44
Maturity andYieldof Available for Sale Investment Portfolio
(dollars in thousands)
Amount
Yield
Amount
Yield
Amount
Yield
Amount
Yield
Amount
Yield
US government agencies
-
$
0.00% 10,346
$
2.03% 12,763
$
2.47% 4,161
$
3.02% 27,270
$
2.39%
Mortgage-backed securities
3,471
2.40% 325,082
2.20% 52,425
2.56%
464
3.02% 381,442
2.25%
State and political subdivisions
694
5.74% 14,795
6.00% 34,395
4.91% 51,065
4.07% 100,949
4.65%
Other equity securities
-
-
-
-
-
-
2,222
-
2,222
-
Total securities
4,165
$
350,223
$
99,583
$
57,912
$
511,883
$
December 31, 2014
Within One Year
After One But Within Five
Years
After Five Years But Within
Ten Years
After Ten Years
Total
Cash and Due from Banks
Cash on hand and non-interest bearing balances due from correspondent banks totaled $48 million, or 3% of total
assets at December 31, 2014, and $51 million, or 4% of total assets at December 31, 2013. The actual balance of
cash and due from banks at any given time depends on the timing of collection of outstanding cash items (checks),
among other things, and is subject to significant fluctuation in the normal course of business. While cash flows are
normally predictable within limits, those limits are fairly broad and the Company manages its short-term cash
position through the utilization of overnight loans to and borrowings from correspondent banks, the Federal Reserve
Bank and the Federal Home Loan Bank. Should a large “short” overnight position persist for any length of time, the
Company typically raises money through focused retail deposit gathering efforts or by adding brokered time deposits.
If a “long” position is prevalent, the Company will let brokered deposits or other wholesale borrowings roll off as
they mature, or might invest excess liquidity in higher-yielding, longer-term bonds. Because of frequent balance
fluctuations, a more accurate gauge of cash management efficiency is the average balance for the period. Our $39
million average for non-earning cash and due from banks in 2014 is slightly higher than the average for 2013, and the
average is expected to increase again in 2015 due to cash needed for the SCVB branches added in November 2014.
Premises and Equipment
Premises and equipment are stated on our books at cost, less accumulated depreciation and amortization. The cost of
furniture and equipment is expensed as depreciation over the estimated useful life of the related assets, and leasehold
improvements are amortized over the term of the related lease or the estimated useful life of the improvements,
whichever is shorter. The following premises and equipment table reflects the original cost, accumulated deprecia-
tion and amortization, and net book value of fixed assets by major category, for the years noted:
Premises andEquipment
(dollars in thousands)
Land
3,019
$
-
$
3,019
$
2,607 $
-
$
2,607
$
2,607 $
-
$
2,607
$
Buildings
16,348
8,105
8,243
15,818
7,689
8,129
15,720
7,259
8,461
Furniture and equipment
18,397
13,919
4,478
17,829
14,487
3,342
20,476
16,562
3,914
Leasehold improvements
10,850
4,784
6,066
10,536
4,226
6,310
10,496
3,652
6,844
Construction in progress
47
-
47
5
-
5
4
-
4
Total
48,661
$
26,808
$
21,853
$
46,795 $
26,402
$
20,393
$
49,303 $
27,473
$
21,830
$
2014
2013
2012
Cost
Accumulated
Depreciation and
Ammortization Net Book Value Cost
Accumulated
Depreciation and
Ammortization Net Book Value Cost
Accumulated
Depreciation and
Ammortization Net Book Value
As of December 31,
