XML 26 R12.htm IDEA: XBRL DOCUMENT v3.22.0.1
Restricted Cash
 12 Months Ended
Dec. 31, 2021
Restricted Cash and Investments [Abstract]  
Restricted Cash RESTRICTED CASH
The following table includes the composition of OFG’s restricted cash:
December 31,
20212020
(In thousands)
Cash pledged as collateral to other financial institutions to secure:
Regulatory requirements$— $325 
Obligations under agreement of loans sold with recourse175 1,050 
$175 $1,375 
At December 31, 2020, cash of $325 thousand was held as the legal reserve required by the Puerto Rico’s Office of the Commissioner of Financial Institutions (“OCFI”) in connection with an international banking entity (“IBE”) unit license acquired in the Scotiabank Acquisition. This cash was released during the year ended December 31, 2021, as a result of the cancellation of this IBE license.
OFG has a contract with FNMA which requires collateral to guarantee the repurchase, if necessary, of loans sold with recourse. At December 31, 2021 and 2020, OFG delivered as collateral cash amounting to approximately $175 thousand and $1.1 million, respectively.
The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits. The amount of those minimum average reserve balances for the week that covered December 31, 2021 was $456.5 million (December 31, 2020 - $408.5 million). At December 31, 2021 and 2020, the Bank complied with this requirement. Cash and due from bank as well as other short-term, highly liquid securities, are used to cover the required average reserve balances.