Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at December 31, 2016 and 2015:



				Carrying Value
(Dollars in thousands)	Maturity	Principal value at December 31, 2016		December 31, 2016		December 31, 2015
Short-term borrowings:
Short-term FHLB advances	January 6, 2017	$	500,000	$	500,000	$	638,000
Federal funds purchased	-	—		—		135,000
Other short-term borrowings	(1)	12,668		12,668		1,900
Total short-term borrowings				$	512,668	$	774,900
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350,000	$	346,979	$	346,667
5.375% Senior Notes	September 15, 2020	350,000		347,586		347,016
6.05% Subordinated Notes (2)	June 1, 2017	45,964		46,646		48,350
7.0% Junior Subordinated Debentures	October 15, 2033	50,000		54,493		54,669
Total long-term debt				$	795,704	$	796,702


(1)	Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor, which includes an interest rate swap agreement related to our 6.05% Subordinated Notes.


(2)	At December 31, 2016 and 2015, included in the carrying value of our 6.05% Subordinated Notes were $0.8 million and $2.8 million, respectively, related to hedge accounting associated with the notes.

The aggregate annual maturities of long-term debt obligations as of December 31, 2016 are as follows:



Year ended December 31, (Dollars in thousands):	Amount
2017	$	46,646
2018	—
2019	—
2020	347,586
2021	—
2022 and thereafter	401,472
Total	$	795,704

Interest expense related to short-term borrowings and long-term debt was $37.3 million, $34.9 million and $23.2 million in 2016, 2015 and 2014, respectively. Interest expense is net of the hedge accounting impact from our interest rate swap agreements related to our 6.05% Subordinated Notes. The weighted average interest rate associated with our short-term borrowings was 0.59 percent as of December 31, 2016 and 0.32 percent as of December 31, 2015.

3.50% Senior Notes

In January 2015, SVB Financial issued $350 million of 3.50% Senior Notes due in January 2025. We received net proceeds of approximately $346.4 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 3.50% Senior Notes at December 31, 2016 was $347.0 million, which is reflective of $3.0 million of debt issuance costs and a $0.3 million discount.

5.375% Senior Notes

In September 2010, SVB Financial issued $350 million of 5.375% Senior Notes due in September 2020. We received net proceeds of $345 million after deducting underwriting discounts and commissions and other expenses. We used approximately $250 million of the net proceeds from the sale of the notes to meet obligations due on our 3.875% Convertible Notes, which matured in April 2011. The remaining net proceeds were used for general corporate purposes, including working capital.

6.05% Subordinated Notes

In May 2007, the Bank issued 6.05% Subordinated Notes, due in June 2017, in an aggregate principal amount of $250 million ("6.05% Subordinated Notes"). Concurrent with the issuance of the 6.05% Subordinated Notes, we entered into a fixed-to-variable interest rate swap agreement. See Note 13—"Derivative Financial Instruments" of the "Notes to the Consolidated Financial Statements" under Part II, Item 8 of this report for additional details.

7.0% Junior Subordinated Debentures

In October 2003, SVB Financial issued $50 million in 7.0% Junior Subordinated Debentures to a special-purpose trust, SVB Capital II. Distributions to SVB Capital II are cumulative and are payable quarterly at a fixed rate of 7.0 percent per annum of the face value of the junior subordinated debentures. Distributions for each of 2016, 2015 and 2014 were $3.5 million. The junior subordinated debentures are mandatorily redeemable upon maturity in October 2033, or may currently be redeemed prior to maturity in whole or in part, at our option, at any time. Issuance costs of $2.2 million related to the junior subordinated debentures were deferred and are being amortized over the period until mandatory redemption of the debentures in October 2033.

Available Lines of Credit

We have certain facilities in place to enable us to access short-term borrowings on a secured (using available-for-sale securities as collateral) and an unsecured basis. These include repurchase agreements and uncommitted federal funds lines with various financial institutions. As of December 31, 2016, we did not borrow against our uncommitted federal funds lines. We also pledge securities to the FHLB of San Francisco and the discount window at the FRB. The market value of collateral pledged to the FHLB of San Francisco (comprised primarily of U.S. Treasuries) at December 31, 2016 totaled $1.7 billion, of which $1.2 billion was unused and available to support additional borrowings. The market value of collateral pledged at the discount window of the FRB at December 31, 2016 totaled $0.8 billion, all of which was unused and available to support additional borrowings.