Long-term Funding

12 Months Ended

Dec. 31, 2017

Long-Term Funding

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



	2017			2016
	($ in Thousands)
FHLB advances	$	2,900,168		$	2,265,188
Senior notes, at par	250,000			250,000
Subordinated notes, at par	250,000			250,000
Other long-term funding and capitalized costs	(2,718		)	(3,393		)
Total long-term funding	$	3,397,450		$	2,761,795

FHLB Advances: At December 31, 2017, the long-term FHLB advances had maturity or call dates primarily ranging from 2018 through 2019, and had an average interest rate of 1.26%, compared to 0.50% at December 31, 2016. The majority of FHLB advances are indexed to the FHLB discount note and re-price at varying intervals. The advances offer flexible, relatively low cost, long-term funding that improves the Corporation’s liquidity profile.

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.

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). At December 31, 2017, the Corporation had $6.6 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, 2017, was $3.2 billion.

The table below summarizes the maturities of the Corporation’s long-term funding at December 31, 2017.



Year	($ in Thousands)
2018	$	1,750,000
2019	499,313
2020	155
2021	150,000
2022	—
Thereafter	997,982
Total long-term funding	$	3,397,450