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, 2018 and 2017 of $637.0 million and $733.4 million, respectively. In addition, the Bank pledged investment securities totaling $3.3 million at June 30, 2018 to collateralize its FHLB – San Francisco advances under the Securities-Backed Credit (“SBC”) program as compared to $451,000 at June 30, 2017. At June 30, 2018, 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 $411.8 million as compared to $419.8 million at June 30, 2017 which was similarly limited. As of June 30, 2018 and 2017, the remaining/available borrowing facility was $275.1 million and $284.1 million, respectively, and the remaining/available collateral was $500.3 million and $508.1 million, respectively.

In addition, as of June 30, 2018 and 2017, the Bank had a $73.2 million and $63.5 million discount window facility, respectively, at the Federal Reserve Bank of San Francisco, collateralized by investment securities with a fair market value of $77.9 million and $67.6 million, respectively. As of June 30, 2018 and 2017, the Bank also had a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $17.0 million and $17.0 million, respectively. The Bank intends to request a renewal of its borrowing arrangement with the correspondent bank prior to maturity.

Borrowings at June 30, 2018 and 2017 consisted of the following:

Borrowings, consisting of FHLB – San Francisco advances, were $126.2 million at both dates, June 30, 2018 and June 30, 2017.

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, 2018 and 2017 were $8.0 million and $7.0 million, respectively; and the outstanding MPF credit enhancement was $2.5 million at both, June 30, 2018 and June 30, 2017.

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 a stock investment of $8.2 million with no excess capital stock at June 30, 2018. This compares to a required stock investment of $8.1 million with no excess capital stock at June 30, 2017.

The FHLB – San Francisco did not redeem any capital stock during fiscal 2018 and 2017, while the Bank purchased $91,000 and $14,000 in FHLB - San Francisco capital stock, respectively. In fiscal 2018, 2017 and 2016, the FHLB – San Francisco distributed $568,000, $967,000 and $721,000 of cash dividends, respectively, to the Bank. The cash dividends received by the Bank in fiscal 2017 included a special cash dividend.

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)	2018			2017			2016

Balance outstanding at the end of year: FHLB – San Francisco advances	$	126,163		$	126,226		$	91,299

Weighted-average rate at the end of year: FHLB – San Francisco advances	2.47		%	2.39		%	2.78		%

Maximum amount of borrowings outstanding at any month end: FHLB – San Francisco advances	$	126,163		$	181,287		$	91,362

Average short-term borrowings during the year with respect to:⁽¹⁾
FHLB – San Francisco advances	$	8,687		$	14,022		$	—

Weighted-average short-term borrowing rate during the year with respect to:⁽¹⁾
FHLB – San Francisco advances	2.53		%	0.45		%	—		%

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

The aggregate annual contractual maturities of borrowings at June 30, 2018 and 2017 were as follows:



(Dollars in Thousands)	June 30,
	2018			2017
Within one year	$	25,000		$	25,011
Over one to two years	—			10,000
Over two to three years	20,000			—
Over three to four years	21,163			20,000
Over four to five years	10,000			21,215
Over five years	50,000			50,000
Total borrowings	$	126,163		$	126,226
Weighted average interest rate	2.47		%	2.39		%

(In Thousands)

FHLB – San Francisco advances