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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities on Recurring and Non-Recurring Basis

Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below:

			December 31, 2022
			Fair Value Measurements
			Level 1						Level 2						Level 3						Total
			(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale			$	309,133					$	1,103,237					$	406					$	1,412,776
Trading securities			—						9						—						9
Money market investments			4,161						—						—						4,161
Derivative assets			—						406						—						406
Servicing assets			—						—						50,921						50,921
			$	313,294					$	1,103,652					$	51,327					$	1,468,273
Non-recurring fair value measurements:
Collateral dependent loans			$	—					$	—					$	8,805					$	8,805
Foreclosed real estate			—						—						11,214						11,214
Other repossessed assets			—						—						4,617						4,617
Mortgage loans held for sale			—						—						19,499						19,499
Other loans held for sale			$	—					$	—					$	21,088					21,088
			$	—					$	—					$	65,223					$	65,223

			December 31, 2021
			Fair Value Measurements
			Level 1						Level 2						Level 3						Total
			(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale			$	10,825					$	498,358					$	1,530					$	510,713
Trading securities			—						20						—						20
Money market investments			8,952						—						—						8,952
Derivative assets			—						1						—						1
Servicing assets			—						—						48,973						48,973
Derivative liabilities			—						(804)						—						(804)
			$	19,777					$	497,575					$	50,503					$	567,855
Non-recurring fair value measurements:
Collateral dependent loans			$	—					$	—					$	10,233					$	10,233
Foreclosed real estate			—						—						15,039						15,039
Other repossessed assets			—						—						1,945						1,945
Mortgage loans held for sale			—						—						51,096						51,096
Other loans held for sale			$	—					$	—					$	31,566					31,566
			$	—					$	—					$	109,879					$	109,879

Schedule of Reconciliation of Assets and Liabilities Using Significant Unobservable Inputs (Level 3)

The tables below present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for 2022, 2021 and 2020:

Level 3 Instruments Only

			Year Ended December 31,
			2022												2021												2020
			Other debt securities available for sale			Servicing Assets			Total						Other debt securities available for sale			Servicing Assets			Total						Servicing Assets
			(In thousands)
Balance at beginning year			$	1,530		$	48,973		$	50,503					$	—		$	47,295		$	47,295					$	50,779
New instruments acquired			376			3,998			4,374						—			6,089			$	6,089					2,394
Transfer from Level 2			—			—			—						1,500			—			$	1,500					—
Principal repayments and amortization			—			(5,312)			(5,312)						—			(6,738)			$	(6,738)					(4,067)
Instrument converted to equity security			(1,581)			—			(1,581)						—			—			—						—
Gains included in earnings			—			3,262			3,262						—			2,327			$	2,327					(1,811)
Gains included in other comprehensive income			81			—			81						30			—			$	30					—
Balance at end of year			$	406		$	50,921		$	51,327					$	1,530		$	48,973		$	50,503					$	47,295

Schedule of Qualitative Information for Assets and Liabilities

The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at December 31, 2022 and 2021:

			December 31, 2022
			Fair Value						Valuation Technique						Unobservable Input						Range						Weighted Average
			(In thousands)
Other debt securities available-for-sale			$	406					Cash flow valuation						Credit Rating						Baa1 - Baa3						Baa2
															Probability of Default Rate						0.15% - 2.12%						0.15		%
															Recovery Rate						34.73		%				34.73		%
Servicing assets			$	50,921					Cash flow valuation						Constant prepayment rate						3.43% - 21.20%						5.66		%
															Discount rate						10.00% - 15.50%						11.45		%
Collateral dependent loans			$	8,805					Fair value of property or collateral						Appraised value less disposition costs						10.20% - 51.20%						17.11		%
Foreclosed real estate			$	11,214					Fair value of property or collateral						Appraised value less disposition costs						10.20% - 33.20%						11.81		%
Other repossessed assets			$	4,617					Fair value of property or collateral						Estimated net realizable value less disposition costs						22.00% - 80.00%						58.49		%
Mortgage loans held for sale			$	19,499					Fair value of property						Estimated net realizable value						83.25% - 102.43%						71.86		%
Other loans held for sale			$	21,088					Bids or sales contract prices						Estimated market value						100.00% - 103.20%						74.65		%

			December 31, 2021
			Fair Value						Valuation Technique						Unobservable Input						Range						Weighted Average
			(In thousands)
Other debt securities available-for-sale			$	1,530					Cash flow valuation						Credit Rating						Baa1 - Baa3						Baa2
															Probability of Default Rate						0.16% - 2.28%						0.35		%
															Recovery Rate						33.08%						33.08		%
Servicing assets			$	48,973					Cash flow valuation						Constant prepayment rate						3.90% - 24.48%						6.17		%
															Discount rate						10.00% - 15.50%						11.47		%
Collateral dependent loans			$	10,233					Fair value of property or collateral						Appraised value less disposition costs						10.20% - 30.20%						20.20		%
Foreclosed real estate			$	15,039					Fair value of property or collateral						Appraised value less disposition costs						10.20% - 30.20%						12.54		%
Other repossessed assets			$	1,945					Fair value of property or collateral						Estimated net realizable value less disposition costs						39.00% - 80.00%						60.54		%
Mortgage loans held for sale			$	51,096					Fair value of property						Estimated net realizable value						98.43% - 106.00%						124.41%
Other loans held for sale			$	31,566					Bids or sales contract prices						Estimated market value						100.00% - 103.20%						42.54%

Schedule of Estimated Fair Value and Carrying Value

The estimated fair value and carrying value of OFG’s financial instruments at December 31, 2022 and 2021 was as follows:

			December 31,
			2022												2021
			Fair Value						Carrying Value						Fair Value						Carrying Value
			(In thousands)
Financial Assets:
Level 1
Cash and cash equivalents			$	550,307					$	550,307					$	2,023,475					$	2,023,475
Restricted cash			$	157					$	157					$	175					$	175
Investment securities available-for-sale			$	309,133					$	309,133					$	10,825					$	10,825
Level 2
Financial Assets:
Trading securities			$	9					$	9					$	20					$	20
Investment securities available-for-sale			$	1,103,237					$	1,103,237					$	498,358					$	498,358
Investment securities held-to-maturity			$	469,186					$	535,070					$	363,653					$	367,507
Federal Home Loan Bank (FHLB) stock			$	6,005					$	6,005					$	5,966					$	5,966
Equity securities			$	17,662					$	17,662					$	11,612					$	11,612
Derivative assets			$	406					$	406					$	1					$	1
Financial Liabilities:
Derivative liabilities			$	—					$	—					$	804					$	804
Level 3
Financial Assets:
Investment securities available for sale			$	406					$	406					$	1,530					$	1,530
Total loans (including loans held-for-sale)			$	6,467,878					$	6,723,236					$	6,197,347					$	6,329,311
Accrued interest receivable			$	62,402					$	62,402					$	56,560					$	56,560
Servicing assets			$	50,921					$	50,921					$	48,973					$	48,973
Accounts receivable and other assets			$	61,014					$	61,014					$	88,756					$	88,756
Financial Liabilities:
Deposits			$	8,556,300					$	8,568,364					$	8,614,073					$	8,603,118
Advances from FHLB			$	26,716					$	26,716					$	28,480					$	28,488
Other borrowings			$	318					$	318					$	—					$	—
Subordinated capital notes			$	—					$	—					$	36,084					$	36,083
Accrued expenses and other liabilities			$	124,999					$	124,999					$	96,240					$	96,240

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- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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