FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES

9 Months Ended

Sep. 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 September 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 $443.3 million and $447.4 million as of September 30, 2020 and December 31, 2019, respectively, secure this borrowing arrangement. There were no borrowings outstanding with the FRB as of September 30, 2020 or December 31, 2019.

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


	Outstanding Balances				As of September 30, 2020
(Dollars in thousands)	September 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 $877.4 million and $1.1 billion at September 30, 2020 and December 31, 2019, respectively. The decline in borrowing capacity between these periods was primarily due to revisions in the borrowing capacity calculation at the FHLB, which were applicable to all FHLB members. As of September 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. As of September 30, 2020 and December 31, 2019, the Bank had aggregate loan balances of $2.0 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 nine months ended September 30, 2020, there was a maximum amount of short-term borrowings outstanding of $77.8 million and an average amount outstanding of $9.2 million, with a weighted average interest rate of 1.45%, respectively. There were no short-term borrowings outstanding during the three months ended September 30, 2020. During the three and nine months ended September 30, 2019, there was a maximum amount of short-term borrowings outstanding of $28.1 million and $209.8 million, respectively, and an average amount outstanding of $1.8 million and $65.2 million, respectively, with a weighted average interest rate of 2.44% and 2.57%, respectively.

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


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