Short And Long-term Funding

9 Months Ended

Sep. 30, 2014

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) were as follows.

			September 30,		December 31,
			2014		2013
			($ in Thousands)
Short-Term Funding
Federal funds purchased		$	272,190	$	56,195
Securities sold under agreements to repurchase			493,451		419,247
	Federal funds purchased and securities sold under agreements to repurchase		765,641		475,442
FHLB advances			605,000		200,000
Commercial paper			59,539		65,484
	Other short-term funding		664,539		265,484
	Total short-term funding	$	1,430,180	$	740,926
Long-Term Funding
FHLB advances		$	2,500,268	$	2,500,297
Senior notes, at par			430,000		585,000
Other long-term funding and capitalized costs			1,279		1,970
	Total long-term funding	$	2,931,547	$	3,087,267
Total short and long-term funding		$	4,361,727	$	3,828,193

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.

Long-term funding:

FHLB Advances:Long-term FHLB advances had a weighted-average interest rate of 0.10% for both September 30, 2014 and December 31, 2013.During the fourth quarter of 2013, the Corporation executed $2.5 billion of five year, variable rate FHLB advances that can be repaid, at our option, without penalty. The FHLB advances are indexed to the FHLB discount note and reprice at varying intervals, including $1.0 billion repricing at four week intervals, $750 million repricing at 13 week intervals, and $750 million repricing daily. The advances offer flexible, low cost, long-term funding that improves the Corporation's liquidity profile.

2011 Senior Notes: In March 2011, the Corporation issued $300 million of senior notes due March 2016, and callable February 2016, with a 5.125% fixed coupon at a discount. In September 2011, the Corporation "re-opened" the offering and issued an additional $130 million of the same notes at a premium. The Corporation intends to refinance the 2011 Senior Notes prior to their maturity.

2012 Senior Notes:In September 2012, the Corporation issued $155 million of senior notes, due March 2014, and callable February 2014, at a discount. These notes were called and redeemed in February 2014.