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SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
73
3.
SECURITIES AVAILABLE-FOR-SALE
(Continued)
The amortized cost and estimated fair value of securities available-for-sale at December 31, 2015 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
$ 3,657
$ 3,706
Maturing after one year through five years
242,719
244,733
Maturing after five years through ten years
50,144
51,308
Maturing after ten years
50,413
51,671
Securities not due at a single maturity date:
U.S Government agencies collateralized by
mortgage obligations
155,644
154,868
Other securities
575
1,296
503,152
$
507,582
$
Amortized Cost
Fair Value
(dollars in thousands)
Securities available-for-sale with amortized costs totaling $178,472,000 and estimated fair values totaling
$180,209,000 were pledged to secure other contractual obligations and short-term borrowing arrangements
at December 31, 2015 (see Note 9).
Securities available-for-sale with amortized costs totaling $137,160,000 and estimated fair values totaling
$140,611,000 were pledged to secure public deposits, other contractual obligations and short-term
borrowing arrangements at December 31, 2014 (see Note 9).
At December 31, 2015, the Company’s investment portfolio included securities issued by 231 different
government municipalities and agencies located within 27 states with a fair value of $102.2 million. The
largest exposure to any single municipality or agency was $2.5 million (fair value) in six bonds issued for
the renovation, modernization and construction of various school facilities by the Lindsay Unified School
District, to be repaid by future tax revenues.
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.