Borrowings

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Borrowings

Note 16 – Borrowings

Assets sold under agreements to repurchase

Assets sold under agreements to repurchase amounted to $162 million at September 30, 2022 and $92 million at December 31, 2021.

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. Pursuant to the Corporation’s accounting policy, the repurchase agreements are not offset with other repurchase agreements held with the same counterparty.

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

		September 30, 2022		December 31, 2021
			Repurchase		Repurchase
(In thousands)			liability		liability
U.S. Treasury securities
	Within 30 days	$	27,381	$	19,538
	After 30 to 90 days		13,790		30,295
	After 90 days		17,448		29,036
Total U.S. Treasury securities			58,619		78,869
Mortgage-backed securities
	Within 30 days		96,572		11,733
	After 90 days		6,980		722
Total mortgage-backed securities			103,552		12,455
Collateralized mortgage obligations
	Within 30 days		279		279
Total collateralized mortgage obligations			279		279
Total		$	162,450	$	91,603

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.

Other short-term borrowings

At September 30, 2022 and December 31, 2021, other short-term borrowings consisted of $250 million and $75 million, respectively, in FHLB Advances.

Notes Payable

The following table presents the composition of notes payable at September 30, 2022 and December 31, 2021.

(In thousands)	September 30, 2022		December 31, 2021
Advances with the FHLB with maturities ranging from 2022 through 2029 paying interest at monthly fixed rates ranging from 0.39% to 3.18%	$	391,429	$	492,429
Unsecured senior debt securities maturing on 2023 paying interest semiannually at a fixed rate of 6.125%, net of debt issuance costs of $1,208		298,793		297,842
Junior subordinated deferrable interest debentures (related to trust preferred securities) maturing on 2034 with fixed interest rates ranging from 6.125% to 6.564%, net of debt issuance costs of $322		198,312		198,292
Total notes payable	$	888,534	$	988,563
Note: Refer to the Corporation's 2021 Form 10-K for rates information at December 31, 2021.

A breakdown of borrowings by contractual maturities at September 30, 2022 is included in the table below.

		Assets sold under		Short-term
(In thousands)		agreements to repurchase		borrowings		Notes payable	Total
2022	$	138,022	$	250,000	$	2,148	$	390,170
2023		24,428		-		342,053		366,481
2024		-		-		91,943		91,943
2025		-		-		139,920		139,920
2026		-		-		74,500		74,500
Later years		-		-		237,970		237,970
Total borrowings	$	162,450	$	250,000	$	888,534	$	1,300,984

At September 30, 2022 and December 31, 2021, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up to $3.3 billion and $3.0 billion, respectively, of which $0.6 billion were used at each period. In addition, at September 30, 2022 and December 31, 2021, the Corporation had placed $0.5 billion and $1.2 billion, respectively, of the available FHLB credit facility as collateral for municipal letters 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, 2022, the Corporation has a borrowing facility at the discount window of the Federal Reserve Bank of New York amounting to $1.4 billion (December 31, 2021 - $1.3 billion), which remained unused at September 30, 2022 and December 31, 2021. The facility is a collateralized source of credit that is highly reliable even under difficult market conditions.