Borrowings

9 Months Ended

Sep. 30, 2017

Note 17 – Borrowings

The following table presents the composition of assets sold under agreements to repurchase at September 30, 2017 and December 31, 2016.


(In thousands)	September 30, 2017		December 31, 2016
Assets sold under agreements to repurchase	$	374,405	$	479,425
Total assets sold under agreements to repurchase	$	374,405	$	479,425

The following table presents information related to the Corporation’s repurchase transactions accounted for as secured borrowings that are collateralized with investment securities available-for-sale, other assets held-for-trading purposes or which have been obtained under agreements to resell. 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.

Repurchase agreements accounted for as secured borrowings

		September 30, 2017		December 31, 2016
			Repurchase		Repurchase
(In thousands)			liability		liability
U.S. Treasury Securities
	Within 30 days	$	69,030	$	32,700
	After 30 to 90 days		53,781		-
	After 90 days		142,306		19,819
Total U.S. Treasury Securities			265,117		52,519
Obligations of U.S. government sponsored entities
	Within 30 days		-		95,720
	After 30 to 90 days		30,835		142,299
	After 90 days		35,400		25,380
Total obligations of U.S. government sponsored entities			66,235		263,399
Mortgage-backed securities
	Within 30 days		-		39,108
	After 30 to 90 days		-		58,552
	After 90 days		31,383		54,560
Total mortgage-backed securities			31,383		152,220
Collateralized mortgage obligations
	Within 30 days		11,670		11,287
Total collateralized mortgage obligations			11,670		11,287
Total		$	374,405	$	479,425

Repurchase agreements in portfolio are generally short-term, often overnight. As such our risk is very limited. We manage the liquidity risks arising from secured funding by sourcing funding globally from a diverse group of counterparties, providing a range of securities collateral and pursuing longer durations, when appropriate.

The following table presents information related to the Corporation’s other short-term borrowings for the periods ended September 30, 2017 and December 31, 2016.

(In thousands)	September 30, 2017		December 31, 2016
Advances with the FHLB paying interest at maturity with fixed rates ranging from 1.32% to 1.44%	$	239,398	$	-
Others		1,200		1,200
Total other short-term borrowings	$	240,598	$	1,200
Note: Refer to the Corporation's 2016 Form 10-K for rates information at December 31, 2016.

The following table presents the composition of notes payable at September 30, 2017 and December 31, 2016.

(In thousands)		September 30, 2017		December 31, 2016

Advances with the FHLB with maturities ranging from 2017 through 2029 paying interest at
	monthly fixed rates ranging from 0.81% to 4.19 %	$	569,889	$	608,193
Advances with the FHLB with maturities ranging from 2018 through 2019 paying interest monthly
	at a floating rate ranging from 0.22% to 0.34% over the 1 month LIBOR		34,164		34,164
Advances with the FHLB with maturities ranging from 2018 through 2019 paying interest quarterly
	at a floating rate from 0.09% to 0.24% over the 3 month LIBOR		25,019		30,313
Unsecured senior debt securities maturing on 2019 paying interest semiannually at a
	fixed rate of 7.00%, net of debt issuance costs of $3,648 (2016 - $5,212)		446,351		444,788
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%, net of debt issuance costs of $456 (2016 - $476)		439,344		439,323
Others			17,294		18,071
Total notes payable		$	1,532,061	$	1,574,852

Note: Refer to the Corporation’s 2016 Form 10-K for rates information at December 31, 2016.

A breakdown of borrowings by contractual maturities at September 30, 2017 is included in the table below.

	Assets sold under			Short-term
(In thousands)	agreements to repurchase			borrowings	Notes payable		Total
Year
2017	$	165,315	$	205,598	$	32,536	$	403,449
2018		209,090		35,000		220,086		464,176
2019		-		-		608,530		608,530
2020		-		-		112,088		112,088
2021		-		-		21,694		21,694
Later years		-		-		537,127		537,127
Total borrowings	$	374,405	$	240,598	$	1,532,061	$	2,147,064

At September 30, 2017 and December 31, 2016, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up to $3.9 billion and $3.8 billion, respectively, of which $868 million and $673 million, respectively, were used. In addition, at September 30, 2017 and December 31, 2016, the Corporation had placed $200 million of the available FHLB credit facility as collateral for a municipal letter of credit to secure deposits. The FHLB borrowing facilities are collateralized with loans held-in-portfolio, and do not have restrictive covenants or callable features.

Also, at September 30, 2017, the Corporation has a borrowing facility at the discount window of the Federal Reserve Bank of New York amounting to $1.2 billion (2016 - $1.2 billion), which remained unused at September 30, 2017 and December 31, 2016. The facility is a collateralized source of credit that is highly reliable even under difficult market conditions.