sale Investments | Our investment securities portfolio consists of obligations of state and political subdivisions, U.S. corporations, U.S. federal government agencies such as Government National Mortgage Association ("GNMA") and Small Business Administration ("SBA"), U.S. government-sponsored enterprise securities ("GSEs"), such as Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), Federal Farm Credit Banks Funding Corporation and FHLB. We also invest in residential and commercial mortgage-backed securities (“MBS”/"CMBS") and collateralized mortgage obligations (“CMOs”) issued or guaranteed by the GSEs, and privately issued CMOs, as reflected in the following table:
| September 30, 2019 |  | December 31, 2018
| 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-sponsored enterprises: |  |  |  |  |  |  |  |  |
MBS pass-through securities issued by FHLMC and FNMA | $ | 80,166 |  | $ | 81,308 |  | $ | 1,357 |  | $ | (215 | ) |  | $ | 88,606 |  | $ | 85,804 |  | $ | 7 |  | $ | (2,809 | )
SBA-backed securities | 8,001 |  | 8,360 |  | 359 |  | — |  |  | 8,720 |  | 8,757 |  | 37 |  | — |
CMOs issued by FNMA | 10,679 |  | 10,981 |  | 302 |  | — |  |  | 11,447 |  | 11,327 |  | — |  | (120 | )
CMOs issued by FHLMC | 32,568 |  | 33,524 |  | 966 |  | (10 | ) |  | 33,583 |  | 33,021 |  | 8 |  | (570 | )
CMOs issued by GNMA | 3,757 |  | 3,810 |  | 53 |  | — |  |  | 3,739 |  | 3,769 |  | 30 |  | — |
Obligations of state and political subdivisions | 7,042 |  | 7,135 |  | 93 |  | — |  |  | 11,111 |  | 11,216 |  | 128 |  | (23 | )
Total held-to-maturity | 142,213 |  | 145,118 |  | 3,130 |  | (225 | ) |  | 157,206 |  | 153,894 |  | 210 |  | (3,522 | )
Available-for-sale: |  |  |  |  |  |  |  |  |
Securities of U.S. government-sponsored enterprises: |  |  |  |  |  |  |  |  |
MBS pass-through securities issued by FHLMC and FNMA | 62,654 |  | 64,290 |  | 1,683 |  | (47 | ) |  | 95,339 |  | 94,467 |  | 358 |  | (1,230 | )
SBA-backed securities | 36,014 |  | 36,943 |  | 990 |  | (61 | ) |  | 50,722 |  | 50,781 |  | 465 |  | (406 | )
CMOs issued by FNMA | 24,168 |  | 24,560 |  | 392 |  | — |  |  | 28,275 |  | 28,079 |  | 134 |  | (330 | )
CMOs issued by FHLMC | 138,731 |  | 144,067 |  | 5,374 |  | (38 | ) |  | 145,979 |  | 144,836 |  | 454 |  | (1,597 | )
CMOs issued by GNMA | 12,621 |  | 12,686 |  | 66 |  | (1 | ) |  | 11,294 |  | 11,021 |  | 1 |  | (274 | )
Debentures of government- sponsored agencies | 23,069 |  | 23,822 |  | 753 |  | — |  |  | 52,956 |  | 53,018 |  | 185 |  | (123 | )
Privately issued CMOs | 120 |  | 119 |  | — |  | (1 | ) |  | 295 |  | 297 |  | 2 |  | — |
Obligations of state and political subdivisions | 48,993 |  | 50,232 |  | 1,292 |  | (53 | ) |  | 79,046 |  | 77,960 |  | 134 |  | (1,220 | )
Corporate bonds | 1,999 |  | 2,005 |  | 7 |  | (1 | ) |  | 2,004 |  | 2,005 |  | 15 |  | (14 | )
Total available-for-sale | 348,369 |  | 358,724 |  | 10,557 |  | (202 | ) |  | 465,910 |  | 462,464 |  | 1,748 |  | (5,194 | )
Total investment securities | $ | 490,582 |  | $ | 503,842 |  | $ | 13,687 |  | $ | (427 | ) |  | $ | 623,116 |  | $ | 616,358 |  | $ | 1,958 |  | $ | (8,716 | )
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2019 and December 31, 2018 are shown in the following table 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.
| September 30, 2019 |  | December 31, 2018
| 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 | $ | 5,327 |  | $ | 5,335 |  |  | $ | 5,475 |  | $ | 5,478 |  |  | $ | 6,194 |  | $ | 6,182 |  |  | $ | 9,863 |  | $ | 9,795 |
After one but within five years | 2,269 |  | 2,318 |  |  | 57,102 |  | 58,144 |  |  | 5,481 |  | 5,492 |  |  | 84,871 |  | 84,435 |
After five years through ten years | 56,183 |  | 58,018 |  |  | 188,601 |  | 195,869 |  |  | 59,231 |  | 58,120 |  |  | 252,274 |  | 250,055 |
After ten years | 78,434 |  | 79,447 |  |  | 97,191 |  | 99,233 |  |  | 86,300 |  | 84,100 |  |  | 118,902 |  | 118,179 |
Total | $ | 142,213 |  | $ | 145,118 |  |  | $ | 348,369 |  | $ | 358,724 |  |  | $ | 157,206 |  | $ | 153,894 |  |  | $ | 465,910 |  | $ | 462,464 |
Sale of Investment Securities and Gross Gains and Losses | Sales of investment securities and gross gains and losses are shown in the following table.
| Three months ended |  | Nine months ended
(in thousands) | September 30, 2019 | September 30, 2018 |  | September 30, 2019 | September 30, 2018
Available-for-sale: |  |  |  |  |
Sales proceeds | $ | — |  | $ | 11,966 |  |  | $ | 66,081 |  | $ | 16,972 |
Gross realized gains | — |  | — |  |  | 214 |  | 27 |
Gross realized losses | — |  | (90 | ) |  | (159 | ) | (106 | )
Schedule of Financial Instruments Owned and Pledged as Collateral | Pledged investment securities are shown in the following table.
(in thousands) | September 30, 2019 | December 31, 2018
Pledged to the State of California: |  |
Secure public deposits in compliance with the Local Agency Security Program | $ | 84,574 |  | $ | 125,696 |
Collateral for trust deposits | 745 |  | 734 |
Total investment securities pledged to the State of California | $ | 85,319 |  | $ | 126,430 |
Collateral for Wealth Management and Trust Services checking account | $ | 625 |  | $ | 2,000 |
Schedule of Unrealized Loss on Investments | There were 37 and 229 securities in unrealized loss positions at September 30, 2019 and December 31, 2018, respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below:
September 30, 2019 | < 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 | $ | 9,063 |  | $ | (24 | ) |  | $ | 23,799 |  | $ | (191 | ) |  | $ | 32,862 |  | $ | (215 | )
CMOs issued by FHLMC | — |  | — |  |  | 1,866 |  | (10 | ) |  | 1,866 |  | (10 | )
Total held-to-maturity | 9,063 |  | (24 | ) |  | 25,665 |  | (201 | ) |  | 34,728 |  | (225 | )
Available-for-sale: |  |  |  |  |  |  |  |
MBS pass-through securities issued by FHLMC and FNMA | 269 |  | (1 | ) |  | 7,628 |  | (46 | ) |  | 7,897 |  | (47 | )
SBA-backed securities | — |  | — |  |  | 2,785 |  | (61 | ) |  | 2,785 |  | (61 | )
CMOs issued by FNMA | — |  | — |  |  | — |  | — |  |  | — |  | — |
CMOs issued by FHLMC | 7,735 |  | (13 | ) |  | 9,722 |  | (25 | ) |  | 17,457 |  | (38 | )
CMOs issued by GNMA | — |  | — |  |  | 130 |  | (1 | ) |  | 130 |  | (1 | )
Privately issued CMOs | 79 |  | (1 | ) |  | — |  | — |  |  | 79 |  | (1 | )
Obligations of state and political subdivisions | 6,936 |  | (49 | ) |  | 966 |  | (4 | ) |  | 7,902 |  | (53 | )
Corporate bonds | — |  | — |  |  | 504 |  | (1 | ) |  | 504 |  | (1 | )
Total available-for-sale | 15,019 |  | (64 | ) |  | 21,735 |  | (138 | ) |  | 36,754 |  | (202 | )
Total temporarily impaired securities | $ | 24,082 |  | $ | (88 | ) |  | $ | 47,400 |  | $ | (339 | ) |  | $ | 71,482 |  | $ | (427 | )
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 | )
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 | )

X
- Definition Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 + Details
Name: | us-gaap_DebtSecuritiesAvailableForSaleTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about investment in debt security measured at amortized cost (held-to-maturity). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=118939692&loc=d3e27232-111563 + Details
Name: | us-gaap_HeldToMaturitySecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of realized gains and losses on investments reported in the statement of income. + References No definition available. + Details
Name: | us-gaap_RealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financial instruments held by the entity for its own account for trading or investment purposes that are carried at fair value and pledged to counterparties as collateral for financing transactions. Description may include equity, fixed income, debt or other securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66007379&loc=d3e113888-111728 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729 + Details
Name: | us-gaap_ScheduleOfFinancialInstrumentsOwnedAndPledgedAsCollateralTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=118939692&loc=d3e27290-111563 + Details
Name: | us-gaap_ScheduleOfUnrealizedLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration