BUSINESS SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Segment Reporting Information

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
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	120,044		5		15,848		135,897		—		135,897
Provision for credit losses	9,405		—		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 revenue	546		—		—		546		(546)		—
Intersegment expenses	—		(377)		(169)		(546)		546		—
Income before income taxes	47,445		2,949		14,739		65,133		—		65,133
Income tax expense	18,892		—		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
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	100,414		5		4,775		105,194		—		105,194
Provision for (recapture of) credit losses	1,710		—		(159)		1,551		—		1,551
Non-interest income	23,550		8,006		50		31,606		—		31,606
Non-interest expenses	(75,916)		(4,585)		(654)		(81,155)		—		(81,155)
Intersegment revenue	489		—		—		489		(489)		—
Intersegment expenses	—		(343)		(146)		(489)		489		—
Income before income taxes	46,827		3,083		4,184		54,094		—		54,094
Income tax expense	16,564		—		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