

NOTE 9 – SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term borrowings as of December 31, 2016, 2015 and 2014 and the related maximum amounts outstanding at the end of any month in each of the three years then ended are presented below. The securities underlying the repurchase agreements remain in available for sale investment securities.



	December 31,						Maximum Outstanding
	2016		2015		2014		2016		2015		2014
	(in thousands)
Federal funds purchased	$	278,570	$	197,235	$	6,219	$	449,184	$	266,338	$	577,581
Short-term FHLB advances ⁽¹⁾	—		110,000		70,000		—		200,000		600,000
Customer repurchase agreements	195,734		111,496		158,394		221,989		212,509		244,729
Customer short-term promissory notes	67,013		78,932		95,106		77,887		93,176		95,106
	$	541,317	$	497,663	$	329,719

(1) Represents FHLB advances with an original maturity term of less than one year.

As of December 31, 2016, the Corporation had aggregate availability under Federal funds lines of $1.1 billion, with $278.6 million borrowed against that amount. A combination of commercial real estate loans, commercial loans and securities were pledged to the Federal Reserve Bank of Philadelphia to provide access to Federal Reserve Bank Discount Window borrowings. As of December 31, 2016 and 2015, the Corporation had $1.2 billion of collateralized borrowing availability at the Discount Window, and no outstanding borrowings.

The following table presents information related to customer repurchase agreements:



	2016			2015			2014
	(dollars in thousands)
Amount outstanding as of December 31	$	195,734		$	111,496		$	158,394
Weighted average interest rate as of December 31	0.10		%	0.15		%	0.13		%
Average amount outstanding during the year	$	184,978		$	161,093		$	197,432
Weighted average interest rate during the year	0.11		%	0.10		%	0.10		%

FHLB advances with an original maturity of one year or more and long-term debt included the following as of December 31:



	2016			2015
	(in thousands)
FHLB advances	$	567,240		$	587,756
Subordinated debt	350,000			350,000
Junior subordinated deferrable interest debentures	16,496			16,496
Unamortized discounts and issuance costs	(4,333		)	(4,710		)
	$	929,403		$	949,542

Excluded from the preceding table is the Parent Company’s revolving line of credit with its subsidiary banks. As of December 31, 2016 and 2015, there were no amounts outstanding under this line of credit. This line of credit, with a total commitment of $75.0 million, is secured by equity securities and insurance investments and bears interest at London Interbank Offered Rate ("LIBOR") for maturities of one month plus 2.00%. The amount that the Corporation is permitted to borrow under this commitment at any given time is subject to a formula based on a percentage of the value of the collateral pledged. Although balances drawn on the line of credit and related interest income and expense are eliminated in the consolidated financial statements, this borrowing arrangement is senior to the subordinated debt and the junior subordinated deferrable interest debentures.

FHLB advances mature through March 2027 and carry a weighted average interest rate of 2.50%. As of December 31, 2016, the Corporation had an additional borrowing capacity of approximately $3.1 billion with the FHLB. Advances from the FHLB are secured by FHLB stock, qualifying residential mortgages, investments and other assets.

The following table summarizes the scheduled maturities of FHLB advances with an original maturity of one year or more and long-term debt as of December 31, 2016 (in thousands):



Year
2017	$	114,415
2018	—
2019	202,731
2020	142,370
2021	199,444
Thereafter	270,443
	$	929,403

In June 2015, the Corporation issued $150.0 million of ten-year subordinated notes, which mature on November 15, 2024 and carry a fixed rate of 4.50% and an effective rate of approximately 4.69% as a result of discounts and issuance costs. Interest is paid semi-annually in May and November. In November 2014, the Corporation issued $100.0 million of ten-year subordinated notes, which mature on November 15, 2024 and carry a fixed rate of 4.50% and an effective rate of approximately 4.87% as a result of discounts and issuance costs. Interest is paid semi-annually in May and November. In May 2007, the Corporation issued $100.0 million of ten-year subordinated notes, which mature on May 1, 2017 and carry a fixed rate of 5.75% and an effective rate of approximately 5.96% as a result of discounts and issuance costs. Interest is paid semi-annually in May and November.

During the third quarter of 2015, $150.0 million of TruPS, with a scheduled maturity of February 1, 2036 and an effective rate of approximately 6.52%, were redeemed. As a result of this transaction, the Corporation recorded a $5.6 million loss on redemption, included as a component of non-interest expense. The loss on redemption consisted of $1.8 million of unamortized issuance costs and $2.5 million, net of a $1.3 million tax effect, of unamortized losses on a cash flow hedge recorded in accumulated other comprehensive income.

As of December 31, 2016, the Parent Company owned all of the common stock of three subsidiary trusts, which have issued TruPS in conjunction with the Parent Company issuing junior subordinated deferrable interest debentures to the trusts. The TruPS are redeemable on specified dates, or earlier if certain events arise.

The following table provides details of the debentures as of December 31, 2016 (dollars in thousands):



Debentures Issued to	Fixed/ Variable	Interest Rate		Amount		Maturity	Callable	Call Price
Columbia Bancorp Statutory Trust	Variable	3.49	%	$	6,186	06/30/34	03/31/17	100.0
Columbia Bancorp Statutory Trust II	Variable	2.85	%	4,124		03/15/35	03/31/17	100.0
Columbia Bancorp Statutory Trust III	Variable	2.73	%	6,186		06/15/35	03/31/17	100.0
				$	16,496