Short-Term Borrowings and Long-Term Debt

6 Months Ended

Jun. 30, 2015

Short-Term Borrowings and Long-Term Debt

The following table represents outstanding short-term borrowings and long-term debt at June 30, 2015 and December 31, 2014:



				Carrying Value
(Dollars in thousands)	Maturity	Principal value at June 30, 2015		June 30, 2015		December 31, 2014
Short-term borrowings:
Other short-term borrowings	(1)	$	2,537	$	2,537	$	7,781
Total short-term borrowings				$	2,537	$	7,781
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350,000	$	349,716	$	—
5.375% Senior Notes	September 15, 2020	350,000		348,554		348,436
6.05% Subordinated Notes (2)	June 1, 2017	45,964		49,426		50,162
7.0% Junior Subordinated Debentures	October 15, 2033	50,000		54,758		54,845
Total long-term debt				$	802,454	$	453,443


(1)	Represents cash collateral received from certain counterparties in relation to market value exposures of derivative contracts in our favor.


(2)	At June 30, 2015 and December 31, 2014, included in the carrying value of our 6.05% Subordinated Notes was an interest rate swap valued at $3.8 million and 4.6 million, respectively, related to hedge accounting associated with the notes.

Interest expense related to long-term debt was $9.0 million and $16.9 million for the three and six months ended June 30, 2015, and $5.8 million and $11.6 million for the three and six months ended June 30, 2014. 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 June 30, 2015 was 0.10 percent.

3.50% Senior Notes

On January 29, 2015, the Company issued $350 million of 3.50% Senior Notes due in January 2025 (“3.50% Senior Notes”). We received net proceeds from this offering of approximately $346.4 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 3.50% Senior Notes at June 30, 2015 was $349.7 million, which is reflective of a $0.3 million discount.

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 June 30, 2015, 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. Treasury securities) at June 30, 2015 totaled $1.3 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 June 30, 2015 totaled $950 million, all of which was unused and available to support additional borrowings.