FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES

6 Months Ended

Jun. 30, 2020

Advances from Federal Home Loan Banks [Abstract]

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 June 30, 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 $459.6 million and $447.4 million as of June 30, 2020 and December 31, 2019, respectively, secure this borrowing arrangement. There were no borrowings outstanding with the FRB as of June 30, 2020 and December 31, 2019.

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


	Outstanding Balances						As of June 30, 2020
(Dollars in thousands)	June 30, 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	961,747		977,202		0.00	%	7.33	%	2.19	%	November 2020 to March 2030

	$	961,747	$	978,702

The Bank's available borrowing capacity based on pledged loans to the FRB and the FHLB totaled $780.3 million and $1.1 billion at June 30, 2020 and December 31, 2019, respectively. The decline in borrowing capacity between these periods was primarily due to the issuance of an additional FHLB letter of credit, as discussed below, and revisions in the borrowing capacity calculation at the FHLB, which were applicable to all FHLB members. As of June 30, 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 June 30, 2020. As of June 30, 2020 and December 31, 2019, the Bank had aggregate loan balances of $2.6 billion and $2.4 billion, respectively, available to pledge to the FRB and FHLB to increase its borrowing capacity.

Short-term borrowings are borrowings with original maturities of 90 days or less. During the three and six months ended June 30, 2020, there was a maximum amount of short-term borrowings outstanding of $34.0 million and $77.8 million, respectively, and an average amount outstanding of $4.1 million and $13.9 million, respectively, with a weighted average interest rate of 0.22% and 1.45%, respectively. During the three and six months ended June 30, 2019, there was a maximum amount of short-term borrowings outstanding of $78.0 million and $209.7 million, respectively, and an average amount outstanding of $52.3 million and $97.4 million, respectively, with a weighted average interest rate of 2.57% and 2.57%,

respectively.

The following table summarizes principal payments on FHLB advances over the next five years as of June 30, 2020 (dollars in thousands):


July 1 - December 31, 2020	$	5,000
2021	355,100
2022	100,000
2023	400,000
2024	—
Thereafter	101,647
	$	961,747