NOTE 4: SECURITIES

The following table provides a summary of the Company’s AFS securities portfolio at December 31:

		Amortized Cost		Gross Unrealized					Estimated Fair Value
(dollars in thousands)		Amortized Cost		Gains		Losses			Estimated Fair Value
2016:
US Treasury securities	$	300	$	—	$	(3	)	$	297
Agency mortgage-backed securities		476,163		160		(7,414	)		468,909
Beneficial interest – FHLMC securitization		42,028		711		(2,367	)		40,372
Total	$	518,491	$	871	$	(9,784	)	$	509,578
2015:
US Treasury securities	$	300	$	—	$	—		$	300
Agency notes		16,108		—		(95	)		16,013
Agency mortgage-backed securities		538,269		909		(3,030	)		536,148
Beneficial interest – FHLMC securitization		12,674		476		(476	)		12,674
Total	$	567,351	$	1,385	$	(3,601	)	$	565,135

The US Treasury Securities are pledged as collateral to the State of California to meet regulatory requirements related to the Bank’s trust operations.

The table below indicates, as of December 31, 2016, the gross unrealized losses and fair values of our investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Securities with Unrealized Loss at December 31, 2016
(dollars in thousands)	Less than 12 months					12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
US Treasury securities		297		(3	)		—		—		297		(3	)
Agency mortgage backed securities		445,591		(7,414	)		—		—		445,591		(7,414	)
Beneficial interest – FHLMC securitization		18,636		(2,367	)		—		—		18,636		(2,367	)
Total temporarily impaired securities	$	464,524	$	(9,784	)	$	—	$	—	$	464,524	$	(9,784	)

Unrealized losses on US Treasury securities, agency notes and agency mortgage-backed securities have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell and it is not more likely than not that management would 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. The fair value is expected to recover as the bonds approach maturity.

The scheduled maturities of securities AFS, other than agency mortgage backed securities, and the related weighted average yield is as follows as of December 31, 2016:

(dollars in thousands)	Less than 1 Year			1 Through 5 years			5 Through 10 Years			After 10 Years			Total
Amortized Cost:
US Treasury securities	$	—		$	300		$	—		$	—		$	300
Weighted average yield		—	%		0.90	%		—	%		—	%		0.90	%
Estimated Fair Value:
US Treasury securities	$	—		$	297		$	—		$	—		$	297
Total	$	—		$	297		$	—		$	—		$	297

Agency mortgage backed securities and beneficial interests in FHLMC securitizations are excluded from the above table because such securities are not due at a single maturity date. The weighted average yield of the agency mortgage backed securities and beneficial interests in FHLMC securitizations as of December 31, 2016 was 2.58%.