SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2014

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Text Block]

NOTE 15 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase (repurchase agreements) consist of the following:

		December, 31
		2014		2013
		(Dollars in thousands)
	Repurchase agreements, interest ranging from 2.45% to 4.50%
	(December 31, 2013: 2.45% to 3.32%) (1)	$	900,000	$	900,000
(1)	As of December 31, 2014, includes $800 million with an average rate of 3.30%, and that lenders have the right to call before their contractual maturities
	at various dates beginning on January 9, 2015. Subsequent to December 31, 2014, no lender has exercised its call option on repurchase agreements.
	In addition, $500 million of the $900 million is tied to variable rates.

The weighted average interest rates on repurchase agreements as of December 31, 2014 and 2013 were 3.24% and 2.83%, respectively. Accrued interest payable on repurchase agreements amounted to $5.2 million and $4.5 million as of December 31, 2014 and 2013, respectively.

Repurchase agreements mature as follows:
		December 31, 2014
		(In thousands)
	Over one year to three years	$	700,000
	Three to five years		200,000
	Total	$	900,000

The following securities were sold under agreements to repurchase:
		December 31, 2014
		Amortized				Approximate	Weighted
		Cost of				Fair Value	Average
		Underlying		Balance of		of Underlying	Interest Rate
Underlying Securities		Securities		Borrowing		Securities	of Security
		(In thousands)
U.S. government-sponsored agencies	$	170,495	$	150,051	$	166,320		1.27	%
Mortgage-backed securities		852,132		749,949		859,646		2.53	%
Total	$	1,022,627	$	900,000	$	1,025,966
Accrued interest receivable	$	2,846

		December 31, 2013
		Amortized				Approximate	Weighted
		Cost of				Fair Value	Average
		Underlying		Balance of		of Underlying	Interest Rate
Underlying Securities		Securities		Borrowing		Securities	of Security
		(In thousands)
U.S. government-sponsored agencies	$	212,218	$	178,360	$	198,968	1.31	%
Mortgage-backed securities		858,626		721,640		843,514	2.59	%
Total	$	1,070,844	$	900,000	$	1,042,482
Accrued interest receivable	$	2,925

The maximum aggregate balance outstanding at any month-end during 2014 was $900 million (2013 — $900million). The average balance during 2014 was $900 million (2013 — $900 million). The weighted-average interest rate during 2014 and 2013 was 3.00% and 2.88%, respectively.

As of December 31, 2014 and 2013, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted.

Repurchase agreements as of December 31, 2014, grouped by counterparty, were as follows:
	(Dollars in thousands)			Weighted Average
	Counterparty	Amount		Maturity (In Months)
	Citigroup Global Markets	$	300,000	22
	JP Morgan Chase		200,000	26
	Dean Witter / Morgan Stanley		100,000	34
	Credit Suisse First Boston		300,000	36
		$	900,000