BORROWINGS	9 Months Ended
Sep. 30, 2021
BORROWINGS
BORROWINGS	NOTE 8: BORROWINGS At September 30, 2021, our borrowings consisted of $12.5 million of borrowings under a holding company line of credit. At December 31, 2020, our borrowings consisted of $255 million of overnight FHLB advances at the Bank and $14 million of borrowings under a holding company line of credit. At September 30, 2021, the interest rate on the holding company line of credit was 3.64%. FHLB advances are collateralized primarily by loans secured by single family, multifamily, and commercial real estate properties with a carrying value of $3.8 billion as of September 30, 2021. As a matter of practice, the Bank provides substantially all of its qualifying loans as collateral to the FHLB or the Federal Reserve Bank. The Bank’s total borrowing capacity from the FHLB at September 30, 2021 was $2.5 billion. The Bank had in place $275 million of letters of credit from the FHLB, as of September 30, 2021 which are used to meet collateral requirements for borrowings from the State of California and local agencies. During 2017, FFI entered into a loan agreement with an unaffiliated lender that provides for a revolving line of credit for up to $40 million. The loan agreement matures in five years, with an option to extend the maturity date subject to certain conditions, and bears interest at 90 day LIBOR plus 350 basis points (3.50%). FFI’s obligations under the loan agreement are secured by, among other things, a pledge of all of its equity in FFB. We are required to meet certain financial covenants during the term of the loan, including minimum capital levels and limits on classified assets. As of September 30, 2021 and December 31, 2020, FFI was in compliance with the covenants on this loan agreement. The Bank also has $195 million available borrowing capacity through unsecured fed funds lines, ranging in size from $20 million to $100 million, with five other financial institutions, and a $204 million secured line with the Federal Reserve Bank, secured by single family loans. None of these lines had outstanding borrowings as September 30, 2021. Combined, the Bank’s unused lines of credit as of September 30, 2021 and December 31, 2020 were $2.9 billion and $2.4 billion, respectively. The average balance of overnight borrowings during all of 2020 was $56 million.

BORROWINGS

9 Months Ended

Sep. 30, 2021

NOTE 8: BORROWINGS

At September 30, 2021, our borrowings consisted of $12.5 million of borrowings under a holding company line of credit. At December 31, 2020, our borrowings consisted of $255 million of overnight FHLB advances at the Bank and $14 million of borrowings under a holding company line of credit. At September 30, 2021, the interest rate on the holding company line of credit was 3.64%.

FHLB advances are collateralized primarily by loans secured by single family, multifamily, and commercial real estate properties with a carrying value of $3.8 billion as of September 30, 2021. As a matter of practice, the Bank provides substantially all of its qualifying loans as collateral to the FHLB or the Federal Reserve Bank. The Bank’s total borrowing capacity from the FHLB at September 30, 2021 was $2.5 billion. The Bank had in place $275 million of letters of credit from the FHLB, as of September 30, 2021 which are used to meet collateral requirements for borrowings from the State of California and local agencies.

During 2017, FFI entered into a loan agreement with an unaffiliated lender that provides for a revolving line of credit for up to $40 million. The loan agreement matures in five years, with an option to extend the maturity date subject to certain conditions, and bears interest at 90 day LIBOR plus 350 basis points (3.50%). FFI’s obligations under the loan agreement are secured by, among other things, a pledge of all of its equity in FFB. We are required to meet certain financial covenants during the term of the loan, including minimum capital levels and limits on classified assets. As of September 30, 2021 and December 31, 2020, FFI was in compliance with the covenants on this loan agreement.

The Bank also has $195 million available borrowing capacity through unsecured fed funds lines, ranging in size from $20 million to $100 million, with five other financial institutions, and a $204 million secured line with the Federal Reserve Bank, secured by single family loans. None of these lines had outstanding borrowings as September 30, 2021. Combined, the Bank’s unused lines of credit as of September 30, 2021 and December 31, 2020 were $2.9 billion and $2.4 billion, respectively. The average balance of overnight borrowings during all of 2020 was $56 million.