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Borrowings
3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Borrowings
Note 15 – Borrowings
Assets sold under agreements to repurchase
Assets sold under agreements to repurchase amounted
 
to $
66
 
million at March 31, 2024 and $
91
 
million at December 31, 2023.
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2024
December 31, 2023
Repurchase
Repurchase
(In thousands)
 
liability
 
liability
U.S. Treasury securities
Within 30 days
$
30,581
$
16,931
After 30 to 90 days
18,504
18,369
After 90 days
-
8,292
Total U.S. Treasury
 
securities
49,085
43,592
Mortgage-backed securities
 
Within 30 days
11,550
27,171
 
After 30 to 90 days
5,228
20,394
Total mortgage-backed
 
securities
16,778
47,565
Collateralized mortgage obligations
 
Within 30 days
227
227
Total collateralized
 
mortgage obligations
227
227
Total
$
66,090
$
91,384
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 March 31,
 
2024 and December 31, 2023.
Notes Payable
The following table presents the composition of notes
 
payable at March 31, 2024 and December
 
31, 2023.
 
 
 
 
 
 
 
 
 
 
(In thousands)
March 31, 2024
December 31, 2023
Advances with the FHLB with maturities ranging from
2024
 
through
2029
 
paying interest at
monthly
fixed rates ranging from
0.44
% to
5.26
%
$
373,665
$
394,665
Unsecured senior debt securities maturing on
2028
 
paying interest
semiannually
 
at a fixed rate of
7.25
%, net of debt issuance costs of $
5,715
[1]
394,285
393,937
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 $
281
198,353
198,346
Total notes payable
$
966,303
$
986,948
Note: Refer to the 2023 Form 10-K for rates information
 
at December 31, 2023.
[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 March 31, 2024 is included in the table
 
below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets sold under
 
(In thousands)
agreements to
repurchase
Notes payable
Total
2024
$
66,090
$
70,943
$
137,033
2025
-
144,214
144,214
2026
-
74,500
74,500
2028
-
438,636
438,636
Later years
-
238,010
238,010
Total borrowings
$
66,090
$
966,303
$
1,032,393
At March
 
31, 2024
 
and December 31,
 
2023, the
 
Corporation had FHLB
 
borrowing facilities whereby
 
the Corporation could
 
borrow
up to $
4.4
 
billion and $
4.2
 
billion, respectively, of which $
0.4
 
billion were used. In addition, at each of March 31,
 
2024 and December
31, 2023,
 
the Corporation
 
had placed
 
$
0.3
 
billion 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 March 31,
 
2024, the Corporation had borrowing
 
facilities at the discount window
 
of the Federal Reserve Bank
 
of New York
amounting to
 
$
4.6
 
billion (December 31,
 
2023 -
 
$
4.4
 
billion), which remained
 
unused at March
 
31, 2024
 
and December
 
31, 2023.
 
The facilities are a collateralized source of credit
 
that is highly reliable even under difficult market
 
conditions.