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	%