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Investment Securities
 6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities.
(a) Securities by Type and Maturity
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities available for sale at the dates indicated were as follows:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(In thousands)
June 30, 2017
 
 
 
 
 
 
 
U.S. Treasury and U.S. Government-sponsored agencies
$
9,468

 
$
9

 
$
(29
)
 
$
9,448

Municipal securities
239,881

 
5,313

 
(864
)
 
244,330

Mortgage-backed securities and collateralized mortgage obligations(1):
 
 
 
 
 
 
 
Residential
282,997

 
851

 
(2,012
)
 
281,836

Commercial
210,079

 
825

 
(2,245
)
 
208,659

Collateralized loan obligations
6,798

 
14

 
(17
)
 
6,795

Corporate obligations
13,552

 
213

 
—

 
13,765

Other securities
25,406

 
360

 
(5
)
 
25,761

Total
$
788,181

 
$
7,585

 
$
(5,172
)
 
$
790,594

 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
U.S. Treasury and U.S. Government-sponsored agencies
$
1,563

 
$
6

 
$
—

 
$
1,569

Municipal securities
237,305

 
2,427

 
(2,476
)
 
237,256

Mortgage-backed securities and collateralized mortgage obligations(1):
 
 
 
 
 
 
 
Residential
310,391

 
985

 
(2,200
)
 
309,176

Commercial
211,259

 
599

 
(3,540
)
 
208,318

Collateralized loan obligations
10,505

 
4

 
(31
)
 
10,478

Corporate obligations
16,611

 
104

 
(9
)
 
16,706

Other securities
11,005

 
156

 
(19
)
 
11,142

Total
$
798,639

 
$
4,281

 
$
(8,275
)
 
$
794,645



(1)
Issued and guaranteed by U.S. Government-sponsored agencies.
There were no securities classified as trading or held to maturity at June 30, 2017 or December 31, 2016.
The amortized cost and fair value of investment securities available for sale at June 30, 2017, by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
 
Amortized Cost
 
Fair Value
 
(In thousands)
Due in one year or less
$
5,612

 
$
5,653

Due after one year through five years
110,610

 
111,912

Due after five years through ten years
248,162

 
248,257

Due after ten years
423,752

 
424,644

Investment securities with no stated maturities
45

 
128

Total
$
788,181

 
$
790,594


(b) Unrealized Losses and Other-Than-Temporary Impairments
The following table shows the gross unrealized losses and fair value of the Company's investment securities available for sale that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of June 30, 2017 and December 31, 2016:
 
Less than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
(In thousands)
June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and U.S. Government-sponsored agencies
$
4,533

 
$
(29
)
 
$
—

 
$
—

 
$
4,533

 
$
(29
)
Municipal securities
36,220

 
(812
)
 
2,498

 
(52
)
 
38,718

 
(864
)
Mortgage-backed securities and collateralized mortgage obligations(1):
 
 
 
 
 
 
 
 
 
 
 
Residential
145,878

 
(1,897
)
 
12,541

 
(115
)
 
158,419

 
(2,012
)
Commercial
129,184

 
(2,148
)
 
6,820

 
(97
)
 
136,004

 
(2,245
)
Collateralized loan obligations
2,883

 
(17
)
 
—

 
—

 
2,883

 
(17
)
Other Securities
2,933

 
(5
)
 
—

 
—

 
2,933

 
(5
)
Total
$
321,631

 
$
(4,908
)
 
$
21,859

 
$
(264
)
 
$
343,490

 
$
(5,172
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
$
90,188

 
$
(2,476
)
 
$
—

 
$
—

 
$
90,188

 
$
(2,476
)
Mortgage-backed securities and collateralized mortgage obligations(1):
 
 
 
 
 
 
 
 
 
 
 
Residential
181,562

 
(2,148
)
 
10,854

 
(52
)
 
192,416

 
(2,200
)
Commercial
157,055

 
(3,446
)
 
12,597

 
(94
)
 
169,652

 
(3,540
)
Collateralized loan obligations
2,976

 
(1
)
 
2,969

 
(30
)
 
5,945

 
(31
)
Corporate obligations
4,032

 
(9
)
 
—

 
—

 
4,032

 
(9
)
Other Securities
6,998

 
(19
)
 
—

 
—

 
6,998

 
(19
)
Total
$
442,811

 
$
(8,099
)
 
$
26,420

 
$
(176
)
 
$
469,231

 
$
(8,275
)

(1) Issued and guaranteed by U.S. Government-sponsored agencies.
The Company has evaluated these investment securities available for sale as of June 30, 2017 and December 31, 2016 and has determined that the decline in their value is temporary. The unrealized losses are primarily due to increases in market interest rates and larger spreads in the market for mortgage-related products. The fair value of these securities is expected to recover as the securities approach their maturity date and/or as the pricing spreads narrow on mortgage-related securities. None of the underlying issuers of the municipal securities had credit ratings that were below investment grade levels at June 30, 2017 or December 31, 2016. The Company has the ability and intent to hold the investments until recovery of the securities' amortized cost, which may be the maturity date of the securities.
For the three and six months ended June 30, 2017 and 2016, there were no investment securities determined to be other-than-temporarily impaired.

(c) Pledged Securities
The following table summarizes the amortized cost and fair value of investment securities available for sale that are pledged as collateral for the following obligations at June 30, 2017 and December 31, 2016:
 
June 30, 2017
 
December 31, 2016
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(In thousands)
Washington and Oregon state to secure public deposits
$
208,907

 
$
210,420

 
$
214,834

 
$
215,247

Repurchase agreements
32,731

 
32,591

 
29,481

 
29,294

Other securities pledged
3,534

 
3,536

 
3,557

 
3,546

Total
$
245,172

 
$
246,547

 
$
247,872

 
$
248,087