LONG-TERM BORROWINGS

Following is a summary of long-term borrowings:

TABLE 13.1



December 31	2018		2017
(in millions)
Federal Home Loan Bank advances	$	270	$	310
Subordinated notes	87		88
Junior subordinated debt	111		110
Other subordinated debt	159		160
Total long-term borrowings	$	627	$	668

Scheduled annual maturities for the long-term borrowings for the years following December 31, 2018 are as follows:

TABLE 13.2



(in millions)
2019	$	158
2020	116
2021	56
2022	8
2023	40
Later years	249
Total	$	627

Federal Home Loan Bank advances

Our banking affiliate has available credit with the FHLB of $7.4 billion, of which $2.5 billion was utilized as of December 31, 2018. These advances are secured by loans collateralized by residential mortgages, home equity lines of credit, commercial real estate and FHLB stock and are scheduled to mature in various amounts periodically through the year 2021. Effective interest rates paid on the long-term advances ranged from 1.39% to 4.19% for the year ended December 31, 2018 and 1.11% to 4.19% for the year ended December 31, 2017.

Subordinated notes

Subordinated notes are unsecured and subordinated to our other indebtedness. The subordinated notes mature in various amounts periodically through the year 2028. At December 31, 2018, all of the subordinated notes are redeemable by the holders prior to maturity at a discount equal to three to 12 months of interest, depending on the term of the note. We may require the holder to give 30 days prior written notice. No sinking fund is required and none has been established to retire the notes. The weighted average interest rate on the subordinated notes are presented in the following table:

TABLE 13.3



December 31	2018		2017		2016
Subordinated notes weighted average interest rate	3.08	%	2.85	%	2.71	%

Junior subordinated debt

The junior subordinated debt is comprised of the debt securities issued by FNB in relation to our six unconsolidated subsidiary trusts (collectively, the Trusts), which are unconsolidated variable interest entities and are included on the Consolidated Balance Sheets in long-term borrowings. One hundred percent of the common equity of each Trust is owned by FNB. The Trusts were formed for the purpose of issuing FNB-obligated mandatorily redeemable capital securities, or TPS to third-party investors. The proceeds from the sale of TPS and the issuance of common equity by the Trusts were invested in junior subordinated debt securities issued by FNB, which are the sole assets of each Trust. Since third-party investors are the primary beneficiaries, the Trusts are not consolidated in our Financial Statements. The Trusts pay dividends on the TPS at the same rate as the distributions paid by us on the junior subordinated debt held by the Trusts. F.N.B. Statutory Trust II was formed by us, and the other five statutory trusts were assumed through acquisitions. The acquired statutory trusts were adjusted to fair value in conjunction with the various acquisitions.

We record the distributions on the junior subordinated debt issued to the Trusts as interest expense. The TPS are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated debt. The TPS are eligible for redemption, at any time, at our discretion. Under capital guidelines, the junior subordinated debt, net of our investments in the Trusts, is included in tier 2 capital. We have entered into agreements which, when taken collectively, fully and unconditionally guarantee the obligations under the TPS subject to the terms of each of the guarantees.

The following table provides information relating to the Trusts as of December 31, 2018:

TABLE 13.4



(dollars in millions)	Trust Preferred Securities		Common Securities		Junior Subordinated Debt		Stated Maturity Date	Interest Rate		Rate Reset Factor
F.N.B. Statutory Trust II	$	22	$	1	$	22	6/15/2036	4.44	%	LIBOR + 165 basis points (bps)
Omega Financial Capital Trust I	26		1		27		10/18/2034	4.63	%	LIBOR + 219 bps
Yadkin Valley Statutory Trust I	25		1		21		12/15/2037	4.11	%	LIBOR + 132 bps
FNB Financial Services Capital Trust I	25		1		22		9/30/2035	4.26	%	LIBOR + 146 bps
American Community Capital Trust II	10		—		10		12/15/2033	5.19	%	LIBOR + 280 bps
Crescent Financial Capital Trust I	8		—		9		10/7/2033	5.54	%	LIBOR + 310 bps
Total	$	116	$	4	$	111

Other subordinated debt

Subordinated Debt Due 2025. In an October 2015 debt offering, we issued $100.0 million aggregate principal amount of 4.875% subordinated notes due in October 2025. The net proceeds of the debt offering after deducting underwriting discounts and commissions and offering costs were $98.4 million, and as of December 31, 2018, the carrying value was $98.9 million. These subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.

Subordinated Debt Due 2024. In conjunction with the YDKN acquisition, we assumed $15.5 million aggregate principal amount of 7.25% subordinated notes due in March 2024. These subordinated notes, which are eligible for treatment as tier 2 capital for regulatory capital purposes, were adjusted to fair value at the time of acquisition, and as of December 31, 2018, the carrying value was $16.6 million.

Subordinated Debt Due 2023. In conjunction with the YDKN acquisition, we assumed $38.1 million aggregate principal amount of 7.625% subordinated notes due in August 2023. These subordinated notes, which are eligible for treatment as tier 2 capital for regulatory capital purposes, were adjusted to fair value at the time of acquisition, and as of December 31, 2018, the carrying value was $43.4 million.

Additionally, on May 1, 2017, we repaid $7.5 million in other subordinated debt that we acquired from YDKN.