v3.26.1
Borrowings and Subordinated Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Borrowings and Subordinated Debentures BORROWINGS AND SUBORDINATED DEBT
Borrowings
The following table summarizes our borrowings as of the dates indicated:
March 31, 2026December 31, 2025
WeightedWeighted
Borrowing TypeBalanceAverage RateBalanceAverage Rate
(Dollars in thousands)
FHLB secured advances$2,000,000 3.91 %$1,710,185 3.90 %
Other short-term borrowings440,000 3.68 %240,000 3.69 %
Credit-linked notes111,250 14.41 %113,634 14.63 %
Total borrowings, net$2,551,250 4.33 %$2,063,819 4.47 %
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 of $6.9 billion as of March 31, 2026, collateralized by a blanket lien on $10.1 billion of qualifying loans and $19.8 million of securities. As of March 31, 2026, there were $476.0 million in letters of credit pledged and a $2.0 billion balance outstanding. As of December 31, 2025, there were $514.1 million in letters of credit pledged and a $1.7 billion balance outstanding.
The following table presents the interest rates and maturity dates of FHLB secured advances as of the date indicated:
March 31, 2026
Maturity
FHLB Secured AdvancesBalanceRateDate
(Dollars in thousands)
Term advance$100,000 3.95 %05/21/2026
Term advance150,000 3.95 %05/26/2026
Term advance100,000 3.94 %07/27/2026
Term advance150,000 3.95 %07/30/2026
Term advance (1)
150,000 4.59 %06/26/2026
Term advance100,000 3.79 %02/01/2027
Term advance100,000 3.79 %03/01/2027
Term advance100,000 3.78 %04/01/2027
Term advance (1)
150,000 4.63 %05/28/2027
Term advance (1)
150,000 4.63 %06/03/2027
Term advance (1)
150,000 4.39 %06/03/2027
Term advance100,000 3.88 %06/24/2027
Term advance (1)
500,000 3.18 %09/18/2034
Total FHLB secured advances$2,000,000 3.91 %
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(1)    Represents FHLB term advances that include a put feature, which allows the FHLB to terminate the advance before its scheduled maturity date.
FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2026, the Bank had secured borrowing capacity of $5.3 billion collateralized by liens covering $5.0 billion of qualifying loans and $1.4 billion of securities. As of March 31, 2026 and December 31, 2025, there were no balances outstanding.
Holding Company Line of Credit Arrangement. As of March 31, 2026, we have a $100.0 million unsecured revolving line of credit available. The rate is based on 1-month SOFR plus a spread of 2.25% basis points. As of March 31, 2026 and December 31, 2025, there was no balance outstanding.
Credit-Linked Notes. On September 29, 2022, legacy Pacific Western Bank completed a credit-linked notes transaction. The notes were issued in five classes, each with an interest rate of SOFR plus a spread that ranges from 8.00% to 13.25%, with a weighted average spread of 10.75% at March 31, 2026. The notes are linked to the credit risk of an approximately $2.1 billion reference pool of previously purchased SFR mortgage loans at March 31, 2026. The notes are due June 27, 2052. Principal payments on the notes are based only on principal that is actually collected on these loans. The notes are reported at fair value of $111.3 million at March 31, 2026. See "Note 2. Restricted Cash" for information regarding the collateral for the notes and "Note 11. Fair Value Measurements and Fair Value of Financial Instruments" for additional information.
Other Short-Term Borrowing Arrangements. As of March 31, 2026, the Bank had credit limits of $215.0 million in the aggregate with several commercial banks, as well as borrowing arrangements with unaffiliated financial institutions that provide for the purchase of overnight funds and other short-term borrowings. The availability of these unsecured borrowings fluctuates regularly and is subject to the discretion of the counterparties. These lines are renewable annually and have no unused commitment fees. As of March 31, 2026 $440.0 million was outstanding under these arrangements compared to $240.0 million outstanding as of December 31, 2025.
Subordinated Debt
The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:
March 31, 2026December 31, 2025DateMaturityRate Index
SeriesBalance
Rate (1)
Balance
Rate (1)
IssuedDate
(Quarterly Reset)
(Dollars in thousands)
Subordinated notes, net (2)(3)
$381,877 3.25 %$381,737 3.25 %04/30/202105/01/2031Fixed rate
Subordinated notes (4)
75,000 7.86 %75,000 8.05 %10/30/202010/30/2030
3-month Term SOFR + 4.195%
Trust V10,310 7.04 %10,310 7.07 %08/15/200309/17/2033
3-month Term SOFR + 3.10
Trust VI10,310 6.99 %10,310 7.03 %09/03/200309/15/2033
3-month Term SOFR + 3.05
Trust CII5,155 6.89 %5,155 6.92 %09/17/200309/17/2033
3-month Term SOFR + 2.95
Trust VII61,856 6.68 %61,856 6.85 %02/05/200404/23/2034
3-month Term SOFR + 2.75
Trust CIII20,619 5.63 %20,619 5.67 %08/15/200509/15/2035
3-month Term SOFR + 1.69
Trust FCCI16,495 5.54 %16,495 5.58 %01/25/200703/15/2037
3-month Term SOFR + 1.60
Trust FCBI10,310 5.49 %10,310 5.53 %09/30/200512/15/2035
3-month Term SOFR + 1.55
Trust CS 2005-182,475 5.89 %82,475 5.93 %11/21/200512/15/2035
3-month Term SOFR + 1.95
Trust CS 2005-2128,866 5.88 %128,866 6.05 %12/14/200501/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-151,545 8.70 %51,545 9.20 %02/22/200604/30/2036
Prime + 1.95
Trust CS 2006-251,550 5.88 %51,550 6.05 %09/27/200610/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-3 (5)
29,778 4.08 %30,275 4.12 %09/29/200610/30/2036
3-month EURIBOR + 2.05
Trust CS 2006-4 16,470 8.70 %16,470 9.20 %12/05/200601/30/2037
Prime + 1.95
Trust CS 2006-5 6,650 5.88 %6,650 6.05 %12/19/200601/30/2037
3-month Term SOFR + 1.95
Trust CS 2007-239,177 5.88 %39,177 6.05 %06/13/200707/30/2037
3-month Term SOFR + 1.95
PMB Statutory Trust III7,217 7.37 %7,217 7.35 %09/16/200209/26/2032
3-month Term SOFR + 3.40
PMB Capital Trust III10,310 5.93 %10,310 6.15 %10/04/200410/08/2034
3-month Term SOFR + 2.00
Total subordinated debt1,015,970 5.24 %1,016,327 5.35 %
Acquisition discount (6)
(61,898)(63,587)
Total subordinated debt, net$954,072 $952,740 
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(1)    Rates do not include the effects of discounts and issuance costs.
(2)    Net of unamortized issuance costs of $3.1 million at March 31, 2026 and $3.3 million at December 31, 2025.
(3)    The subordinated notes, which were issued at the Bank level rather than the holding company level, carried a fixed interest rate until May 1, 2026. On that date, the Company redeemed the outstanding principal amount of $385 million. The balance reflected in the table above differs from the redemption amount due to the carrying value of the subordinated notes, which includes the impact of unamortized debt issuance discount at the reporting date. For more information see “Note 17. Subsequent Events” in Item 1 of this Form 10‑Q.
(4)    Interest rate was fixed at 4.375% until October 30, 2025, when it changed to a floating rate equal to 3-month Term SOFR, plus a spread of 419.5 basis points.
(5)    Denomination is in Euros with a value of €25.8 million
(6)    Amount represents the fair value adjustment on subordinated debt assumed in acquisitions.