SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2020

Disclosure of Repurchase Agreements [Abstract]

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Text Block]

NOTE 18 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase (repurchase agreements) as of the dates indicated consisted of the following:

	December 31,
	2020		2019
(In thousands)
Long-term repurchase agreement (1)(2)	$	300,000	$	100,000

(1)Weighted-average interest rate of 1.77% and 2.26% as of December 31, 2020 and 2019, respectively. As of December 31, 2020, includes repurchase agreements of $200 million tied to variable rates.

(2)During the first quarter of 2020, a repurchase agreement counterparty exercised its call option on $200 million of reverse repurchase agreements that were previously offset in the statement of financial condition against variable-rate repurchase agreements, pursuant to ASC Subtopic 210-20-45-11, “Balance Sheet – Offsetting – Repurchase and Reverse Repurchase Agreements.”

Accrued interest payable on repurchase agreements amounted to $1.0 million and $0.8 million as of December 31, 2020 and 2019, respectively.

Repurchase agreements mature as follows as of the indicated date:
		December 31,2020
	(In thousands)
	One year to three years	$	100,000
	Three to five years		200,000
	Total	$	300,000

The following securities were sold under agreements to repurchase:
		As of December 31, 2020
		Amortized				Approximate	Weighted
		Cost of				Fair Value	Average
		Underlying		Balance of		of Underlying	Interest Rate
Underlying Securities		Securities		Borrowing		Securities	of Security
(Dollars in thousands)
U.S. government-sponsored agencies	$	12,219	$	11,013	$	12,351		1.94	%
MBS		320,640		288,987		329,438		1.65	%
Total	$	332,859	$	300,000	$	341,789
Accrued interest receivable	$	753

		As of December 31, 2019
		Amortized				Approximate	Weighted
		Cost of				Fair Value	Average
		Underlying		Balance of		of Underlying	Interest Rate
Underlying Securities		Securities		Borrowing		Securities	of Security
(Dollars in thousands)
U.S. government-sponsored agencies	$	13,776	$	4,723	$	13,768	1.53	%
MBS		115,630		95,277		116,397	2.31	%
Total	$	129,406	$	100,000	$	130,165
Accrued interest receivable	$	347

The maximum aggregate balance of repurchase agreements outstanding at any month-end during 2020 was $475.8 million (2019 - $150.1 million). The average balance during 2020 was $291.5 million (2019 - $110.6 million). The weighted-average interest rate during 2020 and 2019 was 2.28% and 6.01%, respectively, considering negative market rates on reverse repurchase agreements.

As of December 31, 2020 and 2019, the securities underlying such agreements were delivered to the dealers with which the repurchase agreements were transacted.

Repurchase agreements as of December 31, 2020, grouped by counterparty, were as follows:

			Weighted-Average
(Dollars in thousands)	Amount		Maturity (In Months)
Counterparty
JP Morgan Chase	$	100,000	13
Credit Suisse First Boston		200,000	49
	$	300,000