Federal Home Loan Bank Borrowings

12 Months Ended

Dec. 31, 2016

FEDERAL HOME LOAN BANK BORROWINGS [Abstract]

Federal Home Loan Bank Advances, Disclosure [Text Block]

FEDERAL HOME LOAN BANK BORROWINGS

The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Boston. As a member of the FHLB of Boston, the Bank has access to short- and long-term borrowings. Borrowings from the FHLB are secured by the Bank’s stock investment in the FHLB and a blanket lien on “qualified collateral” defined principally as a percentage of the principal balance of certain types of mortgage loans. The stock investment cannot be used for additional borrowing collateral. The percentage of collateral valuation from the FHLB varies between 50% and 80% based on the underlying collateral. The Bank had loans pledged as collateral with a book value of $2.3 billion and $2.2 billion at December 31, 2016 and 2015, respectively. The Bank had borrowings outstanding of $734.2 million and $461.3 million at December 31, 2016 and 2015, respectively. Based on the collateral and the valuations applied, less the borrowings outstanding, the Bank had available credit with the FHLB of Boston of $0.9 billion and $1.2 billion at December 31, 2016 and 2015, respectively.

A summary of borrowings from the FHLBs is as follows:

	December 31, 2016
	Amount		Weighted Average Rate
	(In thousands)
Within 1 year	$	490,271	0.94	%
Over 1 to 2 years	129,850		1.48	%
Over 2 to 3 years	39,893		1.37	%
Over 3 to 4 years	54,365		2.89	%
Over 4 to 5 years	10,187		2.26	%
Over 5 years	9,639		2.56	%
Total	$	734,205	1.24	%

As of December 31, 2016 and 2015, FHLB borrowings of $5.0 million and $11.0 million, respectively, are callable by the FHLB prior to maturity.

FHLB Stock

As a member of the FHLB, the Bank is required to own FHLB stock based on a percentage of outstanding advances in addition to a membership stock ownership requirement. For the borrowings with the FHLB of Boston, the Bank is required to own FHLB stock of at least 3.0% to 4.5% of outstanding advances depending on the terms of the advance. In addition, the Bank is required to have a minimum membership stock investment which is based on a percentage of certain assets as reported in the Bank’s FDIC Call Report. FHLB of Boston stock owned in excess of the minimum requirements can be redeemed at par upon request by a member.

As of December 31, 2016 and 2015, the Bank’s FHLB stock holdings totaled $44.1 million and $35.2 million. respectively. The Bank’s investment in FHLB stock is recorded at cost and is redeemable at par. At December 31, 2015, $34.2 million was invested in the FHLB of Boston and the remaining FHLB stock holdings was invested in the FHLB of San Francisco, of which two of the Company’s affiliate banks were members of prior to being merged into the Bank in 2011. As of December 31, 2016, the Bank no longer had any stock holdings invested in the FHLB of San Francisco.