XML 22 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
SHORT-TERM BORROWINGS AND LONG-TERM DEBT
 9 Months Ended
Sep. 30, 2013
SHORT-TERM BORROWINGS AND LONG-TERM DEBT  
SHORT-TERM BORROWINGS AND LONG-TERM DEBT

10.   SHORT-TERM BORROWINGS AND LONG-TERM DEBT

 

At September 30, 2013, our bank maintained a $47.3 million line of credit with the Federal Reserve discount window, of which there were no advances outstanding. As of September 30, 2013, certain commercial and commercial real estate loans totaling $81.5 million have been pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans.

 

The bank is a member of and maintained a $907.8 million line of credit with the Federal Home Loan Bank of Seattle (the “FHLB”) as of September 30, 2013. Short-term and long-term borrowings under this arrangement totaled $28.0 million and $18,500 at September 30, 2013, respectively, compared to $32,000 of long-term borrowings at December 31, 2012. There were no short-term borrowings under this arrangement at December 31, 2012. At September 30, 2013 the bank’s pledged assets to the FHLB included investment securities with a fair value of $64.8 million and certain real estate loans totaling $1.3 billion.

 

On August 20, 2009, we began deferring regularly scheduled interest payments on our outstanding junior subordinated debentures relating to our trust preferred securities. The terms of the junior subordinated debentures and the trust documents allow us to defer payments of interest for up to 20 consecutive quarterly periods without default or penalty. During the deferral period, the respective trusts suspended the declaration and payment of dividends on the trust preferred securities. Also during the deferral period, we may not, among other things and with limited exceptions, pay cash dividends on or repurchase our common stock or make any payment on outstanding debt obligations that rank equally with or junior to the junior subordinated debentures. During the deferral period, we continued to accrue, and reflect in our consolidated financial statements, the deferred interest payments on our junior subordinated debentures. In March 2013, the Company paid all deferred interest on its subordinated debentures and related dividend payments on its trust preferred securities and resumed quarterly payments for each outstanding trust. As a result, deferred accrued interest totaling $13.0 million was paid in full.

 

In June 2013, the Company was notified that $10.0 million of the $15.0 million in trust preferred securities of CPB Capital Trust I (the “Trust”) would be auctioned off as part of a larger pooled collateralized debt obligation liquidation. CPF placed a bid of $9.0 million for the securities which was accepted by the trustee and the transaction closed on June 18, 2013. The Company determined that its investment in the Trust did not represent a variable interest and therefore the Company is not the primary beneficiary of the Trust. As a result, consolidation of the Trust by the Company was not required. The investment is currently recorded at $9 million and is included in investments in unconsolidated subsidiaries on the Company’s consolidated balance sheet. In October 2013, the Company purchased the remaining $5.0 million in trust preferred securities and $0.5 million in common stock of the Trust. On October 7, 2013, the Company called these securities.