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INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

Money Market Investments

OFG considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less at the date of acquisition. At September 30, 2025 and December 31, 2024, money market instruments included as part of cash and cash equivalents amounted to $3.3 million and $6.7 million, respectively.

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 September 30, 2025 and December 31, 2024 were as follows:

			September 30, 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			$	2,096,291					$	27,145					$	37,277					$	2,086,159					4.60		%
GNMA certificates
Due from 5 to 10 years			3,155						—						59						3,096						1.78		%
Due after 10 years			492,997						11,321						31,908						472,410						3.77		%
Total GNMA certificates			496,152						11,321						31,967						475,506						3.76		%
CMOs issued by US government-sponsored agencies
Due after 10 years			3,209						—						43						3,166						2.49		%
Total mortgage-backed securities			2,595,652						38,466						69,287						2,564,831						4.44		%
Investment securities
US Treasury securities
Due less than 1 year			1,634						1						—						1,635						4.13		%
Other debt securities
Due from 1 to 5 years			500						—						—						500						2.35		%
Due after 10 years			3						—						—						3						2.97		%
Total other debt securities			503						—						—						503						2.35		%
Total investment securities			2,137						1						—						2,138						3.71		%
Total securities available for sale			$	2,597,789					$	38,467					$	69,287					$	2,566,969					4.44		%
			September 30, 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			$	275,116					$	—					$	47,252					$	227,864					1.73		%
Other debt securities
Due from 1 to 5 years			35,000						1						—						35,001						5.27		%
Total securities held to maturity			$	310,116					$	1					$	47,252					$	262,865					2.13		%

			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
Other debt 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		%

As of September 30, 2025 and December 31, 2024, the amortized cost of investment securities excludes accrued interest receivable, included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to Note 9 – Accrued Interest Receivable and Other Assets.

Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

The weighted average yield on debt securities available-for-sale is based on amortized cost and does not give effect to changes in fair value. Weighted average yields on tax-exempt obligations have been computed on a fully taxable equivalent basis.

At September 30, 2025 and December 31, 2024, most securities held by OFG are issued by U.S. government entities and government-sponsored agencies that have a zero-credit loss assumption and, therefore, have no ACL.

Investment securities as of September 30, 2025, include $1.715 billion pledged to secure government deposits, regulatory collateral, and borrowings, of which $1.606 billion serve as collateral for public funds. Investment securities as of December 31, 2024, include $1.564 billion pledged to secure government deposits, regulatory collateral, and borrowings, of which $1.440 billion serve as collateral for public funds. For regulatory collateral, the secured parties are not permitted to sell or repledge the collateral.

The Bank’s IBEs, OIB and Oriental Overseas, both held short-term US Treasury securities in the amount of $775 thousand and $525 thousand at September 30, 2025 and December 31, 2024, respectively, as the legal reserve required for international banking entities under Puerto Rico law. These instruments cannot be withdrawn or transferred without the prior written approval of the Office of the Commissioner of Financial Institutions.

During the nine-month periods ended September 30, 2025 and 2024, OFG retained securitized Government National Mortgage Association (“GNMA”) pools totaling $64.0 million and $55.7 million, respectively, at a yield of 4.84% and 5.08%, respectively, from its own originations.

During the nine-month period ended September 30, 2024, OFG sold $149.4 million of US Treasury securities available for sale and recognized a $7 thousand loss on the sale, included in the consolidated statements of operations. There were no sales of investment securities during the nine-month period ended September 30, 2025.

						Nine-Month Period Ended September 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

The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale at September 30, 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:

						September 30, 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						$	99,560					$	412					$	553,694					$	36,865					$	653,254					$	37,277
GNMA certificates						10,010						301						225,797						31,666						235,807						31,967
CMOs issued by US government-sponsored agencies						—						—						3,166						43						3,166						43
						$	109,570					$	713					$	782,657					$	68,574					$	892,227					$	69,287

									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

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.

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The entire disclosure for investments in certain debt and equity securities.

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