Short-Term Borrowings and Long-Term Debt

9 Months Ended

Sep. 30, 2014

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at September 30, 2014 and December 31, 2013:



				Carrying Value
(Dollars in thousands)	Maturity	Principal value at September 30, 2014		September 30, 2014		December 31, 2013
Short-term borrowings:
Other short-term borrowings	(1)	$	6,630	$	6,630	$	5,080
Total short-term borrowings				$	6,630	$	5,080
Long-term debt:
5.375% Senior Notes	September 15, 2020	$	350,000	$	348,378	$	348,209
6.05% Subordinated Notes (2)	June 1, 2017	45,964		50,497		51,987
7.0% Junior Subordinated Debentures	October 15, 2033	50,000		54,889		55,020
Total long-term debt				$	453,764	$	455,216


(1)	Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor, primarily for our interest rate swap agreement related to our 6.05% Subordinated Notes.


(2)	At September 30, 2014 and December 31, 2013, included in the carrying value of our 6.05% Subordinated Notes was an interest rate swap valued at $5.0 million and $6.5 million, respectively, related to hedge accounting associated with the notes.

Interest expense related to long-term debt was $5.8 million and $17.4 million for the three and nine months ended September 30, 2014, and $5.7 million and $17.4 million for the three and nine months ended September 30, 2013. Interest expense is net of the hedge accounting impact from our interest rate swap agreement related to our 6.05% Subordinated Notes. The weighted average interest rate associated with our short-term borrowings as of September 30, 2014 was 0.07 percent.

Available Lines of Credit

We have certain facilities in place to enable us to access short-term borrowings on a secured (using high-quality fixed income securities as collateral) and an unsecured basis. These include repurchase agreements and uncommitted federal funds lines with various financial institutions. As of September 30, 2014, 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 Federal Reserve Bank. The market value of collateral pledged to the FHLB of San Francisco (comprised primarily of U.S. agency debentures and mortgage securities) at September 30, 2014 totaled $1.2 billion, all of which was unused and available to support additional borrowings. The market value of collateral pledged at the discount window of the Federal Reserve Bank at September 30, 2014 totaled $517 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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