Short-Term Borrowings and Long-Term Debt

3 Months Ended

Mar. 31, 2012

Short-Term Borrowings and Long-Term Debt

7. Short-Term Borrowings and Long-Term Debt

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

				Carrying Value
(Dollars in thousands)	Maturity	Principal value at  March 31, 2012		March 31,    2012		December 31,  2011
Short-term borrowings:
Short-term FHLB advances	April 2, 2012	$	530,000	$	530,000	$	-
Federal funds purchased	April 2, 2012		315,000		315,000		-
Other short-term borrowings	(1)		4,380		4,380		-
Total short-term borrowings				$	849,380	$	-
Long-term debt:
5.375% Senior Notes	September 15, 2020	$	350,000	$	347,842	$	347,793
5.70% Senior Notes (2)	June 1, 2012		141,429		142,485		143,969
6.05% Subordinated Notes (3)	June 1, 2017		45,964		54,629		55,075
7.0% Junior Subordinated Debentures	October 15, 2033		50,000		55,328		55,372
Other long-term debt	(4)		1,551		1,551		1,439
Total long-term debt				$	601,835	$	603,648

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

(2) At March 31, 2012 and December 31, 2011, included in the carrying value of our 5.70% Senior Notes were $1.1 million and $2.6 million, respectively, related to the fair value of the interest rate swap associated with the notes.

(3) At both March 31, 2012 and December 31, 2011, included in the carrying value of our 6.05% Subordinated Notes were $8.8 million 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, and was payable beginning April 30, 2009 with the last payment due in April 2012.

Interest expense related to short-term borrowings and long-term debt was $6.4 million and $10.7 million for the three months ended March 31, 2012 and 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 March 31, 2012 was 0.16 percent.

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 three months ended March 31, 2011 was 5.78 percent, and interest expense was $3.6 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 March 31, 2012, we borrowed $315.0 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 entirely of U.S. agency debentures) at March 31, 2012 totaled $1.6 billion, of which $1.0 billion was unused and available to support additional borrowings. The market value of collateral pledged at the discount window of the FRB at March 31, 2012 totaled $100.1 million, all of which was unused and available to support additional borrowings.