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INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 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 June 30, 2022 and December 31, 2021, money market instruments included as part of cash and cash equivalents amounted to $4.9 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 June 30, 2022 and December 31, 2021 were as follows:
June 30, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesFair
Value		Weighted Average Yield
(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due from 1 to 5 years$1,759 $— $31 $1,728 2.12 %
Due from 5 to 10 years76,908 — 2,005 74,903 1.95 %
Due after 10 years795,150 948 33,267 762,831 2.82 %
Total FNMA and FHLMC certificates873,817 948 35,303 839,462 2.74 %
GNMA Securities
Due from 1 to 5 years15,130 — 431 14,699 1.63 %
Due from 5 to 10 years28,190 38 997 27,231 2.03 %
Due after 10 years268,591 616 22,780 246,427 2.52 %
Total GNMA certificates311,911 654 24,208 288,357 2.44 %
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years14,809 — 391 14,418 1.79 %
Due from 5 to 10 years3,223 — 79 3,144 1.82 %
Due after 10 years1,091 — 13 1,078 4.88 %
Total CMOs issued by US government-sponsored agencies19,123 — 483 18,640 1.97 %
Total mortgage-backed securities1,204,851 1,602 59,994 1,146,459 2.64 %
Investment securities
US Treasury securities
Due less than 1 year10,734 — 1 10,733 1.53 %
Other debt securities
Due less than 1 year500 — — 500 0.57 %
Due from 1 to 5 years1,798 81 1 1,878 5.50 %
Total other debt securities2,298 81 1 2,378 4.43 %
Total investment securities13,032 81 2 13,111 2.04 %
Total securities available for sale$1,217,883 $1,683 $59,996 $1,159,570 2.64 %
June 30, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesFair
Value		Weighted Average Yield
(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years$351,016 $— $47,628 $303,388 1.70 %
Investment securities
US Treasury securities
Due from 1 to 5 years196,816 1,543 — 198,359 3.36 %
Total securities held-to-maturity$547,832 $1,543 $47,628 $501,747 2.30 %
December 31, 2021
Amortized CostGross Unrealized GainsGross Unrealized LossesFair
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 years93,440 — 3,200 90,240 1.37 %
Total FNMA and FHLMC certificates184,000 2,502 3,200 183,302 1.65 %
GNMA Securities
Due from 1 to 5 years10,536 233 1 10,768 1.66 %
Due from 5 to 10 years26,419 556 — 26,975 1.80 %
Due after 10 years244,106 6,927 198 250,835 2.40 %
Total GNMA certificates281,061 7,716 199 288,578 2.32 %
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years1,788 22 — 1,810 1.70 %
Due from 5 to 10 years20,705 299 — 21,004 1.81 %
Due after 10 years1,601 16 1 1,616 4.24 %
Total CMOs issued by US government-sponsored agencies24,094 337 1 24,430 1.96 %
Total mortgage-backed securities489,155 10,555 3,400 496,310 2.05 %
Investment securities
US Treasury securities
Due less than 1 year10,737 88 — 10,825 1.48 %
Obligations of US government-sponsored agencies
Due less than 1 year1,182 1 — 1,183 1.40 %
Other debt securities
Due less than 1 year500 — — 500 0.57 %
Due from 1 to 5 years1,847 48 — 1,895 5.43 %
Total other debt securities2,347 48 — 2,395 4.39 %
Total investment securities14,266 137 — 14,403 1.95 %
Total securities available for sale$503,421 $10,692 $3,400 $510,713 2.05 %
December 31, 2021
Amortized CostGross Unrealized GainsGross Unrealized LossesFair
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 June 30, 2022 include $231.8 million pledged to secure government deposits, derivatives and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $231.3 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, 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 June 30, 2022 and December 31, 2021, most securities held by OFG are issued by U.S. government entities and government-sponsored agencies that have a zero-credit loss assumption.
At both June 30, 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 six-month periods ended June 30, 2022 and 2021, OFG retained securitized GNMA pools totaling $53.5 million and $84.0 million amortized cost, respectively, at a yield of 3.11% and 2.66%, respectively, from its own originations.
There were no sales of securities during the six-month periods ended June 30, 2022 and 2021.
The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity at June 30, 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:
June 30, 2022
12 months or more
Amortized
Cost		Unrealized
Loss		Fair
Value
(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates$89,333 $15,279 $74,054 
GNMA certificates499 73 426 
$89,832 $15,352 $74,480 
June 30, 2022
Less than 12 months
Amortized
Cost		Unrealized
Loss		Fair
Value
(In thousands)
Securities available-for-sale
CMOs issued by US Government-sponsored agencies$19,123 $483 $18,640 
FNMA and FHLMC certificates664,722 20,024 644,698 
GNMA certificates282,987 24,135 258,852 
US Treasury securities734 1 733 
Other debt securities298 1 297 
967,864 44,644 923,220 
Held-to-maturity
FNMA and FHLMC certificates$351,016 $47,628 $303,388 
June 30, 2022
Total
Amortized
Cost		Unrealized
Loss		Fair
Value
(In thousands)
Securities available-for-sale
CMOs issued by US Government-sponsored agencies$19,123 $483 $18,640 
FNMA and FHLMC certificates754,055 35,303 718,752 
GNMA certificates283,486 24,208 259,278 
US Treasury Securities734 1 733 
Other debt securities298 1 297 
1,057,696 59,996 997,700 
Held-to-maturity
FNMA and FHLMC certificates$351,016 $47,628 $303,388 
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 certificates93,440 3,200 90,240 
GNMA certificates5,022 199 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.