OFG Bancorp (OFG) risk factors, FY2024 10-K

Other

1. 01Most of our business is conducted in Puerto Rico, where economic and government fiscal and liquidity challenges have adversely impacted and may continue to adversely impact us
2. 02Puerto Rico and the USVI are susceptible to earthquakes, hurricanes and major storms, the severity of which could be heightened by the effect of climate change, which could further deteriorate their economy and infrastructure
3. 03Puerto Rico depends on federal disaster relief funds and any prolonged delay in disbursements of such funds could adversely affect the local economy
4. 04Potential adverse effects of political changes may disrupt the economic recovery process in Puerto Rico
5. 05Changes in interest rates could adversely affect OFG’s results of operations and financial condition
6. 06Heightened credit risk could require us to increase our provision for credit losses, which could have a material adverse effect on our results of operations and financial condition
7. 07Our emphasis on the origination of commercial and retail loans is one of the more significant factors in evaluating our ACL. As we continue to increase the amount of these loans, additional or increased provisions for credit losses may be necessary and as a result would decrease our earnings
8. 08We are subject to default and other risks in connection with mortgage loan originations
9. 09A decline in the real estate market would likely result in an increase in delinquencies, defaults and foreclosures and in a reduction in loan origination activity, which would adversely affect our financial results
10. 10Global armed conflicts may impact all aspects of our operations, revenues, costs and stock price
11. 11We may experience losses related to fraud and theft
12. 12We are subject to security and operational risks related to our use of technology, including the risk of cyber-attack or cyber theft
13. 13We rely on third parties to provide services and systems essential to the operation of our business, and any failure, interruption or termination of such services or systems could have a material adverse effect on our financial condition and results of operations
14. 14Non-Compliance with the USA Patriot Act, Bank Secrecy Act, or other laws and regulations could result in fines and other sanctions
15. 15Consumer protection laws may reduce our noninterest income
16. 16Our risk management policies, procedures and systems may be inadequate to mitigate all risks inherent in our various businesses
17. 17Adverse developments in the financial services industry could adversely affect our financial condition and results of operations
18. 18Our business could be adversely affected if we cannot maintain access to stable funding sources
19. 19Our ability to receive dividends from our subsidiaries could affect our liquidity and ability to pay dividends to our shareholders
20. 20Failure to keep pace with technological change could adversely affect OFG’s results of operations and financial condition
21. 21Competition with other financial institutions could adversely affect our profitability
22. 22We operate in a highly regulated industry and may be adversely affected by changes in federal and local laws and regulations
23. 23Reputational risk and social factors may impact our results
24. 24Changes in accounting standards issued by the Financial Accounting Standards Board (“FASB”) or other standard-setting bodies may adversely affect our financial statements
25. 25Our goodwill and other intangible assets could be determined to be impaired in the future and could decrease OFG’s earnings
26. 26Legislative and other measures that may be taken by Puerto Rico governmental authorities could materially increase our tax burden or otherwise adversely affect our financial condition, results of operations or cash flows