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BUSINESS SEGMENTS
 9 Months Ended
Sep. 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 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 nine-month periods ended September 30, 2023 and 2022:
Quarter Ended September 30, 2023
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$145,667 $8 $23,905 $169,580 $(3,872)$165,708 
Interest expense(20,662)— (7,131)(27,793)3,872 (23,921)
Net interest income125,005 8 16,774 141,787 — 141,787 
Provision for credit losses16,371 — 59 16,430 — 16,430 
Non-interest income 23,211 7,487 1 30,699 — 30,699 
Non-interest expenses(85,536)(3,778)(844)(90,158)— (90,158)
Intersegment revenue487 — — 487 (487)— 
Intersegment expenses— (337)(150)(487)487 — 
Income before income taxes46,796 3,380 15,722 65,898 — 65,898 
Income tax expense (benefit)20,994 (4)35 21,025 — 21,025 
Net income$25,802 $3,384 $15,687 $44,873 $— $44,873 
Total assets$8,742,283 $34,380 $2,523,536 $11,300,199 $(1,043,061)$10,257,138 
Nine-Month Period Ended September 30, 2023
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$418,091 $19 $67,872 $485,982 $(13,301)$472,681 
Interest expense(48,867)— (19,787)(68,654)13,301 (55,353)
Net interest income369,224 19 48,085 417,328 — 417,328 
Provision for credit losses40,828 — 91 40,919 — 40,919 
Non-interest income68,190 22,631 (1,148)89,673 — 89,673 
Non-interest expenses(254,777)(11,871)(2,618)(269,266)— (269,266)
Intersegment revenue1,610 — — 1,610 (1,610)— 
Intersegment expenses— (1,096)(514)(1,610)1,610 — 
Income before income taxes$143,419 $9,683 $43,714 $196,816 $— $196,816 
Income tax expense61,463 16 62 61,541 — 61,541 
Net income$81,956 $9,667 $43,652 $135,275 $— $135,275 
Total assets$8,742,283 $34,380 $2,523,536 $11,300,199 $(1,043,061)$10,257,138 
Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, an international banking entity organized pursuant to the Puerto Rico International Banking Center Regulatory Act, as amended, which operates as a unit within the Bank. The time deposit with a balance of $308.9 million and $467.0 million at September 30, 2023 and 2022, respectively, is included in the Treasury Segment with its corresponding interest expense, to fund Oriental Overseas operations, which is included in the Banking Segment with its corresponding interest income,
and are 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 balance.

Quarter Ended September 30, 2022
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$117,939 $6 $18,829 $136,774 $(2,099)$134,675 
Interest expense(7,891)— (2,373)(10,264)2,099 (8,165)
Net interest income110,048 6 16,456 126,510 — 126,510 
Provision for credit losses7,059 — 61 7,120 — 7,120 
Non-interest income22,310 8,310 — 30,620 — 30,620 
Non-interest expenses(82,026)(4,635)(831)(87,492)— (87,492)
Intersegment revenue588 — — 588 (588)— 
Intersegment expenses— (412)(176)(588)588 — 
Income before income taxes43,861 3,269 15,388 62,518 — 62,518 
Income tax expense20,589 1 9 20,599 — 20,599 
Net income$23,272 $3,268 $15,379 $41,919 $— $41,919 
Total assets$8,179,384 $27,839 $2,823,826 $11,031,049 $(972,870)$10,058,179 
Nine-Month Period Ended September 30, 2022
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$337,017 $16 $35,787 $372,820 $(2,974)$369,846 
Interest expense(21,796)— (4,226)(26,022)2,974 (23,048)
Net interest income315,221 16 31,561 346,798 — 346,798 
Provision for (recapture of) credit losses15,403 — (41)15,362 — 15,362 
Non-interest income73,662 24,724 50 98,436 — 98,436 
Non-interest expenses(237,477)(14,015)(2,413)(253,905)— (253,905)
Intersegment revenue1,645 — — 1,645 (1,645)— 
Intersegment expenses— (1,131)(514)(1,645)1,645 — 
Income before income taxes$137,648 $9,594 $28,725 $175,967 $— $175,967 
Income tax expense56,067 1 27 56,095 — 56,095 
Net income$81,581 $9,593 $28,698 $119,872 $— $119,872 
Total assets$8,179,384 $27,839 $2,823,826 $11,031,049 $(972,870)$10,058,179