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Borrowings

12 Months Ended

Jun. 30, 2024

Note 7: Borrowings

As of June 30, 2024, the Bank’s FHLB – San Francisco maximum borrowing capacity was approximately $516.0 million, which is limited to 40% of total assets reported on the Bank’s quarterly Call Report. This borrowing capacity was collateralized by pledges of certain real estate loans with an aggregate loan balance of $774.1 million and investment securities of $3.9 million. As of June 30, 2024, the Bank’s borrowings from the FHLB – San Francisco were $238.5 million, with varying maturity dates through the year 2028. In addition, the Bank utilizes its borrowing facility for letters of credit and for the Mortgage Partnership Finance (“MPF”) program credit enhancement. The outstanding letters of credit was $16.0 million and the outstanding MPF credit enhancement was $216,000 at June 30, 2024. As of June 30, 2024, the remaining borrowing capacity with the FHLB – San Francisco was $261.3 million.

As of June 30, 2023, the Bank’s FHLB – San Francisco maximum borrowing capacity was approximately $534.1 million, which is limited to 40% of total assets reported on the Bank’s quarterly Call Report. This borrowing capacity was collateralized by pledges of certain real estate loans with an aggregate loan balance of $967.6 million and investment securities of $4.2 million. As of June 30, 2023, the Bank’s borrowings from the FHLB – San Francisco were $235.0 million, with varying maturity dates through the year 2028. In addition, the Bank utilizes its borrowing facility for letters of credit and for the MPF program credit enhancement. The outstanding letters of credit were $11.0 million and the outstanding MPF credit enhancement was $216,000 at June 30, 2023. As of June 30, 2023, the remaining borrowing capacity with FHLB – San Francisco was $287.9 million.

In addition, as of June 30, 2024 and 2023, the Bank had $208.6 million and $139.0 million of borrowing capacity available from the discount window facility at the FRB of San Francisco, respectively, collateralized by investment securities and loans held for investment at June 30, 2024 and collateralized by investment securities only at June 30, 2023. As of June 30, 2024 and 2023, the Bank also had a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million at both dates. The Bank intends to request a renewal of its borrowing arrangement with the correspondent bank prior to maturity on June 30, 2025. As of both June 30, 2024 and 2023, there were no outstanding borrowings under the discount window facility or the federal funds facility.

Borrowings at June 30, 2024 and 2023 consisted of the following:


		June 30,
(In Thousands)		2024			2023

FHLB - San Francisco advances		$	238,500		$	235,009

As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco capital stock. At June 30, 2024 and 2023, the Bank held a stock investment of $9.6 million and $9.5 million, respectively, with no excess capital stock.

During fiscal 2024 and 2023, the Bank purchased $63,000 and $1.3 million of FHLB - San Francisco capital stock, respectively. In fiscal 2024 and 2023, the FHLB – San Francisco distributed $793,000 and $556,000 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)		2024			2023

Balance outstanding at the end of year:
FHLB - San Francisco advances		$	238,500		$	235,009

Weighted average rate at the end of year:
FHLB - San Francisco advances			4.88	%		4.34	%

Maximum amount of borrowings outstanding at any month end:
FHLB - San Francisco advances		$	242,500		$	235,009

Average short-term borrowings during the year with respect to:⁽¹⁾
FHLB - San Francisco advances		$	127,506		$	113,688

Weighted average short-term borrowing rate during the year with respect to:⁽¹⁾
FHLB - San Francisco advances			4.70	%		3.87	%

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

The aggregate annual contractual maturities of borrowings at June 30, 2024 and 2023 were as follows:


		June 30,
(Dollars in Thousands)		2024			2023
Within one year		$	145,500		$	150,009
Over one to two years			68,000			70,000
Over two to three years			10,000			10,000
Over three to four years			5,000			—
Over four to five years			10,000			5,000
Over five years			—			—
Total borrowings		$	238,500		$	235,009
Weighted average interest rate			4.88	%		4.34	%