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Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Stockholders' Equity [Abstract]

Stockholders' Equity

NOTE 16 – STOCKHOLDERS’ EQUITY

Preferred Stock and Common Stock

At both March 31, 2021 and December 31, 2020, preferred and common stock paid-in capital amounted $92.0 million and $59.9 million, respectively.

On March 29, 2021 OFG announced the redemption of all three series of currently outstanding preferred stock, each at a redemption price of $25.00 per share. The Series A and Series B Preferred Stock were redeemed on April 30, 2021, and the Series D Preferred Stock will be redeemed on July 15, 2021.

Additional Paid-in Capital

Additional paid-in capital represents contributed capital in excess of par value of common and preferred stock net of the costs of issuance. As of both March 31, 2021 and December 31, 2020, accumulated issuance costs charged against additional paid-in capital amounted to $13.6 million and $10.1 million for common and preferred stock, respectively.

Legal Surplus

The Puerto Rico Banking Act requires that a minimum of 10% of the Bank’s net income for the year be transferred to a reserve fund until such fund (legal surplus) equals the total paid in capital on common and preferred stock. At March 31, 2021 and December 31, 2020, the Bank’s legal surplus amounted to $106.2 million and $103.3 million, respectively. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Treasury Stock

Under OFG’s current stock repurchase program, it is authorized to purchase in the open market up to $5.5 million of its outstanding shares of common stock. The shares of common stock repurchased are to be held by OFG as treasury shares. During the quarter ended March 31, 2020, OFG repurchased 175,000 shares under this program for a total of $2.2 million, at an average price of $12.69 per share. OFG did not purchase any shares of its common stock during the quarter ended March 31, 2020 other than through its publicly announced stock repurchase program. During the quarter ended March 31, 2021, OFG did not repurchased any shares.

At March 31, 2021 the number of shares that may yet be purchased under the $70 million program is estimated at 243,609 and was calculated by dividing the remaining balance of $5.5 million by $22.62 (closing price of OFG’s common stock at March 31, 2021).The activity in connection with common shares held in treasury by OFG for the quarters ended March 31, 2021 and 2020 is set forth below:

		Quarter Ended March 31,
		2021					2020
				Dollar					Dollar
		Shares		Amount			Shares		Amount
		(In thousands, except shares data)
Beginning of period	$	8,498,163		$	102,949		8,486,278		$	102,339
Common shares used upon lapse of restricted stock units and options		(192,174)			(1,955)		(103,042)			(1,276)
Common shares repurchased as part of the stock repurchase program		-			-		175,000			2,226
End of period	$	8,305,989		$	100,994		8,558,236		$	103,289