STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Common Stock

At both June 30, 2024 and December 31, 2023, common stock amounted to $59.9 million.

Additional Paid-in Capital

Additional paid-in capital represents contributed capital in excess of par value of common stock, net of the costs of issuance. At both June 30, 2024 and December 31, 2023, accumulated common stock issuance costs charged against additional paid-in capital amounted to $13.6 million.

Legal Surplus

The Puerto Rico Banking Act requires that a minimum of 10% of the Bank’s net income for the year be transferred to a reserve fund until such fund (legal surplus) equals the total paid-in capital on common and preferred stock. At June 30, 2024 and December 31, 2023, the Bank’s legal surplus amounted to $160.6 million and $151.0 million, respectively. During the quarter and six-month period ended June 30, 2024, OFG transferred $4.8 million and $9.6 million, respectively, to the legal surplus account. During the quarter and six-month period ended June 30, 2023, OFG transferred $4.2 million and $8.7 million, respectively, to the legal surplus account. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Treasury Stock

In January 2024, OFG announced the approval by the Board of Directors of a stock repurchase program for the purchase of up to $50 million of its outstanding shares of common stock. The new stock repurchase program, which is open-ended, replaces the prior stock repurchase program of $100 million approved by the Board of Directors in January 2022, which had a remaining balance of $17.2 million. The shares of common stock repurchased are held by OFG as treasury shares. OFG records treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. During the six-month period ended June 30, 2024, OFG repurchased 669,200 shares for a total of $24.3 million at an average

price of $36.28 per share. Under the prior stock repurchase program, OFG repurchased 670,099 shares for a total of $16.5 million at an average price of $24.57 per share during the six-month period ended June 30, 2023.

At June 30, 2024, the estimated remaining number of shares that may be purchased under the new $50 million program is 686,741 and was calculated by dividing the remaining balance of $25.7 million by $37.45 (closing price of OFG’s common stock at June 30, 2024).

OFG did not repurchase any shares of its common stock during the six-month periods ended June 30, 2024 and 2023, other than through its publicly announced stock repurchase program.

The activity in connection with common shares held in treasury by OFG for the quarters and six-month periods ended June 30, 2024 and 2023 is set forth below:


	Quarter Ended June 30,
	2024				2023
	Shares		Dollar Amount		Shares		Dollar Amount
	(In thousands, except shares data)
Beginning of period	12,668,663		$	226,896	12,273,832		$	212,794
Common shares used upon lapse of restricted stock units and options	(14,161)		(227)		(30,084)		(137)
Common shares repurchased as part of the stock repurchase programs	669,200		24,282		565,299		13,573
End of period	$	13,323,702	$	250,951	$	12,809,047	$	226,230

	Six-Month Period Ended June 30,
	2024				2023
	Shares		Dollar Amount		Shares		Dollar Amount
	(In thousands, except shares data)
Beginning of period	12,820,078		$	228,350	12,303,859		$	211,135
Common shares used upon lapse of restricted stock units and options	(165,576)		(1,681)		(164,911)		(1,372)
Common shares repurchased as part of the stock repurchase programs	669,200		24,282		670,099		16,467
End of period	13,323,702		$	250,951	12,809,047		$	226,230