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Investment Securities
 12 Months Ended
Dec. 31, 2019
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.
Available for sale investment securities
(a) Securities by Type and Maturity
The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities available for sale at the dates indicated:
 
December 31, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(In thousands)
U.S. Treasury and U.S. Government-sponsored agencies
$
104,709

 
$
598

 
$
(84
)
 
$
105,223

Municipal securities
128,183

 
4,933

 
(102
)
 
133,014

Mortgage-backed securities and collateralized mortgage obligations (1):
 
 
 
 
 
 

Residential
336,929

 
3,184

 
(505
)
 
339,608

Commercial
322,169

 
5,575

 
(649
)
 
327,095

Corporate obligations
23,893

 
316

 
(15
)
 
24,194

Other asset-backed securities (1)
23,277

 
54

 
(153
)
 
23,178

Total
$
939,160


$
14,660


$
(1,508
)

$
952,312

(1) Issued and guaranteed by U.S. Government-sponsored agencies.
 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(In thousands)
U.S. Treasury and U.S. Government-sponsored agencies
$
101,595

 
$
155

 
$
(147
)
 
$
101,603

Municipal securities
158,461

 
1,209

 
(806
)
 
158,864

Mortgage-backed securities and collateralized mortgage obligations (1):
 
 
 
 
 
 
 
Residential
337,295

 
426

 
(6,119
)
 
331,602

Commercial
338,250

 
1,035

 
(5,524
)
 
333,761

Corporate obligations
25,662

 
36

 
(135
)
 
25,563

Other asset-backed securities (1)
24,278

 
424

 
—

 
24,702

Total
$
985,541

 
$
3,285

 
$
(12,731
)
 
$
976,095


(1) Issued and guaranteed by U.S. Government-sponsored agencies.
There were no securities classified as trading or held to maturity at December 31, 2019 or December 31, 2018.
The amortized cost and fair value of investment securities available for sale at December 31, 2019, 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
$
18,745

 
$
18,888

Due after one year through five years
174,623

 
176,734

Due after five years through ten years
293,616

 
298,650

Due after ten years
452,176

 
458,040

Total
$
939,160


$
952,312



(b) Unrealized Losses and Other-Than-Temporary Impairments
The following tables show 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 December 31, 2019 and December 31, 2018:
 
December 31, 2019
 
Less than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
(In thousands)
U.S. Treasury and U.S. Government-sponsored agencies
$
45,999

 
$
(84
)
 
$
—

 
$
—

 
$
45,999

 
$
(84
)
Municipal securities
13,761

 
(102
)
 
—

 
—

 
13,761

 
(102
)
Mortgage-backed securities and collateralized mortgage obligations (1):
 
 
 
 
 
 
 
 

 

Residential
14,272

 
(66
)
 
60,232

 
(439
)
 
74,504

 
(505
)
Commercial
56,263

 
(177
)
 
43,623

 
(472
)
 
99,886

 
(649
)
Corporate obligations
998

 
(2
)
 
1,987

 
(13
)
 
2,985

 
(15
)
Other asset-backed securities (1)
14,383

 
(127
)
 
1,609

 
(26
)
 
15,992

 
(153
)
Total
$
145,676


$
(558
)

$
107,451


$
(950
)

$
253,127


$
(1,508
)
(1) Issued and guaranteed by U.S. Government-sponsored agencies.
 
December 31, 2018
 
Less than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
(In thousands)
U.S. Treasury and U.S. Government-sponsored agencies
$
46,992

 
$
(58
)
 
$
7,350

 
$
(89
)
 
$
54,342

 
$
(147
)
Municipal securities
31,157

 
(159
)
 
38,792

 
(647
)
 
69,949

 
(806
)
Mortgage-backed securities and collateralized mortgage obligations (1):
 
 
 
 
 
 
 
 
 
 
 
Residential
66,620

 
(247
)
 
193,726

 
(5,872
)
 
260,346

 
(6,119
)
Commercial
43,531

 
(272
)
 
190,585

 
(5,252
)
 
234,116

 
(5,524
)
Corporate obligations
13,736

 
(87
)
 
1,951

 
(48
)
 
15,687

 
(135
)
Total
$
202,036

 
$
(823
)
 
$
432,404

 
$
(11,908
)
 
$
634,440

 
$
(12,731
)

(1) Issued and guaranteed by U.S. Government-sponsored agencies.
The Company has evaluated these investment securities available for sale as of December 31, 2019 and December 31, 2018 and has determined that the decline in their value is not other-than-temporary. The unrealized losses are primarily due to increases in market interest rates since purchase of the securities. The fair value of these securities is expected to recover as the securities approach their maturity date. None of the underlying issuers of the municipal securities and corporate obligations had credit ratings that were below investment grade levels at December 31, 2019 or December 31, 2018. 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 years ended December 31, 2019, 2018 and 2017 there were no other-than-temporary charges recorded to net income.

(c) Realized Gains and Losses
The following table presents the gross realized gains and losses on the sale of securities available for sale for the years ended December 31, 2019, 2018 and 2017:

 
Year ended December 31,
 
2019
 
2018
 
2017
 
(In thousands)
Gross realized gains
$
558

 
$
273

 
$
193

Gross realized losses
(228
)
 
(136
)
 
(187
)
Net realized gains
$
330

 
$
137

 
$
6



(d) 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 December 31, 2019 and December 31, 2018:
 
December 31, 2019
 
December 31, 2018
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(In thousands)
Washington and Oregon state public deposits
$
187,700

 
$
190,773

 
$
199,026

 
$
196,786

Securities sold under agreement to repurchase
22,156

 
22,294

 
48,173

 
47,407

Other securities pledged
19,333

 
19,850

 
20,778

 
20,482

Total
$
229,189


$
232,917


$
267,977


$
264,675