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INVESTMENT SECURITIES | 3 Months Ended
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Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | 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, 2022 and December 31, 2021, money market instruments included as part of cash and cash equivalents amounted to $5.6 million and $9.0 million, respectively. Investment Securities The amortized cost, gross unrealized gains and losses, fair value, weighted average yield and contractual maturities of the securities owned by OFG at March 31, 2022 and December 31, 2021 were as follows:
| March 31, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Weighted Average Yield
| (In thousands)
Available-for-sale |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 2,020 |  |  | — |  |  | 5 |  |  | $ | 2,015 |  |  | 2.13 | %
Due from 5 to 10 years | $ | 82,101 |  |  | $ | 2 |  |  | $ | 1,168 |  |  | $ | 80,935 |  |  | 1.94 | %
Due after 10 years | 490,169 |  |  | — |  |  | 14,229 |  |  | $ | 475,940 |  |  | 2.25 | %
Total FNMA and FHLMC certificates | 574,290 |  |  | 2 |  |  | 15,402 |  |  | 558,890 |  |  | 2.21 | %
GNMA Securities |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 16,836 |  |  | — |  |  | 146 |  |  | 16,690 |  |  | 1.63 | %
Due from 5 to 10 years | 16,470 |  |  | — |  |  | 327 |  |  | 16,143 |  |  | 1.88 | %
Due after 10 years | 261,712 |  |  | 872 |  |  | 8,221 |  |  | 254,363 |  |  | 2.40 | %
Total GNMA certificates | 295,018 |  |  | 872 |  |  | 8,694 |  |  | 287,196 |  |  | 2.32 | %
CMOs issued by US government-sponsored agencies |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 1,523 |  |  | — |  |  | 24 |  |  | 1,499 |  |  | 1.70 | %
Due from 5 to 10 years | 18,584 |  |  | — |  |  | 300 |  |  | 18,284 |  |  | 1.80 | %
Due after 10 years | 1,325 |  |  | 1 |  |  | 4 |  |  | 1,322 |  |  | 4.53 | %
Total CMOs issued by US government-sponsored agencies | 21,432 |  |  | 1 |  |  | 328 |  |  | 21,105 |  |  | 1.96 | %
Total mortgage-backed securities | 890,740 |  |  | 875 |  |  | 24,424 |  |  | 867,191 |  |  | 2.24 | %
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 10,735 |  |  | 28 |  |  | — |  |  | 10,763 |  |  | 1.49 | %
Total US Treasury Securities | 10,735 |  |  | 28 |  |  | — |  |  | 10,763 |  |  | 1.49 | %
Other debt securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 500 |  |  | — |  |  | — |  |  | 500 |  |  | 0.57 | %
Due from 1 to 5 years | 1,823 |  |  | 61 |  |  | — |  |  | 1,884 |  |  | 5.46 | %
Total Other debt securities | 2,323 |  |  | 61 |  |  | — |  |  | 2,384 |  |  | 4.41 | %
Total investment securities | 13,058 |  |  | 89 |  |  | — |  |  | 13,147 |  |  | 2.01 | %
Total securities available for sale | $ | 903,798 |  |  | $ | 964 |  |  | $ | 24,424 |  |  | $ | 880,338 |  |  | 2.24 | %
| March 31, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Weighted Average Yield
| (In thousands)
Held-to-maturity |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates |  |  |  |  |  |  |  |  |
Due after 10 years | $ | 359,806 |  |  | $ | — |  |  | $ | 29,837 |  |  | $ | 329,969 |  |  | 1.71 | %
| December 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Weighted Average Yield
| (In thousands)
Available-for-sale |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates |  |  |  |  |  |  |  |  |
Due from 5 to 10 years | 90,560 |  |  | 2,502 |  |  | — |  |  | 93,062 |  |  | 1.94 | %
Due after 10 years | 93,440 |  |  | — |  |  | 3,200 |  |  | 90,240 |  |  | 1.37 | %
Total FNMA and FHLMC certificates | 184,000 |  |  | 2,502 |  |  | 3,200 |  |  | 183,302 |  |  | 1.65 | %
GNMA Securities |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 10,536 |  |  | 233 |  |  | 1 |  |  | 10,768 |  |  | 1.66 | %
Due from 5 to 10 years | 26,419 |  |  | 556 |  |  | — |  |  | 26,975 |  |  | 1.80 | %
Due after 10 years | 244,106 |  |  | 6,927 |  |  | 198 |  |  | 250,835 |  |  | 2.40 | %
Total GNMA certificates | 281,061 |  |  | 7,716 |  |  | 199 |  |  | 288,578 |  |  | 2.32 | %
CMOs issued by US government-sponsored agencies |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 1,788 |  |  | 22 |  |  | — |  |  | 1,810 |  |  | 1.70 | %
Due from 5 to 10 years | 20,705 |  |  | 299 |  |  | — |  |  | 21,004 |  |  | 1.81 | %
Due after 10 years | 1,601 |  |  | 16 |  |  | 1 |  |  | 1,616 |  |  | 4.24 | %
Total CMOs issued by US government-sponsored agencies | 24,094 |  |  | 337 |  |  | 1 |  |  | 24,430 |  |  | 1.96 | %
Total mortgage-backed securities | 489,155 |  |  | 10,555 |  |  | 3,400 |  |  | 496,310 |  |  | 2.05 | %
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 10,737 |  |  | 88 |  |  | — |  |  | 10,825 |  |  | 1.48 | %
Total US Treasury Securities | 10,737 |  |  | 88 |  |  | — |  |  | 10,825 |  |  | 1.48 | %
Obligations of US government-sponsored agencies |  |  |  |  |  |  |  |  |
Due less than 1 year | 1,182 |  |  | 1 |  |  | — |  |  | 1,183 |  |  | 1.40 | %
Total Obligations of US government-sponsored agencies | 1,182 |  |  | 1 |  |  | — |  |  | 1,183 |  |  | 1.40 | %
Other debt securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 500 |  |  | — |  |  | — |  |  | 500 |  |  | 0.57 | %
Due from 1 to 5 years | 1,847 |  |  | 48 |  |  | — |  |  | 1,895 |  |  | 5.43 | %
Total Other debt securities | 2,347 |  |  | 48 |  |  | — |  |  | 2,395 |  |  | 4.39 | %
Total investment securities | 14,266 |  |  | 137 |  |  | — |  |  | 14,403 |  |  | 1.95 | %
Total securities available for sale | $ | 503,421 |  |  | $ | 10,692 |  |  | $ | 3,400 |  |  | $ | 510,713 |  |  | 2.05 | %
| December 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Weighted Average Yield
| (In thousands)
Held-to-maturity |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FNMA and FHLMC certificates |  |  |  |  |  |  |  |  |
Due after 10 years | 367,507 |  |  | — |  |  | 3,854 |  |  | 363,653 |  |  | 1.71 | %
Investment securities as of March 31, 2022 include $200.4 million pledged to secure government deposits, derivatives and regulatory collateral that the secured parties are not permitted to sell or repledge the collateral, of which $199.7 million serve as collateral for public funds. Investment securities as of December 31, 2021 include $145.6 million pledged to secure government deposits, derivatives and regulatory collateral that the secured parties are not permitted to sell or repledge the collateral, of which $143.8 million serve as collateral for public funds. The weighted average yield on debt securities available-for-sale is based on amortized cost and does not give effect to changes in fair value. Weighted average yields on tax-exempt obligations have been computed on a fully taxable equivalent basis. 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. At March 31, 2022 and December 31, 2021, most securities held by OFG are issued by U.S. government entities and agencies that have a zero-credit loss assumption. At both March 31, 2022 and December 31, 2021, the Bank’s international banking entities held short-term US Treasury securities in the amount of $305 thousand and $325 thousand, respectively, as the legal reserve required for international banking entities under Puerto Rico law. These instruments cannot be withdrawn or transferred without the prior written approval of the Office of the Commissioner of Financial Institutions of Puerto Rico (“OCFI”). During the quarters ended March 31, 2022 and 2021, OFG retained securitized GNMA pools totaling $24.0 million and $30.0 million amortized cost, respectively, at a yield of 2.37% and 2.22%, from its own originations. There were no sales of securities during the quarters ended March 31, 2022 and 2021. 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, 2022 and December 31, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
| March 31, 2022
| 12 months or more
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
FNMA and FHLMC certificates | 91,258 |  |  | 9,884 |  |  | 81,374 |
GNMA certificates | 4,237 |  |  | 256 |  |  | 3,981 |
| $ | 95,495 |  |  | $ | 10,140 |  |  | $ | 85,355 |
| March 31, 2022
| Less than 12 months
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
CMOs issued by US Government-sponsored agencies | 20,744 |  |  | 328 |  |  | 20,416 |
FNMA and FHLMC certificates | 481,614 |  |  | 5,518 |  |  | 476,096 |
GNMA certificates | 273,405 |  |  | 8,438 |  |  | 264,967 |
| $ | 775,763 |  |  | $ | 14,284 |  |  | $ | 761,479 |
Held-to-maturity |  |  |  |  |
FNMA and FHLMC certificates | $ | 359,806 |  |  | $ | 29,837 |  |  | $ | 329,969 |
| March 31, 2022
| Total
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
CMOs issued by US Government-sponsored agencies | 20,744 |  |  | 328 |  |  | 20,416 |
FNMA and FHLMC certificates | 572,872 |  |  | 15,402 |  |  | 557,470 |
GNMA certificates | 277,642 |  |  | 8,694 |  |  | 268,948 |
| $ | 871,258 |  |  | $ | 24,424 |  |  | $ | 846,834 |
Held-to-maturity |  |  |  |  |
FNMA and FHLMC certificates | $ | 359,806 |  |  | $ | 29,837 |  |  | $ | 329,969 |
| December 31, 2021
| Less than 12 months
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
CMOs issued by US Government-sponsored agencies | 500 |  |  | 1 |  |  | 499 |
FNMA and FHLMC certificates | 93,440 |  |  | 3,200 |  |  | 90,240 |
GNMA certificates | 5,022 |  |  | 199 |  |  | 4,823 |
| $ | 98,962 |  |  | $ | 3,400 |  |  | $ | 95,562 |
Held-to-maturity |  |  |  |  |
FNMA and FHLMC certificates | $ | 367,507 |  |  | $ | 3,854 |  |  | $ | 363,653 |
OFG had no investment securities in a continuous loss position for 12 months or more at December 31, 2021.

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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 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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