SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2016

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Text Block]

NOTE 17 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase (repurchase agreements) with original maturities in excess of one year consist of the following:

		December, 31
		2016		2015
	(Dollars in thousands)
	Repurchase agreements, interest ranging from 1.96% to 2.83%
	(December 31, 2015: 1.96% to 3.41%) (1)(2)	$	300,000	$	700,000
(1)	Reported net of securities purchased under agreements to repurchase (reverse repurchase agreements) by counterparty, when applicable, pursuant to ASC 210-20-45-11.
(2)	As of December 31, 2016, includes $200 million that have an average rate of 2.11% and that are callable by lenders before their contractual maturities at various dates beginning on January 19, 2017. Subsequent to December 31, 2016, no lender has exercised its call option on repurchase agreements. In addition, $100 million is tied to variable rates.

The weighted-average interest rates on repurchase agreements as of December 31, 2016 and 2015 were 2.35% and 2.73%, respectively. Accrued interest payable on repurchase agreements amounted to $1.9 million and $4.0 million as of December 31, 2016 and 2015, respectively.

Repurchase agreements mature as follows:
		December 31, 2016
	(In thousands)
	Over six months to one year	$	100,000
	Over five years		200,000
	Total	$	300,000

The following securities were sold under agreements to repurchase:
		December 31, 2016
		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	$	126,205	$	123,175	$	125,417		1.30	%
Mortgage-backed securities		215,352		176,825		213,973		2.20	%
Total	$	341,557	$	300,000	$	339,390
Accrued interest receivable	$	1,400

		December 31, 2015
		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	$	233,175	$	211,010	$	230,603	1.47	%
Mortgage-backed securities		564,595		488,990		562,959	2.18	%
Total	$	797,770	$	700,000	$	793,562
Accrued interest receivable	$	2,145

The maximum aggregate balance outstanding at any month-end during 2016 was $700 million (2015 — $900 million). The average balance during 2016 was $616.4 million (2015 — $769.0 million). The weighted-average interest rate during 2016 and 2015 was 3.28% and 2.92%, respectively.

As of December 31, 2016 and 2015, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted.

Repurchase agreements as of December 31, 2016, grouped by counterparty, were as follows:
	(Dollars in thousands)			Weighted-Average
	Counterparty	Amount		Maturity (In Months)
	Dean Witter / Morgan Stanley	$	100,000	10
	JP Morgan Chase		200,000	61
		$	300,000