Borrowings

Advances from the FHLB – San Francisco, which mature on various dates through 2025, are collateralized by pledges of certain real estate loans with an aggregate balance at June 30, 2016 and 2015 of $776.5 million and $767.3 million, respectively. In addition, the Bank pledged investment securities totaling $591,000 at June 30, 2016 to collateralize its FHLB – San Francisco advances under the Securities-Backed Credit (“SBC”) program as compared to $698,000 at June 30, 2015. At June 30, 2016, the Bank’s FHLB – San Francisco borrowing capacity, which is limited to 35% of total assets reported on the Bank’s quarterly Call Report, was approximately $410.8 million as compared to $424.9 million at June 30, 2015 which was similarly limited. As of June 30, 2016 and 2015, the remaining/available borrowing facility was $309.0 million and $324.0 million, respectively, and the remaining/available collateral was $586.9 million and $587.9 million, respectively.

In addition, as of June 30, 2016 and 2015, the Bank has a $46.4 million and $12.2 million discount window facility, respectively, at the Federal Reserve Bank of San Francisco, collateralized by investment securities with a fair market value of $49.4 million and $13.0 million, respectively. As of June 30, 2016 and 2015, the Bank also has a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $12.0 million at both dates. The Bank intends to request a renewal of its borrowing arrangement with the correspondent bank prior to maturity.

Borrowings at June 30, 2016 and 2015 consisted of the following:

In addition to the total borrowings described above, the Bank utilizes its borrowing facility for letters of credit and MPF credit enhancement. The outstanding letters of credit at June 30, 2016 and 2015 were $8.0 million and $7.0 million, respectively; and the outstanding MPF credit enhancement at these dates was $2.5 million and $2.5 million, respectively.

As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco capital stock. The Bank held the required stock investment of $7.8 million and $321,000 of excess capital stock at June 30, 2016, as compared to the required investment of $8.1 million and no excess capital stock at June 30, 2015.

The FHLB – San Francisco did not redeem any capital stock during fiscal 2016 and 2015. The Bank did not purchase any FHLB - San Francisco's capital stock in fiscal 2016, but in fiscal 2015, the Bank purchased $1.0 million of FHLB - San Francisco capital stock. In fiscal 2016, 2015 and 2014, the FHLB – San Francisco distributed $721,000, $796,000 and $793,000 of cash dividends, respectively, to the Bank.

The following tables set forth certain information regarding borrowings by the Bank at the dates and for the years indicated:



	At or For the Year Ended June 30,
(Dollars in Thousands)	2016			2015			2014

Balance outstanding at the end of year: FHLB – San Francisco advances	$	91,299		$	91,367		$	41,431

Weighted-average rate at the end of year: FHLB – San Francisco advances	2.78		%	2.78		%	3.18		%

Maximum amount of borrowings outstanding at any month end: FHLB – San Francisco advances	$	91,362		$	131,384		$	81,486

Average short-term borrowings during the year with respect to:⁽¹⁾
FHLB – San Francisco advances	$	—		$	6,800		$	13,333

Weighted-average short-term borrowing rate during the year with respect to:⁽¹⁾
FHLB – San Francisco advances	—		%	0.22		%	3.14		%

⁽¹⁾ Borrowings with a remaining term of 12 months or less.

The aggregate annual contractual maturities of borrowings at June 30, 2016 and 2015 were as follows:



(Dollars in Thousands)	June 30,
	2016			2015
Within one year	$	—		$	—
Over one to two years	10,036			—
Over two to three years	10,000			10,059
Over three to four years	—			10,000
Over four to five years	20,000			—
Over five years	51,263			71,308
Total borrowings	$	91,299		$	91,367
Weighted average interest rate	2.78		%	2.78		%

(In Thousands)

FHLB – San Francisco advances