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Borrowings and Related Interest
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Borrowings and Related Interest BORROWINGS AND RELATED INTEREST
Advances from the Federal Home Loan Bank of New York
Advances are received from the FHLB-NY under an agreement whereby OFG is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At December 31, 2021 and 2020, these advances were secured by mortgage and commercial loans amounting to $949.0 million and $1.159 billion, respectively. Also, at December 31, 2021 and 2020, OFG had an additional borrowing capacity with the FHLB-NY of $697.3 million and $814.0 million, respectively. At December 31, 2021 and 2020, the weighted average remaining
maturity of FHLB’s advances was 3 days and 18.2 months, respectively. The original term of the outstanding advance at December 31, 2021 is 1 month.
The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $8 thousand and $96 thousand at December 31, 2021 and 2020, respectively:
December 31,
20212020
(In thousands)
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 0.35% (December 31, 2020 - 0.34% )
$28,480 $30,259 
Long-term fixed-rate advances from FHLB, with a weighted average interest rate from 2.92% to 3.24% at December 31, 2020
— 35,206 
$28,480 $65,465 
Advances from FHLB mature as follows:
December 31,
20212020
(In thousands)
Under 90 days$28,480 $30,259 
Over one to three years— 30,972 
Over three to five years— 4,234 
$28,480 $65,465 
Subordinated Capital Notes
Subordinated capital notes amounted to $36.1 million at both December 31, 2021 and 2020.
In August 2003, the Statutory Trust II, a special purpose entity of OFG, was formed for the purpose of issuing trust redeemable preferred securities. In September 2003, $35.0 million of trust redeemable preferred securities were issued by the Statutory Trust II as part of a pooled underwriting transaction.
The proceeds from this issuance were used by the Statutory Trust II to purchase a like amount of a floating rate junior subordinated deferrable interest debenture issued by OFG. The subordinated deferrable interest debenture has a par value of $36.1 million, bears interest based on 3-month LIBOR plus 295 basis points (3.17% at December 31, 2021; 3.18% at 2020), is payable quarterly, and matures on September 17, 2033. It may be called at par after five years and quarterly thereafter (next call date March 2022). The trust redeemable preferred securities have the same maturity and call provisions as the subordinated deferrable interest debenture. The subordinated deferrable interest debenture issued by OFG is accounted for as a liability denominated as a “subordinated capital” note on the consolidated statements of financial condition.
The subordinated capital note is treated as Tier 1 capital for regulatory purposes. Under the Dodd-Frank Act and the Basel III capital rules issued by the federal banking regulatory agencies in July 2013, bank holding companies are prohibited from including in their Tier 1 capital hybrid debt and equity securities, including trust preferred securities, issued on or after May 19, 2010. Any such instruments issued before May 19, 2010 by a bank holding company, such as OFG, with total consolidated assets of less than $15 billion as of December 31, 2009, may continue to be included as Tier 1 capital. Therefore, OFG is permitted to continue to include its existing trust preferred securities as Tier 1 capital.