Borrowings

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowings

Note 16 – Borrowings

Assets sold under agreements to repurchase

Assets sold under agreements to repurchase amounted to $

93

 million at September 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

September 30, 2023

December 31, 2022

Repurchase

Repurchase

(In thousands)

 liability

 liability

U.S. Treasury securities

Within 30 days

$

12,736

$

410

After 30 to 90 days

13,199

30,739

After 90 days

18,180

17,521

Total U.S. Treasury securities

44,115

48,670

Mortgage-backed securities

 Within 30 days

28,211

98,984

 After 30 to 90 days

-

791

 After 90 days

20,499

-

Total mortgage-backed securities

48,710

99,775

Collateralized mortgage obligations

 Within 30 days

246

164

Total collateralized mortgage obligations

246

164

Total

$

93,071

$

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 September 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 September 30, 2023 and December 31, 2022.

(In thousands)

September 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 maturing on

2028

 paying interest

semiannually

 at a fixed rate of

7.25

%, net of debt issuance costs of $

6,322

[1]

393,678

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 $

295

198,339

198,319

Total notes payable

$

1,004,649

$

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. The Corporation used 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 which were due on September

2023

. The redemption price was

equal to

100

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

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

Assets sold under 

(In thousands)

agreements to

repurchase

Notes payable

Total

2023

$

54,393

$

22,261

$

76,654

2024

38,678

91,943

130,621

2025

-

139,920

139,920

2026

-

74,500

74,500

Later years

-

676,025

676,025

Total borrowings

$

93,071

$

1,004,649

$

1,097,720

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

borrow up to $

4.4

 billion and $

3.3

 billion, respectively, of which $

0.4

 billion and $

0.8

 billion, respectively, were used. In addition, at

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

York amounting to $

4.6

 billion (December 31, 2022 - $

1.4

 billion), which remained unused at September 30, 2023 and December

31, 2022. The facility is a collateralized source of credit that is highly reliable even under difficult market conditions.