FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

3 Months Ended

Mar. 31, 2017

Banking and Thrift [Abstract]

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

At March 31, 2017, $200.0 million of the Bank's advances from the FHLB were fixed-rate and had interest rates ranging from 0.86 percent to 3.00 percent with a weighted average interest rate of 2.08 percent and $880.0 million of the Bank’s advances from the FHLB were variable-rate and had a weighted average interest rate of 0.78 percent. At December 31, 2016, $150.0 million of the Bank’s advances from the FHLB were fixed-rate and had interest rates ranging from 0.69 percent to 1.61 percent with a weighted average interest rate of 1.02 percent, and $340.0 million of the Bank’s advances from the FHLB were variable-rate and had a weighted average interest rate of 0.52 percent.

Each advance is payable at its maturity date. Advances paid early are subject to a prepayment penalty. At March 31, 2017 and December 31, 2016, the Bank’s advances from the FHLB were collateralized by certain real estate loans with an aggregate unpaid principal balance of $2.89 billion and $3.27 billion, respectively, and securities with carrying values of $696.5 million and $321.0 million, respectively. The Bank’s investment in capital stock of the FHLB of San Francisco totaled $37.1 million and $41.9 million at March 31, 2017 and December 31, 2016, respectively. Based on this collateral and the Bank’s holdings of FHLB stock, the Bank was eligible to borrow an additional $1.80 billion at March 31, 2017.

The Bank maintained a line of credit of $191.8 million from the Federal Reserve Discount Window, to which the Bank pledged loans with a carrying value of $9.5 million and securities with a carrying value of $197.6 million with no outstanding borrowings at March 31, 2017. The Bank maintained available unsecured federal funds lines with correspondent banks totaling $210.0 million at March 31, 2017.

The Bank also maintained repurchase agreements and had an outstanding amount of $26.3 million with a weighted average interest rate of 1.93 percent at March 31, 2017. The interest rates are fixed for the term of the agreements, with interest rates ranging from 1.83 percent to 1.98 percent. All outstanding repurchase agreements are short-term in nature with original maturities of 30 days or less. The Company did not have any outstanding securities sold under agreements to repurchase at December 31, 2016. These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of collateralized loan obligations with a fair value of $30.2 million at March 31, 2017. 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 July 17, 2017 (the original maturity date was 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 $68.0 million of outstanding borrowings under this line of credit at March 31, 2017. On April 17, 2017, the Company and the administrative agent and the lender entered into an amendment of the credit agreement that extended the maturity date from April 18, 2017 to July 17, 2017.