XML 26 R15.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Borrowings and Subordinated Debentures
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Borrowings and Subordinated Debentures BORROWINGS AND SUBORDINATED DEBT
Borrowings
The following table summarizes our borrowings as of the dates indicated:
March 31, 2024December 31, 2023
WeightedWeighted
AverageAverage
BalanceRateBalanceRate
(Dollars in thousands)
Bank Term Funding Program$1,545,000 5.40 %$2,618,300 4.37 %
Senior notes174,000 5.25 %174,000 5.25 %
Credit-linked notes123,824 16.03 %123,116 16.02 %
FHLB secured advances300,000 4.45 %— — %
Total borrowings2,142,824 5.87 %2,915,416 4.92 %
Acquisition discount on senior notes(3,326)(4,094)
Total borrowings, net$2,139,498 $2,911,322 

The Bank has established secured and unsecured lines of credit under which it may borrow funds from time to time on a term or overnight basis from the FHLB, the FRBSF, and other financial institutions.
FHLB Secured Line of Credit. The Bank had secured financing capacity with the FHLB as of March 31, 2024 of $6.3 billion, collateralized by a blanket lien on $10.2 billion of qualifying loans and $20.1 million of securities. As of March 31, 2024, there were $307.4 million in letters of credit pledged and $300.0 million outstanding, which consisted of two $150.0 million advances that both mature in March 2026. As of December 31, 2023, there were $243.8 million in letters of credit pledged but no balance outstanding.
FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2024, the Bank had secured borrowing capacity of $6.9 billion collateralized by liens covering $7.7 billion of qualifying loans and $1.0 billion of securities. As of March 31, 2024 and December 31, 2023, there were no balances outstanding.
FRBSF Bank Term Funding Program. In March of 2023, the Bank participated in the FRBSF Bank Term Funding Program. As of March 31, 2024, the Bank had secured borrowing capacity of $1.5 billion collateralized by the par value of pledged securities totaling $1.6 billion. As of March 31, 2024, the balance outstanding was $1.5 billion consisting of one term advance maturing in March 2025. As of December 31, 2023, the balance outstanding was $2.6 billion consisting of two term advances maturing in March 2024.
Federal Funds Arrangements with Commercial Banks. As of March 31, 2024, the Bank had unsecured lines of credit of $290.0 million in the aggregate with several correspondent banks for the purchase of overnight funds, subject to availability of funds. These lines are renewable annually and have no unused commitment fees. As of March 31, 2024 and December 31, 2023, there were no balances outstanding. The Bank is a member of the AFX, through which it may either borrow or lend funds on an overnight or short-term basis with a group of pre-approved commercial banks. The availability of funds changes daily. As of March 31, 2024 and December 31, 2023 there was no balance outstanding.
Senior Notes. The Senior Notes are unsecured debt obligations and rank equally with our other present and future unsecured unsubordinated obligations. We make interest payments on the Senior Notes semi-annually in arrears. We have the option to redeem the Senior Notes either in whole or in part on or after January 15, 2025 (i.e., 90 days prior to the maturity date). Notification of no less than 30 nor more than 60 days is required for redemption. The Senior Notes will be redeemable at a price equal to 100% of the principal amount of the Senior Notes to be redeemed plus accrued and unpaid interest to the date of redemption.
Credit-Linked Notes. The notes were issued in five classes, each with an interest rate of SOFR plus a spread that ranges from 8.00% to 13.25%, with a weighted average spread of 10.70% at March 31, 2024. The notes are linked to the credit risk of an approximately $2.46 billion reference pool of previously purchased single-family residential mortgage loans at March 31, 2024. The notes are due June 27, 2052. Principal payments on the notes are based only on scheduled and unscheduled principal that is actually collected on these loans. The notes are reported at fair value of $123.8 million at March 31, 2024. See Note 11. Fair Value Option for additional information.
Subordinated Debt
The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:
March 31, 2024December 31, 2023DateMaturityRate Index
SeriesBalance
Rate (1)
Balance
Rate (1)
IssuedDate
(Quarterly Reset)
(Dollars in thousands)
Subordinated notes, net (2)
$380,783 3.25 %$380,651 3.25 %4/30/20215/1/2031
Fixed rate (3)
Subordinated notes75,000 4.375 %75,000 4.375 %10/30/202010/30/2030
Fixed rate (6)
Trust V10,310 8.69 %10,310 8.74 %8/15/20039/17/2033
3-month Term SOFR + 3.10
Trust VI10,310 8.64 %10,310 8.70 %9/3/20039/15/2033
3-month Term SOFR + 3.05
Trust CII5,155 8.54 %5,155 8.59 %9/17/20039/17/2033
3-month Term SOFR + 2.95
Trust VII61,856 8.33 %61,856 8.40 %2/5/20044/23/2034
3-month Term SOFR + 2.75
Trust CIII20,619 7.28 %20,619 7.34 %8/15/20059/15/2035
3-month Term SOFR + 1.69
Trust FCCI16,495 7.19 %16,495 7.25 %1/25/20073/15/2037
3-month Term SOFR + 1.60
Trust FCBI10,310 7.14 %10,310 7.20 %9/30/200512/15/2035
3-month Term SOFR + 1.55
Trust CS 2005-182,475 7.54 %82,475 7.60 %11/21/200512/15/2035
3-month Term SOFR + 1.95
Trust CS 2005-2128,866 7.53 %128,866 7.60 %12/14/20051/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-151,545 10.45 %51,545 10.45 %2/22/20064/30/2036
Prime + 1.95
Trust CS 2006-251,550 7.53 %51,550 7.60 %9/27/200610/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-3 (4)
27,811 5.94 %28,453 6.00 %9/29/200610/30/2036
3-month EURIBOR + 2.05
Trust CS 2006-4 16,470 10.55 %16,470 10.45 %12/5/20061/30/2037
Prime + 1.95
Trust CS 2006-5 6,650 7.53 %6,650 7.60 %12/19/20061/30/2037
3-month Term SOFR + 1.95
Trust CS 2007-239,177 7.53 %39,177 7.60 %6/13/20077/30/2037
3-month Term SOFR + 1.95
PMB Statutory Trust III7,217 8.97 %7,217 9.02 %9/16/20029/26/2032
3-month Term SOFR + 3.40
PMB Capital Trust III10,310 7.60 %10,310 7.66 %10/4/200410/8/2034
3-month Term SOFR + 2.00
Total subordinated debt1,012,909 5.90 %1,013,419 5.93 %
Acquisition discount (5)
(75,192)(76,820)
Net subordinated debt$937,717 $936,599 
___________________
(1)    Rates do not include the effects of discounts and issuance costs.
(2)    Net of unamortized issuance costs of $4.2 million.
(3)    Interest rate is fixed until May 1, 2026, when it changes to a floating rate and resets quarterly at a benchmark rate plus 252 basis points.
(4)    Denomination is in Euros with a value of €25.8 million.
(5)    Amount represents the fair value adjustment on trust preferred securities assumed in acquisitions.
(6)    Interest rate is fixed until October 30, 2025, when it changes to a floating rate equal to a benchmark rate, which is expected to be 3-month Term SOFR, plus a spread of 419.5 basis points.