BORROWINGS

12 Months Ended

Dec. 31, 2024

BORROWINGS [Abstract]

BORROWINGS

NOTE 12 –BORROWINGS

The following is a summary of the advances from the FHLB as of the indicated dates:

December 31, 2024

December 31, 2023

(In thousands)

Long-term

Fixed

-rate advances from the FHLB

(1)

$

500,000

$

500,000

(1)

Weighted-average interest rate of

4.45

% as of each of December 31, 2024 and 2023, respectively.

Advances from the FHLB mature as follows as of the indicated date:

December 31, 2024

(In thousands)

Three months or less

$

180,000

Over six months to one year

30,000

Over one year to two years

90,000

Over two years to three years

200,000

 Total

(1)

$

500,000

(1) Average remaining term to maturity of

1.48

 years.

The maximum aggregate balance of advances from the FHLB outstanding at any month end during the years ended December 31,

2024 and 2023 was $

500.0

 million and $

925.0

 million, respectively. The total average balance of FHLB advances during 2024 was

$

500.1

 million (2023 - $

541.0

 million). 

The Corporation receives advances and applies for the issuance of letters of credit from the FHLB under an Advances, Collateral

Pledge, and Security Agreement (the “Collateral Agreement”), which requires the Corporation to maintain a minimum of qualifying

mortgage collateral or U.S. Treasury or U.S. agencies MBS collateral, as applicable. The amount of collateral required for an advance

incorporates a collateral discount or “haircut,” which is incorporated into the member’s pledge and determined by the FHLB. Haircut

refers to the percentage by which an asset’s market value is reduced for the purpose of collateral levels. As of each of December 31,

2024 and 2023, the estimated value of specific mortgage loans pledged as collateral, net of haircut, amounted to $

1.2

 billion, as

computed by the FHLB for collateral purposes. As of December 31, 2024 and 2023, the estimated value of U.S. government-

sponsored agencies’ obligations and U.S. agencies MBS pledged as collateral, net of haircut, amounted to $

438.5

 million and $

454.0

million, respectively. As of December 31, 2024, the Corporation had additional capacity of approximately $

950.9

 million on this

credit facility based on collateral pledged at the FHLB, adjusted by a haircut reflecting the perceived risk associated with the

collateral. 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.

Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”)

There was

no

 maximum aggregate balance of repurchase agreements outstanding at any month-end for the year ended December

31, 2024. The maximum aggregate balance of repurchase agreements outstanding at any month-end for the year ended December 31,

2023 was $

173.0

 million. The average balance during 2024 was $

0.2

 million (2023- $

54.6

 million).

Junior Subordinated Debentures

Junior subordinated debentures, as of the indicated dates, consisted of:

(In thousands)

December 31, 2024

December 31, 2023

Long-term floating rate junior subordinated debentures (FBP Statutory Trust I)

(1)

$

43,143

$

43,143

Long-term floating rate junior subordinated debentures (FBP Statutory Trust II)

(2)

18,557

118,557

$

61,700

$

161,700

(1)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.75

% over

3-month CME Term SOFR

 plus a

0.26161

% tenor spread

adjustment as of December 31, 2024 and 2023 (

7.36

% as of December 31, 2024 and

8.39

% as of December 31, 2023).

(2)

Amount represents junior subordinated interest-bearing debentures due in 2034 with a floating interest rate of

2.50

% over

3-month CME Term SOFR

 plus a

0.26161

% tenor spread

adjustment as of December 31, 2024 and 2023 (

7.12

% as of December 31, 2024 and

8.13

% as of December 31, 2023).

See Note 10 – “Non-Consolidated Variable Interest Entities (“VIEs”) and Servicing Assets” and Note 15 – “Stockholders’ Equity”

for additional information on junior subordinated debentures, including the $

100.0

 million redemption of outstanding TruPS issued by

FBP Statutory Trust II.

Loans Payable

The Corporation participates in the Borrower-in-Custody Program (the “BIC Program”) of the FED. Through the BIC Program, a

broad range of loans (including commercial, consumer, and residential mortgages) may be pledged as collateral for borrowings

through the FED Discount Window. As of December 31, 2024, pledged collateral that is related to this credit facility amounted to $

2.6

billion, net of haircut, mainly commercial, consumer, and residential mortgage loans, which is fully available for funding. The FED

Discount Window program provides the opportunity to access a low-rate short-term source of funding in a high volatility market

environment.