UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________________________
FORM 11-K
_________________________
FOR ANNUAL REPORTS OF EMPLOYEE
STOCK REPURCHASE SAVINGS AND
SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
………………………………………………………………………………………………………..
☒
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
For the fiscal year ended December 31, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934.
For the transition period from __________ to __________
Commission file number 001-12647
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
c/o Oriental Bank
254 Muñoz Rivera Avenue,
Oriental Center 15
th
San Juan, Puerto Rico 00918
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
OFG BANCORP
254 Muñoz Rivera Avenue,
Oriental Center 15
th
San Juan, Puerto Rico 00918
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
TABLE OF CONTENTS
Page
Report of Independent Registered Public Accounting Firm
1
Financial Statements:
Statements of Net Assets Available for Benefits as of December 31, 2020 and 2019
3
Statement of Changes in Net Assets Available for Benefits for the year ended
December 31, 2020
4
Notes to Financial Statements
5 – 12
Supplemental Schedule:
Schedule I – Schedule H, Line 4i - Schedule of Assets (Held at Year End) as of
December 31, 2020
13
Exhibits
14
Signatures
15
Report of Independent Registered Public Accounting Firm
To the Plan Participants and Plan Administrator
The Oriental Bank CODA Profit Sharing Plan:
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of The Oriental Bank CODA
Profit Sharing Plan (the Plan) as of December 31, 2020 and 2019, the related statement of changes in net assets
available for benefits for the year ended December 31, 2020, and the related notes (collectively,
the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net
assets available for benefits of the Plan as of December 31, 2020 and 2019, and the changes in net assets
available for benefits for the year ended December 31, 2020, in conformity with U.S. generally accepted
accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an
opinion on these financial statements based on our audits. We are a public accounting firm registered with the
Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with
respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.
Accompanying Supplemental Information
The Schedule H, Line 4i – Schedule of Assets (Held at Year End) as of December 31, 2020 has been subjected
to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental
information is the responsibility of the Plan’s management. Our audit procedures included determining whether
the supplemental information reconciles to the financial statements or the underlying accounting and other
records, as applicable, and performing procedures to test the completeness and accuracy of the information
presented in the supplemental information. In forming our opinion on the supplemental information, we
evaluated whether the supplemental information, including its form and content, is presented in conformity with
the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material
respects, in relation to the financial statements as a whole.
/s/ KPMG LLP
We have served as the Plan’s auditor since 2005
San Juan, Puerto Rico
June 29, 2021
Stamp No. E434345 of the Puerto Rico
Society of Certified Public Accountants
was affixed to the record copy of this report.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
Statements of Net Assets Available for Benefits
as of December 31, 2020 and 2019
3
2020
2019
Assets:
$
9,837
222,863
5,684,027
6,189,993
101,669,357
45,586,165
107,363,221
51,999,021
9,735,927
6,565,321
117,099,148
58,564,342
172,629
-
71,871
-
-
567,528
21,461
18,353
1,208,374
7,227
1,474,335
593,108
2
176,535
$
118,573,485
59,333,985
Liabilities:
$
141,632
$
56,812
141,632
56,812
Net assets available for benefits
$
118,431,853
$
59,277,173
See accompanying notes to financial statements.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2020
4
2020
Additions to net assets attributed to:
$
8,151,162
81,924
674,594
3,776,910
1,501,931
14,186,521
(4,232,245)
(374,154)
(4,606,399)
9,580,122
49,574,558
Net assets available for benefits:
59,277,173
$
118,431,853
See accompanying notes to financial statements.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
5
(1)
Description of the Plan
The following description of The Oriental Bank CODA Profit Sharing Plan (the “Plan”) provides only general
information. Participants should refer to the plan agreement for a more complete description of the Plan’s
provisions.
a)
General
The Plan was organized on January 1, 1992 as a defined contribution plan originally maintained by Oriental
Bank (the “Employer”), a wholly owned subsidiary of OFG Bancorp (the “Company”), for the benefit of
the Employer’s and its affiliated companies’ employees who are residents of Puerto Rico and are age 21 or
older. The Plan is intended to be a qualified plan pursuant to the Puerto Rico Internal Revenue Code of
2011, as amended (the “PR Code”). In 2016, the Plan was amended or restated to meet the requirements of
Sections 401(a) and (k) of the U.S. Internal Revenue Code of 1986, as amended (the “US Code”). In 2018,
the Puerto Rico Treasury Department (the “PR Treasury”) reaffirmed the Plan’s qualification under the PR
Code. It contains a cash or deferred arrangement qualifying under the PR Code and is subject to the
provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). As such, the
Plan must comply with reporting and disclosure requirements, participation and vesting standards, and
fiduciary standards and duties, among other requirements. The U.S. Department of Labor (DOL) has full
authority to regulate and investigate the Plan. The DOL reviewed the Plan, as it was selected under the
DOL’s ordinary investigation procedures. On December 18, 2019, the Employer received a findings letter
from the DOL outlining certain potential violations of the Prohibited Transaction Rules of ERISA. The
Employer resolved this matter in 2020. The DOL issued a closing letter in this matter on March 10,2021, as
it reviewed the corrective actions taken by the Employer. For more information related thereto, please refer
to Note 9.
On December 31, 2019, the Employer purchased from The Bank of Nova Scotia all the outstanding
common stock of Scotiabank de Puerto Rico (“SBPR”). Immediately following the closing of the SBPR
Acquisition, the Employer merged SBPR with and into the Employer, with the Employer continuing as the
surviving entity. In December 2020, the balances of the Retirement Plan of SBPR employee accounts were
transferred to the Plan.
b)
Contributions
Each year, participants may contribute up to the maximum deferral amount under the provisions of Section
402(g) of the US Code as annually indexed by the U.S. Internal Revenue Service (the “IRS”). For the
periods ended December 31, 2020 and 2019, the limits for both periods were $19,500 and $19,000,
respectively. If, in addition to a deferral election under the Plan, participants contribute to an individual
retirement account (“IRA”) in Puerto Rico, pre-tax contributions to both the Plan and the Puerto Rico IRA
in the aggregate cannot exceed the sum of the annual deferral limit under the PR Code ($19,500 and
$19,000 for the tax years ended December 31, 2020 and 2019, respectively). Participants may also
contribute amounts representing distributions from other Puerto Rico and U.S. qualified defined benefit or
contribution plans.
Participants direct the investment of their contributions into various investment options offered by the Plan.
The Plan currently offers pooled separate accounts, a stable value fund, and shares of common stock of the
Company as investment options for participants. Participants direct the investment of their matching
contributions in the Plan. The Employer provides a discretionary matching contribution of 50% of each
participant’s contributions up to a maximum contribution for matching purposes of 8% of the participant’s
compensation per year.
c)
Participant Accounts
Each participant’s account is credited with the participant’s contribution and allocations of the Employer’s
contribution and Plan earnings and charged with an allocation of administrative fees. Allocations are based
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
6
on participant earnings or account balances, as defined. The benefit to which a participant is entitled to is
the benefit that can be provided from the participant’s vested account.
d)
Vesting
Participants are immediately vested in their contributions plus actual earnings thereon. The Employer’s
contribution portion of their accounts plus actual earnings thereon vest upon the occurrence of any of the
following events: completion of three years of credited service; attaining age 65; total disability while
employed by the Employer; or death while employed by the Employer.
e)
Payment of Benefits
On termination of service due to death, disability, or retirement, a participant or its heirs may elect to
receive the value of the vested interest in his or her account in either a lump sum amount, a fixed period
that may not exceed the participant’s life expectancy or through a fixed annuity contract. For termination of
service for other reasons, a participant may receive the value of the vested interest in his or her account as a
lump sum distribution.
f)
Loans to Participants
The Plan does not allow for loans to participants. In December 2020, the balances of the Retirement Plan of
SBPR employee accounts were transferred to the Plan including its existing participant loans amounting to
$1.2 million. These loans will be extinguished as they are repaid by participants. Loan terms range from 1-5
years or up to 30 years for a home loan. The loans are secured by the balance in the participant’s account
and bear interest at a rate commensurate with the interest rate charged by persons in the business of lending
money for loans which would be made under similar circumstances. Principal and interest are paid ratably
through payroll deductions. No additional loans will be granted to participants.
g)
Forfeited Accounts
Employer contributions that are not vested upon termination of employment are forfeited and may be used
to pay administrative expenses and then reduce future contributions to the Plan by the Employer. For the
year ended December 31, 2020, forfeitures totaling approximately $11,000 were used to offset Employer
contributions. At December 31, 2020, the Plan had approximately $2,900 in forfeitures available to pay
administrative expenses and reduce future Employer contributions.
h)
Plan Termination
Although it has not expressed any intent to do so, the Employer has the right under the Plan to discontinue
its contributions at any time and to terminate the Plan subject to ERISA provisions. In the event of Plan
termination, participants will become 100% vested in their Employer’s contributions.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
7
(2)
Summary of Significant Accounting Policies
Following are the significant accounting policies followed by the Plan:
a)
Basis of Presentation
The accompanying financial statements have been prepared under the accrual method of accounting.
b)
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles
requires the plan administrator to make estimates and assumptions that affect the reported amounts of assets
and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could
differ from those estimates. A material estimate that is particularly susceptible to significant change in the
near term is the valuation of investments.
c)
Risks and Uncertainties
The Plan invests in various financial instruments. Investment securities are exposed to various risks, such
as interest rate, credit, and market risks. Due to the level of risk associated with certain investment
securities, it is reasonably possible that changes in the fair values of investment securities will occur in the
near term and that such changes could materially affect participants’ account balances and the amounts
reported in the statements of net assets available for benefits.
d)
Investments Valuation and Income Recognition
Plan investments, other than fully benefit –responsive investment contracts (FBRICs), are stated at fair
value. See Note 3 for discussion of fair value measurements.
FBRICs are reported at contract value, which is the amount participants would receive if they were to
initiate permitted transactions under the terms of the Plan. The Plan invests in FBRICs through the Stable
Value Fund.
Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the
accrual basis. Dividends are recorded on the declaration date, taking into consideration the ex-dividend
date. Net appreciation/ depreciation includes the Plan’s gains and losses on investments purchased and sold
as well as held during the year.
e)
Payments of Benefits
Benefits are recorded when paid.
f)
Plan Expenses
Under the Plan’s contract entered into with Transamerica Retirement Solutions Corporation
(“Transamerica”), contract asset charges are assessed each month based on the actual combined balance of
all separate accounts and the stable value fund. These charges are presented as administrative fees in the
Plan’s statement of changes in net assets available for benefits.
Administrative expenses, including trustee, legal, auditing, and other fees, may be paid out of the invested
assets unless paid by the Employer. Expenses assumed and paid by the Employer during the year ended
December 31, 2020 amounted to approximately $177,000.
g)
Recent Accounting Developments
Accounting standards that have been issued by the Financial Accounting Standards Board (“FASB”) or
other standards-setting bodies are not expected to have a material impact on the Plan’s statements of net
assets available for benefits or the related statement of changes in net assets available for benefits.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
8
(3)
Fair Value
As discussed in Note 2, the Plan uses the fair value measurement framework under U.S. generally accepted
accounting principles.
Fair Value Measurement
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and
minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to
measure fair value are:
Level 1
– assets include equity securities that are traded in an active exchange market, as well as certain
money market instruments. Valuations are obtained from readily available pricing sources for market
transactions involving identical assets.
Level 2
– observable inputs other than Level 1 prices such as quoted prices for similar assets; quoted prices in
markets that are not active; or other inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets.
Level 3
– unobservable inputs that are supported by little or no market activity and that are significant to the
fair value of the assets or liabilities. Level 3 assets include financial instruments whose value is determined
using pricing models, for which the determination of fair value requires significant management judgment or
estimation. As of December 31, 2020, and 2019, the Plan did not have such assets.
The following is a description of the valuation methodologies used for instruments measured at fair value:
Shares of the Company’s common stock
: valued at quoted closing market prices (“Level 1”).
Money Market Instruments
: stated at fair value, which approximates cost plus accumulated interest earnings less
distributions to date (“Level 1”).
Pooled Separate Accounts
: stated at readily determinable fair value. The fair value is determined by the issuer and is
valued daily using publicly available quoted market prices matched with the current underlying investment holdings
of the accounts (“Level 2”).
The estimated fair value is subjective in nature and 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.
There were no transfers into or out of Level 1 and Level 2 fair value measurements during the years ended
December 31, 2020 and 2019.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
9
The following tables set forth by level, within the fair value hierarchy, the Plan’s fair value measurements at
December 31, 2020 and 2019:
December 31, 2020
Fair Value Measurements
Level 1
Level 2
Level 3
Total
Cash and money market instruments
$
9,837
$
-
$
-
$
9,837
Common stock
5,684,027
-
-
5,684,027
Pooled separate accounts
-
65,703,459
-
65,703,459
-
6,237,599
-
6,237,599
-
2,212,238
-
2,212,238
-
19,645,424
-
19,645,424
-
5,032,921
-
5,032,921
-
2,837,716
-
2,837,716
$
5,693,864
$
101,669,357
$
-
$
107,363,221
December 31, 2019
Fair Value Measurements
Level 1
Level 2
Level 3
Total
Cash and money market instruments
$
222,863
$
-
222,863
Common stock
6,189,993
-
6,189,993
Pooled separate accounts
-
20,526,364
20,526,364
-
5,039,106
5,039,106
-
1,928,406
1,928,406
-
13,251,803
13,251,803
-
2,780,446
2,780,446
-
2,060,040
2,060,040
$
6,412,856
$
45,586,165
$
-
$
51,999,021
(a) The pooled separate accounts in this category primarily invest in U.S. and non-U.S. stocks, and fixed-income
securities which may include bonds, mutual funds, cash equivalents or other money market instruments.
(b) The pooled separate accounts in this category primarily invest in bonds (at least 80% of total assets), preferred
stocks, cash equivalents or other money market instruments.
(c) The pooled separate accounts in this category primarily invest at least 80% of assets in equity and debt
securities of issuers from countries outside of the United States.
(d) The pooled separate accounts in this category primarily invest in equity securities of medium and large
capitalization companies, and may invest in securities of non-U.S. issuers.
(e) The pooled separate accounts in this category primarily invest in domestic equity securities with growth
potential, including foreign equity securities and debt securities.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
10
(f) The pooled separate accounts in this category primarily invest in common stocks contained in both the Small
Cap 1750 Index and the Russell 2000 Value Index.
Investments can be redeemed with no advance notice on any day on which the New York Stock Exchange is open
for trading.
(4)
Stable Value Fund
Transamerica offers a stable value fund that the participant may elect to transfer all or part of his or her funds. The
stable value fund is considered a fully benefit-responsive investment contract. Contract value is the relevant
measurement attribute for that portion of the net assets available for benefits. Contract value, as reported by
Transamerica, is the beginning balance plus any deposit and credited interest, less any withdrawals, charges, or
expenses, a measurement that approximates fair value. Participants may ordinarily direct the withdrawal or transfer
of all or a portion of their investment at contract value.
There are no reserves against contract value for credit risk of Transamerica or otherwise. The contract value of the
investment contract at December 31, 2020 and 2019 was $9,735,927 and $6,565,321, respectively. The stable value
fund invests in Guaranteed Investment Contracts (“GICs”). These investments seek to protect against any loss of
principal while providing returns in excess of money market funds and one-year U.S. Treasury bills. The investment
has a portfolio investment rate design in which all deposits are credited with the same interest rate, on daily basis,
and with no set maturity. The effective credited interest rate is set monthly and effective on the first day of the
month. Contract charges may reduce this return. The Transamerica stable value fund is not a separate account
investment choice – it is an investment in Transamerica’s general account.
Certain events limit the ability of the Plan to transact at contract value with Transamerica. Such events include the
following: (1) the Plan is changed so as to significantly affect Transamerica’s obligations to the contract, (2) the
contract can no longer be treated as a pension plan contract, (3) the Plan is terminated, (4) failure to comply with the
contract’s requirements, (5) failure to provide information, (6) the sum of the contract account values at any time
equals $20,000 or less, or (7) the failure of the trust to qualify for exemption from federal income taxes or any
required prohibited transaction exemption under ERISA. The plan administrator is not aware of any events, which
would limit the Plan’s ability to transact at contract value with participants that are probable.
(5)
Other assets
Transamerica rebates certain amounts to the Plan based on a fee concession. The rebate amount at December 31,
2020 and 2019 is equal 34 basis points per year based on the balances with Transamerica. This rebate is calculated
on a monthly basis and credited to the Expense Budget Account; a suspense account used by Transamerica.
The Expense Budget Account may be used for plan expenses or allocated to participants as additional income.
During the years ended December 31, 2020 and 2019, the Plan reallocated to participants approximately $360,000
and $31,000, respectively. As of December 31, 2020 and 2019, the Expense Budget Account maintained a balance
of approximately $2 and $177,000, respectively, included as other assets in the statements of net asset available for
benefit.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
11
(6)
Related-Party Transactions
Certain Plan investments are shares of the Company’s common stock. The Employer is the Plan sponsor and trustee
and a wholly owned subsidiary of the Company and, therefore, qualifies as a party in interest. At December 31, 2020
and 2019, the Plan held an investment of 306,582 and 262,176 shares of the Company’s common stock,
respectively. The fair value of the common stock at December 31, 2020 and 2019 was $5,684,027 and $6,189,993,
respectively.
Transamerica serves as custodian and manages the pooled separate accounts and stable value fund, therefore,
qualifies as party in interest. Transamerica contracted Oriental Insurance, LLC, a subsidiary of the Company, as the
insurance agent. Another party in interest to the Plan is MidAtlantic, which serves as the custodian for the Plan.
The recordkeeper of the Plan is Oriental Pension Consultants, Inc. (“OPC”), a subsidiary of the Company. Fees
charged by OPC for services provided were assumed by the Employer.
(7)
Income Taxes
The trust that forms part of the Plan (the “Trust”) is intended to be exempt from Puerto Rico and U.S. federal
incomes taxes pursuant to the PR Code and the US Code, respectively. The Plan sponsor has adopted a volume
submitter plan document. The IRS has issued an opinion, dated April 22, 2016, that the form of the volume
submitter document is acceptable under Section 401 of the US Code, and, therefore, the Trust is not subject to U.S.
federal income tax. The PR Treasury ruled on March 28, 2018 that the Plan constitutes a qualified plan pursuant to
the provisions of Section 1081.01 of the PR Code and, therefore, the Trust is not subject to Puerto Rico income tax.
As applicable, the Plan is required to operate in accordance with the provisions of the PR Code and the US Code to
maintain its qualification. Effective in 2020, the Employer, adopted an amendment for the benefit of employees
eligible to participate in the Plan, which complies with the provisions of PR Treasury’s Circular Letters No. 11-10,
13-02 and 16-08, and on April 9, 2021, the Plan requested from the PR Treasury a favorable determination letter
with respect to such amendment. Although the Plan has been amended, the Plan sponsor believes that the Plan is
designed and is being operated within the applicable requirements of the PR Code and the US Code, therefore,
remains qualified under the PR Code and the US Code.
U.S. generally accepted accounting principles require plan management to evaluate tax positions taken by the Plan
and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not
be sustained upon examination by the IRS and the PR Treasury. As of December 31, 2020, and 2019, there are no
uncertain tax positions taken or expected to be taken that would require recognition or disclosure in the financial
statements. The Plan is subject to routine audits by taxing jurisdictions. However, there are currently no audits in
progress for any tax periods. The Plan is no longer subject to income tax examinations for the years prior to 2015.
(8)
Excess Contributions Payable to Participants
The Plan is subject to certain non-discrimination rules under the PR Code. As of December 31, 2020 and 2019, the
Plan failed certain of the non-discrimination tests under the PR Code due to lower contribution percentages by non-
highly compensated eligible employees relative to the contribution percentages of highly compensated eligible
employees. In order to meet the requirements of the non-discrimination rules, the Plan refunded a portion of the
contributions made by highly compensated participants, in accordance with applicable provisions of the PR Code.
The refund for 2020, paid in March 2021, totaled $141,632. The refund for 2019, paid in March 2020, totaled
$56,812. These refunds are included as other liabilities in the Plan’s statement of net assets available for benefits.
(9)
Non-Exempt Prohibited Transaction
From December 31, 2013 through December 31, 2018, Oriental Bank engaged in certain non-exempt prohibited
transactions under ERISA in connection with Plan assets. As a result of such transactions, Oriental Bank benefited
from the use of Plan assets by receiving certain commissions from a third party without offset or rebates to the Plan.
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019, AND YEAR ENDED DECEMBER 31, 2020
12
Oriental Bank remitted $567,528, including interest, to the Plan and allocated this amount to Plan participants in
May 2020 as remediation for said transactions. It was recorded as an account receivable in the Plan’s statement of
net assets available for benefits at December 31, 2019.
(10)
Subsequent events
The Plan has evaluated subsequent events from the statement of net assets available for benefits date through June
29, 2021, the filing date of this Annual Report on Form 11-K for the year ended December 31, 2020.
SCHEDULE I
THE ORIENTAL BANK CODA PROFIT SHARING PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2020
13
(b)
(c)
(d)
(e)
(a)
Identity of issue,
borrower,
lessor, or similar party
Description of Investment, including maturity
date, rate of interest, collateral, par,
or maturity value
Cost
Current value
Participant directed:
*
OFG Bancorp
OFG Bancorp:
Common Stock
306,582
shares
**
$
5,684,027
*
Transamerica
Pooled Separate Accounts:
Transamerica AA - Moderate
1,024,998
units
**
29,671,877
WMC Core Equity
388,963
units
**
8,333,210
AEGON Balanced
48,835
units
**
5,800,408
SSgA Russell Lg Cap Grth Ind
269,413
units
**
10,201,783
American Century Government Bond
123,938
units
**
2,726,319
Franklin Small-Mid Cap Growth
(1)
78,187
units
**
5,032,921
SSgA International Index
62,065
units
**
2,212,238
SSgA Russell SC Value Index
14,728
units
**
1,573,650
Transamerica AA - Moderate Growth
575,703
units
**
17,856,612
Loomis Sayles Investment Grade Bond
(2)
57,004
units
**
2,883,490
Transamerica AA - Growth
218,750
units
**
7,211,196
SSgA Russell LC Value Index
30,336
units
**
1,110,431
Transamerica AA - Conservative
190,770
units
**
5,163,366
Transamerica Partners High Yield Bond
12,717
units
**
627,790
TA Vanguard Small- Cap Index
1,647
units
**
532,860
TA Vanguard Small- Cap Grth Idx
9,813
units
**
731,206
101,669,357
Cash and money markets
Cash and Bank Deposit Sweep Program
**
9,837
Fully benefit-responsive
investment contract:
*
Transamerica
Transamerica Stable Value
471,473
units
**
9,735,927
Other assets:
*
Transamerica
Expense budget account
—
2
*
Participant Loans
Notes, with interest rate from 4.75% to
9.5%; maturities range through 2032
—
1,208,374
$
118,307,524
*
Party-in-interest as defined by ERISA
**
Not applicable as these are participant directed.
(1)
Effective October 14, 2020 investment option for Invesco American Value Ret Opt fund was replaced with this fund.
(2)
Effective October 14, 2020 investment option for Loomis Sayles Bond Ret Opt fund was replaced with this fund.
See the accompanying report of independent registered public accounting firm.
15
SIGNATURES
The Plan
. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who
administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: June 29, 2021 /s/ Maritza Arizmendi