SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2021

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,

2021

2020

(In thousands)

Long-term repurchase agreement

(1)

$

300,000

$

300,000

(1)

Weighted-average interest rate of

3.35

% and

1.77

% as of December 31, 2021 and 2020, respectively. During the first quarter of 2021, the interest rate related to securities

sold under agreement to repurchase totaling $

200

 million changed from a variable rate (3-month LIBOR plus

130

 to

132

 basis points) to a fixed rate of

3.90

% after the end

of a prespecified lockout period. As of December 31, 2021, all of the outstanding securities sold under agreements to repurchase are tied to fixed interest rates.

Accrued interest payable on repurchase agreements amounted to $

1.9

 million and $

1.0

 million as of December 31, 2021 and 2020,

respectively.

Repurchase agreements mature as follows as of the indicated date:

December 31, 2021

(In thousands)

One month to three months

$

100,000

Three to five years

200,000

 Total

$

300,000

The following securities were sold under agreements to repurchase:

As of December 31, 2021

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

$

-

$

-

$

-

-

%

MBS

319,225

300,000

321,180

1.33

%

 Total 

$

319,225

$

300,000

$

321,180

Accrued interest receivable

$

599

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

The maximum aggregate balance of repurchase agreements outstanding at any month-end during 2021 was $

300.0

 million (2020 -

$

475.8

 million). The average balance during 2021 was $

300.5

 million (2020 - $

291.5

 million). The weighted-average interest rate

during 2021 and 2020 was

3.32

% and

2.28

%, respectively, considering negative market rates on reverse repurchase agreements in

2020. 

As of December 31, 2021 and 2020, the securities underlying such agreements were delivered to the dealers with which the

repurchase agreements were transacted.

Repurchase agreements as of December 31, 2021, grouped by counterparty, were as follows:

Weighted-Average

Counterparty

Amount

Maturity (In Months)

(Dollars in thousands)

JP Morgan Chase

$

100,000

1

Credit Suisse First Boston

200,000

37

Total

$

300,000