Borrowings and Federal Home Loan Bank Advances

6 Months Ended

Jun. 30, 2016

Short Term Debt Other Disclosures [Abstract]

Borrowings and Federal Home Loan Bank Advances

NOTE 9 – Borrowings and Federal Home Loan Bank Advances

Our short-term financing is generally obtained through short-term bank line financing on an uncommitted, secured basis, committed bank line financing on an unsecured basis, advances from the Federal Home Loan Bank, term loans, and securities lending arrangements. We borrow from various banks on a demand basis with company-owned and customer securities pledged as collateral. The value of customer-owned securities used as collateral is not reflected in the consolidated statements of financial condition.

The following table details the components of borrowings (in thousands):

	June 30, 2016		December 31, 2015
Borrowings on secured lines of credit	$	283,200	$	30,000
Term loans		51,957		59,084
	$	335,157		89,084

Our uncommitted secured lines of credit at June 30, 2016, totaled $980.0 million with six banks and are dependent on having appropriate collateral, as determined by the bank agreements, to secure an advance under the line. The availability of our uncommitted lines is subject to approval by the individual banks each time an advance is requested and may be denied. Our peak daily borrowing on our uncommitted secured lines was $525.7 million during the three months ended June 30, 2016. There are no compensating balance requirements under these arrangements. Any borrowings on secured lines of credit are generally utilized to finance certain fixed income securities. At June 30, 2016, our uncommitted secured lines of credit were collateralized by company-owned securities valued at $629.0 million.

Our committed bank line financing at June 30, 2016, consisted of a $100.0 million revolving credit facility. The credit facility expires in December 2017. The applicable interest rate under the revolving credit facility is calculated as a per annum rate equal to the London Interbank Offered Rate (“LIBOR”) plus 2.00%, as defined in the revolving credit facility. At June 30, 2016, we had no advances on our revolving credit facility and were in compliance with all covenants.

The Federal Home Loan advances as of June 30, 2016 are floating-rate advances. The weighted average interest rates on these advances during the three months ended June 30, 2016 was 1.32%. The advances are secured by Stifel Bank’s residential mortgage loan portfolio and investment portfolio. The interest rates reset on a daily basis. Stifel Bank has the option to prepay these advances without penalty on the interest reset date.

As of June 30, 2016, a subsidiary of the Parent was a party to two Term Loans (“Term Loans”). The Term Loans mature on August 3, 2016. The interest rate under the Amended and Restated Credit Agreement is calculated as a per annum rate equal to LIBOR, as defined. During the three months ended June 30, 2016, the weighted average interest rate on these term loans was 1.96%. The Term Loans were paid-off in July 2016.