Short and Long-Term Funding

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Short and Long-Term Funding

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.

	March 31, 2015			December 31, 2014
	($ in Thousands)
Short-Term Funding
Federal funds purchased	$	58,700		$	109,770
Securities sold under agreements to repurchase	528,572			384,221
Federal funds purchased and securities sold under agreements to repurchase	$	587,272		$	493,991
FHLB advances	—			500,000
Commercial paper	75,265			74,297
Other short-term funding	75,265			574,297
Total short-term funding	$	662,537		$	1,068,288
Long-Term Funding
FHLB advances	$	2,500,251		$	3,000,260
Senior notes, at par	680,000			680,000
Subordinated notes, at par	250,000			250,000
Other long-term funding and capitalized costs	(326		)	(143		)
Total long-term funding	3,429,925			3,930,117
Total short and long-term funding	$	4,092,462		$	4,998,405

Short-term funding:

The securities sold under agreements to repurchase represent short-term funding which is collateralized by securities of the U.S. Government or its agencies. The FHLB advances included in short-term funding are those with original contractual maturities of one year or less. During the first quarter of 2015, the Corporation repaid $500 million of short-term FHLB advances.

Long-term funding:

FHLB Advances: Long-term FHLB advances had a weighted-average interest rate of 0.12% for March 31, 2015 compared to 0.11% at December 31, 2014. The FHLB advances are indexed to the FHLB discount note and reprice at varying intervals. The advances offer flexible, low cost, long-term funding that improves the Corporation’s liquidity profile. During the first quarter of 2015, the Corporation early redeemed $500 million of long-term FHLB advances.

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.

2014 Senior Notes: In November 2014, the Corporation issued $250 million of senior notes, due November 2019, and callable October 2019. The senior notes have a fixed coupon interest rate of 2.75% and were issued at a discount.

2014 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.