v3.26.1
Other Borrowings
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Other Borrowings
8. OTHER BORROWINGS
The following table summarizes the Company’s other borrowings by type: 
March 31, 2026December 31, 2025
(in millions)
Short-Term:
FHLB advances$4,500 $3,800 
Secured borrowings24 48 
Total short-term borrowings$4,524 $3,848 
Long-Term:
FHLB advances$700 $1,000 
Credit linked notes, net386 392 
Total long-term borrowings$1,086 $1,392 
Total other borrowings$5,610 $5,240 
Short-Term Borrowings
Federal Funds Lines of Credit
The Company maintains uncommitted overnight federal funds lines of credit, which have rates comparable to the federal funds effective rate plus 0.10% to 0.20%. There were no outstanding borrowings on federal funds lines of credit as of March 31, 2026 and December 31, 2025.
FHLB and FRB Advances
The Company also maintains secured overnight lines of credit with the FHLB and the FRB. The Company’s borrowing capacity is determined based on collateral pledged at the time of the borrowing, generally consisting of investment securities and loans. As of March 31, 2026 and December 31, 2025, the Company had additional available credit with the FHLB of $7.2 billion and $8.8 billion, respectively. The weighted average rate on short-term FHLB advances was 3.98% and 4.02% as of March 31, 2026 and December 31, 2025, respectively.
Total available credit with the FRB was $15.7 billion and $17.8 billion as of March 31, 2026 and December 31, 2025, respectively, of which no amounts were drawn.
Repurchase Agreements
Warehouse borrowing lines of credit are used to finance the acquisition of loans through the use of repurchase agreements. Repurchase agreements operate as financings under which the Company transfers loans to secure these borrowings. The borrowing amounts are based on the attributes of the collateralized loans and are defined in the repurchase agreement of each warehouse lender. The Company retains beneficial ownership of the transferred loans and will receive the loans from the lender upon full repayment of the borrowing. The repurchase agreements may require the Company to transfer additional assets to the lender in the event the estimated fair value of the existing transferred loans declines.
As of March 31, 2026 and December 31, 2025, the Company had access to approximately $2.1 billion in uncommitted warehouse funding, of which no amounts were drawn.
Secured Borrowings
Secured borrowings consist of transfers of loans HFS not qualifying for sales accounting treatment. The weighted average interest rate on secured borrowings was 6.00% and 6.14% as of March 31, 2026 and December 31, 2025, respectively.
Long-Term Borrowings
FHLB Advances
The Company also enters into long-term advances with the FHLB. The Company's borrowing capacity is determined based on the collateral pledged at the time of the borrowing, consisting of the same pools of investment securities and loans pledged for the short-term FHLB advances. The interest rates on these advances are based on daily SOFR plus a fixed spread. The Company may redeem the advances at par plus accrued and unpaid interest plus a make-whole provision upon termination that is based on the interest rate difference between the then current advance interest rate and the interest rate on the terminated advance. After three months from the inception date of the advances, prepayments are no longer subject to the make-whole provision. The weighted average rate on these long-term FHLB advances was 4.05% and 4.24% as of March 31, 2026 and December 31, 2025, respectively.
The Company's outstanding long-term FHLB advances are detailed in the tables below:
March 31, 2026
DescriptionIssuance DateMaturity DateInterest RatePrincipal
(in millions)
FHLB advanceJanuary 30, 2026April 30, 2027
SOFR + 0.37%
$700 
Total$700 
December 31, 2025
DescriptionIssuance DateMaturity DateInterest RatePrincipal
(in millions)
FHLB advanceOctober 30, 2025February 1, 2027
SOFR + 0.38%
$500 
FHLB advanceNovember 26. 2025February 26, 2027
SOFR + 0.36%
500 
Total$1,000 
Credit Linked Notes
The Company entered into credit linked note transactions that effectively transfer the risk of first losses on reference pools of the Company's loans purchased under its residential mortgage purchase program to the purchasers of the notes. The principal and interest payable on these notes may be reduced by a portion of the Company's loss on such loans if one of the following occurs with respect to a covered loan: (i) realized losses incurred by the Company on a loan following a liquidation of the loan or certain other events, or (ii) a modification of the loan resulting in a reduction in payments. The aggregate losses, if any, for each payment date will be allocated to reduce the class principal amount and (for modifications) the current interest of the notes in reverse order of class priority. Losses on residential mortgages have not generally been significant. Monthly principal payments on the notes are based on the principal payments of the underlying mortgages.
The Company's outstanding credit linked note issuances are detailed in the tables below:
March 31, 2026
DescriptionIssuance DateMaturity DateInterest RatePrincipalUnamortized Debt Issuance Costs
(in millions)
Residential mortgage loans (1)December 12, 2022October 25, 2052
SOFR + 7.80%
$79 $2 
Residential mortgage loans (2)June 30, 2022April 25, 2052
SOFR + 6.00%
157 3 
Residential mortgage loans (3)December 29, 2021July 25, 2059
SOFR + 4.67%
165 2 
Total$401 $7 
December 31, 2025
DescriptionIssuance DateMaturity DateInterest RatePrincipalUnamortized Debt Issuance Costs
(in millions)
Residential mortgage loans (1)December 12, 2022October 25, 2052
SOFR + 7.80%
$80 $2 
Residential mortgage loans (2)June 30, 2022April 25, 2052
SOFR + 6.00%
160 3 
Residential mortgage loans (3)December 29, 2021July 25, 2059
SOFR + 4.67%
167 2 
Total$407 $7 
(1)    There are multiple classes of these notes, each with an interest rate of one-month SOFR plus a spread that ranges from 2.25% to 11.00% (or, a weighted average spread of 7.80%) on a reference pool balance of $1.5 billion and $1.6 billion as of March 31, 2026 and December 31, 2025, respectively.
(2)    There are multiple classes of these notes, each with an interest rate of one-month SOFR plus a spread that ranges from 2.25% to 15.00% (or, a weighted average spread of 6.00%) on a reference pool balance of $3.2 billion as of March 31, 2026 and December 31, 2025.
(3)    There are six classes of these notes, each with an interest rate of one-month SOFR plus a spread that ranges from 3.15% to 8.50% (or, a weighted average spread of 4.67%) on a reference pool balance of $3.2 billion and $3.3 billion as of March 31, 2026 and December 31, 2025, respectively.
9. QUALIFYING DEBT
Subordinated Debt
The Company's subordinated debt issuances are detailed in the tables below:
March 31, 2026
DescriptionIssuance DateMaturity DateInterest RatePrincipalUnamortized Debt Issuance Costs
(in millions)
WAL fixed-to-variable-rate (1)June 2021June 15, 20313.00 %$600 $4 
WAB fixed-to-variable-rate (2)November 2025November 15, 20356.54 %400 4 
Total$1,000 $8 
December 31, 2025
DescriptionIssuance DateMaturity DateInterest RatePrincipalUnamortized Debt Issuance Costs
(in millions)
WAL fixed-to-variable-rate (1)June 2021June 15, 20313.00 %$600 $4 
WAB fixed-to-variable-rate (2)November 2025November 15, 20356.54 %400 4 
Total$1,000 $8 
(1)    Notes are redeemable, in whole or in part, beginning on June 15, 2026 at their principal amount plus accrued and unpaid interest and has a fixed interest rate of 3.00%. The notes also convert to a variable rate of three-month SOFR plus 225 basis points on this date.
(2)    Notes are redeemable, in whole but not in part, on or after November 15, 2030 and in whole or in part, on or after August 15, 2035, at their principal amount plus accrued and unpaid interest. The notes have a fixed interest rate of approximately 6.54% through November 14, 2030 and then convert to a fixed rate per annum equal to the U.S. Treasury Rate for a five-year maturity plus 285 basis points.
The carrying value of all subordinated debt issuances totaled $988 million and $990 million at March 31, 2026 and December 31, 2025, respectively.
Junior Subordinated Debt
The Company has formed or acquired through acquisition eight statutory business trusts, which exist for the exclusive purpose of issuing Cumulative Trust Preferred Securities. Trust Preferred Securities are hybrid financial instruments, primarily issued by bank holding companies to raise capital. The obligations under these instruments are fully and unconditionally guaranteed by the Company and rank subordinate and junior in right of payment to all other liabilities of the Company. In the event of certain changes or amendments to regulatory requirements or federal tax rules, the debt is redeemable in whole. Based on guidance issued by the FRB, the Company's securities continue to qualify as Tier 1 Capital.
With the exception of debt issued by Bridge Capital Trust I and Bridge Capital Trust II, junior subordinated debt is recorded at fair value at each reporting date due to the FVO election made by the Company under ASC 825. The Company did not make the FVO election for the junior subordinated debt acquired in the Bridge acquisition. Accordingly, the carrying value of these trusts does not reflect the current fair value of the debt and includes a fair market value adjustment established at acquisition that is being accreted over the remaining life of the trusts.
The carrying value of junior subordinated debt was $84 million and $86 million as of March 31, 2026 and December 31, 2025, respectively, with maturity dates ranging from 2033 through 2037. The weighted average interest rate of all junior subordinated debt as of March 31, 2026 and December 31, 2025 was 6.28% and 6.25%, respectively.