SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
72
3.
SECURITIES AVAILABLE-FOR-SALE
(Continued)
The amortized cost and estimated fair value of securities available-for-sale at December 31, 2014 by
contractual maturity are shown below. Expected maturities will differ from contractual maturities because
the issuers of the securities may have the right to call or prepay obligations with or without penalties.
Maturing within one year
$ 686
$ 694
Maturing after one year through five years
222,081
225,415
Maturing after five years through ten years
97,949
99,583
Maturing after ten years
54,531
55,705
Securities not due at a single maturity date:
U.S Government agencies collateralized by
mortgage obligations
128,107
128,264
Other securities
1,210
2,222
504,564
$
511,883
$
Amortized Cost
Fair Value
(dollars in thousands)
Securities available-for-sale with amortized costs totaling $137,160,000 and estimated fair values totaling
$140,611,000 were pledged to secure other contractual obligations and short-term borrowing
arrangements at December 31, 2014 (see Note 9).
Securities available-for-sale with amortized costs totaling $162,393,000 and estimated fair values totaling
$164,390,000 were pledged to secure public deposits, other contractual obligations and short-term
borrowing arrangements at December 31, 2013 (see Note 9).
At December 31, 2014, the Company’s investment portfolio included securities issued by 268 different
government municipalities and agencies located within 27 states with a fair value of $98.1 million. The
largest exposure to any single municipality or agency was a $3.8 million (fair value) bond issued for water
utility improvements by the Arizona State Water Infrastructure Finance Authority, to be repaid by future
water revenue.
The Company’s investments in bonds issued by states, municipalities and political subdivisions are
evaluated in accordance with Supervision and Regulation Letter 12-15 (SR 12-15) issued by the Board of
Governors of the Federal Reserve System, “Investing in Securities without Reliance on Nationally
Recognized Statistical Rating Organization Ratings”, and other regulatory guidance. Credit ratings are
considered in our analysis only as a guide to the historical default rate associated with similarly-rated
bonds. There have been no significant differences in our internal analyses compared with the ratings
assigned by the third party credit rating agencies.
