Borrowings

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Note 17 – Borrowings

Assets sold under agreements to repurchase

Assets sold under agreements to repurchase amounted to $

91

 million at December 31, 2023 and $

149

 million at December 31,

2022.

The Corporation’s repurchase transactions are overcollateralized with the securities detailed in the table below. The Corporation’s

repurchase agreements have a right of set-off with the respective counterparty under the supplemental terms of the master

repurchase agreements. In an event of default, each party has a right of set-off against the other party for amounts owed in the

related agreement and any other amount or obligation owed in respect of any other agreement or transaction between them.

Pursuant to the Corporation’s accounting policy, the repurchase agreements are not offset with other repurchase agreements held

with the same counterparty.

The following table presents information related to the Corporation’s repurchase transactions accounted for as secured borrowings

that are collateralized with debt securities available-for-sale, debt securities held-to-maturity, other assets held-for-trading purposes

or which have been obtained under agreements to resell. 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.

Repurchase agreements accounted for as secured borrowings

December 31, 2023

December 31, 2022

Repurchase liability

Repurchase liability

Repurchase

 weighted average

Repurchase

 weighted average

(Dollars in thousands)

 liability

interest rate

 liability

interest rate

U.S. Treasury securities

 Within 30 days

$

16,931

5.56

%

$

410

4.40

%

 After 30 to 90 days

18,369

5.60

30,739

3.79

 After 90 days

8,292

5.73

17,521

4.39

Total U.S. Treasury securities

43,592

5.61

48,670

4.01

Mortgage-backed securities

 Within 30 days

27,171

5.49

98,984

4.27

 After 30 to 90 days

20,394

5.71

791

3.27

Total mortgage-backed securities

47,565

5.58

99,775

4.26

Collateralized mortgage obligations

 Within 30 days

227

5.25

164

4.25

Total collateralized mortgage obligations

227

5.25

164

4.25

Total

$

91,384

5.59

%

$

148,609

4.18

%

Repurchase agreements in this portfolio are generally short-term, often overnight. As such, our risk is very limited. We manage the

liquidity risks arising from secured funding by sourcing funding globally from a diverse group of counterparties, providing a range of

securities collateral and pursuing longer durations, when appropriate.

(Dollars in thousands)

2023

2022

Maximum aggregate balance outstanding at any month-end

$

150,692

$

162,450

Average monthly aggregate balance outstanding

$

115,808

$

107,305

Weighted average interest rate:

For the year

5.20

%

2.15

%

At December 31

5.68

%

4.23

%

Other short-term borrowings

There were

no

 other short-term borrowings at December 31, 2023, compared to $

365

 million in FHLB advances at December 31,

2022.

The following table presents additional information related to the Corporation’s other short-term borrowings for the years

ended December 31, 2023 and December 31, 2022.

(Dollars in thousands)

2023

2022

Maximum aggregate balance outstanding at any month-end

$

65,000

$

375,000

Average monthly aggregate balance outstanding

$

27,302

$

99,083

Weighted average interest rate:

For the year

4.80

%

3.46

%

At December 31

5.60

%

4.47

%

Notes Payable

The following table presents the composition of notes payable at December 31, 2023 and December 31, 2022.

(In thousands)

December 31, 2023

December 31, 2022

Advances with the FHLB with maturities ranging from

2024

 through

2029

 paying interest at monthly

fixed rates ranging from

0.41

% to

5.26

% (2022 -

0.39

% to

3.18

%)

$

394,665

$

389,282

Unsecured senior debt securities maturing on

2028

 paying interest

semiannually

 at a fixed rate of

7.25

% (2022-

6.125

%), net of debt issuance costs of $

6,063

 (2022 - $

891

)

[1]

393,937

299,109

Junior subordinated deferrable interest debentures (related to trust preferred securities) maturing on

2034

 with fixed interest rates ranging from

6.125

% to

6.564

% (2022 -

6.125

% to

6.564

%), net of debt

issuance costs of $

288

 (2022 - $

315

)

198,346

198,319

Total notes payable

$

986,948

$

886,710

[1] On March 13, 2023, the Corporation issued $

400

 million aggregate principal amount of

7.25

% Senior Notes due

2028

 (the “2028 Notes”) in an

underwritten public offering. The Corporation used a portion of the net proceeds of the 2028 Notes offering to redeem, on August 14, 2023, the

outstanding $

300

 million aggregate principal amount of its

6.125

% Senior Notes which were due on September

2023

. The redemption price was

equal to

100

% of the principal amount plus accrued and unpaid interest through the redemption date.

A breakdown of borrowings by contractual maturities at December 31, 2023 is included in the table below.

Assets sold under 

(In thousands)

agreements to

repurchase

Notes payable

Total

2024

$

91,384

$

91,943

$

183,327

2025

-

144,214

144,214

2026

-

74,500

74,500

2028

-

438,288

438,288

Later years

-

238,003

238,003

Total borrowings

$

91,384

$

986,948

$

1,078,332

At December 31, 2023 and December 31, 2022, the Corporation had FHLB borrowing facilities whereby the Corporation could

borrow up to $

4.2

 billion and $

3.3

 billion, respectively, of which $

0.4

 billion and $

0.8

 billion, respectively, were used. In addition, at

December 31, 2023 and December 31, 2022, the Corporation had placed $

0.3

 billion and $

0.4

 billion, respectively, of the available

FHLB credit facility as collateral for municipal letters of credit to secure deposits. The FHLB borrowing facilities are collateralized

with securities and loans held-in-portfolio, and do not have restrictive covenants or callable features. 

Also, at December 31, 2023, the Corporation has borrowing facilities at the discount window of the Federal Reserve Bank of New

York amounting to $

4.4

 billion (December 31, 2022 - $

1.4

 billion), which remained unused at December 31, 2023 and December 31,

2022. The facilities are a collateralized source of credit that is highly reliable even under difficult market conditions.