STOCKHOLDERS’ EQUITY

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Preferred Stock and Common Stock

During the nine-month period ended September 30, 2021, OFG redeemed all of its outstanding $92.0 million (in the aggregate) Series A, Series B, and Series D 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. At both September 30, 2022 and December 31, 2021, 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 stock, net of the costs of issuance. At both September 30, 2022 and December 31, 2021, 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, 2022 and December 31, 2021, the Bank’s legal surplus amounted to $129.4 million and $117.7 million, respectively. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Treasury Stock

In January 2022, OFG announced the approval by the Board of Directors of a stock repurchase program to purchase $100 million of its outstanding shares of common stock. The shares of common stock repurchased are held by OFG as treasury shares. During the nine-month period ended September 30, 2022, OFG repurchased 2,351,868 shares for a total of $64.1 million at an average price of $27.26 per share. OFG did not repurchase any shares of its common stock during the nine-month period ended September 30, 2022, other than through its publicly announced stock repurchase program. During the nine-month period ended September 30, 2021, OFG repurchased 1,684,921 shares under the $50.0 million repurchase program approved at that time for a total of $40.2 million, at an average price of $23.83 per share.

At September 30, 2022 the number of shares that may yet be purchased under the $100 million program is estimated at 1,428,166 and was calculated by dividing the remaining balance of $35.9 million by $25.13 (closing price of OFG’s common stock at September 30, 2022).

The activity in connection with common shares held in treasury by OFG for the nine-month periods ended September 30, 2022 and 2021 is set forth below:


	Nine-Month Period Ended September 30,
	2022			2021
	Shares	Dollar Amount		Shares	Dollar Amount
	(In thousands, except shares data)
Beginning of period	10,248,882	$	150,572	8,498,163	$	102,949
Common shares used upon lapse of restricted stock units and options	(278,788)	(3,544)		(275,086)	(2,248)
Common shares repurchased as part of the stock repurchase programs	2,351,868	64,110		1,684,921	40,161
End of period	12,321,962	$	211,138	9,907,998	$	140,862