SERVICING ASSETS (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Changes in Serving Rights at Fair Value

The following table presents the changes in servicing rights measured using the fair value method for the quarters and six-month periods ended June 30, 2025 and 2024:


	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2025		2024		2025		2024
	(In thousands)
Fair value at beginning of period	$	69,238	$	49,553	$	70,435	$	49,520

Servicing from mortgage securitization or asset transfers	751		303		1,410		830
Changes due to payments on loans	(1,346)		(732)		(2,608)		(1,652)
Changes in fair value due to changes in valuation model inputs or assumptions	(55)		665		(649)		1,091
Fair value at end of period	$	68,588	$	49,789	$	68,588	$	49,789

Schedule of Key Economic Assumptions

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of June 30, 2025 and 2024:


	Six-Month Period Ended June 30,
	2025	2024
Constant prepayment rate	1.00% - 18.42%	1.49% - 11.45%
Discount rate	10.00% - 15.50%	10.00% - 15.50%

Schedule of Sensitivity of Current Fair Value of Servicing Assets

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adverse changes in the above key assumptions were as follows:


	June 30,		December 31,
	2025		2024
	(In thousands)
Mortgage-related servicing asset
Carrying value of mortgage servicing asset	$	68,588	70,435
Weighted average life (in years)	8.0		7.9
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(1,233)	$	(1,276)
Decrease in fair value due to 20% adverse change	$	(2,422)	$	(2,505)
Discount rate
Decrease in fair value due to 10% adverse change	$	(2,993)	$	(3,103)
Decrease in fair value due to 20% adverse change	$	(5,756)	$	(5,966)

OFG BANCORP 10-Q