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ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) | 12 Months Ended
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Dec. 31, 2022
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) [Abstract] |
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) [Text Block] | NOTE 13 – ADVANCES FROM THE FEDERAL HOME LOAN BANK (“FHLB The following is a summary of the advances from the FHLB as of the indicated dates: December 31, December 31, 2022 2021 (In thousands) Short-term Fixed -rate advances from FHLB (1) $ 475,000 $ - Long-term Fixed -rate advances from FHLB (2) 200,000 200,000 $ 675,000 $ 200,000 (1) Weighted-average interest rate of 4.56 % as of December 31, 2022. (2) Weighted-average interest rate of 4.25 % and 2.16 % as of December 31, 2022 and 2021, respectively. Advances from FHLB mature as follows as of the indicated date: December 31, 2022 (In thousands) Within one month $ 350,000 Over one to three months 125,000 Over three to five years 200,000 Total $ 675,000 The $ 200.0 million in FHLB advances outstanding as of December 31, 2021 matured and were repaid during the third quarter of 2022. In addition, during the fourth quarter of 2022, the Corporation added $ 475.0 million of short-term FHLB advances and $ 200.0 million of long-term FHLB advances. The maximum aggregate balance of advances from the FHLB outstanding at any month-end during the years ended December 31, 2022 and 2021 was $ 675.0 million and $ 440.0 million, respectively. The total average balance of FHLB advances during 2022 was $ 179.5 million (2021 - $ 354.1 million). The Corporation receives advances and applies for the issuance of letters of credit from the FHLB under an Advances, Collateral Pledge, and Security Agreement (the “Collateral Agreement”), which requires the Corporation to maintain a minimum of qualifying mortgage collateral or Treasury or U.S. agencies MBS collateral, as applicable. The amount of collateral required for an advance incorporates a collateral discount or “haircut,” which is incorporated into the member’s pledge and determined by the FHLB. Haircut refers to the percentage by which an asset’s market value is reduced for the purpose of collateral levels. As of December 31, 2022 and 2021, the estimated value of specific mortgage loans pledged as collateral amounted to $ 1.3 billion and $ 1.4 billion, respectively, as computed by the FHLB for collateral purposes, which represents a haircut of 14 % and 17 % as of December 31, 2022 and 2021, respectively. The carrying value of such loans as of December 31, 2022 amounted to $ 1.8 billion (2021 - $ 1.8 billion). As of December 31, 2022, the estimated value of U.S. government-sponsored agencies’ obligations and U.S. agencies MBS pledged as collateral amounted to $ 238.1 million. As of December 31, 2022, the Corporation had additional capacity of approximately $ 644.2 million on this credit facility based on collateral pledged at the FHLB, adjusted by a haircut reflecting the perceived risk associated with the collateral. Advances may be repaid prior to maturity, in whole or in part, at the option of the borrower upon payment of any applicable fee specified in the contract governing such advance. In calculating the fee, due consideration is given to (i) all relevant factors, including, but not limited to, any and all applicable costs of repurchasing and/or prepaying any associated liabilities and/or hedges entered into with respect to the applicable advance; (ii) the financial characteristics, in their entirety, of the advance being prepaid; and (iii), in the case of adjustable-rate advances, the expected future earnings of the replacement borrowing as long as the replacement borrowing is at least equal to the original advance’s par value and the replacement borrowing’s tenor is at least equal to the remaining maturity of the prepaid advance.

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- Definition The entire disclosure for borrowing from the Federal Home Loan Bank, including: (i) general description; (ii) title and nature of obligation; (iii) interest rate; (iv) payment terms; (v) maturity dates by year; (vi) collateral requirements; (vii) restrictive covenants; (viii) priority; (ix) conversion or redemption features; (x) carrying value of assets pledged as collateral; (xi) combined aggregate maturities for next five years; (xii) unused or available balances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.13(a)) -URI https://asc.fasb.org/extlink&oid=126897435&loc=d3e534808-122878 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=123465755&loc=d3e1835-112601 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 45 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6479118&loc=d3e64650-112822 + Details
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