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BORROWINGS AND SUBORDINATED DEBENTURES
 12 Months Ended
Dec. 31, 2013
BORROWINGS AND SUBORDINATED DEBENTURES  
BORROWINGS AND SUBORDINATED DEBENTURES

NOTE 12—BORROWINGS AND SUBORDINATED DEBENTURES

  • Borrowings

        The following table summarizes our borrowings as of the dates indicated:

 
   December 31,  
 
   2013   2012  
 
   Amount   Rate   Amount   Rate  
 
   (Dollars in thousands)
  

Non-recourse debt

   $ 7,126     6.30 % $ 12,591     6.28 %

Overnight FHLB advances

     106,600     0.06 %   —     —  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total borrowings

   $ 113,726         $ 12,591        
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

        The nonrecourse debt represents the payment stream of certain leases sold to third parties. The debt is secured by the equipment in the leases and all interest rates are fixed. As of December 31, 2013, this debt had a weighted average remaining maturity of 2 years.

        The Bank has established secured and unsecured lines of credit. We may borrow funds from time to time on a term or overnight basis from the FHLB, the FRBSF, or other financial institutions.

        FHLB Secured Lines of Credit.    The borrowing arrangements with the FHLB are based on two separate FHLB programs, one collateralized by loans and the other by securities available-for-sale. At December 31, 2013, our FHLB borrowing lines were secured by: (1) a blanket lien on certain qualifying loans in our loan portfolio which were not pledged to the FRBSF, and (2) available-for-sale securities with a carrying value of $10.9 million. As of December 31, 2013, our outstanding balance was $106.6 million, and our aggregate remaining borrowing capacity under the FHLB secured borrowing lines was $1.2 billion. There was no balance outstanding at December 31, 2012.

        Federal Funds Arrangements with Commercial Banks.    As of December 31, 2013, 2012, the Bank had unsecured lines of credit with correspondent banks, subject to availability, in the amount of $80.0 million. These lines are renewable annually and have no unused commitment fees. As of December 31, 2013 and 2012, there were no balances outstanding.

        FRBSF Secured Line of Credit.    The Bank has a secured line of credit with the FRBSF. The secured borrowing capacity is collateralized by liens covering $702.6 million of certain qualifying loans. As of December 31, 2013, our secured FRBSF borrowing capacity was $563.6 million. As of December 31, 2013 and 2012, there were no balances outstanding.

  • Subordinated Debentures

        The Company had an aggregate of $132.6 million and $108.3 million in subordinated debentures outstanding at December 31, 2013 and 2012, respectively. With the FCAL acquisition, we added $26.8 million of subordinated debentures. These subordinated debentures were issued in separate series and each issuance had a maturity of thirty years from its date of issue. The subordinated debentures are variable-rate instruments and are each callable at par with no prepayment penalty. The subordinated debentures were issued to trusts established by us or entities we have acquired, which in turn issued trust preferred securities, which totaled $131.0 million at December 31, 2013. The proceeds of the subordinated debentures were used primarily to fund several of our acquisitions and to augment regulatory capital.

        See Note 20, Dividend Availability and Regulatory Matters, for information regarding the regulatory capital treatment of trust preferred securities and the payment of interest on subordinated debentures.

        The following table summarizes the terms of each issuance of the subordinated debentures outstanding as of the dates indicated:

 
   December 31,    
    
    
    
  
 
   2013   2012    
    
    
    
  
 
   Date
Issued		   Maturity
Date		    
   Next
Reset
Date		  
Series
  Amount   Rate(1)   Amount   Rate(2)   Rate Index  
 
   (Dollars in thousands)
    
    
    
    
  

Trust V

   $ 10,310     3.34 % $ 10,310     3.41 %   8/15/03     9/17/33   3 month LIBOR + 3.10     3/13/14  

Trust VI

     10,310     3.29 %   10,310     3.36 %   9/3/03     9/15/33   3 month LIBOR + 3.05     3/12/14  

Trust CII

     5,155     3.19 %   5,155     3.26 %   9/17/03     9/17/33   3 month LIBOR + 2.95     3/13/14  

Trust VII

     61,856     2.99 %   61,856     3.05 %   2/5/04     4/23/34   3 month LIBOR + 2.75     4/28/14  

Trust CIII

     20,619     1.93 %   20,619     2.00 %   8/15/05     9/15/35   3 month LIBOR + 1.69     3/12/14  

Trust FCCI(3)

     16,495     1.84 %   —     —     1/25/07     3/15/37   3 month LIBOR + 1.60     3/12/14  

Trust FCBI(3)

     10,310     1.79 %   —     —     9/30/05     12/15/35   3 month LIBOR + 1.55     3/12/14  
                                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Gross subordinated debentures

     135,055           108,250                              

Unamortized discount(4)

     (2,410 )         —                              
                                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net subordinated debentures

   $ 132,645         $ 108,250                              
                                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                             
(1)
As of January 28, 2014.

(2)
As of January 28, 2013.

(3)
Acquired in the FCAL acquisition.

(4)
Amount represents the fair value adjustment on trusts acquired in the FCAL acquisition.