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BUSINESS SEGMENTS
 9 Months Ended
Sep. 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 nine-month periods ended September 30, 2022 and 2021:
Quarter Ended September 30, 2022
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$117,939 $6 $18,829 $136,774 $(2,099)$134,675 
Interest expense(7,891)— (2,373)(10,264)2,099 (8,165)
Net interest income110,048 6 16,456 126,510 — 126,510 
Provision for credit losses7,059 — 61 7,120 — 7,120 
Non-interest income 22,310 8,310 — 30,620 — 30,620 
Non-interest expenses(82,026)(4,635)(831)(87,492)— (87,492)
Intersegment revenue588 — — 588 (588)— 
Intersegment expenses— (412)(176)(588)588 — 
Income before income taxes43,861 3,269 15,388 62,518 — 62,518 
Income tax expense20,589 1 9 20,599 — 20,599 
Net income$23,272 $3,268 $15,379 $41,919 $— $41,919 
Total assets$8,179,384 $27,839 $2,823,826 $11,031,049 $(972,870)$10,058,179 
Nine-Month Period Ended September 30, 2022
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$337,017 $16 $35,787 $372,820 $(2,974)$369,846 
Interest expense(21,796)— (4,226)(26,022)2,974 (23,048)
Net interest income315,221 16 31,561 346,798 — 346,798 
Provision for (recapture of) credit losses15,403 — (41)15,362 — 15,362 
Non-interest income73,662 24,724 50 98,436 — 98,436 
Non-interest expenses(237,477)(14,015)(2,413)(253,905)— (253,905)
Intersegment revenue1,645 — — 1,645 (1,645)— 
Intersegment expenses— (1,131)(514)(1,645)1,645 — 
Income before income taxes$137,648 $9,594 $28,725 $175,967 $— $175,967 
Income tax expense56,067 1 27 56,095 — 56,095 
Net income$81,581 $9,593 $28,698 $119,872 $— $119,872 
Total assets$8,179,384 $27,839 $2,823,826 $11,031,049 $(972,870)$10,058,179 
Quarter Ended September 30, 2021
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$108,475 $7 $3,653 $112,135 $— $112,135 
Interest expense(8,946)— (488)(9,434)— (9,434)
Net interest income99,529 7 3,165 102,701 — 102,701 
Recapture of credit losses(4,815)— (182)(4,997)— (4,997)
Non-interest income24,352 8,079 90 32,521 — 32,521 
Non-interest expenses(72,463)(5,245)(1,216)(78,924)— (78,924)
Intersegment revenue616 — — 616 (616)— 
Intersegment expenses— (318)(298)(616)616 — 
Income before income taxes56,849 2,523 1,923 61,295 — 61,295 
Income tax expense19,614 — 10 19,624 — 19,624 
Net income$37,235 $2,523 $1,913 $41,671 $— $41,671 
Total assets$8,116,648 $24,581 $3,558,568 $11,699,797 $(1,092,932)$10,606,865 
Nine-Month Period Ended September 30, 2021
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$327,151 $25 $9,392 $336,568 $— $336,568 
Interest expense(31,794)— (1,624)(33,418)— (33,418)
Net interest income295,357 25 7,768 303,150 — 303,150 
Recapture of credit losses(5,964)— (1,014)(6,978)— (6,978)
Non-interest income71,440 23,584 107 95,131 — 95,131 
Non-interest expenses(222,960)(13,089)(3,217)(239,266)— (239,266)
Intersegment revenue1,714 — — 1,714 (1,714)— 
Intersegment expenses— (911)(803)(1,714)1,714 — 
Income before income taxes$151,515 $9,609 $4,869 $165,993 $— $165,993 
Income tax expense53,089 — 33 53,122 — 53,122 
Net income$98,426 $9,609 $4,836 $112,871 $— $112,871 
Total assets$8,116,648 $24,581 $3,558,568 $11,699,797 $(1,092,932)$10,606,865