v3.26.1
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
OFG segregates its businesses into the following three segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and 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 across various 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 so 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. This segment also includes activities of the Bank’s IBEs, including purchases of US loan participations.

The accounting policies of the segments are the same as those referred to in Note 1 – “Summary of Significant Accounting Policies” of our 2025 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 (the “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. The CODM also 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 its 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, 2026 and 2025:

Quarter Ended June 30, 2026
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$163,741 $7 $34,827 $198,575 $(1,425)$197,150 
Interest expense(31,815)— (9,461)(41,276)1,425 (39,851)
Net interest income131,926 7 25,366 157,299 — 157,299 
(Provision for) recapture of credit losses(13,010)— 4 (13,006)— (13,006)
Non-interest income, net23,016 9,954 53 33,023 — 33,023 
Non-interest expenses [1]:
Compensation and employee benefits(38,318)(2,554)(304)(41,176)— (41,176)
Occupancy, equipment and infrastructure costs(9,261)(135)(20)(9,416)— (9,416)
Depreciation and amortization of premises and equipment(4,844)(9)(4)(4,857)— (4,857)
Electronic banking charges(12,229)— — (12,229)— (12,229)
Information technology expenses(7,067)(49)(1)(7,117)— (7,117)
Professional and service fees(3,832)(953)(54)(4,839)— (4,839)
Loan servicing and clearing expenses(1,908)(451)(138)(2,497)— (2,497)
Amortization of other intangible assets(231)— — (231)— (231)
Intersegment expenses1,062 (594)(468)— — — 
Other [2]
(19,814)(522)(134)(20,470)— (20,470)
Total non-interest expense(96,442)(5,267)(1,123)(102,832)— (102,832)
Income before income taxes$45,490 $4,694 $24,300 $74,484 $— $74,484 
Income tax expense(15,651)— (56)(15,707)— (15,707)
Net income$29,839 $4,694 $24,244 $58,777 $— $58,777 
Total assets$10,146,471 $40,520 $3,345,116 $13,532,107 $(1,377,535)$12,154,572 
Expenditures for long-lived assets$8,132 $— $— $8,132 $— $8,132 
[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, stationery 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; and losses and operational errors, among other business expenses.
Wealth Management: reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; and 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, 2026
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$323,519 $12 $70,496 $394,027 $(2,751)$391,276 
Interest expense(62,863)— (20,052)(82,915)2,751 (80,164)
Net interest income260,656 12 50,444 311,112 — 311,112 
Provision for credit losses
(35,489)— — (35,489)— (35,489)
Non-interest income, net46,039 19,098 53 65,190 — 65,190 
Non-interest expenses [1]
Compensation and employee benefits(76,778)(5,119)(626)(82,523)— (82,523)
Occupancy, equipment and infrastructure costs(17,721)(259)(34)(18,014)— (18,014)
Depreciation and amortization of premises and equipment(9,643)(19)(15)(9,677)— (9,677)
Electronic banking charges(20,834)— — (20,834)— (20,834)
Information technology expenses(13,627)(86)(1)(13,714)— (13,714)
Professional and service fees(8,164)(1,672)(1,217)(11,053)— (11,053)
Loan servicing and clearing expenses(3,764)(1,024)(273)(5,061)— (5,061)
Amortization of other intangible assets(462)— — (462)— (462)
Intersegment expenses2,096 (1,179)(917)— — — 
Other [2]
(34,901)(1,000)(296)(36,197)— (36,197)
Total non-interest expense(183,798)(10,358)(3,379)(197,535)— (197,535)
Income before income taxes$87,408 $8,752 $47,118 $143,278 $— $143,278 
Income tax expense(30,455)— (109)(30,564)— (30,564)
Net income$56,953 $8,752 $47,009 $112,714 $— $112,714 
Total assets$10,146,471 $40,520 $3,345,116 $13,532,107 $(1,377,535)$12,154,572 
Expenditures for long-lived assets$12,488 $— $— $12,488 $— $12,488 
[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, stationery and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; and losses and operational errors, among other business expenses.
Wealth Management: reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; and data communication and systems, among other business expenses.
Treasury: data communication and systems; taxes, other than payroll and income taxes; and 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 $286.6 million and $281.0 million at June 30, 2026 and 2025, respectively, which is used to fund Oriental Overseas operations, is included in the Treasury Segment with its corresponding interest expense, the related interest income is included in the Banking Segment, all 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 quarter was mainly the result of higher average balance.
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 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 intangibles 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, stationery and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; and losses and operational errors, among other business expenses.
Wealth Management: reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; and data communication and systems, among other business expenses.
Treasury: data communication and systems; taxes, other than payroll and income taxes; and 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) recapture of credit losses
(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, stationery and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; and losses and operational errors, among other business expenses.
Wealth Management: reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; and data communication and systems, among other business expenses.
Treasury: data communication and systems; taxes, other than payroll and income taxes; and insurance, among other business expenses.