Senior Notes and Long-Term Debt

Senior Notes. A summary of senior notes outstanding at December 31, 2017 and 2016 is presented below.

TABLE 75: SENIOR NOTES



	DECEMBER 31,
($ In Millions)	RATE		2017		2016
Corporation-Senior Notes⁽¹⁾⁽⁵⁾
Fixed Rate Due Nov. 2020⁽⁶⁾	3.45	%	$	499.6	$	499.4
Fixed Rate Due Aug. 2021⁽⁷⁾	3.38		498.8		498.5
Fixed Rate Due Aug. 2022⁽⁸⁾	2.38		498.9		498.7

Total Senior Notes			$	1,497.3	$	1,496.6

Long-Term Debt. A summary of long-term debt outstanding at December 31, 2017 and 2016 is presented below.

TABLE 76: LONG-TERM DEBT



	DECEMBER 31,
($ In Millions)	2017		2016
Bank-Subordinated Debt^{(1)(3)(5)(11)}
5.85% Notes due Nov. 2017	$	—	$	207.6
6.50% Notes due Aug. 2018⁽⁹⁾	305.5		315.3

Total Bank-Subordinated Debt	305.5		522.9

Corporation-Subordinated Debt⁽⁵⁾
3.95% Notes due Oct. 2025^(1)(10)(11)	780.4		785.0
3.375% Fixed-to-Floating Rate Notes due May 2032⁽²⁾	349.2		—

Total Corporation Subordinated Debt	1,129.6		785.0

Capital Lease Obligations⁽⁴⁾	14.4		23.0

Total Long-Term Debt	$	1,449.5	$	1,330.9

Long-Term Debt Qualifying as Risk-Based Capital	$	1,099.4	$	809.3

(1) Not redeemable prior to maturity.

(2) The subordinated notes will bear interest from the date they were issued to, but excluding, May 8, 2027, at an annual rate of 3.375%, payable semi-annually in arrears. From, and including, May 8, 2027, the subordinated notes will bear interest at an annual rate equal to three-month LIBOR plus 1.131%, payable quarterly in arrears. The subordinated notes are unsecured and may be redeemed, in whole but not in part, on, and only on, May 8, 2027, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date.

(3) Under the terms of its current Offering Circular dated November 6, 2013, the Bank has the ability to offer from time to time its senior bank notes in an aggregate principal amount of up to $4.5 billion at any one time outstanding and up to an additional $1.0 billion of subordinated notes. Each senior note will mature from 30 days to fifteen years, and each subordinated note will mature from five years to fifteen years, following its date of original issuance. Each note will mature on such date as selected by the initial purchaser and agreed to by the Bank.

(4) Refer to Note 10, “Lease Commitments.”

(5) As of December 31, 2017, debt issue costs of $0.9 million and $1.7 million are included as a direct deduction from the carrying amount of Senior Notes and Long-Term Debt, respectively. Debt issue costs are amortized on a straight-line basis over the life of the Note.

(6) Notes issued at a discount of 0.117%

(7) Notes issued at a discount of 0.437%

(8) Notes issued at a discount of 0.283%

(9) Notes issued at a discount of 0.02%

(10) Notes issued at a discount of 0.114%

(11) Interest rate swap contracts were entered into to modify the interest expense on these subordinated notes from fixed rates to floating rates. The swaps are recorded as fair value hedges and at December 31, 2017, increases in the carrying values of subordinated notes outstanding of $37.4 million were recorded. As of December 31, 2016, net adjustments in the carrying values of subordinated notes outstanding of $59.6 million were recorded.