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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
OFG segregates its businesses into the following 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 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 loans and leases, 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 up to December 30, 2022 on which date OPC sold its retirement plan administration business.

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 2022, 2021 and 2020:
Year Ended December 31, 2022
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$465,177 $21 $56,955 $522,153 $(6,580)$515,573 
Interest expense(31,926)— (8,147)(40,073)6,580 (33,493)
Net interest income433,251 21 48,808 482,080 — 482,080 
Provision for credit losses24,111 — 8 24,119 — 24,119 
Non-interest income98,407 33,481 (198)131,690 — 131,690 
Non-interest expenses(323,125)(19,206)(3,215)(345,546)— (345,546)
Intersegment revenue2,187 — — 2,187 (2,187)— 
Intersegment expenses— (1,497)(690)(2,187)2,187 — 
Income before income taxes$186,609 $12,799 $44,697 $244,105 $— $244,105 
Income tax expense77,731 97 38 77,866 — 77,866 
Net income$108,878 $12,702 $44,659 $166,239 $— $166,239 
Total assets$8,347,767 $23,085 $2,432,549 $10,803,401 $(984,621)$9,818,780 
Eliminations include interest income and expense for a borrowing by Oriental Overseas, which is included in the Treasury Segment with its corresponding interest expense, to fund its operations, from the Bank, which is included in the Banking Segment with its corresponding interest income, with an unpaid principal balance of $470.2 million and $262.9 million at December 31, 2022 and 2021, respectively, and is eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from previous year was mainly as a result of FRB interest rate increases and higher average borrowing balance. At December 31, 2020 the borrowing balance was zero.
Year Ended December 31, 2021
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$432,375 $30 $17,072 $449,477 $(278)$449,199 
Interest expense(38,711)— (3,396)(42,107)278 (41,829)
Net interest income393,664 30 13,676 407,370 — 407,370 
Provision for (recapture of) credit losses1,342 — (1,121)221 — 221 
Non-interest income98,950 35,625 (1,365)133,210 — 133,210 
Non-interest expenses(300,568)(20,941)(4,247)(325,756)— (325,756)
Intersegment revenue2,355 — — 2,355 (2,355)— 
Intersegment expenses— (1,269)(1,086)(2,355)2,355 — 
Income before income taxes$193,059 $13,445 $8,099 $214,603 $— $214,603 
Income tax expense68,409 — 43 68,452 — 68,452 
Net income$124,650 $13,445 $8,056 $146,151 $— $146,151 
Total assets$8,041,725 $32,082 $2,894,612 $10,968,419 $(1,068,699)$9,899,720 
Year Ended December 31, 2020
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$462,493 $59 $10,795 $473,347 $— $473,347 
Interest expense(57,811)— (7,104)(64,915)— (64,915)
Net interest income404,682 59 3,691 408,432 — 408,432 
Provision for credit losses92,237 — 435 92,672 — 92,672 
Non-interest income87,810 32,043 4,499 124,352 — 124,352 
Non-interest expenses(320,997)(20,240)(4,049)(345,286)— (345,286)
Intersegment revenue2,443 — — 2,443 (2,443)— 
Intersegment expenses— (1,164)(1,279)(2,443)2,443 — 
Income before income taxes$81,701 $10,698 $2,427 $94,826 $— $94,826 
Income tax expense15,939 4,506 54 20,499 — 20,499 
Net income$65,762 $6,192 $2,373 $74,327 $— $74,327 
Total assets$8,478,326 $32,893 $2,436,029 $10,947,248 $(1,121,237)$9,826,011