STOCKHOLDERS’ EQUITY

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

Preferred Stock and Common Stock

During 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 December 31, 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 December 31, 2022 and 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 December 31, 2022 and 2021, the Bank’s legal surplus amounted to $133.9 million and $117.7 million, respectively. During 2022 and 2021, OFG transferred $16.2 million and $14.4 million to the legal surplus account. 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 2022, OFG repurchased 2,351,868 shares for a total of $64.1 million at an average price of $27.26 per share. During 2021, OFG repurchased 2,052,429 shares under the $50.0 million repurchase program approved at that time for a total of $49.9 million, at an average price of $24.29 per share. During 2020, OFG repurchased 175,000 shares under the $70.0 million repurchase program approved at that time for a total of $2.2 million, at an average price of $12.69 per share.

At December 31, 2022 the number of shares that may yet be purchased under the $100 million program is estimated at 1,302,242 and was calculated by dividing the remaining balance of $35.9 million by $27.56 (closing price of OFG’s common stock at December 31, 2022).

OFG did not repurchase any shares of its common stock during 2022, 2021 and 2020, other than through its publicly announced stock repurchase program.

The activity in connection with common shares held in treasury by OFG for 2022, 2021 and 2020 is set forth below:


	Year Ended December 31,
	2022			2021			2020
	Shares	Dollar Amount		Shares	Dollar Amount		Shares	Dollar Amount
	(In thousands, except shares data)
Beginning of year	10,248,882	$	150,572	8,498,163	$	102,949	8,486,278	$	102,339
Common shares used upon lapse of restricted stock units and options	(296,891)	(3,547)		(301,710)	(2,249)		(163,115)	(1,616)
Common shares repurchased as part of the stock repurchase programs	2,351,868	64,110		2,052,429	49,872		175,000	2,226
End of year	12,303,859	$	211,135	10,248,882	$	150,572	8,498,163	$	102,949