FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES

3 Months Ended

Mar. 31, 2020

FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES

The Bank may borrow from the FHLB, on either a short-term or long-term basis, up to 40% of its assets provided that adequate collateral has been pledged. As of March 31, 2020 and December 31, 2019, the Bank had pledged various mortgage loans totaling approximately $2.3 billion and $2.2 billion, respectively, as well as the FHLB stock held by the Bank to secure these borrowing arrangements.

The Bank has access to the Loan and Discount Window of the Federal Reserve Bank of San Francisco ("FRB"). Advances under this window are subject to the Bank providing qualifying collateral. Various mortgage loans totaling approximately $422.7 million and $447.4 million as of March 31, 2020 and December 31, 2019, respectively, secure this borrowing arrangement. There were no borrowings outstanding with the FRB as of March 31, 2020 and December 31, 2019.

The following table discloses the Bank’s outstanding advances from the FHLB of San Francisco:



	Outstanding Balances				As of March 31, 2020
(Dollars in thousands)	March 31, 2020		December 31, 2019		Minimum Interest Rate		Maximum Interest Rate		Weighted Average Rate		Maturity Dates
Fixed rate short-term	$	—	$	1,500	—	%	—	%	—	%	N/A
Fixed rate long-term	953,694		977,202		1.25	%	7.69	%	2.23	%	February 2021 to August 2032
	$	953,694	$	978,702

The Bank's available borrowing capacity based on pledged loans to the FRB and the FHLB totaled $810.0 million and $1.1 billion at March 31, 2020 and December 31, 2019, respectively. The decline in borrowing capacity during the quarter ended March 31, 2020 was primarily due to the additional FHLB letter of credit, as discussed below, and a revision in the borrowing capacity calculation at the FHLB. As of March 31, 2020 and December 31, 2019, the Bank pledged as collateral a $62.6 million FHLB letter of credit to Freddie Mac related to our multifamily securitization reimbursement obligation. In addition, the Bank pledged as collateral a $125.0 million FHLB letter of credit to the State of California Treasurer's Office in connection with a time deposit at March 31, 2020.

Short-term borrowings are borrowings with original maturities of 90 days or less. During the three months ended March 31, 2020, there was a maximum amount of short-term borrowings outstanding of $77.8 million and an average amount outstanding of $23.8 million, with a weighted average interest rate of 1.66%.

The following table summarizes principal payments on FHLB advances over the next five years as of March 31, 2020 (dollars in thousands):



April 1 - December 31, 2020	$	—
2021	350,700
2022	100,000
2023	400,750
2024	—
Thereafter	102,244
	$	953,694