XML 30 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1

Borrowings

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Borrowings

NOTE 12 — BORROWINGS AND RELATED INTEREST

Securities Sold under Agreements to Repurchase

At September 30, 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 Oriental the same or similar securities at the maturity of these agreements. The purpose of these transactions is to provide financing for Oriental’s securities portfolio.

At September 30, 2017 and December 31, 2016, securities sold under agreements to repurchase (classified by counterparty), excluding accrued interest in the amount of $581 thousand and $1.5 million, respectively, were as follows:

	September 30,						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		-			-			70,010			74,538
JP Morgan Chase Bank NA		172,500			185,848			350,219			376,674
Credit Suisse Securities (USA) LLC		-			-			232,000			249,286
Federal Home Loan Bank		110,000			115,836			-			-
Total	$	282,500		$	301,684		$	652,229		$	700,498

The following table shows a summary of Oriental’s repurchase agreements and their terms, excluding accrued interest in the amount of $581 thousand, at September 30, 2017:

					Weighted-
		Borrowing			Average				Maturity
Year of Maturity		Balance			Coupon		Settlement Date		Date
		(In thousands)
2018			172,500		1.42%		12/10/2012		4/29/2018
2019			50,000		1.72%		3/2/2017		9/3/2019
2020			60,000		1.85%		3/2/2017		3/2/2020
		$	282,500		1.56%

A repurchase agreement in the original amount of $500 million with an original term of ten years was modified in February 2016 to partially terminate, before maturity, $268.0 million 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. During the second quarter of 2017, repurchase agreements in the original amounts of $25.0 million and $75.0 million, respectively, with original terms of June 2019 and December 2019, respectively, were terminated before maturity at a cost of $80 thousand included as a loss on early extinguishment of debt in consolidated statement of operations

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 September 30, 2017 and December 31, 2016. There was no cash collateral at September 30, 2017 and December 31, 2016.

	September 30, 2017
							Market Value of Underlying Collateral
				Weighted			FNMA and
	Repurchase			Average			FHLMC
	Liability			Rate			Certificates			Total
	(Dollars in thousands)
Over 90 days		282,500			1.56%			301,684			301,684
Total	$	282,500			1.56%		$	301,684		$	301,684

	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 Oriental is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At September 30, 2017 and December 31, 2016, these advances were secured by mortgage and commercial loans amounting to $1.3 billion and $1.4 billion, respectively. Also, at September 30, 2017 and December 31, 2016, Oriental had an additional borrowing capacity with the FHLB-NY of $849.5 million and $1.2 billion, respectively. At September 30, 2017 and December 31, 2016, the weighted average remaining maturity of FHLB’s advances was 5.1 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 September 30, 2017.

The following table shows a summary of these advances and their terms, excluding accrued interest in the amount of $312 thousand, at September 30, 2017

					Weighted-
			Borrowing		Average				Maturity
Year of Maturity			Balance		Coupon		Settlement Date		Date
			(In thousands)
2017		$	35,487		1.29%		9/1/2017		10/2/2017
			35,487
2018			30,000		2.19%		1/16/2013		1/16/2018
			25,000		2.18%		1/16/2013		1/16/2018
			55,000
2020			9,292		2.59%		7/19/2013		7/20/2020
		$	99,779		1.90%

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 September 30, 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