XML 59 R49.htm IDEA: XBRL DOCUMENT v3.22.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2022
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, 2022
Fair Value Measurements
Level 1Level 2Level 3Total
(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale$10,733 $1,147,256 $1,581 $1,159,570 
Trading securities— 13 — 13 
Money market investments4,913 — — 4,913 
Derivative assets— 187 — 187 
Servicing assets— — 49,280 49,280 
Derivative liabilities— (21)— (21)
$15,646 $1,147,435 $50,861 $1,213,942 
Non-recurring fair value measurements:
Collateral dependent loans— — 21,565 21,565 
Foreclosed real estate— — 15,061 15,061 
Other repossessed assets— — 2,533 2,533 
$— $— $39,159 $39,159 
December 31, 2021
Fair Value Measurements
Level 1Level 2Level 3Total
(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale$10,825 $498,358 $1,530 $510,713 
Trading securities— 20 — 20 
Money market investments8,952 — — 8,952 
Derivative assets— 1 — 1 
Servicing assets— — 48,973 48,973 
Derivative liabilities— (804)— (804)
$19,777 $497,575 $50,503 $567,855 
Non-recurring fair value measurements:
Collateral dependent loans$— $— $10,233 $10,233 
Foreclosed real estate— — 15,039 15,039 
Other repossessed assets— — 1,945 1,945 
$— $— $27,217 $27,217 
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, 2022 and 2021:
Level 3 Instruments Only
Quarter Ended June 30,
20222021
Other debt securities available for saleServicing AssetsTotalServicing Assets
(In thousands)
Balance at beginning period$1,554 $49,446 $51,000 $47,911 
New instruments acquired— 1,150 1,150 2,023 
Principal repayments and amortization— (1,478)(1,478)(1,862)
Gains (losses) included in earnings— 162 162 (360)
Gains included in other comprehensive income27 — 27 — 
Balance at end of period$1,581 $49,280 $50,861 $47,712 
Other debt securities available for saleServicing AssetsTotalServicing Assets
Six-Month Period Ended June 30,
20222021
(In thousands)
Balance at beginning year$1,530 $48,973 $50,503 $47,295 
New instruments acquired— 2,269 2,269 3,443 
Principal repayments and amortization— (2,977)(2,977)(3,369)
Gains included in earnings— 1,015 1,015 343 
Gains included in other comprehensive income51 — 51 — 
Balance at end of year$1,581 $49,280 $50,861 $47,712 
Schedule of Qualitative Information for Assets and Liabilities
The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at June 30, 2022:
June 30, 2022
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(In thousands)
Other debt securities available-for-sale$1,581 Cash flow valuationCredit Rating
Baa1 - Baa3
Baa2
Probability of Default Rate
0.15% - 2.12%
0.15 %
Recovery Rate33.08 %33.08 %
Servicing assets$49,280 Cash flow valuationConstant prepayment rate
3.60% - 22.71%
5.90 %
Discount rate
10.00% - 15.50%
11.45 %
Collateral dependent loans$21,565 Fair value of property
or collateral		Appraised value less disposition costs
10.20% - 33.20%
17.16 %
Foreclosed real estate$15,061 Fair value of property
or collateral		Appraised value less disposition costs
10.20% - 33.20%
11.69 %
Other repossessed assets$2,533 Fair value of property
or collateral		Estimated net realizable value less disposition costs
20.00% - 90.00%
61.76 %
Schedule of Estimated Fair Value and Carrying Value
The estimated fair value and carrying value of OFG’s financial instruments at June 30, 2022 and December 31, 2021 is as follows:
June 30,December 31,
20222021
Fair
Value		Carrying
Value		Fair
Value		Carrying
Value
(In thousands)
Level 1
Financial Assets:
Cash and cash equivalents$1,307,112 $1,307,112 $2,023,475 $2,023,475 
Restricted cash$169 $169 $175 $175 
Investment securities available-for-sale$10,733 $10,733 $10,825 $10,825 
Level 2
Financial Assets:
Trading securities$13 $13 $20 $20 
Investment securities available-for-sale$1,147,256 $1,147,256 $498,358 $498,358 
Investment securities held-to-maturity$501,747 $547,832 $363,653 $367,507 
Federal Home Loan Bank (FHLB) stock$6,047 $6,047 $5,966 $5,966 
Equity securities$13,801 $13,801 $11,612 $11,612 
Derivative assets$187 $187 $1 $1 
Financial Liabilities:
Derivative liabilities$21 $21 $804 $804 
Level 3
Financial Assets:
Investment securities available for sale$1,581 $1,581 $1,530 $1,530 
Total loans (including loans held-for-sale)$6,517,268 $6,585,210 $6,197,347 $6,329,311 
Accrued interest receivable$58,371 $58,371 $56,560 $56,560 
Servicing assets$49,280 $49,280 $48,973 $48,973 
Accounts receivable and other assets$86,225 $86,225 $88,756 $88,756 
Financial Liabilities:
Deposits$9,032,247 $9,029,570 $8,614,073 $8,603,118 
Advances from FHLB$27,557 $27,586 $28,480 $28,488 
Other borrowings$32 $32 $— $— 
Subordinated capital notes$— $— $36,084 $36,083 
Accrued expenses and other liabilities$119,065 $119,065 $96,240 $96,240