Borrowings

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements [Abstract]

Note 15 – Borrowings

Assets sold under agreements to repurchase as of the end of the periods presented were as follows:

(In thousands)	June 30, 2013			December 31, 2012
Assets sold under agreements to repurchase	$	1,672,705		$	2,016,752

The repurchase agreements outstanding at June 30, 2013 were collateralized by $ 1.2 billion (December 31, 2012 - $ 1.6 billion) in investment securities available-for-sale, $ 256 million (December 31, 2012 - $ 272 million) in trading securities and $ 142 million (December 31, 2012 - $ 133 million) in securities sold not yet delivered in other assets. It is the Corporation's policy to maintain effective control over assets sold under agreements to repurchase; accordingly, such securities continue to be carried on the consolidated statements of financial condition.

In addition, there were repurchase agreements outstanding collateralized by $ 235 million in securities purchased under agreements to resell to which the Corporation has the right to repledge the securities (December 31, 2012 - $ 227 million). It is the Corporation's policy to take possession of securities purchased under agreements to resell. However, the counterparties to such agreements maintain effective control over such securities; accordingly, these securities are not reflected in the Corporation's consolidated statements of financial condition.

Other short-term borrowings as of the end of the periods presented consisted of:

(In thousands)	June 30, 2013		December 31, 2012
Advances with the FHLB paying interest at maturity, at fixed rates ranging from 0.37% to 0.46%	$	1,225,000	$	635,000
Others		1,200		1,200
Total other short-term borrowings	$	1,226,200	$	636,200
Note: Refer to the Corporation's 2012 Annual Report for rates information corresponding to the short-term borrowings outstanding at December 31, 2012.

Notes payable as of the end of the periods reported consisted of:

(In thousands)		June 30, 2013		December 31, 2012

Advances with the FHLB with maturities ranging from 2013 through 2021 paying interest at
	monthly fixed rates ranging from 0.63% to 4.50%	$	582,364	$	577,490

Term notes with maturities ranging from 2014 to 2016 paying interest semiannually
	at fixed rates ranging from 7.47% to 7.86%		233,658		236,620

Term notes with maturities ranging from 2013 to 2014 paying interest
	monthly at a floating rate of 3.00% over the 10-year U.S. Treasury note rate^[1]		22		133

Junior subordinated deferrable interest debentures (related to trust preferred
	securities) with maturities ranging from 2027 to 2034 with fixed interest
	rates ranging from 6.125% to 8.327% (Refer to Note 17)		439,800		439,800

Junior subordinated deferrable interest debentures (related to trust preferred securities)
	($936,000 less discount of $419,939 at June 30, 2013 and $436,530 at December
	31, 2012), with no stated maturity and a fixed interest rate of 5.00% until, but excluding
	December 5, 2013 and 9.00% thereafter (Refer to Note 17)^[2]		516,061		499,470

Others			23,861		24,208
Total notes payable		$	1,795,766	$	1,777,721

Note: Refer to the Corporation's 2012 Annual Report for rates information corresponding to the long-term borrowings outstanding at December 31, 2012.

[1] The 10-year U.S. Treasury note key index rate at June 30, 2013 and December 31, 2012 was 2.49% and 1.76%, respectively.

[2] The debentures are perpetual and may be redeemed by the Corporation at any time, subject to the consent of the Board of Governors of the Federal Reserve System. The discount on the debentures is being amortized over an estimated 30-year term that started in August 2009. The effective interest rate, including the discount accretion, was approximately 16% at June 30, 2013 and December 31, 2012.

A breakdown of borrowings by contractual maturities at June 30, 2013 is included in the table below.

	Assets sold under
	agreements		Short-term
(In thousands)	to repurchase		borrowings		Notes payable		Total
Year
2013	$	930,508	$	1,226,200	$	50,380	$	2,207,088
2014		-		-		189,450		189,450
2015		174,135		-		46,112		220,247
2016		453,062		-		316,516		769,578
2017		115,000		-		74,033		189,033
Later years		-		-		603,214		603,214
No stated maturity		-		-		936,000		936,000
Subtotal		1,672,705		1,226,200		2,215,705		5,114,610
Less: Discount		-		-		419,939		419,939
Total borrowings	$	1,672,705	$	1,226,200	$	1,795,766	$	4,694,671

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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