NOTE 11 — FHLB ADVANCES AND LONG-TERM DEBT

FHLB Advances

FHLB advances totaled $321.6 million and $1.02 billion as of December 31, 2016 and 2015, respectively. The FHLB advances have floating interest rates that reset monthly or quarterly based on London Interbank Offered Rate (“LIBOR”). The weighted average interest rate was 1.13% and 0.51% as of December 31, 2016 and 2015, respectively. The interest rates ranged from 0.41% to 1.27% and 0.51% to 0.63% in 2016 and 2015, respectively. As of December 31, 2016, FHLB advances that will mature in the next five years are as follows: 2017 — $0.0 million; 2018 — $0.0 million; 2019 — $80.6 million; 2020 — $0.0 million; 2021 — $0.0 million and thereafter — $241.0 million.

The Company’s available borrowing capacity from FHLB advances totaled $5.58 billion and $4.45 billion as of December 31, 2016 and 2015, respectively. The Company’s available borrowing capacity from the FHLB is derived from its portfolio of loans that are pledged to the FHLB reduced by its outstanding FHLB advances. As of December 31, 2016 and 2015, all advances were secured by real estate loans.

Long-Term Debt

The following table presents the components of long-term debt as of December 31, 2016 and 2015:




($ in thousands)	December 31,
($ in thousands)	2016		2015
Junior subordinated debt	$	146,327	$	146,084
Term loan	40,000		60,000
Total long-term debt	$	186,327	$	206,084

Junior Subordinated Debt — As of December 31, 2016, the Company has six statutory business trusts for the purpose of issuing junior subordinated debt to third party investors. The junior subordinated debt was issued in connection with the Company’s various pooled trust preferred securities offerings. The junior subordinated debt is recorded as a component of long-term debt and includes the value of the common stock issued by six of the Company’s wholly-owned subsidiaries in conjunction with these transactions. The common stock is recorded in other assets for the amount issued in connection with these junior subordinated debt issuances.

The following table presents the outstanding junior subordinated debt issued by each trust:




Issuer	Stated Maturity ⁽¹⁾	Stated Interest Rate	Current Rate	December 31, 2016				December 31, 2015
Issuer	Stated Maturity ⁽¹⁾	Stated Interest Rate	Current Rate	Aggregate Principal Amount of Trust Securities		Aggregate Principal Amount of the Junior Subordinated Debts		Aggregate Principal Amount of Trust Securities		Aggregate Principal Amount of the Junior Subordinated Debts
($ in thousands)
East West Capital Trust V	November 2034	3-month LIBOR + 1.80%	2.72%	$	464	$	15,000	$	464	$	15,000
East West Capital Trust VI	September 2035	3-month LIBOR + 1.50%	2.46%	619		20,000		619		20,000
East West Capital Trust VII	June 2036	3-month LIBOR + 1.35%	2.31%	928		30,000		928		30,000
East West Capital Trust VIII	June 2037	3-month LIBOR + 1.40%	2.35%	619		18,000		619		18,000
East West Capital Trust IX	September 2037	3-month LIBOR + 1.90%	2.86%	928		30,000		928		30,000
MCBI Statutory Trust I	December 2035	3-month LIBOR + 1.55%	2.51%	1,083		35,000		1,083		35,000
Total				$	4,641	$	148,000	$	4,641	$	148,000


(1)	All the above debt instruments are subject to call options where early redemption requires appropriate notice.

The proceeds from these issuances represent liabilities of the Company to the Trusts and are reported on the Consolidated Balance Sheets as a component of long-term debt. Interest payments on these securities are made quarterly and are deductible for tax purposes. Beginning in 2016, trust preferred securities no longer qualify as Tier I capital and are limited to Tier II capital for regulatory purposes, based on the final rules issued by the Federal Reserve (“Basel III Capital Rules”). For further discussion, see Item 1. Business — Supervision and Regulation — Capital Requirements.

Term Loan — In 2013, the Company entered into a $100.0 million three-year term loan agreement. The terms of the agreement were modified in 2015 to extend the term loan maturity from July 1, 2016 to December 31, 2018, where principal repayments of $5.0 million are due quarterly. The term loan bears interest at the rate of the three-month LIBOR plus 150 basis points and the weighted average interest rate was 2.24% and 1.83% for the years ended December 31, 2016 and 2015, respectively. The outstanding balance of the term loan was $40.0 million and $60.0 million as of December 31, 2016 and 2015, respectively.