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Borrowings and Subordinated Debentures
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Borrowings and Subordinated Debentures
NOTE 12.  BORROWINGS AND SUBORDINATED DEBT
Borrowings
The following table summarizes our borrowings as of the dates indicated:
December 31,
20212020
WeightedWeighted
AverageAverage
Borrowing TypeBalanceRateBalanceRate
(Dollars in thousands)
FHLB secured advances$— — %$5,000 — %
Total borrowings$— — %$5,000 — %
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 borrowing capacity with the FHLB of $4.0 billion as of December 31, 2021, collateralized by a blanket lien on $6.2 billion of qualifying loans.
The following table presents the interest rates and maturity dates of FHLB secured advances as of the dates indicated:
December 31,
20212020
MaturityMaturity
BalanceRateDateBalanceRateDate
(Dollars in thousands)
Term advance— — %5,000 — %5/6/2021
Total FHLB secured advances$— — %$5,000 — %
FRBSF Secured Line of Credit. The Bank had secured borrowing capacity with the FRBSF of $1.4 billion as of December 31, 2021, collateralized by liens on $1.8 billion of qualifying loans. As of December 31, 2021 and 2020, there was no balances outstanding.
FHLB Unsecured Line of Credit. As of December 31, 2021, the Bank had a $112.0 million unsecured line of credit with the FHLB for the borrowing of overnight funds. As of December 31, 2021 and 2020, there was no balance outstanding.
Federal Funds Arrangements with Commercial Banks. As of December 31, 2021, the Bank had unsecured lines of credit of $180.0 million in the aggregate with several correspondent banks for the borrowing of overnight funds, subject to availability of funds. These lines are renewable annually and have no unused commitment fees. As of December 31, 2021 and 2020, 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 December 31, 2021 and 2020, there was no borrowing.
Subordinated Debt
The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:
December 31,
20212020IssueMaturityRate Index
SeriesBalance
Rate (1)
Balance
Rate (1)
DateDate
(Quarterly Reset) (6)
(Dollars in thousands)
Subordinated notes, net (2)
$394,634 3.25 %$— — %4/30/20215/1/2031
Fixed rate (3)
Trust V10,310 3.32 %10,310 3.33 %8/15/20039/17/2033
3-month LIBOR + 3.10
Trust VI10,310 3.25 %10,310 3.27 %9/3/20039/15/2033
3-month LIBOR + 3.05
Trust CII5,155 3.17 %5,155 3.18 %9/17/20039/17/2033
3-month LIBOR + 2.95
Trust VII61,856 2.88 %61,856 2.96 %2/5/20044/23/2034
3-month LIBOR + 2.75
Trust CIII20,619 1.89 %20,619 1.91 %8/15/20059/15/2035
3-month LIBOR + 1.69
Trust FCCI16,495 1.80 %16,495 1.82 %1/25/20073/15/2037
3-month LIBOR + 1.60
Trust FCBI10,310 1.75 %10,310 1.77 %9/30/200512/15/2035
3-month LIBOR + 1.55
Trust CS 2005-182,475 2.15 %82,475 2.17 %11/21/200512/15/2035
3-month LIBOR + 1.95
Trust CS 2005-2128,866 2.08 %128,866 2.16 %12/14/20051/30/2036
3-month LIBOR + 1.95
Trust CS 2006-151,545 2.08 %51,545 2.16 %2/22/20064/30/2036
3-month LIBOR + 1.95
Trust CS 2006-251,550 2.08 %51,550 2.16 %9/27/200610/30/2036
3-month LIBOR + 1.95
Trust CS 2006-3 (4)
29,306 1.49 %31,487 1.54 %9/29/200610/30/2036
3-month EURIBOR + 2.05
Trust CS 2006-416,470 2.08 %16,470 2.16 %12/5/20061/30/2037
3-month LIBOR + 1.95
Trust CS 2006-56,650 2.08 %6,650 2.16 %12/19/20061/30/2037
3-month LIBOR + 1.95
Trust CS 2007-239,177 2.08 %39,177 2.16 %6/13/20077/30/2037
3-month LIBOR + 1.95
Total subordinated debt935,728 2.64 %543,275 2.24 %
Acquisition discount (5)
(72,445)(77,463)
Net subordinated debt$863,283 $465,812 
___________________
(1)    Rates do not include the effects of discounts and issuance costs.
(2)    Net of unamortized issuance costs of $5.4 million.
(3)    Interest rate is fixed until May 1, 2026, when it changes to a floating rate and resets quarterly at a benchmark rate plus 252 basis points.
(4)    Denomination is in Euros with a value of €25.8 million.
(5)    Amount represents the fair value adjustment on trust preferred securities assumed in acquisitions.
(6)    Interest rate will default to the last published or determined rate of LIBOR, and for Trust CS 2006-4, the Base Rate, defined as the greater of Prime and the federal funds rate, upon cessation of LIBOR and effectively converting these instruments to fixed rate, if not modified prior to June 30, 2023.
Subordinated Notes Offering
On April 30, 2021, the Bank completed the sale of $400 million aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes (the "Notes") due May 1, 2031 (the “Maturity Date”). Subject to any redemption prior to the Maturity Date, the Notes will bear interest from and including the original issue date to, but excluding, May 1, 2026 (the “Reset Date”), at a fixed rate of 3.25% per annum and from and including the Reset Date, but excluding the Maturity Date, the Notes will bear interest at a floating per annum rate equal to a benchmark rate (which is expected to be the Three-Month Term SOFR) plus 252 basis points.
Interest on the Notes will be payable on May 1 and November 1 of each year through, but not including, the Reset Date, and quarterly thereafter on February 1, May 1, August 1, and November 1 of each year to, but not including, the Maturity Date or earlier redemption date. The first interest payment will be made on November 1, 2021. The Bank may, at its option, beginning with the interest payment date of May 1, 2026, and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part, from time to time, subject to any required regulatory approval to the extent such approval is then required, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption, subject to certain conditions. The costs incurred in connection with the Notes offering amortize to interest expense over the term of the Notes. The Notes qualify as Tier 2 capital for regulatory capital purposes.