XML 91 R58.htm IDEA: XBRL DOCUMENT v3.25.0.1

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for 2024, 2023, and 2022 were as follows:

			Year Ended December 31,
			2024						2023						2022
			(In thousands)
Current income tax expense			$	34,017					$	16,027					$	16,740
Deferred income tax expense			21,561						67,349						61,126
Total income tax expense			$	55,578					$	83,376					$	77,866

Schedule of Effective Income Tax Rate Reconciliation

OFG’s income tax expense differs from amounts computed by applying the applicable statutory rate to income before income taxes as follows:

			Year Ended December 31,
			2024												2023												2022
			Amount						Rate						Amount						Rate						Amount						Rate
			(Dollars in thousands)
Income tax expense at statutory rates			$	95,156					37.50		%				$	99,468					37.50		%				$	91,539					37.50		%
Tax of exempt income, net			(14,485)						(5.71)		%				(12,201)						(4.60)		%				(11,523)						(4.72)		%
Disallowed expense and net operating loss carryover			234						0.09		%				(350)						(0.13)		%				(267)						(0.11)		%
Change in valuation allowance			(2,168)						(0.85)		%				(1,554)						(0.59)		%				(502)						(0.21)		%
Unrecognized tax benefits, net			69						0.03		%				69						0.03		%				69						0.03		%
Capital gain (loss) at preferential rate			5						—		%				472						0.18		%				(787)						(0.32)		%
Tax rate difference (ordinary vs capital)			23						0.01		%				(817)						(0.31)		%				(247)						(0.10)		%
Preferential tax treatment on qualified investment activities			(16,021)						(6.31)		%				—						—		%				—						—		%
Return to provision adjustments			(2,083)						(0.82)		%				(721)						(0.27)		%				(407)						(0.17)		%
Stock-based compensation windfall			(1,232)						(0.49)		%				—						—		%				—						—		%
Difference in tax rates due to multiple jurisdictions			(1,929)						(0.76)		%				(963)						(0.36)		%				—						—		%
Tax credits			(1,667)						(0.66)		%				—						—		%				—						—		%
Other items, net			(324)						(0.13)		%				(27)						(0.02)		%				(9)						—		%
Income tax expense			$	55,578					21.90		%				$	83,376					31.43		%				$	77,866					31.90		%

Schedule of Unrecognized Tax Benefits Roll Forward

The following table presents a reconciliation of unrecognized tax benefits:

			Year Ended December 31,
			2024						2023						2022
			(In thousands)
Balance at beginning of year			$	936					$	867					$	798
Additions for tax positions of prior years			69						69						69
Balance at end of year			$	1,005					$	936					$	867

Schedule of Deferred Tax Assets and Liabilities

Significant components of OFG’s deferred tax assets and liabilities as of December 31, 2024, and 2023 were as follows:

												December 31,
												2024									2023
												(In thousands)
Deferred tax assets:
Allowance for credit losses and other reserves															$	62,913					$	58,612
Scotiabank PR discount															—						463
Loans and other real estate valuation adjustment															1,211						1,905
Deferred loan charge-offs															4,523						16,147
Net operating loss carry forwards															4,878						6,548
Alternative minimum tax															13,822						13,553
Unrealized net loss on available-for-sale securities															16,125						11,525
Goodwill															—						3,542
Acquired portfolio															29,620						37,374
Other assets allowances															2,022						1,692
Other deferred tax assets															21,470						16,344
Total gross deferred tax asset															156,584						167,705
Less: valuation allowance															(5,421)						(7,589)
Net gross deferred tax assets															151,163						160,116
Deferred tax liabilities:
Acquired loans tax basis															(137,022)						(137,143)
Servicing asset															(23,359)						(15,516)
Building valuation adjustment															(5,668)						(6,104)
FDIC-assisted Eurobank acquisition, net															(5,062)						(5,481)
Customer deposit and customer relationship intangibles															(2,981)						(4,943)
Goodwill															(3,167)						—
Scotiabank PR discount															(980)						—
Other deferred tax liabilities															(7,394)						(8,450)
Total gross deferred tax liabilities															(185,633)						(177,637)
Net deferred tax liability															$	(34,470)					$	(17,521)

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-9

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-2

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 217
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-217

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration