COVER
COVER - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,208 | ||
Entity Common Stock, Shares Outstanding | 47,600,346 | ||
Documents Incorporated by Reference | Portions of the Company’s definitive proxy statement relating to the 2023 annual meeting of shareholders are incorporated herein by reference in response to Items 10 through 14 of Part III, except for certain information set forth herein under Item 12. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001030469 |
AUDITOR INFORMATION
AUDITOR INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | San Juan, Puerto Rico |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 546,146 | $ 2,014,523 |
Money market investments | 4,161 | 8,952 |
Total cash and cash equivalents | 550,307 | 2,023,475 |
Restricted cash | 157 | 175 |
Investments: | ||
Trading securities, at fair value, with amortized cost of $162 (December 31, 2021 - $162) | 9 | 20 |
Investment securities available-for-sale, at fair value, with amortized cost of $1,522,812 (December 31, 2021 - $503,421); no allowance for credit losses | 1,412,776 | 510,713 |
Investment securities held-to-maturity, at amortized cost, with fair value of $469,186 (December 31, 2021 - $363,653); no allowance for credit losses | 535,070 | 367,507 |
Equity securities | 23,667 | 17,578 |
Total investments | 1,971,522 | 895,818 |
Loans: | ||
Loans held-for-sale, at lower of cost or fair value | 40,587 | 82,662 |
Loans held for investment, net of allowance for credit losses of $152,673 (December 31, 2021 - $155,937) | 6,682,649 | 6,246,649 |
Total loans | 6,723,236 | 6,329,311 |
Other assets: | ||
Foreclosed real estate | 11,214 | 15,039 |
Accrued interest receivable | 62,402 | 56,560 |
Deferred tax asset, net | 55,485 | 99,063 |
Premises and equipment, net | 106,820 | 92,124 |
Customers' liability on acceptances | 28,607 | 35,329 |
Servicing assets | 50,921 | 48,973 |
Goodwill | 84,241 | 86,069 |
Other intangible assets | 27,593 | 36,093 |
Operating lease right-of-use assets | 25,363 | 28,846 |
Other assets | 120,912 | 152,845 |
Total assets | 9,818,780 | 9,899,720 |
Deposits: | ||
Demand deposits | 5,176,758 | 5,204,340 |
Savings accounts | 2,227,965 | 2,177,780 |
Time deposits | 1,163,641 | 1,220,998 |
Total deposits | 8,568,364 | 8,603,118 |
Borrowings: | ||
Advances from Federal Home Loan Bank | 26,716 | 28,488 |
Subordinated capital notes | 0 | 36,083 |
Other borrowings | 318 | 0 |
Total borrowings | 27,034 | 64,571 |
Other liabilities: | ||
Derivative liabilities | 0 | 804 |
Acceptances executed and outstanding | 28,607 | 35,329 |
Operating lease liabilities | 27,370 | 30,498 |
Accrued expenses and other liabilities | 124,999 | 96,240 |
Total liabilities | 8,776,374 | 8,830,560 |
Commitments and contingencies (See Note 25) | ||
Stockholders’ equity: | ||
Common stock, $1 par value; 100,000,000 shares authorized; 59,885,234 shares issued: 47,581,375 shares outstanding (December 31, 2021 - 59,885,234 shares issued; 49,636,352 shares outstanding) | 59,885 | 59,885 |
Additional paid-in capital | 636,793 | 637,061 |
Legal surplus | 133,901 | 117,677 |
Retained earnings | 516,371 | 399,949 |
Treasury stock, at cost, 12,303,859 shares (December 31, 2021 - 10,248,882 shares) | (211,135) | (150,572) |
Accumulated other comprehensive (loss) income, net of tax of $16,221 (December 31, 2021 - $1,328) | (93,409) | 5,160 |
Total stockholders’ equity | 1,042,406 | 1,069,160 |
Total liabilities and stockholders’ equity | $ 9,818,780 | $ 9,899,720 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | ||
Trading securities, amortized cost | $ 162 | $ 162 |
Investment securities available-for-sale, amortized cost | 1,522,812 | 503,421 |
Investment securities available-for-sale, allowance for credit loss | 0 | 0 |
Investment securities held-to-maturity, fair value | 469,186 | 363,653 |
Investment securities held-to-maturity, allowance for credit loss | 0 | 0 |
Loans held for investment, allowance for credit losses | $ 152,673 | $ 155,937 |
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) | 47,581,375 | 49,636,352 |
Treasury stock, at cost (in shares) | 12,303,859 | 10,248,882 |
Accumulated other comprehensive income, tax (benefit) expense | $ (16,221) | $ 1,328 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | |||
Loans | $ 460,162 | $ 433,788 | $ 457,435 |
Mortgage-backed securities | 31,298 | 11,614 | 7,558 |
Investment securities and other | 24,113 | 3,797 | 8,354 |
Total interest income | 515,573 | 449,199 | 473,347 |
Interest expense: | |||
Deposits | 32,239 | 39,014 | 60,198 |
Securities sold under agreements to repurchase | 0 | 0 | 1,335 |
Advances from FHLB and other borrowings | 733 | 1,641 | 1,988 |
Subordinated capital notes | 521 | 1,174 | 1,394 |
Total interest expense | 33,493 | 41,829 | 64,915 |
Net interest income | 482,080 | 407,370 | 408,432 |
Provision for credit losses | 24,119 | 221 | 92,672 |
Net interest income after provision for credit losses | 457,961 | 407,149 | 315,760 |
Non-interest income: | |||
Banking service revenue | 71,161 | 71,706 | 62,579 |
Wealth management revenue | 32,635 | 35,044 | 31,789 |
Mortgage banking activities | 21,929 | 22,508 | 16,504 |
Total banking and financial service revenues | 125,725 | 129,258 | 110,872 |
Net (loss) gain on: | |||
Sale of securities | (247) | 19 | 4,728 |
Early extinguishment of debt | 42 | (1,481) | (63) |
Bargain purchase from Scotiabank Acquisition | 0 | 0 | 7,336 |
Other non-interest income | 6,170 | 5,414 | 1,479 |
Non-interest income | 131,690 | 133,210 | 124,352 |
Non-interest expense: | |||
Compensation and employee benefits | 142,930 | 133,442 | 132,926 |
Occupancy, equipment and infrastructure costs | 51,308 | 50,158 | 47,283 |
Electronic banking charges | 39,554 | 37,202 | 34,698 |
Information technology expenses | 21,891 | 18,965 | 20,823 |
Professional and service fees | 24,842 | 20,080 | 17,135 |
Taxes, other than payroll and income taxes | 12,999 | 13,829 | 13,831 |
Insurance | 9,898 | 10,092 | 11,424 |
Loan servicing and clearing expenses | 9,161 | 7,604 | 6,752 |
Advertising, business promotion, and strategic initiatives | 8,240 | 6,999 | 5,851 |
Communication | 4,296 | 4,555 | 4,067 |
Printing, postage, stationery and supplies | 3,563 | 4,037 | 3,847 |
Director and investor relations | 1,125 | 1,135 | 1,174 |
Merger and restructuring charges | 0 | 0 | 16,083 |
Climate events expenses | 1,574 | 0 | 0 |
Foreclosed real estate and other repossessed assets (income) expenses, net | (2,074) | (3,007) | 7,767 |
Other | 16,239 | 20,665 | 21,625 |
Total non-interest expense | 345,546 | 325,756 | 345,286 |
Income before income taxes | 244,105 | 214,603 | 94,826 |
Income tax expense | 77,866 | 68,452 | 20,499 |
Net income | 166,239 | 146,151 | 74,327 |
Less: dividends on preferred stock | 0 | (1,255) | (6,512) |
Income available to common shareholders | $ 166,239 | $ 144,896 | $ 67,815 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 3.46 | $ 2.85 | $ 1.32 |
Diluted (in dollars per share) | $ 3.44 | $ 2.81 | $ 1.32 |
Average common shares outstanding and equivalents (in shares) | 48,436 | 51,370 | 51,555 |
Cash dividends per share of common stock (in dollars per share) | $ 0.70 | $ 0.40 | $ 0.28 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 166,239 | $ 146,151 | $ 74,327 |
Other comprehensive (loss) income before tax: | |||
Unrealized (loss) gain on securities available-for-sale | (117,575) | (6,951) | 19,296 |
Realized loss (gain) on sale of securities available-for-sale | 247 | (19) | (4,728) |
Unrealized gain (loss) on cash flow hedges | 1,210 | 908 | (804) |
Other comprehensive (loss) income before taxes | (116,118) | (6,062) | 13,764 |
Income tax effect | 17,549 | 200 | (1,734) |
Other comprehensive (loss) income after taxes | (98,569) | (5,862) | 12,030 |
Comprehensive income | $ 67,670 | $ 140,289 | $ 86,357 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Preferred stock | Common stock | Additional paid-in capital | Legal surplus | Retained earnings | Retained earnings Impact of ASC 326 adoption | Retained earnings Cumulative effect, adjusted balance | Treasury stock | Accumulated other comprehensive (loss) income, net of tax | |
Balance at beginning of year at Dec. 31, 2019 | $ 92,000 | $ 621,515 | $ 95,779 | $ 279,646 | $ 254,152 | $ (102,339) | $ (1,008) | ||||
Balance at beginning of year (Topic 326 adoption) at Dec. 31, 2019 | $ (25,494) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation expense | 2,170 | ||||||||||
Lapsed restricted stock units | (1,033) | 1,616 | |||||||||
Transfer from retained earnings | 7,490 | ||||||||||
Net income | $ 74,327 | 74,327 | |||||||||
Cash dividends declared on common stock | [1] | (14,381) | |||||||||
Cash dividends declared on preferred stock | (6,512) | ||||||||||
Transfer to legal surplus | (7,490) | ||||||||||
Stock repurchased | (2,226) | (2,226) | |||||||||
Other comprehensive (loss) income, net of tax | 12,030 | 12,030 | |||||||||
Balance at end of year at Dec. 31, 2020 | 1,085,975 | 92,000 | $ 59,885 | 622,652 | 103,269 | 300,096 | 300,096 | (102,949) | 11,022 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Redemption of preferred stock | (92,000) | ||||||||||
Stock-based compensation expense | 6,245 | ||||||||||
Lapsed restricted stock units | (1,966) | 2,249 | |||||||||
Redemption of preferred stock, issuance costs | 10,130 | (10,130) | |||||||||
Transfer from retained earnings | 14,408 | ||||||||||
Net income | 146,151 | 146,151 | |||||||||
Cash dividends declared on common stock | [1] | (20,505) | |||||||||
Cash dividends declared on preferred stock | (1,255) | ||||||||||
Transfer to legal surplus | 14,400 | (14,408) | |||||||||
Stock repurchased | (49,872) | (49,872) | |||||||||
Other comprehensive (loss) income, net of tax | (5,862) | (5,862) | |||||||||
Balance at end of year at Dec. 31, 2021 | 1,069,160 | 0 | 59,885 | 637,061 | 117,677 | 399,949 | $ 399,949 | (150,572) | 5,160 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation expense | 4,185 | ||||||||||
Lapsed restricted stock units | (4,453) | 3,547 | |||||||||
Transfer from retained earnings | 16,224 | ||||||||||
Net income | 166,239 | 166,239 | |||||||||
Cash dividends declared on common stock | [1] | (33,593) | |||||||||
Transfer to legal surplus | 16,200 | (16,224) | |||||||||
Stock repurchased | (64,110) | (64,110) | |||||||||
Other comprehensive (loss) income, net of tax | (98,569) | (98,569) | |||||||||
Balance at end of year at Dec. 31, 2022 | $ 1,042,406 | $ 0 | $ 59,885 | $ 636,793 | $ 133,901 | $ 516,371 | $ (211,135) | $ (93,409) | |||
[1]Dividends declared per common share during 2022 - $0.70 (2021 - $0.40; 2020 - $0.28). |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.12 | $ 0.70 | $ 0.40 | $ 0.28 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 166,239 | $ 146,151 | $ 74,327 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred loan origination fees and fair value (discounts) premiums on loans | 683 | (10,193) | (11,061) |
Amortization of fair value premiums on acquired deposits | 0 | 0 | (2,607) |
Amortization of investment securities premiums, net of accretion of (discounts) | (3,628) | 3,111 | 4,971 |
Amortization of other intangible assets | 8,500 | 9,803 | 11,069 |
Net change in operating leases | 360 | 469 | 455 |
Depreciation and amortization of premises and equipment | 15,812 | 14,128 | 12,687 |
Deferred income tax expense, net | 61,126 | 63,616 | 27,846 |
Provision for (recapture of) credit losses | 24,119 | 221 | 92,672 |
Stock-based compensation | 4,185 | 6,245 | 2,170 |
Bargain purchase from Scotiabank PR & USVI acquisition | 0 | 0 | (7,336) |
Loss (gain) on: | |||
Sale of securities | 247 | (19) | (4,728) |
Sale of loans | (1,202) | (7,292) | (4,451) |
Early extinguishment of debt | (42) | 1,481 | 63 |
Foreclosed real estate and other repossessed assets | (12,186) | (10,435) | 2,250 |
Sale of other assets | (4,962) | (571) | (6) |
Originations and purchases of loans held-for-sale | (185,884) | (353,685) | (236,107) |
Proceeds from sale of loans held-for-sale | 97,608 | 220,684 | 128,018 |
Net decrease (increase) in: | |||
Accrued interest receivable | (5,825) | 9,537 | (23,598) |
Servicing assets | (1,948) | (1,678) | 3,484 |
Other assets | 35,371 | (9,051) | (7,184) |
Net increase (decrease) in: | |||
Accrued interest on deposits and borrowings | 34 | (861) | (10,538) |
Accrued expenses and other liabilities | (34,151) | 18,383 | (17,436) |
Net cash provided by operating activities | 164,456 | 100,044 | 34,960 |
Purchases of: | |||
Investment securities available-for-sale | (1,266,569) | (29,095) | (158,412) |
Investment securities held-to-maturity | (196,742) | (380,322) | 0 |
FHLB stock | (122) | 0 | 0 |
Equity securities | (4,550) | (7,650) | (3,402) |
Maturities and redemptions of: | |||
Investment securities available-for-sale | 132,756 | 102,034 | 569,658 |
Investment securities held-to-maturity | 29,438 | 12,445 | 0 |
FHLB stock | 83 | 2,312 | 4,770 |
Proceeds from sales of: | |||
Investment securities available-for-sale | 242,126 | 2,174 | 320,984 |
Foreclosed real estate and other repossessed assets, including write-offs | 48,805 | 44,966 | 40,622 |
Loans held for investment | 0 | 4,846 | 0 |
Premises and equipment | 4,784 | 570 | 52 |
Other assets | 1,060 | 0 | 0 |
Origination and purchase of loans, excluding loans held-for-sale | (2,885,018) | (2,036,516) | (1,493,854) |
Principal repayment of loans | 2,412,011 | 2,124,355 | 1,492,748 |
Additions to premises and equipment | (30,999) | (23,053) | (15,263) |
Outlays for business acquisitions | 0 | 0 | (402) |
Net cash (used in) provided by investing activities | (1,512,937) | (182,934) | 757,501 |
Net increase (decrease) in: | |||
Deposits | 6,906 | 152,699 | 735,830 |
Securities sold under agreements to repurchase | 0 | 0 | (190,063) |
Subordinated capital notes | (34,958) | 0 | 0 |
FHLB advances, federal funds purchased, and other borrowings | (1,547) | (39,174) | (12,872) |
Exercise of stock options and restricted units lapsed, net | (906) | 283 | 583 |
Purchase of treasury stock | (64,110) | (49,872) | (2,226) |
Redemption of preferred stock | 0 | (92,000) | 0 |
Dividends paid on preferred stock | 0 | (1,255) | (6,512) |
Dividends paid on common stock | (30,090) | (19,718) | (14,381) |
Net cash (used in) provided by financing activities | (124,705) | (49,037) | 510,359 |
Net change in cash, cash equivalents and restricted cash | (1,473,186) | (131,927) | 1,302,820 |
Cash, cash equivalents and restricted cash at beginning of year | 2,023,650 | 2,155,577 | 852,757 |
Cash, cash equivalents and restricted cash at end of year | 550,464 | 2,023,650 | 2,155,577 |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Statements of Financial Condition: | |||
Cash and due from banks | 546,146 | 2,014,523 | 2,142,294 |
Money market investments | 4,161 | 8,952 | 11,908 |
Restricted cash | 157 | 175 | 1,375 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents at end of year | 550,464 | 2,023,650 | 2,155,577 |
Supplemental Cash Flow Disclosure and Schedule of Non-cash Activities: | |||
Interest paid | 26,959 | 35,338 | 56,442 |
Income taxes paid | 5,126 | 2,794 | 6,255 |
Operating lease liabilities paid | 10,107 | 10,948 | 12,778 |
Mortgage loans held-for-sale securitized into mortgage-backed securities | 126,082 | 149,080 | 90,174 |
Transfer from loans to foreclosed real estate and other repossessed assets | 37,233 | 39,547 | 23,332 |
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio | 17,476 | 54,983 | 2,542 |
Reclassification of loans held-for-sale portfolio to held-for-investment portfolio | 22,723 | 7,053 | 0 |
Financed sales of foreclosed real estate | 1,767 | 1,444 | 284 |
Interest on loans subject to the temporary payment moratorium | 0 | 0 | 35,593 |
Delinquent loans booked under the GNMA buy-back option | 32,590 | 14,511 | 56,193 |
Conversion of debt security to equity security | $ 1,500 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of OFG Bancorp (“OFG” or the “Company”) conform with GAAP and to banking industry practices. The following is a description of OFG’s most 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”), a retirement plan administrator, Oriental Pension Consultants, Inc. (“OPC”), 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 and mortgage lending, auto leasing and lending, financial planning, insurance sales, money management, investment banking and securities brokerage services, as well as corporate and individual trust services. Effective December 31, 2022, OFG sold its retirement plan administration business which was operated under the OPC subsidiary and OPC thereafter discontinued its operations. Annual results include these operations until the date of sale. OFG conducts its business through its main office in San Juan, Puerto Rico, forty-one branches in Puerto Rico and two branches in the U.S. Virgin Islands (the “USVI”). OFG has three subsidiaries with operations in Puerto Rico: the Bank, Oriental Financial Services and Oriental Insurance; two subsidiaries in the United States, OPC and OFG Ventures; and a subsidiary in the Cayman Islands, OFG Reinsurance. OFG is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) under the U.S. Bank Holding Company Act of 1956, as amended, and the Dodd-Frank Act. The Bank is subject to the supervision, examination and regulation of the Office of the Commissioner of Financial Institutions of Puerto Rico (“OCFI”) and the Federal Deposit Insurance Corporation (the “FDIC”). The Bank offers banking services such as commercial, consumer and mortgage lending, auto leasing and lending, savings and time deposit products, financial planning, and corporate and individual trust services, and capitalizes on its commercial banking network to provide mortgage lending products to its clients. The Bank has an operating subsidiary, OFG USA LLC, a wholly-owned subsidiary of the Bank, which is a commercial lender organized in Delaware. 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. The Bank’s USVI operations are also subject to the supervision, examination and regulation of the USVI Banking Board. Oriental Financial Services is registered as a securities broker-dealer and as an investment adviser, and is subject to the supervision, examination and regulation of the Financial Industry Regulatory Authority (“FINRA”), the U.S. Securities and Exchange Commission (the “SEC”), and the OCFI. Oriental Financial Services is also a member of the Securities Investor Protection Corporation. Oriental Insurance is an insurance agency and is subject to the supervision, examination and regulation of the Office of the Commissioner of Insurance of Puerto Rico. OFG Reinsurance is subject to regulation by the Cayman Islands Monetary Authority (the “CIMA”). OFG’s mortgage banking activities are conducted through a division of the Bank. The mortgage banking activities include the origination of mortgage loans for the Bank’s own portfolio, the sale of loans directly in the secondary market or the securitization of conforming loans into mortgage-backed securities, and the purchase or assumption of the right to service loans originated by others. The Bank originates Federal Housing Administration (“FHA”) insured and Veterans Administration (“VA”) guaranteed mortgages that are primarily securitized for issuance of Government National Mortgage Association (“GNMA”) mortgage-backed securities which can be resold to individual or institutional investors in the secondary market. Conventional loans that meet the underwriting requirements for sale or exchange under certain Federal National Mortgage Association (“FNMA”) or Federal Home Loan Mortgage Corporation (“FHLMC”) programs are referred to as conforming mortgage loans and are also securitized for issuance of FNMA or FHLMC mortgage-backed securities. The Bank is an approved seller of FNMA mortgage loans for issuance of FNMA mortgage-backed securities. The Bank is also an approved issuer of GNMA mortgage-backed securities. The Bank is the master servicer of the GNMA, FNMA and FHLMC pools that it issues and of its mortgage loan portfolio and up to December 31, 2022 had a subservicing arrangement with a third party for a portion of its acquired loan portfolio. This subservicing arrangement will conclude on May 1, 2023. OFG services most of its mortgage loan portfolio. On December 31, 2019, OFG purchased from the The Bank of Nova Scotia (“BNS”) all outstanding common stock of Scotiabank de Puerto Rico (“SBPR”). Immediately following the closing, OFG merged SBPR with and into the Bank, with the Bank continuing as the surviving entity. As part of this transaction, the Bank also acquired the USVI banking operations of BNS through an acquisition of certain assets (including loans, ATMs and physical branch locations) and an assumption of certain liabilities (including deposits). In addition, OFG acquired certain loans and assumed certain liabilities, from BNS’s Puerto Rico branch. This transaction is referred to as the “Scotiabank Acquisition.” Principles of Consolidation The accompanying consolidated financial statements include the accounts of OFG Bancorp and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Statutory Trust II was exempt from the consolidation requirements of GAAP. Business Combinations OFG accounted for the Scotiabank Acquisition under the accounting guidance of ASC Topic No. 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets and liabilities acquired were initially recorded at fair value. No allowance for credit losses related to the acquired loans was recorded on the acquisition date. Loans acquired were recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820. These fair value estimates associated with the loans included estimates related to expected prepayments and the amount and timing of expected principal, interest and other cash flows. The valuation of these loans required management to make subjective judgments concerning estimates about how the acquired loans would perform in the future using valuation methods, including discounted cash flow analyses and other factors as market-based and industry data related to expected changes in interest rates, assumptions related to probability and severity of credit losses, estimated timing of credit losses including the timing of foreclosure and liquidation of collateral, expected prepayment rates, and specific industry and market conditions. Refer to Note 2 – Business Combination for further discussion of the Scotiabank Acquisition. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate mainly to the determination of the allowance for credit losses, the valuation of securities, the determination of income taxes, impairment of securities, and goodwill valuation and impairment assessment. Earnings per Common Share Basic earnings per share is calculated by dividing income available to common shareholders (net income reduced by dividends on preferred stock) by the weighted average of outstanding common shares. Diluted earnings per share is similar to the computation of basic earnings per share except that the weighted average of common shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares underlying stock options and restricted units had been issued, assuming that proceeds from exercise are used to repurchase shares in the market (treasury stock method). Any stock splits and dividends are retroactively recognized in all periods presented in the consolidated financial statements. Cash Equivalents OFG considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less. Investment Securities OFG classifies its investments in debt and equity securities into one of four categories: Held-to-maturity - Securities that management has the intent and ability to hold to maturity. These securities are carried at amortized cost. Since the adoption of current expected credit losses (“CECL”) on January 1, 2020, an allowance for credit losses is established for the expected credit losses over the remaining term of debt securities held to maturity. OFG’s portfolio of held to maturity securities is comprised of US Treasury notes and obligations from the U.S. Government. These securities have an explicit or implicit guarantee from the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, OFG applies a zero-credit loss assumption and no ACL for these securities has been established. OFG monitors its securities portfolio composition and credit performance on a quarterly basis to determine if any allowance is considered necessary. Available for sale - Securities to be held for indefinite periods of time. These securities are carried at fair value. Declines in fair value below the securities’ amortized cost which are not related to estimated credit losses are recorded through other comprehensive income or loss, net of taxes. If OFG intends to sell or believes it is more likely than not that it will be required to sell the debt security, it is written down to fair value through earnings. Since the adoption of CECL on January 1, 2020, credit losses relating to available-for-sale debt securities are recorded through an allowance for credit losses (“ACL”), which are limited to the difference between the amortized cost and the fair value of the asset. The ACL is established for the expected credit losses over the remaining term of debt security. OFG’s portfolio of available for sale securities is comprised mainly of U.S. Treasury notes and obligations from the U.S. Government. These securities have an explicit or implicit guarantee from the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, OFG applies a zero-credit loss assumption and no ACL for these securities has been established. OFG monitors its securities portfolio composition and credit performance on a quarterly basis to determine if any allowance is considered necessary. Debt securities available-for-sale are written-off when a portion or the entire amount is deemed uncollectible, based on the information considered to develop expected credit losses through the life of the asset. The specific identification method is used to determine realized gains and losses on debt securities available for sale, which are included in net gain (loss) on sale of securities in the Consolidated Statements of Operations. Trading - Securities held for resale in anticipation of short-term market movements. These securities are carried at fair value, with changes in unrealized holding gains and losses included in income. Management determines the appropriate classification of securities at the time of purchase. Equity securities - Equity securities do not have readily available fair values and are measured at cost, less any impairment. Impairment is reviewed on a quarterly basis through a qualitative assessment. Stock that is owned by OFG to comply with regulatory requirements, such as Federal Home Loan Bank (“FHLB”) stock, is included in this category, and their realizable value equals their cost. Unrealized and realized gains and losses and any impairment on equity securities are included in net gain (loss) in the Consolidated Statements of Operations. Dividend income from investments in equity securities is included in interest income in the Consolidated Statements of Operations. Premiums and discounts are amortized to interest income over the life of the related securities using the interest method. Net realized gains or losses on sales of investment securities and unrealized gains and losses valuation adjustments considered other than temporary, if any, on securities classified as either available-for-sale or held-to-maturity are reported separately in the statements of operations. Purchases and sales of securities are recorded at trade date. The cost of securities sold is determined by the specific identification method. Financial Instruments Certain financial instruments, including derivatives, trading securities and investment securities available-for-sale, are recorded at fair value and unrealized gains and losses are recorded in other comprehensive (loss) income or as part of non-interest income, as appropriate. Fair values are based on listed market prices, if available. If listed market prices are not available, fair value is determined based on other relevant factors, including price quotations for similar instruments. The fair values of certain derivative contracts are derived from pricing models that consider current market and contractual prices for the underlying financial instruments as the well as time value and yield curve or volatility factors underlying the positions. OFG determines the fair value of its financial instruments based on the fair value measurement framework, which establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 — Level 1 assets and liabilities include equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include (i) mortgage-backed securities for which the fair value is estimated based on valuations obtained from third-party pricing services for identical or comparable assets, (ii) debt securities with quoted prices that are traded less frequently than exchange-traded instruments and (iii) derivative contracts and financial liabilities whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models for which the determination of fair value requires significant management judgment or estimation. OFG’s policy is to recognize any transfer into or out of the Levels referred to above at the date of the event or change in circumstances that caused the transfer. Derivative Instruments and Hedging Activities OFG uses financial derivatives, as interest rate swaps and caps, to both mitigate exposure to market (primarily interest rate) and credit risks inherent in its business activities, as well as to facilitate customer risk management activities. OFG manages these risks as part of its asset and liability management process and through credit policies and procedures. OFG recognizes all derivative instruments at fair value as either other assets or derivative liabilities on the consolidated statement of financial condition and the related cash flows in the operating activities section of the consolidated statement of cash flows. Adjustments for counterparty credit risk are included in the determination of fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a cash flow or net investment hedging relationship. For all other derivatives, changes in fair value are recognized in earnings. OFG utilizes a net presentation for derivative instruments on the consolidated statement of financial condition taking into consideration the effects of legally enforceable master netting agreements. Cash collateral exchanged with counterparties is also netted against the applicable derivative exposures by offsetting obligations to return, or general rights to reclaim, cash collateral against the fair values of the net derivatives being collateralized. For those derivative instruments that are designated and qualify as accounting hedges, OFG designates the hedging instrument, based on the exposure being hedged, as a cash flow hedge. OFG formally documents the relationship between the hedging instruments and hedged items, as well as the risk management objective and strategy, before undertaking an accounting hedge. To qualify for hedge accounting, the derivatives and related hedged items must be designated as a hedge at inception of the hedge relationship. In addition, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. For accounting hedge relationships, OFG formally assesses, both at the inception of the hedge and on an ongoing basis, if the derivatives are highly effective in offsetting designated changes in the fair value or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective, hedge accounting is discontinued. OFG assesses effectiveness using statistical regression analysis. Where the critical terms of the derivative and hedged item match, effectiveness may be assessed qualitatively. For derivatives designated as cash flow hedges (hedging the exposure to variability in expected future cash flows), the gain or loss on derivatives is reported as a component of accumulated other comprehensive (loss) income and subsequently reclassified to income in the same period or periods during which the hedged cash flows affect earnings and recorded in the same income statement line item as the hedged cash flows. OFG discontinues hedge accounting when it is determined that the derivative no longer qualifies as an effective hedge; the derivative expires or is sold, terminated or exercised; or the derivative is de-designated as a cash flow hedge. Mortgage Banking Activities and Mortgage Loans Held-For-Sale The residential mortgage loans reported as held-for-sale are stated at the lower of amortized cost or fair value, cost being determined on the outstanding loan balance less unearned income, and fair value determined in the aggregate. The amount for which amortized cost exceeds fair value is recognized through a valuation allowance by a charge to income in the period in which the change occurs. Realized gains or losses on these loans are determined using the specific identification method. Loans held-for-sale include all conforming mortgage loans originated and purchased, which from time to time Oriental sells to other financial institutions or securitizes conforming mortgage loans into GNMA, FNMA and FHLMC pass-through certificates . Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities OFG recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. OFG is not engaged in sales of mortgage loans and mortgage-backed securities subject to recourse provisions except for those provisions that allow for the repurchase of loans as a result of a breach of certain representations and warranties other than those related to the credit quality of the loans included in the sale transactions. The transfer of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset in which OFG surrenders control over the assets is accounted for as a sale if all of the following conditions set forth in Accounting Standards Codification (“ASC”) Topic 860 are met: (i) the assets must be isolated from creditors of the transferor, (ii) the transferee must obtain the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the transferor cannot maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. When OFG transfers financial assets and the transfer fails any one of these criteria, OFG is prevented from derecognizing the transferred financial assets and the transaction is accounted for as a secured borrowing. For transfers of financial assets that satisfy the conditions to be accounted for as sales, OFG derecognizes all assets sold; recognizes all assets obtained and liabilities incurred in consideration as proceeds of the sale, including servicing assets and servicing liabilities, if applicable; initially measures at fair value assets obtained and liabilities incurred in a sale; and recognizes in earnings any gain or loss on the sale. The guidance on transfer of financial assets requires a true sale analysis of the treatment of the transfer under state law as if OFG was a debtor under the bankruptcy code. A true sale legal analysis includes several legally relevant factors, such as the intent of the parties, the nature and level of recourse to the transferor, and the nature of retained interests in the loans sold. The analytical conclusion as to a true sale is never absolute and unconditional, and contains qualifications based on the inherent equitable powers of a bankruptcy court, as well as any unsettled matters of state law or common law. Once the legal isolation test has been met, other factors concerning the nature and extent of the transferor’s control over the transferred assets are taken into account in order to determine whether derecognition of assets is warranted. When OFG sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. Conforming conventional mortgage loans are combined into pools which are exchanged for FNMA and GNMA mortgage-backed securities, which are generally sold to private investors, or sold directly to FNMA or other private investors for cash. To the extent the loans do not meet the specified characteristics, investors are generally entitled to require OFG to repurchase such loans or indemnify the investor against losses if the assets do not meet certain guidelines. GNMA programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which OFG provides servicing. At OFG’s option and without GNMA’s prior authorization, OFG may repurchase such delinquent loans for an amount equal to 100% of the loan’s remaining principal balance. This buy-back option is considered a conditional option until the delinquency criteria is met, at which time the option becomes unconditional. When the loans backing a GNMA security are initially securitized, OFG treats the transaction as a sale for accounting purposes because the conditional nature of the buy-back option means that OFG does not maintain effective control over the loans and, therefore, these are derecognized from the statement of financial condition. When individual loans later meet GNMA’s specified delinquency criteria and are eligible for repurchase, OFG is deemed to have regained effective control over these loans, and these must be brought back into OFG’s books as assets, regardless of whether OFG intends to exercise the buy-back option. Quality review procedures are performed by OFG as required under the government agency programs to ensure that asset guideline qualifications are met. OFG has not recorded any specific contingent liability in the consolidated financial statements for these customary representation and warranties related to loans sold by OFG, and management believes that, based on historical data, the probability of payments and expected losses under these representation and warranty arrangements is not significant. OFG has liability for residential mortgage loans sold subject to credit recourse, principally loans associated with FNMA residential mortgage loan sales and securitization programs. In the event of any customer default, 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 in the event of nonperformance by the borrowers is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. In the event of nonperformance by the borrower, OFG has rights to the underlying collateral securing the mortgage loan. OFG suffers ultimate losses on these loans when the proceeds from a foreclosure sale of the property underlying a defaulted mortgage loan are less than the outstanding principal balance of the loan plus any uncollected interest advanced and the costs of holding and disposing the related property. OFG has established a liability to cover the estimated credit loss exposure related to loans sold with credit recourse. The estimated losses to be absorbed under the credit recourse arrangements are recorded as a liability when the loans are sold or credit recourse is assumed as part of acquired servicing rights, and are updated by accruing or reversing expense (included as mortgage banking activities in the consolidated statements of operations) throughout the life of the loan, as necessary, when additional relevant information becomes available. The methodology used to estimate the recourse liability is a function of the recourse arrangements given and considers historical and forecast loss experience. The methodology leverages the expected loss framework for mortgage loans to estimate expected future losses. The reserve for the estimated losses under the credit recourse arrangements is presented separately within other liabilities in the consolidated statements of financial condition. 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. All separately recognized servicing assets are recognized at fair value using the fair value measurement method. Under the fair value measurement method, OFG measures servicing rights at fair value at each reporting date and reports changes in the fair value of servicing asset in the statement of operations in the period in which the changes occur, and includes these changes, if any, with mortgage banking activities in the consolidated statement of operations. The fair value of servicing rights is subject to fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The fair value of servicing rights 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. Loans and Allowance for Credit Losses Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees, and costs. Loans held for investment that were not purchased with credit deterioration are referred to as Non-PCD loans, and loans that were purchased with credit deterioration are referred to as PCD loans. OFG discontinues accrual of interest after payments become more than 90 days past due or earlier if OFG does not expect the full collection of principal or interest, except for residential mortgage loans insured or guaranteed under applicable FHA and VA programs that are not placed in non-accrual status until they become 12 months or more past due, as they are insured loans. At that time, any accrued income is reversed. The delinquency status is based on the contractual terms of the loans. Loans for which the recognition of interest income has been discontinued are designated as non-accruing. Thereafter, collections are accounted for as a cash method, until qualifying to return to accrual status. Such loans are not reinstated to accrual status until interest is received on a current basis and other factors indicative of doubtful collection cease to exist. The determination as to the ultimate collectability of the loan’s balance may involve management’s judgment in the evaluation of the borrower’s financial condition and prospects for repayment. Interest income is based on the effective yield on the Non-PCD loans. Purchased Credit Deteriorated (PCD) Loans: OFG has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. OFG considered the following factors as indicators that an acquired loan had evidence of deterioration in credit quality: loans that were 90 days or more past due; loans that had an internal loan grade of substandard or worse - substandard loans have a well-defined weakness that jeopardizes collection of the loan; loans that were classified as nonaccrual by the acquired bank at the time of acquisition; and loans that had been previously modified in a troubled debt restructuring. As such, our PCD loans are recorded at the purchase price plus the allowance for credit losses expected at the time of acquisition or implementation of the standard. An allowance for credit losses is determined using an undiscounted cash flow methodology. 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, for these loans, the determination of nonaccrual or accrual status is made at the pool level, not the individual loan level. On the adoption |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The assets acquired and liabilities assumed in the Scotiabank Acquisition as of December 31, 2019 were presented at their estimated fair value. The fair values initially assigned to the assets acquired and liabilities assumed were preliminary and subject to refinement for up to one year after the closing date of the acquisition as new information relative to closing date fair values became available. During 2020, OFG finalized its fair value analysis of the acquired assets and liabilities assumed and recorded remeasurement adjustments of approximately $7.3 million to the preliminary estimated fair values of certain accrued interest receivables, deferred tax asset, and accounts receivables to reflect new information obtained during the measurement period (as defined by ASC Topic 805), about facts and circumstances that existed as of the acquisition date that, if known, would have affected the acquisition-date fair value measurements. Merger and Restructuring Charges Merger and restructuring charges incurred during 2020 were recorded in the consolidated statement of operations and included incremental costs to integrate the operations of OFG and its most recent acquisition. These charges represent costs associated with these activities and do not represent ongoing costs of the fully integrated combined organization. The following table presents severance and employee charges, systems integrations charges, branch consolidation, and other merger and restructuring charges related to the Scotiabank Acquisition, for 2020: Year Ended December 31, 2020 (In thousands) Severance and employee-related charges $ 220 Professional services and system integrations 9,973 Branch consolidation 3,707 Other 2,183 Total merger and restructuring charges $ 16,083 Restructuring Reserve Restructuring reserves are established by a charge to merger and restructuring charges, and the restructuring charges are included in the merger and restructuring charges table. The following table presents the changes in restructuring reserves for 2021 and 2020: Year Ended December 31, 2021 2020 (In thousands) Balance at the beginning of the year $ 15,129 $ 17,491 Merger and restructuring charges — 16,083 Cash payments (15,129) (18,445) Balance at the end of the year $ — $ 15,129 Payments under merger and restructuring reserves associated with the Scotiabank Acquisition continued into 2021 but they were not material and were accounted under applicable accounting guidance to the cost being incurred. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH OFG has a contract with FNMA which requires collateral to guarantee the repurchase, if necessary, of loans sold with recourse. At December 31, 2022 and 2021, OFG delivered as collateral cash amounting to approximately $157 thousand and $175 thousand, respectively. The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits. The amount of those minimum average reserve balances for the week that covered December 31, 2022 was $482.9 million (December 31, 2021 - $456.5 million). At December 31, 2022 and 2021, 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. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021, money market instruments included as part of cash and cash equivalents amounted to $4.2 million and $9.0 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 December 31, 2022 and 2021 were as follows: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 1 to 5 years $ 10,155 $ — $ 550 $ 9,605 1.76 % Due from 5 to 10 years 59,167 — 3,764 55,403 2.00 % Due after 10 years 768,381 59 65,332 703,108 2.87 % Total FNMA and FHLMC certificates 837,703 59 69,646 768,116 2.79 % GNMA Securities Due from 1 to 5 years 12,505 — 632 11,873 1.66 % Due from 5 to 10 years 24,575 14 1,585 23,004 2.13 % Due after 10 years 320,417 892 36,652 284,657 2.90 % Total GNMA certificates 357,497 906 38,869 319,534 2.80 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 14,190 — 755 13,435 1.78 % Due from 5 to 10 years 485 — 10 475 2.14 % Due after 10 years 959 — 18 941 5.06 % Total CMOs issued by US government-sponsored agencies 15,634 — 783 14,851 1.99 % Total mortgage-backed securities 1,210,834 965 109,298 1,102,501 2.79 % Investment securities US Treasury securities Due less than 1 year 310,862 — 1,729 309,133 3.34 % Other debt securities Due from 1 to 5 years 1,116 30 4 1,142 4.45 % Total investment securities 311,978 30 1,733 310,275 3.35 % Total securities available for sale $ 1,522,812 $ 995 $ 111,031 $ 1,412,776 2.90 % December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 337,435 $ — $ 62,358 $ 275,077 1.71 % Investment securities US Treasury securities Due from 1 to 5 years 197,635 — 3,526 194,109 3.36 % Total securities held-to-maturity $ 535,070 $ — $ 65,884 $ 469,186 2.30 % December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 5 to 10 years $ 90,560 2,502 $ — $ 93,062 1.94 % Due after 10 years 93,440 — 3,200 90,240 1.37 % Total FNMA and FHLMC certificates 184,000 2,502 3,200 183,302 1.65 % GNMA Securities Due from 1 to 5 years 10,536 233 1 10,768 1.66 % Due from 5 to 10 years 26,419 556 — 26,975 1.80 % Due after 10 years 244,106 6,927 198 250,835 2.40 % Total GNMA certificates 281,061 7,716 199 288,578 2.32 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 1,788 22 — 1,810 1.70 % Due from 5 to 10 years 20,705 299 — 21,004 1.81 % Due after 10 years 1,601 16 1 1,616 4.24 % Total CMOs issued by US government-sponsored agencies 24,094 337 1 24,430 1.96 % Total mortgage-backed securities 489,155 10,555 3,400 496,310 2.05 % Investment securities US Treasury securities Due less than 1 year 10,737 88 — 10,825 1.48 % Obligations of US government-sponsored agencies Due less than 1 year 1,182 1 — 1,183 1.40 % Other debt securities Due less than 1 year 500 — — 500 0.57 % Due from 1 to 5 years 1,847 48 — 1,895 5.43 % Total other debt securities 2,347 48 — 2,395 4.39 % Total investment securities 14,266 137 — 14,403 1.95 % Total securities available for sale $ 503,421 $ 10,692 $ 3,400 $ 510,713 2.05 % December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 367,507 $ — $ 3,854 $ 363,653 1.71 % 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 December 31, 2022 and 2021, most securities held by OFG are issued by U.S. government entities and government-sponsored agencies that have a zero-credit loss assumption. Investment securities at December 31, 2022 include $294.2 million pledged to secure government deposits, derivatives, and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $293.7 million serve as collateral for public funds. Investment securities as of December 31, 2021 include $145.6 million pledged to secure government deposits, derivatives, and regulatory collateral that the secured parties are not permitted to sell or repledge, of which $143.8 million serve as collateral for public funds. At both December 31, 2022 and 2021, the Bank’s international banking entities held short-term US Treasury securities in the amount of $305 thousand and $325 thousand, respectively, 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 of Puerto Rico (“OCFI”). During 2022, 2021 and 2020, OFG retained securitized GNMA pools totaling $112.4 million, $149.1 million, and $90.1 million amortized cost, respectively, at a yield of 3.90%, 2.45%, and 2.48%, respectively, from its own originations. Also, during 2022, OFG retained FNMA pools totaling $13.7 million, at a yield of 4.97%, from its own originations. OFG did not retain FNMA pools during 2021 and 2020. During 2022, OFG purchased $550 million of available for sale US Treasury securities and $200 million of held to maturity US Treasury securities. During 2021, OFG did not purchase US Treasury securities. During 2020, OFG purchased $75 million of available for sale short-term US Treasury securities that matured before year end. US Treasury securities are exempt of income taxes. During 2022, OFG sold $242.4 million of available for sale US Treasury securities and recognized a $247 thousand loss in the sale. During 2021 and 2020, OFG sold $2.2 million and $316.3 million, respectively, of available-for-sale mortgage-backed securities and recognized gains of $19 thousand and $4.7 million, respectively. These losses and gains are included in the consolidated statements of operations. Year Ended December 31, 2022 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Investment securities US Treasury securities $ 242,126 $ 242,373 $ — $ 247 Year Ended December 31, 2021 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Mortgage-backed securities GNMA certificates $ 2,175 $ 2,156 $ 19 $ — Year Ended December 31, 2020 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Mortgage-backed securities FNMA and FHLMC certificates $ 229,571 $ 227,213 $ 2,358 $ — GNMA certificates 91,413 89,043 2,370 — Total mortgage-backed securities $ 320,984 $ 316,256 $ 4,728 $ — The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale and held-to-maturity at December 31, 2022 and 2021, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: December 31, 2022 12 months or more Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies 337 7 330 FNMA and FHLMC certificates $ 88,600 $ 18,989 $ 69,611 GNMA certificates 82,074 14,031 68,043 $ 171,011 $ 33,027 $ 137,984 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 December 31, 2022 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,297 $ 776 $ 14,521 FNMA and FHLMC certificates 745,566 50,657 694,909 GNMA certificates 251,835 24,838 226,997 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,323,800 $ 78,004 $ 1,245,796 Held-to-maturity FNMA and FHLMC certificates $ — $ — $ — US Treasury securities 197,635 3,526 194,109 $ 197,635 $ 3,526 $ 194,109 December 31, 2022 Total Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,634 $ 783 $ 14,851 FNMA and FHLMC certificates 834,166 69,646 764,520 GNMA certificates 333,909 38,869 295,040 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,494,811 $ 111,031 $ 1,383,780 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 US Treasury securities 197,635 3,526 194,109 $ 535,070 $ 65,884 $ 469,186 December 31, 2021 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 500 $ 1 $ 499 FNMA and FHLMC certificates 93,440 3,200 90,240 GNMA certificates 5,022 199 4,823 $ 98,962 $ 3,400 $ 95,562 Held-to-maturity FNMA and FHLMC certificates $ 367,507 $ 3,854 $ 363,653 OFG had no investment securities in a continuous loss position for 12 months or more at December 31, 2021. |
PLEDGED ASSETS
PLEDGED ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Pledged Assets [Abstract] | |
PLEDGED ASSETS | PLEDGED ASSETS The following table shows a summary of pledged and not pledged assets at December 31, 2022 and 2021. Investment securities available for sale are presented at fair value, and investment securities held to maturity, residential mortgage loans, commercial loans and leases are presented at amortized cost: December 31, 2022 2021 (In thousands) Pledged investment securities to secure: Derivatives $ 443 $ 1,679 Bond for the Bank's trust operations 104 105 Puerto Rico public fund deposits 293,650 143,775 Total pledged investment securities 294,197 145,559 Pledged residential mortgage loans to secure: Advances from the Federal Home Loan Bank 473,600 550,209 Pledged commercial loans to secure: Advances from the Federal Home Loan Bank 477,516 398,754 Federal Reserve Bank Credit Facility 49,117 47,239 Puerto Rico public fund deposits 73,617 85,148 600,250 531,141 Pledged auto loans and leases to secure: Federal Reserve Bank Credit Facility 1,160,678 1,138,126 Total pledged assets $ 2,528,725 $ 2,365,035 Financial assets not pledged: Investment securities $ 1,653,649 $ 732,661 Residential mortgage loans 1,250,120 1,408,158 Commercial loans 2,050,767 1,879,755 Consumer loans 537,257 409,675 Auto loans and leases 803,237 568,184 Total assets not pledged $ 6,295,030 $ 4,998,433 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
LOANS | LOANS OFG’s loan portfolio is composed of four segments: commercial, mortgage, consumer, and auto loans and leases. 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 December 31, 2022 and 2021 was as follows: December 31, 2022 December 31, 2021 Non-PCD PCD Total Non-PCD PCD Total (In thousands) Commercial loans: Commercial secured by real estate $ 974,202 $ 138,678 $ 1,112,880 $ 883,994 $ 176,186 $ 1,060,180 Other commercial and industrial 847,740 20,474 868,214 759,172 28,149 787,321 Other commercial and industrial - Paycheck Protection Program (PPP Loans) 6,702 — 6,702 86,889 — 86,889 US commercial loans 642,133 — 642,133 444,940 — 444,940 2,470,777 159,152 2,629,929 2,174,995 204,335 2,379,330 Mortgage 675,793 1,028,428 1,704,221 718,848 1,188,423 1,907,271 Consumer: Personal loans 480,620 338 480,958 346,859 546 347,405 Credit lines 12,826 300 13,126 14,775 370 15,145 Credit cards 42,872 — 42,872 46,795 — 46,795 Overdraft 301 — 301 330 — 330 536,619 638 537,257 408,759 916 409,675 Auto loans and leases 1,958,257 5,658 1,963,915 1,693,029 13,281 1,706,310 5,641,446 1,193,876 6,835,322 4,995,631 1,406,955 6,402,586 Allowance for credit losses (141,841) (10,832) (152,673) (132,065) (23,872) (155,937) Total loans held for investment, net 5,499,605 1,183,044 6,682,649 4,863,566 1,383,083 6,246,649 Mortgage loans held for sale 19,499 — 19,499 51,096 — 51,096 Other loans held for sale 21,088 — 21,088 31,566 — 31,566 Total loans held for sale 40,587 — 40,587 82,662 — 82,662 Total loans, net $ 5,540,192 $ 1,183,044 $ 6,723,236 $ 4,946,228 $ 1,383,083 $ 6,329,311 During 2022, OFG transferred to held for sale two commercial loans amounting to $9.7 million, net of $8.8 million charge-offs, one of them was sold during the fourth quarter of 2022. In addition, during 2022, OFG sold $21.9 million of past due mortgage loans held for sale. These mortgage loans were transferred to held for sale during the fourth quarter of 2021. At December 31, 2022 and 2021, OFG had carrying balances of $73.7 million and $87.3 million, respectively, in loans held for investment granted to the Puerto Rico government, including its municipalities and public corporations, as part of the commercial loan segment. The Bank’s loans to the Puerto Rico government amounting to $73.7 million and $86.2 million at December 31, 2022 and 2021, respectively, were 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. At December 31, 2021, total loan exposure to the Puerto Rico government included a $1.1 million PCD loan granted to a public corporation classified as non-accrual, which was repaid during 2022. The tables below present the aging of the amortized cost of loans held for investment at December 31, 2022 and 2021, by class of loans. Mortgage loans past due include $32.6 million and $14.5 million of delinquent loans in the GNMA buy-back option program at December 31, 2022 and 2021, 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. December 31, 2022 30-59 Days 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial Commercial secured by real estate $ 923 $ 164 $ 6,147 $ 7,234 $ 966,968 $ 974,202 $ — Other commercial and industrial 943 720 3,225 4,888 849,554 854,442 — US commercial loans — — — — 642,133 642,133 — 1,866 884 9,372 12,122 2,458,655 2,470,777 — Mortgage 9,267 5,848 56,714 71,829 603,964 675,793 3,856 Consumer Personal loans 4,263 2,669 2,314 9,246 471,374 480,620 — Credit lines 500 154 117 771 12,055 12,826 — Credit cards 730 486 682 1,898 40,974 42,872 — Overdraft 91 2 — 93 208 301 — 5,584 3,311 3,113 12,008 524,611 536,619 — Auto loans and leases 75,237 36,954 19,613 131,804 1,826,453 1,958,257 — Total loans $ 91,954 $ 46,997 $ 88,812 $ 227,763 $ 5,413,683 $ 5,641,446 $ 3,856 As of December 31, 2022, total past due loans exclude $21.1 million of past due commercial loans held for sale. December 31, 2021 30-59 Day 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial Commercial secured by real estate $ 2,210 $ 102 $ 8,446 $ 10,758 $ 873,236 $ 883,994 $ — Other commercial and industrial 1,886 538 946 3,370 842,691 846,061 — US commercial loans — — — — 444,940 444,940 — 4,096 640 9,392 14,128 2,160,867 2,174,995 — Mortgage 8,704 7,855 43,468 60,027 658,821 718,848 2,346 Consumer Personal loans 2,382 1,131 1,116 4,629 342,230 346,859 — Credit lines 531 141 227 899 13,876 14,775 — Credit cards 610 336 631 1,577 45,218 46,795 — Overdraft 130 14 — 144 186 330 — 3,653 1,622 1,974 7,249 401,510 408,759 — Auto loans and leases 60,038 30,234 13,461 103,733 1,589,296 1,693,029 — Total loans $ 76,491 $ 40,351 $ 68,295 $ 185,137 $ 4,810,494 $ 4,995,631 $ 2,346 As of December 31, 2021, total past due loans excludes $4.7 million of past due commercial loans held for sale. 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, PCD loans are not included in the tables above. Non-accrual Loans The following table presents the amortized cost basis of loans held for investment on nonaccrual status as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 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 Commercial secured by real estate $ 4,091 $ 17,098 $ 21,189 $ 16,299 $ 19,538 $ 35,837 Other commercial and industrial 2,769 885 3,654 1,283 483 1,766 US commercial loans 9,589 — 9,589 — — — 16,449 17,983 34,432 17,582 20,021 37,603 Mortgage 11,719 11,522 23,241 16,429 12,840 29,269 Consumer Personal loans 1,950 379 2,329 1,143 302 1,445 Personal lines of credit 116 — 116 226 — 226 Credit cards 683 — 683 632 — 632 2,749 379 3,128 2,001 302 2,303 Auto loans and leases 19,612 1 19,613 19,827 2 19,829 Total $ 50,529 $ 29,885 $ 80,414 $ 55,839 $ 33,165 $ 89,004 PCD: Commercial Commercial secured by real estate $ 2,807 $ 6,084 $ 8,891 $ 5,205 $ 6,198 $ 11,403 Other commercial and industrial — 36 36 1,102 40 1,142 2,807 6,120 8,927 6,307 6,238 12,545 Mortgage 259 — 259 334 — 334 Total $ 3,066 $ 6,120 $ 9,186 $ 6,641 $ 6,238 $ 12,879 Total non-accrual loans $ 53,595 $ 36,005 $ 89,600 $ 62,480 $ 39,403 $ 101,883 The determination of nonaccrual or accrual status of PCD loans is made at the pool level, not the individual loan level. As of December 31, 2022 and 2021, total commercial non-accrual loans excludes $16.4 million and $9.9 million of non-accrual commercial loans held for sale, respectively. Delinquent residential mortgage loans insured or guaranteed under applicable FHA and 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. At December 31, 2022 and 2021, loans whose terms have been extended and which were classified as troubled-debt restructurings that were not included in non-accrual loans amounted to $145.2 million and $125.9 million, respectively, as they were performing under their modified terms. Modifications OFG offers various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consists of the deferral of interest and/or principal payments due to deterioration in the borrowers’ financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructure. The amount of outstanding commitments to lend additional funds to commercial borrowers whose terms have been modified in TDRs amounted to $3.2 million and $3.7 million at December 31, 2022 and 2021, respectively. The following table presents the troubled-debt restructurings in all loan portfolios as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Accruing Non-accruing Total Related Allowance Accruing Non-accruing Total Related Allowance (In thousands) (In thousands) Commercial loans: Commercial secured by real estate $ 31,437 $ 13,187 $ 44,624 $ 181 $ 10,981 $ 14,444 $ 25,425 $ 202 Other commercial and industrial 2,272 354 2,626 42 2,785 473 3,258 41 US commercial loans 7,132 — 7,132 89 7,156 — 7,156 126 40,841 13,541 54,382 312 20,922 14,917 35,839 369 Mortgage 102,387 6,773 109,160 2,495 101,487 9,475 110,962 3,867 Consumer: Personal loans 1,850 15 1,865 73 3,275 139 3,414 159 Auto loans and leases 77 — 77 3 203 8 211 11 Total loans $ 145,155 $ 20,329 $ 165,484 $ 2,883 $ 125,887 $ 24,539 $ 150,426 $ 4,406 The following tables present the troubled-debt restructurings by loan portfolios and modification type as of December 31, 2022 and 2021 : December 31, 2022 Reduction in interest rate Maturity or term extension Combination of reduction in interest rate and extension of maturity Forbearance Total (In thousands) Commercial loans: Commercial secured by real estate $ 7,746 $ 29,454 $ 7,424 $ — $ 44,624 Other commercial and industrial 785 1,367 474 — 2,626 US commercial loans 7,132 — — — 7,132 15,663 30,821 7,898 — 54,382 Mortgage 31,709 8,020 35,194 34,237 109,160 Consumer: Personal loans 825 176 793 71 1,865 Auto loans and leases 39 — 20 18 77 Total loans $ 48,236 $ 39,017 $ 43,905 $ 34,326 $ 165,484 December 31, 2021 Reduction in interest rate Maturity or term extension Combination of reduction in interest rate and extension of maturity Forbearance Total (In thousands) Commercial loans: Commercial secured by real estate $ 8,461 $ 1,227 $ 12,401 $ 3,336 $ 25,425 Other commercial and industrial 723 1,985 522 28 3,258 US commercial loans 7,156 — — — 7,156 16,340 3,212 12,923 3,364 35,839 Mortgage 37,307 6,796 32,456 34,403 110,962 Consumer: Personal loans 1,496 287 1,430 201 3,414 Auto loans and leases 74 — 28 109 211 Total loans $ 55,217 $ 10,295 $ 46,837 $ 38,077 $ 150,426 TDRs disclosed above were not related to Covid-19 modifications. Section 4013 of CARES Act and the " Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" provided banks an option to elect to not account for certain loan modifications related to Covid-19 as TDRs as long as the borrowers were not more than 30 days past due as of December 31, 2019 and at the time of implementation of the modification program, and the borrowers meet other applicable criteria. At December 31, 2021, there were $28.0 million loans deferred from the Covid-19 pandemic that were not classified as a TDR, which consisted of FHA and VA insured mortgage loans. There were no deferred loans from the COVID-19 pandemic at December 31, 2022. At December 31, 2022 and 2021, TDR mortgage loans include $43.5 million and $40.8 million, respectively, of government-guaranteed loans ( e.g. FHA/VA). 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 TDR tables. Loan modifications that are considered TDR loans completed during 2022, 2021 and 2020 were as follows: Year Ended December 31, 2022 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 103 $ 12,580 4.63 % 258 $ 13,199 3.79 % 342 Commercial 5 38,873 3.57 % 131 38,729 3.64 % 184 Consumer 4 77 13.42 % 74 77 10.41 % 70 Year Ended December 31, 2021 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 160 $ 20,077 4.33 % 323 $ 20,241 3.47 % 345 Commercial 7 10,093 5.50 % 86 9,979 4.48 % 60 Consumer 17 294 13.72 % 69 295 10.12 % 78 Auto loans and leases 9 148 8.70 % 72 148 9.35 % 49 Year Ended December 31, 2020 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 88 $ 11,081 4.70 % 332 $ 10,151 4.13 % 327 Commercial 8 14,896 5.45 % 63 14,896 4.36 % 77 Consumer 23 349 14.11 % 64 391 10.57 % 76 Auto loans and leases 31 217 10.88 % 74 219 11.02 % 71 The following table presents troubled-debt restructurings for which there was a payment default during 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (Dollars in thousands) Mortgage 13 $ 1,701 19 $ 2,488 9 $ 1,345 Commercial 1 $ 633 — $ — — $ — Consumer 1 $ 40 6 $ 76 1 $ 2 Auto loans and leases — $ — 1 $ 10 — $ — As of December 31, 2022 and 2021 , the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $14.9 million and $16.9 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 the respective territory’s 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 title issues. As a result of the effects of Hurricane Fiona and Puerto Rico being declared a disaster zone by local and federal authorities during 2022, OFG granted loan payment accommodations to certain qualified borrowers in order to provide them with flexibility to address the hurricane’s immediate impact. In addition, for its business banking segment, OFG granted loans up to $50,000 with three months of interest-only payments followed by up to thirty-three payments of principal and interest. At December 31, 2022, the total loans outstanding under the payment accommodations program amounted to $33.1 million. The table below presents the amortized cost of collateral-dependent loans held for investment at December 31, 2022 and 2021, by class of loans. December 31, 2022 2021 (In thousands) Commercial secured by real estate $ 8,805 $ 10,233 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 December 31, 2022 and 2021 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 Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 220,035 $ 177,775 $ 110,809 $ 118,518 $ 50,454 $ 159,721 $ 69,523 $ 906,835 Special Mention 1,899 — 6,007 17,004 2,095 13,934 439 41,378 Substandard 103 8,410 345 405 473 14,722 1,185 25,643 Doubtful — — — — — 15 331 346 Loss — — — — — — — — Total commercial secured by real estate 222,037 186,185 117,161 135,927 53,022 188,392 71,478 974,202 Other commercial and industrial: Loan grade: Pass 123,659 198,776 67,147 35,678 13,807 7,863 397,944 844,874 Special Mention 3 60 31 654 1,819 21 3,823 6,411 Substandard 112 — 260 472 280 74 1,920 3,118 Doubtful — — — — — — 39 39 Loss — — — — — — — — Total other commercial and industrial: 123,774 198,836 67,438 36,804 15,906 7,958 403,726 854,442 US commercial loans: Loan grade: Pass 81,155 92,688 43,965 33,827 49,356 — 308,183 609,174 Special Mention 6,346 — — — — — 1,122 7,468 Substandard 3,363 — 8,090 — 4,449 — 9,589 25,491 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 90,864 92,688 52,055 33,827 53,805 — 318,894 642,133 Total commercial loans $ 436,675 $ 477,709 $ 236,654 $ 206,558 $ 122,733 $ 196,350 $ 794,098 $ 2,470,777 Term Loans Revolving Total 2021 2020 2019 2018 2017 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 183,820 $ 120,855 $ 114,208 $ 94,864 $ 52,439 $ 183,026 $ 45,178 $ 794,390 Special Mention 654 628 32,578 4,581 4,053 5,102 643 48,239 Substandard 8,415 10,694 58 849 1,357 17,555 1,671 40,599 Doubtful — — — — — 22 744 766 Loss — — — — — — — — Total commercial secured by real estate 192,889 132,177 146,844 100,294 57,849 205,705 48,236 883,994 Other commercial and industrial: Loan grade: Pass 276,165 93,809 45,976 57,989 6,106 6,004 330,072 816,121 Special Mention 78 23 8,076 2,213 3,525 — 13,642 27,557 Substandard 112 48 155 394 81 28 1,513 2,331 Doubtful — — — — — — 52 52 Loss — — — — — — — — Total other commercial and industrial: 276,355 93,880 54,207 60,596 9,712 6,032 345,279 846,061 US commercial loans: Loan grade: Pass 85,394 61,098 41,924 47,179 — — 171,928 407,523 Special Mention — — 1,515 19,095 — — — 20,610 Substandard — 7,156 — 9,651 — — — 16,807 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 85,394 68,254 43,439 75,925 — — 171,928 444,940 Total commercial loans $ 554,638 $ 294,311 $ 244,490 $ 236,815 $ 67,561 $ 211,737 $ 565,443 $ 2,174,995 At December 31, 2022 and 2021, the balance of revolving loans converted to term loans was $78.0 million and $37.5 million, respectively. OFG considers the performance of the loan portfolio and its impact on the allowance for credit losses. 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 tables present the amortized cost in mortgage and consumer loans held for investment based on payment activity as of December 31, 2022 and 2021: Term Loans Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Mortgage: Payment performance: Performing $ 18,700 $ 25,274 $ 16,175 $ 15,457 $ 16,790 $ 549,885 $ — $ 642,281 Nonperforming — — 110 574 241 32,587 — 33,512 Total mortgage loans: 18,700 25,274 16,285 16,031 17,031 582,472 — 675,793 Consumer: Personal loans: Payment performance: Performing 284,183 112,591 31,876 31,850 12,022 5,768 — 478,290 Nonperforming 831 661 111 300 81 346 — 2,330 Total personal loans 285,014 113,252 31,987 32,150 12,103 6,114 — 480,620 Credit lines: Payment performance: Performing — — — — — — 12,710 12,710 Nonperforming — — — — — — 116 116 Total credit lines — — — — — — 12,826 12,826 Credit cards: Payment performance: Performing — — — — — — 42,189 42,189 Nonperforming — — — — — — 683 683 Total credit cards — — — — — — 42,872 42,872 Overdrafts: Payment performance: Performing — — — — — — 301 301 Nonperforming — — — — — — — — Total overdrafts — — — — — — 301 301 Total consumer loans 285,014 113,252 31,987 32,150 12,103 6,114 55,999 536,619 Total mortgage and consumer loans $ 303,714 $ 138,526 $ 48,272 $ 48,181 $ 29,134 $ 588,586 $ 55,999 $ 1,212,412 Term Loans Revolving Total 2021 2020 2019 2018 2017 Prior (In thousands) Mortgage: Payment performance: Performing $ 18,486 $ 16,585 $ 15,461 $ 19,261 $ 24,872 $ 584,792 $ — $ 679,457 Nonperforming — 126 129 510 1,830 36,796 — 39,391 Total mortgage loans: 18,486 16,711 15,590 19,771 26,702 621,588 — 718,848 Consumer: Personal loans: Payment performance: Performing 175,273 55,960 65,425 29,808 12,287 6,661 — 345,414 Nonperforming 296 239 411 143 20 336 — 1,445 Total personal loans 175,569 56,199 65,836 29,951 12,307 6,997 — 346,859 Credit lines: Payment performance: Performing — — — — — — 14,549 14,549 Nonperforming — — — — — — 226 226 Total credit lines — — — — — — 14,775 14,775 Credit cards: Payment performance: Performing — — — — — — 46,163 46,163 Nonperforming — — — — — — 632 632 Total credit cards — — — — — — 46,795 46,795 Overdrafts: Payment performance: Performing — — — — — — 330 330 Nonperforming — — — — — — — — Total overdrafts — — — — — — 330 330 Total consumer loans 175,569 56,199 65,836 29,951 12,307 6,997 61,900 408,759 Total mortgage and consumer loans $ 194,055 $ 72,910 $ 81,426 $ 49,722 $ 39,009 $ 628,585 $ 61,900 $ 1,127,607 At December 31, 2022 and 2021, there were no revolving loans that converted to term loans. OFG evaluates credit quality for auto loans and leases based on FICO score. The following tables present the amortized cost in auto loans and leases held for investment based on their most recent FICO score as of December 31, 2022 and 2021: Term Loans Total 2022 2021 2020 2019 2018 Prior (In thousands) Auto loans and leases: FICO score: 1-660 178,426 143,926 72,148 58,069 44,156 31,980 528,705 661-699 171,723 93,359 42,388 31,033 21,283 13,518 373,304 700+ 375,845 235,743 144,783 135,517 88,597 47,499 1,027,984 No FICO 7,766 6,553 3,741 5,873 3,008 1,323 28,264 Total auto loans and leases: $ 733,760 $ 479,581 $ 263,060 $ 230,492 $ 157,044 $ 94,320 $ 1,958,257 Term Loans Total 2021 2020 2019 2018 2017 Prior (In thousands) Auto loans and leases: FICO score: 1-660 161,534 90,402 80,745 65,681 38,001 23,171 459,534 661-699 134,507 68,422 48,173 33,854 16,761 10,534 312,251 700+ 245,148 180,737 184,307 133,098 63,229 38,474 844,993 No FICO 26,759 13,580 17,062 10,119 5,515 3,216 76,251 Total auto loans and leases: $ 567,948 $ 353,141 $ 330,287 $ 242,752 $ 123,506 $ 75,395 $ 1,693,029 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 tables above. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES On January 1, 2020, OFG adopted the accounting standard that requires the measurement of the allowance for credit losses to be 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 weighting 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. At December 31, 2022, 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 used the same level of probability in both economic scenarios. In addition, the ACL at December 31, 2022 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 the evolution of risk ratings applied to the commercial loans and consumer retail 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 from the military conflict between Ukraine and Russia. As of December 31, 2022, the allowance for credit losses decreased by $3.3 million when compared to December 31, 2021. The provision for credit losses for 2022 reflected a provision of $25.9 million related to the growth in loan balances, a provision of $11.8 million related to commercial-specific loan reserves due to certain commercial loans placed in non-accrual status, and a provision of $1.9 million for changes in the economic and loss rate models, offset by a $15.2 million release associated with qualitative adjustment due to improvement in the performance of the portfolios and in Puerto Rico’s labor market. The net charge-offs for 2022, amounted to $27.7 million, a decrease of $22.1 million when compared to 2021. The decrease is mainly due to reductions of $27.1 million in mortgage loans and $7.3 million in commercial loans, offset by increases of $8.9 million in auto loans and leases, and $3.4 million in consumer loans. During 2021, OFG recognized $30.1 million net charge-offs related to the decision to sell $65.5 million past due loans, which were subsequently sold during 2022. The following tables present the activity in OFG’s allowance for credit losses by segment for 2022, 2021 and 2020: Year Ended December 31, 2022 Commercial Mortgage Consumer Auto loans and leases Total (In thousands) Non-PCD: Balance at beginning of year $ 32,262 $ 15,299 $ 19,141 $ 65,363 $ 132,065 Provision for (recapture of) credit losses 19,076 (8,758) 16,084 16,016 42,418 Charge-offs (13,380) (284) (15,198) (32,662) (61,524) Recoveries 1,200 3,314 3,237 21,131 28,882 Balance at end of year $ 39,158 $ 9,571 $ 23,264 $ 69,848 $ 141,841 PCD: Balance at beginning of year $ 4,508 $ 19,018 $ 34 $ 312 $ 23,872 (Recapture) provision of credit losses (6,855) (10,629) 62 (588) (18,010) Charge-offs (69) (1,695) (176) (310) (2,250) Recoveries 3,804 2,665 94 657 7,220 Balance at end of year $ 1,388 $ 9,359 $ 14 $ 71 $ 10,832 Total allowance for credit losses at end of year $ 40,546 $ 18,930 $ 23,278 $ 69,919 $ 152,673 Total commercial charge-offs for 2022 included $12.3 million charge-offs that were previously reserved for four commercial loans, two of them were sold during 2022. Total recoveries for 2022 included a $2.8 million recovery from a Puerto Rico government public corporation PCD commercial loan repaid during the first quarter of 2022 and $1.1 million recoveries associated with the final settlement of the past due mortgage loans transferred to held for sale during the fourth quarter of 2021 and subsequently sold during the first quarter of 2022. Year Ended December 31, 2021 Commercial Mortgage Consumer Auto loans and leases Total (In thousands) Non-PCD: Balance at beginning of year $ 45,779 $ 19,687 $ 25,253 $ 70,296 $ 161,015 (Recapture of) provision for credit losses (7,130) (242) 2,868 (2,373) (6,877) Charge-offs (8,788) (5,789) (11,880) (26,530) (52,987) Recoveries 2,401 1,643 2,900 23,970 30,914 Balance at end of year $ 32,262 $ 15,299 $ 19,141 $ 65,363 $ 132,065 PCD: Balance at beginning of year $ 16,405 $ 26,389 $ 57 $ 943 $ 43,794 (Recapture of) provision for credit losses (2,585) 11,556 (317) (894) 7,760 Charge-offs (12,241) (20,350) (22) (946) (33,559) Recoveries 2,929 1,423 316 1,209 5,877 Balance at end of year $ 4,508 $ 19,018 $ 34 $ 312 $ 23,872 Total allowance for credit losses at end of year $ 36,770 $ 34,317 $ 19,175 $ 65,675 $ 155,937 As a result of the decision to sell mortgage and commercial loans during 2021, OFG recognized $30.1 million in net charge-offs and an additional provision of $9.7 million, decreasing the allowance for credit losses by $20.4 million. Year Ended December 31, 2020 Commercial Mortgage Consumer Auto loans and leases Total (In thousands) Non-PCD: Balance at beginning of year $ 25,993 $ 8,727 $ 18,446 $ 31,878 $ 85,044 Impact of ASC 326 adoption 3,562 10,980 8,418 16,238 39,198 Provision for credit losses 18,462 258 16,579 51,233 86,532 Charge-offs (4,979) (884) (21,772) (48,547) (76,182) Recoveries 2,741 606 3,582 19,494 26,423 Balance at end of year $ 45,779 $ 19,687 $ 25,253 $ 70,296 $ 161,015 PCD: Balance at beginning of year $ 8,893 $ 21,655 $ — $ 947 $ 31,495 Impact of ASC 326 adoption 42,143 7,830 181 368 50,522 Provision for credit losses 480 6,392 126 187 7,185 Charge-offs (36,097) (10,342) (542) (2,023) (49,004) Recoveries 986 854 292 1,464 3,596 Balance at end of year $ 16,405 $ 26,389 $ 57 $ 943 $ 43,794 Total allowance for credit losses at end of year $ 62,184 $ 46,076 $ 25,310 $ 71,239 $ 204,809 The allowance for credit losses for 2020 included a $39.9 million provision to incorporate changes in the macro-economic scenario and qualitative adjustments as a result of the Covid-19 pandemic. |
FORECLOSED REAL ESTATE
FORECLOSED REAL ESTATE | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate [Abstract] | |
FORECLOSED REAL ESTATE | FORECLOSED REAL ESTATE The following table presents the activity related to foreclosed real estate for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 15,039 $ 11,596 $ 29,909 Additions 7,872 18,221 3,654 Sales (16,855) (14,758) (18,521) Decline in value (1,256) (1,450) (2,489) Other adjustments 6,414 1,430 (957) Balance at end of year $ 11,214 $ 15,039 $ 11,596 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment at December 31, 2022 and 2021 are stated at cost less accumulated depreciation and amortization as follows: Useful Life December 31, 2022 2021 (In thousands) Land — $ 4,031 $ 4,080 Buildings and improvements 20 — 40 74,349 77,988 Leasehold improvements 1 — 10 17,901 20,929 Furniture and fixtures 3 — 10 23,460 19,378 Information technology and other 3 — 7 59,130 43,156 178,871 165,531 Less: accumulated depreciation and amortization (72,051) (73,407) $ 106,820 $ 92,124 Depreciation and amortization of premises and equipment totaled $15.8 million, $14.1 million and $12.7 million for 2022, 2021 and 2020, respectively. These are included in the consolidated statements of operations as part of occupancy and equipment expenses. |
SERVICING ASSETS
SERVICING ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
SERVICING ASSETS | SERVICING ASSETS At December 31, 2022, the fair value of mortgage servicing rights was $50.9 million ($49.0 million — December 31, 2021). The following table presents the changes in servicing rights measured using the fair value method for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Fair value at beginning of year $ 48,973 $ 47,295 $ 50,779 Servicing from mortgage securitization or asset transfers 3,998 6,089 2,394 Changes due to payments on loans (5,312) (6,738) (4,067) Changes in fair value due to changes in valuation model inputs or assumptions 3,262 2,327 (1,811) Fair value at end of year $ 50,921 $ 48,973 $ 47,295 The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Constant prepayment rate 3.43% - 21.20% 3.90% - 24.48% 5.02% - 35.22% Discount rate 10.00% - 15.50% 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: December 31, 2022 2021 (In thousands) Mortgage-related servicing asset Carrying value of mortgage servicing asset $ 50,921 $ 48,973 Weighted average life (in years) 7.8 7.8 Constant prepayment rate Decrease in fair value due to 10% adverse change $ (956) $ (1,020) Decrease in fair value due to 20% adverse change $ (1,880) $ (2,004) Discount rate Decrease in fair value due to 10% adverse change $ (2,265) $ (2,175) Decrease in fair value due to 20% adverse change $ (4,356) $ (4,183) 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. Servicing fees on mortgage loans for 2022, 2021 and 2020 totaled $20.3 million, $21.4 million and $17.2 million, respectively. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES OFG’s overall interest rate risk-management strategy incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. Derivative instruments that are used as part of OFG’s interest rate risk-management strategy include interest rate swaps and caps. As of December 31, 2022 and 2021, the notional amount of derivative contracts outstanding was $26.6 million and $28.5 million respectively. The gross fair value of derivative asset was $406 thousand and $1 thousand, respectively, and the gross fair value of derivatives liabilities was zero and $804 thousand, respectively. The impact of master netting agreements was not material. As of December 31, 2022 and 2021, derivative and hedging activities were not material. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below. The activity during 2022 reflects the sale on December 31, 2022 of OFG’s retirement plan administration business. Refer to Note 28 – Business Segments for additional information on OFG’s reportable business segments. Banking Wealth Management Treasury Total (In thousands) December 31, 2021 $ 84,063 $ 2,006 $ — $ 86,069 Goodwill written off related to sale of business unit — (1,828) — (1,828) December 31, 2022 $ 84,063 $ 178 $ — $ 84,241 There were no changes in the carrying amount of goodwill as of December 31, 2021 and 2020. There were no accumulated impairment losses during 2022, 2021 and 2020. 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 2022 and 2021 using October 31, 2022 and 2021, respectively, as the annual evaluation date and concluded that there was no impairment at December 31, 2022 and 2021. The following table reflects the components of other intangible assets subject to amortization at December 31, 2022 and 2021: Gross Accumulated Net (In thousands) December 31, 2022 Core deposit intangibles $ 41,507 $ 20,376 $ 21,131 Customer relationship intangibles 12,693 6,231 6,462 Total other intangible assets $ 54,200 $ 26,607 $ 27,593 December 31, 2021 Core deposit intangibles $ 51,402 $ 23,772 $ 27,630 Customer relationship intangibles 17,753 9,385 8,368 Other intangibles 567 472 95 Total other intangible assets $ 69,722 $ 33,629 $ 36,093 In connection with previous acquisitions, OFG recorded a core deposit intangible representing the value of checking and savings deposits acquired. In addition, OFG recorded a customer relationship intangible representing the value of customer relationships acquired with the acquisitions of insurance agencies. During 2022, the core deposit intangible and customer relationship intangible recorded during the BBVAPR acquisition was fully amortized. Other intangible assets have a definite useful life. Amortization of other intangible assets for 2022, 2021 and 2020 was $8.5 million, $9.8 million, and $11.1 million, respectively. Year Ending December 31, (In thousands) 2023 $ 6,898 2024 5,913 2025 4,927 2026 3,942 2027 2,956 Thereafter 2,957 |
ACCRUED INTEREST RECEIVABLE AND
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Interest Receivable and Other Assets [Abstract] | |
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS | ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS Accrued interest receivable at December 31, 2022 and 2021 consists of the following: December 31, 2022 2021 (In thousands) Loans $ 58,144 $ 54,794 Investments 4,258 1,766 $ 62,402 $ 56,560 Accrued interest receivable on loans that participated in the Hurricane Fiona and Covid-19 deferral programs amounted to $21.8 million at December 31, 2022, of which $20.7 million corresponds to loans in current status. Accrued interest receivable on loans that participated in the Covid-19 deferral program amounted to $23.9 million at December 31, 2021, of which $21.5 million corresponds 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 December 31, 2022 and 2021, the allowance for credit losses for accrued interest receivable for loans that participated in moratorium programs amounted to $144 thousand and $161 thousand, respectively, and is included in accrued interest receivable in the statement of financial condition. Other assets at December 31, 2022 and 2021 consist of the following: December 31, 2022 2021 (In thousands) Prepaid expenses $ 54,875 $ 61,061 Other repossessed assets 4,617 1,945 Investment in Statutory Trust — 1,083 Accounts receivable and other assets 61,420 88,756 $ 120,912 $ 152,845 Prepaid expenses amounting to $54.9 million at December 31, 2022, include prepaid municipal, property and income taxes aggregating to $47.2 million. At December 31, 2021 prepaid expenses amounted to $61.1 million, including prepaid municipal, property and income taxes aggregating to $54.6 million. Other repossessed assets totaled $4.6 million and $1.9 million at December 31, 2022 and 2021, respectively, and consist of repossessed automobiles, which are recorded at their net realizable value. |
DEPOSITS AND RELATED INTEREST
DEPOSITS AND RELATED INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
Deposits and Related Interest [Abstract] | |
DEPOSITS AND RELATED INTEREST | DEPOSITS AND RELATED INTEREST Total deposits, including related accrued interest payable, as of December 31, 2022 and 2021 consist of the following: December 31, 2022 2021 (In thousands) Non-interest-bearing demand deposits $ 2,630,458 $ 2,501,644 Interest-bearing savings and demand deposits 4,774,265 4,880,476 Retail certificates of deposit 979,545 1,007,577 Institutional certificates of deposit 172,725 202,050 Total core deposits 8,556,993 8,591,747 Brokered deposits 11,371 11,371 Total deposits $ 8,568,364 $ 8,603,118 At December 31, 2022 and 2021, the aggregate amount of uninsured deposits was $3.498 billion and $3.270 billion, respectively. The weighted average interest rate of OFG’s deposits was 0.41% and 0.49%, respectively, at December 31, 2022 and 2021. Interest expense for 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Demand and savings deposits $ 24,261 $ 23,713 $ 25,798 Certificates of deposit 7,978 15,301 34,400 $ 32,239 $ 39,014 $ 60,198 At December 31, 2022 and 2021, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $384.4 million and $360.8 million, respectively. At December 31, 2022 and 2021, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $284.2 million and $183.8 million, respectively. These public funds were collateralized with commercial loans and securities amounting to $367.3 million and $228.9 million at December 31, 2022 and 2021, respectively. Excluding accrued interest of approximately $682 thousand and $736 thousand, the scheduled maturities of certificates of deposit at December 31, 2022 and 2021 are as follows: December 31, 2022 Year-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 238,776 $ 29,503 Over 3 months through 6 months 152,940 18,238 Over 6 months through 1 year 262,976 59,093 654,692 106,834 Over 1 through 2 years 279,034 64,109 Over 2 through 3 years 136,732 26,481 Over 3 through 4 years 51,505 8,276 Over 4 through 5 years 39,888 2,230 Over 5 years 1,108 — $ 1,162,959 $ 207,930 December 31, 2021 Year-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 252,513 25,003 Over 3 months through 6 months 147,400 12,113 Over 6 months through 1 year 239,830 45,280 639,743 82,396 Over 1 through 2 years 328,177 60,108 Over 2 through 3 years 114,403 18,578 Over 3 through 4 years 77,604 22,536 Over 4 through 5 years 58,918 8,505 Over 5 years 1,417 — $ 1,220,262 $ 192,123 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 $495 thousand and $491 thousand as of December 31, 2022 and 2021, respectively. |
BORROWINGS AND RELATED INTEREST
BORROWINGS AND RELATED INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021, these advances were secured by mortgage and commercial loans amounting to $951.1 million and $949.0 million, respectively. Also, at December 31, 2022 and 2021, OFG had an additional borrowing capacity with the FHLB of $628.1 million and $697.3 million, respectively. At December 31, 2022 and 2021, the weighted average remaining maturity of FHLB’s advances was 3 days. The original term of the outstanding advance at December 31, 2022 is 1 month. The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $103 thousand and $8 thousand at December 31, 2022 and 2021, respectively: December 31, 2022 2021 (In thousands) Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 4.46% (December 31, 2021 - 0.35%) $ 26,613 $ 28,480 Advances from FHLB mature as follows: December 31, 2022 2021 (In thousands) Under 90 days $ 26,613 $ 28,480 Subordinated Capital Notes In August 2003, the Statutory Trust II, a special purpose entity of OFG, was formed for the purpose of issuing trust redeemable preferred securities. In September 2003, $35.0 million of trust redeemable preferred securities were issued by the Statutory Trust II as part of a pooled underwriting transaction. The proceeds from this issuance were used by the Statutory Trust II to purchase a like amount of a floating rate junior subordinated deferrable interest debenture issued by OFG with a par value of $36.1 million. During 2022, OFG redeemed all outstanding $36.1 million subordinated capital notes before maturity, and as a result, it wrote off $405 thousand in unamortized issuance costs, included as interest expense in the consolidated statements of operations. OFG also recorded a gain on early debt extinguishment of $42 thousand included in other non-interest income in the consolidated statements of operations. Prior to redemption, such subordinated capital notes carried an interest rate of 3.23% based on 3-month LIBOR plus 295 basis points and were schedule to mature on September 17, 2033. Following the redemption of the subordinated capital notes, the Statutory Trust II was dissolved. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANOFG has a profit-sharing plan containing a cash or deferred arrangement qualified under Sections 1081.01(a) and 1081.01(d) of the Puerto Rico Internal Revenue Code of 2011, as amended, (the “PR Code”), and Sections 401(a) and 401(k) of the United States Internal Revenue Code of 1986, as amended (the “US Code”). The plan is subject to the provisions of Title I of the Employee Retirement Income Security Act of 1976, as amended (“ERISA”). This plan covers all full-time employees of OFG who are age 21 or older. Under this plan, participants may contribute each year up to $20,500. OFG’s matching contribution is 50 cents for each dollar contributed by an employee, up to 4% of such employee’s base salary. It is invested in accordance with the employee’s decision among the available investment alternatives provided by the plan. This plan is entitled to acquire and hold qualifying employer securities as part of its investment of the trust assets pursuant to ERISA Section 407. OFG contributed $2.4 million in cash during 2022 and $2.3 million during both 2021 and 2020. OFG’s contribution becomes 100% vested once the employee completes three years of service. In December 2020, all the balances related to the Retirement Plan for SBPR employee accounts were merged into the plan. Also, OFG offers to its senior management a non-qualified deferred compensation plan, whereby participants can defer taxable income. Both the employer and the employee have flexibility because non-qualified plans may not be subject to ERISA and the PR Code and the US Code contribution limits and discrimination tests in terms of who must be included in the plan. Under this plan, the employee’s current taxable income is reduced by the amount being deferred. Generally, funds deposited in a deferred compensation plan can accumulate without current income tax to the individual. Income taxes are due when the funds are withdrawn. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS OFG grants loans to its directors and executive officers and to certain related individuals or organizations in the ordinary course of business. These loans are offered at the same terms as loans to unrelated third parties. The activity and balance of these loans for 2022, 2021, and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at the beginning of year $ 25,915 $ 21,112 $ 22,312 New loans and disbursements 9,706 8,233 17,896 Repayments (2,829) (3,430) (19,096) Balance at the end of year $ 32,792 $ 25,915 $ 21,112 OFG also hired professional services amounting to $4.3 million, $5.0 million and $3.2 million for 2022, 2021, and 2020, respectively, from a related party. OFG, through its banking subsidiary, entered into a commitment to make an equity investment in a limited partnership classified as a small business investment company. The partnership is managed by a Puerto Rico limited liability company, as general partner, which is led by a group of investment professionals, including a person related to a member of OFG’s Board of Directors. OFG, as limited partner, committed to the partnership $3.0 million. At December 31, 2022 and 2021, OFG’s investment in the partnership amounted to $2.4 million and $1.8 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES OFG is subject to the provisions of the PR Code. The PR Code imposed a maximum statutory corporate tax rate of 37.5%. OFG has operations in the mainland United States through its wholly owned subsidiaries OPC, OFG Ventures and OFG USA LLC (“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. OPC is subject to Florida state taxes, OFG USA is subject to North Carolina state taxes, and current investments in OFG Ventures are subject to state taxes in Missouri. In addition, during 2021, OFG incorporated in Grand Cayman, as a foreign wholly owned subsidiary, OFG Reinsurance. OFG Reinsurance is tax exempt in Grand Cayman. Effective December 30, 2022, OFG sold its pension plan administration operations in OPC and thereafter OPC discontinued its operations. Under the PR Code, all companies are treated as separate taxable entities and are not entitled to file consolidated tax returns. OFG and its subsidiaries organized under the laws of Puerto Rico are subject to Puerto Rico regular income tax or the alternative minimum tax (“AMT”) on income earned from all sources. OFG’s subsidiaries organized outside of Puerto Rico are taxed in Puerto Rico only with respect to income from Puerto Rico sources or effectively connected to a Puerto Rico trade or business. The AMT is payable if it exceeds regular income tax. The excess of AMT over regular income tax paid in any one year may be used to offset regular income tax in future years, subject to certain limitations. The components of income tax expense for 2022, 2021, and 2020 were as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Current income tax expense (benefit) $ 16,740 $ 4,836 $ (7,347) Deferred income tax expense 61,126 63,616 27,846 Total income tax expense $ 77,866 $ 68,452 $ 20,499 In relation to the exempt income level, the Bank’s investment securities portfolio and loans portfolio generated net tax-exempt interest income of $26.3 million, $14.4 million and $15.2 million during 2022, 2021 and 2020, respectively. OIB generated exempt income of $4.4 million, $9.5 million and $4.1 million for 2022, 2021, and 2020, respectively. OFG maintained an effective tax rate lower than statutory rate for 2022, mainly related to an increase in US Treasury securities and other exempt investments. OFG’s income tax expense differs from amounts computed by applying the applicable statutory rate to income before income taxes as follows: Year Ended December 31, 2022 2021 2020 Amount Rate Amount Rate Amount Rate (Dollars in thousands) Income tax expense at statutory rates $ 91,539 37.50 % $ 80,476 37.50 % $ 35,567 37.50 % Tax of exempt income, net (11,523) -4.72 % (9,489) -4.42 % (7,272) -7.67 % Disallowed net operating loss carryover (267) -0.11 % (179) (0.08) % 202 0.21 % Change in valuation allowance (502) -0.21 % 803 0.37 % 2,267 2.39 % Unrecognized tax benefits, net 69 0.03 % 70 0.03 % (1,941) -2.05 % Capital gain at preferential rate (787) -0.32 % (3) — % (450) -0.47 % Tax rate difference (ordinary vs capital) (247) -0.10 % (480) -0.22 % (4,218) -4.45 % Bargain purchase gain — — % — — % (2,751) -2.90 % Return to provision adjustments (407) -0.17 % (933) -0.43 % (1,099) -1.16 % Foreign tax credit — — % 187 0.09 % 361 0.38 % Other items, net (9) — % (2,000) -0.94 % (167) -0.16 % Income tax expense $ 77,866 31.90 % $ 68,452 31.90 % $ 20,499 21.62 % OFG’s effective tax rate for 2022 and 2021 was 31.90%. For 2020, the effective tax rate was 21.62%, and it was mainly affected by several items pertaining to the year 2020 that were not expected to reoccur on future years, such as the bargain purchase gain and tax rate differentials. OFG classifies unrecognized tax benefits in other liabilities. These gross unrecognized tax benefits would affect the effective tax rate if realized. At December 31, 2022, the amount of unrecognized tax benefits was $867 thousand (December 31, 2021 - $798 thousand). OFG had accrued $69 thousand at December 31, 2022 (December 31, 2021 - $70 thousand) for the payment of interest and penalties related to unrecognized tax benefits. The following table presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 798 $ 728 $ 2,668 Additions for tax positions of prior years 69 70 50 Reduction for tax positions as a result of lapse of statute of limitations or new information resulting in a change in assessment — — (1,990) Balance at end of year $ 867 $ 798 $ 728 OFG follows a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals of litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The amount of unrecognized tax benefits may increase or decrease in the future due to new or current tax year positions, expiration of open income tax returns, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity. For 2022, there was a net increase in unrecognized tax benefit of $69 thousand. The statute of limitations under the PR Code is four years and the statute of limitations for federal tax purposes is three years, after a tax return is due or filed, whichever is later. OFG is potentially subject to income tax audits in the Commonwealth of Puerto Rico for taxable years 2018 to 2021, until the applicable statute of limitations expires. In addition, OFG’s US subsidiaries are potentially subject to income tax audits by the IRS for taxable years 2019 to 2021. Tax audits by their nature are often complex and can require several years to complete. The determination of the deferred tax expense or benefit is generally based on changes in the carrying amounts of assets and liabilities that generate temporary differences. The carrying value of OFG’s net deferred tax assets assumes that OFG will be able to generate sufficient future taxable income based on estimates and assumptions. If these estimates and related assumptions change in the future, OFG may be required to record valuation allowances against its deferred tax assets resulting in additional income tax expense in the consolidated statements of operations. Significant components of OFG’s deferred tax assets and liabilities as of December 31, 2022, and 2021 were as follows: December 31, 2022 2021 (In thousands) Deferred tax asset: Allowance for credit losses and other reserves $ 57,273 $ 61,009 Scotiabank PR discount 1,453 $ 2,053 Loans and other real estate valuation adjustment 2,313 3,660 Deferred loan charge-offs 72,376 115,661 Net operating loss carry forwards 9,022 8,460 Alternative minimum tax 14,467 15,385 Unrealized net loss included in other comprehensive income — 301 Unrealized net loss on available-for-sale securities 16,422 — Goodwill 10,252 16,961 Acquired portfolio 45,761 53,687 Other assets allowances 1,538 929 Other deferred tax assets 16,570 20,291 Total gross deferred tax asset 247,447 298,397 Less: valuation allowance (9,143) (9,645) Net gross deferred tax assets 238,304 288,752 Deferred tax liability: Acquired loans tax basis (137,195) (137,402) FDIC-assisted Eurobank acquisition, net (5,760) (6,636) Customer deposit and customer relationship intangibles (7,314) (10,324) Building valuation adjustment (6,540) (6,976) Unrealized net gain on available-for-sale securities — (1,572) Unrealized net gain included in other comprehensive income (152) — Servicing asset (16,041) (15,311) Other deferred tax liabilities (9,817) (11,468) Total gross deferred tax liabilities (182,819) (189,689) Net deferred tax asset $ 55,485 $ 99,063 As of December 31, 2022 and 2021, OFG’s net deferred tax asset, net of a valuation allowance of $9.1 million and $9.6 million, respectively, amounted to $55.5 million and $99.1 million, respectively. The decrease in valuation allowance of $502 thousand was mainly related to additional taxable income in OFG’s operations. 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 December 31, 2022. 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. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
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. The 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. Pursuant to the Basel III capital rules, OFG and the Bank are required to maintain the following: • A minimum ratio of Common equity Tier 1 capital (“CET1”) to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” that is composed entirely of CET1 capital (resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7.0%). • A minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5%). • A minimum ratio of total capital (Tier 1 capital plus Tier 2 capital) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (resulting in a minimum total capital ratio of 10.5%). • A minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets. The federal banking regulatory agencies adopted a final rule, pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 that simplifies for banking organizations following non-advanced approaches the regulatory capital treatment for mortgage servicing assets (“MSAs”) and certain deferred tax assets arising from temporary differences (temporary difference DTAs). It increased CET1 capital threshold deductions from 10% to 25% and removed the aggregate 15% CET1 threshold deduction. However, it retained the 250% risk weight applicable to non-deducted amounts of MSAs and temporary difference DTAs. OFG implemented the simplifications to the capital rule on January 1, 2020. On January 1, 2020, OFG adopted CECL with the initial implementation adjustment to Non-PCD loans and off-balance sheet instruments against retained earnings. 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 2021 and 2022 (i.e., a five-year transition period). During the two-year delay, OFG added back to CET1 capital 100 percent of the initial adoption impact of CECL plus 25 percent of the cumulative quarterly changes in the allowance for credit losses (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 will be phased out of CET1 capital over the three-year period. OFG’s and the Bank’s actual capital amounts and ratios as of December 31, 2022 and 2021 are as follows: Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) OFG Bancorp Ratios As of December 31, 2022 Total capital to risk-weighted assets $ 1,132,658 14.89 % $ 798,574 10.50 % $ 760,547 10.00 % Tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 646,465 8.50 % $ 608,437 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 532,383 7.00 % $ 494,355 6.50 % Tier 1 capital to average total assets $ 1,037,385 10.36 % $ 400,445 4.00 % $ 500,557 5.00 % As of December 31, 2021 Total capital to risk-weighted assets $ 1,086,897 15.52 % $ 735,512 10.50 % $ 700,488 10.00 % Tier 1 capital to risk-weighted assets $ 999,284 14.27 % $ 595,414 8.50 % $ 560,390 8.00 % Common equity tier 1 capital to risk-weighted assets $ 964,284 13.77 % $ 490,341 7.00 % $ 455,317 6.50 % Tier 1 capital to average total assets $ 999,284 9.69 % $ 412,359 4.00 % $ 515,449 5.00 % Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) Bank Ratios As of December 31, 2022 Total capital to risk-weighted assets $ 1,028,126 13.61 % $ 793,124 10.50 % $ 755,356 10.00 % Tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 642,053 8.50 % $ 604,285 8.00 % Common equity tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 528,749 7.00 % $ 490,981 6.50 % Tier 1 capital to average total assets $ 933,494 9.42 % $ 396,525 4.00 % $ 495,656 5.00 % As of December 31, 2021 Total capital to risk-weighted assets $ 995,549 14.34 % $ 728,867 10.50 % $ 694,159 10.00 % Tier 1 capital to risk-weighted assets $ 908,717 13.09 % $ 590,035 8.50 % $ 555,327 8.00 % Common equity tier 1 capital to risk-weighted assets $ 908,717 13.09 % $ 485,911 7.00 % $ 451,203 6.50 % Tier 1 capital to average total assets $ 908,717 8.87 % $ 409,855 4.00 % $ 512,319 5.00 % |
EQUITY-BASED COMPENSATION PLAN
EQUITY-BASED COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION PLAN | EQUITY-BASED COMPENSATION PLAN The Omnibus Plan provides for equity-based compensation incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and dividend equivalents, as well as equity-based performance awards. The activity in outstanding options for 2022, 2021, and 2020 is set forth below: Year Ended December 31, 2022 2021 2020 Number Weighted Number Weighted Number Weighted Beginning of year 338,494 $ 15.76 481,444 $ 15.10 634,294 $ 14.60 Options exercised (103,544) 14.34 (140,850) 13.51 (119,500) 12.36 Options forfeited — — (2,100) 16.55 (33,350) 15.42 End of year 234,950 $ 16.38 338,494 $ 15.76 481,444 $ 15.10 The following table summarizes the range of exercise prices and the weighted average remaining contractual life of the options outstanding at December 31, 2022: Outstanding Exercisable Range of Exercise Prices Number of Weighted Weighted Number of Weighted 14.09 to 16.90 139,700 15.66 1.1 139,700 15.66 16.91 to 19.71 95,250 17.44 1.6 95,250 17.44 234,950 $ 16.38 1.3 234,950 $ 16.38 Aggregate Intrinsic Value $ 2,626,986 $ 2,626,986 There were no options granted during 2022, 2021 and 2020. The average fair value of each option granted would have been estimated at the date of the grant using the Black-Scholes option pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no restrictions and are fully transferable and negotiable in a free trading market. Black-Scholes does not consider the employment, transfer or vesting restrictions that are inherent in OFG’s stock options. Use of an option valuation model, as required by GAAP, includes highly subjective assumptions based on long-term predictions, including the expected stock price volatility and average life of each option grant. The following table summarizes the activity in restricted units under the Omnibus Plan for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Restricted Weighted Restricted Weighted Restricted Weighted Beginning of year 511,740 $ 19.35 529,770 $ 15.58 379,150 $ 15.32 Restricted units granted 178,281 27.89 205,440 18.76 257,850 16.82 Restricted units lapsed (277,866) 17.08 (218,188) 13.85 (102,525) 14.74 Restricted units forfeited (3,323) 22.89 (5,282) 19.38 (4,705) 15.93 End of year 408,832 $ 22.27 511,740 $ 19.35 529,770 $ 15.58 The total unrecognized compensation cost related to non-vested restricted units to members of management at December 31, 2022 was $4.8 million and is expected to be recognized over a weighted-average period of 1.7 years. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock and Common Stock During 2021, OFG redeemed all of its outstanding $92.0 million (in the aggregate) Series A, Series B, and Series D preferred stock at a redemption price of $25.00 per share. As a result of such redemptions, OFG no longer has any outstanding preferred stock. At both December 31, 2022 and December 31, 2021, 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 December 31, 2022 and 2021, 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 December 31, 2022 and 2021, the Bank’s legal surplus amounted to $133.9 million and $117.7 million, respectively. During 2022 and 2021, OFG transferred $16.2 million and $14.4 million 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 2022, OFG announced the approval by the Board of Directors of a stock repurchase program to purchase $100 million of its outstanding shares of common stock. The shares of common stock repurchased are held by OFG as treasury shares. During 2022, OFG repurchased 2,351,868 shares for a total of $64.1 million at an average price of $27.26 per share. During 2021, OFG repurchased 2,052,429 shares under the $50.0 million repurchase program approved at that time for a total of $49.9 million, at an average price of $24.29 per share. During 2020, OFG repurchased 175,000 shares under the $70.0 million repurchase program approved at that time for a total of $2.2 million, at an average price of $12.69 per share. At December 31, 2022 the number of shares that may yet be purchased under the $100 million program is estimated at 1,302,242 and was calculated by dividing the remaining balance of $35.9 million by $27.56 (closing price of OFG’s common stock at December 31, 2022). OFG did not repurchase any shares of its common stock during 2022, 2021 and 2020, other than through its publicly announced stock repurchase program. The activity in connection with common shares held in treasury by OFG for 2022, 2021 and 2020 is set forth below: Year Ended December 31, 2022 2021 2020 Shares Dollar Shares Dollar Shares Dollar (In thousands, except shares data) Beginning of year 10,248,882 $ 150,572 8,498,163 $ 102,949 8,486,278 $ 102,339 Common shares used upon lapse of restricted stock units and options (296,891) (3,547) (301,710) (2,249) (163,115) (1,616) Common shares repurchased as part of the stock repurchase programs 2,351,868 64,110 2,052,429 49,872 175,000 2,226 End of year 12,303,859 $ 211,135 10,248,882 $ 150,572 8,498,163 $ 102,949 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated other comprehensive (loss) income, net of income taxes, as of December 31, 2022 and 2021 consisted of: December 31, 2022 2021 (In thousands) Unrealized (loss) gain on securities available-for-sale $ (110,036) $ 7,292 Income tax effect of unrealized loss (gain) on securities available-for-sale 16,373 (1,629) Net unrealized (loss) gain on securities available-for-sale (93,663) 5,663 Unrealized gain (loss) on cash flow hedges 406 (804) Income tax effect of unrealized (gain) loss on cash flow hedges (152) 301 Net unrealized gain (loss) on cash flow hedges 254 (503) Accumulated other comprehensive (loss) income, net of income taxes $ (93,409) $ 5,160 The following table presents changes in accumulated other comprehensive (loss) income by component, net of taxes, for 2022, 2021 and 2020: Year Ended December 31, 2022 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ 5,663 $ (503) $ 5,160 Other comprehensive (loss) income before reclassifications (99,087) 24 (99,063) Amounts reclassified out of accumulated other comprehensive (loss) income (239) 733 494 Other comprehensive (loss) income (99,326) 757 (98,569) Ending balance $ (93,663) $ 254 $ (93,409) Year Ended December 31, 2021 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ 12,092 $ (1,070) $ 11,022 Other comprehensive (loss) income before reclassifications (6,454) (1,074) (7,528) Amounts reclassified out of accumulated other comprehensive income 25 1,641 1,666 Other comprehensive (loss) income (6,429) 567 (5,862) Ending balance $ 5,663 $ (503) $ 5,160 Year Ended December 31, 2020 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (441) $ (567) $ (1,008) Other comprehensive income (loss) before reclassifications 7,803 (2,491) 5,312 Amounts reclassified out of accumulated other comprehensive income 4,730 1,988 6,718 Other comprehensive income (loss) 12,533 (503) 12,030 Ending balance $ 12,092 $ (1,070) $ 11,022 The following table presents reclassifications out of accumulated other comprehensive (loss) income for 2022, 2021 and 2020: Amount reclassified out of accumulated other comprehensive (loss) income Affected Line Item in Year Ended December 31, 2022 2021 2020 (In thousands) Cash flow hedges: Interest-rate contracts $ 733 $ 1,641 $ 1,988 Net interest expense Available-for-sale securities: Gain on sale of investments (247) 19 4,728 Net gain on sale of securities Tax effect from changes in tax rates 8 6 2 Income tax expense $ 494 $ 1,666 $ 6,718 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The calculation of earnings per common share for 2022, 2021 and 2020 is as follows: Year Ended December 31, 2022 2021 2020 (In thousands, except per share data) Net income $ 166,239 $ 146,151 $ 74,327 Less: Dividends on preferred stock Non-convertible preferred stock (Series A, B, and D) — (1,255) (6,512) Income available to common shareholders $ 166,239 $ 144,896 $ 67,815 Average common shares outstanding 48,033 50,956 51,358 Effect of dilutive securities: Average potential common shares-options 403 414 197 Total weighted average common shares outstanding and equivalents 48,436 51,370 51,555 Earnings per common share - basic $ 3.46 $ 2.85 $ 1.32 Earnings per common share - diluted $ 3.44 $ 2.81 $ 1.32 For 2022, 2021 and 2020, weighted-average stock options with an anti-dilutive effect on earnings per share not included in the calculation amounted to 1,279, 3,175 and 7,481, respectively. During 2022, OFG increased its quarterly common stock cash dividend to $0.20 per share from $0.12 per share at December 31, 2021. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES At December 31, 2022 and 2021, the notional amount of the obligations undertaken in issuing the guarantees under standby letters of credit represented a liability of $24.7 million and $25.2 million, respectively. OFG has a liability for residential mortgage loans sold subject to credit recourse pursuant to GNMA’s and FNMA’s residential mortgage loan sales and securitization programs. At December 31, 2022 and 2021, the unpaid principal balance of residential mortgage loans sold subject to credit recourse was $110.9 million and $121.8 million, respectively. The following table shows the changes in OFG’s liability for estimated losses from these credit recourse agreements, included in the consolidated statements of financial condition during 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 294 $ 218 $ 985 Net recoveries (charge-offs/terminations) (147) 76 (767) Balance at end of year $ 147 $ 294 $ 218 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. 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 2022, 2021 and 2020, OFG repurchased $1.5 million, $3.1 million and $481 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. At December 31, 2022, OFG’s liability for estimated credit losses related to loans sold with credit recourse amounted to $147 thousand (December 31, 2021– $294 thousand). 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 which 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 2022, OFG repurchased $24.2 million (December 31, 2021 – $38.9 million) of unpaid principal balance in mortgage loans, excluding mortgage loans subject to such credit recourse provision. At December 31, 2022 and 2021, OFG had a $1.4 million and a $3.4 million liability, respectively, for the estimated credit losses related to these loans. During 2022, 2021 and 2020, OFG recognized $148 thousand in gains, $157 thousand in losses and $658 thousand in gains, respectively, from the repurchase of residential mortgage loans sold subject to credit recourse, and $281 thousand, $4.3 million and $2.2 million, respectively, in losses from the repurchase of residential mortgage loans as a result of breaches of customary representations and warranties. At December 31, 2022, OFG serviced $5.8 billion (December 31, 2021 - $5.7 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 the 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 guarantees 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 December 31, 2022, the outstanding balance of funds advanced by OFG under such mortgage loan servicing agreements was approximately $7.8 million (December 31, 2021 - $12.9 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021 were as follows: December 31, 2022 2021 (In thousands) Commitments to extend credit $ 1,403,118 $ 1,365,273 Commercial letters of credit 1,082 48,196 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 December 31, 2022 and 2021, 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 December 31, 2022 and 2021, is as follows: December 31, 2022 2021 (In thousands) Standby letters of credit and financial guarantees $ 24,749 $ 25,203 Loans sold with recourse 110,891 121,778 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 December 31, 2022 and 2021, the allowance for credit losses for off-balance sheet credit exposures corresponding to commitments to extend credit and standby letters of credit amounted to $734 thousand and $1.0 million, respectively, and is included in other liabilities in the statement of financial condition. At December 31, 2022 and 2021, OFG maintained other non-credit commitments amounting to $21.5 million and $8.9 million, respectively, 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 are table stakes 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 December 31, 2022 and 2021, OFG had commitments for capital expenditures in technology amounting to $8.6 million and $15.4 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 December 31, 2022 and 2021, this accrued liability amounted to $2.4 million and $7.0 million, respectively. OFG continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2022 | |
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 2024; all are operating leases. Operating Lease Cost Year Ended December 31, 2022 2021 2020 Statement of Operations (In thousands) Lease costs $ 10,467 $ 11,417 $ 13,233 Occupancy and equipment Variable lease costs 1,529 1,881 2,133 Occupancy and equipment Short-term lease cost 565 859 800 Occupancy and equipment Lease income (226) (442) (499) Occupancy and equipment Total lease cost $ 12,335 $ 13,715 $ 15,667 Operating Lease Assets and Liabilities December 31, 2022 2021 Statement of Financial Condition Classification (In thousands) Right-of-use assets $ 25,363 $ 28,846 Operating lease right-of-use assets Lease Liabilities $ 27,370 $ 30,498 Operating leases liabilities December 31, 2022 2021 (In thousands) Weighted-average remaining lease term 5.1 years 5.6 years Weighted-average discount rate 6.8 % 6.6 % Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2022 were as follows: Minimum Rent As of December 31, 2022 (In thousands) 2023 $ 9,326 2024 7,134 2025 5,127 2026 3,106 2027 2,290 Thereafter 5,773 Total lease payments $ 32,756 Less imputed interest 5,386 Present value of lease liabilities $ 27,370 OFG, as lessor, leases and subleases real property to lessee tenants under operating leases. As of December 31, 2022, no material lease concessions have been granted to lessees. As of December 31, 2022, OFG, as lessee, has not requested any lease concessions. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS OFG follows the fair value measurement framework under U.S. Generally Accepted Accounting Principles (“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 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. OFG holds one security categorized as other debt that is classified as Level 3. The estimated fair value of this security is determined by using an adjusted third-party model to calculate the present value of projected future cash flows. The assumptions are highly uncertain and include primarily market discount rates and current spread. The assumptions used are drawn from similar securities that are actively traded in the market and have similar risk characteristics. The valuation is performed on a quarterly basis. Derivative instruments The fair value of the interest rate swaps is largely a function of the financial market’s expectations regarding the future direction of interest rates. Accordingly, current market values are not necessarily indicative of the future impact of derivative instruments on earnings. This will depend, for the most part, on the shape of the yield curve, the level of interest rates, as well as the expectations for rates in the future. The fair value of most of these derivative instruments is based on observable market parameters, which include discounting the instruments’ cash flows using the U.S. dollar LIBOR-based discount rates (or its fallback benchmark when applicable), and also applying yield curves that account for the industry sector and the credit rating of the counterparty and/or OFG. Certain other derivative instruments with limited market activity are valued using externally developed models that consider unobservable market parameters. Based on their valuation methodology, derivative instruments are classified as Level 2. 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 is 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: December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 309,133 $ 1,103,237 $ 406 $ 1,412,776 Trading securities — 9 — 9 Money market investments 4,161 — — 4,161 Derivative assets — 406 — 406 Servicing assets — — 50,921 50,921 $ 313,294 $ 1,103,652 $ 51,327 $ 1,468,273 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 8,805 $ 8,805 Foreclosed real estate — — 11,214 11,214 Other repossessed assets — — 4,617 4,617 Mortgage loans held for sale — — 19,499 19,499 Other loans held for sale $ — $ — $ 21,088 21,088 $ — $ — $ 65,223 $ 65,223 December 31, 2021 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 10,825 $ 498,358 $ 1,530 $ 510,713 Trading securities — 20 — 20 Money market investments 8,952 — — 8,952 Derivative assets — 1 — 1 Servicing assets — — 48,973 48,973 Derivative liabilities — (804) — (804) $ 19,777 $ 497,575 $ 50,503 $ 567,855 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 10,233 $ 10,233 Foreclosed real estate — — 15,039 15,039 Other repossessed assets — — 1,945 1,945 Mortgage loans held for sale — — 51,096 51,096 Other loans held for sale $ — $ — $ 31,566 31,566 $ — $ — $ 109,879 $ 109,879 The fair value information included in the tables above for non-recurring fair value measurements is not as of year-end. Instead, it is as of the date that the fair value measurement was recorded during 2022 and 2021, and 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 2022, 2021 and 2020: Level 3 Instruments Only Year Ended December 31, 2022 2021 2020 Other debt securities available for sale Servicing Assets Total Other debt securities available for sale Servicing Assets Total Servicing Assets (In thousands) Balance at beginning year $ 1,530 $ 48,973 $ 50,503 $ — $ 47,295 $ 47,295 $ 50,779 New instruments acquired 376 3,998 4,374 — 6,089 $ 6,089 2,394 Transfer from Level 2 — — — 1,500 — $ 1,500 — Principal repayments and amortization — (5,312) (5,312) — (6,738) $ (6,738) (4,067) Instrument converted to equity security (1,581) — (1,581) — — — — Gains included in earnings — 3,262 3,262 — 2,327 $ 2,327 (1,811) Gains included in other comprehensive income 81 — 81 30 — $ 30 — Balance at end of year $ 406 $ 50,921 $ 51,327 $ 1,530 $ 48,973 $ 50,503 $ 47,295 During 2021, OFG transferred from level 2 to level 3 a $1.5 million convertible note classified as other debt securities. Subsequently, during 2022, this security was converted to an equity security. There were no transfers in and/or out of Level 3 for financial instruments measured at fair value on a recurring basis during 2022, and 2020. Servicing assets gains (losses) included in earnings during 2022, 2021 and 2020 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 10 – Servicing Assets. During 2022, 2021 and 2020, there were purchases and sales of assets and liabilities measured at fair value on a recurring basis. The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at December 31, 2022 and 2021: December 31, 2022 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Other debt securities available-for-sale $ 406 Cash flow valuation Credit Rating Baa1 - Baa3 Baa2 Probability of Default Rate 0.15% - 2.12% 0.15 % Recovery Rate 34.73 % 34.73 % Servicing assets $ 50,921 Cash flow valuation Constant prepayment rate 3.43% - 21.20% 5.66 % Discount rate 10.00% - 15.50% 11.45 % Collateral dependent loans $ 8,805 Fair value of property Appraised value less disposition costs 10.20% - 51.20% 17.11 % Foreclosed real estate $ 11,214 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 11.81 % Other repossessed assets $ 4,617 Fair value of property Estimated net realizable value less disposition costs 22.00% - 80.00% 58.49 % Mortgage loans held for sale $ 19,499 Fair value of property Estimated net realizable value 83.25% - 102.43% 71.86 % Other loans held for sale $ 21,088 Bids or sales contract prices Estimated market value 100.00% - 103.20% 74.65 % December 31, 2021 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Other debt securities available-for-sale $ 1,530 Cash flow valuation Credit Rating Baa1 - Baa3 Baa2 Probability of Default Rate 0.16% - 2.28% 0.35 % Recovery Rate 33.08% 33.08 % Servicing assets $ 48,973 Cash flow valuation Constant prepayment rate 3.90% - 24.48% 6.17 % Discount rate 10.00% - 15.50% 11.47 % Collateral dependent loans $ 10,233 Fair value of property Appraised value less disposition costs 10.20% - 30.20% 20.20 % Foreclosed real estate $ 15,039 Fair value of property Appraised value less disposition costs 10.20% - 30.20% 12.54 % Other repossessed assets $ 1,945 Fair value of property Estimated net realizable value less disposition costs 39.00% - 80.00% 60.54 % Mortgage loans held for sale $ 51,096 Fair value of property Estimated net realizable value 98.43% - 106.00% 124.41% Other loans held for sale $ 31,566 Bids or sales contract prices Estimated market value 100.00% - 103.20% 42.54% Information about Sensitivity to Changes in Significant Unobservable Inputs Other debt security available for sale – The significant unobservable inputs used in the fair value measurement of one of OFG’s other debt securities is a DCF methodology. DCF is a valuation method that uses the concept of the time value of money. The methodology use the future cash flows discounted through a yield to obtain a net present value. Assumptions applied in the model are obtained from Moody’s Default Trends. 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 are 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 December 31, 2022 and 2021 was as follows: December 31, 2022 2021 Fair Carrying Fair Carrying (In thousands) Financial Assets: Level 1 Cash and cash equivalents $ 550,307 $ 550,307 $ 2,023,475 $ 2,023,475 Restricted cash $ 157 $ 157 $ 175 $ 175 Investment securities available-for-sale $ 309,133 $ 309,133 $ 10,825 $ 10,825 Level 2 Financial Assets: Trading securities $ 9 $ 9 $ 20 $ 20 Investment securities available-for-sale $ 1,103,237 $ 1,103,237 $ 498,358 $ 498,358 Investment securities held-to-maturity $ 469,186 $ 535,070 $ 363,653 $ 367,507 Federal Home Loan Bank (FHLB) stock $ 6,005 $ 6,005 $ 5,966 $ 5,966 Equity securities $ 17,662 $ 17,662 $ 11,612 $ 11,612 Derivative assets $ 406 $ 406 $ 1 $ 1 Financial Liabilities: Derivative liabilities $ — $ — $ 804 $ 804 Level 3 Financial Assets: Investment securities available for sale $ 406 $ 406 $ 1,530 $ 1,530 Total loans (including loans held-for-sale) $ 6,467,878 $ 6,723,236 $ 6,197,347 $ 6,329,311 Accrued interest receivable $ 62,402 $ 62,402 $ 56,560 $ 56,560 Servicing assets $ 50,921 $ 50,921 $ 48,973 $ 48,973 Accounts receivable and other assets $ 61,014 $ 61,014 $ 88,756 $ 88,756 Financial Liabilities: Deposits $ 8,556,300 $ 8,568,364 $ 8,614,073 $ 8,603,118 Advances from FHLB $ 26,716 $ 26,716 $ 28,480 $ 28,488 Other borrowings $ 318 $ 318 $ — $ — Subordinated capital notes $ — $ — $ 36,084 $ 36,083 Accrued expenses and other liabilities $ 124,999 $ 124,999 $ 96,240 $ 96,240 The following methods and assumptions were used to estimate the fair values of significant financial instruments at December 31, 2022 and 2021: • Cash and cash equivalents (including money market investments and time deposits with other banks), restricted cash, 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. Equity securities do not have readily available fair values and are measured at cost, less any impairment. The estimated fair value of the convertible note in other debt securities available for sale is determined by using an adjusted third-party cash flow valuation model to calculate the present value of projected future cash flows. The assumptions used which are highly uncertain and require a high degree of judgment, include primarily market discount rates, current spreads, duration, leverage, default, and loss rates. The assumptions used are drawn from a wide array of data sources, including the performance of the collateral underlying each deal. The valuation, which is obtained at least on a quarterly basis, is analyzed and its assumptions are evaluated and incorporated in either an internal-based valuation model, when deemed necessary, or compared to counterparties’ prices and agreed by management. • 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 values of the derivative instruments, which include interest rate swaps and forward-settlement swaps, are based on the net discounted value of the contractual projected cash flows of both the pay-fixed receive-variable legs of the contracts. The projected cash flows are based on the forward yield curve and discounted using current estimated market rates. • 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 type, such as mortgage, commercial, consumer, auto loans and leases. Each loan segment is further segmented into fixed and adjustable interest rates. The fair value is calculated by discounting contractual cash flows, adjusted for prepayment estimates (voluntary and involuntary), if any, using estimated current market discount rates that reflect the credit and interest rate risk inherent in the loan. • 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, which include advances from FHLB and subordinated capital notes 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. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
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 loans and leases, 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, OFG Reinsurance and OPC. The core operations of this segment are financial planning, money management and investment banking, securities brokerage services, investment advisory services, insurance, corporate and individual trust and retirement services, as well as retirement plan administration services up to December 30, 2022 on which date OPC sold its retirement plan administration business. The Treasury segment encompasses all of OFG’s asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, 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 2022, 2021 and 2020: Year Ended December 31, 2022 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 465,177 $ 21 $ 56,955 $ 522,153 $ (6,580) $ 515,573 Interest expense (31,926) — (8,147) (40,073) 6,580 (33,493) Net interest income 433,251 21 48,808 482,080 — 482,080 Provision for credit losses 24,111 — 8 24,119 — 24,119 Non-interest income 98,407 33,481 (198) 131,690 — 131,690 Non-interest expenses (323,125) (19,206) (3,215) (345,546) — (345,546) Intersegment revenue 2,187 — — 2,187 (2,187) — Intersegment expenses — (1,497) (690) (2,187) 2,187 — Income before income taxes $ 186,609 $ 12,799 $ 44,697 $ 244,105 $ — $ 244,105 Income tax expense 77,731 97 38 77,866 — 77,866 Net income $ 108,878 $ 12,702 $ 44,659 $ 166,239 $ — $ 166,239 Total assets $ 8,347,767 $ 23,085 $ 2,432,549 $ 10,803,401 $ (984,621) $ 9,818,780 Eliminations include interest income and expense for a borrowing by Oriental Overseas, which is included in the Treasury Segment with its corresponding interest expense, to fund its operations, from the Bank, which is included in the Banking Segment with its corresponding interest income, with an unpaid principal balance of $470.2 million and $262.9 million at December 31, 2022 and 2021, respectively, and is eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from previous year was mainly as a result of FRB interest rate increases and higher average borrowing balance. At December 31, 2020 the borrowing balance was zero. Year Ended December 31, 2021 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 432,375 $ 30 $ 17,072 $ 449,477 $ (278) $ 449,199 Interest expense (38,711) — (3,396) (42,107) 278 (41,829) Net interest income 393,664 30 13,676 407,370 — 407,370 Provision for (recapture of) credit losses 1,342 — (1,121) 221 — 221 Non-interest income 98,950 35,625 (1,365) 133,210 — 133,210 Non-interest expenses (300,568) (20,941) (4,247) (325,756) — (325,756) Intersegment revenue 2,355 — — 2,355 (2,355) — Intersegment expenses — (1,269) (1,086) (2,355) 2,355 — Income before income taxes $ 193,059 $ 13,445 $ 8,099 $ 214,603 $ — $ 214,603 Income tax expense 68,409 — 43 68,452 — 68,452 Net income $ 124,650 $ 13,445 $ 8,056 $ 146,151 $ — $ 146,151 Total assets $ 8,041,725 $ 32,082 $ 2,894,612 $ 10,968,419 $ (1,068,699) $ 9,899,720 Year Ended December 31, 2020 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 462,493 $ 59 $ 10,795 $ 473,347 $ — $ 473,347 Interest expense (57,811) — (7,104) (64,915) — (64,915) Net interest income 404,682 59 3,691 408,432 — 408,432 Provision for credit losses 92,237 — 435 92,672 — 92,672 Non-interest income 87,810 32,043 4,499 124,352 — 124,352 Non-interest expenses (320,997) (20,240) (4,049) (345,286) — (345,286) Intersegment revenue 2,443 — — 2,443 (2,443) — Intersegment expenses — (1,164) (1,279) (2,443) 2,443 — Income before income taxes $ 81,701 $ 10,698 $ 2,427 $ 94,826 $ — $ 94,826 Income tax expense 15,939 4,506 54 20,499 — 20,499 Net income $ 65,762 $ 6,192 $ 2,373 $ 74,327 $ — $ 74,327 Total assets $ 8,478,326 $ 32,893 $ 2,436,029 $ 10,947,248 $ (1,121,237) $ 9,826,011 |
BANKING AND FINANCIAL SERVICE R
BANKING AND FINANCIAL SERVICE REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
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 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Banking service revenues: Checking accounts fees $ 8,933 $ 8,593 $ 8,577 Savings accounts fees 1,265 1,141 1,451 Electronic banking fees 54,639 55,968 47,542 Credit life commissions 724 469 254 Branch service commissions 1,456 1,467 1,462 Servicing and other loan fees 3,222 3,256 2,485 International fees 902 794 623 Miscellaneous income 20 18 185 Total banking service revenues 71,161 71,706 62,579 Wealth management revenue: Insurance income 15,084 14,647 13,618 Broker fees 6,793 8,213 6,828 Trust fees 10,013 11,303 10,446 Retirement plan and administration fees 745 881 897 Total wealth management revenue 32,635 35,044 31,789 Mortgage banking activities: Net servicing fees 18,258 16,818 12,120 Net gains on sale of mortgage loans and valuation 3,786 10,119 4,437 Loss on repurchased loans and other (115) (4,429) (53) Total mortgage banking activities 21,929 22,508 16,504 Total banking and financial service revenues $ 125,725 $ 129,258 $ 110,872 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 Service charges on checking and saving accounts is recognized as consumer periodic maintenance revenue once the service is rendered, while overdraft and late charges revenue are recorded after the contracted service has been provided. 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. 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 and sale of annuities are recorded once the sale has been completed. Brokers 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 service provider who provides 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, an IRA trust, and retirement plans, which include investment management, payment of distributions, if any, safekeeping, custodial services of plan assets, servicing of Trust officers, on-going due diligence of the Trust, recordkeeping of transactions, and investment advisory services provided to a registered investment company. 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 collected on a monthly basis once the administrative service has been completed. Monthly fee does not include future services. Retirement plan and administration fees are revenues related to the payment received from the clients of OPC for assistance with the planning, design and administration of retirement plans, acting as third-party administrator for such plans, and daily record keeping services of retirement plans. Fees are collected once the stand-alone transaction was completed at trade date. Fees do not cover future services, as a result there is no need to allocate the amount received to any other service. Mortgage Banking Activities Mortgage banking activities as servicing fees, gain on sale of mortgage loans and valuation, and other are out of the scope of ASC 606. |
OFG BANCORP (HOLDING COMPANY ON
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION | OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATIONAs a bank holding company subject to the regulations and supervisory guidance of the Federal Reserve Board, OFG Bancorp generally should inform the Federal Reserve Board and eliminate, defer or significantly reduce its dividends if: (i) its net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (ii) its prospective rate of earnings retention is not consistent with its capital needs and overall current and prospective financial condition; or (iii) it will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. The payment of dividends by the Bank to OFG Bancorp may also be affected by other regulatory requirements and policies, such as the maintenance of certain regulatory capital levels. During 2022, 2021, and 2020, the Bank paid $140.0 million, $197.0 million and $26.1 million, respectively, in dividends to OFG Bancorp. During 2022, 2021, and 2020, Oriental Insurance paid $9.5 million, $11.0 million, and $9.5 million, respectively, in dividends to OFG Bancorp. OFG BANCORP CONDENSED STATEMENTS OF FINANCIAL POSITION INFORMATION (Holding Company Only) The following condensed financial information presents the financial position of the holding company only as of December 31, 2022 and 2021, and the results of its operations and its cash flows for 2022, 2021 and 2020: December 31, 2022 2021 (In thousands) ASSETS Cash and cash equivalents $ 82,045 $ 46,484 Investment in bank subsidiary, equity method 938,306 1,011,147 Investment in nonbank subsidiaries, equity method 32,525 35,915 Advance to investment dealers 6 17,213 Deferred tax asset, net 924 2,627 Due from bank subsidiary, net 44 50 Other assets 356 582 Total assets $ 1,054,206 $ 1,114,018 LIABILITIES AND STOCKHOLDERS’ EQUITY Dividend payable 9,513 6,010 Accrued expenses and other liabilities 2,287 2,765 Subordinated capital notes — 36,083 Total liabilities 11,800 44,858 Stockholders’ equity 1,042,406 1,069,160 Total liabilities and stockholders’ equity $ 1,054,206 $ 1,114,018 OFG BANCORP CONDENSED STATEMENTS OF OPERATIONS INFORMATION (Holding Company Only) Year Ended December 31, 2022 2021 2020 (In thousands) Income: Interest income $ 977 $ 55 $ 86 Investment trading activities, net and other 6,022 6,765 6,583 Total income 6,999 6,820 6,669 Expenses: Interest expense 521 1,174 1,394 Operating expenses 7,992 8,397 7,483 Total expenses 8,513 9,571 8,877 Loss before income taxes (1,514) (2,751) (2,208) Income tax expense (benefit) 2,782 1,813 (1,363) Loss before earnings of subsidiaries (4,296) (4,564) (845) Equity in earnings from: Bank subsidiary 162,236 144,089 74,899 Nonbank subsidiaries 8,299 6,626 273 Net income $ 166,239 $ 146,151 $ 74,327 OFG BANCORP CONDENSED STATEMENTS OF COMPREHENSIVE INCOME INFORMATION (Holding Company Only) Year Ended December 31, 2022 2021 2020 (In thousands) Net income $ 166,239 $ 146,151 $ 74,327 Other comprehensive (loss) income before tax: Other comprehensive (loss) income from bank subsidiary (98,569) (5,862) 12,030 Other comprehensive (loss) income before taxes (98,569) (5,862) 12,030 Income tax effect — — — Other comprehensive (loss) income after taxes (98,569) (5,862) 12,030 Comprehensive income $ 67,670 $ 140,289 $ 86,357 OFG BANCORP CONDENSED STATEMENTS OF CASH FLOWS INFORMATION (Holding Company Only) Year Ended December 31, 2022 2021 2020 (In thousands) Cash flows from operating activities: Net income $ 166,239 $ 146,151 $ 74,327 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings from banking subsidiary (162,236) (144,089) (74,899) Equity in earnings from nonbanking subsidiaries (8,299) (6,626) (273) Gain on early extinguishment of debt (42) — — Stock-based compensation 652 940 2,170 Deferred income tax, net 1,703 10 (2,637) Net (increase) decrease in other assets 18,829 (13,471) 12 Net increase (decrease) in accrued expenses and other liabilities (488) 950 (486) Dividends from banking subsidiary 140,000 197,000 26,100 Dividends from non-banking subsidiary 9,500 11,000 9,531 Net cash provided by operating activities 165,858 191,865 33,845 Cash flows from investing activities: Net increase in due from bank subsidiary, net — — (1,984) Proceeds from sales of premises and equipment — 240 282 Capital contribution to banking subsidiary — — (1,703) Capital contribution to non-banking subsidiary — (9,300) (9,013) Additions to premises and equipment (233) (288) (295) Net cash used in investing activities (233) (9,348) (12,713) Cash flows from financing activities: Subordinated capital notes (34,958) — — Exercise of stock options and restricted units lapsed, net (906) 283 583 Purchase of treasury stock (64,110) (49,872) (2,226) Redemption of preferred stock — (92,000) — Dividends paid (30,090) (20,973) (20,892) Net cash used in financing activities (130,064) (162,562) (22,535) Net change in cash and cash equivalents 35,561 19,955 (1,403) Cash and cash equivalents at beginning of year 46,484 26,529 27,932 Cash and cash equivalents at end of year $ 82,045 $ 46,484 $ 26,529 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn January 25, 2023, as part of OFG's capital actions for 2023, the Board of Directors approved the increase of its regular quarterly cash dividend by 10%, to $0.22 per common share from $0.20 per share, beginning the quarter ending March 31, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | 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”), a retirement plan administrator, Oriental Pension Consultants, Inc. (“OPC”), 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 and mortgage lending, auto leasing and lending, financial planning, insurance sales, money management, investment banking and securities brokerage services, as well as corporate and individual trust services. Effective December 31, 2022, OFG sold its retirement plan administration business which was operated under the OPC subsidiary and OPC thereafter discontinued its operations. Annual results include these operations until the date of sale. OFG conducts its business through its main office in San Juan, Puerto Rico, forty-one branches in Puerto Rico and two branches in the U.S. Virgin Islands (the “USVI”). OFG has three subsidiaries with operations in Puerto Rico: the Bank, Oriental Financial Services and Oriental Insurance; two subsidiaries in the United States, OPC and OFG Ventures; and a subsidiary in the Cayman Islands, OFG Reinsurance. OFG is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) under the U.S. Bank Holding Company Act of 1956, as amended, and the Dodd-Frank Act. The Bank is subject to the supervision, examination and regulation of the Office of the Commissioner of Financial Institutions of Puerto Rico (“OCFI”) and the Federal Deposit Insurance Corporation (the “FDIC”). The Bank offers banking services such as commercial, consumer and mortgage lending, auto leasing and lending, savings and time deposit products, financial planning, and corporate and individual trust services, and capitalizes on its commercial banking network to provide mortgage lending products to its clients. The Bank has an operating subsidiary, OFG USA LLC, a wholly-owned subsidiary of the Bank, which is a commercial lender organized in Delaware. 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. The Bank’s USVI operations are also subject to the supervision, examination and regulation of the USVI Banking Board. Oriental Financial Services is registered as a securities broker-dealer and as an investment adviser, and is subject to the supervision, examination and regulation of the Financial Industry Regulatory Authority (“FINRA”), the U.S. Securities and Exchange Commission (the “SEC”), and the OCFI. Oriental Financial Services is also a member of the Securities Investor Protection Corporation. Oriental Insurance is an insurance agency and is subject to the supervision, examination and regulation of the Office of the Commissioner of Insurance of Puerto Rico. OFG Reinsurance is subject to regulation by the Cayman Islands Monetary Authority (the “CIMA”). OFG’s mortgage banking activities are conducted through a division of the Bank. The mortgage banking activities include the origination of mortgage loans for the Bank’s own portfolio, the sale of loans directly in the secondary market or the securitization of conforming loans into mortgage-backed securities, and the purchase or assumption of the right to service loans originated by others. The Bank originates Federal Housing Administration (“FHA”) insured and Veterans Administration (“VA”) guaranteed mortgages that are primarily securitized for issuance of Government National Mortgage Association (“GNMA”) mortgage-backed securities which can be resold to individual or institutional investors in the secondary market. Conventional loans that meet the underwriting requirements for sale or exchange under certain Federal National Mortgage Association (“FNMA”) or Federal Home Loan Mortgage Corporation (“FHLMC”) programs are referred to as conforming mortgage loans and are also securitized for issuance of FNMA or FHLMC mortgage-backed securities. The Bank is an approved seller of FNMA mortgage loans for issuance of FNMA mortgage-backed securities. The Bank is also an approved issuer of GNMA mortgage-backed securities. The Bank is the master servicer of the GNMA, FNMA and FHLMC pools that it issues and of its mortgage loan portfolio and up to December 31, 2022 had a subservicing arrangement with a third party for a portion of its acquired loan portfolio. This subservicing arrangement will conclude on May 1, 2023. OFG services most of its mortgage loan portfolio. On December 31, 2019, OFG purchased from the The Bank of Nova Scotia (“BNS”) all outstanding common stock of Scotiabank de Puerto Rico (“SBPR”). Immediately following the closing, OFG merged SBPR with and into the Bank, with the Bank continuing as the surviving entity. As part of this transaction, the Bank also acquired the USVI banking operations of BNS through an acquisition of certain assets (including loans, ATMs and physical branch locations) and an assumption of certain liabilities (including deposits). In addition, OFG acquired certain loans and assumed certain liabilities, from BNS’s Puerto Rico branch. This transaction is referred to as the “Scotiabank Acquisition.” |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of OFG Bancorp and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Statutory Trust II was exempt from the consolidation requirements of GAAP. |
Business Combinations | Business CombinationsOFG accounted for the Scotiabank Acquisition under the accounting guidance of ASC Topic No. 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets and liabilities acquired were initially recorded at fair value. No allowance for credit losses related to the acquired loans was recorded on the acquisition date. Loans acquired were recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820. These fair value estimates associated with the loans included estimates related to expected prepayments and the amount and timing of expected principal, interest and other cash flows. The valuation of these loans required management to make subjective judgments concerning estimates about how the acquired loans would perform in the future using valuation methods, including discounted cash flow analyses and other factors as market-based and industry data related to expected changes in interest rates, assumptions related to probability and severity of credit losses, estimated timing of credit losses including the timing of foreclosure and liquidation of collateral, expected prepayment rates, and specific industry and market conditions. Refer to Note 2 – Business Combination for further discussion of the Scotiabank Acquisition. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate mainly to the determination of the allowance for credit losses, the valuation of securities, the determination of income taxes, impairment of securities, and goodwill valuation and impairment assessment. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is calculated by dividing income available to common shareholders (net income reduced by dividends on preferred stock) by the weighted average of outstanding common shares. Diluted earnings per share is similar to the computation of basic earnings per share except that the weighted average of common shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares underlying stock options and restricted units had been issued, assuming that proceeds from exercise are used to repurchase shares in the market (treasury stock method). Any stock splits and dividends are retroactively recognized in all periods presented in the consolidated financial statements. |
Cash Equivalents | Cash Equivalents OFG considers as cash equivalents all money market instruments that are not pledged and that have maturities of three months or less. |
Investment Securities | Investment Securities OFG classifies its investments in debt and equity securities into one of four categories: Held-to-maturity - Securities that management has the intent and ability to hold to maturity. These securities are carried at amortized cost. Since the adoption of current expected credit losses (“CECL”) on January 1, 2020, an allowance for credit losses is established for the expected credit losses over the remaining term of debt securities held to maturity. OFG’s portfolio of held to maturity securities is comprised of US Treasury notes and obligations from the U.S. Government. These securities have an explicit or implicit guarantee from the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, OFG applies a zero-credit loss assumption and no ACL for these securities has been established. OFG monitors its securities portfolio composition and credit performance on a quarterly basis to determine if any allowance is considered necessary. Available for sale - Securities to be held for indefinite periods of time. These securities are carried at fair value. Declines in fair value below the securities’ amortized cost which are not related to estimated credit losses are recorded through other comprehensive income or loss, net of taxes. If OFG intends to sell or believes it is more likely than not that it will be required to sell the debt security, it is written down to fair value through earnings. Since the adoption of CECL on January 1, 2020, credit losses relating to available-for-sale debt securities are recorded through an allowance for credit losses (“ACL”), which are limited to the difference between the amortized cost and the fair value of the asset. The ACL is established for the expected credit losses over the remaining term of debt security. OFG’s portfolio of available for sale securities is comprised mainly of U.S. Treasury notes and obligations from the U.S. Government. These securities have an explicit or implicit guarantee from the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, OFG applies a zero-credit loss assumption and no ACL for these securities has been established. OFG monitors its securities portfolio composition and credit performance on a quarterly basis to determine if any allowance is considered necessary. Debt securities available-for-sale are written-off when a portion or the entire amount is deemed uncollectible, based on the information considered to develop expected credit losses through the life of the asset. The specific identification method is used to determine realized gains and losses on debt securities available for sale, which are included in net gain (loss) on sale of securities in the Consolidated Statements of Operations. Trading - Securities held for resale in anticipation of short-term market movements. These securities are carried at fair value, with changes in unrealized holding gains and losses included in income. Management determines the appropriate classification of securities at the time of purchase. Equity securities - Equity securities do not have readily available fair values and are measured at cost, less any impairment. Impairment is reviewed on a quarterly basis through a qualitative assessment. Stock that is owned by OFG to comply with regulatory requirements, such as Federal Home Loan Bank (“FHLB”) stock, is included in this category, and their realizable value equals their cost. Unrealized and realized gains and losses and any impairment on equity securities are included in net gain (loss) in the Consolidated Statements of Operations. Dividend income from investments in equity securities is included in interest income in the Consolidated Statements of Operations. Premiums and discounts are amortized to interest income over the life of the related securities using the interest method. Net realized gains or losses on sales of investment securities and unrealized gains and losses valuation adjustments considered other than temporary, if any, on securities classified as either available-for-sale or held-to-maturity are reported separately in the statements of operations. Purchases and sales of securities are recorded at trade date. The cost of securities sold is determined by the specific identification method. |
Financial Instruments | Financial Instruments Certain financial instruments, including derivatives, trading securities and investment securities available-for-sale, are recorded at fair value and unrealized gains and losses are recorded in other comprehensive (loss) income or as part of non-interest income, as appropriate. Fair values are based on listed market prices, if available. If listed market prices are not available, fair value is determined based on other relevant factors, including price quotations for similar instruments. The fair values of certain derivative contracts are derived from pricing models that consider current market and contractual prices for the underlying financial instruments as the well as time value and yield curve or volatility factors underlying the positions. OFG determines the fair value of its financial instruments based on the fair value measurement framework, which establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 — Level 1 assets and liabilities include equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include (i) mortgage-backed securities for which the fair value is estimated based on valuations obtained from third-party pricing services for identical or comparable assets, (ii) debt securities with quoted prices that are traded less frequently than exchange-traded instruments and (iii) derivative contracts and financial liabilities whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models for which the determination of fair value requires significant management judgment or estimation. OFG’s policy is to recognize any transfer into or out of the Levels referred to above at the date of the event or change in circumstances that caused the transfer. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities OFG uses financial derivatives, as interest rate swaps and caps, to both mitigate exposure to market (primarily interest rate) and credit risks inherent in its business activities, as well as to facilitate customer risk management activities. OFG manages these risks as part of its asset and liability management process and through credit policies and procedures. OFG recognizes all derivative instruments at fair value as either other assets or derivative liabilities on the consolidated statement of financial condition and the related cash flows in the operating activities section of the consolidated statement of cash flows. Adjustments for counterparty credit risk are included in the determination of fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a cash flow or net investment hedging relationship. For all other derivatives, changes in fair value are recognized in earnings. OFG utilizes a net presentation for derivative instruments on the consolidated statement of financial condition taking into consideration the effects of legally enforceable master netting agreements. Cash collateral exchanged with counterparties is also netted against the applicable derivative exposures by offsetting obligations to return, or general rights to reclaim, cash collateral against the fair values of the net derivatives being collateralized. For those derivative instruments that are designated and qualify as accounting hedges, OFG designates the hedging instrument, based on the exposure being hedged, as a cash flow hedge. OFG formally documents the relationship between the hedging instruments and hedged items, as well as the risk management objective and strategy, before undertaking an accounting hedge. To qualify for hedge accounting, the derivatives and related hedged items must be designated as a hedge at inception of the hedge relationship. In addition, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. For accounting hedge relationships, OFG formally assesses, both at the inception of the hedge and on an ongoing basis, if the derivatives are highly effective in offsetting designated changes in the fair value or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective, hedge accounting is discontinued. OFG assesses effectiveness using statistical regression analysis. Where the critical terms of the derivative and hedged item match, effectiveness may be assessed qualitatively. For derivatives designated as cash flow hedges (hedging the exposure to variability in expected future cash flows), the gain or loss on derivatives is reported as a component of accumulated other comprehensive (loss) income and subsequently reclassified to income in the same period or periods during which the hedged cash flows affect earnings and recorded in the same income statement line item as the hedged cash flows. OFG discontinues hedge accounting when it is determined that the derivative no longer qualifies as an effective hedge; the derivative expires or is sold, terminated or exercised; or the derivative is de-designated as a cash flow hedge. |
Mortgage Banking Activities and Mortgage Loans Held-For-Sale | Mortgage Banking Activities and Mortgage Loans Held-For-Sale The residential mortgage loans reported as held-for-sale are stated at the lower of amortized cost or fair value, cost being determined on the outstanding loan balance less unearned income, and fair value determined in the aggregate. The amount for which amortized cost exceeds fair value is recognized through a valuation allowance by a charge to income in the period in which the change occurs. Realized gains or losses on these loans are determined using the specific identification method. Loans held-for-sale include all conforming mortgage loans originated and purchased, which from time to time Oriental sells to other financial institutions or securitizes conforming mortgage loans into GNMA, FNMA and FHLMC pass-through certificates . |
Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities | Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities OFG recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. OFG is not engaged in sales of mortgage loans and mortgage-backed securities subject to recourse provisions except for those provisions that allow for the repurchase of loans as a result of a breach of certain representations and warranties other than those related to the credit quality of the loans included in the sale transactions. The transfer of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset in which OFG surrenders control over the assets is accounted for as a sale if all of the following conditions set forth in Accounting Standards Codification (“ASC”) Topic 860 are met: (i) the assets must be isolated from creditors of the transferor, (ii) the transferee must obtain the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the transferor cannot maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. When OFG transfers financial assets and the transfer fails any one of these criteria, OFG is prevented from derecognizing the transferred financial assets and the transaction is accounted for as a secured borrowing. For transfers of financial assets that satisfy the conditions to be accounted for as sales, OFG derecognizes all assets sold; recognizes all assets obtained and liabilities incurred in consideration as proceeds of the sale, including servicing assets and servicing liabilities, if applicable; initially measures at fair value assets obtained and liabilities incurred in a sale; and recognizes in earnings any gain or loss on the sale. The guidance on transfer of financial assets requires a true sale analysis of the treatment of the transfer under state law as if OFG was a debtor under the bankruptcy code. A true sale legal analysis includes several legally relevant factors, such as the intent of the parties, the nature and level of recourse to the transferor, and the nature of retained interests in the loans sold. The analytical conclusion as to a true sale is never absolute and unconditional, and contains qualifications based on the inherent equitable powers of a bankruptcy court, as well as any unsettled matters of state law or common law. Once the legal isolation test has been met, other factors concerning the nature and extent of the transferor’s control over the transferred assets are taken into account in order to determine whether derecognition of assets is warranted. When OFG sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. Conforming conventional mortgage loans are combined into pools which are exchanged for FNMA and GNMA mortgage-backed securities, which are generally sold to private investors, or sold directly to FNMA or other private investors for cash. To the extent the loans do not meet the specified characteristics, investors are generally entitled to require OFG to repurchase such loans or indemnify the investor against losses if the assets do not meet certain guidelines. GNMA programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which OFG provides servicing. At OFG’s option and without GNMA’s prior authorization, OFG may repurchase such delinquent loans for an amount equal to 100% of the loan’s remaining principal balance. This buy-back option is considered a conditional option until the delinquency criteria is met, at which time the option becomes unconditional. When the loans backing a GNMA security are initially securitized, OFG treats the transaction as a sale for accounting purposes because the conditional nature of the buy-back option means that OFG does not maintain effective control over the loans and, therefore, these are derecognized from the statement of financial condition. When individual loans later meet GNMA’s specified delinquency criteria and are eligible for repurchase, OFG is deemed to have regained effective control over these loans, and these must be brought back into OFG’s books as assets, regardless of whether OFG intends to exercise the buy-back option. Quality review procedures are performed by OFG as required under the government agency programs to ensure that asset guideline qualifications are met. OFG has not recorded any specific contingent liability in the consolidated financial statements for these customary representation and warranties related to loans sold by OFG, and management believes that, based on historical data, the probability of payments and expected losses under these representation and warranty arrangements is not significant. OFG has liability for residential mortgage loans sold subject to credit recourse, principally loans associated with FNMA residential mortgage loan sales and securitization programs. In the event of any customer default, 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 in the event of nonperformance by the borrowers is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. In the event of nonperformance by the borrower, OFG has rights to the underlying collateral securing the mortgage loan. OFG suffers ultimate losses on these loans when the proceeds from a foreclosure sale of the property underlying a defaulted mortgage loan are less than the outstanding principal balance of the loan plus any uncollected interest advanced and the costs of holding and disposing the related property. OFG has established a liability to cover the estimated credit loss exposure related to loans sold with credit recourse. The estimated losses to be absorbed under the credit recourse arrangements are recorded as a liability when the loans are sold or credit recourse is assumed as part of acquired servicing rights, and are updated by accruing or reversing expense (included as mortgage banking activities in the consolidated statements of operations) throughout the life of the loan, as necessary, when additional relevant information becomes available. The methodology used to estimate the recourse liability is a function of the recourse arrangements given and considers historical and forecast loss experience. The methodology leverages the expected loss framework for mortgage loans to estimate expected future losses. The reserve for the estimated losses under the credit recourse arrangements is presented separately within other liabilities in the consolidated statements of financial condition. |
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. All separately recognized servicing assets are recognized at fair value using the fair value measurement method. Under the fair value measurement method, OFG measures servicing rights at fair value at each reporting date and reports changes in the fair value of servicing asset in the statement of operations in the period in which the changes occur, and includes these changes, if any, with mortgage banking activities in the consolidated statement of operations. The fair value of servicing rights is subject to fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The fair value of servicing rights 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. |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees, and costs. Loans held for investment that were not purchased with credit deterioration are referred to as Non-PCD loans, and loans that were purchased with credit deterioration are referred to as PCD loans. OFG discontinues accrual of interest after payments become more than 90 days past due or earlier if OFG does not expect the full collection of principal or interest, except for residential mortgage loans insured or guaranteed under applicable FHA and VA programs that are not placed in non-accrual status until they become 12 months or more past due, as they are insured loans. At that time, any accrued income is reversed. The delinquency status is based on the contractual terms of the loans. Loans for which the recognition of interest income has been discontinued are designated as non-accruing. Thereafter, collections are accounted for as a cash method, until qualifying to return to accrual status. Such loans are not reinstated to accrual status until interest is received on a current basis and other factors indicative of doubtful collection cease to exist. The determination as to the ultimate collectability of the loan’s balance may involve management’s judgment in the evaluation of the borrower’s financial condition and prospects for repayment. Interest income is based on the effective yield on the Non-PCD loans. Purchased Credit Deteriorated (PCD) Loans: OFG has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. OFG considered the following factors as indicators that an acquired loan had evidence of deterioration in credit quality: loans that were 90 days or more past due; loans that had an internal loan grade of substandard or worse - substandard loans have a well-defined weakness that jeopardizes collection of the loan; loans that were classified as nonaccrual by the acquired bank at the time of acquisition; and loans that had been previously modified in a troubled debt restructuring. As such, our PCD loans are recorded at the purchase price plus the allowance for credit losses expected at the time of acquisition or implementation of the standard. An allowance for credit losses is determined using an undiscounted cash flow methodology. 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, for these loans, the determination of nonaccrual or accrual status is made at the pool level, not the individual loan level. On the adoption of CECL, the allowance for credit losses 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. Changes to the allowance for credit losses are recorded through the provision expense. Allowance for Credit Losses (“ACL”) – Loans: OFG adopted CECL, which utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans at the time the financial asset is originated or acquired. The allowance for credit losses is adjusted each period for changes in expected credit losses. The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Determining the amount of the ACL is complex and requires extensive judgment by management about matters that are inherently uncertain. Re-evaluation of the ACL estimate in future periods in light of changes in the composition and characteristics of the loan portfolio, changes in the reasonable and supportable forecast, and other factors then prevailing may result in material changes in the amount of the ACL and credit loss expense in those future periods. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. OFG continues to monitor and modify the level of the ACL to ensure it is adequate. Our methodology for estimating expected credit losses for our loan portfolios includes the following key components: • Expected credit losses are estimated on a collective basis for groups of loans that share similar risk characteristics. Factors that may be considered in aggregating loans for this purpose include, but are not necessarily limited to, product or collateral type, internal risk rating, credit characteristics such as credit scores or collateral types, and historical or expected credit loss patterns. • Credit losses for loans that do not share similar risk characteristics are estimated on an individual basis. Individual evaluations are typically performed for nonaccrual loans, nonaccrual modified loans classified as troubled debt restructurings, and classified loans that do not share common risk characteristics. The lifetime losses for individually measured loans are estimated based on one of several methods, including the estimated fair value of the underlying collateral, the observable market value of similar debt, or the present value of expected cash flows. • ACL reserves are estimated over the contractual term of the financial asset adjusted for expected prepayments. As part of the calculation of the contractual term, the expected extension is generally not considered unless the option to extend the loan cannot be canceled unilaterally by OFG, and loan modifications are also not considered unless OFG has a reasonable expectation that it will execute a troubled debt restructuring (“TDR”). In the case of unconditionally cancellable accounts, such as credit cards, reserves are based on the expected life of the balance as of the evaluation date (assuming no further charges) and do not include any undrawn commitments that are unconditionally cancellable. • The quantitative model utilizes a discounted cash flow (“DCF”) or undiscounted cash flow (“UDCF”) approach to estimate expected credit losses using the probability of default (“PD”), loss given default (“LGD”), and exposure at default (“EAD”). DCF method is used for most of the Non-PCD portfolio, and the UDCF method for the PCD portfolio. For the EAD, the Company uses a prepayment model which projects prepayments over the life of the loans. • An economic forecast period based on the relationship of losses with key economic variables for each portfolio segment; OFG has elected a 2-year reasonable and supportable forecast period, with an additional 1-year to mean straight-line reversion occurring within the credit loss models based on the economic inputs. The length of the reasonable and supportable forecast is evaluated at each reporting period and adjusted if deemed necessary. • Inclusion of qualitative adjustment to consider factors for asset-specific risk characteristics to the extent they do not exist in the historical information that has not been accounted for and could impact the amount of future losses. For example, factors that OFG considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and nonaccrual loans, the effect of external factors such as competition, and legal and regulatory requirements, among others. • The estimate of credit losses includes expected recoveries of amounts previously charged off as well as consideration of expected amounts to be written off. If a loan has been charged off, the expected cash flows on the loan are not limited by the current amortized cost balance. Instead, expected cash flows can be assumed up to the unpaid principal balance immediately prior to the charge-off. • The ACL excludes accrued interest since all our products are subject to a non-accrual and timely write-off policy, except for accrued interest receivable on loans that participated in the Covid-19 and Hurricane Fiona deferral programs with delinquency status between 30 and 89 days past due, in which a reserve is calculated by applying the corresponding loan projected loss factors to the accrued interest receivable balance. Accrued interest receivable totaled $58.1 million and $54.8 million on December 31, 2022 and 2021, respectively, reported in accrued interest receivable on the consolidated statement of financial condition. Accrued interest receivable on loans that participated in the Covid-19 and Hurricane Fiona deferral programs amounted to $21.8 million at December 31, 2022 (December 31, 2021 - $23.9 million), of which $20.7 million (December 31, 2021 - $21.5 million) corresponds to loans in current status. Allowance for credit losses for accrued interest receivable on loans that participated in the deferral programs amounted to $144 thousand and $161 thousand at December 31, 2022 and 2021, respectively. In our loss forecasting framework, OFG incorporates forward-looking information through the use of macroeconomic scenarios. These macroeconomic scenarios include variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to, unemployment rates, employment rates, real estate prices, gross domestic product levels, gross national product levels, and retail sales. As any one economic outlook is inherently uncertain, OFG leverages multiple scenarios. The scenarios that are re-evaluated each quarter and the amount of weighting 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. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income through the life of the loan. OFG has identified the following portfolio segments, commercial loans, mortgage loans, consumer loans, and auto loans and leases, and measures the allowance for credit losses using the methods described below for each. Commercial Loans – The segmentation of commercial loans was established by business line, collateral type, size, and delinquency or risk rating/classification to assess the loans based on common risk characteristics. The segmentation aligns with OFG’s current credit policies and procedures for these portfolios. The estimate of expected credit losses on commercial loans is forecasted using models that estimate credit losses over the loan’s contractual life at an individual loan level. The models use the contractual terms to forecast future principal cash flows while also considering expected prepayments, considering that all our lines of credit are unconditionally cancellable. The loss forecasting model determines the probabilities of transition to different credit risk ratings or defaults at each point over the life of the asset based on the borrower’s current credit risk rating and business segment. Assumptions of expected loss are conditioned to the economic outlook, and the model considers key economic variables such as the unemployment rate, gross national product (“GNP”) (P.R. projections), gross domestic product (U.S. projections), and employment rates (U.S. projections). Loans that do not share risk characteristics are evaluated on an individual basis. Individual evaluations are typically performed for nonaccrual loans, nonaccrual modified loans classified as troubled debt restructurings, and classified loans that do not share common risk characteristics. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate, as OFG elected the collateral-dependent practical expedient. For loans evaluated individually that are not collateral dependent, a discounted cash flow method is used to determine the allowance for credit losses. 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. OFG’s lending activities in the continental United States – referred to as U.S. commercial loans – are conducted through OIB and OFG USA. These 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. OFG participated in the Paycheck Protection Program (“PPP”), which is a loan program that originated from the CARES Act and was subsequently expanded by the Paycheck Protection Program and Health Care Enhancement Act. The PPP was designed to provide U.S. small businesses with cash-flow assistance through loans fully guaranteed by the Small Business Administration (“SBA”). If the borrower met certain criteria and used the proceeds towards certain eligible expenses, the borrower’s obligation to repay the loan can be forgiven up to the full principal amount of the loan and any accrued interest. Upon borrower forgiveness, the SBA pays OFG for the principal and accrued interest owed on the loan. If the full principal of the loan is not forgiven, the loan will operate according to the original loan terms with the 100 percent SBA guaranty remaining. As compensation for originating the loans, OFG received lender processing fees from the SBA, which are capitalized, along with the loan origination costs, and will be amortized over the loans’ contractual lives and recognized as interest income. Upon forgiveness of a loan and repayment by the SBA, any unrecognized net capitalized fees and costs related to the loan will be recognized as interest income in that period. Mortgage Loans – This segment includes traditional mortgages, non-traditional mortgages, mortgages in the loss mitigation program, residential performing TDRs, and residential non-performing TDRs. The most significant attribute in estimating OFG’s lifetime expected credit losses is the vintage of the traditional mortgage segment. The estimates are based on OFG’s historical experience with the loan portfolio, adjusted to reflect the economic outlook. The outlook on the housing price index and unemployment are key factors that impact the frequency and severity of loss estimates. OFG expects to collect the amortized cost basis of government insured residential loans due to the nature of the government guarantee, so the ACL is zero for these loans. 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. For loans that are more than 180 days past due, with the exception of OFG’s fully insured portfolio, the outstanding balance of loans that is in excess of the estimated property value after adjusting for costs to sell is charged off. If the estimated property value decreases in periods subsequent to the initial charge-off, OFG will record additional charge-offs. Consumer Loans – This portfolio consists of smaller retail loans such as unsecured personal loans, unsecured personal lines of credit, retail credit cards, and overdrafts. The estimates are based on the OFG’s historical experience with the loan portfolios, adjusted to reflect the economic outlook. The outlook on the GNP and unemployment rate are key factors that impact the frequency and severity of loss estimates. Credit cards are revolving lines of credit without a defined maturity date. OFG elected to apply the remaining life methodology for the credit cards and overdrafts. The remaining life methodology takes projected losses based on the economic forecast for credit cards and historical losses on the overdraft segment, based on the expected remaining life of that pool. Future draws on the credit card lines are excluded from the estimated expected credit losses as they are unconditionally cancellable. 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 and leases - This portfolio consists of auto loans and leases. The most significant attribute in estimating OFG’s expected credit losses is the FICO score. The estimates are based on OFG’s historical experience with the loan portfolio, adjusted to reflect the economic outlook. The outlook on retail sales and unemployment are key factors that impact the frequency and severity of loss estimates. Auto loans and leases 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. For the principal enhancements that management made to its methodology, refer to Note 7 – Allowance for Credit Losses. |
Troubled Debt Restructuring | Troubled Debt Restructuring A TDR is the restructuring of a receivable in which OFG, as creditor, grants a concession for legal or economic reasons due to the debtor’s financial difficulties. A concession is granted when, as a result of the restructuring, OFG does not expect to collect all amounts due, according to original contractual terms of the loan agreement. These concessions may include a reduction of the interest rate, principal or accrued interest, extension of the maturity date or other actions intended to minimize potential losses. To assess whether the debtor is having financial difficulties, OFG evaluates whether it is probable that the debtor will default on any of its debt in the foreseeable future. Receivables that are restructured in a TDR are presumed to be impaired and are subject to a specific impairment-measurement method. If the repayment of the loan is expected to be provided solely by the underlying collateral and there are no other available sources of repayment, OFG considers the current value of that collateral in determining whether the principal will be paid. For non-collateral dependent loans, the specific reserve is calculated based on the present value of expected cash flows discounted at the loan’s effective interest rate. TDR loans are classified as either accrual or nonaccrual. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current, well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before the modification. To restore a non-accruing loan that has been modified in a TDR to accrual status, the credit officer must perform a current, well-documented credit analysis supporting a return to accrual status based on the borrower's financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis must consider the borrower's sustained historical repayment performance for a reasonable period prior to the return-to-accrual date but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six consecutive payments and would involve payments in the form of cash or cash equivalents. |
Foreclosed Real Estate and Other Repossessed Assets | Foreclosed Real Estate and Other Repossessed Assets Foreclosed real estate and other repossessed assets, mainly repossessed automobiles, are initially recorded at the fair value of the real estate or repossessed assets less the cost of selling it at the date of foreclosure or repossession. At the time properties are acquired in full or partial satisfaction of loans, any excess of the loan balance over the estimated fair value of the property is charged against the allowance for credit losses. After foreclosure or repossession, these properties are carried at the lower of cost or fair value less estimated cost to sell based on recent appraised values or options to purchase the foreclosed or repossessed assets. Any excess of the carrying value over the estimated fair value, less estimated costs to sell, is charged to non-interest expense. The costs and expenses associated to holding these properties in portfolio are expensed as incurred. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is recognized when the purchase price is higher than the fair value of net assets acquired in business combinations under the purchase method of accounting. OFG’s goodwill is not amortized to expense but is tested for impairment at least annually, and on a more frequent basis, if events or circumstances indicate impairment could have taken place. Such events could include, among others, a significant adverse change in the business climate, an adverse action by a regulator, an unanticipated change in the competitive environment, and a decision to change the operations or dispose of a reporting unit. A quantitative annual impairment test is not required if, based on a qualitative analysis, OFG determines that the existence of events and circumstances indicates that it is more likely than not that goodwill is not impaired. OFG performs an annual goodwill impairment test as of October 31 and monitors for interim triggering events on an ongoing basis. OFG tests for impairment based on the allocation of goodwill and other assets and liabilities, as necessary, to defined reporting segments. A fair value is then determined for each reporting segment. If the fair values of the reporting segments 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. Reporting segment valuation is inherently subjective, with a number of factors based on assumptions and management judgments or estimates. Actual values may differ significantly from such estimates. Among these are future growth rates for the reporting segments, selection of comparable market transactions, discount rates, and earnings capitalization rates. Changes in assumptions and results due to economic conditions, industry factors, and reporting unit performance and cash flow projections could result in different assessments of the fair values of reporting segments and could result in impairment charges. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting segment below its carrying amount, an interim impairment test is required. Other identifiable intangible assets with a finite useful life, mainly core deposits and customer relationships, are amortized using various methods over the periods benefited, which range from 3 to 10 years. These intangibles are evaluated periodically for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments on intangible assets with a finite useful life are evaluated under the guidance for impairment or disposal of long-lived assets. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful life of each type of asset. Amortization of leasehold improvements is computed using the straight-line method over the terms of the leases or estimated useful lives of the improvements, whichever is shorter. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets OFG periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In performing the review for recoverability, an estimate of the future cash flows expected to result from the use of the asset and its eventual disposition is made. If the sum of the future cash flows (undiscounted and without interest charges) is less than the carrying amount of the assets, an impairment loss is recognized. The amount of the impairment is the excess of the carrying amount over the fair value of the asset. As of December 31, 2022 and 2021, there was no indication of impairment as a result of such review. |
Off-Balance Sheet Instruments | Off-Balance Sheet Instruments In the ordinary course of business, OFG enters into off-balance sheet instruments consisting of commitments to extend credit, further discussed in Note 25 – Commitments and Contingencies hereto. Such financial instruments are recorded in the financial statements when these are funded or related fees are incurred or received. OFG periodically evaluates the credit risks inherent in these commitments and establishes reserves for such risks if and when these are deemed necessary. |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance Sheet Credit Exposures OFG estimates the expected credit losses related to unfunded lending commitments such as letters of credit, financial guarantees, unfunded banker’s acceptances, and binding loan commitments. Reserves are estimated for the unfunded exposure using the same factors as the funded exposure and are reported as reserves for unfunded lending commitments. Net adjustments to the reserve for unfunded commitments are included in the provision for credit losses in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes In preparing the consolidated financial statements, OFG is required to estimate income taxes. This involves an estimate of current income tax expense together with an assessment of deferred taxes resulting from differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The determination of current income tax expense involves estimates and assumptions that require OFG to assume certain positions based on its interpretation of current tax laws and regulations. Changes in assumptions affecting estimates may be required in the future, and estimated tax assets or liabilities may need to be increased or decreased accordingly. The accrual for tax contingencies is adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law and emerging legislation. When particular matters arise, a number of years may elapse before such matters are audited and finally resolved. Favorable resolution of such matters could be recognized as a reduction to OFG’s effective tax rate in the year of resolution. Unfavorable settlement of any particular issue could increase the effective tax rate and may require the use of cash in such year. On June 30, 2020, OFS made the election to be treated as a partnership for income tax purposes which was effective on January 1, 2020. As such, OFS is currently a pass-through entity not subject to income taxes at the company level, and the parent will be subject to Puerto Rico income taxes on its distributable share of OFS taxable income under the partnership provisions of the PR Code. At the date of the election all tax attributes of OFS were also transferred to the parent. The same tax treatment applies to Oriental Insurance since its tax election to be treated as a partnership effective on January 1, 2016. Pursuant to these elections OFG is required to pay income taxes on its distributable share of earnings and profits of both entities. In the case of losses reported by any of the entities, such losses may be offset with the taxable income of the other entity. However, OFG is not permitted to use its operating losses to offset the taxable income of its partnerships. The determination of deferred tax expense or benefit is based on changes in the carrying amounts of assets and liabilities that generate temporary differences. The carrying value of OFG’s net deferred tax assets assumes that it will be able to generate sufficient future taxable income based on estimates and assumptions. If these estimates and related assumptions change in the future, OFG may be required to record valuation allowances against its deferred tax assets resulting in additional income tax expense in the consolidated statements of operations. Management evaluates on a regular basis whether the deferred tax assets can be realized and assesses the need for a valuation allowance. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowance from period to period are included in OFG’s tax provision in the period of change. In addition to valuation allowances, OFG establishes accruals for uncertain tax positions when, despite the belief that OFG’s tax return positions are fully supported, OFG believes that certain positions are likely to be challenged. The accruals for uncertain tax positions are adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law, and emerging legislation. The accruals for OFG’s uncertain tax positions are reflected as income tax payable as a component of accrued expenses and other liabilities. These accruals are reduced upon expiration of the applicable statute of limitations. OFG follows a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. OFG’s policy is to include interest and penalties related to unrecognized income tax benefits within the provision for income taxes on the consolidated statements of operations. OFG is potentially subject to income tax audits in the Commonwealth of Puerto Rico for taxable years 2018 to 2021, until the applicable statute of limitations expires. In addition, OFG’s US subsidiaries are potentially subject to income tax audits by the IRS for taxable years 2019 to 2021. Tax audits by their nature are often complex and can require several years to complete. |
Revenue Recognition | Revenue Recognition ASC 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. |
Stock-Based Compensation Plan | Stock-Based Compensation Plan OFG’s 2007 Omnibus Performance Incentive Plan, as amended and restated (the “Omnibus Plan”), provides for equity-based compensation incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted units and dividend equivalents, as well as equity-based performance awards. The Omnibus Plan was adopted in 2007, amended and restated in 2008, and further amended in 2010 and 2013. The purpose of the Omnibus Plan is to provide flexibility to OFG to attract, retain and motivate directors, officers, and key employees through the grant of awards based on performance and to adjust its compensation practices to the best compensation practice and corporate governance trends as they develop from time to time. The Omnibus Plan is further intended to motivate high levels of individual performance coupled with increased shareholder returns. Therefore, awards under the Omnibus Plan (each, an “Award”) are intended to be based upon the recipient’s individual performance, corporate performance, level of responsibility and potential to make significant contributions to OFG. Generally, the Omnibus Plan will terminate as of (a) the date when no more of OFG’s shares of common stock are available for issuance under the Omnibus Plan or, (b) if earlier, the date the Omnibus Plan is terminated by OFG’s Board of Directors. The Board’s Compensation Committee (the “Committee”), or such other committee as the Board may designate, has full authority to interpret and administer the Omnibus Plan in order to carry out its provisions and purposes. The Committee has the authority to determine those persons eligible to receive an Award and to establish the terms and conditions of any Award. The Committee may delegate, subject to such terms or conditions or guidelines as it shall determine, to any employee or group of employees any portion of its authority and powers under the Omnibus Plan with respect to participants who are not directors or executive officers subject to the reporting requirements under Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Only the Committee may exercise authority in respect to Awards granted to such participants. The expected term of stock options granted represents the period of time that such options are expected to be outstanding. Expected volatilities are based on historical volatility of OFG’s shares of common stock over the most recent period equal to the expected term of the stock options. For stock options issued during 2015, the expected volatilities are based on both historical and implied volatility of OFG’s shares of common stock. OFG follows the fair value method of recording stock-based compensation. OFG used the modified prospective transition method, which requires measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award with the cost to be recognized over the service period. It applies to all awards unvested and granted after the effective date and awards modified, repurchased, or cancelled after that date. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, except for those resulting from investments by owners and distributions to owners. GAAP requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities and on derivative activities that qualify and are designated for cash flows hedge accounting, net of taxes, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Lease Accounting | Lease Accounting Right of use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, and any impairment of the right-of-use asset. Variable lease payments are generally expensed as incurred and include certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. OFG’s leases do not contain residual value guarantees or material variable lease payments. All leases are classified as operating leases. |
Subsequent Events | Subsequent Events OFG has evaluated other events subsequent to the balance sheet date and prior to the filing of this annual report on Form 10-K for 2022, and has adjusted and disclosed those events that have occurred that would require adjustment or disclosure in the consolidated financial statements. |
New Accounting Updates Not Yet Adopted | New Accounting Updates Not Yet Adopted Fair Value Measurements—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Disclosures. In June 2022, the FASB issued ASU 2022-03 to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires certain disclosures for equity securities subject to contractual restrictions. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Entities are permitted to early adopt these amendments, including adoption in any interim period. The amendments should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. Upon adoption of this ASU, OFG will consider this guidance for equity securities subject to contractual sale restrictions. Financial Instruments—Credit Losses Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the FASB issued ASU 2022-02 to address the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-402 and amend the guidance on vintage disclosures to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Entities are permitted to early adopt these amendments, including adoption in any interim period, provided that the amendments are adopted as of the beginning of the annual reporting period that includes the interim period of adoption. In addition, entities are permitted to elect to early adopt the amendments related to TDR accounting and related disclosure enhancements separately from the amendments related to the vintage disclosures. We will adopt this guidance when it becomes effective, in the first quarter of 2023 on a prospective basis, and the impact on our financial statements and disclosures is not expected to be material. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Merger and Restructuring Charges | The following table presents severance and employee charges, systems integrations charges, branch consolidation, and other merger and restructuring charges related to the Scotiabank Acquisition, for 2020: Year Ended December 31, 2020 (In thousands) Severance and employee-related charges $ 220 Professional services and system integrations 9,973 Branch consolidation 3,707 Other 2,183 Total merger and restructuring charges $ 16,083 |
Schedule of Restructuring Reserves | The following table presents the changes in restructuring reserves for 2021 and 2020: Year Ended December 31, 2021 2020 (In thousands) Balance at the beginning of the year $ 15,129 $ 17,491 Merger and restructuring charges — 16,083 Cash payments (15,129) (18,445) Balance at the end of the year $ — $ 15,129 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021 were as follows: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 1 to 5 years $ 10,155 $ — $ 550 $ 9,605 1.76 % Due from 5 to 10 years 59,167 — 3,764 55,403 2.00 % Due after 10 years 768,381 59 65,332 703,108 2.87 % Total FNMA and FHLMC certificates 837,703 59 69,646 768,116 2.79 % GNMA Securities Due from 1 to 5 years 12,505 — 632 11,873 1.66 % Due from 5 to 10 years 24,575 14 1,585 23,004 2.13 % Due after 10 years 320,417 892 36,652 284,657 2.90 % Total GNMA certificates 357,497 906 38,869 319,534 2.80 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 14,190 — 755 13,435 1.78 % Due from 5 to 10 years 485 — 10 475 2.14 % Due after 10 years 959 — 18 941 5.06 % Total CMOs issued by US government-sponsored agencies 15,634 — 783 14,851 1.99 % Total mortgage-backed securities 1,210,834 965 109,298 1,102,501 2.79 % Investment securities US Treasury securities Due less than 1 year 310,862 — 1,729 309,133 3.34 % Other debt securities Due from 1 to 5 years 1,116 30 4 1,142 4.45 % Total investment securities 311,978 30 1,733 310,275 3.35 % Total securities available for sale $ 1,522,812 $ 995 $ 111,031 $ 1,412,776 2.90 % December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 337,435 $ — $ 62,358 $ 275,077 1.71 % Investment securities US Treasury securities Due from 1 to 5 years 197,635 — 3,526 194,109 3.36 % Total securities held-to-maturity $ 535,070 $ — $ 65,884 $ 469,186 2.30 % December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Available-for-sale Mortgage-backed securities FNMA and FHLMC certificates Due from 5 to 10 years $ 90,560 2,502 $ — $ 93,062 1.94 % Due after 10 years 93,440 — 3,200 90,240 1.37 % Total FNMA and FHLMC certificates 184,000 2,502 3,200 183,302 1.65 % GNMA Securities Due from 1 to 5 years 10,536 233 1 10,768 1.66 % Due from 5 to 10 years 26,419 556 — 26,975 1.80 % Due after 10 years 244,106 6,927 198 250,835 2.40 % Total GNMA certificates 281,061 7,716 199 288,578 2.32 % CMOs issued by US government-sponsored agencies Due from 1 to 5 years 1,788 22 — 1,810 1.70 % Due from 5 to 10 years 20,705 299 — 21,004 1.81 % Due after 10 years 1,601 16 1 1,616 4.24 % Total CMOs issued by US government-sponsored agencies 24,094 337 1 24,430 1.96 % Total mortgage-backed securities 489,155 10,555 3,400 496,310 2.05 % Investment securities US Treasury securities Due less than 1 year 10,737 88 — 10,825 1.48 % Obligations of US government-sponsored agencies Due less than 1 year 1,182 1 — 1,183 1.40 % Other debt securities Due less than 1 year 500 — — 500 0.57 % Due from 1 to 5 years 1,847 48 — 1,895 5.43 % Total other debt securities 2,347 48 — 2,395 4.39 % Total investment securities 14,266 137 — 14,403 1.95 % Total securities available for sale $ 503,421 $ 10,692 $ 3,400 $ 510,713 2.05 % December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Weighted Average Yield (In thousands) Held-to-maturity Mortgage-backed securities FNMA and FHLMC certificates Due after 10 years $ 367,507 $ — $ 3,854 $ 363,653 1.71 % |
Schedule of Gross Realized Gains and Losses by Category | Year Ended December 31, 2022 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Investment securities US Treasury securities $ 242,126 $ 242,373 $ — $ 247 Year Ended December 31, 2021 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Mortgage-backed securities GNMA certificates $ 2,175 $ 2,156 $ 19 $ — Year Ended December 31, 2020 Description Sale Price Book Value at Sale Gross Gains Gross Losses (In thousands) Sale of securities available-for-sale Mortgage-backed securities FNMA and FHLMC certificates $ 229,571 $ 227,213 $ 2,358 $ — GNMA certificates 91,413 89,043 2,370 — Total mortgage-backed securities $ 320,984 $ 316,256 $ 4,728 $ — |
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 and held-to-maturity at December 31, 2022 and 2021, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: December 31, 2022 12 months or more Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies 337 7 330 FNMA and FHLMC certificates $ 88,600 $ 18,989 $ 69,611 GNMA certificates 82,074 14,031 68,043 $ 171,011 $ 33,027 $ 137,984 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 December 31, 2022 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,297 $ 776 $ 14,521 FNMA and FHLMC certificates 745,566 50,657 694,909 GNMA certificates 251,835 24,838 226,997 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,323,800 $ 78,004 $ 1,245,796 Held-to-maturity FNMA and FHLMC certificates $ — $ — $ — US Treasury securities 197,635 3,526 194,109 $ 197,635 $ 3,526 $ 194,109 December 31, 2022 Total Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 15,634 $ 783 $ 14,851 FNMA and FHLMC certificates 834,166 69,646 764,520 GNMA certificates 333,909 38,869 295,040 US Treasury securities 310,862 1,729 309,133 Other debt securities 240 4 236 $ 1,494,811 $ 111,031 $ 1,383,780 Held-to-maturity FNMA and FHLMC certificates $ 337,435 $ 62,358 $ 275,077 US Treasury securities 197,635 3,526 194,109 $ 535,070 $ 65,884 $ 469,186 December 31, 2021 Less than 12 months Amortized Unrealized Fair (In thousands) Securities available-for-sale CMOs issued by US Government-sponsored agencies $ 500 $ 1 $ 499 FNMA and FHLMC certificates 93,440 3,200 90,240 GNMA certificates 5,022 199 4,823 $ 98,962 $ 3,400 $ 95,562 Held-to-maturity FNMA and FHLMC certificates $ 367,507 $ 3,854 $ 363,653 |
PLEDGED ASSETS (Tables)
PLEDGED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Pledged Assets [Abstract] | |
Schedule of Pledged and not Pledged Assets | The following table shows a summary of pledged and not pledged assets at December 31, 2022 and 2021. Investment securities available for sale are presented at fair value, and investment securities held to maturity, residential mortgage loans, commercial loans and leases are presented at amortized cost: December 31, 2022 2021 (In thousands) Pledged investment securities to secure: Derivatives $ 443 $ 1,679 Bond for the Bank's trust operations 104 105 Puerto Rico public fund deposits 293,650 143,775 Total pledged investment securities 294,197 145,559 Pledged residential mortgage loans to secure: Advances from the Federal Home Loan Bank 473,600 550,209 Pledged commercial loans to secure: Advances from the Federal Home Loan Bank 477,516 398,754 Federal Reserve Bank Credit Facility 49,117 47,239 Puerto Rico public fund deposits 73,617 85,148 600,250 531,141 Pledged auto loans and leases to secure: Federal Reserve Bank Credit Facility 1,160,678 1,138,126 Total pledged assets $ 2,528,725 $ 2,365,035 Financial assets not pledged: Investment securities $ 1,653,649 $ 732,661 Residential mortgage loans 1,250,120 1,408,158 Commercial loans 2,050,767 1,879,755 Consumer loans 537,257 409,675 Auto loans and leases 803,237 568,184 Total assets not pledged $ 6,295,030 $ 4,998,433 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | The composition of the amortized cost basis of OFG’s loan portfolio at December 31, 2022 and 2021 was as follows: December 31, 2022 December 31, 2021 Non-PCD PCD Total Non-PCD PCD Total (In thousands) Commercial loans: Commercial secured by real estate $ 974,202 $ 138,678 $ 1,112,880 $ 883,994 $ 176,186 $ 1,060,180 Other commercial and industrial 847,740 20,474 868,214 759,172 28,149 787,321 Other commercial and industrial - Paycheck Protection Program (PPP Loans) 6,702 — 6,702 86,889 — 86,889 US commercial loans 642,133 — 642,133 444,940 — 444,940 2,470,777 159,152 2,629,929 2,174,995 204,335 2,379,330 Mortgage 675,793 1,028,428 1,704,221 718,848 1,188,423 1,907,271 Consumer: Personal loans 480,620 338 480,958 346,859 546 347,405 Credit lines 12,826 300 13,126 14,775 370 15,145 Credit cards 42,872 — 42,872 46,795 — 46,795 Overdraft 301 — 301 330 — 330 536,619 638 537,257 408,759 916 409,675 Auto loans and leases 1,958,257 5,658 1,963,915 1,693,029 13,281 1,706,310 5,641,446 1,193,876 6,835,322 4,995,631 1,406,955 6,402,586 Allowance for credit losses (141,841) (10,832) (152,673) (132,065) (23,872) (155,937) Total loans held for investment, net 5,499,605 1,183,044 6,682,649 4,863,566 1,383,083 6,246,649 Mortgage loans held for sale 19,499 — 19,499 51,096 — 51,096 Other loans held for sale 21,088 — 21,088 31,566 — 31,566 Total loans held for sale 40,587 — 40,587 82,662 — 82,662 Total loans, net $ 5,540,192 $ 1,183,044 $ 6,723,236 $ 4,946,228 $ 1,383,083 $ 6,329,311 |
Schedule of Aging of Recorded Investment in Gross Loans | December 31, 2022 30-59 Days 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial Commercial secured by real estate $ 923 $ 164 $ 6,147 $ 7,234 $ 966,968 $ 974,202 $ — Other commercial and industrial 943 720 3,225 4,888 849,554 854,442 — US commercial loans — — — — 642,133 642,133 — 1,866 884 9,372 12,122 2,458,655 2,470,777 — Mortgage 9,267 5,848 56,714 71,829 603,964 675,793 3,856 Consumer Personal loans 4,263 2,669 2,314 9,246 471,374 480,620 — Credit lines 500 154 117 771 12,055 12,826 — Credit cards 730 486 682 1,898 40,974 42,872 — Overdraft 91 2 — 93 208 301 — 5,584 3,311 3,113 12,008 524,611 536,619 — Auto loans and leases 75,237 36,954 19,613 131,804 1,826,453 1,958,257 — Total loans $ 91,954 $ 46,997 $ 88,812 $ 227,763 $ 5,413,683 $ 5,641,446 $ 3,856 December 31, 2021 30-59 Day 60-89 Days 90+ Days Total Past Current Total Loans Loans 90+ (In thousands) Commercial Commercial secured by real estate $ 2,210 $ 102 $ 8,446 $ 10,758 $ 873,236 $ 883,994 $ — Other commercial and industrial 1,886 538 946 3,370 842,691 846,061 — US commercial loans — — — — 444,940 444,940 — 4,096 640 9,392 14,128 2,160,867 2,174,995 — Mortgage 8,704 7,855 43,468 60,027 658,821 718,848 2,346 Consumer Personal loans 2,382 1,131 1,116 4,629 342,230 346,859 — Credit lines 531 141 227 899 13,876 14,775 — Credit cards 610 336 631 1,577 45,218 46,795 — Overdraft 130 14 — 144 186 330 — 3,653 1,622 1,974 7,249 401,510 408,759 — Auto loans and leases 60,038 30,234 13,461 103,733 1,589,296 1,693,029 — Total loans $ 76,491 $ 40,351 $ 68,295 $ 185,137 $ 4,810,494 $ 4,995,631 $ 2,346 |
Schedule of Investment in Loans on Non-Accrual Status | The following table presents the amortized cost basis of loans held for investment on nonaccrual status as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 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 Commercial secured by real estate $ 4,091 $ 17,098 $ 21,189 $ 16,299 $ 19,538 $ 35,837 Other commercial and industrial 2,769 885 3,654 1,283 483 1,766 US commercial loans 9,589 — 9,589 — — — 16,449 17,983 34,432 17,582 20,021 37,603 Mortgage 11,719 11,522 23,241 16,429 12,840 29,269 Consumer Personal loans 1,950 379 2,329 1,143 302 1,445 Personal lines of credit 116 — 116 226 — 226 Credit cards 683 — 683 632 — 632 2,749 379 3,128 2,001 302 2,303 Auto loans and leases 19,612 1 19,613 19,827 2 19,829 Total $ 50,529 $ 29,885 $ 80,414 $ 55,839 $ 33,165 $ 89,004 PCD: Commercial Commercial secured by real estate $ 2,807 $ 6,084 $ 8,891 $ 5,205 $ 6,198 $ 11,403 Other commercial and industrial — 36 36 1,102 40 1,142 2,807 6,120 8,927 6,307 6,238 12,545 Mortgage 259 — 259 334 — 334 Total $ 3,066 $ 6,120 $ 9,186 $ 6,641 $ 6,238 $ 12,879 Total non-accrual loans $ 53,595 $ 36,005 $ 89,600 $ 62,480 $ 39,403 $ 101,883 |
Schedule of Troubled Debt Restructurings | The following table presents the troubled-debt restructurings in all loan portfolios as of December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Accruing Non-accruing Total Related Allowance Accruing Non-accruing Total Related Allowance (In thousands) (In thousands) Commercial loans: Commercial secured by real estate $ 31,437 $ 13,187 $ 44,624 $ 181 $ 10,981 $ 14,444 $ 25,425 $ 202 Other commercial and industrial 2,272 354 2,626 42 2,785 473 3,258 41 US commercial loans 7,132 — 7,132 89 7,156 — 7,156 126 40,841 13,541 54,382 312 20,922 14,917 35,839 369 Mortgage 102,387 6,773 109,160 2,495 101,487 9,475 110,962 3,867 Consumer: Personal loans 1,850 15 1,865 73 3,275 139 3,414 159 Auto loans and leases 77 — 77 3 203 8 211 11 Total loans $ 145,155 $ 20,329 $ 165,484 $ 2,883 $ 125,887 $ 24,539 $ 150,426 $ 4,406 The following tables present the troubled-debt restructurings by loan portfolios and modification type as of December 31, 2022 and 2021 : December 31, 2022 Reduction in interest rate Maturity or term extension Combination of reduction in interest rate and extension of maturity Forbearance Total (In thousands) Commercial loans: Commercial secured by real estate $ 7,746 $ 29,454 $ 7,424 $ — $ 44,624 Other commercial and industrial 785 1,367 474 — 2,626 US commercial loans 7,132 — — — 7,132 15,663 30,821 7,898 — 54,382 Mortgage 31,709 8,020 35,194 34,237 109,160 Consumer: Personal loans 825 176 793 71 1,865 Auto loans and leases 39 — 20 18 77 Total loans $ 48,236 $ 39,017 $ 43,905 $ 34,326 $ 165,484 December 31, 2021 Reduction in interest rate Maturity or term extension Combination of reduction in interest rate and extension of maturity Forbearance Total (In thousands) Commercial loans: Commercial secured by real estate $ 8,461 $ 1,227 $ 12,401 $ 3,336 $ 25,425 Other commercial and industrial 723 1,985 522 28 3,258 US commercial loans 7,156 — — — 7,156 16,340 3,212 12,923 3,364 35,839 Mortgage 37,307 6,796 32,456 34,403 110,962 Consumer: Personal loans 1,496 287 1,430 201 3,414 Auto loans and leases 74 — 28 109 211 Total loans $ 55,217 $ 10,295 $ 46,837 $ 38,077 $ 150,426 Year Ended December 31, 2022 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 103 $ 12,580 4.63 % 258 $ 13,199 3.79 % 342 Commercial 5 38,873 3.57 % 131 38,729 3.64 % 184 Consumer 4 77 13.42 % 74 77 10.41 % 70 Year Ended December 31, 2021 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 160 $ 20,077 4.33 % 323 $ 20,241 3.47 % 345 Commercial 7 10,093 5.50 % 86 9,979 4.48 % 60 Consumer 17 294 13.72 % 69 295 10.12 % 78 Auto loans and leases 9 148 8.70 % 72 148 9.35 % 49 Year Ended December 31, 2020 Number of contracts Pre-Modification Pre-Modification Pre-Modification Post-Modification Post-Modification Post-Modification (Dollars in thousands) Mortgage 88 $ 11,081 4.70 % 332 $ 10,151 4.13 % 327 Commercial 8 14,896 5.45 % 63 14,896 4.36 % 77 Consumer 23 349 14.11 % 64 391 10.57 % 76 Auto loans and leases 31 217 10.88 % 74 219 11.02 % 71 The following table presents troubled-debt restructurings for which there was a payment default during 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (Dollars in thousands) Mortgage 13 $ 1,701 19 $ 2,488 9 $ 1,345 Commercial 1 $ 633 — $ — — $ — Consumer 1 $ 40 6 $ 76 1 $ 2 Auto loans and leases — $ — 1 $ 10 — $ — |
Schedule of the Amortized Cost of Collateral-Dependent Loans Held for Investment | The table below presents the amortized cost of collateral-dependent loans held for investment at December 31, 2022 and 2021, by class of loans. December 31, 2022 2021 (In thousands) Commercial secured by real estate $ 8,805 $ 10,233 |
Schedule of Credit Quality Indicators of Loans | As of December 31, 2022 and 2021 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 Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 220,035 $ 177,775 $ 110,809 $ 118,518 $ 50,454 $ 159,721 $ 69,523 $ 906,835 Special Mention 1,899 — 6,007 17,004 2,095 13,934 439 41,378 Substandard 103 8,410 345 405 473 14,722 1,185 25,643 Doubtful — — — — — 15 331 346 Loss — — — — — — — — Total commercial secured by real estate 222,037 186,185 117,161 135,927 53,022 188,392 71,478 974,202 Other commercial and industrial: Loan grade: Pass 123,659 198,776 67,147 35,678 13,807 7,863 397,944 844,874 Special Mention 3 60 31 654 1,819 21 3,823 6,411 Substandard 112 — 260 472 280 74 1,920 3,118 Doubtful — — — — — — 39 39 Loss — — — — — — — — Total other commercial and industrial: 123,774 198,836 67,438 36,804 15,906 7,958 403,726 854,442 US commercial loans: Loan grade: Pass 81,155 92,688 43,965 33,827 49,356 — 308,183 609,174 Special Mention 6,346 — — — — — 1,122 7,468 Substandard 3,363 — 8,090 — 4,449 — 9,589 25,491 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 90,864 92,688 52,055 33,827 53,805 — 318,894 642,133 Total commercial loans $ 436,675 $ 477,709 $ 236,654 $ 206,558 $ 122,733 $ 196,350 $ 794,098 $ 2,470,777 Term Loans Revolving Total 2021 2020 2019 2018 2017 Prior (In thousands) Commercial: Commercial secured by real estate: Loan grade: Pass $ 183,820 $ 120,855 $ 114,208 $ 94,864 $ 52,439 $ 183,026 $ 45,178 $ 794,390 Special Mention 654 628 32,578 4,581 4,053 5,102 643 48,239 Substandard 8,415 10,694 58 849 1,357 17,555 1,671 40,599 Doubtful — — — — — 22 744 766 Loss — — — — — — — — Total commercial secured by real estate 192,889 132,177 146,844 100,294 57,849 205,705 48,236 883,994 Other commercial and industrial: Loan grade: Pass 276,165 93,809 45,976 57,989 6,106 6,004 330,072 816,121 Special Mention 78 23 8,076 2,213 3,525 — 13,642 27,557 Substandard 112 48 155 394 81 28 1,513 2,331 Doubtful — — — — — — 52 52 Loss — — — — — — — — Total other commercial and industrial: 276,355 93,880 54,207 60,596 9,712 6,032 345,279 846,061 US commercial loans: Loan grade: Pass 85,394 61,098 41,924 47,179 — — 171,928 407,523 Special Mention — — 1,515 19,095 — — — 20,610 Substandard — 7,156 — 9,651 — — — 16,807 Doubtful — — — — — — — — Loss — — — — — — — — Total US commercial loans: 85,394 68,254 43,439 75,925 — — 171,928 444,940 Total commercial loans $ 554,638 $ 294,311 $ 244,490 $ 236,815 $ 67,561 $ 211,737 $ 565,443 $ 2,174,995 Term Loans Revolving Total 2022 2021 2020 2019 2018 Prior (In thousands) Mortgage: Payment performance: Performing $ 18,700 $ 25,274 $ 16,175 $ 15,457 $ 16,790 $ 549,885 $ — $ 642,281 Nonperforming — — 110 574 241 32,587 — 33,512 Total mortgage loans: 18,700 25,274 16,285 16,031 17,031 582,472 — 675,793 Consumer: Personal loans: Payment performance: Performing 284,183 112,591 31,876 31,850 12,022 5,768 — 478,290 Nonperforming 831 661 111 300 81 346 — 2,330 Total personal loans 285,014 113,252 31,987 32,150 12,103 6,114 — 480,620 Credit lines: Payment performance: Performing — — — — — — 12,710 12,710 Nonperforming — — — — — — 116 116 Total credit lines — — — — — — 12,826 12,826 Credit cards: Payment performance: Performing — — — — — — 42,189 42,189 Nonperforming — — — — — — 683 683 Total credit cards — — — — — — 42,872 42,872 Overdrafts: Payment performance: Performing — — — — — — 301 301 Nonperforming — — — — — — — — Total overdrafts — — — — — — 301 301 Total consumer loans 285,014 113,252 31,987 32,150 12,103 6,114 55,999 536,619 Total mortgage and consumer loans $ 303,714 $ 138,526 $ 48,272 $ 48,181 $ 29,134 $ 588,586 $ 55,999 $ 1,212,412 Term Loans Revolving Total 2021 2020 2019 2018 2017 Prior (In thousands) Mortgage: Payment performance: Performing $ 18,486 $ 16,585 $ 15,461 $ 19,261 $ 24,872 $ 584,792 $ — $ 679,457 Nonperforming — 126 129 510 1,830 36,796 — 39,391 Total mortgage loans: 18,486 16,711 15,590 19,771 26,702 621,588 — 718,848 Consumer: Personal loans: Payment performance: Performing 175,273 55,960 65,425 29,808 12,287 6,661 — 345,414 Nonperforming 296 239 411 143 20 336 — 1,445 Total personal loans 175,569 56,199 65,836 29,951 12,307 6,997 — 346,859 Credit lines: Payment performance: Performing — — — — — — 14,549 14,549 Nonperforming — — — — — — 226 226 Total credit lines — — — — — — 14,775 14,775 Credit cards: Payment performance: Performing — — — — — — 46,163 46,163 Nonperforming — — — — — — 632 632 Total credit cards — — — — — — 46,795 46,795 Overdrafts: Payment performance: Performing — — — — — — 330 330 Nonperforming — — — — — — — — Total overdrafts — — — — — — 330 330 Total consumer loans 175,569 56,199 65,836 29,951 12,307 6,997 61,900 408,759 Total mortgage and consumer loans $ 194,055 $ 72,910 $ 81,426 $ 49,722 $ 39,009 $ 628,585 $ 61,900 $ 1,127,607 Term Loans Total 2022 2021 2020 2019 2018 Prior (In thousands) Auto loans and leases: FICO score: 1-660 178,426 143,926 72,148 58,069 44,156 31,980 528,705 661-699 171,723 93,359 42,388 31,033 21,283 13,518 373,304 700+ 375,845 235,743 144,783 135,517 88,597 47,499 1,027,984 No FICO 7,766 6,553 3,741 5,873 3,008 1,323 28,264 Total auto loans and leases: $ 733,760 $ 479,581 $ 263,060 $ 230,492 $ 157,044 $ 94,320 $ 1,958,257 Term Loans Total 2021 2020 2019 2018 2017 Prior (In thousands) Auto loans and leases: FICO score: 1-660 161,534 90,402 80,745 65,681 38,001 23,171 459,534 661-699 134,507 68,422 48,173 33,854 16,761 10,534 312,251 700+ 245,148 180,737 184,307 133,098 63,229 38,474 844,993 No FICO 26,759 13,580 17,062 10,119 5,515 3,216 76,251 Total auto loans and leases: $ 567,948 $ 353,141 $ 330,287 $ 242,752 $ 123,506 $ 75,395 $ 1,693,029 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022, 2021 and 2020: Year Ended December 31, 2022 Commercial Mortgage Consumer Auto loans and leases Total (In thousands) Non-PCD: Balance at beginning of year $ 32,262 $ 15,299 $ 19,141 $ 65,363 $ 132,065 Provision for (recapture of) credit losses 19,076 (8,758) 16,084 16,016 42,418 Charge-offs (13,380) (284) (15,198) (32,662) (61,524) Recoveries 1,200 3,314 3,237 21,131 28,882 Balance at end of year $ 39,158 $ 9,571 $ 23,264 $ 69,848 $ 141,841 PCD: Balance at beginning of year $ 4,508 $ 19,018 $ 34 $ 312 $ 23,872 (Recapture) provision of credit losses (6,855) (10,629) 62 (588) (18,010) Charge-offs (69) (1,695) (176) (310) (2,250) Recoveries 3,804 2,665 94 657 7,220 Balance at end of year $ 1,388 $ 9,359 $ 14 $ 71 $ 10,832 Total allowance for credit losses at end of year $ 40,546 $ 18,930 $ 23,278 $ 69,919 $ 152,673 Year Ended December 31, 2021 Commercial Mortgage Consumer Auto loans and leases Total (In thousands) Non-PCD: Balance at beginning of year $ 45,779 $ 19,687 $ 25,253 $ 70,296 $ 161,015 (Recapture of) provision for credit losses (7,130) (242) 2,868 (2,373) (6,877) Charge-offs (8,788) (5,789) (11,880) (26,530) (52,987) Recoveries 2,401 1,643 2,900 23,970 30,914 Balance at end of year $ 32,262 $ 15,299 $ 19,141 $ 65,363 $ 132,065 PCD: Balance at beginning of year $ 16,405 $ 26,389 $ 57 $ 943 $ 43,794 (Recapture of) provision for credit losses (2,585) 11,556 (317) (894) 7,760 Charge-offs (12,241) (20,350) (22) (946) (33,559) Recoveries 2,929 1,423 316 1,209 5,877 Balance at end of year $ 4,508 $ 19,018 $ 34 $ 312 $ 23,872 Total allowance for credit losses at end of year $ 36,770 $ 34,317 $ 19,175 $ 65,675 $ 155,937 Year Ended December 31, 2020 Commercial Mortgage Consumer Auto loans and leases Total (In thousands) Non-PCD: Balance at beginning of year $ 25,993 $ 8,727 $ 18,446 $ 31,878 $ 85,044 Impact of ASC 326 adoption 3,562 10,980 8,418 16,238 39,198 Provision for credit losses 18,462 258 16,579 51,233 86,532 Charge-offs (4,979) (884) (21,772) (48,547) (76,182) Recoveries 2,741 606 3,582 19,494 26,423 Balance at end of year $ 45,779 $ 19,687 $ 25,253 $ 70,296 $ 161,015 PCD: Balance at beginning of year $ 8,893 $ 21,655 $ — $ 947 $ 31,495 Impact of ASC 326 adoption 42,143 7,830 181 368 50,522 Provision for credit losses 480 6,392 126 187 7,185 Charge-offs (36,097) (10,342) (542) (2,023) (49,004) Recoveries 986 854 292 1,464 3,596 Balance at end of year $ 16,405 $ 26,389 $ 57 $ 943 $ 43,794 Total allowance for credit losses at end of year $ 62,184 $ 46,076 $ 25,310 $ 71,239 $ 204,809 The allowance for credit losses for 2020 included a $39.9 million provision to incorporate changes in the macro-economic scenario and qualitative adjustments as a result of the Covid-19 pandemic. |
FORECLOSED REAL ESTATE (Tables)
FORECLOSED REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate [Abstract] | |
Schedule of Foreclosed Real Estate Rollforward | The following table presents the activity related to foreclosed real estate for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 15,039 $ 11,596 $ 29,909 Additions 7,872 18,221 3,654 Sales (16,855) (14,758) (18,521) Decline in value (1,256) (1,450) (2,489) Other adjustments 6,414 1,430 (957) Balance at end of year $ 11,214 $ 15,039 $ 11,596 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Premises and equipment at December 31, 2022 and 2021 are stated at cost less accumulated depreciation and amortization as follows: Useful Life December 31, 2022 2021 (In thousands) Land — $ 4,031 $ 4,080 Buildings and improvements 20 — 40 74,349 77,988 Leasehold improvements 1 — 10 17,901 20,929 Furniture and fixtures 3 — 10 23,460 19,378 Information technology and other 3 — 7 59,130 43,156 178,871 165,531 Less: accumulated depreciation and amortization (72,051) (73,407) $ 106,820 $ 92,124 |
SERVICING ASSETS (Tables)
SERVICING ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Fair value at beginning of year $ 48,973 $ 47,295 $ 50,779 Servicing from mortgage securitization or asset transfers 3,998 6,089 2,394 Changes due to payments on loans (5,312) (6,738) (4,067) Changes in fair value due to changes in valuation model inputs or assumptions 3,262 2,327 (1,811) Fair value at end of year $ 50,921 $ 48,973 $ 47,295 |
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 December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Constant prepayment rate 3.43% - 21.20% 3.90% - 24.48% 5.02% - 35.22% Discount rate 10.00% - 15.50% 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: December 31, 2022 2021 (In thousands) Mortgage-related servicing asset Carrying value of mortgage servicing asset $ 50,921 $ 48,973 Weighted average life (in years) 7.8 7.8 Constant prepayment rate Decrease in fair value due to 10% adverse change $ (956) $ (1,020) Decrease in fair value due to 20% adverse change $ (1,880) $ (2,004) Discount rate Decrease in fair value due to 10% adverse change $ (2,265) $ (2,175) Decrease in fair value due to 20% adverse change $ (4,356) $ (4,183) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below. The activity during 2022 reflects the sale on December 31, 2022 of OFG’s retirement plan administration business. Refer to Note 28 – Business Segments for additional information on OFG’s reportable business segments. Banking Wealth Management Treasury Total (In thousands) December 31, 2021 $ 84,063 $ 2,006 $ — $ 86,069 Goodwill written off related to sale of business unit — (1,828) — (1,828) December 31, 2022 $ 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 December 31, 2022 and 2021: Gross Accumulated Net (In thousands) December 31, 2022 Core deposit intangibles $ 41,507 $ 20,376 $ 21,131 Customer relationship intangibles 12,693 6,231 6,462 Total other intangible assets $ 54,200 $ 26,607 $ 27,593 December 31, 2021 Core deposit intangibles $ 51,402 $ 23,772 $ 27,630 Customer relationship intangibles 17,753 9,385 8,368 Other intangibles 567 472 95 Total other intangible assets $ 69,722 $ 33,629 $ 36,093 |
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) 2023 $ 6,898 2024 5,913 2025 4,927 2026 3,942 2027 2,956 Thereafter 2,957 |
ACCRUED INTEREST RECEIVABLE A_2
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Interest Receivable and Other Assets [Abstract] | |
Schedule of Accrued interest receivable | Accrued interest receivable at December 31, 2022 and 2021 consists of the following: December 31, 2022 2021 (In thousands) Loans $ 58,144 $ 54,794 Investments 4,258 1,766 $ 62,402 $ 56,560 |
Schedule of Other Assets | Other assets at December 31, 2022 and 2021 consist of the following: December 31, 2022 2021 (In thousands) Prepaid expenses $ 54,875 $ 61,061 Other repossessed assets 4,617 1,945 Investment in Statutory Trust — 1,083 Accounts receivable and other assets 61,420 88,756 $ 120,912 $ 152,845 |
DEPOSITS AND RELATED INTEREST (
DEPOSITS AND RELATED INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits and Related Interest [Abstract] | |
Schedule of Deposits by Component | Total deposits, including related accrued interest payable, as of December 31, 2022 and 2021 consist of the following: December 31, 2022 2021 (In thousands) Non-interest-bearing demand deposits $ 2,630,458 $ 2,501,644 Interest-bearing savings and demand deposits 4,774,265 4,880,476 Retail certificates of deposit 979,545 1,007,577 Institutional certificates of deposit 172,725 202,050 Total core deposits 8,556,993 8,591,747 Brokered deposits 11,371 11,371 Total deposits $ 8,568,364 $ 8,603,118 |
Schedule of Interest Expense | Interest expense for 2022, 2021 and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Demand and savings deposits $ 24,261 $ 23,713 $ 25,798 Certificates of deposit 7,978 15,301 34,400 $ 32,239 $ 39,014 $ 60,198 |
Schedule of Maturities of Time Deposits | Excluding accrued interest of approximately $682 thousand and $736 thousand, the scheduled maturities of certificates of deposit at December 31, 2022 and 2021 are as follows: December 31, 2022 Year-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 238,776 $ 29,503 Over 3 months through 6 months 152,940 18,238 Over 6 months through 1 year 262,976 59,093 654,692 106,834 Over 1 through 2 years 279,034 64,109 Over 2 through 3 years 136,732 26,481 Over 3 through 4 years 51,505 8,276 Over 4 through 5 years 39,888 2,230 Over 5 years 1,108 — $ 1,162,959 $ 207,930 December 31, 2021 Year-end amount Uninsured amount (In thousands) Within one year: Three months or less $ 252,513 25,003 Over 3 months through 6 months 147,400 12,113 Over 6 months through 1 year 239,830 45,280 639,743 82,396 Over 1 through 2 years 328,177 60,108 Over 2 through 3 years 114,403 18,578 Over 3 through 4 years 77,604 22,536 Over 4 through 5 years 58,918 8,505 Over 5 years 1,417 — $ 1,220,262 $ 192,123 |
BORROWINGS AND RELATED INTERE_2
BORROWINGS AND RELATED INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 $103 thousand and $8 thousand at December 31, 2022 and 2021, respectively: December 31, 2022 2021 (In thousands) Short-term fixed-rate advances from FHLB, with a weighted average interest rate of 4.46% (December 31, 2021 - 0.35%) $ 26,613 $ 28,480 Advances from FHLB mature as follows: December 31, 2022 2021 (In thousands) Under 90 days $ 26,613 $ 28,480 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Activity for Related Party Transactions | The activity and balance of these loans for 2022, 2021, and 2020 was as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at the beginning of year $ 25,915 $ 21,112 $ 22,312 New loans and disbursements 9,706 8,233 17,896 Repayments (2,829) (3,430) (19,096) Balance at the end of year $ 32,792 $ 25,915 $ 21,112 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for 2022, 2021, and 2020 were as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Current income tax expense (benefit) $ 16,740 $ 4,836 $ (7,347) Deferred income tax expense 61,126 63,616 27,846 Total income tax expense $ 77,866 $ 68,452 $ 20,499 |
Schedule of Effective Income Tax Rate Reconciliation | OFG’s income tax expense differs from amounts computed by applying the applicable statutory rate to income before income taxes as follows: Year Ended December 31, 2022 2021 2020 Amount Rate Amount Rate Amount Rate (Dollars in thousands) Income tax expense at statutory rates $ 91,539 37.50 % $ 80,476 37.50 % $ 35,567 37.50 % Tax of exempt income, net (11,523) -4.72 % (9,489) -4.42 % (7,272) -7.67 % Disallowed net operating loss carryover (267) -0.11 % (179) (0.08) % 202 0.21 % Change in valuation allowance (502) -0.21 % 803 0.37 % 2,267 2.39 % Unrecognized tax benefits, net 69 0.03 % 70 0.03 % (1,941) -2.05 % Capital gain at preferential rate (787) -0.32 % (3) — % (450) -0.47 % Tax rate difference (ordinary vs capital) (247) -0.10 % (480) -0.22 % (4,218) -4.45 % Bargain purchase gain — — % — — % (2,751) -2.90 % Return to provision adjustments (407) -0.17 % (933) -0.43 % (1,099) -1.16 % Foreign tax credit — — % 187 0.09 % 361 0.38 % Other items, net (9) — % (2,000) -0.94 % (167) -0.16 % Income tax expense $ 77,866 31.90 % $ 68,452 31.90 % $ 20,499 21.62 % |
Schedule of Income Tax Contingencies | The following table presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 798 $ 728 $ 2,668 Additions for tax positions of prior years 69 70 50 Reduction for tax positions as a result of lapse of statute of limitations or new information resulting in a change in assessment — — (1,990) Balance at end of year $ 867 $ 798 $ 728 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of OFG’s deferred tax assets and liabilities as of December 31, 2022, and 2021 were as follows: December 31, 2022 2021 (In thousands) Deferred tax asset: Allowance for credit losses and other reserves $ 57,273 $ 61,009 Scotiabank PR discount 1,453 $ 2,053 Loans and other real estate valuation adjustment 2,313 3,660 Deferred loan charge-offs 72,376 115,661 Net operating loss carry forwards 9,022 8,460 Alternative minimum tax 14,467 15,385 Unrealized net loss included in other comprehensive income — 301 Unrealized net loss on available-for-sale securities 16,422 — Goodwill 10,252 16,961 Acquired portfolio 45,761 53,687 Other assets allowances 1,538 929 Other deferred tax assets 16,570 20,291 Total gross deferred tax asset 247,447 298,397 Less: valuation allowance (9,143) (9,645) Net gross deferred tax assets 238,304 288,752 Deferred tax liability: Acquired loans tax basis (137,195) (137,402) FDIC-assisted Eurobank acquisition, net (5,760) (6,636) Customer deposit and customer relationship intangibles (7,314) (10,324) Building valuation adjustment (6,540) (6,976) Unrealized net gain on available-for-sale securities — (1,572) Unrealized net gain included in other comprehensive income (152) — Servicing asset (16,041) (15,311) Other deferred tax liabilities (9,817) (11,468) Total gross deferred tax liabilities (182,819) (189,689) Net deferred tax asset $ 55,485 $ 99,063 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021 are as follows: Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) OFG Bancorp Ratios As of December 31, 2022 Total capital to risk-weighted assets $ 1,132,658 14.89 % $ 798,574 10.50 % $ 760,547 10.00 % Tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 646,465 8.50 % $ 608,437 8.00 % Common equity tier 1 capital to risk-weighted assets $ 1,037,385 13.64 % $ 532,383 7.00 % $ 494,355 6.50 % Tier 1 capital to average total assets $ 1,037,385 10.36 % $ 400,445 4.00 % $ 500,557 5.00 % As of December 31, 2021 Total capital to risk-weighted assets $ 1,086,897 15.52 % $ 735,512 10.50 % $ 700,488 10.00 % Tier 1 capital to risk-weighted assets $ 999,284 14.27 % $ 595,414 8.50 % $ 560,390 8.00 % Common equity tier 1 capital to risk-weighted assets $ 964,284 13.77 % $ 490,341 7.00 % $ 455,317 6.50 % Tier 1 capital to average total assets $ 999,284 9.69 % $ 412,359 4.00 % $ 515,449 5.00 % Actual Minimum Capital Minimum to be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) Bank Ratios As of December 31, 2022 Total capital to risk-weighted assets $ 1,028,126 13.61 % $ 793,124 10.50 % $ 755,356 10.00 % Tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 642,053 8.50 % $ 604,285 8.00 % Common equity tier 1 capital to risk-weighted assets $ 933,494 12.36 % $ 528,749 7.00 % $ 490,981 6.50 % Tier 1 capital to average total assets $ 933,494 9.42 % $ 396,525 4.00 % $ 495,656 5.00 % As of December 31, 2021 Total capital to risk-weighted assets $ 995,549 14.34 % $ 728,867 10.50 % $ 694,159 10.00 % Tier 1 capital to risk-weighted assets $ 908,717 13.09 % $ 590,035 8.50 % $ 555,327 8.00 % Common equity tier 1 capital to risk-weighted assets $ 908,717 13.09 % $ 485,911 7.00 % $ 451,203 6.50 % Tier 1 capital to average total assets $ 908,717 8.87 % $ 409,855 4.00 % $ 512,319 5.00 % |
EQUITY-BASED COMPENSATION PLAN
EQUITY-BASED COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Range of Exercise Prices and Weighted Average Remaining Contractual Life | The activity in outstanding options for 2022, 2021, and 2020 is set forth below: Year Ended December 31, 2022 2021 2020 Number Weighted Number Weighted Number Weighted Beginning of year 338,494 $ 15.76 481,444 $ 15.10 634,294 $ 14.60 Options exercised (103,544) 14.34 (140,850) 13.51 (119,500) 12.36 Options forfeited — — (2,100) 16.55 (33,350) 15.42 End of year 234,950 $ 16.38 338,494 $ 15.76 481,444 $ 15.10 The following table summarizes the range of exercise prices and the weighted average remaining contractual life of the options outstanding at December 31, 2022: Outstanding Exercisable Range of Exercise Prices Number of Weighted Weighted Number of Weighted 14.09 to 16.90 139,700 15.66 1.1 139,700 15.66 16.91 to 19.71 95,250 17.44 1.6 95,250 17.44 234,950 $ 16.38 1.3 234,950 $ 16.38 Aggregate Intrinsic Value $ 2,626,986 $ 2,626,986 |
Schedule of Restricted Stock Unit Activity under the Omnibus Plan | The following table summarizes the activity in restricted units under the Omnibus Plan for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Restricted Weighted Restricted Weighted Restricted Weighted Beginning of year 511,740 $ 19.35 529,770 $ 15.58 379,150 $ 15.32 Restricted units granted 178,281 27.89 205,440 18.76 257,850 16.82 Restricted units lapsed (277,866) 17.08 (218,188) 13.85 (102,525) 14.74 Restricted units forfeited (3,323) 22.89 (5,282) 19.38 (4,705) 15.93 End of year 408,832 $ 22.27 511,740 $ 19.35 529,770 $ 15.58 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022, 2021 and 2020 is set forth below: Year Ended December 31, 2022 2021 2020 Shares Dollar Shares Dollar Shares Dollar (In thousands, except shares data) Beginning of year 10,248,882 $ 150,572 8,498,163 $ 102,949 8,486,278 $ 102,339 Common shares used upon lapse of restricted stock units and options (296,891) (3,547) (301,710) (2,249) (163,115) (1,616) Common shares repurchased as part of the stock repurchase programs 2,351,868 64,110 2,052,429 49,872 175,000 2,226 End of year 12,303,859 $ 211,135 10,248,882 $ 150,572 8,498,163 $ 102,949 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive (loss) income, net of income taxes, as of December 31, 2022 and 2021 consisted of: December 31, 2022 2021 (In thousands) Unrealized (loss) gain on securities available-for-sale $ (110,036) $ 7,292 Income tax effect of unrealized loss (gain) on securities available-for-sale 16,373 (1,629) Net unrealized (loss) gain on securities available-for-sale (93,663) 5,663 Unrealized gain (loss) on cash flow hedges 406 (804) Income tax effect of unrealized (gain) loss on cash flow hedges (152) 301 Net unrealized gain (loss) on cash flow hedges 254 (503) Accumulated other comprehensive (loss) income, net of income taxes $ (93,409) $ 5,160 The following table presents changes in accumulated other comprehensive (loss) income by component, net of taxes, for 2022, 2021 and 2020: Year Ended December 31, 2022 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ 5,663 $ (503) $ 5,160 Other comprehensive (loss) income before reclassifications (99,087) 24 (99,063) Amounts reclassified out of accumulated other comprehensive (loss) income (239) 733 494 Other comprehensive (loss) income (99,326) 757 (98,569) Ending balance $ (93,663) $ 254 $ (93,409) Year Ended December 31, 2021 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ 12,092 $ (1,070) $ 11,022 Other comprehensive (loss) income before reclassifications (6,454) (1,074) (7,528) Amounts reclassified out of accumulated other comprehensive income 25 1,641 1,666 Other comprehensive (loss) income (6,429) 567 (5,862) Ending balance $ 5,663 $ (503) $ 5,160 Year Ended December 31, 2020 Net unrealized Net unrealized Accumulated (In thousands) Beginning balance $ (441) $ (567) $ (1,008) Other comprehensive income (loss) before reclassifications 7,803 (2,491) 5,312 Amounts reclassified out of accumulated other comprehensive income 4,730 1,988 6,718 Other comprehensive income (loss) 12,533 (503) 12,030 Ending balance $ 12,092 $ (1,070) $ 11,022 |
Schedule of Reclassifications Out of Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive (loss) income for 2022, 2021 and 2020: Amount reclassified out of accumulated other comprehensive (loss) income Affected Line Item in Year Ended December 31, 2022 2021 2020 (In thousands) Cash flow hedges: Interest-rate contracts $ 733 $ 1,641 $ 1,988 Net interest expense Available-for-sale securities: Gain on sale of investments (247) 19 4,728 Net gain on sale of securities Tax effect from changes in tax rates 8 6 2 Income tax expense $ 494 $ 1,666 $ 6,718 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share | The calculation of earnings per common share for 2022, 2021 and 2020 is as follows: Year Ended December 31, 2022 2021 2020 (In thousands, except per share data) Net income $ 166,239 $ 146,151 $ 74,327 Less: Dividends on preferred stock Non-convertible preferred stock (Series A, B, and D) — (1,255) (6,512) Income available to common shareholders $ 166,239 $ 144,896 $ 67,815 Average common shares outstanding 48,033 50,956 51,358 Effect of dilutive securities: Average potential common shares-options 403 414 197 Total weighted average common shares outstanding and equivalents 48,436 51,370 51,555 Earnings per common share - basic $ 3.46 $ 2.85 $ 1.32 Earnings per common share - diluted $ 3.44 $ 2.81 $ 1.32 |
GUARANTEES (Tables)
GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 these credit recourse agreements, included in the consolidated statements of financial condition during 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 294 $ 218 $ 985 Net recoveries (charge-offs/terminations) (147) 76 (767) Balance at end of year $ 147 $ 294 $ 218 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Credit-Related Financial Instruments | Credit-related financial instruments at December 31, 2022 and 2021 were as follows: December 31, 2022 2021 (In thousands) Commitments to extend credit $ 1,403,118 $ 1,365,273 Commercial letters of credit 1,082 48,196 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 December 31, 2022 and 2021, is as follows: December 31, 2022 2021 (In thousands) Standby letters of credit and financial guarantees $ 24,749 $ 25,203 Loans sold with recourse 110,891 121,778 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Schedule of Operating Lease Cost | Year Ended December 31, 2022 2021 2020 Statement of Operations (In thousands) Lease costs $ 10,467 $ 11,417 $ 13,233 Occupancy and equipment Variable lease costs 1,529 1,881 2,133 Occupancy and equipment Short-term lease cost 565 859 800 Occupancy and equipment Lease income (226) (442) (499) Occupancy and equipment Total lease cost $ 12,335 $ 13,715 $ 15,667 |
Schedule of Operating Lease Assets and Liabilities | December 31, 2022 2021 Statement of Financial Condition Classification (In thousands) Right-of-use assets $ 25,363 $ 28,846 Operating lease right-of-use assets Lease Liabilities $ 27,370 $ 30,498 Operating leases liabilities |
Schedule of Operating Lease, Other Information | December 31, 2022 2021 (In thousands) Weighted-average remaining lease term 5.1 years 5.6 years Weighted-average discount rate 6.8 % 6.6 % |
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 December 31, 2022 were as follows: Minimum Rent As of December 31, 2022 (In thousands) 2023 $ 9,326 2024 7,134 2025 5,127 2026 3,106 2027 2,290 Thereafter 5,773 Total lease payments $ 32,756 Less imputed interest 5,386 Present value of lease liabilities $ 27,370 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 309,133 $ 1,103,237 $ 406 $ 1,412,776 Trading securities — 9 — 9 Money market investments 4,161 — — 4,161 Derivative assets — 406 — 406 Servicing assets — — 50,921 50,921 $ 313,294 $ 1,103,652 $ 51,327 $ 1,468,273 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 8,805 $ 8,805 Foreclosed real estate — — 11,214 11,214 Other repossessed assets — — 4,617 4,617 Mortgage loans held for sale — — 19,499 19,499 Other loans held for sale $ — $ — $ 21,088 21,088 $ — $ — $ 65,223 $ 65,223 December 31, 2021 Fair Value Measurements Level 1 Level 2 Level 3 Total (In thousands) Recurring fair value measurements: Investment securities available-for-sale $ 10,825 $ 498,358 $ 1,530 $ 510,713 Trading securities — 20 — 20 Money market investments 8,952 — — 8,952 Derivative assets — 1 — 1 Servicing assets — — 48,973 48,973 Derivative liabilities — (804) — (804) $ 19,777 $ 497,575 $ 50,503 $ 567,855 Non-recurring fair value measurements: Collateral dependent loans $ — $ — $ 10,233 $ 10,233 Foreclosed real estate — — 15,039 15,039 Other repossessed assets — — 1,945 1,945 Mortgage loans held for sale — — 51,096 51,096 Other loans held for sale $ — $ — $ 31,566 31,566 $ — $ — $ 109,879 $ 109,879 |
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 2022, 2021 and 2020: Level 3 Instruments Only Year Ended December 31, 2022 2021 2020 Other debt securities available for sale Servicing Assets Total Other debt securities available for sale Servicing Assets Total Servicing Assets (In thousands) Balance at beginning year $ 1,530 $ 48,973 $ 50,503 $ — $ 47,295 $ 47,295 $ 50,779 New instruments acquired 376 3,998 4,374 — 6,089 $ 6,089 2,394 Transfer from Level 2 — — — 1,500 — $ 1,500 — Principal repayments and amortization — (5,312) (5,312) — (6,738) $ (6,738) (4,067) Instrument converted to equity security (1,581) — (1,581) — — — — Gains included in earnings — 3,262 3,262 — 2,327 $ 2,327 (1,811) Gains included in other comprehensive income 81 — 81 30 — $ 30 — Balance at end of year $ 406 $ 50,921 $ 51,327 $ 1,530 $ 48,973 $ 50,503 $ 47,295 |
Schedule of Qualitative Information for Assets and Liabilities | The table below presents quantitative information for all assets and liabilities measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at December 31, 2022 and 2021: December 31, 2022 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Other debt securities available-for-sale $ 406 Cash flow valuation Credit Rating Baa1 - Baa3 Baa2 Probability of Default Rate 0.15% - 2.12% 0.15 % Recovery Rate 34.73 % 34.73 % Servicing assets $ 50,921 Cash flow valuation Constant prepayment rate 3.43% - 21.20% 5.66 % Discount rate 10.00% - 15.50% 11.45 % Collateral dependent loans $ 8,805 Fair value of property Appraised value less disposition costs 10.20% - 51.20% 17.11 % Foreclosed real estate $ 11,214 Fair value of property Appraised value less disposition costs 10.20% - 33.20% 11.81 % Other repossessed assets $ 4,617 Fair value of property Estimated net realizable value less disposition costs 22.00% - 80.00% 58.49 % Mortgage loans held for sale $ 19,499 Fair value of property Estimated net realizable value 83.25% - 102.43% 71.86 % Other loans held for sale $ 21,088 Bids or sales contract prices Estimated market value 100.00% - 103.20% 74.65 % December 31, 2021 Fair Value Valuation Technique Unobservable Input Range Weighted Average (In thousands) Other debt securities available-for-sale $ 1,530 Cash flow valuation Credit Rating Baa1 - Baa3 Baa2 Probability of Default Rate 0.16% - 2.28% 0.35 % Recovery Rate 33.08% 33.08 % Servicing assets $ 48,973 Cash flow valuation Constant prepayment rate 3.90% - 24.48% 6.17 % Discount rate 10.00% - 15.50% 11.47 % Collateral dependent loans $ 10,233 Fair value of property Appraised value less disposition costs 10.20% - 30.20% 20.20 % Foreclosed real estate $ 15,039 Fair value of property Appraised value less disposition costs 10.20% - 30.20% 12.54 % Other repossessed assets $ 1,945 Fair value of property Estimated net realizable value less disposition costs 39.00% - 80.00% 60.54 % Mortgage loans held for sale $ 51,096 Fair value of property Estimated net realizable value 98.43% - 106.00% 124.41% Other loans held for sale $ 31,566 Bids or sales contract prices Estimated market value 100.00% - 103.20% 42.54% |
Schedule of Estimated Fair Value and Carrying Value | The estimated fair value and carrying value of OFG’s financial instruments at December 31, 2022 and 2021 was as follows: December 31, 2022 2021 Fair Carrying Fair Carrying (In thousands) Financial Assets: Level 1 Cash and cash equivalents $ 550,307 $ 550,307 $ 2,023,475 $ 2,023,475 Restricted cash $ 157 $ 157 $ 175 $ 175 Investment securities available-for-sale $ 309,133 $ 309,133 $ 10,825 $ 10,825 Level 2 Financial Assets: Trading securities $ 9 $ 9 $ 20 $ 20 Investment securities available-for-sale $ 1,103,237 $ 1,103,237 $ 498,358 $ 498,358 Investment securities held-to-maturity $ 469,186 $ 535,070 $ 363,653 $ 367,507 Federal Home Loan Bank (FHLB) stock $ 6,005 $ 6,005 $ 5,966 $ 5,966 Equity securities $ 17,662 $ 17,662 $ 11,612 $ 11,612 Derivative assets $ 406 $ 406 $ 1 $ 1 Financial Liabilities: Derivative liabilities $ — $ — $ 804 $ 804 Level 3 Financial Assets: Investment securities available for sale $ 406 $ 406 $ 1,530 $ 1,530 Total loans (including loans held-for-sale) $ 6,467,878 $ 6,723,236 $ 6,197,347 $ 6,329,311 Accrued interest receivable $ 62,402 $ 62,402 $ 56,560 $ 56,560 Servicing assets $ 50,921 $ 50,921 $ 48,973 $ 48,973 Accounts receivable and other assets $ 61,014 $ 61,014 $ 88,756 $ 88,756 Financial Liabilities: Deposits $ 8,556,300 $ 8,568,364 $ 8,614,073 $ 8,603,118 Advances from FHLB $ 26,716 $ 26,716 $ 28,480 $ 28,488 Other borrowings $ 318 $ 318 $ — $ — Subordinated capital notes $ — $ — $ 36,084 $ 36,083 Accrued expenses and other liabilities $ 124,999 $ 124,999 $ 96,240 $ 96,240 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Following are the results of operations and the selected financial information by operating segment for 2022, 2021 and 2020: Year Ended December 31, 2022 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 465,177 $ 21 $ 56,955 $ 522,153 $ (6,580) $ 515,573 Interest expense (31,926) — (8,147) (40,073) 6,580 (33,493) Net interest income 433,251 21 48,808 482,080 — 482,080 Provision for credit losses 24,111 — 8 24,119 — 24,119 Non-interest income 98,407 33,481 (198) 131,690 — 131,690 Non-interest expenses (323,125) (19,206) (3,215) (345,546) — (345,546) Intersegment revenue 2,187 — — 2,187 (2,187) — Intersegment expenses — (1,497) (690) (2,187) 2,187 — Income before income taxes $ 186,609 $ 12,799 $ 44,697 $ 244,105 $ — $ 244,105 Income tax expense 77,731 97 38 77,866 — 77,866 Net income $ 108,878 $ 12,702 $ 44,659 $ 166,239 $ — $ 166,239 Total assets $ 8,347,767 $ 23,085 $ 2,432,549 $ 10,803,401 $ (984,621) $ 9,818,780 Eliminations include interest income and expense for a borrowing by Oriental Overseas, which is included in the Treasury Segment with its corresponding interest expense, to fund its operations, from the Bank, which is included in the Banking Segment with its corresponding interest income, with an unpaid principal balance of $470.2 million and $262.9 million at December 31, 2022 and 2021, respectively, and is eliminated in the consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from previous year was mainly as a result of FRB interest rate increases and higher average borrowing balance. At December 31, 2020 the borrowing balance was zero. Year Ended December 31, 2021 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 432,375 $ 30 $ 17,072 $ 449,477 $ (278) $ 449,199 Interest expense (38,711) — (3,396) (42,107) 278 (41,829) Net interest income 393,664 30 13,676 407,370 — 407,370 Provision for (recapture of) credit losses 1,342 — (1,121) 221 — 221 Non-interest income 98,950 35,625 (1,365) 133,210 — 133,210 Non-interest expenses (300,568) (20,941) (4,247) (325,756) — (325,756) Intersegment revenue 2,355 — — 2,355 (2,355) — Intersegment expenses — (1,269) (1,086) (2,355) 2,355 — Income before income taxes $ 193,059 $ 13,445 $ 8,099 $ 214,603 $ — $ 214,603 Income tax expense 68,409 — 43 68,452 — 68,452 Net income $ 124,650 $ 13,445 $ 8,056 $ 146,151 $ — $ 146,151 Total assets $ 8,041,725 $ 32,082 $ 2,894,612 $ 10,968,419 $ (1,068,699) $ 9,899,720 Year Ended December 31, 2020 Banking Wealth Treasury Total Eliminations Consolidated (In thousands) Interest income $ 462,493 $ 59 $ 10,795 $ 473,347 $ — $ 473,347 Interest expense (57,811) — (7,104) (64,915) — (64,915) Net interest income 404,682 59 3,691 408,432 — 408,432 Provision for credit losses 92,237 — 435 92,672 — 92,672 Non-interest income 87,810 32,043 4,499 124,352 — 124,352 Non-interest expenses (320,997) (20,240) (4,049) (345,286) — (345,286) Intersegment revenue 2,443 — — 2,443 (2,443) — Intersegment expenses — (1,164) (1,279) (2,443) 2,443 — Income before income taxes $ 81,701 $ 10,698 $ 2,427 $ 94,826 $ — $ 94,826 Income tax expense 15,939 4,506 54 20,499 — 20,499 Net income $ 65,762 $ 6,192 $ 2,373 $ 74,327 $ — $ 74,327 Total assets $ 8,478,326 $ 32,893 $ 2,436,029 $ 10,947,248 $ (1,121,237) $ 9,826,011 |
BANKING AND FINANCIAL SERVICE_2
BANKING AND FINANCIAL SERVICE REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (In thousands) Banking service revenues: Checking accounts fees $ 8,933 $ 8,593 $ 8,577 Savings accounts fees 1,265 1,141 1,451 Electronic banking fees 54,639 55,968 47,542 Credit life commissions 724 469 254 Branch service commissions 1,456 1,467 1,462 Servicing and other loan fees 3,222 3,256 2,485 International fees 902 794 623 Miscellaneous income 20 18 185 Total banking service revenues 71,161 71,706 62,579 Wealth management revenue: Insurance income 15,084 14,647 13,618 Broker fees 6,793 8,213 6,828 Trust fees 10,013 11,303 10,446 Retirement plan and administration fees 745 881 897 Total wealth management revenue 32,635 35,044 31,789 Mortgage banking activities: Net servicing fees 18,258 16,818 12,120 Net gains on sale of mortgage loans and valuation 3,786 10,119 4,437 Loss on repurchased loans and other (115) (4,429) (53) Total mortgage banking activities 21,929 22,508 16,504 Total banking and financial service revenues $ 125,725 $ 129,258 $ 110,872 |
OFG BANCORP (HOLDING COMPANY _2
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements Of Financial Position Information | The following condensed financial information presents the financial position of the holding company only as of December 31, 2022 and 2021, and the results of its operations and its cash flows for 2022, 2021 and 2020: December 31, 2022 2021 (In thousands) ASSETS Cash and cash equivalents $ 82,045 $ 46,484 Investment in bank subsidiary, equity method 938,306 1,011,147 Investment in nonbank subsidiaries, equity method 32,525 35,915 Advance to investment dealers 6 17,213 Deferred tax asset, net 924 2,627 Due from bank subsidiary, net 44 50 Other assets 356 582 Total assets $ 1,054,206 $ 1,114,018 LIABILITIES AND STOCKHOLDERS’ EQUITY Dividend payable 9,513 6,010 Accrued expenses and other liabilities 2,287 2,765 Subordinated capital notes — 36,083 Total liabilities 11,800 44,858 Stockholders’ equity 1,042,406 1,069,160 Total liabilities and stockholders’ equity $ 1,054,206 $ 1,114,018 |
Condensed Statement Of Operations Information | Year Ended December 31, 2022 2021 2020 (In thousands) Income: Interest income $ 977 $ 55 $ 86 Investment trading activities, net and other 6,022 6,765 6,583 Total income 6,999 6,820 6,669 Expenses: Interest expense 521 1,174 1,394 Operating expenses 7,992 8,397 7,483 Total expenses 8,513 9,571 8,877 Loss before income taxes (1,514) (2,751) (2,208) Income tax expense (benefit) 2,782 1,813 (1,363) Loss before earnings of subsidiaries (4,296) (4,564) (845) Equity in earnings from: Bank subsidiary 162,236 144,089 74,899 Nonbank subsidiaries 8,299 6,626 273 Net income $ 166,239 $ 146,151 $ 74,327 |
Condensed Statement Of Comprehensive Income Information | Year Ended December 31, 2022 2021 2020 (In thousands) Net income $ 166,239 $ 146,151 $ 74,327 Other comprehensive (loss) income before tax: Other comprehensive (loss) income from bank subsidiary (98,569) (5,862) 12,030 Other comprehensive (loss) income before taxes (98,569) (5,862) 12,030 Income tax effect — — — Other comprehensive (loss) income after taxes (98,569) (5,862) 12,030 Comprehensive income $ 67,670 $ 140,289 $ 86,357 |
Condensed Statement Of Cash Flows Information | Year Ended December 31, 2022 2021 2020 (In thousands) Cash flows from operating activities: Net income $ 166,239 $ 146,151 $ 74,327 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings from banking subsidiary (162,236) (144,089) (74,899) Equity in earnings from nonbanking subsidiaries (8,299) (6,626) (273) Gain on early extinguishment of debt (42) — — Stock-based compensation 652 940 2,170 Deferred income tax, net 1,703 10 (2,637) Net (increase) decrease in other assets 18,829 (13,471) 12 Net increase (decrease) in accrued expenses and other liabilities (488) 950 (486) Dividends from banking subsidiary 140,000 197,000 26,100 Dividends from non-banking subsidiary 9,500 11,000 9,531 Net cash provided by operating activities 165,858 191,865 33,845 Cash flows from investing activities: Net increase in due from bank subsidiary, net — — (1,984) Proceeds from sales of premises and equipment — 240 282 Capital contribution to banking subsidiary — — (1,703) Capital contribution to non-banking subsidiary — (9,300) (9,013) Additions to premises and equipment (233) (288) (295) Net cash used in investing activities (233) (9,348) (12,713) Cash flows from financing activities: Subordinated capital notes (34,958) — — Exercise of stock options and restricted units lapsed, net (906) 283 583 Purchase of treasury stock (64,110) (49,872) (2,226) Redemption of preferred stock — (92,000) — Dividends paid (30,090) (20,973) (20,892) Net cash used in financing activities (130,064) (162,562) (22,535) Net change in cash and cash equivalents 35,561 19,955 (1,403) Cash and cash equivalents at beginning of year 46,484 26,529 27,932 Cash and cash equivalents at end of year $ 82,045 $ 46,484 $ 26,529 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) branch subsidiarie | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Remaining principal balance (as a percent) | 100% | ||
Accrued interest receivable | $ 62,402 | $ 56,560 | |
Allowance for credit losses | 152,673 | 155,937 | $ 204,809 |
Loans | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accrued interest receivable | 58,144 | 54,794 | |
Commercial loans | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 40,546 | 36,770 | 62,184 |
Accrued interest writeoff period | 90 days | ||
Nonaccrual status | 90 days | ||
Past due write-off | 90 days | ||
Mortgage | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 18,930 | 34,317 | 46,076 |
Accrued interest writeoff period | 90 days | ||
Nonaccrual status | 90 days | ||
Past due write-off | 90 days | ||
Mortgage | Government Guaranteed Loan | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accrued interest writeoff period | 12 months | ||
Nonaccrual status | 12 months | ||
Consumer | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 23,278 | 19,175 | 25,310 |
Accrued interest writeoff period | 90 days | ||
Nonaccrual status | 90 days | ||
Auto loans and leases | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 69,919 | 65,675 | $ 71,239 |
Accrued interest writeoff period | 90 days | ||
Nonaccrual status | 90 days | ||
Past due write-off | 180 days | ||
Partially written-off | 120 days | ||
Other intangibles | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite lived intangible asset, useful life (in years) | 3 years | ||
Other intangibles | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite lived intangible asset, useful life (in years) | 10 years | ||
COVID-19 and Hurricane Fiona Deferral Program Loans | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accrued interest receivable | $ 21,800 | 23,900 | |
COVID-19 and Hurricane Fiona Deferral Program Loans | Accrued Income Receivable | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | 144 | 161 | |
COVID-19 and Hurricane Fiona Deferral Program Loans | Current | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accrued interest receivable | $ 20,700 | $ 21,500 | |
Personal loans | Consumer | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Past due write-off | 120 days | ||
Credit cards | Consumer | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Past due write-off | 180 days | ||
Credit lines | Consumer | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Past due write-off | 180 days | ||
Puerto Rico | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of branches | branch | 41 | ||
Number of subsidiaries | subsidiarie | 3 | ||
VIRGIN ISLANDS, US | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of branches | branch | 2 | ||
UNITED STATES | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of subsidiaries | subsidiarie | 2 |
BUSINESS COMBINATIONS (Narrativ
BUSINESS COMBINATIONS (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Scotiabank PR & USVI Acquisition | |
Business Acquisition [Line Items] | |
Remeasurement adjustments | $ 7.3 |
BUSINESS COMBINATIONS (Schedule
BUSINESS COMBINATIONS (Schedule of Merger and Restructuring Charges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Total merger and restructuring charges | $ 0 | $ 0 | $ 16,083 |
Scotiabank PR & USVI Acquisition | |||
Business Acquisition [Line Items] | |||
Severance and employee-related charges | 220 | ||
Professional services and system integrations | 9,973 | ||
Branch consolidation | 3,707 | ||
Other | 2,183 | ||
Total merger and restructuring charges | $ 0 | $ 16,083 |
BUSINESS COMBINATIONS (Schedu_2
BUSINESS COMBINATIONS (Schedule of Restructuring Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Merger and restructuring charges | $ 0 | $ 0 | $ 16,083 |
Scotiabank PR & USVI Acquisition | |||
Business Acquisition [Line Items] | |||
Balance at the beginning of the year | $ 0 | 15,129 | 17,491 |
Merger and restructuring charges | 0 | 16,083 | |
Cash payments | (15,129) | (18,445) | |
Balance at the end of the year | $ 0 | $ 15,129 |
RESTRICTED CASH (Narrative) (De
RESTRICTED CASH (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 157 | $ 175 | $ 1,375 |
Reserve required by local government | 482,900 | 456,500 | |
Securities Sold under Agreements to Repurchase | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 157 | $ 175 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Money market investments | $ 4,161 | $ 8,952 | $ 11,908 |
Restricted cash | 157 | 175 | 1,375 |
Securitized GNMA pools retained, amortized cost | $ 112,400 | $ 149,100 | $ 90,100 |
Securitized GNMA pool retained, yield | 3.90% | 2.45% | 2.48% |
Retained FNMA pools | $ 13,700 | $ 0 | $ 0 |
FNMA pools retained, yield | 4.97% | ||
12 months or more | $ 137,984 | 0 | |
Held to maturity securities in continuous loss position for 12 months or more | 0 | ||
Mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sale of available for sale securities | 2,200 | 316,256 | |
Gain (loss) on sales of mortgaged-backed securities | 19 | 4,728 | |
Investment securities | US Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale, purchase price | 550,000 | 0 | $ 75,000 |
Purchase of held-to-maturity securities | 200,000 | ||
Proceeds from sale of available for sale securities | 242,400 | ||
Gain (loss) on sales of mortgaged-backed securities | (247) | ||
Asset Pledged as Collateral | |||
Debt Securities, Available-for-sale [Line Items] | |||
Pledged assets | 294,200 | 145,600 | |
OIB | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted cash | 305 | 305 | |
Oriental Overseas | |||
Debt Securities, Available-for-sale [Line Items] | |||
Restricted cash | 325 | 325 | |
Public Funds | Asset Pledged as Collateral | |||
Debt Securities, Available-for-sale [Line Items] | |||
Pledged assets | $ 293,700 | $ 143,800 |
INVESTMENT SECURITIES (Investme
INVESTMENT SECURITIES (Investment Securities by Contractual Maturity - AFS) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,522,812 | $ 503,421 |
Gross Unrealized Gains | 995 | 10,692 |
Gross Unrealized Losses | 111,031 | 3,400 |
Fair Value | $ 1,412,776 | $ 510,713 |
Weighted Average Yield | 2.90% | 2.05% |
Mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,210,834 | $ 489,155 |
Gross Unrealized Gains | 965 | 10,555 |
Gross Unrealized Losses | 109,298 | 3,400 |
Fair Value | $ 1,102,501 | $ 496,310 |
Weighted Average Yield | 2.79% | 2.05% |
Mortgage-backed securities | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 837,703 | $ 184,000 |
Gross Unrealized Gains | 59 | 2,502 |
Gross Unrealized Losses | 69,646 | 3,200 |
Fair Value | $ 768,116 | $ 183,302 |
Weighted Average Yield | 2.79% | 1.65% |
Mortgage-backed securities | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 357,497 | $ 281,061 |
Gross Unrealized Gains | 906 | 7,716 |
Gross Unrealized Losses | 38,869 | 199 |
Fair Value | $ 319,534 | $ 288,578 |
Weighted Average Yield | 2.80% | 2.32% |
Mortgage-backed securities | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 15,634 | $ 24,094 |
Gross Unrealized Gains | 0 | 337 |
Gross Unrealized Losses | 783 | 1 |
Fair Value | $ 14,851 | $ 24,430 |
Weighted Average Yield | 1.99% | 1.96% |
Mortgage-backed securities | Due from 1 to 5 years | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 10,155 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 550 | |
Fair Value | $ 9,605 | |
Weighted Average Yield | 1.76% | |
Mortgage-backed securities | Due from 1 to 5 years | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 12,505 | $ 10,536 |
Gross Unrealized Gains | 0 | 233 |
Gross Unrealized Losses | 632 | 1 |
Fair Value | $ 11,873 | $ 10,768 |
Weighted Average Yield | 1.66% | 1.66% |
Mortgage-backed securities | Due from 1 to 5 years | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 14,190 | $ 1,788 |
Gross Unrealized Gains | 0 | 22 |
Gross Unrealized Losses | 755 | 0 |
Fair Value | $ 13,435 | $ 1,810 |
Weighted Average Yield | 1.78% | 1.70% |
Mortgage-backed securities | Due from 5 to 10 years | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 59,167 | $ 90,560 |
Gross Unrealized Gains | 0 | 2,502 |
Gross Unrealized Losses | 3,764 | 0 |
Fair Value | $ 55,403 | $ 93,062 |
Weighted Average Yield | 2% | 1.94% |
Mortgage-backed securities | Due from 5 to 10 years | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 24,575 | $ 26,419 |
Gross Unrealized Gains | 14 | 556 |
Gross Unrealized Losses | 1,585 | 0 |
Fair Value | $ 23,004 | $ 26,975 |
Weighted Average Yield | 2.13% | 1.80% |
Mortgage-backed securities | Due from 5 to 10 years | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 485 | $ 20,705 |
Gross Unrealized Gains | 0 | 299 |
Gross Unrealized Losses | 10 | 0 |
Fair Value | $ 475 | $ 21,004 |
Weighted Average Yield | 2.14% | 1.81% |
Mortgage-backed securities | Due after 10 years | FNMA and FHLMC certificates | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 768,381 | $ 93,440 |
Gross Unrealized Gains | 59 | 0 |
Gross Unrealized Losses | 65,332 | 3,200 |
Fair Value | $ 703,108 | $ 90,240 |
Weighted Average Yield | 2.87% | 1.37% |
Mortgage-backed securities | Due after 10 years | GNMA Securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 320,417 | $ 244,106 |
Gross Unrealized Gains | 892 | 6,927 |
Gross Unrealized Losses | 36,652 | 198 |
Fair Value | $ 284,657 | $ 250,835 |
Weighted Average Yield | 2.90% | 2.40% |
Mortgage-backed securities | Due after 10 years | CMOs issued by US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 959 | $ 1,601 |
Gross Unrealized Gains | 0 | 16 |
Gross Unrealized Losses | 18 | 1 |
Fair Value | $ 941 | $ 1,616 |
Weighted Average Yield | 5.06% | 4.24% |
Investment securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 311,978 | $ 14,266 |
Gross Unrealized Gains | 30 | 137 |
Gross Unrealized Losses | 1,733 | 0 |
Fair Value | $ 310,275 | $ 14,403 |
Weighted Average Yield | 3.35% | 1.95% |
Investment securities | Other debt securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 2,347 | |
Gross Unrealized Gains | 48 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 2,395 | |
Weighted Average Yield | 4.39% | |
Investment securities | Due less than 1 year | US Treasury securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 310,862 | $ 10,737 |
Gross Unrealized Gains | 0 | 88 |
Gross Unrealized Losses | 1,729 | 0 |
Fair Value | $ 309,133 | $ 10,825 |
Weighted Average Yield | 3.34% | 1.48% |
Investment securities | Due less than 1 year | Obligations of US government-sponsored agencies | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,182 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 1,183 | |
Weighted Average Yield | 1.40% | |
Investment securities | Due less than 1 year | Other debt securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 500 | |
Weighted Average Yield | 0.57% | |
Investment securities | Due from 1 to 5 years | Other debt securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,116 | $ 1,847 |
Gross Unrealized Gains | 30 | 48 |
Gross Unrealized Losses | 4 | 0 |
Fair Value | $ 1,142 | $ 1,895 |
Weighted Average Yield | 4.45% | 5.43% |
INVESTMENT SECURITIES (Invest_2
INVESTMENT SECURITIES (Investment Securities by Contractual Maturity - HTM) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 535,070 | $ 367,507 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 65,884 | |
Fair Value | $ 469,186 | 363,653 |
Weighted Average Yield | 2.30% | |
Due from 1 to 5 years | Investment securities | US Treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 197,635 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 3,526 | |
Fair Value | $ 194,109 | |
Weighted Average Yield | 3.36% | |
Due after 10 years | Mortgage-backed securities | FNMA and FHLMC certificates | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 337,435 | 367,507 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 62,358 | 3,854 |
Fair Value | $ 275,077 | $ 363,653 |
Weighted Average Yield | 1.71% | 1.71% |
INVESTMENT SECURITIES (Gross Re
INVESTMENT SECURITIES (Gross Realized Gains and Losses by Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Sale Price | $ 242,126 | $ 2,174 | $ 320,984 |
Investment securities | US Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale Price | 242,126 | ||
Book Value at Sale | 242,373 | ||
Gross Gains | 0 | ||
Gross Losses | $ 247 | ||
Mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale Price | 320,984 | ||
Book Value at Sale | 2,200 | 316,256 | |
Gross Losses | 0 | ||
Mortgage-backed securities | GNMA certificates | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale Price | 2,175 | 91,413 | |
Book Value at Sale | 2,156 | 89,043 | |
Gross Gains | 19 | 2,370 | |
Gross Losses | $ 0 | 0 | |
Mortgage-backed securities | FNMA and FHLMC certificates | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale Price | 229,571 | ||
Book Value at Sale | 227,213 | ||
Gross Gains | 2,358 | ||
Gross Losses | $ 0 |
INVESTMENT SECURITIES (Unrealiz
INVESTMENT SECURITIES (Unrealized Gains and Losses by Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | $ 171,011 | |
Less than 12 months | 1,323,800 | $ 98,962 |
Total | 1,494,811 | |
Held-to-Maturity, Amortized Cost | ||
Less than 12 months | 197,635 | |
Total | 535,070 | |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 33,027 | |
Less than 12 months | 78,004 | 3,400 |
Total | 111,031 | |
Held-to-Maturity, Unrealized Loss | ||
Less than 12 months | 3,526 | |
Total | 65,884 | |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 137,984 | 0 |
Less than 12 months | 1,245,796 | 95,562 |
Total | 1,383,780 | |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 194,109 | |
Total | 469,186 | |
CMOs issued by US Government-sponsored agencies | ||
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | 337 | |
Less than 12 months | 15,297 | 500 |
Total | 15,634 | |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 7 | |
Less than 12 months | 776 | 1 |
Total | 783 | |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 330 | |
Less than 12 months | 14,521 | 499 |
Total | 14,851 | |
FNMA and FHLMC certificates | ||
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | 88,600 | |
Less than 12 months | 745,566 | 93,440 |
Total | 834,166 | |
Held-to-Maturity, Amortized Cost | ||
12 months or more | 337,435 | |
Less than 12 months | 0 | 367,507 |
Total | 337,435 | |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 18,989 | |
Less than 12 months | 50,657 | 3,200 |
Total | 69,646 | |
Held-to-Maturity, Unrealized Loss | ||
12 months or more | 62,358 | |
Less than 12 months | 0 | 3,854 |
Total | 62,358 | |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 69,611 | |
Less than 12 months | 694,909 | 90,240 |
Total | 764,520 | |
Held-to-Maturity, Fair Value | ||
12 months or more | 275,077 | |
Less than 12 months | 0 | 363,653 |
Total | 275,077 | |
GNMA Securities | ||
Securities Available-for-Sale, Amortized Cost | ||
12 months or more | 82,074 | |
Less than 12 months | 251,835 | 5,022 |
Total | 333,909 | |
Securities Available-for-Sale, Unrealized Loss | ||
12 months or more | 14,031 | |
Less than 12 months | 24,838 | 199 |
Total | 38,869 | |
Securities Available-for-Sale, Fair Value | ||
12 months or more | 68,043 | |
Less than 12 months | 226,997 | $ 4,823 |
Total | 295,040 | |
US Treasury securities | ||
Securities Available-for-Sale, Amortized Cost | ||
Less than 12 months | 310,862 | |
Total | 310,862 | |
Held-to-Maturity, Amortized Cost | ||
Less than 12 months | 197,635 | |
Total | 197,635 | |
Securities Available-for-Sale, Unrealized Loss | ||
Less than 12 months | 1,729 | |
Total | 1,729 | |
Held-to-Maturity, Unrealized Loss | ||
Less than 12 months | 3,526 | |
Total | 3,526 | |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months | 309,133 | |
Total | 309,133 | |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 194,109 | |
Total | 194,109 | |
Other debt securities | ||
Securities Available-for-Sale, Amortized Cost | ||
Less than 12 months | 240 | |
Total | 240 | |
Securities Available-for-Sale, Unrealized Loss | ||
Less than 12 months | 4 | |
Total | 4 | |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months | 236 | |
Total | $ 236 |
PLEDGED ASSETS (Details)
PLEDGED ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial assets not pledged: | $ 6,295,030 | $ 4,998,433 |
Investment securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial assets not pledged: | 1,653,649 | 732,661 |
Residential mortgage loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial assets not pledged: | 1,250,120 | 1,408,158 |
Commercial loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial assets not pledged: | 2,050,767 | 1,879,755 |
Consumer loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial assets not pledged: | 537,257 | 409,675 |
Auto loans and leases | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial assets not pledged: | 803,237 | 568,184 |
Total pledged investment securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 294,197 | 145,559 |
Total pledged investment securities | Deposits | Puerto Rico | Government | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 293,650 | 143,775 |
Total pledged investment securities | Bond for the Bank's trust operations | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 104 | 105 |
Total pledged investment securities | Derivative | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 443 | 1,679 |
Advances from the Federal Home Loan Bank | Advances from the Federal Home Loan Bank | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 473,600 | 550,209 |
Commercial loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 600,250 | 531,141 |
Commercial loans | Federal Reserve Bank Credit Facility | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 49,117 | 47,239 |
Commercial loans | Advances from the Federal Home Loan Bank | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 477,516 | 398,754 |
Commercial loans | Deposits | Puerto Rico | Government | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 73,617 | 85,148 |
Pledged auto loans and leases to secure | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | 2,528,725 | 2,365,035 |
Pledged auto loans and leases to secure | Federal Reserve Bank Credit Facility | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged investment securities to secure: | $ 1,160,678 | $ 1,138,126 |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) portfolioSegment loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loan portfolio segments | portfolioSegment | 4 | ||
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio | $ 17,476 | $ 54,983 | $ 2,542 |
Number of commercial loans sold | 2 | ||
Loans | $ 6,835,322 | 6,402,586 | |
Troubled debt restructurings | 165,484 | 150,426 | |
Recorded investment of residential mortgage loans collateralized and in process of foreclosure | 14,900 | 16,900 | |
Balance of revolving loans converted to term loans, amount | 78,000 | 37,500 | |
Total loans held for sale | 40,587 | 82,662 | |
Accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings | 145,155 | 125,887 | |
Non-accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings | 20,329 | 24,539 | |
Mortgage Loans - GNMA Buy-Back Option Program | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Delinquent loans | 32,600 | 14,500 | |
Puerto Rico | Hurricane Fiona | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 33,100 | ||
Loans granted | $ 50 | ||
Interest only payments (in months) | 3 months | ||
Number of principal and interest payments | 33 | ||
Past due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio | 65,500 | ||
Non-PCD | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net charge-offs recognized | $ 61,524 | 52,987 | 76,182 |
Loans | 5,641,446 | 4,995,631 | |
Total loans held for sale | 40,587 | 82,662 | |
Non-PCD | Past due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 227,763 | 185,137 | |
Commercial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 2,629,929 | 2,379,330 | |
Troubled debt restructurings | 54,382 | 35,839 | |
Commitment to lend additional funds | 3,200 | 3,700 | |
Total loans held for sale | 21,088 | 31,566 | |
Commercial loans | Accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings | 40,841 | 20,922 | |
Commercial loans | Non-accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings | $ 13,541 | 14,917 | |
Commercial loans | Commercial Loans Held-For-Sale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of commercial loans held for sale | loan | 2 | ||
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio | $ 9,700 | ||
Net charge-offs recognized | $ 8,800 | ||
Number of commercial loans sold | 1 | ||
Commercial loans | Puerto Rico | Government | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 73,700 | 87,300 | |
Commercial loans | Puerto Rico | Government | Property Tax Revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 73,700 | 86,200 | |
Commercial loans | Puerto Rico | Government | Public Corporation | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,100 | ||
Commercial loans | Non-PCD | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net charge-offs recognized | 13,380 | 8,788 | 4,979 |
Loans | 2,470,777 | 2,174,995 | |
Total loans held for sale | 21,088 | 31,566 | |
Commercial loans | Non-PCD | Non-accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for sale | 16,400 | 9,900 | |
Commercial loans | Non-PCD | Past due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 12,122 | 14,128 | |
Total loans held for sale | 21,100 | 4,700 | |
Mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,704,221 | 1,907,271 | |
Troubled debt restructurings | 109,160 | 110,962 | |
Loan deferral amount, pandemic related | 28,000 | ||
Total loans held for sale | 19,499 | 51,096 | |
Mortgage | Government Guaranteed Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings | 43,500 | 40,800 | |
Mortgage | Accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings | 102,387 | 101,487 | |
Mortgage | Non-accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled debt restructurings | 6,773 | 9,475 | |
Mortgage | Non-PCD | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net charge-offs recognized | 284 | 5,789 | $ 884 |
Loans | 675,793 | 718,848 | |
Total loans held for sale | 19,499 | 51,096 | |
Mortgage | Non-PCD | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 33,512 | 39,391 | |
Mortgage | Non-PCD | Past due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Sales of loans held for sale | 21,900 | ||
Loans | 71,829 | 60,027 | |
Mortgage and consumer loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance of revolving loans converted to term loans, amount | 0 | 0 | |
Mortgage and consumer loans | Non-PCD | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 1,212,412 | $ 1,127,607 |
LOANS (Composition of Loan Port
LOANS (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 6,835,322 | $ 6,402,586 | ||
Allowance for credit losses | (152,673) | (155,937) | $ (204,809) | |
Total loans held for investment, net | 6,682,649 | 6,246,649 | ||
Total loans held for sale | 40,587 | 82,662 | ||
Total loans | 6,723,236 | 6,329,311 | ||
Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 2,629,929 | 2,379,330 | ||
Allowance for credit losses | (40,546) | (36,770) | (62,184) | |
Total loans held for sale | 21,088 | 31,566 | ||
Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,704,221 | 1,907,271 | ||
Allowance for credit losses | (18,930) | (34,317) | (46,076) | |
Total loans held for sale | 19,499 | 51,096 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 537,257 | 409,675 | ||
Allowance for credit losses | (23,278) | (19,175) | (25,310) | |
Auto loans and leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,963,915 | 1,706,310 | ||
Allowance for credit losses | (69,919) | (65,675) | (71,239) | |
Non-PCD | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 5,641,446 | 4,995,631 | ||
Allowance for credit losses | (141,841) | (132,065) | (161,015) | $ (85,044) |
Total loans held for investment, net | 5,499,605 | 4,863,566 | ||
Total loans held for sale | 40,587 | 82,662 | ||
Total loans | 5,540,192 | 4,946,228 | ||
Non-PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 2,470,777 | 2,174,995 | ||
Allowance for credit losses | (39,158) | (32,262) | (45,779) | (25,993) |
Total loans held for sale | 21,088 | 31,566 | ||
Non-PCD | Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 675,793 | 718,848 | ||
Allowance for credit losses | (9,571) | (15,299) | (19,687) | (8,727) |
Total loans held for sale | 19,499 | 51,096 | ||
Non-PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 536,619 | 408,759 | ||
Allowance for credit losses | (23,264) | (19,141) | (25,253) | (18,446) |
Non-PCD | Auto loans and leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,958,257 | 1,693,029 | ||
Allowance for credit losses | (69,848) | (65,363) | (70,296) | (31,878) |
PCD | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,193,876 | 1,406,955 | ||
Allowance for credit losses | (10,832) | (23,872) | (43,794) | (31,495) |
Total loans held for investment, net | 1,183,044 | 1,383,083 | ||
Total loans held for sale | 0 | 0 | ||
Total loans | 1,183,044 | 1,383,083 | ||
PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 159,152 | 204,335 | ||
Allowance for credit losses | (1,388) | (4,508) | (16,405) | (8,893) |
Total loans held for sale | 0 | 0 | ||
PCD | Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,028,428 | 1,188,423 | ||
Allowance for credit losses | (9,359) | (19,018) | (26,389) | (21,655) |
Total loans held for sale | 0 | 0 | ||
PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 638 | 916 | ||
Allowance for credit losses | (14) | (34) | (57) | 0 |
PCD | Auto loans and leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 5,658 | 13,281 | ||
Allowance for credit losses | (71) | (312) | $ (943) | $ (947) |
Commercial secured by real estate | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 1,112,880 | 1,060,180 | ||
Commercial secured by real estate | Non-PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 974,202 | 883,994 | ||
Commercial secured by real estate | PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 138,678 | 176,186 | ||
Other commercial and industrial | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 868,214 | 787,321 | ||
Other commercial and industrial | Non-PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 847,740 | 759,172 | ||
Other commercial and industrial | PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 20,474 | 28,149 | ||
Other commercial and industrial - Paycheck Protection Program (PPP Loans) | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 6,702 | 86,889 | ||
Other commercial and industrial - Paycheck Protection Program (PPP Loans) | Non-PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 6,702 | 86,889 | ||
Other commercial and industrial - Paycheck Protection Program (PPP Loans) | PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 0 | 0 | ||
US commercial loans | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 642,133 | 444,940 | ||
US commercial loans | Non-PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 642,133 | 444,940 | ||
US commercial loans | PCD | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 0 | 0 | ||
Personal loans | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 480,958 | 347,405 | ||
Personal loans | Non-PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 480,620 | 346,859 | ||
Personal loans | PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 338 | 546 | ||
Credit lines | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 13,126 | 15,145 | ||
Credit lines | Non-PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 12,826 | 14,775 | ||
Credit lines | PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 300 | 370 | ||
Credit cards | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 42,872 | 46,795 | ||
Credit cards | Non-PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 42,872 | 46,795 | ||
Credit cards | PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 0 | 0 | ||
Overdraft | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 301 | 330 | ||
Overdraft | Non-PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 301 | 330 | ||
Overdraft | PCD | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 0 | $ 0 |
LOANS (Aging of Recorded Invest
LOANS (Aging of Recorded Investment in Gross Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 6,835,322 | $ 6,402,586 |
Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 5,641,446 | 4,995,631 |
Loans 90+ Days Past Due and Still Accruing | 3,856 | 2,346 |
30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 91,954 | 76,491 |
60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 46,997 | 40,351 |
90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 88,812 | 68,295 |
Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 227,763 | 185,137 |
Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 5,413,683 | 4,810,494 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,629,929 | 2,379,330 |
Commercial | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,470,777 | 2,174,995 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Commercial | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,866 | 4,096 |
Commercial | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 884 | 640 |
Commercial | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 9,372 | 9,392 |
Commercial | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 12,122 | 14,128 |
Commercial | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,458,655 | 2,160,867 |
Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,704,221 | 1,907,271 |
Mortgage | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 675,793 | 718,848 |
Loans 90+ Days Past Due and Still Accruing | 3,856 | 2,346 |
Mortgage | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 9,267 | 8,704 |
Mortgage | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 5,848 | 7,855 |
Mortgage | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 56,714 | 43,468 |
Mortgage | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 71,829 | 60,027 |
Mortgage | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 603,964 | 658,821 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 537,257 | 409,675 |
Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 536,619 | 408,759 |
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 | 5,584 | 3,653 |
Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,311 | 1,622 |
Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,113 | 1,974 |
Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 12,008 | 7,249 |
Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 524,611 | 401,510 |
Auto loans and leases | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,963,915 | 1,706,310 |
Auto loans and leases | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,958,257 | 1,693,029 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Auto loans and leases | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 75,237 | 60,038 |
Auto loans and leases | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 36,954 | 30,234 |
Auto loans and leases | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 19,613 | 13,461 |
Auto loans and leases | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 131,804 | 103,733 |
Auto loans and leases | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,826,453 | 1,589,296 |
Commercial secured by real estate | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,112,880 | 1,060,180 |
Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 974,202 | 883,994 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Commercial secured by real estate | Commercial | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 923 | 2,210 |
Commercial secured by real estate | Commercial | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 164 | 102 |
Commercial secured by real estate | Commercial | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 6,147 | 8,446 |
Commercial secured by real estate | Commercial | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 7,234 | 10,758 |
Commercial secured by real estate | Commercial | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 966,968 | 873,236 |
Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 854,442 | 846,061 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
Other commercial and industrial | Commercial | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 943 | 1,886 |
Other commercial and industrial | Commercial | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 720 | 538 |
Other commercial and industrial | Commercial | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,225 | 946 |
Other commercial and industrial | Commercial | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,888 | 3,370 |
Other commercial and industrial | Commercial | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 849,554 | 842,691 |
US commercial loans | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 642,133 | 444,940 |
US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 642,133 | 444,940 |
Loans 90+ Days Past Due and Still Accruing | 0 | 0 |
US commercial loans | Commercial | 30-59 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
US commercial loans | Commercial | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
US commercial loans | Commercial | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
US commercial loans | Commercial | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
US commercial loans | Commercial | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 642,133 | 444,940 |
Personal loans | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 480,958 | 347,405 |
Personal loans | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 480,620 | 346,859 |
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 | 4,263 | 2,382 |
Personal loans | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,669 | 1,131 |
Personal loans | Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,314 | 1,116 |
Personal loans | Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 9,246 | 4,629 |
Personal loans | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 471,374 | 342,230 |
Credit lines | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 13,126 | 15,145 |
Credit lines | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 12,826 | 14,775 |
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 | 500 | 531 |
Credit lines | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 154 | 141 |
Credit lines | Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 117 | 227 |
Credit lines | Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 771 | 899 |
Credit lines | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 12,055 | 13,876 |
Credit cards | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 42,872 | 46,795 |
Credit cards | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 42,872 | 46,795 |
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 | 730 | 610 |
Credit cards | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 486 | 336 |
Credit cards | Consumer | 90+ Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 682 | 631 |
Credit cards | Consumer | Total Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,898 | 1,577 |
Credit cards | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 40,974 | 45,218 |
Overdraft | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 301 | 330 |
Overdraft | Consumer | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 301 | 330 |
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 | 91 | 130 |
Overdraft | Consumer | 60-89 Days Past Due | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2 | 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 | 93 | 144 |
Overdraft | Consumer | Current | Non-PCD | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 208 | $ 186 |
LOANS (Investment in Loans on N
LOANS (Investment in Loans on Non-Accrual Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | $ 53,595 | $ 62,480 |
Non-accrual with no Allowance for Credit Loss | 36,005 | 39,403 |
Total | 89,600 | 101,883 |
Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 50,529 | 55,839 |
Non-accrual with no Allowance for Credit Loss | 29,885 | 33,165 |
Total | 80,414 | 89,004 |
PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 3,066 | 6,641 |
Non-accrual with no Allowance for Credit Loss | 6,120 | 6,238 |
Total | 9,186 | 12,879 |
Commercial | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 16,449 | 17,582 |
Non-accrual with no Allowance for Credit Loss | 17,983 | 20,021 |
Total | 34,432 | 37,603 |
Commercial | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 2,807 | 6,307 |
Non-accrual with no Allowance for Credit Loss | 6,120 | 6,238 |
Total | 8,927 | 12,545 |
Mortgage | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 11,719 | 16,429 |
Non-accrual with no Allowance for Credit Loss | 11,522 | 12,840 |
Total | 23,241 | 29,269 |
Mortgage | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 259 | 334 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 259 | 334 |
Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 2,749 | 2,001 |
Non-accrual with no Allowance for Credit Loss | 379 | 302 |
Total | 3,128 | 2,303 |
Auto loans and leases | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 19,612 | 19,827 |
Non-accrual with no Allowance for Credit Loss | 1 | 2 |
Total | 19,613 | 19,829 |
Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 4,091 | 16,299 |
Non-accrual with no Allowance for Credit Loss | 17,098 | 19,538 |
Total | 21,189 | 35,837 |
Commercial secured by real estate | Commercial | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 2,807 | 5,205 |
Non-accrual with no Allowance for Credit Loss | 6,084 | 6,198 |
Total | 8,891 | 11,403 |
Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 2,769 | 1,283 |
Non-accrual with no Allowance for Credit Loss | 885 | 483 |
Total | 3,654 | 1,766 |
Other commercial and industrial | Commercial | PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 0 | 1,102 |
Non-accrual with no Allowance for Credit Loss | 36 | 40 |
Total | 36 | 1,142 |
US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 9,589 | 0 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 9,589 | 0 |
Personal loans | Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 1,950 | 1,143 |
Non-accrual with no Allowance for Credit Loss | 379 | 302 |
Total | 2,329 | 1,445 |
Credit lines | Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 116 | 226 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | 116 | 226 |
Credit cards | Consumer | Non-PCD | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual with Allowance for Credit Loss | 683 | 632 |
Non-accrual with no Allowance for Credit Loss | 0 | 0 |
Total | $ 683 | $ 632 |
LOANS (Troubled-Debt Restructur
LOANS (Troubled-Debt Restructuring Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 165,484 | $ 150,426 |
Related Allowance | 2,883 | 4,406 |
Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 145,155 | 125,887 |
Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 20,329 | 24,539 |
Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 54,382 | 35,839 |
Related Allowance | 312 | 369 |
Commercial loans | Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 40,841 | 20,922 |
Commercial loans | Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 13,541 | 14,917 |
Commercial loans | Commercial secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 44,624 | 25,425 |
Related Allowance | 181 | 202 |
Commercial loans | Commercial secured by real estate | Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 31,437 | 10,981 |
Commercial loans | Commercial secured by real estate | Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 13,187 | 14,444 |
Commercial loans | Other commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 2,626 | 3,258 |
Related Allowance | 42 | 41 |
Commercial loans | Other commercial and industrial | Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 2,272 | 2,785 |
Commercial loans | Other commercial and industrial | Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 354 | 473 |
Commercial loans | US commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 7,132 | 7,156 |
Related Allowance | 89 | 126 |
Commercial loans | US commercial loans | Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 7,132 | 7,156 |
Commercial loans | US commercial loans | Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 0 |
Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 109,160 | 110,962 |
Related Allowance | 2,495 | 3,867 |
Mortgage | Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 102,387 | 101,487 |
Mortgage | Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 6,773 | 9,475 |
Consumer | Personal loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 1,865 | 3,414 |
Related Allowance | 73 | 159 |
Consumer | Personal loans | Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 1,850 | 3,275 |
Consumer | Personal loans | Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 15 | 139 |
Auto loans and leases | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 77 | 211 |
Related Allowance | 3 | 11 |
Auto loans and leases | Accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 77 | 203 |
Auto loans and leases | Non-accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 0 | $ 8 |
LOANS (Troubled-Debt Restruct_2
LOANS (Troubled-Debt Restructurings By Loan Portfolio And Modification Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 165,484 | $ 150,426 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 54,382 | 35,839 |
Commercial | Commercial secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 44,624 | 25,425 |
Commercial | Other commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 2,626 | 3,258 |
Commercial | US commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 7,132 | 7,156 |
Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 109,160 | 110,962 |
Consumer | Personal loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 1,865 | 3,414 |
Auto loans and leases | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 77 | 211 |
Reduction in interest rate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 48,236 | 55,217 |
Reduction in interest rate | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 15,663 | 16,340 |
Reduction in interest rate | Commercial | Commercial secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 7,746 | 8,461 |
Reduction in interest rate | Commercial | Other commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 785 | 723 |
Reduction in interest rate | Commercial | US commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 7,132 | 7,156 |
Reduction in interest rate | Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 31,709 | 37,307 |
Reduction in interest rate | Consumer | Personal loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 825 | 1,496 |
Reduction in interest rate | Auto loans and leases | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 39 | 74 |
Maturity or term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 39,017 | 10,295 |
Maturity or term extension | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 30,821 | 3,212 |
Maturity or term extension | Commercial | Commercial secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 29,454 | 1,227 |
Maturity or term extension | Commercial | Other commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 1,367 | 1,985 |
Maturity or term extension | Commercial | US commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 0 |
Maturity or term extension | Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 8,020 | 6,796 |
Maturity or term extension | Consumer | Personal loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 176 | 287 |
Maturity or term extension | Auto loans and leases | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 0 |
Combination of reduction in interest rate and extension of maturity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 43,905 | 46,837 |
Combination of reduction in interest rate and extension of maturity | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 7,898 | 12,923 |
Combination of reduction in interest rate and extension of maturity | Commercial | Commercial secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 7,424 | 12,401 |
Combination of reduction in interest rate and extension of maturity | Commercial | Other commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 474 | 522 |
Combination of reduction in interest rate and extension of maturity | Commercial | US commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 0 |
Combination of reduction in interest rate and extension of maturity | Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 35,194 | 32,456 |
Combination of reduction in interest rate and extension of maturity | Consumer | Personal loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 793 | 1,430 |
Combination of reduction in interest rate and extension of maturity | Auto loans and leases | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 20 | 28 |
Forbearance | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 34,326 | 38,077 |
Forbearance | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 3,364 |
Forbearance | Commercial | Commercial secured by real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 3,336 |
Forbearance | Commercial | Other commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 28 |
Forbearance | Commercial | US commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 0 |
Forbearance | Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 34,237 | 34,403 |
Forbearance | Consumer | Personal loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 71 | 201 |
Forbearance | Auto loans and leases | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 18 | $ 109 |
LOANS (TDR Pre_Post Modificatio
LOANS (TDR Pre/Post Modifications) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 USD ($) contract | |
Mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of contracts | contract | 103 | 160 | 88 |
Pre-Modification Outstanding Recorded Investment | $ 12,580 | $ 20,077 | $ 11,081 |
Pre-Modification Weighted Average Rate | 4.63% | 4.33% | 4.70% |
Pre-Modification Weighted Average Term (in Months) | 258 months | 323 months | 332 months |
Post-Modification Outstanding Recorded Investment | $ 13,199 | $ 20,241 | $ 10,151 |
Post-Modification Weighted Average Rate | 3.79% | 3.47% | 4.13% |
Post-Modification Weighted Average Term (in Months) | 342 months | 345 months | 327 months |
Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of contracts | contract | 5 | 7 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 38,873 | $ 10,093 | $ 14,896 |
Pre-Modification Weighted Average Rate | 3.57% | 5.50% | 5.45% |
Pre-Modification Weighted Average Term (in Months) | 131 months | 86 months | 63 months |
Post-Modification Outstanding Recorded Investment | $ 38,729 | $ 9,979 | $ 14,896 |
Post-Modification Weighted Average Rate | 3.64% | 4.48% | 4.36% |
Post-Modification Weighted Average Term (in Months) | 184 months | 60 months | 77 months |
Consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of contracts | contract | 4 | 17 | 23 |
Pre-Modification Outstanding Recorded Investment | $ 77 | $ 294 | $ 349 |
Pre-Modification Weighted Average Rate | 13.42% | 13.72% | 14.11% |
Pre-Modification Weighted Average Term (in Months) | 74 months | 69 months | 64 months |
Post-Modification Outstanding Recorded Investment | $ 77 | $ 295 | $ 391 |
Post-Modification Weighted Average Rate | 10.41% | 10.12% | 10.57% |
Post-Modification Weighted Average Term (in Months) | 70 months | 78 months | 76 months |
Auto loans and leases | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of contracts | contract | 9 | 31 | |
Pre-Modification Outstanding Recorded Investment | $ 148 | $ 217 | |
Pre-Modification Weighted Average Rate | 8.70% | 10.88% | |
Pre-Modification Weighted Average Term (in Months) | 72 months | 74 months | |
Post-Modification Outstanding Recorded Investment | $ 148 | $ 219 | |
Post-Modification Weighted Average Rate | 9.35% | 11.02% | |
Post-Modification Weighted Average Term (in Months) | 49 months | 71 months |
LOANS (Troubled Debt Restructur
LOANS (Troubled Debt Restructurings, Rolling Twelve Months) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 USD ($) contract | |
Mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 13 | 19 | 9 |
Recorded Investment | $ | $ 1,701 | $ 2,488 | $ 1,345 |
Commercial loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Recorded Investment | $ | $ 633 | $ 0 | $ 0 |
Consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 6 | 1 |
Recorded Investment | $ | $ 40 | $ 76 | $ 2 |
Auto loans and leases | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 1 | 0 |
Recorded Investment | $ | $ 0 | $ 10 | $ 0 |
LOANS (Aging of the Amortized C
LOANS (Aging of the Amortized Cost of Collateral-Dependent Loans Held For Investment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial loans | Commercial secured by real estate | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost of collateral-dependent loans held for investment | $ 8,805 | $ 10,233 |
LOANS (Credit Quality Indicator
LOANS (Credit Quality Indicators of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 6,835,322 | $ 6,402,586 |
Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,641,446 | 4,995,631 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,629,929 | 2,379,330 |
Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 436,675 | 554,638 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 477,709 | 294,311 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 236,654 | 244,490 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 206,558 | 236,815 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 122,733 | 67,561 |
Prior | 196,350 | 211,737 |
Revolving Loans Amortized Cost Basis | 794,098 | 565,443 |
Total | 2,470,777 | 2,174,995 |
Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,704,221 | 1,907,271 |
Mortgage | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 18,700 | 18,486 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 25,274 | 16,711 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 16,285 | 15,590 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 16,031 | 19,771 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 17,031 | 26,702 |
Prior | 582,472 | 621,588 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 675,793 | 718,848 |
Mortgage | Performing | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 18,700 | 18,486 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 25,274 | 16,585 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 16,175 | 15,461 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 15,457 | 19,261 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 16,790 | 24,872 |
Prior | 549,885 | 584,792 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 642,281 | 679,457 |
Mortgage | Nonperforming | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 126 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 110 | 129 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 574 | 510 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 241 | 1,830 |
Prior | 32,587 | 36,796 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 33,512 | 39,391 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 537,257 | 409,675 |
Consumer | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 285,014 | 175,569 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 113,252 | 56,199 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 31,987 | 65,836 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 32,150 | 29,951 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 12,103 | 12,307 |
Prior | 6,114 | 6,997 |
Revolving Loans Amortized Cost Basis | 55,999 | 61,900 |
Total | 536,619 | 408,759 |
Auto loans and leases | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,963,915 | 1,706,310 |
Auto loans and leases | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 733,760 | 567,948 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 479,581 | 353,141 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 263,060 | 330,287 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 230,492 | 242,752 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 157,044 | 123,506 |
Prior | 94,320 | 75,395 |
Total | 1,958,257 | 1,693,029 |
Auto loans and leases | 1-660 | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 178,426 | 161,534 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 143,926 | 90,402 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 72,148 | 80,745 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 58,069 | 65,681 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 44,156 | 38,001 |
Prior | 31,980 | 23,171 |
Total | 528,705 | 459,534 |
Auto loans and leases | 661-699 | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 171,723 | 134,507 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 93,359 | 68,422 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 42,388 | 48,173 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 31,033 | 33,854 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 21,283 | 16,761 |
Prior | 13,518 | 10,534 |
Total | 373,304 | 312,251 |
Auto loans and leases | 700+ | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 375,845 | 245,148 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 235,743 | 180,737 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 144,783 | 184,307 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 135,517 | 133,098 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 88,597 | 63,229 |
Prior | 47,499 | 38,474 |
Total | 1,027,984 | 844,993 |
Auto loans and leases | No FICO | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 7,766 | 26,759 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 6,553 | 13,580 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 3,741 | 17,062 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 5,873 | 10,119 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 3,008 | 5,515 |
Prior | 1,323 | 3,216 |
Total | 28,264 | 76,251 |
Mortgage and consumer loans | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 303,714 | 194,055 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 138,526 | 72,910 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 48,272 | 81,426 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 48,181 | 49,722 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 29,134 | 39,009 |
Prior | 588,586 | 628,585 |
Revolving Loans Amortized Cost Basis | 55,999 | 61,900 |
Total | 1,212,412 | 1,127,607 |
Commercial secured by real estate | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,112,880 | 1,060,180 |
Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 222,037 | 192,889 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 186,185 | 132,177 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 117,161 | 146,844 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 135,927 | 100,294 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 53,022 | 57,849 |
Prior | 188,392 | 205,705 |
Revolving Loans Amortized Cost Basis | 71,478 | 48,236 |
Total | 974,202 | 883,994 |
Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 123,774 | 276,355 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 198,836 | 93,880 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 67,438 | 54,207 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 36,804 | 60,596 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 15,906 | 9,712 |
Prior | 7,958 | 6,032 |
Revolving Loans Amortized Cost Basis | 403,726 | 345,279 |
Total | 854,442 | 846,061 |
US commercial loans | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 642,133 | 444,940 |
US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 90,864 | 85,394 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 92,688 | 68,254 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 52,055 | 43,439 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 33,827 | 75,925 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 53,805 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 318,894 | 171,928 |
Total | 642,133 | 444,940 |
Personal loans | Consumer | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 285,014 | 175,569 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 113,252 | 56,199 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 31,987 | 65,836 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 32,150 | 29,951 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 12,103 | 12,307 |
Prior | 6,114 | 6,997 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 480,620 | 346,859 |
Personal loans | Consumer | Performing | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 284,183 | 175,273 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 112,591 | 55,960 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 31,876 | 65,425 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 31,850 | 29,808 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 12,022 | 12,287 |
Prior | 5,768 | 6,661 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 478,290 | 345,414 |
Personal loans | Consumer | Nonperforming | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 831 | 296 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 661 | 239 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 111 | 411 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 300 | 143 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 81 | 20 |
Prior | 346 | 336 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 2,330 | 1,445 |
Credit lines | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 13,126 | 15,145 |
Credit lines | Consumer | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 12,826 | 14,775 |
Total | 12,826 | 14,775 |
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 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 12,710 | 14,549 |
Total | 12,710 | 14,549 |
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 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 116 | 226 |
Total | 116 | 226 |
Credit cards | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 42,872 | 46,795 |
Credit cards | Consumer | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 42,872 | 46,795 |
Total | 42,872 | 46,795 |
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 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 42,189 | 46,163 |
Total | 42,189 | 46,163 |
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 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 683 | 632 |
Total | 683 | 632 |
Overdraft | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 301 | 330 |
Overdraft | Consumer | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 301 | 330 |
Total | 301 | 330 |
Overdraft | Consumer | Performing | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 301 | 330 |
Total | 301 | 330 |
Overdraft | Consumer | Nonperforming | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Pass | Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 220,035 | 183,820 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 177,775 | 120,855 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 110,809 | 114,208 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 118,518 | 94,864 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 50,454 | 52,439 |
Prior | 159,721 | 183,026 |
Revolving Loans Amortized Cost Basis | 69,523 | 45,178 |
Total | 906,835 | 794,390 |
Pass | Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 123,659 | 276,165 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 198,776 | 93,809 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 67,147 | 45,976 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 35,678 | 57,989 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 13,807 | 6,106 |
Prior | 7,863 | 6,004 |
Revolving Loans Amortized Cost Basis | 397,944 | 330,072 |
Total | 844,874 | 816,121 |
Pass | US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 81,155 | 85,394 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 92,688 | 61,098 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 43,965 | 41,924 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 33,827 | 47,179 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 49,356 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 308,183 | 171,928 |
Total | 609,174 | 407,523 |
Special Mention | Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 1,899 | 654 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 628 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 6,007 | 32,578 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 17,004 | 4,581 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 2,095 | 4,053 |
Prior | 13,934 | 5,102 |
Revolving Loans Amortized Cost Basis | 439 | 643 |
Total | 41,378 | 48,239 |
Special Mention | Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 3 | 78 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 60 | 23 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 31 | 8,076 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 654 | 2,213 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 1,819 | 3,525 |
Prior | 21 | 0 |
Revolving Loans Amortized Cost Basis | 3,823 | 13,642 |
Total | 6,411 | 27,557 |
Special Mention | US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 6,346 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 1,515 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 19,095 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 1,122 | 0 |
Total | 7,468 | 20,610 |
Substandard | Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 103 | 8,415 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 8,410 | 10,694 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 345 | 58 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 405 | 849 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 473 | 1,357 |
Prior | 14,722 | 17,555 |
Revolving Loans Amortized Cost Basis | 1,185 | 1,671 |
Total | 25,643 | 40,599 |
Substandard | Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 112 | 112 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 48 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 260 | 155 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 472 | 394 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 280 | 81 |
Prior | 74 | 28 |
Revolving Loans Amortized Cost Basis | 1,920 | 1,513 |
Total | 3,118 | 2,331 |
Substandard | US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 3,363 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 7,156 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 8,090 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 9,651 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 4,449 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 9,589 | 0 |
Total | 25,491 | 16,807 |
Doubtful | Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 15 | 22 |
Revolving Loans Amortized Cost Basis | 331 | 744 |
Total | 346 | 766 |
Doubtful | Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 39 | 52 |
Total | 39 | 52 |
Doubtful | US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Loss | Commercial secured by real estate | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Loss | Other commercial and industrial | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Loss | US commercial loans | Commercial | Non-PCD | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term loans amortized by cost basis, in current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in one year prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in two years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in three years prior to current fiscal year | 0 | 0 |
Term loans amortized by cost basis, in four years prior to current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES (Na
ALLOWANCE FOR CREDIT LOSSES (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Decrease in allowance for credit losses | $ 3,300 | |||
Provision for (recapture of) credit losses | 24,119 | $ 221 | $ 92,672 | |
Net charge-off | (27,700) | |||
Decrease in net charge-offs | 22,100 | |||
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio | $ 17,476 | 54,983 | 2,542 | |
Number of commercial loans | loan | 4 | |||
Number of commercial loans sold | 2 | |||
Allowance for credit losses | $ 152,673 | 155,937 | 204,809 | |
Changes in Economic and Loss Rate Models and Miscellaneous Reserves | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | 1,900 | |||
Loan sales | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 30,100 | |||
Decrease in allowance for credit losses | 20,400 | |||
Provision for (recapture of) credit losses | 9,700 | |||
Financing Receivable, Loan Growth Member | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | 25,900 | |||
Commercial loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Decrease in net charge-offs | 7,300 | |||
Allowance for credit losses | 40,546 | 36,770 | 62,184 | |
Commercial loans | Non-accruing | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | 11,800 | |||
Auto loans and leases | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Decrease in net charge-offs | (8,900) | |||
Allowance for credit losses | 69,919 | 65,675 | 71,239 | |
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Decrease in net charge-offs | (3,400) | |||
Allowance for credit losses | 23,278 | 19,175 | 25,310 | |
Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Decrease in net charge-offs | 27,100 | |||
Allowance for credit losses | 18,930 | 34,317 | 46,076 | |
PCD | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 2,250 | 33,559 | 49,004 | |
Provision for (recapture of) credit losses | (18,010) | 7,760 | 7,185 | |
Recoveries | 7,220 | 5,877 | 3,596 | |
Allowance for credit losses | 10,832 | 23,872 | 43,794 | $ 31,495 |
PCD | Commercial loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 69 | 12,241 | 36,097 | |
Provision for (recapture of) credit losses | (6,855) | (2,585) | 480 | |
Recoveries | 3,804 | 2,929 | 986 | |
Allowance for credit losses | 1,388 | 4,508 | 16,405 | 8,893 |
PCD | Commercial loans | Puerto Rico | Government | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Recoveries | 2,800 | |||
PCD | Auto loans and leases | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 310 | 946 | 2,023 | |
Provision for (recapture of) credit losses | (588) | (894) | 187 | |
Recoveries | 657 | 1,209 | 1,464 | |
Allowance for credit losses | 71 | 312 | 943 | 947 |
PCD | Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 176 | 22 | 542 | |
Provision for (recapture of) credit losses | 62 | (317) | 126 | |
Recoveries | 94 | 316 | 292 | |
Allowance for credit losses | 14 | 34 | 57 | 0 |
PCD | Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 1,695 | 20,350 | 10,342 | |
Provision for (recapture of) credit losses | (10,629) | 11,556 | 6,392 | |
Recoveries | 2,665 | 1,423 | 854 | |
Allowance for credit losses | 9,359 | 19,018 | 26,389 | 21,655 |
Non-PCD | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 61,524 | 52,987 | 76,182 | |
Provision for (recapture of) credit losses | 42,418 | (6,877) | 86,532 | |
Recoveries | 28,882 | 30,914 | 26,423 | |
Allowance for credit losses | 141,841 | 132,065 | 161,015 | 85,044 |
Non-PCD | Commercial loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 13,380 | 8,788 | 4,979 | |
Provision for (recapture of) credit losses | 19,076 | (7,130) | 18,462 | |
Charge-offs for previously reserved amount | 12,300 | |||
Recoveries | 1,200 | 2,401 | 2,741 | |
Allowance for credit losses | 39,158 | 32,262 | 45,779 | 25,993 |
Non-PCD | Auto loans and leases | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 32,662 | 26,530 | 48,547 | |
Provision for (recapture of) credit losses | 16,016 | (2,373) | 51,233 | |
Recoveries | 21,131 | 23,970 | 19,494 | |
Allowance for credit losses | 69,848 | 65,363 | 70,296 | 31,878 |
Non-PCD | Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 15,198 | 11,880 | 21,772 | |
Provision for (recapture of) credit losses | 16,084 | 2,868 | 16,579 | |
Recoveries | 3,237 | 2,900 | 3,582 | |
Allowance for credit losses | 23,264 | 19,141 | 25,253 | 18,446 |
Non-PCD | Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Net charge-offs recognized | 284 | 5,789 | 884 | |
Provision for (recapture of) credit losses | (8,758) | (242) | 258 | |
Recoveries | 3,314 | 1,643 | 606 | |
Allowance for credit losses | 9,571 | 15,299 | 19,687 | $ 8,727 |
Improved Macroeconomic Conditions | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | (15,200) | |||
COVID-19 Pandemic | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for (recapture of) credit losses | $ 39,900 | |||
Total Past Due | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Reclassification of loans held-for-investment portfolio to held-for-sale portfolio | $ 65,500 | |||
Total Past Due | Non-PCD | Mortgage | Loan sales | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Recoveries | $ 1,100 |
ALLOWANCE FOR CREDIT LOSSES (Al
ALLOWANCE FOR CREDIT LOSSES (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 155,937 | $ 204,809 | |
Provision for (recapture of) credit losses | 24,119 | 221 | $ 92,672 |
Balance at end of year | 152,673 | 155,937 | 204,809 |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 36,770 | 62,184 | |
Balance at end of year | 40,546 | 36,770 | 62,184 |
Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 34,317 | 46,076 | |
Balance at end of year | 18,930 | 34,317 | 46,076 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 19,175 | 25,310 | |
Balance at end of year | 23,278 | 19,175 | 25,310 |
Auto loans and leases | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 65,675 | 71,239 | |
Balance at end of year | 69,919 | 65,675 | 71,239 |
Non-PCD | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 132,065 | 161,015 | 85,044 |
Provision for (recapture of) credit losses | 42,418 | (6,877) | 86,532 |
Charge-offs | (61,524) | (52,987) | (76,182) |
Recoveries | 28,882 | 30,914 | 26,423 |
Balance at end of year | 141,841 | 132,065 | 161,015 |
Non-PCD | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 39,198 | ||
Non-PCD | Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 32,262 | 45,779 | 25,993 |
Provision for (recapture of) credit losses | 19,076 | (7,130) | 18,462 |
Charge-offs | (13,380) | (8,788) | (4,979) |
Recoveries | 1,200 | 2,401 | 2,741 |
Balance at end of year | 39,158 | 32,262 | 45,779 |
Non-PCD | Commercial | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 3,562 | ||
Non-PCD | Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 15,299 | 19,687 | 8,727 |
Provision for (recapture of) credit losses | (8,758) | (242) | 258 |
Charge-offs | (284) | (5,789) | (884) |
Recoveries | 3,314 | 1,643 | 606 |
Balance at end of year | 9,571 | 15,299 | 19,687 |
Non-PCD | Mortgage | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 10,980 | ||
Non-PCD | Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 19,141 | 25,253 | 18,446 |
Provision for (recapture of) credit losses | 16,084 | 2,868 | 16,579 |
Charge-offs | (15,198) | (11,880) | (21,772) |
Recoveries | 3,237 | 2,900 | 3,582 |
Balance at end of year | 23,264 | 19,141 | 25,253 |
Non-PCD | Consumer | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 8,418 | ||
Non-PCD | Auto loans and leases | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 65,363 | 70,296 | 31,878 |
Provision for (recapture of) credit losses | 16,016 | (2,373) | 51,233 |
Charge-offs | (32,662) | (26,530) | (48,547) |
Recoveries | 21,131 | 23,970 | 19,494 |
Balance at end of year | 69,848 | 65,363 | 70,296 |
Non-PCD | Auto loans and leases | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 16,238 | ||
PCD | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 23,872 | 43,794 | 31,495 |
Provision for (recapture of) credit losses | (18,010) | 7,760 | 7,185 |
Charge-offs | (2,250) | (33,559) | (49,004) |
Recoveries | 7,220 | 5,877 | 3,596 |
Balance at end of year | 10,832 | 23,872 | 43,794 |
PCD | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 50,522 | ||
PCD | Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 4,508 | 16,405 | 8,893 |
Provision for (recapture of) credit losses | (6,855) | (2,585) | 480 |
Charge-offs | (69) | (12,241) | (36,097) |
Recoveries | 3,804 | 2,929 | 986 |
Balance at end of year | 1,388 | 4,508 | 16,405 |
PCD | Commercial | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 42,143 | ||
PCD | Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 19,018 | 26,389 | 21,655 |
Provision for (recapture of) credit losses | (10,629) | 11,556 | 6,392 |
Charge-offs | (1,695) | (20,350) | (10,342) |
Recoveries | 2,665 | 1,423 | 854 |
Balance at end of year | 9,359 | 19,018 | 26,389 |
PCD | Mortgage | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 7,830 | ||
PCD | Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 34 | 57 | 0 |
Provision for (recapture of) credit losses | 62 | (317) | 126 |
Charge-offs | (176) | (22) | (542) |
Recoveries | 94 | 316 | 292 |
Balance at end of year | 14 | 34 | 57 |
PCD | Consumer | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 181 | ||
PCD | Auto loans and leases | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | 312 | 943 | 947 |
Provision for (recapture of) credit losses | (588) | (894) | 187 |
Charge-offs | (310) | (946) | (2,023) |
Recoveries | 657 | 1,209 | 1,464 |
Balance at end of year | $ 71 | $ 312 | 943 |
PCD | Auto loans and leases | Impact of ASC 326 adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 368 |
FORECLOSED REAL ESTATE (Foreclo
FORECLOSED REAL ESTATE (Foreclosed Real Estate Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate Owned Activity [Roll Forward] | |||
Foreclosed real estate beginning balance | $ 15,039 | $ 11,596 | $ 29,909 |
Additions | 7,872 | 18,221 | 3,654 |
Sales | (16,855) | (14,758) | (18,521) |
Decline in value | (1,256) | (1,450) | (2,489) |
Other adjustments | 6,414 | 1,430 | (957) |
Foreclosed real estate ending balance | $ 11,214 | $ 15,039 | $ 11,596 |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 178,871 | $ 165,531 |
Less: accumulated depreciation and amortization | (72,051) | (73,407) |
Total premises and equipment, net | 106,820 | 92,124 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,031 | 4,080 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 74,349 | 77,988 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 20 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 40 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 17,901 | 20,929 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 10 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 23,460 | 19,378 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 3 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 10 years | |
Information technology and other | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 59,130 | $ 43,156 |
Information technology and other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 3 years | |
Information technology and other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 7 years |
PREMISES AND EQUIPMENT (Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 15.8 | $ 14.1 | $ 12.7 |
SERVICING ASSETS (Narrative) (D
SERVICING ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets at Fair Value [Line Items] | ||||
Fair value of servicing asset | $ 50,921 | $ 48,973 | $ 47,295 | $ 50,779 |
Servicing fees on mortgage loans | 3,222 | 3,256 | 2,485 | |
Conventional Mortgage Loan | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing fees on mortgage loans | $ 20,300 | $ 21,400 | $ 17,200 |
SERVICING ASSETS (Changes in Se
SERVICING ASSETS (Changes in Serving Rights at Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value at beginning of year | $ 48,973 | $ 47,295 | $ 50,779 |
Servicing from mortgage securitization or asset transfers | 3,998 | 6,089 | 2,394 |
Changes due to payments on loans | (5,312) | (6,738) | (4,067) |
Changes in fair value due to changes in valuation model inputs or assumptions | 3,262 | 2,327 | (1,811) |
Fair value at end of year | $ 50,921 | $ 48,973 | $ 47,295 |
SERVICING ASSETS (Key Economic
SERVICING ASSETS (Key Economic Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Minimum | |||
Servicing Assets at Fair Value [Line Items] | |||
Constant prepayment rate | 3.43% | 3.90% | 5.02% |
Discount rate | 10% | 10% | 10% |
Maximum | |||
Servicing Assets at Fair Value [Line Items] | |||
Constant prepayment rate | 21.20% | 24.48% | 35.22% |
Discount rate | 15.50% | 15.50% | 15.50% |
SERVICING ASSETS (Sensitivity o
SERVICING ASSETS (Sensitivity of Current Fair Value of Servicing Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Carrying value of mortgage servicing asset | $ 50,921 | $ 48,973 |
Weighted average life (in years) | 7 years 9 months 18 days | 7 years 9 months 18 days |
Constant prepayment rate - Decrease in fair value due to 10% adverse change | $ (956) | $ (1,020) |
Constant prepayment rate - Decrease in fair value due to 20% adverse change | (1,880) | (2,004) |
Discount rate - Decrease in fair value due to 10% adverse change | (2,265) | (2,175) |
Discount rate - Decrease in fair value due to 20% adverse change | $ (4,356) | $ (4,183) |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional amount of derivative contracts outstanding | $ 26,600 | $ 28,500 |
Derivative assets | 406 | 1 |
Derivative liabilities | $ 0 | $ 804 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule Of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 86,069 |
Goodwill written off related to sale of business unit | (1,828) |
Goodwill, Ending Balance | 84,241 |
Banking | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 84,063 |
Goodwill written off related to sale of business unit | 0 |
Goodwill, Ending Balance | 84,063 |
Wealth Management | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 2,006 |
Goodwill written off related to sale of business unit | (1,828) |
Goodwill, Ending Balance | 178 |
Treasury | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 0 |
Goodwill written off related to sale of business unit | 0 |
Goodwill, Ending Balance | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Increase (decrease) in carrying amount of goodwill | $ 0 | $ 0 | |
Accumulated impairment losses | $ 0 | 0 | 0 |
Impairment of goodwill | 0 | 0 | |
Amortization of intangible assets | $ 8,500,000 | $ 9,803,000 | $ 11,069,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Core Deposit, Customer Relationship and Other Intangibles) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 54,200 | $ 69,722 |
Accumulated Amortization | 26,607 | 33,629 |
Net Carrying Value | 27,593 | 36,093 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 41,507 | 51,402 |
Accumulated Amortization | 20,376 | 23,772 |
Net Carrying Value | 21,131 | 27,630 |
Customer relationship intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,693 | 17,753 |
Accumulated Amortization | 6,231 | 9,385 |
Net Carrying Value | $ 6,462 | 8,368 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 567 | |
Accumulated Amortization | 472 | |
Net Carrying Value | $ 95 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Estimated Amortization of Other Intangible Assets) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 6,898 |
2024 | 5,913 |
2025 | 4,927 |
2026 | 3,942 |
2027 | 2,956 |
Thereafter | $ 2,957 |
ACCRUED INTEREST RECEIVABLE A_3
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Schedule of Accrued Interest Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 62,402 | $ 56,560 |
Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | 58,144 | 54,794 |
Investments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 4,258 | $ 1,766 |
ACCRUED INTEREST RECEIVABLE A_4
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other assets [Line Items] | |||
Allowance for credit losses | $ 152,673 | $ 155,937 | $ 204,809 |
Prepaid expenses | 54,875 | 61,061 | |
Prepaid municipal, property, and income taxes | 47,200 | 54,600 | |
Other repossessed assets | 4,617 | 1,945 | |
COVID-19 and Hurricane Fiona Deferral Program Loans | |||
Other assets [Line Items] | |||
Accrued interest receivable | 21,800 | 23,900 | |
COVID-19 and Hurricane Fiona Deferral Program Loans | Accrued Income Receivable | |||
Other assets [Line Items] | |||
Allowance for credit losses | 144 | 161 | |
COVID-19 and Hurricane Fiona Deferral Program Loans | Current | |||
Other assets [Line Items] | |||
Accrued interest receivable | $ 20,700 | $ 21,500 |
ACCRUED INTEREST RECEIVABLE A_5
ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS (Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Interest Receivable and Other Assets [Abstract] | ||
Prepaid expenses | $ 54,875 | $ 61,061 |
Other repossessed assets | 4,617 | 1,945 |
Investment in Statutory Trust | 0 | 1,083 |
Accounts receivable and other assets | 61,420 | 88,756 |
Other assets | $ 120,912 | $ 152,845 |
DEPOSITS AND RELATED INTEREST_2
DEPOSITS AND RELATED INTEREST (Deposits by Components) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits and Related Interest [Abstract] | ||
Non-interest-bearing demand deposits | $ 2,630,458 | $ 2,501,644 |
Interest-bearing savings and demand deposits | 4,774,265 | 4,880,476 |
Retail certificates of deposit | 979,545 | 1,007,577 |
Institutional certificates of deposit | 172,725 | 202,050 |
Total core deposits | 8,556,993 | 8,591,747 |
Brokered deposits | 11,371 | 11,371 |
Total deposits | $ 8,568,364 | $ 8,603,118 |
DEPOSITS AND RELATED INTEREST_3
DEPOSITS AND RELATED INTEREST (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits and Related Interest [Line Items] | ||
Uninsured deposits | $ 3,498,000 | $ 3,270,000 |
Weighted average interest rate of deposits | 0.41% | 0.49% |
Time deposits in denominations in excess of $250,000 | $ 384,400 | $ 360,800 |
Deposits | 8,568,364 | 8,603,118 |
Public funds collateral investments | 367,300 | 228,900 |
Accrued interest on time deposits | 682 | 736 |
Overdrafts in demand deposit accounts | 495 | 491 |
Government | Puerto Rico | ||
Deposits and Related Interest [Line Items] | ||
Deposits | $ 284,200 | $ 183,800 |
DEPOSITS AND RELATED INTEREST_4
DEPOSITS AND RELATED INTEREST (Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits and Related Interest [Abstract] | |||
Demand and savings deposits | $ 24,261 | $ 23,713 | $ 25,798 |
Certificates of deposit | 7,978 | 15,301 | 34,400 |
Total | $ 32,239 | $ 39,014 | $ 60,198 |
DEPOSITS AND RELATED INTEREST_5
DEPOSITS AND RELATED INTEREST (Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Year-end amount, Within One Year | ||
Three months or less | $ 238,776 | $ 252,513 |
Over 3 months through 6 months | 152,940 | 147,400 |
Over 6 months through 1 year | 262,976 | 239,830 |
Within one year | 654,692 | 639,743 |
Year-end amount, after one year: | ||
Over 1 through 2 years | 279,034 | 328,177 |
Over 2 through 3 years | 136,732 | 114,403 |
Over 3 through 4 years | 51,505 | 77,604 |
Over 4 through 5 years | 39,888 | 58,918 |
Over 5 years | 1,108 | 1,417 |
Certificates of deposit | 1,162,959 | 1,220,262 |
Uninsured amount, within one year: | ||
Three months or less | 29,503 | 25,003 |
Over 3 months through 6 months | 18,238 | 12,113 |
Over 6 months through 1 year | 59,093 | 45,280 |
Within one year | 106,834 | 82,396 |
Uninsured amount, after one year: | ||
Over 1 through 2 years | 64,109 | 60,108 |
Over 2 through 3 years | 26,481 | 18,578 |
Over 3 through 4 years | 8,276 | 22,536 |
Over 4 through 5 years | 2,230 | 8,505 |
Over 5 years | 0 | 0 |
Uninsured amount | $ 207,930 | $ 192,123 |
BORROWINGS AND RELATED INTERE_3
BORROWINGS AND RELATED INTEREST (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2003 | |
Debt Instrument [Line Items] | ||||
Loans, gross | $ 6,835,322 | $ 6,402,586 | ||
Trust redeemable preferred securities issued | 35,000 | $ 35,000 | ||
Gain on early extinguishment of debt | $ 42 | (1,481) | $ (63) | |
Advances from the Federal Home Loan Bank | ||||
Debt Instrument [Line Items] | ||||
Minimum amount of qualifying collateral | 110% | |||
Additional borrowing capacity | $ 628,100 | $ 697,300 | ||
Weighted average period remaining maturity of FHLB advances | 3 days | 3 days | ||
Original debt instrument term of FHLB advances | 1 month | |||
Accrued interest payable | $ 103 | $ 8 | ||
Advances from the Federal Home Loan Bank | Asset Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Loans, gross | 951,100 | $ 949,000 | ||
Junior Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Par value of subordinated deferrable interest debenture | 36,100 | $ 36,100 | ||
Write off of unamortized issuance costs | 405 | |||
Gain on early extinguishment of debt | $ 42 | |||
Effective interest rate | 3.23% | |||
Junior Subordinated Debt | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.95% |
BORROWINGS AND RELATED INTERE_4
BORROWINGS AND RELATED INTEREST (Schedule of Federal Home Loan Bank Advances And Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank | $ 26,716 | $ 28,488 |
Advances from the Federal Home Loan Bank | ||
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank | $ 26,613 | $ 28,480 |
Weighted average interest rate of FHLB advances | 4.46% | 0.35% |
Advances from the Federal Home Loan Bank | Under 90 days | ||
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank | $ 26,613 | $ 28,480 |
EMPLOYEE BENEFIT PLAN (Narrativ
EMPLOYEE BENEFIT PLAN (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Maximum annual contributions per employee | $ 20,500 | ||
Amount of employer match | $ 0.50 | ||
Employer matching contribution, percent of match | 4% | ||
Cash contributions | $ 2,400,000 | $ 2,300,000 | $ 2,300,000 |
Vesting service period (in years) | 3 years |
RELATED PARTY TRANSACTIONS (Act
RELATED PARTY TRANSACTIONS (Activity and Balance of Related Party Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Notes Receivable, Related Parties [Roll Forward] | |||
Balance at the beginning of year | $ 25,915 | $ 21,112 | $ 22,312 |
New loans and disbursements | 9,706 | 8,233 | 17,896 |
Repayments | (2,829) | (3,430) | (19,096) |
Balance at the end of year | $ 32,792 | $ 25,915 | $ 21,112 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Professional services purchased from related party | $ 4.3 | $ 5 | $ 3.2 |
Subsidiaries | Equity Investment Commitment | |||
Related Party Transaction [Line Items] | |||
Commitment amount | 3 | ||
Investment in partnership | $ 2.4 | $ 1.8 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Examination [Line Items] | |||
Statutory tax rate (as a percent) | 37.50% | ||
Tax-exempt interest income | $ 26,300 | $ 14,400 | $ 15,200 |
Effective tax rate (as a percent) | 31.90% | 31.90% | 21.62% |
Unrecognized tax benefits | $ 867 | $ 798 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 69 | 70 | |
Net increase in unrecognized tax benefit | 69 | ||
Valuation allowance | 9,143 | 9,645 | |
Deferred tax asset, net | 55,485 | 99,063 | |
Increase (decrease) in valuation allowance | (502) | ||
International Banking Entity | |||
Income Tax Examination [Line Items] | |||
Tax-exempt interest income | $ 4,400 | $ 9,500 | $ 4,100 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense (benefit) | $ 16,740 | $ 4,836 | $ (7,347) |
Deferred income tax expense | 61,126 | 63,616 | 27,846 |
Total income tax expense | $ 77,866 | $ 68,452 | $ 20,499 |
INCOME TAXES (Effective Income
INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense at statutory rates | $ 91,539 | $ 80,476 | $ 35,567 |
Tax of exempt income, net | (11,523) | (9,489) | (7,272) |
Disallowed net operating loss carryover | (267) | (179) | 202 |
Change in valuation allowance | (502) | 803 | 2,267 |
Unrecognized tax benefits, net | 69 | 70 | (1,941) |
Capital gain at preferential rate | (787) | (3) | (450) |
Tax rate difference (ordinary vs capital) | (247) | (480) | (4,218) |
Bargain purchase gain | 0 | 0 | (2,751) |
Return to provision adjustments | (407) | (933) | (1,099) |
Foreign tax credit | 0 | 187 | 361 |
Other items, net | (9) | (2,000) | (167) |
Total income tax expense | $ 77,866 | $ 68,452 | $ 20,499 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax expense at statutory rates | 37.50% | 37.50% | 37.50% |
Tax of exempt income, net | (4.72%) | (4.42%) | (7.67%) |
Disallowed net operating loss carryover | (0.11%) | (0.08%) | 0.21% |
Change in valuation allowance | (0.21%) | 0.37% | 2.39% |
Unrecognized tax benefits, net | 0.03% | 0.03% | (2.05%) |
Capital gain at preferential rate | (0.32%) | 0% | (0.47%) |
Tax rate difference (ordinary vs capital) | (0.10%) | (0.22%) | (4.45%) |
Bargain purchase gain | 0% | 0% | (2.90%) |
Return to provision adjustments | (0.17%) | (0.43%) | (1.16%) |
Foreign tax credit | 0% | 0.09% | 0.38% |
Other items, net | 0% | (0.94%) | (0.16%) |
Income tax expense | 31.90% | 31.90% | 21.62% |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 798 | $ 728 | $ 2,668 |
Additions for tax positions of prior years | 69 | 70 | 50 |
Reduction for tax positions as a result of lapse of statute of limitations or new information resulting in a change in assessment | 0 | 0 | (1,990) |
Balance at end of year | $ 867 | $ 798 | $ 728 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax asset: | ||
Allowance for credit losses and other reserves | $ 57,273 | $ 61,009 |
Scotiabank PR discount | 1,453 | 2,053 |
Loans and other real estate valuation adjustment | 2,313 | 3,660 |
Deferred loan charge-offs | 72,376 | 115,661 |
Net operating loss carry forwards | 9,022 | 8,460 |
Alternative minimum tax | 14,467 | 15,385 |
Unrealized net loss included in other comprehensive income | 0 | 301 |
Unrealized net loss on available-for-sale securities | 16,422 | 0 |
Goodwill | 10,252 | 16,961 |
Acquired portfolio | 45,761 | 53,687 |
Other assets allowances | 1,538 | 929 |
Other deferred tax assets | 16,570 | 20,291 |
Total gross deferred tax asset | 247,447 | 298,397 |
Less: valuation allowance | (9,143) | (9,645) |
Net gross deferred tax assets | 238,304 | 288,752 |
Deferred tax liability: | ||
Acquired loans tax basis | (137,195) | (137,402) |
FDIC-assisted Eurobank acquisition, net | (5,760) | (6,636) |
Customer deposit and customer relationship intangibles | (7,314) | (10,324) |
Building valuation adjustment | (6,540) | (6,976) |
Unrealized net gain on available-for-sale securities | 0 | (1,572) |
Unrealized net loss included in other comprehensive income | (152) | 0 |
Servicing asset | (16,041) | (15,311) |
Other deferred tax liabilities | (9,817) | (11,468) |
Total gross deferred tax liabilities | (182,819) | (189,689) |
Net deferred tax asset | $ 55,485 | $ 99,063 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
OFG Bancorp | ||
Amount | ||
Actual - Total capital to risk-weighted assets | $ 1,132,658 | $ 1,086,897 |
Actual - Tier 1 capital to risk-weighted assets | 1,037,385 | 999,284 |
Actual - Common equity tier 1 capital to risk-weighted assets | 1,037,385 | 964,284 |
Actual - Tier 1 capital to average total assets | 1,037,385 | 999,284 |
Minimum Capital Requirement - Total capital to risk-weighted assets | 798,574 | 735,512 |
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets | 646,465 | 595,414 |
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets | 532,383 | 490,341 |
Minimum Capital Requirement - Tier 1 capital to average total assets | 400,445 | 412,359 |
Minimum to be Well Capitalized - Total capital to risk-weighted assets | 760,547 | 700,488 |
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets | 608,437 | 560,390 |
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets | 494,355 | 455,317 |
Minimum to be Well Capitalized - Tier 1 capital to average total assets | $ 500,557 | $ 515,449 |
Ratio | ||
Actual - total capital to risk-weighted assets | 0.1489 | 0.1552 |
Actual - Tier 1 capital to risk-weighted assets | 0.1364 | 0.1427 |
Actual - Common equity tier 1 capital to risk-weighted assets | 13.64% | 13.77% |
Actual - Tier 1 capital to average total assets | 0.1036 | 0.0969 |
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 | 7% | 7% |
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 | 6.50% | 6.50% |
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 | $ 1,028,126 | $ 995,549 |
Actual - Tier 1 capital to risk-weighted assets | 933,494 | 908,717 |
Actual - Common equity tier 1 capital to risk-weighted assets | 933,494 | 908,717 |
Actual - Tier 1 capital to average total assets | 933,494 | 908,717 |
Minimum Capital Requirement - Total capital to risk-weighted assets | 793,124 | 728,867 |
Minimum Capital Requirement - Tier 1 capital to risk-weighted assets | 642,053 | 590,035 |
Minimum Capital Requirement - Common equity tier 1 capital to risk-weighted assets | 528,749 | 485,911 |
Minimum Capital Requirement - Tier 1 capital to average total assets | 396,525 | 409,855 |
Minimum to be Well Capitalized - Total capital to risk-weighted assets | 755,356 | 694,159 |
Minimum to be Well Capitalized - Tier 1 capital to risk-weighted assets | 604,285 | 555,327 |
Minimum to be Well Capitalized - Common equity tier 1 capital to risk-weighted assets | 490,981 | 451,203 |
Minimum to be Well Capitalized - Tier 1 capital to average total assets | $ 495,656 | $ 512,319 |
Ratio | ||
Actual - total capital to risk-weighted assets | 0.1361 | 0.1434 |
Actual - Tier 1 capital to risk-weighted assets | 0.1236 | 0.1309 |
Actual - Common equity tier 1 capital to risk-weighted assets | 12.36% | 13.09% |
Actual - Tier 1 capital to average total assets | 0.0942 | 0.0887 |
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 | 7% | 7% |
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 | 6.50% | 6.50% |
Minimum to be Well Capitalized - Tier 1 capital to average total assets | 0.0500 | 0.0500 |
EQUITY-BASED COMPENSATION PLA_2
EQUITY-BASED COMPENSATION PLAN (Equity-Based Compensation Plan) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number Of Options | |||
Number of options - Beginning of period (in shares) | 338,494 | 481,444 | 634,294 |
Number of options - Options exercised (in shares) | (103,544) | (140,850) | (119,500) |
Number of options - Options forfeited (in shares) | 0 | (2,100) | (33,350) |
Number of options - End of period (in shares) | 234,950 | 338,494 | 481,444 |
Weighted Average Exercise Price | |||
Weighted Average Exercise Price - Beginning of period (in dollars per share) | $ 15.76 | $ 15.10 | $ 14.60 |
Weighted Average Exercise Price - Options exercised (in dollars per share) | 14.34 | 13.51 | 12.36 |
Weighted Average Exercise Price - Options forfeited (in dollars per share) | 0 | 16.55 | 15.42 |
Weighted Average Exercise Price - End of period (in dollars per share) | $ 16.38 | $ 15.76 | $ 15.10 |
EQUITY-BASED COMPENSATION PLA_3
EQUITY-BASED COMPENSATION PLAN (Range of Exercise Prices and Weighted Average Remaining Contractual Life) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Number of options, outstanding (in shares) | 234,950 | 338,494 | 481,444 | 634,294 |
Aggregate intrinsic value, outstanding | $ 2,626,986 | |||
Weighted average exercise price, outstanding (in dollars per share) | $ 16.38 | $ 15.76 | $ 15.10 | $ 14.60 |
Weighted average contractual life remaining, outstanding (in years) | 1 year 3 months 18 days | |||
Number of options, exercisable (in shares) | 234,950 | |||
Aggregate intrinsic value, exercisable | $ 2,626,986 | |||
Weighted average exercise price, exercisable (in dollars per share) | $ 16.38 | |||
14.09 to 16.90 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of exercise prices, minimum (in dollars per share) | 14.09 | |||
Range of exercise prices, maximum (in dollars per share) | $ 16.90 | |||
Number of options, outstanding (in shares) | 139,700 | |||
Weighted average exercise price, outstanding (in dollars per share) | $ 15.66 | |||
Weighted average contractual life remaining, outstanding (in years) | 1 year 1 month 6 days | |||
Number of options, exercisable (in shares) | 139,700 | |||
Weighted average exercise price, exercisable (in dollars per share) | $ 15.66 | |||
16.91 to 19.71 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of exercise prices, minimum (in dollars per share) | 16.91 | |||
Range of exercise prices, maximum (in dollars per share) | $ 19.71 | |||
Number of options, outstanding (in shares) | 95,250 | |||
Weighted average exercise price, outstanding (in dollars per share) | $ 17.44 | |||
Weighted average contractual life remaining, outstanding (in years) | 1 year 7 months 6 days | |||
Number of options, exercisable (in shares) | 95,250 | |||
Weighted average exercise price, exercisable (in dollars per share) | $ 17.44 |
EQUITY-BASED COMPENSATION PLA_4
EQUITY-BASED COMPENSATION PLAN (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of options granted (in shares) | 0 | 0 | 0 |
Total unrecognized compensation cost related to non-vested restricted units | $ 4.8 | ||
Weighted-average period of recognition for total unrecognized compensation cost related to non-vested restricted units (in years) | 1 year 8 months 12 days |
EQUITY-BASED COMPENSATION PLA_5
EQUITY-BASED COMPENSATION PLAN (Schedule of the Restricted Units' Activity Under the Omnibus Plan) (Details) - Omnibus Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Units | |||
Beginning of year (in shares) | 511,740 | 529,770 | 379,150 |
Restricted units granted (in shares) | 178,281 | 205,440 | 257,850 |
Restricted units lapsed (in shares) | (277,866) | (218,188) | (102,525) |
Restricted units forfeited (in shares) | (3,323) | (5,282) | (4,705) |
End of year (in shares) | 408,832 | 511,740 | 529,770 |
Weighted Average Grant Date Fair Value | |||
Beginning of year (in dollars per share) | $ 19.35 | $ 15.58 | $ 15.32 |
Restricted units granted (in dollars per share) | 27.89 | 18.76 | 16.82 |
Restricted units lapsed (in dollars per share) | 17.08 | 13.85 | 14.74 |
Restricted units forfeited (in dollars per share) | 22.89 | 19.38 | 15.93 |
End of year (in dollars per share) | $ 22.27 | $ 19.35 | $ 15.58 |
STOCKHOLDERS_ EQUITY (Narrative
STOCKHOLDERS’ EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock | $ 59,885 | $ 59,885 | ||
Legal surplus | 133,900 | 117,700 | ||
Transfer to legal surplus | 16,200 | 14,400 | ||
Stock repurchase program, authorized amount | $ 100,000 | $ 50,000 | $ 70,000 | $ 100,000 |
Shares repurchased during period (in shares) | 2,351,868 | 2,052,429 | 175,000 | |
Shares purchased (in shares) | 0 | 0 | 0 | |
Common shares repurchased | $ 64,110 | $ 49,872 | $ 2,226 | |
Share repurchased, average price per share (in dollars per share) | $ 27.26 | $ 24.29 | $ 12.69 | |
Stock repurchase program, remaining number of shares authorized to be repurchased (in shares) | 1,302,242 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 35,900 | |||
Share price (in dollars per share) | $ 27.56 | |||
Preferred stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemption of preferred stock | $ 92,000 | |||
Preferred stock, redemption price (in dollars per share) | $ 25 | |||
Common stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Accumulated common stock issuance costs charged against paid in capital | $ 13,600 | $ 13,600 |
STOCKHOLDERS_ EQUITY (Activity
STOCKHOLDERS’ EQUITY (Activity of Common Shares Held in Treasury) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
Beginning of period (in shares) | 10,248,882 | 8,498,163 | 8,486,278 |
Common shares used upon lapse of restricted stock units and options (in shares) | (296,891) | (301,710) | (163,115) |
Common shares repurchased as part of the stock repurchase programs (in shares) | 2,351,868 | 2,052,429 | 175,000 |
End of period (in shares) | 12,303,859 | 10,248,882 | 8,498,163 |
Dollar Amount | |||
Beginning of period | $ 150,572 | $ 102,949 | $ 102,339 |
Common shares used upon lapse of restricted stock units and options | (3,547) | (2,249) | (1,616) |
Common shares repurchased as part of the stock repurchase programs | 64,110 | 49,872 | 2,226 |
End of period | $ 211,135 | $ 150,572 | $ 102,949 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Accumulated Comprehensive Income, Net of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gain (loss) on cash flow hedges | $ 1,210 | $ 908 | $ (804) |
Accumulated other comprehensive (loss) income, net of income taxes | (93,409) | 5,160 | |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive (loss) income, net of income taxes | (93,409) | 5,160 | |
Net unrealized gain (loss) on securities available-for-sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized (loss) gain on securities available-for-sale | (110,036) | 7,292 | |
Income tax effect of unrealized loss (gain) on securities available-for-sale | 16,373 | (1,629) | |
Net unrealized (loss) gain on securities available-for-sale | (93,663) | 5,663 | |
Net unrealized gain (loss) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gain (loss) on cash flow hedges | 406 | (804) | |
Income tax effect of unrealized (gain) loss on cash flow hedges | (152) | 301 | |
Net unrealized gain (loss) on cash flow hedges | $ 254 | $ (503) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Changes in Other Comprehensive Income by Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | $ 1,069,160 | $ 1,085,975 | |
Other comprehensive (loss) income before reclassifications | (99,063) | (7,528) | $ 5,312 |
Amounts reclassified out of accumulated other comprehensive loss | 494 | 1,666 | 6,718 |
Other comprehensive (loss) income | (98,569) | (5,862) | 12,030 |
Balance at end of year | 1,042,406 | 1,069,160 | 1,085,975 |
Net unrealized gain (loss) on securities available-for-sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 5,663 | 12,092 | (441) |
Other comprehensive (loss) income before reclassifications | (99,087) | (6,454) | 7,803 |
Amounts reclassified out of accumulated other comprehensive loss | (239) | 25 | 4,730 |
Other comprehensive (loss) income | (99,326) | (6,429) | 12,533 |
Balance at end of year | (93,663) | 5,663 | 12,092 |
Net unrealized gain (loss) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | (503) | (1,070) | (567) |
Other comprehensive (loss) income before reclassifications | 24 | (1,074) | (2,491) |
Amounts reclassified out of accumulated other comprehensive loss | 733 | 1,641 | 1,988 |
Other comprehensive (loss) income | 757 | 567 | (503) |
Balance at end of year | 254 | (503) | (1,070) |
Accumulated other comprehensive (loss) income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of year | 5,160 | 11,022 | (1,008) |
Balance at end of year | $ (93,409) | $ 5,160 | $ 11,022 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Reclassifications Out of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest expense | $ 33,493 | $ 41,829 | $ 64,915 |
Income tax expense | 77,866 | 68,452 | 20,499 |
Net income | 166,239 | 146,151 | 74,327 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain on sale of investments | (247) | 19 | 4,728 |
Net income | 494 | 1,666 | 6,718 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gain (loss) on securities available-for-sale | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense | 8 | 6 | 2 |
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Contract | Net unrealized gain (loss) on cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest expense | $ 733 | $ 1,641 | $ 1,988 |
EARNINGS PER COMMON SHARE (Sche
EARNINGS PER COMMON SHARE (Schedule of Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 166,239 | $ 146,151 | $ 74,327 |
Income available to common shareholders | $ 166,239 | $ 144,896 | $ 67,815 |
Average common shares outstanding (in shares) | 48,033 | 50,956 | 51,358 |
Average potential common shares-options (in shares) | 403 | 414 | 197 |
Total weighted average common shares outstanding and equivalents (in shares) | 48,436 | 51,370 | 51,555 |
Earnings per common share - basic (in dollars per share) | $ 3.46 | $ 2.85 | $ 1.32 |
Earnings per common share - diluted (in dollars per share) | $ 3.44 | $ 2.81 | $ 1.32 |
Preferred Non-Convertible Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Non-convertible preferred stock (Series A, B, and D) | $ 0 | $ (1,255) | $ (6,512) |
EARNINGS PER COMMON SHARE (Narr
EARNINGS PER COMMON SHARE (Narrative) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Weighted average stock options with an anti dilutive effect excluded from calculation of earnings per share (in shares) | 1,279 | 3,175 | 7,481 | ||
Quarterly common stock cash dividend (in dollars per share) | $ 0.20 | $ 0.12 | $ 0.70 | $ 0.40 | $ 0.28 |
GUARANTEES (Narrative) (Details
GUARANTEES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantor Obligations [Line Items] | |||
Acquired standby letters of credit and financial guarantees | $ 24,700 | $ 25,200 | |
Repurchased loans not subject to credit recourse provision | 24,200 | 38,900 | |
Gain (loss) from early extinguishment of debt | 42 | (1,481) | $ (63) |
Amount of serviced loans | 5,800,000 | 5,700,000 | |
Funds advanced to investors under servicing agreements | 7,800 | 12,900 | |
Recourse | |||
Guarantor Obligations [Line Items] | |||
Unpaid principal balance of residential subject loans subject to credit recourse | 110,891 | 121,778 | |
Repurchased GNMA | 1,500 | 3,100 | 481 |
Liability for estimated credit losses to loans sold with credit recourse | 147 | 294 | |
Gain (loss) from early extinguishment of debt | 148 | (157) | 658 |
Nonrecourse | |||
Guarantor Obligations [Line Items] | |||
Gain (loss) from early extinguishment of debt | 281 | (4,300) | $ (2,200) |
Loan serviced under representation warranties | Nonrecourse | |||
Guarantor Obligations [Line Items] | |||
Unpaid principal balance of residential subject loans subject to credit recourse | $ 1,400 | $ 3,400 |
GUARANTEES (Changes in Liabilit
GUARANTEES (Changes in Liability of Estimated Loss from Credit Recourse Agreement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance at beginning of year | $ 294 | $ 218 | $ 985 |
Net recoveries (charge-offs/terminations) | (147) | 76 | (767) |
Balance at end of year | $ 147 | $ 294 | $ 218 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Summarized Credit-Related Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 1,403,118 | $ 1,365,273 |
Commercial letters of credit | 1,082 | 48,196 |
Standby letters of credit and financial guarantees | 24,749 | 25,203 |
Recourse | ||
Other Commitments [Line Items] | ||
Loans sold with recourse | $ 110,891 | $ 121,778 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Allowance for credit losses for off-balance sheet | $ 734 | $ 1,000 |
Other non-credit commitments | 21,500 | 8,900 |
Contingency loss accrued liability | 2,400 | 7,000 |
Technology Commitments | ||
Other Commitments [Line Items] | ||
Commitments for capital expenditures in technology | $ 8,600 | $ 15,400 |
OPERATING LEASES (Operating Lea
OPERATING LEASES (Operating Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |||
Lease costs | $ 10,467 | $ 11,417 | $ 13,233 |
Variable lease costs | 1,529 | 1,881 | 2,133 |
Short-term lease cost | 565 | 859 | 800 |
Lease income | (226) | (442) | (499) |
Total lease cost | $ 12,335 | $ 13,715 | $ 15,667 |
OPERATING LEASES (Operating L_2
OPERATING LEASES (Operating Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee Disclosure [Abstract] | ||
Right-of-use assets | $ 25,363 | $ 28,846 |
Lease Liabilities | $ 27,370 | $ 30,498 |
OPERATING LEASES (Operating L_3
OPERATING LEASES (Operating Lease Terms) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining lease term (in years) | 5 years 1 month 6 days | 5 years 7 months 6 days |
Weighted-average discount rate (percentage) | 6.80% | 6.60% |
OPERATING LEASES (Future Minimu
OPERATING LEASES (Future Minimum Payments for Operating Leases and Present Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee Disclosure [Abstract] | ||
2023 | $ 9,326 | |
2024 | 7,134 | |
2025 | 5,127 | |
2026 | 3,106 | |
2027 | 2,290 | |
Thereafter | 5,773 | |
Total lease payments | 32,756 | |
Less imputed interest | 5,386 | |
Present value of lease liabilities | $ 27,370 | $ 30,498 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers into Level 3 | $ 1.5 | ||
Transfers for financial instruments measured at fair value on a recurring basis | $ 0 | $ 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of security categorized as other debt | 1 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities on Recurring and Non-Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available-for-sale | $ 1,412,776 | $ 510,713 | ||
Trading securities | 9 | 20 | ||
Money market investments | $ 4,161 | $ 8,952 | $ 11,908 | |
DerivativeAssetStatementOfFinancialPositionExtensibleEnumerationNotDisclosedFlag | Derivative assets | Derivative assets | ||
Derivative assets | $ 406 | $ 1 | ||
Servicing assets | $ 50,921 | $ 48,973 | 47,295 | $ 50,779 |
DerivativeLiabilityCurrentStatementOfFinancialPositionExtensibleEnumerationNotDisclosedFlag | Derivative liabilities | Derivative liabilities | ||
Foreclosed real estate | $ 11,214 | $ 15,039 | $ 11,596 | $ 29,909 |
Other repossessed assets | 4,617 | 1,945 | ||
Recurring fair value measurements | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available-for-sale | 1,412,776 | 510,713 | ||
Trading securities | 9 | 20 | ||
Money market investments | 4,161 | 8,952 | ||
Derivative assets | 406 | 1 | ||
Servicing assets | 50,921 | 48,973 | ||
Derivative liabilities | (804) | |||
Total | 1,468,273 | 567,855 | ||
Recurring fair value measurements | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available-for-sale | 309,133 | 10,825 | ||
Trading securities | 0 | 0 | ||
Money market investments | 4,161 | 8,952 | ||
Derivative assets | 0 | 0 | ||
Servicing assets | 0 | 0 | ||
Derivative liabilities | 0 | |||
Total | 313,294 | 19,777 | ||
Recurring fair value measurements | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available-for-sale | 1,103,237 | 498,358 | ||
Trading securities | 9 | 20 | ||
Money market investments | 0 | 0 | ||
Derivative assets | 406 | 1 | ||
Servicing assets | 0 | 0 | ||
Derivative liabilities | (804) | |||
Total | 1,103,652 | 497,575 | ||
Recurring fair value measurements | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available-for-sale | 406 | 1,530 | ||
Trading securities | 0 | 0 | ||
Money market investments | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Servicing assets | 50,921 | 48,973 | ||
Derivative liabilities | 0 | |||
Total | 51,327 | 50,503 | ||
Non-recurring fair value measurements | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent loans | 8,805 | 10,233 | ||
Foreclosed real estate | 11,214 | 15,039 | ||
Other repossessed assets | 4,617 | 1,945 | ||
Mortgage loans held for sale | 19,499 | 51,096 | ||
Other loans held for sale | 21,088 | 31,566 | ||
Total | 65,223 | 109,879 | ||
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 | 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 | 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 | 8,805 | 10,233 | ||
Foreclosed real estate | 11,214 | 15,039 | ||
Other repossessed assets | 4,617 | 1,945 | ||
Mortgage loans held for sale | 19,499 | 51,096 | ||
Other loans held for sale | 21,088 | 31,566 | ||
Total | $ 65,223 | $ 109,879 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Reconciliation of Assets and Liabilities Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Transfer from Level 2 | $ 1,500 | ||
FairValueRecurringBasisUnobservableInputReconciliationAssetGainLossStatementOfIncomeExtensibleListNotDisclosedFlag | Gains included in earnings | Gains included in earnings | |
FairValueRecurringBasisUnobservableInputReconciliationAssetGainLossStatementOfOtherComprehensiveIncomeExtensibleListNotDisclosedFlag | 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 year | $ 50,503 | $ 47,295 | |
New instruments acquired | 4,374 | 6,089 | |
Transfer from Level 2 | 0 | 1,500 | |
Principal repayments and amortization | (5,312) | (6,738) | |
Instrument converted to equity security | (1,581) | 0 | |
Gains (losses) included in earnings | 3,262 | 2,327 | |
Gains included in other comprehensive income | 81 | 30 | |
Balance at end of year | 51,327 | 50,503 | $ 47,295 |
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 year | 1,530 | 0 | |
New instruments acquired | 376 | 0 | |
Transfer from Level 2 | 0 | 1,500 | |
Principal repayments and amortization | 0 | 0 | |
Instrument converted to equity security | (1,581) | 0 | |
Gains (losses) included in earnings | 0 | 0 | |
Gains included in other comprehensive income | 81 | 30 | |
Balance at end of year | 406 | 1,530 | 0 |
Recurring fair value measurements | Level 3 | Servicing Assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning year | 48,973 | 47,295 | 50,779 |
New instruments acquired | 3,998 | 6,089 | 2,394 |
Transfer from Level 2 | 0 | 0 | 0 |
Principal repayments and amortization | (5,312) | (6,738) | (4,067) |
Instrument converted to equity security | 0 | 0 | 0 |
Gains (losses) included in earnings | 3,262 | 2,327 | (1,811) |
Gains included in other comprehensive income | 0 | 0 | 0 |
Balance at end of year | $ 50,921 | $ 48,973 | $ 47,295 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Qualitative Information for Assets and Liabilities) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Fair Value | ||||
Investment securities available-for-sale | $ 1,412,776 | $ 510,713 | ||
Servicing assets | 50,921 | 48,973 | $ 47,295 | $ 50,779 |
Foreclosed real estate | 11,214 | 15,039 | $ 11,596 | $ 29,909 |
Other repossessed assets | $ 4,617 | $ 1,945 | ||
Minimum | ||||
Fair Value | ||||
Discount rate | 10% | 10% | 10% | |
Unobservable Input | ||||
Constant prepayment rate | 3.43% | 3.90% | 5.02% | |
Maximum | ||||
Fair Value | ||||
Discount rate | 15.50% | 15.50% | 15.50% | |
Unobservable Input | ||||
Constant prepayment rate | 21.20% | 24.48% | 35.22% | |
Level 3 | Cash flow valuation | Other debt securities available for sale | ||||
Fair Value | ||||
Investment securities available-for-sale | $ 406 | $ 1,530 | ||
Level 3 | Cash flow valuation | Other debt securities available for sale | Recovery Rate | ||||
Unobservable Input | ||||
Other debt securities, measurement input | 0.3473 | 0.3308 | ||
Level 3 | Cash flow valuation | Servicing Assets | ||||
Fair Value | ||||
Servicing assets | $ 50,921 | $ 48,973 | ||
Level 3 | Cash flow valuation | Minimum | Other debt securities available for sale | ||||
Unobservable Input | ||||
Credit rating | Baa1 | Baa1 | ||
Level 3 | Cash flow valuation | Minimum | Other debt securities available for sale | Probability of Default Rate | ||||
Unobservable Input | ||||
Other debt securities, measurement input | 0.0015 | 0.0016 | ||
Level 3 | Cash flow valuation | Minimum | Servicing Assets | ||||
Fair Value | ||||
Discount rate | 10% | 10% | ||
Unobservable Input | ||||
Constant prepayment rate | 3.43% | 3.90% | ||
Level 3 | Cash flow valuation | Maximum | Other debt securities available for sale | ||||
Unobservable Input | ||||
Credit rating | Baa3 | Baa3 | ||
Level 3 | Cash flow valuation | Maximum | Other debt securities available for sale | Probability of Default Rate | ||||
Unobservable Input | ||||
Other debt securities, measurement input | 0.0212 | 0.0228 | ||
Level 3 | Cash flow valuation | Maximum | Servicing Assets | ||||
Fair Value | ||||
Discount rate | 15.50% | 15.50% | ||
Unobservable Input | ||||
Constant prepayment rate | 21.20% | 24.48% | ||
Level 3 | Cash flow valuation | Weighted Average | Other debt securities available for sale | ||||
Unobservable Input | ||||
Credit rating | Baa2 | Baa2 | ||
Level 3 | Cash flow valuation | Weighted Average | Other debt securities available for sale | Probability of Default Rate | ||||
Unobservable Input | ||||
Other debt securities, measurement input | 0.0015 | 0.0035 | ||
Level 3 | Cash flow valuation | Weighted Average | Other debt securities available for sale | Recovery Rate | ||||
Unobservable Input | ||||
Other debt securities, measurement input | 0.3473 | 0.3308 | ||
Level 3 | Cash flow valuation | Weighted Average | Servicing Assets | ||||
Fair Value | ||||
Discount rate | 11.45% | 11.47% | ||
Unobservable Input | ||||
Constant prepayment rate | 5.66% | 6.17% | ||
Level 3 | Fair value of property or collateral | Collateral dependent loans | ||||
Fair Value | ||||
Collateral dependent loans | $ 8,805 | $ 10,233 | ||
Level 3 | Fair value of property or collateral | Foreclosed real estate | ||||
Fair Value | ||||
Foreclosed real estate | 11,214 | 15,039 | ||
Level 3 | Fair value of property or collateral | Other repossessed assets | ||||
Fair Value | ||||
Other repossessed assets | 4,617 | 1,945 | ||
Level 3 | Fair value of property or collateral | Mortgage loans held for sale | ||||
Fair Value | ||||
Mortgage loans held for sale | $ 19,499 | $ 51,096 | ||
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 | 10.20% | 10.20% | ||
Level 3 | Fair value of property or collateral | Minimum | Other repossessed assets | ||||
Unobservable Input | ||||
Estimated net realizable value | 22% | 39% | ||
Level 3 | Fair value of property or collateral | Minimum | Mortgage loans held for sale | ||||
Unobservable Input | ||||
Estimated net realizable value | 83.25% | 98.43% | ||
Level 3 | Fair value of property or collateral | Maximum | Collateral dependent loans | ||||
Unobservable Input | ||||
Appraised value less disposition costs | 51.20% | 30.20% | ||
Level 3 | Fair value of property or collateral | Maximum | Foreclosed real estate | ||||
Unobservable Input | ||||
Appraised value less disposition costs | 33.20% | 30.20% | ||
Level 3 | Fair value of property or collateral | Maximum | Other repossessed assets | ||||
Unobservable Input | ||||
Estimated net realizable value | 80% | 80% | ||
Level 3 | Fair value of property or collateral | Maximum | Mortgage loans held for sale | ||||
Unobservable Input | ||||
Estimated net realizable value | 102.43% | 106% | ||
Level 3 | Fair value of property or collateral | Weighted Average | Collateral dependent loans | ||||
Unobservable Input | ||||
Appraised value less disposition costs | 17.11% | 20.20% | ||
Level 3 | Fair value of property or collateral | Weighted Average | Foreclosed real estate | ||||
Unobservable Input | ||||
Appraised value less disposition costs | 11.81% | 12.54% | ||
Level 3 | Fair value of property or collateral | Weighted Average | Other repossessed assets | ||||
Unobservable Input | ||||
Estimated net realizable value | 58.49% | 60.54% | ||
Level 3 | Fair value of property or collateral | Weighted Average | Mortgage loans held for sale | ||||
Unobservable Input | ||||
Estimated net realizable value | 71.86% | 124.41% | ||
Level 3 | Bids or sales contract prices | Commercial | ||||
Fair Value | ||||
Other loans held for sale | $ 21,088 | $ 31,566 | ||
Level 3 | Bids or sales contract prices | Minimum | Commercial | ||||
Unobservable Input | ||||
Estimated market value | 100% | 100% | ||
Level 3 | Bids or sales contract prices | Maximum | Commercial | ||||
Unobservable Input | ||||
Estimated market value | 103.20% | 103.20% | ||
Level 3 | Bids or sales contract prices | Weighted Average | Commercial | ||||
Unobservable Input | ||||
Estimated market value | 74.65% | 42.54% |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Estimated Fair Value and Carrying Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||||
Restricted cash | $ 157 | $ 175 | $ 1,375 | |
Investment securities available-for-sale | 1,412,776 | 510,713 | ||
Trading securities | 9 | 20 | ||
Investment securities held-to-maturity | 469,186 | 363,653 | ||
Derivative assets | 406 | 1 | ||
Total loans (including loans held-for-sale) | 6,682,649 | 6,246,649 | ||
Servicing assets | 50,921 | 48,973 | $ 47,295 | $ 50,779 |
Level 1 | Fair Value | ||||
Financial Assets: | ||||
Cash and cash equivalents | 550,307 | 2,023,475 | ||
Restricted cash | 157 | 175 | ||
Investment securities available-for-sale | 309,133 | 10,825 | ||
Level 1 | Carrying Value | ||||
Financial Assets: | ||||
Cash and cash equivalents | 550,307 | 2,023,475 | ||
Restricted cash | 157 | 175 | ||
Investment securities available-for-sale | 309,133 | 10,825 | ||
Level 2 | Fair Value | ||||
Financial Assets: | ||||
Investment securities available-for-sale | 1,103,237 | 498,358 | ||
Trading securities | 9 | 20 | ||
Investment securities held-to-maturity | 469,186 | 363,653 | ||
Federal Home Loan Bank (FHLB) stock | 6,005 | 5,966 | ||
Equity securities | 17,662 | 11,612 | ||
Derivative assets | 406 | 1 | ||
Financial Liabilities: | ||||
Derivative liabilities | 0 | 804 | ||
Level 2 | Carrying Value | ||||
Financial Assets: | ||||
Investment securities available-for-sale | 1,103,237 | 498,358 | ||
Trading securities | 9 | 20 | ||
Investment securities held-to-maturity | 535,070 | 367,507 | ||
Federal Home Loan Bank (FHLB) stock | 6,005 | 5,966 | ||
Equity securities | 17,662 | 11,612 | ||
Derivative assets | 406 | 1 | ||
Financial Liabilities: | ||||
Derivative liabilities | 0 | 804 | ||
Level 3 | Fair Value | ||||
Financial Assets: | ||||
Investment securities available-for-sale | 406 | 1,530 | ||
Total loans (including loans held-for-sale) | 6,467,878 | 6,197,347 | ||
Accrued interest receivable | 62,402 | 56,560 | ||
Servicing assets | 50,921 | 48,973 | ||
Accounts receivable and other assets | 61,014 | 88,756 | ||
Financial Liabilities: | ||||
Deposits | 8,556,300 | 8,614,073 | ||
Advances from FHLB | 26,716 | 28,480 | ||
Other borrowings | 318 | 0 | ||
Subordinated capital notes | 0 | 36,084 | ||
Accrued expenses and other liabilities | 124,999 | 96,240 | ||
Level 3 | Carrying Value | ||||
Financial Assets: | ||||
Investment securities available-for-sale | 406 | 1,530 | ||
Total loans (including loans held-for-sale) | 6,723,236 | 6,329,311 | ||
Accrued interest receivable | 62,402 | 56,560 | ||
Servicing assets | 50,921 | 48,973 | ||
Accounts receivable and other assets | 61,014 | 88,756 | ||
Financial Liabilities: | ||||
Deposits | 8,568,364 | 8,603,118 | ||
Advances from FHLB | 26,716 | 28,488 | ||
Other borrowings | 318 | 0 | ||
Subordinated capital notes | 0 | 36,083 | ||
Accrued expenses and other liabilities | $ 124,999 | $ 96,240 |
BUSINESS SEGMENTS (Results of O
BUSINESS SEGMENTS (Results of Operations and Selected Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 515,573 | $ 449,199 | $ 473,347 |
Interest expense | (33,493) | (41,829) | (64,915) |
Net interest income | 482,080 | 407,370 | 408,432 |
Provision for (recapture of) credit losses | 24,119 | 221 | 92,672 |
Non-interest income | 131,690 | 133,210 | 124,352 |
Non-interest expenses | (345,546) | (325,756) | (345,286) |
Intersegment revenue | 0 | 0 | 0 |
Intersegment expenses | 0 | 0 | 0 |
Income before income taxes | 244,105 | 214,603 | 94,826 |
Income tax expense | 77,866 | 68,452 | 20,499 |
Net income | 166,239 | 146,151 | 74,327 |
Total assets | 9,818,780 | 9,899,720 | 9,826,011 |
Total | |||
Segment Reporting Information [Line Items] | |||
Interest income | 522,153 | 449,477 | 473,347 |
Interest expense | (40,073) | (42,107) | (64,915) |
Net interest income | 482,080 | 407,370 | 408,432 |
Provision for (recapture of) credit losses | 24,119 | 221 | 92,672 |
Non-interest income | 131,690 | 133,210 | 124,352 |
Non-interest expenses | (345,546) | (325,756) | (345,286) |
Income before income taxes | 244,105 | 214,603 | 94,826 |
Income tax expense | 77,866 | 68,452 | 20,499 |
Net income | 166,239 | 146,151 | 74,327 |
Total assets | 10,803,401 | 10,968,419 | 10,947,248 |
Total | Intersubsegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Intersegment revenue | 2,187 | 2,355 | 2,443 |
Intersegment expenses | (2,187) | (2,355) | (2,443) |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Interest income | (6,580) | (278) | 0 |
Interest expense | 6,580 | 278 | 0 |
Net interest income | 0 | 0 | 0 |
Provision for (recapture of) credit losses | 0 | 0 | 0 |
Non-interest income | 0 | 0 | 0 |
Non-interest expenses | 0 | 0 | 0 |
Intersegment revenue | (2,187) | (2,355) | (2,443) |
Intersegment expenses | 2,187 | 2,355 | 2,443 |
Income before income taxes | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Net income | 0 | 0 | 0 |
Total assets | (984,621) | (1,068,699) | (1,121,237) |
Banking | Total | |||
Segment Reporting Information [Line Items] | |||
Interest income | 465,177 | 432,375 | 462,493 |
Interest expense | (31,926) | (38,711) | (57,811) |
Net interest income | 433,251 | 393,664 | 404,682 |
Provision for (recapture of) credit losses | 24,111 | 1,342 | 92,237 |
Non-interest income | 98,407 | 98,950 | 87,810 |
Non-interest expenses | (323,125) | (300,568) | (320,997) |
Income before income taxes | 186,609 | 193,059 | 81,701 |
Income tax expense | 77,731 | 68,409 | 15,939 |
Net income | 108,878 | 124,650 | 65,762 |
Total assets | 8,347,767 | 8,041,725 | 8,478,326 |
Banking | Total | Intersubsegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Intersegment revenue | 2,187 | 2,355 | 2,443 |
Intersegment expenses | 0 | 0 | 0 |
Wealth Management | Total | |||
Segment Reporting Information [Line Items] | |||
Interest income | 21 | 30 | 59 |
Interest expense | 0 | 0 | 0 |
Net interest income | 21 | 30 | 59 |
Provision for (recapture of) credit losses | 0 | 0 | 0 |
Non-interest income | 33,481 | 35,625 | 32,043 |
Non-interest expenses | (19,206) | (20,941) | (20,240) |
Income before income taxes | 12,799 | 13,445 | 10,698 |
Income tax expense | 97 | 0 | 4,506 |
Net income | 12,702 | 13,445 | 6,192 |
Total assets | 23,085 | 32,082 | 32,893 |
Wealth Management | Total | Intersubsegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Intersegment revenue | 0 | 0 | 0 |
Intersegment expenses | (1,497) | (1,269) | (1,164) |
Treasury | Total | |||
Segment Reporting Information [Line Items] | |||
Interest income | 56,955 | 17,072 | 10,795 |
Interest expense | (8,147) | (3,396) | (7,104) |
Net interest income | 48,808 | 13,676 | 3,691 |
Provision for (recapture of) credit losses | 8 | (1,121) | 435 |
Non-interest income | (198) | (1,365) | 4,499 |
Non-interest expenses | (3,215) | (4,247) | (4,049) |
Income before income taxes | 44,697 | 8,099 | 2,427 |
Income tax expense | 38 | 43 | 54 |
Net income | 44,659 | 8,056 | 2,373 |
Total assets | 2,432,549 | 2,894,612 | 2,436,029 |
Treasury | Total | Intersubsegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Intersegment revenue | 0 | 0 | 0 |
Intersegment expenses | (690) | (1,086) | (1,279) |
Treasury | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net interest income | $ 470,200 | $ 262,900 | $ 0 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net interest income | $ 482,080 | $ 407,370 | $ 408,432 |
Eliminations | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net interest income | 0 | 0 | 0 |
Eliminations | Treasury | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net interest income | $ 470,200 | $ 262,900 | $ 0 |
BANKING AND FINANCIAL SERVICE_3
BANKING AND FINANCIAL SERVICE REVENUES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Banking service revenues: | |||
Checking accounts fees | $ 8,933 | $ 8,593 | $ 8,577 |
Savings accounts fees | 1,265 | 1,141 | 1,451 |
Electronic banking fees | 54,639 | 55,968 | 47,542 |
Credit life commissions | 724 | 469 | 254 |
Branch service commissions | 1,456 | 1,467 | 1,462 |
Servicing and other loan fees | 3,222 | 3,256 | 2,485 |
International fees | 902 | 794 | 623 |
Miscellaneous income | 20 | 18 | 185 |
Total banking service revenues | 71,161 | 71,706 | 62,579 |
Wealth management revenue: | |||
Insurance income | 15,084 | 14,647 | 13,618 |
Broker fees | 6,793 | 8,213 | 6,828 |
Trust fees | 10,013 | 11,303 | 10,446 |
Retirement plan and administration fees | 745 | 881 | 897 |
Total wealth management revenue | 32,635 | 35,044 | 31,789 |
Mortgage banking activities: | |||
Net servicing fees | 18,258 | 16,818 | 12,120 |
Net gains on sale of mortgage loans and valuation | 3,786 | 10,119 | 4,437 |
Loss on repurchased loans and other | (115) | (4,429) | (53) |
Total mortgage banking activities | 21,929 | 22,508 | 16,504 |
Total banking and financial service revenues | $ 125,725 | $ 129,258 | $ 110,872 |
OFG BANCORP (HOLDING COMPANY _3
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Oriental Bank | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Dividends and interest paid | $ 140 | $ 197 | $ 26.1 |
Oriental Insurance | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Dividends and interest paid | $ 9.5 | $ 11 | $ 9.5 |
OFG BANCORP (HOLDING COMPANY _4
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION (Condensed Statements of Financial Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and due from banks | $ 546,146 | $ 2,014,523 | $ 2,142,294 | |
Deferred tax asset, net | 55,485 | 99,063 | ||
Other assets | 120,912 | 152,845 | ||
Total assets | 9,818,780 | 9,899,720 | 9,826,011 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accrued expenses and other liabilities | 124,999 | 96,240 | ||
Subordinated capital notes | 0 | 36,083 | ||
Total liabilities | 8,776,374 | 8,830,560 | ||
Stockholders’ equity | 1,042,406 | 1,069,160 | 1,085,975 | |
Total liabilities and stockholders’ equity | 9,818,780 | 9,899,720 | ||
Parent Company | ||||
ASSETS | ||||
Cash and due from banks | 82,045 | 46,484 | $ 26,529 | $ 27,932 |
Investment in bank subsidiary, equity method | 938,306 | 1,011,147 | ||
Investment in nonbank subsidiaries, equity method | 32,525 | 35,915 | ||
Advance to investment dealers | 6 | 17,213 | ||
Deferred tax asset, net | 924 | 2,627 | ||
Due from bank subsidiary, net | 44 | 50 | ||
Other assets | 356 | 582 | ||
Total assets | 1,054,206 | 1,114,018 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Dividend payable | 9,513 | 6,010 | ||
Accrued expenses and other liabilities | 2,287 | 2,765 | ||
Subordinated capital notes | 0 | 36,083 | ||
Total liabilities | 11,800 | 44,858 | ||
Stockholders’ equity | 1,042,406 | 1,069,160 | ||
Total liabilities and stockholders’ equity | $ 1,054,206 | $ 1,114,018 |
OFG BANCORP (HOLDING COMPANY _5
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION (Condensed Statement of Operations Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income: | |||
Total income | $ 0 | $ 0 | $ 0 |
Expenses: | |||
Net interest expense | 33,493 | 41,829 | 64,915 |
Total expenses | 0 | 0 | 0 |
Net income | 166,239 | 146,151 | 74,327 |
Parent Company | |||
Income: | |||
Interest income | 977 | 55 | 86 |
Investment trading activities, net and other | 6,022 | 6,765 | 6,583 |
Total income | 6,999 | 6,820 | 6,669 |
Expenses: | |||
Net interest expense | 521 | 1,174 | 1,394 |
Operating expenses | 7,992 | 8,397 | 7,483 |
Total expenses | 8,513 | 9,571 | 8,877 |
Loss before income taxes | (1,514) | (2,751) | (2,208) |
Income tax expense (benefit) | 2,782 | 1,813 | (1,363) |
Loss before earnings of subsidiaries | (4,296) | (4,564) | (845) |
Net income | 166,239 | 146,151 | 74,327 |
Bank subsidiary | |||
Expenses: | |||
Net income | 162,236 | 144,089 | 74,899 |
Nonbank subsidiaries | |||
Expenses: | |||
Net income | $ 8,299 | $ 6,626 | $ 273 |
OFG BANCORP (HOLDING COMPANY _6
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION (Condensed Statement of Comprehensive Income Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Statement of Income Captions [Line Items] | |||
Net income | $ 166,239 | $ 146,151 | $ 74,327 |
Other comprehensive (loss) income before tax: | |||
Other comprehensive (loss) income before taxes | (116,118) | (6,062) | 13,764 |
Income tax effect | 17,549 | 200 | (1,734) |
Other comprehensive (loss) income after taxes | (98,569) | (5,862) | 12,030 |
Comprehensive income | 67,670 | 140,289 | 86,357 |
Parent Company | |||
Condensed Statement of Income Captions [Line Items] | |||
Net income | 166,239 | 146,151 | 74,327 |
Other comprehensive (loss) income before tax: | |||
Other comprehensive (loss) income from bank subsidiary | (98,569) | (5,862) | 12,030 |
Other comprehensive (loss) income before taxes | (98,569) | (5,862) | 12,030 |
Income tax effect | 0 | 0 | 0 |
Other comprehensive (loss) income after taxes | (98,569) | (5,862) | 12,030 |
Comprehensive income | $ 67,670 | $ 140,289 | $ 86,357 |
OFG BANCORP (HOLDING COMPANY _7
OFG BANCORP (HOLDING COMPANY ONLY) FINANCIAL INFORMATION (Condensed Statement of Cash Flows Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 166,239 | $ 146,151 | $ 74,327 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Early extinguishment of debt | (42) | 1,481 | 63 |
Stock-based compensation | 4,185 | 6,245 | 2,170 |
Deferred income tax, net | 61,126 | 63,616 | 27,846 |
Net (increase) decrease in other assets | 35,371 | (9,051) | (7,184) |
Net increase (decrease) in accrued expenses and other liabilities | (34,151) | 18,383 | (17,436) |
Net cash provided by operating activities | 164,456 | 100,044 | 34,960 |
Cash flows from investing activities: | |||
Proceeds from sales of premises and equipment | 4,784 | 570 | 52 |
Additions to premises and equipment | (30,999) | (23,053) | (15,263) |
Net cash (used in) provided by investing activities | (1,512,937) | (182,934) | 757,501 |
Cash flows from financing activities: | |||
Subordinated capital notes | (34,958) | 0 | 0 |
Exercise of stock options and restricted units lapsed, net | (906) | 283 | 583 |
Redemption of preferred stock | 0 | (92,000) | 0 |
Net cash (used in) provided by financing activities | (124,705) | (49,037) | 510,359 |
Net change in cash, cash equivalents and restricted cash | (1,473,186) | (131,927) | 1,302,820 |
Cash and cash equivalents at beginning of year | 2,014,523 | 2,142,294 | |
Cash and cash equivalents at end of year | 546,146 | 2,014,523 | 2,142,294 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 166,239 | 146,151 | 74,327 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Early extinguishment of debt | (42) | 0 | 0 |
Stock-based compensation | 652 | 940 | 2,170 |
Deferred income tax, net | 1,703 | 10 | (2,637) |
Net (increase) decrease in other assets | 18,829 | (13,471) | 12 |
Net increase (decrease) in accrued expenses and other liabilities | (488) | 950 | (486) |
Net cash provided by operating activities | 165,858 | 191,865 | 33,845 |
Cash flows from investing activities: | |||
Net increase in due from bank subsidiary, net | 0 | 0 | (1,984) |
Proceeds from sales of premises and equipment | 0 | 240 | 282 |
Additions to premises and equipment | (233) | (288) | (295) |
Net cash (used in) provided by investing activities | (233) | (9,348) | (12,713) |
Cash flows from financing activities: | |||
Subordinated capital notes | (34,958) | 0 | 0 |
Exercise of stock options and restricted units lapsed, net | (906) | 283 | 583 |
Purchase of treasury stock | (64,110) | (49,872) | (2,226) |
Redemption of preferred stock | 0 | (92,000) | 0 |
Dividends paid | (30,090) | (20,973) | (20,892) |
Net cash (used in) provided by financing activities | (130,064) | (162,562) | (22,535) |
Net change in cash, cash equivalents and restricted cash | 35,561 | 19,955 | (1,403) |
Cash and cash equivalents at beginning of year | 46,484 | 26,529 | 27,932 |
Cash and cash equivalents at end of year | 82,045 | 46,484 | 26,529 |
Bank subsidiary | |||
Cash flows from operating activities: | |||
Net income | 162,236 | 144,089 | 74,899 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in earnings | (162,236) | (144,089) | (74,899) |
Dividends from subsidiary | 140,000 | 197,000 | 26,100 |
Cash flows from investing activities: | |||
Capital contribution to subsidiary | 0 | 0 | (1,703) |
Nonbank subsidiaries | |||
Cash flows from operating activities: | |||
Net income | 8,299 | 6,626 | 273 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in earnings | (8,299) | (6,626) | (273) |
Dividends from subsidiary | 9,500 | 11,000 | 9,531 |
Cash flows from investing activities: | |||
Capital contribution to subsidiary | $ 0 | $ (9,300) | $ (9,013) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Jan. 25, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||||||
Quarterly common stock cash dividend (in dollars per share) | $ 0.20 | $ 0.12 | $ 0.70 | $ 0.40 | $ 0.28 | ||
Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Quarterly common stock cash dividend (in dollars per share) | $ 0.22 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Percentage increase in common stock cash dividend | 10% |
Uncategorized Items - ofg-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |