Borrowings and Subordinated Debentures

Borrowings

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



	March 31, 2016				December 31, 2015
	Amount		Rate		Amount		Rate
	(Dollars in thousands)
Non‑recourse debt	$	1,401	6.20	%	$	3,914	5.49	%
FHLB overnight advances	550,000		0.48	%	618,000		0.27	%
Total borrowings	$	551,401			$	621,914

The non‑recourse debt represents the payment stream of certain equipment leases sold to third parties. The debt is secured by the leased equipment and all interest rates are fixed. As of March 31, 2016, this debt had a weighted average remaining maturity of 2.3 years.

The Bank has established secured and unsecured lines of credit under which it may borrow funds from time to time on a term or overnight basis from the FHLB, the Federal Reserve Bank of San Francisco (“FRBSF”), and other financial institutions.

FHLB Secured Lines of Credit. The borrowing arrangement with the FHLB is based on an FHLB program collateralized by a blanket lien on certain qualifying loans that are not pledged to the FRBSF. As of March 31, 2016, the borrowing capacity under the FHLB secured borrowing lines was $2.3 billion. As of March 31, 2016 and December 31, 2015, the balances outstanding were $550.0 million and $618.0 million.

FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2016, the Bank had secured borrowing capacity of $2.1 billion collateralized by liens covering $3.0 billion of certain qualifying loans. As of March 31, 2016 and December 31, 2015, there were no balances outstanding.

Federal Funds Arrangements with Commercial Banks. As of March 31, 2016, the Bank had uncommitted 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, 2016 and December 31, 2015, there were no balances outstanding. In March 2016, the Bank became a member of the American Financial Exchange, through which it may either borrow or lend funds on an overnight basis with a group of pre-approved commercial banks. The availability of funds changes daily. There were no balances outstanding as of March 31, 2016.

FHLB Unsecured Line of Credit. During the second quarter of 2015, the Bank obtained a $99.0 million unsecured line of credit with the FHLB for the purchase of overnight funds. As of March 31, 2016 and December 31, 2015, there were no balances outstanding.

Subordinated Debentures

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



	March 31, 2016					December 31, 2015					Date	Maturity	Rate Index
Series:	Amount			Rate		Amount			Rate		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Trust V	$	10,310		3.74	%	$	10,310		3.63	%	8/15/2003	9/17/2033	3 month LIBOR + 3.10
Trust VI	10,310			3.68	%	10,310			3.39	%	9/3/2003	9/15/2033	3 month LIBOR + 3.05
Trust CII	5,155			3.59	%	5,155			3.35	%	9/17/2003	9/17/2033	3 month LIBOR + 2.95
Trust VII	61,856			3.37	%	61,856			3.07	%	2/5/2004	4/23/2034	3 month LIBOR + 2.75
Trust CIII	20,619			2.32	%	20,619			2.20	%	8/15/2005	9/15/2035	3 month LIBOR + 1.69
Trust FCCI	16,495			2.23	%	16,495			2.11	%	1/25/2007	3/15/2037	3 month LIBOR + 1.60
Trust FCBI	10,310			2.18	%	10,310			2.06	%	9/30/2005	12/15/2035	3 month LIBOR + 1.55
Trust CS 2005-1	82,475			2.58	%	82,475			2.46	%	11/21/2005	12/15/2035	3 month LIBOR + 1.95
Trust CS 2005-2	128,866			2.57	%	128,866			2.27	%	12/14/2005	1/30/2036	3 month LIBOR + 1.95
Trust CS 2006-1	51,545			2.57	%	51,545			2.27	%	2/22/2006	4/30/2036	3 month LIBOR + 1.95
Trust CS 2006-2	51,550			2.57	%	51,550			2.27	%	9/27/2006	10/30/2036	3 month LIBOR + 1.95
Trust CS 2006-3 ⁽¹⁾	29,335			1.88	%	28,007			1.98	%	9/29/2006	10/30/2036	3 month EURIBOR + 2.05
Trust CS 2006-4	16,470			2.57	%	16,470			2.27	%	12/5/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2006-5	6,650			2.57	%	6,650			2.27	%	12/19/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2007-2	39,177			2.57	%	39,177			2.27	%	6/13/2007	7/30/2037	3 month LIBOR + 1.95
Gross subordinated debentures	541,123					539,795
Unamortized discount ⁽²⁾	(102,400		)			(103,795		)
Net subordinated debentures	$	438,723				$	436,000

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(1)	Denomination is in Euros with a value of €25.8 million.


(2)	Amount represents the fair value adjustment on subordinated debentures assumed in acquisitions.

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, are required to notify the FRB prior to declaring and paying a dividend during any period in which quarterly and/or cumulative twelve‑month net earnings are insufficient to fund the dividend amount, among other requirements.