Borrowings

6 Months Ended

Jun. 30, 2018

Note 16 – Borrowings

The following table presents the balances of assets sold under agreements to repurchase at June 30, 2018 and December 31, 2017.


(In thousands)	June 30, 2018		December 31, 2017
Assets sold under agreements to repurchase	$	306,911	$	390,921
Total assets sold under agreements to repurchase	$	306,911	$	390,921

The following table presents information related to the Corporation’s repurchase transactions accounted for as secured borrowings that are collateralized with debt 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

		June 30, 2018		December 31, 2017
			Repurchase		Repurchase
(In thousands)			liability		liability
U.S. Treasury securities
	Within 30 days	$	147,318	$	148,516
	After 30 to 90 days		64,413		87,357
	After 90 days		46,703		43,500
Total U.S. Treasury securities			258,434		279,373
Obligations of U.S. government sponsored entities
	Within 30 days		5,152		30,656
	After 30 to 90 days		5,000		19,463
	After 90 days		6,000		15,937
Total obligations of U.S. government sponsored entities			16,152		66,056
Mortgage-backed securities
	Within 30 days		22,642		31,383
Total mortgage-backed securities			22,642		31,383
Collateralized mortgage obligations
	Within 30 days		9,683		14,109
Total collateralized mortgage obligations			9,683		14,109
Total		$	306,911	$	390,921

Repurchase agreements in this 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 June 30, 2018 and December 31, 2017.

(In thousands)	June 30, 2018		December 31, 2017
Advances with the FHLB	$	-	$	95,000
Others		1,200		1,208
Total other short-term borrowings	$	1,200	$	96,208
Note: Refer to the Corporation's 2017 Form 10-K for rates information at December 31, 2017.

The following table presents the composition of notes payable at June 30, 2018 and December 31, 2017.

(In thousands)		June 30, 2018		December 31, 2017

Advances with the FHLB with maturities ranging from 2018 through 2029 paying interest at
	monthly fixed rates ranging from 0.89% to 4.19 %	$	602,262	$	572,307
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 0.12% to 0.24% over the 3 month LIBOR		19,724		25,019
Unsecured senior debt securities maturing on 2019 paying interest semiannually at a
	fixed rate of 7.00%, net of debt issuance costs of $2,085		447,915		446,873
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 $436		439,364		439,351
Others			18,234		18,642
Total notes payable		$	1,561,663	$	1,536,356

Note: Refer to the Corporation’s 2017 Form 10-K for rates information at December 31, 2017.

A breakdown of borrowings by contractual maturities at June 30, 2018 is included in the table below.

	Assets sold under			Short-term
(In thousands)	agreements to repurchase			borrowings	Notes payable		Total
2018	$	300,911	$	1,200	$	139,597	$	441,708
2019		6,000		-		649,793		655,793
2020		-		-		112,035		112,035
2021		-		-		21,877		21,877
2022		-		-		105,175		105,175
Later years		-		-		533,186		533,186
Total borrowings	$	306,911	$	1,200	$	1,561,663	$	1,869,774

At June 30, 2018 and December 31, 2017, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up to $3.5 billion and $3.9 billion, respectively, of which $656 million and $726 million, respectively, were used. In addition, at June 30, 2018 and December 31, 2017, the Corporation had placed $335 million and $260 million, respectively, 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 June 30, 2018, the Corporation has a borrowing facility at the discount window of the Federal Reserve Bank of New York amounting to $1.2 billion (2017 - $1.1 billion), which remained unused at June 30, 2018 and December 31, 2017. The facility is a collateralized source of credit that is highly reliable even under difficult market conditions.