Substantially all leases in which OFG is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2038. OFG’s leases do not contain residual value guarantees or material variable lease payments. All leases are classified as operating leases and are included on the consolidated statements of financial condition as a right-of-use asset and a corresponding lease liability. OFG leases to others certain space in its principal offices for terms extending through 2026 with two additional extensions through 2030; all are operating leases.

Operating Lease Cost


	Quarter Ended March 31,				Statement of Operations
	2026		2025			Classification

Lease costs	$	2,160	$	2,240		Occupancy and equipment
Variable lease costs	415		382			Occupancy and equipment
Short-term lease costs	224		100			Occupancy and equipment
Lease income	(13)		(13)			Occupancy and equipment
Total lease costs	$	2,786	$	2,709


	March 31,		December 31,		Statement of Financial Condition
	2026		2025		Classification
	(In thousands)
Right-of-use assets	$	20,275	$	21,261	Operating lease right-of-use assets
Lease Liabilities	$	22,088	$	23,157	Operating leases liabilities


	March 31,		December 31,
	2026		2025
	(In thousands)
Weighted-average remaining lease term	4.3 years		4.4 years
Weighted-average discount rate	7.4	%	7.4	%

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2026, were as follows:


	Minimum Rent
As of March 31, 2026	(In thousands)
2026	$	5,776
2027	6,710
2028	5,308
2029	3,563
2030	2,021
Thereafter	2,389
Total lease payments	$	25,767
Less imputed interest	3,679
Present value of lease liabilities	$	22,088

OFG, as lessor, leases or subleases real property to tenants under operating leases. As of March 31, 2026, no material lease concessions have been granted to tenants. As of March 31, 2026, OFG, as lessee, has not requested any lease concessions.