XML 31 R12.htm IDEA: XBRL DOCUMENT
v3.20.4

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2020
Investment Securities [Abstract] |
Investment Securities | NOTE 4 – INVESTMENT SECURITIES Money Market Investments Oriental considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less at the date of acquisition. At December 31, 2020 and 2019, money market instruments included as part of cash and cash equivalents amounted to $11.9 million and $6.8 million, respectively. Investment Securities The amortized cost, gross unrealized gains and losses, fair value, and weighted average yield of the securities owned by Oriental at December 31, 2020 and 2019 were as follows:
| December 31, 2020
|  |  | Gross |  | Gross |  |  |  | Weighted
| Amortized |  | Unrealized |  | Unrealized |  | Fair |  | Average
| Cost |  | Gains |  | Losses |  | Value |  | Yield
| (In thousands)
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 206,195 |  | $ | 4,786 |  | $ | 32 |  | $ | 210,949 |  | 1.78%
GNMA certificates |  | 174,472 |  |  | 8,478 |  |  | 178 |  |  | 182,772 |  | 2.21%
CMOs issued by US government-sponsored agencies |  | 38,309 |  |  | 905 |  |  | - |  |  | 39,214 |  | 1.96%
Total mortgage-backed securities |  | 418,976 |  |  | 14,169 |  |  | 210 |  |  | 432,935 |  | 1.97%
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | 10,740 |  |  | 243 |  |  | - |  |  | 10,983 |  | 1.49%
Obligations of US government-sponsored agencies |  | 1,585 |  |  | 21 |  |  | - |  |  | 1,606 |  | 1.39%
Other debt securities |  | 875 |  |  | 39 |  |  | - |  |  | 914 |  | 2.31%
Total investment securities |  | 13,200 |  |  | 303 |  |  | - |  |  | 13,503 |  | 1.53%
Total securities available for sale | $ | 432,176 |  | $ | 14,472 |  | $ | 210 |  | $ | 446,438 |  | 1.96%
| December 31, 2019
|  |  | Gross |  | Gross |  |  |  | Weighted
| Amortized |  | Unrealized |  | Unrealized |  | Fair |  | Average
| Cost |  | Gains |  | Losses |  | Value |  | Yield
| (In thousands)
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 403,227 |  | $ | 846 |  | $ | 1,417 |  | $ | 402,656 |  | 2.00%
GNMA certificates |  | 215,755 |  |  | 718 |  |  | 4 |  |  | 216,469 |  | 2.33%
CMOs issued by US government-sponsored agencies |  | 55,235 |  |  | 16 |  |  | 490 |  |  | 54,761 |  | 1.97%
Total mortgage-backed securities |  | 674,217 |  |  | 1,580 |  |  | 1,911 |  |  | 673,886 |  | 2.11%
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | 397,183 |  |  | - |  |  | - |  |  | 397,183 |  | 1.60%
Obligations of US government-sponsored agencies |  | 1,967 |  |  | - |  |  | 6 |  |  | 1,961 |  | 1.38%
Other debt securities |  | 1,108 |  |  | 31 |  |  | - |  |  | 1,139 |  | 3.00%
Total investment securities |  | 400,258 |  |  | 31 |  |  | 6 |  |  | 400,283 |  | 1.60%
Total securities available-for-sale | $ | 1,074,475 |  | $ | 1,611 |  | $ | 1,917 |  | $ | 1,074,169 |  | 1.92%
Effective January 1, 2020, Oriental adopted the new accounting standard for credit losses that requires evaluation of available-for-sale debt securities for any expected losses with recognition of an allowance for credit losses, when applicable. For more information, see Note 1 – Significant Accounting Policies. At December 31, 2020, all securities held by Oriental are issued by U.S. government entities and agencies that have a zero-credit loss assumption.The amortized cost and fair value of Oriental’s investment securities at December 31, 2020, by contractual maturity, are shown in the next table. Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| December 31, 2020
| Available-for-sale
| Amortized Cost |  | Fair Value
| (In thousands)
Mortgage-backed securities |  |  |  |  |
Due less than one year |  |  |  |  |
FNMA and FHLMC certificates | $ | 348 |  | $ | 364
Total due in less than one year |  | 348 |  |  | 364
Due from 1 to 5 years |  |  |  |  |
GNMA certificates |  | 469 |  |  | 472
Total due from 1 to 5 years |  | 469 |  |  | 472
Due after 5 to 10 years |  |  |  |  |
CMOs issued by US government-sponsored agencies | $ | 32,220 |  | $ | 33,013
FNMA and FHLMC certificates |  | 96,902 |  | $ | 100,643
GNMA certificates |  | 58,615 |  | $ | 60,081
Total due after 5 to 10 years |  | 187,737 |  |  | 193,737
Due after 10 years |  |  |  |  |
FNMA and FHLMC certificates | $ | 108,945 |  | $ | 109,942
GNMA certificates |  | 115,388 |  | $ | 122,219
CMOs issued by US government-sponsored agencies |  | 6,089 |  | $ | 6,201
Total due after 10 years |  | 230,422 |  |  | 238,362
Total mortgage-backed securities |  | 418,976 |  |  | 432,935
Investment securities |  |  |  |  |
Due less than one year |  |  |  |  |
US Treasury securities | $ | 735 |  | $ | 735
Other debt securities |  | 251 |  | $ | 251
Total due in less than one year |  | 986 |  |  | 986
Due from 1 to 5 years |  |  |  |  |
Obligations of US government-sponsored agencies | $ | 1,585 |  | $ | 1,606
US Treasury securities |  | 10,005 |  | $ | 10,248
Total due from 1 to 5 years |  | 11,590 |  |  | 11,854
Due from 5 to 10 years |  |  |  |  |
Other debt securities |  | 624 |  |  | 663
Total due after 5 to 10 years |  | 624 |  |  | 663
Total investment securities |  | 13,200 |  |  | 13,503
Total | $ | 432,176 |  | $ | 446,438
During the year ended December 31, 2020, Oriental sold $316.3 million available-for-sale mortgage-backed securities and recognized a $4.7 million gain in the sale. During the year ended December 31, 2019, Oriental sold $672.2 million available-for-sale mortgage-backed securities, and recognized an $8.3 million gain in the sale. During the year ended December 31, 2018, Oriental sold $17.8 million available-for-sale GNMA certificates from its recurring mortgage loan origination and securitization activities. These sales did not realize any gains or losses during such period. During the years ended December 31, 2020, 2019, and 2018, Oriental retained securitized GNMA pools totaling $90.1 million, $62.8 million, and $56.8 million amortized cost, respectively, at a yield of 2.48%, 3.23%, and 3.93%, from its own originations. During the year ended December 31, 2019, Oriental completed the Scotiabank PR & USVI Acquisition recognizing available-for-sale securities amounting to $574.6 million with an average yield of 1.79% and an average duration of 1.6 years. This portfolio was comprised of US treasury notes, agency mortgage-backed-securities and agency CMOs.
| Year Ended December 31, 2020
|  |  | Book Value |  |  |  |
Description | Sale Price |  | at Sale |  | Gross Gains |  | Gross Losses
| (In thousands)
Sale of securities available-for-sale |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 229,571 |  | $ | 227,213 |  | $ | 2,358 |  | $ | -
GNMA certificates |  | 91,413 |  |  | 89,043 |  |  | 2,370 |  |  | -
Total | $ | 320,984 |  | $ | 316,256 |  | $ | 4,728 |  | $ | -
| Year Ended December 31, 2019
|  |  | Book Value |  |  |  |
Description | Sale Price |  | at Sale |  | Gross Gains |  | Gross Losses
| (In thousands)
Sale of securities available-for-sale |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 451,081 |  | $ | 447,305 |  | $ | 3,776 |  | $ | -
GNMA certificates |  | 229,385 |  |  | 224,887 |  |  | 4,498 |  |  | -
Total | $ | 680,466 |  | $ | 672,192 |  | $ | 8,274 |  | $ | -
| Year Ended December 31, 2018
|  |  | Book Value |  |  |  |
Description | Sale Price |  | at Sale |  | Gross Gains |  | Gross Losses
| (In thousands)
Sale of securities available-for-sale |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |
GNMA certificates |  | 17,837 |  |  | 17,837 |  |  | - |  |  | -
Total mortgage-backed securities | $ | 17,837 |  | $ | 17,837 |  | $ | - |  | $ | -
The following table show Oriental’s gross unrealized losses and fair value of investment securities available-for-sale at December 31, 2020 and 2019, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
| December 31, 2020
| 12 months or more
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
CMOs issued by US Government-sponsored agencies | $ | - |  | $ | - |  | $ | -
FNMA and FHLMC certificates |  | - |  |  | - |  |  | -
Obligations of US Government and sponsored agencies |  | - |  |  | - |  |  | -
GNMA certificates |  | - |  |  | - |  |  | -
US Treasury Securities |  | - |  |  | - |  |  | -
| $ | - |  | $ | - |  | $ | -
| Less than 12 months
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
CMOs issued by US Government-sponsored agencies |  | - |  |  | - |  |  | -
FNMA and FHLMC certificates |  | 34,628 |  |  | 32 |  |  | 34,596
GNMA certificates |  | 5,104 |  |  | 178 |  |  | 4,926
US Treasury Securities |  | - |  |  | - |  |  | -
| $ | 39,732 |  | $ | 210 |  | $ | 39,522
| Total
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
CMOs issued by US government-sponsored agencies | $ | - |  | $ | - |  | $ | -
FNMA and FHLMC certificates |  | 34,628 |  |  | 32 |  |  | 34,596
Obligations of US government and sponsored agencies |  | - |  |  | - |  |  | -
GNMA certificates |  | 5,104 |  |  | 178 |  |  | 4,926
US Treasury Securities |  | - |  |  | - |  |  | -
| $ | 39,732 |  | $ | 210 |  | $ | 39,522
| December 31, 2019
| 12 months or more
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
CMOs issued by US Government-sponsored agencies | $ | 35,417 |  | $ | 387 |  | $ | 35,030
FNMA and FHLMC certificates |  | 259,099 |  |  | 1,415 |  |  | 257,684
Obligations of US Government and sponsored agencies |  | 1,967 |  |  | 6 |  |  | 1,961
GNMA certificates |  | 19 |  |  | - |  |  | 19
| $ | 296,502 |  | $ | 1,808 |  | $ | 294,694
| Less than 12 months
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
CMOs issued by US Government-sponsored agencies |  | 11,503 |  |  | 103 |  |  | 11,400
FNMA and FHLMC certificates |  | 4,919 |  |  | 2 |  |  | 4,917
GNMA certificates |  | 3,549 |  |  | 4 |  |  | 3,545
US Treasury Securities |  | 627 |  |  | - |  |  | 627
| $ | 20,598 |  | $ | 109 |  | $ | 20,489
| Total
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
CMOs issued by US Government-sponsored agencies |  | 46,920 |  |  | 490 |  |  | 46,430
FNMA and FHLMC certificates |  | 264,018 |  |  | 1,417 |  |  | 262,601
Obligations of US government and sponsored agencies |  | 1,967 |  |  | 6 |  |  | 1,961
GNMA certificates |  | 3,568 |  |  | 4 |  |  | 3,564
US Treasury Securities |  | 627 |  |  | - |  |  | 627
| $ | 317,100 |  | $ | 1,917 |  | $ | 315,183

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration