<SEC-DOCUMENT>0001030469-17-000039.txt : 20180111
<SEC-HEADER>0001030469-17-000039.hdr.sgml : 20180111
<ACCEPTANCE-DATETIME>20171205150050
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001030469-17-000039
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20171205

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OFG BANCORP
		CENTRAL INDEX KEY:			0001030469
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				660538893
		STATE OF INCORPORATION:			PR
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		254 MU?OZ RIVERA AVENUE
		CITY:			SAN JUAN
		STATE:			PR
		ZIP:			00918
		BUSINESS PHONE:		7877716800

	MAIL ADDRESS:	
		STREET 1:		254 MU?OZ RIVERA AVENUE
		CITY:			SAN JUAN
		STATE:			PR
		ZIP:			00918

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ORIENTAL FINANCIAL GROUP INC
		DATE OF NAME CHANGE:	19970110
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;tab-stops:center 3.25in right 6.5in;"><font face=Calibri,sans-serif lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>


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<p style="-sec-extract:summary;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">December
5, 2017</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">VIA
EDGAR</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Dave
Irving</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Review
Accountant</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Office
of Financial Services</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Securities
and Exchange Commission</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">100 F
Street</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Washington,
DC 20549</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Re:&#160;&#160;&#160;&#160;&#160;&#160; OFG Bancorp</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Form 10-K for Fiscal Year Ended
December 31, 2016</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Filed March 10, 2017</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Form 10-Q for Fiscal Quarter
Ended September 30, 2017</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Filed November 8, 2017</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">File No. 001-12647</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Dear
Mr. Irving:</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">We are responding to your letter, dated November 28,
2017, relating to the filings referenced above of OFG Bancorp (the &#8220;Company&#8221;).
Each of your comments is set forth below, together with our corresponding
response. For ease of reference, we have repeated your question or comment, in
bold face, immediately prior to our related response.</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Form 10-Q for the Fiscal Period
Ended September 30, 2017</font></u></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><u><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">General</font></u></p>

<p style="margin-bottom:10.0pt;margin-left:.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">1.&#160;&#160; Please tell us
how you considered testing your goodwill for impairment in the interim period
ended September 30, 2017, given Hurricanes Irma and Maria and the potential
impact on the fair value of your reporting units.&#160; Refer to the guidance in ASC
350-20-35-30.</font></b></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">As reported in our most recent Form 10Q for the
third quarter ended September 30, 2017, the Company performed &#8220;an assessment of
events or circumstances that could trigger reductions in the book value of the
goodwill,&#8221; and &#8220;no events were identified that triggered changes in the book
value of the goodwill at September 30, 2017.&#8221;&#160; This assessment evaluated in
depth the effect of hurricanes Irma and Maria to the Company, and determined
that the impact of the hurricanes was not likely to reduce the fair value of
the Company&#8217;s goodwill below its carrying amount.</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">The Company performs this quarterly assessment
pursuant to its internal accounting policies and in compliance with ASC
350-20-35-30.&#160; If management determines that it is more likely than not that a
change in circumstances may reduce the fair value of the goodwill below its
carrying amount, the Company will perform the impairment test analysis and make
adjustments, as necessary.&#160; </font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Examples of events or circumstances that are
evaluated each quarter include:</font></p>


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<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;tab-stops:center 3.25in right 6.5in;"><font face=Calibri,sans-serif lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>


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<p style="margin-bottom:.0001pt;margin-left:1.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">a.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">A
significant adverse change in legal factors or in the business climate,</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">b.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">An adverse action by a
regulator,</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">c.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">Unanticipated
competition that could have a material impact in business projections,</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">d.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">A loss of key
personnel that could affect the operations,</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">e.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">A more likely than not
expectation that a reporting unit or a significant portion of a reporting unit
will be sold or otherwise disposed of, and</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.25in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">f.</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;line-height:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">Any other change in
circumstance that management believes could have a material impact in the operation
of OFG.</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.25in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">As documented in the Company&#8217;s third quarter
assessment, the Company recorded a special provision of $27 million during the
third quarter related to hurricanes Irma and Maria.&#160; Management calculated such
provision by evaluating the impact of the hurricanes on the repayment sources
and underlying collateral of the Company&#8217;s loan portfolios.&#160; Excluding the
impact of the special provision, the Company had a net income of $22.3 million
for such quarter.&#160; This special provision did not significantly impact the
capital of the Company or its bank subsidiary, which remained strong and
significantly above regulatory requirements for well-capitalized institutions.</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Therefore, the financial operations of the Company
were not and are not expected to be materially affected by the hurricanes.&#160;&#160;&#160; </font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">The quarterly assessment also took into account
economic projections provided by independent recognized economists of economic
losses from damages caused by the hurricanes and economic growth from the
anticipated distribution of insurance proceeds and federal aid.</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">The Company performs its annual test of impairment
to goodwill for each of its Banking and Wealth Management units on October 31
of each year.&#160; Its 2016 annual goodwill impairment test determined that the Banking
unit failed step one of the two-step impairment test because its adjusted net
book value exceeded its fair value, whereas the Wealth Management unit passed.
The Company then performed step two with respect to the Banking unit, which
concluded that the carrying value of the goodwill allocated to the Banking unit
was not impaired as of the valuation date.&#160; As of such date, the fair value of
$253.2 million significantly exceeded the carrying value of $84.1 million.</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Based on the assessment and given that the estimated
fair value significantly exceeded the carrying balance of goodwill of the
Banking unit, management concluded that it is not likely that the changes in
circumstances related to the hurricanes impaired goodwill as of September 30,
2017.</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

<p align=center style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">*****************</font></p>

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<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;tab-stops:center 3.25in right 6.5in;"><font face=Calibri,sans-serif lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>


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<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Please
do not hesitate to contact the undersigned if you have any questions or if you
require additional information regarding this matter.</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;text-indent:.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">Respectfully
submitted,</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;">/s/
Maritza Arizmendi</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;">Maritza
Arizmendi</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;">Executive
Vice President and CFO</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;">OFG
Bancorp</font></p>

<p style="margin-bottom:10.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:11.0pt;line-height:115%;">&nbsp;</font></p>

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