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Borrowings | 9 Months Ended
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Sep. 30, 2018
Disclosure Text Block |
Borrowings | Note 17 – Borrowings The following table presents the balances of a ssets sold under agreements to repurchase at September 30, 2018 and December 31, 2017.
(In thousands) | September 30, 2018 |  | December 31, 2017
Assets sold under agreements to repurchase | $ | 300,116 |  | $ | 390,921
Total assets sold under agreements to repurchase | $ | 300,116 |  | $ | 390,921
The Corporation’s repurchase transactions are overcollateralized with the securities detailed in the table below. The Corporation’s r epurchase a greements have a right of set-off with the respective counterparty under the supplemental terms of the m aster r epurchase a greements. In an event of default each party has a right of set-off against the other party for amounts owed in the related agreement and any other amount or obligation owed in respect of any other agreement or transaction between them. The fo llowing table presents information related to the Corporation’s repurchase transactions accounted for as secured borrowings that are collateralized with debt securities available-for-sale, other assets held-for-trading purposes or which have been obtained under agreements to resell. It is the Corporation’s policy to maintain effective control over assets sold under agreements to repurchase; accordingly, such securities continue to be carried on the Consolidated Statements of Financial Condition. Repurchas e agreements accounted for as secured borrowings
|  | September 30, 2018 | December 31, 2017
|  |  | Repurchase |  | Repurchase |
(In thousands) |  | liability |  | liability |
U.S. Treasury securities |  |  |  |  |
| Within 30 days | $ | 93,129 | $ | 148,516 |
| After 30 to 90 days |  | 19,831 |  | 87,357 |
| After 90 days |  | 159,292 |  | 43,500 |
Total U.S. Treasury securities |  | 272,252 |  | 279,373 |
Obligations of U.S. government sponsored entities |  |  |  |  |
| Within 30 days |  | - |  | 30,656 |
| After 30 to 90 days |  | - |  | 19,463 |
| After 90 days |  | 6,055 |  | 15,937 |
Total obligations of U.S. government sponsored entities |  | 6,055 |  | 66,056 |
Mortgage-backed securities |  |  |  |  |
| Within 30 days |  | 12,228 |  | 31,383 |
Total mortgage-backed securities |  | 12,228 |  | 31,383 |
Collateralized mortgage obligations |  |  |  |  |
| Within 30 days |  | 9,581 |  | 14,109 |
Total collateralized mortgage obligations |  | 9,581 |  | 14,109 |
Total | $ | 300,116 | $ | 390,921 |
R epurchase agreements in this portfolio are generally short-term, often overnight. As such our risk is very limited. We manage the liquidity risks arising from secured funding by sourcing funding globally from a diverse group of counterparties, providing a range of securities collateral and pursuing longer durations, when appropriate. The following table presents information related to the Corporation’s other short-term borrowings for the periods ended September 30, 2018 and December 31, 2017.
(In thousands) | September 30, 2018 |  | December 31, 2017
Advances with the FHLB | $ | - |  | $ | 95,000
Others |  | 1,200 |  |  | 1,208
Total other short-term borrowings | $ | 1,200 |  | $ | 96,208
Note: Refer to the Corporation's 2017 Form 10-K for rates information at December 31, 2017.
During the quarter ended September 30, 2018, Popular North America, Inc. (“PNA”), a wholly-owned subsidiary of the Corporation, redeemed all outstanding capital securities issued by BanPonce Trust I (the “Trust”), a statutory trust established by PNA, along with the common securities issued by the Trust, which resulted in the concurrent extinguishment of the related junior subordinated debentures with an aggregate book value of $55 million. Refer to Note 18 for additional information on the redemption of these trust preferred securities. Also, during the quarter ended September 30, 2018, the Corporation issued an aggregate of $300 million principal amount of its 6.125% senior notes due 2023 and recorded debt issuance costs of $6.3 million. On October 15, 2018, t he Corporation use d the net proceeds, together with available ca sh, to redeem $450 million of its o utstanding 7.00% senior notes due 2019. The following table presents the composition of notes payable at September 30, 2018 and December 31, 2017.
(In thousands) | September 30, 2018 |  | December 31, 2017
Advances with the FHLB with maturities ranging from 2018 through 2029 paying interest at |  |  |  |  |
| monthly fixed rates ranging from 0.89% to 4.19 % | $ | 567,031 |  | $ | 572,307
Advances with the FHLB with maturing in 2019 paying interest monthly |  |  |  |  |
| at a floating rate of 0.34% over the 1 month LIBOR |  | 13,000 |  |  | 34,164
Advances with the FHLB with maturing in 2019 paying interest quarterly |  |  |  |  |
| at a floating rate from 0.12% to 0.24% over the 3 month LIBOR |  | 19,724 |  |  | 25,019
Unsecured senior debt securities with maturities ranging from 2019 through 2023 paying interest |  |  |  |  |
| semiannually at fixed rates ranging from of 6.125% to 7.00%, net of debt issuance costs of $7,841 |  | 742,159 |  |  | 446,873
Junior subordinated deferrable interest debentures (related to trust preferred securities) |  |  |  |  |
| with maturities ranging from 2033 to 2034 with fixed interest rates ranging from |  |  |  |  |
| 6.125% to 6.7%, net of debt issuance costs of $429 |  | 384,869 |  |  | 439,351
Others |  | 17,904 |  |  | 18,642
Total notes payable | $ | 1,744,687 |  | $ | 1,536,356
Note: Refer to the Corporation’s 2017 Form 10-K for rates information at December 31, 2017. A breakdown of borrowings by contractual maturities at September 30, 2018 is included in the table below.
| Assets sold under |  | Short-term |  |  |
(In thousands) | agreements to repurchase |  | borrowings | Notes payable |  | Total
2018 | $ | 134,769 | $ | 1,200 | $ | 83,103 |  | $ | 219,072
2019 |  | 165,347 |  | - |  | 650,159 | [1] |  | 815,506
2020 |  | - |  | - |  | 111,960 |  |  | 111,960
2021 |  | - |  | - |  | 21,877 |  |  | 21,877
2022 |  | - |  | - |  | 105,175 |  |  | 105,175
Later years |  | - |  | - |  | 772,413 |  |  | 772,413
Total borrowings | $ | 300,116 | $ | 1,200 | $ | 1,744,687 |  | $ | 2,046,003
[1] On October 15, 2018, the Corporation redeemed $450 million principal amount of its senior notes due on 2019.
At September 30, 2018 and December 31, 2017, the Corporation had FHLB borrowing facilities whereby the Corporation could borrow up to $3.4 billion and $3.9 billion, respectively, of which $600 million and $726 million, respectively, were used. In addition, at September 30, 2018 and December 31, 2017, the Corporation had placed $1.1 b illion and $260 million, respectively, of the available FHLB credit facility as collateral for a municipal letter of credit to secure deposits. The FHLB borrowing facilities are collateralized with loans held-in-portfolio, and do not have restrictive covenants or callable features. Also, at September 30, 2018, the Corporation has a borrowing facility at the discount window of the Federal Reserve Bank of New York amounting to $1.2 billion (2017 - $1.1 billion), which remained unused at September 30, 2018 and December 31, 2017. The fa cility is a collateralized source of credit that is highly reliable even under difficult market conditions.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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