XML 34 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Regulatory Capital Requirements | 9 Months Ended
--- | ---
Sep. 30, 2018
Regulatory Capital Requirements Abstract |
Regulatory Capital Requirements Under Banking Regulations Text Block | NOTE 15 — REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements OFG Bancorp (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and Puerto Rico banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on Oriental’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Oriental and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Pursuant to the Dodd-Frank Act, federal banking regulators adopted capital rules that became effective January 1, 2015 for Oriental and the Bank (subject to certain phase-in periods through January 1, 2019) and that replaced their general risk-based capital rules, advanced approaches rule, market risk rule, and leverage rules. Among other matters, the new capital rules: (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to prior regulations. The current capital rules prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the previous four Basel I-derived categories (0%, 20%, 50% and 100%) to a larger and more risk-sensitive number of categories, depending on the nature of the assets, and resulting in higher risk weights for a variety of asset classes. Pursuant to the current capital rules, the minimum capital ratios requirements are as follows: 4.5% CET1 to risk-weighted assets; 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”). As of September 30, 2018 and December 31, 2017, OFG Bancorp and the Bank met all capital adequacy requirements to which they are subject. As of September 30, 2018 and December 31, 2017, the Bank is “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the tables presented below. OFG Bancorp’s and the Bank’s actual capital amounts and ratios as of September 30, 2018 and December 31, 2017 are as follows:
|  |  |  |  |  | Minimum Capital |  | Minimum to be Well
| Actual |  | Requirement |  | Capitalized
| Amount |  | Ratio |  | Amount |  | Ratio |  |  | Amount |  | Ratio
| (Dollars in thousands)
OFG Bancorp Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets | $ | 953,543 |  | 19.84% |  | $ | 384,508 |  | 8.00% |  | $ | 480,635 |  | 10.00%
Tier 1 capital to risk-weighted assets | $ | 891,807 |  | 18.55% |  | $ | 288,381 |  | 6.00% |  | $ | 384,508 |  | 8.00%
Common equity tier 1 capital to risk-weighted assets | $ | 690,937 |  | 14.38% |  | $ | 216,286 |  | 4.50% |  | $ | 312,413 |  | 6.50%
Tier 1 capital to average total assets | $ | 891,807 |  | 13.93% |  | $ | 255,993 |  | 4.00% |  | $ | 319,992 |  | 5.00%
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets | $ | 899,258 |  | 20.34% |  | $ | 353,653 |  | 8.00% |  | $ | 442,067 |  | 10.00%
Tier 1 capital to risk-weighted assets | $ | 842,133 |  | 19.05% |  | $ | 265,240 |  | 6.00% |  | $ | 353,653 |  | 8.00%
Common equity tier 1 capital to risk-weighted assets | $ | 644,804 |  | 14.59% |  | $ | 198,930 |  | 4.50% |  | $ | 287,343 |  | 6.50%
Tier 1 capital to average total assets | $ | 842,133 |  | 13.92% |  | $ | 242,057 |  | 4.00% |  | $ | 302,571 |  | 5.00%
|  |  |  |  |  | Minimum Capital |  | Minimum to be Well
| Actual |  | Requirement |  | Capitalized
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
| (Dollars in thousands)
Bank Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets | $ | 925,447 |  | 19.28% |  | $ | 383,971 |  | 8.00% |  | $ | 479,964 |  | 10.00%
Tier 1 capital to risk-weighted assets | $ | 863,978 |  | 18.00% |  | $ | 287,979 |  | 6.00% |  | $ | 383,971 |  | 8.00%
Common equity tier 1 capital to risk-weighted assets | $ | 863,978 |  | 18.00% |  | $ | 215,984 |  | 4.50% |  | $ | 311,977 |  | 6.50%
Tier 1 capital to average total assets | $ | 863,978 |  | 13.56% |  | $ | 254,847 |  | 4.00% |  | $ | 318,559 |  | 5.00%
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital to risk-weighted assets | $ | 879,648 |  | 19.92% |  | $ | 353,265 |  | 8.00% |  | $ | 441,581 |  | 10.00%
Tier 1 capital to risk-weighted assets | $ | 822,776 |  | 18.63% |  | $ | 264,949 |  | 6.00% |  | $ | 353,265 |  | 8.00%
Common equity tier 1 capital to risk-weighted assets | $ | 822,776 |  | 18.63% |  | $ | 198,712 |  | 4.50% |  | $ | 287,028 |  | 6.50%
Tier 1 capital to average total assets | $ | 822,776 |  | 13.63% |  | $ | 241,417 |  | 4.00% |  | $ | 301,771 |  | 5.00%

X
- References No definition available. + Details
Name: | us-gaap_RegulatoryCapitalRequirementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 + Details
Name: | us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration