XML 28 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1

Borrowings

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Borrowings

NOTE 10 — BORROWINGS AND RELATED INTEREST

Securities Sold under Agreements to Repurchase

At March 31, 2017, securities underlying agreements to repurchase were delivered to, and are being held by, the counterparties with whom the repurchase agreements were transacted. The counterparties have agreed to resell to the Company the same or similar securities at the maturity of these agreements.

At March 31, 2017 and December 31, 2016, securities sold under agreements to repurchase (classified by counterparty), excluding accrued interest in the amount of $739 thousand and $1.5 million, respectively, were as follows:

	March 31,						December 31,
	2017						2016
				Fair Value of						Fair Value of
	Borrowing			Underlying			Borrowing			Underlying
	Balance			Collateral			Balance			Collateral
	(In thousands)
PR Cash and Money Market Fund	$	62,480		$	65,704		$	70,010		$	74,538
JP Morgan Chase Bank NA		325,960			350,397			350,219			376,674
Federal Home Loan Bank		142,000			150,271			-			-
Credit Suisse Securities (USA) LLC		-			-			232,000			249,286
Total	$	530,440		$	566,372		$	652,229		$	700,498

The following table shows a summary of the Company’s repurchase agreements and their terms, excluding accrued interest in the amount of $739 thousand, at March 31, 2017:

					Weighted-
		Borrowing			Average				Maturity
Year of Maturity		Balance			Coupon		Settlement Date		Date
		(In thousands)
2017		$	33,460		1.20%		3/21/2017		4/4/2017
			62,480		1.21%		3/30/2017		4/3/2017
			32,000		0.99%		3/31/2017		4/7/2017
2018			192,500		1.42%		12/10/2012		4/29/2018
2019			25,000		1.52%		12/9/2016		6/9/2019
			75,000		1.46%		12/9/2016		12/9/2019
			50,000		1.72%		3/2/2017		9/3/2019
2020			60,000		1.85%		3/2/2017		3/2/2020
		$	530,440		1.44%

All the repurchase agreements referred above with maturity up to the date of this report were renewed by the Company.

A repurchase agreement in the original amount of $500 million with an original term of ten years was modified in February 2016 to terminate, before maturity, $268.0 million of this repurchase agreement at a cost of $12.0 million, included as a loss on early extinguishment of debt in the consolidated statements of operations. The remaining balance of this repurchase agreement of $232.0 million matured on March 2, 2017.

The following table presents the repurchase liability associated with the repurchase agreement transactions (excluding accrued interest) by maturity. Also, it includes the carrying value and approximate market value of collateral (excluding accrued interest) at March 31, 2017 and December 31, 2016. There was no cash collateral at March 31, 2017 and December 31, 2016.

	March 31, 2017
							Market Value of Underlying Collateral
				Weighted			FNMA and							US Treasury
	Repurchase			Average			FHLMC			GNMA				Treasury
	Liability			Rate			Certificates			Certificates				Notes		Total
	(Dollars in thousands)
Less than 90 days	$	127,940			1.15%		$	33,776		$	65,704		$	34,190		$	133,670
Over 90 days		402,500			1.54%			432,610			92			-			432,702
Total	$	530,440			1.44%		$	466,386		$	65,796		$	34,190		$	566,372

	December 31, 2016
							Market Value of Underlying Collateral
				Weighted			FNMA and							US Treasury
	Repurchase			Average			FHLMC			GNMA				Treasury
	Liability			Rate			Certificates			Certificates				Notes		Total
	(Dollars in thousands)
Less than 90 days	$	349,729		$	3.35%			248,288		$	75,536		$	48,954		$	372,778
Over 90 days		302,500			1.44%			327,627			93			-			327,720
Total	$	652,229			2.47%		$	575,915		$	75,629			48,954			700,498

Advances from the Federal Home Loan Bank of New York

Advances are received from the Federal Home Loan Bank of New York (the “FHLB-NY”) under an agreement whereby the Company is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At March 31, 2017 and December 31, 2016, these advances were secured by mortgage and commercial loans amounting to $1.4 billion at both periods. Also, at March 31, 2017 and December 31, 2016, the Company had an additional borrowing capacity with the FHLB-NY of $1.0 billion and $1.2 billion, respectively. At March 31, 2017 and December 31, 2016, the weighted average remaining maturity of FHLB’s advances was 8.6 months and 10.6 months, respectively. The original terms of these advances range between one month and seven years, and the FHLB-NY does not have the right to exercise put options at par on any advances outstanding as of March 31, 2017.

The following table shows a summary of these advances and their terms, excluding accrued interest in the amount of $296 thousand, at March 31, 2017

					Weighted-
			Borrowing		Average				Maturity
Year of Maturity			Balance		Coupon		Settlement Date		Date
			(In thousands)
2017		$	36,221		0.80%		3/1/2017		4/3/2017
			3,972		1.24%		4/3/2012		4/3/2017
			40,193
2018			30,000		2.19%		1/16/2013		1/16/2018
			25,000		2.18%		1/16/2013		1/16/2018
			55,000
2020			9,459		2.59%		7/19/2013		7/20/2020
		$	104,652		1.71%

All of the advances referred to above with maturity dates up to the date of this report were renewed as one-month short-term advances.

Subordinated Capital Notes

Subordinated capital notes amounted to $36.1 million at March 31, 2017 and December 31, 2016, for both periods.

X

- References

No definition available.

+ Details

Name:	us-gaap_DebtDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.19,20,22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

+ Details

Name:	us-gaap_DebtDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration