Related Party Transactions

12 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS

OFG grants loans to its directors, executive officers and to certain related individuals or organizations in the ordinary course of business. These loans are offered at the same terms as loans to unrelated third parties. The activity and balance of these loans for the years ended December 31, 2021, 2020, and 2019 was as follows:


	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Balance at the beginning of year	$	21,112	$	22,312	$	28,520
New loans and disbursements	8,233		17,896		203
Repayments	(3,430)		(19,096)		(6,411)
Balance at the end of year	$	25,915	$	21,112	$	22,312

OFG also hired professional services amounting to $5.0 million, $3.2 million and $3.7 million for the years ended December 31, 2021, 2020, and 2019, respectively, from a related party.

OFG, through its banking subsidiary, entered into a commitment to make an equity investment in a limited partnership classified as a small business investment company. The partnership is managed by a Puerto Rico limited liability company, as general partner, which is led by a group of investment professionals, including members of the Board of Directors of OFG. OFG, as limited partner, committed to the partnership $3.0 million. At December 31, 2021 and 2020, OFG’s investment in the partnership amounted to $1.8 million and $1.1 million, respectively.