Short And Long-term Funding

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Short and long-term funding

NOTE 8: Short and Long-Term Funding

The components of short-term funding (funding with original contractual maturities less than one year) and long-term funding (funding with original contractual maturities greater than one year) was as follows.

			June 30,		December 31,
			2012		2011
			($ in Thousands)
Short-Term Funding
Federal funds purchased		$	41,170	$	154,730
Securities sold under agreements to repurchase			1,212,100		1,359,755
Federal Home Loan Bank ("FHLB") advances			1,400,000		1,000,000
	Total short-term funding	$	2,653,270	$	2,514,485
Long-Term Funding
FHLB advances		$	500,398	$	500,476
Senior notes, at par			430,000		430,000
Subordinated debt, at par			25,821		25,821
Junior subordinated debentures, at par			185,567		211,340
Other long-term funding and capitalized costs			8,943		9,434
	Total long-term funding	$	1,150,729	$	1,177,071
Total short and long-term funding		$	3,803,999	$	3,691,556

Short-term funding:The FHLB advances included in short-term funding are those with original contractual maturities of less than one year. The securities sold under agreements to repurchase represent short-term funding which is collateralized by securities of the U.S. Government or its agencies and mature daily.

FHLB advances: At bothJune 30, 2012, and December 31, 2011, long-term advances from the FHLB had maturities through 2020 and had weighted-average interest rates of 1.79%. These advances all had fixed contractual rates at both June30, 2012, and December 31, 2011.

Senior notes: In March 2011, the Corporation issued $300 million of senior notes at a discount. In September 2011, the Corporation issued an additional $130 million of senior notes at a premium. The senior notes mature on March 28, 2016 and have a fixed coupon interest rate of 5.125%.

Subordinated debt: In September 2008, the Corporation issued $26 million of 10-year subordinated debt with a 5-year no-call provision. The subordinated debt was issued at a discount, and has a fixed coupon interest rate of 9.25%. Subordinated debt qualifies under the risk-based capital guidelines as Tier 2 supplementary capital for regulatory purposes, and is discounted in accordance with regulations when the debt has five years or less remaining to maturity.

Junior subordinated debentures:As of June 30, 2012, the Corporation owned 100% of the common securities of three trusts: ASBC Capital I, SFSC Capital I, and SFSC Capital II (the “Trusts”). The Trusts were formed for purposes of issuing trust preferred securities to third-party investors and investing the proceeds from the issuance of the trust preferred securities and common securities solely in junior subordinated debentures issued by the Corporation (or assumed by the Corporation in connection with an acquisition). The junior subordinated debentures are the sole assets of the Trusts. In the consolidated balance sheets, the junior subordinated debentures issued by the Corporation to the Trusts are reported as long-term funding and the common securities of the Trusts, all of which are owned by the Corporation, are included in other assets.

The following table provides a summary of the Corporation's junior subordinated debentures as of June 30, 2012 and December 31, 2011. The Corporation redeemed $26 million of the ASBC Capital I junior subordinated debentures during the second quarter of 2012.

	Related Trust	Trust	Junior				Earliest
	Common	Preferred	Subordinated	Rate	Contractual	Maturity	Redemption
($ in Thousands)	Securities	Securities	Debentures, at par	Structure	Rate	Date	Date
June 30, 2012:
ASBC Capital I	$ 4,639	$ 150,000	$ 154,639	Fixed	7.625%	06/2032	05/2007
SFSC Capital I	464	15,000	15,464	L+3.45	3.920%	11/2032	Quarterly
SFSC Capital II	464	15,000	15,464	L+2.80	3.270%	04/2034	Quarterly
Total	$ 5,567	$ 180,000	$ 185,567
December 31, 2011:
ASBC Capital I	$ 5,412	$ 175,000	$ 180,412	Fixed	7.625%	06/2032	05/2007
SFSC Capital I	464	15,000	15,464	L+3.45	3.910%	11/2032	Quarterly
SFSC Capital II	464	15,000	15,464	L+2.80	3.230%	04/2034	Quarterly
Total	$ 6,340	$ 205,000	$ 211,340