Borrowings and FHLB Stock

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Borrowings and FHLB Stock

Borrowings and FHLB StockThe Company utilizes a loan agreement with the FHLB of Des Moines. The terms of the agreement call for a blanket pledge of a portion of the Company’s mortgage and commercial and multifamily loan portfolio based on the outstanding balance. At June 30, 2020 and December 31, 2019, the amount available to borrow under this credit facility was $332.0 million and $321.9 million, respectively, subject to eligible pledged collateral. At June 30, 2020, the credit facility was collateralized as follows:  one-to-four family mortgage loans with an advance equivalent of $109.9 million, commercial and multifamily mortgage loans with an advance equivalent of $130.0 million and home equity loans with an advance equivalent of $5.8 million. At December 31, 2019, the credit facility was collateralized as follows:  one-to-four family mortgage loans with an advance equivalent of $111.4 million, commercial and multifamily mortgage loans with an advance equivalent of $126.1 million and home equity loans with an advance equivalent of $6.9 million.  The Company had outstanding borrowings under this arrangement of $7.5 million at both June 30, 2020 and December 31, 2019. The weighted-average interest rate of our borrowings was 3.05% at both June 30, 2020 and December 31, 2019. Additionally, the Company had outstanding letters of credit from the FHLB of Des Moines with a notional amount of $19.6 million and $19.1 million at June 30, 2020 and December 31, 2019, respectively, to secure public deposits. The remaining amount available to borrow as of June 30, 2020 and December 31, 2019, was $218.7 million and $217.8 million, respectively.

As a member of the FHLB, the Company is required to maintain a minimum level of investment in FHLB of Des Moines stock based on specific percentages of its outstanding FHLB advances. At June 30, 2020 and December 31, 2019, the Company had an investment of $1.2 million in FHLB of Des Moines stock.

The Company participates in the Federal Reserve Bank Borrower-in-Custody program, which gives the Company access to the discount window and the PPP Liquidity Facility. The terms of both programs call for a pledge of specific assets. The Company pledges commercial and consumer loans as collateral for this borrower-in-custody line of credit. The Company had unused borrowing capacity of $33.4 million and $41.7 million and no outstanding borrowings under this program at June 30, 2020 and December 31, 2019, respectively. At June 30, 2020, the Company pledged $72.3 million PPP loans supporting the same amount of borrowings under the PPP Liquidity Facility.

The Company has access to an unsecured Fed Funds line of credit from Pacific Coast Banker’s Bank. The line has a 1 year term maturing on June 30, 2021 and is renewable annually. As of June 30, 2020, the amount available under this line of credit was $10.0 million. There was no balance on this line of credit as of June 30, 2020 and December 31, 2019, respectively.

The Company has access to an unsecured Fed Funds line of credit from The Independent Bank. As of June 30, 2020, the amount available under this line of credit was $10.0 million. The agreement may be terminated by either party. There was no balance on this line of credit as of June 30, 2020 and December 31, 2019, respectively.