Short And Long-term Funding

3 Months Ended

Mar. 31, 2013

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

			March 31,		December 31,
			2013		2012
			($ in Thousands)
Short-Term Funding
Federal funds purchased		$	108,935	$	71,385
Securities sold under agreements to repurchase			621,920		679,070
	Federal funds purchased and securities sold under agreements to repurchase		730,855		750,455
Federal Home Loan Bank ("FHLB") advances			975,000		1,525,000
Commercial paper			63,697		51,484
	Other short-term funding		1,038,697		1,576,484
	Total short-term funding	$	1,769,552	$	2,326,939
Long-Term Funding
FHLB advances		$	300,364	$	400,375
Senior notes, at par			585,000		585,000
Subordinated debt, at par			25,821		25,821
Other long-term funding and capitalized costs			3,878		4,150
	Total long-term funding	$	915,063	$	1,015,346
Total short and long-term funding		$	2,684,615	$	3,342,285

Short-term funding:

The FHLB advances included in short-term funding are those with original contractual maturities of one year or less. 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.

Long-term funding:

FHLB advances:At March 31, 2013, the long-term FHLB advances had a weighted-average interest rate of 1.80%, compared to 1.79% at December 31, 2012.These advances all had fixed interest rates at both March 31, 2013 and December 31, 2012. The long-term FHLB advances include $300 million which will mature during the second quarter of 2013.

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 2011 senior note issuances mature on March 28, 2016 and have a fixed coupon interest rate of 5.125%.In September 2012, the Corporation issued $155 million of senior notes at a discount. The 2012 senior note issuance matures on March 12, 2014 and has a fixed coupon interest rate of 1.875%.

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, has a fixed coupon interest rate of 9.25%, and is callable beginning in September 2013. 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.