Short-Term Borrowings and Long-Term Debt

9 Months Ended

Sep. 30, 2018

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at September 30, 2018 and December 31, 2017:



				Carrying Value
(Dollars in thousands)	Maturity	Principal value at September 30, 2018		September 30, 2018		December 31, 2017
Short-term borrowings:
Short-term FHLB advances	(1)	$	2,250,000	$	2,250,000	$	700,000
Federal funds purchased		—		—		330,000
Securities sold under agreement to repurchase	(2)	371,539		371,539		—
Other short-term borrowings	(3)	9,713		9,713		3,730
Total short-term borrowings				$	2,631,252	$	1,033,730
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350,000	$	347,554	$	347,303
5.375% Senior Notes	September 15, 2020	350,000		348,663		348,189
Total long-term debt				$	696,217	$	695,492


(1)	Represents advances from the FHLB at September 30, 2018 with maturity dates through November 26, 2018.


(2)	Securities sold under repurchase agreements are effectively short-term collateralized borrowings. Gross repurchase agreements held at September 30, 2018 have maturity dates through October 17, 2018.


(3)	Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor.

Interest expense related to short-term borrowings and long-term debt was $12.0 million and $29.1 million for the three and nine months ended September 30,2018, respectively, and $9.0 million and $27.2 million for the three and nine months ended September 30, 2017, respectively. The weighted average interest rate associated with our short-term borrowings was 2.31 percent as of September 30, 2018 and 1.39 percent as of December 31, 2017.

Available Lines of Credit

We have certain facilities in place to enable us to access short-term borrowings on a secured (using loans and fixed income investment securities as collateral) and unsecured basis. These include repurchase agreements and federal funds lines with various financial institutions. As of September 30, 2018, we did not have any borrowings outstanding against our federal funds lines. We also pledge collateral to the FHLB of San Francisco (comprised primarily of loans and fixed income investment securities) and the discount window at the FRB (comprised primarily of fixed income investment securities) of which $2.0 billion and $1.0 billion, respectively, of our borrowing capacity, was unused and available to support additional borrowings at September 30, 2018.