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BORROWINGS AND RELATED INTEREST
 9 Months Ended
Sep. 30, 2022
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 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 September 30, 2022 and December 31, 2021, these advances were secured by mortgage and commercial loans amounting to $974.8 million and $949.0 million, respectively. Also, at September 30, 2022 and December 31, 2021, OFG had an additional borrowing capacity with the FHLB of $682.3 million and $697.3 million, respectively. At September 30, 2022 and December 31, 2021, the weighted average remaining maturity of FHLB’s advances was 1 and 3 days, respectively. The original term of the outstanding advance at September 30, 2022 is 1 month.
The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $65 thousand and $8 thousand at September 30, 2022 and December 31, 2021, respectively:
September 30,December 31,
20222021
(In thousands)
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 2.85% (December 31, 2021 - 0.35%)
$27,088 $28,480 
Advances from FHLB mature as follows:
September 30,December 31,
20222021
(In thousands)
Under 90 days$27,088 $28,480 
Subordinated Capital Notes
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 with a par value of $36.1 million.
During the quarter ended March 31, 2022, OFG redeemed of all outstanding $36.1 million subordinated capital notes before maturity, and as a result, it wrote off $405 thousand in unamortized issuance costs, included as interest expense in the consolidated statements of operations. OFG also recorded a gain on early debt extinguishment of $42 thousand included in other non-interest income in the consolidated statements of operations. Prior to redemption, such subordinated capital notes carried an interest rate of 3.23% based on 3-month LIBOR plus 295 basis points and were schedule to mature on September 17, 2033. Following the redemption of the subordinated capital notes, the Statutory Trust II was dissolved.
At December 31, 2021, the $35.0 million trust redeemable preferred securities were treated as Tier 1 capital for regulatory purposes.