OFG BANCORPOFG
OFG BANCORP Segments Disclosure
BUSINESS SEGMENTS
OFG segregates its businesses into the following three 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 across various financial parameters, such as net income. OFG’s methodology for allocating non-interest expenses among segments is based on several factors such as revenue, employee headcount, occupied space, dedicated services or time, among others. These factors are reviewed on a periodic basis and may change if the conditions warrant.
Banking includes the Bank’s branches and traditional banking products such as deposits and commercial, consumer, auto, and mortgage loans. Mortgage banking activities are carried out by the Bank’s mortgage banking division, whose principal activity is to originate mortgage loans for OFG’s own portfolio. As part of its mortgage banking activities, OFG may sell loans directly into the secondary market or securitize conforming loans into mortgage-backed securities.
Wealth Management is comprised of the Bank’s trust division, Oriental Financial Services, Oriental Insurance, and OFG Reinsurance. The core operations of this segment are financial planning, securities brokerage services, investment advisory services, insurance, reinsurance, and corporate trust and retirement services.
The Treasury segment encompasses all of OFG’s asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, and borrowings.
The accounting policies of the segments are the same as those referred to in Note 1 – “Summary of Significant Accounting Policies”. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices. Financial results are presented, to the extent practicable, as if each business operated on a standalone basis, and includes expense allocations for corporate services used by the business segments, disclosed as intersegment expenses. Significant expense categories identified by management are disclosed for all segments, even though it may not be significant to a particular segment.
OFG’s chief operating decision maker (“CODM”) is the chief executive officer (“CEO”). The CODM evaluates the performance of the Banking, Wealth Management and Treasury segments primarily based on net income, which guides
resource allocation across segments. The CODM also continuously monitors performance and adjusts as necessary. Additionally, OFG employs a forecasting process to project future performance and resource needs, which are reviewed and updated regularly to ensure alignment with strategic goals.
Following are the results of operations and the selected financial information by operating segment for 2025, 2024 and 2023:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Banking | Wealth Management | Treasury | Total | Eliminations | Consolidated Total | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Interest income | $ | 636,790 | $ | 21 | $ | 149,625 | $ | 786,436 | $ | (5,500) | $ | 780,936 | |||||||||||||||||||||||
| Interest expense | (143,644) | — | (34,325) | (177,969) | 5,500 | (172,469) | |||||||||||||||||||||||||||||
| Net interest income | 493,146 | 21 | 115,300 | 608,467 | — | 608,467 | |||||||||||||||||||||||||||||
Provision for credit losses | (107,453) | — | (60) | (107,513) | — | (107,513) | |||||||||||||||||||||||||||||
| Non-interest income, net | 82,204 | 38,825 | 1,947 | 122,976 | — | 122,976 | |||||||||||||||||||||||||||||
Non-interest expenses [1] | |||||||||||||||||||||||||||||||||||
| Compensation and employee benefits | (150,954) | (10,352) | (1,120) | (162,426) | — | (162,426) | |||||||||||||||||||||||||||||
| Occupancy, equipment and infrastructure costs | (38,583) | (668) | (72) | (39,323) | — | (39,323) | |||||||||||||||||||||||||||||
| Depreciation and amortization of premises and equipment | (20,388) | (50) | (20) | (20,458) | — | (20,458) | |||||||||||||||||||||||||||||
| Electronic banking charges | (47,077) | — | — | (47,077) | — | (47,077) | |||||||||||||||||||||||||||||
| Information technology expenses | (26,616) | (190) | — | (26,806) | — | (26,806) | |||||||||||||||||||||||||||||
| Professional and service fees | (20,680) | (2,898) | (127) | (23,705) | — | (23,705) | |||||||||||||||||||||||||||||
| Loan servicing and clearing expenses | (6,893) | (1,798) | (454) | (9,145) | — | (9,145) | |||||||||||||||||||||||||||||
| Amortization of other intangible assets | (1,154) | — | — | (1,154) | — | (1,154) | |||||||||||||||||||||||||||||
| Intersegment expenses | 4,010 | (2,311) | (1,699) | — | — | — | |||||||||||||||||||||||||||||
Other [2] | (57,338) | (1,877) | (504) | (59,719) | — | (59,719) | |||||||||||||||||||||||||||||
| Total non-interest expense | (365,673) | (20,144) | (3,996) | (389,813) | — | (389,813) | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 102,224 | $ | 18,702 | $ | 113,191 | $ | 234,117 | $ | — | $ | 234,117 | |||||||||||||||||||||||
| Income tax expense | (28,771) | (17) | (226) | (29,014) | — | (29,014) | |||||||||||||||||||||||||||||
| Net income | $ | 73,453 | $ | 18,685 | $ | 112,965 | $ | 205,103 | $ | — | $ | 205,103 | |||||||||||||||||||||||
| Total assets | $ | 10,042,544 | $ | 30,742 | $ | 3,771,871 | $ | 13,845,157 | $ | (1,379,500) | $ | 12,465,657 | |||||||||||||||||||||||
| Expenditures for long-lived assets | $ | 18,377 | $ | 3 | $ | 2 | $ | 18,382 | $ | — | $ | 18,382 | |||||||||||||||||||||||
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||||||||||||||||||||||||||||||
| [2] Other non-interest expenses include: | |||||||||||||||||||||||||||||||||||
Banking: taxes, other than payroll and income taxes; insurance; advertising; communication; printing, postage, stationery and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; and losses and operational errors, among other business expenses. | |||||||||||||||||||||||||||||||||||
Wealth Management: reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; and data communication and systems, among other business expenses. | |||||||||||||||||||||||||||||||||||
Treasury: data communication and systems; taxes, other than payroll and income taxes; and insurance, among other business expenses. | |||||||||||||||||||||||||||||||||||
Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, the IBE unit, which operates within the Bank. The time deposit with a balance of $283.9 million and $278.4 million at December 31, 2025 and 2024, respectively, which is used to fund Oriental Overseas operations, is included in the Treasury Segment with its corresponding interest expense, and the related interest income is included in the Banking Segment, and are eliminated in the
consolidation. Interest income is accrued on the unpaid principal balance. The increase in interest income and interest expense from the prior year was mainly as a result of higher interest rate.
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Banking | Wealth Management | Treasury | Total | Eliminations | Consolidated Total | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Interest income | $ | 619,328 | $ | 26 | $ | 134,970 | $ | 754,324 | $ | (4,047) | $ | 750,277 | |||||||||||||||||||||||
| Interest expense | (147,661) | — | (18,223) | (165,884) | 4,047 | (161,837) | |||||||||||||||||||||||||||||
| Net interest income | 471,667 | 26 | 116,747 | 588,440 | — | 588,440 | |||||||||||||||||||||||||||||
(Provision for) recapture of credit losses | (82,436) | — | 185 | (82,251) | — | (82,251) | |||||||||||||||||||||||||||||
| Non-interest income, net | 86,720 | 36,522 | 7 | 123,249 | — | 123,249 | |||||||||||||||||||||||||||||
Non-interest expenses [1] | |||||||||||||||||||||||||||||||||||
| Compensation and employee benefits | (149,194) | (9,527) | (989) | (159,710) | — | (159,710) | |||||||||||||||||||||||||||||
| Occupancy, equipment and infrastructure costs | (37,407) | (721) | (121) | (38,249) | — | (38,249) | |||||||||||||||||||||||||||||
| Depreciation and amortization of premises and equipment | (20,807) | (48) | (19) | (20,874) | — | (20,874) | |||||||||||||||||||||||||||||
| Electronic banking charges | (42,816) | — | — | (42,816) | — | (42,816) | |||||||||||||||||||||||||||||
| Information technology expenses | (27,394) | (187) | (1) | (27,582) | — | (27,582) | |||||||||||||||||||||||||||||
| Professional and service fees | (15,804) | (2,875) | (197) | (18,876) | — | (18,876) | |||||||||||||||||||||||||||||
| Loan servicing and clearing expenses | (5,937) | (1,455) | (543) | (7,935) | — | (7,935) | |||||||||||||||||||||||||||||
| Amortization of other intangible assets | (1,385) | — | — | (1,385) | — | (1,385) | |||||||||||||||||||||||||||||
| Intersegment expenses | 3,518 | (2,121) | (1,397) | — | — | — | |||||||||||||||||||||||||||||
Other [2] | (56,173) | (1,720) | (370) | (58,263) | — | (58,263) | |||||||||||||||||||||||||||||
| Total non-interest expense | (353,399) | (18,654) | (3,637) | (375,690) | — | (375,690) | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 122,552 | $ | 17,894 | $ | 113,302 | $ | 253,748 | $ | — | $ | 253,748 | |||||||||||||||||||||||
| Income tax expense | (55,402) | (10) | (166) | (55,578) | — | (55,578) | |||||||||||||||||||||||||||||
| Net income | $ | 67,150 | $ | 17,884 | $ | 113,136 | $ | 198,170 | $ | — | $ | 198,170 | |||||||||||||||||||||||
| Total assets | $ | 9,513,074 | $ | 34,219 | $ | 3,192,845 | $ | 12,740,138 | $ | (1,239,404) | $ | 11,500,734 | |||||||||||||||||||||||
| Expenditures for long-lived assets | $ | 21,336 | $ | — | $ | — | $ | 21,336 | $ | — | $ | 21,336 | |||||||||||||||||||||||
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||||||||||||||||||||||||||||||
| [2] Other non-interest expenses include: | |||||||||||||||||||||||||||||||||||
Banking: taxes, other than payroll and income taxes; insurance; advertising; communication; printing, postage, stationery and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; and losses and operational errors, among other business expenses. | |||||||||||||||||||||||||||||||||||
Wealth Management: reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; and data communication and systems, among other business expenses. | |||||||||||||||||||||||||||||||||||
Treasury: data communication and systems; taxes, other than payroll and income taxes; and insurance, among other business expenses. | |||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| Banking | Wealth Management | Treasury | Total | Eliminations | Consolidated Total | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Interest income | $ | 567,809 | $ | 28 | $ | 95,477 | $ | 663,314 | $ | (14,434) | $ | 648,880 | |||||||||||||||||||||||
| Interest expense | (73,480) | — | (28,964) | (102,444) | 14,434 | (88,010) | |||||||||||||||||||||||||||||
| Net interest income | 494,329 | 28 | 66,513 | 560,870 | — | 560,870 | |||||||||||||||||||||||||||||
| Provision for credit losses | (60,255) | — | (383) | (60,638) | — | (60,638) | |||||||||||||||||||||||||||||
| Non-interest income, net | 97,099 | 32,433 | (1,151) | 128,381 | — | 128,381 | |||||||||||||||||||||||||||||
Non-interest expenses [1] | |||||||||||||||||||||||||||||||||||
| Compensation and employee benefits | (147,241) | (7,627) | (959) | (155,827) | — | (155,827) | |||||||||||||||||||||||||||||
| Occupancy, equipment and infrastructure costs | (38,251) | (484) | (112) | (38,847) | — | (38,847) | |||||||||||||||||||||||||||||
| Depreciation and amortization of premises and equipment | (20,315) | (50) | (23) | (20,388) | — | (20,388) | |||||||||||||||||||||||||||||
| Electronic banking charges | (41,336) | — | — | (41,336) | — | (41,336) | |||||||||||||||||||||||||||||
| Information technology expenses | (26,946) | (204) | (12) | (27,162) | — | (27,162) | |||||||||||||||||||||||||||||
| Professional and service fees | (15,878) | (2,646) | (240) | (18,764) | — | (18,764) | |||||||||||||||||||||||||||||
| Loan servicing and clearing expenses | (5,806) | (1,417) | (551) | (7,774) | — | (7,774) | |||||||||||||||||||||||||||||
| Amortization of other intangible assets | (1,615) | — | — | (1,615) | — | (1,615) | |||||||||||||||||||||||||||||
| Intersegment expenses | 1,641 | (1,011) | (630) | — | — | — | |||||||||||||||||||||||||||||
Other [2] | (47,100) | (2,999) | (1,553) | (51,652) | — | (51,652) | |||||||||||||||||||||||||||||
| Total non-interest expense | (342,847) | (16,438) | (4,080) | (363,365) | — | (363,365) | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 188,326 | $ | 16,023 | $ | 60,899 | $ | 265,248 | $ | — | $ | 265,248 | |||||||||||||||||||||||
| Income tax expense | (83,242) | (34) | (100) | (83,376) | — | (83,376) | |||||||||||||||||||||||||||||
| Net income | $ | 105,084 | $ | 15,989 | $ | 60,799 | $ | 181,872 | $ | — | $ | 181,872 | |||||||||||||||||||||||
| Total assets | $ | 9,154,201 | $ | 38,261 | $ | 3,304,204 | $ | 12,496,666 | $ | (1,152,213) | $ | 11,344,453 | |||||||||||||||||||||||
| Expenditures for long-lived assets | $ | 17,853 | $ | 2 | $ | 2 | $ | 17,857 | $ | — | $ | 17,857 | |||||||||||||||||||||||
[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||||||||||||||||||||||||||||||
| [2] Other non-interest expenses include: | |||||||||||||||||||||||||||||||||||
| Banking: taxes, other than payroll and income taxes; insurance; advertising; communication; printing, postage, stationery and supplies; travels, meals and training; credit related expenses; director and investor relations; loss on sale of foreclosed real estate and other repossessed properties; and losses and operational errors, among other business expenses. | |||||||||||||||||||||||||||||||||||
| Wealth Management: reinsurance incurred net losses; taxes, other than payroll and income taxes; advertising; insurance; and data communication and systems, among other business expenses. | |||||||||||||||||||||||||||||||||||
| Treasury: data communication and systems; taxes, other than payroll and income taxes; and insurance, among other business expenses. | |||||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.