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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2023
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, 2023 and December 31, 2022, money market instruments included as part of cash and cash equivalents amounted to $3.2 million and $4.2 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, 2023 and December 31, 2022 were as follows:
March 31, 2023
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$9,307 $— $440 $8,867 1.76 %
Due from 5 to 10 years55,558 — 3,627 51,931 2.00 %
Due after 10 years754,720 235 55,610 699,345 2.89 %
Total FNMA and FHLMC certificates819,585 235 59,677 760,143 2.81 %
GNMA Securities
Due from 1 to 5 years11,053 — 476 10,577 1.66 %
Due from 5 to 10 years23,129 20 1,309 21,840 2.14 %
Due after 10 years333,042 1,946 31,130 303,858 3.01 %
Total GNMA certificates367,224 1,966 32,915 336,275 2.92 %
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years12,811 — 624 12,187 1.78 %
Due from 5 to 10 years377 — 7 370 2.14 %
Due after 10 years932 — 18 914 5.06 %
Total CMOs issued by US government-sponsored agencies14,120 — 649 13,471 2.00 %
Total mortgage-backed securities1,200,929 2,201 93,241 1,109,889 2.83 %
Investment securities
US Treasury securities
Due less than 1 year243,203 4 1,109 242,098 3.41 %
Other debt securities
Due less than 1 year376 37 — 413 7.00 %
Due from 1 to 5 years710 — 4 706 3.17 %
Total other debt securities1,086 37 4 1,119 4.49 %
Total investment securities244,289 41 1,113 243,217 3.41 %
Total securities available for sale$1,445,218 $2,242 $94,354 $1,353,106 2.93 %
March 31, 2023
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$332,852 $— $56,683 $276,169 1.72 %
Investment securities
US Treasury securities
Due from 1 to 5 years198,028 — 2,582 195,446 3.36 %
Total securities held to maturity$530,880 $— $59,265 $471,615 2.34 %
December 31, 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$10,155 — $550 $9,605 1.76 %
Due from 5 to 10 years59,167 — 3,764 55,403 2.00 %
Due after 10 years768,381 59 65,332 703,108 2.87 %
Total FNMA and FHLMC certificates837,703 59 69,646 768,116 2.79 %
GNMA Securities
Due from 1 to 5 years12,505 — 632 11,873 1.66 %
Due from 5 to 10 years24,575 14 1,585 23,004 2.13 %
Due after 10 years320,417 892 36,652 284,657 2.90 %
Total GNMA certificates357,497 906 38,869 319,534 2.80 %
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years14,190 — 755 13,435 1.78 %
Due from 5 to 10 years485 — 10 475 2.14 %
Due after 10 years959 — 18 941 5.06 %
Total CMOs issued by US government-sponsored agencies15,634 — 783 14,851 1.99 %
Total mortgage-backed securities1,210,834 965 109,298 1,102,501 2.79 %
Investment securities
US Treasury securities
Due less than 1 year310,862 — 1,729 309,133 3.34 %
Other debt securities
Due from 1 to 5 years1,116 30 4 1,142 4.45 %
Total investment securities311,978 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 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$337,435 $— $62,358 $275,077 1.71 %
Investment securities
US Treasury securities
Due from 1 to 5 years197,635 — 3,526 194,109 3.36 %
Total securities held to maturity$535,070 $— $65,884 $469,186 2.30 %
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 March 31, 2023 and December 31, 2022, 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 March 31, 2023 include $265.8 million pledged to secure government deposits, derivatives, and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $265.3 million serve as collateral for public funds. Investment securities as of 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.
At both March 31, 2023 and December 31, 2022, 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 (the “OCFI”).
During the quarters ended March 31, 2023 and 2022, OFG retained securitized GNMA pools totaling $16.5 million and $24.0 million amortized cost, respectively, at a yield of 5.19% and 2.37%, respectively, from its own originations. Also, during the quarter ended March 31, 2023, OFG retained FNMA pools totaling $4.9 million, at a yield of 5.30%, from its own originations. OFG did not retain FNMA pools during the first quarter of 2022.
During the quarters ended March 31, 2023 and 2022, OFG purchased $718 thousand and $325 thousand, respectively, of available for sale US Treasury securities.
There were no sales of securities during the quarters ended March 31, 2023 and 2022. OFG has the intent and ability to hold its held to maturity investment securities until the recovery in value.
The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity at March 31, 2023 and December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
March 31, 2023
12 months or more
Amortized
Cost		Unrealized
Loss		Fair
Value
(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates$508,868 $48,105 $460,763 
GNMA certificates259,933 31,303 228,630 
CMOs issued by US Government-sponsored agencies14,120 649 13,471 
$782,921 $80,057 $702,864 
Held-to-maturity
FNMA and FHLMC certificates$332,852 $56,683 $276,169 
March 31, 2023
Less than 12 months
Amortized
Cost		Unrealized
Loss		Fair
Value
(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates296,396 11,572 284,824 
GNMA certificates55,584 1,612 53,972 
US Treasury securities203,081 1,109 201,972 
Other debt securities210 4 206 
$555,271 $14,297 $540,974 
Held-to-maturity
US Treasury securities198,028 2,582 195,446 
March 31, 2023
Total
Amortized
Cost		Unrealized
Loss		Fair
Value
(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates$805,264 $59,677 $745,587 
GNMA certificates315,517 32,915 282,602 
CMOs issued by US Government-sponsored agencies14,120 649 13,471 
US Treasury securities203,081 1,109 201,972 
Other debt securities210 4 206 
$1,338,192 $94,354 $1,243,838 
Held-to-maturity
FNMA and FHLMC certificates$332,852 $56,683 $276,169 
US Treasury securities198,028 2,582 195,446 
$530,880 $59,265 $471,615 
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 certificates88,600 18,989 69,611 
GNMA certificates82,074 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 certificates745,566 50,657 694,909 
GNMA certificates251,835 24,838 226,997 
US Treasury securities310,862 1,729 309,133 
Other debt securities240 4 236 
$1,323,800 $78,004 $1,245,796 
Held-to-maturity
US Treasury securities$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 certificates834,166 69,646 764,520 
GNMA certificates333,909 38,869 295,040 
US Treasury securities310,862 1,729 309,133 
Other debt securities240 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 securities197,635 3,526 194,109 
$535,070 $65,884 $469,186