Borrowings

3 Months Ended

Mar. 31, 2019

Note 17 – Borrowings

The following table presents the balances of assets sold under agreements to repurchase at March 31, 2019 and December 31, 2018.


(In thousands)	March 31, 2019		December 31, 2018
Assets sold under agreements to repurchase	$	200,871	$	281,529
Total assets sold under agreements to repurchase	$	200,871	$	281,529

The Corporation’s repurchase transactions are overcollateralized with the securities detailed in the table below. The Corporation’s repurchase agreements have a right of set-off with the respective counterparty under the supplemental terms of the master repurchase agreements. In an event of default each party has a right of set-off against the other party for amounts owed in the related agreement and any other amount or obligation owed in respect of any other agreement or transaction between them.

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

		March 31, 2019		December 31, 2018
			Repurchase		Repurchase
(In thousands)			liability		liability
U.S. Treasury securities
	Within 30 days	$	31,494	$	138,689
	After 30 to 90 days		14,687		79,374
	After 90 days		123,896		19,558
Total U.S. Treasury securities			170,077		237,621
Obligations of U.S. government sponsored entities
	After 30 to 90 days		-		6,055
Total obligations of U.S. government sponsored entities			-		6,055
Mortgage-backed securities
	Within 30 days		27,146		6,859
	After 90 days		-		20,465
Total mortgage-backed securities			27,146		27,324
Collateralized mortgage obligations
	Within 30 days		3,648		10,529
Total collateralized mortgage obligations			3,648		10,529
Total		$	200,871	$	281,529

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 the composition of notes payable at March 31, 2019 and December 31, 2018.

(In thousands)		March 31, 2019		December 31, 2018

Advances with the FHLB with maturities ranging from 2019 through 2029 paying interest at
	monthly fixed rates ranging from 0.95% to 4.19 %	$	482,820	$	524,052
Advances with the FHLB paying interest monthly
	at a floating rate		-		13,000
Advances with the FHLB maturing on 2019 paying interest quarterly
	at a floating rate of 0.24% over the 3 month LIBOR		14,430		19,724
Unsecured senior debt securities maturing on 2023 paying interest semiannually at a
	fixed rate of 6.125%, net of debt issuance costs of $5,644		294,356		294,039
Junior subordinated deferrable interest debentures (related to trust preferred securities)
	with maturities ranging from 2033 to 2034 with fixed interest rates ranging from
	6.125% to 6.7%, net of debt issuance costs of $416		384,882		384,875
Capital lease obligations			-		20,412
Total notes payable		$	1,176,488	$	1,256,102

Note: Refer to the Corporation’s 2018 Form 10-K for rates information at December 31, 2018.

A breakdown of borrowings by contractual maturities at March 31, 2019 is included in the table below.

	Assets sold under			Short-term
(In thousands)	agreements to repurchase			borrowings	Notes payable		Total
2019	$	138,756	$	42	$	150,622	$	289,420
2020		62,115		-		140,149		202,264
2021		-		-		20,040		20,040
2022		-		-		103,147		103,147
2023		-		-		297,617		297,617
Later years		-		-		464,913		464,913
Total borrowings	$	200,871	$	42	$	1,176,488	$	1,377,401

At March 31, 2019 and December 31, 2018, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up to $3.4 billion and $3.4 billion, respectively, of which $0.5 billion and $0.6 billion, respectively, were used. In addition, at March 31, 2019 and December 31, 2018, the Corporation had placed $0.9 billion and $0.9 billion, 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 March 31, 2019, the Corporation has a borrowing facility at the discount window of the Federal Reserve Bank of New York amounting to $1.2 billion (2018 - $1.2 billion), which remained unused at March 31, 2019 and December 31, 2018. The facility is a collateralized source of credit that is highly reliable even under difficult market conditions.