Federal Home Loan Bank Advances and Long-Term Debt

FHLB Advances

FHLB advances to the Bank totaled $326.2 million and $323.9 million as of December 31, 2018 and 2017, respectively. The FHLB advances have floating interest rates that reset monthly or quarterly based on LIBOR. The weighted-average interest rate was 2.87% and 1.85% as of December 31, 2018 and 2017, respectively. The interest rates ranged from 1.79% to 2.98% and 0.67% to 1.95% for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, FHLB advances that will mature in the next five years include $81.9 million in 2019 and $244.3 million in 2022.

The Bank’s available borrowing capacity from FHLB advances totaled $6.11 billion and $6.83 billion as of December 31, 2018 and 2017, respectively. The Bank’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, 2018 and 2017, 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, 2018 and 2017:




($ in thousands)	December 31,
($ in thousands)	2018		2017
Junior subordinated debt	$	146,835	$	146,577
Term loan	—		25,000
Total long-term debt	$	146,835	$	171,577

Junior Subordinated Debt

As of December 31, 2018, East West 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 East West’s various pooled trust preferred securities offerings. The Trusts issued both fixed and variable rate capital securities, representing undivided preferred beneficial interests in the assets of the Trusts, to third party investors. East West is the owner of all the beneficial interests represented by the common securities of the Trusts. 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 East West’s wholly-owned subsidiaries in conjunction with these transactions. The common stock is recorded in Other assets on the Consolidated Balance Sheet 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 as of December 31, 2018 and 2017:




Issuer	Stated Maturity ⁽¹⁾	Stated Interest Rate	Current Rate	December 31, 2018				December 31, 2017
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%	4.45%	$	464	$	15,000	$	464	$	15,000
East West Capital Trust VI	September 2035	3-month LIBOR + 1.50%	4.29%	619		20,000		619		20,000
East West Capital Trust VII	June 2036	3-month LIBOR + 1.35%	4.14%	928		30,000		928		30,000
East West Capital Trust VIII	June 2037	3-month LIBOR + 1.40%	4.14%	619		18,000		619		18,000
East West Capital Trust IX	September 2037	3-month LIBOR + 1.90%	4.69%	928		30,000		928		30,000
MCBI Statutory Trust I	December 2035	3-month LIBOR + 1.55%	4.34%	1,083		35,000		1,083		35,000
Total				$	4,641	$	148,000	$	4,641	$	148,000


(1)	All the debt instruments mature more than five years after December 31, 2018 and are subject to call options where early redemption requires appropriate notice.

The proceeds from these issuances represent liabilities of East West to the Trusts and are reported on the Consolidated Balance Sheet as a component of Long-term debt. Interest payments on these securities are made quarterly and are deductible for tax purposes.

Term Loan

In 2013, East West 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 were 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 3.60% and 2.70% for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the term loan had no outstanding balances as East West had made all scheduled principal repayments on the term loan. As of December 31, 2017, the outstanding balance of the term loan was $25.0 million.