XML 41 R31.htm IDEA: XBRL DOCUMENT
v3.23.2

BUSINESS SEGMENTS | 6 Months Ended
--- | ---
Jun. 30, 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, when 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 and six month periods ended June 30, 2023 and 2022:
| Quarter Ended June 30, 2023
| Banking |  | Wealth Management |  | Treasury |  | Total Major Segments |  | Eliminations |  | Consolidated Total
| (In thousands)
Interest income | $ | 139,999 |  |  | $ | 6 |  |  | $ | 22,841 |  |  | $ | 162,846 |  |  | $ | (4,858) |  |  | $ | 157,988 |
Interest expense | (15,824) |  |  | — |  |  | (7,378) |  |  | (23,202) |  |  | 4,858 |  |  | (18,344) |
Net interest income | 124,175 |  |  | 6 |  |  | 15,463 |  |  | 139,644 |  |  | — |  |  | 139,644 |
Provision for (recapture of) credit losses | 15,052 |  |  | — |  |  | (8) |  |  | 15,044 |  |  | — |  |  | 15,044 |
Non-interest income | 23,354 |  |  | 7,868 |  |  | (1,149) |  |  | 30,073 |  |  | — |  |  | 30,073 |
Non-interest expenses | (83,876) |  |  | (4,138) |  |  | (874) |  |  | (88,888) |  |  | — |  |  | (88,888) |
Intersegment revenue | 575 |  |  | — |  |  | — |  |  | 575 |  |  | (575) |  |  | — |
Intersegment expenses | — |  |  | (380) |  |  | (195) |  |  | (575) |  |  | 575 |  |  | — |
Income before income taxes | 49,176 |  |  | 3,356 |  |  | 13,253 |  |  | 65,785 |  |  | — |  |  | 65,785 |
Income tax expense | 21,577 |  |  | 20 |  |  | 15 |  |  | 21,612 |  |  | — |  |  | 21,612 |
Net income | $ | 27,599 |  |  | $ | 3,336 |  |  | $ | 13,238 |  |  | $ | 44,173 |  |  | $ | — |  |  | $ | 44,173 |
Total assets | $ | 8,720,156 |  |  | $ | 33,946 |  |  | $ | 2,338,820 |  |  | $ | 11,092,922 |  |  | $ | (1,061,375) |  |  | $ | 10,031,547 |
| Six-Month Period Ended June 30, 2023
| Banking |  | Wealth Management |  | Treasury |  | Total |  | Eliminations |  | Consolidated Total
| (In thousands)
Interest income | $ | 272,424 |  |  | $ | 11 |  |  | $ | 43,967 |  |  | $ | 316,402 |  |  | $ | (9,429) |  |  | $ | 306,973 |
Interest expense | (28,205) |  |  | — |  |  | (12,656) |  |  | (40,861) |  |  | 9,429 |  |  | (31,432) |
Net interest income | 244,219 |  |  | 11 |  |  | 31,311 |  |  | 275,541 |  |  | — |  |  | 275,541 |
Provision for credit losses | 24,457 |  |  | — |  |  | 32 |  |  | 24,489 |  |  | — |  |  | 24,489 |
Non-interest income | 44,979 |  |  | 15,144 |  |  | (1,149) |  |  | 58,974 |  |  | — |  |  | 58,974 |
Non-interest expenses | (169,241) |  |  | (8,093) |  |  | (1,774) |  |  | (179,108) |  |  | — |  |  | (179,108) |
Intersegment revenue | 1,122 |  |  | — |  |  | — |  |  | 1,122 |  |  | (1,122) |  |  | — |
Intersegment expenses | — |  |  | (758) |  |  | (364) |  |  | (1,122) |  |  | 1,122 |  |  | — |
Income before income taxes | $ | 96,622 |  |  | $ | 6,304 |  |  | $ | 27,992 |  |  | $ | 130,918 |  |  | $ | — |  |  | $ | 130,918 |
Income tax expense | 40,469 |  |  | 20 |  |  | 27 |  |  | 40,516 |  |  | — |  |  | 40,516 |
Net income | $ | 56,153 |  |  | $ | 6,284 |  |  | $ | 27,965 |  |  | $ | 90,402 |  |  | $ | — |  |  | $ | 90,402 |
Total assets | $ | 8,720,156 |  |  | $ | 33,946 |  |  | $ | 2,338,820 |  |  | $ | 11,092,922 |  |  | $ | (1,061,375) |  |  | $ | 10,031,547 |
Eliminations include interest income and expense for a borrowing by Oriental Overseas, an international banking entity organized in Puerto Rico pursuant to the Puerto Rico International Banking Center Regulatory Act, as amended, which operates as a unit within the Bank. It 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 $364.2 million and $465.3 million at June 30, 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 June 30, 2022
| Banking |  | Wealth Management |  | Treasury |  | Total Major Segments |  | Eliminations |  | Consolidated Total
| (In thousands)
Interest income | $ | 111,653 |  |  | $ | 5 |  |  | $ | 11,228 |  |  | $ | 122,886 |  |  | $ | (664) |  |  | $ | 122,222 |
Interest expense | (6,893) |  |  | — |  |  | (899) |  |  | (7,792) |  |  | 664 |  |  | (7,128) |
Net interest income | 104,760 |  |  | 5 |  |  | 10,329 |  |  | 115,094 |  |  | — |  |  | 115,094 |
Provision for credit losses | 6,634 |  |  | — |  |  | 57 |  |  | 6,691 |  |  | — |  |  | 6,691 |
Non-interest income | 27,802 |  |  | 8,408 |  |  | — |  |  | 36,210 |  |  | — |  |  | 36,210 |
Non-interest expenses | (79,656) |  |  | (4,795) |  |  | (807) |  |  | (85,258) |  |  | — |  |  | (85,258) |
Intersegment revenue | 543 |  |  | — |  |  | — |  |  | 543 |  |  | (543) |  |  | — |
Intersegment expenses | — |  |  | (376) |  |  | (167) |  |  | (543) |  |  | 543 |  |  | — |
Income before income taxes | 46,815 |  |  | 3,242 |  |  | 9,298 |  |  | 59,355 |  |  | — |  |  | 59,355 |
Income tax expense | 18,580 |  |  | — |  |  | 343 |  |  | 18,923 |  |  | — |  |  | 18,923 |
Net income | $ | 28,235 |  |  | $ | 3,242 |  |  | $ | 8,955 |  |  | $ | 40,432 |  |  | $ | — |  |  | $ | 40,432 |
Total assets | $ | 8,235,814 |  |  | $ | 28,240 |  |  | $ | 2,997,323 |  |  | $ | 11,261,377 |  |  | $ | (1,013,603) |  |  | $ | 10,247,774 |
| Six-Month Period Ended June 30, 2022
| Banking |  | Wealth Management |  | Treasury |  | Total |  | Eliminations |  | Consolidated Total
| (In thousands)
Interest income | $ | 219,078 |  |  | $ | 10 |  |  | $ | 16,958 |  |  | $ | 236,046 |  |  | $ | (875) |  |  | $ | 235,171 |
Interest expense | (13,904) |  |  | — |  |  | (1,854) |  |  | (15,758) |  |  | 875 |  |  | (14,883) |
Net interest income | 205,174 |  |  | 10 |  |  | 15,104 |  |  | 220,288 |  |  | — |  |  | 220,288 |
Provision for (recapture of) credit losses | 8,344 |  |  | — |  |  | (102) |  |  | 8,242 |  |  | — |  |  | 8,242 |
Non-interest income | 51,352 |  |  | 16,414 |  |  | 50 |  |  | 67,816 |  |  | — |  |  | 67,816 |
Non-interest expenses | (155,447) |  |  | (9,380) |  |  | (1,586) |  |  | (166,413) |  |  | — |  |  | (166,413) |
Intersegment revenue | 1,057 |  |  | — |  |  | — |  |  | 1,057 |  |  | (1,057) |  |  | — |
Intersegment expenses | — |  |  | (719) |  |  | (338) |  |  | (1,057) |  |  | 1,057 |  |  | — |
Income before income taxes | $ | 93,792 |  |  | $ | 6,325 |  |  | $ | 13,332 |  |  | $ | 113,449 |  |  | $ | — |  |  | $ | 113,449 |
Income tax expense | 35,062 |  |  | — |  |  | 434 |  |  | 35,496 |  |  | — |  |  | 35,496 |
Net income | $ | 58,730 |  |  | $ | 6,325 |  |  | $ | 12,898 |  |  | $ | 77,953 |  |  | $ | — |  |  | $ | 77,953 |
Total assets | $ | 8,235,814 |  |  | $ | 28,240 |  |  | $ | 2,997,323 |  |  | $ | 11,261,377 |  |  | $ | (1,013,603) |  |  | $ | 10,247,774 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration