Junior Subordinated Debentures

3 Months Ended

Mar. 31, 2020

As part of the acquisition of Washington Banking Company on May 1, 2014, the Company assumed trust preferred securities and junior subordinated debentures with a total fair value of $18.9 million at the merger date. At March 31, 2020 and December 31, 2019, the balance of the junior subordinated debentures, net of unaccreted discount, was $20.7 million and $20.6 million, respectively.

The adjustable rate of the trust preferred securities at March 31, 2020 was 3.01%. The following table presents the weighted average rate of the junior subordinated debentures for the periods indicated:



	Three Months Ended March 31,
	2020		2019
Weighted average rate ⁽¹⁾	5.56	%	7.06	%

⁽¹⁾

The weighted average rate includes the accretion of the discount established at the merger date which is amortized over the life of the trust preferred securities.

Other Borrowings

(a) FHLB

The FHLB functions as a member-owned cooperative providing credit for member financial institutions. At March 31, 2020, the Bank maintained a credit facility with the FHLB with available borrowing capacity of $898.5 million. At March 31, 2020 and December 31, 2019 the Bank had no FHLB advances outstanding.

The following table sets forth the details of FHLB advances during the three months ended March 31, 2020 and 2019:



	Three Months Ended March 31,
	2020			2019
	(In thousands)
FHLB Advances:
Average balance during the period	$	989		$	1,849
Maximum month-end balance during the period	$	—		$	25,000
Weighted average rate during the period	0.41		%	3.29		%

Advances from the FHLB are collateralized by a blanket pledge on FHLB stock owned by the Bank, deposits at the FHLB, certain commercial real estate and one-to-four single family residential loans, investment securities which are obligations of or guaranteed by the United States or other assets. In accordance with the pledge agreement, the Company must maintain unencumbered collateral in an amount equal to varying percentages ranging from 100% to 160% of outstanding advances depending on the type of collateral.

(b) Federal Funds Purchased

The Bank maintains advance lines with Wells Fargo Bank, US Bank, The Independent Bankers Bank, Pacific Coast Bankers’ Bank and JP Morgan Chase to purchase federal funds of up to $140.0 million as of March 31, 2020. The lines generally mature annually or are reviewed annually. As of March 31, 2020 and December 31, 2019, there were no federal funds purchased.

The Bank maintains a credit facility with the Federal Reserve Bank with available borrowing capacity of $74.0 million as of March 31, 2020. There were no borrowings outstanding as of March 31, 2020 and December 31, 2019. Any advances on the credit facility would have to be first secured by the Bank's investment securities or loans receivable.