v3.25.2
INVESTMENT SECURITIES
 6 Months Ended
Jun. 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 June 30, 2025 and December 31, 2024, money market instruments included as part of cash and cash equivalents amounted to $7.3 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 June 30, 2025 and December 31, 2024 were as follows:
June 30, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesFair
Value		Weighted Average Yield
(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years$1,978,009 $18,115 $45,911 $1,950,213 4.53 %
GNMA certificates
Due from 5 to 10 years4,012 — 91 3,921 1.76 %
Due after 10 years477,736 6,533 35,373 448,896 3.71 %
Total GNMA certificates481,748 6,533 35,464 452,817 3.69 %
CMOs issued by US government-sponsored agencies
Due after 10 years3,998 — 72 3,926 2.36 %
Total mortgage-backed securities2,463,755 24,648 81,447 2,406,956 4.36 %
Investment securities
US Treasury securities
Due less than 1 year1,399 — — 1,399 4.20 %
Other debt securities
Due from 1 to 5 years500 — — 500 2.35 %
Due after 10 years19 — — 19 2.97 %
Total other debt securities519 — — 519 2.37 %
Total investment securities1,918 — — 1,918 3.71 %
Total securities available for sale$2,465,673 $24,648 $81,447 $2,408,874 4.36 %
June 30, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesFair
Value		Weighted Average Yield
(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years$281,186 $— $51,470 $229,716 1.73 %
Other debt securities
Due from 1 to 5 years35,000 13 — 35,013 5.32 %
Total securities held to maturity$316,186 $13 $51,470 $264,729 2.13 %
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair
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 years23,664 — 1,415 22,249 1.90 %
Due after 10 years1,943,193 5,545 72,449 1,876,289 4.51 %
Total FNMA and FHLMC certificates1,981,787 5,545 74,451 1,912,881 4.46 %
GNMA certificates
Due from 1 to 5 years6,215 — 177 6,038 1.74 %
Due from 5 to 10 years11,358 10 641 10,727 2.25 %
Due after 10 years437,308 4,058 40,146 401,220 3.63 %
Total GNMA certificates454,881 4,068 40,964 417,985 3.57 %
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years5,015 — 126 4,889 1.78 %
Due after 10 years753 — 3 750 5.07 %
Total CMOs issued by US government-sponsored agencies5,768 — 129 5,639 2.21 %
Total mortgage-backed securities2,442,436 9,613 115,544 2,336,505 4.29 %
Investment securities
US Treasury securities
Due less than 1 year1,149 1 — 1,150 4.85 %
Other debt securities
Due from 1 to 5 years550 — — 550 2.41 %
Total investment securities1,699 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 CostGross Unrealized GainsGross Unrealized LossesFair
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 %
Total FNMA and FHLMC certificates292,158 — 60,006 232,152 1.73 %
Investment securities
Other debt securities
Due from 1 to 5 years35,000 22 — 35,022 5.53 %
Total securities held to maturity$327,158 $22 $60,006 $267,174 2.13 %
As of June 30, 2025 and December 31, 2024, accrued interest receivable excluded in amortized cost of investment securities totaled $11.2 million and $10.8 million, respectively, and is 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 June 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 June 30, 2025, include $1.680 billion pledged to secure government deposits, regulatory collateral, and borrowings, of which $1.609 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.
At June 30, 2025, the Bank’s IBEs, OIB and Oriental Overseas, each held short-term US Treasury securities in the amount of $775 thousand and $525 thousand, respectively, as the legal reserve required for international banking entities under Puerto Rico law. At December 31, 2024, the Bank’s IBEs held short-term US Treasury securities in the amount of $525 thousand 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 six-month periods ended June 30, 2025 and 2024, OFG retained securitized Government National Mortgage Association (“GNMA”) pools totaling $42.0 million and $38.1 million, respectively, at a yield of 4.74% and 5.09%, respectively, from its own originations.
During the six-month period ended June 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 six-month period ended June 30, 2025.
Six-Month Period Ended June 30, 2024
DescriptionSale PriceBook Value at SaleGross GainsGross 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 June 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:

June 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$362,460 $3,107 $555,655 $42,804 $918,115 $45,911 
GNMA certificates73,352 1,337 196,593 34,127 269,945 35,464 
CMOs issued by US Government-sponsored agencies— — 3,926 72 3,926 72 
$435,812 $4,444 $756,174 $77,003 $1,191,986 $81,447 

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 certificates83,773 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.