Short-Term Borrowings and Long-Term Debt

3 Months Ended

Mar. 31, 2013

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at March 31, 2013 and December 31, 2012:



				Carrying Value
(Dollars in thousands)	Maturity	Principal value at March 31, 2013		March 31, 2013		December 31, 2012
Short-term borrowings:
Federal funds purchased	—	—		—		160,000
Other short-term borrowings	(1)	7,460		7,460		6,110
Total short-term borrowings				$	7,460	$	166,110
Long-term debt:
5.375% Senior Notes	September 15, 2020	$	350,000	$	348,048	$	347,995
6.05% Subordinated Notes (2)	June 1, 2017	45,964		53,993		54,571
7.0% Junior Subordinated Debentures	October 15, 2033	50,000		55,153		55,196
Total long-term debt				$	457,194	$	457,762


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


(2)	At March 31, 2013 and December 31, 2012, included in the carrying value of our 6.05% Subordinated Notes were $8.5 million and $9.0 million, respectively, related to hedge accounting associated with the notes.

Interest expense related to short-term borrowings and long-term debt was $5.8 million and $6.4 million for the three months ended March 31, 2013, and 2012, respectively. Interest expense is net of the hedge accounting 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 March 31, 2013 was 0.12 percent.

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 March 31, 2013, we did not borrow 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 March 31, 2013 totaled $1.5 billion, all of which was unused and available to support additional borrowings. The market value of collateral pledged at the discount window of the FRB at March 31, 2013 totaled $673 million, all of which was unused and available to support additional borrowings.

- 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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