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Borrowings and Related Interest

9 Months Ended

Sep. 30, 2020

Borrowings and Related Interest [Abstract]

Borrowings and Related Interest

NOTE 13— BORROWINGS AND RELATED INTEREST

Securities Sold under Agreements to Repurchase

At September 30, 2020, 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, 2020, Oriental did not have repurchase agreements outstanding because $140 million matured and were not renewed, and $50 million were terminated early during the nine-month period ended September 30, 2020.

The following table shows Oriental’s repurchase agreements, excluding accrued interest in the amount of $274 thousand at December 31, 2019:

		December 31,
		2019
	(In thousands)
Short-term fixed-rate repurchase agreements, interest ranging from 1.85% to 2.70% (December 31, 2019)		$	140,000
Long-term fixed-rate repurchase agreements, interest ranging from 1.85% to 2.86% (December 31, 2019)			50,000
Total assets sold under agreements to repurchase		$	190,000

Repurchase agreements’ maturities were as follows:

	December 31,
	2019
	(In thousands)
Less than 90 days	$	140,000
Over 90-days		50,000
Total	$	190,000

The following securities were sold under agreements to repurchase:



	December 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	$	204,225		$	190,000		$	204,068			2.98%
Total	$	204,225		$	190,000		$	204,068			2.98%

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 September 30, 2020 and December 31, 2019, these advances were secured by mortgage and commercial loans amounting to $1.186 billion and $1.060 billion, respectively. Also, at September 30, 2020 and December 31, 2019, Oriental had an additional borrowing capacity with the FHLB-NY of $992 million and $983 million, respectively. At September 30, 2020 and December 31, 2019, the weighted average remaining maturity of FHLB’s advances was 19.8 months and 22.7 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 September 30, 2020.

The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $97 thousand and $160 thousand at September 30, 2020 and December 31, 2019, respectively:


		September 30,			December 31
			2020			2019
			(In thousands)
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 0.36% (December 31, 2019 - 1.85% to 2.59%)		$	30,691		$	40,472
Long-term fixed-rate advances from FHLB, with a weighted average interest rate of 2.92% to 3.24% (December 31, 2019 - 2.92% to 3.24% )			35,755			37,377
		$	66,446		$	77,849

Advances from FHLB mature as follows:


		September 30,			December 31,
			2020			2019
		(In thousands)
Under 90 days		$	30,691		$	31,955
Over one to three years			26,725			8,517
Over three to five years			4,764			33,018
Over five years			4,266			4,359
		$	66,446		$	77,849

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, 2020 and December 31, 2019.