BORROWINGS AND SUBORDINATED DEBENTURES

Borrowings

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



	March 31, 2018				December 31, 2017
			Weighted				Weighted
			Average				Average
	Amount		Rate		Amount		Rate
	(Dollars in thousands)
Non‑recourse debt	$	284	6.94	%	$	342	6.87	%
FHLB secured advances	340,000		1.87	%	332,000		1.41	%
FHLB unsecured overnight advance	135,000		1.85	%	135,000		1.34	%
AFX borrowings	100,000		1.82	%	—		—	%
Total borrowings	$	575,284			$	467,342

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, 2018, this debt had a weighted average remaining maturity of 1.7 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 FRBSF, and other financial institutions.

FHLB Secured Line of Credit. The Bank had secured financing capacity with the FHLB as of March 31, 2018 of $3.9 billion, collateralized by a blanket lien on $5.7 billion of certain qualifying loans. As of March 31, 2018, the balance outstanding was a $340.0 million overnight advance. As of December 31, 2017, the balance outstanding was a $332.0 million overnight advance.

FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2018, the Bank had secured borrowing capacity of $1.7 billion collateralized by liens covering $2.1 billion of certain qualifying loans. As of March 31, 2018 and December 31, 2017, there were no balances outstanding.

FHLB Unsecured Line of Credit. The Bank has a $135.0 million unsecured line of credit with the FHLB for the purchase of overnight funds, of which $135.0 million was outstanding at March 31, 2018. At December 31, 2017, the balance outstanding was $135.0 million.

Federal Funds Arrangements with Commercial Banks. As of March 31, 2018, the Bank had unsecured lines of credit of $75.0 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, 2018 and December 31, 2017, there were no balances outstanding. The Bank is a member of the AFX, through which it may either borrow or lend funds on an overnight or short-term basis with a group of pre-approved commercial banks. The availability of funds changes daily. As of March 31, 2018 the balance outstanding was $100.0 million in overnight borrowings. As of December 31, 2017, 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, 2018					December 31, 2017					Date	Maturity	Rate Index
Series	Amount			Rate		Amount			Rate		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Trust V	$	10,310		5.28	%	$	10,310		4.70	%	8/15/2003	9/17/2033	3 month LIBOR + 3.10
Trust VI	10,310			5.17	%	10,310			4.64	%	9/3/2003	9/15/2033	3 month LIBOR + 3.05
Trust CII	5,155			5.13	%	5,155			4.55	%	9/17/2003	9/17/2033	3 month LIBOR + 2.95
Trust VII	61,856			4.52	%	61,856			4.13	%	2/5/2004	4/23/2034	3 month LIBOR + 2.75
Trust CIII	20,619			3.81	%	20,619			3.28	%	8/15/2005	9/15/2035	3 month LIBOR + 1.69
Trust FCCI	16,495			3.72	%	16,495			3.19	%	1/25/2007	3/15/2037	3 month LIBOR + 1.60
Trust FCBI	10,310			3.67	%	10,310			3.14	%	9/30/2005	12/15/2035	3 month LIBOR + 1.55
Trust CS 2005-1	82,475			4.07	%	82,475			3.54	%	11/21/2005	12/15/2035	3 month LIBOR + 1.95
Trust CS 2005-2	128,866			3.72	%	128,866			3.33	%	12/14/2005	1/30/2036	3 month LIBOR + 1.95
Trust CS 2006-1	51,545			3.72	%	51,545			3.33	%	2/22/2006	4/30/2036	3 month LIBOR + 1.95
Trust CS 2006-2	51,550			3.72	%	51,550			3.33	%	9/27/2006	10/30/2036	3 month LIBOR + 1.95
Trust CS 2006-3 ⁽¹⁾	31,773			1.72	%	30,986			1.72	%	9/29/2006	10/30/2036	3 month EURIBOR + 2.05
Trust CS 2006-4	16,470			3.72	%	16,470			3.33	%	12/5/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2006-5	6,650			3.72	%	6,650			3.33	%	12/19/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2007-2	39,177			3.72	%	39,177			3.33	%	6/13/2007	7/30/2037	3 month LIBOR + 1.95
Trust I ⁽²⁾	—			—	%	6,186			3.64	%	12/10/2004	3/15/2035	3 month LIBOR + 2.05
Trust II⁽²⁾	—			—	%	3,093			3.34	%	12/23/2005	3/15/2036	3 month LIBOR + 1.75
Trust III ⁽²⁾	—			—	%	3,093			3.44	%	6/30/2006	9/18/2036	3 month LIBOR + 1.85
Gross subordinated debentures	543,561					555,146
Unamortized discount ⁽³⁾	(91,338		)			(92,709		)
Net subordinated debentures	$	452,223				$	462,437

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


(2)	Acquired in the CUB acquisition on October 20, 2017 and redeemed in the first quarter of 2018.


(3)	Amount represents the fair value adjustment on trust preferred securities assumed in acquisitions.

Interest payments made by the Company on subordinated debentures are considered dividend payments under 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.