Borrowings

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Note 14 – Borrowings

Assets sold under agreements to repurchase as of the end of the periods presented were as follows:

	March 31,		December 31,		March 31,
(In thousands)	2012		2011		2011
Assets sold under agreements to repurchase	$	2,113,557	$	2,141,097	$	2,642,800

The repurchase agreements outstanding at March 31, 2012 were collateralized by $ 1.8 billion (December 31, 2011 - $ 1.8 billion; March 31, 2011 - $ 2.1 billion) in investment securities available-for-sale, $348 million (December 31, 2011 - $403 million; March 31, 2011 - $587 million) in trading securities and $ 68 million (December 31, 2011 - $ 68 million; March 31, 2011 - $ 32 million) in securities sold not yet delivered that are classified in other assets. It is the Corporation's policy to maintain effective control over assets sold under agreements to repurchase; accordingly, such securities continue to be carried on the consolidated statements of financial condition.

In addition, there were repurchase agreements outstanding collateralized by $ 244 million in securities purchased under agreements to resell to which the Corporation has the right to repledge the securities (December 31, 2011 - $ 274 million; March 31, 2011 - $ 209 million). It is the Corporation's policy to take possession of securities purchased under agreements to resell. However, the counterparties to such agreements maintain effective control over such securities; accordingly, are not reflected in the Corporation's consolidated statements of financial condition.

Other short-term borrowings as of the end of the periods presented consisted of:

	March 31,		December 31,		March 31,
(In thousands)	2012		2011		2011
Advances with the FHLB paying interest at maturity, at fixed rates ranging from 0.37% to 0.40% (March 31, 2011 - 0.36% to 0.40%)	$	750,000	$	295,000	$	250,000
Term funds purchased paying interest at maturity, at fixed rates ranging from 0.70% to 1.05%		-		-		39,102
Others		1,200		1,200		1,200
Total other short-term borrowings	$	751,200	$	296,200	$	290,302

Note: Refer to the Corporation's 2011 Annual Report for rates information corresponding to the short-term borrowings outstanding at December 31, 2011.

Notes payable as of the end of the periods reported consisted of:

		March 31,		December 31,		March 31,

(In thousands)		2012		2011		2011

Advances with the FHLB with maturities ranging from 2012 through 2021 paying interest at
	monthly fixed rates ranging from 1.07% to 4.95% (March 31, 2011 - 0.66% to 4.95%)	$	623,286	$	642,568	$	577,000

Note issued to the FDIC paying interest monthly at an annual fixed rate of 2.50%			-		-		2,022,669

Term notes with maturities ranging from 2012 to 2016 paying interest semiannually
	at fixed rates ranging from 5.25% to 7.86% (March 31, 2011 - 5.25% to 7.03%)		278,337		278,309		278,201

Term notes with maturities ranging from 2012 to 2013 paying interest
	monthly at a floating rate of 3.00% over the 10-year U.S. Treasury note rate		478		588		907

Junior subordinated deferrable interest debentures (related to trust preferred
	securities) with maturities ranging from 2027 to 2034 with fixed interest		439,800		439,800		439,800
	rates ranging from 6.125% to 8.327% (Refer to Note ##TPS)

Junior subordinated deferrable interest debentures (related to trust preferred
	securities) ($936,000 less discount of $459,043 at March 31, 2012 and $485,128 at
	March 31, 2011) with no stated maturity and a fixed interest rate of 5.00% until, but		476,957		470,037		450,872
	excluding December 5, 2013 and 9.00% thereafter (Refer to Note ##TPS)^[1]

Others			24,896		25,070		25,206
Total notes payable		$	1,843,754	$	1,856,372	$	3,794,655

Note: Refer to the Corporation's 2011 Annual Report, for rates and maturity information corresponding to the borrowings outstanding at December 31, 2011. The10-year U.S. Treasury note key index rate at March 31, 2012 and March 31, 2011 were 2.21% and 3.47%, respectively.

[1] The debentures are perpetual and may be redeemed by the Corporation at any time, subject to the consent of the Board of Governors of the Federal Reserve System. The discount on the debentures is being amortized over an estimated 30-year term that started in August 2009. The effective interest rate, including the discount accretion, was approximately 16% at March 31, 2012 and 2011.

A breakdown of borrowings by contractual maturities at March 31, 2012 is included in the table below.

	Assets sold under
	agreements		Short-term
(In thousands)	to repurchase		borrowings		Notes payable		Total
Year
2012	$	1,021,360	$	751,200	$	192,697	$	1,965,257
2013		-		-		98,901		98,901
2014		350,000		-		189,452		539,452
2015		174,135		-		36,099		210,234
2016		453,062		-		311,479		764,541
Later years		115,000		-		538,169		653,169
No stated maturity		-		-		936,000		936,000
Subtotal		2,113,557		751,200		2,302,797		5,167,554
Less: Discount		-		-		459,043		459,043
Total borrowings	$	2,113,557	$	751,200	$	1,843,754	$	4,708,511

- 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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