Borrowings

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Borrowings

Note 15 – Borrowings

Assets sold under agreements to repurchase

Assets sold under agreements to repurchase amounted to $

106

 million at June 30, 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

June 30, 2024

December 31, 2023

Repurchase

Repurchase

(In thousands)

 liability

 liability

U.S. Treasury securities

Within 30 days

$

49,922

$

16,931

After 30 to 90 days

4,251

18,369

After 90 days

8,523

8,292

Total U.S. Treasury securities

62,696

43,592

Mortgage-backed securities

 Within 30 days

38,171

27,171

 After 30 to 90 days

4,817

20,394

Total mortgage-backed securities

42,988

47,565

Collateralized mortgage obligations

 Within 30 days

-

227

Total collateralized mortgage obligations

-

227

Total

$

105,684

$

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 June 30, 2024 and December 31, 2023.

Notes Payable

The following table presents the composition of notes payable at June 30, 2024 and December 31, 2023.

(In thousands)

June 30, 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

%

$

348,665

$

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 $

5,444

[1]

394,556

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 $

275

198,359

198,346

Total notes payable

$

941,580

$

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 June 30, 2024 is included in the table below.

Assets sold under 

(In thousands)

agreements to

repurchase

Notes payable

Total

2024

$

105,684

$

45,943

$

151,627

2025

-

144,214

144,214

2026

-

74,500

74,500

2028

-

438,906

438,906

Later years

-

238,017

238,017

Total borrowings

$

105,684

$

941,580

$

1,047,264

At June 30, 2024 and December 31, 2023, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up

to $

4.5

 billion and $

4.2

 billion, respectively, of which $

0.3

 and $

0.4

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

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 June 30, 2024, the Corporation had borrowing facilities at the discount window of the Federal Reserve Bank of New York

amounting to $

4.7

 billion (December 31, 2023 - $

4.4

 billion), which remained unused at June 30, 2024 and December 31, 2023. 

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