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ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB)
 12 Months Ended
Dec. 31, 2021
Federal Home Loan Bank, Advances, Fixed Rate [Abstract]  
ADVANCES FROM THE FEDERAL HOME LOAN BANK (FHLB) [Text Block]
NOTE 19 – ADVANCES
 
FROM THE FEDERAL HOME LOAN BANK (FHLB)
The following is a summary of the advances from the FHLB as of the indicated dates:
December 31,
 
December 31,
2021
2020
(In thousands)
Long-term
Fixed
-rate advances from FHLB (1)
$
200,000
$
440,000
(1)
Weighted-average interest rate
 
of
2.16
% and
2.26
% as of December 31, 2021 and 2020, respectively.
Advances from FHLB mature as follows as of the indicated date:
December 31, 2021
(In thousands)
Over six months to one year
$
200,000
The Corporation receives
 
advances from the
 
FHLB under an Advances,
 
Collateral Pledge, and
 
Security Agreement (the
 
“Collateral
Agreement”).
 
The
 
Collateral
 
Agreement
 
requires
 
the
 
Corporation
 
to
 
maintain
 
a
 
minimum
 
amount
 
of
 
qualifying
 
mortgage
 
collateral
with a
 
market
 
value
 
of generally
120
% or
 
higher than
 
the outstanding
 
advances.
 
As of
 
December 31,
 
2021
 
and 2020,
 
the estimated
value
 
of
 
specific
 
mortgage
 
loans
 
pledged
 
as
 
collateral
 
amounted
 
to
 
$
1.4
 
billion
 
and
 
$
1.6
 
billion,
 
respectively,
 
as
 
computed
 
by
 
the
FHLB
 
for
 
collateral
 
purposes.
 
The
 
carrying
 
value
 
of
 
such
 
loans
 
as
 
of
 
December 31,
 
2021
 
amounted
 
to
 
$
1.8
 
billion
 
(2020
 
-
 
$
2.2
billion). As
 
of December
 
31, 2021,
 
the Corporation
 
had additional
 
capacity of
 
approximately $
1.2
 
billion on
 
this credit
 
facility based
on collateral pledged
 
at the FHLB, including
 
a haircut reflecting
 
the perceived risk
 
associated with the
 
collateral. Haircut refers
 
to the
percentage by which
 
an asset’s
 
market value is reduced
 
for the purpose of
 
collateral levels. Advances
 
may be repaid prior
 
to maturity,
in whole or in part, at the option of the borrower
 
upon payment of any applicable fee specified in the contract
 
governing such advance.
In calculating the fee,
 
due consideration is given
 
to (i) all relevant factors,
 
including,
 
but not limited to,
 
any and all applicable
 
costs of
repurchasing
 
and/or
 
prepaying
 
any
 
associated
 
liabilities
 
and/or
 
hedges
 
entered
 
into
 
with
 
respect
 
to
 
the
 
applicable
 
advance;
 
(ii)
 
the
financial characteristics,
 
in their entirety,
 
of the advance
 
being prepaid; and
 
(iii), in the
 
case of adjustable-rate
 
advances, the expected
future earnings of the replacement
 
borrowing as long as the replacement
 
borrowing is at least equal
 
to the original advance’s
 
par value
and the replacement borrowing’s
 
tenor is at least equal to the remaining maturity of the prepaid advance.