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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Held-to-maturity Securities

A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of December 31, 2020 and December 31, 2019 is presented below.

Held-to-maturity:			Amortized Cost 1			Allowance for Credit Losses			Net Carrying Amount			Gross Unrealized						Fair Value
(in thousands)												Gains			(Losses)
December 31, 2020
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			$	65,579		$	—		$	65,579		$	3,924		$	—		$	69,503
CMOs issued by FHLMC			27,201			—			27,201			1,441			—			28,642
CMOs issued by FNMA			8,042			—			8,042			363			—			8,405
SBA-backed securities			6,547			—			6,547			400			—			6,947
Obligations of state and political subdivisions			1,667			—			1,667			21						1,688
Total held-to-maturity			$	109,036		$	—		$	109,036		$	6,149		$	—		$	115,185
December 31, 2019
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			80,451			—			80,451			1,018			(144)			81,325
CMOs issued by FHLMC			31,477			—			31,477			685			(5)			32,157
CMOs issued by FNMA			10,210			—			10,210			282			—			10,492
CMOs issued by GNMA			3,763			—			3,763			53			—			3,816
SBA-backed securities			7,999			—			7,999			265			—			8,264
Obligations of state and political subdivisions			3,513			—			3,513			75			—			3,588
Total held-to-maturity			$	137,413		$	—		$	137,413		$	2,378		$	(149)		$	139,642
1 Amortized cost and fair values exclude accrued interest receivable of $366 thousand and $469 thousand at December 31, 2020 and 2019, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.

Schedule of Bond Ratings for Held-to-Maturity Securities

The following table summarizes Moody's and/or Standard & Poor's bond ratings for our portfolio of held-to-maturity securities issued by states and political subdivisions as of December 31, 2020.

(in thousands)			Obligations of state and political subdivisions
AA			$	1,461
A			206
Total			$	1,667

Schedule of Available-for-sale Securities

A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of December 31, 2020 and December 31, 2019 is presented below.

Available-for-sale:			Amortized Cost 1			Gross Unrealized						Allowance for Credit Losses			Fair Value
(in thousands)						Gains			(Losses)
December 31, 2020
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			$	50,686		$	2,530		$	—		$	—		$	53,216
CMOs issued by FHLMC			143,267			7,925			(1)			—			151,191
CMOs issued by FNMA			16,450			580			—			—			17,030
CMOs issued by GNMA			6,863			351			—			—			7,214
SBA-backed securities			30,941			1,976			(55)			—			32,862
Debentures of government- sponsored agencies			19,944			266			(24)			—			20,186
Obligations of state and political subdivisions			104,887			5,765			—			—			110,652
Total available-for-sale			$	373,038		$	19,393		$	(80)		$	—		$	392,351
December 31, 2019
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			$	98,502		$	1,617		$	(48)		$	—		$	100,071
CMOs issued by FHLMC			139,398			3,892			(64)			—			143,226
CMOs issued by FNMA			22,702			390			—			—			23,092
CMOs issued by GNMA			11,719			42			(6)			—			11,755
SBA-backed securities			35,674			688			(76)			—			36,286
Debentures of government- sponsored agencies			48,389			727			(70)			—			49,046
Obligations of state and political subdivisions			66,042			1,386			(146)			—			67,282
Corporate bonds			1,497			6			(1)			—			1,502
Total available-for-sale			$	423,923		$	8,748		$	(411)		$	—		$	432,260
1 Amortized cost and fair value exclude accrued interest receivable of $1.9 million and $1.8 million at December 31, 2020 and 2019, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of investment debt securities by contractual maturity at December 31, 2020 and 2019 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, 2020												December 31, 2019
			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			$	246		$	250		$	11,530		$	11,687		$	1,807		$	1,811		$	6,699		$	6,706
After one but within five years			7,550			7,961			59,028			62,397			2,256			2,296			48,706			49,619
After five years through ten years			52,113			55,872			144,908			154,089			56,221			57,544			208,806			214,277
After ten years			49,127			51,102			157,572			164,178			77,129			77,991			159,712			161,658
Total			$	109,036		$	115,185		$	373,038		$	392,351		$	137,413		$	139,642		$	423,923		$	432,260

Gain (Loss) on Investments

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

(in thousands)			2020			2019			2018
Available-for-sale:
Sales proceeds			$	33,756		$	66,081		$	16,972
Gross realized gains			$	916		$	214		$	27
Gross realized losses			$	(1)		$	(159)		$	(106)

Schedule of Financial Instruments Owned and Pledged as Collateral

Pledged investment securities are shown in the following table.

(in thousands)			December 31, 2020			December 31, 2019
Pledged to the State of California:
Secure public deposits in compliance with the Local Agency Security Program			$	131,051		$	126,598
Collateral for trust deposits			751			742
Total investment securities pledged to the State of California			$	131,802		$	127,340
Collateral for Wealth Management and Trust Services ("WMTS") checking account			$	629		$	622
Total pledged investment securities			$	132,431		$	127,962

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, 2020			< 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
Available-for-sale:
SBA-backed securities			$	—		$	—					$	1,790		$	(55)					$	1,790		$	(55)
CMOs issued by FHLMC			5,975			(1)						—			—						5,975			(1)
Debentures of government-sponsored agencies			3,943			(24)						—			—						3,943			(24)
Total			$	9,918		$	(25)					$	1,790		$	(55)					$	11,708		$	(80)

December 31, 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			$	14,203		$	(60)					$	6,073		$	(84)					$	20,276		$	(144)
CMOs issued by FHLMC			—			—						1,725			(5)						1,725			(5)
Total held-to-maturity			14,203			(60)						7,798			(89)						22,001			(149)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA			4,367			(34)						4,464			(14)						8,831			(48)
SBA-backed securities			9,227			(14)						2,448			(62)						11,675			(76)
CMOs issued by FHLMC			14,918			(58)						2,981			(6)						17,899			(64)
CMOs issued by GNMA			7,139			(6)						—			—						7,139			(6)
Debentures of government- sponsored agencies			25,228			(70)						—			—						25,228			(70)
Obligations of state and political subdivisions			20,579			(145)						659			(1)						21,238			(146)
Corporate bonds			500			(1)						—			—						500			(1)
Total available-for-sale			81,958			(328)						10,552			(83)						92,510			(411)
Total			$	96,161		$	(388)					$	18,350		$	(172)					$	114,511		$	(560)

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