10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number: 001-12647

OFG Bancorp

(Exact name of registrant as specified in its charter)

Commonwealth of Puerto Rico	66-0538893
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

254 Muñoz Rivera Avenue	00918
San Juan, Puerto Rico	(Zip code)
(Address of principal executive offices)

(787) 771-6800

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, par value $1.00 per share	OFG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þNo ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þNo ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☑	Large Accelerated Filer	☐	Accelerated Filer	☐	Non-Accelerated Filer	☐	Smaller Reporting Company
						☐	Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

46,561,532 common shares ($1.00 par value per share) outstanding as of July 31, 2024

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION		Page
Item 1.	Financial Statements
	Unaudited Consolidated Statements of Financial Condition	3
	Unaudited Consolidated Statements of Operations	5
	Unaudited Consolidated Statements of Comprehensive Income	7
	Unaudited Consolidated Statements of Changes in Stockholders’ Equity	8
	Unaudited Consolidated Statements of Cash Flows	9
	Notes to Unaudited Consolidated Financial Statements
	Note 1 – Summary of Significant Accounting Policies	12
	Note 2 – Restricted Cash	13
	Note 3 – Investment Securities	13
	Note 4 – Loans	18
	Note 5 – Allowance for Credit Losses	35
	Note 6 – Foreclosed Real Estate	38
	Note 7 – Servicing Assets	38
	Note 8 – Goodwill and Other Intangible Assets	39
	Note 9 – Accrued Interest Receivable and Other Assets	40
	Note 10 – Deposits and Related Interest	41
	Note 11 – Borrowings and Related Interest	42
	Note 12 – Income Taxes	43
	Note 13 – Regulatory Capital Requirements	44
	Note 14 – Stockholders’ Equity	45
	Note 15 – Accumulated Other Comprehensive Loss	46
	Note 16 – Earnings per Common Share	48
	Note 17 – Guarantees	48
	Note 18 – Commitments and Contingencies	50
	Note 19 – Operating Leases	52
	Note 20 – Fair Value of Financial Instruments	53
	Note 21 – Banking and Financial Service Revenues	60
	Note 22 – Business Segments	61
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	64
	Critical Accounting Policies and Estimates	65
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	99
Item 4.	Controls and Procedures	105
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	105
Item 1A.	Risk Factors	105
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	105
Item 3.	Defaults upon Senior Securities	106
Item 4.	Mines Safety Disclosures	106
Item 5.	Other Information	106
Item 6.	Exhibits	107
Signatures		108

FORWARD-LOOKING STATEMENTS

The information included in this quarterly report on Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to the financial condition, results of operations, plans, objectives, future performance and business of OFG Bancorp (“we,” “our,” “us” or “OFG”), including, but not limited to, statements with respect to the adequacy of the allowance for credit losses (“ACL”), delinquency trends, market risk and the impact of interest rate changes, capital markets conditions, capital adequacy and liquidity, and the effect of legal proceedings and new accounting standards on OFG’s financial condition and results of operations. All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions are generally intended to identify forward-looking statements.

These statements are not guarantees of future performance and involve certain risks, uncertainties, estimates and assumptions by management that are difficult to predict. Various factors, some of which by their nature are beyond OFG’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Factors that might cause such a difference include, but are not limited to:

•the rate of growth in the economy and employment levels, inflationary pressures or recessionary conditions, as well as general business and economic conditions;

•changes in interest rates, as well as the magnitude of such changes;

•a credit default by municipalities of the government of Puerto Rico;

•a credit default by the U.S. government or a downgrade in the credit ratings of the U.S. government;

•the impacts related to or resulting from bank failures and other volatility, including potential increased regulatory and compliance requirements and costs and potential impacts to macroeconomic conditions, which could affect the ability of depository institutions, including the Bank, to attract and retain depositors and to borrow or raise capital;

•the actual or perceived soundness of other financial institutions, including as a result of the financial or operational failure of a major financial institution, or concerns about the creditworthiness of such a financial institution or its ability to fulfill its obligations, which can cause substantial and cascading disruption within the financial markets;

•amendments to the fiscal plans approved by the Financial Oversight and Management Board for Puerto Rico;

•determinations in the court-supervised debt-restructuring process under Title III of PROMESA for the Puerto Rico government and all of its agencies, including some of its public corporations, as well as the ability to successfully implement any court-approved plan of adjustment;

•unforeseen or catastrophic events, including extreme weather events, other natural disasters, man-made disasters, pandemics, war or other international conflicts and acts of terrorism (including cyber-attacks), or utility disruptions, which could cause a disruption in our operations or other adverse consequences for our business;

•the impact of property, credit and other losses in Puerto Rico as a result of hurricanes, earthquakes and other natural disasters;

•the amount of government financial assistance for the reconstruction of Puerto Rico’s infrastructure, which was impacted by the effects of Hurricane Maria in 2017, earthquakes in 2020, and Hurricane Fiona in 2022;

•the pace and magnitude of Puerto Rico’s economic recovery;

•the fiscal and monetary policies of the federal government and its agencies;

•changes in federal bank regulatory and supervisory policies, including with respect to required levels of capital;

•the relative strength or weakness of the commercial and consumer credit sectors and the real estate market in Puerto Rico;

•the performance of the stock and bond markets;

1

•competition in the financial services industry;

•possible legislative, tax or regulatory changes; and

•factors beyond our control such as severe weather conditions, natural disasters, pandemics, power loss, disruptions in telecommunications, terrorism and other catastrophic events, any of which could significantly affect delinquency rates, loan and accounts receivable balances and other aspects of our business and results of operations.

Other possible events or factors that could cause results or performance to differ materially from those expressed in these forward-looking statements include the following: negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of non-performing assets, charge-offs and provision for credit losses expense; changes in interest rates and market liquidity which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets; adverse movements and volatility in debt and equity capital markets; changes in market rates and prices which may adversely impact the value of financial assets and liabilities; risk of impairment of investment securities, goodwill, other intangible assets or deferred tax assets; liabilities resulting from litigation and regulatory investigations; changes in accounting standards, rules and interpretations; increased competition; OFG’s ability to grow its core businesses; decisions to downsize, sell or close units or otherwise change OFG’s business mix; and management’s ability to identify and manage these and other risks.

All forward-looking statements included in this quarterly report on Form 10-Q are based upon information available to OFG as of the date of this quarterly report on Form 10-Q, and other than as required by law, including the requirements of applicable securities laws, OFG assumes no obligation to update or revise any such forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

2

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

AS OF JUNE 30, 2024 AND DECEMBER 31, 2023

	June 30,		December 31,
	2024		2023
	(In thousands)
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	735,346	$	743,550
Money market investments	5,083		4,623
Total cash and cash equivalents	740,429		748,173
Investments:
Trading securities, at fair value, with amortized cost of $163 (December 31, 2023 - $163)	16		13
Investment securities available-for-sale, at fair value, with amortized cost of $2,198,116 (December 31, 2023 - $2,177,761); no allowance for credit losses	2,096,306		2,099,264
Investment securities held-to-maturity, at amortized cost, with fair value of $279,437 (December 31, 2023 - $490,764); no allowance for credit losses	338,621		549,024
Equity securities	41,074		38,469
Total investments	2,476,017		2,686,770
Loans:
Loans held-for-sale, at lower of cost or fair value	20,736		28,345
Loans held-for-investment, net of allowance for credit losses of $157,301 (December 31, 2023 - $161,106)	7,482,406		7,373,273
Total loans	7,503,142		7,401,618
Other assets:
Foreclosed real estate	6,526		10,780
Accrued interest receivable	72,969		71,400
Deferred tax assets, net	4,094		4,923
Premises and equipment, net	104,384		104,102
Customers' liability on acceptances	28,504		25,576
Servicing assets	49,789		49,520
Goodwill	84,241		84,241
Other intangible assets	17,738		20,694
Operating lease right-of-use assets	20,298		21,725
Other assets	150,954		114,931
Total assets	$	11,259,085	$	11,344,453

See notes to unaudited consolidated financial statements.

3

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

AS OF JUNE 30, 2024 AND DECEMBER 31, 2023 (CONTINUED)

	June 30,		December 31,
	2024		2023
	(In thousands)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits	$	6,017,364	$	6,050,428
Savings accounts	2,002,342		2,088,102
Time deposits	1,585,544		1,623,639
Total deposits	9,605,250		9,762,169
Borrowings:
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	200,741		200,768
Other borrowings	—		2
Total borrowings	200,741		200,770
Other liabilities:
Acceptances executed and outstanding	28,504		25,576
Operating lease liabilities	22,605		24,029
Deferred tax liabilities, net	33,873		22,444
Accrued expenses and other liabilities	140,410		115,985
Total liabilities	10,031,383		10,150,973
Commitments and contingencies (See Note 18)
Stockholders’ equity:
Common stock, $1 par value; 100,000,000 shares authorized; 59,885,234 shares issued: 46,561,532 shares outstanding (December 31, 2023 - 59,885,234 shares issued; 47,065,156 shares outstanding)	59,885		59,885
Additional paid-in capital	637,895		638,667
Legal surplus	160,560		150,967
Retained earnings	706,807		639,324
Treasury stock, at cost, 13,323,702 shares (December 31, 2023 - 12,820,078 shares)	(250,951)		(228,350)
Accumulated other comprehensive loss, net of tax of $15,316 (December 31, 2023 - $11,484)	(86,494)		(67,013)
Total stockholders’ equity	1,227,702		1,193,480
Total liabilities and stockholders’ equity	$	11,259,085	$	11,344,453

See notes to unaudited consolidated financial statements.

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OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE QUARTERS AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands, except per share data)
Interest income:
Loans	$	154,257	$	135,518	$	303,851	$	263,829
Mortgage-backed securities	20,893		10,593		40,687		20,667
Investment securities and other	12,508		11,877		26,546		22,477
Total interest income	187,658		157,988		371,084		306,973
Interest expense:
Deposits	37,812		15,916		74,604		28,413
Advances from FHLB and other borrowings	2,521		2,428		5,053		3,019
Total interest expense	40,333		18,344		79,657		31,432
Net interest income	147,325		139,644		291,427		275,541
Provision for credit losses	15,581		15,044		30,702		24,489
Net interest income after provision for credit losses	131,744		124,600		260,725		251,052
Non-interest income:
Banking service revenue	18,781		17,440		36,040		34,953
Wealth management revenue	8,440		8,194		16,547		15,314
Mortgage banking activities	4,864		5,225		9,557		9,123
Total banking and financial service revenues	32,085		30,859		62,144		59,390
Net loss on sale of securities	—		(1,149)		(7)		(1,149)
Other non-interest income	391		363		687		733
Total non-interest income	32,476		30,073		62,824		58,974

See notes to unaudited consolidated financial statements.

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OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE QUARTERS AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023 (CONTINUED)

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands, except per share data)
Non-interest expense:
Compensation and employee benefits	38,467		37,841		78,283		76,314
Occupancy, equipment and infrastructure costs	14,393		14,362		28,715		28,619
Electronic banking charges	11,687		10,262		22,053		20,598
Information technology expenses	6,565		7,188		13,168		13,606
Professional and service fees	5,117		5,319		9,121		10,383
Taxes, other than payroll and income taxes	3,224		3,265		6,467		6,538
Insurance	3,117		2,689		5,793		5,606
Loan servicing and clearing expenses	1,890		1,866		4,000		4,133
Advertising, business promotion, and strategic initiatives	2,445		2,063		4,824		4,098
Communication	1,219		1,160		2,300		2,189
Printing, postage, stationery and supplies	939		866		1,898		1,596
Foreclosed real estate and other repossessed assets income, net of expenses	(731)		(2,320)		(63)		(1,527)
Other	4,628		4,327		7,813		6,955
Total non-interest expense	92,960		88,888		184,372		179,108
Income before income taxes	71,260		65,785		139,177		130,918
Income tax expense	20,129		21,612		38,354		40,516
Net income available to common shareholders	$	51,131	$	44,173	$	100,823	$	90,402
Earnings per common share:
Basic	$	1.09	$	0.93	$	2.14	$	1.91
Diluted	$	1.08	$	0.93	$	2.13	$	1.89
Average common shares outstanding and equivalents	47,131		47,490		47,244		47,716
Cash dividends per share of common stock	$	0.25	$	0.22	$	0.50	$	0.44

See notes to unaudited consolidated financial statements.

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OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE QUARTERS AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Net income	$	51,131	$	44,173	$	100,823	$	90,402
Other comprehensive (loss) income before tax:
Unrealized (loss) gain on securities available-for-sale	(5,763)		(14,342)		(23,320)		3,583
Realized loss on sale of securities available-for-sale	—		1,149		7		1,149
Unrealized loss on cash flow hedges	—		(155)		—		(286)
Other comprehensive (loss) income before taxes	(5,763)		(13,348)		(23,313)		4,446
Income tax effect	1,000		2,124		3,832		(601)
Other comprehensive (loss) income after taxes	(4,763)		(11,224)		(19,481)		3,845
Comprehensive income	$	46,368	$	32,949	$	81,342	$	94,247

See notes to unaudited consolidated financial statements.

7

OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES

IN STOCKHOLDERS’ EQUITY

FOR THE QUARTERS AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Common stock:
Balance at the beginning and end of period	59,885		59,885		59,885		59,885
Additional paid-in capital:
Balance at beginning of period	636,208		634,785		638,667		636,793
Stock-based compensation expense	1,966		1,403		3,130		2,368
Lapsed restricted stock units	(279)		(137)		(3,902)		(3,110)
Balance at end of period	637,895		636,051		637,895		636,051
Legal surplus:
Balance at beginning of period	155,732		138,333		150,967		133,901
Transfer from retained earnings	4,828		4,234		9,593		8,666
Balance at end of period	160,560		142,567		160,560		142,567
Retained earnings:
Balance at beginning of period	672,455		547,641		639,324		516,371
Net income	51,131		44,173		100,823		90,402
Cash dividends declared on common stock[1]	(11,951)		(10,538)		(23,747)		(21,065)
Transfer to legal surplus	(4,828)		(4,234)		(9,593)		(8,666)
Balance at end of period	706,807		577,042		706,807		577,042
Treasury stock:
Balance at beginning of period	(226,896)		(212,794)		(228,350)		(211,135)
Stocks repurchased	(24,282)		(13,573)		(24,282)		(16,467)
Lapsed restricted stock units and options	227		137		1,681		1,372
Balance at end of period	(250,951)		(226,230)		(250,951)		(226,230)
Accumulated other comprehensive loss, net of tax:
Balance at beginning of period	(81,731)		(78,340)		(67,013)		(93,409)
Other comprehensive (loss) gain, net of tax	(4,763)		(11,224)		(19,481)		3,845
Balance at end of period	(86,494)		(89,564)		(86,494)		(89,564)
Total stockholders’ equity	$	1,227,702	$	1,099,751	$	1,227,702	$	1,099,751

[1] Dividends declared per common share during the quarter ended June 30, 2024 - $0.25 (June 30, 2023 - $0.22). Dividends declared per common share during the six-month period ended June 30, 2024 - $0.50 (June 30, 2023 - $0.44).

See notes to unaudited consolidated financial statements.

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OFG BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

	Six-Month Period Ended June 30,
	2024		2023
	(In thousands)
Cash flows from operating activities:
Net income	$	100,823	$	90,402
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred loan origination fees, net of costs, and fair value premiums on loans	855		323
Amortization of investment securities discounts, net of accretion of premiums	(5,359)		(3,191)
Amortization of other intangible assets	2,956		3,450
Net change in operating leases	3		184
Depreciation and amortization of premises and equipment	10,600		10,210
Deferred income tax expense, net	16,090		34,580
Provision for credit losses	30,702		24,489
Stock-based compensation	3,130		2,368
(Gain) loss on:
Sale of securities	7		1,149
Sale of loans	(660)		(287)
Foreclosed real estate and other repossessed assets	(1,867)		(4,472)
Sale of other assets	(1)		25
Originations and purchases of loans held-for-sale	(60,378)		(59,847)
Proceeds from sale of loans held-for-sale	56,045		5,596
Net (increase) decrease in:
Accrued interest receivable	(1,576)		(947)
Servicing assets	(269)		955
Other assets	(34,323)		(6,458)
Net (decrease) increase in:
Accrued interest on deposits and borrowings	(1,226)		1,083
Accrued expenses and other liabilities	40,525		(269)
Net cash provided by operating activities	156,077		99,343
See notes to unaudited consolidated financial statements.

9

OFG BANCORP  UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023 (CONTINUED)
	Six-Month Period Ended June 30,
	2024		2023
	(In thousands)
Cash flows from investing activities:
Purchases of:
Investment securities available-for-sale	(545,356)		(47,650)
FHLB stock	(28,016)		(9,681)
Equity securities	(1,813)		(2,642)
Maturities and redemptions of:
Investment securities available-for-sale	418,623		176,280
Investment securities held-to-maturity	210,817		10,311
FHLB stock	27,224		44
Proceeds from sales of:
Investment securities available-for-sale	149,406		202,133
Foreclosed real estate and other repossessed assets, including write-offs	27,159		30,957
Premises and equipment	1		30
Origination and purchase of loans, excluding loans held-for-sale	(1,435,894)		(1,801,377)
Principal repayment of loans	1,246,285		1,473,429
Additions to premises and equipment	(10,903)		(7,656)
Net cash provided by investing activities	$	57,533	$	24,178
Cash flows from financing activities:
Net (decrease) increase in:
Deposits	(172,551)		(35,417)
FHLB advances and other borrowings	(2)		198,714
Exercise of stock options and restricted units lapsed, net	(2,221)		(1,738)
Purchase of treasury stock	(24,282)		(16,467)
Dividends paid on common stock	(22,298)		(20,104)
Net cash (used in) provided by financing activities	$	(221,354)	$	124,988
Net change in cash and cash equivalents	(7,744)		248,509
Cash and cash equivalents at beginning of period	748,173		550,464
Cash and cash equivalents at end of period	$	740,429	$	798,973

See notes to unaudited consolidated financial statements.

10

OFG BANCORP UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023 (CONTINUED)
	Six-Month Period Ended June 30,
	2024		2023
	(In thousands)
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Statements of Financial Condition:
Cash and due from banks	$	735,346	$	795,546
Money market investments	5,083		3,427
Total cash and cash equivalents at end of period	$	740,429	$	798,973
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities:
Interest paid	$	78,619	$	27,706
Income taxes paid	$	11,822	$	3,438
Operating lease liabilities paid	$	4,911	$	5,024
Mortgage loans held-for-sale securitized into mortgage-backed securities	$	38,089	$	53,713
Transfer from loans to foreclosed real estate and other repossessed assets	$	23,429	$	25,785
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio	$	26,840	$	86
Reclassification of loans held-for-sale portfolio to held-for-investment portfolio	$	1,084	$	8,736
Financed sales of foreclosed real estate	$	710	$	488
Delinquent loans booked under the GNMA buy-back option	$	19,008	$	18,417

See notes to unaudited consolidated financial statements.

11

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

OFG is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. OFG operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer and investment adviser, Oriental Financial Services LLC (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”), a captive reinsurance company, OFG Reinsurance Ltd (“OFG Reinsurance”), and OFG Ventures LLC (“OFG Ventures”), which holds investments. Through these subsidiaries and their respective divisions, OFG provides a wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory, and securities brokerage services, as well as corporate and individual trust services.

The Bank has a wholly-owned operating subsidiary, OFG USA LLC (“OFG USA”), which is a commercial lender organized in Delaware. In addition, Oriental International Bank Inc. (“OIB”), a wholly-owned subsidiary of the Bank, and Oriental Overseas, a division of the Bank, are international banking entities licensed pursuant to the International Banking Center Regulatory Act of Puerto Rico, as amended. OIB and Oriental Overseas offer the Bank certain Puerto Rico tax advantages. Their activities are limited under Puerto Rico law to persons located in Puerto Rico with assets/liabilities located outside of Puerto Rico. In March 2024, the Bank organized OBPEF LLC (“OBPEF”), as a wholly-owned subsidiary of the Bank and a private equity fund under the Puerto Rico Incentives Code, as amended, which objective is to provide financing to eligible borrowers, whether in the form of senior or subordinated debt, to support the economic development of Puerto Rico.

Basis of Presentation

The accompanying unaudited consolidated financial statements of OFG have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, these consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of OFG on a consolidated basis, and all such adjustments are of a normal recurring nature. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in OFG’s annual report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). Operating results for the six-month period ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. OFG evaluated subsequent events through the filing date of this report with the SEC and has recorded or disclosed those material events or transactions as described within the accompanying consolidated financial statements and notes. Material estimates that are particularly susceptible to significant change in the near term relate mainly to the determination of the allowance for credit losses.

New Accounting Updates Not Yet Adopted

Codification Improvements—Amendments to Remove References to the Concepts Statements. In March 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-02, which removes various references to concept statements from the FASB Accounting Standards Codification. The ASU intends to simplify the Accounting Standards Codification and distinguish between non-authoritative and authoritative guidance. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The amendments can be applied prospectively or retrospectively. We will adopt this guidance when it becomes effective, in the first quarter of 2025 and on a prospective basis, and the impact on our financial statements and disclosures is not expected to be material.

Compensation—Stock Compensation. In March 2024, the FASB issued ASU 2024-01 to improve GAAP by adding an illustrative example to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar awards should be accounted for in accordance with Topic 718. The ASU 2024-01 is intended to reduce complexity and diversity in practice. For public business entities, the amendments will be effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is

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permitted. Although OFG is currently evaluating the impact that the adoption of this guidance will have on its financial statements and disclosures, we do not expect the impact to be material.

Segment Reporting—Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07 to enhance segment reporting by expanding the breadth and frequency of segment disclosures required for public entities. The amendments in this ASU will allow registrants to disclose multiple measures of segment profit or loss and it also clarifies that single reportable segment entities must apply Topic 280 in its entirety. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We will adopt this guidance when it becomes effective in the annual period of 2024 on a retrospective basis to all periods presented in the financial statements, and the impact on our financial statements and disclosures is not expected to be material.

Income Taxes—Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09 to enhance income tax disclosures and requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The ASU’s two primary enhancements will require further disaggregation for existing disclosures for the effective tax rate reconciliation and income taxes paid. More specifically, the amendments will require entities to disclose: a tabular effective tax rate reconciliation, broken out into specific categories with certain reconciling items above a 5% threshold further broken out by nature and jurisdiction; and income taxes paid (net of refunds received), broken out between federal, state and foreign, and net amounts paid to an individual jurisdiction that exceed 5% of the total. The amendments in this update are effective for annual periods beginning after December 15, 2024. Entities are permitted to early adopt these amendments. The amendments should be applied prospectively, but retrospective application is permitted. We will adopt this guidance when it becomes effective, in the annual period of 2025 on a prospective basis, and the impact on our financial statements and disclosures is not expected to be material.

The Enhancement and Standardization of Climate-Related Disclosures for Investors. On March 6, 2024, the SEC issued a final rule under SEC Release No. 33-11275 that requires registrants to provide climate disclosures in their annual reports and registration statements. The rule includes disclosure concerning the use of carbon offsets or renewable energy credits or certificates if their use is a material component of the registrant’s plans to achieve its disclosed climate-related targets or goals, and certain disclosures about Scope 1 and/or Scope 2 greenhouse gas (“GHG”) emissions, if material. It also requires disclosures of amounts related to the effects of severe weather events and other natural conditions. The disclosure requirements will apply to OFG's fiscal year beginning January 1, 2025. We will adopt this rule when it becomes effective. OFG is currently evaluating the final rule, but the impact on our financial statements and disclosures is not expected to be material.

NOTE 2 – RESTRICTED CASH

The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits, excluding government deposits that are secured with pledged collateral. The amount of those minimum average reserve balances for the week that covered June 30, 2024 was $474.2 million (December 31, 2023 - $464.5 million). At June 30, 2024 and December 31, 2023, the Bank complied with this requirement. Cash and due from bank, as well as other short-term highly liquid securities, are used to cover the required average reserve balances.

NOTE 3 – INVESTMENT SECURITIES

Money Market Investments

OFG considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less at the date of acquisition. At June 30, 2024 and December 31, 2023, money market instruments included as part of cash and cash equivalents amounted to $5.1 million and $4.6 million, respectively.

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Investment Securities

The amortized cost, gross unrealized gains and losses, fair value, weighted average yield and contractual maturities of the securities owned by OFG at June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due from 1 to 5 years	$	8,933	$	—	$	421	$	8,512	1.98	%
Due from 5 to 10 years	36,742		—		2,517		34,225		1.97	%
Due after 10 years	1,512,171		5,261		69,008		1,448,424		4.28	%
Total FNMA and FHLMC certificates	1,557,846		5,261		71,946		1,491,161		4.21	%
GNMA certificates
Due from 1 to 5 years	7,965		—		319		7,646		1.72	%
Due from 5 to 10 years	13,552		7		883		12,676		2.23	%
Due after 10 years	409,828		5,017		38,662		376,183		3.54	%
Total GNMA certificates	431,345		5,024		39,864		396,505		3.47	%
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years	6,896		—		274		6,622		1.78	%
Due after 10 years	790		—		11		779		5.06	%
Total CMOs issued by US government-sponsored agencies	7,686		—		285		7,401		2.11	%
Total mortgage-backed securities	1,996,877		10,285		112,095		1,895,067		4.04	%
Investment securities
US Treasury securities
Due less than 1 year	200,656		2		—		200,658		5.41	%
Other debt securities
Due less than 1 year	500		—		—		500		3.25	%
Due from 1 to 5 years	83		—		2		81		2.97	%
Total other debt securities	583		—		2		581		3.21	%
Total investment securities	201,239		2		2		201,239		5.41	%
Total securities available for sale	$	2,198,116	$	10,287	$	112,097	$	2,096,306	4.17	%
	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years	$	303,621	$	—	$	59,256	$	244,365	1.72	%
Investment securities
Other debt securities
Due from 1 to 5 years	35,000		72		—		35,072		6.33	%
Total securities held to maturity	$	338,621	$	72	$	59,256	$	279,437	2.20	%

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	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due from 1 to 5 years	$	6,972	—		$	311	$	6,661	1.76	%
Due from 5 to 10 years	45,835		—		2,767		43,068		2.00	%
Due after 10 years	1,411,327		8,989		54,100		1,366,216		4.11	%
Total FNMA and FHLMC certificates	1,464,134		8,989		57,178		1,415,945		4.03	%
GNMA certificates
Due less than 1 year	5		—		—		5		1.31	%
Due from 1 to 5 years	8,851		—		351		8,500		1.71	%
Due from 5 to 10 years	17,113		16		955		16,174		2.19	%
Due after 10 years	380,306		4,419		33,110		351,615		3.38	%
Total GNMA certificates	406,275		4,435		34,416		376,294		3.30	%
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years	9,071		—		364		8,707		1.78	%
Due from 5 to 10 years	54		—		—		54		2.14	%
Due after 10 years	861		—		12		849		5.07	%
Total CMOs issued by US government-sponsored agencies	9,986		—		376		9,610		2.06	%
Total mortgage-backed securities	1,880,395		13,424		91,970		1,801,849		3.86	%
Investment securities
US Treasury securities
Due less than 1 year	296,747		52		—		296,799		5.40	%
Other debt securities
Due less than 1 year	500		—		—		500		3.25	%
Due from 1 to 5 years	119		—		3		116		2.97	%
Total other debt securities	619		—		3		616		3.20	%
Total investment securities	297,366		52		3		297,415		5.39	%
Total securities available for sale	$	2,177,761	$	13,476	$	91,973	$	2,099,264	4.07	%
	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years	$	314,710	$	—	$	56,767	$	257,943	1.72	%
Investment securities
US Treasury securities
Due less than 1 year	199,314		—		1,548		197,766		3.33	%

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Other debt securities
Due from 1 to 5 years	35,000		55		—		35,055		6.36	%
Total securities held to maturity	$	549,024	$	55	$	58,315	$	490,764	2.60	%

Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

The weighted average yield on debt securities available-for-sale is based on amortized cost and does not give effect to changes in fair value. Weighted average yields on tax-exempt obligations have been computed on a fully taxable equivalent basis.

At June 30, 2024 and December 31, 2023, most securities held by OFG are issued by U.S. government entities and government-sponsored agencies that have a zero-credit loss assumption and, therefore, have no allowance for credit losses.

Investment securities at June 30, 2024 include $1.648 billion pledged to secure government deposits and regulatory collateral, of which $1.602 billion serve as collateral for public funds. For regulatory collateral, the secured parties are not permitted to sell or repledge them. Investment securities as of December 31, 2023 include $1.624 billion pledged to secure government deposits, derivatives, and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $1.575 billion serve as collateral for public funds.

At June 30, 2024 and December 31, 2023, the Bank’s international banking entity, OIB, held short-term US Treasury securities in the amount of $525 thousand and $325 thousand, respectively, as the legal reserve required for international banking entities under Puerto Rico law. At both June 30, 2024 and December 31, 2023, the Bank’s international banking entity, Oriental Overseas, held short-term US Treasury securities in the amount of $325 thousand as the legal reserve required for international banking entities under Puerto Rico law. These instruments cannot be withdrawn or transferred without the prior written approval of the Office of the Commissioner of Financial Institutions.

During the six-month periods ended June 30, 2024 and 2023, OFG retained securitized GNMA pools totaling $38.1 million and $41.1 million, respectively, at a yield of 5.09% and 5.16%, respectively, from its own originations.

During the six-month periods ended June 30, 2023, OFG retained FNMA pools totaling $12.6 million at a yield of 5.31%, from its own originations. OFG did not retain FNMA pools during the six-month periods ended June 30, 2024.

During the six-month periods ended June 30, 2024 and 2023, OFG sold $149.4 million and $203.3 million, respectively, of available for sale US Treasury securities and recognized a $7 thousand and $1.1 million, respectively, in losses on the sale. These losses are included in the consolidated statements of operations.

	Six-Month Period Ended June 30, 2024
Description	Sale Price		Book Value at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of investment securities available-for-sale
Investment securities
US Treasury securities	$	149,406	$	149,413	$	—	$	7

	Six-Month Period Ended June 30, 2023
Description	Sale Price		Book Value at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of investment securities available-for-sale
Investment securities
US Treasury securities	$	202,133	$	203,282	$	—	$	1,149

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The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale at June 30, 2024 and December 31, 2023, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:

	June 30, 2024
	12 months or more
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	737,230	$	67,814	$	669,416
GNMA certificates	267,882		39,458		228,424
CMOs issued by US Government-sponsored agencies	7,686		285		7,401
Other debt securities	83		2		81
	$	1,012,881	$	107,559	$	905,322
	June 30, 2024
	Less than 12 months
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	197,672	$	4,132	$	193,540
GNMA certificates	37,603		406		37,197
	$	235,275	$	4,538	$	230,737
	June 30, 2024
	Total
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	934,902	$	71,946	$	862,956
GNMA certificates	305,485		39,864		265,621
CMOs issued by US Government-sponsored agencies	7,686		285		7,401
Other debt securities	83		2		81
	$	1,248,156	$	112,097	$	1,136,059

The unrealized losses on OFG’s investment in federal agency mortgage-backed securities were caused by market volatility related to interest rate increases. OFG purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government or by a government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price that is less than the amortized cost basis of OFG’s investments. OFG does not intend to sell the investments, and it is not more likely than not that OFG will be required to sell the investments before recovery of their amortized cost basis.

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	December 31, 2023
	12 months or more
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	731,334	$	56,847	$	674,487
GNMA certificates	275,669		34,364		241,305
CMOs issued by US Government-sponsored agencies	9,986		376		9,610
Other debt securities	119		3		116
	$	1,017,108	$	91,590	$	925,518

	December 31, 2023
	Less than 12 months
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	106,235	$	331	$	105,904
GNMA certificates	7,864		52		7,812
	$	114,099	$	383	$	113,716

	December 31, 2023
	Total
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	837,569	$	57,178	$	780,391
GNMA certificates	283,533		34,416		249,117
CMOs issued by US Government-sponsored agencies	9,986		376		9,610
Other debt securities	119		3		116
	$	1,131,207	$	91,973	$	1,039,234

NOTE 4 - LOANS

OFG’s loan portfolio is composed of four segments: commercial, mortgage, consumer, and auto loans. Loans are further segregated into classes which OFG uses when assessing and monitoring the risk and performance of the portfolio.

The composition of the amortized cost basis of OFG’s loan portfolio at June 30, 2024 and December 31, 2023 was as follows:

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	June 30, 2024						December 31, 2023
	Non-PCD		PCD		Total		Non-PCD		PCD		Total
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	1,182,145	$	114,516	$	1,296,661	$	1,095,207	$	120,988	$	1,216,195
Other commercial and industrial	1,109,608		14,068		1,123,676		1,091,021		14,459		1,105,480
	2,291,753		128,584		2,420,337		2,186,228		135,447		2,321,675
Commercial US	662,026		—		662,026		755,228		—		755,228
Total commercial loans	2,953,779		128,584		3,082,363		2,941,456		135,447		3,076,903
Mortgage loans	600,031		885,096		1,485,127		629,247		933,362		1,562,609
Consumer loans:
Personal loans	594,271		253		594,524		568,358		264		568,622
Credit lines	10,648		352		11,000		10,926		288		11,214
Credit cards	38,382		—		38,382		40,314		—		40,314
Overdraft	271		—		271		296		—		296
	643,572		605		644,177		619,894		552		620,446
Auto loans	2,427,089		951		2,428,040		2,272,530		1,891		2,274,421
	6,624,471		1,015,236		7,639,707		6,463,127		1,071,252		7,534,379
Allowance for credit losses	(150,849)		(6,452)		(157,301)		(152,610)		(8,496)		(161,106)
Total loans held for investment, net	6,473,622		1,008,784		7,482,406		6,310,517		1,062,756		7,373,273
Mortgage loans held-for-sale	8,375		—		8,375		—		—		—
Other loans held-for-sale	12,361		—		12,361		28,345		—		28,345
Total loans held-for-sale	20,736		—		20,736		28,345		—		28,345
Total loans, net	$	6,494,358	$	1,008,784	$	7,503,142	$	6,338,862	$	1,062,756	$	7,401,618

During the six-month period ended June 30, 2024, OFG sold $40.9 million commercial loans held-for-sale and recognized a $53 thousand gain, included in other non-interest income in the consolidated statement of operations. During the six month period ended June 30, 2023, OFG sold $86 thousand commercial loans held-for-sale with no gain or loss. At June 30, 2024 and December 31, 2023, OFG had $12.4 million and $28.3 million, respectively, in commercial loans held-for-sale.

At June 30, 2024 and December 31, 2023, OFG had carrying balances of $75.8 million and $68.6 million, respectively, in loans held-for-investment granted to the Puerto Rico government or its instrumentalities as part of the commercial loan segment. The Bank’s loans to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities in current status. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations.

The tables below present the aging of the amortized cost of loans held for investment at June 30, 2024 and December 31, 2023, by class of loans. Mortgage loans past due include $19.0 million and $19.4 million of delinquent loans in the GNMA buy-back option program at June 30, 2024 and December 31, 2023, respectively. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.

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	June 30, 2024
	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	3,533	$	2,189	$	6,032	$	11,754	$	1,170,391	$	1,182,145	$	—
Other commercial and industrial	704		313		3,890		4,907		1,104,701		1,109,608		—
	4,237		2,502		9,922		16,661		2,275,092		2,291,753		—
Commercial US	1,042		—		—		1,042		660,984		662,026		—
Total commercial loans	5,279		2,502		9,922		17,703		2,936,076		2,953,779		—
Mortgage loans	5,442		7,325		29,684		42,451		557,580		600,031		1,682
Consumer loans:
Personal loans	6,904		4,766		2,569		14,239		580,032		594,271		—
Credit lines	476		70		12		558		10,090		10,648		—
Credit cards	542		281		722		1,545		36,837		38,382		—
Overdraft	63		—		—		63		208		271		—
	7,985		5,117		3,303		16,405		627,167		643,572		—
Auto loans	111,291		41,526		16,689		169,506		2,257,583		2,427,089		—
Total loans	$	129,997	$	56,470	$	59,598	$	246,065	$	6,378,406	$	6,624,471	$	1,682

	December 31, 2023
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	1,585	$	411	$	5,671	$	7,667	$	1,087,540	$	1,095,207	$	—
Other commercial and industrial	1,366		291		4,974		6,631		1,084,390		1,091,021		—
	2,951		702		10,645		14,298		2,171,930		2,186,228		—
Commercial US	—		—		—		—		755,228		755,228		—
Total commercial loans	2,951		702		10,645		14,298		2,927,158		2,941,456		—
Mortgage loans	6,107		9,596		31,557		47,260		581,987		629,247		2,478
Consumer loans:
Personal loans	6,115		4,041		2,755		12,911		555,447		568,358		—
Credit lines	137		35		35		207		10,719		10,926		—
Credit cards	657		280		586		1,523		38,791		40,314		—
Overdraft	87		14		—		101		195		296		—
	6,996		4,370		3,376		14,742		605,152		619,894		—
Auto loans	101,610		46,071		19,056		166,737		2,105,793		2,272,530		—
Total loans	$	117,664	$	60,739	$	64,634	$	243,037	$	6,220,090	$	6,463,127	$	2,478

20

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of December 31, 2023, total past due loans exclude $6.4 million of past due commercial loans held-for-sale, these loans were sold during the quarter ended June 30, 2024. There were no past due commercial loans held-for-sale as of June 30, 2024.

Upon adoption of the Current Expected Credit Losses (“CECL”) methodology, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, purchased credit deteriorated (“PCD”) loans are not included in the preceding two tables.

Non-accrual Loans

The following table presents the amortized cost basis of loans held for investment on non-accrual status as of June 30, 2024 and December 31, 2023:

	June 30, 2024						December 31, 2023
	Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total		Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total
	(In thousands)						(In thousands)
Non-PCD:
Commercial PR:
Commercial secured by real estate	$	4,789	$	12,865	$	17,654	$	3,553	$	7,929	$	11,482
Other commercial and industrial	1,657		2,663		4,320		4,560		830		5,390
	6,446		15,528		21,974		8,113		8,759		16,872
Commercial US	12,503		—		12,503		19,224		—		19,224
Total Commercial loans	18,949		15,528		34,477		27,337		8,759		36,096
Mortgage loans	9,396		3,312		12,708		10,339		3,858		14,197
Consumer loans:
Personal loans	2,564		32		2,596		2,741		14		2,755
Personal lines of credit	12		—		12		35		—		35
Credit cards	721		—		721		586		—		586
	3,297		32		3,329		3,362		14		3,376
Auto loans	16,684		5		16,689		19,051		5		19,056
Total	$	48,326	$	18,877	$	67,203	$	60,089	$	12,636	$	72,725
PCD:
Commercial PR:
Commercial secured by real estate	$	569	$	3,468	$	4,037	$	3,060	$	2,417	$	5,477
Other commercial and industrial	—		711		711		—		947		947
	569		4,179		4,748		3,060		3,364		6,424
Mortgage loans	244		—		244		250		—		250
Total	$	813	$	4,179	$	4,992	$	3,310	$	3,364	$	6,674
Total non-accrual loans	$	49,139	$	23,056	$	72,195	$	63,399	$	16,000	$	79,399

The determination of non-accrual or accrual status of PCD loans is made at the pool level, not the individual loan level.

For December 31, 2023, total commercial non-accrual loans excludes $6.4 million of non-accrual commercial loans held-for-sale, these loans were sold during the second quarter of 2024. There were no commercial non-accrual loans held-for-sale at June 30, 2024.

21

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Delinquent residential mortgage loans insured or guaranteed under applicable Federal Housing Administration (“FHA”) and Veterans Administration (“VA”) programs are classified as non-performing loans when they become 90 days or more past due but are not placed in non-accrual status until they become 12 months or more past due, since they are insured loans. Therefore, those loans are included as non-performing loans but excluded from non-accrual loans.

Modifications to Debtors Experiencing Financial Difficulty

OFG’s loss mitigation program was designed to ensure that borrowers experiencing financial difficulties have the opportunity to continue paying their obligations. The loss mitigation alternatives are divided depending on the borrower’s hardship and its ability to continue with regular payment or with a new modified payment plan. The loss mitigation program provides alternatives for home retention or disposition options avoiding foreclosure proceedings and collateral retention.

OFG offers various types of loan modifications to borrowers experiencing financial difficulty in the form of an interest rate reduction, an other-than-insignificant payment delay, a term extension, interest or principal forbearance or forgiveness, or any combination of these types of concessions.

At June 30, 2024 and 2023, the amortized cost of modified loans excludes $1 thousand and $5 thousand, respectively, in accrued interest receivable. Accrued interest receivable on loans is included in the “accrued interest receivable” line in OFG’s consolidated statements of financial condition. The amortized cost of modified loans during the six-month period ended June 30, 2024 and 2023, includes $229 thousand and $4.2 million, respectively, of government-guaranteed loans (e.g., FHA/VA).

The following tables present the amortized cost basis as of June 30, 2024 and 2023 of loans held for investment that were modified during the quarters and six-month periods ended June 30, 2024 and 2023, disaggregated by class of financing receivable and type of concession granted.

	Quarter Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Mortgage loans	$	—	—	%	$	595	0.04	%	$	—	—	%	$	92	0.01	%	$	—	—	%
Auto loans	32		—	%	—		—	%	—		—	%	—		—	%	$	—	—	%
Total	$	32			$	595			$	—			$	92			$	—

22

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Six-Month Period Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Mortgage loans	$	—	—	%	$	687	0.05	%	$	—	—	%	$	92	0.01	%	$	—	—	%
Consumer:
Personal loans	26		—	%	7		—	%	—		—	%	—		—	%	—		—	%
Auto loans	32		—	%	—		—	%	—		—	%	—		—	%	—		—	%
Total	$	58			$	694			$	—			$	92			—

	Quarter Ended June 30, 2023
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	—	—	%	$	5,341	0.48	%	$	—	—	%	$	—	—	%	$	—	—	%
Other commercial and industrial	—		—	%	147		0.01	%	—		—	%	—		—	%	$	—	—	%
	—		—	%	5,488		0.20	%	—		—	%	—		—	%	—		—	%
Commercial US	—		—	%	—		—	%	—		—	%	—		—	%	4,260		0.64	%
Total Commercial loans	$	—	—	%	5,488		0.20	%	—		—	%	—		—	%	4,260		0.64	%
Mortgage loans	—		—	%	1,827		0.11	%	—		—	%	417		0.03	%	$	431	0.03	%
Consumer:
Personal loans	—		—	%	—		—	%	—		—	%	58		0.01	%	$	—	—	%
Total	$	—			$	7,315			$	—			$	475			$	4,691

23

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Six-Month Period Ended June 30, 2023
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	—	—	%	$	5,810	0.52	%	$	—	—	%	$	—	—	%	$	—	—	%
Other commercial and industrial	—		—	%	147		0.01	%	—		—	%	—		—	%	$	—	—	%
	—		—	%	5,957		0.21	%	—		—	%	—		—	%	—		—	%
Commercial US	—		—	%	—		—	%	—		—	%	—		—	%	4,260		0.64	%
Total Commercial loans	$	—	—	%	5,957		0.21	%	—		—	%	—		—	%	4,260		0.64	%
Mortgage loans	$	—	—	%	4,318		0.27	%	$	100	0.01	%	602		0.02	%	431		0.03	%
Consumer:
Personal loans	—		—	%	—		—	%	—		—	%	84		0.02	%	—		—	%
Total	$	—			$	10,275			$	100			$	686			$	4,691

Our credit loss estimation methodology incorporates a lifetime approach, utilizing modeled loan performance based on the historical experience of loans with similar risk characteristics, adjusted for current conditions, and reasonable and supportable forecasts. The model considers extensive historical loss experience, including the impact of loss mitigation programs offered to borrowers facing financial difficulty and projected loss severity from loan defaults, and is applied consistently across all portfolio segments. Additionally, our ACL is recorded on each asset upon origination or acquisition and is based on historical loss information, including modifications made to borrowers facing financial difficulty, and expected behavior. Changes to the ACL are generally not recorded upon modification, as the effects of most modifications are already considered in the estimation methodology. Refer to Note 5 – Allowance for Credit Losses for additional information.

The following tables present the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarters and six-month periods ended June 30, 2024 and 2023. The financial effect of the combined modifications is presented separately by type of modification.

	Quarter Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Mortgage loans	0.38	%	178	—
Auto loans	3.00	%	0	—

24

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Six-Month Period Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Mortgage loans	0.38	%	176	—
Consumer loans:
Personal loans	5.00	%	18	—
Auto loans	3.00	%	0	—

	Quarter Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	—	%	25	$	—
Commercial US	—	%	31	2,973
			56	$	2,973
Mortgage loans	1.86	%	195	20
Consumer loans:
Personal loans	1.25	%	110	—

	Six-Month Period Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	—	%	24	$	—
Commercial US	—	%	31	$	2,973
	—	%	56	$	2,973
Mortgage loans	2.04	%	206	$	24
Consumer loans:
Personal loans	2.50	%	81	—

The following table presents the amortized cost basis as of June 30, 2024 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the prior twelve-months.

	Twelve-Months Ended June 30, 2024
	Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
	Interest Rate Reduction		Term Extension		Principal Forgiveness/Forbearance		Combination - Term Extension and Interest Rate Reduction		Total
	(In thousands)
Mortgage loans	$	—	$	108	$	—	$	—	$	108

25

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents the amortized cost basis as of June 30, 2023 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the six-month period ended June 30, 2023.

	Six-Months Ended June 30, 2023
	Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
	Interest Rate Reduction		Term Extension		Principal Forgiveness/Forbearance		Combination - Term Extension and Interest Rate Reduction		Total
	(In thousands)
Mortgage loans	$	—	$	415	$	—	$	—	$	415

A payment default for a financial difficulty modification loan is defined as reaching 90 days past due with respect to principal and/or interest payments or when the borrower missed three consecutive monthly payments since modification. Payment defaults is one of the factors considered when projecting future cash flows in the calculation of the allowance for credit losses of loans.

OFG closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment status of loans that have been modified in the twelve-months period ended June 30, 2024 and in the six-month period ended June 30, 2023 that were granted to borrowers experiencing financial difficulty.

	June 30, 2024
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial loans:
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	136	$	136
Other commercial and industrial	—		—		—		—		626		626
	—		—		—		—		762		762
Commercial US	—		—		—		—		2,711		2,711
	—		—		—		—		3,473		3,473
Mortgage loans	315		29		108		452		1,983		2,435
Consumer loans:
Personal loans	—		—		—		—		70		70
Auto loans	—		—		—		—		138		138
Total	$	315	$	29	$	108	$	452	$	5,664	$	6,116

26

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	June 30, 2023
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	5,810	$	5,810
Other commercial and industrial	—		—		—		—		147		147
Commercial US	—		—		—		—		4,260		4,260
	—		—		—		—		10,217		10,217
Mortgage loans	—		122		415		537		4,914		5,451
Consumer loans:
Personal loans	—		—		—		—		84		84
Total	$	—	$	122	$	415	$	537	$	15,215	$	15,752

There were no outstanding commitments to lend additional funds to debtors experiencing financial difficulties at June 30, 2024 and December 31, 2023.

As of June 30, 2024 and December 31, 2023, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $16.7 million and $24.1 million, respectively. OFG commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent. Puerto Rico and the USVI require the foreclosure to be processed through their respective courts. Foreclosure timelines vary according to local law and investor guidelines. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediation, bankruptcy, court delays and property title issues.

Collateral-dependent Loans

The table below presents the amortized cost of commercial collateral-dependent loans held for investment at June 30, 2024 and December 31, 2023, by class of loans.

	June 30,		December 31,
	2024		2023
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	13,772	$	8,027

PCD loans, except for single-pooled loans, are not included in the table above as their unit of account is the loan pool.

Credit Quality Indicators

OFG categorizes its loans into loan grades based on relevant information about the ability of borrowers to service their debts, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans.

OFG uses the following definitions for loan grades:

Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards.

Special Mention: Loans classified as “special mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

27

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable.

Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future.

Loans not meeting the criteria above that are analyzed individually as part of the process described above are considered to be pass loans.

As of June 30, 2024, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans, and current year-to-date period gross charge-offs by year of origination is as follows:

28

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	110,497	$	221,993	$	223,863	$	193,443	$	109,474	$	208,712	$	61,271	$	1,129,253
Special Mention	—		—		7,298		6,375		4,702		13,031		113		31,519
Substandard	—		745		454		1,400		1,206		15,940		1,628		21,373
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	110,497		222,738		231,615		201,218		115,382		237,683		63,012		1,182,145
Commercial secured by real estate:
YTD gross charge-offs	—		—		—		—		—		7		—		7
Other commercial and industrial:
Loan grade:
Pass	74,157		282,784		71,959		54,624		29,347		17,785		524,959		1,055,615
Special Mention	—		5		2,695		45,033		2		147		1,060		48,942
Substandard	—		142		313		914		226		1,023		2,433		5,051
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	74,157		282,931		74,967		100,571		29,575		18,955		528,452		1,109,608
Other commercial and industrial:
YTD gross charge-offs	114		50		237		3,307		—		11		—		3,719
Commercial US:
Loan grade:
Pass	35,163		131,419		49,463		59,225		29,467		29,215		285,887		619,839
Special Mention	—		—		—		—		—		—		9,841		9,841
Substandard	6,532		6,730		2,728		7,613		—		5,698		635		29,936
Doubtful	2,410		—		—		—		—		—		—		2,410
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	44,105		138,149		52,191		66,838		29,467		34,913		296,363		662,026
Commercial US:
YTD gross charge-offs	—		—		392		1,749		—		1,183		—		3,324
Total commercial loans	$	228,759	$	643,818	$	358,773	$	368,627	$	174,424	$	291,551	$	887,827	$	2,953,779
Total YTD gross charge-offs	$	114	$	50	$	629	$	5,056	$	—	$	1,201	$	—	$	7,050

29

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of December 31, 2023, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	224,598	$	216,205	$	195,884	$	120,489	$	80,671	$	131,016	$	65,873	$	1,034,736
Special Mention	—		1,772		6,554		5,057		15,676		12,500		153		41,712
Substandard	—		459		1,386		1,109		2,615		11,939		1,236		18,744
Doubtful	—		—		—		—		—		15		—		15
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	224,598		218,436		203,824		126,655		98,962		155,470		67,262		1,095,207
Commercial secured by real estate:
YTD gross charge-offs	—		—		265		—		94		820		—		1,179
Other commercial and industrial:
Loan grade:
Pass	284,615		99,522		113,760		37,665		7,438		14,836		527,008		1,084,844
Special Mention	8		2,953		—		—		51		100		—		3,112
Substandard	3		473		826		259		935		186		383		3,065
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	284,626		102,948		114,586		37,924		8,424		15,122		527,391		1,091,021
Other commercial and industrial:
YTD gross charge-offs	—		124		1,095		89		9		1,180		—		2,497
Commercial US:
Loan grade:
Pass	142,222		63,885		69,233		31,206		28,202		8,085		358,757		701,590
Special Mention	—		7,803		—		—		—		—		20,913		28,716
Substandard	10,832		—		—		—		—		5,699		8,391		24,922
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	153,054		71,688		69,233		31,206		28,202		13,784		388,061		755,228
Commercial US:
YTD gross charge-offs	33		1,156		642		47		—		8,637		—		10,515
Total commercial loans	$	662,278	$	393,072	$	387,643	$	195,785	$	135,588	$	184,376	$	982,714	$	2,941,456
Total YTD gross charge-offs	$	33	$	1,280	$	2,002	$	136	$	103	$	10,637	$	—	$	14,191

30

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

At June 30, 2024 and December 31, 2023, the balance of revolving commercial loans converted to term loans was $177.7 million and $144.1 million, respectively.

OFG considers the performance of the loan portfolio and its impact on the ACL. For mortgage and consumer loan classes, OFG also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of June 30, 2024:

31

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Mortgage loans:
Payment performance:
Performing	$	10,304	$	17,149	$	19,296	$	22,321	$	15,094	$	498,542	$	—	$	582,706
Nonperforming	—		650		—		172		105		16,398		—		17,325
Total mortgage loans:	10,304		17,799		19,296		22,493		15,199		514,940		—		600,031
Mortgage loans:
YTD gross charge-offs	—		—		—		—		—		65		—		65
Consumer loans:
Personal loans:
Payment performance:
Performing	140,402		223,895		146,898		52,589		14,925		12,966		—		591,675
Nonperforming	69		820		1,105		416		76		110		—		2,596
Total personal loans	140,471		224,715		148,003		53,005		15,001		13,076		—		594,271
Personal loans:
YTD gross charge-offs	56		4,355		6,759		2,036		425		735		—		14,366
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		10,636		10,636
Nonperforming	—		—		—		—		—		—		12		12
Total credit lines	—		—		—		—		—		—		10,648		10,648
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		88		88
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		37,661		37,661
Nonperforming	—		—		—		—		—		—		721		721
Total credit cards	—		—		—		—		—		—		38,382		38,382
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		1,165		1,165
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		271		271
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		271		271
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		542		542
Total consumer loans	140,471		224,715		148,003		53,005		15,001		13,076		49,301		643,572
Total consumer loans YTD gross charge-offs	56		4,355		6,759		2,036		425		735		1,795		16,161
Total mortgage and consumer loans	$	150,775	$	242,514	$	167,299	$	75,498	$	30,200	$	528,016	$	49,301	$	1,243,603
Total mortgage and consumer loans YTD gross charge-offs	$	56	$	4,355	$	6,759	$	2,036	$	425	$	800	$	1,795	$	16,226

32

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Mortgage loans:
Payment performance:
Performing	$	24,623	$	19,722	$	23,303	$	15,821	$	14,589	$	511,182	$	—	$	609,240
Nonperforming	$	—	—		181		108		479		19,239		—		20,007
Total mortgage loans:	24,623		19,722		23,484		15,929		15,068		530,421		—		629,247
Mortgage loans:
YTD gross charge-offs	$	—	4		—		—		—		755		—		759
Consumer loans:
Personal loans:
Payment performance:
Performing	270,883		186,612		68,133		19,185		14,460		6,330		—		$	565,603
Nonperforming	503		1,588		304		193		66		101		—		2,755
Total personal loans	271,386		188,200		68,437		19,378		14,526		6,431		—		568,358
Personal loans:
YTD gross charge-offs	1,748		10,512		4,661		830		1,384		731		—		19,866
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		10,891		$	10,891
Nonperforming	—		—		—		—		—		—		35		35
Total credit lines	—		—		—		—		—		—		10,926		10,926
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		419		419
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		39,728		$	39,728
Nonperforming	—		—		—		—		—		—		586		586
Total credit cards	—		—		—		—		—		—		40,314		40,314
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		2,825		2,825
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		296		$	296
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		296		296
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		545		545
Total consumer loans	271,383		188,200		68,437		19,378		14,526		6,431		51,536		619,894
Total consumer loans YTD gross charge-offs	1,748		10,512		4,661		830		1,384		731		3,789		23,655
Total mortgage and consumer loans	$	296,009	$	207,922	$	91,921	$	35,307	$	29,594	$	536,852	$	51,536	$	1,249,141
Total mortgage and consumer loans YTD gross charge-offs	$	1,748	$	10,516	$	4,661	$	830	$	1,384	$	1,486	$	3,789	$	24,414

33

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

At June 30, 2024, the balance of revolving mortgage and consumer loans that converted to term loans was $788 thousand. At December 31, 2023, there were no mortgage and consumer revolving loans that converted to term loans.

OFG evaluates credit quality for auto loans based on FICO score. The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of June 30, 2024:

	Term Loans Amortized Cost Basis by Origination Year												Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	72,253		193,855		178,546		106,187		48,537		56,594		655,972
661-699	86,699		148,429		88,989		45,869		20,872		22,658		413,516
700+	265,909		443,723		282,292		157,960		84,776		98,252		1,332,912
No FICO	2,901		7,107		6,117		4,014		1,759		2,791		24,689
Total auto loans	$	427,762	$	793,114	$	555,944	$	314,030	$	155,944	$	180,295	$	2,427,089
Auto loans:
YTD gross charge-offs	$	137	$	9,196	$	9,310	$	3,889	$	1,784	$	2,461	$	26,777

The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year												Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	170,639		190,743		118,821		57,087		41,124		38,570		616,984
661-699	169,430		110,260		58,166		25,886		18,253		16,137		398,132
700+	474,005		323,514		183,286		103,886		88,929		58,779		1,232,399
No FICO	6,203		6,537		4,592		2,200		3,886		1,597		25,015
Total auto loans	$	820,277	$	631,054	$	364,865	$	189,059	$	152,192	$	115,083	$	2,272,530
Auto loans:
YTD gross charge-offs	$	4,090	$	18,142	$	10,894	$	4,008	$	3,380	$	3,250	$	43,764

Upon adoption of CECL, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans are not included in the preceding two tables.

As of June 30, 2024 and December 31, 2023, accrued interest receivable on loans totaled $64.0 million and $63.5 million, respectively, and is included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to “Note 9 – Accrued Interest Receivable and Other Assets” for more information on accrued interest receivable on loans.

34

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 5 – ALLOWANCE FOR CREDIT LOSSES

OFG measures its ACL based on management’s best estimate of lifetime expected credit losses inherent in OFG’s relevant financial assets. The ACL is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. Also included in the ACL are qualitative reserves to cover losses that are expected but, in OFG’s assessment, may not be adequately represented in the quantitative methods or the economic assumptions. In its loss forecasting framework, OFG incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. The scenarios that are chosen each quarter and the amount of weight given to each scenario depend on a variety of factors, including recent economic events, leading economic indicators, views of internal as well as third-party economists and industry trends. For more information on OFG’s credit loss accounting policies, including the allowance for credit losses, see “Note 1 – Summary of Significant Accounting Policies” included in OFG’s 2023 Form 10-K.

At June 30, 2024, OFG used an economic probability-weighted scenario approach consisting of the baseline and moderate recession scenarios, giving more weight to the baseline scenario, except for the US loan segment that uses a higher probability level in the moderate recessionary scenario. In addition, the ACL at June 30, 2024 continues to include qualitative reserves for certain segments that OFG views as higher risk that may not be fully recognized through its quantitative models, such as auto loan portfolio credit trends and the evolution of risk ratings applied to the commercial loans and collateral changes in real estate portfolios. There are still many unknown variables, including the results of the government’s fiscal and monetary actions resulting from the effect of inflation and geopolitical tension.

As of June 30, 2024, the ACL decreased by $3.8 million compared to December 31, 2023. The provision for credit losses for the six-month period ended June 30, 2024, reflected adjustments of $26.4 million related to loan volume, $4.5 million from loss rate model and $2.9 million in specific reserves, offset by a $4.9 million release from economic model.

The net charge-offs for the six-month period ended June 30, 2024, amounted to $34.8 million, an increase of $18.1 million when compared to the same period of 2023. The increase is mainly due to $11.5 million from auto loans, $6.2 million from consumer loans and $1.2 million from commercial loans, mainly from higher loan volume. Net charge-offs for the six-month period ended June 30, 2024 include $3.5 million from retail commercial loans, mainly from previously and fully-reserved nonperforming paycheck protection program (“PPP”) loans.

35

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following tables present the activity in OFG’s allowance for credit losses by segment for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,371	$	7,627	$	27,453	$	76,316	$	148,767
(Recapture of) provision for credit losses	(1,984)		(1,280)		9,308		11,039		17,083
Charge-offs	(1,734)		(1)		(8,180)		(12,559)		(22,474)
Recoveries	156		540		851		5,926		7,473
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,133	$	6,638	$	7	$	18	$	7,796
Recapture of credit losses	(237)		(1,060)		(6)		(29)		(1,332)
Charge-offs	(265)		(29)		—		(6)		(300)
Recoveries	158		93		7		30		288
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301
	Six-Month Period Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	44,041	$	7,998	$	27,086	$	73,485	$	152,610
(Recapture of) provision for credit losses	(3,390)		(1,854)		16,963		22,117		33,836
Charge-offs	(7,050)		(65)		(16,161)		(26,777)		(50,053)
Recoveries	208		807		1,544		11,897		14,456
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,113	$	7,351	$	7	$	25	$	8,496
Recapture of credit losses	(374)		(2,328)		(29)		(85)		(2,816)
Charge-offs	(265)		(112)		—		(15)		(392)
Recoveries	315		731		30		88		1,164
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301

36

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Quarter Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,774	$	9,083	$	24,664	$	69,864	$	141,385
Provision for (recapture of) credit losses	14,089		(556)		4,517		(1,800)		16,250
Charge-offs	(3,496)		(191)		(5,518)		(9,169)		(18,374)
Recoveries	237		334		2,003		8,332		10,906
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,693	$	8,717	$	12	$	77	$	10,499
(Recapture of) provision for credit losses	(604)		(679)		78		(401)		(1,606)
Charge-offs	—		(1)		(124)		(34)		(159)
Recoveries	319		260		42		401		1,022
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923
	Six-Month Period Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	39,158	$	9,571	$	23,264	$	69,848	$	141,841
Provision for (recapture of) credit losses	13,754		(1,059)		10,491		1,096		24,282
Charge-offs	(4,871)		(392)		(10,958)		(18,648)		(34,869)
Recoveries	563		550		2,869		14,931		18,913
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,388	$	9,359	$	14	$	71	$	10,832
Provision for (recapture of) credit losses	1,316		(1,493)		278		(408)		(307)
Charge-offs	(2,104)		(76)		(337)		(121)		(2,638)
Recoveries	808		507		53		501		1,869
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923

37

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 6 — FORECLOSED REAL ESTATE

The following table presents the activity related to foreclosed real estate for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	10,850	$	9,250	$	10,780	$	11,214
Additions	706		3,196		2,051		$	4,634
Sales	(5,104)		(3,072)		(6,930)		$	(6,653)
Decline in value	(131)		(272)		(301)		$	(400)
Other adjustments	205		1,537		926		$	1,844
Balance at end of period	$	6,526	$	10,639	$	6,526	$	10,639

NOTE 7 - SERVICING ASSETS

OFG periodically sells or securitizes mortgage loans while retaining the obligation to perform the servicing of such loans. In addition, OFG may purchase or assume the right to service mortgage loans originated by others. Whenever OFG undertakes an obligation to service a loan, management assesses whether a servicing asset and/or liability should be recognized. A servicing asset is recognized whenever the compensation for servicing is expected to more than adequately compensate OFG for servicing the loans. Likewise, a servicing liability would be recognized in the event that servicing fees to be received are not expected to adequately compensate OFG for its expected cost.

At June 30, 2024, the fair value of mortgage servicing rights was $49.8 million ($49.5 million — December 31, 2023).

The following table presents the changes in servicing rights measured using the fair value method for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Fair value at beginning of period	$	49,553	$	49,345	$	49,520	$	50,921
Servicing from mortgage securitization or asset transfers	303		791		830		1,365
Changes due to payments on loans	(732)		(1,085)		(1,652)		(2,150)
Changes in fair value due to changes in valuation model inputs or assumptions	665		915		1,091		(170)
Fair value at end of period	$	49,789	$	49,966	$	49,789	$	49,966

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of June 30, 2024 and 2023:

	Six-Month Period Ended June 30,
	2024	2023
Constant prepayment rate	1.49% - 11.45%	3.49% - 21.68%
Discount rate	10.00% - 15.50%	10.00% - 15.50%

38

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adverse changes in the above key assumptions were as follows:

	June 30,		December 31,
	2024		2023
	(In thousands)
Mortgage-related servicing asset
Carrying value of mortgage servicing asset	$	49,789	49,520
Weighted average life (in years)	7.3		7.3
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(924)	$	(928)
Decrease in fair value due to 20% adverse change	$	(1,812)	$	(1,821)
Discount rate
Decrease in fair value due to 10% adverse change	$	(2,021)	$	(1,999)
Decrease in fair value due to 20% adverse change	$	(3,898)	$	(3,856)

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption.

Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Servicing fee income is based on a contractual percentage of the outstanding principal balance and is recorded as income when earned and included in the mortgage banking activities section in the consolidated statement of operations. Servicing fees on mortgage loans for the quarters ended June 30, 2024 and 2023 totaled $4.5 million and $4.8 million, respectively. Servicing fees on mortgage loans for the six-month periods ended June 30, 2024 and 2023 totaled $8.9 million and $9.8 million, respectively.

NOTE 8 — GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill by reportable business segment is included in the table below. Refer to “Note 22 – Business Segments” for additional information on OFG’s reportable business segments.

	Banking		Wealth Management		Treasury		Total
	(In thousands)
December 31, 2023	$	84,063	$	178	$	—	$	84,241
June 30, 2024	$	84,063	$	178	$	—	$	84,241

There were no changes in the carrying amount of goodwill during the quarters and six-month periods ended June 30, 2024 and 2023. There were no accumulated impairment losses at June 30, 2024 and December 31, 2023.

Relevant events and circumstances for evaluating whether it is more likely than not that the fair value of a reporting segment is less than its carrying amount may include macroeconomic conditions (such as deterioration of the Puerto Rico economy or the liquidity for Puerto Rico securities or loans secured by assets in Puerto Rico), adverse changes in legal factors or in the business climate, adverse actions by a regulator, unanticipated competition, the loss of key employees, natural disasters, or similar events.

39

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

OFG performed its annual impairment review of goodwill during the fourth quarter of 2023 using October 31, 2023 as the annual evaluation date and concluded that there was no impairment at December 31, 2023. During the six-month period ended June 30, 2024, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of the goodwill. Based on this assessment, no impairments were identified at June 30, 2024.

The following table reflects the components of other intangible assets subject to amortization at June 30, 2024 and December 31, 2023:

	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(In thousands)
June 30, 2024
Core deposit intangibles	$	41,507	$	27,923	$	13,584
Customer relationship intangibles	12,693		8,539		4,154
Total other intangible assets	$	54,200	$	36,462	$	17,738
December 31, 2023
Core deposit intangibles	$	41,507	$	25,659	$	15,848
Customer relationship intangibles	12,693		7,847		4,846
Total other intangible assets	$	54,200	$	33,506	$	20,694

In connection with previous acquisitions, OFG recorded core deposit intangibles representing the value of checking and savings deposits acquired. In addition, OFG recorded customer relationship intangibles representing the value of customer relationships acquired with its acquisitions of insurance agencies. During the six-month period ended June 30, 2024, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of other intangible assets. Based on this assessment, no impairments were identified at June 30, 2024.

Other intangible assets have a definite useful life. Amortization of other intangible assets for the quarters ended June 30, 2024 and 2023 was $1.5 million and $1.7 million, respectively. Amortization of other intangible assets for the six-month periods ended June 30, 2024 and 2023, was $3.0 million and $3.4 million, respectively.

The following table presents the estimated amortization of other intangible assets for each of the following periods.

Year Ending December 31,	(In thousands)
2024	5,913
2025	4,927
2026	3,942
2027	2,956
2028	1,971
Thereafter	985

NOTE 9 — ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS

Accrued interest receivable at June 30, 2024 and December 31, 2023 consists of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Loans	$	64,049	$	63,526
Investments	8,920		7,874
	$	72,969	$	71,400

40

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Accrued interest receivable on loans that participated in the Hurricane Fiona and Covid-19 deferral programs amounted to $19.5 million at June 30, 2024, of which $18.7 million corresponded to loans in current status, and $20.2 million at December 31, 2023, of which $18.2 million corresponded to loans in current status. OFG estimates expected credit losses on accrued interest receivable for loans that participated in moratorium programs. An allowance has been established for loans with delinquency status in 30 to 89 days past due and is calculated by applying the corresponding loan projected loss factors to the accrued interest receivable balance. At June 30, 2024 and December 31, 2023, the ACL for accrued interest receivable for loans that participated in moratorium programs amounted to $92 thousand and $85 thousand, respectively, and is included in accrued interest receivable in the statement of financial condition.

Other assets at June 30, 2024 and December 31, 2023 consist of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Prepaid expenses	$	88,481	$	63,040
Other repossessed assets	5,713		4,032
Accounts receivable and other assets	56,760		47,859
	$	150,954	$	114,931

Prepaid expenses amounting to $88.5 million at June 30, 2024, include prepaid municipal, property and income taxes aggregating to $76.6 million. At December 31, 2023 prepaid expenses amounted to $63.0 million, including prepaid municipal, property and income taxes aggregating to $54.7 million.

Other repossessed assets totaled $5.7 million and $4.0 million at June 30, 2024 and December 31, 2023, respectively, and consist of repossessed automobiles, which are recorded at their net realizable value.

NOTE 10 — DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of June 30, 2024 and December 31, 2023 consist of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Non-interest-bearing demand deposits	$	2,608,902	$	2,537,431
Interest-bearing savings and demand deposits	5,410,804		5,601,099
Retail certificates of deposit	1,142,257		1,083,316
Institutional certificates of deposit	442,869		378,143
Total core deposits	9,604,832		9,599,989
Brokered deposits	418		162,180
Total deposits	$	9,605,250	$	9,762,169

At June 30, 2024 and December 31, 2023, the aggregate amount of uninsured deposits was $4.979 billion (52% of total deposits) and $4.885 billion (50.0% of total deposits), respectively.

The weighted average interest rate of OFG’s deposits was 1.50% and 0.88%, respectively, at June 30, 2024 and December 31, 2023.

Interest expense for the quarters and six-month periods ended June 30, 2024 and 2023 was as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
					(In thousands)
Demand and savings deposits	$	26,682	$	10,423	$	52,748	$	19,092
Certificates of deposit	11,130		5,493		21,856		9,321
	$	37,812	$	15,916	$	74,604	$	28,413

41

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

At June 30, 2024 and December 31, 2023, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $867.3 million and $747.2 million, respectively.

At June 30, 2024 and December 31, 2023, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $1.577 billion and $1.616 billion, respectively. These public funds were collateralized with securities and commercial loans amounting to $1.679 billion and $1.645 billion at June 30, 2024 and December 31, 2023, respectively.

Excluding accrued interest of approximately $1.8 million and $3.0 million, the scheduled maturities of certificates of deposit at June 30, 2024 and December 31, 2023 are as follows:

June 30, 2024
	Period-end amount		Uninsured amount
	(In thousands)
Within one year:
Three months or less	$	312,747	$	137,864
Over 3 months through 6 months	227,691		95,415
Over 6 months through 1 year	590,451		250,814
	1,130,889		484,093
Over 1 through 2 years	308,181		93,103
Over 2 through 3 years	66,580		7,465
Over 3 through 4 years	38,804		1,699
Over 4 through 5 years	38,808		4,971
Over 5 years	527		—
	$	1,583,789	$	591,331
December 31, 2023
	Period-end amount		Uninsured amount
	(In thousands)
Within one year:
Three months or less	$	457,533	$	115,392
Over 3 months through 6 months	195,902		61,245
Over 6 months through 1 year	329,758		113,524
	983,193		290,161
Over 1 through 2 years	467,348		201,478
Over 2 through 3 years	94,450		13,971
Over 3 through 4 years	29,514		1,379
Over 4 through 5 years	45,575		4,665
Over 5 years	608		—
	$	1,620,688	$	511,654

The tables of scheduled maturities of certificates of deposits above includes brokered-deposits and individual retirement accounts.

The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $650 thousand and $564 thousand as of June 30, 2024 and December 31, 2023, respectively.

42

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 11— BORROWINGS AND RELATED INTEREST

Advances from the Federal Home Loan Bank of New York

Advances are received from the FHLB under an agreement whereby OFG is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At both June 30, 2024 and December 31, 2023, these advances were secured by mortgage and commercial loans amounting to $1.0 billion. Also, at June 30, 2024 and December 31, 2023, OFG had an additional borrowing capacity with the FHLB of $451.6 million and $446.0 million, respectively. At June 30, 2024 and December 31, 2023, the weighted average remaining maturity of FHLB advances was 8 months and 1.2 years, respectively. The original terms of the outstanding advance at June 30, 2024 due on March 2025 was 2 years.

The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $741 thousand and $768 thousand at June 30, 2024 and December 31, 2023, respectively:

	June 30, 2024		December 31, 2023
	(In thousands)
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 4.52%	$	200,000	$	—
Long-term fixed-rate advance from FHLB, with a weighted average interest rate of 4.52%	—		200,000
	$	200,000	$	200,000

Advances from FHLB mature as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Due less than one year	$	200,000	$	—
Over one to three years	—		200,000
	$	200,000	$	200,000

NOTE 12 — INCOME TAXES

OFG is subject to the provisions of the Puerto Rico Internal Revenue Code of 2011, as amended (the “PR Code”). The PR Code imposes a maximum statutory corporate tax rate of 37.5%. OFG has operations in the U.S. through its wholly owned subsidiaries OFG Ventures and OFG USA, which is a direct subsidiary of the Bank, and has two branches in the USVI. The United States subsidiaries are subject to federal income taxes at the corporate level, while the USVI branches are subject to federal income taxes under a mirror system and a 10% surtax included in the maximum tax rate. OFG USA is subject to North Carolina state taxes, and current investments in OFG Ventures are subject to state taxes in Missouri. In addition, OFG’s wholly owned subsidiary, OFG Reinsurance Ltd., is tax exempt in Grand Cayman.

As of June 30, 2024, OFG’s net deferred tax assets, net of a valuation allowance of $6.5 million, amounted to $4.1 million; and the net deferred tax liability, net of valuation allowance of $610 thousand, amounted to $33.9 million, reflecting the aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of OFG. As of December 31, 2023, OFG’s deferred tax asset, net of a valuation allowance of $7.0 million, amounted to $4.9 million; and net deferred tax liability, net of a valuation allowance of $569 thousand, amounted to $22.4 million, reflecting aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of OFG. The decrease in valuation allowance of $528 thousand was mainly related to OFG’s operations at the holding company level. In assessing the realizability of the deferred tax asset, management considers whether it is more likely than not that some portion or the entire deferred tax asset will not be realized. The ultimate realization of the deferred tax asset is dependent upon the generation of future income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future income, and tax planning strategies in making this assessment. Based upon the assessment of positive and negative evidence, the level of historical taxable income, projections for future taxable income over the periods in which the deferred tax asset are deductible, and provisions of certain closing agreements, management believes it is more likely than not that OFG will realize the benefits of

43

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

these deductible differences, net of the existing valuation allowances, at June 30, 2024. The amount of the deferred tax asset that is considered realizable could be reduced in the near term if there are changes in estimates of future taxable income.

OFG maintained an effective tax rate (“ETR”) lower than the statutory rate for the six-month periods ended June 30, 2024 and 2023 of 27.6% and 30.9%, respectively, the decrease is mainly related to exempt income, income subject to preferential tax treatment under the PR Code and a discrete tax windfall on stock options recognized during the first quarter of 2024 and discrete benefit mainly related to the purchase of tax credits during the second quarter of 2024. The expected ETR for 2024 is 29.2%.

OFG classifies unrecognized tax benefits in other liabilities. These gross unrecognized tax benefits would affect the ETR if realized. At June 30, 2024, the amount of unrecognized tax benefits was $970 thousand (December 31, 2023 - $936 thousand).

Income tax expense for the quarters ended June 30, 2024 and 2023 was $20.1 million and $21.6 million, respectively. Income tax expense for the six-month periods ended June 30, 2024 and 2023 was $38.4 million and $40.5 million, respectively.

NOTE 13 — REGULATORY CAPITAL REQUIREMENTS

Regulatory Capital Requirements

OFG (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and Puerto Rico banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on OFG’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, OFG and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. OFG and the Bank have elected to exclude accumulated comprehensive income related to both available for sale securities and derivative valuations from Common Equity Tier 1 Capital.

As of June 30, 2024 and December 31, 2023, OFG and the Bank met all capital adequacy requirements to which they are subject. As of June 30, 2024 and December 31, 2023, OFG and the Bank are “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the tables presented below.

OFG’s and the Bank’s actual capital amounts and ratios as of June 30, 2024 and December 31, 2023 were as follows:

	Actual				Minimum Capital Requirement (including capital conservation buffer)				Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
OFG Bancorp Ratios
As of June 30, 2024
Total capital to risk-weighted assets	$	1,330,474	15.54	%	$	898,963	10.50	%	$	856,155	10.00	%
Tier 1 capital to risk-weighted assets	$	1,223,031	14.29	%	$	727,732	8.50	%	$	684,924	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,223,031	14.29	%	$	599,308	7.00	%	$	556,501	6.50	%
Tier 1 capital to average total assets	$	1,223,031	10.86	%	$	450,325	4.00	%	$	562,906	5.00	%
As of December 31, 2023
Total capital to risk-weighted assets	$	1,278,537	15.37	%	$	873,369	10.50	%	$	831,780	10.00	%
Tier 1 capital to risk-weighted assets	$	1,174,205	14.12	%	$	707,013	8.50	%	$	665,424	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,174,205	14.12	%	$	582,246	7.00	%	$	540,657	6.50	%
Tier 1 capital to average total assets	$	1,174,205	11.03	%	$	425,911	4.00	%	$	532,389	5.00	%

44

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Actual				Minimum Capital Requirement (including capital conservation buffer)				Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of June 30, 2024
Total capital to risk-weighted assets	$	1,245,627	14.64	%	$	893,092	10.50	%	$	850,564	10.00	%
Tier 1 capital to risk-weighted assets	$	1,138,874	13.39	%	$	722,979	8.50	%	$	680,451	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,138,874	13.39	%	$	595,395	7.00	%	$	552,866	6.50	%
Tier 1 capital to average total assets	$	1,138,874	10.22	%	$	445,681	4.00	%	$	557,101	5.00	%
As of December 31, 2023
Total capital to risk-weighted assets	$	1,179,164	14.27	%	$	867,797	10.50	%	$	826,474	10.00	%
Tier 1 capital to risk-weighted assets	$	1,075,487	13.01	%	$	702,503	8.50	%	$	661,179	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,075,487	13.01	%	$	578,532	7.00	%	$	537,208	6.50	%
Tier 1 capital to average total assets	$	1,075,487	10.20	%	$	421,660	4.00	%	$	527,075	5.00	%

NOTE 14 – STOCKHOLDERS’ EQUITY

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

45

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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

NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss, net of income taxes, as of June 30, 2024 and December 31, 2023 consisted of:

	June 30, 2024		December 31, 2023
	(In thousands)
Unrealized loss on securities available-for-sale	$	(101,810)	$	(78,497)
Income tax effect of unrealized loss on securities available-for-sale	15,316		11,484
Net unrealized loss on securities available-for-sale	(86,494)		(67,013)
Accumulated other comprehensive loss, net of income taxes	$	(86,494)	$	(67,013)

46

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents changes in accumulated other comprehensive loss by component, net of taxes, for the quarters and six-month periods ended June 30, 2024 and 2023:

	Net unrealized loss on securities available-for-sale
	Quarter Ended June 30, 2024		Six-Month Period Ended June 30, 2024
	(In thousands)
Beginning balance	$	(81,731)	$	(67,013)
Other comprehensive loss before reclassifications	(4,765)		(19,474)
Amounts reclassified out of accumulated other comprehensive loss	2		(7)
Other comprehensive loss	(4,763)		(19,481)
Ending balance	$	(86,494)	$	(86,494)

	Quarter Ended June 30, 2023
	Net unrealized loss on securities available-for-sale		Net unrealized gain on cash flow hedges		Accumulated other comprehensive loss
	(In thousands)
Beginning balance	$	(78,512)	$	172	$	(78,340)
Other comprehensive loss before reclassifications	(9,980)		(2,525)		(12,505)
Amounts reclassified out of accumulated other comprehensive loss	(1,147)		2,428		1,281
Other comprehensive loss	(11,127)		(97)		(11,224)
Ending balance	$	(89,639)	$	75	$	(89,564)
	Six-Month Period Ended June 30, 2023
	Net unrealized loss on securities available-for-sale		Net unrealized gain on cash flow hedges		Accumulated other comprehensive loss
	(In thousands)
Beginning balance	$	(93,663)	$	254	$	(93,409)
Other comprehensive income (loss) before reclassifications	5,169		(3,198)		1,971
Amounts reclassified out of other comprehensive income (loss)	(1,145)		3,019		1,874
Other comprehensive income (loss)	4,024		(179)		3,845
Ending balance	$	(89,639)	$	75	$	(89,564)

47

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and six-month periods ended June 30, 2024 and 2023:

	Amount reclassified out of accumulated other comprehensive loss								Affected Line Item in Consolidated Statement of Operations
	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	—	$	2,428	$	—	$	3,019	Net interest expense
Available-for-sale securities:
Loss on sale of investments	—		(1,149)		(7)		(1,149)		Net loss on sale of securities
Tax effect from changes in tax rates	2		2		—		4		Income tax expense
	$	2	$	1,281	$	(7)	$	1,874

NOTE 16 – EARNINGS PER COMMON SHARE

The calculation of earnings per common share for the quarters and six-month periods ended June 30, 2024 and 2023 is as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands, except per share data)
Income available to common shareholders	$	51,131	$	44,173	$	100,823	$	90,402
Average common shares outstanding	46,952		47,266		47,024		47,432
Effect of dilutive securities:
Average potential common shares-options	179		224		220		284
Total weighted average common shares outstanding and equivalents	47,131		47,490		47,244		47,716
Earnings per common share - basic	$	1.09	$	0.93	$	2.14	$	1.91
Earnings per common share - diluted	$	1.08	$	0.93	$	2.13	$	1.89

For the quarters ended June 30, 2024 and 2023, weighted-average restricted stock units with an anti-dilutive effect on earnings per share not included in the calculation amounted to zero and 147,878, respectively. For the six-month periods ended June 30, 2024 and 2023, weighted-average restricted stock units with an anti-dilutive effect on earnings per share not included in the calculation amounted to zero and 128,681, respectively.

During the first quarter of 2024, OFG increased its quarterly common stock cash dividend to $0.25 per share from $0.22 per share at December 31, 2023.

NOTE 17 – GUARANTEES

At June 30, 2024 and December 31, 2023, the notional amount of the obligations undertaken in issuing the guarantees under standby letters of credit represented a liability of $25.0 million and $24.0 million, respectively.

OFG has a liability for residential mortgage loans sold subject to credit recourse pursuant to FHLMC’s, GNMA’s, and FNMA’s residential mortgage loan sales and securitization programs. At June 30, 2024 and December 31, 2023, the unpaid principal balance of residential mortgage loans sold subject to credit recourse under the residential mortgage loan sales programs was $94.5 million and $98.7 million, respectively. The estimated losses to be absorbed under the credit recourse arrangements were recorded as a liability when the credit recourse was assumed and are updated on a quarterly basis. At June 30, 2024, OFG's liability for estimated credit losses related to loans sold with credit recourse amounted to $59 thousand

48

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

(December 31, 2023– $102 thousand). On May 1, 2023, OFG and a third-party servicer terminated a subservicing agreement by mutual agreement. Pursuant to such termination, the third-party servicer assumed the direct servicing of the subserviced loans pursuant to FNMA’s residential mortgage loans sales program, thereby relieving OFG of its corresponding recourse obligation under that program.

The following table shows the changes in OFG’s liability for estimated losses from credit recourse agreements, included in the consolidated statements of financial condition during the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	73	$	141	$	102	$	147
Net recoveries (charge-offs/terminations)	(14)		9		(43)		3
Balance at end of period	$	59	$	150	$	59	$	150

The expected loss, which represents the amount expected to be lost on a given loan, considers the probability of default and loss severity. The probability of default represents the probability that a loan in good standing would become 120 days delinquent, in which case OFG is obligated to repurchase the loan.

If a borrower defaults, pursuant to the credit recourse provided, OFG is required to repurchase the loan or reimburse the third-party investor for the incurred loss. The maximum potential amount of future payments that OFG would be required to make under the recourse arrangements is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. During the quarters ended June 30, 2024 and 2023, OFG repurchased $106 thousand and $545 thousand, respectively, in mortgage loans. During the six-month periods ended June 30, 2024 and 2023, OFG repurchased $240 thousand and $610 thousand, respectively, in such mortgage loans. If a borrower defaults, OFG has rights to the underlying collateral securing the mortgage loan. OFG suffers losses on these mortgage loans when the proceeds from a foreclosure sale of the collateral property are less than the outstanding principal balance of the loan, any uncollected interest advanced, and the costs of holding and disposing the related property.

When OFG sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. OFG’s mortgage operations division groups conforming mortgage loans into pools that are exchanged for FNMA and GNMA mortgage-backed securities, which are generally sold to private investors, or are sold directly to FNMA or other private investors for cash. As required under such mortgage-backed securities programs, quality review procedures are performed by OFG to ensure that asset guideline qualifications are met. To the extent the loans do not meet specified characteristics, OFG may be required to repurchase such loans or indemnify for losses and bear any subsequent loss related to the loans. During the quarter ended June 30, 2024, OFG repurchased $915 thousand (June 30, 2023 –$4.2 million) of unpaid principal balance in mortgage loans, excluding mortgage loans subject to such credit recourse provision. During the six-month period ended June 30, 2024, OFG repurchased $1.9 million (June 30, 2023- $6.4 million). At June 30, 2024 and December 31, 2023, OFG had a $275 thousand and a $405 thousand liability, respectively, for the estimated credit losses related to these loans.

49

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

During the quarters ended June 30, 2024 and 2023, OFG recognized $14 thousand and $141 thousand in gains, net of reserves, respectively, from the repurchase of residential mortgage loans sold subject to credit recourse, and $21 thousand in gains and $372 thousand in losses, respectively, from the repurchase of residential mortgage loans as a result of breaches of customary representations and warranties. During the six-month periods ended June 30, 2024 and 2023 OFG recognized $43 thousand and $147 thousand, respectively, in gains from the repurchase of residential mortgage loans sold subject to credit recourse, and $77 thousand and $121 thousand, respectively, in losses from the repurchase of residential mortgage loans as a result of breaches of customary representations and warranties.

At June 30, 2024 OFG serviced $5.6 billion (December 31, 2023 - $5.6 billion) in mortgage loans for third parties. Servicing agreements relating to the mortgage-backed securities programs of FNMA and GNMA, and to mortgage loans sold or serviced to certain other investors, including FHLMC, require OFG to advance funds to make scheduled payments of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. OFG generally recovers funds advanced pursuant to these arrangements from the mortgage owner, from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA/VA loans, under the applicable FHA and VA insurance and guarantee programs. However, in the meantime, OFG must absorb the cost of the funds it advances during the time the advance is outstanding. OFG must also bear the costs of attempting to collect on delinquent and defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the foreclosure proceedings and OFG would not receive any future servicing income with respect to that loan. At June 30, 2024, the outstanding balance of funds advanced by OFG under such mortgage loan servicing agreements was approximately $3.7 million (December 31, 2023 - $4.2 million). To the extent the mortgage loans underlying OFG’s servicing portfolio experience increased delinquencies, OFG would be required to dedicate additional cash resources to comply with its obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts.

NOTE 18— COMMITMENTS AND CONTINGENCIES

Commitments

In the normal course of business, OFG becomes a party to credit-related financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby and commercial letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated statements of financial condition. The contract or notional amount of those instruments reflects the extent of OFG’s involvement in particular types of financial instruments.

OFG’s exposure to credit losses in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit, including commitments under credit card arrangements, and commercial letters of credit is represented by the contractual notional amounts of those instruments, which do not necessarily represent the amounts potentially subject to risk. In addition, the measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are identified. OFG uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Credit-related financial instruments at June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Commitments to extend credit	$	1,424,489	$	1,255,695
Commercial letters of credit	1,384		119

Commitments to extend credit represent agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. OFG evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by OFG upon the extension of credit, is based on management’s credit evaluation of the counterparty.

At June 30, 2024 and December 31, 2023, commitments to extend credit consisted mainly of undisbursed available amounts on commercial lines of credit, construction loans, and revolving credit card arrangements. Since many of the unused commitments are expected to expire unused or be only partially used, the total amount of these unused commitments does not necessarily represent future cash requirements.

50

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Commercial letters of credit are issued or confirmed to guarantee payment of customers’ payables or receivables in short-term international trade transactions. Generally, drafts will be drawn when the underlying transaction is consummated as intended. However, the short-term nature of this instrument serves to mitigate the risk associated with these contracts.

The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at June 30, 2024 and December 31, 2023, is as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Standby letters of credit and financial guarantees	$	25,028	$	23,970
Loans sold with recourse	94,456		98,685

Standby letters of credit and financial guarantees are written conditional commitments issued by OFG to guarantee the payment and/or performance of a customer to a third party (“beneficiary”). If the customer fails to comply with the agreement, the beneficiary may draw on the standby letter of credit or financial guarantee as a remedy. The amount of credit risk involved in issuing letters of credit in the event of non-performance is the face amount of the letter of credit or financial guarantee. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The amount of collateral obtained, if it is deemed necessary by OFG upon extension of credit, is based on management’s credit evaluation of the customer.

At June 30, 2024 and December 31, 2023, the ACL for off-balance sheet credit exposures corresponding to commitments to extend credit and standby letters of credit amounted to $833 thousand and $1.2 million, respectively, and is included in other liabilities in the statement of financial condition.

At both June 30, 2024 and December 31, 2023, OFG maintained other non-credit commitments amounting to $18.9 million, primarily for the acquisition of equity securities. In addition, as we continue to transform OFG with a focus on simplification and building a culture of excellence and customer service, we continue to invest in technology. Some of our technology investments require us to continuously upgrade our systems. Others require us to focus our technology on investments that drive our strategy, namely digital, data analytics, cloud migration, cyber security, and our sales and service capabilities. At June 30, 2024 and December 31, 2023, OFG had commitments for capital expenditures in technology amounting to $7.2 million and $7.8 million, respectively.

Contingencies

OFG and its subsidiaries are defendants in a number of legal proceedings incidental to their business. In the ordinary course of business, OFG and its subsidiaries are also subject to governmental and regulatory examinations. Certain subsidiaries of OFG, including the Bank (and its subsidiary, OIB), Oriental Financial Services and Oriental Insurance, are subject to regulation by various U.S., Puerto Rico and other regulators.

OFG seeks to resolve all arbitration, litigation and regulatory matters in the manner management believes is in the best interests of OFG and its shareholders, and contests allegations of liability or wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

In accordance with applicable accounting guidance, OFG establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, OFG, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, OFG will establish an accrued liability and record a corresponding amount of expense. At June 30, 2024 and December 31, 2023, accrued liability for legal contingencies amounted to $561 thousand and $817 thousand, respectively. OFG continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. OFG also has an accrued liability for potential losses, operational errors, loss on theft not covered by insurance premiums, uncollectible receivables, among other transactions, amounting to $1.5 million and $1.4 million, respectively, as of June 30, 2024 and December 31, 2023.

51

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Subject to the accounting and disclosure framework under the provisions of ASC 450, it is the opinion of OFG’s management, based on current knowledge and after taking into account its current legal accruals, that the eventual outcome of all matters would not be likely to have a material adverse effect on the consolidated statements of financial condition of OFG. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on OFG’s consolidated results of operations or cash flows in particular quarterly or annual periods. OFG has evaluated all arbitration, litigation and regulatory matters where the likelihood of a potential loss is deemed reasonably possible. OFG has determined that the estimate of the reasonably possible loss is not significant.

NOTE 19— OPERATING LEASES

Substantially all leases in which OFG is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2038. OFG’s leases do not contain residual value guarantees or material variable lease payments. All leases are classified as operating leases and are included on the consolidated statements of financial condition as a right-of-use asset and a corresponding lease liability. OFG leases to others certain space in its principal offices for terms extending through 2026; all are operating leases.

Operating Lease Cost

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023		Statement of Operations Classification
	(In thousands)
Lease costs	$	2,261	$	2,608	$	4,914	$	5,208	Occupancy and equipment
Variable lease costs	370		347		781		687		Occupancy and equipment
Short-term lease costs	91		148		141		305		Occupancy and equipment
Lease income	(29)		(17)		(51)		(54)		Occupancy and equipment
Total lease costs	$	2,693	$	3,086	$	5,785	$	6,146

Operating Lease Assets and Liabilities

	June 30, 2024		December 31, 2023		Statement of Financial Condition Classification
	(In thousands)
Right-of-use assets	$	20,298	$	21,725	Operating lease right-of-use assets
Lease Liabilities	$	22,605	$	24,029	Operating leases liabilities

	June 30, 2024		December 31, 2023
	(In thousands)
Weighted-average remaining lease term	5.0 years		5.1 years
Weighted-average discount rate	7.5	%	7.0	%

52

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024 were as follows:

	Minimum Rent
As of June 30, 2024	(In thousands)
2024	$	4,093
2025	6,676
2026	4,620
2027	3,793
2028	2,980
Thereafter	5,184
Total lease payments	$	27,346
Less imputed interest	4,741
Present value of lease liabilities	$	22,605

OFG, as lessor, leases and subleases real property to tenants under operating leases. As of June 30, 2024, no material lease concessions have been granted to tenants. As of June 30, 2024, OFG, as lessee, has not requested any lease concessions.

NOTE 20 - FAIR VALUE OF FINANCIAL INSTRUMENTS

OFG follows the fair value measurement framework under GAAP.

Fair Value Measurement

The fair value measurement framework defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This framework also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Money market investments

The fair value of money market investments is based on the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

Investment securities

The fair value of investment securities is based on valuations obtained from an independent pricing provider, ICE Data Pricing (formerly known as IDC) (“ICE”). ICE is a well-recognized pricing company and an established leader in financial information. Such securities are classified as Level 1 or Level 2, depending on the basis for determining fair value. At June 30, 2024, there was one security held-to-maturity, carried at amortized cost with no ACL established, classified as Level 3.

Servicing assets

Servicing assets do not trade in an active market with readily observable prices. Servicing assets are priced using a discounted cash flow model. The valuation model considers servicing fees, portfolio characteristics, prepayment assumptions, delinquency rates, late charges, other ancillary revenues, cost to service, and other economic factors. Due to the unobservable nature of certain valuation inputs, the servicing rights are classified as Level 3.

Foreclosed real estate

Foreclosed real estate includes real estate properties securing residential mortgage and commercial loans. The fair value of foreclosed real estate may be determined using an external appraisal, broker price opinion or an internal valuation. These foreclosed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

53

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Other repossessed assets

Other repossessed assets are mainly composed of repossessed automobiles. The fair value of the repossessed automobiles may be determined using internal valuation and an external appraisal. These repossessed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below:

	June 30, 2024
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	200,658	$	1,895,648	$	—	$	2,096,306
Trading securities	—		16		—		16
Money market investments	5,083		—		—		5,083
Servicing assets	—		—		49,789		49,789
	$	205,741	$	1,895,664	$	49,789	$	2,151,194
Non-recurring fair value measurements:
Collateral dependent loans	$	—	$	—	$	13,772	$	13,772
Foreclosed real estate	—		—		6,526		6,526
Other repossessed assets	—		—		5,713		5,713
Mortgage loans held for sale	—		—		8,375		8,375
Other loans held for sale	—		—		12,361		12,361
	$	—	$	—	$	46,747	$	46,747

	December 31, 2023
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	296,799	$	1,802,465	$	—	$	2,099,264
Trading securities	—		13		—		13
Money market investments	4,623		—		—		4,623
Servicing assets	—		—		49,520		49,520
	$	301,422	$	1,802,478	$	49,520	$	2,153,420
Non-recurring fair value measurements:
Collateral dependent loans	$	—	$	—	$	8,027	$	8,027
Foreclosed real estate	—		—		10,780		10,780
Other repossessed assets	—		—		4,032		4,032
Other loans held for sale	$	—	$	—	$	28,345	28,345
	$	—	$	—	$	51,184	$	51,184

The fair value information included in the tables above for non-recurring fair value measurements is not as of period-end. Instead, it is as of the date that the fair value measurement was recorded closest to June 30, 2024 and December 31, 2023, excludes nonrecurring fair value measurements of assets no longer outstanding as of the reporting date.

The tables below present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for June 30, 2024 and 2023:

54

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Level 3 Instruments Only

	Quarter Ended June 30,
	2024		2023
	Servicing Assets		Other debt securities available for sale		Servicing Assets		Total
	(In thousands)
Balance at beginning period	$	49,553	$	413	$	49,345	$	49,758
New instruments acquired	303		—		791		791
Principal repayments and amortization	(732)		—		(1,085)		(1,085)
Gains included in earnings	665		—		915		915
Gains included in other comprehensive income	—		7		—		7
Balance at end of period	$	49,789	$	420	$	49,966	$	50,386
	Six-Month Period Ended June 30,
	2024		2023
	Servicing Assets		Other debt securities available for sale		Servicing Assets		Total
	(In thousands)
Balance at beginning of period	$	49,520	$	406	$	50,921	$	51,327
New instruments acquired	830		—		1,365		1,365
Principal repayments and amortization	(1,652)		—		(2,150)		(2,150)
Gains included in earnings	1,091		—		(170)		(170)
Gains included in other comprehensive income	—		14		—		14
Balance at end of period	$	49,789	$	420	$	49,966	$	50,386

Servicing assets gains included in earnings during the quarters and six-month periods ended June 30, 2024 and 2023 were included as mortgage servicing activities in the consolidated statements of operations. For more information on the qualitative information about Level 3 fair value measurements, see Note 7 – Servicing Assets.

There were no liabilities measured at fair value on a recurring basis and non-recurring basis at June 30, 2024 and December 31, 2023. The table below presents quantitative information for all assets measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at June 30, 2024 and December 31, 2023:

55

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	June 30, 2024
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(In thousands)
Servicing assets	$	49,789	Cash flow valuation	Constant prepayment rate	1.49% - 11.45%	6.07	%
				Discount rate	10.00% - 15.50%	11.45	%
Collateral dependent loans	$	13,772	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	17.67	%
Foreclosed real estate	$	6,526	Fair value of property or collateral	Appraised value less disposition costs	10.00% - 33.00%	10.95	%
Other repossessed assets	$	5,713	Fair value of property or collateral	Estimated net realizable value less disposition costs	36.00% - 71.00%	55.48	%
Mortgage loans held for sale	$	8,375	Market prices	Pricing and execution whole loan	92.89% - 101.33%	98.25	%
Other loans held for sale	$	12,361	Bids or sales contract prices	Estimated market value	100.00% - 104.47%	100.48	%

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OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	December 31, 2023
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(In thousands)
Servicing assets	$	49,520	Cash flow valuation	Constant prepayment rate	1.35% - 17.34%	6.12	%
				Discount rate	10.00% - 15.50%	11.45	%
Collateral dependent loans	$	8,027	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	17.00	%
Foreclosed real estate	$	10,780	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	12.67	%
Other repossessed assets	$	4,032	Fair value of property or collateral	Estimated net realizable value less disposition costs	31.00% - 77.00%	57.72	%
Other loans held for sale	$	28,345	Bids or sales contract prices	Estimated market value	52.00% - 103.20%	84.80%

Information about Sensitivity to Changes in Significant Unobservable Inputs

Servicing assets – The significant unobservable inputs used in the fair value measurement of OFG’s servicing assets are constant prepayment rates and discount rates. Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Fair Value of Financial Instruments

The information about the estimated fair value of financial instruments required by GAAP is presented hereunder. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of OFG.

The estimated fair value is subjective in nature, involves uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could affect these fair value estimates. The fair value estimates do not take into consideration the value of future business and the value of assets and liabilities that are not financial instruments. Other significant tangible and intangible assets that are not considered financial instruments include the value of long-term customer relationships of retail deposits, and premises and equipment.

57

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The estimated fair value and carrying value of OFG’s financial instruments at June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024				December 31, 2023
	Fair Value		Carrying Value		Fair Value		Carrying Value
	(In thousands)
Financial Assets:
Level 1
Cash and cash equivalents	$	740,429	$	740,429	$	748,173	$	748,173
Investment securities available-for-sale	$	200,658	$	200,658	$	296,799	$	296,799
Level 2
Financial Assets:
Trading securities	$	16	$	16	$	13	$	13
Investment securities available-for-sale	$	1,895,648	$	1,895,648	$	1,802,465	$	1,802,465
Investment securities held-to-maturity	$	244,365	$	303,621	$	455,709	$	514,024
Federal Home Loan Bank (FHLB) stock	$	15,280	$	15,280	$	14,488	$	14,488
Equity securities	$	25,794	$	25,794	$	23,981	$	23,981
Level 3
Financial Assets:
Investment securities held-to-maturity	$	35,072	$	35,000	$	35,055	$	35,000
Total loans (including loans held-for-sale)	$	7,410,349	$	7,503,142	$	7,282,214	$	7,401,618
Accrued interest receivable	$	72,969	$	72,969	$	71,400	$	71,400
Servicing assets	$	49,789	$	49,789	$	49,520	$	49,520
Accounts receivable and other assets	$	56,760	$	56,760	$	47,859	$	47,589
Financial Liabilities:
Deposits	$	9,622,547	$	9,605,250	$	9,767,068	$	9,762,169
Advances from FHLB	$	198,937	$	200,741	$	199,184	$	200,768
Other borrowings	$	—	$	—	$	2	$	2
Accrued expenses and other liabilities	$	140,410	$	140,410	$	115,985	$	115,985

58

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following methods and assumptions were used to estimate the fair values of significant financial instruments at June 30, 2024 and December 31, 2023:

•Cash and cash equivalents (including money market investments and time deposits with other banks), accrued interest receivable, accounts receivable and other assets, accrued expenses and other liabilities, and other borrowings have been valued at the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

•Investments in FHLB stock are valued at their redemption value.

•The fair value of investment securities, including trading securities, is based on quoted market prices, when available or prices provided from contracted pricing providers, or market prices provided by recognized broker-dealers. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument. The estimated fair value of the AFICA bond in other debt securities held-to-maturity is determined by using a detailed discounted cash flow valuation model to calculate the present value of projected future cash flows. The credit losses are recorded using the ACL methodology. This involves comparing the amortized cost of the securities with the fair value of the expected future cash flows. Several assumptions requiring a high degree of judgment include the selection of market discount rates, the determination of current credit spread, and the estimation of both the probability of default and loss given default rates. Equity securities do not have readily available fair values and are measured at cost, less any impairment.

•The fair value of servicing asset is estimated by using a cash flow valuation model, which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions.

•The fair value of the loan portfolio (including loans held-for-sale and non-performing loans) is based on the exit market price, which is estimated by segregating by loan type, such as mortgage, commercial, consumer and auto. The fair value is calculated by discounting contractual cash flows. The discount rate used in such calculation considers a capital adjustment as well as other premiums for systemic risk, servicing costs, modeling and uncertainty risk, and impairment uncertainty.

•The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is based on the discounted value of the contractual cash flows, using estimated current market discount rates for deposits of similar remaining maturities.

•The fair value of long-term borrowings, including advances from FHLB, is based on the discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates.

59

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 21 – BANKING AND FINANCIAL SERVICE REVENUES

The following table presents the major categories of banking and financial service revenues for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)				(In thousands)
Banking service revenues:
Electronic banking fees	$	14,718	$	13,603	$	28,408	$	26,969
Checking accounts fees	1,894		2,184		4,061		4,404
Savings accounts fees	307		327		615		660
Credit life commissions	73		119		77		224
Branch service commissions	275		324		621		746
Servicing and other loan fees	1,325		702		1,893		1,584
International fees	184		179		356		362
Miscellaneous income	5		2		9		4
Total banking service revenues	18,781		17,440		36,040		34,953
Wealth management revenue:
Insurance income	4,214		4,169		7,988		7,539
Broker fees	2,009		1,797		4,100		3,580
Trust fees	2,217		2,228		4,459		4,152
Other fees	—		—		—		43
Total wealth management revenue	8,440		8,194		16,547		15,314
Mortgage banking activities:
Net servicing fees	4,101		4,650		8,052		7,493
Net gains on sale of mortgage loans and valuation	719		790		1,372		1,559
Net gain (loss) on repurchased loans and other	44		(215)		133		71
Total mortgage banking activities	4,864		5,225		9,557		9,123
Total banking and financial service revenues	$	32,085	$	30,859	$	62,144	$	59,390

OFG recognizes the revenue from banking services, wealth management and mortgage banking based on the nature and timing of revenue streams from contracts with customers:

Banking Service Revenues

Electronic banking fees are credit and debit card processing services, use of the Bank’s ATMs by non-customers, debit card interchange income and service charges on deposit accounts. Revenue is recorded once the contracted service has been provided.

Service charges on checking and saving accounts is recognized as consumer periodic maintenance revenue once the service is rendered, while overdraft and late charges revenues are recorded after the contracted service has been provided.

Other income as credit life and branch service commissions, servicing and other loan fees, international fees, and miscellaneous income recognized as banking services revenue are out of the scope of ASC 606 – Revenue from Contracts with Customers.

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OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Wealth Management Revenue

Insurance income from commissions generated in the sale of insurance policies issued by unaffiliated insurance companies and sale of annuities are recorded once the sale has been completed. Reinsurance revenue is recorded based on earned premium confirmed by the fronting insurance company. Contingent insurance commissions are recorded once the paying insurance companies confirm the amounts earned.

Broker fees consist of two categories:

•Sales commissions generated by advisers for their clients’ purchases and sales of securities and other investment products, which are collected once the stand-alone transactions are completed at trade date or as earned, and managed account fees which are fees charged to advisers’ clients’ accounts on OFG’s corporate advisory platform. These revenues do not cover future services, as a result there is no need to allocate the amount received to any other service.

•Fees for providing distribution services related to mutual funds, net of compensation paid to a provider of such services, as well as trailer fees (also known as 12b-1 fees). These fees are considered variable and are recognized over time, as the uncertainty of the fees to be received is resolved as the net asset value of the mutual fund is determined and investor activity occurs. Fees do not cover future services, as a result there is no need to allocate the amount received to any other service.

Trust fees are revenues related to fiduciary services provided to 401K retirement plans, IRA trusts, and retirement plans. These generally include payment for trustee services, distribution services, custodial services of plan assets, due diligence services, and investment advisory services. Fees are billed based on services contracted. Negotiated fees are detailed in the contract. Fees collected in advance are amortized over the term of the contract. Fees are generally collected on an annual or quarterly basis once the administrative service has been completed. Fees do not include future services.

Mortgage Banking Activities

Mortgage banking activities such as servicing fees, gain on sale of mortgage loans and valuation, and gain (loss) on repurchased loans and other are out of the scope of ASC 606.

NOTE 22 – 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.

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OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

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
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	118,027		4		29,294		147,325		—		147,325
Provision for (recapture of) credit losses	15,589		—		(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 revenue	415		—		—		415		(415)		—
Intersegment expenses	—		(243)		(172)		(415)		415		—
Income before income taxes	40,070		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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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 income	233,173		13		58,241		291,427		—		291,427
Provision for (recapture of) credit losses	30,814		—		(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 revenue	839		—		—		839		(839)		—
Intersegment expenses	—		(510)		(329)		(839)		839		—
Income before income taxes	$	77,490	$	5,387	$	56,300	$	139,177	$	—	$	139,177
Income tax expense	38,262		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.

62

OFG BANCORP

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

	Quarter Ended June 30, 2023
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	124,175		6		15,463		139,644		—		139,644
Provision for credit losses	15,052		—		(8)		15,044		—		15,044
Non-interest income	23,354		7,868		(1,149)		30,073		—		30,073
Non-interest expenses	(83,876)		(4,138)		(874)		(88,888)		—		(88,888)
Intersegment revenue	575		—		—		575		(575)		—
Intersegment expenses	—		(380)		(195)		(575)		575		—
Income before income taxes	49,176		3,356		13,253		65,785		—		65,785
Income tax expense	21,577		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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Please read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included under Item I, “Financial Statements” of this quarterly report on Form 10-Q. This discussion and analysis section contains forward-looking statements. Please see “Forward-Looking Statements,” “Risk Factors,” and “Quantitative and Qualitative Disclosures about Market Risk” in this quarterly report on Form 10-Q for the quarter ended June 30, 2024 and set forth in our annual report for the year ended December 31, 2023 (the “2023 Form 10-K”), as supplemented and amended by any subsequent quarterly reports on Form 10-Q, for a discussion of the uncertainties, risks and assumptions associated with these statements.

Other factors not identified above, including those described under the headings in our 2023 Form 10-K and any subsequent quarterly reports on Form 10-Q may also cause actual results to differ materially from those described in our forward-looking statements.

INTRODUCTION

OFG is a publicly-owned financial holding company that provides wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory and securities brokerage services, as well as corporate and individual trust services. It operates through three business segments: Banking, Wealth Management, and Treasury, and distinguishes itself based on quality service. OFG conducts its business through its main office in San Juan, Puerto Rico, forty-two branches in Puerto Rico and two branches in the U.S. Virgin Islands (the “USVI”). It has five subsidiaries with operations in Puerto Rico: the Bank, Oriental Financial Services, Oriental Insurance, OIB and OBPEF; two subsidiaries in the United States, OFG USA and OFG Ventures; and one subsidiary in the Cayman Islands, OFG Reinsurance. OFG’s long-term goal is to strengthen its banking and financial services franchise by expanding its lending businesses, increasing the level of integration in the marketing and delivery of banking and financial services, continuously improving our already effective asset-liability management, growing non-interest revenue from banking and financial services, as well as achieving greater operating efficiencies.

OFG’s diversified mix of businesses and products generates both the interest income traditionally associated with a banking institution and non-interest income traditionally associated with a financial services institution (generated by such businesses as securities brokerage, fiduciary services, investment advisory, insurance agency and reinsurance). Although all of these businesses, to varying degrees, are affected by interest rate and financial market fluctuations and other external factors, OFG’s commitment is to continue producing a balanced and growing revenue stream.

OFG’s mission is to make possible the progress of our customers, employees, shareholders, and the communities we serve. OFG has been deploying its Digital First strategy to achieve this mission. Our strategy highly differentiates OFG through a sales and service business model and culture that emphasizes convenience and accessibility through digital channels while creating a simple, self-service and enjoyable customer experience. OFG strives to proactively identify the customer’s objectives and needs to offer value-added services that help them achieve financial progress and well-being.

RECENT DEVELOPMENTS

Capital Actions

In January 2024, OFG announced that its Board of Directors approved the increase of its regular quarterly cash dividend to $0.25 per common share from $0.22 per share, beginning in the quarter ended March 31, 2024. The Board of Directors also approved a new $50.0 million stock repurchase program. The new stock repurchase program, which is open-ended, replaces the prior stock repurchase program approved by the Board of Directors in January 2022, which had $17.2 million remaining of its $100.0 million repurchase parameters. 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.

Economic Conditions

We believe that Puerto Rico’s economy continues to demonstrate resiliency and growth and its private sector, including business investments, is expanding. The Puerto Rico Economic Activity Index, as published by the Economic Development Bank for Puerto Rico, slightly decreased 2.0% year-over-year as of April 2024. According to the data published by Economic Development Bank for Puerto Rico, wages are rising, and labor participation is increasing. Total non-farm payroll employment averaged 960,300 jobs in April, equivalent to an increase of 0.8% for that month, in a month-over-month basis, and an annual

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increase of 2.4%. The inflow of federal stimulus and reconstruction funds for rebuilding infrastructure has continued, and we believe this inflow will stimulate the local economy. Nevertheless, OFG continues to pay attention to the potential impact of interest rate changes, inflation, and other economic factors, and global conflicts, all of which could impact our business and results of operations.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in accordance with GAAP requires management to make a number of judgments, estimates and assumptions that affect the reported amount of assets, liabilities, income and expenses in the consolidated financial statements. Understanding our accounting policies and the extent to which we use management judgment and estimates in applying these policies is integral to understanding our financial statements. We provide a summary of our significant accounting policies in “Note 1—Summary of Significant Accounting Policies” of our 2023 Form 10-K.

In the “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” section of our 2023 Form 10-K, we identified the Allowance for Credit Losses related to loans collectively evaluated for impairment as a critical accounting policy and estimate because it involves significant estimation uncertainty that has or is reasonably likely to have a material impact on our financial condition or results of operations.

We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary based on changing conditions. As part of OFG’s continuous enhancement to the allowance for credit losses methodology, during the six-month period ended June 30, 2024, an assessment of the weight of probability scenarios for the US loan segment was performed and updated to use a higher probability level in the moderate recessionary scenario. This change in the allowance for credit losses is considered a change in accounting estimate as per ASC 250-10 provisions, where adjustments should be made prospectively. Apart from the foregoing change, there have been no material changes in the methods that we used to formulate these critical accounting estimates from those discussed in our 2023 Form 10-K.

FINANCIAL HIGHLIGHTS

We believe that the second quarter of 2024 continued to demonstrate the strength of OFG’s strategies and franchise. EPS-diluted increased 16.1% year-over-year on a 5.2% increase in total core revenues. OFG generated strong performance metrics through consistent growth; increased loans, deposits, and non-interest income; and stable credit quality. Further, we believe that our ‘Digital First’ strategy continues to help expand retail and business relationships through new and upgraded products, services, and self-service tools. In addition, we implemented close to half of our $50 million share buyback program, purchasing $24.3 million of OFG’s shares in the open market. At the same time, Puerto Rico’s economy continued to grow and steadily decouple from mainland economic uncertainties.

Earnings per share diluted of $1.08 compared to $1.05 in the first quarter of 2024 and $0.93 in the second quarter of 2023. Total core revenues of $179.4 million compared to $174.2 million in the first quarter of 2024 and $170.5 million in the second quarter of 2023.

Performance metrics: Net interest margin of 5.51%, return on average assets of 1.82%, return on average tangible common stockholders’ equity of 18.24%, and efficiency ratio of 51.81%.

Total Interest Income of $187.7 million compared to $183.4 million in the first quarter of 2024 and $158.0 million in the second quarter of 2023. Compared to the first quarter of 2024, the second quarter of 2024 primarily reflected higher average balances and yields on loans. The second quarter of 2024 also included $2.1 million from the recovery of a non-accrual U.S. commercial loan paid in full.

Total Interest Expense of $40.3 million compared to $39.3 million in the first quarter of 2024 and $18.3 million in the second quarter of 2023. Compared to the first quarter of 2024, the second quarter of 2024 reflected higher average core deposits and a 7 basis point increase in rates, partially offset by lower average wholesale funding and rate.

Total Banking and Financial Service Revenues of $32.1 million compared to $30.1 million in the first quarter of 2024 and $30.9 million in the second quarter of 2023. Compared to the first quarter of 2024, the second quarter of 2024 reflected higher banking service, wealth management and mortgage banking revenues. Banking service revenues included $0.6 million prepayment fees on U.S. loans, while wealth management included $0.5 million in annual recognition of certain commercial insurance commissions.

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Pre-Provision Net Revenues of $86.8 million compared to $83.0 million in the first quarter of 2024 and $80.8 million in the second quarter of 2023.

Total Provision for Credit Losses of $15.6 million compared to $15.1 million in the first quarter of 2024 and $15.0 million in the second quarter of 2023. The second quarter of 2024 provision primarily reflected increased loan volume.

Credit Quality: Net charge-offs of $15.0 million compared to $19.8 million in the first quarter of 2024 and $6.6 million in the second quarter of 2023. The second quarter of 2024 early and total delinquency rates were 2.81% and 3.71%, respectively. The nonperforming loan rate of 1.08% was the lowest in the last five quarters.

Total Non-Interest Expense of $93.0 million compared to $91.4 million in the first quarter of 2024 and $88.9 million in the second quarter of 2023. Compared to the first quarter of 2024, the second quarter of 2024 included increases of $1.3 million in electronic banking expenses, $1.1 million in professional services fees, and $0.4 million for increased FDIC deposit insurance assessments now that Oriental exceeds $10 billion in assets. This was partially offset by reductions of $1.4 million in foreclosed real estate costs and in FICA payroll-related expenses relative to the prior quarter.

Effective Tax Rate (“ETR”) of 28.2% compared to 26.8% in the first quarter of 2024 and 32.9% in the second quarter of 2023. The second quarter of 2024 reflected an expected 2024 ETR of 29.0% due to higher forecasted business activities with preferential tax treatment under the Puerto Rico tax code, coupled with a $0.8 million tax benefit credit in the second quarter of 2024 compared to $1.1 million discrete benefit for stock vested in in the first quarter of 2024.

Loans Held for Investment of $7.64 billion compared to $7.54 billion in the first quarter of 2024 and $7.12 billion in the second quarter of 2023. Compared to the first quarter of 2024, the second quarter of 2024 increased 1.3%, reflecting growth in Puerto Rico commercial, auto and consumer loans, partially offset by regular paydowns of residential mortgages and prepayment of U.S. commercial loans. Compared to the second quarter of 2023, the first quarter of 2024 loans increased 7.3%.

New Loan Production of $589.0 million compared to $536.6 million in the first quarter of 2024 and $681.8 million in the second quarter of 2023. Compared to the first quarter of 2024, the second quarter of 2024 loan production, led by auto, reflected increases in all categories.

Total Investments of $2.48 billion compared to $2.48 billion in the first quarter of 2024 and $1.70 billion in the second quarter of 2023.

Customer Deposits of $9.60 billion compared to $9.55 billion in the first quarter of 2024 and $8.54 billion in the second quarter of 2023. Compared to the first quarter of 2024, the second quarter of 2024 reflected an increase in commercial deposits partially offset by a decline in retail deposits.

Total Borrowings and Brokered Deposits of $201.2 million compared to $203.3 million in the first quarter of 2024 and $226.5 million in the second quarter of 2023.

Cash and Cash Equivalents of $740.4 million compared to $754.4 million in the first quarter of 2024 and $799.0 million in the second quarter of 2023.

Capital: CET1 ratio was 14.29% compared to 14.45% in the first quarter of 2024 and 14.03% in the second quarter of 2023. The Tangible Common Equity ratio was 10.09% compared to 10.06% in the first quarter of 2024 and 9.99% in the second quarter of 2023. Tangible Book Value of $24.18 per share compared to $23.55 in the first quarter of 2024 and $21.06 in the second quarter of 2023.

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Selected income statement and balance sheet data and key performance indicators are presented in the tables below:

	Quarter Ended June 30,							Six-Month Period Ended June 30,
	2024			2023			Variance %	2024			2023			Variance %
EARNINGS DATA:	(In thousands, except per share data)
Interest income	$	187,658		$	157,988		18.8%	$	371,084		$	306,973		20.9%
Interest expense	40,333			18,344			119.9%	79,657			31,432			153.4%
Net interest income	147,325			139,644			5.5%	291,427			275,541			5.8%
Provision for credit losses	15,581			15,044			3.6%	30,702			24,489			25.4%
Net interest income after provision for credit losses	131,744			124,600			5.7%	260,725			251,052			3.9%
Non-interest income	32,476			30,073			8.0%	62,824			58,974			6.5%
Non-interest expenses	92,960			88,888			4.6%	184,372			179,108			2.9%
Income before taxes	71,260			65,785			8.3%	139,177			130,918			6.3%
Income tax expense	20,129			21,612			(6.9)%	38,354			40,516			(5.3)%
Net income available to common shareholders	$	51,131		$	44,173		15.8%	$	100,823		$	90,402		11.5%
PER SHARE DATA:
Basic	$	1.09		$	0.93		17.2%	$	2.14		$	1.91		12.0%
Diluted	$	1.08		$	0.93		16.1%	$	2.13		$	1.89		12.7%
Average common shares outstanding	46,952			47,266			(0.7)%	47,024			47,432			(0.9)%
Average common shares outstanding and equivalents	47,131			47,490			(0.8)%	47,244			47,716			(1.0)%
Cash dividends declared per common share	$	0.25		0.22			13.6%	$	0.50		0.44			13.6%
Cash dividends declared on common shares	$	11,951		10,538			13.4%	$	23,747		21,065			12.7%
PERFORMANCE RATIOS:
Return on average assets (ROA)	1.82		%	1.76		%	3.4%	1.80		%	1.82		%	(1.1)%
Return on average tangible common stockholders’ equity	18.24		%	17.67		%	3.2%	18.08		%	18.39		%	(1.7)%
Return on average common equity (ROE)	16.71		%	15.93		%	4.9%	16.55		%	16.54		%	0.1%
Efficiency ratio	51.81		%	52.13		%	(0.6)%	52.15		%	53.48		%	(2.5)%
Interest rate spread	5.36		%	5.84		%	(8.2)%	5.31		%	5.84		%	(9.1)%
Interest rate margin	5.51		%	5.90		%	(6.6)%	5.45		%	5.89		%	(7.5)%

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	June 30,			December 31,			Variance
	2024			2023			%
PERIOD END BALANCES AND CAPITAL RATIOS:	(In thousands, except per share data)
Investments and loans
Investment securities	$	2,476,017		$	2,686,770		(7.8)%
Loans, net	7,503,142			7,401,618			1.4%
Total investments and loans	$	9,979,159		$	10,088,388		(1.1)%
Deposits and borrowings
Deposits	$	9,605,250		$	9,762,169		(1.6)%
Borrowings	200,741			200,770			—%
Total deposits and borrowings	$	9,805,991		$	9,962,939		(1.6)%
Stockholders’ equity
Common stock	59,885			59,885			—%
Additional paid-in capital	637,895			638,667			(0.1)%
Legal surplus	160,560			150,967			6.4%
Retained earnings	706,807			639,324			10.6%
Treasury stock, at cost	(250,951)			(228,350)			9.9%
Accumulated other comprehensive loss	(86,494)			(67,013)			29.1%
Total stockholders’ equity	$	1,227,702		$	1,193,480		2.9%
Per share data
Book value per common share	$	26.37		$	25.36		4.0%
Tangible book value per common share	$	24.18		$	23.13		4.5%
Market price	$	37.45		$	37.48		(0.1)%
Capital ratios
Leverage capital	10.86		%	11.03		%	(1.5)%
Common equity Tier 1 capital	14.29		%	14.12		%	1.2%
Tier 1 risk-based capital	14.29		%	14.12		%	1.2%
Total risk-based capital	15.54		%	15.37		%	1.1%
Financial assets managed
Trust assets managed	$	2,200,102		$	2,511,880		(12.4)%
Broker-dealer assets managed	2,159,204			2,446,281			(11.7)%
Total assets managed	$	4,359,306		$	4,958,161		(12.1)%

ANALYSIS OF RESULTS OF OPERATIONS

The following tables show major categories of interest-earning assets and interest-bearing liabilities, their respective interest income, expenses, yields and costs, and their impact on net interest income due to changes in volume and rates for the quarters and six-month periods ended June 30, 2024 and 2023.

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TABLE 1 - ANALYSIS OF NET INTEREST INCOME AND CHANGES DUE TO VOLUME/RATE FOR THE QUARTERS ENDED JUNE 30, 2024 AND 2023

	Interest				Average rate				Average balance
	June 2024		June 2023		June 2024		June 2023		June 2024		June 2023
	(Dollars in thousands)
A - TAX EQUIVALENT SPREAD
Interest-earning assets	$	187,658	$	157,988	7.02	%	6.68	%	$	10,758,623	$	9,492,861
Tax equivalent adjustment	3,566		3,938		0.13	%	0.17	%	—		—
Interest-earning assets - tax equivalent	191,224		161,926		7.15	%	6.85	%	10,758,623		9,492,861
Interest-bearing liabilities	40,333		18,344		1.65	%	0.84	%	9,821,311		8,757,839
Tax equivalent net interest income / spread	150,891		143,582		5.50	%	6.01	%	937,312		735,022
Tax equivalent interest rate margin					5.63	%	6.18	%
B - NORMAL SPREAD
Interest-earning assets:
Investments:
Investment securities	24,666		13,441		3.96	%	2.99	%	2,489,488		1,796,517
Interest bearing cash and money market investments	8,735		9,029		5.35	%	5.22	%	656,728		693,373
Total investments	33,401		22,470		4.27	%	3.62	%	3,146,216		2,489,890
Non-PCD loans
Mortgage	8,214		8,653		5.62	%	5.55	%	584,420		623,773
Commercial	59,658		47,825		8.16	%	7.57	%	2,941,010		2,533,434
Consumer	19,016		17,214		11.54	%	11.39	%	662,680		606,101
Auto	50,853		43,007		8.56	%	8.30	%	2,388,524		2,077,552
Total Non-PCD loans	137,741		116,699		8.42	%	8.01	%	6,576,634		5,840,860
PCD loans
Mortgage	14,059		15,761		6.28	%	6.35	%	895,163		993,100
Commercial	2,406		2,940		6.93	%	7.15	%	138,910		164,552
Consumer	17		6		10.94	%	3.07	%	635		741
Auto	34		112		12.76	%	12.05	%	1,065		3,718
Total PCD loans	16,516		18,819		6.38	%	6.48	%	1,035,773		1,162,111
Total loans (1)	154,257		135,518		8.15	%	7.76	%	7,612,407		7,002,971
Total interest-earning assets	187,658		157,988		7.02	%	6.68	%	10,758,623		9,492,861
Interest-bearing liabilities:
Deposits:
NOW Accounts	20,964		4,973		2.45	%	0.81	%	3,448,144		2,455,040
Savings and money market	4,587		4,129		0.91	%	0.75	%	2,020,653		2,222,710
Time deposits	11,109		5,493		2.88	%	1.72	%	1,552,829		1,277,861
Total core deposits	36,660		14,595		2.10	%	0.98	%	7,021,626		5,955,611
Brokered deposits	21		—		5.28	%	—	%	1,566		—
	36,681		14,595		2.10	%	0.98	%	7,023,192		5,955,611
Non-interest bearing deposits	—		—		—		—		2,578,216		2,575,972

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	Interest				Average rate				Average balance
	June 2024		June 2023		June 2024		June 2023		June 2024			June 2023
	(Dollars in thousands)
Fair value premium and core deposit intangible amortizations	1,131		1,321		—	%	—	%	—			—
Total deposits	37,812		15,916		1.58	%	0.75	%	9,601,408			8,531,583
Borrowings:
Advances from FHLB and other borrowings	2,521		2,428		4.61	%	4.30	%	219,903			226,256
Total borrowings	2,521		2,428		4.61	%	4.30	%	219,903			226,256
Total interest-bearing liabilities	40,333		18,344		1.65	%	0.84	%	9,821,311			8,757,839
Net interest income / spread	$	147,325	$	139,644	5.36	%	5.84	%
Interest rate margin					5.51	%	5.90	%
Excess of average interest-earning assets over average interest-bearing liabilities									$	937,312		$	735,022
Average interest-earning assets to average interest-bearing liabilities ratio									109.54		%	108.39		%
(1) Includes loans held for sale and excludes allowance for credit losses. Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis

C - CHANGES IN NET INTEREST INCOME DUE TO:

	Volume		Rate		Total
	(In thousands)
Interest Income:
Investment securities	$	5,694	$	5,531	$	11,225
Interest bearing cash and money market investments	(885)		591		(294)
Loans	13,643		5,096		18,739
Total interest income	18,452		11,218		29,670
Interest Expense:
NOW Accounts	2,689		13,302		15,991
Savings and money market	(400)		858		458
Time deposits	2,051		3,565		5,616
Brokered deposits	10		11		21
Fair value premium and core deposit intangible amortizations	—		(190)		(190)
Advances from FHLB and other borrowings	(70)		163		93
Total interest expense	4,280		17,709		21,989
Net Interest Income	$	14,172	$	(6,491)	$	7,681

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TABLE 1 - ANALYSIS OF NET INTEREST INCOME AND CHANGES DUE TO VOLUME/RATE

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

	Interest			Average rate				Average balance
	June 2024		June 2023	June 2024		June 2023		June 2024		June 2023
	(Dollars in thousands)
A - TAX EQUIVALENT SPREAD
Interest-earning assets	$	371,084	306,973	6.94	%	6.57	%	$	10,749,306	$	9,426,405
Tax equivalent adjustment	7,756		8,573	0.14	%	0.18	%	—		—
Interest-earning assets - tax equivalent	378,840		315,546	7.08	%	6.75	%	10,749,306		9,426,405
Interest-bearing liabilities	79,657		31,432	1.63	%	0.73	%	9,816,806		8,712,977
Tax equivalent net interest income / spread	299,183		284,114	5.45	%	6.02	%	932,500		713,428
Tax equivalent interest rate margin				5.59	%	6.20	%
B - NORMAL SPREAD
Interest-earning assets:
Investments:
Investment securities	50,502		27,669	3.97	%	2.96	%	2,543,515		1,867,857
Interest bearing cash and money market investments	16,731		15,475	5.35	%	5.01	%	628,709		623,393
Total investments	67,233		43,144	4.24	%	3.49	%	3,172,224		2,491,250
Non-PCD loans
Mortgage loans	16,443		17,226	5.59	%	5.48	%	588,021		628,423
Commercial loans	116,893		92,123	7.99	%	7.44	%	2,933,046		2,495,892
Consumer loans	37,639		33,452	11.51	%	11.39	%	657,451		592,469
Auto loans	99,738		83,228	8.54	%	8.23	%	2,347,823		2,039,598
Total Non-PCD loans	270,713		226,029	8.34	%	7.92	%	6,526,341		5,756,382
PCD loans
Mortgage loans	28,485		31,468	6.28	%	6.25	%	907,411		1,006,623
Commercial loans	4,526		6,053	6.40	%	3.62	%	141,399		167,100
Consumer loans	35		51	11.23	%	13.36	%	629		761
Auto loans	92		228	14.22	%	5.32	%	1,302		4,289
Total PCD loans	33,138		37,800	6.31	%	6.41	%	1,050,741		1,178,773
Total loans (1)	303,851		263,829	8.06	%	7.67	%	7,577,082		6,935,155
Total interest-earning assets	$	371,084	306,973	6.94	%	6.57	%	$	10,749,306	$	9,426,405

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	Interest				Average rate				Average balance
	June 2024		June 2023		June 2024		June 2023		June 2024			June 2023
	(Dollars in thousands)
Interest-bearing liabilities:
Deposits:
NOW Accounts	41,479		9,187		2.41	%	0.75	%	3,460,498			2,476,360
Savings accounts	9,004		7,264		0.89	%	0.66	%	2,031,759			2,227,196
Time deposits	21,032		9,313		2.79	%	1.51	%	1,516,791			1,243,835
Total core deposits	71,515		25,764		2.05	%	0.87	%	7,009,048			5,947,391
Brokered deposits	824		8		5.50	%	0.30	%	30,152			5,086
	72,339		25,772		2.06	%	0.88	%	7,039,200			5,952,477
Non-interest bearing deposits	—		—		—	%	—	%	2,557,268			2,614,840
Fair value premium and core deposit intangible amortizations	2,265		2,641		—	%	—	%	—			—
Total deposits	74,604		28,413		1.56	%	0.67	%	9,596,468			8,567,317
Borrowings:
Advances from FHLB and other borrowings	5,053		3,019		4.61	%	4.18	%	220,338			145,660
Total borrowings	5,053		3,019		4.61	%	4.18	%	220,338			145,660
Total interest-bearing liabilities	79,657		31,432		1.63	%	0.73	%	9,816,806			8,712,977
Net interest income / spread	$	291,427	$	275,541	5.31	%	5.84	%
Interest rate margin					5.45	%	5.89	%
Excess of average interest-earning assets over average interest-bearing liabilities									$	932,500		$	713,428
Average interest-earning assets to average interest-bearing liabilities ratio									109.50		%	108.19		%
(1) Includes loans held for sale and excludes allowance for credit losses. Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.

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C - CHANGES IN NET INTEREST INCOME DUE TO:

	Volume		Rate		Total
	(In thousands)
Interest Income:
Investment securities	$	11,071	$	11,762	$	22,833
Interest-bearing cash and money market investments	(620)		1,876		1,256
Loans	28,447		11,575		40,022
Total interest income	38,898		25,213		64,111
Interest Expense:
NOW accounts	4,907		27,385		32,292
Savings accounts	(688)		2,428		1,740
Time deposits	3,622		8,097		11,719
Brokered deposits	181		635		816
Fair value premium and core deposit intangible amortizations	—		(376)		(376)
Advances from FHLB and other borrowings	1,687		347		2,034
Total interest expense	9,709		38,516		48,225
Net Interest Income	$	29,189	$	(13,303)	$	15,886

Net Interest Income

Net interest income is a function of the difference between rates earned on OFG’s interest-earning assets and rates paid on its interest-bearing liabilities (interest rate spread) and the relative amounts of its interest earning assets and interest-bearing liabilities (interest rate margin). OFG constantly monitors the composition and re-pricing of its assets and liabilities to maintain its net interest income at adequate levels.

Comparison of quarters ended June 30, 2024 and 2023

Net interest income of $147.3 million increased $7.7 million from $139.6 million. Tax equivalent basis net interest income of $150.9 million increased $7.3 million, or 5.1%, from $143.6 million.

Interest rate spread decreased 48 basis points to 5.36% from 5.84% and net interest margin decreased 39 basis points to 5.51% from 5.90%.

Net interest income was positively impacted by:

•A $18.7 million increase in interest income from loans, primarily driven by: (i) higher interest income from commercial loans by $11.3 million, reflecting the upward repricing of variable rate loans, increased yields on new loans originated during 2024 and a $2.1 million recovery of a non-accrual commercial US loan paid in full; (ii) higher interest income from auto loans by $7.8 million, mainly due to an increase in the average balance of this portfolio by $308.3 million; and (iii) higher interest income from consumer loans by $1.8 million, mainly due to an increase in the average balance of this portfolio by $56.5 million. These increases were partially offset by lower interest income from residential mortgage loans by $2.1 million, reflecting a decrease in the average balance of this portfolio by $137.3 million, mainly from regular paydowns and the securitization and sale of conforming loans; and

•A $11.2 million increase in interest income from investments securities, primarily related to higher yield by 97 basis points, which contributed to an increase in interest income of approximately $5.5 million and higher average volume of $693.0 million, resulting in an increase in interest income of approximately $5.7 million.

These increases were offset by higher interest expense of $22.0 million, $21.9 million from deposits due to higher average cost of 83 basis points, reflecting a $1.2 billion deposit from an existing long-standing Puerto Rico government client received during the fourth quarter of 2023 with variable interest rate.

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Comparison of the six-month periods ended June 30, 2024 and 2023

Net interest income of $291.4 million increased by $15.9 million from $275.5 million. Tax equivalent basis net interest income of $299.2 million increased $15.1 million, or 5.3%, from $284.1 million.

Interest rate spread decreased by 53 basis points to 5.31% from 5.84% and net interest margin decreased 44 basis points to 5.45% from 5.89%. This decrease reflects an increase of 37 and 90 basis points, respectively, in the total average yield of interest-earning assets and the average cost of interest-bearing liabilities.

Net interest income was positively impacted by:

•A $40.0 million increase in interest income from loans driven by higher interest income from: (i) commercial loans of $23.2 million, primarily related to the upward repricing of variable rate commercial loans, increased yields on new loans originated during 2024, and higher average balance; (ii) consumer loans of $4.2 million mainly due to an increase of $64.9 million in the average balance of this portfolio; and (iii) auto loans of $16.4 million reflecting higher originations during 2024. These increases were partially offset by a decrease of $3.8 million in interest income from mortgage loans due to a reduction of $139.6 million in the average balance of this portfolio, mainly from regular paydowns and the securitization and sale of conforming loans;

•A $22.8 million increase in interest income from investment securities, primarily related to a higher average volume of $675.7 million, which resulted in an increase in interest income of $11.1 million, and higher yield by 101 basis points, which contributed to the increase in net interest income of $11.8 million; and

•A $1.3 million increase in interest income from higher yield in lower balances of interest-bearing cash and money market related to higher interest rates.

These increases were partially offset by higher interest expense of $48.2 million from (i) interest paid on deposits of $46.2 million due to higher average cost of total deposits of 89 basis points, reflecting a $1.2 billion deposit from an existing long-standing Puerto Rico government client received during the fourth quarter of 2023 with a variable interest rate, and (ii) $2.0 million interest expense on the $200.0 million two-year FHLB advance taken in late 2023.

TABLE 2 - NON-INTEREST INCOME SUMMARY

	Quarter Ended June 30,						Six-Month Period Ended June 30,
	2024		2023		Variance %		2024		2023		Variance %
	(In thousands)						(In thousands)
Banking service revenue	$	18,781	$	17,440	7.7	%	$	36,040	$	34,953	3.1	%
Wealth management revenue	8,440		8,194		3.0	%	16,547		15,314		8.1	%
Mortgage banking activities	4,864		5,225		(6.9)	%	9,557		9,123		4.8	%
Total banking and financial service revenue	32,085		30,859		4.0	%	62,144		59,390		4.6	%
Net loss on sale of securities	—		(1,149)		(100.0)	%	(7)		(1,149)		(99.4)	%
Other non-interest income	391		363		7.7	%	687		733		(6.3)	%
Total non-interest income	$	32,476	$	30,073	8.0	%	$	62,824	$	58,974	6.5	%

Non-Interest Income

Non-interest income is affected by fees generated from loans and deposit accounts, the amount of assets under management of the Bank’s trust department, transactions generated by clients’ financial assets serviced by OFG’s securities broker-dealer, insurance agency and reinsurance subsidiaries, the level of mortgage banking activities, and gains or losses on sales of assets.

Comparison of quarters ended June 30, 2024 and 2023

OFG recorded non-interest income, net, in the amount of $32.5 million, compared to $30.1 million, an increase of 8.0%, or $2.4 million. The increase in non-interest income was mainly due to the net effect of:

•A $1.3 million increase in banking service revenues mainly due to: (i) higher debit card income of $639 thousand and merchant income of $300 thousand resulting from higher transactionality and migration of USVI merchant activity,

74

(ii) $623 thousand prepayment fees, mainly from US commercial loans; offset by lower fees on deposits of $311 thousand from lower maintenance and overdrawn fees and higher waived fees.

•A $1.1 million loss associated with the sale of a $203.3 million short-term US treasury note available for sale during 2023, there were no sales of investments during the second quarter of 2024; and

•A $246 thousand increase in wealth management revenue primarily reflecting: (i) $212 thousand increase in broker-dealer fees related to higher market asset values and investment advisory services fees and (ii) $137 thousand increase in insurance income related to $123 thousand from reinsurance income, partially offset by lower annuities income of $92 thousand.

These increases were partially offset by a $361 thousand decrease in mortgage banking activities mainly from unfavorable impact in mortgage servicing rights valuation and lower servicing fees, partially offset by gains on repurchased loan sales in the current quarter.

Comparison of the six-month periods ended June 30, 2024 and 2023

OFG recorded non-interest income in the amount of $62.8 million, compared to $59.0 million, an increase of 6.5%, or $3.9 million. The increase in non-interest income was mainly due to:

•A $1.2 million increase in wealth management revenue primarily reflecting: (i) $519 thousand increase in broker-dealer fees related to higher market values of assets and investments advisory services fees, (ii) $449 thousand increase in insurance income related to $298 thousand from reinsurance income and $120 thousand in annuities income;

•A $1.1 million loss associated with the sale of a $149.4 million short-term US treasury note available for sale during 2023; and

•A $1.1 million increase in banking service revenues mainly due to: (i) higher debit card income of $675 thousand and merchant income of $411 thousand resulting from higher volume and migration of USVI merchants, and (ii) $623 thousand prepayment fees, mainly from US commercial loans; offset by lower fees on deposits of $389 thousand from lower maintenance and overdrawn fees and higher waived fees.

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TABLE 3 - NON-INTEREST EXPENSES SUMMARY

	Quarter Ended June 30,								Six-Month Period Ended June 30,
	2024			2023			Variance %		2024			2023			Variance %
	(In thousands)								(In thousands)
Compensation and employee benefits	$	38,467		$	37,841		1.7	%	$	78,283		$	76,314		2.6	%
Occupancy, equipment and infrastructure costs	14,393			14,362			0.2	%	28,715			28,619			0.3	%
Electronic banking charges	11,687			10,262			13.9	%	22,053			20,598			7.1	%
Information technology expenses	6,565			7,188			-8.7	%	13,168			13,606			-3.2	%
Professional and service fees	5,117			5,319			-3.8	%	9,121			10,383			-12.2	%
Taxes, other than payroll and income taxes	3,224			3,265			-1.3	%	6,467			6,538			-1.1	%
Insurance	3,117			2,689			15.9	%	5,793			5,606			3.3	%
Loan servicing and clearing expenses	1,890			1,866			1.3	%	4,000			4,133			-3.2	%
Advertising, business promotion, and strategic initiatives	2,445			2,063			18.5	%	4,824			4,098			17.7	%
Communication	1,219			1,160			5.1	%	2,300			2,189			5.1	%
Printing, postage, stationery and supplies	939			866			8.4	%	1,898			1,596			18.9	%
Foreclosed real estate and other repossessed assets income, net of expenses	(731)			(2,320)			-68.5	%	(63)			(1,527)			95.9	%
Other	4,628			4,327			7.0	%	7,813			6,955			12.3	%
Total non-interest expenses	$	92,960		$	88,888		4.6	%	$	184,372		$	179,108		2.9	%
Relevant ratios and data:
Efficiency ratio	51.81		%	52.13		%			52.15		%	53.48		%
Compensation and benefits to non-interest expense	41.38		%	42.57		%			42.46		%	42.61		%
Compensation to average total assets owned	1.37		%	1.51		%			1.40		%	1.53		%
Number of employees end of period	2,239			2,265					2,239			2,265
Average number of employees	2,226			2,263					2,229			2,257
Average compensation per employee (in thousands)	$	69.11		$	66.89				$	70.24		$	67.62
Average loans per average employee	$	3,419		$	3,095				$	3,399		$	3,073

Comparison of quarters ended June 30, 2024 and 2023

Non-interest expense was $93.0 million, representing an increase of 4.6% or $4.1 million, compared to $88.9 million. The increase in non-interest expense was mainly due to:

•Decrease of $1.6 million in foreclosed real estate and other repossessed assets income, net of expenses due to lower valuation adjustments and lower gain on sale of foreclosed real estate due to lower volume of properties sold.

•Increase of $1.4 million in electronic banking charges mainly due to increases of $1.2 million in point-of-sale and merchant-related fees due to increased transaction volumes.

•Increase of $626 thousand in compensation and employee benefits, as a result of higher salaries and benefits, including payroll taxes; and

•Increase of $428 thousand in insurance expenses related to higher FDIC deposit insurance assessment expense as a result of the Bank exceeding $10 billion in assets.

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The efficiency ratio was 51.81%, an improvement from 52.13%. The efficiency ratio measures how much of OFG’s revenues is used to pay operating expenses. OFG computes its efficiency ratio by dividing non-interest expenses by the sum of its net interest income and non-interest income, but excluding gains on the sale of investment securities, other gains and losses, and other income that may be considered volatile in nature. Management believes that the exclusion of those items permits consistent comparability. Amounts presented as part of non-interest income that were excluded from the adjusted efficiency ratio computation for the quarters ended June 30, 2024 and 2023 amounted to $391 thousand and $786 thousand, respectively.

Comparison of the six-month periods ended June 30, 2024 and 2023

Non-interest expense was $184.4 million, representing an increase of 2.9%, or $5.3 million, compared to $179.1 million. The increase in non-interest expense was mainly due to:

•Increase in compensation and employee benefits of $2.0 million due to higher salaries and benefits, including payroll taxes;

•Decrease of $1.5 million in foreclosed real estate and other repossessed assets income, net of expenses due to lower valuation adjustments and lower gain on sale of foreclosed real estate due to lower volume of properties sold;

•Increase of $1.5 million in electronic banking charges mainly due to increases of $2.1 million in point-of-sale and merchant-related fees from higher volume, partially offset by a $400 thousand annual transaction processing incentive; and

•Increase of $858 thousand in other expenses, primarily driven by a $993 thousand accrual recorded during the current period related to regulatory examinations.

The increase in non-interest expense was partially offset by, a decrease in professional and service fees of $1.3 million, reflecting lower balances in compliance-related expenses.

The efficiency ratio was 52.15%, an improvement from 53.48%. Amounts presented as part of non-interest income that were excluded from the efficiency ratio computation for six-month periods ended June 30, 2024 and 2023 amounted to $680 thousand and $416 thousand, respectively.

Provision for Credit Losses

Comparison of quarters ended June 30, 2024 and 2023

Provision for credit losses increased by $537 thousand to $15.6 million from $15.0 million. The provision for credit losses for the second quarter of 2024, reflected a provision of $11.3 million related to the growth in loan balances, $2.8 million related to commercial-specific loan reserves, mainly in the US commercial loan portfolio, $2.1 million associated with qualitative adjustment, mainly in auto loans, and $1.5 million in loss rate models. These increases were partially offset by $2.0 million in changes in the economic model.

The provision for credit losses for the second quarter of 2023 reflected a provision of $6.3 million related to the growth in loan balances and a provision of $9.4 million related to commercial-specific loan reserves, mainly in the US commercial loan portfolio, and $1.6 million associated with qualitative adjustment, partially offset by $2.8 million for changes in the economic and loss rate models.

Comparison of the six-month periods ended June 30, 2024 and 2023

Provision for credit losses increased $6.2 million to $30.7 million from $24.5 million. The provision for credit losses for the six-month period ended June 30, 2024, reflected adjustments of $26.4 million related to the growth in loan balances, $4.5 million from loss rate model and $2.9 million related to commercial-specific loan reserves, mainly in the US commercial loan portfolio, offset by a $4.9 million release from economic model.

The provision for credit losses for 2023 reflected a provision of $12.5 million related to the growth in loan balances, a provision of $13.5 million related to commercial specific loan reserves, mainly in the US commercial loan portfolio, and $1.0 million associated with qualitative adjustment, partially offset by releases of $3.1 million for changes in the economic and loss rate models.

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Business Segments

OFG segregates its businesses into the following segments: 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 its services were also considered in the determination of the reportable segments. OFG measures the performance of these reportable 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. 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.

TABLE 4 - BUSINESS SEGMENTS
	Quarter Ended June 30, 2024
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	118,027		4		29,294		147,325		—		147,325
Provision for (recapture of) credit losses	15,589		—		(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 revenue	415		—		—		415		(415)		—
Intersegment expenses	—		(243)		(172)		(415)		415		—
Income before income taxes	40,070		2,792		28,398		71,260		—		71,260
Income tax expense (benefit)	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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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 income	233,173		13		58,241		291,427		—		291,427
Provision for (recapture of) credit losses	30,814		—		(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 revenue	839		—		—		839		(839)		—
Intersegment expenses	—		(510)		(329)		(839)		839		—
Income before income taxes	$	77,490	$	5,387	$	56,300	$	139,177	$	—	$	139,177
Income tax expense	38,262		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

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	Quarter Ended June 30, 2023
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	124,175		6		15,463		139,644		—		139,644
Provision for (recapture of) credit losses	15,052		—		(8)		15,044		—		15,044
Non-interest income (loss), net	23,354		7,868		(1,149)		30,073		—		30,073
Non-interest expenses	(83,876)		(4,138)		(874)		(88,888)		—		(88,888)
Intersegment revenue	575		—		—		575		(575)		—
Intersegment expenses	—		(380)		(195)		(575)		575		—
Income before income taxes	49,176		3,356		13,253		65,785		—		65,785
Income tax expense	21,577		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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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 (loss), 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

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.

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Comparison of quarters ended June 30, 2024 and 2023

Banking

OFG’s banking segment net income before taxes decreased by $9.1 million from $49.2 million to $40.1 million, mainly due to:

•Increase of $21.8 million in interest expense primarily related to an increase in the average cost of deposits, reflecting a $1.2 billion deposit from an existing long-standing Puerto Rico government client received during the fourth quarter of 2023 with a variable interest rate; and

•Decrease of $3.9 million in interest income related to Oriental Overseas’ time deposit from the Bank to fund its operations, eliminated in the consolidation, mainly as a result of lower average in the current period.

The decrease in the banking segment’s net income before taxes was partially offset by:

•Increase of $15.7 million in interest income from loans, driven by increased yields on higher balances.

Wealth Management

Wealth management segment revenue consists of commissions and fees from fiduciary activities, securities brokerage, and insurance and reinsurance activities. Net income before taxes from this segment decreased slightly from $3.4 million to $2.8 million, mainly from higher salaries and employee benefits by $489 thousand.

Treasury

Treasury segment net income before taxes increased by $15.1 million, mainly reflecting an increase in interest income from the purchases of investment securities during 2024 and late 2023 with higher yields, higher yield in interest bearing cash and money market investments related to higher interest rates, and lower interest expense associated with inter-segment borrowing as a result of lower average balance.

Comparison of six-month periods ended June 30, 2024 and 2023

Banking

OFG’s banking segment net income before taxes decreased by $19.1 million from $96.6 million to $77.5 million, mainly due to:

•Increase of $45.3 million in interest expense mainly related to higher costs of deposits, reflecting a $1.2 billion deposit from an existing long-standing Puerto Rico government client received during the fourth quarter of 2023 with variable interest rate;

•Increase of $6.4 million in provision for credit losses, mainly due to growth in loan balances;

•Decrease of $7.4 million in interest income related to Oriental Overseas’ time deposit from the Bank to fund its operations, which is eliminated in the consolidation, mainly as a result of lower average balance in the current period; and

•Increase of $4.3 million in non-interest expenses, mainly due to: (i) $2.0 million increase in compensation and employee benefits, (ii) $1.5 million increase in electronic banking charges from higher point-of-sale and merchant-related fees, and (iii) $1.5 million decrease in foreclosed real estate and other repossessed assets income, net of expenses due to lower valuation adjustments and lower gain on sale of foreclosed real estate from decrease in sales volume, partially offset by lower: (a) professional and service fees of $1.3 million.

The decrease in the banking segment’s net income was partially offset by:

•Increase of $40.0 million in interest income from loans, driven by increased yields on higher loan balances; and

•Increase of $2.8 million in non-interest income. The current period includes: (i) $1.1 million in prepayment fees, mainly from commercial US loans, (ii) higher debit card and merchant income due to higher volume and migration of USVI merchants, partially offset by lower period maintenance and overdrawn fees and higher waived fees.

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Wealth Management

Wealth management segment revenue consists of commissions and fees from fiduciary activities, securities brokerage, and insurance and reinsurance activities. Net income before taxes from this segment decreased from $6.3 million to $5.4 million, mainly from higher salaries and employee benefits by $818 thousand.

Treasury

Treasury segment net income before taxes increased by $28.3 million, mainly reflecting:

•Increase of $22.5 million in interest income, reflecting the purchase of agency mortgage-backed securities and US Treasury securities with higher yields during such period and higher yield in interest-bearing cash and money market investments related to higher interest rate than in the previous period; and

•Decrease of $4.5 million in interest expense, reflecting $7.4 million lower inter-segment borrowings as a result of lower average balances, offset by a $2.0 million increase from the $200 million two-year FHLB advance taken in late 2023.

Income Tax Expense

Comparison of quarters ended June 30, 2024 and 2023

Income tax expense for the quarter ended June 30, 2024 decreased $1.5 million to $20.1 million from $21.6 million. OFG maintained an effective tax rate (“ETR”) lower than the statutory rate for the quarters ended June 30, 2024 and 2023 of 28.2% and 32.9%, respectively. The current quarter reflected expected 2024 ETR of 29.2% due to higher forecasted business activities with preferential tax treatment under the Puerto Rico tax code, coupled with a $800 thousand tax benefit credit in the second quarter of 2024.

Comparison of the six-month periods ended June 30, 2024 and 2023

Income tax expense decreased $2.2 million to $38.4 million from $40.5 million. OFG’s ETR was 27.6% in 2024 compared to 30.9% in 2023. The decrease is mainly related to exempt income, income subject to preferential tax treatment under the PR Code and a discrete tax windfall on stock options recognized during the first quarter of 2024 and discrete benefit mainly related to the purchase of tax credits during the second quarter of 2024.

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ANALYSIS OF FINANCIAL CONDITION

Assets Owned

At June 30, 2024, OFG’s total assets amounted to $11.259 billion, a decrease of $85.4 million, when compared to $11.344 billion at December 31, 2023.

Cash and due from banks decreased by $8.2 million to $735.3 million, reflecting the effect of loan funding and lower deposit balances.

The investment portfolio decreased by $210.8 million or 7.8% primarily driven by the maturity of $500 million in US Treasury securities, principal paydowns of $129 million, mainly on mortgage-backed securities, and the sale of $149.4 million of US Treasury securities available-for-sale. These decreases were offset by $545.4 million new available-for-sale US Treasury and mortgage-backed securities, and $38.1 million in mortgage loan securitization. OFG’s investment strategy focuses on liquidity and highly liquid securities, considering their investment and the current market environment.

OFG’s loan portfolio is comprised of commercial loans secured by real estate, other commercial and industrial loans, US commercial loans, residential mortgage loans, consumer loans, and auto loans. At June 30, 2024, OFG’s net loan portfolio increased by $101.5 million or 1.4% reflecting increases in commercial, retail auto and consumer loans, partially offset by regular paydowns of residential mortgage loans and securitization and sale of conforming loans.

Financial Assets Managed

At June 30, 2024, OFG’s financial assets include those managed by OFG’s trust division and its securities broker-dealer and insurance agency subsidiaries. OFG’s trust division offers various types of individual retirement accounts (“IRAs”) and manages Keogh retirement plans and custodian and corporate trust accounts. At June 30, 2024 and December 31, 2023, the total assets managed by OFG’s trust division amounted to $2.200 billion and $2.512 billion, respectively. OFG’s broker-dealer subsidiary offers a wide array of investment alternatives to its client base, such as tax-advantaged fixed income securities, mutual funds, stocks, bonds and money management wrap-fee programs. At June 30, 2024, total assets managed by the securities broker-dealer and insurance agency subsidiaries from their customers’ investment accounts amounted to $2.159 billion, compared to $2.446 billion at December 31, 2023. The decrease in trust and broker-dealer related assets reflects the termination of services by a retirement plan customer during the second quarter of 2024.

Goodwill

OFG’s goodwill is not amortized to expense but is tested at least annually for impairment. A quantitative annual impairment test is not required if, based on a qualitative analysis, OFG determines that the existence of events and circumstances indicate that it is more likely than not that goodwill is not impaired. OFG completes its annual goodwill impairment test as of October 31 of each year. OFG tests for impairment by first allocating its goodwill and other assets and liabilities, as necessary, to defined reporting units. A fair value is then determined for each reporting unit. If the fair values of the reporting units exceed their book values, no write-down of the recorded goodwill is necessary. If the fair values are less than the book values, an additional valuation procedure is necessary to assess the proper carrying value of the goodwill.

As of both June 30, 2024 and December 31, 2023, OFG had $84.2 million of goodwill allocated as follows: $84.1 million to the banking segment and $100 thousand to the wealth management segment. Please refer to “Note 8 – Goodwill and Other Intangible Assets” to our consolidated financial statements for more information on the annual goodwill impairment test.

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TABLE 5 - ASSETS SUMMARY AND COMPOSITION

	June 30,			December 31,			Variance %
	2024			2023
	(In thousands)
Investments:
FNMA and FHLMC certificates	$	1,794,782		$	1,730,655		3.7	%
US Treasury securities	200,658			496,113			-59.6	%
GNMA certificates	396,505			376,294			5.4	%
Equity securities	41,074			38,469			6.8	%
CMOs issued by US government-sponsored agencies	7,401			9,610			-23.0	%
Other debt securities	35,581			35,616			-0.1	%
Trading securities	16			13			23.1	%
Total investments	2,476,017			2,686,770			-7.8	%
Loans, net	7,503,142			7,401,618			1.4	%
Total investments and loans	9,979,159			10,088,388			-1.1	%
Other assets:
Cash and due from banks	735,346			743,550			-1.1	%
Money market investments	5,083			4,623			10.0	%
Foreclosed real estate	6,526			10,780			-39.5	%
Accrued interest receivable	72,969			71,400			2.2	%
Deferred tax asset, net	4,094			4,923			-16.8	%
Premises and equipment, net	104,384			104,102			0.3	%
Servicing assets	49,789			49,520			0.5	%
Goodwill	84,241			84,241			0.0	%
Other intangible assets	17,738			20,694			-14.3	%
Operating lease right-of-use assets	20,298			21,725			-6.6	%
Other assets and customers' liability on acceptances	179,458			140,507			27.7	%
Total other assets	1,279,926			1,256,065			1.9	%
Total assets	$	11,259,085		$	11,344,453		-0.8	%
Investment portfolio composition:
FNMA and FHLMC certificates	72.5		%	64.4		%
US Treasury securities	8.1		%	18.5		%
GNMA certificates	16.0		%	14.0		%
Equity securities	1.7		%	1.4		%
CMOs issued by US government-sponsored agencies	0.3		%	0.4		%
Other debt securities and trading securities	1.4		%	1.3		%
	100.0		%	100.0		%

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TABLE 6 - LOAN PORTFOLIO COMPOSITION

	June 30, 2024		December 31, 2023		Variance %
	(In thousands)
Loans held for investment:
Commercial loans	$	3,082,363	$	3,076,903	0.2	%
Mortgage loans	1,485,127		1,562,609		(5.0)	%
Consumer loans	644,177		620,446		3.8	%
Auto loans	2,428,040		2,274,421		6.8	%
	7,639,707		7,534,379		1.4	%
Allowance for credit losses	(157,301)		(161,106)		(2.4)	%
Total loans held for investment, net	7,482,406		7,373,273		1.5	%
Mortgage loans held for sale	8,375		—		100.0	%
Other loans held for sale	12,361		28,345		(56.4)	%
Total loans held for sale	20,736		28,345		(26.8)	%
Total loans, net	$	7,503,142	$	7,401,618	1.4	%

OFG’s loan portfolio is composed of commercial, mortgage, consumer, and auto loans. As shown in Table 6 above, total loans, net, amounted to $7.503 billion at June 30, 2024, a 1.4% increase when compared to $7.402 billion at December 31, 2023. The composition and trends of OFG’s loans held-for-investment portfolio were as follows:

•Commercial loan portfolio amounted to $3.082 billion (40.3% of the gross loan portfolio) compared to $3.077 billion (40.8% of the gross loan portfolio) at December 31, 2023, a 0.2% increase as a result of lines of credit usage and originations during 2024. Commercial loans secured by non-owner occupied commercial real estate amounted to $802.7 million and $744.6 million at June 30, 2024 and December 31, 2023, respectively, which represented 10.5% and 9.9% of our total loan portfolio held for investment. US commercial loans amounted to $662.0 million and $755.2 million at June 30, 2024 and December 31, 2023, respectively, which represented 8.7% and 10.0% of our total loan portfolio held for investment. Commercial loan production decreased by 32% or $103.0 million, to $219.5 million in the second quarter of 2024 from $322.6 million in the prior year quarter, and decreased 22% or $121.9 million, to $423.0 million in the six-month period ended June 30, 2024 from $544.9 million for the same period of 2023, mainly in the US commercial loan portfolio. US commercial loans activities include the purchase of middle market senior secured cash flow loan participations and the purchase of participations of loans to small and medium sized businesses. Excluding US commercial loans activities, PR commercial loan production decreased 8.8% to $192.1 million in the second quarter of 2024 from $210.7 million in the prior year quarter, and increased 22.5% to $378.5 million in the six month period ended June 30, 2024 from $309.0 million for the same period in of 2023.

•Mortgage loan portfolio amounted to $1.485 billion (19.4% of the gross loan portfolio) compared to $1.563 billion (20.7% of the gross originated loan portfolio) at December 31, 2023, a 5.0% decrease resulting from regular paydowns of residential mortgages and securitization of conforming loans into mortgage-backed securities. Mortgage loans included delinquent loans in the GNMA buy-back option program amounting to $19.0 million and $19.4 million at June 30, 2024 and December 31, 2023, respectively. Under the GNMA program, issuers such as OFG have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on our financial statements with an offsetting liability. Mortgage loan production totaled $38.5 million and $70.7 million in the quarter and six-month period ended June 30, 2024, respectively, which represents an increase of 7% and an increase of 6.6%, respectively, from $35.9 million and $66.3 million for the same periods in 2023.

OFG follows a conservative residential mortgage lending policy with more than 90% of its residential mortgage portfolio consisting of fixed-rate, fully amortizing, fully documented loans that do not have the level of risk associated with subprime loans offered by certain major US mortgage loan originators. Furthermore, OFG has never been active in negative amortization loans or offered adjustable-rate mortgage loans with teaser rates.

•Consumer loan portfolio amounted to $644.2 million (8.4% of the gross loan portfolio) compared to $620.4 million (8.2% of the gross loan portfolio) at December 31, 2023. Consumer loan production decreased by 8% to $80.3 million in the second quarter of 2024 from $87.1 million in the prior year quarter, and decreased by 14%, or $24.4 million to $148.9 million in the six-month period ended June 30, 2024 from $173.3 million in the same period in 2023.

84

•Auto loans portfolio amounted to $2.428 billion (31.9% of the gross loan portfolio) compared to $2.274 billion (30.3% of the gross originated loan portfolio) at December 31, 2023. Auto loans production increased by 6% to $250.6 million in the second quarter of 2024 compared to $236.3 million in the prior year quarter, and increased by 5%, or $24.3 million to $483.0 million in the six-month period ended June 30, 2024 from $458.6 million in the same period of 2023.

TABLE 7 - PUERTO RICO GOVERNMENT RELATED LOANS

June 30, 2024
			Maturity
	Carrying Value		Less than 1 Year		1 to 3 Years		More than 3 Years
Loans:	(In thousands)
Municipalities	$	75,762	$	—	$	2,021	$	73,741

At June 30, 2024, OFG has $75.8 million of direct credit exposure to the Puerto Rico government, a $7.2 million increase from $68.6 million at December 31, 2023.

Allowance for Credit Losses

OFG measures its ACL based on management’s best estimate of expected credit losses inherent in OFG’s relevant financial assets. Tables 8 through 11 set forth an analysis of activity in the ACL and present selected credit loss statistics for the quarters and six-month periods ended June 30, 2024 and 2023 and as of June 30, 2024 and December 31, 2023. In addition, Table 6 sets forth the composition of the loan portfolio.

Please refer to the “Provision for Credit Losses” and “Critical Accounting Policies and Estimates” sections in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of this quarterly report on Form 10-Q and “Note 5 – Allowance for Credit Losses” of the accompanying consolidated financial statements for a more detailed analysis of provisions and ACL.

Non-performing Assets

OFG’s non-performing assets include non-performing loans, foreclosed real estate, and other repossessed assets (see Tables 12 and 14). At June 30, 2024, OFG had $72.2 million of non-accrual loans held for investment, including $5.0 million PCD loans, compared to $79.4 million at December 31, 2023, reflecting decreases of $1.5 million, $2.4 million and $3.3 million in mortgage, auto, and commercial loan portfolios, respectively. As of December 31, 2023, total past due loans exclude $6.4 million of past due commercial loans held-for-sale, these loans were sold during the quarter ended June 30, 2024. There were no past due commercial loans held-for-sale as of June 30, 2024.

On January 1, 2023, OFG adopted ASU 2022-02 related to the elimination of the recognition and measurement of TDRs and the enhancement of disclosures for loan restructurings for borrowers experiencing financial difficulty using the prospective transition method. Loans that were restructured in a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the historical TDR accounting until the relevant loans are paid off, liquidated or subsequently modified.

Delinquent residential mortgage loans insured or guaranteed under applicable Federal Housing Administration (“FHA”) and United States Department of Veterans Affairs (“VA”) programs are classified as non-performing loans when they become 90 days or more past due but are not placed in non-accrual status until they become 12 months or more past due, since they are insured loans. Therefore, those loans are included as non-performing loans but excluded from non-accrual loans. As of June 30, 2024 and December 31, 2023, the outstanding balance of these residential mortgage loans was $4.6 million and $5.8 million, respectively.

At June 30, 2024, OFG’s non-performing assets decreased by 11.0% to $89.1 million (0.79% total assets) from $100.0 million (0.88% of total assets) at December 31, 2023.

Foreclosed real estate decreased from $10.8 million at December 31, 2023 to $6.5 million at June 30, 2024 and other repossessed assets increased from $4.0 million at December 31, 2023 to $5.7 million at June 30, 2024, both recorded at fair value. OFG does not expect non-performing loans to result in significantly higher losses. At June 30, 2024, the allowance coverage ratio to non-performing loans was 204.8% (189.1% at December 31, 2023).

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Upon adoption of the CECL methodology, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, for PCD loans the determination of non-accrual or accrual status is made at the pool level, not the individual loan level. The ACL was determined for each pool and added to the pool’s carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the pool and the new amortized cost basis is the non-credit premium or discount which will be amortized interest income over the remaining life of the pool. On a quarterly basis, management will monitor the composition and behavior of the pools to assess the ability for cash flow estimation and timing. If based on the analysis performed the pool is classified as non-accrual, the accretion/amortization of the non-credit (discount) premium will cease.

The following items comprise non-performing loans held for investment, including Non-PCD and PCDs:

Commercial loans - At June 30, 2024, OFG’s non-performing commercial loans amounted to $39.2 million (51.1% of OFG’s non-performing loans), a 7.7% decrease from $42.5 million at December 31, 2023 (49.9% of OFG’s non-performing loans). Non-PCD commercial loans are placed on non-accrual status when they become 90 days or more past due and are written down, if necessary, based on the specific evaluation of the underlying collateral, if any.

Mortgage loans - At June 30, 2024, OFG’s non-performing mortgage loans totaled $17.6 million (22.9% of OFG’s non-performing loans), a 13.3% decrease from $20.3 million (23.8% of OFG’s non-performing loans) at December 31, 2023. Non-PCD mortgage loans are placed on non-accrual status when they become 90 days or more past due and are written-down, if necessary, based on the specific evaluation of the collateral underlying the loan, except for FHA and VA insured mortgage loans which are placed in non-accrual when they become 12 months or more past due.

Consumer loans - At June 30, 2024, OFG’s non-performing consumer loans amounted to $3.3 million (4.3% of OFG’s non-performing loans), a 1.4% decrease from $3.4 million at December 31, 2023 (4.0% of OFG’s non-performing loans). Non-PCD consumer loans are placed on non-accrual status when they become 90 days past due and written-off when payments are delinquent 120 days in personal loans and 180 days in credit cards and personal lines of credit.

Auto loans - At June 30, 2024, OFG’s non-performing auto loans amounted to $16.7 million (21.7% of OFG’s total non-performing loans), a decrease of 12.4% from $19.1 million at December 31, 2023 (22.3% of OFG’s total non-performing loans). Non-PCD auto loans are placed on non-accrual status when they become 90 days past due, partially written-off to collateral value when payments are delinquent 120 days, and fully written-off when payments are delinquent 180 days.

OFG has two mortgage loan modification programs. These are the Loss Mitigation Program and the Non-Conforming Mortgage Loan Program. Both programs are intended to help responsible homeowners to remain in their homes and avoid foreclosure, while also reducing OFG’s losses on non-performing mortgage loans.

The Loss Mitigation Program helps mortgage borrowers who are or will become financially unable to meet the current or scheduled mortgage payments. Loans that qualify under this program are those guaranteed by FHA, VA, USDA Rural Development (RURAL), Puerto Rico Housing Finance Authority (PRHFA), conventional loans guaranteed by Mortgage Guaranty Insurance Corporation (MGIC), conventional loans sold to FNMA and FHLMC, and conventional loans retained by OFG. The program offers diversified alternatives such as regular or reduced payment plans, payment moratorium, mortgage loan modification, partial claims (only FHA), short sale, and deed in lieu of foreclosure.

The Non-Conforming Mortgage Loan Program is for non-conforming mortgages, including balloon payment, interest-only/interest first, variable interest rate, adjustable interest rate and other qualified loans. Non-conforming mortgage loan portfolios are segregated into the following categories: performing loans that meet secondary market requirement and are refinanced under the credit underwriting guidelines of FHA/VA/FNMA/ FHLMC and performing loans not meeting secondary market guidelines processed pursuant OFG’s current credit and underwriting guidelines. OFG achieved an affordable and sustainable monthly payment by taking specific, sequential, and necessary steps such as reducing the interest rate, extending the loan term, capitalizing arrearages, deferring the payment of principal or, if the borrower qualifies, refinancing the loan.

In order to apply for any of our loan modification programs, if the borrower is active in Chapter 13 bankruptcy, it must request an authorization from the bankruptcy trustee to allow the loan modification. Borrowers with discharged Chapter 7 bankruptcies may also apply. Loans in these programs are evaluated by designated credit underwriters for financial difficulty modification if OFG grants a concession for legal or economic reasons due to the debtor’s financial difficulties.

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TABLE 8 - ALLOWANCE FOR CREDIT LOSSES BREAKDOWN

	June 30,			December 31,			Variance %
	2024			2023
	(In thousands)
ACL:
Non-PCD
Commercial loans	$	33,809		$	44,041		-23.2	%
Mortgage loans	6,886			7,998			-13.9	%
Consumer loans	29,432			27,086			8.7	%
Auto loans	80,722			73,485			9.8	%
Total ACL	$	150,849		$	152,610		-1.2	%
PCD
Commercial loans	$	789		$	1,113		-29.1	%
Mortgage loans	5,642			7,351			-23.2	%
Consumer loans	8			7			14.3	%
Auto loans	13			25			-48.0	%
Total ACL	$	6,452		$	8,496		-24.1	%
ACL summary
Commercial loans	$	34,598		$	45,154		-23.4	%
Mortgage loans	12,528			15,349			-18.4	%
Consumer loans	29,440			27,093			8.7	%
Auto loans	80,735			73,510			9.8	%
Total ACL	$	157,301		$	161,106		-2.4	%
ACL composition:
Commercial loans	22.0		%	28.0		%
Mortgage loans	8.0		%	9.5		%
Consumer loans	18.7		%	16.8		%
Auto loans	51.3		%	45.7		%
	100.0		%	100.0		%
ACL coverage ratio at end of period:
Commercial loans	1.12		%	1.47		%	(23.8)	%
Mortgage loans	0.84		%	0.98		%	(14.3)	%
Consumer loans	4.57		%	4.37		%	4.6	%
Auto loans	3.33		%	3.23		%	3.1	%
	2.06		%	2.14		%	(3.7)	%
ACL coverage ratio to non-performing loans:
Commercial loans	88.2		%	106.2		%	(16.9)	%
Mortgage loans	71.3		%	75.8		%	(5.9)	%
Consumer loans	884.3		%	802.5		%	10.2	%
Auto loans	483.8		%	385.8		%	25.4	%
	204.8		%	189.1		%	8.3	%

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TABLE 9 - ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES

	June 30,				December 31,
	2024				2023
	Amount of ACL		Percent of loans in each category of total loans [1]		Amount of ACL		Percent of loans in each category of total loans [1]
	(In thousands)				(In thousands)
Commercial loans	$	34,598	40.3%		$	45,154	40.8%
Mortgage loans	12,528		19.4%		15,349		20.7%
Consumer loans	29,440		8.4%		27,093		8.2%
Auto loans	80,735		31.9%		73,510		30.3%
Total	$	157,301	100.0	%	$	161,106	100.0	%
[1] Total loans in this table refers to total loans held for investment.

TABLE 10 - ALLOWANCE FOR CREDIT LOSSES SUMMARY

	Quarter Ended June 30,						Six-Month Period Ended June 30,
	2024		2023		Variance %		2024		2023		Variance %
	(In thousands)						(In thousands)
Balance at beginning of period	$	156,563	$	151,884	3.1	%	$	161,106	$	152,673	5.5	%
Provision for credit losses	15,751		14,644		7.6	%	31,020		23,975		29.4	%
Charge-offs	(22,774)		(18,533)		22.9	%	(50,445)		(37,507)		34.5	%
Recoveries	7,761		11,928		-34.9	%	15,620		20,782		-24.8	%
Balance at end of period	$	157,301	$	159,923	-1.6	%	$	157,301	$	159,923	-1.6	%

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TABLE 11 — NET CREDIT LOSSES STATISTICS ON LOANS

	Quarter Ended June 30,						Six-Month Period Ended June 30,
	2024		2023		Variance %		2024		2023		Variance %
	(Dollars in thousands)						(Dollars in thousands)
Non-PCD:
Mortgage loans
Charge-offs	$	(1)	$	(191)	(99.5)	%	$	(65)	$	(392)	(83.4)	%
Recoveries	540		334		61.7	%	807		550		46.7	%
Total	539		143		276.9	%	742		158		369.6	%
Commercial PR
Charge-offs	$	(160)	(523)		(69.4)	%	(3,727)		(1,898)		96.4	%
Recoveries	111		237		(53.2)	%	163		563		(71.0)	%
Total Commercial PR	(49)		(286)		(82.9)	%	(3,564)		(1,335)		167.0	%
Commercial US
Charge-offs	$	(1,574)	(2,973)		(47.1)	%	$	(3,323)	(2,973)		11.8	%
Recoveries	45		—		100.0	%	45		—		100.0	%
Total Commercial US	(1,529)		(2,973)		(48.6)	%	(3,278)		(2,973)		10.3	%
Consumer loans
Charge-offs	(8,180)		(5,518)		48.2	%	(16,161)		(10,958)		47.5	%
Recoveries	851		2,003		(57.5)	%	1,544		2,869		(46.2)	%
Total	(7,329)		(3,515)		108.5	%	(14,617)		(8,089)		80.7	%
Auto loans
Charge-offs	(12,559)		(9,169)		37.0	%	(26,777)		(18,648)		43.6	%
Recoveries	5,926		8,332		(28.9)	%	11,897		14,931		(20.3)	%
Total	(6,633)		(837)		692.5	%	(14,880)		(3,717)		300.3	%
PCD:
Mortgage loans
Charge-offs	$	(29)	$	(1)	2800.0	%	$	(112)	$	(76)	47.4	%
Recoveries	93		260		(64.2)	%	731		507		44.2	%
Total	64		259		(75.3)	%	619		431		43.6	%
Commercial PR
Charge-offs	(265)		—		100.0	%	(265)		(2,104)		(87.4)	%
Recoveries	158		319		(50.5)	%	315		808		(61.0)	%
Total Commercial PR loans	(107)		319		(133.5)	%	50		(1,296)		(103.9)	%
Consumer loans
Charge-offs	—		(124)		(100.0)	%	—		(337)		(100.0)	%
Recoveries	7		42		(83.3)	%	30		53		(43.4)	%
Total	7		(82)		(108.5)	%	30		(284)		(110.6)	%
Auto loans
Charge-offs	(6)		(34)		(82.4)	%	(15)		(121)		(87.6)	%
Recoveries	30		401		(92.5)	%	88		501		(82.4)	%
Total	24		367		(93.5)	%	73		380		(80.8)	%
Total charge-offs	(22,774)		(18,533)		22.9	%	(50,445)		(37,507)		34.5	%
Total recoveries	7,761		11,928		(34.9)	%	15,620		20,782		(62.7)	%
Net credit losses	$	(15,013)	$	(6,605)	127.3	%	$	(34,825)	$	(16,725)	155.2	%

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TABLE 11 — NET CREDIT LOSSES STATISTICS ON LOANS (CONTINUED)

	Quarter Ended June 30,								Six-Month Period Ended June 30,
	2024			2023			Variance %		2024			2023			Variance %
	(Dollars in thousands)								(Dollars in thousands)
Net credit losses (recoveries) to average loans outstanding:
Mortgage loans	(0.16)		%	(0.10)		%	60.0	%	(0.18)		%	(0.07)		%	157.1	%
Commercial PR	0.03		%	(0.01)		%	-400.0	%	0.30		%	0.26		%	15.4	%
Commercial US	0.85		%	1.81		%	(53.0)	%	0.89		%	0.91		%	(2.2)	%
Consumer loans	4.42		%	2.37		%	86.5	%	4.43		%	2.82		%	57.1	%
Auto loans	1.11		%	0.09		%	1,133.3	%	1.26		%	0.33		%	281.8	%
Total	0.79		%	0.38		%	107.9	%	1.13		%	0.48		%	135.4	%
Recoveries to charge-offs	34.08		%	64.36		%	-47.0	%	15.39		%	55.41		%	-72.2	%
Average Loans Held for Investment
Mortgage loans	$	1,479,583		$	1,616,873		(8.5)	%	$	1,495,432		$	1,635,046		(8.5)	%
Commercial PR	2,363,831			2,040,547			15.8	%	2,338,196			2,012,927			16.2	%
Commercial US	716,089			657,439			8.9	%	736,249			650,065			13.3	%
Consumer loans	663,315			606,842			9.3	%	658,080			593,230			10.9	%
Auto loans	2,389,589			2,081,270			14.8	%	2,349,125			2,043,887			14.9	%
Total	$	7,612,407		$	7,002,971		8.7	%	$	7,577,082		$	6,935,155		9.3	%

Net charge-offs for the second quarter of 2024 amounted to $15.0 million increasing by $8.4 million, when compared to $6.6 million in prior year quarter. Net charge-offs for the six-month period ended June 30, 2024 amounted to $34.8 million, increasing by $18.1 million, when compared to $16.7 million in the prior year period.

Net charge-offs variances were as follows:

•Residential mortgage loans net recoveries amounted to $603 thousand in the second quarter of 2024, increasing by $201 thousand when compared to $402 thousand in the second quarter of 2023. Residential mortgage loans net recoveries for the six-month period ended June 30, 2024 amounted to $1.4 million, increasing by $772 thousand when compared to net recoveries of $589 thousand for prior year period.

•Commercial loans net charge-offs amounted to $1.7 million in the second quarter of 2024, decreasing by $1.3 million, when compared to $2.9 million in the second quarter of 2023. Net charge-offs for the six-month period ended June 30, 2024 amounted $6.8 million, increasing by $1.2 million, when compared to $5.6 million in the prior year period. The charge-offs for the six-month period ended June 30, 2024, include $3.5 million from retail commercial loans, mainly from previously and fully-reserved nonperforming paycheck protection program (“PPP”) loans.

•Consumer loans net charge-offs amounted to $7.3 million in the second quarter of 2024, increasing by $3.7 million, when compared to net charge-offs of $3.6 million in the second quarter of 2023. Net charge-offs for the six-month period ended June 30, 2024 amounted $14.6 million increasing by $6.2 million when compared to $8.4 million in the prior year period. The increase in net charge-offs during the six-month period ended June 30, 2024 was driven by an increase in business volume.

•Auto loans net charge-offs amounted to $6.6 million in the second quarter of 2024, increasing by $6.1 million, when compared to $0.5 million in the second quarter of 2023. Net charge-offs for the six-month period ended June 30, 2024 amounted to $14.8 million, increasing by $11.5 million, when compared to $3.3 million in the prior year period, reflecting post-pandemic credit normalization.

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TABLE 12 — NON-PERFORMING ASSETS

	June 30,			December 31,			Variance %
	2024			2023
	(Dollars in thousands)
Non-performing assets:
Non-PCD
Non-accruing loans	67,203			72,725			(7.6)%
Accruing loans	4,617			5,810			(20.5)%
Total	$	71,820		$	78,535		(8.6)%
PCD	4,992			6,674			(25.2)%
Total non-performing loans	$	76,812		$	85,209		(9.9)%
Foreclosed real estate	6,526			10,780			(39.5)%
Other repossessed assets	5,713			4,032			41.7%
	$	89,051		$	100,021		(11.0)%
Non-performing assets to total assets	0.79		%	0.88		%	(10.3)	%
Non-performing assets to total capital	7.25		%	8.38		%	(13.4)	%

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TABLE 13 — NON-ACCRUAL LOANS

	June 30,			December 31,			Variance %
	2024			2023
	(Dollars in thousands)
Non-accrual loans
Non-PCD
Commercial loans	$	34,477		$	36,096		(4.5)%
Mortgage loans	12,708			14,197			(10.5)%
Consumer loans	3,329			3,376			(1.4)%
Auto loans	16,689			19,056			(12.4)%
Total	$	67,203		$	72,725		(7.6)%
PCD
Commercial loans	$	4,748		$	6,424		(26.1)%
Mortgage loans	244			250			(2.4)%
Total	$	4,992		$	6,674		(25.2)%
Total non-accrual loans	$	72,195		$	79,399		(9.1)%
Non-accruals loans composition percentages:
Commercial loans	54.3		%	53.6		%
Mortgage loans	17.9		%	18.2		%
Consumer loans	4.6		%	4.3		%
Auto loans	23.2		%	23.9		%
	100.0		%	100.0		%
Non-accrual loans ratios:
Non-accrual loans to total loans	0.94		%	1.05		%	(10.5)%
Allowance for credit losses to non-accrual loans	217.88		%	202.91		%	7.4%

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Interest that would have been recorded in the period if the loans had not been classified as non-accruing loans	$	397	$	424	$	603	$	677

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TABLE 14 - NON-PERFORMING LOANS

	June 30,			December 31,			Variance %
	2024			2023
	(Dollars in thousands)
Non-performing loans
Non-PCD
Commercial loans	$	34,477		$	36,096		(4.5)%
Mortgage loans	17,325			20,007			(13.4)%
Consumer loans	3,329			3,376			(1.4)%
Auto loans	16,689			19,056			(12.4)%
Total	$	71,820		$	78,535		(8.6)%
PCD
Commercial loans	$	4,748		$	6,424		(26.1)%
Mortgage loans	244			250			(2.4)%
Total	$	4,992		$	6,674		(25.2)%
Total non-performing loans	$	76,812		$	85,209		(9.9)%
Non-performing loans composition percentages:
Commercial loans	51.1		%	49.9		%
Mortgage loans	22.9		%	23.8		%
Consumer loans	4.3		%	4.0		%
Auto loans	21.7		%	22.3		%
	100.0		%	100.0		%
Non-performing loans to:
Total loans held for investment gross	1.01		%	1.13		%	(10.6)%
Total assets	0.68		%	0.75		%	(9.3)%
Total capital	6.26		%	7.14		%	(12.3)%
Non-performing loans with partial charge-offs to:
Total loans held for investment gross	0.25		%	0.29		%	(13.8)%
Non-performing loans	24.42		%	25.63		%	(4.7)%
Other non-performing loans ratios:
Charge-off rate on non-performing loans to non-performing loans on which charge-offs have been taken	88.52		%	75.14		%	17.8%
Allowance for credit losses to non-performing loans on which no charge-offs have been taken	270.94		%	254.24		%	6.6%

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TABLE 15 - LIABILITIES SUMMARY AND COMPOSITION

	June 30,			December 31,			Variance %
	2024			2023
	(Dollars in thousands)
Deposits:
Non-interest-bearing deposits	$	2,608,902		$	2,537,431		2.8	%
NOW accounts	3,408,364			3,512,887			-3.0	%
Savings accounts	2,002,322			2,088,091			-4.1	%
Time deposits	1,583,789			1,620,688			-2.3	%
Total deposits	9,603,377			9,759,097			-1.6	%
Accrued interest payable	1,873			3,072			-39.0	%
Total deposits and accrued interest payable	9,605,250			9,762,169			-1.6	%
Borrowings:
Advances from FHLB	200,741			200,768			—	%
Other borrowings	—			2			-100.0	%
Total borrowings	200,741			200,770			—	%
Total deposits and borrowings	9,805,991			9,962,939			-1.6	%
Other Liabilities:
Acceptances executed and outstanding	28,504			25,576			11.4	%
Lease liability	22,605			24,029			-5.9	%
Deferred tax liability, net	33,873			22,444			50.9	%
Accrued expenses and other liabilities	140,410			115,985			21.1	%
Total liabilities	$	10,031,383		$	10,150,973		-1.2	%
Deposits portfolio composition percentages:
Non-interest-bearing deposits	27.2%			26.0%
NOW accounts	35.5%			36.0%
Savings accounts	20.9%			21.4%
Time deposits	16.4%			16.6%
	100.0		%	100.0		%
Borrowings portfolio composition percentages:
Advances from FHLB	100.0		%	100.0		%

Liabilities and Funding Sources

As shown in Table 15 above, at June 30, 2024, OFG’s total liabilities were $10.031 billion, 1.2% lower than the $10.151 billion reported at December 31, 2023. Deposits and borrowings, OFG’s funding sources, amounted to $9.806 billion at June 30, 2024 compared to $9.963 billion at December 31, 2023. Deposits, excluding accrued interest payable, decreased by $155.7 million reflecting a decrease in brokered deposits of $161.8 million, savings and money market accounts of $85.8 million and demand deposits of $33.1 million, offset by an increase in time deposits of $123.7 million. Excluding public fund deposits, retail deposits decreased $33.3 million and commercial deposits increased $77.2 million.

In December 2023, OFG received a $1.2 billion deposit in an interest-bearing checking account from an existing long-standing Puerto Rico government client who had an inflow of liquidity. At June 30, 2024 and December 31, 2023, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $1.577 billion and $1.616 billion, respectively. These public funds were collateralized with securities and commercial loans amounting to $1.679 billion and $1.645 billion at June 30, 2024 and December 31, 2023, respectively.

As of June 30, 2024, borrowings consist of a two-year FHLB advance amounting to $200.7 million taken in 2023 as part of OFG’s asset liability management strategies.

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Stockholders’ Equity

At June 30, 2024, OFG’s total stockholders’ equity was $1.228 billion, a 2.9% increase when compared to $1.193 billion at December 31, 2023. This increase reflects an increase in retained earnings of $67.5 million and legal surplus of $9.6 million, mainly due to $100.8 million in net income, partially offset by $23.7 million in common stock dividends. These variances were partially offset by $22.6 million from treasury stock as a result of repurchases of common stock in the aggregate amount of $24.3 million in connection with the $50 million stock buy back program announced in January 2024, and an increase in accumulated other comprehensive loss, net of tax, of $19.5 million from unfavorable market value adjustments on available-for-sale investment securities.

Regulatory Capital

OFG and the Bank are subject to regulatory capital requirements established by the FRB and the FDIC. The current risk-based capital standards applicable to OFG and the Bank (“Basel III capital rules”) are based on the final capital framework for strengthening international capital standards, known as Basel III, of the Basel Committee on Banking Supervision. As of June 30, 2024, the capital ratios of OFG and the Bank continue to exceed the minimum requirements for being “well-capitalized” under the Basel III capital rules.

On January 1, 2020, OFG implemented CECL using the modified retrospective approach, with an impact to capital of $25.5 million, net of its corresponding deferred tax effect. On March 27, 2020, in response to the Covid-19 pandemic, U.S. banking regulators issued an interim final rule that OFG adopted to delay for two years the initial adoption impact of CECL on regulatory capital, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during 2020 and 2021 (i.e., a five-year transition period). During the two-year delay, OFG added back to common equity tier 1 (“CET1”) capital 100% of the initial adoption impact of CECL plus 25% of the cumulative quarterly changes in the ACL (i.e., quarterly transitional amounts). After two years, starting on January 1, 2022, the quarterly transitional amounts along with the initial adoption impact of CECL are being phased out of CET1 capital over a three-year period.

The risk-based capital ratios presented in Table 16 include common equity tier 1, tier 1 capital, total capital and leverage capital as of June 30, 2024 and December 31, 2023 and are calculated based on the Basel III capital rules related to the measurement of capital, risk-weighted assets and average assets.

95

The following are OFG’s consolidated capital ratios under the Basel III capital rules at June 30, 2024 and December 31, 2023:

TABLE 16 — CAPITAL, DIVIDENDS AND STOCK DATA

	June 30,			December 31,			Variance
	2024			2023			%
	(Dollars in thousands, except per share data)
Capital data:
Stockholders’ equity	$	1,227,702		$	1,193,480		2.9%
Regulatory Capital Ratios data:
Common equity tier 1 capital ratio	14.29		%	14.12		%	1.2	%
Minimum common equity tier 1 capital ratio required	4.50		%	4.50		%	—	%
Actual common equity tier 1 capital	$	1,223,031		1,174,205			4.2%
Minimum common equity tier 1 capital required	$	385,270		374,301			2.9%
Minimum capital conservation buffer required (2.5%)	$	214,039		207,945			2.9%
Excess over regulatory requirement	$	623,722		591,959			5.4%
Risk-weighted assets	$	8,561,549		8,317,802			2.9%
Tier 1 risk-based capital ratio	14.29		%	14.12		%	1.2	%
Minimum tier 1 risk-based capital ratio required	6.00		%	6.00		%	—	%
Actual tier 1 risk-based capital	$	1,223,031		$	1,174,205		4.2%
Minimum tier 1 risk-based capital required	$	513,693		$	499,068		2.9%
Minimum capital conservation buffer required (2.5%)	$	214,039		207,945			2.9%
Excess over regulatory requirement	$	495,299		$	467,192		6.0%
Risk-weighted assets	$	8,561,549		$	8,317,802		2.9%
Total risk-based capital ratio	15.54		%	15.37		%	1.1	%
Minimum total risk-based capital ratio required	8.00		%	8.00		%	—	%
Actual total risk-based capital	$	1,330,474		$	1,278,537		4.1%
Minimum total risk-based capital required	$	684,924		$	665,424		2.9%
Minimum capital conservation buffer required (2.5%)	$	214,039		207,945			2.9%
Excess over regulatory requirement	$	431,511		$	405,168		6.5%
Risk-weighted assets	$	8,561,549		$	8,317,802		2.9%
Leverage capital ratio	10.86		%	11.03		%	(1.5)	%
Minimum leverage capital ratio required	4.00		%	4.00		%	—	%
Actual tier 1 capital	$	1,223,031		$	1,174,205		4.2%
Minimum tier 1 capital required	$	450,325		$	425,911		5.7%
Excess over regulatory requirement	$	772,706		$	748,294		3.3%
Tangible common equity to total assets	10.00		%	9.60		%	4.2	%
Tangible common equity to risk-weighted assets	13.15		%	13.09		%	0.5	%
Total equity to total assets	10.90		%	10.52		%	3.6	%
Total equity to risk-weighted assets	14.34		%	14.35		%	(0.1)	%
Stock data:
Outstanding common shares	46,561,532			47,065,156			(1.1)%
Book value per common share	$	26.37		$	25.36		4.0%
Tangible book value per common share	$	24.18		$	23.13		4.5%
Market price at end of period	$	37.45		$	37.48		(0.1)%
Market capitalization at end of period	$	1,743,729		$	1,764,002		(1.1)%

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From December 31, 2023 to June 30, 2024, leverage capital ratio decreased from 11.03% to 10.86% as average assets increased, tier 1 risk-based capital ratio and common equity tier 1 capital ratio increased from 14.12% to 14.29%, total risk-based capital ratio increased from 15.37% to 15.54%, and tangible common equity to tangible total assets increased from 9.68% to 10.09%. The increases in capital ratios reflected an increase in retained earnings from net income, net of dividends, CECL transition and stock repurchases, partially offset by an increase in risk-weighted assets of $243.7 million. Risk-weighted assets increased mainly due to an increase in unused commitments, loans, and other assets.

The following table presents a reconciliation of OFG’s total stockholders’ equity to tangible common equity and total assets to tangible assets at June 30, 2024 and December 31, 2023:

	June 30,			December 31,
	2024			2023
	(In thousands, except share or per share information)
Total stockholders’ equity	$	1,227,702		$	1,193,480
Goodwill	(84,241)			(84,241)
Other intangible assets	(17,738)			(20,694)
Total tangible common equity (non-GAAP)	$	1,125,723		$	1,088,545
Total assets	$	11,259,085		11,344,453
Goodwill	(84,241)			(84,241)
Core deposit intangible	(13,584)			(15,848)
Customer relationship intangible	(4,154)			(4,846)
Total tangible assets	$	11,157,106		$	11,239,518
Tangible common equity to tangible assets	10.09		%	9.68		%
Common shares outstanding at end of period	46,561,532			47,065,156
Tangible book value per common share	$	24.18		$	23.13

The tangible common equity to tangible assets ratio and tangible book value per common share are non-GAAP measures and, unlike tier 1 capital and common equity tier 1 capital, are not codified in the federal banking regulations. Management and many stock analysts use the tangible common equity to tangible assets ratio and tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations. Neither tangible common equity nor tangible assets or related measures should be considered in isolation or as a substitute for stockholders’ equity, total assets or any other measure calculated in accordance with GAAP. Moreover, the manner in which OFG calculates its tangible common equity, tangible assets and any other related measures may differ from that of other companies reporting measures with similar names.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. To mitigate these limitations, OFG has procedures in place to calculate these measures using the appropriate GAAP or regulatory components. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

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The following table presents OFG’s capital adequacy information under the Basel III capital rules:

	June 30,			December 31,			Variance
	2024			2023			%
	(Dollars in thousands)
Risk-based capital:
Common equity tier 1 capital	$	1,223,031		$	1,174,205		4.2%
Tier 1 capital	1,223,031			1,174,205			4.2%
Additional Tier 2 capital	107,443			104,332			3.0%
Total risk-based capital	$	1,330,474		$	1,278,537		4.1%
Risk-weighted assets:
Balance sheet items	$	7,940,347		$	7,768,828		2.2%
Off-balance sheet items	621,202			548,974			13.2%
Total risk-weighted assets	$	8,561,549		$	8,317,802		2.9%
Ratios:
Common equity tier 1 capital (minimum required, including capital conservation buffer - 7%)	14.29		%	14.12		%	1.2%
Tier 1 capital (minimum required, including capital conservation buffer - 8.5%)	14.29		%	14.12		%	1.2%
Total capital (minimum required, including capital conservation buffer - 10.5%)	15.54		%	15.37		%	1.1%
Leverage ratio (minimum required - 4%)	10.86		%	11.03		%	(1.5)%

The Bank is considered “well capitalized” under the regulatory framework for prompt corrective action. The table below shows the Bank’s regulatory capital ratios at June 30, 2024 and December 31, 2023:

	June 30,		December 31,		Variance
	2024		2023		%
	(Dollars in thousands)
Oriental Bank Regulatory Capital Ratios:
Common Equity Tier 1 Capital to Risk-Weighted Assets	13.39%		13.01%		2.9%
Actual common equity tier 1 capital	$	1,138,874	$	1,075,487	5.9%
Minimum capital requirement (4.5%)	$	382,754	$	371,913	2.9%
Minimum capital conservation buffer requirement (2.5%)	$	212,641	$	206,618	2.9%
Minimum to be well capitalized (6.5%)	$	552,866	$	537,208	2.9%
Tier 1 Capital to Risk-Weighted Assets	13.39%		13.01%		2.9%
Actual tier 1 risk-based capital	$	1,138,874	$	1,075,487	5.9%
Minimum capital requirement (6%)	$	510,338	$	495,884	2.9%
Minimum capital conservation buffer requirement (2.5%)	$	212,641	$	206,618	2.9%
Minimum to be well capitalized (8%)	$	680,451	$	661,179	2.9%
Total Capital to Risk-Weighted Assets	14.64%		14.27%		2.6%
Actual total risk-based capital	$	1,245,627	$	1,179,164	5.6%
Minimum capital requirement (8%)	$	680,451	$	661,179	2.9%
Minimum capital conservation buffer requirement (2.5%)	$	212,641	$	206,618	2.9%
Minimum to be well capitalized (10%)	$	850,564	$	826,474	2.9%
Total Tier 1 Capital to Average Total Assets	10.22%		10.20%		0.2%
Actual tier 1 capital	$	1,138,874	$	1,075,487	5.9%
Minimum capital requirement (4%)	$	445,681	$	421,660	5.7%
Minimum to be well capitalized (5%)	$	557,101	$	527,075	5.7%

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OFG’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “OFG”. At June 30, 2024 and December 31, 2023, OFG’s market capitalization for its outstanding common stock was $1.744 billion ($37.45 per share) and $1.764 billion ($37.48 per share), respectively.

The following table provides the high and low prices and dividends per share of OFG’s common stock for each quarter of the last three calendar years:

					Cash
	Price				Dividend
	High		Low		Per share
2024
June 30, 2024	$	38.16	$	33.37	$	0.25
March 31, 2024	$	38.51	$	34.78	$	0.25
2023
December 31, 2023	$	38.29	$	28.67	$	0.22
September 30, 2023	$	33.82	$	26.14	$	0.22
June 30, 2023	$	27.80	$	22.80	$	0.22
March 31, 2023	$	30.42	$	24.37	$	0.22
2022
December 31, 2022	$	28.90	$	25.50	$	0.20
September 30, 2022	$	29.45	$	24.66	$	0.20
June 30, 2022	$	29.22	$	25.40	$	0.15
March 31, 2022	$	30.54	$	26.21	$	0.15

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. 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. 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.

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).

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Background

OFG’s risk management policies are established by its Board of Directors (the “Board”) and implemented by management through the adoption of a risk management program, which is overseen and monitored by the Chief Risk Officer, the Board’s Risk and Compliance Committee, the executive Risk and Compliance Team, the executive Credit Risk Team, and the executive Asset/Liability Team (“ALT”). OFG has continued to refine and enhance its risk management program by strengthening policies, processes and procedures necessary to maintain effective risk management.

All aspects of OFG’s business activities are susceptible to risk. Consequently, risk identification and monitoring are essential to risk management. As discussed in greater detail below, OFG’s primary risk exposures include market, interest rate, credit, liquidity, operational and concentration risks.

Market Risk

Market risk is the risk to earnings or capital arising from adverse movements of interest rate or prices. OFG evaluates market risk together with interest rate risk. OFG’s financial results and capital levels are constantly exposed to market risk. The Board and management are primarily responsible for ensuring that the market risk assumed by OFG complies with the guidelines established by policies approved by the Board. The Board has delegated the management of this risk to ALT which is composed of certain executive officers from the risk management, treasury and finance areas. One of ALT’s primary goals is to ensure that the market risk assumed by OFG is within the parameters established in such policies.

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In March 2023, the market reacted with volatility as a result of the collapse of three large US regional banks, which became the biggest bank failures since 2008, after they experienced a run on deposits mainly driven by a significant decrease in the value of their investments. Market reactions to recession concerns and inflationary pressure, combined with aggressive interest rate increases as part of the FRB’s efforts to control inflation during 2022 and 2023, had a significant impact on bond prices, including those guaranteed by the US government or by a US government-sponsored entity. Nevertheless, we believe that OFG has strong capital and liquidity levels that facilitate holding securities until the recovery of their amortized cost basis. We also believe that our market risk management practices have allowed us to effectively manage the market volatility over time and remained strong under these conditions. After the events triggered by such bank failures, our customer deposits base has increased. Total core deposits at June 30, 2024 amounted to $9.605 billion compared to $9.600 billion at December 31, 2023. The FDIC covers up to $250,000 per account owner by ownership category for retail and commercial deposit accounts. This coverage extends to both principal and accrued interest while the account balance remains within the limits. At June 30, 2024 and December 31, 2023, the aggregate amount of our uninsured deposits was $4.979 billion and $4.885 billion, respectively. We have $1.577 billion of deposits from the Puerto Rico government, its instrumentalities and municipalities, which represents 16% of our total deposits as of June 30, 2024, mainly from a $1.2 billion deposit received in December 2023, as we continue to build and strengthen our customer relationships. These public funds are collateralized with securities and commercial loans amounting to $1.679 billion and $1.645 billion at June 30, 2024 and December 31, 2023, respectively. The amount of these deposits may fluctuate depending on the financial condition and liquidity of these entities, as well as on our ability to maintain these customer relationships. We believe that our clients are confident in the resiliency and strong position of the Bank.

Interest Rate Risk

Interest rate risk is the exposure to decline in earnings or capital due to changes in interest rates. To actively monitor the interest rate risk, the Board of Directors created ALT whose principal responsibilities consist in overseeing the management of the Bank’s assets and liabilities to balance its risk exposures. In executing its responsibilities, ALT considers different methods to enhance profitability while maintaining acceptable levels of interest rate risks by implementing investment, pricing and financial strategies that help manage OFG’s vulnerability to changes in interest rates.

On a quarterly basis, OFG performs net interest income simulation analysis on a consolidated basis to estimate the potential change in future earnings from projected changes in interest rates. These simulations are carried out over a five-year time horizon, assuming certain upward and downward interest rate movements, achieved during a twelve-month period. Market scenarios that include instantaneous and parallel interest rate movements as well as other scenarios with gradual interest rate ramps, speed of interest rate changes, and changes in the slope of the yield curve are also modeled. In addition to the change in interest rates, the results of the analysis could be affected by prepayments, caps, and floors. Management exercises its best judgment in formulating assumptions regarding events that management can influence such as non-maturity deposits repricing, as well as events outside management’s control such as customer behavior on loans and deposits activity and the effects that competition has on both lending and deposits pricing. These assumptions are subjective and, as a result, net interest income simulation results will differ from actual results due to the timing, magnitude and frequency of interest rate changes, changes in market conditions, customer behavior and management strategies, among other factors.

OFG uses a software application to project future movements in OFG’s balance sheet and income statement. The starting point of the projections generally corresponds to the actual values of the balance sheet on the date of the simulations. The following table presents the results of the simulations for the most likely scenarios at June 30, 2024. The left of the table presents an analysis of our interest rate risk as measured by the estimated changes in net interest income resulting from an instantaneous and parallel shift in the yield curve over a 12-month horizon. The base case scenario assumes that the current interest rate environment is held constant throughout the forecast period for a static balance sheet and the instantaneous shocks are performed against that yield curve. The right side of the table presents an analysis of our interest rate risk as measured by the estimated changes in net interest income resulting from parallel gradual interest rates ramps over a 12-month horizon.

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	Net Interest Income Risk (one-year projection)
	Instantaneous Changes in Interest Rates				Gradual Changes in Interest Rates
	Amount Change		Percent Change		Amount Change		Percent Change
Change in interest rate	(Dollars in thousands)
+ 50 Basis points	$	7,839	1.30	%	$	2,534	0.42	%
+ 100 Basis points	$	15,602	2.59	%	$	5,173	0.86	%
+ 200 Basis points	$	31,180	5.18	%	$	10,361	1.72	%
- 50 Basis points	$	(8,973)	-1.49	%	$	(3,028)	-0.50	%
'-100 Basis points	$	(17,958)	-2.98	%	$	(5,760)	-0.96	%
'-200 Basis points	$	(35,017)	-5.81	%	$	(12,236)	-2.03	%

The scenarios above are both instantaneous shocks and gradual interest rate ramps that assume balance sheet management will mirror the base case. Even if interest rates change in the designated amounts, there can be no assurance that our assets and liabilities will perform as anticipated. Additionally, a change in the U.S. Treasury rates in the designated amounts accompanied by a change in the shape of the U.S. Treasury yield curve would cause significantly different changes to net interest income than indicated above. OFG strategic management of the balance sheet would be adjusted to accommodate these movements. As with any method of measuring interest rate risk, certain shortcomings are inherent in the methods of analysis presented above. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag changes in market rates. Also, the ability of many borrowers to service their debts may decrease in the event of an interest rate increase. ALT strategies consider all these factors as part of the monitoring of the exposure to interest rate risk.

Future net interest income could be affected by OFG’s investments in callable securities, prepayment risk related to mortgage loans and mortgage-backed securities, and any structured repurchase agreements and advances from the FHLB in which it may enter into from time to time. As part of the strategy to limit the interest rate risk and reduce the re-pricing gaps of OFG’s assets and liabilities, OFG has executed, in the past, certain transactions which included extending the maturity and the re-pricing frequency of the liabilities to longer terms and using hedge-designated swaps to hedge the variability of future interest cash flows of forecasted wholesale borrowings. At June 30, 2024, OFG did not have derivative instruments.

Since 2023, OFG has redeployed its high cash levels and maturing treasury positions into longer-term mortgage-backed securities. These moves position OFG’s balance sheet better for the expected lower interest rate environment in the second half of 2024.

Credit Risk

Credit risk is the possibility of loss arising from a borrower or counterparty in a credit-related contract failing to perform in accordance with its terms. The principal source of credit risk for OFG is its lending activities. In Puerto Rico, OFG’s principal market, we believe that recent macroeconomic conditions continue to show strength. However, as demonstrated by Hurricane Fiona in September 2022, the January 2020 earthquakes and Hurricanes Irma and Maria in 2017, Puerto Rico is susceptible to natural disasters, which can have a disproportionate impact because of the logistical difficulties of bringing relief to an island far from the United States mainland. The effects of climate change may further increase the risk of natural disasters in the future and the correlative risk that the physical impact of such events could adversely affect our customers, operations, and business. Moreover, the Puerto Rico government’s fiscal challenges and Puerto Rico’s unique relationship with the United States also complicate any relief efforts after a natural disaster. These events increase credit risk as debtors may no longer be capable of operating their businesses and the collateral securing OFG’s loans may suffer significant damages.

OFG manages its credit risk through a comprehensive credit policy which we believe establishes sound underwriting standards by monitoring and evaluating loan portfolio quality, and by the constant assessment of reserves and loan concentrations. OFG also employs proactive collection and loss mitigation practices.

OFG may also encounter risk of default in relation to its securities portfolio. The securities held by OFG are mostly agency mortgage-backed securities and US Treasury securities. Thus, these instruments are guaranteed by mortgages, a U.S. government-sponsored entity, or the full faith and credit of the U.S. government.

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OFG’s executive Credit Risk Team, composed of its Chief Risk Officer, Chief Credit Officer and other senior executives, has primary responsibility for setting strategies to achieve OFG’s credit risk goals and objectives. Those goals and objectives are set forth in OFG’s Credit Policy as approved by the Board.

Liquidity Risk

Liquidity risk is the risk of OFG not being able to generate sufficient cash from either assets or liabilities to meet obligations as they become due without incurring substantial losses. The Board has established a policy to manage this risk. OFG’s cash requirements principally consist of deposit withdrawals, contractual loan funding, repayment of borrowings as these mature, and funding of new and existing investments as required.

OFG’s business requires continuous access to various funding sources. Liquidity to support growth in loans held for investment has been fulfilled primarily through growth in customer deposits. OFG’s goal is to obtain as much of its funding for loans held for investment and other earning assets as possible from customer deposits, which are generated principally through development of long-term customer relationships. In December 2023, OFG received a $1.2 billion deposit in an interest-bearing checking account from an existing long-standing Puerto Rico government client who had an isolated inflow of liquidity resulting in a total of $1.577 billion and $1.616 billion deposits from the Puerto Rico government and its instrumentalities as of June 30, 2024 and December 31, 2023, respectively. OFG is not relying on this deposit as part its long-term funding management strategies, even though these funds could remain in the Bank for a longer period. Deposit volumes as well as the customer deposit base, excluding the Puerto Rico government deposit mentioned above, have remained stable. While OFG is able to fund its operations through deposits as well as through advances from the FHLB and other alternative sources, OFG’s business may at times need to rely upon other external wholesale funding sources. OFG has selectively reduced its use of certain wholesale funding sources, such as repurchase agreements, brokered deposits, and subordinated notes, but depending on its assets and liabilities management strategies, it could use them in the future.

In the ordinary course of OFG’s operations, it has entered into certain contractual obligations and has made other commitments to make future payments. OFG believes that it will be able to meet its contractual obligations as they come due through the maintenance of adequate cash levels. Commitments to extend credit are agreements to lend to customers as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates, bear variable interest rate and may require payment of a fee. Since the commitments may expire unexercised, the total commitment amounts do not necessarily represent future cash requirements. OFG evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by OFG upon extension of credit, is based on management’s credit evaluation of the customer. Loan commitments, which represent unused lines of credit, increased to $1.424 billion at June 30, 2024 ($151.1 million with maturity of one year or less and $1.273 billion with maturity over one year) compared to $1.256 billion at December 31, 2023 ($111.4 million with maturity of one year or less and $1.144 billion with maturity over one year) as a result of seasonal paydowns of commercial lines of credit, and standby letters of credit provided to customers amounted to $25.0 million and $24.0 million at June 30, 2024 and December 31, 2023, respectively. Loans sold with recourse at June 30, 2024 and December 31, 2023 amounted to $94.5 million and $98.7 million, respectively.

In the case of loans serviced by OFG for FNMA, OFG is required to advance to the owners the payment of principal and interest on a scheduled basis for six months even when such payment was not collected from the borrower due to payment forbearance granted or payment delinquency. Such amounts advanced are recorded as a receivable by OFG and are expected to be collected from the borrower and/or government agency (FNMA). At June 30, 2024, the outstanding balance of funds advanced by OFG under such mortgage loan servicing agreements was approximately $3.7 million (December 31, 2023 - $4.2 million). To the extent the mortgage loans underlying OFG’s servicing portfolio experience increased delinquencies, OFG would be required to dedicate additional cash resources to comply with its obligation to advance funds.

At both June 30, 2024 and December 31, 2023, OFG maintained other non-credit commitments amounting to $18.9 million, primarily for the acquisition of other investments. These cash requirements are expected to be satisfied with OFG’s unrestricted cash. In addition, as we continue to transform OFG with a focus on simplification and building a culture of excellence and customer service, we continue to invest in technology. Some of our technology investments are integrated at our long-term financial plan and required to continuously upgrade our systems. Others require us to focus our technology on investments that drive our strategy, namely digital, data analytics, cloud migration, cyber security, and our sales and service capabilities. At June 30, 2024 and December 31, 2023, OFG had commitments for capital expenditures in technology amounting to $7.2 million and $7.8 million, respectively, which are expected to be satisfied with OFG’s unrestricted cash.

OFG expects to maintain adequate cash levels through profitability, loan and securities repayment and maturity activity and continued deposit gathering activities. Our liquidity risk management practices have allowed us to effectively manage the market volatility in the past, as with the Covid-19 pandemic and the disruption in the banking industry caused by certain high-profile bank failures in 2023. Liquidity has grown from the federal stimulus programs Puerto Rico has received following Hurricane Maria in 2017, the January 2020 earthquakes, the Covid-19 pandemic, and Hurricane Fiona in 2022. However,

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liquidity can be further affected by a number of factors such as counterparty willingness or ability to extend credit, regulatory actions and customer preferences, some of which are beyond our control. With the current economic uncertainty resulting from inflation, recent geopolitical events, and increasing recessionary risk in the US, we continue monitoring our liquidity position, specifically cash on hand to meet customer demands.

In addition, as OFG is a holding company, separate from the Bank, OFG’s primary sources of liquidity are dividends received from the Bank and borrowings from outside sources. Banking regulations may limit the amount of dividends that may be paid by the Bank. Management believes that these limitations will not impact OFG’s ability to meet its ongoing short-term cash obligations.

Although OFG expects to have continued access to credit from the foregoing sources of funds, there can be no assurance that such financing sources will continue to be available or will be available on favorable terms. In a period of financial disruption or if negative developments occur with respect to OFG, the availability and cost of OFG’s funding sources could be adversely affected. In that event, OFG’s cost of funds may increase, thereby reducing its net interest income, or OFG may need to dispose of a portion of its investment portfolio, which depending upon market conditions, could result in realizing a loss or experiencing other adverse accounting consequences upon any such dispositions. OFG’s efforts to monitor and manage liquidity risk may not be successful to deal with dramatic or unanticipated changes in the global or US securities markets or other reductions in liquidity driven by OFG or market-related events. In the event that such sources of funds are reduced or eliminated and OFG is not able to replace these on a cost-effective basis, OFG may be forced to curtail or cease its loan origination business and treasury activities, which would have a material adverse effect on its operations and financial condition.

As of June 30, 2024, OFG had approximately $740.4 million in unrestricted cash and cash equivalents, $787.3 million in investment securities that are not pledged as collateral, $451.6 million in borrowing capacity at the FHLB and a secured line of credit through the FRB discount window with $2.025 billion in loans pledged (borrowing capacity $1.562 billion).

Operational Risk

Operational risk is the risk of loss from inadequate or failed internal processes, personnel and systems or from external events. All functions, products and services of OFG are susceptible to operational risk.

OFG faces ongoing and emerging risk and regulatory pressure related to the activities that surround the delivery of banking and financial products and services. Coupled with external influences such as the risk of natural disasters, market conditions, security risks, and legal risks, the potential for operational and reputational loss has increased. In order to mitigate and control operational risk, OFG has developed, and continues to enhance, specific internal controls, policies and procedures that are designed to identify and manage operational risk at appropriate levels throughout the organization. The purpose of these policies and procedures is to provide reasonable assurance that OFG’s business operations are functioning within established limits. OFG also maintains a cybersecurity risk management framework in place to assess, identify and manage risks from cybersecurity threats. Refer to “Item 1C. Cybersecurity” in our 2023 Form 10-K for further discussion on OFG’s cybersecurity risk management framework.

OFG classifies operational risk into two major categories: business specific and corporate-wide affecting all business lines. For business specific risks, a risk assessment group works with the various business units to ensure consistency in policies, processes and assessments. With respect to corporate-wide risks, such as information security, business recovery, legal and compliance, OFG has specialized groups, such as Information Security, Enterprise Risk Management, Legal and Corporate Compliance, Information Technology, and Operations. These groups assist our lines of business in the development and implementation of risk management practices specific to the needs of our business groups. All these matters are reviewed and discussed by the executive Risk and Compliance Team and the executive Consumer Compliance Team. OFG also has a Business Continuity Plan to address situations where its capacity to perform critical functions is affected. Under such circumstances, a Crisis Management Team is activated to restore such critical functions within established timeframes.

OFG is subject to extensive United States federal and Puerto Rico regulations, and OFG has established and continues to enhance procedures based on legal and regulatory requirements that are reasonably designed to ensure compliance with all applicable statutory and regulatory requirements. OFG has a corporate compliance function headed by the General Counsel who reports to the Chief Executive Officer and supervises the BSA Officer and Corporate Compliance Director. The General Counsel is responsible for the oversight of regulatory compliance and implementation of a company-wide compliance program, including the Bank Secrecy Act/Anti-Money Laundering compliance program.

As a result of the 2023 bank failures, regulatory agencies may propose certain actions, including reforms to existing regulatory and prudential frameworks that may impose different capital and liquidity requirements, including increased requirements to issue debt or raise capital. In November 2023, the FDIC finalized a rule to recover losses to the FDIC deposit insurance fund as

103

a result of the bank failures. Under the rule, the FDIC will collect a special assessment based on a calculation using an insured depository institution’s estimated amount of uninsured deposits. In particular, the special assessment was imposed on insured depository institutions based on their estimated uninsured deposits in excess of $5 billion at December 31, 2022. Given that OFG had uninsured deposits under $5 billion, this special assessment did not apply to us. However, in the future there may be additional special assessments imposed on insured depository institutions that may apply to us. It is not yet possible to quantify the scope of any of these actions or the potential impact on our operations.

Concentration Risk

Most of OFG’s business activities and a significant portion of its credit exposure are concentrated in Puerto Rico. As a consequence, OFG’s profitability and financial condition may be adversely affected by an extended economic slowdown, adverse political, fiscal or economic developments in Puerto Rico, or the effects of a natural disaster, all of which could result in a reduction in loan originations, an increase in non-performing assets, an increase in foreclosure losses on mortgage loans, and a reduction in the value of its loans and loan servicing portfolio.

104

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

OFG’s management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. As of the end of the period covered by this quarterly report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of OFG’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of OFG’s disclosure controls and procedures. Based upon such evaluation, the CEO and CFO have concluded that, as of the end of the period covered by this quarterly report on Form 10-Q, OFG’s disclosure controls and procedures provided reasonable assurance of effectiveness in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by OFG in the reports that it files or submits under the Securities Exchange Act of 1934. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within OFG to disclose material information otherwise required to be set forth in OFG’s periodic reports.

Internal Control over Financial Reporting

There have not been any changes in OFG’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2024, that has materially affected, or is reasonably likely to materially affect, OFG’s internal control over financial reporting.

PART - II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

OFG and its subsidiaries are defendants in a number of legal proceedings incidental to their business. OFG is vigorously contesting such claims. Based upon a review by legal counsel and the development of these matters to date, management is of the opinion that the ultimate aggregate liability, if any, resulting from these claims will not have a material adverse effect on OFG’s financial condition or results of operations.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors previously disclosed in our 2023 Form 10-K, except as set forth in our subsequent quarterly reports on Form 10-Q. In addition to other information set forth in this quarterly report, you should carefully consider the risk factors included in our 2023 Form 10-K, as updated by this report or other filings we make with the SEC under the Exchange Act. Additional risks and uncertainties not presently known to OFG at this time or OFG currently deems immaterial may also adversely affect OFG’s business, financial condition or results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In January 2024, OFG’s Board of Directors approved a new $50.0 million stock repurchase program. The new stock repurchase program, which is open-ended, replaces the prior stock repurchase program approved by the Board of Directors in January 2022, which had $17.2 million remaining of its $100.0 million repurchase parameters. Any 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 quarter 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.

105

The table below sets forth the information with respect to purchases of our common stock made by or on behalf of OFG during the quarter ended June 30, 2024:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced programs	Maximum approximate dollar value of shares that may yet be purchased under the programs
	(In thousands, except per share data)
4/1/2024 - 4/30/2024	214,514	$	36.29	214,514	$	42,216
5/1/2024 - 5/31/2024	96,900	36.46		96,900	38,683
6/1/2024 - 6/30/2024	357,786	36.24		357,786	25,718
Total	669,200	$	36.28	669,200	$	25,718

The estimated remaining number of shares that may be purchased under the current $50 million stock buyback program is estimated at 686,741 and was calculated by dividing the remaining balance of $25.7 million by $37.45 (closing price of OFG common stock at June 30, 2024). OFG did not repurchase any shares of its common stock during the quarter ended June 30, 2024 other than through its publicly announced stock repurchase program.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) None.

(b) None.

(c) None.

106

ITEM 6. EXHIBITS

Exhibit No.	Description of Document:
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from OFG’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Unaudited Consolidated Statements of Financial Condition, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Unaudited Consolidated Financial Statements.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

107

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

OFG BANCORP

By:	/s/ José Rafael Fernández	Dated: August 7, 2024
José Rafael Fernández President and Chief Executive Officer
By:	/s/ Maritza Arizmendi Díaz	Dated: August 7, 2024
Maritza Arizmendi Díaz Chief Financial Officer

108

EX-31.1

EXHIBIT 31.1

MANAGEMENT CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, José Rafael Fernández, President and Chief Executive Officer of OFG Bancorp, certify that:

1.I have reviewed this report on Form 10-Q of OFG Bancorp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,process,summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 7, 2024
		By:	/s/ José Rafael Fernández
			José Rafael Fernández
			President and Chief Executive Officer

1

EX-31.2

EXHIBIT 31.2

MANAGEMENT CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Maritza Arizmendi, Chief Financial Officer of OFG Bancorp, certify that:

1.I have reviewed this report on Form 10-Q of OFG Bancorp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f ) and 15d-15(f )) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 7, 2024
		By:	/s/ Maritza Arizmendi
			Maritza Arizmendi
			Chief Financial Officer

1

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. §1350)

In connection with OFG Bancorp’s report on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, José Rafael Fernández, President and Chief Executive Officer of OFG Bancorp, hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of OFG Bancorp.

In witness whereof, I execute this certification in San Juan, Puerto Rico, this 7th day of August 2024.

By:	/s/ José Rafael Fernández
	José Rafael Fernández
	President and Chief Executive Officer

1

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. §1350)

In connection with OFG Bancorp’s report on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Maritza Arizmendi, Chief Financial Officer of OFG Bancorp, hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of OFG Bancorp.

In witness whereof, I execute this certification in San Juan, Puerto Rico, this 7th day of August 2024.

By:	/s/ Maritza Arizmendi
	Maritza Arizmendi
	Chief Financial Officer

1

XML

COVER - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-12647
Entity Registrant Name	OFG Bancorp
Entity Incorporation, State or Country Code	PR
Entity Tax Identification Number	66-0538893
Entity Address, Address Line One	254 Muñoz Rivera Avenue
Entity Address, City or Town	San Juan
Entity Address, Country	PR
Entity Address, Postal Zip Code	00918
City Area Code	787
Local Phone Number	771-6800
Title of 12(b) Security	Common shares, par value $1.00 per share
Trading Symbol	OFG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,561,532
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001030469
Current Fiscal Year End Date	--12-31

XML

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Cash and cash equivalents:
Cash and due from banks	$ 735,346	$ 743,550
Money market investments	5,083	4,623
Total cash and cash equivalents	740,429	748,173
Investments:
Trading securities, at fair value, with amortized cost of $163 (December 31, 2023 - $163)	16	13
Investment securities available-for-sale, at fair value, with amortized cost of $2,198,116 (December 31, 2023 - $2,177,761); no allowance for credit losses	2,096,306	2,099,264
Investment securities held-to-maturity, at amortized cost, with fair value of $279,437 (December 31, 2023 - $490,764); no allowance for credit losses	338,621	549,024
Equity securities	41,074	38,469
Total investments	2,476,017	2,686,770
Loans:
Loans held-for-sale, at lower of cost or fair value	20,736	28,345
Loans held-for-investment, net of allowance for credit losses of $157,301 (December 31, 2023 - $161,106)	7,482,406	7,373,273
Total loans	7,503,142	7,401,618
Other assets:
Foreclosed real estate	6,526	10,780
Accrued interest receivable	72,969	71,400
Deferred tax assets, net	4,094	4,923
Premises and equipment, net	104,384	104,102
Customers' liability on acceptances	28,504	25,576
Servicing assets	49,789	49,520
Goodwill	84,241	84,241
Other intangible assets	17,738	20,694
Operating lease right-of-use assets	20,298	21,725
Other assets	150,954	114,931
Total assets	11,259,085	11,344,453
Deposits:
Demand deposits	6,017,364	6,050,428
Savings accounts	2,002,342	2,088,102
Time deposits	1,585,544	1,623,639
Total deposits	9,605,250	9,762,169
Borrowings:
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	200,741	200,768
Other borrowings	0	2
Total borrowings	200,741	200,770
Other liabilities:
Acceptances executed and outstanding	28,504	25,576
Operating lease liabilities	22,605	24,029
Deferred tax liabilities, net	33,873	22,444
Accrued expenses and other liabilities	140,410	115,985
Total liabilities	10,031,383	10,150,973
Commitments and contingencies (See Note 18)
Stockholders’ equity:
Common stock, $1 par value; 100,000,000 shares authorized; 59,885,234 shares issued: 46,561,532 shares outstanding (December 31, 2023 - 59,885,234 shares issued; 47,065,156 shares outstanding)	59,885	59,885
Additional paid-in capital	637,895	638,667
Legal surplus	160,560	150,967
Retained earnings	706,807	639,324
Treasury stock, at cost, 13,323,702 shares (December 31, 2023 - 12,820,078 shares)	(250,951)	(228,350)
Accumulated other comprehensive loss, net of tax of $15,316 (December 31, 2023 - $11,484)	(86,494)	(67,013)
Total stockholders’ equity	1,227,702	1,193,480
Total liabilities and stockholders’ equity	$ 11,259,085	$ 11,344,453

XML

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Trading securities, amortized cost	$ 163	$ 163
Investment securities available-for-sale, amortized cost	2,198,116	2,177,761
Investment securities available-for-sale, allowance for credit loss	0	0
Investment securities held-to-maturity, fair value	279,437	490,764
Investment securities held-to-maturity, allowance for credit loss	0	0
Loans held for investment, allowance for credit losses	$ 157,301	$ 161,106
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	59,885,234	59,885,234
Common stock, outstanding (in shares)	46,561,532	47,065,156
Treasury stock, at cost (in shares)	13,323,702	12,820,078
Accumulated other comprehensive income, tax (benefit) expense	$ 15,316	$ 11,484

XML

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest income:
Loans	$ 154,257	$ 135,518	$ 303,851	$ 263,829
Mortgage-backed securities	20,893	10,593	40,687	20,667
Investment securities and other	12,508	11,877	26,546	22,477
Total interest income	187,658	157,988	371,084	306,973
Interest expense:
Deposits	37,812	15,916	74,604	28,413
Advances from FHLB and other borrowings	2,521	2,428	5,053	3,019
Total interest expense	40,333	18,344	79,657	31,432
Net interest income	147,325	139,644	291,427	275,541
Provision for credit losses	15,581	15,044	30,702	24,489
Net interest income after provision for credit losses	131,744	124,600	260,725	251,052
Non-interest income:
Banking service revenue	18,781	17,440	36,040	34,953
Wealth management revenue	8,440	8,194	16,547	15,314
Mortgage banking activities	4,864	5,225	9,557	9,123
Total banking and financial service revenues	32,085	30,859	62,144	59,390
Net loss on sale of securities	0	(1,149)	(7)	(1,149)
Other non-interest income	391	363	687	733
Total non-interest income	32,476	30,073	62,824	58,974
Non-interest expense:
Compensation and employee benefits	38,467	37,841	78,283	76,314
Occupancy, equipment and infrastructure costs	14,393	14,362	28,715	28,619
Electronic banking charges	11,687	10,262	22,053	20,598
Information technology expenses	6,565	7,188	13,168	13,606
Professional and service fees	5,117	5,319	9,121	10,383
Taxes, other than payroll and income taxes	3,224	3,265	6,467	6,538
Insurance	3,117	2,689	5,793	5,606
Loan servicing and clearing expenses	1,890	1,866	4,000	4,133
Advertising, business promotion, and strategic initiatives	2,445	2,063	4,824	4,098
Communication	1,219	1,160	2,300	2,189
Printing, postage, stationery and supplies	939	866	1,898	1,596
Foreclosed real estate and other repossessed assets income, net of expenses	(731)	(2,320)	(63)	(1,527)
Other	4,628	4,327	7,813	6,955
Total non-interest expense	92,960	88,888	184,372	179,108
Income before income taxes	71,260	65,785	139,177	130,918
Income tax expense	20,129	21,612	38,354	40,516
Net income available to common shareholders	$ 51,131	$ 44,173	$ 100,823	$ 90,402
Earnings per common share:
Basic (in dollars per share)	$ 1.09	$ 0.93	$ 2.14	$ 1.91
Diluted (in dollars per share)	$ 1.08	$ 0.93	$ 2.13	$ 1.89
Average common shares outstanding and equivalents (in shares)	47,131	47,490	47,244	47,716
Cash dividends per share of common stock (in dollars per share)	$ 0.25	$ 0.22	$ 0.50	$ 0.44

XML

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 51,131	$ 44,173	$ 100,823	$ 90,402
Other comprehensive (loss) income before tax:
Unrealized (loss) gain on securities available-for-sale	(5,763)	(14,342)	(23,320)	3,583
Realized loss on sale of securities available-for-sale	0	1,149	7	1,149
Unrealized loss on cash flow hedges	0	(155)	0	(286)
Other comprehensive (loss) income before taxes	(5,763)	(13,348)	(23,313)	4,446
Income tax effect	1,000	2,124	3,832	(601)
Other comprehensive (loss) income after taxes	(4,763)	(11,224)	(19,481)	3,845
Comprehensive income	$ 46,368	$ 32,949	$ 81,342	$ 94,247

XML

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands		Total	Common stock	Additional paid-in capital	Legal surplus	Retained earnings	Treasury stock	Accumulated other comprehensive (loss) income, net of tax
Balance at beginning of period at Dec. 31, 2022			$ 59,885	$ 636,793	$ 133,901	$ 516,371	$ (211,135)	$ (93,409)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense				2,368
Lapsed restricted stock units				(3,110)			1,372
Transfer from retained earnings					8,666
Net income		$ 90,402				90,402
Cash dividends declared on common stock	[1]					(21,065)
Transfer to legal surplus		8,700				(8,666)
Stocks repurchased		(16,467)					(16,467)
Lapsed restricted stock units and options				(3,110)			1,372
Other comprehensive (loss) gain, net of tax		3,845						3,845
Balance at end of period at Jun. 30, 2023		1,099,751		636,051	142,567	577,042	(226,230)	(89,564)
Balance at beginning of period at Mar. 31, 2023			59,885	634,785	138,333	547,641	(212,794)	(78,340)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense				1,403
Lapsed restricted stock units				(137)			137
Transfer from retained earnings					4,234
Net income		44,173				44,173
Cash dividends declared on common stock	[1]					(10,538)
Transfer to legal surplus		4,200				(4,234)
Stocks repurchased		(13,573)					(13,573)
Lapsed restricted stock units and options				(137)			137
Other comprehensive (loss) gain, net of tax		(11,224)						(11,224)
Balance at end of period at Jun. 30, 2023		1,099,751		636,051	142,567	577,042	(226,230)	(89,564)
Balance at beginning of period at Dec. 31, 2023		1,193,480	59,885	638,667	150,967	639,324	(228,350)	(67,013)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense				3,130
Lapsed restricted stock units				(3,902)			1,681
Transfer from retained earnings					9,593
Net income		100,823				100,823
Cash dividends declared on common stock	[1]					(23,747)
Transfer to legal surplus		9,600				(9,593)
Stocks repurchased		(24,282)					(24,282)
Lapsed restricted stock units and options				(3,902)			1,681
Other comprehensive (loss) gain, net of tax		(19,481)						(19,481)
Balance at end of period at Jun. 30, 2024		1,227,702		637,895	160,560	706,807	(250,951)	(86,494)
Balance at beginning of period at Mar. 31, 2024			$ 59,885	636,208	155,732	672,455	(226,896)	(81,731)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense				1,966
Lapsed restricted stock units				(279)			227
Transfer from retained earnings					4,828
Net income		51,131				51,131
Cash dividends declared on common stock	[1]					(11,951)
Transfer to legal surplus		4,800				(4,828)
Stocks repurchased		(24,282)					(24,282)
Lapsed restricted stock units and options				(279)			227
Other comprehensive (loss) gain, net of tax		(4,763)						(4,763)
Balance at end of period at Jun. 30, 2024		$ 1,227,702		$ 637,895	$ 160,560	$ 706,807	$ (250,951)	$ (86,494)

[1] Dividends declared per common share during the quarter ended June 30, 2024 - $0.25 (June 30, 2023 - $0.22). Dividends declared per common share during the six-month period ended June 30, 2024 - $0.50 (June 30, 2023 - $0.44).

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UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.25	$ 0.25	$ 0.22	$ 0.50	$ 0.44	$ 0.22

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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 100,823	$ 90,402
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred loan origination fees, net of costs, and fair value premiums on loans	855	323
Amortization of investment securities discounts, net of accretion of premiums	(5,359)	(3,191)
Amortization of other intangible assets	2,956	3,450
Net change in operating leases	3	184
Depreciation and amortization of premises and equipment	10,600	10,210
Deferred income tax expense, net	16,090	34,580
Provision for credit losses	30,702	24,489
Stock-based compensation	3,130	2,368
(Gain) loss on:
Sale of securities	7	1,149
Sale of loans	(660)	(287)
Foreclosed real estate and other repossessed assets	(1,867)	(4,472)
Sale of other assets	(1)	25
Originations and purchases of loans held-for-sale	(60,378)	(59,847)
Proceeds from sale of loans held-for-sale	56,045	5,596
Net (increase) decrease in:
Accrued interest receivable	(1,576)	(947)
Servicing assets	(269)	955
Other assets	(34,323)	(6,458)
Net (decrease) increase in:
Accrued interest on deposits and borrowings	(1,226)	1,083
Accrued expenses and other liabilities	40,525	(269)
Net cash provided by operating activities	156,077	99,343
Purchases of:
Investment securities available-for-sale	(545,356)	(47,650)
FHLB stock	(28,016)	(9,681)
Equity securities	(1,813)	(2,642)
Maturities and redemptions of:
Investment securities available-for-sale	418,623	176,280
Investment securities held-to-maturity	210,817	10,311
FHLB stock	27,224	44
Proceeds from sales of:
Investment securities available-for-sale	149,406	202,133
Foreclosed real estate and other repossessed assets, including write-offs	27,159	30,957
Premises and equipment	1	30
Origination and purchase of loans, excluding loans held-for-sale	(1,435,894)	(1,801,377)
Principal repayment of loans	1,246,285	1,473,429
Additions to premises and equipment	(10,903)	(7,656)
Net cash provided by investing activities	57,533	24,178
Net (decrease) increase in:
Deposits	(172,551)	(35,417)
FHLB advances and other borrowings	(2)	198,714
Exercise of stock options and restricted units lapsed, net	(2,221)	(1,738)
Purchase of treasury stock	(24,282)	(16,467)
Dividends paid on common stock	(22,298)	(20,104)
Net cash (used in) provided by financing activities	(221,354)	124,988
Net change in cash and cash equivalents	(7,744)	248,509
Cash and cash equivalents at beginning of period	748,173	550,464
Cash and cash equivalents at end of period	740,429	798,973
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Statements of Financial Condition:
Cash and due from banks	735,346	795,546
Money market investments	5,083	3,427
Total cash and cash equivalents at end of period	740,429	798,973
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities:
Interest paid	78,619	27,706
Income taxes paid	11,822	3,438
Operating lease liabilities paid	4,911	5,024
Mortgage loans held-for-sale securitized into mortgage-backed securities	38,089	53,713
Transfer from loans to foreclosed real estate and other repossessed assets	23,429	25,785
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio	26,840	86
Reclassification of loans held-for-sale portfolio to held-for-investment portfolio	1,084	8,736
Financed sales of foreclosed real estate	710	488
Delinquent loans booked under the GNMA buy-back option	$ 19,008	$ 18,417

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

OFG is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. OFG operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer and investment adviser, Oriental Financial Services LLC (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”), a captive reinsurance company, OFG Reinsurance Ltd (“OFG Reinsurance”), and OFG Ventures LLC (“OFG Ventures”), which holds investments. Through these subsidiaries and their respective divisions, OFG provides a wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory, and securities brokerage services, as well as corporate and individual trust services.

The Bank has a wholly-owned operating subsidiary, OFG USA LLC (“OFG USA”), which is a commercial lender organized in Delaware. In addition, Oriental International Bank Inc. (“OIB”), a wholly-owned subsidiary of the Bank, and Oriental Overseas, a division of the Bank, are international banking entities licensed pursuant to the International Banking Center Regulatory Act of Puerto Rico, as amended. OIB and Oriental Overseas offer the Bank certain Puerto Rico tax advantages. Their activities are limited under Puerto Rico law to persons located in Puerto Rico with assets/liabilities located outside of Puerto Rico. In March 2024, the Bank organized OBPEF LLC (“OBPEF”), as a wholly-owned subsidiary of the Bank and a private equity fund under the Puerto Rico Incentives Code, as amended, which objective is to provide financing to eligible borrowers, whether in the form of senior or subordinated debt, to support the economic development of Puerto Rico.

Basis of Presentation

The accompanying unaudited consolidated financial statements of OFG have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, these consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of OFG on a consolidated basis, and all such adjustments are of a normal recurring nature. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in OFG’s annual report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). Operating results for the six-month period ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. OFG evaluated subsequent events through the filing date of this report with the SEC and has recorded or disclosed those material events or transactions as described within the accompanying consolidated financial statements and notes. Material estimates that are particularly susceptible to significant change in the near term relate mainly to the determination of the allowance for credit losses.

New Accounting Updates Not Yet Adopted

Codification Improvements—Amendments to Remove References to the Concepts Statements. In March 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-02, which removes various references to concept statements from the FASB Accounting Standards Codification. The ASU intends to simplify the Accounting Standards Codification and distinguish between non-authoritative and authoritative guidance. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The amendments can be applied prospectively or retrospectively. We will adopt this guidance when it becomes effective, in the first quarter of 2025 and on a prospective basis, and the impact on our financial statements and disclosures is not expected to be material.

Compensation—Stock Compensation. In March 2024, the FASB issued ASU 2024-01 to improve GAAP by adding an illustrative example to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar awards should be accounted for in accordance with Topic 718. The ASU 2024-01 is intended to reduce complexity and diversity in practice. For public business entities, the amendments will be effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is

permitted. Although OFG is currently evaluating the impact that the adoption of this guidance will have on its financial statements and disclosures, we do not expect the impact to be material.

Segment Reporting—Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07 to enhance segment reporting by expanding the breadth and frequency of segment disclosures required for public entities. The amendments in this ASU will allow registrants to disclose multiple measures of segment profit or loss and it also clarifies that single reportable segment entities must apply Topic 280 in its entirety. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We will adopt this guidance when it becomes effective in the annual period of 2024 on a retrospective basis to all periods presented in the financial statements, and the impact on our financial statements and disclosures is not expected to be material.

Income Taxes—Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09 to enhance income tax disclosures and requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The ASU’s two primary enhancements will require further disaggregation for existing disclosures for the effective tax rate reconciliation and income taxes paid. More specifically, the amendments will require entities to disclose: a tabular effective tax rate reconciliation, broken out into specific categories with certain reconciling items above a 5% threshold further broken out by nature and jurisdiction; and income taxes paid (net of refunds received), broken out between federal, state and foreign, and net amounts paid to an individual jurisdiction that exceed 5% of the total. The amendments in this update are effective for annual periods beginning after December 15, 2024. Entities are permitted to early adopt these amendments. The amendments should be applied prospectively, but retrospective application is permitted. We will adopt this guidance when it becomes effective, in the annual period of 2025 on a prospective basis, and the impact on our financial statements and disclosures is not expected to be material.

The Enhancement and Standardization of Climate-Related Disclosures for Investors. On March 6, 2024, the SEC issued a final rule under SEC Release No. 33-11275 that requires registrants to provide climate disclosures in their annual reports and registration statements. The rule includes disclosure concerning the use of carbon offsets or renewable energy credits or certificates if their use is a material component of the registrant’s plans to achieve its disclosed climate-related targets or goals, and certain disclosures about Scope 1 and/or Scope 2 greenhouse gas (“GHG”) emissions, if material. It also requires disclosures of amounts related to the effects of severe weather events and other natural conditions. The disclosure requirements will apply to OFG's fiscal year beginning January 1, 2025. We will adopt this rule when it becomes effective. OFG is currently evaluating the final rule, but the impact on our financial statements and disclosures is not expected to be material.

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RESTRICTED CASH

6 Months Ended

Jun. 30, 2024

Restricted Cash and Investments [Abstract]

RESTRICTED CASH

RESTRICTED CASH

The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits, excluding government deposits that are secured with pledged collateral. The amount of those minimum average reserve balances for the week that covered June 30, 2024 was $474.2 million (December 31, 2023 - $464.5 million). At June 30, 2024 and December 31, 2023, the Bank complied with this requirement. Cash and due from bank, as well as other short-term highly liquid securities, are used to cover the required average reserve balances.

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INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

Money Market Investments

OFG considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less at the date of acquisition. At June 30, 2024 and December 31, 2023, money market instruments included as part of cash and cash equivalents amounted to $5.1 million and $4.6 million, respectively.

Investment Securities

The amortized cost, gross unrealized gains and losses, fair value, weighted average yield and contractual maturities of the securities owned by OFG at June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due from 1 to 5 years	$	8,933	$	—	$	421	$	8,512	1.98	%
Due from 5 to 10 years	36,742		—		2,517		34,225		1.97	%
Due after 10 years	1,512,171		5,261		69,008		1,448,424		4.28	%
Total FNMA and FHLMC certificates	1,557,846		5,261		71,946		1,491,161		4.21	%
GNMA certificates
Due from 1 to 5 years	7,965		—		319		7,646		1.72	%
Due from 5 to 10 years	13,552		7		883		12,676		2.23	%
Due after 10 years	409,828		5,017		38,662		376,183		3.54	%
Total GNMA certificates	431,345		5,024		39,864		396,505		3.47	%
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years	6,896		—		274		6,622		1.78	%
Due after 10 years	790		—		11		779		5.06	%
Total CMOs issued by US government-sponsored agencies	7,686		—		285		7,401		2.11	%
Total mortgage-backed securities	1,996,877		10,285		112,095		1,895,067		4.04	%
Investment securities
US Treasury securities
Due less than 1 year	200,656		2		—		200,658		5.41	%
Other debt securities
Due less than 1 year	500		—		—		500		3.25	%
Due from 1 to 5 years	83		—		2		81		2.97	%
Total other debt securities	583		—		2		581		3.21	%
Total investment securities	201,239		2		2		201,239		5.41	%
Total securities available for sale	$	2,198,116	$	10,287	$	112,097	$	2,096,306	4.17	%
	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years	$	303,621	$	—	$	59,256	$	244,365	1.72	%
Investment securities
Other debt securities
Due from 1 to 5 years	35,000		72		—		35,072		6.33	%
Total securities held to maturity	$	338,621	$	72	$	59,256	$	279,437	2.20	%

	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due from 1 to 5 years	$	6,972	—		$	311	$	6,661	1.76	%
Due from 5 to 10 years	45,835		—		2,767		43,068		2.00	%
Due after 10 years	1,411,327		8,989		54,100		1,366,216		4.11	%
Total FNMA and FHLMC certificates	1,464,134		8,989		57,178		1,415,945		4.03	%
GNMA certificates
Due less than 1 year	5		—		—		5		1.31	%
Due from 1 to 5 years	8,851		—		351		8,500		1.71	%
Due from 5 to 10 years	17,113		16		955		16,174		2.19	%
Due after 10 years	380,306		4,419		33,110		351,615		3.38	%
Total GNMA certificates	406,275		4,435		34,416		376,294		3.30	%
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years	9,071		—		364		8,707		1.78	%
Due from 5 to 10 years	54		—		—		54		2.14	%
Due after 10 years	861		—		12		849		5.07	%
Total CMOs issued by US government-sponsored agencies	9,986		—		376		9,610		2.06	%
Total mortgage-backed securities	1,880,395		13,424		91,970		1,801,849		3.86	%
Investment securities
US Treasury securities
Due less than 1 year	296,747		52		—		296,799		5.40	%
Other debt securities
Due less than 1 year	500		—		—		500		3.25	%
Due from 1 to 5 years	119		—		3		116		2.97	%
Total other debt securities	619		—		3		616		3.20	%
Total investment securities	297,366		52		3		297,415		5.39	%
Total securities available for sale	$	2,177,761	$	13,476	$	91,973	$	2,099,264	4.07	%
	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years	$	314,710	$	—	$	56,767	$	257,943	1.72	%
Investment securities
US Treasury securities
Due less than 1 year	199,314		—		1,548		197,766		3.33	%

Other debt securities
Due from 1 to 5 years	35,000		55		—		35,055		6.36	%
Total securities held to maturity	$	549,024	$	55	$	58,315	$	490,764	2.60	%

Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

The weighted average yield on debt securities available-for-sale is based on amortized cost and does not give effect to changes in fair value. Weighted average yields on tax-exempt obligations have been computed on a fully taxable equivalent basis.

At June 30, 2024 and December 31, 2023, most securities held by OFG are issued by U.S. government entities and government-sponsored agencies that have a zero-credit loss assumption and, therefore, have no allowance for credit losses.

Investment securities at June 30, 2024 include $1.648 billion pledged to secure government deposits and regulatory collateral, of which $1.602 billion serve as collateral for public funds. For regulatory collateral, the secured parties are not permitted to sell or repledge them. Investment securities as of December 31, 2023 include $1.624 billion pledged to secure government deposits, derivatives, and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $1.575 billion serve as collateral for public funds.

At June 30, 2024 and December 31, 2023, the Bank’s international banking entity, OIB, held short-term US Treasury securities in the amount of $525 thousand and $325 thousand, respectively, as the legal reserve required for international banking entities under Puerto Rico law. At both June 30, 2024 and December 31, 2023, the Bank’s international banking entity, Oriental Overseas, held short-term US Treasury securities in the amount of $325 thousand as the legal reserve required for international banking entities under Puerto Rico law. These instruments cannot be withdrawn or transferred without the prior written approval of the Office of the Commissioner of Financial Institutions.

During the six-month periods ended June 30, 2024 and 2023, OFG retained securitized GNMA pools totaling $38.1 million and $41.1 million, respectively, at a yield of 5.09% and 5.16%, respectively, from its own originations.

During the six-month periods ended June 30, 2023, OFG retained FNMA pools totaling $12.6 million at a yield of 5.31%, from its own originations. OFG did not retain FNMA pools during the six-month periods ended June 30, 2024.

During the six-month periods ended June 30, 2024 and 2023, OFG sold $149.4 million and $203.3 million, respectively, of available for sale US Treasury securities and recognized a $7 thousand and $1.1 million, respectively, in losses on the sale. These losses are included in the consolidated statements of operations.

	Six-Month Period Ended June 30, 2024
Description	Sale Price		Book Value at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of investment securities available-for-sale
Investment securities
US Treasury securities	$	149,406	$	149,413	$	—	$	7

	Six-Month Period Ended June 30, 2023
Description	Sale Price		Book Value at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of investment securities available-for-sale
Investment securities
US Treasury securities	$	202,133	$	203,282	$	—	$	1,149

The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale at June 30, 2024 and December 31, 2023, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:

	June 30, 2024
	12 months or more
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	737,230	$	67,814	$	669,416
GNMA certificates	267,882		39,458		228,424
CMOs issued by US Government-sponsored agencies	7,686		285		7,401
Other debt securities	83		2		81
	$	1,012,881	$	107,559	$	905,322
	June 30, 2024
	Less than 12 months
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	197,672	$	4,132	$	193,540
GNMA certificates	37,603		406		37,197
	$	235,275	$	4,538	$	230,737
	June 30, 2024
	Total
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	934,902	$	71,946	$	862,956
GNMA certificates	305,485		39,864		265,621
CMOs issued by US Government-sponsored agencies	7,686		285		7,401
Other debt securities	83		2		81
	$	1,248,156	$	112,097	$	1,136,059

The unrealized losses on OFG’s investment in federal agency mortgage-backed securities were caused by market volatility related to interest rate increases. OFG purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government or by a government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price that is less than the amortized cost basis of OFG’s investments. OFG does not intend to sell the investments, and it is not more likely than not that OFG will be required to sell the investments before recovery of their amortized cost basis.

	December 31, 2023
	12 months or more
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	731,334	$	56,847	$	674,487
GNMA certificates	275,669		34,364		241,305
CMOs issued by US Government-sponsored agencies	9,986		376		9,610
Other debt securities	119		3		116
	$	1,017,108	$	91,590	$	925,518

	December 31, 2023
	Less than 12 months
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	106,235	$	331	$	105,904
GNMA certificates	7,864		52		7,812
	$	114,099	$	383	$	113,716

	December 31, 2023
	Total
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	837,569	$	57,178	$	780,391
GNMA certificates	283,533		34,416		249,117
CMOs issued by US Government-sponsored agencies	9,986		376		9,610
Other debt securities	119		3		116
	$	1,131,207	$	91,973	$	1,039,234

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LOANS

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

LOANS

LOANS

OFG’s loan portfolio is composed of four segments: commercial, mortgage, consumer, and auto loans. Loans are further segregated into classes which OFG uses when assessing and monitoring the risk and performance of the portfolio.

The composition of the amortized cost basis of OFG’s loan portfolio at June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024						December 31, 2023
	Non-PCD		PCD		Total		Non-PCD		PCD		Total
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	1,182,145	$	114,516	$	1,296,661	$	1,095,207	$	120,988	$	1,216,195
Other commercial and industrial	1,109,608		14,068		1,123,676		1,091,021		14,459		1,105,480
	2,291,753		128,584		2,420,337		2,186,228		135,447		2,321,675
Commercial US	662,026		—		662,026		755,228		—		755,228
Total commercial loans	2,953,779		128,584		3,082,363		2,941,456		135,447		3,076,903
Mortgage loans	600,031		885,096		1,485,127		629,247		933,362		1,562,609
Consumer loans:
Personal loans	594,271		253		594,524		568,358		264		568,622
Credit lines	10,648		352		11,000		10,926		288		11,214
Credit cards	38,382		—		38,382		40,314		—		40,314
Overdraft	271		—		271		296		—		296
	643,572		605		644,177		619,894		552		620,446
Auto loans	2,427,089		951		2,428,040		2,272,530		1,891		2,274,421
	6,624,471		1,015,236		7,639,707		6,463,127		1,071,252		7,534,379
Allowance for credit losses	(150,849)		(6,452)		(157,301)		(152,610)		(8,496)		(161,106)
Total loans held for investment, net	6,473,622		1,008,784		7,482,406		6,310,517		1,062,756		7,373,273
Mortgage loans held-for-sale	8,375		—		8,375		—		—		—
Other loans held-for-sale	12,361		—		12,361		28,345		—		28,345
Total loans held-for-sale	20,736		—		20,736		28,345		—		28,345
Total loans, net	$	6,494,358	$	1,008,784	$	7,503,142	$	6,338,862	$	1,062,756	$	7,401,618

During the six-month period ended June 30, 2024, OFG sold $40.9 million commercial loans held-for-sale and recognized a $53 thousand gain, included in other non-interest income in the consolidated statement of operations. During the six month period ended June 30, 2023, OFG sold $86 thousand commercial loans held-for-sale with no gain or loss. At June 30, 2024 and December 31, 2023, OFG had $12.4 million and $28.3 million, respectively, in commercial loans held-for-sale.

At June 30, 2024 and December 31, 2023, OFG had carrying balances of $75.8 million and $68.6 million, respectively, in loans held-for-investment granted to the Puerto Rico government or its instrumentalities as part of the commercial loan segment. The Bank’s loans to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities in current status. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations.

The tables below present the aging of the amortized cost of loans held for investment at June 30, 2024 and December 31, 2023, by class of loans. Mortgage loans past due include $19.0 million and $19.4 million of delinquent loans in the GNMA buy-back option program at June 30, 2024 and December 31, 2023, respectively. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.

	June 30, 2024
	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	3,533	$	2,189	$	6,032	$	11,754	$	1,170,391	$	1,182,145	$	—
Other commercial and industrial	704		313		3,890		4,907		1,104,701		1,109,608		—
	4,237		2,502		9,922		16,661		2,275,092		2,291,753		—
Commercial US	1,042		—		—		1,042		660,984		662,026		—
Total commercial loans	5,279		2,502		9,922		17,703		2,936,076		2,953,779		—
Mortgage loans	5,442		7,325		29,684		42,451		557,580		600,031		1,682
Consumer loans:
Personal loans	6,904		4,766		2,569		14,239		580,032		594,271		—
Credit lines	476		70		12		558		10,090		10,648		—
Credit cards	542		281		722		1,545		36,837		38,382		—
Overdraft	63		—		—		63		208		271		—
	7,985		5,117		3,303		16,405		627,167		643,572		—
Auto loans	111,291		41,526		16,689		169,506		2,257,583		2,427,089		—
Total loans	$	129,997	$	56,470	$	59,598	$	246,065	$	6,378,406	$	6,624,471	$	1,682

	December 31, 2023
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	1,585	$	411	$	5,671	$	7,667	$	1,087,540	$	1,095,207	$	—
Other commercial and industrial	1,366		291		4,974		6,631		1,084,390		1,091,021		—
	2,951		702		10,645		14,298		2,171,930		2,186,228		—
Commercial US	—		—		—		—		755,228		755,228		—
Total commercial loans	2,951		702		10,645		14,298		2,927,158		2,941,456		—
Mortgage loans	6,107		9,596		31,557		47,260		581,987		629,247		2,478
Consumer loans:
Personal loans	6,115		4,041		2,755		12,911		555,447		568,358		—
Credit lines	137		35		35		207		10,719		10,926		—
Credit cards	657		280		586		1,523		38,791		40,314		—
Overdraft	87		14		—		101		195		296		—
	6,996		4,370		3,376		14,742		605,152		619,894		—
Auto loans	101,610		46,071		19,056		166,737		2,105,793		2,272,530		—
Total loans	$	117,664	$	60,739	$	64,634	$	243,037	$	6,220,090	$	6,463,127	$	2,478

As of December 31, 2023, total past due loans exclude $6.4 million of past due commercial loans held-for-sale, these loans were sold during the quarter ended June 30, 2024. There were no past due commercial loans held-for-sale as of June 30, 2024.

Upon adoption of the Current Expected Credit Losses (“CECL”) methodology, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, purchased credit deteriorated (“PCD”) loans are not included in the preceding two tables.

Non-accrual Loans

The following table presents the amortized cost basis of loans held for investment on non-accrual status as of June 30, 2024 and December 31, 2023:

	June 30, 2024						December 31, 2023
	Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total		Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total
	(In thousands)						(In thousands)
Non-PCD:
Commercial PR:
Commercial secured by real estate	$	4,789	$	12,865	$	17,654	$	3,553	$	7,929	$	11,482
Other commercial and industrial	1,657		2,663		4,320		4,560		830		5,390
	6,446		15,528		21,974		8,113		8,759		16,872
Commercial US	12,503		—		12,503		19,224		—		19,224
Total Commercial loans	18,949		15,528		34,477		27,337		8,759		36,096
Mortgage loans	9,396		3,312		12,708		10,339		3,858		14,197
Consumer loans:
Personal loans	2,564		32		2,596		2,741		14		2,755
Personal lines of credit	12		—		12		35		—		35
Credit cards	721		—		721		586		—		586
	3,297		32		3,329		3,362		14		3,376
Auto loans	16,684		5		16,689		19,051		5		19,056
Total	$	48,326	$	18,877	$	67,203	$	60,089	$	12,636	$	72,725
PCD:
Commercial PR:
Commercial secured by real estate	$	569	$	3,468	$	4,037	$	3,060	$	2,417	$	5,477
Other commercial and industrial	—		711		711		—		947		947
	569		4,179		4,748		3,060		3,364		6,424
Mortgage loans	244		—		244		250		—		250
Total	$	813	$	4,179	$	4,992	$	3,310	$	3,364	$	6,674
Total non-accrual loans	$	49,139	$	23,056	$	72,195	$	63,399	$	16,000	$	79,399

The determination of non-accrual or accrual status of PCD loans is made at the pool level, not the individual loan level.

For December 31, 2023, total commercial non-accrual loans excludes $6.4 million of non-accrual commercial loans held-for-sale, these loans were sold during the second quarter of 2024. There were no commercial non-accrual loans held-for-sale at June 30, 2024.

Delinquent residential mortgage loans insured or guaranteed under applicable Federal Housing Administration (“FHA”) and Veterans Administration (“VA”) programs are classified as non-performing loans when they become 90 days or more past due but are not placed in non-accrual status until they become 12 months or more past due, since they are insured loans. Therefore, those loans are included as non-performing loans but excluded from non-accrual loans.

Modifications to Debtors Experiencing Financial Difficulty

OFG’s loss mitigation program was designed to ensure that borrowers experiencing financial difficulties have the opportunity to continue paying their obligations. The loss mitigation alternatives are divided depending on the borrower’s hardship and its ability to continue with regular payment or with a new modified payment plan. The loss mitigation program provides alternatives for home retention or disposition options avoiding foreclosure proceedings and collateral retention.

OFG offers various types of loan modifications to borrowers experiencing financial difficulty in the form of an interest rate reduction, an other-than-insignificant payment delay, a term extension, interest or principal forbearance or forgiveness, or any combination of these types of concessions.

At June 30, 2024 and 2023, the amortized cost of modified loans excludes $1 thousand and $5 thousand, respectively, in accrued interest receivable. Accrued interest receivable on loans is included in the “accrued interest receivable” line in OFG’s consolidated statements of financial condition. The amortized cost of modified loans during the six-month period ended June 30, 2024 and 2023, includes $229 thousand and $4.2 million, respectively, of government-guaranteed loans (e.g., FHA/VA).

The following tables present the amortized cost basis as of June 30, 2024 and 2023 of loans held for investment that were modified during the quarters and six-month periods ended June 30, 2024 and 2023, disaggregated by class of financing receivable and type of concession granted.

	Quarter Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Mortgage loans	$	—	—	%	$	595	0.04	%	$	—	—	%	$	92	0.01	%	$	—	—	%
Auto loans	32		—	%	—		—	%	—		—	%	—		—	%	$	—	—	%
Total	$	32			$	595			$	—			$	92			$	—

	Six-Month Period Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Mortgage loans	$	—	—	%	$	687	0.05	%	$	—	—	%	$	92	0.01	%	$	—	—	%
Consumer:
Personal loans	26		—	%	7		—	%	—		—	%	—		—	%	—		—	%
Auto loans	32		—	%	—		—	%	—		—	%	—		—	%	—		—	%
Total	$	58			$	694			$	—			$	92			—

	Quarter Ended June 30, 2023
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	—	—	%	$	5,341	0.48	%	$	—	—	%	$	—	—	%	$	—	—	%
Other commercial and industrial	—		—	%	147		0.01	%	—		—	%	—		—	%	$	—	—	%
	—		—	%	5,488		0.20	%	—		—	%	—		—	%	—		—	%
Commercial US	—		—	%	—		—	%	—		—	%	—		—	%	4,260		0.64	%
Total Commercial loans	$	—	—	%	5,488		0.20	%	—		—	%	—		—	%	4,260		0.64	%
Mortgage loans	—		—	%	1,827		0.11	%	—		—	%	417		0.03	%	$	431	0.03	%
Consumer:
Personal loans	—		—	%	—		—	%	—		—	%	58		0.01	%	$	—	—	%
Total	$	—			$	7,315			$	—			$	475			$	4,691

	Six-Month Period Ended June 30, 2023
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	—	—	%	$	5,810	0.52	%	$	—	—	%	$	—	—	%	$	—	—	%
Other commercial and industrial	—		—	%	147		0.01	%	—		—	%	—		—	%	$	—	—	%
	—		—	%	5,957		0.21	%	—		—	%	—		—	%	—		—	%
Commercial US	—		—	%	—		—	%	—		—	%	—		—	%	4,260		0.64	%
Total Commercial loans	$	—	—	%	5,957		0.21	%	—		—	%	—		—	%	4,260		0.64	%
Mortgage loans	$	—	—	%	4,318		0.27	%	$	100	0.01	%	602		0.02	%	431		0.03	%
Consumer:
Personal loans	—		—	%	—		—	%	—		—	%	84		0.02	%	—		—	%
Total	$	—			$	10,275			$	100			$	686			$	4,691

Our credit loss estimation methodology incorporates a lifetime approach, utilizing modeled loan performance based on the historical experience of loans with similar risk characteristics, adjusted for current conditions, and reasonable and supportable forecasts. The model considers extensive historical loss experience, including the impact of loss mitigation programs offered to borrowers facing financial difficulty and projected loss severity from loan defaults, and is applied consistently across all portfolio segments. Additionally, our ACL is recorded on each asset upon origination or acquisition and is based on historical loss information, including modifications made to borrowers facing financial difficulty, and expected behavior. Changes to the ACL are generally not recorded upon modification, as the effects of most modifications are already considered in the estimation methodology. Refer to Note 5 – Allowance for Credit Losses for additional information.

The following tables present the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarters and six-month periods ended June 30, 2024 and 2023. The financial effect of the combined modifications is presented separately by type of modification.

	Quarter Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Mortgage loans	0.38	%	178	—
Auto loans	3.00	%	0	—

	Six-Month Period Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Mortgage loans	0.38	%	176	—
Consumer loans:
Personal loans	5.00	%	18	—
Auto loans	3.00	%	0	—

	Quarter Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	—	%	25	$	—
Commercial US	—	%	31	2,973
			56	$	2,973
Mortgage loans	1.86	%	195	20
Consumer loans:
Personal loans	1.25	%	110	—

	Six-Month Period Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	—	%	24	$	—
Commercial US	—	%	31	$	2,973
	—	%	56	$	2,973
Mortgage loans	2.04	%	206	$	24
Consumer loans:
Personal loans	2.50	%	81	—

The following table presents the amortized cost basis as of June 30, 2024 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the prior twelve-months.

	Twelve-Months Ended June 30, 2024
	Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
	Interest Rate Reduction		Term Extension		Principal Forgiveness/Forbearance		Combination - Term Extension and Interest Rate Reduction		Total
	(In thousands)
Mortgage loans	$	—	$	108	$	—	$	—	$	108

The following table presents the amortized cost basis as of June 30, 2023 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the six-month period ended June 30, 2023.

	Six-Months Ended June 30, 2023
	Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
	Interest Rate Reduction		Term Extension		Principal Forgiveness/Forbearance		Combination - Term Extension and Interest Rate Reduction		Total
	(In thousands)
Mortgage loans	$	—	$	415	$	—	$	—	$	415

A payment default for a financial difficulty modification loan is defined as reaching 90 days past due with respect to principal and/or interest payments or when the borrower missed three consecutive monthly payments since modification. Payment defaults is one of the factors considered when projecting future cash flows in the calculation of the allowance for credit losses of loans.

OFG closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment status of loans that have been modified in the twelve-months period ended June 30, 2024 and in the six-month period ended June 30, 2023 that were granted to borrowers experiencing financial difficulty.

	June 30, 2024
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial loans:
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	136	$	136
Other commercial and industrial	—		—		—		—		626		626
	—		—		—		—		762		762
Commercial US	—		—		—		—		2,711		2,711
	—		—		—		—		3,473		3,473
Mortgage loans	315		29		108		452		1,983		2,435
Consumer loans:
Personal loans	—		—		—		—		70		70
Auto loans	—		—		—		—		138		138
Total	$	315	$	29	$	108	$	452	$	5,664	$	6,116

	June 30, 2023
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	5,810	$	5,810
Other commercial and industrial	—		—		—		—		147		147
Commercial US	—		—		—		—		4,260		4,260
	—		—		—		—		10,217		10,217
Mortgage loans	—		122		415		537		4,914		5,451
Consumer loans:
Personal loans	—		—		—		—		84		84
Total	$	—	$	122	$	415	$	537	$	15,215	$	15,752

There were no outstanding commitments to lend additional funds to debtors experiencing financial difficulties at June 30, 2024 and December 31, 2023.

As of June 30, 2024 and December 31, 2023, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $16.7 million and $24.1 million, respectively. OFG commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent. Puerto Rico and the USVI require the foreclosure to be processed through their respective courts. Foreclosure timelines vary according to local law and investor guidelines. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediation, bankruptcy, court delays and property title issues.

Collateral-dependent Loans

The table below presents the amortized cost of commercial collateral-dependent loans held for investment at June 30, 2024 and December 31, 2023, by class of loans.

	June 30,		December 31,
	2024		2023
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	13,772	$	8,027

PCD loans, except for single-pooled loans, are not included in the table above as their unit of account is the loan pool.

Credit Quality Indicators

OFG categorizes its loans into loan grades based on relevant information about the ability of borrowers to service their debts, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans.

OFG uses the following definitions for loan grades:

Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards.

Special Mention: Loans classified as “special mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable.

Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future.

Loans not meeting the criteria above that are analyzed individually as part of the process described above are considered to be pass loans.

As of June 30, 2024, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans, and current year-to-date period gross charge-offs by year of origination is as follows:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	110,497	$	221,993	$	223,863	$	193,443	$	109,474	$	208,712	$	61,271	$	1,129,253
Special Mention	—		—		7,298		6,375		4,702		13,031		113		31,519
Substandard	—		745		454		1,400		1,206		15,940		1,628		21,373
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	110,497		222,738		231,615		201,218		115,382		237,683		63,012		1,182,145
Commercial secured by real estate:
YTD gross charge-offs	—		—		—		—		—		7		—		7
Other commercial and industrial:
Loan grade:
Pass	74,157		282,784		71,959		54,624		29,347		17,785		524,959		1,055,615
Special Mention	—		5		2,695		45,033		2		147		1,060		48,942
Substandard	—		142		313		914		226		1,023		2,433		5,051
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	74,157		282,931		74,967		100,571		29,575		18,955		528,452		1,109,608
Other commercial and industrial:
YTD gross charge-offs	114		50		237		3,307		—		11		—		3,719
Commercial US:
Loan grade:
Pass	35,163		131,419		49,463		59,225		29,467		29,215		285,887		619,839
Special Mention	—		—		—		—		—		—		9,841		9,841
Substandard	6,532		6,730		2,728		7,613		—		5,698		635		29,936
Doubtful	2,410		—		—		—		—		—		—		2,410
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	44,105		138,149		52,191		66,838		29,467		34,913		296,363		662,026
Commercial US:
YTD gross charge-offs	—		—		392		1,749		—		1,183		—		3,324
Total commercial loans	$	228,759	$	643,818	$	358,773	$	368,627	$	174,424	$	291,551	$	887,827	$	2,953,779
Total YTD gross charge-offs	$	114	$	50	$	629	$	5,056	$	—	$	1,201	$	—	$	7,050

As of December 31, 2023, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	224,598	$	216,205	$	195,884	$	120,489	$	80,671	$	131,016	$	65,873	$	1,034,736
Special Mention	—		1,772		6,554		5,057		15,676		12,500		153		41,712
Substandard	—		459		1,386		1,109		2,615		11,939		1,236		18,744
Doubtful	—		—		—		—		—		15		—		15
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	224,598		218,436		203,824		126,655		98,962		155,470		67,262		1,095,207
Commercial secured by real estate:
YTD gross charge-offs	—		—		265		—		94		820		—		1,179
Other commercial and industrial:
Loan grade:
Pass	284,615		99,522		113,760		37,665		7,438		14,836		527,008		1,084,844
Special Mention	8		2,953		—		—		51		100		—		3,112
Substandard	3		473		826		259		935		186		383		3,065
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	284,626		102,948		114,586		37,924		8,424		15,122		527,391		1,091,021
Other commercial and industrial:
YTD gross charge-offs	—		124		1,095		89		9		1,180		—		2,497
Commercial US:
Loan grade:
Pass	142,222		63,885		69,233		31,206		28,202		8,085		358,757		701,590
Special Mention	—		7,803		—		—		—		—		20,913		28,716
Substandard	10,832		—		—		—		—		5,699		8,391		24,922
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	153,054		71,688		69,233		31,206		28,202		13,784		388,061		755,228
Commercial US:
YTD gross charge-offs	33		1,156		642		47		—		8,637		—		10,515
Total commercial loans	$	662,278	$	393,072	$	387,643	$	195,785	$	135,588	$	184,376	$	982,714	$	2,941,456
Total YTD gross charge-offs	$	33	$	1,280	$	2,002	$	136	$	103	$	10,637	$	—	$	14,191

At June 30, 2024 and December 31, 2023, the balance of revolving commercial loans converted to term loans was $177.7 million and $144.1 million, respectively.

OFG considers the performance of the loan portfolio and its impact on the ACL. For mortgage and consumer loan classes, OFG also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of June 30, 2024:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Mortgage loans:
Payment performance:
Performing	$	10,304	$	17,149	$	19,296	$	22,321	$	15,094	$	498,542	$	—	$	582,706
Nonperforming	—		650		—		172		105		16,398		—		17,325
Total mortgage loans:	10,304		17,799		19,296		22,493		15,199		514,940		—		600,031
Mortgage loans:
YTD gross charge-offs	—		—		—		—		—		65		—		65
Consumer loans:
Personal loans:
Payment performance:
Performing	140,402		223,895		146,898		52,589		14,925		12,966		—		591,675
Nonperforming	69		820		1,105		416		76		110		—		2,596
Total personal loans	140,471		224,715		148,003		53,005		15,001		13,076		—		594,271
Personal loans:
YTD gross charge-offs	56		4,355		6,759		2,036		425		735		—		14,366
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		10,636		10,636
Nonperforming	—		—		—		—		—		—		12		12
Total credit lines	—		—		—		—		—		—		10,648		10,648
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		88		88
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		37,661		37,661
Nonperforming	—		—		—		—		—		—		721		721
Total credit cards	—		—		—		—		—		—		38,382		38,382
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		1,165		1,165
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		271		271
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		271		271
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		542		542
Total consumer loans	140,471		224,715		148,003		53,005		15,001		13,076		49,301		643,572
Total consumer loans YTD gross charge-offs	56		4,355		6,759		2,036		425		735		1,795		16,161
Total mortgage and consumer loans	$	150,775	$	242,514	$	167,299	$	75,498	$	30,200	$	528,016	$	49,301	$	1,243,603
Total mortgage and consumer loans YTD gross charge-offs	$	56	$	4,355	$	6,759	$	2,036	$	425	$	800	$	1,795	$	16,226

The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Mortgage loans:
Payment performance:
Performing	$	24,623	$	19,722	$	23,303	$	15,821	$	14,589	$	511,182	$	—	$	609,240
Nonperforming	$	—	—		181		108		479		19,239		—		20,007
Total mortgage loans:	24,623		19,722		23,484		15,929		15,068		530,421		—		629,247
Mortgage loans:
YTD gross charge-offs	$	—	4		—		—		—		755		—		759
Consumer loans:
Personal loans:
Payment performance:
Performing	270,883		186,612		68,133		19,185		14,460		6,330		—		$	565,603
Nonperforming	503		1,588		304		193		66		101		—		2,755
Total personal loans	271,386		188,200		68,437		19,378		14,526		6,431		—		568,358
Personal loans:
YTD gross charge-offs	1,748		10,512		4,661		830		1,384		731		—		19,866
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		10,891		$	10,891
Nonperforming	—		—		—		—		—		—		35		35
Total credit lines	—		—		—		—		—		—		10,926		10,926
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		419		419
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		39,728		$	39,728
Nonperforming	—		—		—		—		—		—		586		586
Total credit cards	—		—		—		—		—		—		40,314		40,314
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		2,825		2,825
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		296		$	296
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		296		296
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		545		545
Total consumer loans	271,383		188,200		68,437		19,378		14,526		6,431		51,536		619,894
Total consumer loans YTD gross charge-offs	1,748		10,512		4,661		830		1,384		731		3,789		23,655
Total mortgage and consumer loans	$	296,009	$	207,922	$	91,921	$	35,307	$	29,594	$	536,852	$	51,536	$	1,249,141
Total mortgage and consumer loans YTD gross charge-offs	$	1,748	$	10,516	$	4,661	$	830	$	1,384	$	1,486	$	3,789	$	24,414

At June 30, 2024, the balance of revolving mortgage and consumer loans that converted to term loans was $788 thousand. At December 31, 2023, there were no mortgage and consumer revolving loans that converted to term loans.

OFG evaluates credit quality for auto loans based on FICO score. The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of June 30, 2024:

	Term Loans Amortized Cost Basis by Origination Year												Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	72,253		193,855		178,546		106,187		48,537		56,594		655,972
661-699	86,699		148,429		88,989		45,869		20,872		22,658		413,516
700+	265,909		443,723		282,292		157,960		84,776		98,252		1,332,912
No FICO	2,901		7,107		6,117		4,014		1,759		2,791		24,689
Total auto loans	$	427,762	$	793,114	$	555,944	$	314,030	$	155,944	$	180,295	$	2,427,089
Auto loans:
YTD gross charge-offs	$	137	$	9,196	$	9,310	$	3,889	$	1,784	$	2,461	$	26,777

The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year												Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	170,639		190,743		118,821		57,087		41,124		38,570		616,984
661-699	169,430		110,260		58,166		25,886		18,253		16,137		398,132
700+	474,005		323,514		183,286		103,886		88,929		58,779		1,232,399
No FICO	6,203		6,537		4,592		2,200		3,886		1,597		25,015
Total auto loans	$	820,277	$	631,054	$	364,865	$	189,059	$	152,192	$	115,083	$	2,272,530
Auto loans:
YTD gross charge-offs	$	4,090	$	18,142	$	10,894	$	4,008	$	3,380	$	3,250	$	43,764

Upon adoption of CECL, OFG elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans are not included in the preceding two tables.

As of June 30, 2024 and December 31, 2023, accrued interest receivable on loans totaled $64.0 million and $63.5 million, respectively, and is included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to “Note 9 – Accrued Interest Receivable and Other Assets” for more information on accrued interest receivable on loans.

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ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2024

Credit Loss [Abstract]

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES

OFG measures its ACL based on management’s best estimate of lifetime expected credit losses inherent in OFG’s relevant financial assets. The ACL is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. Also included in the ACL are qualitative reserves to cover losses that are expected but, in OFG’s assessment, may not be adequately represented in the quantitative methods or the economic assumptions. In its loss forecasting framework, OFG incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. The scenarios that are chosen each quarter and the amount of weight given to each scenario depend on a variety of factors, including recent economic events, leading economic indicators, views of internal as well as third-party economists and industry trends. For more information on OFG’s credit loss accounting policies, including the allowance for credit losses, see “Note 1 – Summary of Significant Accounting Policies” included in OFG’s 2023 Form 10-K.

At June 30, 2024, OFG used an economic probability-weighted scenario approach consisting of the baseline and moderate recession scenarios, giving more weight to the baseline scenario, except for the US loan segment that uses a higher probability level in the moderate recessionary scenario. In addition, the ACL at June 30, 2024 continues to include qualitative reserves for certain segments that OFG views as higher risk that may not be fully recognized through its quantitative models, such as auto loan portfolio credit trends and the evolution of risk ratings applied to the commercial loans and collateral changes in real estate portfolios. There are still many unknown variables, including the results of the government’s fiscal and monetary actions resulting from the effect of inflation and geopolitical tension.

As of June 30, 2024, the ACL decreased by $3.8 million compared to December 31, 2023. The provision for credit losses for the six-month period ended June 30, 2024, reflected adjustments of $26.4 million related to loan volume, $4.5 million from loss rate model and $2.9 million in specific reserves, offset by a $4.9 million release from economic model.

The net charge-offs for the six-month period ended June 30, 2024, amounted to $34.8 million, an increase of $18.1 million when compared to the same period of 2023. The increase is mainly due to $11.5 million from auto loans, $6.2 million from consumer loans and $1.2 million from commercial loans, mainly from higher loan volume. Net charge-offs for the six-month period ended June 30, 2024 include $3.5 million from retail commercial loans, mainly from previously and fully-reserved nonperforming paycheck protection program (“PPP”) loans.

The following tables present the activity in OFG’s allowance for credit losses by segment for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,371	$	7,627	$	27,453	$	76,316	$	148,767
(Recapture of) provision for credit losses	(1,984)		(1,280)		9,308		11,039		17,083
Charge-offs	(1,734)		(1)		(8,180)		(12,559)		(22,474)
Recoveries	156		540		851		5,926		7,473
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,133	$	6,638	$	7	$	18	$	7,796
Recapture of credit losses	(237)		(1,060)		(6)		(29)		(1,332)
Charge-offs	(265)		(29)		—		(6)		(300)
Recoveries	158		93		7		30		288
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301
	Six-Month Period Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	44,041	$	7,998	$	27,086	$	73,485	$	152,610
(Recapture of) provision for credit losses	(3,390)		(1,854)		16,963		22,117		33,836
Charge-offs	(7,050)		(65)		(16,161)		(26,777)		(50,053)
Recoveries	208		807		1,544		11,897		14,456
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,113	$	7,351	$	7	$	25	$	8,496
Recapture of credit losses	(374)		(2,328)		(29)		(85)		(2,816)
Charge-offs	(265)		(112)		—		(15)		(392)
Recoveries	315		731		30		88		1,164
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301

	Quarter Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,774	$	9,083	$	24,664	$	69,864	$	141,385
Provision for (recapture of) credit losses	14,089		(556)		4,517		(1,800)		16,250
Charge-offs	(3,496)		(191)		(5,518)		(9,169)		(18,374)
Recoveries	237		334		2,003		8,332		10,906
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,693	$	8,717	$	12	$	77	$	10,499
(Recapture of) provision for credit losses	(604)		(679)		78		(401)		(1,606)
Charge-offs	—		(1)		(124)		(34)		(159)
Recoveries	319		260		42		401		1,022
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923
	Six-Month Period Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	39,158	$	9,571	$	23,264	$	69,848	$	141,841
Provision for (recapture of) credit losses	13,754		(1,059)		10,491		1,096		24,282
Charge-offs	(4,871)		(392)		(10,958)		(18,648)		(34,869)
Recoveries	563		550		2,869		14,931		18,913
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,388	$	9,359	$	14	$	71	$	10,832
Provision for (recapture of) credit losses	1,316		(1,493)		278		(408)		(307)
Charge-offs	(2,104)		(76)		(337)		(121)		(2,638)
Recoveries	808		507		53		501		1,869
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923

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FORECLOSED REAL ESTATE

6 Months Ended

Jun. 30, 2024

Other Real Estate [Abstract]

FORECLOSED REAL ESTATE

FORECLOSED REAL ESTATE

The following table presents the activity related to foreclosed real estate for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	10,850	$	9,250	$	10,780	$	11,214
Additions	706		3,196		2,051		$	4,634
Sales	(5,104)		(3,072)		(6,930)		$	(6,653)
Decline in value	(131)		(272)		(301)		$	(400)
Other adjustments	205		1,537		926		$	1,844
Balance at end of period	$	6,526	$	10,639	$	6,526	$	10,639

XML

SERVICING ASSETS

6 Months Ended

Jun. 30, 2024

Transfers and Servicing [Abstract]

SERVICING ASSETS

SERVICING ASSETS

OFG periodically sells or securitizes mortgage loans while retaining the obligation to perform the servicing of such loans. In addition, OFG may purchase or assume the right to service mortgage loans originated by others. Whenever OFG undertakes an obligation to service a loan, management assesses whether a servicing asset and/or liability should be recognized. A servicing asset is recognized whenever the compensation for servicing is expected to more than adequately compensate OFG for servicing the loans. Likewise, a servicing liability would be recognized in the event that servicing fees to be received are not expected to adequately compensate OFG for its expected cost.

At June 30, 2024, the fair value of mortgage servicing rights was $49.8 million ($49.5 million — December 31, 2023).

The following table presents the changes in servicing rights measured using the fair value method for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Fair value at beginning of period	$	49,553	$	49,345	$	49,520	$	50,921
Servicing from mortgage securitization or asset transfers	303		791		830		1,365
Changes due to payments on loans	(732)		(1,085)		(1,652)		(2,150)
Changes in fair value due to changes in valuation model inputs or assumptions	665		915		1,091		(170)
Fair value at end of period	$	49,789	$	49,966	$	49,789	$	49,966

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of June 30, 2024 and 2023:

	Six-Month Period Ended June 30,
	2024	2023
Constant prepayment rate	1.49% - 11.45%	3.49% - 21.68%
Discount rate	10.00% - 15.50%	10.00% - 15.50%

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adverse changes in the above key assumptions were as follows:

	June 30,		December 31,
	2024		2023
	(In thousands)
Mortgage-related servicing asset
Carrying value of mortgage servicing asset	$	49,789	49,520
Weighted average life (in years)	7.3		7.3
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(924)	$	(928)
Decrease in fair value due to 20% adverse change	$	(1,812)	$	(1,821)
Discount rate
Decrease in fair value due to 10% adverse change	$	(2,021)	$	(1,999)
Decrease in fair value due to 20% adverse change	$	(3,898)	$	(3,856)

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption.

Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Servicing fee income is based on a contractual percentage of the outstanding principal balance and is recorded as income when earned and included in the mortgage banking activities section in the consolidated statement of operations. Servicing fees on mortgage loans for the quarters ended June 30, 2024 and 2023 totaled $4.5 million and $4.8 million, respectively. Servicing fees on mortgage loans for the six-month periods ended June 30, 2024 and 2023 totaled $8.9 million and $9.8 million, respectively.

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill by reportable business segment is included in the table below. Refer to “Note 22 – Business Segments” for additional information on OFG’s reportable business segments.

	Banking		Wealth Management		Treasury		Total
	(In thousands)
December 31, 2023	$	84,063	$	178	$	—	$	84,241
June 30, 2024	$	84,063	$	178	$	—	$	84,241

There were no changes in the carrying amount of goodwill during the quarters and six-month periods ended June 30, 2024 and 2023. There were no accumulated impairment losses at June 30, 2024 and December 31, 2023.

Relevant events and circumstances for evaluating whether it is more likely than not that the fair value of a reporting segment is less than its carrying amount may include macroeconomic conditions (such as deterioration of the Puerto Rico economy or the liquidity for Puerto Rico securities or loans secured by assets in Puerto Rico), adverse changes in legal factors or in the business climate, adverse actions by a regulator, unanticipated competition, the loss of key employees, natural disasters, or similar events.

OFG performed its annual impairment review of goodwill during the fourth quarter of 2023 using October 31, 2023 as the annual evaluation date and concluded that there was no impairment at December 31, 2023. During the six-month period ended June 30, 2024, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of the goodwill. Based on this assessment, no impairments were identified at June 30, 2024.

The following table reflects the components of other intangible assets subject to amortization at June 30, 2024 and December 31, 2023:

	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(In thousands)
June 30, 2024
Core deposit intangibles	$	41,507	$	27,923	$	13,584
Customer relationship intangibles	12,693		8,539		4,154
Total other intangible assets	$	54,200	$	36,462	$	17,738
December 31, 2023
Core deposit intangibles	$	41,507	$	25,659	$	15,848
Customer relationship intangibles	12,693		7,847		4,846
Total other intangible assets	$	54,200	$	33,506	$	20,694

In connection with previous acquisitions, OFG recorded core deposit intangibles representing the value of checking and savings deposits acquired. In addition, OFG recorded customer relationship intangibles representing the value of customer relationships acquired with its acquisitions of insurance agencies. During the six-month period ended June 30, 2024, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of other intangible assets. Based on this assessment, no impairments were identified at June 30, 2024.

Other intangible assets have a definite useful life. Amortization of other intangible assets for the quarters ended June 30, 2024 and 2023 was $1.5 million and $1.7 million, respectively. Amortization of other intangible assets for the six-month periods ended June 30, 2024 and 2023, was $3.0 million and $3.4 million, respectively.

The following table presents the estimated amortization of other intangible assets for each of the following periods.

Year Ending December 31,	(In thousands)
2024	5,913
2025	4,927
2026	3,942
2027	2,956
2028	1,971
Thereafter	985

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ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS

6 Months Ended

Jun. 30, 2024

Accrued Interest Receivable and Other Assets [Abstract]

ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS

ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS

Accrued interest receivable at June 30, 2024 and December 31, 2023 consists of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Loans	$	64,049	$	63,526
Investments	8,920		7,874
	$	72,969	$	71,400

Accrued interest receivable on loans that participated in the Hurricane Fiona and Covid-19 deferral programs amounted to $19.5 million at June 30, 2024, of which $18.7 million corresponded to loans in current status, and $20.2 million at December 31, 2023, of which $18.2 million corresponded to loans in current status. OFG estimates expected credit losses on accrued interest receivable for loans that participated in moratorium programs. An allowance has been established for loans with delinquency status in 30 to 89 days past due and is calculated by applying the corresponding loan projected loss factors to the accrued interest receivable balance. At June 30, 2024 and December 31, 2023, the ACL for accrued interest receivable for loans that participated in moratorium programs amounted to $92 thousand and $85 thousand, respectively, and is included in accrued interest receivable in the statement of financial condition.

Other assets at June 30, 2024 and December 31, 2023 consist of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Prepaid expenses	$	88,481	$	63,040
Other repossessed assets	5,713		4,032
Accounts receivable and other assets	56,760		47,859
	$	150,954	$	114,931

Prepaid expenses amounting to $88.5 million at June 30, 2024, include prepaid municipal, property and income taxes aggregating to $76.6 million. At December 31, 2023 prepaid expenses amounted to $63.0 million, including prepaid municipal, property and income taxes aggregating to $54.7 million.

Other repossessed assets totaled $5.7 million and $4.0 million at June 30, 2024 and December 31, 2023, respectively, and consist of repossessed automobiles, which are recorded at their net realizable value.

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DEPOSITS AND RELATED INTEREST

6 Months Ended

Jun. 30, 2024

Deposits and Related Interest [Abstract]

DEPOSITS AND RELATED INTEREST

DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of June 30, 2024 and December 31, 2023 consist of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Non-interest-bearing demand deposits	$	2,608,902	$	2,537,431
Interest-bearing savings and demand deposits	5,410,804		5,601,099
Retail certificates of deposit	1,142,257		1,083,316
Institutional certificates of deposit	442,869		378,143
Total core deposits	9,604,832		9,599,989
Brokered deposits	418		162,180
Total deposits	$	9,605,250	$	9,762,169

At June 30, 2024 and December 31, 2023, the aggregate amount of uninsured deposits was $4.979 billion (52% of total deposits) and $4.885 billion (50.0% of total deposits), respectively.

The weighted average interest rate of OFG’s deposits was 1.50% and 0.88%, respectively, at June 30, 2024 and December 31, 2023.

Interest expense for the quarters and six-month periods ended June 30, 2024 and 2023 was as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
					(In thousands)
Demand and savings deposits	$	26,682	$	10,423	$	52,748	$	19,092
Certificates of deposit	11,130		5,493		21,856		9,321
	$	37,812	$	15,916	$	74,604	$	28,413

At June 30, 2024 and December 31, 2023, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $867.3 million and $747.2 million, respectively.

At June 30, 2024 and December 31, 2023, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $1.577 billion and $1.616 billion, respectively. These public funds were collateralized with securities and commercial loans amounting to $1.679 billion and $1.645 billion at June 30, 2024 and December 31, 2023, respectively.

Excluding accrued interest of approximately $1.8 million and $3.0 million, the scheduled maturities of certificates of deposit at June 30, 2024 and December 31, 2023 are as follows:

June 30, 2024
	Period-end amount		Uninsured amount
	(In thousands)
Within one year:
Three months or less	$	312,747	$	137,864
Over 3 months through 6 months	227,691		95,415
Over 6 months through 1 year	590,451		250,814
	1,130,889		484,093
Over 1 through 2 years	308,181		93,103
Over 2 through 3 years	66,580		7,465
Over 3 through 4 years	38,804		1,699
Over 4 through 5 years	38,808		4,971
Over 5 years	527		—
	$	1,583,789	$	591,331
December 31, 2023
	Period-end amount		Uninsured amount
	(In thousands)
Within one year:
Three months or less	$	457,533	$	115,392
Over 3 months through 6 months	195,902		61,245
Over 6 months through 1 year	329,758		113,524
	983,193		290,161
Over 1 through 2 years	467,348		201,478
Over 2 through 3 years	94,450		13,971
Over 3 through 4 years	29,514		1,379
Over 4 through 5 years	45,575		4,665
Over 5 years	608		—
	$	1,620,688	$	511,654

The tables of scheduled maturities of certificates of deposits above includes brokered-deposits and individual retirement accounts.

The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $650 thousand and $564 thousand as of June 30, 2024 and December 31, 2023, respectively.

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BORROWINGS AND RELATED INTEREST

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

BORROWINGS AND RELATED INTEREST

BORROWINGS AND RELATED INTEREST

Advances from the Federal Home Loan Bank of New York

Advances are received from the FHLB under an agreement whereby OFG is required to maintain a minimum amount of qualifying collateral with a fair value of at least 110% of the outstanding advances. At both June 30, 2024 and December 31, 2023, these advances were secured by mortgage and commercial loans amounting to $1.0 billion. Also, at June 30, 2024 and December 31, 2023, OFG had an additional borrowing capacity with the FHLB of $451.6 million and $446.0 million, respectively. At June 30, 2024 and December 31, 2023, the weighted average remaining maturity of FHLB advances was 8 months and 1.2 years, respectively. The original terms of the outstanding advance at June 30, 2024 due on March 2025 was 2 years.

The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $741 thousand and $768 thousand at June 30, 2024 and December 31, 2023, respectively:

	June 30, 2024		December 31, 2023
	(In thousands)
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 4.52%	$	200,000	$	—
Long-term fixed-rate advance from FHLB, with a weighted average interest rate of 4.52%	—		200,000
	$	200,000	$	200,000

Advances from FHLB mature as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Due less than one year	$	200,000	$	—
Over one to three years	—		200,000
	$	200,000	$	200,000

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INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

OFG is subject to the provisions of the Puerto Rico Internal Revenue Code of 2011, as amended (the “PR Code”). The PR Code imposes a maximum statutory corporate tax rate of 37.5%. OFG has operations in the U.S. through its wholly owned subsidiaries OFG Ventures and OFG USA, which is a direct subsidiary of the Bank, and has two branches in the USVI. The United States subsidiaries are subject to federal income taxes at the corporate level, while the USVI branches are subject to federal income taxes under a mirror system and a 10% surtax included in the maximum tax rate. OFG USA is subject to North Carolina state taxes, and current investments in OFG Ventures are subject to state taxes in Missouri. In addition, OFG’s wholly owned subsidiary, OFG Reinsurance Ltd., is tax exempt in Grand Cayman.

As of June 30, 2024, OFG’s net deferred tax assets, net of a valuation allowance of $6.5 million, amounted to $4.1 million; and the net deferred tax liability, net of valuation allowance of $610 thousand, amounted to $33.9 million, reflecting the aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of OFG. As of December 31, 2023, OFG’s deferred tax asset, net of a valuation allowance of $7.0 million, amounted to $4.9 million; and net deferred tax liability, net of a valuation allowance of $569 thousand, amounted to $22.4 million, reflecting aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of OFG. The decrease in valuation allowance of $528 thousand was mainly related to OFG’s operations at the holding company level. In assessing the realizability of the deferred tax asset, management considers whether it is more likely than not that some portion or the entire deferred tax asset will not be realized. The ultimate realization of the deferred tax asset is dependent upon the generation of future income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future income, and tax planning strategies in making this assessment. Based upon the assessment of positive and negative evidence, the level of historical taxable income, projections for future taxable income over the periods in which the deferred tax asset are deductible, and provisions of certain closing agreements, management believes it is more likely than not that OFG will realize the benefits of

these deductible differences, net of the existing valuation allowances, at June 30, 2024. The amount of the deferred tax asset that is considered realizable could be reduced in the near term if there are changes in estimates of future taxable income.

OFG maintained an effective tax rate (“ETR”) lower than the statutory rate for the six-month periods ended June 30, 2024 and 2023 of 27.6% and 30.9%, respectively, the decrease is mainly related to exempt income, income subject to preferential tax treatment under the PR Code and a discrete tax windfall on stock options recognized during the first quarter of 2024 and discrete benefit mainly related to the purchase of tax credits during the second quarter of 2024. The expected ETR for 2024 is 29.2%.

OFG classifies unrecognized tax benefits in other liabilities. These gross unrecognized tax benefits would affect the ETR if realized. At June 30, 2024, the amount of unrecognized tax benefits was $970 thousand (December 31, 2023 - $936 thousand).

Income tax expense for the quarters ended June 30, 2024 and 2023 was $20.1 million and $21.6 million, respectively. Income tax expense for the six-month periods ended June 30, 2024 and 2023 was $38.4 million and $40.5 million, respectively.

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REGULATORY CAPITAL REQUIREMENTS

6 Months Ended

Jun. 30, 2024

Capital Disclosure [Abstract]

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS

Regulatory Capital Requirements

OFG (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and Puerto Rico banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on OFG’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, OFG and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. OFG and the Bank have elected to exclude accumulated comprehensive income related to both available for sale securities and derivative valuations from Common Equity Tier 1 Capital.

As of June 30, 2024 and December 31, 2023, OFG and the Bank met all capital adequacy requirements to which they are subject. As of June 30, 2024 and December 31, 2023, OFG and the Bank are “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the tables presented below.

OFG’s and the Bank’s actual capital amounts and ratios as of June 30, 2024 and December 31, 2023 were as follows:

	Actual				Minimum Capital Requirement (including capital conservation buffer)				Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
OFG Bancorp Ratios
As of June 30, 2024
Total capital to risk-weighted assets	$	1,330,474	15.54	%	$	898,963	10.50	%	$	856,155	10.00	%
Tier 1 capital to risk-weighted assets	$	1,223,031	14.29	%	$	727,732	8.50	%	$	684,924	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,223,031	14.29	%	$	599,308	7.00	%	$	556,501	6.50	%
Tier 1 capital to average total assets	$	1,223,031	10.86	%	$	450,325	4.00	%	$	562,906	5.00	%
As of December 31, 2023
Total capital to risk-weighted assets	$	1,278,537	15.37	%	$	873,369	10.50	%	$	831,780	10.00	%
Tier 1 capital to risk-weighted assets	$	1,174,205	14.12	%	$	707,013	8.50	%	$	665,424	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,174,205	14.12	%	$	582,246	7.00	%	$	540,657	6.50	%
Tier 1 capital to average total assets	$	1,174,205	11.03	%	$	425,911	4.00	%	$	532,389	5.00	%

	Actual				Minimum Capital Requirement (including capital conservation buffer)				Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of June 30, 2024
Total capital to risk-weighted assets	$	1,245,627	14.64	%	$	893,092	10.50	%	$	850,564	10.00	%
Tier 1 capital to risk-weighted assets	$	1,138,874	13.39	%	$	722,979	8.50	%	$	680,451	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,138,874	13.39	%	$	595,395	7.00	%	$	552,866	6.50	%
Tier 1 capital to average total assets	$	1,138,874	10.22	%	$	445,681	4.00	%	$	557,101	5.00	%
As of December 31, 2023
Total capital to risk-weighted assets	$	1,179,164	14.27	%	$	867,797	10.50	%	$	826,474	10.00	%
Tier 1 capital to risk-weighted assets	$	1,075,487	13.01	%	$	702,503	8.50	%	$	661,179	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,075,487	13.01	%	$	578,532	7.00	%	$	537,208	6.50	%
Tier 1 capital to average total assets	$	1,075,487	10.20	%	$	421,660	4.00	%	$	527,075	5.00	%

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STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

STOCKHOLDERS’ EQUITY

STOCKHOLDERS’ EQUITY

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

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ACCUMULATED OTHER COMPREHENSIVE LOSS

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss, net of income taxes, as of June 30, 2024 and December 31, 2023 consisted of:

	June 30, 2024		December 31, 2023
	(In thousands)
Unrealized loss on securities available-for-sale	$	(101,810)	$	(78,497)
Income tax effect of unrealized loss on securities available-for-sale	15,316		11,484
Net unrealized loss on securities available-for-sale	(86,494)		(67,013)
Accumulated other comprehensive loss, net of income taxes	$	(86,494)	$	(67,013)

The following table presents changes in accumulated other comprehensive loss by component, net of taxes, for the quarters and six-month periods ended June 30, 2024 and 2023:

	Net unrealized loss on securities available-for-sale
	Quarter Ended June 30, 2024		Six-Month Period Ended June 30, 2024
	(In thousands)
Beginning balance	$	(81,731)	$	(67,013)
Other comprehensive loss before reclassifications	(4,765)		(19,474)
Amounts reclassified out of accumulated other comprehensive loss	2		(7)
Other comprehensive loss	(4,763)		(19,481)
Ending balance	$	(86,494)	$	(86,494)

	Quarter Ended June 30, 2023
	Net unrealized loss on securities available-for-sale		Net unrealized gain on cash flow hedges		Accumulated other comprehensive loss
	(In thousands)
Beginning balance	$	(78,512)	$	172	$	(78,340)
Other comprehensive loss before reclassifications	(9,980)		(2,525)		(12,505)
Amounts reclassified out of accumulated other comprehensive loss	(1,147)		2,428		1,281
Other comprehensive loss	(11,127)		(97)		(11,224)
Ending balance	$	(89,639)	$	75	$	(89,564)
	Six-Month Period Ended June 30, 2023
	Net unrealized loss on securities available-for-sale		Net unrealized gain on cash flow hedges		Accumulated other comprehensive loss
	(In thousands)
Beginning balance	$	(93,663)	$	254	$	(93,409)
Other comprehensive income (loss) before reclassifications	5,169		(3,198)		1,971
Amounts reclassified out of other comprehensive income (loss)	(1,145)		3,019		1,874
Other comprehensive income (loss)	4,024		(179)		3,845
Ending balance	$	(89,639)	$	75	$	(89,564)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and six-month periods ended June 30, 2024 and 2023:

	Amount reclassified out of accumulated other comprehensive loss								Affected Line Item in Consolidated Statement of Operations
	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	—	$	2,428	$	—	$	3,019	Net interest expense
Available-for-sale securities:
Loss on sale of investments	—		(1,149)		(7)		(1,149)		Net loss on sale of securities
Tax effect from changes in tax rates	2		2		—		4		Income tax expense
	$	2	$	1,281	$	(7)	$	1,874

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EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

The calculation of earnings per common share for the quarters and six-month periods ended June 30, 2024 and 2023 is as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands, except per share data)
Income available to common shareholders	$	51,131	$	44,173	$	100,823	$	90,402
Average common shares outstanding	46,952		47,266		47,024		47,432
Effect of dilutive securities:
Average potential common shares-options	179		224		220		284
Total weighted average common shares outstanding and equivalents	47,131		47,490		47,244		47,716
Earnings per common share - basic	$	1.09	$	0.93	$	2.14	$	1.91
Earnings per common share - diluted	$	1.08	$	0.93	$	2.13	$	1.89

For the quarters ended June 30, 2024 and 2023, weighted-average restricted stock units with an anti-dilutive effect on earnings per share not included in the calculation amounted to zero and 147,878, respectively. For the six-month periods ended June 30, 2024 and 2023, weighted-average restricted stock units with an anti-dilutive effect on earnings per share not included in the calculation amounted to zero and 128,681, respectively.

During the first quarter of 2024, OFG increased its quarterly common stock cash dividend to $0.25 per share from $0.22 per share at December 31, 2023.

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GUARANTEES

6 Months Ended

Jun. 30, 2024

Guarantees [Abstract]

GUARANTEES

GUARANTEES

At June 30, 2024 and December 31, 2023, the notional amount of the obligations undertaken in issuing the guarantees under standby letters of credit represented a liability of $25.0 million and $24.0 million, respectively.

OFG has a liability for residential mortgage loans sold subject to credit recourse pursuant to FHLMC’s, GNMA’s, and FNMA’s residential mortgage loan sales and securitization programs. At June 30, 2024 and December 31, 2023, the unpaid principal balance of residential mortgage loans sold subject to credit recourse under the residential mortgage loan sales programs was $94.5 million and $98.7 million, respectively. The estimated losses to be absorbed under the credit recourse arrangements were recorded as a liability when the credit recourse was assumed and are updated on a quarterly basis. At June 30, 2024, OFG's liability for estimated credit losses related to loans sold with credit recourse amounted to $59 thousand

(December 31, 2023– $102 thousand). On May 1, 2023, OFG and a third-party servicer terminated a subservicing agreement by mutual agreement. Pursuant to such termination, the third-party servicer assumed the direct servicing of the subserviced loans pursuant to FNMA’s residential mortgage loans sales program, thereby relieving OFG of its corresponding recourse obligation under that program.

The following table shows the changes in OFG’s liability for estimated losses from credit recourse agreements, included in the consolidated statements of financial condition during the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	73	$	141	$	102	$	147
Net recoveries (charge-offs/terminations)	(14)		9		(43)		3
Balance at end of period	$	59	$	150	$	59	$	150

The expected loss, which represents the amount expected to be lost on a given loan, considers the probability of default and loss severity. The probability of default represents the probability that a loan in good standing would become 120 days delinquent, in which case OFG is obligated to repurchase the loan.

If a borrower defaults, pursuant to the credit recourse provided, OFG is required to repurchase the loan or reimburse the third-party investor for the incurred loss. The maximum potential amount of future payments that OFG would be required to make under the recourse arrangements is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. During the quarters ended June 30, 2024 and 2023, OFG repurchased $106 thousand and $545 thousand, respectively, in mortgage loans. During the six-month periods ended June 30, 2024 and 2023, OFG repurchased $240 thousand and $610 thousand, respectively, in such mortgage loans. If a borrower defaults, OFG has rights to the underlying collateral securing the mortgage loan. OFG suffers losses on these mortgage loans when the proceeds from a foreclosure sale of the collateral property are less than the outstanding principal balance of the loan, any uncollected interest advanced, and the costs of holding and disposing the related property.

When OFG sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. OFG’s mortgage operations division groups conforming mortgage loans into pools that are exchanged for FNMA and GNMA mortgage-backed securities, which are generally sold to private investors, or are sold directly to FNMA or other private investors for cash. As required under such mortgage-backed securities programs, quality review procedures are performed by OFG to ensure that asset guideline qualifications are met. To the extent the loans do not meet specified characteristics, OFG may be required to repurchase such loans or indemnify for losses and bear any subsequent loss related to the loans. During the quarter ended June 30, 2024, OFG repurchased $915 thousand (June 30, 2023 –$4.2 million) of unpaid principal balance in mortgage loans, excluding mortgage loans subject to such credit recourse provision. During the six-month period ended June 30, 2024, OFG repurchased $1.9 million (June 30, 2023- $6.4 million). At June 30, 2024 and December 31, 2023, OFG had a $275 thousand and a $405 thousand liability, respectively, for the estimated credit losses related to these loans.

During the quarters ended June 30, 2024 and 2023, OFG recognized $14 thousand and $141 thousand in gains, net of reserves, respectively, from the repurchase of residential mortgage loans sold subject to credit recourse, and $21 thousand in gains and $372 thousand in losses, respectively, from the repurchase of residential mortgage loans as a result of breaches of customary representations and warranties. During the six-month periods ended June 30, 2024 and 2023 OFG recognized $43 thousand and $147 thousand, respectively, in gains from the repurchase of residential mortgage loans sold subject to credit recourse, and $77 thousand and $121 thousand, respectively, in losses from the repurchase of residential mortgage loans as a result of breaches of customary representations and warranties.

At June 30, 2024 OFG serviced $5.6 billion (December 31, 2023 - $5.6 billion) in mortgage loans for third parties. Servicing agreements relating to the mortgage-backed securities programs of FNMA and GNMA, and to mortgage loans sold or serviced to certain other investors, including FHLMC, require OFG to advance funds to make scheduled payments of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. OFG generally recovers funds advanced pursuant to these arrangements from the mortgage owner, from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA/VA loans, under the applicable FHA and VA insurance and guarantee programs. However, in the meantime, OFG must absorb the cost of the funds it advances during the time the advance is outstanding. OFG must also bear the costs of attempting to collect on delinquent and defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the foreclosure proceedings and OFG would not receive any future servicing income with respect to that loan. At June 30, 2024, the outstanding balance of funds advanced by OFG under such mortgage loan servicing agreements was approximately $3.7 million (December 31, 2023 - $4.2 million). To the extent the mortgage loans underlying OFG’s servicing portfolio experience increased delinquencies, OFG would be required to dedicate additional cash resources to comply with its obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments

In the normal course of business, OFG becomes a party to credit-related financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby and commercial letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated statements of financial condition. The contract or notional amount of those instruments reflects the extent of OFG’s involvement in particular types of financial instruments.

OFG’s exposure to credit losses in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit, including commitments under credit card arrangements, and commercial letters of credit is represented by the contractual notional amounts of those instruments, which do not necessarily represent the amounts potentially subject to risk. In addition, the measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are identified. OFG uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Credit-related financial instruments at June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Commitments to extend credit	$	1,424,489	$	1,255,695
Commercial letters of credit	1,384		119

Commitments to extend credit represent agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. OFG evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by OFG upon the extension of credit, is based on management’s credit evaluation of the counterparty.

At June 30, 2024 and December 31, 2023, commitments to extend credit consisted mainly of undisbursed available amounts on commercial lines of credit, construction loans, and revolving credit card arrangements. Since many of the unused commitments are expected to expire unused or be only partially used, the total amount of these unused commitments does not necessarily represent future cash requirements.

Commercial letters of credit are issued or confirmed to guarantee payment of customers’ payables or receivables in short-term international trade transactions. Generally, drafts will be drawn when the underlying transaction is consummated as intended. However, the short-term nature of this instrument serves to mitigate the risk associated with these contracts.

The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at June 30, 2024 and December 31, 2023, is as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Standby letters of credit and financial guarantees	$	25,028	$	23,970
Loans sold with recourse	94,456		98,685

Standby letters of credit and financial guarantees are written conditional commitments issued by OFG to guarantee the payment and/or performance of a customer to a third party (“beneficiary”). If the customer fails to comply with the agreement, the beneficiary may draw on the standby letter of credit or financial guarantee as a remedy. The amount of credit risk involved in issuing letters of credit in the event of non-performance is the face amount of the letter of credit or financial guarantee. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The amount of collateral obtained, if it is deemed necessary by OFG upon extension of credit, is based on management’s credit evaluation of the customer.

At June 30, 2024 and December 31, 2023, the ACL for off-balance sheet credit exposures corresponding to commitments to extend credit and standby letters of credit amounted to $833 thousand and $1.2 million, respectively, and is included in other liabilities in the statement of financial condition.

At both June 30, 2024 and December 31, 2023, OFG maintained other non-credit commitments amounting to $18.9 million, primarily for the acquisition of equity securities. In addition, as we continue to transform OFG with a focus on simplification and building a culture of excellence and customer service, we continue to invest in technology. Some of our technology investments require us to continuously upgrade our systems. Others require us to focus our technology on investments that drive our strategy, namely digital, data analytics, cloud migration, cyber security, and our sales and service capabilities. At June 30, 2024 and December 31, 2023, OFG had commitments for capital expenditures in technology amounting to $7.2 million and $7.8 million, respectively.

Contingencies

OFG and its subsidiaries are defendants in a number of legal proceedings incidental to their business. In the ordinary course of business, OFG and its subsidiaries are also subject to governmental and regulatory examinations. Certain subsidiaries of OFG, including the Bank (and its subsidiary, OIB), Oriental Financial Services and Oriental Insurance, are subject to regulation by various U.S., Puerto Rico and other regulators.

OFG seeks to resolve all arbitration, litigation and regulatory matters in the manner management believes is in the best interests of OFG and its shareholders, and contests allegations of liability or wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

In accordance with applicable accounting guidance, OFG establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, OFG, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, OFG will establish an accrued liability and record a corresponding amount of expense. At June 30, 2024 and December 31, 2023, accrued liability for legal contingencies amounted to $561 thousand and $817 thousand, respectively. OFG continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. OFG also has an accrued liability for potential losses, operational errors, loss on theft not covered by insurance premiums, uncollectible receivables, among other transactions, amounting to $1.5 million and $1.4 million, respectively, as of June 30, 2024 and December 31, 2023.

Subject to the accounting and disclosure framework under the provisions of ASC 450, it is the opinion of OFG’s management, based on current knowledge and after taking into account its current legal accruals, that the eventual outcome of all matters would not be likely to have a material adverse effect on the consolidated statements of financial condition of OFG. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on OFG’s consolidated results of operations or cash flows in particular quarterly or annual periods. OFG has evaluated all arbitration, litigation and regulatory matters where the likelihood of a potential loss is deemed reasonably possible. OFG has determined that the estimate of the reasonably possible loss is not significant.

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OPERATING LEASES

6 Months Ended

Jun. 30, 2024

Lessee Disclosure [Abstract]

OPERATING LEASES

OPERATING LEASES

Substantially all leases in which OFG is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2038. OFG’s leases do not contain residual value guarantees or material variable lease payments. All leases are classified as operating leases and are included on the consolidated statements of financial condition as a right-of-use asset and a corresponding lease liability. OFG leases to others certain space in its principal offices for terms extending through 2026; all are operating leases.

Operating Lease Cost

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023		Statement of Operations Classification
	(In thousands)
Lease costs	$	2,261	$	2,608	$	4,914	$	5,208	Occupancy and equipment
Variable lease costs	370		347		781		687		Occupancy and equipment
Short-term lease costs	91		148		141		305		Occupancy and equipment
Lease income	(29)		(17)		(51)		(54)		Occupancy and equipment
Total lease costs	$	2,693	$	3,086	$	5,785	$	6,146

Operating Lease Assets and Liabilities

	June 30, 2024		December 31, 2023		Statement of Financial Condition Classification
	(In thousands)
Right-of-use assets	$	20,298	$	21,725	Operating lease right-of-use assets
Lease Liabilities	$	22,605	$	24,029	Operating leases liabilities

	June 30, 2024		December 31, 2023
	(In thousands)
Weighted-average remaining lease term	5.0 years		5.1 years
Weighted-average discount rate	7.5	%	7.0	%

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024 were as follows:

	Minimum Rent
As of June 30, 2024	(In thousands)
2024	$	4,093
2025	6,676
2026	4,620
2027	3,793
2028	2,980
Thereafter	5,184
Total lease payments	$	27,346
Less imputed interest	4,741
Present value of lease liabilities	$	22,605

OFG, as lessor, leases and subleases real property to tenants under operating leases. As of June 30, 2024, no material lease concessions have been granted to tenants. As of June 30, 2024, OFG, as lessee, has not requested any lease concessions.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

OFG follows the fair value measurement framework under GAAP.

Fair Value Measurement

The fair value measurement framework defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This framework also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Money market investments

The fair value of money market investments is based on the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

Investment securities

The fair value of investment securities is based on valuations obtained from an independent pricing provider, ICE Data Pricing (formerly known as IDC) (“ICE”). ICE is a well-recognized pricing company and an established leader in financial information. Such securities are classified as Level 1 or Level 2, depending on the basis for determining fair value. At June 30, 2024, there was one security held-to-maturity, carried at amortized cost with no ACL established, classified as Level 3.

Servicing assets

Servicing assets do not trade in an active market with readily observable prices. Servicing assets are priced using a discounted cash flow model. The valuation model considers servicing fees, portfolio characteristics, prepayment assumptions, delinquency rates, late charges, other ancillary revenues, cost to service, and other economic factors. Due to the unobservable nature of certain valuation inputs, the servicing rights are classified as Level 3.

Foreclosed real estate

Foreclosed real estate includes real estate properties securing residential mortgage and commercial loans. The fair value of foreclosed real estate may be determined using an external appraisal, broker price opinion or an internal valuation. These foreclosed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

Other repossessed assets

Other repossessed assets are mainly composed of repossessed automobiles. The fair value of the repossessed automobiles may be determined using internal valuation and an external appraisal. These repossessed assets are classified as Level 3 given certain internal adjustments that may be made to external appraisals.

Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below:

	June 30, 2024
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	200,658	$	1,895,648	$	—	$	2,096,306
Trading securities	—		16		—		16
Money market investments	5,083		—		—		5,083
Servicing assets	—		—		49,789		49,789
	$	205,741	$	1,895,664	$	49,789	$	2,151,194
Non-recurring fair value measurements:
Collateral dependent loans	$	—	$	—	$	13,772	$	13,772
Foreclosed real estate	—		—		6,526		6,526
Other repossessed assets	—		—		5,713		5,713
Mortgage loans held for sale	—		—		8,375		8,375
Other loans held for sale	—		—		12,361		12,361
	$	—	$	—	$	46,747	$	46,747

	December 31, 2023
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	296,799	$	1,802,465	$	—	$	2,099,264
Trading securities	—		13		—		13
Money market investments	4,623		—		—		4,623
Servicing assets	—		—		49,520		49,520
	$	301,422	$	1,802,478	$	49,520	$	2,153,420
Non-recurring fair value measurements:
Collateral dependent loans	$	—	$	—	$	8,027	$	8,027
Foreclosed real estate	—		—		10,780		10,780
Other repossessed assets	—		—		4,032		4,032
Other loans held for sale	$	—	$	—	$	28,345	28,345
	$	—	$	—	$	51,184	$	51,184

The fair value information included in the tables above for non-recurring fair value measurements is not as of period-end. Instead, it is as of the date that the fair value measurement was recorded closest to June 30, 2024 and December 31, 2023, excludes nonrecurring fair value measurements of assets no longer outstanding as of the reporting date.

The tables below present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for June 30, 2024 and 2023:

Level 3 Instruments Only

	Quarter Ended June 30,
	2024		2023
	Servicing Assets		Other debt securities available for sale		Servicing Assets		Total
	(In thousands)
Balance at beginning period	$	49,553	$	413	$	49,345	$	49,758
New instruments acquired	303		—		791		791
Principal repayments and amortization	(732)		—		(1,085)		(1,085)
Gains included in earnings	665		—		915		915
Gains included in other comprehensive income	—		7		—		7
Balance at end of period	$	49,789	$	420	$	49,966	$	50,386
	Six-Month Period Ended June 30,
	2024		2023
	Servicing Assets		Other debt securities available for sale		Servicing Assets		Total
	(In thousands)
Balance at beginning of period	$	49,520	$	406	$	50,921	$	51,327
New instruments acquired	830		—		1,365		1,365
Principal repayments and amortization	(1,652)		—		(2,150)		(2,150)
Gains included in earnings	1,091		—		(170)		(170)
Gains included in other comprehensive income	—		14		—		14
Balance at end of period	$	49,789	$	420	$	49,966	$	50,386

Servicing assets gains included in earnings during the quarters and six-month periods ended June 30, 2024 and 2023 were included as mortgage servicing activities in the consolidated statements of operations. For more information on the qualitative information about Level 3 fair value measurements, see Note 7 – Servicing Assets.

There were no liabilities measured at fair value on a recurring basis and non-recurring basis at June 30, 2024 and December 31, 2023. The table below presents quantitative information for all assets measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at June 30, 2024 and December 31, 2023:

	June 30, 2024
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(In thousands)
Servicing assets	$	49,789	Cash flow valuation	Constant prepayment rate	1.49% - 11.45%	6.07	%
				Discount rate	10.00% - 15.50%	11.45	%
Collateral dependent loans	$	13,772	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	17.67	%
Foreclosed real estate	$	6,526	Fair value of property or collateral	Appraised value less disposition costs	10.00% - 33.00%	10.95	%
Other repossessed assets	$	5,713	Fair value of property or collateral	Estimated net realizable value less disposition costs	36.00% - 71.00%	55.48	%
Mortgage loans held for sale	$	8,375	Market prices	Pricing and execution whole loan	92.89% - 101.33%	98.25	%
Other loans held for sale	$	12,361	Bids or sales contract prices	Estimated market value	100.00% - 104.47%	100.48	%

	December 31, 2023
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(In thousands)
Servicing assets	$	49,520	Cash flow valuation	Constant prepayment rate	1.35% - 17.34%	6.12	%
				Discount rate	10.00% - 15.50%	11.45	%
Collateral dependent loans	$	8,027	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	17.00	%
Foreclosed real estate	$	10,780	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	12.67	%
Other repossessed assets	$	4,032	Fair value of property or collateral	Estimated net realizable value less disposition costs	31.00% - 77.00%	57.72	%
Other loans held for sale	$	28,345	Bids or sales contract prices	Estimated market value	52.00% - 103.20%	84.80%

Information about Sensitivity to Changes in Significant Unobservable Inputs

Servicing assets – The significant unobservable inputs used in the fair value measurement of OFG’s servicing assets are constant prepayment rates and discount rates. Changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or offset the sensitivities. Mortgage banking activities, a component of total banking and financial service revenue in the consolidated statements of operations, include the changes from period to period in the fair value of the mortgage loan servicing rights, which may result from changes in the valuation model inputs or assumptions (principally reflecting changes in discount rates and prepayment speed assumptions) and other changes, including changes due to collection/realization of expected cash flows.

Fair Value of Financial Instruments

The information about the estimated fair value of financial instruments required by GAAP is presented hereunder. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of OFG.

The estimated fair value is subjective in nature, involves uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could affect these fair value estimates. The fair value estimates do not take into consideration the value of future business and the value of assets and liabilities that are not financial instruments. Other significant tangible and intangible assets that are not considered financial instruments include the value of long-term customer relationships of retail deposits, and premises and equipment.

The estimated fair value and carrying value of OFG’s financial instruments at June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024				December 31, 2023
	Fair Value		Carrying Value		Fair Value		Carrying Value
	(In thousands)
Financial Assets:
Level 1
Cash and cash equivalents	$	740,429	$	740,429	$	748,173	$	748,173
Investment securities available-for-sale	$	200,658	$	200,658	$	296,799	$	296,799
Level 2
Financial Assets:
Trading securities	$	16	$	16	$	13	$	13
Investment securities available-for-sale	$	1,895,648	$	1,895,648	$	1,802,465	$	1,802,465
Investment securities held-to-maturity	$	244,365	$	303,621	$	455,709	$	514,024
Federal Home Loan Bank (FHLB) stock	$	15,280	$	15,280	$	14,488	$	14,488
Equity securities	$	25,794	$	25,794	$	23,981	$	23,981
Level 3
Financial Assets:
Investment securities held-to-maturity	$	35,072	$	35,000	$	35,055	$	35,000
Total loans (including loans held-for-sale)	$	7,410,349	$	7,503,142	$	7,282,214	$	7,401,618
Accrued interest receivable	$	72,969	$	72,969	$	71,400	$	71,400
Servicing assets	$	49,789	$	49,789	$	49,520	$	49,520
Accounts receivable and other assets	$	56,760	$	56,760	$	47,859	$	47,589
Financial Liabilities:
Deposits	$	9,622,547	$	9,605,250	$	9,767,068	$	9,762,169
Advances from FHLB	$	198,937	$	200,741	$	199,184	$	200,768
Other borrowings	$	—	$	—	$	2	$	2
Accrued expenses and other liabilities	$	140,410	$	140,410	$	115,985	$	115,985

The following methods and assumptions were used to estimate the fair values of significant financial instruments at June 30, 2024 and December 31, 2023:

•Cash and cash equivalents (including money market investments and time deposits with other banks), accrued interest receivable, accounts receivable and other assets, accrued expenses and other liabilities, and other borrowings have been valued at the carrying amounts reflected in the consolidated statements of financial condition as these are reasonable estimates of fair value given the short-term nature of the instruments.

•Investments in FHLB stock are valued at their redemption value.

•The fair value of investment securities, including trading securities, is based on quoted market prices, when available or prices provided from contracted pricing providers, or market prices provided by recognized broker-dealers. If listed prices or quotes are not available, fair value is based upon externally developed models that use both observable and unobservable inputs depending on the market activity of the instrument. The estimated fair value of the AFICA bond in other debt securities held-to-maturity is determined by using a detailed discounted cash flow valuation model to calculate the present value of projected future cash flows. The credit losses are recorded using the ACL methodology. This involves comparing the amortized cost of the securities with the fair value of the expected future cash flows. Several assumptions requiring a high degree of judgment include the selection of market discount rates, the determination of current credit spread, and the estimation of both the probability of default and loss given default rates. Equity securities do not have readily available fair values and are measured at cost, less any impairment.

•The fair value of servicing asset is estimated by using a cash flow valuation model, which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions.

•The fair value of the loan portfolio (including loans held-for-sale and non-performing loans) is based on the exit market price, which is estimated by segregating by loan type, such as mortgage, commercial, consumer and auto. The fair value is calculated by discounting contractual cash flows. The discount rate used in such calculation considers a capital adjustment as well as other premiums for systemic risk, servicing costs, modeling and uncertainty risk, and impairment uncertainty.

•The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is based on the discounted value of the contractual cash flows, using estimated current market discount rates for deposits of similar remaining maturities.

•The fair value of long-term borrowings, including advances from FHLB, is based on the discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates.

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BANKING AND FINANCIAL SERVICE REVENUES

6 Months Ended

Jun. 30, 2024

Banking and Thrift, Interest [Abstract]

BANKING AND FINANCIAL SERVICE REVENUES

BANKING AND FINANCIAL SERVICE REVENUES

The following table presents the major categories of banking and financial service revenues for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)				(In thousands)
Banking service revenues:
Electronic banking fees	$	14,718	$	13,603	$	28,408	$	26,969
Checking accounts fees	1,894		2,184		4,061		4,404
Savings accounts fees	307		327		615		660
Credit life commissions	73		119		77		224
Branch service commissions	275		324		621		746
Servicing and other loan fees	1,325		702		1,893		1,584
International fees	184		179		356		362
Miscellaneous income	5		2		9		4
Total banking service revenues	18,781		17,440		36,040		34,953
Wealth management revenue:
Insurance income	4,214		4,169		7,988		7,539
Broker fees	2,009		1,797		4,100		3,580
Trust fees	2,217		2,228		4,459		4,152
Other fees	—		—		—		43
Total wealth management revenue	8,440		8,194		16,547		15,314
Mortgage banking activities:
Net servicing fees	4,101		4,650		8,052		7,493
Net gains on sale of mortgage loans and valuation	719		790		1,372		1,559
Net gain (loss) on repurchased loans and other	44		(215)		133		71
Total mortgage banking activities	4,864		5,225		9,557		9,123
Total banking and financial service revenues	$	32,085	$	30,859	$	62,144	$	59,390

OFG recognizes the revenue from banking services, wealth management and mortgage banking based on the nature and timing of revenue streams from contracts with customers:

Banking Service Revenues

Electronic banking fees are credit and debit card processing services, use of the Bank’s ATMs by non-customers, debit card interchange income and service charges on deposit accounts. Revenue is recorded once the contracted service has been provided.

Service charges on checking and saving accounts is recognized as consumer periodic maintenance revenue once the service is rendered, while overdraft and late charges revenues are recorded after the contracted service has been provided.

Other income as credit life and branch service commissions, servicing and other loan fees, international fees, and miscellaneous income recognized as banking services revenue are out of the scope of ASC 606 – Revenue from Contracts with Customers.

Wealth Management Revenue

Insurance income from commissions generated in the sale of insurance policies issued by unaffiliated insurance companies and sale of annuities are recorded once the sale has been completed. Reinsurance revenue is recorded based on earned premium confirmed by the fronting insurance company. Contingent insurance commissions are recorded once the paying insurance companies confirm the amounts earned.

Broker fees consist of two categories:

•Sales commissions generated by advisers for their clients’ purchases and sales of securities and other investment products, which are collected once the stand-alone transactions are completed at trade date or as earned, and managed account fees which are fees charged to advisers’ clients’ accounts on OFG’s corporate advisory platform. These revenues do not cover future services, as a result there is no need to allocate the amount received to any other service.

•Fees for providing distribution services related to mutual funds, net of compensation paid to a provider of such services, as well as trailer fees (also known as 12b-1 fees). These fees are considered variable and are recognized over time, as the uncertainty of the fees to be received is resolved as the net asset value of the mutual fund is determined and investor activity occurs. Fees do not cover future services, as a result there is no need to allocate the amount received to any other service.

Trust fees are revenues related to fiduciary services provided to 401K retirement plans, IRA trusts, and retirement plans. These generally include payment for trustee services, distribution services, custodial services of plan assets, due diligence services, and investment advisory services. Fees are billed based on services contracted. Negotiated fees are detailed in the contract. Fees collected in advance are amortized over the term of the contract. Fees are generally collected on an annual or quarterly basis once the administrative service has been completed. Fees do not include future services.

Mortgage Banking Activities

Mortgage banking activities such as servicing fees, gain on sale of mortgage loans and valuation, and gain (loss) on repurchased loans and other are out of the scope of ASC 606.

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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
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	118,027		4		29,294		147,325		—		147,325
Provision for (recapture of) credit losses	15,589		—		(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 revenue	415		—		—		415		(415)		—
Intersegment expenses	—		(243)		(172)		(415)		415		—
Income before income taxes	40,070		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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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 income	233,173		13		58,241		291,427		—		291,427
Provision for (recapture of) credit losses	30,814		—		(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 revenue	839		—		—		839		(839)		—
Intersegment expenses	—		(510)		(329)		(839)		839		—
Income before income taxes	$	77,490	$	5,387	$	56,300	$	139,177	$	—	$	139,177
Income tax expense	38,262		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
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	124,175		6		15,463		139,644		—		139,644
Provision for credit losses	15,052		—		(8)		15,044		—		15,044
Non-interest income	23,354		7,868		(1,149)		30,073		—		30,073
Non-interest expenses	(83,876)		(4,138)		(874)		(88,888)		—		(88,888)
Intersegment revenue	575		—		—		575		(575)		—
Intersegment expenses	—		(380)		(195)		(575)		575		—
Income before income taxes	49,176		3,356		13,253		65,785		—		65,785
Income tax expense	21,577		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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Nature of Operations and Basis of Presentation

Nature of Operations

OFG is a publicly-owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. OFG operates through various subsidiaries including, a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer and investment adviser, Oriental Financial Services LLC (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”), a captive reinsurance company, OFG Reinsurance Ltd (“OFG Reinsurance”), and OFG Ventures LLC (“OFG Ventures”), which holds investments. Through these subsidiaries and their respective divisions, OFG provides a wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory, and securities brokerage services, as well as corporate and individual trust services.

The Bank has a wholly-owned operating subsidiary, OFG USA LLC (“OFG USA”), which is a commercial lender organized in Delaware. In addition, Oriental International Bank Inc. (“OIB”), a wholly-owned subsidiary of the Bank, and Oriental Overseas, a division of the Bank, are international banking entities licensed pursuant to the International Banking Center Regulatory Act of Puerto Rico, as amended. OIB and Oriental Overseas offer the Bank certain Puerto Rico tax advantages. Their activities are limited under Puerto Rico law to persons located in Puerto Rico with assets/liabilities located outside of Puerto Rico. In March 2024, the Bank organized OBPEF LLC (“OBPEF”), as a wholly-owned subsidiary of the Bank and a private equity fund under the Puerto Rico Incentives Code, as amended, which objective is to provide financing to eligible borrowers, whether in the form of senior or subordinated debt, to support the economic development of Puerto Rico.

Basis of Presentation

The accompanying unaudited consolidated financial statements of OFG have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, these consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of OFG on a consolidated basis, and all such adjustments are of a normal recurring nature. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in OFG’s annual report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). Operating results for the six-month period ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. OFG evaluated subsequent events through the filing date of this report with the SEC and has recorded or disclosed those material events or transactions as described within the accompanying consolidated financial statements and notes. Material estimates that are particularly susceptible to significant change in the near term relate mainly to the determination of the allowance for credit losses.

New Accounting Updates Not Yet Adopted

New Accounting Updates Not Yet Adopted

Codification Improvements—Amendments to Remove References to the Concepts Statements. In March 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-02, which removes various references to concept statements from the FASB Accounting Standards Codification. The ASU intends to simplify the Accounting Standards Codification and distinguish between non-authoritative and authoritative guidance. For public business entities, the amendments will be effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The amendments can be applied prospectively or retrospectively. We will adopt this guidance when it becomes effective, in the first quarter of 2025 and on a prospective basis, and the impact on our financial statements and disclosures is not expected to be material.

Compensation—Stock Compensation. In March 2024, the FASB issued ASU 2024-01 to improve GAAP by adding an illustrative example to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar awards should be accounted for in accordance with Topic 718. The ASU 2024-01 is intended to reduce complexity and diversity in practice. For public business entities, the amendments will be effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is

permitted. Although OFG is currently evaluating the impact that the adoption of this guidance will have on its financial statements and disclosures, we do not expect the impact to be material.

Segment Reporting—Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07 to enhance segment reporting by expanding the breadth and frequency of segment disclosures required for public entities. The amendments in this ASU will allow registrants to disclose multiple measures of segment profit or loss and it also clarifies that single reportable segment entities must apply Topic 280 in its entirety. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We will adopt this guidance when it becomes effective in the annual period of 2024 on a retrospective basis to all periods presented in the financial statements, and the impact on our financial statements and disclosures is not expected to be material.

Income Taxes—Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09 to enhance income tax disclosures and requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The ASU’s two primary enhancements will require further disaggregation for existing disclosures for the effective tax rate reconciliation and income taxes paid. More specifically, the amendments will require entities to disclose: a tabular effective tax rate reconciliation, broken out into specific categories with certain reconciling items above a 5% threshold further broken out by nature and jurisdiction; and income taxes paid (net of refunds received), broken out between federal, state and foreign, and net amounts paid to an individual jurisdiction that exceed 5% of the total. The amendments in this update are effective for annual periods beginning after December 15, 2024. Entities are permitted to early adopt these amendments. The amendments should be applied prospectively, but retrospective application is permitted. We will adopt this guidance when it becomes effective, in the annual period of 2025 on a prospective basis, and the impact on our financial statements and disclosures is not expected to be material.

The Enhancement and Standardization of Climate-Related Disclosures for Investors. On March 6, 2024, the SEC issued a final rule under SEC Release No. 33-11275 that requires registrants to provide climate disclosures in their annual reports and registration statements. The rule includes disclosure concerning the use of carbon offsets or renewable energy credits or certificates if their use is a material component of the registrant’s plans to achieve its disclosed climate-related targets or goals, and certain disclosures about Scope 1 and/or Scope 2 greenhouse gas (“GHG”) emissions, if material. It also requires disclosures of amounts related to the effects of severe weather events and other natural conditions. The disclosure requirements will apply to OFG's fiscal year beginning January 1, 2025. We will adopt this rule when it becomes effective. OFG is currently evaluating the final rule, but the impact on our financial statements and disclosures is not expected to be material.

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INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities

The amortized cost, gross unrealized gains and losses, fair value, weighted average yield and contractual maturities of the securities owned by OFG at June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due from 1 to 5 years	$	8,933	$	—	$	421	$	8,512	1.98	%
Due from 5 to 10 years	36,742		—		2,517		34,225		1.97	%
Due after 10 years	1,512,171		5,261		69,008		1,448,424		4.28	%
Total FNMA and FHLMC certificates	1,557,846		5,261		71,946		1,491,161		4.21	%
GNMA certificates
Due from 1 to 5 years	7,965		—		319		7,646		1.72	%
Due from 5 to 10 years	13,552		7		883		12,676		2.23	%
Due after 10 years	409,828		5,017		38,662		376,183		3.54	%
Total GNMA certificates	431,345		5,024		39,864		396,505		3.47	%
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years	6,896		—		274		6,622		1.78	%
Due after 10 years	790		—		11		779		5.06	%
Total CMOs issued by US government-sponsored agencies	7,686		—		285		7,401		2.11	%
Total mortgage-backed securities	1,996,877		10,285		112,095		1,895,067		4.04	%
Investment securities
US Treasury securities
Due less than 1 year	200,656		2		—		200,658		5.41	%
Other debt securities
Due less than 1 year	500		—		—		500		3.25	%
Due from 1 to 5 years	83		—		2		81		2.97	%
Total other debt securities	583		—		2		581		3.21	%
Total investment securities	201,239		2		2		201,239		5.41	%
Total securities available for sale	$	2,198,116	$	10,287	$	112,097	$	2,096,306	4.17	%
	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years	$	303,621	$	—	$	59,256	$	244,365	1.72	%
Investment securities
Other debt securities
Due from 1 to 5 years	35,000		72		—		35,072		6.33	%
Total securities held to maturity	$	338,621	$	72	$	59,256	$	279,437	2.20	%

	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Available-for-sale
Mortgage-backed securities
FNMA and FHLMC certificates
Due from 1 to 5 years	$	6,972	—		$	311	$	6,661	1.76	%
Due from 5 to 10 years	45,835		—		2,767		43,068		2.00	%
Due after 10 years	1,411,327		8,989		54,100		1,366,216		4.11	%
Total FNMA and FHLMC certificates	1,464,134		8,989		57,178		1,415,945		4.03	%
GNMA certificates
Due less than 1 year	5		—		—		5		1.31	%
Due from 1 to 5 years	8,851		—		351		8,500		1.71	%
Due from 5 to 10 years	17,113		16		955		16,174		2.19	%
Due after 10 years	380,306		4,419		33,110		351,615		3.38	%
Total GNMA certificates	406,275		4,435		34,416		376,294		3.30	%
CMOs issued by US government-sponsored agencies
Due from 1 to 5 years	9,071		—		364		8,707		1.78	%
Due from 5 to 10 years	54		—		—		54		2.14	%
Due after 10 years	861		—		12		849		5.07	%
Total CMOs issued by US government-sponsored agencies	9,986		—		376		9,610		2.06	%
Total mortgage-backed securities	1,880,395		13,424		91,970		1,801,849		3.86	%
Investment securities
US Treasury securities
Due less than 1 year	296,747		52		—		296,799		5.40	%
Other debt securities
Due less than 1 year	500		—		—		500		3.25	%
Due from 1 to 5 years	119		—		3		116		2.97	%
Total other debt securities	619		—		3		616		3.20	%
Total investment securities	297,366		52		3		297,415		5.39	%
Total securities available for sale	$	2,177,761	$	13,476	$	91,973	$	2,099,264	4.07	%
	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Weighted Average Yield
	(In thousands)
Held-to-maturity
Mortgage-backed securities
FNMA and FHLMC certificates
Due after 10 years	$	314,710	$	—	$	56,767	$	257,943	1.72	%
Investment securities
US Treasury securities
Due less than 1 year	199,314		—		1,548		197,766		3.33	%

Other debt securities
Due from 1 to 5 years	35,000		55		—		35,055		6.36	%
Total securities held to maturity	$	549,024	$	55	$	58,315	$	490,764	2.60	%

Schedule of Gross Realized Gains and Losses by Category

	Six-Month Period Ended June 30, 2024
Description	Sale Price		Book Value at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of investment securities available-for-sale
Investment securities
US Treasury securities	$	149,406	$	149,413	$	—	$	7

	Six-Month Period Ended June 30, 2023
Description	Sale Price		Book Value at Sale		Gross Gains		Gross Losses
	(In thousands)
Sale of investment securities available-for-sale
Investment securities
US Treasury securities	$	202,133	$	203,282	$	—	$	1,149

Schedule of Unrealized Gains and Losses by Category

The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale at June 30, 2024 and December 31, 2023, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:

	June 30, 2024
	12 months or more
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	737,230	$	67,814	$	669,416
GNMA certificates	267,882		39,458		228,424
CMOs issued by US Government-sponsored agencies	7,686		285		7,401
Other debt securities	83		2		81
	$	1,012,881	$	107,559	$	905,322
	June 30, 2024
	Less than 12 months
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	197,672	$	4,132	$	193,540
GNMA certificates	37,603		406		37,197
	$	235,275	$	4,538	$	230,737
	June 30, 2024
	Total
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	934,902	$	71,946	$	862,956
GNMA certificates	305,485		39,864		265,621
CMOs issued by US Government-sponsored agencies	7,686		285		7,401
Other debt securities	83		2		81
	$	1,248,156	$	112,097	$	1,136,059

The unrealized losses on OFG’s investment in federal agency mortgage-backed securities were caused by market volatility related to interest rate increases. OFG purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government or by a government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price that is less than the amortized cost basis of OFG’s investments. OFG does not intend to sell the investments, and it is not more likely than not that OFG will be required to sell the investments before recovery of their amortized cost basis.

	December 31, 2023
	12 months or more
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	731,334	$	56,847	$	674,487
GNMA certificates	275,669		34,364		241,305
CMOs issued by US Government-sponsored agencies	9,986		376		9,610
Other debt securities	119		3		116
	$	1,017,108	$	91,590	$	925,518

	December 31, 2023
	Less than 12 months
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	106,235	$	331	$	105,904
GNMA certificates	7,864		52		7,812
	$	114,099	$	383	$	113,716

	December 31, 2023
	Total
	Amortized Cost		Unrealized Loss		Fair Value
	(In thousands)
Securities available-for-sale
FNMA and FHLMC certificates	$	837,569	$	57,178	$	780,391
GNMA certificates	283,533		34,416		249,117
CMOs issued by US Government-sponsored agencies	9,986		376		9,610
Other debt securities	119		3		116
	$	1,131,207	$	91,973	$	1,039,234

XML

LOANS (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Loan Portfolio

The composition of the amortized cost basis of OFG’s loan portfolio at June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024						December 31, 2023
	Non-PCD		PCD		Total		Non-PCD		PCD		Total
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	1,182,145	$	114,516	$	1,296,661	$	1,095,207	$	120,988	$	1,216,195
Other commercial and industrial	1,109,608		14,068		1,123,676		1,091,021		14,459		1,105,480
	2,291,753		128,584		2,420,337		2,186,228		135,447		2,321,675
Commercial US	662,026		—		662,026		755,228		—		755,228
Total commercial loans	2,953,779		128,584		3,082,363		2,941,456		135,447		3,076,903
Mortgage loans	600,031		885,096		1,485,127		629,247		933,362		1,562,609
Consumer loans:
Personal loans	594,271		253		594,524		568,358		264		568,622
Credit lines	10,648		352		11,000		10,926		288		11,214
Credit cards	38,382		—		38,382		40,314		—		40,314
Overdraft	271		—		271		296		—		296
	643,572		605		644,177		619,894		552		620,446
Auto loans	2,427,089		951		2,428,040		2,272,530		1,891		2,274,421
	6,624,471		1,015,236		7,639,707		6,463,127		1,071,252		7,534,379
Allowance for credit losses	(150,849)		(6,452)		(157,301)		(152,610)		(8,496)		(161,106)
Total loans held for investment, net	6,473,622		1,008,784		7,482,406		6,310,517		1,062,756		7,373,273
Mortgage loans held-for-sale	8,375		—		8,375		—		—		—
Other loans held-for-sale	12,361		—		12,361		28,345		—		28,345
Total loans held-for-sale	20,736		—		20,736		28,345		—		28,345
Total loans, net	$	6,494,358	$	1,008,784	$	7,503,142	$	6,338,862	$	1,062,756	$	7,401,618

Schedule of Aging of Recorded Investment in Gross Loans

	June 30, 2024
	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	3,533	$	2,189	$	6,032	$	11,754	$	1,170,391	$	1,182,145	$	—
Other commercial and industrial	704		313		3,890		4,907		1,104,701		1,109,608		—
	4,237		2,502		9,922		16,661		2,275,092		2,291,753		—
Commercial US	1,042		—		—		1,042		660,984		662,026		—
Total commercial loans	5,279		2,502		9,922		17,703		2,936,076		2,953,779		—
Mortgage loans	5,442		7,325		29,684		42,451		557,580		600,031		1,682
Consumer loans:
Personal loans	6,904		4,766		2,569		14,239		580,032		594,271		—
Credit lines	476		70		12		558		10,090		10,648		—
Credit cards	542		281		722		1,545		36,837		38,382		—
Overdraft	63		—		—		63		208		271		—
	7,985		5,117		3,303		16,405		627,167		643,572		—
Auto loans	111,291		41,526		16,689		169,506		2,257,583		2,427,089		—
Total loans	$	129,997	$	56,470	$	59,598	$	246,065	$	6,378,406	$	6,624,471	$	1,682

	December 31, 2023
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Loans 90+ Days Past Due and Still Accruing
	(In thousands)
Commercial PR:
Commercial secured by real estate	$	1,585	$	411	$	5,671	$	7,667	$	1,087,540	$	1,095,207	$	—
Other commercial and industrial	1,366		291		4,974		6,631		1,084,390		1,091,021		—
	2,951		702		10,645		14,298		2,171,930		2,186,228		—
Commercial US	—		—		—		—		755,228		755,228		—
Total commercial loans	2,951		702		10,645		14,298		2,927,158		2,941,456		—
Mortgage loans	6,107		9,596		31,557		47,260		581,987		629,247		2,478
Consumer loans:
Personal loans	6,115		4,041		2,755		12,911		555,447		568,358		—
Credit lines	137		35		35		207		10,719		10,926		—
Credit cards	657		280		586		1,523		38,791		40,314		—
Overdraft	87		14		—		101		195		296		—
	6,996		4,370		3,376		14,742		605,152		619,894		—
Auto loans	101,610		46,071		19,056		166,737		2,105,793		2,272,530		—
Total loans	$	117,664	$	60,739	$	64,634	$	243,037	$	6,220,090	$	6,463,127	$	2,478

Schedule of Investment in Loans on Non-Accrual Status

The following table presents the amortized cost basis of loans held for investment on non-accrual status as of June 30, 2024 and December 31, 2023:

	June 30, 2024						December 31, 2023
	Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total		Non-accrual with Allowance for Credit Loss		Non-accrual with no Allowance for Credit Loss		Total
	(In thousands)						(In thousands)
Non-PCD:
Commercial PR:
Commercial secured by real estate	$	4,789	$	12,865	$	17,654	$	3,553	$	7,929	$	11,482
Other commercial and industrial	1,657		2,663		4,320		4,560		830		5,390
	6,446		15,528		21,974		8,113		8,759		16,872
Commercial US	12,503		—		12,503		19,224		—		19,224
Total Commercial loans	18,949		15,528		34,477		27,337		8,759		36,096
Mortgage loans	9,396		3,312		12,708		10,339		3,858		14,197
Consumer loans:
Personal loans	2,564		32		2,596		2,741		14		2,755
Personal lines of credit	12		—		12		35		—		35
Credit cards	721		—		721		586		—		586
	3,297		32		3,329		3,362		14		3,376
Auto loans	16,684		5		16,689		19,051		5		19,056
Total	$	48,326	$	18,877	$	67,203	$	60,089	$	12,636	$	72,725
PCD:
Commercial PR:
Commercial secured by real estate	$	569	$	3,468	$	4,037	$	3,060	$	2,417	$	5,477
Other commercial and industrial	—		711		711		—		947		947
	569		4,179		4,748		3,060		3,364		6,424
Mortgage loans	244		—		244		250		—		250
Total	$	813	$	4,179	$	4,992	$	3,310	$	3,364	$	6,674
Total non-accrual loans	$	49,139	$	23,056	$	72,195	$	63,399	$	16,000	$	79,399

Schedule of Troubled Debt Restructurings

The following tables present the amortized cost basis as of June 30, 2024 and 2023 of loans held for investment that were modified during the quarters and six-month periods ended June 30, 2024 and 2023, disaggregated by class of financing receivable and type of concession granted.

	Quarter Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Mortgage loans	$	—	—	%	$	595	0.04	%	$	—	—	%	$	92	0.01	%	$	—	—	%
Auto loans	32		—	%	—		—	%	—		—	%	—		—	%	$	—	—	%
Total	$	32			$	595			$	—			$	92			$	—

	Six-Month Period Ended June 30, 2024
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Mortgage loans	$	—	—	%	$	687	0.05	%	$	—	—	%	$	92	0.01	%	$	—	—	%
Consumer:
Personal loans	26		—	%	7		—	%	—		—	%	—		—	%	—		—	%
Auto loans	32		—	%	—		—	%	—		—	%	—		—	%	—		—	%
Total	$	58			$	694			$	—			$	92			—

	Quarter Ended June 30, 2023
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	—	—	%	$	5,341	0.48	%	$	—	—	%	$	—	—	%	$	—	—	%
Other commercial and industrial	—		—	%	147		0.01	%	—		—	%	—		—	%	$	—	—	%
	—		—	%	5,488		0.20	%	—		—	%	—		—	%	—		—	%
Commercial US	—		—	%	—		—	%	—		—	%	—		—	%	4,260		0.64	%
Total Commercial loans	$	—	—	%	5,488		0.20	%	—		—	%	—		—	%	4,260		0.64	%
Mortgage loans	—		—	%	1,827		0.11	%	—		—	%	417		0.03	%	$	431	0.03	%
Consumer:
Personal loans	—		—	%	—		—	%	—		—	%	58		0.01	%	$	—	—	%
Total	$	—			$	7,315			$	—			$	475			$	4,691

	Six-Month Period Ended June 30, 2023
	Interest Rate Reduction				Term Extension				Principal Forbearance / Forgiveness				Combination of Term Extension and Interest Rate Reduction				Combination of Term Extension and Principal Forgiveness / Forbearance
	Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable
	(Dollars in thousands)
Commercial PR:
Commercial secured by real estate	$	—	—	%	$	5,810	0.52	%	$	—	—	%	$	—	—	%	$	—	—	%
Other commercial and industrial	—		—	%	147		0.01	%	—		—	%	—		—	%	$	—	—	%
	—		—	%	5,957		0.21	%	—		—	%	—		—	%	—		—	%
Commercial US	—		—	%	—		—	%	—		—	%	—		—	%	4,260		0.64	%
Total Commercial loans	$	—	—	%	5,957		0.21	%	—		—	%	—		—	%	4,260		0.64	%
Mortgage loans	$	—	—	%	4,318		0.27	%	$	100	0.01	%	602		0.02	%	431		0.03	%
Consumer:
Personal loans	—		—	%	—		—	%	—		—	%	84		0.02	%	—		—	%
Total	$	—			$	10,275			$	100			$	686			$	4,691

The following tables present the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarters and six-month periods ended June 30, 2024 and 2023. The financial effect of the combined modifications is presented separately by type of modification.

	Quarter Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Mortgage loans	0.38	%	178	—
Auto loans	3.00	%	0	—

	Six-Month Period Ended June 30, 2024
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Mortgage loans	0.38	%	176	—
Consumer loans:
Personal loans	5.00	%	18	—
Auto loans	3.00	%	0	—

	Quarter Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	—	%	25	$	—
Commercial US	—	%	31	2,973
			56	$	2,973
Mortgage loans	1.86	%	195	20
Consumer loans:
Personal loans	1.25	%	110	—

	Six-Month Period Ended June 30, 2023
	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (In months)	Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)
Commercial PR:
Commercial loans secured by real estate	—	%	24	$	—
Commercial US	—	%	31	$	2,973
	—	%	56	$	2,973
Mortgage loans	2.04	%	206	$	24
Consumer loans:
Personal loans	2.50	%	81	—

Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted

The following table presents the amortized cost basis as of June 30, 2024 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the prior twelve-months.

	Twelve-Months Ended June 30, 2024
	Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
	Interest Rate Reduction		Term Extension		Principal Forgiveness/Forbearance		Combination - Term Extension and Interest Rate Reduction		Total
	(In thousands)
Mortgage loans	$	—	$	108	$	—	$	—	$	108

The following table presents the amortized cost basis as of June 30, 2023 of loans held for investment that had a payment default subsequent to being granted a modification to borrowers experiencing financial difficulty in the six-month period ended June 30, 2023.

	Six-Months Ended June 30, 2023
	Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
	Interest Rate Reduction		Term Extension		Principal Forgiveness/Forbearance		Combination - Term Extension and Interest Rate Reduction		Total
	(In thousands)
Mortgage loans	$	—	$	415	$	—	$	—	$	415

Financing Receivable, Modified, Past Due

The following table presents the payment status of loans that have been modified in the twelve-months period ended June 30, 2024 and in the six-month period ended June 30, 2023 that were granted to borrowers experiencing financial difficulty.

	June 30, 2024
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial loans:
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	136	$	136
Other commercial and industrial	—		—		—		—		626		626
	—		—		—		—		762		762
Commercial US	—		—		—		—		2,711		2,711
	—		—		—		—		3,473		3,473
Mortgage loans	315		29		108		452		1,983		2,435
Consumer loans:
Personal loans	—		—		—		—		70		70
Auto loans	—		—		—		—		138		138
Total	$	315	$	29	$	108	$	452	$	5,664	$	6,116

	June 30, 2023
	30-59 Day Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	—	$	—	$	—	$	—	$	5,810	$	5,810
Other commercial and industrial	—		—		—		—		147		147
Commercial US	—		—		—		—		4,260		4,260
	—		—		—		—		10,217		10,217
Mortgage loans	—		122		415		537		4,914		5,451
Consumer loans:
Personal loans	—		—		—		—		84		84
Total	$	—	$	122	$	415	$	537	$	15,215	$	15,752

Schedule of the Amortized Cost of Collateral-Dependent Loans Held for Investment

The table below presents the amortized cost of commercial collateral-dependent loans held for investment at June 30, 2024 and December 31, 2023, by class of loans.

	June 30,		December 31,
	2024		2023
	(In thousands)
Commercial PR:
Commercial loans secured by real estate	$	13,772	$	8,027

Schedule of Credit Quality Indicators of Loans

As of June 30, 2024, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans, and current year-to-date period gross charge-offs by year of origination is as follows:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	110,497	$	221,993	$	223,863	$	193,443	$	109,474	$	208,712	$	61,271	$	1,129,253
Special Mention	—		—		7,298		6,375		4,702		13,031		113		31,519
Substandard	—		745		454		1,400		1,206		15,940		1,628		21,373
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	110,497		222,738		231,615		201,218		115,382		237,683		63,012		1,182,145
Commercial secured by real estate:
YTD gross charge-offs	—		—		—		—		—		7		—		7
Other commercial and industrial:
Loan grade:
Pass	74,157		282,784		71,959		54,624		29,347		17,785		524,959		1,055,615
Special Mention	—		5		2,695		45,033		2		147		1,060		48,942
Substandard	—		142		313		914		226		1,023		2,433		5,051
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	74,157		282,931		74,967		100,571		29,575		18,955		528,452		1,109,608
Other commercial and industrial:
YTD gross charge-offs	114		50		237		3,307		—		11		—		3,719
Commercial US:
Loan grade:
Pass	35,163		131,419		49,463		59,225		29,467		29,215		285,887		619,839
Special Mention	—		—		—		—		—		—		9,841		9,841
Substandard	6,532		6,730		2,728		7,613		—		5,698		635		29,936
Doubtful	2,410		—		—		—		—		—		—		2,410
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	44,105		138,149		52,191		66,838		29,467		34,913		296,363		662,026
Commercial US:
YTD gross charge-offs	—		—		392		1,749		—		1,183		—		3,324
Total commercial loans	$	228,759	$	643,818	$	358,773	$	368,627	$	174,424	$	291,551	$	887,827	$	2,953,779
Total YTD gross charge-offs	$	114	$	50	$	629	$	5,056	$	—	$	1,201	$	—	$	7,050

As of December 31, 2023, and based on the most recent analysis performed, the risk category of loans held for investment subject to risk rating by class of loans is as follows:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Commercial PR:
Commercial secured by real estate:
Loan grade:
Pass	$	224,598	$	216,205	$	195,884	$	120,489	$	80,671	$	131,016	$	65,873	$	1,034,736
Special Mention	—		1,772		6,554		5,057		15,676		12,500		153		41,712
Substandard	—		459		1,386		1,109		2,615		11,939		1,236		18,744
Doubtful	—		—		—		—		—		15		—		15
Loss	—		—		—		—		—		—		—		—
Total commercial secured by real estate	224,598		218,436		203,824		126,655		98,962		155,470		67,262		1,095,207
Commercial secured by real estate:
YTD gross charge-offs	—		—		265		—		94		820		—		1,179
Other commercial and industrial:
Loan grade:
Pass	284,615		99,522		113,760		37,665		7,438		14,836		527,008		1,084,844
Special Mention	8		2,953		—		—		51		100		—		3,112
Substandard	3		473		826		259		935		186		383		3,065
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total other commercial and industrial:	284,626		102,948		114,586		37,924		8,424		15,122		527,391		1,091,021
Other commercial and industrial:
YTD gross charge-offs	—		124		1,095		89		9		1,180		—		2,497
Commercial US:
Loan grade:
Pass	142,222		63,885		69,233		31,206		28,202		8,085		358,757		701,590
Special Mention	—		7,803		—		—		—		—		20,913		28,716
Substandard	10,832		—		—		—		—		5,699		8,391		24,922
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Commercial US:	153,054		71,688		69,233		31,206		28,202		13,784		388,061		755,228
Commercial US:
YTD gross charge-offs	33		1,156		642		47		—		8,637		—		10,515
Total commercial loans	$	662,278	$	393,072	$	387,643	$	195,785	$	135,588	$	184,376	$	982,714	$	2,941,456
Total YTD gross charge-offs	$	33	$	1,280	$	2,002	$	136	$	103	$	10,637	$	—	$	14,191

The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of June 30, 2024:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Mortgage loans:
Payment performance:
Performing	$	10,304	$	17,149	$	19,296	$	22,321	$	15,094	$	498,542	$	—	$	582,706
Nonperforming	—		650		—		172		105		16,398		—		17,325
Total mortgage loans:	10,304		17,799		19,296		22,493		15,199		514,940		—		600,031
Mortgage loans:
YTD gross charge-offs	—		—		—		—		—		65		—		65
Consumer loans:
Personal loans:
Payment performance:
Performing	140,402		223,895		146,898		52,589		14,925		12,966		—		591,675
Nonperforming	69		820		1,105		416		76		110		—		2,596
Total personal loans	140,471		224,715		148,003		53,005		15,001		13,076		—		594,271
Personal loans:
YTD gross charge-offs	56		4,355		6,759		2,036		425		735		—		14,366
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		10,636		10,636
Nonperforming	—		—		—		—		—		—		12		12
Total credit lines	—		—		—		—		—		—		10,648		10,648
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		88		88
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		37,661		37,661
Nonperforming	—		—		—		—		—		—		721		721
Total credit cards	—		—		—		—		—		—		38,382		38,382
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		1,165		1,165
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		271		271
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		271		271
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		542		542
Total consumer loans	140,471		224,715		148,003		53,005		15,001		13,076		49,301		643,572
Total consumer loans YTD gross charge-offs	56		4,355		6,759		2,036		425		735		1,795		16,161
Total mortgage and consumer loans	$	150,775	$	242,514	$	167,299	$	75,498	$	30,200	$	528,016	$	49,301	$	1,243,603
Total mortgage and consumer loans YTD gross charge-offs	$	56	$	4,355	$	6,759	$	2,036	$	425	$	800	$	1,795	$	16,226

The following table presents the amortized cost in mortgage and consumer loans held for investment based on payment activity as of December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Mortgage loans:
Payment performance:
Performing	$	24,623	$	19,722	$	23,303	$	15,821	$	14,589	$	511,182	$	—	$	609,240
Nonperforming	$	—	—		181		108		479		19,239		—		20,007
Total mortgage loans:	24,623		19,722		23,484		15,929		15,068		530,421		—		629,247
Mortgage loans:
YTD gross charge-offs	$	—	4		—		—		—		755		—		759
Consumer loans:
Personal loans:
Payment performance:
Performing	270,883		186,612		68,133		19,185		14,460		6,330		—		$	565,603
Nonperforming	503		1,588		304		193		66		101		—		2,755
Total personal loans	271,386		188,200		68,437		19,378		14,526		6,431		—		568,358
Personal loans:
YTD gross charge-offs	1,748		10,512		4,661		830		1,384		731		—		19,866
Credit lines:
Payment performance:
Performing	—		—		—		—		—		—		10,891		$	10,891
Nonperforming	—		—		—		—		—		—		35		35
Total credit lines	—		—		—		—		—		—		10,926		10,926
Credit lines:
YTD gross charge-offs	—		—		—		—		—		—		419		419
Credit cards:
Payment performance:
Performing	—		—		—		—		—		—		39,728		$	39,728
Nonperforming	—		—		—		—		—		—		586		586
Total credit cards	—		—		—		—		—		—		40,314		40,314
Credit cards:
YTD gross charge-offs	—		—		—		—		—		—		2,825		2,825
Overdrafts:
Payment performance:
Performing	—		—		—		—		—		—		296		$	296
Nonperforming	—		—		—		—		—		—		—		—
Total overdrafts	—		—		—		—		—		—		296		296
Overdrafts:
YTD gross charge-offs	—		—		—		—		—		—		545		545
Total consumer loans	271,383		188,200		68,437		19,378		14,526		6,431		51,536		619,894
Total consumer loans YTD gross charge-offs	1,748		10,512		4,661		830		1,384		731		3,789		23,655
Total mortgage and consumer loans	$	296,009	$	207,922	$	91,921	$	35,307	$	29,594	$	536,852	$	51,536	$	1,249,141
Total mortgage and consumer loans YTD gross charge-offs	$	1,748	$	10,516	$	4,661	$	830	$	1,384	$	1,486	$	3,789	$	24,414

The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of June 30, 2024:

	Term Loans Amortized Cost Basis by Origination Year												Total
	2024		2023		2022		2021		2020		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	72,253		193,855		178,546		106,187		48,537		56,594		655,972
661-699	86,699		148,429		88,989		45,869		20,872		22,658		413,516
700+	265,909		443,723		282,292		157,960		84,776		98,252		1,332,912
No FICO	2,901		7,107		6,117		4,014		1,759		2,791		24,689
Total auto loans	$	427,762	$	793,114	$	555,944	$	314,030	$	155,944	$	180,295	$	2,427,089
Auto loans:
YTD gross charge-offs	$	137	$	9,196	$	9,310	$	3,889	$	1,784	$	2,461	$	26,777

The following table presents the amortized cost in auto loans held for investment based on their most recent FICO score as of December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year												Total
	2023		2022		2021		2020		2019		Prior
	(In thousands)
Auto loans:
FICO score:
1-660	170,639		190,743		118,821		57,087		41,124		38,570		616,984
661-699	169,430		110,260		58,166		25,886		18,253		16,137		398,132
700+	474,005		323,514		183,286		103,886		88,929		58,779		1,232,399
No FICO	6,203		6,537		4,592		2,200		3,886		1,597		25,015
Total auto loans	$	820,277	$	631,054	$	364,865	$	189,059	$	152,192	$	115,083	$	2,272,530
Auto loans:
YTD gross charge-offs	$	4,090	$	18,142	$	10,894	$	4,008	$	3,380	$	3,250	$	43,764

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ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2024

Credit Loss [Abstract]

Schedule of Gross Loan and Allowance for Credit Losses

The following tables present the activity in OFG’s allowance for credit losses by segment for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,371	$	7,627	$	27,453	$	76,316	$	148,767
(Recapture of) provision for credit losses	(1,984)		(1,280)		9,308		11,039		17,083
Charge-offs	(1,734)		(1)		(8,180)		(12,559)		(22,474)
Recoveries	156		540		851		5,926		7,473
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,133	$	6,638	$	7	$	18	$	7,796
Recapture of credit losses	(237)		(1,060)		(6)		(29)		(1,332)
Charge-offs	(265)		(29)		—		(6)		(300)
Recoveries	158		93		7		30		288
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301
	Six-Month Period Ended June 30, 2024
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	44,041	$	7,998	$	27,086	$	73,485	$	152,610
(Recapture of) provision for credit losses	(3,390)		(1,854)		16,963		22,117		33,836
Charge-offs	(7,050)		(65)		(16,161)		(26,777)		(50,053)
Recoveries	208		807		1,544		11,897		14,456
Balance at end of period	$	33,809	$	6,886	$	29,432	$	80,722	$	150,849
PCD:
Balance at beginning of period	$	1,113	$	7,351	$	7	$	25	$	8,496
Recapture of credit losses	(374)		(2,328)		(29)		(85)		(2,816)
Charge-offs	(265)		(112)		—		(15)		(392)
Recoveries	315		731		30		88		1,164
Balance at end of period	$	789	$	5,642	$	8	$	13	$	6,452
Total allowance for credit losses at end of period	$	34,598	$	12,528	$	29,440	$	80,735	$	157,301

	Quarter Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	37,774	$	9,083	$	24,664	$	69,864	$	141,385
Provision for (recapture of) credit losses	14,089		(556)		4,517		(1,800)		16,250
Charge-offs	(3,496)		(191)		(5,518)		(9,169)		(18,374)
Recoveries	237		334		2,003		8,332		10,906
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,693	$	8,717	$	12	$	77	$	10,499
(Recapture of) provision for credit losses	(604)		(679)		78		(401)		(1,606)
Charge-offs	—		(1)		(124)		(34)		(159)
Recoveries	319		260		42		401		1,022
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923
	Six-Month Period Ended June 30, 2023
	Commercial		Mortgage		Consumer		Auto		Total
	(In thousands)
Non-PCD:
Balance at beginning of period	$	39,158	$	9,571	$	23,264	$	69,848	$	141,841
Provision for (recapture of) credit losses	13,754		(1,059)		10,491		1,096		24,282
Charge-offs	(4,871)		(392)		(10,958)		(18,648)		(34,869)
Recoveries	563		550		2,869		14,931		18,913
Balance at end of period	$	48,604	$	8,670	$	25,666	$	67,227	$	150,167
PCD:
Balance at beginning of period	$	1,388	$	9,359	$	14	$	71	$	10,832
Provision for (recapture of) credit losses	1,316		(1,493)		278		(408)		(307)
Charge-offs	(2,104)		(76)		(337)		(121)		(2,638)
Recoveries	808		507		53		501		1,869
Balance at end of period	$	1,408	$	8,297	$	8	$	43	$	9,756
Total allowance for credit losses at end of period	$	50,012	$	16,967	$	25,674	$	67,270	$	159,923

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FORECLOSED REAL ESTATE (Tables)

6 Months Ended

Jun. 30, 2024

Other Real Estate [Abstract]

Schedule of Foreclosed Real Estate Rollforward

The following table presents the activity related to foreclosed real estate for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	10,850	$	9,250	$	10,780	$	11,214
Additions	706		3,196		2,051		$	4,634
Sales	(5,104)		(3,072)		(6,930)		$	(6,653)
Decline in value	(131)		(272)		(301)		$	(400)
Other adjustments	205		1,537		926		$	1,844
Balance at end of period	$	6,526	$	10,639	$	6,526	$	10,639

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SERVICING ASSETS (Tables)

6 Months Ended

Jun. 30, 2024

Transfers and Servicing [Abstract]

Schedule of Changes in Serving Rights at Fair Value

The following table presents the changes in servicing rights measured using the fair value method for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Fair value at beginning of period	$	49,553	$	49,345	$	49,520	$	50,921
Servicing from mortgage securitization or asset transfers	303		791		830		1,365
Changes due to payments on loans	(732)		(1,085)		(1,652)		(2,150)
Changes in fair value due to changes in valuation model inputs or assumptions	665		915		1,091		(170)
Fair value at end of period	$	49,789	$	49,966	$	49,789	$	49,966

Schedule of Key Economic Assumptions

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of June 30, 2024 and 2023:

	Six-Month Period Ended June 30,
	2024	2023
Constant prepayment rate	1.49% - 11.45%	3.49% - 21.68%
Discount rate	10.00% - 15.50%	10.00% - 15.50%

Schedule of Sensitivity of Current Fair Value of Servicing Assets

The sensitivity of the current fair value of servicing assets to immediate 10 percent and 20 percent adverse changes in the above key assumptions were as follows:

	June 30,		December 31,
	2024		2023
	(In thousands)
Mortgage-related servicing asset
Carrying value of mortgage servicing asset	$	49,789	49,520
Weighted average life (in years)	7.3		7.3
Constant prepayment rate
Decrease in fair value due to 10% adverse change	$	(924)	$	(928)
Decrease in fair value due to 20% adverse change	$	(1,812)	$	(1,821)
Discount rate
Decrease in fair value due to 10% adverse change	$	(2,021)	$	(1,999)
Decrease in fair value due to 20% adverse change	$	(3,898)	$	(3,856)

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Goodwill by reportable business segment is included in the table below. Refer to “Note 22 – Business Segments” for additional information on OFG’s reportable business segments.

	Banking		Wealth Management		Treasury		Total
	(In thousands)
December 31, 2023	$	84,063	$	178	$	—	$	84,241
June 30, 2024	$	84,063	$	178	$	—	$	84,241

Schedule of Core Deposit, Customer Relationship and Other Intangibles

The following table reflects the components of other intangible assets subject to amortization at June 30, 2024 and December 31, 2023:

	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(In thousands)
June 30, 2024
Core deposit intangibles	$	41,507	$	27,923	$	13,584
Customer relationship intangibles	12,693		8,539		4,154
Total other intangible assets	$	54,200	$	36,462	$	17,738
December 31, 2023
Core deposit intangibles	$	41,507	$	25,659	$	15,848
Customer relationship intangibles	12,693		7,847		4,846
Total other intangible assets	$	54,200	$	33,506	$	20,694

Schedule of Estimated Amortization of Other Intangible Assets

The following table presents the estimated amortization of other intangible assets for each of the following periods.

Year Ending December 31,	(In thousands)
2024	5,913
2025	4,927
2026	3,942
2027	2,956
2028	1,971
Thereafter	985

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ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Tables)

6 Months Ended

Jun. 30, 2024

Accrued Interest Receivable and Other Assets [Abstract]

Schedule of Accrued Interest Receivable

Accrued interest receivable at June 30, 2024 and December 31, 2023 consists of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Loans	$	64,049	$	63,526
Investments	8,920		7,874
	$	72,969	$	71,400

Schedule of Other Assets

Other assets at June 30, 2024 and December 31, 2023 consist of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Prepaid expenses	$	88,481	$	63,040
Other repossessed assets	5,713		4,032
Accounts receivable and other assets	56,760		47,859
	$	150,954	$	114,931

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DEPOSITS AND RELATED INTEREST (Tables)

6 Months Ended

Jun. 30, 2024

Deposits and Related Interest [Abstract]

Schedule of Deposits by Component

Total deposits, including related accrued interest payable, as of June 30, 2024 and December 31, 2023 consist of the following:

	June 30, 2024		December 31, 2023
	(In thousands)
Non-interest-bearing demand deposits	$	2,608,902	$	2,537,431
Interest-bearing savings and demand deposits	5,410,804		5,601,099
Retail certificates of deposit	1,142,257		1,083,316
Institutional certificates of deposit	442,869		378,143
Total core deposits	9,604,832		9,599,989
Brokered deposits	418		162,180
Total deposits	$	9,605,250	$	9,762,169

Schedule of Interest Expense

Interest expense for the quarters and six-month periods ended June 30, 2024 and 2023 was as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
					(In thousands)
Demand and savings deposits	$	26,682	$	10,423	$	52,748	$	19,092
Certificates of deposit	11,130		5,493		21,856		9,321
	$	37,812	$	15,916	$	74,604	$	28,413

Schedule of Time Deposit Maturities

Excluding accrued interest of approximately $1.8 million and $3.0 million, the scheduled maturities of certificates of deposit at June 30, 2024 and December 31, 2023 are as follows:

June 30, 2024
	Period-end amount		Uninsured amount
	(In thousands)
Within one year:
Three months or less	$	312,747	$	137,864
Over 3 months through 6 months	227,691		95,415
Over 6 months through 1 year	590,451		250,814
	1,130,889		484,093
Over 1 through 2 years	308,181		93,103
Over 2 through 3 years	66,580		7,465
Over 3 through 4 years	38,804		1,699
Over 4 through 5 years	38,808		4,971
Over 5 years	527		—
	$	1,583,789	$	591,331
December 31, 2023
	Period-end amount		Uninsured amount
	(In thousands)
Within one year:
Three months or less	$	457,533	$	115,392
Over 3 months through 6 months	195,902		61,245
Over 6 months through 1 year	329,758		113,524
	983,193		290,161
Over 1 through 2 years	467,348		201,478
Over 2 through 3 years	94,450		13,971
Over 3 through 4 years	29,514		1,379
Over 4 through 5 years	45,575		4,665
Over 5 years	608		—
	$	1,620,688	$	511,654

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BORROWINGS AND RELATED INTEREST (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Federal Home Loan Bank Advances

The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $741 thousand and $768 thousand at June 30, 2024 and December 31, 2023, respectively:

	June 30, 2024		December 31, 2023
	(In thousands)
Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 4.52%	$	200,000	$	—
Long-term fixed-rate advance from FHLB, with a weighted average interest rate of 4.52%	—		200,000
	$	200,000	$	200,000

Advances from FHLB mature as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Due less than one year	$	200,000	$	—
Over one to three years	—		200,000
	$	200,000	$	200,000

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REGULATORY CAPITAL REQUIREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Capital Disclosure [Abstract]

Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations

OFG’s and the Bank’s actual capital amounts and ratios as of June 30, 2024 and December 31, 2023 were as follows:

	Actual				Minimum Capital Requirement (including capital conservation buffer)				Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
OFG Bancorp Ratios
As of June 30, 2024
Total capital to risk-weighted assets	$	1,330,474	15.54	%	$	898,963	10.50	%	$	856,155	10.00	%
Tier 1 capital to risk-weighted assets	$	1,223,031	14.29	%	$	727,732	8.50	%	$	684,924	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,223,031	14.29	%	$	599,308	7.00	%	$	556,501	6.50	%
Tier 1 capital to average total assets	$	1,223,031	10.86	%	$	450,325	4.00	%	$	562,906	5.00	%
As of December 31, 2023
Total capital to risk-weighted assets	$	1,278,537	15.37	%	$	873,369	10.50	%	$	831,780	10.00	%
Tier 1 capital to risk-weighted assets	$	1,174,205	14.12	%	$	707,013	8.50	%	$	665,424	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,174,205	14.12	%	$	582,246	7.00	%	$	540,657	6.50	%
Tier 1 capital to average total assets	$	1,174,205	11.03	%	$	425,911	4.00	%	$	532,389	5.00	%

	Actual				Minimum Capital Requirement (including capital conservation buffer)				Minimum to be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Bank Ratios
As of June 30, 2024
Total capital to risk-weighted assets	$	1,245,627	14.64	%	$	893,092	10.50	%	$	850,564	10.00	%
Tier 1 capital to risk-weighted assets	$	1,138,874	13.39	%	$	722,979	8.50	%	$	680,451	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,138,874	13.39	%	$	595,395	7.00	%	$	552,866	6.50	%
Tier 1 capital to average total assets	$	1,138,874	10.22	%	$	445,681	4.00	%	$	557,101	5.00	%
As of December 31, 2023
Total capital to risk-weighted assets	$	1,179,164	14.27	%	$	867,797	10.50	%	$	826,474	10.00	%
Tier 1 capital to risk-weighted assets	$	1,075,487	13.01	%	$	702,503	8.50	%	$	661,179	8.00	%
Common equity tier 1 capital to risk-weighted assets	$	1,075,487	13.01	%	$	578,532	7.00	%	$	537,208	6.50	%
Tier 1 capital to average total assets	$	1,075,487	10.20	%	$	421,660	4.00	%	$	527,075	5.00	%

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STOCKHOLDERS’ EQUITY (Tables)

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Schedule of Activity of Common Shares Held in Treasury

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

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss, net of income taxes, as of June 30, 2024 and December 31, 2023 consisted of:

	June 30, 2024		December 31, 2023
	(In thousands)
Unrealized loss on securities available-for-sale	$	(101,810)	$	(78,497)
Income tax effect of unrealized loss on securities available-for-sale	15,316		11,484
Net unrealized loss on securities available-for-sale	(86,494)		(67,013)
Accumulated other comprehensive loss, net of income taxes	$	(86,494)	$	(67,013)

The following table presents changes in accumulated other comprehensive loss by component, net of taxes, for the quarters and six-month periods ended June 30, 2024 and 2023:

	Net unrealized loss on securities available-for-sale
	Quarter Ended June 30, 2024		Six-Month Period Ended June 30, 2024
	(In thousands)
Beginning balance	$	(81,731)	$	(67,013)
Other comprehensive loss before reclassifications	(4,765)		(19,474)
Amounts reclassified out of accumulated other comprehensive loss	2		(7)
Other comprehensive loss	(4,763)		(19,481)
Ending balance	$	(86,494)	$	(86,494)

	Quarter Ended June 30, 2023
	Net unrealized loss on securities available-for-sale		Net unrealized gain on cash flow hedges		Accumulated other comprehensive loss
	(In thousands)
Beginning balance	$	(78,512)	$	172	$	(78,340)
Other comprehensive loss before reclassifications	(9,980)		(2,525)		(12,505)
Amounts reclassified out of accumulated other comprehensive loss	(1,147)		2,428		1,281
Other comprehensive loss	(11,127)		(97)		(11,224)
Ending balance	$	(89,639)	$	75	$	(89,564)
	Six-Month Period Ended June 30, 2023
	Net unrealized loss on securities available-for-sale		Net unrealized gain on cash flow hedges		Accumulated other comprehensive loss
	(In thousands)
Beginning balance	$	(93,663)	$	254	$	(93,409)
Other comprehensive income (loss) before reclassifications	5,169		(3,198)		1,971
Amounts reclassified out of other comprehensive income (loss)	(1,145)		3,019		1,874
Other comprehensive income (loss)	4,024		(179)		3,845
Ending balance	$	(89,639)	$	75	$	(89,564)

Schedule of Reclassifications Out of Other Comprehensive Income

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and six-month periods ended June 30, 2024 and 2023:

	Amount reclassified out of accumulated other comprehensive loss								Affected Line Item in Consolidated Statement of Operations
	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Cash flow hedges:
Interest-rate contracts	$	—	$	2,428	$	—	$	3,019	Net interest expense
Available-for-sale securities:
Loss on sale of investments	—		(1,149)		(7)		(1,149)		Net loss on sale of securities
Tax effect from changes in tax rates	2		2		—		4		Income tax expense
	$	2	$	1,281	$	(7)	$	1,874

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EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Common Share

The calculation of earnings per common share for the quarters and six-month periods ended June 30, 2024 and 2023 is as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands, except per share data)
Income available to common shareholders	$	51,131	$	44,173	$	100,823	$	90,402
Average common shares outstanding	46,952		47,266		47,024		47,432
Effect of dilutive securities:
Average potential common shares-options	179		224		220		284
Total weighted average common shares outstanding and equivalents	47,131		47,490		47,244		47,716
Earnings per common share - basic	$	1.09	$	0.93	$	2.14	$	1.91
Earnings per common share - diluted	$	1.08	$	0.93	$	2.13	$	1.89

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GUARANTEES (Tables)

6 Months Ended

Jun. 30, 2024

Guarantees [Abstract]

Schedule of Changes in Liability of Estimated Loss from Credit Recourse Agreement

The following table shows the changes in OFG’s liability for estimated losses from credit recourse agreements, included in the consolidated statements of financial condition during the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Balance at beginning of period	$	73	$	141	$	102	$	147
Net recoveries (charge-offs/terminations)	(14)		9		(43)		3
Balance at end of period	$	59	$	150	$	59	$	150

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Credit-Related Financial Instruments

Credit-related financial instruments at June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Commitments to extend credit	$	1,424,489	$	1,255,695
Commercial letters of credit	1,384		119

The summary of instruments that are considered financial guarantees in accordance with the authoritative guidance related to guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others, at June 30, 2024 and December 31, 2023, is as follows:

	June 30, 2024		December 31, 2023
	(In thousands)
Standby letters of credit and financial guarantees	$	25,028	$	23,970
Loans sold with recourse	94,456		98,685

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OPERATING LEASES (Tables)

6 Months Ended

Jun. 30, 2024

Lessee Disclosure [Abstract]

Schedule of Operating Lease Cost

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023		Statement of Operations Classification
	(In thousands)
Lease costs	$	2,261	$	2,608	$	4,914	$	5,208	Occupancy and equipment
Variable lease costs	370		347		781		687		Occupancy and equipment
Short-term lease costs	91		148		141		305		Occupancy and equipment
Lease income	(29)		(17)		(51)		(54)		Occupancy and equipment
Total lease costs	$	2,693	$	3,086	$	5,785	$	6,146

Schedule of Operating Lease Assets and Liabilities

	June 30, 2024		December 31, 2023		Statement of Financial Condition Classification
	(In thousands)
Right-of-use assets	$	20,298	$	21,725	Operating lease right-of-use assets
Lease Liabilities	$	22,605	$	24,029	Operating leases liabilities

Schedule of Operating Lease, Other Information

	June 30, 2024		December 31, 2023
	(In thousands)
Weighted-average remaining lease term	5.0 years		5.1 years
Weighted-average discount rate	7.5	%	7.0	%

Schedule of Future Minimum Payments for Operating Leases and Present Value

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024 were as follows:

	Minimum Rent
As of June 30, 2024	(In thousands)
2024	$	4,093
2025	6,676
2026	4,620
2027	3,793
2028	2,980
Thereafter	5,184
Total lease payments	$	27,346
Less imputed interest	4,741
Present value of lease liabilities	$	22,605

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities on Recurring and Non-Recurring Basis

Assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized below:

	June 30, 2024
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	200,658	$	1,895,648	$	—	$	2,096,306
Trading securities	—		16		—		16
Money market investments	5,083		—		—		5,083
Servicing assets	—		—		49,789		49,789
	$	205,741	$	1,895,664	$	49,789	$	2,151,194
Non-recurring fair value measurements:
Collateral dependent loans	$	—	$	—	$	13,772	$	13,772
Foreclosed real estate	—		—		6,526		6,526
Other repossessed assets	—		—		5,713		5,713
Mortgage loans held for sale	—		—		8,375		8,375
Other loans held for sale	—		—		12,361		12,361
	$	—	$	—	$	46,747	$	46,747

	December 31, 2023
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(In thousands)
Recurring fair value measurements:
Investment securities available-for-sale	$	296,799	$	1,802,465	$	—	$	2,099,264
Trading securities	—		13		—		13
Money market investments	4,623		—		—		4,623
Servicing assets	—		—		49,520		49,520
	$	301,422	$	1,802,478	$	49,520	$	2,153,420
Non-recurring fair value measurements:
Collateral dependent loans	$	—	$	—	$	8,027	$	8,027
Foreclosed real estate	—		—		10,780		10,780
Other repossessed assets	—		—		4,032		4,032
Other loans held for sale	$	—	$	—	$	28,345	28,345
	$	—	$	—	$	51,184	$	51,184

Schedule of Reconciliation of Assets and Liabilities Using Significant Unobservable Inputs (Level 3)

The tables below present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for June 30, 2024 and 2023:

Level 3 Instruments Only

	Quarter Ended June 30,
	2024		2023
	Servicing Assets		Other debt securities available for sale		Servicing Assets		Total
	(In thousands)
Balance at beginning period	$	49,553	$	413	$	49,345	$	49,758
New instruments acquired	303		—		791		791
Principal repayments and amortization	(732)		—		(1,085)		(1,085)
Gains included in earnings	665		—		915		915
Gains included in other comprehensive income	—		7		—		7
Balance at end of period	$	49,789	$	420	$	49,966	$	50,386
	Six-Month Period Ended June 30,
	2024		2023
	Servicing Assets		Other debt securities available for sale		Servicing Assets		Total
	(In thousands)
Balance at beginning of period	$	49,520	$	406	$	50,921	$	51,327
New instruments acquired	830		—		1,365		1,365
Principal repayments and amortization	(1,652)		—		(2,150)		(2,150)
Gains included in earnings	1,091		—		(170)		(170)
Gains included in other comprehensive income	—		14		—		14
Balance at end of period	$	49,789	$	420	$	49,966	$	50,386

Schedule of Qualitative Information for Assets and Liabilities

The table below presents quantitative information for all assets measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at June 30, 2024 and December 31, 2023:

	June 30, 2024
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(In thousands)
Servicing assets	$	49,789	Cash flow valuation	Constant prepayment rate	1.49% - 11.45%	6.07	%
				Discount rate	10.00% - 15.50%	11.45	%
Collateral dependent loans	$	13,772	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	17.67	%
Foreclosed real estate	$	6,526	Fair value of property or collateral	Appraised value less disposition costs	10.00% - 33.00%	10.95	%
Other repossessed assets	$	5,713	Fair value of property or collateral	Estimated net realizable value less disposition costs	36.00% - 71.00%	55.48	%
Mortgage loans held for sale	$	8,375	Market prices	Pricing and execution whole loan	92.89% - 101.33%	98.25	%
Other loans held for sale	$	12,361	Bids or sales contract prices	Estimated market value	100.00% - 104.47%	100.48	%

	December 31, 2023
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(In thousands)
Servicing assets	$	49,520	Cash flow valuation	Constant prepayment rate	1.35% - 17.34%	6.12	%
				Discount rate	10.00% - 15.50%	11.45	%
Collateral dependent loans	$	8,027	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	17.00	%
Foreclosed real estate	$	10,780	Fair value of property or collateral	Appraised value less disposition costs	10.20% - 33.20%	12.67	%
Other repossessed assets	$	4,032	Fair value of property or collateral	Estimated net realizable value less disposition costs	31.00% - 77.00%	57.72	%
Other loans held for sale	$	28,345	Bids or sales contract prices	Estimated market value	52.00% - 103.20%	84.80%

Schedule of Estimated Fair Value and Carrying Value

The estimated fair value and carrying value of OFG’s financial instruments at June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024				December 31, 2023
	Fair Value		Carrying Value		Fair Value		Carrying Value
	(In thousands)
Financial Assets:
Level 1
Cash and cash equivalents	$	740,429	$	740,429	$	748,173	$	748,173
Investment securities available-for-sale	$	200,658	$	200,658	$	296,799	$	296,799
Level 2
Financial Assets:
Trading securities	$	16	$	16	$	13	$	13
Investment securities available-for-sale	$	1,895,648	$	1,895,648	$	1,802,465	$	1,802,465
Investment securities held-to-maturity	$	244,365	$	303,621	$	455,709	$	514,024
Federal Home Loan Bank (FHLB) stock	$	15,280	$	15,280	$	14,488	$	14,488
Equity securities	$	25,794	$	25,794	$	23,981	$	23,981
Level 3
Financial Assets:
Investment securities held-to-maturity	$	35,072	$	35,000	$	35,055	$	35,000
Total loans (including loans held-for-sale)	$	7,410,349	$	7,503,142	$	7,282,214	$	7,401,618
Accrued interest receivable	$	72,969	$	72,969	$	71,400	$	71,400
Servicing assets	$	49,789	$	49,789	$	49,520	$	49,520
Accounts receivable and other assets	$	56,760	$	56,760	$	47,859	$	47,589
Financial Liabilities:
Deposits	$	9,622,547	$	9,605,250	$	9,767,068	$	9,762,169
Advances from FHLB	$	198,937	$	200,741	$	199,184	$	200,768
Other borrowings	$	—	$	—	$	2	$	2
Accrued expenses and other liabilities	$	140,410	$	140,410	$	115,985	$	115,985

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BANKING AND FINANCIAL SERVICE REVENUES (Tables)

6 Months Ended

Jun. 30, 2024

Banking and Thrift, Interest [Abstract]

Schedule of Commissions and Fees Revenues

The following table presents the major categories of banking and financial service revenues for the quarters and six-month periods ended June 30, 2024 and 2023:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2024		2023		2024		2023
	(In thousands)				(In thousands)
Banking service revenues:
Electronic banking fees	$	14,718	$	13,603	$	28,408	$	26,969
Checking accounts fees	1,894		2,184		4,061		4,404
Savings accounts fees	307		327		615		660
Credit life commissions	73		119		77		224
Branch service commissions	275		324		621		746
Servicing and other loan fees	1,325		702		1,893		1,584
International fees	184		179		356		362
Miscellaneous income	5		2		9		4
Total banking service revenues	18,781		17,440		36,040		34,953
Wealth management revenue:
Insurance income	4,214		4,169		7,988		7,539
Broker fees	2,009		1,797		4,100		3,580
Trust fees	2,217		2,228		4,459		4,152
Other fees	—		—		—		43
Total wealth management revenue	8,440		8,194		16,547		15,314
Mortgage banking activities:
Net servicing fees	4,101		4,650		8,052		7,493
Net gains on sale of mortgage loans and valuation	719		790		1,372		1,559
Net gain (loss) on repurchased loans and other	44		(215)		133		71
Total mortgage banking activities	4,864		5,225		9,557		9,123
Total banking and financial service revenues	$	32,085	$	30,859	$	62,144	$	59,390

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BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

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
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	118,027		4		29,294		147,325		—		147,325
Provision for (recapture of) credit losses	15,589		—		(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 revenue	415		—		—		415		(415)		—
Intersegment expenses	—		(243)		(172)		(415)		415		—
Income before income taxes	40,070		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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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 income	233,173		13		58,241		291,427		—		291,427
Provision for (recapture of) credit losses	30,814		—		(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 revenue	839		—		—		839		(839)		—
Intersegment expenses	—		(510)		(329)		(839)		839		—
Income before income taxes	$	77,490	$	5,387	$	56,300	$	139,177	$	—	$	139,177
Income tax expense	38,262		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
	Banking		Wealth Management		Treasury		Total Major Segments		Eliminations		Consolidated 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 income	124,175		6		15,463		139,644		—		139,644
Provision for credit losses	15,052		—		(8)		15,044		—		15,044
Non-interest income	23,354		7,868		(1,149)		30,073		—		30,073
Non-interest expenses	(83,876)		(4,138)		(874)		(88,888)		—		(88,888)
Intersegment revenue	575		—		—		575		(575)		—
Intersegment expenses	—		(380)		(195)		(575)		575		—
Income before income taxes	49,176		3,356		13,253		65,785		—		65,785
Income tax expense	21,577		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
	Banking		Wealth Management		Treasury		Total		Eliminations		Consolidated 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

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RESTRICTED CASH (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Restricted Cash and Investments [Abstract]
Reserve required by local government	$ 474.2	$ 464.5

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INVESTMENT SECURITIES (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Money market investments	$ 5,083	$ 3,427	$ 4,623
Securitized GNMA pools retained, amortized cost	$ 38,100	$ 41,100
Securitized GNMA pool retained, yield	5.09%	5.16%
Retained FNMA pools	$ 0	$ 12,600
FNMA pools retained, yield		5.31%
OIB
Debt Securities, Available-for-sale [Line Items]
Restricted cash	525		325
Oriental Overseas
Debt Securities, Available-for-sale [Line Items]
Restricted cash	325		325
Asset Pledged as Collateral
Debt Securities, Available-for-sale [Line Items]
Pledged assets	1,648,000		1,624,000
Asset Pledged as Collateral | Public Funds
Debt Securities, Available-for-sale [Line Items]
Pledged assets	$ 1,602,000		$ 1,575,000

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INVESTMENT SECURITIES (Investment Securities by Contractual Maturity - AFS) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Amortized Cost	$ 2,198,116	$ 2,177,761
Gross Unrealized Gains	10,287	13,476
Gross Unrealized Losses	112,097	91,973
Fair Value	$ 2,096,306	$ 2,099,264
Weighted Average Yield	4.17%	4.07%
Mortgage-backed securities
Schedule of Investments [Line Items]
Amortized Cost	$ 1,996,877	$ 1,880,395
Gross Unrealized Gains	10,285	13,424
Gross Unrealized Losses	112,095	91,970
Fair Value	$ 1,895,067	$ 1,801,849
Weighted Average Yield	4.04%	3.86%
Mortgage-backed securities | FNMA and FHLMC certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 1,557,846	$ 1,464,134
Gross Unrealized Gains	5,261	8,989
Gross Unrealized Losses	71,946	57,178
Fair Value	$ 1,491,161	$ 1,415,945
Weighted Average Yield	4.21%	4.03%
Mortgage-backed securities | GNMA certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 431,345	$ 406,275
Gross Unrealized Gains	5,024	4,435
Gross Unrealized Losses	39,864	34,416
Fair Value	$ 396,505	$ 376,294
Weighted Average Yield	3.47%	3.30%
Mortgage-backed securities | CMOs issued by US government-sponsored agencies
Schedule of Investments [Line Items]
Amortized Cost	$ 7,686	$ 9,986
Gross Unrealized Gains	0	0
Gross Unrealized Losses	285	376
Fair Value	$ 7,401	$ 9,610
Weighted Average Yield	2.11%	2.06%
Mortgage-backed securities | Due less than 1 year | GNMA certificates
Schedule of Investments [Line Items]
Amortized Cost		$ 5
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		$ 5
Weighted Average Yield		1.31%
Mortgage-backed securities | Due from 1 to 5 years | FNMA and FHLMC certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 8,933	$ 6,972
Gross Unrealized Gains	0	0
Gross Unrealized Losses	421	311
Fair Value	$ 8,512	$ 6,661
Weighted Average Yield	1.98%	1.76%
Mortgage-backed securities | Due from 1 to 5 years | GNMA certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 7,965	$ 8,851
Gross Unrealized Gains	0	0
Gross Unrealized Losses	319	351
Fair Value	$ 7,646	$ 8,500
Weighted Average Yield	1.72%	1.71%
Mortgage-backed securities | Due from 1 to 5 years | CMOs issued by US government-sponsored agencies
Schedule of Investments [Line Items]
Amortized Cost	$ 6,896	$ 9,071
Gross Unrealized Gains	0	0
Gross Unrealized Losses	274	364
Fair Value	$ 6,622	$ 8,707
Weighted Average Yield	1.78%	1.78%
Mortgage-backed securities | Due from 5 to 10 years | FNMA and FHLMC certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 36,742	$ 45,835
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2,517	2,767
Fair Value	$ 34,225	$ 43,068
Weighted Average Yield	1.97%	2.00%
Mortgage-backed securities | Due from 5 to 10 years | GNMA certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 13,552	$ 17,113
Gross Unrealized Gains	7	16
Gross Unrealized Losses	883	955
Fair Value	$ 12,676	$ 16,174
Weighted Average Yield	2.23%	2.19%
Mortgage-backed securities | Due from 5 to 10 years | CMOs issued by US government-sponsored agencies
Schedule of Investments [Line Items]
Amortized Cost		$ 54
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		$ 54
Weighted Average Yield		2.14%
Mortgage-backed securities | Due after 10 years | FNMA and FHLMC certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 1,512,171	$ 1,411,327
Gross Unrealized Gains	5,261	8,989
Gross Unrealized Losses	69,008	54,100
Fair Value	$ 1,448,424	$ 1,366,216
Weighted Average Yield	4.28%	4.11%
Mortgage-backed securities | Due after 10 years | GNMA certificates
Schedule of Investments [Line Items]
Amortized Cost	$ 409,828	$ 380,306
Gross Unrealized Gains	5,017	4,419
Gross Unrealized Losses	38,662	33,110
Fair Value	$ 376,183	$ 351,615
Weighted Average Yield	3.54%	3.38%
Mortgage-backed securities | Due after 10 years | CMOs issued by US government-sponsored agencies
Schedule of Investments [Line Items]
Amortized Cost	$ 790	$ 861
Gross Unrealized Gains	0	0
Gross Unrealized Losses	11	12
Fair Value	$ 779	$ 849
Weighted Average Yield	5.06%	5.07%
Investment securities
Schedule of Investments [Line Items]
Amortized Cost	$ 201,239	$ 297,366
Gross Unrealized Gains	2	52
Gross Unrealized Losses	2	3
Fair Value	$ 201,239	$ 297,415
Weighted Average Yield	5.41%	5.39%
Investment securities | Other debt securities
Schedule of Investments [Line Items]
Amortized Cost	$ 583	$ 619
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2	3
Fair Value	$ 581	$ 616
Weighted Average Yield	3.21%	3.20%
Investment securities | Due less than 1 year | US Treasury securities
Schedule of Investments [Line Items]
Amortized Cost	$ 200,656	$ 296,747
Gross Unrealized Gains	2	52
Gross Unrealized Losses	0	0
Fair Value	$ 200,658	$ 296,799
Weighted Average Yield	5.41%	5.40%
Investment securities | Due less than 1 year | Other debt securities
Schedule of Investments [Line Items]
Amortized Cost	$ 500	$ 500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 500	$ 500
Weighted Average Yield	3.25%	3.25%
Investment securities | Due from 1 to 5 years | Other debt securities
Schedule of Investments [Line Items]
Amortized Cost	$ 83	$ 119
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2	3
Fair Value	$ 81	$ 116
Weighted Average Yield	2.97%	2.97%

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INVESTMENT SECURITIES (Investment Securities by Contractual Maturity - HTM) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 338,621	$ 549,024
Gross Unrealized Gains	72	55
Gross Unrealized Losses	59,256	58,315
Fair Value	$ 279,437	$ 490,764
Weighted Average Yield	2.20%	2.60%
Fair Value	$ 2,096,306	$ 2,099,264
Mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	1,895,067	1,801,849
Mortgage-backed securities | FNMA and FHLMC certificates
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	1,491,161	1,415,945
Investment securities
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	201,239	297,415
Investment securities | Other debt securities available for sale
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	581	616
Due from 1 to 5 years | Mortgage-backed securities | FNMA and FHLMC certificates
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	8,512	6,661
Due from 1 to 5 years | Investment securities | Other debt securities available for sale
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	35,000	35,000
Gross Unrealized Gains	72	55
Gross Unrealized Losses	0	0
Fair Value	$ 35,072	$ 35,055
Weighted Average Yield	6.33%	6.36%
Fair Value	$ 81	$ 116
Due less than 1 year | Investment securities | US Treasury securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost		199,314
Gross Unrealized Gains		0
Gross Unrealized Losses		1,548
Fair Value		$ 197,766
Weighted Average Yield		3.33%
Fair Value	200,658	$ 296,799
Due less than 1 year | Investment securities | Other debt securities available for sale
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	500	500
Due after 10 years | Mortgage-backed securities | FNMA and FHLMC certificates
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	303,621	314,710
Gross Unrealized Gains	0	0
Gross Unrealized Losses	59,256	56,767
Fair Value	$ 244,365	$ 257,943
Weighted Average Yield	1.72%	1.72%
Fair Value	$ 1,448,424	$ 1,366,216

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INVESTMENT SECURITIES (Sale of securities available-for-sale) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Schedule of Investments [Line Items]
Investment securities available-for-sale	$ 149,406	$ 202,133
US Treasury securities
Schedule of Investments [Line Items]
Investment securities available-for-sale	149,406	202,133
Book Value at Sale	149,413	203,282
Gross Gains	0	0
Gross Losses	$ 7	$ 1,149

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INVESTMENT SECURITIES (Unrealized Gains and Losses by Category) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Securities Available-for-Sale, Amortized Cost
12 months or more	$ 1,012,881	$ 1,017,108
Less than 12 months	235,275	114,099
Amortized Cost	1,248,156	1,131,207
Securities Available-for-Sale, Unrealized Loss
12 months or more	107,559	91,590
Less than 12 months	4,538	383
Total	112,097	91,973
Securities Available-for-Sale, Fair Value
12 months or more	905,322	925,518
Less than 12 months	230,737	113,716
Total	1,136,059	1,039,234
FNMA and FHLMC certificates
Securities Available-for-Sale, Amortized Cost
12 months or more	737,230	731,334
Less than 12 months	197,672	106,235
Amortized Cost	934,902	837,569
Securities Available-for-Sale, Unrealized Loss
12 months or more	67,814	56,847
Less than 12 months	4,132	331
Total	71,946	57,178
Securities Available-for-Sale, Fair Value
12 months or more	669,416	674,487
Less than 12 months	193,540	105,904
Total	862,956	780,391
GNMA certificates
Securities Available-for-Sale, Amortized Cost
12 months or more	267,882	275,669
Less than 12 months	37,603	7,864
Amortized Cost	305,485	283,533
Securities Available-for-Sale, Unrealized Loss
12 months or more	39,458	34,364
Less than 12 months	406	52
Total	39,864	34,416
Securities Available-for-Sale, Fair Value
12 months or more	228,424	241,305
Less than 12 months	37,197	7,812
Total	265,621	249,117
CMOs issued by US Government-sponsored agencies
Securities Available-for-Sale, Amortized Cost
12 months or more	7,686	9,986
Amortized Cost	7,686	9,986
Securities Available-for-Sale, Unrealized Loss
12 months or more	285	376
Total	285	376
Securities Available-for-Sale, Fair Value
12 months or more	7,401	9,610
Total	7,401	9,610
Other debt securities
Securities Available-for-Sale, Amortized Cost
12 months or more	83	119
Amortized Cost	83	119
Securities Available-for-Sale, Unrealized Loss
12 months or more	2	3
Total	2	3
Securities Available-for-Sale, Fair Value
12 months or more	81	116
Total	$ 81	$ 116

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LOANS (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) portfolioSegment	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan portfolio segments | portfolioSegment	4
Total loans held-for-sale	$ 20,736		$ 28,345
Total Loans	7,639,707		7,534,379
Accrued interest receivable on modified loans	1	$ 5
Recorded investment of residential mortgage loans collateralized and in process of foreclosure	16,700		24,100
Balance of revolving loans converted to term loans, amount	177,700		144,100
Accrued interest receivable	72,969		71,400
Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	64,049		63,526
Non-PCD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held-for-sale	20,736		28,345
Total Loans	6,624,471		6,463,127
Non-PCD | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	246,065		243,037
Mortgage Loans - GNMA Buy-Back Option Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Delinquent loans	19,000		19,400
Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, excluding accrued interest, sale	40,900	86
Recognized gain on sale	53	$ 0
Total loans held-for-sale	12,361		28,345
Total Loans	3,082,363		3,076,903
Commitment to lend additional funds	0		0
Commercial loans | Non-accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held-for-sale	0		6,400
Commercial loans | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held-for-sale	0		6,400
Commercial loans | Non-PCD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held-for-sale	12,361		28,345
Total Loans	2,953,779		2,941,456
Commercial loans | Non-PCD | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	17,703		14,298
Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,420,337		2,321,675
Commercial loans | Puerto Rico | Non-PCD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,291,753		2,186,228
Commercial loans | Puerto Rico | Non-PCD | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	16,661		14,298
Commercial loans | Puerto Rico | Government
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	75,800		68,600
Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held-for-sale	8,375		0
Total Loans	$ 1,485,127		1,562,609
Mortgage loans | Government Guaranteed Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period past due	90 days
Nonaccrual status	12 months
Total	$ 229		4,200
Mortgage loans | Non-PCD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held-for-sale	8,375		0
Total Loans	600,031		629,247
Mortgage loans | Non-PCD | Total Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	42,451		47,260
Mortgage and consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance of revolving loans converted to term loans, amount	788		0
Mortgage and consumer loans | Non-PCD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 1,243,603		$ 1,249,141

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LOANS (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 7,639,707		$ 7,534,379
Allowance for credit losses	(157,301)		(161,106)	$ (159,923)
Total loans held for investment, net	7,482,406		7,373,273
Total loans held-for-sale	20,736		28,345
Total loans	7,503,142		7,401,618
Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,082,363		3,076,903
Allowance for credit losses	(34,598)			(50,012)
Total loans held-for-sale	12,361		28,345
Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,420,337		2,321,675
Commercial loans | UNITED STATES
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	662,026		755,228
Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,485,127		1,562,609
Allowance for credit losses	(12,528)			(16,967)
Total loans held-for-sale	8,375		0
Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	644,177		620,446
Allowance for credit losses	(29,440)			(25,674)
Auto loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,428,040		2,274,421
Allowance for credit losses	(80,735)			(67,270)
Non-PCD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	6,624,471		6,463,127
Allowance for credit losses	(150,849)	$ (148,767)	(152,610)	(150,167)	$ (141,385)	$ (141,841)
Total loans held for investment, net	6,473,622		6,310,517
Total loans held-for-sale	20,736		28,345
Total loans	6,494,358		6,338,862
Non-PCD | Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,953,779		2,941,456
Allowance for credit losses	(33,809)	(37,371)	(44,041)	(48,604)	(37,774)	(39,158)
Total loans held-for-sale	12,361		28,345
Non-PCD | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,291,753		2,186,228
Non-PCD | Commercial loans | UNITED STATES
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	662,026		755,228
Non-PCD | Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	600,031		629,247
Allowance for credit losses	(6,886)	(7,627)	(7,998)	(8,670)	(9,083)	(9,571)
Total loans held-for-sale	8,375		0
Non-PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	643,572		619,894
Allowance for credit losses	(29,432)	(27,453)	(27,086)	(25,666)	(24,664)	(23,264)
Non-PCD | Auto loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,427,089		2,272,530
Allowance for credit losses	(80,722)	(76,316)	(73,485)	(67,227)	(69,864)	(69,848)
PCD
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,015,236		1,071,252
Allowance for credit losses	(6,452)	(7,796)	(8,496)	(9,756)	(10,499)	(10,832)
Total loans held for investment, net	1,008,784		1,062,756
Total loans held-for-sale	0		0
Total loans	1,008,784		1,062,756
PCD | Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	128,584		135,447
Allowance for credit losses	(789)	(1,133)	(1,113)	(1,408)	(1,693)	(1,388)
Total loans held-for-sale	0		0
PCD | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	128,584		135,447
PCD | Commercial loans | UNITED STATES
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	0		0
PCD | Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	885,096		933,362
Allowance for credit losses	(5,642)	(6,638)	(7,351)	(8,297)	(8,717)	(9,359)
Total loans held-for-sale	0		0
PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	605		552
Allowance for credit losses	(8)	(7)	(7)	(8)	(12)	(14)
PCD | Auto loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	951		1,891
Allowance for credit losses	(13)	$ (18)	(25)	$ (43)	$ (77)	$ (71)
Commercial secured by real estate | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,296,661		1,216,195
Commercial secured by real estate | Non-PCD | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,182,145		1,095,207
Commercial secured by real estate | PCD | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	114,516		120,988
Other commercial and industrial | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,123,676		1,105,480
Other commercial and industrial | Non-PCD | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,109,608		1,091,021
Other commercial and industrial | PCD | Commercial loans | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	14,068		14,459
Commercial US | Non-PCD | Commercial loans | UNITED STATES
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	662,026		755,228
Personal loans | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	594,524		568,622
Personal loans | Non-PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	594,271		568,358
Personal loans | PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	253		264
Credit lines | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	11,000		11,214
Credit lines | Non-PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	10,648		10,926
Credit lines | PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	352		288
Credit cards | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	38,382		40,314
Credit cards | Non-PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	38,382		40,314
Credit cards | PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	0		0
Overdraft | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	271		296
Overdraft | Non-PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	271		296
Overdraft | PCD | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 0		$ 0

XML

LOANS (Aging of Recorded Investment in Gross Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total Loans	$ 7,639,707	$ 7,534,379
Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	6,624,471	6,463,127
Loans 90+ Days Past Due and Still Accruing	1,682	2,478
30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	129,997	117,664
60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	56,470	60,739
90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	59,598	64,634
Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	246,065	243,037
Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	6,378,406	6,220,090
Commercial loans
Financing Receivable, Past Due [Line Items]
Total Loans	3,082,363	3,076,903
Commercial loans | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	2,420,337	2,321,675
Commercial loans | UNITED STATES
Financing Receivable, Past Due [Line Items]
Total Loans	662,026	755,228
Commercial loans | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	2,953,779	2,941,456
Loans 90+ Days Past Due and Still Accruing	0	0
Commercial loans | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	2,291,753	2,186,228
Loans 90+ Days Past Due and Still Accruing	0	0
Commercial loans | Non-PCD | UNITED STATES
Financing Receivable, Past Due [Line Items]
Total Loans	662,026	755,228
Loans 90+ Days Past Due and Still Accruing	0	0
Commercial loans | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	5,279	2,951
Commercial loans | 30-59 Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	4,237	2,951
Commercial loans | 30-59 Days Past Due | Non-PCD | UNITED STATES
Financing Receivable, Past Due [Line Items]
Total Loans	1,042	0
Commercial loans | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	2,502	702
Commercial loans | 60-89 Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	2,502	702
Commercial loans | 60-89 Days Past Due | Non-PCD | UNITED STATES
Financing Receivable, Past Due [Line Items]
Total Loans	0	0
Commercial loans | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	9,922	10,645
Commercial loans | 90+ Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	9,922	10,645
Commercial loans | 90+ Days Past Due | Non-PCD | UNITED STATES
Financing Receivable, Past Due [Line Items]
Total Loans	0	0
Commercial loans | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	17,703	14,298
Commercial loans | Total Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	16,661	14,298
Commercial loans | Total Past Due | Non-PCD | UNITED STATES
Financing Receivable, Past Due [Line Items]
Total Loans	1,042	0
Commercial loans | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	2,936,076	2,927,158
Commercial loans | Current | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	2,275,092	2,171,930
Commercial loans | Current | Non-PCD | UNITED STATES
Financing Receivable, Past Due [Line Items]
Total Loans	660,984	755,228
Mortgage loans
Financing Receivable, Past Due [Line Items]
Total Loans	1,485,127	1,562,609
Mortgage loans | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	600,031	629,247
Loans 90+ Days Past Due and Still Accruing	1,682	2,478
Mortgage loans | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	5,442	6,107
Mortgage loans | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	7,325	9,596
Mortgage loans | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	29,684	31,557
Mortgage loans | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	42,451	47,260
Mortgage loans | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	557,580	581,987
Consumer
Financing Receivable, Past Due [Line Items]
Total Loans	644,177	620,446
Consumer | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	643,572	619,894
Loans 90+ Days Past Due and Still Accruing	0	0
Consumer | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	7,985	6,996
Consumer | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	5,117	4,370
Consumer | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	3,303	3,376
Consumer | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	16,405	14,742
Consumer | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	627,167	605,152
Auto loans
Financing Receivable, Past Due [Line Items]
Total Loans	2,428,040	2,274,421
Auto loans | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	2,427,089	2,272,530
Loans 90+ Days Past Due and Still Accruing	0	0
Auto loans | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	111,291	101,610
Auto loans | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	41,526	46,071
Auto loans | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	16,689	19,056
Auto loans | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	169,506	166,737
Auto loans | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	2,257,583	2,105,793
Commercial secured by real estate: | Commercial loans | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	1,296,661	1,216,195
Commercial secured by real estate: | Commercial loans | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	1,182,145	1,095,207
Loans 90+ Days Past Due and Still Accruing	0	0
Commercial secured by real estate: | Commercial loans | 30-59 Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	3,533	1,585
Commercial secured by real estate: | Commercial loans | 60-89 Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	2,189	411
Commercial secured by real estate: | Commercial loans | 90+ Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	6,032	5,671
Commercial secured by real estate: | Commercial loans | Total Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	11,754	7,667
Commercial secured by real estate: | Commercial loans | Current | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	1,170,391	1,087,540
Other commercial and industrial | Commercial loans | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	1,109,608	1,091,021
Loans 90+ Days Past Due and Still Accruing	0	0
Other commercial and industrial | Commercial loans | 30-59 Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	704	1,366
Other commercial and industrial | Commercial loans | 60-89 Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	313	291
Other commercial and industrial | Commercial loans | 90+ Days Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	3,890	4,974
Other commercial and industrial | Commercial loans | Total Past Due | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	4,907	6,631
Other commercial and industrial | Commercial loans | Current | Non-PCD | Puerto Rico
Financing Receivable, Past Due [Line Items]
Total Loans	1,104,701	1,084,390
Personal loans | Consumer
Financing Receivable, Past Due [Line Items]
Total Loans	594,524	568,622
Personal loans | Consumer | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	594,271	568,358
Loans 90+ Days Past Due and Still Accruing	0	0
Personal loans | Consumer | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	6,904	6,115
Personal loans | Consumer | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	4,766	4,041
Personal loans | Consumer | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	2,569	2,755
Personal loans | Consumer | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	14,239	12,911
Personal loans | Consumer | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	580,032	555,447
Credit lines | Consumer
Financing Receivable, Past Due [Line Items]
Total Loans	11,000	11,214
Credit lines | Consumer | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	10,648	10,926
Loans 90+ Days Past Due and Still Accruing	0	0
Credit lines | Consumer | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	476	137
Credit lines | Consumer | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	70	35
Credit lines | Consumer | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	12	35
Credit lines | Consumer | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	558	207
Credit lines | Consumer | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	10,090	10,719
Credit cards | Consumer
Financing Receivable, Past Due [Line Items]
Total Loans	38,382	40,314
Credit cards | Consumer | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	38,382	40,314
Loans 90+ Days Past Due and Still Accruing	0	0
Credit cards | Consumer | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	542	657
Credit cards | Consumer | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	281	280
Credit cards | Consumer | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	722	586
Credit cards | Consumer | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	1,545	1,523
Credit cards | Consumer | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	36,837	38,791
Overdraft | Consumer
Financing Receivable, Past Due [Line Items]
Total Loans	271	296
Overdraft | Consumer | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	271	296
Loans 90+ Days Past Due and Still Accruing	0	0
Overdraft | Consumer | 30-59 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	63	87
Overdraft | Consumer | 60-89 Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	0	14
Overdraft | Consumer | 90+ Days Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	0	0
Overdraft | Consumer | Total Past Due | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	63	101
Overdraft | Consumer | Current | Non-PCD
Financing Receivable, Past Due [Line Items]
Total Loans	$ 208	$ 195

XML

LOANS (Investment in Loans on Non-Accrual Status) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	$ 49,139	$ 63,399
Non-accrual with no Allowance for Credit Loss	23,056	16,000
Total	72,195	79,399
Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	48,326	60,089
Non-accrual with no Allowance for Credit Loss	18,877	12,636
Total	67,203	72,725
PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	813	3,310
Non-accrual with no Allowance for Credit Loss	4,179	3,364
Total	4,992	6,674
Commercial loans | Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	18,949	27,337
Non-accrual with no Allowance for Credit Loss	15,528	8,759
Total	34,477	36,096
Commercial loans | Non-PCD | Puerto Rico
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	6,446	8,113
Non-accrual with no Allowance for Credit Loss	15,528	8,759
Total	21,974	16,872
Commercial loans | Non-PCD | UNITED STATES
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	12,503	19,224
Non-accrual with no Allowance for Credit Loss	0	0
Total	12,503	19,224
Commercial loans | PCD | Puerto Rico
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	569	3,060
Non-accrual with no Allowance for Credit Loss	4,179	3,364
Total	4,748	6,424
Mortgage loans | Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	9,396	10,339
Non-accrual with no Allowance for Credit Loss	3,312	3,858
Total	12,708	14,197
Mortgage loans | PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	244	250
Non-accrual with no Allowance for Credit Loss	0	0
Total	244	250
Consumer | Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	3,297	3,362
Non-accrual with no Allowance for Credit Loss	32	14
Total	3,329	3,376
Auto loans | Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	16,684	19,051
Non-accrual with no Allowance for Credit Loss	5	5
Total	16,689	19,056
Commercial secured by real estate: | Commercial loans | Non-PCD | Puerto Rico
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	4,789	3,553
Non-accrual with no Allowance for Credit Loss	12,865	7,929
Total	17,654	11,482
Commercial secured by real estate: | Commercial loans | PCD | Puerto Rico
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	569	3,060
Non-accrual with no Allowance for Credit Loss	3,468	2,417
Total	4,037	5,477
Other commercial and industrial | Commercial loans | Non-PCD | Puerto Rico
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	1,657	4,560
Non-accrual with no Allowance for Credit Loss	2,663	830
Total	4,320	5,390
Other commercial and industrial | Commercial loans | PCD | Puerto Rico
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	0	0
Non-accrual with no Allowance for Credit Loss	711	947
Total	711	947
Personal loans | Consumer | Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	2,564	2,741
Non-accrual with no Allowance for Credit Loss	32	14
Total	2,596	2,755
Credit lines | Consumer | Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	12	35
Non-accrual with no Allowance for Credit Loss	0	0
Total	12	35
Credit cards | Consumer | Non-PCD
Financing Receivable, Nonaccrual [Line Items]
Non-accrual with Allowance for Credit Loss	721	586
Non-accrual with no Allowance for Credit Loss	0	0
Total	$ 721	$ 586

XML

LOANS (Troubled-Amortized Cost Basis Debt Restructuring Loan Portfolio) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 32	$ 0	$ 58	$ 0
Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	595	7,315	694	10,275
Principal Forbearance / Forgiveness
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	0	0	$ 0	100
% of Total Class of Financing Receivable			0.00%
Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	92	475	$ 92	686
Combination of Term Extension and Principal Forgiveness / Forbearance
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	0	4,691	$ 0	4,691
% of Total Class of Financing Receivable			0.00%
Commercial loans | Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Interest Rate Reduction | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 5,488		$ 5,957
% of Total Class of Financing Receivable		0.20%		0.21%
Commercial loans | Term Extension | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 5,488		$ 5,957
% of Total Class of Financing Receivable		0.20%		0.21%
Commercial loans | Principal Forbearance / Forgiveness
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Principal Forbearance / Forgiveness | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Combination of Term Extension and Interest Rate Reduction | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Combination of Term Extension and Principal Forgiveness / Forbearance
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 4,260		$ 4,260
% of Total Class of Financing Receivable		0.64%		0.64%
Commercial loans | Combination of Term Extension and Principal Forgiveness / Forbearance | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial secured by real estate: | Interest Rate Reduction | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial secured by real estate: | Term Extension | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 5,341		$ 5,810
% of Total Class of Financing Receivable		0.48%		0.52%
Commercial loans | Commercial secured by real estate: | Principal Forbearance / Forgiveness | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial secured by real estate: | Combination of Term Extension and Interest Rate Reduction | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial secured by real estate: | Combination of Term Extension and Principal Forgiveness / Forbearance | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Other commercial and industrial | Interest Rate Reduction | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Other commercial and industrial | Term Extension | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 147		$ 147
% of Total Class of Financing Receivable		0.01%		0.01%
Commercial loans | Other commercial and industrial | Principal Forbearance / Forgiveness | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Other commercial and industrial | Combination of Term Extension and Interest Rate Reduction | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Other commercial and industrial | Combination of Term Extension and Principal Forgiveness / Forbearance | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial US | Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial US | Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial US | Principal Forbearance / Forgiveness
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial US | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0		$ 0
% of Total Class of Financing Receivable		0.00%		0.00%
Commercial loans | Commercial US | Combination of Term Extension and Principal Forgiveness / Forbearance
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 4,260		$ 4,260
% of Total Class of Financing Receivable		0.64%		0.64%
Mortgage loans | Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 0	$ 0	$ 0	$ 0
% of Total Class of Financing Receivable	0.00%	0.00%	0.00%	0.00%
Mortgage loans | Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 595	$ 1,827	$ 687	$ 4,318
% of Total Class of Financing Receivable	0.04%	0.11%	0.05%	0.27%
Mortgage loans | Principal Forbearance / Forgiveness
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 0	$ 0	$ 0	$ 100
% of Total Class of Financing Receivable	0.00%	0.00%	0.00%	0.01%
Mortgage loans | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 92	$ 417	$ 92	$ 602
% of Total Class of Financing Receivable	0.01%	0.03%	0.01%	0.02%
Mortgage loans | Combination of Term Extension and Principal Forgiveness / Forbearance
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 0	$ 431	$ 0	$ 431
% of Total Class of Financing Receivable	0.00%	0.03%	0.00%	0.03%
Consumer | Personal loans | Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0	$ 26	$ 0
% of Total Class of Financing Receivable		0.00%	0.00%	0.00%
Consumer | Personal loans | Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0	$ 7	$ 0
% of Total Class of Financing Receivable		0.00%	0.00%	0.00%
Consumer | Personal loans | Principal Forbearance / Forgiveness
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0	$ 0	$ 0
% of Total Class of Financing Receivable		0.00%	0.00%	0.00%
Consumer | Personal loans | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 58	$ 0	$ 84
% of Total Class of Financing Receivable		0.01%	0.00%	0.02%
Consumer | Personal loans | Combination of Term Extension and Principal Forgiveness / Forbearance
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis		$ 0	$ 0	$ 0
% of Total Class of Financing Receivable		0.00%	0.00%	0.00%
Auto loans | Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 32		$ 32
% of Total Class of Financing Receivable	0.00%		0.00%
Auto loans | Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 0		$ 0
% of Total Class of Financing Receivable	0.00%		0.00%
Auto loans | Principal Forbearance / Forgiveness
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 0
% of Total Class of Financing Receivable	0.00%
Auto loans | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 0		$ 0
% of Total Class of Financing Receivable	0.00%		0.00%
Auto loans | Combination of Term Extension and Principal Forgiveness / Forbearance
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 0
% of Total Class of Financing Receivable	0.00%

XML

LOANS (Effect of Combined Modifications) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Commercial loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction
Weighted-Average Term Extension (In months)		56 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)		$ 2,973
Commercial loans | Commercial US
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction		0.00%
Weighted-Average Term Extension (In months)		31 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)		$ 2,973
Commercial loans | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction				0.00%
Weighted-Average Term Extension (In months)				56 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)				$ 2,973
Commercial loans | Puerto Rico | Commercial secured by real estate:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction		0.00%		0.00%
Weighted-Average Term Extension (In months)		25 months		24 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)		$ 0		$ 0
Commercial loans | Puerto Rico | Commercial US
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction				0.00%
Weighted-Average Term Extension (In months)				31 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)				$ 2,973
Mortgage loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction	0.38%	1.86%	0.38%	2.04%
Weighted-Average Term Extension (In months)	178 months	195 months	176 months	206 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)	$ 0	$ 20	$ 0	$ 24
Consumer | Personal loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction		1.25%	5.00%	2.50%
Weighted-Average Term Extension (In months)		110 months	18 months	81 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)		$ 0	$ 0	$ 0
Auto loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted-Average Interest Rate Reduction	3.00%		3.00%
Weighted-Average Term Extension (In months)	0 months		0 months
Weighted-Average Forgiveness/Forbearance of Principal Amount (In thousands)	$ 0		$ 0

XML

LOANS (Loans Held For Investment That Subsequently Defaulted) (Details) - Mortgage loans - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	$ 108	$ 415
Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	0	0
Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	108	415
Principal Forbearance / Forgiveness
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	0	0
Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded Investment	$ 0	$ 0

XML

LOANS (Aging of Loans Held For Investment) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	$ 6,116	$ 15,752
30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	315	0
60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	29	122
90+ Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	108	415
Total Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	452	537
Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	5,664	15,215
Commercial loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	3,473	10,217
Commercial loans | 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | 90+ Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Total Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	3,473	10,217
Commercial loans | Commercial PR | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	762
Commercial loans | Commercial PR | 30-59 Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Commercial loans | Commercial PR | 60-89 Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Commercial loans | Commercial PR | 90+ Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Commercial loans | Commercial PR | Total Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Commercial loans | Commercial PR | Current | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	762
Commercial loans | Commercial secured by real estate: | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	136	5,810
Commercial loans | Commercial secured by real estate: | 30-59 Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial secured by real estate: | 60-89 Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial secured by real estate: | 90+ Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial secured by real estate: | Total Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial secured by real estate: | Current | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	136	5,810
Commercial loans | Other commercial and industrial | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	626	147
Commercial loans | Other commercial and industrial | 30-59 Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Other commercial and industrial | 60-89 Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Other commercial and industrial | 90+ Days Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Other commercial and industrial | Total Past Due | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Other commercial and industrial | Current | Puerto Rico
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	626	147
Commercial loans | Commercial US | UNITED STATES
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	2,711	4,260
Commercial loans | Commercial US | 30-59 Days Past Due | UNITED STATES
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial US | 60-89 Days Past Due | UNITED STATES
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial US | 90+ Days Past Due | UNITED STATES
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial US | Total Past Due | UNITED STATES
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Commercial loans | Commercial US | Current | UNITED STATES
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	2,711	4,260
Mortgage loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	2,435	5,451
Mortgage loans | 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	315	0
Mortgage loans | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	29	122
Mortgage loans | 90+ Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	108	415
Mortgage loans | Total Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	452	537
Mortgage loans | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	1,983	4,914
Consumer | Personal loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	70	84
Consumer | Personal loans | 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Consumer | Personal loans | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Consumer | Personal loans | 90+ Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Consumer | Personal loans | Total Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0	0
Consumer | Personal loans | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	70	$ 84
Auto loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	138
Auto loans | 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Auto loans | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Auto loans | 90+ Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Auto loans | Total Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	0
Auto loans | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total Loans	$ 138

XML

LOANS (Aging of the Amortized Cost of Collateral-Dependent Loans Held For Investment) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Commercial loans | Commercial secured by real estate: | Real Estate | Puerto Rico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans secured by real estate	$ 13,772	$ 8,027

XML

LOANS (Credit Quality Indicators of Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	$ 7,639,707		$ 7,639,707		$ 7,534,379
Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	6,624,471		6,624,471		6,463,127
Total	22,474	$ 18,374	50,053	$ 34,869
Commercial PR:
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	3,082,363		3,082,363		3,076,903
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			114		33
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			50		1,280
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			629		2,002
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			5,056		136
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		103
Prior, charge-offs			1,201		10,637
Revolving Loans Amortized Cost Basis, gross charge-offs			0		0
Total			7,050		14,191
Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	228,759		228,759		662,278
Term loans amortized by cost basis, in one year prior to current fiscal year	643,818		643,818		393,072
Term loans amortized by cost basis, in two years prior to current fiscal year	358,773		358,773		387,643
Term loans amortized by cost basis, in three years prior to current fiscal year	368,627		368,627		195,785
Term loans amortized by cost basis, in four years prior to current fiscal year	174,424		174,424		135,588
Prior	291,551		291,551		184,376
Revolving Loans Amortized Cost Basis	887,827		887,827		982,714
Total Loans	2,953,779		2,953,779		2,941,456
Total	1,734	3,496	7,050	4,871
Mortgage loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	1,485,127		1,485,127		1,562,609
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			0		4
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		0
Prior, charge-offs			65		755
Revolving Loans Amortized Cost Basis, gross charge-offs			0		0
Total			65		759
Mortgage loans | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	10,304		10,304		24,623
Term loans amortized by cost basis, in one year prior to current fiscal year	17,799		17,799		19,722
Term loans amortized by cost basis, in two years prior to current fiscal year	19,296		19,296		23,484
Term loans amortized by cost basis, in three years prior to current fiscal year	22,493		22,493		15,929
Term loans amortized by cost basis, in four years prior to current fiscal year	15,199		15,199		15,068
Prior	514,940		514,940		530,421
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	600,031		600,031		629,247
Total	1	191	65	392
Mortgage loans | Performing | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	10,304		10,304		24,623
Term loans amortized by cost basis, in one year prior to current fiscal year	17,149		17,149		19,722
Term loans amortized by cost basis, in two years prior to current fiscal year	19,296		19,296		23,303
Term loans amortized by cost basis, in three years prior to current fiscal year	22,321		22,321		15,821
Term loans amortized by cost basis, in four years prior to current fiscal year	15,094		15,094		14,589
Prior	498,542		498,542		511,182
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	582,706		582,706		609,240
Mortgage loans | Nonperforming | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	650		650		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		181
Term loans amortized by cost basis, in three years prior to current fiscal year	172		172		108
Term loans amortized by cost basis, in four years prior to current fiscal year	105		105		479
Prior	16,398		16,398		19,239
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	17,325		17,325		20,007
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	644,177		644,177		620,446
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			56		1,748
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			4,355		10,512
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			6,759		4,661
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			2,036		830
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			425		1,384
Prior, charge-offs			735		731
Revolving Loans Amortized Cost Basis, gross charge-offs			1,795		3,789
Total			16,161		23,655
Consumer | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	140,471		140,471		271,383
Term loans amortized by cost basis, in one year prior to current fiscal year	224,715		224,715		188,200
Term loans amortized by cost basis, in two years prior to current fiscal year	148,003		148,003		68,437
Term loans amortized by cost basis, in three years prior to current fiscal year	53,005		53,005		19,378
Term loans amortized by cost basis, in four years prior to current fiscal year	15,001		15,001		14,526
Prior	13,076		13,076		6,431
Revolving Loans Amortized Cost Basis	49,301		49,301		51,536
Total Loans	643,572		643,572		619,894
Total	8,180	5,518	16,161	10,958
Mortgage and consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			56		1,748
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			4,355		10,516
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			6,759		4,661
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			2,036		830
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			425		1,384
Prior, charge-offs			800		1,486
Revolving Loans Amortized Cost Basis, gross charge-offs			1,795		3,789
Total			16,226		24,414
Mortgage and consumer loans | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	150,775		150,775		296,009
Term loans amortized by cost basis, in one year prior to current fiscal year	242,514		242,514		207,922
Term loans amortized by cost basis, in two years prior to current fiscal year	167,299		167,299		91,921
Term loans amortized by cost basis, in three years prior to current fiscal year	75,498		75,498		35,307
Term loans amortized by cost basis, in four years prior to current fiscal year	30,200		30,200		29,594
Prior	528,016		528,016		536,852
Revolving Loans Amortized Cost Basis	49,301		49,301		51,536
Total Loans	1,243,603		1,243,603		1,249,141
Auto loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	2,428,040		2,428,040		2,274,421
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			137		4,090
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			9,196		18,142
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			9,310		10,894
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			3,889		4,008
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			1,784		3,380
Prior, charge-offs			2,461		3,250
Total			26,777		43,764
Auto loans | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	427,762		427,762		820,277
Term loans amortized by cost basis, in one year prior to current fiscal year	793,114		793,114		631,054
Term loans amortized by cost basis, in two years prior to current fiscal year	555,944		555,944		364,865
Term loans amortized by cost basis, in three years prior to current fiscal year	314,030		314,030		189,059
Term loans amortized by cost basis, in four years prior to current fiscal year	155,944		155,944		152,192
Prior	180,295		180,295		115,083
Total Loans	2,427,089		2,427,089		2,272,530
Total	12,559	$ 9,169	26,777	$ 18,648
Auto loans | 1-660 | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	72,253		72,253		170,639
Term loans amortized by cost basis, in one year prior to current fiscal year	193,855		193,855		190,743
Term loans amortized by cost basis, in two years prior to current fiscal year	178,546		178,546		118,821
Term loans amortized by cost basis, in three years prior to current fiscal year	106,187		106,187		57,087
Term loans amortized by cost basis, in four years prior to current fiscal year	48,537		48,537		41,124
Prior	56,594		56,594		38,570
Total Loans	655,972		655,972		616,984
Auto loans | 661-699 | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	86,699		86,699		169,430
Term loans amortized by cost basis, in one year prior to current fiscal year	148,429		148,429		110,260
Term loans amortized by cost basis, in two years prior to current fiscal year	88,989		88,989		58,166
Term loans amortized by cost basis, in three years prior to current fiscal year	45,869		45,869		25,886
Term loans amortized by cost basis, in four years prior to current fiscal year	20,872		20,872		18,253
Prior	22,658		22,658		16,137
Total Loans	413,516		413,516		398,132
Auto loans | 700+ | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	265,909		265,909		474,005
Term loans amortized by cost basis, in one year prior to current fiscal year	443,723		443,723		323,514
Term loans amortized by cost basis, in two years prior to current fiscal year	282,292		282,292		183,286
Term loans amortized by cost basis, in three years prior to current fiscal year	157,960		157,960		103,886
Term loans amortized by cost basis, in four years prior to current fiscal year	84,776		84,776		88,929
Prior	98,252		98,252		58,779
Total Loans	1,332,912		1,332,912		1,232,399
Auto loans | No FICO | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	2,901		2,901		6,203
Term loans amortized by cost basis, in one year prior to current fiscal year	7,107		7,107		6,537
Term loans amortized by cost basis, in two years prior to current fiscal year	6,117		6,117		4,592
Term loans amortized by cost basis, in three years prior to current fiscal year	4,014		4,014		2,200
Term loans amortized by cost basis, in four years prior to current fiscal year	1,759		1,759		3,886
Prior	2,791		2,791		1,597
Total Loans	24,689		24,689		25,015
Personal loans | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			56		1,748
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			4,355		10,512
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			6,759		4,661
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			2,036		830
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			425		1,384
Prior, charge-offs			735		731
Revolving Loans Amortized Cost Basis, gross charge-offs			0		0
Total			14,366		19,866
Personal loans | Consumer | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	140,471		140,471		271,386
Term loans amortized by cost basis, in one year prior to current fiscal year	224,715		224,715		188,200
Term loans amortized by cost basis, in two years prior to current fiscal year	148,003		148,003		68,437
Term loans amortized by cost basis, in three years prior to current fiscal year	53,005		53,005		19,378
Term loans amortized by cost basis, in four years prior to current fiscal year	15,001		15,001		14,526
Prior	13,076		13,076		6,431
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	594,271		594,271		568,358
Personal loans | Consumer | Performing | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	140,402		140,402		270,883
Term loans amortized by cost basis, in one year prior to current fiscal year	223,895		223,895		186,612
Term loans amortized by cost basis, in two years prior to current fiscal year	146,898		146,898		68,133
Term loans amortized by cost basis, in three years prior to current fiscal year	52,589		52,589		19,185
Term loans amortized by cost basis, in four years prior to current fiscal year	14,925		14,925		14,460
Prior	12,966		12,966		6,330
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	591,675		591,675		565,603
Personal loans | Consumer | Nonperforming | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	69		69		503
Term loans amortized by cost basis, in one year prior to current fiscal year	820		820		1,588
Term loans amortized by cost basis, in two years prior to current fiscal year	1,105		1,105		304
Term loans amortized by cost basis, in three years prior to current fiscal year	416		416		193
Term loans amortized by cost basis, in four years prior to current fiscal year	76		76		66
Prior	110		110		101
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	2,596		2,596		2,755
Credit lines | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	11,000		11,000		11,214
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		0
Prior, charge-offs			0		0
Revolving Loans Amortized Cost Basis, gross charge-offs			88		419
Total			88		419
Credit lines | Consumer | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	10,648		10,648		10,926
Total Loans	10,648		10,648		10,926
Credit lines | Consumer | Performing | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	10,636		10,636		10,891
Total Loans	10,636		10,636		10,891
Credit lines | Consumer | Nonperforming | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	12		12		35
Total Loans	12		12		35
Credit cards | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	38,382		38,382		40,314
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		0
Prior, charge-offs			0		0
Revolving Loans Amortized Cost Basis, gross charge-offs			1,165		2,825
Total			1,165		2,825
Credit cards | Consumer | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	38,382		38,382		40,314
Total Loans	38,382		38,382		40,314
Credit cards | Consumer | Performing | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	37,661		37,661		39,728
Total Loans	37,661		37,661		39,728
Credit cards | Consumer | Nonperforming | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	721		721		586
Total Loans	721		721		586
Overdraft | Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	271		271		296
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		0
Prior, charge-offs			0		0
Revolving Loans Amortized Cost Basis, gross charge-offs			542		545
Total			542		545
Overdraft | Consumer | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	271		271		296
Total Loans	271		271		296
Overdraft | Consumer | Performing | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	271		271		296
Total Loans	271		271		296
Overdraft | Consumer | Nonperforming | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	0		0		0
Puerto Rico | Commercial PR:
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	2,420,337		2,420,337		2,321,675
Puerto Rico | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	2,291,753		2,291,753		2,186,228
Puerto Rico | Commercial secured by real estate: | Commercial PR:
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	1,296,661		1,296,661		1,216,195
Puerto Rico | Commercial secured by real estate: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	110,497		110,497		224,598
Term loans amortized by cost basis, in one year prior to current fiscal year	222,738		222,738		218,436
Term loans amortized by cost basis, in two years prior to current fiscal year	231,615		231,615		203,824
Term loans amortized by cost basis, in three years prior to current fiscal year	201,218		201,218		126,655
Term loans amortized by cost basis, in four years prior to current fiscal year	115,382		115,382		98,962
Prior	237,683		237,683		155,470
Revolving Loans Amortized Cost Basis	63,012		63,012		67,262
Total Loans	1,182,145		1,182,145		1,095,207
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			0		265
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			0		0
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		94
Prior, charge-offs			7		820
Revolving Loans Amortized Cost Basis, gross charge-offs			0		0
Total			7		1,179
Puerto Rico | Other commercial and industrial | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	74,157		74,157		284,626
Term loans amortized by cost basis, in one year prior to current fiscal year	282,931		282,931		102,948
Term loans amortized by cost basis, in two years prior to current fiscal year	74,967		74,967		114,586
Term loans amortized by cost basis, in three years prior to current fiscal year	100,571		100,571		37,924
Term loans amortized by cost basis, in four years prior to current fiscal year	29,575		29,575		8,424
Prior	18,955		18,955		15,122
Revolving Loans Amortized Cost Basis	528,452		528,452		527,391
Total Loans	1,109,608		1,109,608		1,091,021
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			114		0
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			50		124
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			237		1,095
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			3,307		89
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		9
Prior, charge-offs			11		1,180
Revolving Loans Amortized Cost Basis, gross charge-offs			0		0
Total			3,719		2,497
Puerto Rico | Pass | Commercial secured by real estate: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	110,497		110,497		224,598
Term loans amortized by cost basis, in one year prior to current fiscal year	221,993		221,993		216,205
Term loans amortized by cost basis, in two years prior to current fiscal year	223,863		223,863		195,884
Term loans amortized by cost basis, in three years prior to current fiscal year	193,443		193,443		120,489
Term loans amortized by cost basis, in four years prior to current fiscal year	109,474		109,474		80,671
Prior	208,712		208,712		131,016
Revolving Loans Amortized Cost Basis	61,271		61,271		65,873
Total Loans	1,129,253		1,129,253		1,034,736
Puerto Rico | Pass | Other commercial and industrial | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	74,157		74,157		284,615
Term loans amortized by cost basis, in one year prior to current fiscal year	282,784		282,784		99,522
Term loans amortized by cost basis, in two years prior to current fiscal year	71,959		71,959		113,760
Term loans amortized by cost basis, in three years prior to current fiscal year	54,624		54,624		37,665
Term loans amortized by cost basis, in four years prior to current fiscal year	29,347		29,347		7,438
Prior	17,785		17,785		14,836
Revolving Loans Amortized Cost Basis	524,959		524,959		527,008
Total Loans	1,055,615		1,055,615		1,084,844
Puerto Rico | Special Mention | Commercial secured by real estate: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		1,772
Term loans amortized by cost basis, in two years prior to current fiscal year	7,298		7,298		6,554
Term loans amortized by cost basis, in three years prior to current fiscal year	6,375		6,375		5,057
Term loans amortized by cost basis, in four years prior to current fiscal year	4,702		4,702		15,676
Prior	13,031		13,031		12,500
Revolving Loans Amortized Cost Basis	113		113		153
Total Loans	31,519		31,519		41,712
Puerto Rico | Special Mention | Other commercial and industrial | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		8
Term loans amortized by cost basis, in one year prior to current fiscal year	5		5		2,953
Term loans amortized by cost basis, in two years prior to current fiscal year	2,695		2,695		0
Term loans amortized by cost basis, in three years prior to current fiscal year	45,033		45,033		0
Term loans amortized by cost basis, in four years prior to current fiscal year	2		2		51
Prior	147		147		100
Revolving Loans Amortized Cost Basis	1,060		1,060		0
Total Loans	48,942		48,942		3,112
Puerto Rico | Substandard | Commercial secured by real estate: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	745		745		459
Term loans amortized by cost basis, in two years prior to current fiscal year	454		454		1,386
Term loans amortized by cost basis, in three years prior to current fiscal year	1,400		1,400		1,109
Term loans amortized by cost basis, in four years prior to current fiscal year	1,206		1,206		2,615
Prior	15,940		15,940		11,939
Revolving Loans Amortized Cost Basis	1,628		1,628		1,236
Total Loans	21,373		21,373		18,744
Puerto Rico | Substandard | Other commercial and industrial | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		3
Term loans amortized by cost basis, in one year prior to current fiscal year	142		142		473
Term loans amortized by cost basis, in two years prior to current fiscal year	313		313		826
Term loans amortized by cost basis, in three years prior to current fiscal year	914		914		259
Term loans amortized by cost basis, in four years prior to current fiscal year	226		226		935
Prior	1,023		1,023		186
Revolving Loans Amortized Cost Basis	2,433		2,433		383
Total Loans	5,051		5,051		3,065
Puerto Rico | Doubtful | Commercial secured by real estate: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		15
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	0		0		15
Puerto Rico | Doubtful | Other commercial and industrial | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	0		0		0
Puerto Rico | Loss | Commercial secured by real estate: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	0		0		0
Puerto Rico | Loss | Other commercial and industrial | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	0		0		0
UNITED STATES | Commercial PR:
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	662,026		662,026		755,228
UNITED STATES | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	662,026		662,026		755,228
UNITED STATES | Commercial US: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	44,105		44,105		153,054
Term loans amortized by cost basis, in one year prior to current fiscal year	138,149		138,149		71,688
Term loans amortized by cost basis, in two years prior to current fiscal year	52,191		52,191		69,233
Term loans amortized by cost basis, in three years prior to current fiscal year	66,838		66,838		31,206
Term loans amortized by cost basis, in four years prior to current fiscal year	29,467		29,467		28,202
Prior	34,913		34,913		13,784
Revolving Loans Amortized Cost Basis	296,363		296,363		388,061
Total Loans	662,026		662,026		755,228
Term loans amortized by cost basis, in current fiscal year, gross charge-offs			0		33
Term loans amortized by cost basis, in one year prior to current fiscal year, gross charge-offs			0		1,156
Term loans amortized by cost basis, in two years prior to current fiscal year, gross charge-offs			392		642
Term loans amortized by cost basis, in three years prior to current fiscal year, gross charge-offs			1,749		47
Term loans amortized by cost basis, in four years prior to current fiscal year, gross charge-offs			0		0
Prior, charge-offs			1,183		8,637
Revolving Loans Amortized Cost Basis, gross charge-offs			0		0
Total			3,324		10,515
UNITED STATES | Pass | Commercial US: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	35,163		35,163		142,222
Term loans amortized by cost basis, in one year prior to current fiscal year	131,419		131,419		63,885
Term loans amortized by cost basis, in two years prior to current fiscal year	49,463		49,463		69,233
Term loans amortized by cost basis, in three years prior to current fiscal year	59,225		59,225		31,206
Term loans amortized by cost basis, in four years prior to current fiscal year	29,467		29,467		28,202
Prior	29,215		29,215		8,085
Revolving Loans Amortized Cost Basis	285,887		285,887		358,757
Total Loans	619,839		619,839		701,590
UNITED STATES | Special Mention | Commercial US: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		7,803
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	9,841		9,841		20,913
Total Loans	9,841		9,841		28,716
UNITED STATES | Substandard | Commercial US: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	6,532		6,532		10,832
Term loans amortized by cost basis, in one year prior to current fiscal year	6,730		6,730		0
Term loans amortized by cost basis, in two years prior to current fiscal year	2,728		2,728		0
Term loans amortized by cost basis, in three years prior to current fiscal year	7,613		7,613		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	5,698		5,698		5,699
Revolving Loans Amortized Cost Basis	635		635		8,391
Total Loans	29,936		29,936		24,922
UNITED STATES | Doubtful | Commercial US: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	2,410		2,410		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	2,410		2,410		0
UNITED STATES | Loss | Commercial US: | Commercial PR: | Non-PCD
Financing Receivable, Credit Quality Indicator [Line Items]
Term loans amortized by cost basis, in current fiscal year	0		0		0
Term loans amortized by cost basis, in one year prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in two years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in three years prior to current fiscal year	0		0		0
Term loans amortized by cost basis, in four years prior to current fiscal year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Total Loans	$ 0		$ 0		$ 0

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ALLOWANCE FOR CREDIT LOSSES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Decrease in allowance for credit losses			$ (3,800)
Provision for credit losses	$ 15,581	$ 15,044	30,702	$ 24,489
Financing receivable, excluding accrued interest, allowance for credit loss, writeoff (recovery)			(34,800)
Increase (decrease) in net charge-offs			(18,100)
Loss Rate Models
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision for credit losses			4,500
Economic Rate Models
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision for credit losses			4,900
Other commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Net charge off			3,500
Commercial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision for credit losses			2,900
Increase (decrease) in net charge-offs			(1,200)
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Increase (decrease) in net charge-offs			(6,200)
Auto loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Increase (decrease) in net charge-offs			(11,500)
Financing Receivable, Loan Growth Member
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision for credit losses			$ 26,400

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ALLOWANCE FOR CREDIT LOSSES (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 161,106
Balance at end of period	$ 157,301	$ 159,923	157,301	$ 159,923	$ 161,106
Commercial PR:
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(7,050)		(14,191)
Balance at end of period	34,598	50,012	34,598	50,012
Mortgage loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(65)		(759)
Balance at end of period	12,528	16,967	12,528	16,967
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(16,161)		(23,655)
Balance at end of period	29,440	25,674	29,440	25,674
Auto loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(26,777)		(43,764)
Balance at end of period	80,735	67,270	80,735	67,270
Non-PCD
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	148,767	141,385	152,610	141,841	141,841
(Recapture of) provision for credit losses	17,083	16,250	33,836	24,282
Charge-offs	(22,474)	(18,374)	(50,053)	(34,869)
Recoveries	7,473	10,906	14,456	18,913
Balance at end of period	150,849	150,167	150,849	150,167	152,610
Non-PCD | Commercial PR:
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	37,371	37,774	44,041	39,158	39,158
(Recapture of) provision for credit losses	(1,984)	14,089	(3,390)	13,754
Charge-offs	(1,734)	(3,496)	(7,050)	(4,871)
Recoveries	156	237	208	563
Balance at end of period	33,809	48,604	33,809	48,604	44,041
Non-PCD | Mortgage loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	7,627	9,083	7,998	9,571	9,571
(Recapture of) provision for credit losses	(1,280)	(556)	(1,854)	(1,059)
Charge-offs	(1)	(191)	(65)	(392)
Recoveries	540	334	807	550
Balance at end of period	6,886	8,670	6,886	8,670	7,998
Non-PCD | Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	27,453	24,664	27,086	23,264	23,264
(Recapture of) provision for credit losses	9,308	4,517	16,963	10,491
Charge-offs	(8,180)	(5,518)	(16,161)	(10,958)
Recoveries	851	2,003	1,544	2,869
Balance at end of period	29,432	25,666	29,432	25,666	27,086
Non-PCD | Auto loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	76,316	69,864	73,485	69,848	69,848
(Recapture of) provision for credit losses	11,039	(1,800)	22,117	1,096
Charge-offs	(12,559)	(9,169)	(26,777)	(18,648)
Recoveries	5,926	8,332	11,897	14,931
Balance at end of period	80,722	67,227	80,722	67,227	73,485
PCD
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	7,796	10,499	8,496	10,832	10,832
(Recapture of) provision for credit losses	(1,332)	(1,606)	(2,816)	(307)
Charge-offs	(300)	(159)	(392)	(2,638)
Recoveries	288	1,022	1,164	1,869
Balance at end of period	6,452	9,756	6,452	9,756	8,496
PCD | Commercial PR:
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	1,133	1,693	1,113	1,388	1,388
(Recapture of) provision for credit losses	(237)	(604)	(374)	1,316
Charge-offs	(265)	0	(265)	(2,104)
Recoveries	158	319	315	808
Balance at end of period	789	1,408	789	1,408	1,113
PCD | Mortgage loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	6,638	8,717	7,351	9,359	9,359
(Recapture of) provision for credit losses	(1,060)	(679)	(2,328)	(1,493)
Charge-offs	(29)	(1)	(112)	(76)
Recoveries	93	260	731	507
Balance at end of period	5,642	8,297	5,642	8,297	7,351
PCD | Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	7	12	7	14	14
(Recapture of) provision for credit losses	(6)	78	(29)	278
Charge-offs	0	(124)	0	(337)
Recoveries	7	42	30	53
Balance at end of period	8	8	8	8	7
PCD | Auto loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	18	77	25	71	71
(Recapture of) provision for credit losses	(29)	(401)	(85)	(408)
Charge-offs	(6)	(34)	(15)	(121)
Recoveries	30	401	88	501
Balance at end of period	$ 13	$ 43	$ 13	$ 43	$ 25

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FORECLOSED REAL ESTATE (Foreclosed Real Estate Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Other Real Estate Owned Activity [Roll Forward]
Foreclosed real estate beginning balance	$ 10,850	$ 9,250	$ 10,780	$ 11,214
Additions	706	3,196	2,051	4,634
Sales	(5,104)	(3,072)	(6,930)	(6,653)
Decline in value	(131)	(272)	(301)	(400)
Other adjustments	205	1,537	926	1,844
Foreclosed real estate ending balance	$ 6,526	$ 10,639	$ 6,526	$ 10,639

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SERVICING ASSETS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Servicing Assets at Fair Value [Line Items]
Servicing assets	$ 49,789	$ 49,966	$ 49,789	$ 49,966	$ 49,553	$ 49,520	$ 49,345	$ 50,921
Servicing fees on mortgage loans	1,325	702	1,893	1,584
Conventional Mortgage Loan
Servicing Assets at Fair Value [Line Items]
Servicing fees on mortgage loans	$ 4,500	$ 4,800	$ 8,900	$ 9,800

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SERVICING ASSETS (Changes in Serving Rights at Fair Value) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Servicing Asset at Fair Value, Amount [Roll Forward]
Fair value at beginning of period	$ 49,553	$ 49,345	$ 49,520	$ 50,921
Servicing from mortgage securitization or asset transfers	303	791	830	1,365
Changes due to payments on loans	(732)	(1,085)	(1,652)	(2,150)
Changes in fair value due to changes in valuation model inputs or assumptions	665	915	1,091	(170)
Fair value at end of period	$ 49,789	$ 49,966	$ 49,789	$ 49,966

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SERVICING ASSETS (Key Economic Assumptions) (Details)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Minimum
Servicing Assets at Fair Value [Line Items]
Constant prepayment rate	1.49%	3.49%
Discount rate	10.00%	10.00%
Maximum
Servicing Assets at Fair Value [Line Items]
Constant prepayment rate	11.45%	21.68%
Discount rate	15.50%	15.50%

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SERVICING ASSETS (Sensitivity of Current Fair Value of Servicing Assets) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Transfers and Servicing [Abstract]
Carrying value of mortgage servicing asset	$ 49,789	$ 49,520
Weighted average life (in years)	7 years 3 months 18 days	7 years 3 months 18 days
Constant prepayment rate - Decrease in fair value due to 10% adverse change	$ (924)	$ (928)
Constant prepayment rate - Decrease in fair value due to 20% adverse change	(1,812)	(1,821)
Discount rate - Decrease in fair value due to 10% adverse change	(2,021)	(1,999)
Discount rate - Decrease in fair value due to 20% adverse change	$ (3,898)	$ (3,856)

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GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule Of Goodwill) (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Finite-Lived Intangible Assets [Line Items]
Goodwill, Beginning Balance	$ 84,241
Goodwill, Ending Balance	84,241
Banking
Finite-Lived Intangible Assets [Line Items]
Goodwill, Beginning Balance	84,063
Goodwill, Ending Balance	84,063
Wealth Management
Finite-Lived Intangible Assets [Line Items]
Goodwill, Beginning Balance	178
Goodwill, Ending Balance	178
Treasury
Finite-Lived Intangible Assets [Line Items]
Goodwill, Beginning Balance	0
Goodwill, Ending Balance	$ 0

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GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Increase (decrease) in carrying amount of goodwill	$ 0	$ 0	$ 0	$ 0
Accumulated impairment losses	0		0		$ 0
Impairment of goodwill			0		$ 0
Intangible asset impairment			0
Amortization of intangible assets	$ 1,500	$ 1,700	$ 2,956	$ 3,450

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GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Core Deposit, Customer Relationship and Other Intangibles) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 54,200	$ 54,200
Accumulated Amortization	36,462	33,506
Net Carrying Value	17,738	20,694
Core deposit intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	41,507	41,507
Accumulated Amortization	27,923	25,659
Net Carrying Value	13,584	15,848
Customer relationship intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,693	12,693
Accumulated Amortization	8,539	7,847
Net Carrying Value	$ 4,154	$ 4,846

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GOODWILL AND OTHER INTANGIBLE ASSETS (Estimated Amortization of Other Intangible Assets) (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 5,913
2025	4,927
2026	3,942
2027	2,956
2028	1,971
Thereafter	$ 985

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ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Schedule of Accrued Interest Receivable) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 72,969	$ 71,400
Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	64,049	63,526
Investments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 8,920	$ 7,874

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ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other assets [Line Items]
Prepaid expenses	$ 88,481	$ 63,040
Prepaid municipal, property, and income taxes	76,600	54,700
Other repossessed assets	5,713	4,032
COVID-19 and Hurricane Fiona Deferral Program Loans
Other assets [Line Items]
Accrued interest receivable	19,500	20,200
COVID-19 and Hurricane Fiona Deferral Program Loans | Accrued Income Receivable
Other assets [Line Items]
Allowance for credit losses	92	85
COVID-19 and Hurricane Fiona Deferral Program Loans | Current
Other assets [Line Items]
Accrued interest receivable	$ 18,700	$ 18,200

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ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Other Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accrued Interest Receivable and Other Assets [Abstract]
Prepaid expenses	$ 88,481	$ 63,040
Other repossessed assets	5,713	4,032
Accounts receivable and other assets	56,760	47,859
Other assets	$ 150,954	$ 114,931

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DEPOSITS AND RELATED INTEREST (Deposits by Components) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Deposits and Related Interest [Abstract]
Non-interest-bearing demand deposits	$ 2,608,902	$ 2,537,431
Interest-bearing savings and demand deposits	5,410,804	5,601,099
Retail certificates of deposit	1,142,257	1,083,316
Institutional certificates of deposit	442,869	378,143
Total core deposits	9,604,832	9,599,989
Brokered deposits	418	162,180
Total deposits	$ 9,605,250	$ 9,762,169

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DEPOSITS AND RELATED INTEREST (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Deposits and Related Interest [Line Items]
Uninsured deposits	$ 4,979,000	$ 4,885,000
Deposits percent	52.00%	50.00%
Weighted average interest rate of deposits	1.50%	0.88%
Time deposits in denominations in excess of $250,000	$ 867,300	$ 747,200
Deposits	9,605,250	9,762,169
Public funds collateral investments	1,679,000	1,645,000
Accrued interest on time deposits	1,800	3,000
Overdrafts in demand deposit accounts	650	564
Government | Puerto Rico
Deposits and Related Interest [Line Items]
Deposits	$ 1,577,000	$ 1,616,000

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DEPOSITS AND RELATED INTEREST (Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Deposits and Related Interest [Abstract]
Demand and savings deposits	$ 26,682	$ 10,423	$ 52,748	$ 19,092
Certificates of deposit	11,130	5,493	21,856	9,321
Total	$ 37,812	$ 15,916	$ 74,604	$ 28,413

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DEPOSITS AND RELATED INTEREST (Maturities of Time Deposits) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Year-end amount, Within One Year
Three months or less	$ 312,747	$ 457,533
Over 3 months through 6 months	227,691	195,902
Over 6 months through 1 year	590,451	329,758
Within one year	1,130,889	983,193
Year-end amount, after one year:
Over 1 through 2 years	308,181	467,348
Over 2 through 3 years	66,580	94,450
Over 3 through 4 years	38,804	29,514
Over 4 through 5 years	38,808	45,575
Over 5 years	527	608
Certificates of deposit	1,583,789	1,620,688
Uninsured amount, within one year:
Three months or less	137,864	115,392
Over 3 months through 6 months	95,415	61,245
Over 6 months through 1 year	250,814	113,524
Within one year	484,093	290,161
Uninsured amount, after one year:
Over 1 through 2 years	93,103	201,478
Over 2 through 3 years	7,465	13,971
Over 3 through 4 years	1,699	1,379
Over 4 through 5 years	4,971	4,665
Over 5 years	0	0
Uninsured amount	$ 591,331	$ 511,654

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BORROWINGS AND RELATED INTEREST (Advances from the Federal Home Loan Bank of New York) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Additional borrowing capacity	$ 451,600	$ 446,000
Weighted average period remaining maturity of FHLB advances	8 months	1 year 2 months 12 days
Advances from the Federal Home Loan Bank
Debt Instrument [Line Items]
Minimum amount of qualifying collateral	110.00%
Accrued interest payable	$ 741	$ 768
Advances from the Federal Home Loan Bank | Long-Term Fixed-Rate Advances from FHLB
Debt Instrument [Line Items]
Original debt instrument term of FHLB advances	2 years
Advances from the Federal Home Loan Bank | Asset Pledged as Collateral
Debt Instrument [Line Items]
Total loans	$ 1,000,000	$ 1,000,000

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BORROWINGS AND RELATED INTEREST (Schedule of Federal Home Loan Bank Advances And Maturity) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	$ 200,741	$ 200,768
Advances from the Federal Home Loan Bank
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	200,000	200,000
Federal Loan Home Bank Advances Short Term Period | Advances from the Federal Home Loan Bank
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	$ 200,000	0
Long-Term Fixed-Rate Advances from FHLB | Advances from the Federal Home Loan Bank
Debt Instrument [Line Items]
Weighted average interest rate of FHLB advances	4.52%
Long-Term Fixed-Rate Advances from FHLB | Advances from the Federal Home Loan Bank
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	$ 0	200,000
Weighted average interest rate of FHLB advances	4.52%
Due less than one year | Advances from the Federal Home Loan Bank
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	$ 200,000	0
Over one to three years | Advances from the Federal Home Loan Bank
Debt Instrument [Line Items]
Advances from the Federal Home Loan Bank of New York (the “FHLB”)	$ 0	$ 200,000

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Statutory tax rate (as a percent)			37.50%
Valuation allowance	$ 6,500		$ 6,500		$ 7,000
Deferred tax asset, net	4,100		4,100		4,900
Deferred tax liability, valuation allowance	610		610		569
Deferred tax liabilities, net	33,873		33,873		22,444
Decrease in valuation allowance			$ 528
Effective tax rate (as a percent)			27.60%	30.90%
Expected effective tax rate for 2024			29.20%
Unrecognized tax benefits	970		$ 970		$ 936
Income tax expense	$ 20,129	$ 21,612	$ 38,354	$ 40,516

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REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
OFG Bancorp
Amount
Actual - Total capital to risk-weighted assets	$ 1,330,474	$ 1,278,537
Actual - Tier 1 capital to risk-weighted assets	1,223,031	1,174,205
Actual - Common equity tier 1 capital to risk-weighted assets	1,223,031	1,174,205
Actual - Tier 1 capital to average total assets	1,223,031	1,174,205
Minimum Capital Requirement - Total capital to risk-weighted assets	898,963	873,369
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets	727,732	707,013
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets	599,308	582,246
Minimum Capital Requirement - Tier 1 capital to average total assets	450,325	425,911
Minimum to be Well Capitalized - Total capital to risk-weighted assets	856,155	831,780
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets	684,924	665,424
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets	556,501	540,657
Minimum to be Well Capitalized - Tier 1 capital to average total assets	$ 562,906	$ 532,389
Ratio
Actual - total capital to risk-weighted assets	0.1554	0.1537
Actual - Tier 1 capital to risk-weighted assets	0.1429	0.1412
Actual - Common equity tier 1 capital to risk-weighted assets	0.1429	0.1412
Actual - Tier 1 capital to average total assets	0.1086	0.1103
Minimum Capital Requirement - Total capital to risk-weighted assets	0.1050	0.1050
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets	0.0850	0.0850
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets	0.0700	0.0700
Minimum Capital Requirement - Tier 1 capital to average total assets	0.0400	0.0400
Minimum to be Well Capitalized - Total capital to risk-weighted assets	0.1000	0.1000
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets	0.0800	0.0800
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets	0.0650	0.0650
Minimum to be Well Capitalized - Tier 1 capital to average total assets	0.0500	0.0500
Bank
Amount
Actual - Total capital to risk-weighted assets	$ 1,245,627	$ 1,179,164
Actual - Tier 1 capital to risk-weighted assets	1,138,874	1,075,487
Actual - Common equity tier 1 capital to risk-weighted assets	1,138,874	1,075,487
Actual - Tier 1 capital to average total assets	1,138,874	1,075,487
Minimum Capital Requirement - Total capital to risk-weighted assets	893,092	867,797
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets	722,979	702,503
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets	595,395	578,532
Minimum Capital Requirement - Tier 1 capital to average total assets	445,681	421,660
Minimum to be Well Capitalized - Total capital to risk-weighted assets	850,564	826,474
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets	680,451	661,179
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets	552,866	537,208
Minimum to be Well Capitalized - Tier 1 capital to average total assets	$ 557,101	$ 527,075
Ratio
Actual - total capital to risk-weighted assets	0.1464	0.1427
Actual - Tier 1 capital to risk-weighted assets	0.1339	0.1301
Actual - Common equity tier 1 capital to risk-weighted assets	0.1339	0.1301
Actual - Tier 1 capital to average total assets	0.1022	0.1020
Minimum Capital Requirement - Total capital to risk-weighted assets	0.1050	0.1050
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets	0.0850	0.0850
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets	0.0700	0.0700
Minimum Capital Requirement - Tier 1 capital to average total assets	0.0400	0.0400
Minimum to be Well Capitalized - Total capital to risk-weighted assets	0.1000	0.1000
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets	0.0800	0.0800
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets	0.0650	0.0650
Minimum to be Well Capitalized - Tier 1 capital to average total assets	0.0500	0.0500

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STOCKHOLDERS’ EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jan. 31, 2024	Dec. 31, 2023	Jan. 31, 2022
Equity, Class of Treasury Stock [Line Items]
Common stock	$ 59,885		$ 59,885			$ 59,885
Legal surplus	160,560		160,560			150,967
Transfer to legal surplus	$ 4,800	$ 4,200	$ 9,600	$ 8,700
Shares repurchased during period (in shares)	669,200	565,299	669,200	670,099
Common shares repurchased as part of the stock repurchase programs	$ 24,282	$ 13,573	$ 24,282	$ 16,467
Share repurchased, average price per share (in dollars per share)			$ 36.28
Shares purchased (in shares)			0	0
January 2022 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount							$ 100,000
Stock repurchase program, remaining authorized repurchase amount	17,200		$ 17,200
Shares repurchased during period (in shares)				670,099
Common shares repurchased as part of the stock repurchase programs				$ 16,500
Share repurchased, average price per share (in dollars per share)				$ 24.57
January 2024 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					$ 50,000
Stock repurchase program, remaining authorized repurchase amount	$ 25,700		$ 25,700
Stock repurchase program, remaining number of shares authorized to be repurchased (in shares)	686,741		686,741
Share price (in dollars per share)	$ 37.45		$ 37.45
Legal surplus
Equity, Class of Treasury Stock [Line Items]
Transfer from retained earnings	$ 4,828	$ 4,234	$ 9,593	$ 8,666
Common stock
Equity, Class of Treasury Stock [Line Items]
Accumulated common stock issuance costs charged against paid in capital	$ 13,600		$ 13,600			$ 13,600

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STOCKHOLDERS’ EQUITY (Activity of Common Shares Held in Treasury) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Shares
Beginning of period (in shares)	12,668,663	12,273,832	12,820,078	12,303,859
Common shares used upon lapse of restricted stock units and options (in shares)	(14,161)	(30,084)	(165,576)	(164,911)
Common shares repurchased as part of the stock repurchase programs (in shares)	669,200	565,299	669,200	670,099
End of period (in shares)	13,323,702	12,809,047	13,323,702	12,809,047
Dollar Amount
Beginning of period	$ 226,896	$ 212,794	$ 228,350	$ 211,135
Common shares used upon lapse of restricted stock units and options	(227)	(137)	(1,681)	(1,372)
Common shares repurchased as part of the stock repurchase programs	24,282	13,573	24,282	16,467
End of period	$ 250,951	$ 226,230	$ 250,951	$ 226,230

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Accumulated Comprehensive Income, Net of Income Tax) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, net of income taxes	$ (86,494)	$ (67,013)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss, net of income taxes	(86,494)	(67,013)
Net unrealized loss on securities available-for-sale
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized loss on securities available-for-sale	(101,810)	(78,497)
Income tax effect of unrealized loss on securities available-for-sale	15,316	11,484
Net unrealized loss on securities available-for-sale	$ (86,494)	$ (67,013)

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Changes in Other Comprehensive Income by Components) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period			$ 1,193,480
Other comprehensive (loss) income before reclassifications		$ (12,505)		$ 1,971
Amounts reclassified out of accumulated other comprehensive (loss) income		1,281		1,874
Other comprehensive income (loss)		(11,224)		3,845
Balance at end of period	$ 1,227,702	1,099,751	1,227,702	1,099,751
Net unrealized loss on securities available-for-sale
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(81,731)	(78,340)	(67,013)	(93,409)
Balance at end of period	(86,494)	(89,564)	(86,494)	(89,564)
Net unrealized loss on securities available-for-sale
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(81,731)	(78,512)	(67,013)	(93,663)
Other comprehensive (loss) income before reclassifications	(4,765)	(9,980)	(19,474)	5,169
Amounts reclassified out of accumulated other comprehensive (loss) income	2	(1,147)	(7)	(1,145)
Other comprehensive income (loss)	(4,763)	(11,127)	(19,481)	4,024
Balance at end of period	$ (86,494)	(89,639)	$ (86,494)	(89,639)
Net unrealized gain on cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period		172		254
Other comprehensive (loss) income before reclassifications		(2,525)		(3,198)
Amounts reclassified out of accumulated other comprehensive (loss) income		2,428		3,019
Other comprehensive income (loss)		(97)		(179)
Balance at end of period		$ 75		$ 75

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Reclassifications Out of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	$ 20,129	$ 21,612	$ 38,354	$ 40,516
Net income	51,131	44,173	100,823	90,402
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	2	1,281	(7)	1,874
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized loss on securities available-for-sale
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net loss on sale of securities	0	(1,149)	(7)	(1,149)
Income tax expense	2	2	0	4
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Contract | Net unrealized gain on cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net interest expense	$ 0	$ 2,428	$ 0	$ 3,019

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EARNINGS PER COMMON SHARE (Schedule of Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Income available to common shareholders	$ 51,131	$ 44,173	$ 100,823	$ 90,402
Average common shares outstanding (in shares)	46,952	47,266	47,024	47,432
Average potential common shares-options (in shares)	179	224	220	284
Total weighted average common shares outstanding and equivalents (in shares)	47,131	47,490	47,244	47,716
Earnings per common share - basic (in dollars per share)	$ 1.09	$ 0.93	$ 2.14	$ 1.91
Earnings per common share - diluted (in dollars per share)	$ 1.08	$ 0.93	$ 2.13	$ 1.89

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EARNINGS PER COMMON SHARE (Narrative) (Details) - $ / shares	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Earnings Per Share [Abstract]
Weighted average stock options with an anti dilutive effect excluded from calculation of earnings per share (in shares)	0		147,878	0	128,681
Quarterly common stock cash dividend (in dollars per share)	$ 0.25	$ 0.25	$ 0.22	$ 0.50	$ 0.44	$ 0.22

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GUARANTEES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Guarantor Obligations [Line Items]
Acquired standby letters of credit and financial guarantees	$ 25,000		$ 25,000		$ 24,000
Repurchased loans not subject to credit recourse provision	915	$ 4,200	1,900	$ 6,400
Amount of serviced loans	5,600,000		5,600,000		5,600,000
Funds advanced to investors under servicing agreements	3,700		3,700		4,200
Nonrecourse
Guarantor Obligations [Line Items]
Gain (Loss) on early extinguishment of debt	21	372	77	121
Recourse
Guarantor Obligations [Line Items]
Loans sold with recourse	94,456		94,456		98,685
Liability for estimated credit losses to loans sold with credit recourse	59		59		102
Repurchased GNMA	106	545	240	610
Gain (Loss) on early extinguishment of debt	14	$ 141	43	$ 147
Loan serviced under representation warranties | Nonrecourse
Guarantor Obligations [Line Items]
Loans sold with recourse	$ 275		$ 275		$ 405

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GUARANTEES (Changes in Liability of Estimated Loss from Credit Recourse Agreement) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	$ 73	$ 141	$ 102	$ 147
Net recoveries (charge-offs/terminations)	(14)	9	(43)	3
Balance at end of period	$ 59	$ 150	$ 59	$ 150

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COMMITMENTS AND CONTINGENCIES (Summarized Credit-Related Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Commitments [Line Items]
Commitments to extend credit	$ 1,424,489	$ 1,255,695
Commercial letters of credit	1,384	119
Standby letters of credit and financial guarantees	25,028	23,970
Recourse
Other Commitments [Line Items]
Loans sold with recourse	$ 94,456	$ 98,685

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COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Commitments [Line Items]
Allowance for credit losses for off-balance sheet	$ 833	$ 1,200
Other non-credit commitments	18,900	18,900
Legal Contingencies
Other Commitments [Line Items]
Contingency loss accrued liability	561	817
Potential Losses, Operational Errors, Theft and Uncollectible Receivables
Other Commitments [Line Items]
Contingency loss accrued liability	1,500	1,400
Technology Commitments
Other Commitments [Line Items]
Commitments for capital expenditures in technology	$ 7,200	$ 7,800

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OPERATING LEASES (Operating Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lessee Disclosure [Abstract]
Lease costs	$ 2,261	$ 2,608	$ 4,914	$ 5,208
Variable lease costs	370	347	781	687
Short-term lease costs	91	148	141	305
Lease income	(29)	(17)	(51)	(54)
Total lease costs	$ 2,693	$ 3,086	$ 5,785	$ 6,146

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OPERATING LEASES (Operating Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Lessee Disclosure [Abstract]
Right-of-use assets	$ 20,298	$ 21,725
Lease Liabilities	$ 22,605	$ 24,029

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OPERATING LEASES (Operating Lease Terms) (Details)	Jun. 30, 2024	Dec. 31, 2023
Lessee Disclosure [Abstract]
Weighted-average remaining lease term (in years)	5 years	5 years 1 month 6 days
Weighted-average discount rate (percentage)	7.50%	7.00%

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OPERATING LEASES (Future Minimum Payments for Operating Leases and Present Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Lessee Disclosure [Abstract]
2024	$ 4,093
2025	6,676
2026	4,620
2027	3,793
2028	2,980
Thereafter	5,184
Total lease payments	27,346
Less imputed interest	4,741
Present value of lease liabilities	$ 22,605	$ 24,029

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) $ in Thousands	Jun. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($)
Recurring fair value measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities at fair value	$ 0	$ 0
Non-recurring fair value measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities at fair value	$ 0	$ 0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of security categorized as other debt | security	1

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities on Recurring and Non-Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	$ 16		$ 13
Money market investments	5,083		4,623	$ 3,427
Servicing assets	49,789	$ 49,553	49,520	49,966	$ 49,345	$ 50,921
Foreclosed real estate	6,526	$ 10,850	10,780	$ 10,639	$ 9,250	$ 11,214
Other repossessed assets	5,713		4,032
Recurring fair value measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,096,306		2,099,264
Trading securities	16		13
Money market investments	5,083		4,623
Servicing assets	49,789		49,520
Total	2,151,194		2,153,420
Recurring fair value measurements | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	200,658		296,799
Trading securities	0		0
Money market investments	5,083		4,623
Servicing assets	0		0
Total	205,741		301,422
Recurring fair value measurements | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	1,895,648		1,802,465
Trading securities	16		13
Money market investments	0		0
Servicing assets	0		0
Total	1,895,664		1,802,478
Recurring fair value measurements | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0		0
Trading securities	0		0
Money market investments	0		0
Servicing assets	49,789		49,520
Total	49,789		49,520
Non-recurring fair value measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	13,772		8,027
Foreclosed real estate	6,526		10,780
Other repossessed assets	5,713		4,032
Mortgage loans held for sale	8,375
Other loans held for sale	12,361		28,345
Total	46,747		51,184
Non-recurring fair value measurements | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0		0
Foreclosed real estate	0		0
Other repossessed assets	0		0
Mortgage loans held for sale	0
Other loans held for sale	0		0
Total	0		0
Non-recurring fair value measurements | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0		0
Foreclosed real estate	0		0
Other repossessed assets	0		0
Mortgage loans held for sale	0
Other loans held for sale	0		0
Total	0		0
Non-recurring fair value measurements | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	13,772		8,027
Foreclosed real estate	6,526		10,780
Other repossessed assets	5,713		4,032
Mortgage loans held for sale	8,375
Other loans held for sale	12,361		28,345
Total	$ 46,747		$ 51,184

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Reconciliation of Assets and Liabilities Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Income Extensible List Not Disclosed Flag			Gains included in earnings	Gains included in earnings
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain (Loss) Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag			Gains included in other comprehensive income	Gains included in other comprehensive income
Recurring fair value measurements | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		$ 49,758		$ 51,327
New instruments acquired		791		1,365
Principal repayments and amortization		(1,085)		(2,150)
Gains (losses) included in earnings		915		(170)
Gains included in other comprehensive income		7		14
Balance at end of period		50,386		50,386
Recurring fair value measurements | Level 3 | Other debt securities available for sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		413		406
New instruments acquired		0		0
Principal repayments and amortization		0		0
Gains (losses) included in earnings		0		0
Gains included in other comprehensive income		7		14
Balance at end of period		420		420
Recurring fair value measurements | Level 3 | Servicing Assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 49,553	49,345	$ 49,520	50,921
New instruments acquired	303	791	830	1,365
Principal repayments and amortization	(732)	(1,085)	(1,652)	(2,150)
Gains (losses) included in earnings	665	915	1,091	(170)
Gains included in other comprehensive income	0	0	0	0
Balance at end of period	$ 49,789	$ 49,966	$ 49,789	$ 49,966

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Qualitative Information for Assets and Liabilities) (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Servicing assets	$ 49,789	$ 49,966	$ 49,520	$ 49,553	$ 49,345	$ 50,921
Foreclosed real estate	6,526	$ 10,639	10,780	$ 10,850	$ 9,250	$ 11,214
Other repossessed assets	$ 5,713		4,032
Minimum
Unobservable Input
Constant prepayment rate	1.49%	3.49%
Discount rate	10.00%	10.00%
Maximum
Unobservable Input
Constant prepayment rate	11.45%	21.68%
Discount rate	15.50%	15.50%
Level 3 | Cash flow valuation | Servicing Assets
Fair Value
Servicing assets	$ 49,789		$ 49,520
Level 3 | Cash flow valuation | Minimum | Servicing Assets
Unobservable Input
Constant prepayment rate	1.49%		1.35%
Discount rate	10.00%		10.00%
Level 3 | Cash flow valuation | Maximum | Servicing Assets
Unobservable Input
Constant prepayment rate	11.45%		17.34%
Discount rate	15.50%		15.50%
Level 3 | Cash flow valuation | Weighted Average | Servicing Assets
Unobservable Input
Constant prepayment rate	6.07%		6.12%
Discount rate	11.45%		11.45%
Level 3 | Fair value of property or collateral | Collateral dependent loans
Fair Value
Collateral dependent loans	$ 13,772		$ 8,027
Level 3 | Fair value of property or collateral | Foreclosed real estate
Fair Value
Foreclosed real estate	6,526		10,780
Level 3 | Fair value of property or collateral | Other repossessed assets
Fair Value
Other repossessed assets	5,713		$ 4,032
Level 3 | Fair value of property or collateral | Mortgage loans held for sale
Fair Value
Mortgage loans held for sale	$ 8,375
Level 3 | Fair value of property or collateral | Minimum | Collateral dependent loans
Unobservable Input
Appraised value less disposition costs	10.20%		10.20%
Level 3 | Fair value of property or collateral | Minimum | Foreclosed real estate
Unobservable Input
Appraised value less disposition costs	10.00%		10.20%
Level 3 | Fair value of property or collateral | Minimum | Other repossessed assets
Unobservable Input
Estimated net realizable value	36.00%		31.00%
Level 3 | Fair value of property or collateral | Minimum | Mortgage loans held for sale
Unobservable Input
Estimated net realizable value	92.89%
Level 3 | Fair value of property or collateral | Maximum | Collateral dependent loans
Unobservable Input
Appraised value less disposition costs	33.20%		33.20%
Level 3 | Fair value of property or collateral | Maximum | Foreclosed real estate
Unobservable Input
Appraised value less disposition costs	33.00%		33.20%
Level 3 | Fair value of property or collateral | Maximum | Other repossessed assets
Unobservable Input
Estimated net realizable value	71.00%		77.00%
Level 3 | Fair value of property or collateral | Maximum | Mortgage loans held for sale
Unobservable Input
Estimated net realizable value	101.33%
Level 3 | Fair value of property or collateral | Weighted Average | Collateral dependent loans
Unobservable Input
Appraised value less disposition costs	17.67%		17.00%
Level 3 | Fair value of property or collateral | Weighted Average | Foreclosed real estate
Unobservable Input
Appraised value less disposition costs	10.95%		12.67%
Level 3 | Fair value of property or collateral | Weighted Average | Other repossessed assets
Unobservable Input
Estimated net realizable value	55.48%		57.72%
Level 3 | Fair value of property or collateral | Weighted Average | Mortgage loans held for sale
Unobservable Input
Estimated net realizable value	98.25%
Level 3 | Bids or sales contract prices | Other loans held for sale
Fair Value
Other loans held for sale	$ 12,361		$ 28,345
Level 3 | Bids or sales contract prices | Minimum | Other loans held for sale
Unobservable Input
Estimated market value	100.00%		52.00%
Level 3 | Bids or sales contract prices | Maximum | Other loans held for sale
Unobservable Input
Estimated market value	104.47%		103.20%
Level 3 | Bids or sales contract prices | Weighted Average | Other loans held for sale
Unobservable Input
Estimated market value	100.48%		84.80%

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Estimated Fair Value and Carrying Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Financial Assets:
Trading securities	$ 16		$ 13
Investment securities held-to-maturity	279,437		490,764
Servicing assets	49,789	$ 49,553	49,520	$ 49,966	$ 49,345	$ 50,921
Level 1 | Fair Value
Financial Assets:
Cash and cash equivalents	740,429		748,173
Investment securities available-for-sale	200,658		296,799
Level 1 | Carrying Value
Financial Assets:
Cash and cash equivalents	740,429		748,173
Investment securities available-for-sale	200,658		296,799
Level 2 | Fair Value
Financial Assets:
Trading securities	16		13
Investment securities available-for-sale	1,895,648		1,802,465
Investment securities held-to-maturity	244,365		455,709
Federal Home Loan Bank (FHLB) stock	15,280		14,488
Equity securities	25,794		23,981
Level 2 | Carrying Value
Financial Assets:
Trading securities	16		13
Investment securities available-for-sale	1,895,648		1,802,465
Investment securities held-to-maturity	303,621		514,024
Federal Home Loan Bank (FHLB) stock	15,280		14,488
Equity securities	25,794		23,981
Level 3 | Fair Value
Financial Assets:
Investment securities held-to-maturity	35,072		35,055
Total loans (including loans held-for-sale)	7,410,349		7,282,214
Accrued interest receivable	72,969		71,400
Servicing assets	49,789		49,520
Accounts receivable and other assets	56,760		47,859
Financial Liabilities:
Deposits	9,622,547		9,767,068
Advances from FHLB	198,937		199,184
Other borrowings	0		2
Accrued expenses and other liabilities	140,410		115,985
Level 3 | Carrying Value
Financial Assets:
Investment securities held-to-maturity	35,000		35,000
Total loans (including loans held-for-sale)	7,503,142		7,401,618
Accrued interest receivable	72,969		71,400
Servicing assets	49,789		49,520
Accounts receivable and other assets	56,760		47,589
Financial Liabilities:
Deposits	9,605,250		9,762,169
Advances from FHLB	200,741		200,768
Other borrowings	0		2
Accrued expenses and other liabilities	$ 140,410		$ 115,985

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BANKING AND FINANCIAL SERVICE REVENUES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Banking service revenues:
Electronic banking fees	$ 14,718	$ 13,603	$ 28,408	$ 26,969
Checking accounts fees	1,894	2,184	4,061	4,404
Savings accounts fees	307	327	615	660
Credit life commissions	73	119	77	224
Branch service commissions	275	324	621	746
Servicing and other loan fees	1,325	702	1,893	1,584
International fees	184	179	356	362
Miscellaneous income	5	2	9	4
Total banking service revenues	18,781	17,440	36,040	34,953
Wealth management revenue:
Insurance income	4,214	4,169	7,988	7,539
Broker fees	2,009	1,797	4,100	3,580
Trust fees	2,217	2,228	4,459	4,152
Other fees	0	0	0	43
Total wealth management revenue	8,440	8,194	16,547	15,314
Mortgage banking activities:
Net servicing fees	4,101	4,650	8,052	7,493
Net gains on sale of mortgage loans and valuation	719	790	1,372	1,559
Net gain (loss) on repurchased loans and other	44	(215)	133	71
Total mortgage banking activities	4,864	5,225	9,557	9,123
Total banking and financial service revenues	$ 32,085	$ 30,859	$ 62,144	$ 59,390

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BUSINESS SEGMENTS (Results of Operations and Selected Financial Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Interest income	$ 187,658	$ 157,988	$ 371,084	$ 306,973
Interest expense	(40,333)	(18,344)	(79,657)	(31,432)
Net interest income	147,325	139,644	291,427	275,541
Provision for (recapture of) credit losses	15,581	15,044	30,702	24,489
Non-interest income, net	32,476	30,073	62,824	58,974
Non-interest expenses	(92,960)	(88,888)	(184,372)	(179,108)
Intersegment revenue	0	0	0	0
Intersegment expenses	0	0	0	0
Income before income taxes	71,260	65,785	139,177	130,918
Income tax expense	20,129	21,612	38,354	40,516
Net income	51,131	44,173	100,823	90,402
Total assets	11,259,085	10,031,547	11,259,085	10,031,547	$ 11,344,453
Total
Segment Reporting Information [Line Items]
Interest income	188,614	162,846	373,115	316,402
Interest expense	(41,289)	(23,202)	(81,688)	(40,861)
Net interest income	147,325	139,644	291,427	275,541
Provision for (recapture of) credit losses	15,581	15,044	30,702	24,489
Non-interest income, net	32,476	30,073	62,824	58,974
Non-interest expenses	(92,960)	(88,888)	(184,372)	(179,108)
Income before income taxes	71,260	65,785	139,177	130,918
Income tax expense	20,129	21,612	38,354	40,516
Net income	51,131	44,173	100,823	90,402
Total assets	12,452,738	11,092,922	12,452,738	11,092,922
Total | Intersubsegment Eliminations
Segment Reporting Information [Line Items]
Intersegment revenue	415	575	839	1,122
Intersegment expenses	(415)	(575)	(839)	(1,122)
Eliminations
Segment Reporting Information [Line Items]
Interest income	(956)	(4,858)	(2,031)	(9,429)
Interest expense	956	4,858	2,031	9,429
Net interest income	0	0	0	0
Provision for (recapture of) credit losses	0	0	0	0
Non-interest income, net	0	0	0	0
Non-interest expenses	0	0	0	0
Intersegment revenue	(415)	(575)	(839)	(1,122)
Intersegment expenses	415	575	839	1,122
Income before income taxes	0	0	0	0
Income tax expense	0	0	0	0
Net income	0	0	0	0
Total assets	(1,193,653)	(1,061,375)	(1,193,653)	(1,061,375)
Banking | Total
Segment Reporting Information [Line Items]
Interest income	155,681	139,999	306,676	272,424
Interest expense	(37,654)	(15,824)	(73,503)	(28,205)
Net interest income	118,027	124,175	233,173	244,219
Provision for (recapture of) credit losses	15,589	15,052	30,814	24,457
Non-interest income, net	24,723	23,354	47,788	44,979
Non-interest expenses	(87,506)	(83,876)	(173,496)	(169,241)
Income before income taxes	40,070	49,176	77,490	96,622
Income tax expense	20,096	21,577	38,262	40,469
Net income	19,974	27,599	39,228	56,153
Total assets	9,360,801	8,720,156	9,360,801	8,720,156
Banking | Total | Intersubsegment Eliminations
Segment Reporting Information [Line Items]
Intersegment revenue	415	575	839	1,122
Intersegment expenses	0	0	0	0
Wealth Management | Total
Segment Reporting Information [Line Items]
Interest income	4	6	13	11
Interest expense	0	0	0	0
Net interest income	4	6	13	11
Provision for (recapture of) credit losses	0	0	0	0
Non-interest income, net	7,654	7,868	15,029	15,144
Non-interest expenses	(4,623)	(4,138)	(9,145)	(8,093)
Income before income taxes	2,792	3,356	5,387	6,304
Income tax expense	(5)	20	8	20
Net income	2,797	3,336	5,379	6,284
Total assets	36,217	33,946	36,217	33,946
Wealth Management | Total | Intersubsegment Eliminations
Segment Reporting Information [Line Items]
Intersegment revenue	0	0	0	0
Intersegment expenses	(243)	(380)	(510)	(758)
Treasury | Total
Segment Reporting Information [Line Items]
Interest income	32,929	22,841	66,426	43,967
Interest expense	(3,635)	(7,378)	(8,185)	(12,656)
Net interest income	29,294	15,463	58,241	31,311
Provision for (recapture of) credit losses	(8)	(8)	(112)	32
Non-interest income, net	99	(1,149)	7	(1,149)
Non-interest expenses	(831)	(874)	(1,731)	(1,774)
Income before income taxes	28,398	13,253	56,300	27,992
Income tax expense	38	15	84	27
Net income	28,360	13,238	56,216	27,965
Total assets	3,055,720	2,338,820	3,055,720	2,338,820
Treasury | Total | Intersubsegment Eliminations
Segment Reporting Information [Line Items]
Intersegment revenue	0	0	0	0
Intersegment expenses	$ (172)	$ (195)	$ (329)	$ (364)

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BUSINESS SEGMENTS (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Time Deposits	$ 1,585,544	$ 1,623,639
Eliminations | Treasury
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Time Deposits	$ 302,400		$ 364,200