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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2024
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, 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, and OFG Reinsurance. The core operations of this segment are financial planning, securities brokerage services, investment advisory services, insurance, corporate and individual trust and retirement services.

The Treasury segment encompasses all of OFG’s asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, 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, 2024 and 2023:
Quarter Ended June 30, 2024
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
Total
(In thousands)
Interest income$155,681 $4 $32,929 $188,614 $(956)$187,658 
Interest expense(37,654)— (3,635)(41,289)956 (40,333)
Net interest income118,027 4 29,294 147,325 — 147,325 
Provision for (recapture of) credit losses15,589 — (8)15,581 — 15,581 
Non-interest income 24,723 7,654 99 32,476 — 32,476 
Non-interest expenses(87,506)(4,623)(831)(92,960)— (92,960)
Intersegment revenue415 — — 415 (415)— 
Intersegment expenses— (243)(172)(415)415 — 
Income before income taxes40,070 2,792 28,398 71,260 — $71,260 
Income tax expense 20,096 (5)38 20,129 — 20,129 
Net income$19,974 $2,797 $28,360 $51,131 $— $51,131 
Total assets$9,360,801 $36,217 $3,055,720 $12,452,738 $(1,193,653)$11,259,085 
Six-Month Period Ended June 30, 2024
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
Total
(In thousands)
Interest income$306,676 $13 $66,426 $373,115 $(2,031)$371,084 
Interest expense(73,503)— (8,185)(81,688)2,031 (79,657)
Net interest income233,173 13 58,241 291,427 — 291,427 
Provision for (recapture of) credit losses30,814 — (112)30,702 — 30,702 
Non-interest income, net
47,788 15,029 7 62,824 — 62,824 
Non-interest expenses(173,496)(9,145)(1,731)(184,372)— (184,372)
Intersegment revenue839 — — 839 (839)— 
Intersegment expenses— (510)(329)(839)839 — 
Income before income taxes$77,490 $5,387 $56,300 $139,177 $— $139,177 
Income tax expense38,262 8 84 38,354 — 38,354 
Net income$39,228 $5,379 $56,216 $100,823 $— $100,823 
Total assets$9,360,801 $36,217 $3,055,720 $12,452,738 $(1,193,653)$11,259,085 
Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, an international banking entity organized and licensed under Puerto Rico law, which operates as a unit within the Bank. The time deposit with a balance of $302.4 million and $364.2 million at June 30, 2024 and 2023, respectively, to fund Oriental Overseas operations is included in the Treasury Segment with its corresponding interest expense, and the related interest income is included in the Banking Segment, and are eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The decrease in interest income and interest expense from the prior year period was mainly as a result of lower interest rate and average balance.
Quarter Ended June 30, 2023
BankingWealth
Management		TreasuryTotal Major
Segments		EliminationsConsolidated
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 income124,175 6 15,463 139,644 — 139,644 
Provision for credit losses15,052 — (8)15,044 — 15,044 
Non-interest income23,354 7,868 (1,149)30,073 — 30,073 
Non-interest expenses(83,876)(4,138)(874)(88,888)— (88,888)
Intersegment revenue575 — — 575 (575)— 
Intersegment expenses— (380)(195)(575)575 — 
Income before income taxes49,176 3,356 13,253 65,785 — 65,785 
Income tax expense21,577 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
BankingWealth
Management		TreasuryTotalEliminationsConsolidated
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, net
$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