Borrowed Funds

Securities Sold under Agreements to Repurchase.

Securities sold under agreements to repurchase were

$100.0

million with a weighted average rate of

2.86%

December 31, 2017,

compared to

$350.0

million with a weighted average rate of

4.06%

December 31, 2016.

As of

December 31, 2017,

two

fixed rate non-callable securities sold under agreements to repurchase totaled

$100

million with a weighted average rate of

2.86%,

compared to

three

fixed rate non-callable securities sold under agreements to repurchase totaling

$150

million with a weighted average rate of

2.81%

as of

December 31, 2016

. Final maturity for the

two

fixed rate non-callable securities sold under agreements to repurchase is

$50.0

million in

June 2018

and

$50.0

million in

July 2018.

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company

may

have to provide addit

ional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities and mortgage-backed securities with a fair value of

$108.4

million as of

December 31, 2017,

and

$372.0

million as of

December 31, 2016

The table below provides comparative data for securities sold under agreements to repurchase for the years indicated:

	201 7			201 6			201 5
	(Dollars in thousands )

Average amount outstanding during the year (1)	$	136,849		$	381,967		$	400,822
Maximum amount outstanding at month-end (2)		150,000			400,000			400,000
Balance, December 31		100,000			350,000			400,000
Rate, December 31		2.86	%		4.06	%		3.89	%
Weighted average interest rate for the year		3.11	%		4.01	%		3.95	%

(

)

Average balances were computed using da

ily averages.

(

)

Highest month-end balances were

January 2017,

January 2016,

and

January 2015.

As of

December 31, 2017,

over-night borrowings from the FHLB were

$325.0

million at a rate of

1.41%

compared to

$275.0

million at a rate of

0.55%

December 31, 2016.

As of

December 31, 2017,

the advances from the FHLB were

$105

million at a rate of

1.41%

compared to

$75

million at a rate of

1.48%

as of

December 31, 2016.

As of

December 31, 2017,

final maturity for the FHLB advances is

$30

million in

March 2018,

$15

million in

April 2018,

million in

July 2018,

and

million in

October 2018,

and

$50

million in

December 2019.

Pursuant to

the Stock Purchase Agreement with Bank SinoPac Co. Ltd, the Company paid

$100

million of the purchase price on

November 14, 2017.

The residual payable balance of

$35.2

million has a floating rate of

three

-month LIBOR rate plus

150

basis points. As of

December 31, 2017,

outstanding payable balance of

$35.2

million is accruing interest at a rate of

2.8%

of which

50%,

30%,

and

20%

will be disbursed annually over

three

years on the anniversary date, respectively

October 12, 2017,

the Bank entered into a term loan agreement of

$75.0

million with U.S. Bank. The loan has a floating rate of

one

-month LIBOR plus

175

basis points. As of

December 31, 2017,

the term loan has an interest rate of

3.125%.

The principal amount of the long-term debt from U.S. Bank is due and payable in consecutive quarterly installments in the amount of

$4.7

million each on the last day of each calendar quarter commencing

December 31, 2018,

with the final installment due and payable on

October 12, 2020.

Other Liabilities.

November 23, 2004,

the Company entered into an agreement with Mr. Dunson K. Cheng, pursuant to which he agreed to defer any bonus amounts in excess of

$225,000

for the year ended

December 31, 2005,

until the later of

January 1

of the

first

year following his separation from service from the Company or the

first

day of the

seventh

month following his separation from service from the Company. Accordingly, an amount equal to

$610,000

was deferred in

2004

and was accrued in other liabilities in the consolidated balance sheet. The Company agreed to accrue interest on the deferred portion of the bonus at

7.0%

per annum compounded quarterly. The deferred amount will be increased each quarter by the amount of interest computed for that quarter. On

November 23, 2014,

the interest rate was reset to

5.06%

based on

275

basis points above the interest rate on the

ten

-year Treasury Note on that date. On

March 13, 2014,

the Compensation Committee of the Company awarded Mr. Cheng a cash bonus in the amount of

$300,000

for the quarter ended

December 31, 2013,

and provided as part of the award that payment of the bonus would be deferred until the later of

January 1

of the

first

year following his separation from service from the Company or the

first

day of the

seventh

month following his separation from service from the Company. The Company accrues interest on the deferred bonus at

5.02%

per annum compounded quarterly. Beginning on the

fifth

anniversary of the agreement, the interest rate will be reset at

350

basis points above the then prevailing interest rate on the

five

-year Treasury Note.

Interest of $

87,000

during

2017,

$83,000

during

2016,

and

$79,000

during

2015

was accrued on the deferred bonuses. The balance was

$1.8

million at

December 31, 2017,

and

$1.7

million at

December 31, 2016.