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INVESTMENT SECURITIES (Tables)

6 Months Ended

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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