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Resticted Cash
 3 Months Ended
Mar. 31, 2014
Restricted Cash And Investments Abstract  
Resticted Cash Disclosure

NOTE 2 – RESTRICTED CASH

 

The following table includes the composition of the restricted cash:

 March 31, December 31,
 2014 2013
 (In thousands)
Deposits pledged as collateral to other financial institutions to secure:     
Securities sold under agreements to repurchase$ - $ 67,029
Derivatives  2,980   2,980
Obligations under agreement of loans sold with recourse  12,190   12,190
 $ 15,170 $ 82,199

The Company delivers cash as collateral to meet margin calls for some long term securities sold under agreements to repurchase. An alternative to cash delivery is entering into securities purchased under agreements to resell and use the securities collateral received as collateral to be delivered. At December 31, 2013, the possibility of entering into securities purchased under agreements to resell to receive securities collateral and then deliver it to counterparties securities sold under agreements to repurchase was very limited for market reasons. Therefore, at December 31, 2013, the Company had $67.0 million in cash collateral delivered. At March 31, 2014, the Company did not have cash collateral delivered.

 

As part of the BBVAPR Acquisition, the Company assumed a contract with FNMA which required collateral to guarantee the repurchase, if necessary, of loans sold with recourse. At March 31, 2014 and December 31, 2013, the Company delivered cash amounting to $12.2 million.