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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2021

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, 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)
December 31, 2021
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC and FNMA			$	126,990		$	—		$	126,990		$	2,110		$	(712)		$	128,388
CMOs issued by FHLMC			106,851			—			106,851			668			(1,045)			106,474
CMOs issued by FNMA			4,866			—			4,866			128			—			4,994
SBA-backed securities			4,840			—			4,840			198			—			5,038
Debentures of government-sponsored agencies			51,472						51,472			—			(901)			50,571
Obligations of state and political subdivisions			47,203			—			47,203			296			(209)			47,290
Total held-to-maturity			$	342,222		$	—		$	342,222		$	3,400		$	(2,867)		$	342,755
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 $1.1 million and $366 thousand at December 31, 2021 and 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 December 31, 2021.

			Obligations of state and political subdivisions
Ratings by S&P / Moody's (in thousands)			December 31, 2021			December 31, 2020
AAA / Aaa			$	34,229		$	—
AA / Aa			12,873			1,461
A			101			206
Total			$	47,203		$	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, 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)
December 31, 2021
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA			$	316,090		$	1,224		$	(2,784)		$	—		$	314,530
CMOs issued by FHLMC			343,047			3,209			(4,829)			—			341,427
CMOs issued by FNMA			48,187			152			(611)			—			47,728
CMOs issued by GNMA			56,345			99			(553)			—			55,891
SBA-backed securities			32,640			993			(155)			—			33,478
Debentures of government- sponsored agencies			191,449			25			(2,947)			—			188,527
U.S. Treasury securities			11,886			—			(256)			—			11,630
Obligations of state and political subdivisions			129,009			5,372			(381)			—			134,000
Corporate bonds			39,001			—			(506)			—			38,495
Asset-backed securities			1,866			—			(4)			—			1,862
Total available-for-sale			$	1,169,520		$	11,074		$	(13,026)		$	—		$	1,167,568
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 $3.7 million and $1.9 million at December 31, 2021 and 2020, 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, 2021 and 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.

			December 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			$	101		$	103		$	10,785		$	10,841		$	246		$	250		$	11,530		$	11,687
After one but within five years			25,666			26,559			219,474			219,957			7,550			7,961			59,028			62,397
After five years through ten years			182,604			182,303			299,937			300,187			52,113			55,872			144,908			154,089
After ten years			133,851			133,790			639,324			636,583			49,127			51,102			157,572			164,178
Total			$	342,222		$	342,755		$	1,169,520		$	1,167,568		$	109,036		$	115,185		$	373,038		$	392,351

Gain (Loss) on Investments

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

(in thousands)			2021			2020			2019
Available-for-sale:
Sales proceeds			$	6,632		$	33,756		$	66,081
Gross realized gains			$	1		$	916		$	214
Gross realized losses			$	(17)		$	(1)		$	(159)

Schedule of Financial Instruments Owned and Pledged as Collateral

Pledged investment securities are shown in the following table.

(in thousands)			December 31, 2021			December 31, 2020
Pledged to the State of California:
Secure public deposits in compliance with the Local Agency Security Program			$	213,861		$	131,051
Collateral for trust deposits			729			751
Collateral for Wealth Management and Trust Services checking account			614			629
Total investment securities pledged to the State of California			$	215,204		$	132,431
Bankruptcy trustee deposits pledged with Federal Reserve Bank			$	2,645		$	—
Total pledged investment securities			$	217,849		$	132,431

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, 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			$	76,619		$	(712)					$	—		$	—					$	76,619		$	(712)
CMOs issued by FHLMC			54,811			(1,045)						—			—						54,811			(1,045)
Obligations of state and political subdivisions			19,203			(209)						—			—						19,203			(209)
Debentures of government-sponsored agencies			50,571			(901)						—			—						50,571			(901)
Total held-to-maturity			$	201,204		$	(2,867)					$	—		$	—					$	201,204		$	(2,867)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA			$	263,474		$	(2,784)					$	—		$	—					$	263,474		$	(2,784)
SBA-backed securities			7,478			(112)						1,209			$	(43)					8,687			(155)
CMOs issued by FHLMC			226,175			(4,677)						4,415			(152)						230,590			(4,829)
CMOs issued by GNMA			44,790			(553)						—			—						44,790			(553)
CMOs issued by FNMA			37,348			(611)						—			—						37,348			(611)
Debentures of government-sponsored agencies			148,979			(2,527)						8,549			(420)						157,528			(2,947)
U.S. Treasury securities			11,629			(256)						—			—						11,629			(256)
Obligations of state and political subdivisions			17,552			(381)						—			—						17,552			(381)
Corporate bonds			38,495			(506)						—			—						38,495			(506)
Asset-backed securities			1,861			(4)						—			—						1,861			(4)
Total available-for-sale			$	797,781		$	(12,411)					$	14,173		$	(615)					$	811,954		$	(13,026)
Total securities at a loss position			$	998,985		$	(15,278)					$	14,173		$	(615)					$	1,013,158		$	(15,893)

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			$	9,918		$	(25)					$	1,790		$	(55)					$	11,708		$	(80)

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