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Investment Securities | 3 Months Ended
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Mar. 31, 2021
Investment Securities [Abstract] |
Investment Securities | NOTE 3 – INVESTMENT SECURITIES Money Market Investments OFG considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less at the date of acquisition. At March 31, 2021 and December 31, 2020, money market instruments included as part of cash and cash equivalents amounted to $11.4 million and $11.9 million, respectively. Investment Securities The amortized cost, gross unrealized gains and losses, fair value, and weighted average yield of the securities owned by OFG at March 31, 2021 and December 31, 2020, were as follows:
| March 31, 2021
|  |  | Gross |  | Gross |  |  |  | Weighted
| Amortized |  | Unrealized |  | Unrealized |  | Fair |  | Average
| Cost |  | Gains |  | Losses |  | Value |  | Yield
| (In thousands)
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 220,735 |  | $ | 3,854 |  | $ | 3,593 |  | $ | 220,996 |  | 1.73%
GNMA certificates |  | 193,884 |  |  | 7,624 |  |  | 160 |  |  | 201,348 |  | 2.20%
CMOs issued by US government-sponsored agencies |  | 34,422 |  |  | 907 |  |  | - |  |  | 35,329 |  | 1.96%
Total mortgage-backed securities |  | 449,041 |  |  | 12,385 |  |  | 3,753 |  |  | 457,673 |  | 1.95%
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | 10,739 |  |  | 207 |  |  | - |  |  | 10,946 |  | 1.49%
Obligations of US government-sponsored agencies |  | 1,496 |  |  | 16 |  |  | - |  |  | 1,512 |  | 1.39%
Other debt securities |  | 839 |  |  | 39 |  |  | - |  |  | 878 |  | 2.28%
Total investment securities |  | 13,074 |  |  | 262 |  |  | - |  |  | 13,336 |  | 1.53%
Total securities available for sale | $ | 462,115 |  | $ | 12,647 |  | $ | 3,753 |  | $ | 471,009 |  | 1.94%
Held-to-maturity |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 126,767 |  | $ | - |  | $ | 1,289 |  | $ | 125,478 |  | 1.21%
| December 31, 2020
|  |  | Gross |  | Gross |  |  |  | Weighted
| Amortized |  | Unrealized |  | Unrealized |  | Fair |  | Average
| Cost |  | Gains |  | Losses |  | Value |  | Yield
| (In thousands)
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 206,195 |  | $ | 4,786 |  | $ | 32 |  | $ | 210,949 |  | 1.78%
GNMA certificates |  | 174,472 |  |  | 8,478 |  |  | 178 |  |  | 182,772 |  | 2.21%
CMOs issued by US government-sponsored agencies |  | 38,309 |  |  | 905 |  |  | - |  |  | 39,214 |  | 1.96%
Total mortgage-backed securities |  | 418,976 |  |  | 14,169 |  |  | 210 |  |  | 432,935 |  | 1.97%
Investment securities |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | 10,740 |  |  | 243 |  |  | - |  |  | 10,983 |  | 1.49%
Obligations of US government-sponsored agencies |  | 1,585 |  |  | 21 |  |  | - |  |  | 1,606 |  | 1.39%
Other debt securities |  | 875 |  |  | 39 |  |  | - |  |  | 914 |  | 2.31%
Total investment securities |  | 13,200 |  |  | 303 |  |  | - |  |  | 13,503 |  | 1.53%
Total securities available-for-sale | $ | 432,176 |  | $ | 14,472 |  | $ | 210 |  | $ | 446,438 |  | 1.96%
Effective January 1, 2020, OFG adopted the new accounting standard for credit losses that requires evaluation of available-for-sale and held-to-maturity debt securities for any expected losses with recognition of an allowance for credit losses, when applicable. At March 31, 2021 and December 31, 2020, all securities held by OFG are issued by U.S. government entities and agencies that have a zero-credit loss assumption.The amortized cost and fair value of OFG’s investment securities at March 31, 2021, by contractual maturity, are shown in the next table. Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| March 31, 2021
| Available-for-sale |  | Held-to-maturity
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
| (In thousands)
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |
Due less than one year |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 141 |  | $ | 148 |  | $ | - |  | $ | -
Total due in less than one year |  | 141 |  |  | 148 |  |  | - |  |  | -
Due from 1 to 5 years |  |  |  |  |  |  |  |  |  |  |
GNMA certificates |  | 395 |  |  | 396 |  |  | - |  |  | -
Total due from 1 to 5 years |  | 395 |  |  | 396 |  |  | - |  |  | -
Due after 5 to 10 years |  |  |  |  |  |  |  |  |  |  |
CMOs issued by US government-sponsored agencies | $ | 29,295 |  | $ | 30,106 |  | $ | - |  | $ | -
FNMA and FHLMC certificates |  | 92,424 |  |  | 95,664 |  |  | - |  |  | -
GNMA certificates |  | 52,748 |  |  | 54,294 |  |  | - |  |  | -
Total due after 5 to 10 years |  | 174,467 |  |  | 180,064 |  |  | - |  |  | -
Due after 10 years |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 128,170 |  | $ | 125,184 |  | $ | 126,767 |  | $ | 125,478
GNMA certificates |  | 140,741 |  |  | 146,658 |  |  | - |  |  | -
CMOs issued by US government-sponsored agencies |  | 5,127 |  |  | 5,223 |  |  | - |  |  | -
Total due after 10 years |  | 274,038 |  |  | 277,065 |  |  | 126,767 |  |  | 125,478
Total mortgage-backed securities |  | 449,041 |  |  | 457,673 |  |  | 126,767 |  |  | 125,478
Investment securities |  |  |  |  |  |  |  |  |  |  |
Due less than one year |  |  |  |  |  |  |  |  |  |  |
Obligations of US government-sponsored agencies | $ | 1,496 |  | $ | 1,512 |  | $ | - |  | $ | -
US Treasury securities |  | 735 |  |  | 735 |  |  | - |  |  | -
Other debt securities |  | 250 |  |  | 250 |  |  | - |  |  | -
Total due in less than one year |  | 2,481 |  |  | 2,497 |  |  | - |  |  | -
Due from 1 to 5 years |  |  |  |  |  |  |  |  |  |  |
US Treasury securities | $ | 10,004 |  | $ | 10,211 |  | $ | - |  | $ | -
Other debt securities |  | 589 |  |  | 628 |  |  | - |  |  | -
Total due from 1 to 5 years |  | 10,593 |  |  | 10,839 |  |  | - |  |  | -
Due from 5 to 10 years |  |  |  |  |  |  |  |  |  |  |
Total investment securities |  | 13,074 |  |  | 13,336 |  |  | - |  |  | -
Total | $ | 462,115 |  | $ | 471,009 |  | $ | 126,767 |  | $ | 125,478
During the quarter ended March 31, 2020, OFG sold $316.3 million available-for-sale mortgage-backed securities and recognized a $4.7 million gain in the sale. There were no sales of securities during the quarter ended on March 31, 2021. During the quarters ended March 31, 2021 and 2020, OFG retained securitized GNMA pools totaling $30.0 million and $26.8 million amortized cost, respectively, at a yield of 2.22% and 2.82%, from its own originations.
| Quarter Ended March 31, 2020
|  |  | Book Value |  |  |  |
Description | Sale Price |  | at Sale |  | Gross Gains |  | Gross Losses
| (In thousands)
Sale of securities available-for-sale |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 229,571 |  | $ | 227,213 |  | $ | 2,358 |  | $ | -
GNMA certificates |  | 91,413 |  |  | 89,043 |  |  | 2,370 |  |  | -
Total | $ | 320,984 |  | $ | 316,256 |  | $ | 4,728 |  | $ | -
The following table show OFG’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity at March 31, 2021 and December 31, 2020, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
| March 31, 2021
| Less than 12 months
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 108,552 |  | $ | 3,750 |  | $ | 104,802
GNMA certificates |  | 536 |  |  | 3 |  |  | 533
| $ | 109,088 |  | $ | 3,753 |  | $ | 105,335
Held-to-maturity |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 126,767 |  | $ | 1,289 |  | $ | 125,478
| Total
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 108,552 |  | $ | 3,750 |  | $ | 104,802
GNMA certificates |  | 536 |  |  | 3 |  |  | 533
| $ | 109,088 |  | $ | 3,753 |  | $ | 105,335
Held-to-maturity |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 126,767 |  | $ | 1,289 |  | $ | 125,478
| December 31, 2020
| Less than 12 months
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 34,628 |  | $ | 32 |  | $ | 34,596
GNMA certificates |  | 5,104 |  |  | 178 |  |  | 4,926
| $ | 39,732 |  | $ | 210 |  | $ | 39,522
| Total
| Amortized |  | Unrealized |  | Fair
| Cost |  | Loss |  | Value
| (In thousands)
Securities available-for-sale |  |  |  |  |  |  |  |
FNMA and FHLMC certificates | $ | 34,628 |  | $ | 32 |  | $ | 34,596
GNMA certificates |  | 5,104 |  |  | 178 |  |  | 4,926
| $ | 39,732 |  | $ | 210 |  | $ | 39,522
OFG had no investment securities with continuous loss position for 12 months or more at March 31, 2021 or December 31, 2020.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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