Short and Long-Term Funding

The components of short-term funding (funding with original contractual maturities of one year or less) and long-term funding (funding with original contractual maturities greater than one year) were as follows.



	September 30, 2015			December 31, 2014
	($ in Thousands)
Short-Term Funding
Federal funds purchased	$	177,940		$	109,770
Securities sold under agreements to repurchase	524,629			384,221
Federal funds purchased and securities sold under agreements to repurchase	$	702,569		$	493,991
FHLB advances	260,000			500,000
Commercial paper	59,766			74,297
Other short-term funding	319,766			574,297
Total short-term funding	$	1,022,335		$	1,068,288
Long-Term Funding
FHLB advances	$	1,750,234		$	3,000,260
Senior notes, at par	680,000			680,000
Subordinated notes, at par	250,000			250,000
Other long-term funding and capitalized costs	(692		)	(143		)
Total long-term funding	2,679,542			3,930,117
Total short and long-term funding	$	3,701,877		$	4,998,405

Securities sold under agreements to repurchase ("repurchase agreements")

The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). See Note 12 for additional disclosures on balance sheet offsetting.

The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. As of September 30, 2015, the Corporation pledged GSE mortgage-related securities with a fair value of $648 million as collateral for the repurchase agreements. Securities pledged as collateral under repurchase agreements are maintained with the Corporation's safekeeping agents and are monitored on a daily basis due to the market risk of fair value changes in the underlying securities. The Corporation generally pledges excess securities to ensure there is sufficient collateral to satisfy short-term fluctuations in both the repurchase agreement balances and the fair value of the underlying securities.

The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2015 is presented in the following table.



	Remaining Contractual Maturity of the Agreements
September 30, 2015	Overnight and Continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
					($ in Thousands)
Repurchase agreements
GSE securities	$	524,629	$	—	$	—	$	—	$	524,629
Total	$	524,629	$	—	$	—	$	—	$	524,629
Gross amounts of recognized liabilities for repurchase agreements									$	524,629

Long-term funding:

FHLB Advances: Long-term FHLB advances had a weighted-average interest rate of 0.13% at September 30, 2015 and 0.11% at December 31, 2014. The FHLB advances are indexed to the FHLB discount note and reprice at varying intervals. The advances offer flexible, low cost, long-term funding that improves the Corporation’s liquidity profile.

2011 Senior Notes: In March 2011, the Corporation issued $300 million of senior notes due March 2016, and callable February 2016, with a 5.125% fixed coupon at a discount. In September 2011, the Corporation “re-opened” the offering and issued an additional $130 million of the same notes at a premium.

2014 Senior Notes: In November 2014, the Corporation issued $250 million of senior notes, due November 2019, and callable October 2019. The senior notes have a fixed coupon interest rate of 2.75% and were issued at a discount.

2014 Subordinated Notes: In November 2014, the Corporation issued $250 million of 10-year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount.