Borrowings

The Company maintains a secured credit facility with the FHLB against which the Bank may take advances. The borrowing capacity is limited to the lower of 30% of the Bank’s total assets or the Bank’s collateral capacity, which was $1.96 billion at September 30, 2014 and $1.78 billion at December 31, 2013. The terms of this credit facility require the Company to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances.

At September 30, 2014 and December 31, 2013, real estate secured loans with a carrying amount of approximately $2.60 billion and $2.33 billion, respectively, were pledged as collateral for borrowings from the FHLB. At September 30, 2014, other than FHLB stock, no securities are pledged as collateral for borrowings from the FHLB. At December 31, 2013, other than FHLB stock, securities with a carrying value of $13.2 million were pledged as collateral for borrowings from the FHLB.

At September 30, 2014 and December 31, 2013, FHLB advances were $467.1 million and $421.4 million, respectively, had a weighted average interest rate of 1.14% and 1.16%, respectively, and had various maturities through September 2019. At September 30, 2014 and December 31, 2013, $37.1 million and $51.4 million, respectively, of the advances were putable advances with various putable dates and strike prices. The cost of FHLB advances as of September 30, 2014 ranged between 0.47% and 3.51%. At September 30, 2014, the Company had a remaining borrowing capacity of $1.49 billion.

At September 30, 2014, the contractual maturities for FHLB advances were as follows:



	Contractual Maturities		Maturity/ Put Date
	(In thousands)
Due within one year	$	66,000	$	87,071
Due after one year through five years	401,071		380,000
	$	467,071	$	467,071

In addition, as a member of the FRB system, the Bank may also borrow from the FRB of San Francisco. The maximum amount that the Bank may borrow from the FRB’s discount window is up to 95% of the outstanding principal balance of the qualifying loans and the fair value of the securities that are pledged. At September 30, 2014, the outstanding principal balance of the qualifying loans was $599.0 million, and the collateral value of investment securities was $1.6 million. There were no borrowings outstanding against this line as of September 30, 2014 and December 31, 2013.