Borrowings

6 Months Ended

Jun. 30, 2019

The Company maintains a line of credit with the Federal Home Loan Bank (“FHLB”) of San Francisco 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 $3.85 billion at June 30, 2019, and $3.81 billion at December 31, 2018. The terms of this credit facility require the Company to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances. The Company also has an unsecured credit facility with the FHLB that totaled $95.0 million and $91.0 million at June 30, 2019 and December 31, 2018, respectively.

At June 30, 2019 and December 31, 2018, real estate secured loans with a carrying amount of approximately $6.94 billion and $6.01 billion, respectively, were pledged at the FHLB for outstanding advances and remaining borrowing capacity. At June 30, 2019 and December 31, 2018, other than FHLB stock, no securities were pledged as collateral at the FHLB. The purchase of FHLB stock is a prerequisite to become a member of the FHLB system, and the Company is required to own a certain amount of FHLB stock based on outstanding borrowings.

At June 30, 2019 and December 31, 2018, FHLB advances totaling $695.0 million and $821.3 million, respectively, had weighted average effective interest rates of 1.98% and 1.78%, respectively. FHLB advances at June 30, 2019 and December 31, 2018 had various maturities through December 2022. The effective interest rate of FHLB advances as of June 30, 2019 ranged between 1.35% and 2.51%. At June 30, 2019, the Company’s remaining borrowing capacity with the FHLB was $3.13 billion.

Although the Company maintains borrowing lines with other banks, there were no federal funds purchased from other banks at June 30, 2019 and December 31, 2018.

At June 30, 2019, the contractual maturities for outstanding FHLB advances were as follows:



	June 30, 2019
Scheduled maturities in:	(Dollars in thousands)
2019	$	220,000
2020	185,000
2021	145,000
2022	145,000
Total	$	695,000

As a member of the Federal Reserve Bank (“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 fair market value of the qualifying loans and securities that are pledged. At June 30, 2019, the outstanding principal balance of the qualifying loans pledged at the FRB was $917.1 million and there were no investment securities pledged. At June 30, 2019 and December 31, 2018, the total available borrowing capacity at the FRB discount window was $736.3 million and $786.6 million, respectively. There were no borrowings outstanding at the FRB discount window as of June 30, 2019 and December 31, 2018.