BORROWINGS AND RELATED INTERESTSecurities Sold under Agreements to Repurchase
At December 31, 2025 and 2024, securities underlying agreements to repurchase were delivered to, and held by, the counterparties with whom the repurchase agreements were transacted. The counterparties agreed to resell to OFG the same or similar securities at the maturity of these agreements. The purpose of these transactions is to provide financing for OFG’s securities portfolio.
The following table shows OFG’s repurchase agreements, excluding accrued interest in the amount of $714 thousand and $222 thousand at December 31, 2025 and 2024:
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| December 31, |
| | | |
| 2025 | | 2024 |
| (In thousands) |
Short-term fixed-rate repurchase agreements, with a weighted average interest rate of 3.62% (December 31, 2024 - 4.63%) | $ | 100,000 | | | $ | 75,000 | |
| | | |
| | | |
Repurchase agreements’ maturities at December 31, 2025 and 2024 were as follows:
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| December 31, |
| | | |
| 2025 | | 2024 |
| (In thousands) |
| Under 90 days | $ | — | | | $ | 75,000 | |
| Over 90 days to one year | 100,000 | | | — | |
| Total | $ | 100,000 | | | $ | 75,000 | |
The following securities were sold under agreements to repurchase at December 31, 2025 and 2024:
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| Underlying Securities | | Amortized Cost of Underlying Securities | | Balance of Borrowing | | Approximate Fair Value of Underlying Securities | | Weighted Average Interest Rate of Security |
| | (In thousands) | | |
| December 31, 2025 | | | | | | | | |
| FNMA and FHLMC Certificates | | $ | 105,696 | | | $ | 100,000 | | | $ | 108,662 | | | 5.22 | % |
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| December 31, 2024 | | | | |
| FNMA and FHLMC Certificates | | $ | 81,409 | | | $ | 75,000 | | | $ | 80,968 | | | 5.25 | % |
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Advances from the Federal Home Loan Bank of New York
Advances are received from the FHLB-NY under an agreement whereby OFG is required to maintain as collateral an amount of qualifying collateral which has a fair market value that is least equal to the FHLB-NY collateral maintenance level. At December 31, 2025 and 2024, these advances were secured by mortgage and commercial loans amounting to $1.3 billion and $1.1 billion, respectively. Further, at December 31, 2025 and 2024, OFG had an additional borrowing capacity with the FHLB of $351.1 million and $383.1 million, respectively. At December 31, 2025 and 2024, the weighted average remaining maturity of FHLB advances was 1.1 years and 4 months, respectively.
The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $1.6 million and $952 thousand at December 31, 2025 and 2024, respectively:
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| December 31, |
| | | |
| 2025 | | 2024 |
| (In thousands) |
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 3.79% (December 31, 2024 - 4.56%) | $ | 55,000 | | | $ | 270,000 | |
Long-term fixed-rate advance from FHLB, with a weighted average interest rate of 4.13% (December 31, 2024 - 3.79%) | 400,000 | | | 55,000 | |
| $ | 455,000 | | | $ | 325,000 | |
Advances from FHLB mature as follows:
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| December 31, |
| | | |
| 2025 | | 2024 |
| (In thousands) |
| | | |
| Over 90 days to one year | $ | 55,000 | | $ | 270,000 | |
| Over one to three years | 400,000 | | | 55,000 | |
| | | |
| | | |
| $ | 455,000 | | | $ | 325,000 | |