OPERATING LEASES

3 Months Ended

Mar. 31, 2022

Substantially all leases in which OFG is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2038. OFG’s leases do not contain residual value guarantees or material variable lease payments. All leases are classified as operating leases and are included on the consolidated statements of financial condition as a right-of-use asset and a corresponding lease liability. OFG leases to others certain space in its principal offices for terms extending through 2022; all are operating leases.

Operating Lease Cost


	Quarter Ended March 31,
	2022		2021		Statement of Operations Classification
	(In thousands)
Lease costs	$	2,555	$	3,373	Occupancy and equipment
Variable lease costs	547		493		Occupancy and equipment
Short-term lease cost	255		20		Occupancy and equipment
Lease income	(77)		(120)		Occupancy and equipment
Total lease cost	$	3,280	$	3,766

Operating Lease Assets and Liabilities


	March 31,		December 31,
	2022		2021		Statement of Financial Condition Classification
	(In thousands)
Right-of-use assets	$	28,576	$	28,846	Operating lease right-of-use assets
Lease Liabilities	$	30,287	$	30,498	Operating leases liabilities


	March 31, 2022
	(In thousands)
Weighted-average remaining lease term	5.5 years
Weighted-average discount rate	6.6	%

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2022 were as follows:


	Minimum Rent
As of March 31, 2022	(In thousands)
2022	$	6,898
2023	8,310
2024	6,153
2025	4,556
2026	3,001
Thereafter	7,656
Total lease payments	$	36,574
Less imputed interest	6,288
Present value of lease liabilities	$	30,287

OFG, as lessor, leases and subleases real property to lessee tenants under operating leases. As of March 31, 2022, no material lease concessions have been granted to lessees. As of March 31, 2022, OFG, as lessee, has not requested any lease concessions.