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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Held-to-Maturity Amortized Cost and Fair Value
A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of September 30, 2023 and December 31, 2022 is presented below.
Held-to-maturity:
Amortized Cost 1
Allowance for Credit LossesNet Carrying AmountGross UnrealizedFair Value
(in thousands)Gains(Losses)
September 30, 2023
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$311,595 $— $311,595 $— $(61,870)$249,725 
CMOs issued by FHLMC228,194 — 228,194 71 (33,448)194,817 
CMOs issued by FNMA104,031 — 104,031 — (9,125)94,906 
CMOs issued by GNMA51,268 — 51,268 155 (4,816)46,607 
SBA-backed securities1,853 — 1,853 — (140)1,713 
Debentures of government-sponsored agencies146,050 — 146,050 — (28,893)117,157 
Obligations of state and political subdivisions62,151 — 62,151 — (12,066)50,085 
Corporate bonds30,000 — 30,000 — (1,794)28,206 
Total held-to-maturity$935,142 $— $935,142 $226 $(152,152)$783,216 
December 31, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$331,281 $— $331,281 $— $(50,147)$281,134 
CMOs issued by FHLMC235,971 — 235,971 59 (29,503)206,527 
  CMOs issued by FNMA111,904 — 111,904 — (5,419)106,485 
  CMOs issued by GNMA52,356 — 52,356 11 (3,076)49,291 
  SBA-backed securities2,372 — 2,372 — (133)2,239 
Debentures of government-sponsored agencies145,823 — 145,823 — (26,467)119,356 
Obligations of state and political subdivisions62,500 — 62,500 — (10,741)51,759 
Corporate bonds30,000 — 30,000 — (1,552)28,448 
Total held-to-maturity$972,207 $— $972,207 $70 $(127,038)$845,239 
1 Amortized cost and fair values exclude accrued interest receivable of $2.6 million and $3.7 million at September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022.
Moody's / S&PObligations of state and political subdivisionsCorporate bonds
(in thousands)September 30, 2023December 31, 2022September 30, 2023December 31, 2022
Aaa / AAA$42,680 $42,986 $— $— 
Aa2 / AA19,471 19,514 — — 
A2 / A— — 30,000 30,000 
Total$62,151 $62,500 $30,000 $30,000 
Schedule of Available-for-Sale Securities Amortized Cost and Fair Value
A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of September 30, 2023 and December 31, 2022 is presented below.
Available-for-sale:
Amortized Cost 1
Gross UnrealizedAllowance for Credit LossesFair Value
(in thousands)Gains(Losses)
September 30, 2023
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$84,654 $2 $(13,263)$— $71,393 
CMOs issued by FHLMC307,119 — (37,236)— 269,883 
CMOs issued by FNMA30,832 — (4,012)— 26,820 
CMOs issued by GNMA20,505 — (3,668)— 16,837 
SBA-backed securities31,389 — (3,166)— 28,223 
Debentures of government- sponsored agencies129,137 — (11,971)— 117,166 
U.S. Treasury securities11,918 — (1,703)— 10,215 
Obligations of state and political subdivisions102,493 — (18,771)— 83,722 
Corporate bonds36,991 — (2,435)— 34,556 
Total available-for-sale$755,038 $2 $(96,225)$— $658,815 
December 31, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$109,736 $3 $(12,133)$— $97,606 
CMOs issued by FHLMC347,437 — (33,682)— 313,755 
CMOs issued by FNMA36,172 — (3,852)— 32,320 
CMOs issued by GNMA35,120 — (3,296)— 31,824 
SBA-backed securities47,724 2 (3,371)— 44,355 
Debentures of government- sponsored agencies149,114 — (14,008)— 135,106 
U.S. Treasury securities11,904 — (1,635)10,269 
Obligations of state and political subdivisions116,855 29 (14,761)— 102,123 
Corporate bonds36,990 — (3,714)— 33,276 
Asset-backed securities1,553 — (91)— 1,462 
Total available-for-sale$892,605 $34 $(90,543)$— $802,096 
1 Amortized cost and fair value exclude accrued interest receivable of $2.7 million and $3.2 million at September 30, 2023 and December 31, 2022, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.
Schedule of Investments Classified by Contractual Maturity Date
The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2023 and December 31, 2022 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.
 September 30, 2023December 31, 2022
 Held-to-MaturityAvailable-for-SaleHeld-to-MaturityAvailable-for-Sale
(in thousands)Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Within one year$— $— $25,103 $24,205 $450 $446 $1,254 $1,239 
After one but within five years88,242 83,291 327,723 297,206 87,418 83,663 335,813 307,843 
After five years through ten years304,952 247,742 99,406 85,685 262,072 222,280 185,997 166,273 
After ten years541,948 452,183 302,806 251,719 622,267 538,850 369,541 326,741 
Total$935,142 $783,216 $755,038 $658,815 $972,207 $845,239 $892,605 $802,096 
Schedule of 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 endedNine months ended
(in thousands)September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Available-for-sale:
Sales proceeds$79,840 $10,664 $79,840 $10,664 
Gross realized gains5 17 5 17 
Gross realized losses(2,798)(80)(2,798)(80)
Sale of equity securities: 1
Sales proceeds2,807 — 2,807 — 
Gross realized gain2,807 — 2,807 — 
1 Refer to VISA Inc. Class B Common Stock section below for more information.
Schedule of Financial Instruments Owned and Pledged as Collateral
The carrying values of pledged investment securities are shown in the following table:
(in thousands)September 30, 2023December 31, 2022
Pledged to the State of California:
Secure public deposits in compliance with the Local Agency Security Program$203,936 $231,307 
Collateral for trust deposits649 669 
   Collateral for Wealth Management and Trust Services checking account547 564 
Total investment securities pledged to the State of California205,132 232,540 
Bankruptcy trustee deposits pledged with Federal Reserve Bank1,321 1,686 
Pledged to FHLB Securities-Backed Credit Program386,713 — 
Pledged to the Federal Reserve BTFP269,961 — 
Total pledged investment securities$863,127 $234,226 
Schedule of Unrealized Loss on Investments Those securities are summarized and classified according to the duration of the loss period in the tables below:
September 30, 2023< 12 continuous months≥ 12 continuous monthsTotal securities
 in a loss position
(in thousands)Fair valueUnrealized lossFair valueUnrealized lossFair valueUnrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$— $— $249,726 $(61,870)$249,726 $(61,870)
CMOs issued by FHLMC4,311 (68)181,530 (33,380)185,841 (33,448)
CMOs issued by FNMA41,398 (2,413)53,508 (6,712)94,906 (9,125)
CMOs issued by GNMA11,481 (154)25,859 (4,662)37,340 (4,816)
SBA-backed securities— — 1,713 (140)1,713 (140)
Debentures of government-sponsored agencies— — 117,157 (28,893)117,157 (28,893)
Obligations of state and political subdivisions3,034 (43)47,051 (12,023)50,085 (12,066)
Corporate bonds— — 28,206 (1,794)28,206 (1,794)
Total held-to-maturity60,224 (2,678)704,750 (149,474)764,974 (152,152)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA— — 70,980 (13,263)70,980 (13,263)
CMOs issued by FHLMC— — 269,883 (37,236)269,883 (37,236)
CMOs issued by FNMA— — 26,820 (4,012)26,820 (4,012)
CMOs issued by GNMA— — 16,837 (3,668)16,837 (3,668)
SBA-backed securities— — 28,223 (3,166)28,223 (3,166)
Debentures of government- sponsored agencies— — 117,166 (11,971)117,166 (11,971)
U.S. Treasury securities— — 10,215 (1,703)10,215 (1,703)
Obligations of state and political subdivisions1,196 (36)82,526 (18,735)83,722 (18,771)
Corporate bonds— — 34,556 (2,435)34,556 (2,435)
Asset-backed securities— — — — — — 
Total available-for-sale1,196 (36)657,206 (96,189)658,402 (96,225)
Total securities at loss position$61,420 $(2,714)$1,361,956 $(245,663)$1,423,376 $(248,377)
December 31, 2022< 12 continuous months≥ 12 continuous monthsTotal securities
 in a loss position
(in thousands)Fair valueUnrealized lossFair valueUnrealized lossFair valueUnrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$62,627 $(5,960)$218,507 $(44,187)$281,134 $(50,147)
CMOs issued by FHLMC78,144 (5,874)113,796 (23,629)191,940 (29,503)
CMOs issued by FNMA106,485 (5,419)— — 106,485 (5,419)
CMOs issued by GNMA27,570 (1,676)10,331 (1,400)37,901 (3,076)
SBA-backed securities2,239 (133)— — 2,239 (133)
Debentures of government- sponsored agencies38,645 (2,530)80,711 (23,937)119,356 (26,467)
Obligations of state and political subdivisions15,155 (589)36,603 (10,152)51,758 (10,741)
Corporate Bonds28,448 (1,552)— — 28,448 (1,552)
Total held-to-maturity359,313 (23,733)459,948 (103,305)819,261 (127,038)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA44,630 (4,501)52,235 (7,632)96,865 (12,133)
CMOs issued by FHLMC169,760 (15,144)143,995 (18,538)313,755 (33,682)
CMOs issued by FNMA4,790 (235)27,529 (3,617)32,319 (3,852)
CMOs issued by GNMA8,214 (374)23,612 (2,922)31,826 (3,296)
SBA-backed securities37,845 (3,228)6,133 (143)43,978 (3,371)
Debentures of government- sponsored agencies19,054 (946)116,052 (13,062)135,106 (14,008)
U.S. Treasury securities— — 10,269 (1,635)10,269 (1,635)
Obligations of state and political subdivisions70,402 (9,459)28,711 (5,302)99,113 (14,761)
Corporate Bonds— — 33,276 (3,714)33,276 (3,714)
Asset-backed securities— — 1,462 (91)1,462 (91)
Total available-for-sale354,695 (33,887)443,274 (56,656)797,969 (90,543)
Total securities at loss position$714,008 $(57,620)$903,222 $(159,961)$1,617,230 $(217,581)