Short and Long-Term Funding

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Short and Long-Term Funding

Short and Long-Term Funding

The following table presents the components of short-term funding (funding with original contractual maturities of one year or less) and long-term funding (funding with original contractual maturities greater than one year):

($ in Thousands)	Mar 31, 2022		Dec 31, 2021
Short-Term Funding
Federal funds purchased	$	100,060	$	120
Securities sold under agreements to repurchase	268,708		319,412
Federal funds purchased and securities sold under agreements to repurchase	368,768		319,532
Commercial paper	30,593		34,730
Total short-term funding	$	399,361	$	354,262
Long-Term Funding
Corporation subordinated notes, at par, due 2025	$	250,000	$	250,000
Capitalized costs	(765)		(839)
Finance leases	562		163
Total long-term funding	249,797		249,324
Total short and long-term funding, excluding FHLB advances	$	649,158	$	603,587
FHLB Advances
Short-term FHLB advances	$	320,000	$	—
Long-term FHLB advances	1,217,948		1,621,047
Total FHLB advances	$	1,537,948	$	1,621,047
Total short and long-term funding	$	2,187,106	$	2,224,633

Securities Sold Under Agreements to Repurchase

The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities).

The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. The fair value of securities pledged to secure repurchase agreements may decline. At March 31, 2022, the Corporation has pledged securities valued at 129% of the gross outstanding balance of repurchase agreements to manage this risk.

The remaining contractual maturity of the securities sold under agreements to repurchase on the consolidated balance sheets as of March 31, 2022 and December 31, 2021 are presented in the following table:

	Overnight and Continuous
($ in Thousands)	March 31, 2022		December 31, 2021
Repurchase agreements
Agency mortgage-related securities	$	268,708	$	319,412

Long-Term Funding

Subordinated Notes 

In November 2014, the Corporation issued $250 million of 10-year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount.

Finance Leases

Finance leases are used in conjunction with branch operations. See Note 18 for additional disclosure regarding the Corporation’s leases.

FHLB Advances

The Corporation prepaid $400 million in long-term FHLB advances during the first quarter of 2022 at no cost.