Federal Home Loan Bank Borrowings

12 Months Ended

Dec. 31, 2018

FEDERAL HOME LOAN BANK BORROWINGS

The Bank is a member of the FHLB of Boston. As a member of the FHLB of Boston, the Bank has access to short-term 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 $2.6 billion and $2.5 billion at December 31, 2018 and 2017, respectively. The Bank had borrowings outstanding of $420.1 million and $693.7 million at December 31, 2018 and 2017, respectively. Based on the collateral and the valuations applied, less the borrowings outstanding, the Bank had available credit with the FHLB of Boston of $1.4 billion and $1.2 billion at December 31, 2018 and 2017, respectively.

A summary of borrowings from the FHLBs is as follows:



	December 31, 2018
	Amount		Weighted Average Rate
	(In thousands)
Within 1 year	$	244,018	2.38	%
Over 1 to 2 years	99,365		2.68	%
Over 2 to 3 years	61,896		2.20	%
Over 3 to 4 years	3,985		1.93	%
Over 4 to 5 years	7,370		3.24	%
Over 5 years	3,510		0.18	%
Total	$	420,144	2.42	%

As of December 31, 2018 and December 31, 2017, the Company had no FHLB borrowings that were 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 4.0% 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 stock owned in excess of the minimum requirements can be redeemed at par upon request by a member.

As of December 31, 2018 and 2017, the Bank’s FHLB stock holdings totaled $35.2 million and $46.1 million, respectively. The Bank’s investment in FHLB stock is recorded at cost and is redeemable at par. The Bank was in compliance with FHLB collateral requirements for the periods presented.