SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2017

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Text Block]

NOTE 18 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase (repurchase agreements) consist of the following:


		December, 31
		2017		2016
	(Dollars in thousands)

	Shot-term fixed-rate repurchase agreement with a rate of 1.53%	$	100,000	$	-
	Long -term fixed-rate repurchase agreements, interest ranging from 1.96% to 2.26%
	(December 31, 2016: 1.96% to 2.83%) (1)(2)		200,000		300,000
		$	300,000	$	300,000

(1)	Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11.

(2)	As of December 31, 2017, includes $200 million with an average rate of 2.11% that lenders have the right to call before their contractual maturities at various dates beginning on February 6, 2018. Subsequent to December 31, 2017, no lender has exercised its call option on repurchase agreements.

The weighted-average interest rates on repurchase agreements as of December 31, 2017 and 2016 were 1.92% and 2.35%, respectively. Accrued interest payable on repurchase agreements amounted to $1.8 million and $1.9 million as of December 31, 2017 and 2016, respectively.

Repurchase agreements mature as follows:

		December 31, 2017
	(In thousands)

	Less than one month	$	100,000
	Over four to five years		200,000
	Total	$	300,000

The following securities were sold under agreements to repurchase:

		December 31, 2017
		Amortized				Approximate	Weighted
		Cost of				Fair Value	Average
		Underlying		Balance of		of Underlying	Interest Rate
Underlying Securities		Securities		Borrowing		Securities	of Security
(In thousands)

U.S. government-sponsored agencies	$	132,637	$	127,801	$	131,271		1.39	%
Mortgage-backed securities		222,325		172,199		218,852		2.29	%

Total	$	354,962	$	300,000	$	350,123

Accrued interest receivable	$	1,060



		December 31, 2016
		Amortized				Approximate	Weighted
		Cost of				Fair Value	Average
		Underlying		Balance of		of Underlying	Interest Rate
Underlying Securities		Securities		Borrowing		Securities	of Security
(In thousands)

U.S. government-sponsored agencies	$	126,205	$	123,175	$	125,417	1.30	%
Mortgage-backed securities		215,352		176,825		213,973	2.20	%

Total	$	341,557	$	300,000	$	339,390

Accrued interest receivable	$	1,400

The maximum aggregate balance outstanding at any month-end during 2017 was $300 million (2016 — $700 million). The average balance during 2017 was $300 million (2016 — $616.4 million). The weighted-average interest rate during 2017 and 2016 was 3.64% and 3.28%, respectively.

As of December 31, 2017 and 2016, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted.

Repurchase agreements as of December 31, 2017, grouped by counterparty, were as follows:


	(Dollars in thousands)			Weighted-Average
	Counterparty	Amount		Maturity (In Months)

	Citigroup Global Markets	$	100,000	1
	JP Morgan Chase		200,000	49
		$	300,000