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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

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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- Definition

Tabular disclosure of financial instrument measured at fair value on recurring or nonrecurring basis. Includes, but is not limited to, instrument classified in shareholders' equity.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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