Federal Home Loan Bank Advances and Other Borrowings

12 Months Ended

Dec. 31, 2017

Long-term Federal Home Loan Bank Advances [Abstract]

Federal Home Loan Bank Advances and Other Borrowings

As of December 31, 2017, the Company has a line of credit with the FHLB that provides for advances totaling up to 45% of the Company’s assets, equating to a credit line of $2.9 billion, of which $677 million was available for borrowing. The available for borrowing was based on collateral pledged by real estate loans with an aggregate balance of $1.4 billion and FHLB stock of $17.3 million.

At December 31, 2017, the Company had $310 million in overnight FHLB advances and $180 million term advances, compared to $278 million in overnight FHLB advances and no term advances at December 31, 2016. The term advance have maturity dates ranging from January 2018 to June of 2022 and rates ranging from 0.90% to 2.73%.

The following table summarizes activities in advances from the FHLB for the periods indicated:



	Year Ended December 31,
	2017			2016
	(dollars in thousands)
Average balance outstanding	$	290,839		$	58,814
Maximum amount outstanding at any month-end during the year	490,148			278,000
Balance outstanding at end of year	490,148			278,000
Weighted average interest rate during the year	1.19		%	0.59		%

Bank related credit facilities have been established with Citigroup, Barclays Bank and Union Bank. The outstanding credit facilities are secured by pledged investment securities. At December 31, 2017 and 2016, the Company had borrowings of $18.5 million with Citigroup that mature in September of 2018, $10.0 million with Barclays Bank that mature in February of 2018, which the Company does not intend on renewing, and an unused reverse repurchase facility with Union Bank of $50 million. The outstanding borrowings are secured by MBS with an estimated fair value of $27.3 million.

The Company sells certain securities under agreements to repurchase. The agreements are treated as overnight borrowings with the obligations to repurchase securities sold reflected as a liability. The dollar amount of investment securities underlying the agreements remain in the asset accounts. The Company enters into these debt agreements as a service to certain HOA depositors to add protection for deposit amounts above FDIC insurance levels. At December 31, 2017, the Company sold securities under agreement to repurchase of $17.6 million with weighted average rate of 0.01% and collateralized by investment securities with fair value of approximately $29.7 million.

At December 31, 2017, the Bank had unsecured lines of credit with eight correspondent banks for a total amount of $168 million and access through the Federal Reserve discount window to borrow $3.3 million. At December 31, 2017 and December 31, 2016, the Company had no outstanding balances against these lines.

In addition, the Corporation acquired a line of credit with Wells Fargo Bank in June of 2017, with availability of $15 million. The line was added to provide an additional source of liquidity at the Corporation level and has no outstanding balance at December 31, 2017 and matures in June 2018.

The following table summarizes activities in other borrowings for the periods indicated:



	Year Ended December 31,
	2017			2016
	(dollars in thousands)
Average balance outstanding	$	50,866		$	48,732
Maximum amount outstanding at any month-end during the year	52,996			53,586
Balance outstanding at end of year	46,139			49,971
Weighted average interest rate during the year	1.86		%	1.94		%