Short-Term Borrowings and Long-Term Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

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, 2020 and December 31, 2019:

				Carrying Value
(Dollars in thousands)	Maturity	Principal value at September 30, 2020		September 30, 2020		December 31, 2019
Short-term borrowings:
Other short-term borrowings	(1)	$	19,068	$	19,068	17,430
Total short-term borrowings				$	19,068	$	17,430
Long-term debt:
3.50% Senior Notes	January 29, 2025	$	350,000	$	348,257	$	347,987
3.125% Senior Notes	June 5, 2030	500,000		495,173		—
Total long-term debt				$	843,430	$	347,987

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

Interest expense related to short-term borrowings and long-term debt was $7.2 million and $17.9 million for the three and nine months ended September 30, 2020 and $8.1 million and $27.6 million for the three and nine months ended September 30, 2019. The weighted average interest rate associated with our short-term borrowings was 0.08 percent as of September 30, 2020 and 1.55 percent as of as of December 31, 2019.

Short-term Borrowings

We have certain facilities in place to enable us to access short-term borrowings on a secured and unsecured basis. Our secured facilities include collateral pledged to the FHLB of San Francisco and the discount window at the FRB (using both fixed income securities and loans as collateral). Our unsecured facility consists of our uncommitted federal funds lines. As of September 30, 2020, collateral pledged to the FHLB of San Francisco was comprised primarily of fixed income investment securities and loans and had a carrying value of $6.6 billion, of which $5.5 billion was available to support additional borrowings. As of September 30, 2020, collateral pledged to the discount window at the FRB was comprised of fixed income investment securities and had a carrying value of $0.9 billion, all of which was unused and available to support additional borrowings. Our total unused and available borrowing capacity for our uncommitted federal funds lines totaled $1.9 billion at September 30, 2020. Our total unused and available borrowing capacity under our master repurchase agreements with various financial institutions totaled $3.3 billion at September 30, 2020.

3.125% Senior Notes

On June 5, 2020, the Company issued $500 million of 3.125% Senior Notes due in June 2030 ("3.125% Senior Notes"). The 3.125% Senior Notes may be redeemed by us, at our option, at any time prior to March 5, 2030, at a redemption price equal to the full aggregate principal amount plus a “make-whole” premium payment. We received net proceeds from this offering of approximately $495.4 million after deducting underwriting discounts and commissions and issuance costs. The balance of our 3.125% Senior Notes at September 30, 2020 was $495.2 million, which is reflective of $4.4 million of debt issuance costs and a $0.4 million discount.