be adjusted by reference to a grid (the “Pricing Grid”) based on the consolidated leverage ratio and ranges between 1.00% to 1.25% for adjusted LIBOR loans and 0.00% to 0.25% for alternate base rate loans.
The weighted average interest rate under the outstanding term loans and revolving credit facility borrowings was 1.6% and 1.3% during the years ended December 31, 2016 and 2015, respectively.
The Company pays a commitment fee on the average daily unused amount of the revolving credit facility and certain fees with respect to letters of credit.
As of December 31, 2016, the commitment fee was 15.0 basis points.
Since inception, the Company incurred and deferred $3.9 million in financing costs in connection with the credit agreement.3.250% Senior Notes In June 2016, the Company issued $600.0 million aggregate principal amount of 3.250% senior unsecured notes due June 15, 2026 (the “Notes”).
The proceeds were used to pay down amounts outstanding under the revolving credit facility.
Interest is payable semi-annually on June 15 and December 15 beginning December 15, 2016.
Prior to March 15, 2026 (three months prior to the maturity date of the Notes), the Company may redeem some or all of the Notes at any time or from time to time at a redemption price equal to the greater of 100% of the principal amount of the Notes to be redeemed or a “make-whole” amount applicable to such Notes as described in the indenture governing the Notes, plus accrued and unpaid interest to, but excluding, the redemption date.
On or after March 15, 2026 (three months prior to the maturity date of the Notes), the Company may redeem some or all of the Notes at any time or from time to time at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
The indenture governing the Notes contains covenants, including limitations that restrict the Company’s ability and the ability of certain of its subsidiaries to create or incur secured indebtedness and enter into sale and leaseback transactions and the Company’s ability to consolidate, merge or transfer all or substantially all of its properties or assets to another person, in each case subject to material exceptions described in the indenture.
The Company incurred and deferred $5.3 million in financing costs in connection with the Notes.
Other Long Term Debt In December 2012, the Company entered into a $50.0 million recourse loan collateralized by the land, buildings and tenant improvements comprising the Company’s corporate headquarters.
The loan has a seven year term and maturity date of December 2019.
The loan bears interest at one month LIBOR plus a margin of 1.50%, and allows for prepayment without penalty.
The loan includes covenants and events of default substantially consistent with the Company’s credit agreement discussed above.
The loan also requires prior approval of the lender for certain matters related to the property, including transfers of any interest in the property.
As of December 31, 2016 and 2015, the outstanding balance on the loan was $42.0 million and $44.0 million, respectively.
The weighted average interest rate on the loan was 2.0% and 1.7% for the years ended December 31, 2016 and 2015, respectively.
The following are the scheduled maturities of long term debt as of December 31, 2016:
## Table 0 ##
The actual capital amounts and ratios for the Company and its three largest subsidiary banks are as follows:
## Table 1 ##
As of December 31, 2013 Total capital (to risk-weighted assets)
## Table 2 ##
There is no Tier 1 leverage ratio component in the definition of a well-capitalized bank holding company.
Basel III Capital Framework In 2013, the FRB, FDIC, and OCC issued final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U. S.  banking organizations.
These new rules implement the Basel Committee’s December 2010 framework, commonly referred to as Basel III, and replace the current Basel I regulatory capital calculations.
The Basel III Capital Rules will become effective for the Company on January 1, 2015, with the fully phased-in requirements becoming effective in 2018.
Among other things, the new rules revise capital adequacy guidelines and the regulatory framework for prompt corrective action, and they modify specified quantitative measures of our assets, liabilities, and capital.
The impact of these new rules will require the Company to maintain capital in excess of current “well-capitalized” regulatory standards, and in excess of historical levels.
During 2014, the Company recognized an immaterial amount of OTTI on CDOs, compared to $165.1 million in 2013.
For some CDO tranches that we do not intend to sell, which have previously recorded OTTI, the expected future cash flows have remained stable or have slightly improved subsequent to the quarter that OTTI was identified and recorded.
For other CDO tranches, an adverse change in the expected future cash flows has resulted in the recording of additional OTTI.
In both situations, while a difference may remain between fair value and amortized cost, the difference is not due to credit and the expected future cash flows substantiate the return of the full amortized cost of the CDO tranches.
We utilize a present value technique to both identify the OTTI existing in the CDO tranches and to estimate fair value.
The primary drivers of unrealized losses in these CDOs are further discussed in Note 5 of the Notes to Consolidated Financial Statements.
In 2013, as a result of the Volcker Rule, IFR, and the Company’s decision to reduce its risk profile, the Company changed its intent with respect to the holding period of certain AFS securities, including some securities that were formerly HTM.
The result was a pretax securities impairment charge of $137 million on these securities.
Approximately one third of the charge relates to securities that the Company determined to sell during the first quarter of 2014, and which the Volcker Rule and the IFR at the time the decision was made, precluded the Company from holding beyond July 21, 2015, by which time the Company did not expect to have recovered its amortized cost.
That deadline has since been extended to July 21, 2016 and the Federal Reserve has announced its intention to grant an additional one-year extension to July 21, 2017.
The remaining two thirds of the charge relates to securities that the Company determined to sell during the first quarter of 2014 despite each being allowable under the Volcker Rule and the IFR.
Additionally, credit-related impairment of $5 million was identified in the fourth quarter of 2013 in securities that we did not intend to sell.
We evaluate the difference between the fair value and the amortized cost of each security and identify if any of the difference is due to credit.
The credit component of the difference is recognized by writing down the amortized cost of each security found to have OTTI.59 Exposure to State and Local Governments The Company provides multiple products and services to state and local governments (referred together as “municipalities”), including deposit services, loans, and investment banking services, and the Company invests in securities issued by the municipalities.
Schedule 16 summarizes the Company’s exposure to state and local municipalities.
Schedule 16 MUNICIPALITIES

<table><tr><td>2017</td><td>$27,000</td></tr><tr><td>2018</td><td>27,000</td></tr><tr><td>2019</td><td>63,000</td></tr><tr><td>2020</td><td>25,000</td></tr><tr><td>2021</td><td>86,250</td></tr><tr><td>2022 and thereafter</td><td>600,000</td></tr><tr><td>Total scheduled maturities of long term debt</td><td>$828,250</td></tr><tr><td>Current maturities of long term debt</td><td>$27,000</td></tr></table>
<table><tr><td></td><td colspan="2">Actual</td><td colspan="2">To be well-capitalized</td></tr><tr><td>(Amounts in thousands)</td><td>Amount</td><td>Ratio</td><td>Amount</td><td>Ratio</td></tr><tr><td>As of December 31, 2014</td><td></td><td></td><td></td><td></td></tr><tr><td>Total capital (to risk-weighted assets)</td><td></td><td></td><td></td><td></td></tr><tr><td>The Company</td><td>$7,443,301</td><td>16.27%</td><td>$4,573,768</td><td>10.00%</td></tr><tr><td>Zions First National Bank</td><td>2,108,904</td><td>15.27</td><td>1,381,243</td><td>10.00</td></tr><tr><td>California Bank & Trust</td><td>1,286,095</td><td>14.18</td><td>906,915</td><td>10.00</td></tr><tr><td>Amegy Bank</td><td>1,741,586</td><td>14.09</td><td>1,236,244</td><td>10.00</td></tr><tr><td>Tier 1 capital (to risk-weighted assets)</td><td></td><td></td><td></td><td></td></tr><tr><td>The Company</td><td>6,620,282</td><td>14.47</td><td>2,744,261</td><td>6.00</td></tr><tr><td>Zions First National Bank</td><td>1,942,856</td><td>14.07</td><td>828,746</td><td>6.00</td></tr><tr><td>California Bank & Trust</td><td>1,179,129</td><td>13.00</td><td>544,149</td><td>6.00</td></tr><tr><td>Amegy Bank</td><td>1,586,686</td><td>12.83</td><td>741,747</td><td>6.00</td></tr><tr><td>Tier 1 capital (to average assets)</td><td></td><td></td><td></td><td></td></tr><tr><td>The Company</td><td>6,620,282</td><td>11.82</td><td>na</td><td>na<sup>1</sup></td></tr><tr><td>Zions First National Bank</td><td>1,942,856</td><td>10.52</td><td>923,193</td><td>5.00</td></tr><tr><td>California Bank & Trust</td><td>1,179,129</td><td>10.78</td><td>547,086</td><td>5.00</td></tr><tr><td>Amegy Bank</td><td>1,586,686</td><td>11.79</td><td>672,996</td><td>5.00</td></tr></table>
<table><tr><td>The Company</td><td>$6,621,539</td><td>14.67%</td><td>$4,514,553</td><td>10.00%</td></tr><tr><td>Zions First National Bank</td><td>1,997,525</td><td>14.52</td><td>1,375,382</td><td>10.00</td></tr><tr><td>California Bank & Trust</td><td>1,252,860</td><td>13.65</td><td>917,950</td><td>10.00</td></tr><tr><td>Amegy Bank</td><td>1,714,314</td><td>14.86</td><td>1,153,382</td><td>10.00</td></tr><tr><td>Tier 1 capital (to risk-weighted assets)</td><td></td><td></td><td></td><td></td></tr><tr><td>The Company</td><td>5,763,463</td><td>12.77</td><td>2,708,732</td><td>6.00</td></tr><tr><td>Zions First National Bank</td><td>1,831,720</td><td>13.32</td><td>825,208</td><td>6.00</td></tr><tr><td>California Bank & Trust</td><td>1,137,848</td><td>12.40</td><td>550,770</td><td>6.00</td></tr><tr><td>Amegy Bank</td><td>1,569,696</td><td>13.61</td><td>692,029</td><td>6.00</td></tr><tr><td>Tier 1 capital (to average assets)</td><td></td><td></td><td></td><td></td></tr><tr><td>The Company</td><td>5,763,463</td><td>10.48</td><td>na</td><td>na<sup>1</sup></td></tr><tr><td>Zions First National Bank</td><td>1,831,720</td><td>10.02</td><td>913,592</td><td>5.00</td></tr><tr><td>California Bank & Trust</td><td>1,137,848</td><td>10.75</td><td>529,067</td><td>5.00</td></tr><tr><td>Amegy Bank</td><td>1,569,696</td><td>12.09</td><td>649,387</td><td>5.00</td></tr></table>

Question: what is the interest expense based on the average outstanding loan balance in 2016?