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Maturity andYieldof Available for Sale Investment Portfolio
(dollars in thousands)
Amount
Yield
Amount
Yield
Amount
Yield
Amount
Yield
Amount
Yield
US government agencies
500
$
3.39% 18,096
$
2.17% 8,083
$
2.49% 2,363
$
3.39% 29,042
$
2.38%
Mortgage-backed securities
1,788
1.78% 358,917
2.02% 13,925
2.69%
431
1.58% 375,061
2.05%
State and political subdivisions
3,207
6.14% 18,853
6.02% 31,245
4.36% 48,878
4.12% 102,183
4.61%
Other equity securities
-
-
-
-
-
-
1,296
-
1,296
-
Total securities
5,495
$
395,866
$
53,253
$
52,968
$
507,582
$
December 31, 2015
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 $47 million, or 3% of total assets
at December 31, 2015, and $48 million, or 3% of total assets at December 31, 2014. 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 pre-
dictable 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, interest-earning deposits in and borrowings
from the Federal Reserve Bank, and borrowings from 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 $42 million average for non-earning cash and due from banks in 2015 is $3 million higher
than the average for 2014, due primarily to cash on hand at the SCVB branches added in November 2014. The average
is expected to increase again in 2016, due to cash needed for additional branches coming online during the course of
the year.
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 depreciation
and amortization, and net book value of fixed assets by major category, for the years noted: