INVESTMENT SECURITIES (Tables)

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

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, 2025 and December 31, 2024 were as follows:


	March 31, 2025
	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 after 10 years	2,009,222		14,708		52,572		1,971,358		4.51	%

GNMA certificates


Due from 5 to 10 years	5,040		—		125		4,915		1.75	%
Due after 10 years	462,132		5,867		35,601		432,398		3.65	%
Total GNMA certificates	467,172		5,867		35,726		437,313		3.63	%
CMOs issued by US government-sponsored agencies



Due after 10 years	4,843		—		94		4,749		2.28	%

Total mortgage-backed securities	2,481,237		20,575		88,392		2,413,420		4.34	%
Investment securities
US Treasury securities
Due less than 1 year	1,384		—		—		1,384		4.23	%










Other debt securities

Due from 1 to 5 years	500		—		—		500		2.35	%

Due after 10 years	33		—		—		33		2.97	%
Total other debt securities	533		—		—		533		2.39	%
Total investment securities	1,917		—		—		1,917		3.72	%
Total securities available for sale	$	2,483,154	$	20,575	$	88,392	$	2,415,337	4.34	%

	March 31, 2025
	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	$	286,824	$	—	$	53,866	$	232,958	1.73	%








Other debt securities

Due from 1 to 5 years	35,000		18		—		35,018		5.32	%
Total securities held to maturity	$	321,824	$	18	$	53,866	$	267,976	2.12	%


	December 31, 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	$	14,930	—		$	587	$	14,343	2.07	%
Due from 5 to 10 years	23,664		—		1,415		22,249		1.90	%
Due after 10 years	1,943,193		5,545		72,449		1,876,289		4.51	%
Total FNMA and FHLMC certificates	1,981,787		5,545		74,451		1,912,881		4.46	%
GNMA certificates

Due from 1 to 5 years	6,215		—		177		6,038		1.74	%
Due from 5 to 10 years	11,358		10		641		10,727		2.25	%
Due after 10 years	437,308		4,058		40,146		401,220		3.63	%
Total GNMA certificates	454,881		4,068		40,964		417,985		3.57	%
CMOs issued by US government-sponsored agencies

Due from 1 to 5 years	5,015		—		126		4,889		1.78	%

Due after 10 years	753		—		3		750		5.07	%
Total CMOs issued by US government-sponsored agencies	5,768		—		129		5,639		2.21	%
Total mortgage-backed securities	2,442,436		9,613		115,544		2,336,505		4.29	%
Investment securities
US Treasury securities
Due less than 1 year	1,149		1		—		1,150		4.85	%










Other debt securities

Due from 1 to 5 years	550		—		—		550		2.41	%



Total investment securities	1,699		1		—		1,700		4.06	%
Total securities available for sale	$	2,444,135	$	9,614	$	115,544	$	2,338,205	4.29	%


	December 31, 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	$	292,158	$	—	$	60,006	$	232,152	1.73	%

Investment securities
US Treasury securities
Due from 1 to 5 years	35,000		22		—		35,022		5.53	%




Total securities held to maturity	$	327,158	$	22	$	60,006	$	267,174	2.13	%

Schedule of Gross Realized Gains and Losses by Category


	Quarter Ended March 31, 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

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 March 31, 2025 and December 31, 2024, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:


	March 31, 2025
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	406,272	$	3,984	$	571,505	$	48,588	$	977,777	$	52,572
GNMA certificates	65,244		1,093		200,797		34,633		266,041		35,726

CMOs issued by US Government-sponsored agencies	—		—		4,749		94		4,749		94

	$	471,516	$	5,077	$	777,051	$	83,315	$	1,248,567	$	88,392

The unrealized losses on OFG’s investment in federal agency mortgage-backed securities were caused by market volatility related to market uncertainty tied to interest rate fluctuations. 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, 2024
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	791,987	$	12,989	$	579,727	$	61,462	$	1,371,714	$	74,451
GNMA certificates	83,773		2,019		201,320		38,945		285,093		40,964
CMOs issued by US Government-sponsored agencies	—		—		5,639		129		5,639		129


	$	875,760	$	15,008	$	786,686	$	100,536	$	1,662,446	$	115,544