SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

3 Months Ended

Mar. 31, 2015

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

NOTE 16 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase (repurchase agreements) consist of the following:
		March, 31		December 31,
		2015		2014
		(Dollars in thousands)
Repurchase agreements, interest ranging from 1.96% to 3.33%
(December 31, 2014: 2.45% to 4.50%) (1)		$	900,000	$	900,000
(1)	As of March 31, 2015, includes $800 million with an average rate of 2.71% that lenders have the right to call before their contractual maturities at various dates beginning on April 9, 2015. Subsequent to April 9, 2015, no lender has exercised its call option on repurchase agreements. In addition, $700 million is tied to variable rates.

In the first quarter of 2015, the Corporation restructured $400 million of its repurchase agreements, $200 million of which were restructured by extending the contractual maturity and changing from a fixed interest rate to a variable rate, and entered into $200 million of reverse repurchase agreements with the same counterparty (effective April, 2015) under a master netting arrangement that provides for a right to setoff that meets the conditions of ASC 210-20-45-11. These repurchase agreements and reverse repurchase agreements will be presented net on the consolidated statement of financial condition beginning in the second quarter of 2015. In addition, in the first quarter of 2015, the Corporation restructured an additional $200 million of its repurchase agreements with a different counterparty by extending the contractual maturity and reducing the interest rate in these agreements.

Repurchase agreements mature as follows:
		March 31, 2015
		(In thousands)
	One year to three years	$	500,000
	Over five years		400,000
	Total	$	900,000

As of March 31, 2015 and December 31, 2014, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted.

Repurchase agreements as of March 31, 2015, grouped by counterparty, were as follows:
	(Dollars in thousands)			Weighted-Average
	Counterparty	Amount		Maturity (In Months)
	Citigroup Global Markets	$	300,000	19
	JP Morgan Chase		200,000	82
	Dean Witter / Morgan Stanley		100,000	31
	Credit Suisse First Boston		300,000	60
		$	900,000