Hanmi Financial Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

FHLB Advances and Other Borrowings

FHLB Advances and Other Borrowings

12 Months Ended

Dec. 31, 2016

FHLB advances and other borrowings consisted of the following:



	As of December 31,
	2016		2015
	(In thousands)
FHLB advances	$	315,000	$	170,000
Total FHLB advances	$	315,000	$	170,000

FHLB advances represent collateralized obligations with the FHLB. The following is a summary of contractual maturities pertaining to FHLB advances:



Year of Maturity	Amount		Weighted- Average Interest Rate
	(In thousands)
2017	$	315,000	0.55	%
Total	$	315,000	0.55	%

The following is financial data pertaining to FHLB advances:



	As of December 31,
	2016			2015			2014
	(In thousands)
Weighted-average interest rate at end of year	0.55		%	0.27		%	0.27		%
Weighted-average interest rate during the year	0.45		%	0.20		%	0.21		%
Average balance of FHLB advances	$	196,708		$	38,110		$	69,781
Maximum amount outstanding at any month-end	$	320,000		$	180,000		$	150,000

We have pledged loans receivable with market values of $993.2 million as collateral with the FHLB for this borrowing facility. The total borrowing capacity available from the collateral that has been pledged is $736.6 million, of which $421.6 million remained available as of December 31, 2016. At December 31, 2016, we had $10.5 million available for use through the Fed Discount Window, as we pledged loans receivable with carrying values of $10.7 million, and there were no borrowings.

At December 31, 2016, advances from the FHLB were $315.0 million, an increase of $145.0 million from $170.0 million at December 31, 2015, and the FHLB advances were all overnight borrowings at December 31, 2016. For the years ended December 31, 2016, 2015 and 2014 interest expense on FHLB advances were $879,000, $76,000 and $151,000, respectively, and the weighted-average interest rates were 0.45 percent, 0.20 percent and 0.21 percent, respectively.