Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Short-Term Borrowings and Long-Term Debt

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at December 31, 2020 and 2019:

				Carrying Value
(Dollars in thousands)	Maturity	Principal value at December 31, 2020		December 31, 2020		December 31, 2019
Short-term borrowings:
Other short-term borrowings	(1)	$	20,553	$	20,553	$	17,430
Total short-term borrowings				$	20,553	$	17,430
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350,000	$	348,348	$	347,987
3.125% Senior Notes	June 5, 2030	500,000		495,280		—
Total long-term debt				$	843,628	$	347,987

(1)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, 2020 are as follows:

Year ended December 31, (Dollars in thousands)	Amount
2021	$	—
2022	—
2023	—
2024	—
2025	348,348
2026 and thereafter	495,280
Total	$	843,628

Interest expense related to short-term borrowings and long-term debt was $25.1 million, $35.1 million and $46.6 million in 2020, 2019 and 2018, respectively. The weighted average interest rate associated with our short-term borrowings was 0.80 percent as of December 31, 2020 and 1.55 percent 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, 2020 was $348.3 million, which is reflective of $1.6 million of debt issuance costs and a $0.1 million discount.

3.125% Senior Notes

On June 5, 2020, the Company issued $500.0 million of 3.125% Senior Notes due in June 2030 ("3.125% Senior Notes"). The 3.125% Senior Notes may be redeemed by us, at our option, at any time prior to March 5, 2030, at a redemption price equal to the full aggregate principal amount plus a “make-whole” premium payment. We received net proceeds from this offering of approximately $495.4 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 3.125% Senior Notes at December 31, 2020 was $495.3 million, which is reflective of $4.3 million of debt issuance costs and a $0.4 million discount.

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, 2020, collateral pledged to the FHLB of San Francisco was comprised primarily of fixed income investment securities and loans and had a carrying value of $6.8 billion, of which $5.8 billion was available to support additional borrowings. As of December 31, 2020, collateral pledged to the discount window at the FRB was comprised of fixed income investment securities and had a carrying value of $0.9 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, 2020. Our total unused and available borrowing capacity under our master repurchase agreements with various financial institutions totaled $4.0 billion at December 31, 2020.

On February 2, 2021, the Company issued $500 million of Senior Notes. The notes. Refer to Note 28—“Subsequent Events” for additional information.