Borrowing Arrangements

6 Months Ended

Jun. 30, 2024

Borrowing Arrangements

Borrowing Arrangements

11) Borrowing Arrangements

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

HBC has off-balance sheet liquidity in the form of Federal funds purchase arrangements with correspondent banks, and lines of credit from the FHLB and FRB. 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 can also borrow from the FRB discount window. The following table shows the collateral value of loans and securities pledged for the lines of credit (if collateralized), total available lines of credit, the amounts outstanding, and the remaining available for the periods indicated:

	June 30, 2024
	Collateral		Total					Remaining
	Value		Available		Outstanding			Available
	(Dollars in thousands)
FHLB collateralized borrowing capacity	$	1,236,253	$	792,027	$	—	$	792,027
FRB discount window collateralized line of credit		1,797,763		1,404,998		—		1,404,998
Federal funds purchase arrangements		N/A		90,000		—		90,000
Holding company line of credit		N/A		20,000		—		20,000
	$	3,034,016	$	2,307,025	$	—	$	2,307,025

	December 31, 2023
	Collateral		Total					Remaining
	Value		Available		Outstanding			Available
	(Dollars in thousands)
FHLB collateralized borrowing capacity	$	1,600,371	$	1,100,931	$	—	$	1,100,931
FRB discount window collateralized line of credit		1,658,642		1,235,573		—		1,235,573
Federal funds purchase arrangements		N/A		90,000		—		90,000
Holding company line of credit		N/A		20,000		—		20,000
Total	$	3,259,013	$	2,446,504	$	—	$	2,446,504

HBC may also utilize securities sold under repurchase agreements to manage its liquidity position. There were no securities sold under agreements to repurchase at June 30, 2024 and December 31, 2023.

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 $423,000, totaled $39,577,000 at June 30, 2024, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Board.