v3.26.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2026
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, 2026
Fair Value Measurements
Level 1Level 2Level 3Total
(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale$2,131 $2,458,041 $— $2,460,172 
Trading securities— 24 — 24 
Money market investments4,827 — — 4,827 
Servicing assets— — 67,228 67,228 
$6,958 $2,458,065 $67,228 $2,532,251 
Non-recurring fair value measurements:
Collateral-dependent loans
$— $— $4,924 $4,924 
Foreclosed real estate— — 2,037 2,037 
Other repossessed assets— — 4,310 4,310 
Mortgage loans held for sale— — 8,967 8,967 
$— $— $20,238 $20,238 
December 31, 2025
Fair Value Measurements
Level 1Level 2Level 3Total
(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale$1,651 $2,509,231 $— $2,510,882 
Trading securities— 23 — 23 
Money market investments4,261 — — 4,261 
Servicing assets— — 66,333 66,333 
$5,912 $2,509,254 $66,333 $2,581,499 
Non-recurring fair value measurements:
Collateral-dependent loans
$— $— $3,065 $3,065 
Foreclosed real estate— — 2,490 2,490 
Other repossessed assets— — 3,457 3,457 
Mortgage loans held for sale— — 12,483 12,483 
Other loans held for sale— — 3,062 3,062 
$— $— $24,557 $24,557 
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, 2026 and 2025:
Level 3 Instruments Only
Servicing Assets
Quarter Ended March 31,
20262025
(In thousands)
Balance at beginning of period
$66,333 $70,435 
New instruments acquired868 659 
Principal repayments and amortization(1,258)(1,262)
Gains (losses) included in earnings1,285 (594)
Balance at end of period
$67,228 $69,238 
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, 2026 and December 31, 2025:
March 31, 2026
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(In thousands)
Servicing assets$67,228 Cash flow valuationConstant prepayment rate
2.45% - 22.22%
5.39 %
Discount rate
10.00% - 15.50%
11.65 %
Collateral-dependent loans
$4,924 Fair value of property
or collateral		Appraised value less disposition costs
8.20% - 51.20%
27.64 %
Foreclosed real estate$2,037 Fair value of property
or collateral		Appraised value less disposition costs
8.20% - 33.20%
14.00 %
Other repossessed assets$4,310 Fair value of property
or collateral		Estimated net realizable value less disposition costs
36.00% - 71.00%
50.93 %
Mortgage loans held for sale$8,967 Market pricesPricing and execution whole loan
93.48% - 100.17%
96.12 %
December 31, 2025
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(In thousands)
Servicing assets$66,333 Cash flow valuationConstant prepayment rate
2.38% - 22.45%
5.61 %
Discount rate
10.00% - 15.50%
11.62 %
Collateral-dependent loans
$3,065 Fair value of property
or collateral		Appraised value less disposition costs
8.20% - 33.20%
24.67 %
Foreclosed real estate$2,490 Fair value of property
or collateral		Appraised value less disposition costs
8.20% - 33.20%
13.29 %
Other repossessed assets$3,457 Fair value of property
or collateral		Estimated net realizable value less disposition costs
39.00% - 70.00%
49.94 %
Mortgage loans held for sale$12,483 Fair value of propertyEstimated net realizable value
94.54% - 101.73%
97.09%
Other loans held for sale$3,062 Bids or sales contract pricesEstimated market value
34.00% - 95.24%
54.89%
Schedule of Estimated Fair Value and Carrying Value
The estimated fair value and carrying value of OFG’s financial instruments at March 31, 2026 and December 31, 2025 was as follows:
March 31,December 31,
20262025
Fair
Value		Carrying
Value		Fair
Value		Carrying
Value
(In thousands)
Financial Assets:
Level 1
Cash and cash equivalents$636,499 $636,499 $1,040,335 $1,040,335 
Investment securities available-for-sale$2,131 $2,131 $1,651 $1,651 
Level 2
Financial Assets:
Trading securities$24 $24 $23 $23 
Investment securities available-for-sale$2,458,041 $2,458,041 $2,509,231 $2,509,231 
Investment securities held-to-maturity$219,848 $264,580 $225,065 $269,498 
Federal Home Loan Bank (FHLB) stock$27,421 $27,421 $27,421 $27,421 
Equity securities$36,261 $36,261 $35,317 $35,317 
Level 3
Financial Assets:
Total loans, net (including loans held-for-sale)
$8,015,873 $8,040,074 $8,002,176 $8,014,246 
Accrued interest receivable$69,685 $69,685 $71,110 $71,110 
Servicing assets$67,228 $67,228 $66,333 $66,333 
Accounts receivable and other assets$73,250 $73,250 $68,371 $68,371 
Financial Liabilities:
Deposits$9,918,756 $9,849,272 $10,281,789 $10,262,752 
Securities sold under agreements to repurchase$100,008 $100,086 $100,037 $100,714 
Advances from FHLB$456,134 $456,581 $457,679 $456,581 
Other borrowings$— $— $9 $9 
Accrued expenses and other liabilities$229,979 $229,979 $209,997 $209,997