FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

9 Months Ended

Sep. 30, 2020

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGSThe following table presents advances from the FHLB as of the dates indicated:


($ in thousands)	September 30, 2020				December 31, 2019
Fixed rate:
Outstanding balance	$	566,000		(1)	$	730,000
Interest rates ranging from	—		%	(2)	1.82		%
Interest rates ranging to	3.32		%		3.32		%
Weighted average interest rate	2.39		%		2.66		%
Variable rate:
Outstanding balance	$	—			$	465,000
Weighted average interest rate	—		%		1.66		%

(1)Excludes $6.5 million of unamortized debt issuance costs at September 30, 2020.

(2)Includes $10.0 million in FHLB recovery advances with an interest rate of 0.00%, consisting of $5.0 million with a maturity date of November 27, 2020 and $5.0 million with a maturity date of May 27, 2021.

Each advance is payable at its maturity date. Advances paid early are subject to a prepayment penalty. In June 2020, we repaid early a $100.0 million FHLB term advance with a weighted average interest rate of 2.07% and incurred a $2.5 million debt extinguishment fee that is included in other noninterest expense in the consolidated statements of operations. Additionally, in June 2020 we refinanced $111.0 million of FHLB term advances to take advantage of the rapid decline in market interest rates. At the end of the third quarter of 2020, FHLB advances included no overnight borrowings, $105.0 million maturing within three months, and $461.0 million maturing beyond three months with a weighted average life of 4.7 years and weighted average interest rate of 2.51%.

At September 30, 2020 and December 31, 2019, the Bank’s advances from the FHLB were collateralized by certain real estate loans with an aggregate unpaid principal balance of $2.41 billion and $3.05 billion. Based on this collateral, the Bank was eligible to borrow an additional $890.0 million at September 30, 2020.

The Bank’s investment in capital stock of the FHLB of San Francisco totaled $17.6 million and $32.3 million at September 30, 2020 and December 31, 2019.

During the second quarter of 2020, we expanded our existing secured borrowing capacity with the Federal Reserve Bank of San Francisco (“Federal Reserve”) by participating in its Borrower-in-Custody (“BIC”) program. As a result, our borrowing capacity with the Federal Reserve increased to $427.7 million at September 30, 2020. Prior to participating in the BIC program, the Bank only pledged securities as collateral for access to the discount window. At September 30, 2020, the Bank has pledged certain qualifying loans with an unpaid principal balance of $879.9 million and securities with a carrying value of $23.5 million as collateral for this line of credit. Borrowings under the BIC program are overnight advances with interest chargeable at the discount window (“primary credit”) borrowing rate. There were no borrowings under this arrangement for the three and nine months ended September 30, 2020 and 2019.

The Bank maintained available unsecured federal funds lines with five correspondent banks totaling $185.0 million, with no outstanding borrowings at September 30, 2020.

The Bank also maintained repurchase agreements and had no outstanding securities sold under agreements to repurchase at September 30, 2020 and December 31, 2019. Availabilities and terms on repurchase agreements are subject to the counterparties' discretion and the pledging of additional investment securities.