FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

6 Months Ended

Jun. 30, 2022

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

FHLB Advances

The following table presents advances from the FHLB as of the dates indicated:


($ in thousands)	June 30, 2022			December 31, 2021
Fixed rate:
Outstanding balance (1)	$	411,000		$	411,000
Interest rates ranging from	0.64		%	0.64		%
Interest rates ranging to	3.32		%	3.32		%
Weighted average interest rate	2.53		%	2.53		%
Variable rate:
Outstanding balance	$	105,000		$	70,000
Weighted average interest rate	1.64		%	0.20		%

(1)Excludes $4.3 million and $4.9 million of unamortized debt issuance costs at June 30, 2022 and December 31, 2021.

Each advance is payable at its maturity date. Advances paid early are subject to a prepayment penalty. As of June 30, 2022, FHLB advances included $105.0 million in overnight borrowings with a weighted average interest rate of 1.64% and $411.0 million in term advances with a weighted average life of 3.5 years and weighted average interest rate of 2.53%.

Investments securities with carrying value of $205.5 million as of June 30, 2022 were pledged to secure FHLB advances. The Bank’s advances from the FHLB are also collateralized by a blanket lien on all real estate loans. Our secured borrowing capacity with the FHLB totaled $1.76 billion, of which the Bank was eligible to borrow an additional $985.4 million at June 30, 2022 based on qualifying loans with an aggregate unpaid principal balance of $2.38 billion as of that date.

The Bank’s investment in capital stock of the FHLB of San Francisco totaled $17.3 million at June 30, 2022 and December 31, 2021.

FRB Borrowings

At June 30, 2022, the Bank had borrowing capacity with the Federal Reserve Bank of San Francisco (the “Federal Reserve”) of $789.0 million, including the secured borrowing capacity through the Federal Reserve Discount Window and Borrower-in-Custody ("BIC") program. At June 30, 2022, the Bank has pledged certain qualifying loans with an unpaid principal balance of $1.01 billion and securities with a carrying value of $123.2 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 secured borrowings from the FRB at June 30, 2022 and December 31, 2021

There were no borrowings under this arrangement for the three and six months ended June 30, 2022 and 2021.

The Bank’s investment in capital stock of the Federal Reserve totaled $34.2 million and $27.3 million at June 30, 2022 and December 31, 2021.

Other Borrowings

The Bank maintained available unsecured federal funds lines with five correspondent banks totaling $210.0 million, with no outstanding borrowings at June 30, 2022. The Bank also has the ability to access unsecured overnight borrowings from various financial institutions through the American Financial Exchange platform ("AFX"). The availability of such unsecured borrowings fluctuates regularly and are subject to the counterparties discretion and totaled $445.0 million at June 30, 2022 and December 31, 2021. Borrowings under the AFX totaled $85.0 million and $25.0 million at June 30, 2022 and December 31, 2021.

In December 2021, the holding company entered into a $50.0 million revolving line of credit, which matures on December 19, 2022. There were $13.0 million and zero in borrowings under this line of credit at June 30, 2022 and December 31, 2021. At June 30, 2022, we were in compliance with all covenants under our revolving line of credit.

The Bank also maintained repurchase agreements and had no outstanding securities sold under agreements to repurchase at June 30, 2022 and December 31, 2021. Availabilities and terms on repurchase agreements are subject to the counterparties' discretion and the pledging of additional investment securities.