EX-99 2 ofg-20241qxexx99.htm EX-99 Document

Exhibit 99
ofgbancorplogo.jpg
OFG Bancorp Reports 1Q24 Results
SAN JUAN, Puerto Rico, April 18, 2024 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the first quarter ended March 31, 2024. EPS diluted of $1.05 compared to $0.98 in 4Q23 and $0.96 in 1Q23. Total core revenues of $174.2 million compared to $175.6 million in 4Q23 and $164.4 million in 1Q23.

CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “First quarter EPS-diluted increased 9.4% year-over-year on a 5.9% increase in total core revenues, reflecting an overall solid performance across all businesses in line with our plans. Our Digital First strategy continues to drive customer acquisition and engagement. Puerto Rico business activity and consumer liquidity looks good. Our balance sheet is well positioned for a higher for longer interest rate environment. Thanks to our team members for their hard work and commitment to helping our customers and communities achieve progress.”

1Q24 Highlights
Performance Metrics: Net interest margin of 5.40%, return on average assets of 1.77%, return on average tangible common stockholders’ equity of 17.92%, and efficiency ratio of 52.49%.

Total Interest Income of $183.4 million compared to $176.2 million in 4Q23 and $149.0 million in 1Q23. Compared to 4Q23, 1Q24 primarily reflected higher average balances and yields on investment securities, cash and loans. 1Q24 included one fewer day than 4Q23, which reduced interest income by about $1.4 million.

Total Interest Expense of $39.3 million compared to $32.7 million in 4Q23 and $13.1 million in 1Q23. Compared to the previous quarter, 1Q24 core deposit average balances increased 10% and the cost increased 40 basis points reflecting the full effect of the $1.2B in government funds deposited late in 4Q23.

Total Banking & Financial Service Revenues of $30.1 million compared to $32.1 million in 4Q23 and $28.5 million in 1Q23. 1Q24 reflected one fewer day compared to 4Q23, which included $2.5 million of annual insurance recognition.

Pre-Provision Net Revenues of $83.0 million compared to $88.2 million in 4Q23 and $74.6 million in 1Q23. 4Q23 included $8.8 million from a gain on the sale of nonperforming commercial loans and from annual insurance recognition revenues.

Total Provision for Credit Losses of $15.1 million compared to $19.7 million in 4Q23 and $9.4 million in 1Q23. 1Q24 provision reflected $15.1 million related to loan volume and $1.7 million as a result of the strategic sale of a performing U.S. commercial loan. This was partially offset by $1.7 million mainly due to a reduction in specific reserves for payments received on substantially reserved U.S. commercial loans.



Credit Quality: Net charge-offs of $19.8 million compared to $16.3 million in 4Q23 and $10.1 million in 1Q23. 1Q24 included $3.5 million from previously and fully reserved nonperforming PPP loans. 1Q24 early and total delinquency rates were 2.41% and 3.30%, respectively, lower than 4Q23 and pre-pandemic levels. The nonperforming loan rate of 1.10% was the lowest over the last five quarters.

Total Non-Interest Expense of $91.4 million compared to $94.1 million in 4Q23 and $90.2 million in 1Q23. 1Q24 included a higher level of FICA payments compared to 4Q23, which included $3.2 million in workforce early retirement and rightsizing costs.

Effective Tax Rate of 26.8% compared to 31.9% in 4Q23 and 1Q23. 1Q24 reflected expected 2024 ETR of 29.0% due to higher forecasted business activities with preferential tax treatment under the Puerto Rico tax code, coupled with a $1.1 million discrete benefit for stock vested in 1Q24.

Loans Held for Investment (EOP) of $7.54 billion compared to $7.53 billion in 4Q23 and $6.85 billion in 1Q23. Loans were approximately level with December 31, 2023 balances and up 10.0% year-over-year. Compared to 4Q23, 1Q24 loans reflected increases in retail auto and consumer, partially offset by regular paydowns of residential mortgages and securitization and sale of conforming loans as well as seasonal paydowns of commercial lines of credit.

New Loan Production of $536.6 million compared to $663.9 million in 4Q23 and $561.3 million in 1Q23. Compared to 4Q23, production reflected increased auto and consumer lending and lower commercial and residential mortgage lending.

Total Investments (EOP) of $2.48 billion compared to $2.69 billion in 4Q23 and $1.92 billion in 1Q23. 1Q24 primarily reflected the sale of a Treasury bill position.

Customer Deposits (EOP) of $9.55 billion compared to $9.60 billion in 4Q23 and $8.57 billion in 1Q23.

Total Borrowings & Brokered Deposits (EOP) of $203.3 million compared to $363.0 million in 4Q23 and $226.8 million in 1Q23. Compared to 4Q23, 1Q24 reflected a reduced need for wholesale funding.

Cash & Cash Equivalents (EOP) of $754.4 million compared to $748.2 million in 4Q23 and $847.5 million in 1Q23.

Capital: CET1 ratio was 14.45% compared to 14.12% in 4Q23 and 14.07% in 1Q23. The Tangible Common Equity ratio was 10.06% compared to 9.68% in 4Q23 and 9.85% in 1Q23. Tangible Book Value (TBV) of $23.55 per share compared to $23.13 in 4Q23 and $20.57 in 1Q23. 1Q24 TBV reflected increased retained earnings.

Conference Call, Financial Supplement & Presentation
A conference call to discuss 1Q24 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 225-9448 or (203) 518-9708. Conference ID: OFGQ124. The call can also be accessed live on  www.ofgbancorp.com with webcast replay shortly thereafter.
OFG’s Financial Supplement, with full financial tables for the quarter ended March 31, 2024, and the 1Q24 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.




Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.
Forward Looking Statements
The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements.

Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, pandemics, and other natural disasters; and (iv) competition in the financial services industry.
For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
About OFG Bancorp
Now in its 60th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at www.ofgbancorp.com. 
# # #
Contacts
Puerto Rico & USVI: Idalis Montalvo (idalis.montalvo@orientalbank.com) at (787) 777-2847
US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder
(sanreder@ofgbancorp.com) at (212) 532-3232



OFG Bancorp
Financial Supplement
The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our March 31, 2024 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.


OFG Bancorp (NYSE: OFG)
Table 1-1: Financial and Statistical Summary - Consolidated

2024
2023
2023
2023
2023
(Dollars in thousands, except per share data) (unaudited)
Q1
Q4
Q3
Q2
Q1
Statement of Operations
Net interest income $144,102$143,542$141,787$139,644$135,897
Non-interest income, net (core)(1)30,05932,06130,40430,85928,531
Total core revenues(2)174,161175,603172,191170,503164,428
Non-interest expense 91,41294,09990,15888,88890,220
Pre-provision net revenues(21)83,03888,15182,32880,82974,578
Total provision for credit losses 15,12119,71916,43015,0449,445
Net income before income taxes 67,91768,43265,89865,78565,133
Income tax expense 18,22521,83521,02521,61218,904
Net income available to common stockholders 49,69246,59744,87344,17346,229
Common Share Statistics      
Earnings per common share - basic(3)$1.06$0.99$0.95$0.93$0.97
Earnings per common share - diluted(4)$1.05$0.98$0.95$0.93$0.96
Average common shares outstanding 47,09647,06147,11447,26647,600
Average common shares outstanding and equivalents 47,48547,38647,39247,49047,944
Cash dividends per common share $0.25$0.22$0.22$0.22$0.22
Book value per common share (period end) $25.75$25.36$23.28$23.36$22.88
Tangible book value per common share (period end)(5)$23.55$23.13$21.01$21.06$20.57
Balance Sheet (Average Balances)      
Loans(6)$7,541,757$7,417,084$7,191,243$7,002,971$6,866,586
Interest-earning assets 10,739,59010,129,0619,702,1679,492,8619,359,211
Total assets 11,199,86710,588,58410,180,93110,020,9409,900,409
Core deposits 9,532,7908,691,5168,621,6528,531,5838,594,392
Total deposits 9,591,5278,834,2348,624,0528,531,5838,604,621
Interest-bearing deposits 7,055,2076,282,9166,042,1655,955,6115,950,481
Borrowings 220,773459,315263,981226,25664,168
Stockholders' equity 1,213,4691,128,7471,127,6021,108,8801,077,703
Performance Metrics      
Net interest margin(7)5.40 %5.62 %5.80 %5.90 %5.89 %
Return on average assets(8)1.77 %1.76 %1.76 %1.76 %1.87 %
Return on average tangible common stockholders' equity(9)17.92 %18.22 %17.59 %17.67 %19.13 %
Efficiency ratio(10)52.49 %53.59 %52.36 %52.13 %54.87 %
Full-time equivalent employees, period end 2,230 2,248 2,264 2,265 2,249 
Credit Quality Metrics     
Allowance for credit losses$156,563$161,106$157,529$159,923$151,884
Allowance as a % of loans held for investment2.08 %2.14 %2.17 %2.25 %2.22 %
Net charge-offs$19,812$16,282$18,836$6,606$10,120
Net charge-off rate(11)1.05 %0.88 %1.05 %0.38 %0.59 %
Early delinquency rate (30 - 89 days past due)2.41 %2.76 %2.75 %2.53 %2.11 %
Total delinquency rate (30 days and over)3.30 %3.76 %3.78 %3.67 %3.40 %
Capital Ratios (period end) (Non-GAAP)(12)(20)
Leverage ratio10.76 %11.03 %11.03 %10.85 %10.75 %
Common equity Tier 1 capital ratio14.45 %14.12 %14.06 %14.03 %14.07 %
Tier 1 risk-based capital ratio14.45 %14.12 %14.06 %14.03 %14.07 %
Total risk-based capital ratio15.71 %15.37 %15.31 %15.29 %15.33 %
Tangible common equity ("TCE") ratio10.06 %9.68 %9.74 %9.99 %9.85 %


2

OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited) March 31, 2024December 31, 2023September 30,
2023		June 30,
2023		March 31,
2023
Interest income: 
Loans
Non-PCD loans $132,972 $131,167 $124,847 $116,699 $109,330 
PCD loans 16,622 17,609 17,292 18,819 18,981 
Total interest income from loans 149,594 148,776 142,139 135,518 128,311 
Investment securities and cash 33,832 27,423 23,569 22,470 20,674 
Total interest income 183,426 176,199 165,708 157,988 148,985 
Interest expense:
Deposits
Core deposits 35,989 24,753 20,787 15,916 12,489 
Brokered deposits 803 1,980 32 — 8 
Total deposits 36,792 26,733 20,819 15,916 12,497 
Borrowings 2,532 5,924 3,102 2,428 591 
Total interest expense 39,324 32,657 23,921 18,344 13,088 
Net interest income 144,102 143,542 141,787 139,644 135,897 
Provision for credit losses, excluding PCD loans16,605 20,681 16,648 16,650 8,146 
(Recapture of) provision for credit losses on PCD loans(1,484)(962)(218)(1,606)1,299 
Total provision for credit losses 15,121 19,719 16,430 15,044 9,445 
Net interest income after provision for credit losses 128,981 123,823 125,357 124,600 126,452 
Non-interest income:      
Banking service revenues 17,259 17,822 17,303 17,440 17,513 
Wealth management revenues 8,107 9,985 7,691 8,194 7,120 
Mortgage banking activities 4,693 4,254 5,410 5,225 3,898 
Total banking and financial service revenues 30,059 32,061 30,404 30,859 28,531 
Other income (loss), net 289 6,647 295 (786)370 
Total non-interest income, net 30,348 38,708 30,699 30,073 28,901 
Non-interest expense:
Compensation and employee benefits 39,816 41,418 38,095 37,841 38,473 
Occupancy, equipment and infrastructure costs 14,322 15,729 14,887 14,362 14,257 
General and administrative expenses 36,606 35,803 37,203 39,005 36,697 
Foreclosed real estate and other repossessed assets expenses (income), net 668 1,149 (27)(2,320)793 
Total non-interest expense 91,412 94,099 90,158 88,888 90,220 
Income before income taxes 67,917 68,432 65,898 65,785 65,133 
Income tax expense 18,225 21,835 21,025 21,612 18,904 
Net income available to common shareholders $49,692 $46,597 $44,873 $44,173 $46,229 
(
3

OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Cash and cash equivalents$754,392 $748,173 $532,699 $798,973 $847,494 
Investments:
Trading securities14 13 14 13 10 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities1,746,195 1,801,849 1,511,779 1,139,996 1,109,889 
US treasury notes150,915 296,799 739 748 242,098 
Other investment securities597 616 635 1,101 1,119 
Total investment securities available-for-sale1,897,707 2,099,264 1,513,153 1,141,845 1,353,106 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities309,764 314,710 320,249 326,935 332,852 
US treasury notes199,727 199,314 198,896 198,478 198,028 
Other investment securities35,000 35,000 — — — 
Total investment securities held-to-maturity544,491 549,024 519,145 525,413 530,880 
Equity securities40,162 38,469 42,162 35,946 33,218 
Total investments2,482,374 2,686,770 2,074,474 1,703,217 1,917,214 
Loans, net7,411,378 7,401,618 7,130,052 6,988,244 6,735,281 
Other assets:
Prepaid expenses61,916 62,858 67,191 67,966 59,125 
Deferred tax asset, net4,379 4,923 11,121 20,306 37,372 
Foreclosed real estate and repossessed properties17,694 14,812 13,987 14,643 13,813 
Premises and equipment, net104,980 104,102 103,040 104,166 104,851 
Goodwill84,241 84,241 84,241 84,241 84,241 
Other intangibles19,216 20,694 22,419 24,143 25,868 
Right of use assets21,606 21,725 20,011 21,840 23,897 
Servicing asset49,553 49,520 50,601 49,966 49,345 
Accounts receivable and other assets147,506 145,017 147,302 153,842 159,080 
Total assets$11,159,235 $11,344,453 $10,257,138 $10,031,547 $10,057,581 
Deposits:
Demand deposits$6,036,891 $6,050,428 $4,894,958 $5,008,521 $5,038,122 
Savings accounts2,001,770 2,088,102 2,216,162 2,222,326 2,271,774 
Time deposits1,507,037 1,461,459 1,427,497 1,307,179 1,255,525 
Brokered deposits2,576 162,180 2,936 — — 
Total deposits9,548,274 9,762,169 8,541,553 8,538,026 8,565,421 
Borrowings:     
Securities sold under agreements to repurchase— — 150,701 — — 
Advances from FHLB and other borrowings200,766 200,770 300,774 226,507 226,789 
Total borrowings200,766 200,770 451,475 226,507 226,789 
Other liabilities:     
Acceptances outstanding25,826 25,576 30,984 35,945 30,094 
Lease liability23,969 24,029 22,269 24,031 25,990 
GNMA buy-back option program liability(22)18,510 19,401 18,227 18,417 26,348 
Deferred tax liability, net
22,876 22,444 — — — 
Accrued expenses and other liabilities103,361 96,584 97,167 88,870 93,429 
Total liabilities9,943,582 10,150,973 9,161,675 8,931,796 8,968,071 
Stockholders' equity:
Common stock59,885 59,885 59,885 59,885 59,885 
Additional paid-in capital636,208 638,667 637,389 636,051 634,785 
Legal surplus155,732 150,967 146,774 142,567 138,333 
Retained earnings 672,455 639,324 607,466 577,042 547,641 
Treasury stock, at cost(226,896)(228,350)(228,374)(226,230)(212,794)
Accumulated other comprehensive income (loss), net
(81,731)(67,013)(127,677)(89,564)(78,340)
Total stockholders' equity1,215,653 1,193,480 1,095,463 1,099,751 1,089,510 
Total liabilities and stockholders' equity$11,159,235 $11,344,453 $10,257,138 $10,031,547 $10,057,581 

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OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Non-PCD:
Mortgage, excluding GNMA buy-back option program$591,430 $609,846 $630,187 $623,138 $634,799 
Mortgage GNMA buy-back option program(22)18,509 19,401 18,227 18,417 26,348 
Commercial PR2,178,748 2,186,228 1,985,535 1,952,178 1,808,379 
Commercial US740,665 755,228 707,593 669,332 617,574 
Consumer627,436 619,894 612,623 593,122 564,365 
Auto2,339,836 2,272,530 2,208,993 2,124,076 2,034,676 
6,496,624 6,463,127 6,163,158 5,980,263 5,686,141 
Less:  Allowance for credit losses(148,767)(152,610)(148,210)(150,167)(141,385)
Total non-PCD loans held for investment, net6,347,857 6,310,517 6,014,948 5,830,096 5,544,756 
PCD:
Mortgage909,106 933,362 955,596 980,833 1,007,751 
Commercial PR132,035 135,447 139,857 152,888 155,614 
Consumer544 552 572 568 607 
Auto1,358 1,891 2,552 3,319 4,367 
1,043,043 1,071,252 1,098,577 1,137,608 1,168,339 
Less:  Allowance for credit losses(7,796)(8,496)(9,319)(9,756)(10,499)
Total PCD loans held for investment, net1,035,247 1,062,756 1,089,258 1,127,852 1,157,840 
Total loans held for investment7,383,104 7,373,273 7,104,206 6,957,948 6,702,596 
Mortgage loans held for sale9,370 — 564 11,397 13,616 
Other loans held for sale18,904 28,345 25,282 18,899 19,069 
Total loans, net$7,411,378 $7,401,618 $7,130,052 $6,988,244 $6,735,281 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program$1,500,536 $1,543,208 $1,585,783 $1,603,971 $1,642,550 
Mortgage GNMA buy-back option program(22)18,509 19,401 18,227 18,417 26,348 
Commercial PR2,310,783 2,321,675 2,125,392 2,105,066 1,963,993 
Commercial US740,665 755,228 707,593 669,332 617,574 
Consumer627,980 620,446 613,195 593,690 564,972 
Auto2,341,194 2,274,421 2,211,545 2,127,395 2,039,043 
7,539,667 7,534,379 7,261,735 7,117,871 6,854,480 
Less:  Allowance for credit losses(156,563)(161,106)(157,529)(159,923)(151,884)
Total loans held for investment, net7,383,104 7,373,273 7,104,206 6,957,948 6,702,596 
Mortgage loans held for sale9,370 — 564 11,397 13,616 
Other loans held for sale18,904 28,345 25,282 18,899 19,069 
Total loans, net$7,411,378 $7,401,618 $7,130,052 $6,988,244 $6,735,281 
5

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
  Quarter Ended
(Dollars in thousands) (unaudited)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Loan production(13)
Mortgage $32,180 $33,332 $33,346 $35,932 $30,344 
Commercial PR 186,412 285,517 150,105 210,746 98,300 
Commercial US 17,106 57,442 70,311 111,817 124,074 
Consumer 68,591 63,785 76,465 87,062 86,284 
Auto 232,314 223,780 237,290 236,283 222,325 
Total $536,603 $663,856 $567,517 $681,840 $561,327 
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OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2024 Q1
2023 Q4
2023 Q3
2023 Q2
2023 Q1
(Dollars in thousands) (unaudited)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest earning assets:
Cash equivalents$600,291 $7,996 5.36 %$517,025 $6,906 5.30 %$680,864 $9,025 5.26 %$693,373 $9,029 5.22 %$552,635 $6,445 4.73 %
Investment securities2,597,542 25,836 3.98 %2,194,952 20,517 3.74 %1,830,060 14,544 3.18 %1,796,517 13,441 2.99 %1,939,990 14,229 2.93 %
Loans held for investment
Non-PCD loans6,476,048 132,972 8.26 %6,320,321 131,167 8.23 %6,065,822 124,847 8.17 %5,840,860 116,699 8.01 %5,670,966 109,330 7.82 %
PCD loans1,065,709 16,622 6.24 %1,096,763 17,609 6.42 %1,125,421 17,292 6.15 %1,162,111 18,819 6.48 %1,195,620 18,981 6.35 %
Total loans7,541,757 149,594 7.98 %7,417,084 148,776 7.96 %7,191,243 142,139 7.84 %7,002,971 135,518 7.76 %6,866,586 128,311 7.58 %
Total interest-earning assets$10,739,590 $183,426 6.87 %$10,129,061 $176,199 6.90 %$9,702,167 $165,708 6.78 %$9,492,861 $157,988 6.68 %$9,359,211 $148,985 6.46 %
Interest bearing liabilities:          
Deposits          
NOW accounts$3,472,852 $20,516 2.38 %$2,559,135 $9,551 1.48 %$2,445,955 $6,974 1.13 %$2,455,040 $4,973 0.81 %$2,497,917 $4,212 0.68 %
Savings accounts2,042,865 4,417 0.87 %2,141,230 4,986 0.92 %2,260,678 5,478 0.96 %2,222,710 4,129 0.75 %2,232,903 3,135 0.57 %
Time deposits1,480,753 9,924 2.70 %1,439,833 8,895 2.45 %1,333,132 7,014 2.09 %1,277,861 5,493 1.72 %1,209,432 3,821 1.28 %
Brokered deposits58,737 803 5.50 %142,718 1,980 5.50 %2,400 32 5.30 %— — — %10,229 8 0.30 %
 7,055,207 35,660 2.03 %6,282,916 25,412 1.60 %6,042,165 19,498 1.28 %5,955,611 14,595 0.98 %5,950,481 11,176 0.76 %
Non-interest bearing deposit accounts2,536,320 — — 2,551,318 — — 2,581,887 — — 2,575,972 — — 2,654,140 — — 
Fair value premium and core deposit intangible amortization— 1,132 — — 1,321 — — 1,321 — — 1,321 — — 1,321 — 
Total deposits9,591,527 36,792 1.54 %8,834,234 26,733 1.20 %8,624,052 20,819 0.96 %8,531,583 15,916 0.75 %8,604,621 12,497 0.59 %
Borrowings
Securities sold under agreements to repurchase— — — %183,858 2,578 5.56 %52,365 728 5.52 %— — — %— — — %
Advances from FHLB and other borrowings220,773 2,532 4.61 %275,457 3,346 4.82 %211,616 2,374 4.45 %226,256 2,428 4.30 %64,168 591 3.74 %
Total borrowings220,773 2,532 4.61 %459,315 5,924 5.12 %263,981 3,102 4.66 %226,256 2,428 4.30 %64,168 591 3.74 %
Total interest-bearing liabilities$9,812,300 $39,324 1.61 %$9,293,549 $32,657 1.39 %$8,888,033 $23,921 1.07 %$8,757,839 $18,344 0.84 %$8,668,789 $13,088 0.61 %
Interest rate spread $144,102 5.26 % $143,542 5.51 % $141,787 5.71 % $139,644 5.84 % $135,897 5.85 %
Net interest margin  5.40 %  5.62 %  5.80 %  5.90 %  5.89 %
Core deposits: (Non-GAAP)               
NOW accounts$3,472,852 $20,516 2.38 %$2,559,135 $9,551 1.48 %$2,445,955 $6,974 1.13 %$2,455,040 $4,973 0.81 %$2,497,917 $4,212 0.68 %
Savings accounts2,042,865 4,417 0.87 %2,141,230 4,986 0.92 %2,260,678 5,478 0.96 %2,222,710 4,129 0.75 %2,232,903 3,135 0.57 %
Time deposits1,480,753 9,924 2.70 %1,439,833 8,895 2.45 %1,333,132 7,014 2.09 %1,277,861 5,493 1.72 %1,209,432 3,821 1.28 %
 6,996,470 34,857 2.00 %6,140,198 23,432 1.51 %6,039,765 19,466 1.28 %5,955,611 14,595 0.98 %5,940,252 11,168 0.76 %
Non-interest bearing deposit accounts2,536,320 — — 2,551,318 — — 2,581,887 — — 2,575,972 — — 2,654,140 — — 
Total core deposits$9,532,790 $34,857 1.47 %$8,691,516 $23,432 1.07 %$8,621,652 $19,466 0.90 %$8,531,583 $14,595 0.69 %$8,594,392 $11,168 0.53 %
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings
$220,773 $2,532 4.61 %$459,315 $5,924 5.12 %$263,981 $3,102 4.66 %$226,256 $2,428 4.30 %$64,168 $591 3.74 %
Brokered deposits
58,737 803 5.50 %142,718 1,980 5.50 %2,400 32 5.30 %— — — %10,229 8 0.30 %
Total borrowings and brokered deposits
$279,510 $3,335 4.80 %$602,033 $7,904 5.21 %$266,381 $3,134 4.67 %$226,256 $2,428 4.30 %$74,397 $599 3.27 %
7

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
20242023202320232023
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs$64 $150 $218 $191 $200 
Recoveries(267)(483)(185)(333)(216)
Total mortgage(203)(333)33 (142)(16)
Commercial PR:
Charge-offs3,567 377 1,404 523 1,375 
Recoveries(52)(114)(156)(237)(326)
Total commercial PR3,515 263 1,248 286 1,049 
Commercial US:
Charge-offs1,749 689 6,850 2,973 — 
Recoveries— (23)(18)— — 
Total commercial US1,749 666 6,832 2,973 — 
Consumer:     
Charge-offs7,981 6,799 5,894 5,518 5,444 
Recoveries(693)(650)(655)(2,003)(867)
Total consumer7,288 6,149 5,239 3,515 4,577 
Auto:     
Charge-offs14,218 14,658 10,458 9,170 9,478 
Recoveries(5,971)(4,982)(5,193)(8,332)(6,600)
Total auto8,247 9,676 5,265 838 2,878 
Total$20,596 $16,421 $18,617 $7,470 $8,488 
PCD
Mortgage:
Charge-offs$83 $94 $148 $1 $74 
Recoveries(638)(111)(80)(260)(247)
Total mortgage(555)(17)68 (259)(173)
Commercial PR:     
Charge-offs— — 690 — 2,104 
Recoveries(157)(315)(494)(319)(490)
Total commercial PR(157)(315)196 (319)1,614 
Consumer:     
Charge-offs— 244 39 123 215 
Recoveries(23)(19)(23)(43)(11)
Total consumer(23)225 16 80 204 
Auto:     
Charge-offs9 12 37 35 86 
Recoveries(58)(44)(98)(401)(99)
Total auto(49)(32)(61)(366)(13)
Total$(784)$(139)$219 $(864)$1,632 
Total Net Charge-offs$19,812 $16,282 $18,836 $6,606 $10,120 
Net Charge-off Rates     
Mortgage-0.20 %-0.09 %0.03 %-0.10 %-0.05 %
Commercial PR0.58 %-0.01 %0.27 %-0.01 %0.54 %
Commercial US0.92 %0.36 %3.96 %1.81 %— %
Consumer4.45 %3.95 %3.33 %2.37 %3.30 %
Auto1.42 %1.72 %0.96 %0.09 %0.57 %
Total1.05 %0.88 %1.05 %0.38 %0.59 %
Average Loans Held For Investment     
Mortgage$1,511,281 $1,562,135 $1,576,637 $1,616,873 $1,653,423 
Commercial PR2,312,561 2,230,342 2,122,169 2,040,547 1,985,001 
Commercial US756,409 736,640 690,105 657,439 642,609 
Consumer652,843 644,834 630,492 606,842 579,467 
Auto2,308,663 2,243,133 2,171,840 2,081,270 2,006,086 
Total$7,541,757 $7,417,084 $7,191,243 $7,002,971 $6,866,586 
8



OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
20242023202320232023
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Early Delinquency (30 - 89 days past due)     
Mortgage$13,080 $15,703 $14,380 $13,976 $11,417 
Commercial6,128 3,653 5,666 11,668 3,898 
Consumer10,901 11,366 10,160 8,188 8,478 
Auto126,704 147,681 139,278 117,237 96,294 
Total $156,813 $178,403 $169,484 $151,069 $120,087 
Early Delinquency Rates (30 - 89 days past due)     
Mortgage2.14 %2.50 %2.22 %2.18 %1.73 %
Commercial0.21 %0.12 %0.21 %0.45 %0.16 %
Consumer1.74 %1.83 %1.66 %1.38 %1.50 %
Auto5.42 %6.50 %6.31 %5.52 %4.73 %
Total2.41 %2.76 %2.75 %2.53 %2.11 %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation$25,985 $27,859 $30,661 $31,189 $32,084 
GNMA's buy-back option program(22)18,509 19,401 18,227 18,418 26,348 
Total mortgage44,494 47,260 48,888 49,607 58,432 
Commercial14,171 14,298 15,109 28,643 12,881 
Consumer14,760 14,742 13,422 11,026 11,402 
Auto141,220 166,737 155,579 130,367 110,749 
Total$214,645 $243,037 $232,998 $219,643 $193,464 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation4.26 %4.43 %4.73 %4.86 %4.85 %
GNMA's buy-back option program(22)3.03 %3.08 %2.81 %2.87 %3.99 %
Total mortgage7.29 %7.51 %7.54 %7.73 %8.84 %
Commercial0.49 %0.49 %0.56 %1.09 %0.53 %
Consumer2.35 %2.38 %2.19 %1.86 %2.02 %
Auto6.04 %7.34 %7.04 %6.14 %5.44 %
Total3.30 %3.76 %3.78 %3.67 %3.40 %
Nonperforming Assets(14)
Mortgage$19,044 $20,007 $25,354 $27,600 $30,641 
Commercial33,794 36,096 36,649 43,188 27,025 
Consumer3,893 3,376 3,359 2,907 2,979 
Auto14,516 19,056 16,301 13,130 14,455 
Total nonperforming loans71,247 78,535 81,663 86,825 75,100 
Foreclosed real estate10,850 11,348 10,639 10,639 9,250 
Other repossessed assets6,844 7,042 4,004 4,004 4,563 
Total nonperforming assets$88,941 $96,925 $96,306 $101,468 $88,913 
Nonperforming Loan Rates     
Mortgage3.12 %3.18 %3.91 %4.30 %4.63 %
Commercial1.16 %1.23 %1.36 %1.65 %1.11 %
Consumer0.62 %0.54 %0.55 %0.49 %0.53 %
Auto0.62 %0.84 %0.74 %0.62 %0.71 %
Total loans1.10 %1.22 %1.33 %1.45 %1.32 %

9

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
 20242023202320232023
(Dollars in thousands) (unaudited) Q1Q4Q3Q2Q1
Nonperforming PCD Loans(14)
Mortgage $247 $250 $253 $256 $258 
Commercial 5,969 6,424 6,688 8,104 8,446 
Consumer — — 7 — — 
Total nonperforming loans $6,216 $6,674 $6,948 $8,360 $8,704 
Nonperforming PCD Loan Rates      
Mortgage 0.03 %0.03 %0.03 %0.03 %0.03 %
Commercial 4.52 %4.74 %4.78 %5.30 %5.43 %
Consumer 0.00 %0.00 %1.22 %0.00 %0.00 %
Total 0.60 %0.62 %0.63 %0.73 %0.74 %
Total PCD Loans Held for Investment     
Mortgage $909,106 $933,362 $955,596 $980,833 $1,007,751 
Commercial 132,035 135,447 139,857 152,888 155,614 
Consumer 544 552 572 568 607 
Auto1,358 1,891 2,552 3,319 4,367 
Total loans $1,043,043 $1,071,252 $1,098,577 $1,137,608 $1,168,339 
 20242023202320232023
(Dollars in thousands) (unaudited) Q1Q4Q3Q2Q1
Total Nonperforming Loans(14)     
Mortgage $19,291 $20,257 $25,607 $27,856 $30,899 
Commercial 39,763 42,520 43,337 51,292 35,471 
Consumer 3,893 3,376 3,366 2,907 2,979 
Auto 14,516 19,056 16,301 13,130 14,455 
Total nonperforming loans $77,463 $85,209 $88,611 $95,185 $83,804 
Total Nonperforming Loan Rates 
Mortgage 1.27 %1.30 %1.60 %1.72 %1.85 %
Commercial 1.30 %1.38 %1.53 %1.85 %1.37 %
Consumer 0.62 %0.54 %0.55 %0.49 %0.53 %
Auto 0.62 %0.84 %0.74 %0.62 %0.71 %
Total 1.03 %1.13 %1.22 %1.34 %1.22 %
Total Loans Held for Investment     
Mortgage $1,519,045 $1,562,609 $1,604,010 $1,622,388 $1,668,898 
Commercial 3,051,448 3,076,903 2,832,985 2,774,398 2,581,567 
Consumer 627,980 620,446 613,195 593,690 564,972 
Auto 2,341,194 2,274,421 2,211,545 2,127,395 2,039,043 
Total loans $7,539,667 $7,534,379 $7,261,735 $7,117,871 $6,854,480 


10

OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended March 31, 2024
(Dollars in thousands) (unaudited)MortgageCommercialConsumerAutoTotal
Allowance for credit losses Non-PCD:     
Balance at beginning of period$7,998 $44,041 $27,086 $73,485 $152,610 
(Recapture of) provision for credit losses(574)(1,406)7,655 11,078 16,753 
Charge-offs(64)(5,316)(7,981)(14,218)(27,579)
Recoveries267 52 693 5,971 6,983 
Balance at end of period$7,627 $37,371 $27,453 $76,316 $148,767 
Allowance for credit losses PCD:
Balance at beginning of period$7,351 $1,113 $7 $25 $8,496 
Recapture of credit losses(1,268)(137)(23)(56)(1,484)
Charge-offs(83)— — (9)(92)
Recoveries638 157 23 58 876 
Balance at end of period$6,638 $1,133 $7 $18 $7,796 
Allowance for credit losses summary:
Balance at beginning of period$15,349 $45,154 $27,093 $73,510 $161,106 
(Recapture of) provision for credit losses(1,842)(1,543)7,632 11,022 15,269 
Charge-offs(147)(5,316)(7,981)(14,227)(27,671)
Recoveries905 209 716 6,029 7,859 
Balance at end of period$14,265 $38,504 $27,460 $76,334 $156,563 
Allowance coverage ratio0.94 %1.26 %4.37 %3.26 %2.08 %


11

OFG Bancorp (NYSE: OFG)
Table 8-1: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital
In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and TCE ratio. The table below provides the details of the calculation of our regulatory capital and non-GAAP capital measures. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.
20242023202320232023
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity$1,215,653 $1,193,480 $1,095,463 $1,099,751 $1,089,510 
Less:  Intangible assets(103,457)(104,935)(106,660)(108,384)(110,109)
Tangible common equity$1,112,196 $1,088,545$988,803$991,367$979,401
     
Common shares outstanding at end of period47,217 47,065 47,058 47,076 47,611 
Tangible book value per common share (Non-GAAP)$23.55 $23.13 $21.01 $21.06 $20.57 
Total Assets to Tangible Assets     
Total assets  $11,159,235 $11,344,453 $10,257,138 $10,031,547 $10,057,581 
Less:  Intangible assets(103,457)(104,935)(106,660)(108,384)(110,109)
Tangible assets (Non-GAAP)$11,055,778 $11,239,518 $10,150,478 $9,923,163 $9,947,472 
Non-GAAP TCE Ratio     
Tangible common equity$1,112,196 $1,088,545$988,803$991,367$979,401
Tangible assets11,055,778 11,239,518 10,150,478 9,923,163 9,947,472 
TCE ratio10.06 %9.68 %9.74 %9.99 %9.85 %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity$1,213,469 $1,128,747 $1,127,602 $1,108,880 $1,077,703 
Less:  Average intangible assets(103,988)(105,560)(107,291)(109,130)(110,888)
Average tangible common equity$1,109,481 $1,023,187$1,020,311$999,750$966,815



12

OFG Bancorp (NYSE: OFG)
Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)
BASEL III
Standardized
20242023 202320232023
(Dollars in thousands) (unaudited)Q1Q4 Q3Q2Q1
Regulatory Capital Metrics      
Common equity Tier 1 capital$1,205,231$1,174,205$1,124,599$1,086,587$1,063,919
Tier 1 capital1,205,2311,174,2051,124,5991,086,5871,063,919
Total risk-based capital(15)1,309,8931,278,5371,224,9631,183,7931,158,744
Risk-weighted assets8,338,1688,317,8028,000,7117,742,9337,559,166
Regulatory Capital Ratios
Common equity Tier 1 capital ratio(16)14.45 %14.12 %14.06 %14.03 %14.07 %
Tier 1 risk-based capital ratio(17)14.45 %14.12 %14.06 %14.03 %14.07 %
Total risk-based capital ratio(18)15.71 %15.37 %15.31 %15.29 %15.33 %
Leverage ratio(19)10.76 %11.03 %11.03 %10.85 %10.75 %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity$1,215,653$1,193,480 $1,095,463 $1,099,751 $1,089,510 
Plus: CECL transition adjustment(20)6,85213,70413,70413,70413,704
Plus (Less): Unrealized losses on available-for-sale securities, net of
                    income tax		81,73167,013127,67789,63978,512
           Unrealized (gains) losses on cash flow hedges, net of
           income tax		———(75)(172)
Total adjusted stockholders’equity1,304,2361,274,1971,236,8441,203,0191,181,554
Less: Disallowed goodwill(84,241)(84,241)(84,241)(84,241)(84,241)
  Disallowed other intangible assets, net(14,764)(15,751)(16,883)(18,015)(19,147)
  Disallowed deferred tax assets, net——(11,121)(14,176)(14,247)
Common equity Tier 1 capital and Tier 1 capital1,205,2311,174,2051,124,5991,086,5871,063,919
Plus Tier 2 capital:  Qualifying allowance for credit losses104,662104,332100,36497,20694,825
Total risk-based capital$1,309,893$1,278,537 $1,224,963 $1,183,793 $1,158,744 



13

OFG Bancorp (NYSE: OFG)
Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)
(1)Total banking and financial service revenues.
(2)Net interest income plus non-interest income, net (core)
(3)Calculated based on net income available to common shareholders divided by average common shares outstanding for the period.
(4)Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted.
(5)Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.
(6)Information includes all loans held for investment, including PCD loans.
(7)Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(8)Calculated based on annualized income, net of tax, for the period divided by average total assets for the period.
(9)Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period.
(10)Calculated based on non-interest expense for the period divided by total net interest income and total banking and financial services revenues for the period.
(11)Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(12)Non-GAAP ratios. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.
(13)Production of new loans (excluding renewals).
(14)Most PCD loans are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Therefore, they are not included as non-performing loans. PCD loan pools that are not accreting interest income are deemed to be non-performing loans and presented separately.
(15)Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(16)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.
(17)Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(18)Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.
(19)Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
(20)In March 2020, in light of strains on the U.S. economy as a result of the coronavirus disease (COVID-19), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. In addition, for the first two years, a uniform 25% “scaling factor” is introduced to approximate the portion of the post day-one allowance attributable to CECL relative to the incurred loss methodology. The 25% scaling factor is calibrated to approximate an overall after-tax impact of differences in allowances under CECL versus the incurred loss methodology.
(21)Pre-provision net revenues is a non-GAAP measure calculated based on net interest income plus total non-interest income, net, less total non-interest expenses for the period.
(22)Under the GNMA program, issuers such as OFG Bancorp have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of the Company with an offsetting liability.
14