Borrowings

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements [Abstract]

Note 16 – Borrowings

The following table presents the composition of federal funds purchased and assets sold under agreements to repurchase at March 31, 2014 and December 31, 2013.


(In thousands)	March 31, 2014		December 31, 2013
Federal funds purchased	$	100,000	$	-
Assets sold under agreements to repurchase		2,108,213		1,659,292
Total federal funds purchased and assets sold under agreements to repurchase	$	2,208,213	$	1,659,292

The repurchase agreements outstanding at March 31, 2014 were collateralized by $ 1.8 billion (December 31, 2013 - $ 1.3 billion) in investment securities available-for-sale, $ 331 million (December 31, 2013 - $ 309 million) in trading securities and $ 59 million (December 31, 2013 - $ 70 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 $ 187 million in securities purchased under agreements to resell to which the Corporation has the right to repledge the securities (December 31, 2013 - $ 189 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.

The following table presents the composition of other short-term borrowings at March 31, 2014 and December 31, 2013.

(In thousands)	March 31, 2014		December 31, 2013
Advances with the FHLB paying interest at maturity	$	-	$	400,000
Others		1,200		1,200
Total other short-term borrowings	$	1,200	$	401,200
Note: Refer to the Corporation's 2013 Annual Report for rates information at December 31, 2013.

The following table presents the composition of notes payable at March 31, 2014 and December 31, 2013.

(In thousands)		March 31, 2014		December 31, 2013

Advances with the FHLB with maturities ranging from 2015 through 2021 paying interest at
	monthly fixed rates ranging from 0.27% to 4.19 %	$	510,825	$	589,229

Term notes maturing in 2014 paying interest semiannually at a fixed rate of 7.47 %			675		675

Term notes maturing on 2014 paying interest monthly at a floating rate
	of 3.00% over the 10-year U.S. Treasury note rate^[1]		10		14

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 Note18)		439,800		439,800

Junior subordinated deferrable interest debentures (related to trust preferred securities)
	($936,000 less discount of $404,196 at March 31, 2014 and $404,460 at December
	31, 2013), 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 18)^[2]		531,804		531,540

Others			23,294		23,496
Total notes payable		$	1,506,408	$	1,584,754

Note: Refer to the Corporation's 2013 Annual Report for rates information at December 31, 2013.

[1] The 10-year U.S. Treasury note key index rate at March 31, 2014 and December 31, 2013 was 2.72% and 3.03%, 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 March 31, 2014 and December 31, 2013.

A breakdown of borrowings by contractual maturities at March 31, 2014 is included in the table below.

	Fed funds purchased
	and assets sold under			Short-term
(In thousands)	agreements to repurchase			borrowings	Notes payable		Total
Year
2014	$	1,466,015	$	1,200	$	17,109	$	1,484,324
2015		174,135		-		29,040		203,175
2016		453,062		-		247,105		700,167
2017		115,001		-		79,033		194,034
2018		-		-		107,389		107,389
Later years		-		-		494,928		494,928
No stated maturity		-		-		936,000		936,000
Subtotal		2,208,213		1,200		1,910,604		4,120,017
Less: Discount		-		-		404,196		404,196
Total borrowings	$	2,208,213	$	1,200	$	1,506,408	$	3,715,821

- 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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