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v3.25.1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended
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Mar. 31, 2025
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:
| March 31, 2025 |
| Fair Value Measurements |
| Level 1 |  | Level 2 |  | Level 3 |  | Total |
| (In thousands) |
Recurring fair value measurements: |  |  |  |  |  |  |  |
Investment securities available-for-sale | $ | 1,384 |  |  | $ | 2,413,953 |  |  | $ | — |  |  | $ | 2,415,337 |  |
Trading securities | — |  |  | 19 |  |  | — |  |  | 19 |  |
Money market investments | 7,107 |  |  | — |  |  | — |  |  | 7,107 |  |
Servicing assets | — |  |  | — |  |  | 69,238 |  |  | 69,238 |  |
| $ | 8,491 |  |  | $ | 2,413,972 |  |  | $ | 69,238 |  |  | $ | 2,491,701 |  |
Non-recurring fair value measurements: |  |  |  |  |  |  |  |
Collateral dependent loans | $ | — |  |  | $ | — |  |  | $ | 5,602 |  |  | $ | 5,602 |  |
Foreclosed real estate | — |  |  | — |  |  | 4,271 |  |  | 4,271 |  |
Other repossessed assets | — |  |  | — |  |  | 6,656 |  |  | 6,656 |  |
Mortgage loans held for sale | — |  |  | — |  |  | 12,439 |  |  | 12,439 |  |
Other loans held for sale | — |  |  | — |  |  | 4,362 |  |  | 4,362 |  |
| $ | — |  |  | $ | — |  |  | $ | 33,330 |  |  | $ | 33,330 |  |
| December 31, 2024
| Fair Value Measurements
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In thousands)
Recurring fair value measurements: |  |  |  |  |  |  |
Investment securities available-for-sale | $ | 1,150 |  |  | $ | 2,337,055 |  |  | $ | — |  |  | $ | 2,338,205 |
Trading securities | — |  |  | 18 |  |  | — |  |  | 18 |
Money market investments | 6,670 |  |  | — |  |  | — |  |  | 6,670 |
Servicing assets | — |  |  | — |  |  | 70,435 |  |  | 70,435 |
| $ | 7,820 |  |  | $ | 2,337,073 |  |  | $ | 70,435 |  |  | $ | 2,415,328 |
Non-recurring fair value measurements: |  |  |  |  |  |  |
Collateral dependent loans | $ | — |  |  | $ | — |  |  | $ | 6,877 |  |  | $ | 6,877 |
Foreclosed real estate | — |  |  | — |  |  | 4,002 |  |  | 4,002 |
Other repossessed assets | — |  |  | — |  |  | 6,595 |  |  | 6,595 |
Mortgage loans held for sale | — |  |  | — |  |  | 13,286 |  |  | 13,286 |
Other loans held for sale | $ | — |  |  | $ | — |  |  | $ | 4,446 |  |  | 4,446 |
| $ | — |  |  | $ | — |  |  | $ | 35,206 |  |  | $ | 35,206 |
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 the quarters ended March 31, 2025 and 2024: Level 3 Instruments Only
|  | Quarter Ended March 31,
|  | 2025 |  |  | 2024 |  |
|  | Servicing Assets |  |  |  |  |
|  | (In thousands) |
Balance at beginning of period |  | $ | 70,435 |  |  |  |  | $ | 49,520 |  |  |  |  |  |
New instruments acquired |  | 659 |  |  |  |  | 527 |  |  |  |  |  |
Principal repayments and amortization |  | (1,262) |  |  |  |  | (920) |  |  |  |  |  |
Gains included in earnings |  | (594) |  |  |  |  | 426 |  |  |  |  |  |
Balance at end of period |  | $ | 69,238 |  |  |  |  | $ | 49,553 |  |  |  |  |  |
Schedule of Qualitative Information for Assets and Liabilities | The table below presents quantitative information for all assets measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at March 31, 2025 and December 31, 2024:
| March 31, 2025
| Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average
| (In thousands) |  |  |  |  |  |  |  |
Servicing assets | $ | 69,238 |  |  | Cash flow valuation |  | Constant prepayment rate |  | 1.30% - 18.14% |  | 5.92 | %
|  |  |  |  | Discount rate |  | 10.00% - 15.50% |  | 11.61 | %
Collateral dependent loans | $ | 5,602 |  |  | Fair value of property or collateral |  | Appraised value less disposition costs |  | 10.20% - 33.20% |  | 20.09 | %
Foreclosed real estate | $ | 4,271 |  |  | Fair value of property or collateral |  | Appraised value less disposition costs |  | 10.20% - 33.20% |  | 13.26 | %
Other repossessed assets | $ | 6,656 |  |  | Fair value of property or collateral |  | Estimated net realizable value less disposition costs |  | 40.00% - 69.00% |  | 50.48 | %
Mortgage loans held for sale | $ | 12,439 |  |  | Market prices |  | Pricing and execution whole loan |  | 93.61% - 102.41% |  | 97.63 | %
Other loans held for sale | $ | 4,362 |  |  | Bids or sales contract prices |  | Estimated market value |  | 103.16% - 103.16% |  | 103.16 | %
| December 31, 2024
| Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average
| (In thousands) |  |  |  |  |  |  |  |
Servicing assets | $ | 70,435 |  |  | Cash flow valuation |  | Constant prepayment rate |  | 1.09% - 15.28% |  | 5.83 | %
|  |  |  |  | Discount rate |  | 10.00% - 15.50% |  | 11.61 | %
Collateral dependent loans | $ | 6,877 |  |  | Fair value of property or collateral |  | Appraised value less disposition costs |  | 10.20% - 33.20% |  | 18.14 | %
Foreclosed real estate | $ | 4,002 |  |  | Fair value of property or collateral |  | Appraised value less disposition costs |  | 10.20% - 33.20% |  | 13.16 | %
Other repossessed assets | $ | 6,595 |  |  | Fair value of property or collateral |  | Estimated net realizable value less disposition costs |  | 37.00% - 69.00% |  | 54.73 | %
Mortgage loans held for sale | $ | 13,286 |  |  | Fair value of property |  | Estimated net realizable value |  | 89.38% - 101.38% |  | 95.01%
Other loans held for sale | $ | 4,446 |  |  | Bids or sales contract prices |  | Estimated market value |  | 101.21% - 101.21% |  | 101.21%
Schedule of Estimated Fair Value and Carrying Value | The estimated fair value and carrying value of OFG’s financial instruments at March 31, 2025 and December 31, 2024 was as follows:
| March 31, 2025 |  | December 31, 2024
| Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value |  |  |  |  |  |
| (In thousands) |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Level 1 |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 710,600 |  |  | $ | 710,600 |  |  | $ | 591,137 |  |  | $ | 591,137 |  |  |  |  |  |  |
Investment securities available-for-sale | $ | 1,384 |  |  | $ | 1,384 |  |  | $ | 1,150 |  |  | $ | 1,150 |  |  |  |  |  |  |
Level 2 |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Trading securities | $ | 19 |  |  | $ | 19 |  |  | $ | 18 |  |  | $ | 18 |  |  |  |  |  |  |
Investment securities available-for-sale | $ | 2,413,953 |  |  | $ | 2,413,953 |  |  | $ | 2,337,055 |  |  | $ | 2,337,055 |  |  |  |  |  |  |
Investment securities held-to-maturity | $ | 232,958 |  |  | $ | 286,824 |  |  | $ | 232,152 |  |  | $ | 292,158 |  |  |  |  |  |  |
Federal Home Loan Bank (FHLB) stock | $ | 17,755 |  |  | $ | 17,755 |  |  | $ | 24,280 |  |  | $ | 24,280 |  |  |  |  |  |  |
Equity securities | $ | 31,030 |  |  | $ | 31,030 |  |  | $ | 30,616 |  |  | $ | 30,616 |  |  |  |  |  |  |
Level 3 |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity | $ | 35,018 |  |  | $ | 35,000 |  |  | $ | 35,022 |  |  | $ | 35,000 |  |  |  |  |  |  |
Total loans, net (including loans held-for-sale) | $ | 7,620,944 |  |  | $ | 7,688,271 |  |  | $ | 7,567,075 |  |  | $ | 7,633,831 |  |  |  |  |  |  |
Accrued interest receivable | $ | 70,029 |  |  | $ | 70,029 |  |  | $ | 71,667 |  |  | $ | 71,667 |  |  |  |  |  |  |
Servicing assets | $ | 69,238 |  |  | $ | 69,238 |  |  | $ | 70,435 |  |  | $ | 70,435 |  |  |  |  |  |  |
Accounts receivable and other assets | $ | 64,296 |  |  | $ | 64,296 |  |  | $ | 70,191 |  |  | $ | 70,191 |  |  |  |  |  |  |
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | $ | 9,964,612 |  |  | $ | 9,922,969 |  |  | $ | 9,625,803 |  |  | $ | 9,604,786 |  |  |  |  |  |  |
Securities sold under agreements to repurchase | $ | — |  |  | $ | — |  |  | $ | 75,226 |  |  | $ | 75,222 |  |  |  |  |  |  |
Advances from FHLB | $ | 255,318 |  |  | $ | 255,642 |  |  | $ | 324,510 |  |  | $ | 325,952 |  |  |  |  |  |  |
Accrued expenses and other liabilities | $ | 154,998 |  |  | $ | 154,998 |  |  | $ | 146,771 |  |  | $ | 146,771 |  |  |  |  |  |  |

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