BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2013



	As of December 31,
(dollars in thousands)	2013		2012
Customer repurchase agreements	$	551,736	$	560,065
Repurchase agreements	50,000		75,000
Short-term borrowings	—		100,000
Federal Home Loan Bank advances	603,232		464,632
Subordinated debentures accounted for at fair value	—		67,306
Subordinated debentures accounted for at amortized cost	77,321		77,321
Total borrowings and other debt obligations	$	1,282,289	$	1,344,324

Schedule of Maturities of Long-term Debt

Outstanding FHLB advances and repurchase agreements mature as follows:



(dollars in thousands)		Federal Home Loan		Repurchase
		Bank Advances		Agreements
	2014	$	523,562	$	50,000
	2015	24,000		—
	2016	644		—
	2017	50,071		—
	2018	4,922		—
	Thereafter	33		—
	Total	$	603,232	$	50,000

Subordinated Debentures

At the beginning of 2013, the Company had five established statutory business Trusts: NPB Capital Trust II, NPB Capital Trust III, NPB Capital Trust IV, NPB Capital Trust V and NPB Capital Trust VI (“Trusts”). On March 7, 2013, the Company redeemed all of the subordinated debentures issued by NPB Capital Trust II. The Company owns all of the common capital securities of the remaining Trusts. The Trusts issued preferred capital securities to investors and invested the proceeds in junior subordinated debentures issued by the Company. These debentures are the sole assets of the Trusts, which are considered variable interest entities. The Company is not the variable interest holder, and as such does not consolidate the Trusts. The liabilities to the Trusts are reflected as subordinated debentures on the Company’s consolidated balance sheet, and the common capital securities are included in other assets. Interest is paid on amounts borrowed from the Trusts and recorded in interest expense in the consolidated statement of income on the accrual basis of accounting.

Costs related to the issuance of subordinated debentures are being amortized over the life of the instruments as an increase to interest expense in the consolidated statement of income using the interest method. The unamortized portion of the issuance costs is included within other assets on the consolidated balance sheet.

The Company’s maximum exposure to the Trusts is $75 million, which is the Company’s liability to the Trusts and includes the Company’s investment in the Trusts.

On January 1, 2007, the Company made an accounting policy election to record $65.2 million of debentures issued to NPB Capital Trust II on August 20, 2002 at fair value on the consolidated balance sheet. Prior to its redemption in the first quarter of 2013, changes in the estimated fair value for each reporting period were reported as net gains (losses) from fair value changes within non-interest income in the consolidated statement of income.

Details of the Company’s obligations to the Trusts as of December 31, 2013 are as follows:



Trusts	Principal	Issued	Maturity	Interest Rate
NPB Capital Trust III	$20.6 Million	February 20, 2004	April 23, 2034	3 mo. LIBOR + 2.75% margin
NPB Capital Trust IV	$20.6 Million	March 25, 2004	April 7, 2034	3 mo. LIBOR + 2.75% margin
NPB Capital Trust V	$20.6 Million	April 7, 2004	April 7, 2034	3 mo. LIBOR + 2.75% margin
NPB Capital Trust VI	$15.4 Million	January 19, 2006	March 15, 2036	3 mo. LIBOR + 1.38% margin