NOTE 11 - BORROWING ARRANGEMENTS

 

We have established secured and unsecured lines of credit. We  may borrow funds from time to time on a term or overnight basis from the FHLB, the Federal Reserve Bank of San Francisco (“FRB”) and other financial institutions as indicated below.

 

FHLB Secured Line of Credit and Advances. At  December 31, 2025, the Bank had a secured borrowing capacity with the FHLB of $1.4 billion collateralized by pledged residential and commercial loans with a carrying value of $1.9 billion. At  December 31, 2025, we had no overnight advances and $130.0 million of putable term advances, with various call dates at the option of the FHLB, and a weighted average rate of 3.49%. The remaining secured borrowing capacity with the FHLB was $1.3 billion as of December 31, 2025. We recognized interest on FHLB advances of $5.2 million, $2.2 million, and $2.9 million for the years ended December 31, 2025, 2024, and 2023.

 
The details of the FHLB term advances outstanding at December 31, 2025, are shown in the table below:
 

Advance Date

 

Amount

  

Rate

 

Call Structure

 

Next Call Date

 

Final Stated Maturity Date

  

(dollars in thousands)

5/8/2025

 $10,000   3.69%

One time call

  N/A 

5/10/2028

6/23/2025

  10,000   3.64%

One time call

  N/A 

6/23/2028

5/8/2025

  20,000   3.49%

Quarterly call

 

2/10/2026

 

5/10/2028

8/14/2025

  20,000   3.38%

Quarterly call

 

2/14/2026

 

8/14/2028

3/12/2025

  20,000   3.34%

Quarterly call

 

3/12/2026

 

3/12/2029

3/14/2025

  20,000   3.49%

Quarterly call

 

3/15/2026

 

3/15/2029

5/8/2025

  20,000   3.52%

Quarterly call (1)

 

5/8/2026

 

5/8/2029

6/23/2025

  10,000   3.55%

Quarterly call (1)

 

6/23/2026

 

6/23/2028

Total

 $130,000   3.49%

Weighted average rate

    

(1) Call option after initial one year lock out.

 

FRB Secured Line of Credit. At  December 31, 2025, the Bank had a secured borrowing capacity with the FRB of $66.5 million collateralized by pledged loans with a carrying value of $88.9 million.

 

Federal Funds Arrangements with Commercial Banks. At  December 31, 2025, the Bank  may borrow on an unsecured basis, up to $97.0 million from other financial institutions.

 

There were no amounts outstanding under any of the other borrowing arrangements above as of December 31, 2025, except the FHLB term advances totaling $130.0 million.

 

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Mar 17, 2025
2023Mar 12, 2024
2022Apr 7, 2023
2021Mar 11, 2022
2020Mar 9, 2021
2019Mar 17, 2020
2018Mar 27, 2019
2017Mar 30, 2018

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.