Long-Term Funding

The components of long-term funding (funding with original contractual maturities greater than one year) at December 31 were as follows.



	2016			2015
	($ in Thousands)
FHLB advances	$	2,265,188		$	1,750,225
Senior notes, at par	250,000			680,000
Subordinated notes, at par	250,000			250,000
Other long-term funding and capitalized costs	(3,393		)	(4,061		)
Total long-term funding	$	2,761,795		$	2,676,164

FHLB advances: At December 31, 2016, the long-term FHLB advances had maturity dates primarily ranging from 2018 through 2019, and had an average interest rate of 0.50%, compared to 0.23% at December 31, 2015. The majority of FHLB advances are indexed to the FHLB discount note and re-price at varying intervals. The advances offer flexible, low cost, long-term funding that improves the Corporation’s liquidity profile.

2011 Senior Notes: In March 2011, the Corporation issued $300 million of senior notes due March 2016, and callable February 2016, with a 5.125% fixed coupon at a discount. In September 2011, the Corporation “re-opened” the offering and issued an additional $130 million of the same notes at a premium. All of the 2011 senior notes were redeemed in February 2016 at par.

2014 Senior Notes: In November 2014, the Corporation issued $250 million of senior notes, due November 2019, and callable October 2019. The senior notes have a fixed coupon interest rate of 2.75% and were issued at a discount.

2014 Subordinated Notes: In November 2014, the Corporation issued $250 million of 10-year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount.

Under agreements with the Federal Home Loan Bank of Chicago, FHLB advances (short-term and long-term) are secured by qualifying mortgages of the subsidiary bank (such as residential mortgage, residential mortgage loans held for sale, home equity, and commercial real estate) and by specific investment securities for certain FHLB advances. At December 31, 2016, the Corporation had $6 billion of total collateral capacity supported by residential mortgage and home equity loans. Total short-term and long-term FHLB advances outstanding at December 31, 2016, was $2.7 billion.

The table below summarizes the maturities of the Corporation’s long-term funding at December 31, 2016.



Year	($ in Thousands)
2017	$	5
2018	1,865,000
2019	498,939
2020	164
2021	150,000
Thereafter	247,687
Total long-term funding	$	2,761,795