9.	Borrowed Funds

Securities sold under agreements to repurchase were

zero

December 31, 2018,

compared to

$100.0

million with a weighted average rate of

2.86%

December 31, 2017.

As of

December 31, 2017,

two

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

$100

million with a weighted average rate of

2.86%

as of

December 31, 2017.

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 additional collateral for the repurchase agreements, as necessary. There were

repurchase agreements at

December 31, 2018.

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.

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

	2018			2017			2016
	(Dollars in thousands)

Average amount outstanding during the year (1)	$	49,589		$	136,849		$	381,967
Maximum amount outstanding at month-end (2)		100,000			150,000			400,000
Balance, December 31		-			100,000			350,000
Rate, December 31		-	%		2.86	%		4.06	%
Weighted average interest rate for the year		-	%		3.11	%		4.01	%

( 1 )	Average balances were computed using daily averages.
( 2 )	Highest month-end balances were January 2018, January 2017, and January 2016.

As of

December 31, 2018,

over-night borrowings from the FHLB were

$200.0

million at a rate of

2.56%

compared to

$325.0

million at a rate of

1.41%

December 31, 2017.

As of

December 31, 2018,

the advances from the FHLB were

$330

million at a rate of

2.42%

compared to

$105

million at a rate of

1.41%

as of

December 31, 2017.

As of

December 31, 2018,

final maturity for the FHLB advances is

$260

million in

January 2019,

$50

million in

December 2019,

and

$20

million in

May 2023.

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, 2018,

outstanding payable balance of

$17.6

million has an interest rate of

4.30%.

The remaining payments are

$10.6

million in

July 2019

and

$7.0

million in

July 2020

together with applicable accrued interest.

October 12, 2017,

the Bank entered into a term loan agreement of

$75.0

million with U.S. Bank. The principal amount outstanding as of

December 31, 2018

was

$70.3

million. The loan has a floating rate of

one

-month LIBOR plus

175

basis points. As of

December 31, 2018,

the term loan has an interest rate of

4.125%

compared to

3.125%

December 31, 2017.

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

$92,000

during

2018,

$87,000

during

2017,

and

$83,000

during

2016

was accrued on the deferred bonuses. The balance was

$1.9

million at

December 31, 2018,

and

$1.8

million at

December 31, 2017.

We established

three

special purpose trusts in

2003

and

two

2007

for the purpose of issuing Guaranteed Preferred Beneficial Interests in their Subordinated Debentures to outside investors (“Capital Securities”). The proceeds from the issuance of the Capital Securities as well as our purchase of the common stock of the special purpose trusts were invested in Junior Subordinated Notes of the Company (“Junior Subordinated Notes”). The trusts exist for the purpose of issuing the Capital Securities and investing in Junior Subordinated Notes. Subject to some limitations, payment of distributions out of the monies held by the trusts and payments on liquidation of the trusts, or the redemption of the Capital Securities, are guaranteed by the Company to the extent the trusts have funds on hand at such time. The obligations of the Company under the guarantees and the Junior Subordinated Notes are subordinate and junior in right of payment to all indebtedness of the Company and will be structurally subordinated to all liabilities and obligations of the Company’s subsidiaries. The Company has the right to defer payments of interest on the Junior Subordinated Notes at any time or from time to time for a period of up to

twenty

consecutive quarterly periods with respect to each deferral period. Under the terms of the Junior Subordinated Notes, the Company

may

not,

with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of its capital stock if it has deferred payment of interest on any Junior Subordinated Notes.

December 31, 2018,

Junior Subordinated Notes totaled

$119.1

million with a weighted average interest rate of

4.96%,

compared to

$119.1

million with a weighted average rate of

3.78%

December 31, 2017.

The Junior Subordinated Notes have a stated maturity term of

years. Interest expense, excluding impact of cash flow interest rate swaps entered into during

June 2014,

on the Junior Subordinated Notes was

$5.2

million for

2018,

$4.1

million for

2017,

and

$3.5

million for

2016.