v3.25.2
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
OFG segregates its businesses into the following segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to assess where to allocate resources. Other factors such as OFG’s organization, nature of its products, distribution channels and economic characteristics of the products were also considered in the determination of the reportable segments. OFG measures the performance of these segments based on pre-established goals of different financial parameters such as net income. OFG’s methodology for allocating non-interest expenses among segments is based on several factors such as revenue, employee headcount, occupied space, dedicated services or time, among others. These factors are reviewed on a periodic basis and may change if the conditions warrant.

Banking includes the Bank’s branches and traditional banking products such as deposits and commercial, consumer, auto, and mortgage loans. Mortgage banking activities are carried out by the Bank’s mortgage banking division, whose principal activity is to originate mortgage loans for OFG’s own portfolio. As part of its mortgage banking activities, OFG may sell loans directly into the secondary market or securitize conforming loans into mortgage-backed securities.

Wealth Management is comprised of the Bank’s trust division, Oriental Financial Services, Oriental Insurance, and OFG Reinsurance. The core operations of this segment are financial planning, securities brokerage services, investment advisory services, insurance, reinsurance, and corporate trust and retirement services.

The Treasury segment encompasses all of OFG’s asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, and borrowings.

The accounting policies of the segments are the same as those referred to in Note 1 – “Summary of Significant Accounting Policies” of our 2024 Form 10-K. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices. Financial results are presented, to the extent practicable, as if each business operated on a standalone basis, and includes expense allocations for corporate services used by the business segments, disclosed as intersegment expenses. Significant expense categories identified by management are disclosed for all segments, even though it may not be significant to a particular segment.
OFG’s chief operating decision maker (“CODM”) is the chief executive officer (“CEO”). The CODM evaluates the performance of the Banking, Wealth Management and Treasury segments primarily based on net income, which guides resource allocation across segments. CODM continuously monitors performance and adjusts as necessary. Additionally, OFG employs a forecasting process to project future performance and resource needs, which are reviewed and updated regularly to ensure alignment with strategic goals.

Following are the results of operations and the selected financial information by operating segment for the quarters and six-month periods ended June 30, 2025 and 2024:

Quarter Ended June 30, 2025
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$158,778 $6 $36,975 $195,759 $(1,412)$194,347 
Interest expense(35,426)— (8,405)(43,831)1,412 (42,419)
Net interest income123,352 6 28,570 151,928 — 151,928 
(Provision for) recapture of credit losses(21,678)— — (21,678)— (21,678)
Non-interest income, net21,300 9,129 2 30,431 — 30,431 
Non-interest expenses [1]:
Compensation and employee benefits(36,962)(2,320)(283)(39,565)— (39,565)
Occupancy, equipment and infrastructure costs(9,335)(191)(18)(9,544)— (9,544)
Depreciation and amortization of premises and equipment(5,068)(12)(5)(5,085)— (5,085)
Electronic banking charges(12,276)— — (12,276)— (12,276)
Information technology expenses(6,636)(42)— (6,678)— (6,678)
Professional and service fees(3,935)(825)(53)(4,813)— (4,813)
Loan servicing and clearing expenses(1,705)(337)(130)(2,172)— (2,172)
Amortization of other intangible assets(289)— — (289)— (289)
Intersegment expenses975 (570)(405)— — — 
Other [2]
(13,866)(390)(124)(14,380)— (14,380)
Total non-interest expense(89,097)(4,687)(1,018)(94,802)— (94,802)
Income before income taxes$33,877 $4,448 $27,554 $65,879 $— $65,879 
Income tax expense(14,037)— (41)(14,078)— (14,078)
Net income$19,840 $4,448 $27,513 $51,801 $— $51,801 
Total assets$10,007,703 $40,323 $3,469,640 $13,517,666 $(1,286,156)$12,231,510 
Expenditures for long-lived assets$4,149 $— $— $4,149 $— $4,149 
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
[2] Other non-interest expenses include:
Banking: Taxes, other than payroll and income taxes; insurance; advertising; data communication and systems; printing, postage, stationary and supplies; communication; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; losses and operational errors, among other business expenses.
Wealth Management: Reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; data communication and systems, among other business expenses.
Treasury: Data communication and systems; taxes, other than payroll and income taxes; insurance, among other business expenses.
Six-Month Period Ended June 30, 2025
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$313,805 $11 $72,408 $386,224 $(2,655)$383,569 
Interest expense(69,956)— (15,269)(85,225)2,655 (82,570)
Net interest income243,849 11 57,139 300,999 — 300,999 
Provision for loan and lease losses, net(47,368)— 2 (47,366)— (47,366)
Non-interest income, net42,000 17,946 2 59,948 — 59,948 
Non-interest expenses [1]
Compensation and employee benefits(73,748)(5,191)(558)(79,497)— (79,497)
Occupancy, equipment and infrastructure costs(18,875)(369)(34)(19,278)— (19,278)
Depreciation and amortization of premises and equipment(10,136)(25)(10)(10,171)— (10,171)
Electronic banking charges(21,946)— — (21,946)— (21,946)
Information technology expenses(12,875)(97)6 (12,966)— (12,966)
Professional and service fees(8,358)(1,467)(106)(9,931)— (9,931)
Loan servicing and clearing expenses(3,281)(927)(198)(4,406)— (4,406)
Amortization of other intangible assets(577)— — (577)— (577)
Intersegment expenses1,805 (1,090)(715)— — — 
Other [2]
(28,465)(763)(254)(29,482)— (29,482)
Total non-interest expense(176,456)(9,929)(1,869)(188,254)— (188,254)
Income before income taxes$62,025 $8,028 $55,274 $125,327 $— $125,327 
Income tax expense(27,845)(17)(92)(27,954)— (27,954)
Net income$34,180 $8,011 $55,182 $97,373 $— $97,373 
Total assets$10,007,703 $40,323 $3,469,640 $13,517,666 $(1,286,156)$12,231,510 
Expenditures for long-lived assets$8,498 $1 $— $8,499 $— $8,499 
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
[2] Other non-interest expenses include:
Banking: Taxes, other than payroll and income taxes; insurance; advertising; communication; printing, postage, stationary and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; losses and operational errors, among other business expenses.
Wealth Management: Reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; data communication and systems, among other business expenses.
Treasury: Data communication and systems; taxes, other than payroll and income taxes; insurance, among other business expenses.
Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, the IBE unit, which operates within the Bank. The time deposit with a balance of $281.0 million and $302.4 million at June 30, 2025 and 2024, respectively, to fund Oriental Overseas operations is included in the Treasury Segment with its corresponding interest expense, and the related interest income is included in the Banking Segment, and are eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from the prior year periods was mainly as a result of higher interest rate.
Quarter Ended June 30, 2024
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$155,681 $4 $32,929 $188,614 $(956)$187,658 
Interest expense(37,654)— (3,635)(41,289)956 (40,333)
Net interest income118,027 4 29,294 147,325 — 147,325 
(Provision for) recapture of credit losses, net(15,589)— 8 (15,581)— (15,581)
Non-interest income, net24,723 7,654 99 32,476 — 32,476 
Non-interest expenses [1]:
Compensation and employee benefits(35,903)(2,320)(244)(38,467)— (38,467)
Occupancy, equipment and infrastructure costs(8,865)(182)(32)(9,079)— (9,079)
Depreciation and amortization of premises and equipment(5,304)(5)(5)(5,314)— (5,314)
Electronic banking charges(11,687)— — (11,687)— (11,687)
Information technology expenses(6,543)(22)— (6,565)— (6,565)
Professional and service fees(4,174)(899)(44)(5,117)— (5,117)
Loan servicing and clearing expenses(1,504)(277)(109)(1,890)— (1,890)
Amortization of other intangibles assets(346)— — (346)— (346)
Intersegment expenses415 (243)(172)— — — 
Other [2]
(13,185)(913)(397)(14,495)— (14,495)
Total non-interest expense(87,096)(4,861)(1,003)(92,960)— (92,960)
Income before income taxes$40,065 $2,797 $28,398 $71,260 $— $71,260 
Income tax expense(20,096)5 (38)(20,129)— (20,129)
Net income$19,969 $2,802 $28,360 $51,131 $— $51,131 
Total assets$9,360,801 $36,217 $3,055,720 $12,452,738 $(1,193,653)$11,259,085 
Expenditures for long-lived assets$4,717 $— $— $4,717 $— $4,717 
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
[2] Other non-interest expenses include:
Banking: Taxes, other than payroll and income taxes; insurance; advertising; data communication and systems; printing, postage, stationary and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; losses and operational errors, among other business expenses.
Wealth Management: Reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; data communication and systems, among other business expenses.
Treasury: Data communication and systems; taxes, other than payroll and income taxes; insurance, among other business expenses.
Six-Month Period Ended June 30, 2024
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$306,676 $13 $66,426 $373,115 $(2,031)$371,084 
Interest expense(73,503)— (8,185)(81,688)2,031 (79,657)
Net interest income233,173 13 58,241 291,427 — 291,427 
(Provision for) recapture of credit losses, net(30,814)— 112 (30,702)— (30,702)
Non-interest income, net47,788 15,029 7 62,824 — 62,824 
Non-interest expenses [1]
Compensation and employee benefits(73,188)(4,590)(505)(78,283)— (78,283)
Occupancy, equipment and infrastructure costs(17,700)(350)(65)(18,115)— (18,115)
Depreciation and amortization of premises and equipment(10,580)(10)(10)(10,600)— (10,600)
Electronic banking charges(22,053)— — (22,053)— (22,053)
Information technology expenses(13,099)(69)— (13,168)— (13,168)
Professional and service fees(7,434)(1,578)(109)(9,121)— (9,121)
Loan servicing and clearing expenses(2,947)(804)(249)(4,000)— (4,000)
Amortization of other intangible assets(692)— — (692)— (692)
Intersegment expenses839 (510)(329)— — — 
Other [2]
(25,808)(1,739)(793)(28,340)— (28,340)
Total non-interest expense(172,662)(9,650)(2,060)(184,372)— (184,372)
Income before income taxes$77,485 $5,392 $56,300 $139,177 $— $139,177 
Income tax expense(38,262)(8)(84)(38,354)— (38,354)
Net income$39,223 $5,384 $56,216 $100,823 $— $100,823 
Total assets$9,360,801 $36,217 $3,055,720 $12,452,738 $(1,193,653)$11,259,085 
Expenditures for long-lived assets$10,903 $— $— $10,903 $— $10,903 
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
[2] Other non-interest expenses include:
Banking: Taxes, other than payroll and income taxes; insurance; advertising; communication; printing, postage, stationary and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; losses and operational errors, among other business expenses.
Wealth Management: Reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; data communication and systems, among other business expenses.
Treasury: Data communication and systems; taxes, other than payroll and income taxes; insurance, among other business expenses.