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Business Segments | 6 Months Ended
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Jun. 30, 2021
Business Segments [Abstract] |
Business Segments | NOTE 24 – BUSINESS SEGMENTS OFG segregates its businesses into the following major reportable segments of business: Banking, Wealth Management, and Treasury. Management established the reportable segments based on the internal reporting used to evaluate performance and to 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 reportable segments based on pre-established goals of different financial parameters such as net income, net interest income, loan production, and fees generated. 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 periodical basis and may change if the conditions warrant. Banking includes the Bank’s branches and traditional banking products such as deposits and commercial, consumer 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 OPC. The core operations of this segment are financial planning, money management and investment banking, brokerage services, investment advisory services, insurance sales activity, corporate and individual trust and retirement services, as well as retirement plan administration 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, derivatives, and borrowings. 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. Following are the results of operations and the selected financial information by operating segment for the quarters and six-month periods ended June 30, 2021 and 2020:
| Quarter Ended June 30, 2021
|  |  |  | Wealth |  |  |  |  | Total Major |  |  |  |  | Consolidated
| Banking |  | Management |  | Treasury |  | Segments |  | Eliminations |  | Total
| (In thousands)
Interest income | $ | 110,452 |  | $ | 6 |  | $ | 3,005 |  | $ | 113,463 |  | $ | - |  | $ | 113,463
Interest expense |  | (10,712) |  |  | - |  |  | (494) |  |  | (11,206) |  |  | - |  |  | (11,206)
Net interest income |  | 99,740 |  |  | 6 |  |  | 2,511 |  |  | 102,257 |  |  | - |  |  | 102,257
Recapture of credit losses, net |  | 7,737 |  |  | - |  |  | 568 |  |  | 8,305 |  |  | - |  |  | 8,305
Non-interest income |  | 24,209 |  |  | 7,974 |  |  | 8 |  |  | 32,191 |  |  | - |  |  | 32,191
Non-interest expenses |  | (76,623) |  |  | (5,015) |  |  | (1,038) |  |  | (82,676) |  |  | - |  |  | (82,676)
Intersegment revenue |  | 545 |  |  | - |  |  | - |  |  | 545 |  |  | (545) |  |  | -
Intersegment expenses |  | - |  |  | (302) |  |  | (243) |  |  | (545) |  |  | 545 |  |  | -
Income before income taxes | $ | 55,608 |  | $ | 2,663 |  | $ | 1,806 |  | $ | 60,077 |  | $ | - |  | $ | 60,077
Income tax expense |  | 19,239 |  |  | - |  |  | 11 |  |  | 19,250 |  |  | - |  |  | 19,250
Net income | $ | 36,369 |  | $ | 2,663 |  | $ | 1,795 |  | $ | 40,827 |  | $ | - |  | $ | 40,827
Total assets | $ | 8,271,348 |  | $ | 31,165 |  | $ | 3,232,968 |  | $ | 11,535,481 |  | $ | (1,073,668) |  | $ | 10,461,813
| Six-Month Period Ended June 30, 2021
|  |  |  | Wealth |  |  |  |  | Total Major |  |  |  |  | Consolidated
| Banking |  | Management |  | Treasury |  | Segments |  | Eliminations |  | Total
| (In thousands)
Interest income | $ | 218,688 |  | $ | 18 |  | $ | 5,739 |  | $ | 224,445 |  | $ | - |  | $ | 224,445
Interest expense |  | (22,848) |  |  | - |  |  | (1,136) |  |  | (23,984) |  |  | - |  |  | (23,984)
Net interest income |  | 195,840 |  |  | 18 |  |  | 4,603 |  |  | 200,461 |  |  | - |  |  | 200,461
Recapture of credit losses, net |  | 1,149 |  |  | - |  |  | 832 |  |  | 1,981 |  |  | - |  |  | 1,981
Non-interest income |  | 47,076 |  |  | 15,505 |  |  | 17 |  |  | 62,598 |  |  | - |  |  | 62,598
Non-interest expenses |  | (150,497) |  |  | (7,844) |  |  | (2,001) |  |  | (160,342) |  |  | - |  |  | (160,342)
Intersegment revenue |  | 1,098 |  |  | - |  |  | - |  |  | 1,098 |  |  | (1,098) |  |  | -
Intersegment expenses |  | - |  |  | (593) |  |  | (505) |  |  | (1,098) |  |  | 1,098 |  |  | -
Income before income taxes | $ | 94,666 |  | $ | 7,086 |  | $ | 2,946 |  | $ | 104,698 |  | $ | - |  | $ | 104,698
Income tax expense |  | 33,475 |  |  | - |  |  | 23 |  |  | 33,498 |  |  | - |  |  | 33,498
Net income | $ | 61,191 |  | $ | 7,086 |  | $ | 2,923 |  | $ | 71,200 |  | $ | - |  | $ | 71,200
Total assets | $ | 8,271,348 |  | $ | 31,165 |  | $ | 3,232,968 |  | $ | 11,535,481 |  | $ | (1,073,668) |  | $ | 10,461,813
| Quarter Ended June 30, 2020
|  |  |  | Wealth |  |  |  |  | Total Major |  |  |  |  | Consolidated
| Banking |  | Management |  | Treasury |  | Segments |  | Eliminations |  | Total
| (In thousands)
Interest income | $ | 119,722 |  | $ | 14 |  | $ | 1,956 |  | $ | 121,692 |  | $ | - |  | $ | 121,692
Interest expense |  | (14,326) |  |  | - |  |  | (2,306) |  |  | (16,632) |  |  | - |  |  | (16,632)
Net interest income |  | 105,396 |  |  | 14 |  |  | (350) |  |  | 105,060 |  |  | - |  |  | 105,060
Provision for credit losses, net |  | (16,211) |  |  | - |  |  | (1,485) |  |  | (17,696) |  |  | - |  |  | (17,696)
Non-interest income |  | 20,811 |  |  | 6,391 |  |  | (50) |  |  | 27,152 |  |  | - |  |  | 27,152
Non-interest expenses |  | (78,402) |  |  | (5,957) |  |  | (1,122) |  |  | (85,481) |  |  | - |  |  | (85,481)
Intersegment revenue |  | 694 |  |  | - |  |  | - |  |  | 694 |  |  | (694) |  |  | -
Intersegment expenses |  | - |  |  | (201) |  |  | (493) |  |  | (694) |  |  | 694 |  |  | -
Income before income taxes | $ | 32,288 |  | $ | 247 |  | $ | (3,500) |  | $ | 29,035 |  | $ | - |  | $ | 29,035
Income tax expense |  | 5,316 |  |  | 3,201 |  |  | (1,269) |  |  | 7,248 |  |  | - |  |  | 7,248
Net income | $ | 26,972 |  | $ | (2,954) |  | $ | (2,231) |  | $ | 21,787 |  | $ | - |  | $ | 21,787
Total assets | $ | 9,462,407 |  | $ | 30,214 |  | $ | 1,524,913 |  | $ | 11,017,534 |  | $ | (1,084,815) |  | $ | 9,932,719
| Six-Month Period Ended June 30, 2020
|  |  |  | Wealth |  |  |  |  | Total Major |  |  |  |  | Consolidated
| Banking |  | Management |  | Treasury |  | Segments |  | Eliminations |  | Total
| (In thousands)
Interest income | $ | 239,101 |  | $ | 32 |  | $ | 6,256 |  | $ | 245,389 |  | $ | - |  | $ | 245,389
Interest expense |  | (30,215) |  |  | - |  |  | (5,013) |  |  | (35,228) |  |  | - |  |  | (35,228)
Net interest income |  | 208,886 |  |  | 32 |  |  | 1,243 |  |  | 210,161 |  |  | - |  |  | 210,161
Provision for credit losses, net |  | (63,334) |  |  | - |  |  | (1,493) |  |  | (64,827) |  |  | - |  |  | (64,827)
Non-interest income |  | 40,355 |  |  | 13,766 |  |  | 4,481 |  |  | 58,602 |  |  | - |  |  | 58,602
Non-interest expenses |  | (160,955) |  |  | (9,681) |  |  | (2,167) |  |  | (172,803) |  |  | - |  |  | (172,803)
Intersegment revenue |  | 1,151 |  |  | - |  |  | - |  |  | 1,151 |  |  | (1,151) |  |  | -
Intersegment expenses |  | - |  |  | (355) |  |  | (796) |  |  | (1,151) |  |  | 1,151 |  |  | -
Income before income taxes | $ | 26,103 |  | $ | 3,762 |  | $ | 1,268 |  | $ | 31,133 |  | $ | - |  | $ | 31,133
Income tax expense |  | 2,997 |  |  | 4,519 |  |  | 29 |  |  | 7,545 |  |  | - |  |  | 7,545
Net income | $ | 23,106 |  | $ | (757) |  | $ | 1,239 |  | $ | 23,588 |  | $ | - |  | $ | 23,588
Total assets | $ | 9,462,407 |  | $ | 30,214 |  | $ | 1,524,913 |  | $ | 11,017,534 |  | $ | (1,084,815) |  | $ | 9,932,719

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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