XML 41 R31.htm IDEA: XBRL DOCUMENT v3.22.2
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENTS 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, auto 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, OFG Reinsurance and OPC. The core operations of this segment are financial planning, money management and investment banking, securities brokerage services, investment advisory services, insurance, 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, 2022 and 2021:
Quarter Ended June 30, 2022
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$109,292 $5 $12,925 $122,222 $— $122,222 
Interest expense(6,280)— (848)(7,128)— (7,128)
Net interest income103,012 5 12,077 115,094 — 115,094 
Provision for credit losses6,634 — 57 6,691 — 6,691 
Non-interest income 27,802 8,408 — 36,210 — 36,210 
Non-interest expenses(79,656)(4,795)(807)(85,258)— (85,258)
Intersegment revenue543 — — 543 (543)— 
Intersegment expenses— (376)(167)(543)543 — 
Income before income taxes45,067 3,242 11,046 59,355 — 59,355 
Income tax expense18,580 — 343 18,923 — 18,923 
Net income$26,487 $3,242 $10,703 $40,432 $— $40,432 
Total assets$8,235,814 $28,240 $2,997,323 $11,261,377 $(1,013,603)$10,247,774 
Six-Month Period Ended June 30, 2022
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$216,115 $10 $19,046 $235,171 $— $235,171 
Interest expense(13,651)— (1,232)(14,883)— (14,883)
Net interest income202,464 10 17,814 220,288 — 220,288 
Provision for (recapture of) credit losses8,344 — (102)8,242 — 8,242 
Non-interest income51,352 16,414 50 67,816 — 67,816 
Non-interest expenses(155,447)(9,380)(1,586)(166,413)— (166,413)
Intersegment revenue1,057 — — 1,057 (1,057)— 
Intersegment expenses— (719)(338)(1,057)1,057 — 
Income before income taxes$91,082 $6,325 $16,042 $113,449 $— $113,449 
Income tax expense35,062 — 434 35,496 — 35,496 
Net income$56,020 $6,325 $15,608 $77,953 $— $77,953 
Total assets$8,235,814 $28,240 $2,997,323 $11,261,377 $(1,013,603)$10,247,774 
Quarter Ended June 30, 2021
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$110,446 $6 $3,005 $113,457 $— $113,457 
Interest expense(10,712)— (494)(11,206)— (11,206)
Net interest income99,734 6 2,511 102,251 — 102,251 
Provision for (recapture of) credit losses(7,737)— (568)(8,305)— (8,305)
Non-interest income24,215 7,974 8 32,197 — 32,197 
Non-interest expenses(76,623)(5,015)(1,038)(82,676)— (82,676)
Intersegment revenue545 — — 545 (545)— 
Intersegment expenses— (302)(243)(545)545 — 
Income before income taxes55,608 2,663 1,806 60,077 — 60,077 
Income tax expense19,239 — 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
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$218,676 $18 $5,739 $224,433 $— $224,433 
Interest expense(22,848)— (1,136)(23,984)— (23,984)
Net interest income195,828 18 4,603 200,449 — 200,449 
Provision for credit losses(1,149)— (832)(1,981)— (1,981)
Non-interest income47,088 15,505 17 62,610 — 62,610 
Non-interest expenses(150,497)(7,844)(2,001)(160,342)— (160,342)
Intersegment revenue1,098 — — 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 expense33,475 — 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