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INVESTMENT SECURITIES | 12 Months Ended
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Dec. 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 December 31, 2022 and 2021, money market instruments included as part of cash and cash equivalents amounted to $4.2 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 December 31, 2022 and 2021 were as follows:
| December 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 | $ | 10,155 |  |  | $ | — |  |  | $ | 550 |  |  | $ | 9,605 |  |  | 1.76 | %
Due from 5 to 10 years | 59,167 |  |  | — |  |  | 3,764 |  |  | 55,403 |  |  | 2.00 | %
Due after 10 years | 768,381 |  |  | 59 |  |  | 65,332 |  |  | 703,108 |  |  | 2.87 | %
Total FNMA and FHLMC certificates | 837,703 |  |  | 59 |  |  | 69,646 |  |  | 768,116 |  |  | 2.79 | %
GNMA Securities |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 12,505 |  |  | — |  |  | 632 |  |  | 11,873 |  |  | 1.66 | %
Due from 5 to 10 years | 24,575 |  |  | 14 |  |  | 1,585 |  |  | 23,004 |  |  | 2.13 | %
Due after 10 years | 320,417 |  |  | 892 |  |  | 36,652 |  |  | 284,657 |  |  | 2.90 | %
Total GNMA certificates | 357,497 |  |  | 906 |  |  | 38,869 |  |  | 319,534 |  |  | 2.80 | %
CMOs issued by US government-sponsored agencies |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 14,190 |  |  | — |  |  | 755 |  |  | 13,435 |  |  | 1.78 | %
Due from 5 to 10 years | 485 |  |  | — |  |  | 10 |  |  | 475 |  |  | 2.14 | %
Due after 10 years | 959 |  |  | — |  |  | 18 |  |  | 941 |  |  | 5.06 | %
Total CMOs issued by US government-sponsored agencies | 15,634 |  |  | — |  |  | 783 |  |  | 14,851 |  |  | 1.99 | %
Total mortgage-backed securities | 1,210,834 |  |  | 965 |  |  | 109,298 |  |  | 1,102,501 |  |  | 2.79 | %
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 310,862 |  |  | — |  |  | 1,729 |  |  | 309,133 |  |  | 3.34 | %
Other debt securities |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 1,116 |  |  | 30 |  |  | 4 |  |  | 1,142 |  |  | 4.45 | %
Total investment securities | 311,978 |  |  | 30 |  |  | 1,733 |  |  | 310,275 |  |  | 3.35 | %
Total securities available for sale | $ | 1,522,812 |  |  | $ | 995 |  |  | $ | 111,031 |  |  | $ | 1,412,776 |  |  | 2.90 | %
| December 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 | $ | 337,435 |  |  | $ | — |  |  | $ | 62,358 |  |  | $ | 275,077 |  |  | 1.71 | %
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 197,635 |  |  | — |  |  | 3,526 |  |  | 194,109 |  |  | 3.36 | %
Total securities held-to-maturity | $ | 535,070 |  |  | $ | — |  |  | $ | 65,884 |  |  | $ | 469,186 |  |  | 2.30 | %
| 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 | %
Obligations of US government-sponsored agencies |  |  |  |  |  |  |  |  |
Due less than 1 year | 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 | %
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. 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. At December 31, 2022 and 2021, most securities held by OFG are issued by U.S. government entities and government-sponsored agencies that have a zero-credit loss assumption. Investment securities at December 31, 2022 include $294.2 million pledged to secure government deposits, derivatives, and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $293.7 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, of which $143.8 million serve as collateral for public funds. At both December 31, 2022 and 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 2022, 2021 and 2020, OFG retained securitized GNMA pools totaling $112.4 million, $149.1 million, and $90.1 million amortized cost, respectively, at a yield of 3.90%, 2.45%, and 2.48%, respectively, from its own originations. Also, during 2022, OFG retained FNMA pools totaling $13.7 million, at a yield of 4.97%, from its own originations. OFG did not retain FNMA pools during 2021 and 2020. During 2022, OFG purchased $550 million of available for sale US Treasury securities and $200 million of held to maturity US Treasury securities. During 2021, OFG did not purchase US Treasury securities. During 2020, OFG purchased $75 million of available for sale short-term US Treasury securities that matured before year end. US Treasury securities are exempt of income taxes. During 2022, OFG sold $242.4 million of available for sale US Treasury securities and recognized a $247 thousand loss in the sale. During 2021 and 2020, OFG sold $2.2 million and $316.3 million, respectively, of available-for-sale mortgage-backed securities and recognized gains of $19 thousand and $4.7 million, respectively. These losses and gains are included in the consolidated statements of operations.
|  | Year Ended December 31, 2022
Description |  | Sale Price |  | Book Value at Sale |  | Gross Gains |  | Gross Losses
|  | (In thousands)
Sale of securities available-for-sale |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |
US Treasury securities |  | $ | 242,126 |  |  | $ | 242,373 |  |  | $ | — |  |  | $ | 247 |
|  | Year Ended December 31, 2021
Description |  | Sale Price |  | Book Value at Sale |  | Gross Gains |  | Gross Losses
|  | (In thousands)
Sale of securities available-for-sale |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  |  |  |  |  |  |
GNMA certificates |  | $ | 2,175 |  |  | $ | 2,156 |  |  | $ | 19 |  |  | $ | — |
|  | Year Ended December 31, 2020
Description |  | Sale Price |  | Book Value 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 mortgage-backed securities |  | $ | 320,984 |  |  | $ | 316,256 |  |  | $ | 4,728 |  |  | $ | — |
The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity at December 31, 2022 and 2021, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
| December 31, 2022
| 12 months or more
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
CMOs issued by US Government-sponsored agencies | 337 |  |  | 7 |  |  | 330 |
FNMA and FHLMC certificates | $ | 88,600 |  |  | $ | 18,989 |  |  | $ | 69,611 |
GNMA certificates | 82,074 |  |  | 14,031 |  |  | 68,043 |
| $ | 171,011 |  |  | $ | 33,027 |  |  | $ | 137,984 |
Held-to-maturity |  |  |  |  |
FNMA and FHLMC certificates | $ | 337,435 |  |  | $ | 62,358 |  |  | $ | 275,077 |
| December 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 | $ | 15,297 |  |  | $ | 776 |  |  | $ | 14,521 |
FNMA and FHLMC certificates | 745,566 |  |  | 50,657 |  |  | 694,909 |
GNMA certificates | 251,835 |  |  | 24,838 |  |  | 226,997 |
US Treasury securities | 310,862 |  |  | 1,729 |  |  | 309,133 |
Other debt securities | 240 |  |  | 4 |  |  | 236 |
| $ | 1,323,800 |  |  | $ | 78,004 |  |  | $ | 1,245,796 |
Held-to-maturity |  |  |  |  |
FNMA and FHLMC certificates | $ | — |  |  | $ | — |  |  | $ | — |
US Treasury securities | 197,635 |  |  | 3,526 |  |  | 194,109 |
| $ | 197,635 |  |  | $ | 3,526 |  |  | $ | 194,109 |
| December 31, 2022
| Total
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
CMOs issued by US Government-sponsored agencies | $ | 15,634 |  |  | $ | 783 |  |  | $ | 14,851 |
FNMA and FHLMC certificates | 834,166 |  |  | 69,646 |  |  | 764,520 |
GNMA certificates | 333,909 |  |  | 38,869 |  |  | 295,040 |
US Treasury securities | 310,862 |  |  | 1,729 |  |  | 309,133 |
Other debt securities | 240 |  |  | 4 |  |  | 236 |
| $ | 1,494,811 |  |  | $ | 111,031 |  |  | $ | 1,383,780 |
Held-to-maturity |  |  |  |  |
FNMA and FHLMC certificates | $ | 337,435 |  |  | $ | 62,358 |  |  | $ | 275,077 |
US Treasury securities | 197,635 |  |  | 3,526 |  |  | 194,109 |
| $ | 535,070 |  |  | $ | 65,884 |  |  | $ | 469,186 |
| 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 https://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 https://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 https://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 https://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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