Borrowings

The Company maintains a line of credit with the FHLB of San Francisco for use as a secondary source of funds. The borrowing capacity with the FHLB is limited to the lower of 25% of the Bank’s total assets or the Bank’s collateral capacity, which was $3.36 billion at March 31, 2017, and $3.38 billion at December 31, 2016. 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 March 31, 2017 and December 31, 2016, real estate secured loans with a carrying amount of approximately $5.50 billion and $5.53 billion, respectively, were pledged at the FHLB. At March 31, 2017 and December 31, 2016, other than FHLB stock, no securities were pledged as collateral at FHLB.

At March 31, 2017 and December 31, 2016, FHLB advances totaled $703.9 million and $754.3 million, respectively, had weighted average effective interest rates of 1.29% and 1.22%, respectively, and had various maturities through July 2021. The Company had a putable advance at March 31, 2017 and December 31, 2016, totaling $20.1 million and $20.2 million, respectively, with a quarterly put date. The stated rate of FHLB advances as of March 31, 2017 ranged between 0.84% and 2.02%. At March 31, 2017, the Company’s remaining borrowing capacity with the FHLB was $2.64 billion.

At March 31, 2017, the contractual maturities for FHLB advances were as follows:



	Contractual Maturities		Maturity/ Put Date
	(Dollars in thousands)
Due within one year	$	220,103	$	220,103
Due after one year through five years	483,747		483,747
Total	$	703,850	$	703,850

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 March 31, 2017, the outstanding principal balance of the qualifying loans was $651.7 million, and the fair value of investment securities was $5.7 million. There were no borrowings outstanding against this line as of March 31, 2017 and December 31, 2016.