XML 30 R21.htm IDEA: XBRL DOCUMENT v3.22.1

Investment Securities - (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021 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, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA			$	339,149		$	—		$	339,149		$	148		$	(18,528)		$	320,769
CMOs issued by FHLMC			187,459			—			187,459			42			(11,811)			175,690
CMOs issued by FNMA			51,732			—			51,732			—			(1,000)			50,732
CMOs issued by GNMA			12,375			—			12,375			—			(431)			11,944
SBA-backed securities			3,245			—			3,245			—			(29)			3,216
Debentures of government-sponsored agencies			115,603			—			115,603			—			(9,477)			106,126
Obligations of state and political subdivisions			50,701			—			50,701			1			(4,667)			46,035
Corporate bonds			30,000						30,000			—			—			30,000
Total held-to-maturity			$	790,264		$	—		$	790,264		$	191		$	(45,943)		$	744,512
December 31, 2021
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA			$	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
1 Amortized cost and fair values exclude accrued interest receivable of $1.8 million and $1.1 million at March 31, 2022 and December 31, 2021, 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 and corporate bonds by Moody's and/or Standard & Poor's bond ratings as of March 31, 2022.

			Obligations of state and political subdivisions						Corporate bonds
(in thousands)			March 31, 2022			December 31, 2021			March 31, 2022			December 31, 2021
AAA / Aaa			$	37,735		$	34,229		$	—		$	—
AA / Aa			12,866			12,873			—			—
A2 / A			100			101			30,000			—
Total			$	50,701		$	47,203		$	30,000		$	—

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, 2022 and December 31, 2021 is presented below.

Available-for-sale:			Amortized Cost 1			Gross Unrealized						Allowance for Credit Losses			Fair Value
(in thousands)						Gains			(Losses)
March 31, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA			$	133,883		$	252		$	(5,486)		$	—		$	128,649
CMOs issued by FHLMC			390,501			103			(14,756)			—			375,848
CMOs issued by FNMA			43,750			9			(2,258)			—			41,501
CMOs issued by GNMA			40,948			3			(1,725)			—			39,226
SBA-backed securities			56,085			11			(1,444)			—			54,652
Debentures of government- sponsored agencies			150,091			3			(6,797)			—			143,297
U.S. Treasury securities			11,890			—			(917)			—			10,973
Obligations of state and political subdivisions			129,706			498			(5,514)			—			124,690
Corporate bonds			36,988			—			(2,128)			—			34,860
Asset-backed securities			1,795			—			(34)			—			1,761
Total available-for-sale			$	995,637		$	879		$	(41,059)		$	—		$	955,457
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
1 Amortized cost and fair value exclude accrued interest receivable of $3.3 million and $3.7 million at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021 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, 2022																		December 31, 2021
			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		$	102					$	5,605		$	5,618					$	101		$	103					$	10,785		$	10,841
After one but within five years			43,041			42,969						260,143			251,904						25,666			26,559						219,474			219,957
After five years through ten years			244,649			227,772						312,767			298,180						182,604			182,303						299,937			300,187
After ten years			502,473			473,669						417,122			399,755						133,851			133,790						639,324			636,583
Total			$	790,264		$	744,512					$	995,637		$	955,457					$	342,222		$	342,755					$	1,169,520		$	1,167,568

Schedule of Financial Instruments Owned and Pledged as Collateral

Pledged investment securities are shown in the following table:

(in thousands)			March 31, 2022			December 31, 2021
Pledged to the State of California:
Secure public deposits in compliance with the Local Agency Security Program			$	208,406		$	213,861
Collateral for trust deposits			691			729
Collateral for Wealth Management and Trust Services checking account			583			614
Total investment securities pledged to the State of California			209,680			215,204
Bankruptcy trustee deposits pledged with Federal Reserve Bank			2,194			2,645
Total pledged investment securities			$	211,874		$	217,849

Schedule of Unrealized Loss on Investments

There were 354 and 217 securities in unrealized loss positions at March 31, 2022 and December 31, 2021, respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below:

March 31, 2022			< 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, FNMA and GNMA			$	299,200		$	(18,528)					$	—		$	—					$	299,200		$	(18,528)
CMOs issued by FHLMC			165,101			(11,498)						4,328			(313)						169,429			(11,811)
CMOs issued by FNMA			25,350			(1,000)						—			—						25,350			(1,000)
CMOs issued by GNMA			11,944			(431)						—			—						11,944			(431)
SBA-backed securities			3,216			(29)						—			—						3,216			$	(29)
Debentures of government-sponsored agencies			65,826			(6,510)						40,300			(2,967)						106,126			$	(9,477)
Obligations of state and political subdivisions			42,348			(4,667)						—			—						42,348			(4,667)
Total held-to-maturity			612,985			(42,663)						44,628			(3,280)						657,613			(45,943)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA			108,982			(5,486)						—			—						108,982			(5,486)
CMOs issued by FHLMC			359,856			(14,357)						4,107			(399)						363,963			(14,756)
CMOs issued by FNMA			40,170			(2,258)						—			—						40,170			(2,258)
CMOs issued by GNMA			37,732			(1,725)						—			—						37,732			(1,725)
SBA-backed securities			43,665			(1,400)						1,124			(44)						44,789			(1,444)
Debentures of government- sponsored agencies			114,450			(5,673)						7,845			(1,124)						122,295			(6,797)
U.S. Treasury securities			10,973			(917)						—			—						10,973			(917)
Obligations of state and political subdivisions			102,115			(5,153)						2,243			(361)						104,358			(5,514)
Corporate bonds			29,421			(1,579)						5,440			(549)						34,861			(2,128)
Asset-backed securities			1,761			(34)						—			—						1,761			(34)
Total available-for-sale			849,125			(38,582)						20,759			(2,477)						869,884			(41,059)
Total securities at loss position			$	1,462,110		$	(81,245)					$	65,387		$	(5,757)					$	1,527,497		$	(87,002)

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 loss position			$	998,985		$	(15,278)					$	14,173		$	(615)					$	1,013,158		$	(15,893)

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 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