v3.26.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 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:
June 30, 2026
Fair Value Measurements
Level 1Level 2Level 3Total
(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale$2,150 $2,370,968 $— $2,373,118 
Trading securities— 23 — 23 
Money market investments5,256 — — 5,256 
Servicing assets— — 67,867 67,867 
$7,406 $2,370,991 $67,867 $2,446,264 
Non-recurring fair value measurements:
Collateral-dependent loans$— $— $4,227 $4,227 
Foreclosed real estate— — 1,675 1,675 
Other repossessed assets— — 4,195 4,195 
Mortgage loans held for sale— — 7,822 7,822 
$— $— $17,919 $17,919 
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 and six-month periods ended June 30, 2026 and 2025:
Level 3 Instruments Only
Servicing Assets
Quarter Ended June 30,Six-Month Period Ended June 30,
2026202520262025
(In thousands)
Balance at beginning of period
$67,228 $69,238 $66,333 $70,435 
New instruments acquired600 751 1,468 1,410 
Principal repayments and amortization(1,396)(1,346)(2,654)(2,608)
Gains (losses) included in earnings1,435 (55)2,720 (649)
Balance at end of period
$67,867 $68,588 $67,867 $68,588 
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, 2026, and December 31, 2025:
June 30, 2026
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(In thousands)
Servicing assets$67,867 Cash flow valuationConstant prepayment rate
2.27% - 22.47%
5.04 %
Discount rate
10.00% - 15.50%
11.66 %
Collateral-dependent loans$4,227 Fair value of property
or collateral		Appraised value less disposition costs
8.20% - 51.20%
28.07 %
Foreclosed real estate$1,675 Fair value of property
or collateral		Appraised value less disposition costs
8.20% - 33.20%
14.67 %
Other repossessed assets$4,195 Fair value of property
or collateral		Estimated net realizable value less disposition costs
27.00% - 62.00%
51.19 %
Mortgage loans held for sale$7,822 Market pricesPricing and execution wholesale loans
92.74% - 101.74%
95.63 %
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 Market pricesPricing and execution wholesale loans
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 June 30, 2026, and December 31, 2025, was as follows:
June 30,December 31,
20262025
Fair
Value		Carrying
Value		Fair
Value		Carrying
Value
(In thousands)
Financial Assets:
Level 1
Cash and cash equivalents$745,706 $745,706 $1,040,335 $1,040,335 
Investment securities available-for-sale$2,150 $2,150 $1,651 $1,651 
Level 2
Financial Assets:
Trading securities$23 $23 $23 $23 
Investment securities available-for-sale$2,370,968 $2,370,968 $2,509,231 $2,509,231 
Investment securities held-to-maturity$214,083 $258,698 $225,065 $269,498 
Federal Home Loan Bank (FHLB) stock$27,350 $27,350 $27,421 $27,421 
Equity securities$37,467 $37,467 $35,317 $35,317 
Level 3
Financial Assets:
Total loans, net (including loans held-for-sale)$8,089,603 $8,117,021 $8,002,176 $8,014,246 
Accrued interest receivable$70,128 $70,128 $71,110 $71,110 
Servicing assets$67,867 $67,867 $66,333 $66,333 
Accounts receivable and other assets$85,221 $85,221 $68,371 $68,371 
Financial Liabilities:
Deposits$10,038,833 $9,983,128 $10,281,789 $10,262,752 
Securities sold under agreements to repurchase$99,518 $100,085 $100,037 $100,714 
Advances from FHLB$455,152 $456,530 $457,679 $456,581 
Other borrowings$— $— $9 $9 
Accrued expenses and other liabilities$166,148 $166,148 $209,997 $209,997