Borrowings

12 Months Ended

Dec. 31, 2019

BORROWINGS

The Company maintains a line of credit with the Federal Home Loan Bank (“FHLB”) of San Francisco as a secondary source of funds. The borrowing capacity with the FHLB is limited to the lower of 25% of the Bank’s total assets or the Bank’s collateral capacity, which was $3.85 billion and $3.81 billion at December 31, 2019 and 2018, respectively. The terms of this credit facility require the Company to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances. The Company also has an unsecured credit facility with the FHLB that totaled $95.0 million at December 31, 2019.

At December 31, 2019 and December 31, 2018, real estate secured loans with a carrying amount of approximately $6.76 billion and $6.01 billion, respectively, were pledged at the FHLB for outstanding advances and remaining borrowing capacity. At December 31, 2019 and 2018, other than FHLB stock, no securities were pledged as collateral at the FHLB. The purchase of FHLB stock is a prerequisite to become a member of the FHLB system, and the Company is required to own a certain amount of FHLB stock based on outstanding borrowings.

At December 31, 2019 and 2018, FHLB advances totaling $625.0 million and $821.3 million, and had a weighted average effective interest rate of 1.84% and 1.78%, respectively. At December 31, 2019 $475.0 million in advances had fixed interest rates until maturity and $150.0 million in advances had variable interest rates as the advances were on an overnight basis. FHLB advances at December 31, 2019 had various maturities through December 2022. The interest rates on FHLB advances as of December 31, 2019 ranged between 1.35% and 2.39%. At December 31, 2019, the Company’s remaining borrowing capacity with the FHLB was $3.19 billion.

At December 31, 2019, the contractual maturities for outstanding FHLB advances were as follows:



	December 31, 2019
Scheduled maturities in:	(Dollars in thousands)
2020	$	335,000
2021	145,000
2022	145,000
Total	$	625,000

As a member of the Federal Reserve Bank (“FRB”) system, the Bank may also borrow from the FRB of San Francisco. The maximum amount that the Bank may borrow from the FRB’s discount window is up to 95% of the fair market value of the qualifying loans and securities that are pledged. At December 31, 2019, the outstanding principal balance of the qualifying loans pledged at the FRB was $947.2 million and there were no investment securities pledged. At December 31, 2019 and December 31, 2018, the total available borrowing capacity at the FRB discount window was $740.6 million and $786.6 million, respectively. There were no borrowings outstanding at the FRB discount window as of December 31, 2019 and December 31, 2018.