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Borrowings | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Borrowings | Note 9 — Borrowings Borrowings consisted of FHLB advances, which represent collateralized obligations with the FHLB. The following is a summary of contractual maturities of FHLB advances:
|  | As of December 31, |
|  | 2020 |  |  | 2019 |
|  | Outstanding Balance |  |  | Weighted Average Rate |  |  | Outstanding Balance |  |  | Weighted Average Rate |
|  | (dollars in thousands) |
Overnight advances |  | $ | — |  |  |  | 0.00 | % |  | $ | 15,000 |  |  |  | 1.66 | %
Advances due within 12 months |  |  | 50,000 |  |  |  | 1.61 | % |  |  | 25,000 |  |  |  | 1.75 | %
Advances due over 12 months through 24 months |  |  | 50,000 |  |  |  | 1.62 | % |  |  | 25,000 |  |  |  | 1.66 | %
Advances due over 24 months through 36 months |  |  | 50,000 |  |  |  | 0.97 | % |  |  | 25,000 |  |  |  | 1.72 | %
Outstanding advances |  | $ | 150,000 |  |  |  | 1.40 | % |  | $ | 90,000 |  |  |  | 1.70 | %
The following is financial data pertaining to FHLB advances:
|  | As of December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Weighted-average interest rate at end of year |  |  | 1.40 | % |  |  | 1.70 | % |  |  | 2.56 | %
Weighted-average interest rate during the year |  |  | 1.42 | % |  |  | 1.89 | % |  |  | 1.94 | %
Average balance of FHLB advances |  | $ | 156,601 |  |  | $ | 40,374 |  |  | $ | 174,452 |
Maximum amount outstanding at any month-end |  | $ | 300,000 |  |  | $ | 285,000 |  |  | $ | 300,000 |
We have pledged loans receivable with market values of $2.17 billion as collateral with the FHLB for this borrowing facility. The total borrowing capacity available from the collateral that has been pledged is $1.73 billion, of which $1.44 billion remained available as of December 31, 2020. At December 31, 2020, we had $26.3 million available for use through the Federal Reserve Bank of San Francisco Discount Window, as we pledged securities with carrying values of $27.3 million, and there were no borrowings. At December 31, 2020, advances from the FHLB were $150.0 million, an increase of $60.0 million from $90.0 million at December 31, 2019, and all of the FHLB advances were term borrowings at December 31, 2020. For the years ended December 31, 2020, 2019 and 2018, interest expense on FHLB advances were $2.2 million, $763,000 and $3.4 million, respectively, and the weighted-average interest rates were 1.42 percent, 1.89 percent and 1.94 percent, respectively. There were no outstanding borrowings on the FRB PPP Lending Facility as of December 31, 2020 and available borrowing capacity was $300.4 million, which was extended through March 31, 2021. Note 10 — Subordinated Debentures The Company issued Fixed-to-Floating Subordinated Notes (“Notes”) of $100.0 million on March 21, 2017, with a final maturity on March 30, 2027. The Notes have an initial fixed interest rate of 5.45 percent per annum, payable semi-annually on March 30 and September 30 of each year. From and including March 30, 2022 and thereafter, the Notes bear interest at a floating rate equal to the then current three-month LIBOR, as calculated on each applicable date of determination, plus 3.315 percent payable quarterly. If the then current three-month LIBOR is less than zero, three-month LIBOR will be deemed to be zero. Debt issuance cost was $2.3 million, which is being amortized through the Note’s maturity date. At December 31, 2020 and 2019, the balance of Notes included in the Company’s Consolidated Balance Sheet, net of debt issuance cost, was $98.5 million and $98.3 million. The amortization of debt issuance cost was $205,000, $193,000 and $182,000 for the years ended December 31, 2020, 2019 and 2018, respectively. The Company assumed Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) as a result of an acquisition in 2014 with an unpaid principal balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount is being amortized to interest expense through the debentures’ maturity date of March 15, 2036. A trust was formed in 2005 which issued $26.0 million of Trust Preferred Securities (“TPS”) at a 6.26 percent fixed rate for the first five years and a variable rate at the three-month LIBOR plus 140 basis points thereafter and invested the proceeds in the Subordinated Debentures. The Company may redeem the Subordinated Debentures at an earlier date if certain conditions are met. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Company. Interest is payable quarterly, and the Company has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. At December 31, 2020 and 2019, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $6.4 million and $6.8 million, was $20.4 million and $20.0 million. The amortization of discount was $390,000, $376,000 and $356,000 for the years ended December 31, 2020, 2019 and 2018, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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