XML 38 R18.htm IDEA: XBRL DOCUMENT v3.20.4
Federal Home Loan Bank Advances and Long-Term Debt
 12 Months Ended
Dec. 31, 2020
FEDERAL HOME LOAN BANK ADVANCES AND LONG-TERM DEBT  
Federal Home Loan Bank Advances and Long-Term Debt Federal Home Loan Bank Advances and Long-Term Debt
The following table presents the balance of the Company’s junior subordinated debt and FHLB advances as of December 31, 2020 and 2019, and the related contractual rates and maturity dates as of December 31, 2020:
($ in thousands)
Interest Rate		 Maturity DatesDecember 31,
20202019
AmountAmount
Parent Company
Junior subordinated debt (1 ) — floating
1.57% — 2.12%
2034 — 2037$147,376 $147,101 
Bank
FHLB advances (2):
Fixed
0.00% — 2.34%
2021405,000 400,000 
Floating (3)
0.60% — 0.63%
2022247,612 345,915 
Total FHLB advances$652,612 $745,915 
(1)The weighted-average contractual interest rates for junior subordinated debt were 2.26% and 3.98% as of December 31, 2020 and 2019, respectively.
(2)The weighted-average contractual interest rates for FHLB advances were 1.77% and 2.19% as of December 31, 2020 and 2019, respectively.
(3)Floating interest rates reset monthly or quarterly based on LIBOR.

FHLB Advances

The Bank’s available borrowing capacity from FHLB advances totaled $6.33 billion and $6.83 billion as of December 31, 2020 and 2019, 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, 2020 and 2019, all advances were secured by real estate loans.

Long-Term Debt — Junior Subordinated Debt

As of December 31, 2020, 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 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.
The following table presents the outstanding junior subordinated debt issued by each trust as of December 31, 2020 and 2019:
Issuer
Stated
Maturity (1)
Stated
Interest Rate		Current RateDecember 31, 2020December 31, 2019
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 VNovember 2034
3-month LIBOR + 1.80%
2.01%$464 $15,000 $464 $15,000 
East West Capital Trust VISeptember 2035
3-month LIBOR + 1.50%
1.72%619 20,000 619 20,000 
East West Capital Trust VIIJune 2036
3-month LIBOR + 1.35%
1.57%928 30,000 928 30,000 
East West Capital Trust VIIIJune 2037
3-month LIBOR + 1.40%
1.63%619 18,000 619 18,000 
East West Capital Trust IXSeptember 2037
3-month LIBOR + 1.90%
2.12%928 30,000 928 30,000 
MCBI Statutory Trust IDecember 2035
3-month LIBOR + 1.55%
1.77%1,083 35,000 1,083 35,000 
Total$4,641 $148,000 $4,641 $148,000 
(1)All the above debt instruments mature more than five years after December 31, 2020 and are subject to call options where early redemption requires appropriate notice.