Borrowing Arrangements

12 Months Ended

Dec. 31, 2023

Borrowing Arrangements

Borrowing Arrangements

10) Borrowing Arrangements

Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit

HBC maintains a collateralized line of credit with the FHLB of San Francisco. Under this line, the Company can borrow from the FHLB on a short-term (typically overnight) or long-term (over one year) basis. HBC had $1,217,249,000 of loans and $383,194,000 of securities pledged to the FHLB as collateral on a line of credit of $1,100,931,000 at December 31, 2023, none of which was outstanding. HBC had $254,243,000 of loans and $1,085,000 of securities and pledged to the FHLB as collateral on a line of credit of $162,631,000 at December 31, 2022, none of which was outstanding.

HBC can also borrow from the FRB’s discount window. HBC had approximately $1,658,642,000 of loans and securities pledged to the FRB as collateral on an available line of credit of approximately $1,235,573,000 at December 31, 2023, none of which was outstanding. HBC had approximately $1,000,207,000 of loans pledged to the FRB as collateral on an available line of credit of approximately $676,878,000 at December 31, 2022, none of which was outstanding.

At December 31, 2023, HBC had Federal funds purchase arrangements available of $90,000,000. There were no Federal funds purchased outstanding at December 31, 2023 and 2022.

HCC has a $20,000,000 line of credit with a correspondent bank, of which none was outstanding at December 31, 2023 and 2022.  

HBC may also utilize securities sold under repurchase agreements to manage our liquidity position. There were no securities sold under agreements to repurchase at December 31, 2023, and 2022.

Subordinated Debt

On May 11, 2022, the Company completed a private placement offering of $40,000,000 aggregate principal amount of its 5.00% fixed-to-floating rate subordinated notes due May 15, 2032 (“Sub Debt due 2032”). The Company used the net proceeds of the Sub Debt due 2032 for general corporate purposes, including the repayment on June 1, 2022 of the Company’s $40,000,000 aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due June 1, 2027. The Sub Debt due 2032, net of unamortized issuance costs of $498,000, totaled $39,502,000 at December 31, 2023, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Bank. The debt issuance costs are amortized on a straight line basis through the maturity date of the subordinated notes.