Borrowings

9 Months Ended

Sep. 30, 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:

	September 30,		December 31,
(In thousands)	2012		2011
Assets sold under agreements to repurchase	$	1,944,564	$	2,141,097

The repurchase agreements outstanding at September 30, 2012 were collateralized by $ 1.5 billion (December 31, 2011 - $ 1.8 billion) in investment securities available-for-sale, $181 million (December 31, 2011 - $403 million) in trading securities and $ 267 million (December 31, 2011 - $ 68 million) in trading receivables from brokers and counterparties 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 $ 251 million in securities purchased under agreements to resell to which the Corporation has the right to repledge the securities (December 31, 2011 - $ 274 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, these securities 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:

	September 30,		December 31,
(In thousands)	2012		2011
Advances with the FHLB paying interest at maturity, at fixed rates ranging from 0.34% to 0.42%	$	1,205,000	$	295,000
Others		1,200		1,200
Total other short-term borrowings	$	1,206,200	$	296,200
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:

		September 30,		December 31,

(In thousands)		2012		2011

Advances with the FHLB with maturities ranging from 2012 through 2021 paying interest at
	monthly fixed rates ranging from 0.63% to 4.93% (December 31, 2011- ranging from	$	631,898	$	642,568
	0.66% to 4.95%)

Term notes with maturities ranging from 2012 to 2016 paying interest semiannually
	at fixed rates ranging from 5.25% to 7.86%		278,393		278,309

Term notes with maturities ranging from 2012 to 2014 paying interest
	monthly at a floating rate of 3.00% over the 10-year U.S. Treasury note rate		251		588

Junior subordinated deferrable interest debentures (related to trust preferred
	securities) with maturities ranging from 2027 to 2034 with fixed interest
	rates ranging from 6.125% to 8.327% (Refer to Note 15)		439,800		439,800

Junior subordinated deferrable interest debentures (related to trust preferred securities)
	($936,000 less discount of $444,338 at September 30, 2012 and $465,963 at December
	31, 2011), with no stated maturity and a fixed interest rate of 5.00% until, but excluding
	December 5, 2013 and 9.00% thereafter (Refer to Note15)^[1]		491,662		470,037

Others			24,373		25,070
Total notes payable		$	1,866,377	$	1,856,372

Note: The 10-year U.S. Treasury note key index rate at September 30, 2012 and December 31, 2011 was 1.63% and 1.88%, 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 September 30, 2012 and December 31, 2011.

A breakdown of borrowings by contractual maturities at September 30, 2012 is included in the table below.

	Assets sold under
	agreements		Short-term
(In thousands)	to repurchase		borrowings		Notes payable		Total
Year
2012	$	1,201,161	$	1,206,200	$	147,075	$	2,554,436
2013		1,206		-		98,834		100,040
2014		-		-		189,428		189,428
2015		174,135		-		36,104		210,239
2016		453,062		-		311,492		764,554
Later years		115,000		-		591,782		706,782
No stated maturity		-		-		936,000		936,000
Subtotal		1,944,564		1,206,200		2,310,715		5,461,479
Less: Discount		-		-		444,338		444,338
Total borrowings	$	1,944,564	$	1,206,200	$	1,866,377	$	5,017,141

- 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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