Borrowings and Other Arrangements

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Borrowings and Other Arrangements

Note 11 – Borrowings and Other Arrangements

Federal Funds Purchased – The Company had unsecured available lines of credit with correspondent banks for short-term borrowings totaling $305.0 million at September 30, 2022 and December 31, 2021. In general, interest rates on these lines approximate the federal funds target rate. We had no borrowings under these credit facilities at September 30, 2022 or December 31, 2021.

Federal Home Loan Bank Borrowings – As of September 30, 2022 and December 31, 2021, the Company had available lines of credit with the FHLB totaling $724.0 million and $787.5 million, respectively, based on eligible collateral of certain loans. At September 30, 2022 and December 31, 2021 the Company had $103.1 million and $0 in FHLB overnight borrowings, respectively.

Federal Reserve Line of Credit – The Company has an available line of credit with the Federal Reserve Bank of San Francisco secured by certain loans. At September 30, 2022 and December 31, 2021 the Company had borrowing capacity under this line totaling $34.2 million and $50.6 million, respectively. We had no outstanding borrowings on this line of credit as of September 30, 2022 and December 31, 2021.

Long-Term Debt – The Company has long-term debt in the form of fixed to floating rate subordinated debentures with a fixed rate of 3.25% until September 30, 2026, then floating rate at 253.5 basis points over 3-month term SOFR until maturity on October 1, 2031. The balance of the Company’s long-term debt, net of unamortized issuance costs, at September 30, 2022 and December 31, 2021 was $49.2 million and $49.1 million, respectively.

Subordinated Debentures - Sierra Statutory Trust II (“Trust II”), Sierra Capital Trust III (“Trust III”), and Coast Bancorp Statutory Trust II (“Trust IV”), (collectively, the “Trusts”) exist solely for the purpose of issuing trust preferred securities fully and unconditionally guaranteed by the Company. For financial reporting purposes, the Trusts are not consolidated, and the Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) held by the Trusts and issued and guaranteed by the Company are reflected in the Company’s consolidated balance sheet in accordance with provisions of ASC Topic 810. At September 30, 2022 and December 31, 2021 the Company’s trust preferred securities totaled $35.4 million and $35.3 million, respectively.