The 30 billion is used to fund their lending, along with $25B of deposits, and 1/2 of the 30B comes from FHLB and half is repurchase agreements. The interest on most of it is under 2%. This borrowing does not overly concern me because their overal NPAs are down around 1.63%.
From pg 25 of the most recent 10Q:
"Total liabilities increased $4.40 billion, or 8.9%, to $53.61 billion at September 30, 2009 from $49.21 billion at December 31, 2008. The increase in total liabilities primarily reflected a $4.65 billion increase in deposits, partially offset by a $200.0 million decrease in borrowed funds. Total deposits increased $4.65 billion, or 25.2%, to $23.11 billion at September 30, 2009 as compared to $18.46 billion at December 31, 2008. The increase in total deposits included a $2.39 billion increase in our time deposits, a $1.84 billion increase in our money market checking accounts and a $337.6 million increase in our interest-bearing transaction accounts and savings accounts. The increases in our deposits reflect our strategy to expand our branch network and to grow deposits in our existing branches by offering competitive rates. At September 30, 2009 we had 131 branches as compared to 127 at December 31, 2008 and 125 at September 30, 2008. We also began accepting deposits through our internet banking service in December 2008, which had $183.9 million in deposits at September 30, 2009. Borrowings amounted to $30.03 billion at September 30, 2009 as compared to $30.23 billion at December 31, 2008. The decrease in borrowed funds was the result of repayments of $950.0 million with a weighted average rate of 1.63%, largely offset by $750.0 million of new borrowings at a weighted-average rate of 1.69%. During the first nine months of 2009, we modified $650.0 million of borrowings to extend the call dates of the borrowings by between two and four years. Borrowed funds at September 30, 2009 were comprised of $14.93 billion of FHLB advances and $15.10 billion of securities sold under agreements to repurchase. Substantially all of our borrowed funds are callable at the discretion of the lender after an initial non-call period. As a result, if interest rates were to decrease, or remain consistent with current rates, these borrowings would probably not be called and our average cost of existing borrowings would not decrease even as market interest rates decrease. Conversely, if interest rates increase above the market interest rate for similar borrowings, these borrowings would likely be called at their next call date and our cost to replace these borrowings would increase. These call features are generally quarterly, after an initial non-call period of one to five years from the date of borrowing. Our callable borrowings typically have a final maturity of ten years and may not be called for an initial period of one to five years. We have used this type of borrowing primarily to fund our loan growth because these borrowings have a longer duration than shorter-term non-callable borrowings and have a lower cost than a non-callable borrowing with a maturity date similar to the initial call date of the callable borrowing. However, during the first nine months of 2009, we have been able to fund our asset growth with deposit inflows. We anticipate that we will be able to continue to use deposit growth to fund our asset growth, however, we may use borrowings as a supplemental funding source if deposit growth decreases. In order to fund our growth and provide for our liquidity we may borrow a combination of short-term borrowings with maturities of three to six months and longer term fixed-maturity borrowings with terms of two to five years. Our new borrowings during the first nine months of 2009 consisted of non-callable borrowings of $400.0 million with maturities of one to three months and $350.0 million of non-callable borrowings with maturities of two to three years. "
I'm not sure you know what you are talking about. If you are referring to Liability .... that is DEPOSITS on a banking Balance Sheet. You better explain what you are talking about in more finite terms.