OFG BANCORP

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2026 AND 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

OFG is a publicly owned financial holding company incorporated under the laws of the Commonwealth of Puerto Rico. OFG operates through various subsidiaries, including a commercial bank, Oriental Bank (the “Bank”), a securities broker-dealer and investment adviser, Oriental Financial Services LLC (“Oriental Financial Services”), an insurance agency, Oriental Insurance, LLC (“Oriental Insurance”), a captive reinsurance company, OFG Reinsurance Ltd (“OFG Reinsurance”), and OFG Ventures LLC (“OFG Ventures”), which holds equity investments. Through these subsidiaries and their respective divisions, OFG provides a wide range of banking and financial services such as commercial, consumer, auto, and mortgage lending, financial planning, insurance sales, investment advisory, and securities brokerage services, as well as corporate trust services. The Bank has a wholly owned operating subsidiary, OFG USA LLC (“OFG USA”), which is a commercial lender organized in Delaware. In addition, Oriental International Bank Inc. (“OIB”), a wholly owned subsidiary of the Bank, and Oriental Overseas, a division of the Bank, are international banking entities (each an “IBE”) 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 assets/liabilities located outside of Puerto Rico. The Bank also has a wholly owned subsidiary, OBPEF LLC (“OBPEF”), which is a private equity fund under the Puerto Rico Incentives Code, as amended, whose objective is to provide financing to eligible borrowers, whether in the form of senior or subordinated debt, to support the economic development of Puerto Rico.

Basis of Presentation

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

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of OFG on a consolidated basis, and all such adjustments are of a normal recurring nature. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in OFG’s annual report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Form 10-K”). Operating results for the nine-month period ended September 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. OFG evaluated subsequent events through the filing date of this report with the SEC and has recorded or disclosed those material events or transactions as described within the accompanying consolidated financial statements and notes. Material estimates that are particularly susceptible to significant change in the near term relate mainly to the determination of the allowance for credit losses.

New Accounting Updates Not Yet Adopted

Codification Improvements. In December 2025, the Financial Accounting Standards Board (the “FASB”) issued ASU 2025-12, which is intended to facilitate codification updates for a broad range of topics arising from technical corrections, unintended application of the codification, clarifications, and other minor improvements. The amendments in ASU 2025-12 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted on an issue-by-issue basis, and an entity may apply certain amendments prospectively while applying others retrospectively. We will adopt this guidance when it becomes effective in 2027. We are currently evaluating the impact on our financial statements and disclosures.

Interim Reporting (Topic 270): Narrow-Scope Improvements. In December 2025, the FASB issued ASU 2025-11, which is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. Under these amendments, an entity is subject to ASC 270 if it provides “interim financial statements and notes in accordance with GAAP,” with the aim of improving clarity and consistency without significantly changing existing practices. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and entities may apply the amendments either prospectively or retrospectively to any or all prior periods presented in the financial statements. We will adopt this guidance when it becomes effective in 2028. We are currently evaluating the impact on our financial statements and disclosures.

Financial Instruments—Credit Losses (Topic 326): Purchased Loans. In November 2025, the FASB issued ASU 2025-08, which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under these amendments, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses under the gross-up approach, aligning the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”). The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods. Early adoption is permitted, and entities must apply the amendments prospectively. We will adopt this guidance when it becomes effective in 2027. We are currently evaluating the impact on our financial statements and disclosures.

Disaggregation of Income Statement Expenses. In November 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosure of income statement expenses for public business entities. This ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. These amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted, and entities may apply the amendments on a prospective basis. We will adopt this guidance when it becomes effective in 2027. We are currently evaluating the impact on our financial statements and disclosures.

NOTE 2 –CASH RESTRICTIONS

OFG hadno restricted cash as of September 30, 2026, and December 31, 2025. The Bank is required by Puerto Rico law to maintain average weekly reserve balances to cover demand deposits, excluding government deposits that are secured with pledged collateral. The amount of those minimum average reserve balances for the week that covered September 30, 2026, was $503.4 million (December 31, 2025 - $481.5 million). At September 30, 2026, and December 31, 2025, the Bank complied with this requirement. Cash and due from banks, as well as mortgage-backed securities, are used to cover the required average reserve balances.

NOTE 3 –INVESTMENT SECURITIES

Money Market Investments

At September 30, 2026, and December 31, 2025, money market instruments included as part of cash and cash equivalents amounted to $6.3 million and $4.3 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 September 30, 2026, and December 31, 2025, were as follows:

As of September 30, 2026, and December 31, 2025, the amortized cost of investment securities excludes accrued interest receivable, included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to Note 9 – Accrued Interest Receivable and Other Assets for more information.

Securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. The 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 any changes in fair value. Weighted average yields on tax-exempt obligations have been computed on a fully taxable equivalent basis.

At September 30, 2026, and December 31, 2025, most securities held by OFG are issued by U.S. government entities and government-sponsored enterprises that have a zero-credit loss assumption and, therefore, have no ACL.

Investment securities as of September 30, 2026, include $1.439 billion pledged to secure government deposits, regulatory collateral, and borrowings, of which $1.223 billion serve as collateral for public funds. Investment securities as of December 31, 2025, include $1.724 billion pledged to secure government deposits, regulatory collateral, and borrowings, of which $1.614 billion serve as collateral for public funds. For regulatory collateral, the secured parties are not permitted to sell or repledge the collateral.

The Bank’s IBEs, OIB and Oriental Overseas, each held short-term US Treasury securities in the amount of $1.0 million and $775 thousand at September 30, 2026, and December 31, 2025, 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.

During the nine-month periods ended September 30, 2026 and 2025, OFG retained securitized Government National Mortgage Association (“GNMA”) pools totaling $66.6 million and $64.0 million, respectively, at a yield of 4.59% and 4.84%, respectively, from its own originations.

There wereno sales of investment securities during the nine-month periods ended September 30, 2026 and 2025.

The following table shows OFG’s gross unrealized losses and fair value of investment securities available-for-sale at September 30, 2026, and December 31, 2025, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:

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

NOTE 4 -LOANS

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

The composition of the amortized cost basis of OFG’s loan portfolio at September 30, 2026, and December 31, 2025, segregated between non-purchased credit deteriorated (“non-PCD”) loans and purchased credit deteriorated (“PCD”) loans, was as follows:

At December 31, 2025, OFG had $3.1 million in commercial loans held-for-sale which were sold during the nine-month period ended September 30, 2026, recognizing a $28 thousand loss included in other non-interest income in the consolidated statements of operations. At September 30, 2026, OFG hadno commercial loans held-for-sale. There wereno sales of commercial loans held-for-sale during the nine-month period ended September 30, 2025.

Additionally, during the nine-month period ended September 30, 2026, OFG soldtwo previously reserved non-performing commercial loans held-for-investment with an aggregate reporting balance of $49.6 million and recognized $15.6 million in related charge-offs.

At September 30, 2026, and December 31, 2025, OFG had carrying balances of $87.2 million and $77.3 million, respectively, in loans held-for-investment granted to the Puerto Rico government or its instrumentalities as part of the commercial loan segment. The Bank’s loans to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities and are in current status. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations.

The tables below present the aging of the amortized cost of loans held-for-investment at September 30, 2026, and December 31, 2025, by class of loans. Mortgage loans past due include $58.7 million and $56.5 million of delinquent loans in the GNMA buy-back option program at September 30, 2026, and December 31, 2025, 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.

As of December 31, 2025, total past due loans exclude $563 thousand of past due commercial loans held-for-sale. There wereno past due commercial loans held-for-sale as of September 30, 2026.

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

Non-accrual Loans

The following table presents the amortized cost basis of loans held-for-investment on non-accrual status as of September 30, 2026, and December 31, 2025:

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

As of December 31, 2025, total commercial non-accrual loans exclude $3.1 million of non-accrual commercial loans held-for-sale. There wereno commercial non-accrual loans held-for-sale at September 30, 2026.

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.

Modifications to Debtors Experiencing Financial Difficulty

OFG’s loss mitigation program was designed to ensure that borrowers experiencing financial difficulties have an opportunity to continue paying their obligations. The available alternatives depend on each borrower’s hardship and ability to continue making regular payments or to make payments under a modified payment plan. The program provides home retention and disposition alternatives intended to avoid foreclosure proceedings and collateral retention.

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

As of September 30, 2026, and December 31, 2025, the amortized cost of modified loans excludes $18 thousand and $37 thousand, respectively, of accrued interest receivable. Accrued interest receivable on loans is included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Modified loans during the nine-month periods ended September 30, 2026 and 2025, include $1.1 million and $796 thousand, respectively, of government-guaranteed loans (e.g., FHA/VA).

The following tables present the amortized cost basis as of September 30, 2026 and 2025, of loans held-for-investment that were modified during the quarters and nine-month periods ended September 30, 2026 and 2025, disaggregated by class of financing receivable and type of concession granted.

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

The following tables present the financial effect of the modifications granted to borrowers experiencing financial difficulty during the quarters and nine-month periods ended September 30, 2026 and 2025. The financial effect of the combined modifications is presented separately by type of modification.

The following tables present the amortized cost basis as of September 30, 2026, of loans held-for-investment that experienced a payment default after a modification was granted during the preceding twelve months to a borrower experiencing financial difficulty.

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

OFG closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment status of loans that have been modified in the twelve-month periods ended September 30, 2026 and 2025 that were granted to borrowers experiencing financial difficulty.

There wereno outstanding commitments to lend additional funds to debtors experiencing financial difficulties at September 30, 2026 and 2025.

As of September 30, 2026, and December 31, 2025, the recorded investment on residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure amounted to $31.9 million and $33.6 million, respectively. OFG commences the foreclosure process on residential real estate loans when a borrower becomes 120 days delinquent. Puerto Rico and the U.S. Virgin Islands (the “USVI”) require the foreclosure to be processed through their respective courts. Foreclosure timelines vary according to local law and investor guidelines. Occasionally, foreclosures may be delayed due to, among other reasons, mandatory mediation, bankruptcy, court delays and property title issues.

Collateral-dependent Loans

The table below presents the amortized cost of commercial collateral-dependent loans held-for-investment at September 30, 2026, and December 31, 2025, by class of loans.

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 commercial 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 such process are considered to be pass loans.

As of September 30, 2026, and based on the most recent analysis performed, the risk category of loans held-for-investment subject to risk rating by class of loans, and current year-to-date period gross charge-offs by year of origination are as follows:

As of December 31, 2025, and based on the most recent analysis performed, the risk category of loans held-for-investment subject to risk rating by class of loans, and current year-to-date period gross charge-offs by year of origination are as follows:

At September 30, 2026, and December 31, 2025, the balance of revolving commercial loans converted to term loans was $171.8 million and $169.5 million, respectively.

OFG considers the performance of the loan portfolio and its impact on the ACL. For mortgage and consumer loan classes, OFG also evaluates credit quality based on the aging status of the loan and payment activity. The following table presents the amortized cost in mortgage and consumer loans held-for-investment based on payment performance as of September 30, 2026, and current year-to-date period gross charge-offs by year of origination:

The following table presents the amortized cost in mortgage and consumer loans held-for-investment based on payment performance as of December 31, 2025, and the current year-to-date period gross charge-offs by year of origination:

At September 30, 2026, and December 31, 2025, the balance of mortgage and consumer revolving loans that were converted to term loans was $2.4 million and $2.6 million, respectively.

OFG evaluates credit quality for auto loans based on FICO score. The following table presents the amortized cost in auto loans held-for-investment based on their most recent FICO score as of September 30, 2026, and the current year-to-date period gross charge-offs by year of origination:

The following table presents the amortized cost in auto loans held-for-investment based on their most recent FICO score as of December 31, 2025, and the current year-to-date period gross charge-offs by year of origination:

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

As of September 30, 2026, and December 31, 2025, accrued interest receivable on loans totaled $57.7 million and $59.8 million, respectively, and is included in the accrued interest receivable line in OFG’s consolidated statements of financial condition. Refer to Note 9 – Accrued Interest Receivable and Other Assets for more information on accrued interest receivable on loans.

NOTE 5 –ALLOWANCE FOR CREDIT LOSSES

OFG measures its ACL based on management’s best estimate of lifetime expected credit losses inherent in OFG’s relevant financial assets. The ACL is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. Also included in the ACL are qualitative reserves to cover losses that are expected but, in OFG’s assessment, may not be adequately represented in the quantitative methods or the economic assumptions. In its loss forecasting framework, OFG incorporates forward-looking information by using macroeconomic scenarios applied over the forecasted life of the assets. The scenarios that are chosen each quarter and the amount of weight given to each scenario depend on a variety of factors, including recent economic events, leading economic indicators, views of internal as well as third-party economists and industry trends. For more information on OFG’s credit loss accounting policies, including the ACL, see Note 1 – Summary of Significant Accounting Policies included in OFG’s 2025 Form 10-K.

At September 30, 2026, 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 commercial US loan segment that uses a higher probability level in the moderate recessionary scenario. In addition, the ACL at September 30, 2026, 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 credit trends in the auto loan portfolio. There are still many unknown variables, including the results of the local and U.S. mainland governments’ fiscal and monetary actions resulting from the effect of inflation, labor market conditions, interest rates, geopolitical tension, and new trade and tax policies.

As of September 30, 2026, the ACL decreased by $10.5 million compared to December 31, 2025. The provision for credit losses for the nine-month period ended September 30, 2026, reflected $49.6 million related to loan volume and $3.0 million related to specific commercial loan reserves. Net charge-offs for the nine-month period ended September 30, 2026, amounted to $64.6 million, an increase of $11.3 million when compared to the same period of 2025. The increase corresponds to $11.2 million from commercial loans, mainly due to $15.6 million charge-offs recognized from the sale oftwo previously reserved non-performing commercial loans during the period.

The provision for credit losses for the nine-month period ended September 30, 2025, reflected $48.1 million related to loan volume, $14.2 million in commercial loans specific reserves and $13.6 million due to alignment of economic and loss rate model assumptions. Net charge-offs for the nine-month period ended September 30, 2025, amounted to $53.4 million and include $6.5 million from commercial US loans.

The following tables present the activity in OFG’s ACL by segment for the quarters and nine-month periods ended September 30, 2026 and 2025:

NOTE 6 —FORECLOSED REAL ESTATE

The following table presents the activity related to foreclosed real estate for the quarters and nine-month periods ended September 30, 2026 and 2025:

NOTE 7 -SERVICING ASSETS

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

At September 30, 2026, the fair value of mortgage servicing rights (“MSR”) was $68.5 million ($66.3 million — December 31, 2025).

The following table presents the changes in servicing rights measured using the fair value method for the quarters and nine-month periods ended September 30, 2026 and 2025:

The following table presents key economic assumption ranges used in measuring the mortgage-related servicing asset fair value as of September 30, 2026, and December 31, 2025:

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:

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. In addition, 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 MSR, 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. Ancillary fees include various service charges such as late payment fees and fees for additional services. These fees are recorded as income when earned and included in the mortgage banking activities section in the consolidated statement of operations. Servicing and ancillary fees on mortgage loans for the quarters ended September 30, 2026 and 2025 totaled $5.3 million and $5.6 million, respectively. Servicing and ancillary fees on mortgage loans for the nine-month periods ended September 30, 2026 and 2025 totaled $16.6 million and $16.7 million, respectively.

NOTE 8 —GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill by reportable business segment is included in the table below. Refer to Note 23 – Business Segments for additional information on OFG’s reportable business segments.

There wereno changes in the carrying amount of goodwill during the quarters and nine-month periods ended September 30, 2026 and 2025. There wereno accumulated impairment losses at September 30, 2026, and December 31, 2025.

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 2025 using October 31, 2025, as the annual evaluation date and concluded that there was no impairment on December 31, 2025. During the nine-month period ended September 30, 2026, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of goodwill. Based on this assessment, no impairments were identified at September 30, 2026.

The following table reflects the components of other intangible assets subject to amortization at September 30, 2026, and December 31, 2025:

In connection with previous acquisitions, OFG recorded core deposit intangibles representing the value of checking and savings deposits acquired. In addition, OFG recorded customer relationship intangibles representing the value of customer relationships acquired with its acquisitions of insurance agencies. During the nine-month period ended September 30, 2026, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of other intangible assets. Based on this assessment, no impairments were identified at September 30, 2026.

Other intangible assets have a definite useful life. Amortization of other intangible assets for the quarters ended September 30, 2026 and 2025, was $985 thousand and $1.2 million, respectively. Amortization of other intangible assets for the nine-month periods ended September 30, 2026 and 2025, was $3.0 million and $3.7 million, respectively.

The following table presents the estimated remaining amortization of other intangible assets as of September 30, 2026:

NOTE 9 —ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS

Accrued interest receivable at September 30, 2026, and December 31, 2025, consists of the following:

Accrued interest receivable on loans that participated in the Hurricane Fiona and Covid-19 deferral programs amounted to $15.6 million at September 30, 2026, of which $15.2 million corresponded to loans in current status, and $16.4 million at December 31, 2025, of which $14.9 million corresponded to loans in current status. OFG estimates expected credit losses on accrued interest receivable for loans that participated in these 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 September 30, 2026, and December 31, 2025, the ACL for accrued interest receivable for loans that participated in moratorium programs amounted to $28 thousand and $13 thousand, respectively, and is included in accrued interest receivable in the statement of financial condition.

Other assets at September 30, 2026, and December 31, 2025, consist of the following:

Prepaid expenses amounting to $30.9 million at September 30, 2026, include prepaid municipal, property and income taxes aggregating to $18.8 million. At December 31, 2025, prepaid expenses amounted to $20.5 million, including prepaid municipal, property and income taxes aggregating to $11.9 million.

Other repossessed assets totaled $4.7 million and $3.5 million at September 30, 2026, and December 31, 2025, respectively, and mainly consist of repossessed automobiles, which are recorded at their net realizable value.

NOTE 10—DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable of $5.4 million and $5.5 million, as of September 30, 2026, and December 31, 2025, respectively, consisted of the following:

At September 30, 2026, and December 31, 2025, the aggregate amount of uninsured deposits was $5.158 billion (51.63% of total deposits) and $5.386 billion (52.48% of total deposits), respectively.

The weighted average interest rate of OFG’s deposits was 1.41% and 1.53%, respectively, at September 30, 2026, and December 31, 2025.

Interest expense for the quarters and nine-month periods ended September 30, 2026 and 2025 was as follows:

At September 30, 2026, and December 31, 2025, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $1.905 billion and $1.177 billion, respectively.

At September 30, 2026, and December 31, 2025, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $1.269 billion and $1.676 billion, respectively. As of September 30, 2026, and December 31, 2025, these public funds were collateralized by investment securities totaling $1.223 billion and $1.614 billion, respectively, and by commercial loans totaling $79.5 million and $76.6 million, respectively.

Excluding accrued interest of approximately $5.4 million at both September 30, 2026, and December 31, 2025, the scheduled maturities of certificates of deposit are as follows:

The table of scheduled maturities of certificates of deposit above includes brokered-deposits and IRAs.

The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $1.1 million and $977 thousand, as of September 30, 2026, and December 31, 2025, respectively.

NOTE 11—BORROWINGS AND RELATED INTEREST

Securities Sold under Agreements to Repurchase

At September 30, 2026, and December 31, 2025, securities underlying agreements to repurchase were delivered to, and held by, the counterparties with whom the repurchase agreements were transacted. The counterparties agreed to resell to OFG the same or similar securities at the maturity of these agreements. The purpose of these transactions is to provide financing for OFG’s securities portfolio.

The following table shows OFG’s repurchase agreements, excluding accrued interest in the amount of $273 thousand and $714 thousand at September 30, 2026, and December 31, 2025:

Repurchase agreement maturities at September 30, 2026, and December 31, 2025 were as follows:

The following securities were sold under agreements to repurchase at September 30, 2026, and December 31, 2025:

Advances from the Federal Home Loan Bank of New York

Advances are received from the FHLB-NY under an agreement whereby OFG is required to maintain as collateral an amount of qualifying collateral which has a fair market value that is at least equal to the FHLB-NY collateral maintenance level. At September 30, 2026, and December 31, 2025, these advances were secured by mortgage and commercial loans amounting to $1.352 billion and $1.255 billion, respectively. Further, at September 30, 2026, and December 31, 2025, OFG had an additional borrowing capacity with the FHLB of $450.3 million and $351.1 million, respectively. At September 30, 2026, and December 31, 2025, the weighted average remaining maturity of FHLB advances was 5 months and 1.10 years, respectively.

The following table shows a summary of the advances and their terms, excluding accrued interest in the amount of $1.4 million and $1.6 million at September 30, 2026 and December 31, 2025, respectively:

Advances from FHLB mature as follows:

NOTE 12 –OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

OFG’s securities sold under agreements to repurchase have a right of set-off with the respective counterparty under the supplemental terms of the master repurchase agreements. In an event of default, each party has a right of set-off against the other party for amounts owed in the related agreements and any other amount or obligation owed in respect of any other agreement or transaction between them. Security collateral posted to open and maintain a master netting agreement with a counterparty, in the form of cash and securities, may from time to time be segregated in an account at a third-party custodian pursuant to an account control agreement.

The following table presents the potential effect of rights of set-off associated with OFG’s recognized financial assets and liabilities at September 30, 2026, and December 31, 2025:

NOTE 13 —INCOME TAXES

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

As of September 30, 2026, OFG’s net deferred tax assets, net of a valuation allowance of $610 thousand, amounted to $127.4 million, and the net deferred tax liability, net of valuation allowance of $18 thousand, amounted to $755 thousand, reflecting the aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of OFG. As of December 31, 2025, OFG’s deferred tax asset, net of a valuation allowance of $568 thousand, amounted to $104.4 million. The increase in valuation allowance of $60 thousand was related to USVI 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 is 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 September 30, 2026. The amount of the deferred tax asset that is considered realizable could be reduced in the near term if there are changes in estimates of future taxable income.

OFG maintained an effective tax rate (“ETR”) lower than the statutory rate for the nine-month periods ended September 30, 2026 and 2025 of 21.3% and 20.1%, respectively. The lower ETR, compared to the statutory rate, is mainly related to exempt income and investments subject to preferential tax treatment under the PR Code.

OFG classifies unrecognized tax benefits in other liabilities. These gross unrecognized tax benefits would affect the ETR if realized. At September 30, 2026, there wereno unrecognized tax benefits.

Income tax expense for the quarters ended September 30, 2026 and 2025 was $15.2 million and $9.5 million, respectively. Income tax expense for the nine-month periods ended September 30, 2026 and 2025 was $45.8 million and $37.5 million, respectively.

NOTE 14 —REGULATORY CAPITAL REQUIREMENTS

Regulatory Capital Requirements

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

As of September 30, 2026, and December 31, 2025, OFG and the Bank met all capital adequacy requirements to which they are subject. As of September 30, 2026, and December 31, 2025, OFG and the Bank are “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the tables presented below.

OFG’s and the Bank’s actual capital amounts and ratios as of September 30, 2026, and December 31, 2025, were as follows:

NOTE 15 –STOCKHOLDERS’ EQUITY

Common Stock

At September 30, 2026, and December 31, 2025, common stock paid-in capital 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 September 30, 2026, and December 31, 2025, accumulated common stock issuance costs charged against additional paid-in capital amounted to $13.6 million.

Legal Surplus

The 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 September 30, 2026, and December 31, 2025, the Bank’s legal surplus amounted to $204.9 million and $188.5 million, respectively. During the quarter and nine-month period ended September 30, 2026, OFG transferred $5.5 million and $16.4 million, respectively, to the legal surplus account. For the same periods in 2025, OFG transferred $4.8 million and $14.1 million, respectively, to the legal surplus account. The amount transferred to the legal surplus account is not available for the payment of dividends to shareholders.

Treasury Stock

In January 2026, OFG’s Board of Directors (the “Board”) approved a $200.0 million stock repurchase program in addition to the $100.0 million stock repurchase program approved in April 2025. The shares of common stock repurchased are held by

OFG as treasury shares. OFG records common stock repurchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock.

During the nine-month periods ended September 30, 2026, and 2025, OFG repurchased 1,358,899 and 1,246,064 shares, respectively, for a total of $58.0 million and $51.5 million, at an average price of $42.69 and $41.32 per share, under the approved stock repurchase programs for such periods.

At September 30, 2026, the estimated remaining number of shares that may be purchased under the repurchase programs is 3,595,531 and was calculated by dividing the remaining balance of $180.1 million by $50.08 (closing price of OFG’s common stock on September 30, 2026).

OFG didnot repurchase any shares of common stock during the nine-month periods ended September 30, 2026 and 2025, other than through its publicly announced stock repurchase programs.

The activity in connection with common shares held in treasury by OFG for the quarters and nine-month periods ended September 30, 2026 and 2025, is set forth below:

NOTE 16 -ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss, net of income taxes, as of September 30, 2026, and December 31, 2025, consisted of:

The following table presents changes in accumulated other comprehensive loss by component, net of taxes, for the quarters and nine-month periods ended September 30, 2026 and 2025:

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and nine-month periods ended September 30, 2026 and 2025:

NOTE 17 –EARNINGS PER COMMON SHARE

The calculation of earnings per common share for the quarters and nine-month periods ended September 30, 2026 and 2025 is as follows:

For both quarters ended September 30, 2026 and 2025, weighted-average restricted stock units with an anti-dilutive effect on earnings per common share (“EPS”) not included in the calculation amounted tozero. For the nine-month periods ended September 30, 2026 and 2025, weighted-average restricted stock units with an anti-dilutive effect on EPS not included in the calculation amounted to 12 and 445, respectively.

During the first quarter of 2026, OFG increased its quarterly common stock cash dividend to $0.35 per share from $0.30 per share at December 31, 2025.

NOTE 18 –GUARANTEES

At September 30, 2026, and December 31, 2025, the notional amount of the obligations undertaken in issuing the guarantees under standby letters of credit represented a liability of $25.9 million and $26.1 million, respectively.

OFG has a liability for residential mortgage loans sold subject to credit recourse, principally loans associated with FHLMC residential mortgage loan sales and securitization programs. At September 30, 2026, and December 31, 2025, the unpaid principal balance of residential mortgage loans sold subject to credit recourse under the residential mortgage loan sale programs was $77.6 million and $83.0 million, respectively. The estimated losses to be absorbed under the credit recourse arrangements were recorded as a liability when the credit recourse was assumed and are updated on a quarterly basis. At September 30, 2026, OFG’s liability for estimated credit losses related to loans sold with credit recourse amounted to $72 thousand (December 31, 2025 - $111 thousand).

The following table shows the changes in OFG’s liability for estimated losses from credit recourse agreements included in the consolidated statements of financial condition during the quarters and nine-month periods ended September 30, 2026 and 2025:

The expected loss, which represents the amount expected to be lost on a given loan, considers the probability of default (“PD”) and the loss severity. The PD represents the probability that a loan in good standing would become 120 days delinquent; however, for loans subject to credit recourse, OFG is not required to repurchase the loan.

If a borrower defaults, pursuant to the credit recourse provided, OFG may decide to repurchase the loan or reimburse the third-party investor for the loss incurred. The maximum potential amount of future payments that OFG would be required to make under the recourse arrangements is equivalent to the total outstanding balance of the residential mortgage loans serviced with recourse and interest, if applicable. During the quarters ended September 30, 2026 and 2025, OFG repurchased $264 thousand and $224 thousand, respectively, in such mortgage loans. During the nine-month periods ended September 30, 2026 and 2025, OFG repurchased mortgage loans with unpaid principal balances of $338 thousand and $294 thousand, respectively. 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 of the related property.

When OFG sells or securitizes mortgage loans, it generally makes customary representations and warranties regarding the characteristics of the loans sold. OFG groups mortgage loans into pools that are exchanged for FNMA and GNMA mortgage-backed securities, which are generally sold to private investors, or are sold directly to FNMA, FHLMC or other private investors for cash. As required under such mortgage-backed securities programs, OFG performs quality review procedures to ensure compliance with applicable underwriting and eligibility guidelines. To the extent the loans do not meet specified characteristics, OFG may be required to repurchase such loans or indemnify for losses and bear any subsequent loss related to the loans. During the quarters and nine-month periods ended September 30, 2026 and 2025, OFG didnot repurchase any mortgage loans related to representations and warranties, excluding mortgage loans sold subject to separate credit recourse provisions. In addition to obligations arising from contractual credit recourse provisions and customary representations and warranties, OFG may, from time to time, repurchase or buy back mortgage loans for other reasons, including, but not limited to, loan delinquency and modification, portfolio realignments, or other business purposes. During the quarters ended September 30, 2026 and 2025, OFG repurchased $1.3 million and $1.7 million, respectively, of unpaid principal balance in mortgage loans, excluding mortgage loans sold subject to such credit recourse provisions and related representations and warranties. During the nine-month periods ended September 30, 2026, and 2025, OFG repurchased $3.5 million and $4.0 million, respectively, of such unpaid principal balance. At September 30, 2026 and December 31, 2025, OFG had a $419 thousand and $249 thousand liability, respectively, for the estimated credit losses related to these loans.

During the quarters ended September 30, 2026 and 2025, OFG recognized $4 thousand in gains and $35 thousand in losses, respectively, from the repurchase of residential mortgage loans sold subject to credit recourse, including provisions for possible losses. During the nine-month periods ended September 30, 2026 and 2025, OFG recognized $49 thousand in losses and $30 thousand in gains, respectively, from the repurchase of residential mortgage loans sold to credit recourse, including provisions for possible losses. During the quarters ended September 30, 2026 and 2025, OFG recognized $75 thousand and $266 thousand in losses, respectively, from the repurchase of residential mortgage loans without recourse, net of provisions for possible losses, including repurchases related to breaches of customary representations and warranties and other activities. During the nine-month periods ended September 30, 2026 and 2025, OFG recognized $175 thousand and $176 thousand in losses, respectively, from the repurchase of residential mortgage loans without recourse, net of provisions for possible losses, including repurchases related to breaches of customary representations and warranties and other activities.

At September 30, 2026, OFG serviced $5.7 billion (December 31, 2025 - $5.7 billion) in mortgage loans for third parties, including subserviced mortgage loans. Servicing agreements relating to the mortgage-backed securities programs of FNMA and GNMA, and to mortgage loans sold and serviced to certain other investors, including FHLMC, require OFG to advance funds to make scheduled payments of principal, interest, taxes and insurance, if such payments have not been received from the borrowers. OFG generally recovers funds advanced pursuant to these arrangements from liquidation proceeds when the mortgage loan is foreclosed or, in the case of FHA or VA loans, under the applicable FHA and VA insurance and guarantee programs. However, in the meantime, OFG must absorb the cost of the funds it advances during the time the advance is outstanding. OFG must also bear the costs of attempting to collect on delinquent and defaulted mortgage loans. In addition, if a defaulted loan is not cured, the mortgage loan would be canceled as part of the foreclosure proceedings and OFG would not receive any future servicing income with respect to that loan. At September 30, 2026, the outstanding balance of funds advanced by OFG under such mortgage loan servicing agreements was approximately $5.5 million (December 31, 2025 - $5.0 million). To the extent the mortgage loans underlying OFG’s servicing portfolio experience increased delinquencies, OFG would be required to dedicate additional cash resources to comply with its obligation to advance funds as well as incur additional administrative costs related to increases in collection efforts.

NOTE 19—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 September 30, 2026, and December 31, 2025, were as follows:

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 September 30, 2026, and December 31, 2025, 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 September 30, 2026, and December 31, 2025, is as follows:

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 financings, and similar credit 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 September 30, 2026, and December 31, 2025, the ACL for off-balance-sheet credit exposures corresponding to commitments to extend credit and standby letters of credit amounted to $1.2 million and $1.7 million, respectively, and is included in other liabilities in the statements of financial condition.

At September 30, 2026, and December 31, 2025, OFG maintained other non-credit commitments amounting to $20.1 million and $17.8 million, respectively, primarily for the acquisition of equity securities. In addition, as OFG continues to transform with a focus on simplification and building a culture of excellence and customer service, OFG continues to invest in technology that drives its strategy, namely digital, data analytics, cloud migration, cyber security, and sales and service capabilities. At September 30, 2026, and December 31, 2025, OFG had commitments for capital expenditures in technology amounting to $5.3 million and $1.6 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 September 30, 2026, and December 31, 2025, accrued liability for legal contingencies amounted to $659 thousand and $605 thousand, respectively. OFG continues to monitor the matters for further developments that could affect the amount of the accrued liability that has been previously established. OFG also has an accrued liability for potential losses, operational errors, loss on theft not covered by insurance premiums, and uncollectible receivables, among other transactions, amounting to $5.9 million and $182 thousand at September 30, 2026, and December 31, 2025, respectively.

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

NOTE 20—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 2028 withone additional extension through 2030; all are operating leases.

Operating Lease Cost

Operating Lease Assets and Liabilities

Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2026, were as follows:

OFG, as lessor, leases or subleases real property to tenants under operating leases. As of September 30, 2026, no material lease concessions have been granted to tenants. As of September 30, 2026, OFG, as lessee, has not requested any lease concessions.

NOTE 21 -FAIR VALUE OF FINANCIAL INSTRUMENTS

OFG follows the fair value measurement framework under GAAP.

Fair Value Measurement

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

Money market investments

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

Investment securities

The fair value of investment securities is based on valuations obtained from an independent pricing provider, ICE Data Pricing (“ICE”). ICE is a well-recognized pricing company and an established leader in financial information. Such securities are classified as Level 1 or Level 2, depending on the basis for determining fair value.

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.

Collateral-dependent loans

OFG records nonrecurring fair value adjustments to collateral-dependent loans to reflect partial write-downs that are based on the fair value of the collateral in accordance with GAAP or the full charge-off of the loan carrying value. The impairment is measured based on the fair value of the collateral less estimated costs to sell. The fair value of the collateral is derived from appraisals, market quotes, and customized discounting. Currently, the loans are classified as Level 3.

Foreclosed real estate

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

Other repossessed assets

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

Mortgage loans held for sale

Residential mortgage loans reported as held for sale are stated at lower of amortized cost or fair value. The fair value of these loans is based on published secondary market prices of mortgage-backed securities with similar characteristics. These loans are classified as Level 3 given certain internal adjustments that may be made when amortized costs are lower.

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

The fair value information included in the tables above for non-recurring fair value measurements is not as of period-end. Instead, it is as of the date that the fair value measurement was recorded closest to September 30, 2026, and December 31, 2025, and excludes nonrecurring fair value measurements of assets no longer outstanding as of the reporting date.

At September 30, 2026, collateral-dependent loans valued using Level 3 inputs comprised loans with principal balances amounting to $7.7 million and an allowance of $1.7 million reflecting a net fair value of $6.0 million. At December 31, 2025, collateral-dependent loans valued using Level 3 inputs comprised loans with principal balances amounting to $3.1 million and an allowance of $387 thousand reflecting a net fair value of $2.7 million.

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 the quarters and nine-month periods ended September 30, 2026 and 2025:

Level 3 Instruments Only

Servicing assets gains (losses) included in earnings during the quarters and nine-month periods ended September 30, 2026, and 2025 were included as mortgage servicing activities in the consolidated statements of operations. For more information on the qualitative information about Level 3 fair value measurements, see Note 7 – Servicing Assets.

There wereno liabilities measured at fair value on a recurring basis and non-recurring basis at September 30, 2026, and December 31, 2025. The table below presents quantitative information for all assets measured at fair value on a recurring and non-recurring basis using significant unobservable inputs (Level 3) at September 30, 2026, and December 31, 2025:

Information about Sensitivity to Changes in Significant Unobservable Inputs

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

Fair Value of Financial Instruments

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

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

The estimated fair value and carrying value of OFG’s financial instruments at September 30, 2026, and December 31, 2025, was as follows:

The following methods and assumptions were used to estimate the fair values of significant financial instruments at September 30, 2026, and December 31, 2025:

•Cash and cash equivalents (including money market investments), accrued interest receivable, accounts receivable and other assets, and accrued expenses and other liabilities 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 by contracted pricing providers or 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 fair value of servicing assets is estimated by using a cash flow valuation model, which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions.

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

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

•The fair value of borrowings, which include securities sold under agreements to repurchase and advances from FHLB is based on the discounted value of the contractual cash flows using current estimated market discount rates for borrowings with similar terms, remaining maturities and put dates.

NOTE 22 –BANKING AND FINANCIAL SERVICE REVENUES

The following table presents the major categories of banking and financial service revenues for the quarters and nine-month periods ended September 30, 2026 and 2025:

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

Banking Service Revenues

Electronic banking fees include credit and debit card processing services, fees for using 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. Debit card interchange fees earned by the Bank are subject to pricing limits imposed by the Durbin Amendment.

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

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

Wealth Management Revenue

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

Broker fees consist of two categories:

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

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

Trust fees are revenues related to fiduciary services provided to IRA trusts and other retirement plans. These generally include payment for trustee services, distribution services, custodial services of plan assets, due diligence services, and investment advisory services. Fees are billed based on services contracted. Negotiated fees are detailed in the contract. Fees are generally collected quarterly in arrears after the related services have been provided. Certain annual fees are collected in advance and recognized over the contract term.

Mortgage Banking Activities

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

NOTE 23 –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 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 so 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. This segment also includes activities of the Bank’s IBEs, including purchases of US loan participations.

The accounting policies of the segments are the same as those referred to in Note 1 – “Summary of Significant Accounting Policies” of our 2025 Form 10-K. Intersegment sales and transfers, if any, are accounted for as if the sales or transfers were to third parties, that is, at current market prices. Financial results are presented, to the extent practicable, as if each business operated on a standalone basis, and include 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 they may not be significant to a particular segment.

OFG’s chief operating decision maker (“CODM”) is the chief executive officer (the “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 its strategic goals.

Following are the results of operations and the selected financial information by operating segment for the quarters and nine-month periods ended September 30, 2026 and 2025:

Eliminations include interest income and expense for a time deposit opened by the Bank in Oriental Overseas, the IBEunit, that operates within the Bank. The time deposit, with balances of $288.1 million and $282.5 million at September 30, 2026 and 2025, respectively, is used to fund Oriental Overseas operations. The deposit and corresponding interest expense are included in the Treasury segment, and the related interest income is included in the Banking segment. These intersegment balances and amounts are eliminated in consolidation. Interest income is accrued on the unpaid principal balance.

NOTE 24 –SUBSEQUENT EVENTS

In October 2026, OFG announced that its Board approved the increase of its regular quarterly cash dividend to $0.40 per common share from $0.35 per share, beginning in the quarter ending December 31, 2026.