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FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS | 12 Months Ended
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Dec. 31, 2021
Federal Home Loan Banks [Abstract] |
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS | FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS The following table presents the advances from the FHLB as of the dates indicated:
($ in thousands) |  | December 31, 2021 |  | December 31, 2020
Fixed rate: |  |  |  |
Outstanding balance (1)(2) |  | $ | 411,000 |  | (1) | $ | 461,000 |
Interest rates ranging from (2) |  | 0.64 | % | (2) | — | %
Interest rates ranging to |  | 3.32 | % |  | 3.32 | %
Weighted average interest rate |  | 2.53 | % |  | 2.51 | %
Variable rate: |  |  |  |
Outstanding balance |  | 70,000 |  |  | 85,000 |
Weighted average interest rate |  | 0.20 | % |  | 0.17 | %
(1)Excludes $4.9 million and $6.2 million of unamortized debt issuance costs at December 31, 2021 and 2020. (2)Includes zero and $5.0 million in FHLB recovery advances at December 31, 2021 and 2020 with an interest rate of 0.00% that matured on May 27, 2021. The following table presents contractual maturities by year of the FHLB advances as of December 31, 2021:
($ in thousands) |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | Thereafter |  | Total
Fixed rate |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 291,000 |  |  | $ | 20,000 |  |  | $ | 100,000 |  |  | $ | 411,000 |
Variable rate |  | 70,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 70,000 |
Total |  | $ | 70,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 291,000 |  |  | $ | 20,000 |  |  | $ | 100,000 |  |  | $ | 481,000 |
Each advance is payable at its maturity date. Advances paid early are subject to a prepayment penalty. In June 2020, we repaid early a $100.0 million FHLB term advance with an interest rate of 2.07% and incurred a $2.5 million debt extinguishment fee that is included in other noninterest expense in the consolidated statements of operations. Additionally, in June 2020 we refinanced $111.0 million of our term advances into lower market interest rates. At December 31, 2021, FHLB advances included $70.0 million in overnight borrowings and $411.0 million in term advances with a weighted average life of 4.0 years and weighted average interest rate of 2.53%. The Bank’s advances from the FHLB are collateralized by a blanket lien on all real estate loans. Our secured borrowing capacity with the FHLB totaled $1.84 billion, of which the Bank was eligible to borrow an additional $1.06 billion at December 31, 2021 based on qualifying loans with an aggregate unpaid principal balance of $2.34 billion as of that date. The Bank’s investment in capital stock of the FHLB of San Francisco totaled $17.3 million at December 31, 2021 and 2020. The following table presents financial data of FHLB advances as of the dates or for the periods indicated:
|  | As of or For the Year Ended December 31,
($ in thousands) |  | 2021 |  | 2020 |  | 2019
Weighted-average interest rate at end of year |  | 2.19 | % |  | 2.15 | % |  | 2.27 | %
Average interest rate during the year |  | 2.82 | % |  | 2.41 | % |  | 2.55 | %
Average balance |  | $ | 426,875 |  |  | $ | 749,195 |  |  | $ | 1,264,945 |
Maximum amount outstanding at any month-end |  | $ | 641,000 |  |  | $ | 1,210,000 |  |  | $ | 1,850,000 |
Balance at end of year(1) |  | $ | 481,000 |  |  | $ | 546,000 |  |  | $ | 1,195,000 |
(1)Excludes $4.9 million and $6.2 million of unamortized debt issuance costs at December 31, 2021 and 2020. At December 31, 2021, the Company had borrowing capacity with the Federal Reserve Bank of San Francisco (“Federal Reserve”) of $455.4 million, including the secured borrowing capacity through the Federal Reserve Discount Window and Borrower-in-Custody ("BIC") program. At December 31, 2021, the Bank has pledged certain qualifying loans with an unpaid principal balance of $813.8 million and securities with a carrying value of $8.9 million as collateral for these lines of credit. Borrowings under the BIC program are overnight advances with interest chargeable at the discount window (“primary credit”) borrowing rate. There were no borrowings under this arrangement for the years ended December 31, 2021 and 2020. The Bank’s investment in capital stock of the Federal Reserve totaled $27.3 million at December 31, 2021 and 2020. The Bank maintained available unsecured federal funds lines with five correspondent banks totaling $210.0 million, with no outstanding borrowings at December 31, 2021. The Bank also has the ability to obtain unsecured overnight borrowing from various financial institutions through the American Financial Exchange platform (AFX). The availability of such unsecured borrowings fluctuates regularly and is subject to the counterparties' discretion and totaled $441.0 million and $196.0 million at December 31, 2021 and 2020. Borrowings under the AFX totaled $25.0 million and zero at December 31, 2021 and 2020. In December 2021, the holding company entered into a $50.0 million revolving line of credit. The line of credit matures on December 19, 2022. We have the option to select paying interest using either (i) Prime Rate or (ii) LIBOR + 1.75%. The line of credit is also subject to an unused commitment fee of 0.40% per annum. The line of credit is subject to certain operational and financial covenants and we were in compliance with these covenants at December 31, 2021. There were no borrowings under this line of credit at December 31, 2021. The Bank also maintained repurchase agreements and had no outstanding securities sold under agreements to repurchase at December 31, 2021 and 2020. Availabilities and terms on repurchase agreements are subject to the counterparties' discretion and the pledging of additional investment securities.

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- Definition The entire disclosure for borrowing from the Federal Home Loan Bank, including: (i) general description; (ii) title and nature of obligation; (iii) interest rate; (iv) payment terms; (v) maturity dates by year; (vi) collateral requirements; (vii) restrictive covenants; (viii) priority; (ix) conversion or redemption features; (x) carrying value of assets pledged as collateral; (xi) combined aggregate maturities for next five years; (xii) unused or available balances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.13(a)) -URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123465755&loc=d3e1835-112601 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6479118&loc=d3e64650-112822 + Details
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