Borrowings and Related Interest

3 Months Ended

Mar. 31, 2019

NOTE 10— BORROWINGS AND RELATED INTEREST

Securities Sold under Agreements to Repurchase

At March 31, 2019, 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.

The following table shows Oriental’s repurchase agreements, excluding accrued interest in the amount of $609 thousand and $785 thousand at March 31, 2019 and December 31, 2018, respectively:

	March 31,		December 31,
	2019		2018
	(In thousands)
Short-term fixed-rate repurchase agreements, interest ranging from 2.45% to 2.95% (December 31, 2018 2.45% to 2.95%)	$	190,957	$	214,723
Long-term fixed-rate repurchase agreements, interest ranging from 1.72% to 2.86% (December 31, 2018; 1.72% to 2.86%)		240,000		240,000
Total assets sold under agreements to repurchase	$	430,957	$	454,723

Repurchase agreements mature as follows:

	March 31,		December 31,
	2019		2018
	(In thousands)
Less than 90 days	$	190,957	$	214,723
Over 90-days		240,000		240,000
Total	$	430,957	$	454,723

The following securities were sold under agreements to repurchase:

	March 31, 2019
	Amortized				Approximate		Weighted
	Cost of				Fair Value		Average
	Underlying		Balance of		of Underlying		Interest Rate
Underlying Securities	Securities		Borrowing		Securities		of Security
	(Dollars in thousands)
FNMA and FHLMC Certificates	$	464,669	$	430,957	$	461,092		3.03%
Total	$	464,669	$	430,957	$	461,092		3.03%


	December 31, 2018
	Amortized				Approximate		Weighted
	Cost of				Fair Value		Average
	Underlying		Balance of		of Underlying		Interest Rate
Underlying Securities	Securities		Borrowing		Securities		of Security
	(Dollars in thousands)
FNMA and FHLMC Certificates	$	496,814	$	454,723	$	487,181		3.01%
Total	$	496,814	$	454,723	$	487,181		3.01%

Advances from the Federal Home Loan Bank of New York

Advances are received from 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 March 31, 2019 and December 31, 2018, these advances were secured by mortgage and commercial loans amounting to $871.2 million and $847.3 million, respectively. Also, at March 31, 2019 and December 31, 2018, Oriental had an additional borrowing capacity with the FHLB-NY of $790.3 million and $762.0 million, respectively. At March 31, 2019 and December 31, 2018, the weighted average remaining maturity of FHLB’s advances was 28.0 months and 26.6 months, respectively. The original terms of these advances range between one day 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, 2019.

The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $192 thousand and $176 thousand, at March 31, 2019 and December 31, 2018, respectively:


	March 31		December 31
		2019		2018
		(In thousands)
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 2.67% (December 31, 2018 - 2.61%)	$	33,175	$	33,572
Long-term fixed-rate advances from FHLB, with a weighted average interest rate of 2.90% (December 31, 2018 - 2.89%)		47,744		43,872
	$	80,919	$	77,444

Advances from FHLB mature as follows:


		March 31
		2019
		(In thousands)
Under 90 days	$	33,175
Over one to three years		8,780
Over three to five years		34,514
Over five years		4,450
	$	80,919

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, 2019 and December 31, 2018.