Borrowings and Subordinated Debentures

3 Months Ended

Mar. 31, 2020

BORROWINGS AND SUBORDINATED DEBENTURES

Borrowings

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



	March 31, 2020				December 31, 2019
			Weighted				Weighted
			Average				Average
	Balance		Rate		Balance		Rate
	(Dollars in thousands)
FHLB secured advances	$	1,904,000	0.51	%	$	1,318,000	1.66	%
FHLB unsecured overnight advance	141,000		0.11	%	141,000		1.56	%
AFX short-term borrowings	250,000		0.18	%	300,000		1.61	%
Non‑recourse debt	—		—	%	8		7.50	%
Total borrowings	$	2,295,000	0.45	%	$	1,759,008	1.64	%

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, 2020 of $6.0 billion, collateralized by a blanket lien on $6.3 billion of qualifying loans and $2.0 billion of securities.

The following table presents the interest rates and maturity dates of FHLB secured advances as of the dates indicated:



	March 31, 2020					December 31, 2019
					Maturity					Maturity
	Balance		Rate		Date	Balance		Rate		Date
	(Dollars in thousands)
Overnight advance	$	1,154,000	0.21	%	4/1/2020	$	1,318,000	1.66	%	1/2/2020
Term advance	250,000		0.98	%	3/2/2021	—		—	%	—
Term advance	250,000		0.96	%	9/2/2021	—		—	%	—
Term advance	250,000		0.94	%	3/2/2022	—		—	%	—
Total FHLB secured advances	$	1,904,000	0.51	%		$	1,318,000	1.66	%

FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2020, the Bank had secured borrowing capacity of $1.9 billion collateralized by liens covering $2.6 billion of qualifying loans. As of March 31, 2020 and December 31, 2019, there were no balances outstanding.

FHLB Unsecured Line of Credit. The Bank has a $141.0 million unsecured line of credit with the FHLB for the purchase of overnight funds, of which $141.0 million was outstanding at March 31, 2020. At December 31, 2019, the balance outstanding was $141.0 million.

Federal Funds Arrangements with Commercial Banks. As of March 31, 2020, the Bank had unsecured lines of credit of $180.0 million in the aggregate with several 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, 2020 and December 31, 2019, 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, 2020, the balance outstanding was $250.0 million, which consisted of $250.0 million in overnight borrowings. As of December 31, 2019, there were $300.0 million in overnight borrowings outstanding.

Subordinated Debentures

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



	March 31, 2020					December 31, 2019					Date	Maturity	Rate Index
Series	Balance			Rate		Balance			Rate		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Trust V	$	10,310		3.94	%	$	10,310		5.00	%	8/15/2003	9/17/2033	3-month LIBOR + 3.10
Trust VI	10,310			3.79	%	10,310			4.94	%	9/3/2003	9/15/2033	3-month LIBOR + 3.05
Trust CII	5,155			3.79	%	5,155			4.85	%	9/17/2003	9/17/2033	3-month LIBOR + 2.95
Trust VII	61,856			4.52	%	61,856			4.69	%	2/5/2004	4/23/2034	3-month LIBOR + 2.75
Trust CIII	20,619			2.43	%	20,619			3.58	%	8/15/2005	9/15/2035	3-month LIBOR + 1.69
Trust FCCI	16,495			2.34	%	16,495			3.49	%	1/25/2007	3/15/2037	3-month LIBOR + 1.60
Trust FCBI	10,310			2.29	%	10,310			3.44	%	9/30/2005	12/15/2035	3-month LIBOR + 1.55
Trust CS 2005-1	82,475			2.69	%	82,475			3.85	%	11/21/2005	12/15/2035	3-month LIBOR + 1.95
Trust CS 2005-2	128,866			3.72	%	128,866			3.89	%	12/14/2005	1/30/2036	3-month LIBOR + 1.95
Trust CS 2006-1	51,545			3.72	%	51,545			3.89	%	2/22/2006	4/30/2036	3-month LIBOR + 1.95
Trust CS 2006-2	51,550			3.72	%	51,550			3.89	%	9/27/2006	10/30/2036	3-month LIBOR + 1.95
Trust CS 2006-3 ⁽¹⁾	28,432			1.65	%	28,902			1.64	%	9/29/2006	10/30/2036	3-month EURIBOR + 2.05
Trust CS 2006-4	16,470			3.72	%	16,470			3.89	%	12/5/2006	1/30/2037	3-month LIBOR + 1.95
Trust CS 2006-5	6,650			3.72	%	6,650			3.89	%	12/19/2006	1/30/2037	3-month LIBOR + 1.95
Trust CS 2007-2	39,177			3.72	%	39,177			3.89	%	6/13/2007	7/30/2037	3-month LIBOR + 1.95
Gross subordinated debentures	540,220			3.43	%	540,690			3.87	%
Unamortized discount ⁽²⁾	(81,226		)			(82,481		)
Net subordinated debentures	$	458,994				$	458,209

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

(2)

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