XML 31 R21.htm IDEA: XBRL DOCUMENT v3.21.1

Investment Securities - (Tables)

3 Months Ended

Mar. 31, 2021

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 enterprises ("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, as reflected in the following table.

A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of March 31, 2021 and December 31, 2020 is presented below.

Held-to-maturity:			Amortized Cost 1			Allowance for Credit Losses			Net Carrying Amount			Gross Unrealized						Fair Value
(in thousands)												Gains			(Losses)
March 31, 2021
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			$	78,227		$	—		$	78,227		$	3,283		$	—		$	81,510
CMOs issued by FHLMC			30,207			—			30,207			1,105			(189)			31,123
CMOs issued by FNMA			7,305			—			7,305			347			—			7,652
SBA-backed securities			5,699			—			5,699			227			—			5,926
Debentures of government-sponsored agencies			29,950			—			29,950			—			—			29,950
Obligations of state and political subdivisions			582			—			582			13			—			595
Total held-to-maturity			$	151,970		$	—		$	151,970		$	4,975		$	(189)		$	156,756
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
1 Amortized cost and fair values exclude accrued interest receivable of $295 thousand and $366 thousand at March 31, 2021 and December 31, 2020, 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 the amortized cost of our portfolio of held-to-maturity securities issued by states and political subdivisions by Moody's and/or Standard & Poor's bond ratings as of March 31, 2021.

(in thousands)			Obligations of state and political subdivisions
AA			$	377
A			205
Total			$	582

Summary of Available-for-Sale Investments

A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of March 31, 2021 and December 31, 2020 is presented below.

Available-for-sale:			Amortized Cost 1			Gross Unrealized						Allowance for Credit Losses			Fair Value
(in thousands)						Gains			(Losses)
March 31, 2021
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			$	65,871		$	2,199		$	(56)		$	—		$	68,014
CMOs issued by FHLMC			168,589			5,525			(948)			—			173,166
CMOs issued by FNMA			21,663			537			(31)			—			22,169
CMOs issued by GNMA			23,738			236			—			—			23,974
SBA-backed securities			28,059			1,212			(53)			—			29,218
Debentures of government- sponsored agencies			76,313			201			(2,041)			—			74,473
Obligations of state and political subdivisions			118,118			3,842			(195)			—			121,765
Corporate bonds			5,986			—			(197)			—			5,789
Total available-for-sale			$	508,337		$	13,752		$	(3,521)		$	—		$	518,568
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
1 Amortized cost and fair value exclude accrued interest receivable of $1.9 million at both March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020 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.

			March 31, 2021																		December 31, 2020
			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		$	248					$	15,013		$	15,219					$	246		$	250					$	11,530		$	11,687
After one but within five years			8,847			9,284						55,101			57,955						7,550			7,961						59,028			62,397
After five years through ten years			62,415			65,241						193,424			198,301						52,113			55,872						144,908			154,089
After ten years			80,462			81,983						244,799			247,093						49,127			51,102						157,572			164,178
Total			$	151,970		$	156,756					$	508,337		$	518,568					$	109,036		$	115,185					$	373,038		$	392,351

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
(in thousands)			March 31, 2021			March 31, 2020
Available-for-sale:
Sales proceeds			$	—		$	27,442
Gross realized gains			—			800

Schedule of Financial Instruments Owned and Pledged as Collateral

Pledged investment securities are shown in the following table:

(in thousands)			March 31, 2021			December 31, 2020
Pledged to the State of California:
Secure public deposits in compliance with the Local Agency Security Program			$	123,085		$	131,051
Collateral for trust deposits			735			751
Total investment securities pledged to the State of California			123,820			131,802
Collateral for Wealth Management and Trust Services checking account			614			629
Total pledged investment securities			$	124,434		$	132,431

Schedule of Unrealized Loss on Investments

There were 29 and 10 securities in unrealized loss positions at March 31, 2021 and December 31, 2020, respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below:

March 31, 2021			< 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:
CMOs issued by FHLMC			$	4,235		$	(189)					$	—		$	—					$	4,235		$	(189)
Total held-to-maturity			4,235			(189)						—			—						4,235			(189)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA			10,013			(56)						—			—						10,013			(56)
SBA-backed securities			—			—						1,699			(53)						1,699			(53)
CMOs issued by FNMA			7,304			(31)						—			—						7,304			(31)
CMOs issued by FHLMC			32,658			(948)						—			—						32,658			(948)
Debentures of government- sponsored agencies			53,289			(2,041)						—			—						53,289			(2,041)
Obligations of state and political subdivisions			28,529			(195)						—			—						28,529			(195)
Corporate bonds			5,789			(197)						—			—						5,789			(197)
Total available-for-sale			137,582			(3,468)						1,699			(53)						139,281			(3,521)
Total temporarily impaired securities			$	141,817		$	(3,657)					$	1,699		$	(53)					$	143,516		$	(3,710)

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 available-for-sale			9,918			(25)						1,790			(55)						11,708			(80)
Total temporarily impaired securities			$	9,918		$	(25)					$	1,790		$	(55)					$	11,708		$	(80)

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 credit quality indicator for investment in debt security measured at amortized cost (held-to-maturity).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919230-210447

+ Details

Name:	us-gaap_DebtSecuritiesHeldToMaturityCreditQualityIndicatorTableTextBlock
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://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=121645371&loc=SL120269825-111563

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=121645371&loc=SL120269820-111563

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121645371&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://www.xbrl.org/2009/role/commonPracticeRef
-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=121645371&loc=d3e27290-111563

+ Details

Name:	us-gaap_ScheduleOfUnrealizedLossOnInvestmentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration