FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS

9 Months Ended

Sep. 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)	September 30, 2022			December 31, 2021
Fixed rate:
Outstanding balance (1)	$	611,000		$	411,000
Interest rates ranging from	0.64		%	0.64		%
Interest rates ranging to	3.70		%	3.32		%
Weighted average interest rate	2.91		%	2.53		%
Variable rate:
Outstanding balance	$	120,000		$	70,000
Weighted average interest rate	3.18		%	0.20		%

(1)Excludes $4.0 million and $4.9 million of unamortized debt issuance costs at September 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 September 30, 2022, FHLB advances included $120.0 million in overnight borrowings with a weighted average interest rate of 3.18% and $611.0 million in term advances with a weighted average life of 3.7 years and a weighted average interest rate of 2.91%.

FHLB advances are collateralized by a blanket lien on all real estate loans. As of September 30, 2022, our secured borrowing capacity with the FHLB totaled $2.23 billion, of which the Bank was eligible to borrow an additional $1.21 billion based on qualifying loans with an aggregate unpaid principal balance of $3.20 billion as of that date. As of September 30, 2022, the Bank also has additional borrowing capacity with the FHLB of $164.0 million, of which the Bank was eligible to borrow an additional $44.0 million based on investment securities pledged with a carrying value of $214.6 million.

The Bank’s investment in capital stock of the FHLB of San Francisco totaled $20.2 million and $17.3 million at September 30, 2022 and December 31, 2021.

FRB Borrowings

At September 30, 2022, the Bank had borrowing capacity with the Federal Reserve Bank of San Francisco (the “Federal Reserve”) of $733.5 million, including the secured borrowing capacity through the FRB Discount Window and Borrower-in-Custody ("BIC") program. Borrowings under the BIC program are overnight advances with interest chargeable at the discount window (“primary credit”) borrowing rate.

At September 30, 2022, the Bank has pledged certain qualifying loans with an unpaid principal balance of $975.5 million and securities with a carrying value of $123.1 million as collateral for these lines of credit.

There were no secured borrowings from the FRB Discount Window and no borrowings under the BIC program for the three and nine months ended September 30, 2022. There were no borrowings from the Federal Reserve at September 30, 2022 and December 31, 2021.

The Bank’s investment in capital stock of the Federal Reserve totaled $34.2 million and $27.3 million at September 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 September 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 and $441.0 million at September 30, 2022 and December 31, 2021. Borrowings under the AFX totaled zero and $25.0 million at September 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 $10.0 million and zero in borrowings under this line of credit at September 30, 2022 and December 31, 2021. At September 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 September 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.