v3.25.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 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:
June 30, 2025
Fair Value Measurements
Level 1Level 2Level 3Total
(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale$1,399 $2,407,475 $— $2,408,874 
Trading securities— 18 — 18 
Money market investments7,306 — — 7,306 
Servicing assets— — 68,588 68,588 
$8,705 $2,407,493 $68,588 $2,484,786 
Non-recurring fair value measurements:
Collateral dependent loans$— $— $6,435 $6,435 
Foreclosed real estate— — 2,603 2,603 
Other repossessed assets— — 4,760 4,760 
Mortgage loans held for sale— — 14,590 14,590 
Other loans held for sale— — 4,362 4,362 
$— $— $32,750 $32,750 
December 31, 2024
Fair Value Measurements
Level 1Level 2Level 3Total
(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 investments6,670 — — 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 and six-month periods ended June 30, 2025 and 2024:
Level 3 Instruments Only
Quarter Ended June 30,
20252024
Servicing Assets
(In thousands)
Balance at beginning period$69,238 $49,553 
New instruments acquired751 303 
Principal repayments and amortization(1,346)(732)
(Losses) gains included in earnings(55)665 
Balance at end of period$68,588 $49,789 
Six-Month Period Ended June 30,
20252024
Servicing Assets
(In thousands)
Balance at beginning of period$70,435 $49,520 
New instruments acquired1,410 830 
Principal repayments and amortization(2,608)(1,652)
(Losses) gains included in earnings(649)1,091 
Balance at end of period$68,588 $49,789 
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 June 30, 2025 and December 31, 2024:
June 30, 2025
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(In thousands)
Servicing assets$68,588 Cash flow valuationConstant prepayment rate
1.00% - 18.42%
5.65 %
Discount rate
10.00% - 15.50%
11.61 %
Collateral dependent loans
$6,435 Fair value of property
or collateral		Appraised value less disposition costs
9.20% - 33.20%
20.33 %
Foreclosed real estate$2,603 Fair value of property
or collateral		Appraised value less disposition costs
9.20% - 33.20%
13.21 %
Other repossessed assets$4,760 Fair value of property
or collateral		Estimated net realizable value less disposition costs
33.00% - 63.00%
51.02 %
Mortgage loans held for sale$14,590 Market pricesPricing and execution whole loan
92.70% - 100.62%
97.66 %
Other loans held for sale$4,362 Bids or sales contract pricesEstimated market value
103.16% - 103.16%
103.16 %
December 31, 2024
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(In thousands)
Servicing assets$70,435 Cash flow valuationConstant 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 propertyEstimated net realizable value
89.38% - 101.38%
95.01%
Other loans held for sale$4,446 Bids or sales contract pricesEstimated 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 June 30, 2025 and December 31, 2024 was as follows:
June 30, 2025December 31, 2024
Fair
Value		Carrying
Value		Fair
Value		Carrying
Value
(In thousands)
Financial Assets:
Level 1
Cash and cash equivalents$851,798 $851,798 $591,137 $591,137 
Investment securities available-for-sale$1,399 $1,399 $1,150 $1,150 
Level 2
Financial Assets:
Trading securities$18 $18 $18 $18 
Investment securities available-for-sale$2,407,475 $2,407,475 $2,337,055 $2,337,055 
Investment securities held-to-maturity$229,716 $281,186 $232,152 $292,158 
Federal Home Loan Bank (FHLB) stock$27,421 $27,421 $24,280 $24,280 
Equity securities$32,135 $32,135 $30,616 $30,616 
Level 3
Financial Assets:
Investment securities held-to-maturity$35,013 $35,000 $35,022 $35,000 
Total loans, net (including loans held-for-sale)
$7,946,890 $8,009,599 $7,567,075 $7,633,831 
Accrued interest receivable$73,782 $73,782 $71,667 $71,667 
Servicing assets$68,588 $68,588 $70,435 $70,435 
Accounts receivable and other assets$65,416 $65,416 $70,191 $70,191 
Financial Liabilities:
Deposits$10,172,396 $10,144,165 $9,625,803 $9,604,786 
Securities sold under agreements to repurchase$27,354 $27,463 $75,226 $75,222 
Advances from FHLB$456,276 $456,530 $324,510 $325,952 
Accrued expenses and other liabilities$173,599 $173,599 $146,771 $146,771