XML 31 R21.htm IDEA: XBRL DOCUMENT v3.21.2

Investment Securities - (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Summary of Held-to-Maturity Investments

A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of September 30, 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)
September 30, 2021
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			$	70,085		$	—		$	70,085		$	2,828		$	(38)		$	72,875
CMOs issued by FHLMC			42,275			—			42,275			1,114			(95)			43,294
CMOs issued by FNMA			5,598			—			5,598			163			—			5,761
SBA-backed securities			4,841			—			4,841			290			—			5,131
Debentures of government-sponsored agencies			51,470			—			51,470			—			—			51,470
Obligations of state and political subdivisions			22,532			—			22,532			20			(31)			22,521
Total held-to-maturity			$	196,801		$	—		$	196,801		$	4,415		$	(164)		$	201,052
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 $451 thousand and $366 thousand at September 30, 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 September 30, 2021.

			Obligations of state and political subdivisions
(in thousands)			September 30, 2021			December 31, 2020
AAA			$	7,455		$	—
AA			14,975			1,461
A			102			206
Total			$	22,532		$	1,667

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 September 30, 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)
September 30, 2021
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA			$	207,557		$	1,925		$	(243)		$	—		$	209,239
CMOs issued by FHLMC			363,708			5,045			(1,065)			—			367,688
CMOs issued by FNMA			55,178			244			(211)			—			55,211
CMOs issued by GNMA			61,411			232			(249)			—			61,394
SBA-backed securities			33,422			1,323			(136)			—			34,609
Debentures of government- sponsored agencies			71,328			63			(1,177)			—			70,214
U.S. Treasury securities			11,881			—			(104)			—			11,777
Obligations of state and political subdivisions			131,865			5,519			(169)			—			137,215
Corporate bonds			14,014			—			(237)			—			13,777
Asset-backed securities			1,914			—			(5)			—			1,909
Total available-for-sale			$	952,278		$	14,351		$	(3,596)		$	—		$	963,033
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 $2.9 million and $1.9 million September 30, 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 September 30, 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.

			September 30, 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			$	102		$	104					$	11,700		$	11,818					$	246		$	250					$	11,530		$	11,687
After one but within five years			23,536			24,725						75,784			77,755						7,550			7,961						59,028			62,397
After five years through ten years			51,125			53,105						314,110			318,801						52,113			55,872						144,908			154,089
After ten years			122,038			123,118						550,684			554,659						49,127			51,102						157,572			164,178
Total			$	196,801		$	201,052					$	952,278		$	963,033					$	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									Nine months ended
(in thousands)			September 30, 2021			September 30, 2020						September 30, 2021			September 30, 2020
Available-for-sale:
Sales proceeds			$	4,099		$	—					$	4,099		$	33,756
Gross realized gains			1			—						1			916
Gross realized losses			—			—						—			(1)

Schedule of Financial Instruments Owned and Pledged as Collateral

Pledged investment securities are shown in the following table:

(in thousands)			September 30, 2021			December 31, 2020
Pledged to the State of California:
Secure public deposits in compliance with the Local Agency Security Program			$	234,390		$	131,051
Collateral for trust deposits			738			751
Collateral for Wealth Management and Trust Services checking account			622			629
Total investment securities pledged to the State of California			235,750			132,431
Bankruptcy trustee deposits pledged with Federal Reserve Bank			2,845			—
Total pledged investment securities			$	238,595		$	132,431

Schedule of Unrealized Loss on Investments

There were 165 and 10 securities in unrealized loss positions at September 30, 2021 and December 31, 2020, respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below:

September 30, 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:
MBS pass-through securities issued by FHLMC and FNMA			$	17,074		$	(38)					$	—		$	—					$	17,074		$	(38)
CMOs issued by FHLMC			9,320			(95)						—			—						9,320			(95)
Obligations of state and political subdivisions			10,194			(31)						—			—						10,194			(31)
Total held-to-maturity			36,588			(164)						—			—						36,588			(164)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA			63,171			(243)						—			—						63,171			(243)
CMOs issued by FHLMC			142,557			(1,065)						—			—						142,557			(1,065)
CMOs issued by FNMA			25,256			(211)						—			—						25,256			(211)
CMOs issued by GNMA			25,879			(249)						—			—						25,879			(249)
SBA-backed securities			8,115			(93)						1,307			(43)						9,422			(136)
Debentures of government- sponsored agencies			50,344			(1,021)						3,812			(156)						54,156			(1,177)
U.S. Treasury securities			11,777			(104)						—			—						11,777			(104)
Obligations of state and political subdivisions			16,494			(169)						—			—						16,494			(169)
Corporate bonds			13,778			(237)						—			—						13,778			(237)
Asset-backed securities			1,909			(5)						—			—						1,909			(5)
Total available-for-sale			359,280			(3,397)						5,119			(199)						364,399			(3,596)
Total securities at loss position			$	395,868		$	(3,561)					$	5,119		$	(199)					$	400,987		$	(3,760)

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:
CMOs issued by FHLMC			$	5,975		$	(1)					$	—		$	—					$	5,975		$	(1)
SBA-backed securities			—			—						1,790			(55)						1,790			(55)
Debentures of government- sponsored agencies			3,943			(24)						—			—						3,943			(24)
Total securities at loss position			$	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:	dtr-types: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=124255953&loc=SL82919230-210447

+ Details

Name:	us-gaap_DebtSecuritiesHeldToMaturityCreditQualityIndicatorTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types: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=123581744&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=123581744&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=123581744&loc=d3e27232-111563

+ Details

Name:	us-gaap_HeldToMaturitySecuritiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types: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:	dtr-types: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:	dtr-types: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:	dtr-types: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=123581744&loc=d3e27290-111563

+ Details

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