Short-Term Borrowings and Long-Term Debt

9 Months Ended

Sep. 30, 2012

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Short-Term Borrowings and Long-Term Debt

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at September 30, 2012 and December 31, 2011:

				Carrying Value
(Dollars in thousands)	Maturity	Principal value at September 30, 2012		September 30, 2012		December 31, 2011
Short-term borrowings:
Short-term FHLB advances	October 1, 2012	$	215,000	$	215,000	$	—
Federal funds purchased	October 1, 2012	287,000		287,000		—
Other short-term borrowings	(1)	6,170		6,170		—
Total short-term borrowings				$	508,170	$	—
Long-term debt:
5.375% Senior Notes	September 15, 2020	$	350,000	$	347,944	$	347,793
5.70% Senior Notes (2)	June 1, 2012	—		—		143,969
6.05% Subordinated Notes (3)	June 1, 2017	45,964		55,130		55,075
7.0% Junior Subordinated Debentures	October 15, 2033	50,000		55,240		55,372
Other long-term debt	(4)	—		—		1,439
Total long-term debt				$	458,314	$	603,648

(1) Represents cash collateral received from our counterparty for our interest rate swap agreement related to our 6.05% Subordinated Notes.

(2) At December 31, 2011, included in the carrying value of our 5.70% Senior Notes was $2.6 million related to the fair value of the interest rate swap associated with the notes.

(3) At September 30, 2012 and December 31, 2011, included in the carrying value of our 6.05% Subordinated Notes were $9.5 million and $8.8 million, respectively, related to the fair value of the interest rate swap associated with the notes.

(4) Represents long-term notes payable related to one of our debt fund investments. The last payment related to the notes was made in April 2012.

Interest expense related to short-term borrowings and long-term debt was $5.8 million and $18.4 million for the three and nine months ended September 30, 2012, respectively, and $6.2 million and $24.0 million for the three and nine months ended September 30, 2011, respectively. Interest expense is net of the cash flow impact from our interest rate swap agreements related to our 5.70% Senior Notes and 6.05% Subordinated Notes. The weighted average interest rate associated with our short-term borrowings as of September 30, 2012 was 0.17 percent.

5.70% Senior Notes

Our remaining $141.4 million 5.70% Senior Notes matured on June 1, 2012 and we repaid all outstanding principal, including unpaid and accrued interest, in cash upon maturity. In connection with the maturity, we also terminated the interest rate swap associated with these notes (see Note 8—“Derivative Financial Instruments”).

3.875% Convertible Notes

Our $250 million 3.875% Convertible Notes matured on April 15, 2011. The effective interest rate for our 3.875% Convertible Notes for the nine months ended September 30, 2011 was 5.92 percent and interest expense was $4.2 million.

Available Lines of Credit

We have certain facilities in place to enable us to access short-term borrowings on a secured (using available-for-sale securities as collateral) and an unsecured basis. These include repurchase agreements and uncommitted federal funds lines with various financial institutions. As of September 30, 2012, we borrowed $287.0 million against our uncommitted federal funds lines. We also pledge securities to the FHLB of San Francisco and the discount window at the FRB. The market value of collateral pledged to the FHLB of San Francisco (comprised primarily of U.S. agency debentures) at September 30, 2012 totaled $1.5 billion, of which $1.3 billion was unused and available to support additional borrowings. The market value of collateral pledged at the discount window of the FRB at September 30, 2012 totaled $604.5 million, all of which was unused and available to support additional borrowings.