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BUSINESS SEGMENTS | 3 Months Ended
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Mar. 31, 2025
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. 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 periodic 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, reinsurance, corporate 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. The accounting policies of the segments are the same as those referred to in Note 1 – “Summary of Significant Accounting Policies” of our 2024 Form 10-K. 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. Financial results are presented, to the extent practicable, as if each business operated on a standalone basis, and includes expense allocations for corporate services used by the business segments, disclosed as intersegment expenses. Significant expense categories identified by management are disclosed for all segments, even though it may not be significant to a particular segment. OFG’s chief operating decision maker (“CODM”) is the chief executive officer (“CEO”). The CODM evaluates the performance of the Banking, Wealth Management and Treasury segments primarily based on net income, which guides resource allocation across segments. CODM continuously monitors performance and adjusts as necessary. Additionally, OFG employs a forecasting process to project future performance and resource needs, which are reviewed and updated regularly to ensure alignment with strategic goals. Following are the results of operations and the selected financial information by operating segment for the quarters ended March 31, 2025 and 2024:
| Quarter Ended March 31, 2025
| Banking |  | Wealth Management |  | Treasury |  | Total Major Segments |  | Eliminations |  | Consolidated Total
| (In thousands)
Interest income | $ | 155,027 |  |  | $ | 5 |  |  | $ | 35,433 |  |  | $ | 190,465 |  |  | $ | (1,243) |  |  | $ | 189,222 |
Interest expense | (34,530) |  |  | — |  |  | (6,864) |  |  | (41,394) |  |  | 1,243 |  |  | (40,151) |
Net interest income | 120,497 |  |  | 5 |  |  | 28,569 |  |  | 149,071 |  |  | — |  |  | 149,071 |
(Provision for) recapture of credit losses | (25,690) |  |  | — |  |  | 2 |  |  | (25,688) |  |  | — |  |  | (25,688) |
Non-interest income, net | 20,700 |  |  | 8,817 |  |  | — |  |  | 29,517 |  |  | — |  |  | 29,517 |
Non-interest expenses [1]: |  |  |  |  |  |  |  |  |  |  |
Compensation and employee benefits | (36,786) |  |  | (2,871) |  |  | (275) |  |  | (39,932) |  |  | — |  |  | (39,932) |
Occupancy, equipment and infrastructure costs | (9,540) |  |  | (178) |  |  | (16) |  |  | (9,734) |  |  | — |  |  | (9,734) |
Depreciation and amortization of premises and equipment | (5,068) |  |  | (13) |  |  | (5) |  |  | (5,086) |  |  | — |  |  | (5,086) |
Electronic banking charges | (9,670) |  |  | — |  |  | — |  |  | (9,670) |  |  | — |  |  | (9,670) |
Information technology expenses | (6,238) |  |  | (55) |  |  | 6 |  |  | (6,287) |  |  | — |  |  | (6,287) |
Professional and service fees | (4,423) |  |  | (642) |  |  | (53) |  |  | (5,118) |  |  | — |  |  | (5,118) |
Loan servicing and clearing expenses | (1,576) |  |  | (590) |  |  | (68) |  |  | (2,234) |  |  | — |  |  | (2,234) |
Amortization of other intangible assets | (288) |  |  | — |  |  | — |  |  | (288) |  |  | — |  |  | (288) |
Intersegment expenses | 830 |  |  | (520) |  |  | (310) |  |  | — |  |  | — |  |  | — |
Other [2] | (14,600) |  |  | (373) |  |  | (130) |  |  | (15,103) |  |  | — |  |  | (15,103) |
Total non-interest expense | (87,359) |  |  | (5,242) |  |  | (851) |  |  | (93,452) |  |  | — |  |  | (93,452) |
Income before income taxes | $ | 28,148 |  |  | $ | 3,580 |  |  | $ | 27,720 |  |  | $ | 59,448 |  |  | $ | — |  |  | $ | 59,448 |
Income tax expense | (13,808) |  |  | (17) |  |  | (51) |  |  | (13,876) |  |  | — |  |  | (13,876) |
Net income | $ | 14,340 |  |  | $ | 3,563 |  |  | $ | 27,669 |  |  | $ | 45,572 |  |  | $ | — |  |  | $ | 45,572 |
Total assets | $ | 9,567,669 |  |  | $ | 37,647 |  |  | $ | 3,350,980 |  |  | $ | 12,956,296 |  |  | $ | (1,227,039) |  |  | $ | 11,729,257 |
Expenditures for long-lived assets | $ | 4,349 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 4,350 |  |  | $ | — |  |  | $ | 4,350 |
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
[2] Other non-interest expenses include:
Banking: Taxes, other than payroll and income taxes; insurance; advertising; data communication and systems; printing, postage, stationary and supplies; communication; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; losses and operational errors, among other business expenses.
Wealth Management: Reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; data communication and systems, among other business expenses.
Treasury: Data communication and systems; taxes, other than payroll and income taxes; insurance, among other business expenses.
Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, the IBE unit, which operates within the Bank. The time deposit with a balance of $279.6 million and $301.4 million at March 31, 2025 and 2024, 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 increase in interest income and interest expense from the prior year period was mainly as a result of higher interest rate.
| Quarter Ended March 31, 2024
| Banking |  | Wealth Management |  | Treasury |  | Total Major Segments |  | Eliminations |  | Consolidated Total
| (In thousands)
Interest income | $ | 150,995 |  |  | $ | 9 |  |  | $ | 33,497 |  |  | $ | 184,501 |  |  | $ | (1,075) |  |  | $ | 183,426 |
Interest expense | (35,849) |  |  | — |  |  | (4,550) |  |  | (40,399) |  |  | 1,075 |  |  | (39,324) |
Net interest income | 115,146 |  |  | 9 |  |  | 28,947 |  |  | 144,102 |  |  | — |  |  | 144,102 |
(Provision for) recapture of credit losses, net | (15,225) |  |  | — |  |  | 104 |  |  | (15,121) |  |  | — |  |  | (15,121) |
Non-interest income, net | 23,065 |  |  | 7,375 |  |  | (92) |  |  | 30,348 |  |  | — |  |  | 30,348 |
Non-interest expenses [1]: |  |  |  |  |  |  |  |  |  |  |
Compensation and employee benefits | (37,285) |  |  | (2,270) |  |  | (261) |  |  | (39,816) |  |  | — |  |  | (39,816) |
Occupancy, equipment and infrastructure costs | (8,835) |  |  | (168) |  |  | (33) |  |  | (9,036) |  |  | — |  |  | (9,036) |
Depreciation and amortization of premises and equipment | (5,276) |  |  | (5) |  |  | (5) |  |  | (5,286) |  |  | — |  |  | (5,286) |
Electronic banking charges | (10,366) |  |  | — |  |  | — |  |  | (10,366) |  |  | — |  |  | (10,366) |
Information technology expenses | (6,556) |  |  | (47) |  |  | — |  |  | (6,603) |  |  | — |  |  | (6,603) |
Professional and service fees | (3,260) |  |  | (679) |  |  | (65) |  |  | (4,004) |  |  | — |  |  | (4,004) |
Loan servicing and clearing expenses | (1,443) |  |  | (527) |  |  | (140) |  |  | (2,110) |  |  | — |  |  | (2,110) |
Amortization of other intangibles assets | (346) |  |  | — |  |  | — |  |  | (346) |  |  | — |  |  | (346) |
Intersegment expenses | 424 |  |  | (267) |  |  | (157) |  |  | — |  |  | — |  |  | — |
Other [2] | (12,623) |  |  | (826) |  |  | (396) |  |  | (13,845) |  |  | — |  |  | (13,845) |
Total non-interest expense | (85,566) |  |  | (4,789) |  |  | (1,057) |  |  | (91,412) |  |  | — |  |  | (91,412) |
Income before income taxes | $ | 37,420 |  |  | $ | 2,595 |  |  | $ | 27,902 |  |  | $ | 67,917 |  |  | $ | — |  |  | $ | 67,917 |
Income tax expense | (18,166) |  |  | (13) |  |  | (46) |  |  | (18,225) |  |  | — |  |  | (18,225) |
Net income | $ | 19,254 |  |  | $ | 2,582 |  |  | $ | 27,856 |  |  | $ | 49,692 |  |  | $ | — |  |  | $ | 49,692 |
Total assets | $ | 9,132,772 |  |  | $ | 32,597 |  |  | $ | 3,144,241 |  |  | $ | 12,309,610 |  |  | $ | (1,150,375) |  |  | $ | 11,159,235 |
Expenditures for long-lived assets | $ | 6,186 |  | — |  | $ | — |  |  | $ | — |  |  | $ | 6,186 |  |  | $ | — |  |  | $ | 6,186 |
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
[2] Other non-interest expenses include:
Banking: Taxes, other than payroll and income taxes; insurance; advertising; data communication and systems; printing, postage, stationary and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; losses and operational errors, among other business expenses.
Wealth Management: Reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; data communication and systems, among other business expenses.
Treasury: Data communication and systems; taxes, other than payroll and income taxes; insurance, among other business expenses.

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- 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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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