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Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Stockholders' Equity [Abstract]

Stockholders' Equity

NOTE 16 – STOCKHOLDERS’ EQUITY

Preferred Stock and Common Stock

In July 2021, OFG redeemed all of its outstanding Series D preferred stock and, on April 30, 2021, redeemed all of its outstanding Series A and Series B preferred stock at a redemption price of $25.00 per share. As a result of such redemptions, OFG no longer has any outstanding preferred stock. As of December 31, 2020 preferred stock amounted to $92.0 million. At both September 30, 2021 and December 31, 2020, common stock amounted to $59.9 million.

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 December 31, 2020, accumulated preferred stock issuance costs charged against additional paid in capital amounted to $10.1 million. At both September 30, 2021 and December 31, 2020, accumulated common stock issuance costs charged against additional paid in capital amounted to $13.6 million.

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 September 30, 2021 and December 31, 2020, the Bank’s legal surplus amounted to $114.5 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

On July 2021, OFG announced the approval by the Board of Directors of a stock repurchase program to purchase an additional $50.0 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 nine-month period ended September 30, 2021, OFG repurchased 1,684,921 shares under this program for a total of $40.2 million, at an average price of $23.83 per share. During the nine-month period ended September 30, 2020, Oriental purchased 175,000 shares under this program for a total of $2.2 million, at an average price of $12.69 per share.

At September 30, 2021 the number of shares that may yet be purchased under the $50 million program is estimated at 390,652 and was calculated by dividing the remaining balance of $9.9 million by $25.22 (closing price of OFG’s common stock at September 30, 2021).The activity in connection with common shares held in treasury by OFG for the nine-months period ended September 30, 2021 and 2020 is set forth below:

		Nine-Month Period Ended September 30,
		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		(275,086)			(2,248)		(120,630)			(1,470)
Common shares repurchased as part of the stock repurchase program		1,684,921			40,161		175,000			2,226
End of period	$	9,907,998		$	140,862		8,540,648		$	103,095