Borrowings

12 Months Ended

Jun. 30, 2012

Borrowings:

Borrowings

8.   Borrowings:

Advances from the FHLB – San Francisco, which mature on various dates through 2021, are collateralized by pledges of certain real estate loans with an aggregate balance at June 30, 2012 and 2011 of $819.4 million and $923.1 million, respectively.  In addition, the Bank pledged investment securities totaling $1.1 million at June 30, 2012 to collateralize its FHLB – San Francisco advances under the Securities-Backed Credit (“SBC”) program as compared to $985,000 at June 30, 2011.  At June 30, 2012, the Bank’s FHLB – San Francisco borrowing capacity, which is limited to 35% of total assets reported on the Bank’s quarterly Call Report, was approximately $450.4 million as compared to $468.6 million at June 30, 2011 which was similarly limited.  As of June 30, 2012 and 2011, the remaining/available borrowing facility was $310.9 million and $245.9 million, respectively, and the remaining/available collateral was $409.0 million and $372.9 million, respectively.  As of June 30, 2012 and 2011, the Bank has also secured a $20.2 million and $23.1 million discount window facility, respectively, at the Federal Reserve Bank of San Francisco, collateralized by investment securities with a fair market value of $21.2 million and $24.3 million, respectively.

Borrowings at June 30, 2012 and 2011 consisted of the following:

(In Thousands)	June 30,
	2012	2011
FHLB – San Francisco advances	$ 126,546	$ 206,598

In addition to the total borrowings described above, the Bank utilized its borrowing facility for letters of credit and MPF credit enhancement.  The outstanding letters of credit at June 30, 2012 and 2011 were $10.0 million and $13.0 million, respectively; and the outstanding MPF credit enhancement at these dates was $3.0 million and $3.1 million, respectively.

As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco capital stock.  The Bank held the required stock investment of $9.4 million and excess capital stock of $12.9 million at June 30, 2012, as compared to the required investment of $14.0 million and excess investment of $13.0 million at June 30, 2011.

In fiscal 2012 and 2011, the FHLB – San Francisco redeemed $4.7 million and $4.8 million of excess capital stock.  In fiscal 2012, 2011 and 2010, the FHLB – San Francisco distributed $99,000, $110,000 and $112,000 of cash dividends, respectively, to the Bank.

The following tables set forth certain information regarding borrowings by the Bank at the dates and for the years indicated:

		At or For the Year Ended June 30,
(Dollars in Thousands)		2012	2011	2010
Balance outstanding at the end of year:
	FHLB – San Francisco advances	$ 126,546	$ 206,598	$ 309,647
Weighted-average rate at the end of year:
	FHLB – San Francisco advances	3.53%	3.77%	4.13%
Maximum amount of borrowings outstanding at any month end:
	FHLB – San Francisco advances	$ 216,577	$ 309,643	$ 456,688
Average short-term borrowings during the year
with respect to (1):
	FHLB – San Francisco advances	$   57,500	$ 110,833	$ 103,833
Weighted-average short-term borrowing rate during the year
with respect to (1):
	FHLB – San Francisco advances	3.54%	4.32%	4.23%

(1) Borrowings with a remaining term of 12 months or less.

The aggregate annual contractual maturities of borrowings at June 30, 2012 and 2011 are as follows:

(Dollars in Thousands)	June 30,
	2012	2011
Within one year	$   20,000	$   90,000
Over one to two years	65,000	20,000
Over two to three years	-	65,000
Over three to four years	-	-
Over four to five years	-	-
Over five years	41,546	31,598
Total borrowings	$ 126,546	$ 206,598
Weighted average interest rate	3.53%	3.77%