FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

9 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

At September 30, 2016, $700.0 million of the Bank's advances from the FHLB were fixed-rate and had interest rates ranging from 0.40 percent to 1.61 percent with a weighted average interest rate of 0.54 percent and $70.0 million of the Bank’s advances from the FHLB were variable-rate and had a weighted average interest rate of 0.38 percent. At December 31, 2015, $200.0 million of the Bank’s advances from the FHLB were fixed-rate and had interest rates ranging from 0.50 percent to 1.61 percent with a weighted average interest rate of 0.89 percent, and $730.0 million of the Bank’s advances from the FHLB were variable-rate and had a weighted average interest rate of 0.27 percent.

Each advance is payable at its maturity date. Advances paid early are subject to a prepayment penalty. At September 30, 2016 and December 31, 2015, the Bank’s advances from the FHLB were collateralized by certain real estate loans with an aggregate unpaid principal balance of $3.79 billion and $3.38 billion, respectively. The Bank’s investment in capital stock of the FHLB of San Francisco totaled $43.3 million and $39.2 million at September 30, 2016 and December 31, 2015, respectively. Based on this collateral and the Bank’s holdings of FHLB stock, the Bank was eligible to borrow an additional $2.24 billion at September 30, 2016.

The Bank maintained a line of credit of $148.2 million from the Federal Reserve Discount Window, to which the Bank pledged loans with a carrying value of $7.8 million and securities with a carrying value of $158.7 million with no outstanding borrowings at September 30, 2016. The Bank maintained available unsecured federal funds lines with correspondent banks totaling $210.0 million at September 30, 2016. The Bank also maintained unused uncommitted repurchase agreements and had no outstanding securities sold under agreements to repurchase at September 30, 2016 and December 31, 2015. Availabilities and terms on repurchase agreements are subject to the counterparties' discretion and pledging additional investment securities.

Banc of California, Inc. maintains a line of credit of $75.0 million with an unaffiliated financial institution. The line has a maturity date of April 18, 2017 and a floating interest rate equal to a LIBOR rate plus 2.25 percent or a prime rate. The proceeds of the line are to be used for working capital purposes. The Company had $50.0 million of outstanding borrowings under this line of credit at September 30, 2016. On November 29, 2016, the Company received, from the administrative agent and the lenders under the Company’s line of credit agreement, a waiver of the requirement under the credit agreement that the Company deliver its consolidated financial statements as of and for the three- and nine- month periods ended September 30, 2016 (the September 30, 2016 Financial Statements) to the administrative agent within 60 days after that date. The waiver effectively extended the time for delivering the September 30, 2016 Financial Statements to January 26, 2017. On January 25, 2017, the Company and the administrative agent and lenders under the credit agreement entered into an amendment to the line of credit agreement that further extended the time for the Company to deliver the September 30, 2016 Financial Statements to March 1, 2017.