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BORROWINGS, SUBORDINATED DEBENTURES AND BROKERED DEPOSITS
 3 Months Ended
Mar. 31, 2014
BORROWINGS, SUBORDINATED DEBENTURES AND BROKERED DEPOSITS  
BORROWINGS, SUBORDINATED DEBENTURES AND BROKERED DEPOSITS

NOTE 9—BORROWINGS, SUBORDINATED DEBENTURES AND BROKERED DEPOSITS

  • Borrowings

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

 
   March 31, 2014   December 31, 2013  
 
   Amount   Rate   Amount   Rate  
 
   (Dollars in thousands)
  

Non-recourse debt

   $ 5,748     6.18 % $ 7,126     6.30 %

FHLB advances

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

Total borrowings

   $ 5,748         $ 113,726        
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

        The non-recourse 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 March 31, 2014, this debt had a weighted average remaining maturity of 2.2 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 Federal Reserve Bank of San Francisco ("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 March 31, 2014, 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 $10.7 million. As of March 31, 2014, our aggregate remaining borrowing capacity under the FHLB secured borrowing lines was $1.3 billion.

        FRBSF Secured Line of Credit.    The Bank has a secured line of credit with the FRBSF. As of March 31, 2014, the Bank had secured borrowing capacity of $580.7 million collateralized by liens covering $722.8 million of certain qualifying loans. As of March 31, 2014 and December 31, 2013, there were no balances outstanding.

        Federal Funds Arrangements with Commercial Banks.    As of March 31, 2014, the Bank had unsecured lines of credit of $80.0 million with correspondent banks for the purchase of overnight funds, subject to availability of funds. These lines are renewable annually and have no unused commitment fees. As of March 31, 2014 and December 31, 2013, there were no balances outstanding.

  • Subordinated Debentures

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

 
   March 31,
2014		   December 31,
2013		    
    
    
    
  
 
   Date
Issued		   Maturity
Date		    
   Next
Reset
Date		  
Series
  Amount   Rate(1)   Amount   Rate(2)   Rate Index  
 
   (Dollars in thousands)
    
    
    
    
  

Trust V

   $ 10,310     3.33 % $ 10,310     3.34 %   8/15/03     9/17/33   3 month LIBOR + 3.10     6/13/14  

Trust VI

     10,310     3.28 %   10,310     3.29 %   9/3/03     9/15/33   3 month LIBOR + 3.05     6/12/14  

Trust CII

     5,155     3.18 %   5,155     3.19 %   9/17/03     9/17/33   3 month LIBOR + 2.95     6/13/14  

Trust VII

     61,856     2.97 %   61,856     2.99 %   2/5/04     4/23/34   3 month LIBOR + 2.75     7/28/14  

Trust CIII

     20,619     1.92 %   20,619     1.93 %   8/15/05     9/15/35   3 month LIBOR + 1.69     6/12/14  

Trust FCCI

     16,495     1.83 %   16,495     1.84 %   1/25/07     3/15/37   3 month LIBOR + 1.60     6/12/14  

Trust FCBI

     10,310     1.78 %   10,310     1.79 %   9/30/05     12/15/35   3 month LIBOR + 1.55     6/12/14  
                                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Gross subordinated debentures

     135,055           135,055                              

Unamortized discount

     (2,265 )         (2,410 )                            
                                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net subordinated debentures

   $ 132,790         $ 132,645                              
                                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                             
(1)
As of April 28, 2014.

(2)
As of January 28, 2014.

        Interest payments made by the Company on subordinated debentures are considered dividend payments under the Board of Governors of the Federal Reserve System ("FRB") regulations. Bank holding companies, such as PacWest Bancorp, are required to notify the FRB prior to declaring and paying a dividend to stockholders during any period in which quarterly and/or cumulative twelve-month net earnings are insufficient to fund the dividend amount, among other requirements.

  • Brokered Deposits

        Brokered time deposits totaled $48.0 million at March 31, 2014, and $49.4 million at December 31, 2013, all of which were part of the CDARS program. The CDARS program represents deposits that are participated with other FDIC-insured financial institutions as a means to provide FDIC deposit insurance coverage for the full amount of our customers' deposits.