NOTE 11 – BORROWINGS

CalFirst Bank is a member of the Federal Home Loan Bank of San Francisco and can take advantage of FHLB programs for overnight and term advances at published daily rates. Under terms of a blanket collateral agreement, advances from the FHLB are collateralized by qualifying real estate loans and investment securities. The Bank also has authority to borrow from the Federal Reserve Bank (“FRB”) discount window amounts secured by certain lease receivables. Borrowing capacity from the FHLB or FRB may fluctuate based upon the acceptability and risk rating of securities, loan and lease collateral and both the FRB and FHLB could adjust advance rates applied to such collateral at their discretion.

The borrowings from the FHLB and weighted average interest rates at September 30, 2016 and June 30, 2016 were as follows:

	September 30, 2016					June 30, 2016
(dollars in thousands)	Amount		Weighted Average Rate			Amount		Weighted Average Rate

Short-term borrowings
FHLB advances	$	40,000		0.43	%	$	40,000		0.42	%

At September 30, 2016, there was available borrowing capacity from the FHLB of $36.5 million related to qualifying real estate loans of $6.7 million and securities pledged with an amortized cost of $77.3 million. There were no borrowings from the FRB, leaving availability of approximately $97.3 million secured by $123.9 million of lease receivables.