Short-term Borrowings/Other Borrowings

6 Months Ended

Jun. 30, 2011

5.	Short-term Borrowings/Other Borrowings

At June 30, 2011, the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $241.8 million, as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $27.4 million. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. There are currently no restrictions on these lines of credit, although under the current written Agreement with the Federal Reserve, the Bank's liquidity position as well as its use of borrowing lines is monitored closely. These lines of credit have interest rates that are generally tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB lines of credit are collateralized by investment securities, while lines of credit with the Federal Reserve Bank are collateralized by certain qualifying loans. As of June 30, 2011, $29.7 million in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $348.6 million in qualifying loans were pledged at June 30, 2011 as collateral for borrowing lines with the Federal Reserve Bank. At June 30, 2011, the Company had total outstanding balances of $25.0 million drawn against its FHLB line of credit. The weighted average cost of borrowings outstanding at June 30, 2011 was 0.34%. The terms of the FHLB borrowings outstanding at June 30, 2011 are summarized in the table below.

FHLB term borrowings at June 30, 2011 (in 000's):
Term	Balance at June 30, 2011		Fixed Rate			Maturity
1 year	$	25,000		0.34	%	1/31/12

At December 31, 2010, the Company had collateralized and uncollateralized lines of credit with the Federal Reserve Bank of San Francisco and other correspondent banks aggregating $118.7 million, as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $32.6 million. At December 31, 2010, the Company had total outstanding balances of $32.0 million in borrowings drawn against its FHLB lines of credit at an average rate of 0.35%. The weighted average cost of borrowings for the year ended December 31, 2010 was 0.69%. As of December 31, 2010, $35.6 million in investment securities at FHLB, were pledged as collateral for FHLB advances. Additionally, $230.5 million in real estate-secured loans were pledged at December 31, 2010 as collateral for used and unused borrowing lines with the Federal Reserve Bank totaling $118.7 million. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time.