Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2019

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at December 31, 2019 and 2018:



				Carrying Value
(Dollars in thousands)	Maturity	Principal value at December 31, 2019		December 31, 2019		December 31, 2018
Short-term borrowings:
Short-term FHLB advances				$	—	$	300,000
Securities sold under agreement to repurchase	(1)			—		319,414
Other short-term borrowings	(2)	$	17,430	17,430		11,998
Total short-term borrowings				$	17,430	$	631,412
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350,000	$	347,987	$	347,639
5.375% Senior Notes				—		348,826
Total long-term debt				$	347,987	$	696,465


(1)	Securities sold under repurchase agreements are effectively short-term borrowings collateralized by U.S. Treasury securities.


(2)	Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor.

The aggregate annual maturities of long-term debt obligations as of December 31, 2019 are as follows:



Year ended December 31, (Dollars in thousands)	Amount
2020	$	—
2021	—
2022	—
2023	—
2024	—
2025 and thereafter	347,987
Total	$	347,987

Interest expense related to short-term borrowings and long-term debt was $35.1 million, $46.6 million and $36.1 million in 2019, 2018 and 2017, respectively. For the year ended December 31, 2017, 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 2.62 percent as of December 31, 2018. There were no overnight short-term borrowings as of December 31, 2019.

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, 2019 was $348.0 million, which is reflective of $1.8 million of debt issuance costs and a $0.2 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. On December 20, 2019, we redeemed in full the outstanding aggregate principle amount of our $350 million 5.375% Senior Notes due 2020 at a redemption price of $358.4 million. The amount paid in excess of the principal amount of the 5.375% Senior Notes represented a $9.0 million premium due to holders upon early redemption and was recorded as a loss in other noninterest income.

Short-term Borrowings

We have certain facilities in place to enable us to access short-term borrowings on a secured and unsecured basis. Our secured facilities include collateral pledged to the FHLB of San Francisco and the discount window at the FRB (using both fixed income securities and loans as collateral). Our unsecured facility consists of our uncommitted federal funds lines. As of December 31, 2019, collateral pledged to the FHLB of San Francisco was comprised primarily of fixed income investment securities and loans and had a carrying value of $4.7 billion, of which $4.3 billion was available to support additional borrowings. As of December 31, 2019, collateral pledged to the discount window at the FRB was comprised of fixed income investment securities and had a carrying value of $1.0 billion, all of which was unused and available to support additional borrowings. Our total unused and available borrowing capacity for our uncommitted federal funds lines totaled $1.9 billion at December 31, 2019. Our total unused and available borrowing capacity under our master repurchase agreements with various financial institutions totaled $3.3 billion at December 31, 2019.