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INVESTMENT SECURITIES (Tables) | 6 Months Ended
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Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
Schedule of 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, 2024 and December 31, 2023 were as follows:
| June 30, 2024
| 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 | $ | 8,933 |  |  | $ | — |  |  | $ | 421 |  |  | $ | 8,512 |  |  | 1.98 | %
Due from 5 to 10 years | 36,742 |  |  | — |  |  | 2,517 |  |  | 34,225 |  |  | 1.97 | %
Due after 10 years | 1,512,171 |  |  | 5,261 |  |  | 69,008 |  |  | 1,448,424 |  |  | 4.28 | %
Total FNMA and FHLMC certificates | 1,557,846 |  |  | 5,261 |  |  | 71,946 |  |  | 1,491,161 |  |  | 4.21 | %
GNMA certificates |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 7,965 |  |  | — |  |  | 319 |  |  | 7,646 |  |  | 1.72 | %
Due from 5 to 10 years | 13,552 |  |  | 7 |  |  | 883 |  |  | 12,676 |  |  | 2.23 | %
Due after 10 years | 409,828 |  |  | 5,017 |  |  | 38,662 |  |  | 376,183 |  |  | 3.54 | %
Total GNMA certificates | 431,345 |  |  | 5,024 |  |  | 39,864 |  |  | 396,505 |  |  | 3.47 | %
CMOs issued by US government-sponsored agencies |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 6,896 |  |  | — |  |  | 274 |  |  | 6,622 |  |  | 1.78 | %
Due after 10 years | 790 |  |  | — |  |  | 11 |  |  | 779 |  |  | 5.06 | %
Total CMOs issued by US government-sponsored agencies | 7,686 |  |  | — |  |  | 285 |  |  | 7,401 |  |  | 2.11 | %
Total mortgage-backed securities | 1,996,877 |  |  | 10,285 |  |  | 112,095 |  |  | 1,895,067 |  |  | 4.04 | %
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 200,656 |  |  | 2 |  |  | — |  |  | 200,658 |  |  | 5.41 | %
Other debt securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 500 |  |  | — |  |  | — |  |  | 500 |  |  | 3.25 | %
Due from 1 to 5 years | 83 |  |  | — |  |  | 2 |  |  | 81 |  |  | 2.97 | %
Total other debt securities | 583 |  |  | — |  |  | 2 |  |  | 581 |  |  | 3.21 | %
Total investment securities | 201,239 |  |  | 2 |  |  | 2 |  |  | 201,239 |  |  | 5.41 | %
Total securities available for sale | $ | 2,198,116 |  |  | $ | 10,287 |  |  | $ | 112,097 |  |  | $ | 2,096,306 |  |  | 4.17 | %
| June 30, 2024
| 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 | $ | 303,621 |  |  | $ | — |  |  | $ | 59,256 |  |  | $ | 244,365 |  |  | 1.72 | %
Investment securities |  |  |  |  |  |  |  |  |
Other debt securities |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 35,000 |  |  | 72 |  |  | — |  |  | 35,072 |  |  | 6.33 | %
Total securities held to maturity | $ | 338,621 |  |  | $ | 72 |  |  | $ | 59,256 |  |  | $ | 279,437 |  |  | 2.20 | %
| December 31, 2023
| 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 | $ | 6,972 |  |  | — |  |  | $ | 311 |  |  | $ | 6,661 |  |  | 1.76 | %
Due from 5 to 10 years | 45,835 |  |  | — |  |  | 2,767 |  |  | 43,068 |  |  | 2.00 | %
Due after 10 years | 1,411,327 |  |  | 8,989 |  |  | 54,100 |  |  | 1,366,216 |  |  | 4.11 | %
Total FNMA and FHLMC certificates | 1,464,134 |  |  | 8,989 |  |  | 57,178 |  |  | 1,415,945 |  |  | 4.03 | %
GNMA certificates |  |  |  |  |  |  |  |  |
Due less than 1 year | 5 |  |  | — |  |  | — |  |  | 5 |  |  | 1.31 | %
Due from 1 to 5 years | 8,851 |  |  | — |  |  | 351 |  |  | 8,500 |  |  | 1.71 | %
Due from 5 to 10 years | 17,113 |  |  | 16 |  |  | 955 |  |  | 16,174 |  |  | 2.19 | %
Due after 10 years | 380,306 |  |  | 4,419 |  |  | 33,110 |  |  | 351,615 |  |  | 3.38 | %
Total GNMA certificates | 406,275 |  |  | 4,435 |  |  | 34,416 |  |  | 376,294 |  |  | 3.30 | %
CMOs issued by US government-sponsored agencies |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 9,071 |  |  | — |  |  | 364 |  |  | 8,707 |  |  | 1.78 | %
Due from 5 to 10 years | 54 |  |  | — |  |  | — |  |  | 54 |  |  | 2.14 | %
Due after 10 years | 861 |  |  | — |  |  | 12 |  |  | 849 |  |  | 5.07 | %
Total CMOs issued by US government-sponsored agencies | 9,986 |  |  | — |  |  | 376 |  |  | 9,610 |  |  | 2.06 | %
Total mortgage-backed securities | 1,880,395 |  |  | 13,424 |  |  | 91,970 |  |  | 1,801,849 |  |  | 3.86 | %
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 296,747 |  |  | 52 |  |  | — |  |  | 296,799 |  |  | 5.40 | %
Other debt securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 500 |  |  | — |  |  | — |  |  | 500 |  |  | 3.25 | %
Due from 1 to 5 years | 119 |  |  | — |  |  | 3 |  |  | 116 |  |  | 2.97 | %
Total other debt securities | 619 |  |  | — |  |  | 3 |  |  | 616 |  |  | 3.20 | %
Total investment securities | 297,366 |  |  | 52 |  |  | 3 |  |  | 297,415 |  |  | 5.39 | %
Total securities available for sale | $ | 2,177,761 |  |  | $ | 13,476 |  |  | $ | 91,973 |  |  | $ | 2,099,264 |  |  | 4.07 | %
| December 31, 2023
| 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 | $ | 314,710 |  |  | $ | — |  |  | $ | 56,767 |  |  | $ | 257,943 |  |  | 1.72 | %
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  |  |  |  |  |  |  |  |
Due less than 1 year | 199,314 |  |  | — |  |  | 1,548 |  |  | 197,766 |  |  | 3.33 | %
Other debt securities |  |  |  |  |  |  |  |  |
Due from 1 to 5 years | 35,000 |  |  | 55 |  |  | — |  |  | 35,055 |  |  | 6.36 | %
Total securities held to maturity | $ | 549,024 |  |  | $ | 55 |  |  | $ | 58,315 |  |  | $ | 490,764 |  |  | 2.60 | %
Schedule of Gross Realized Gains and Losses by Category |
|  | Six-Month Period Ended June 30, 2024 |
Description |  | Sale Price |  | Book Value at Sale |  | Gross Gains |  | Gross Losses |
|  | (In thousands) |
Sale of investment securities available-for-sale |  |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |  |
US Treasury securities |  | $ | 149,406 |  |  | $ | 149,413 |  |  | $ | — |  |  | $ | 7 |  |
|  | Six-Month Period Ended June 30, 2023
Description |  | Sale Price |  | Book Value at Sale |  | Gross Gains |  | Gross Losses
|  | (In thousands)
Sale of investment securities available-for-sale |  |  |  |  |  |  |  |
Investment securities |  |  |  |  |  |  |  |
US Treasury securities |  | $ | 202,133 |  |  | $ | 203,282 |  |  | $ | — |  |  | $ | 1,149 |
Schedule of Unrealized Gains and Losses by Category | The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale at June 30, 2024 and December 31, 2023, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
| June 30, 2024
| 12 months or more
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
FNMA and FHLMC certificates | $ | 737,230 |  |  | $ | 67,814 |  |  | $ | 669,416 |
GNMA certificates | 267,882 |  |  | 39,458 |  |  | 228,424 |
CMOs issued by US Government-sponsored agencies | 7,686 |  |  | 285 |  |  | 7,401 |
Other debt securities | 83 |  |  | 2 |  |  | 81 |
| $ | 1,012,881 |  |  | $ | 107,559 |  |  | $ | 905,322 |
| June 30, 2024
| Less than 12 months
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
FNMA and FHLMC certificates | $ | 197,672 |  |  | $ | 4,132 |  |  | $ | 193,540 |
GNMA certificates | 37,603 |  |  | 406 |  |  | 37,197 |
| $ | 235,275 |  |  | $ | 4,538 |  |  | $ | 230,737 |
| June 30, 2024
| Total
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
FNMA and FHLMC certificates | $ | 934,902 |  |  | $ | 71,946 |  |  | $ | 862,956 |
GNMA certificates | 305,485 |  |  | 39,864 |  |  | 265,621 |
CMOs issued by US Government-sponsored agencies | 7,686 |  |  | 285 |  |  | 7,401 |
Other debt securities | 83 |  |  | 2 |  |  | 81 |
| $ | 1,248,156 |  |  | $ | 112,097 |  |  | $ | 1,136,059 |
The unrealized losses on OFG’s investment in federal agency mortgage-backed securities were caused by market volatility related to interest rate increases. OFG purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government or by a government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price that is less than the amortized cost basis of OFG’s investments. OFG does not intend to sell the investments, and it is not more likely than not that OFG will be required to sell the investments before recovery of their amortized cost basis.
| December 31, 2023
| 12 months or more
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
FNMA and FHLMC certificates | $ | 731,334 |  |  | $ | 56,847 |  |  | $ | 674,487 |
GNMA certificates | 275,669 |  |  | 34,364 |  |  | 241,305 |
CMOs issued by US Government-sponsored agencies | 9,986 |  |  | 376 |  |  | 9,610 |
Other debt securities | 119 |  |  | 3 |  |  | 116 |
| $ | 1,017,108 |  |  | $ | 91,590 |  |  | $ | 925,518 |
| December 31, 2023
| Less than 12 months
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
FNMA and FHLMC certificates | $ | 106,235 |  |  | $ | 331 |  |  | $ | 105,904 |
GNMA certificates | 7,864 |  |  | 52 |  |  | 7,812 |
| $ | 114,099 |  |  | $ | 383 |  |  | $ | 113,716 |
| December 31, 2023
| Total
| Amortized Cost |  | Unrealized Loss |  | Fair Value
| (In thousands)
Securities available-for-sale |  |  |  |  |
FNMA and FHLMC certificates | $ | 837,569 |  |  | $ | 57,178 |  |  | $ | 780,391 |
GNMA certificates | 283,533 |  |  | 34,416 |  |  | 249,117 |
CMOs issued by US Government-sponsored agencies | 9,986 |  |  | 376 |  |  | 9,610 |
Other debt securities | 119 |  |  | 3 |  |  | 116 |
| $ | 1,131,207 |  |  | $ | 91,973 |  |  | $ | 1,039,234 |

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