Borrowings

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Borrowings

Note 16 – Borrowings

Assets sold under agreements to repurchase

Assets sold under agreements to repurchase amounted to $

123

 million at June 30, 2023 and $

149

 million at December 31, 2022.

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, debt securities held-to-maturity, 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, 2023

December 31, 2022

Repurchase

Repurchase

(In thousands)

 liability

 liability

U.S. Treasury securities

Within 30 days

$

13,000

$

410

After 30 to 90 days

21,933

30,739

After 90 days

13,254

17,521

Total U.S. Treasury securities

48,187

48,670

Mortgage-backed securities

 Within 30 days

73,958

98,984

 After 30 to 90 days

795

791

Total mortgage-backed securities

74,753

99,775

Collateralized mortgage obligations

 Within 30 days

265

164

Total collateralized mortgage obligations

265

164

Total

$

123,205

$

148,609

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

There were

no

 other short-term borrowings outstanding at June 30, 2023, compared to $

365

 million in FHLB Advances at December

31, 2022.

Notes Payable

The following table presents the composition of notes payable at June 30, 2023 and December 31, 2022.

(In thousands)

June 30, 2023

December 31, 2022

Advances with the FHLB with maturities ranging from

2023

 through

2029

 paying interest at

monthly

fixed rates ranging from

0.39

% to

4.17

%

$

412,632

$

389,282

Unsecured senior debt securities with maturities ranging from

2023

 to

2028

 paying interest

semiannually

 at fixed rates ranging from

6.125

% to

7.25

%, net of debt issuance costs of $

6,915

[1]

693,085

299,109

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 $

301

198,332

198,319

Total notes payable

$

1,304,049

$

886,710

Note: Refer to the 2022 Form 10-K for rates information at December 31, 2022.

[1] On March 13, 2023, the Corporation issued $

400

 million aggregate principal amount of

7.25

% Senior Notes due

2028

 (the “2028 Notes”) in an

underwritten public offering. On July 14, 2023, the Corporation announced that it will use a portion of the net proceeds of the 2028 Notes offering to

redeem, on August 14, 2023, the outstanding $

300

 million aggregate principal amount of its

6.125

% Senior Notes due September

2023

. The

redemption price will be equal to

100

% of the principal amount plus accrued and unpaid interest through the redemption date.

A breakdown of borrowings by contractual maturities at June 30, 2023 is included in the table below.

Assets sold under 

(In thousands)

agreements to

repurchase

Notes payable

Total

2023

$

118,600

$

322,004

$

440,604

2024

4,605

91,943

96,548

2025

-

139,920

139,920

2026

-

74,500

74,500

Later years

-

675,682

675,682

Total borrowings

$

123,205

$

1,304,049

$

1,427,254

At June 30, 2023 and December 31, 2022, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up

to $

4.1

 billion and $

3.3

 billion, respectively, of which $

0.4

 billion and $

0.8

 billion, respectively, were used. In addition, at June 30,

2023 and December 31, 2022, the Corporation had placed $

0.3

 billion and $

0.4

 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 securities

and loans held-in-portfolio, and do not have restrictive covenants or callable features. 

Also, at June 30, 2023, the Corporation has a borrowing facility at the discount window of the Federal Reserve Bank of New York

amounting to $

3.1

 billion (December 31, 2022 - $

1.4

 billion), which remained unused at June 30, 2023 and December 31, 2022. 

The facility is a collateralized source of credit that is highly reliable even under difficult market conditions.