Note 11 - Borrowing Arrangements

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 11 - BORROWING ARRANGEMENTS

The Company has established secured and unsecured lines of credit. The Company may borrow funds from time to time on a term or overnight basis from the Federal Home Loan Bank of San Francisco ("FHLB"), the Federal Reserve Bank of San Francisco ("FRB") and other financial institutions as indicated below.

Federal Funds Arrangements with Commercial Banks. At September 30, 2023, the Company may borrow on an unsecured basis, up to $92.0 million from other financial institutions.

Letter of Credit Arrangements. At September 30, 2023, the Company had an unsecured commercial letter of credit line with another financial institution for $2.0 million.

FRB Secured Line of Credit. The secured borrowing capacity with the FRB of $41.9 million at September 30, 2023 is collateralized by loans pledged with a carrying value of $63.3 million.

FHLB Secured Line of Credit and Advances. The secured borrowing capacity with the FHLB of $1.1 billion at September 30, 2023 is pledged by residential and commercial loans with a carrying value of $1.5 billion. At September 30, 2023, the Company had no overnight advances but long-term (five year original term) advances of $150.0 million at a weighted average rate of 1.18% with the FHLB. The Company paid interest expenses of $440,000 and $1.0 million on such FHLB advances for the three months ended September 30, 2023 and 2022, respectively, and $2.4 million and $2.0 million on such FHLB advances for the nine months ended September 30, 2023 and 2022, respectively. There were no other borrowing arrangements other than FHLB advances as of September 30, 2023 and at December 31, 2022. On May 3, 2023, the FHLB issued a letter of credit of $30.0 million on behalf of the Bank for a certificate of deposit of $30.0 million from the State of California. The letter of credit expired on  August 31, 2023.