BORROWINGS

Short-term debt

Short-term debt at December 31, 2017 and 2016, was as follows:



	December 31,
	2017				2016
	Amount		Rate		Amount		Rate
(amounts in thousands)
FHLB advances	$	1,611,860	1.47	%	$	688,800	0.85	%
Federal funds purchased	155,000		1.50		83,000		0.74
Total short-term debt	$	1,766,860			$	771,800

The following is a summary of additional information relating to Customers' short-term debt:



	December 31,
	2017			2016			2015
(amounts in thousands)
FHLB advances
Maximum outstanding at any month end	$	2,283,250		$	1,697,800		$	1,365,300
Average balance during the year	1,415,755			965,293			844,835
Weighted-average interest rate during the year	1.44		%	0.95		%	0.60		%
Federal funds purchased
Maximum outstanding at any month end	238,000			137,000			85,000
Average balance during the year	163,466			84,514			41,397
Weighted-average interest rate during the year	1.19		%	0.58		%	0.35		%

At December 31, 2017 and 2016, the Bank had aggregate availability under federal funds lines totaling $310.0 million and $237.0 million, respectively.

Long-term debt

FHLB advances

At December 31, 2016, Customers had $180.0 million of long-term FHLB advances at an average rate of 1.32% that mature in 2018, of which $170.0 million are fixed rate.

Customers had a total maximum borrowing capacity with the Federal Home Loan Bank of $4.3 billion and with the Federal Reserve Bank of Philadelphia of $142.5 million at December 31, 2017. Customers had a total borrowing capacity with the Federal Home Loan Bank of $4.1 billion and with the Federal Reserve Bank of Philadelphia of $158.6 million at December 31, 2016. Amounts can be borrowed as short-term or long-term. As of December 31, 2017 and 2016, advances under these arrangements were secured by certain assets, which included qualifying loans of Customers Bank of $5.5 billion and $4.8 billion, respectively.

Senior notes

In June 2017, Customers Bancorp issued $100 million of senior notes at 99.775% of face value. The price to purchasers represents a yield-to-maturity of 4.0% on the fixed coupon rate of 3.95%. The senior notes mature in June 2022. The net proceeds to Customers after deducting the underwriting discount and offering expenses were $98.6 million. The net proceeds were contributed to Customers Bank for purposes of its working capital needs and the funding of its organic growth.

On June 26, 2014, the Bancorp closed a private placement transaction in which it issued $25.0 million of 4.625% senior notes that will mature in June 2019. Interest is paid semi-annually in arrears in June and December.

In July and August 2013, the Bancorp issued $63.3 million in aggregate principal amount of senior notes that will mature in July 2018. The notes bear interest at 6.375% per year which is payable on March 15, June 15, September 15 and December 15. The notes are unsecured obligations of the Bancorp and rank equally with all of its secured and unsecured senior indebtedness.

Subordinated debt

On June 26, 2014, the Bank closed a private-placement transaction in which it issued $110.0 million of fixed-to-floating rate subordinated notes due in 2029. The subordinated notes bear interest at an annual fixed rate of 6.125% until June 26, 2024, and interest is paid semiannually. From June 26, 2024, the subordinated notes will bear an annual interest rate equal to three-month LIBOR plus 344.3 basis points until maturity on June 26, 2029. The Bank has the ability to call the subordinated notes, in whole or in part, at a redemption price equal to 100% of the principal balance at certain times on or after June 26, 2024. The subordinated notes qualify as Tier 2 capital for regulatory capital purposes.