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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2023
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 31, 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 the quarters ended March 31, 2023 and 2022:
Quarter Ended March 31, 2023
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$132,425 $5 $21,126 $153,556 $(4,571)$148,985 
Interest expense(12,381)— (5,278)(17,659)4,571 (13,088)
Net interest income120,044 5 15,848 135,897 — 135,897 
Provision for credit losses9,405 — 40 9,445 — 9,445 
Non-interest income 21,625 7,276 — 28,901 — 28,901 
Non-interest expenses(85,365)(3,955)(900)(90,220)— (90,220)
Intersegment revenue546 — — 546 (546)— 
Intersegment expenses— (377)(169)(546)546 — 
Income before income taxes47,445 2,949 14,739 65,133 — 65,133 
Income tax expense18,892 — 12 18,904 — 18,904 
Net income$28,553 $2,949 $14,727 $46,229 $— $46,229 
Total assets$8,484,413 $28,605 $2,591,608 $11,104,626 $(1,047,045)$10,057,581 

Eliminations include interest income and expense for a borrowing by Oriental Overseas, an international banking entity
organized in Puerto Rico pursuant to the International Banking Center Regulatory Act of Puerto Rico, as amended,
that operates as a unit within the Bank, 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 $414.6 million and $263.0 million at March 31, 2023 and 2022, 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 the prior year period was mainly as a result of Federal Open Market Committee of the Board of Governors of the Federal Reserve System (“FRB”) federal funds rate increases and higher average borrowing balance.
Quarter Ended March 31, 2022
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$107,425 $5 $5,730 $113,160 $(211)$112,949 
Interest expense(7,011)— (955)(7,966)211 (7,755)
Net interest income100,414 5 4,775 105,194 — 105,194 
Provision for (recapture of) credit losses1,710 — (159)1,551 — 1,551 
Non-interest income23,550 8,006 50 31,606 — 31,606 
Non-interest expenses(75,916)(4,585)(654)(81,155)— (81,155)
Intersegment revenue489 — — 489 (489)— 
Intersegment expenses— (343)(146)(489)489 — 
Income before income taxes46,827 3,083 4,184 54,094 — 54,094 
Income tax expense16,564 — 9 16,573 — 16,573 
Net income$30,263 $3,083 $4,175 $37,521 $— $37,521 
Total assets$8,176,217 $24,695 $3,036,638 $11,237,550 $(1,047,430)$10,190,120