XML 88 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Investment Securities
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
(a) Securities by Type and Maturity
The following tables present the amortized cost and fair value of investment securities available for sale at the dates indicated and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):
 
March 31, 2020
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(In thousands)
U.S. Treasury and U.S. Government-sponsored agencies
$
85,868

 
$
1,314

 
$
(120
)
 
$
87,062

Municipal securities
174,614

 
5,409

 
(415
)
 
179,608

Mortgage-backed securities and collateralized mortgage obligations:
 
 
 
 
 
 
 
Residential
313,710

 
9,204

 
(230
)
 
322,684

Commercial
316,683

 
10,348

 
(1,275
)
 
325,756

Corporate obligations
23,897

 
195

 
(260
)
 
23,832

Other asset-backed securities (1)
23,056

 
—

 
(906
)
 
22,150

Total
$
937,828

 
$
26,470

 
$
(3,206
)
 
$
961,092


(1) 
Issued and guaranteed by U.S. Government-sponsored agencies.
 
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:
 
 
 
 
 
 
 
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.
There were no securities classified as trading or held to maturity at March 31, 2020 or December 31, 2019.
For the three months ended March 31, 2020, there was no provision for credit loss on investment securities available for sale recorded to net income. There was no ACL on investment securities at March 31, 2020.
The amortized cost and fair value of investment securities available for sale at March 31, 2020, 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
$
33,547

 
$
33,806

Due after one year through five years
162,455

 
166,232

Due after five years through ten years
255,123

 
263,149

Due after ten years
486,703

 
497,905

Total
$
937,828

 
$
961,092


There were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity at March 31, 2020 and December 31, 2019.
(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, for which an ACL has not been recorded, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of March 31, 2020 and December 31, 2019:
 
March 31, 2020
 
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
$
5,880

 
$
(120
)
 
$
—

 
$
—

 
$
5,880

 
$
(120
)
Municipal securities
27,434

 
(415
)
 
—

 
—

 
27,434

 
(415
)
Mortgage-backed securities and collateralized mortgage obligations:
 
 
 
 
 
 
 
 
 
 
 
Residential
2,045

 
(6
)
 
27,992

 
(224
)
 
30,037

 
(230
)
Commercial
32,562

 
(683
)
 
25,485

 
(592
)
 
58,047

 
(1,275
)
Corporate obligations
7,788

 
(240
)
 
1,980

 
(20
)
 
9,768

 
(260
)
Other asset-backed securities (1)
20,644

 
(848
)
 
1,506

 
(58
)
 
22,150

 
(906
)
Total
$
96,353

 
$
(2,312
)
 
$
56,963

 
$
(894
)
 
$
153,316

 
$
(3,206
)
(1) 
Issued and guaranteed by U.S. Government-sponsored agencies.
 
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:
 
 
 
 
 
 
 
 
 
 
 
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.
The Company has evaluated these investment securities available for sale as of March 31, 2020 and December 31, 2019 and determined that no ACL is necessary. Unrealized losses on investment securities have not been recognized into income because the issuers of bonds are investment grade (rated A- or higher), the securities carry governmental guarantees, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds and the fair value is expected to recover as the bonds approach maturity.

(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 three months ended March 31, 2020 and 2019:
 
Three Months Ended March 31,
 
2020
 
2019
 
(In thousands)
Gross realized gains
$
1,028

 
$
89

Gross realized losses
(14
)
 
(74
)
Net realized gains
$
1,014

 
$
15



(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 March 31, 2020 and December 31, 2019:
 
March 31, 2020
 
December 31, 2019
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(In thousands)
Washington and Oregon state public deposits
$
179,570

 
$
184,231

 
$
187,700

 
$
190,773

Securities sold under agreement to repurchase
26,420

 
26,473

 
22,156

 
22,294

Other securities pledged
21,164

 
22,214

 
19,333

 
19,850

Total
$
227,154

 
$
232,918

 
$
229,189

 
$
232,917



(e) Accrued Interest Receivable
Accrued interest receivable excluded from amortized cost on investment securities available for sale totaled $3.9 million and $3.7 million at March 31, 2020 and December 31, 2019, respectively. No amounts of accrued interest receivable were reversed against interest income on investment securities during the three months ended March 31, 2020 or 2019.