OFG Bancorp 8K Reports 1Q24 Results | OFG 18 Apr 24

Exhibit 99

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.

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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)	30,059			32,061			30,404			30,859			28,531
Total core revenues	(2)	174,161			175,603			172,191			170,503			164,428
Non-interest expense		91,412			94,099			90,158			88,888			90,220
Pre-provision net revenues	(21)	83,038			88,151			82,328			80,829			74,578
Total provision for credit losses		15,121			19,719			16,430			15,044			9,445
Net 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 stockholders		49,692			46,597			44,873			44,173			46,229
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		47,096			47,061			47,114			47,266			47,600
Average common shares outstanding and equivalents		47,485			47,386			47,392			47,490			47,944
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		10,739,590			10,129,061			9,702,167			9,492,861			9,359,211
Total assets		11,199,867			10,588,584			10,180,931			10,020,940			9,900,409
Core deposits		9,532,790			8,691,516			8,621,652			8,531,583			8,594,392
Total deposits		9,591,527			8,834,234			8,624,052			8,531,583			8,604,621
Interest-bearing deposits		7,055,207			6,282,916			6,042,165			5,955,611			5,950,481
Borrowings		220,773			459,315			263,981			226,256			64,168
Stockholders' equity		1,213,469			1,128,747			1,127,602			1,108,880			1,077,703

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 investment		2.08		%	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 ratio		10.76		%	11.03		%	11.03		%	10.85		%	10.75		%
Common equity Tier 1 capital ratio		14.45		%	14.12		%	14.06		%	14.03		%	14.07		%
Tier 1 risk-based capital ratio		14.45		%	14.12		%	14.06		%	14.03		%	14.07		%
Total risk-based capital ratio		15.71		%	15.37		%	15.31		%	15.29		%	15.33		%
Tangible common equity ("TCE") ratio		10.06		%	9.68		%	9.74		%	9.99		%	9.85		%

OFG Bancorp (NYSE: OFG)

Table 2-1: Consolidated Statements of Operations


	Quarter Ended
(Dollars in thousands, except per share data) (unaudited)	March 31, 2024		December 31, 2023		September 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 loans	16,605		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

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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 securities		14		13		14		13		10
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities		1,746,195		1,801,849		1,511,779		1,139,996		1,109,889
US treasury notes		150,915		296,799		739		748		242,098
Other investment securities		597		616		635		1,101		1,119
Total investment securities available-for-sale		1,897,707		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 securities		309,764		314,710		320,249		326,935		332,852
US treasury notes		199,727		199,314		198,896		198,478		198,028
Other investment securities		35,000		35,000		—		—		—
Total investment securities held-to-maturity		544,491		549,024		519,145		525,413		530,880
Equity securities		40,162		38,469		42,162		35,946		33,218
Total investments		2,482,374		2,686,770		2,074,474		1,703,217		1,917,214
Loans, net		7,411,378		7,401,618		7,130,052		6,988,244		6,735,281
Other assets:

Prepaid expenses		61,916		62,858		67,191		67,966		59,125
Deferred tax asset, net		4,379		4,923		11,121		20,306		37,372
Foreclosed real estate and repossessed properties		17,694		14,812		13,987		14,643		13,813
Premises and equipment, net		104,980		104,102		103,040		104,166		104,851
Goodwill		84,241		84,241		84,241		84,241		84,241
Other intangibles		19,216		20,694		22,419		24,143		25,868
Right of use assets		21,606		21,725		20,011		21,840		23,897
Servicing asset		49,553		49,520		50,601		49,966		49,345
Accounts receivable and other assets		147,506		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 accounts		2,001,770		2,088,102		2,216,162		2,222,326		2,271,774
Time deposits		1,507,037		1,461,459		1,427,497		1,307,179		1,255,525
Brokered deposits		2,576		162,180		2,936		—		—
Total deposits		9,548,274		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 borrowings		200,766		200,770		300,774		226,507		226,789

Total borrowings		200,766		200,770		451,475		226,507		226,789
Other liabilities:


Acceptances outstanding		25,826		25,576		30,984		35,945		30,094
Lease liability		23,969		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 liabilities		103,361		96,584		97,167		88,870		93,429
Total liabilities		9,943,582		10,150,973		9,161,675		8,931,796		8,968,071
Stockholders' equity:

Common stock		59,885		59,885		59,885		59,885		59,885
Additional paid-in capital		636,208		638,667		637,389		636,051		634,785
Legal surplus		155,732		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' equity		1,215,653		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

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 PR		2,178,748		2,186,228		1,985,535		1,952,178		1,808,379
Commercial US		740,665		755,228		707,593		669,332		617,574
Consumer		627,436		619,894		612,623		593,122		564,365
Auto		2,339,836		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, net		6,347,857		6,310,517		6,014,948		5,830,096		5,544,756

PCD:
Mortgage		909,106		933,362		955,596		980,833		1,007,751
Commercial PR		132,035		135,447		139,857		152,888		155,614
Consumer		544		552		572		568		607
Auto		1,358		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, net		1,035,247		1,062,756		1,089,258		1,127,852		1,157,840
Total loans held for investment		7,383,104		7,373,273		7,104,206		6,957,948		6,702,596
Mortgage loans held for sale		9,370		—		564		11,397		13,616
Other loans held for sale		18,904		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 PR		2,310,783		2,321,675		2,125,392		2,105,066		1,963,993
Commercial US		740,665		755,228		707,593		669,332		617,574
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
		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, net		7,383,104		7,373,273		7,104,206		6,957,948		6,702,596
Mortgage loans held for sale		9,370		—		564		11,397		13,616
Other loans held for sale		18,904		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

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

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 securities	2,597,542		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 loans	6,476,048		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 loans	1,065,709		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 loans	7,541,757		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 accounts	2,042,865		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 deposits	1,480,753		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 deposits	58,737		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 accounts	2,536,320		—		—		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 deposits	9,591,527		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 borrowings	220,773		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 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	%
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 accounts	2,042,865		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 deposits	1,480,753		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 accounts	2,536,320		—		—		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	%

OFG Bancorp (NYSE: OFG)

Table 6-1: Loan Information and Performance Statistics


	2024			2023			2023			2023			2023
(Dollars in thousands) (unaudited)	Q1			Q4			Q3			Q2			Q1
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-offs	3,567			377			1,404			523			1,375
Recoveries	(52)			(114)			(156)			(237)			(326)
Total commercial PR	3,515			263			1,248			286			1,049
Commercial US:
Charge-offs	1,749			689			6,850			2,973			—
Recoveries	—			(23)			(18)			—			—
Total commercial US	1,749			666			6,832			2,973			—
Consumer:
Charge-offs	7,981			6,799			5,894			5,518			5,444
Recoveries	(693)			(650)			(655)			(2,003)			(867)
Total consumer	7,288			6,149			5,239			3,515			4,577
Auto:
Charge-offs	14,218			14,658			10,458			9,170			9,478
Recoveries	(5,971)			(4,982)			(5,193)			(8,332)			(6,600)
Total auto	8,247			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-offs	9			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 PR	0.58		%	-0.01		%	0.27		%	-0.01		%	0.54		%
Commercial US	0.92		%	0.36		%	3.96		%	1.81		%	—		%
Consumer	4.45		%	3.95		%	3.33		%	2.37		%	3.30		%
Auto	1.42		%	1.72		%	0.96		%	0.09		%	0.57		%
Total	1.05		%	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 PR	2,312,561			2,230,342			2,122,169			2,040,547			1,985,001
Commercial US	756,409			736,640			690,105			657,439			642,609
Consumer	652,843			644,834			630,492			606,842			579,467
Auto	2,308,663			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

OFG Bancorp (NYSE: OFG)

Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)


		2024			2023			2023			2023			2023
(Dollars in thousands) (unaudited)		Q1			Q4			Q3			Q2			Q1
Early Delinquency (30 - 89 days past due)
Mortgage		$	13,080		$	15,703		$	14,380		$	13,976		$	11,417
Commercial		6,128			3,653			5,666			11,668			3,898

Consumer		10,901			11,366			10,160			8,188			8,478
Auto		126,704			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)
Mortgage		2.14		%	2.50		%	2.22		%	2.18		%	1.73		%
Commercial		0.21		%	0.12		%	0.21		%	0.45		%	0.16		%

Consumer		1.74		%	1.83		%	1.66		%	1.38		%	1.50		%
Auto		5.42		%	6.50		%	6.31		%	5.52		%	4.73		%
Total		2.41		%	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 mortgage		44,494			47,260			48,888			49,607			58,432
Commercial		14,171			14,298			15,109			28,643			12,881

Consumer		14,760			14,742			13,422			11,026			11,402
Auto		141,220			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 Mitigation		4.26		%	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 mortgage		7.29		%	7.51		%	7.54		%	7.73		%	8.84		%
Commercial		0.49		%	0.49		%	0.56		%	1.09		%	0.53		%

Consumer		2.35		%	2.38		%	2.19		%	1.86		%	2.02		%
Auto		6.04		%	7.34		%	7.04		%	6.14		%	5.44		%
Total		3.30		%	3.76		%	3.78		%	3.67		%	3.40		%
Nonperforming Assets	(14)
Mortgage		$	19,044		$	20,007		$	25,354		$	27,600		$	30,641
Commercial		33,794			36,096			36,649			43,188			27,025

Consumer		3,893			3,376			3,359			2,907			2,979
Auto		14,516			19,056			16,301			13,130			14,455
Total nonperforming loans		71,247			78,535			81,663			86,825			75,100
Foreclosed real estate		10,850			11,348			10,639			10,639			9,250
Other repossessed assets		6,844			7,042			4,004			4,004			4,563
Total nonperforming assets		$	88,941		$	96,925		$	96,306		$	101,468		$	88,913
Nonperforming Loan Rates
Mortgage		3.12		%	3.18		%	3.91		%	4.30		%	4.63		%
Commercial		1.16		%	1.23		%	1.36		%	1.65		%	1.11		%

Consumer		0.62		%	0.54		%	0.55		%	0.49		%	0.53		%
Auto		0.62		%	0.84		%	0.74		%	0.62		%	0.71		%
Total loans		1.10		%	1.22		%	1.33		%	1.45		%	1.32		%

OFG Bancorp (NYSE: OFG)

Table 6-3: Loan Information and Performance Statistics


		2024			2023			2023			2023			2023
(Dollars in thousands) (unaudited)		Q1			Q4			Q3			Q2			Q1
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
Auto		1,358			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


		2024			2023			2023			2023			2023
(Dollars in thousands) (unaudited)		Q1			Q4			Q3			Q2			Q1
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

OFG Bancorp (NYSE: OFG)

Table 7: Allowance for Credit Losses


	Quarter Ended March 31, 2024
(Dollars in thousands) (unaudited)	Mortgage			Commercial			Consumer			Auto			Total
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)
Recoveries	267			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)
Recoveries	638			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)
Recoveries	905			209			716			6,029			7,859
Balance at end of period	$	14,265		$	38,504		$	27,460		$	76,334		$	156,563
Allowance coverage ratio	0.94		%	1.26		%	4.37		%	3.26		%	2.08		%

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.


	2024			2023			2023			2023			2023
(Dollars in thousands) (unaudited)	Q1			Q4			Q3			Q2			Q1
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 period	47,217			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 assets	11,055,778			11,239,518			10,150,478			9,923,163			9,947,472
TCE ratio	10.06		%	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

OFG Bancorp (NYSE: OFG)

Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)


		BASEL III
		Standardized
		2024			2023			2023			2023			2023
(Dollars in thousands) (unaudited)		Q1			Q4			Q3			Q2			Q1
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 capital		1,205,231			1,174,205			1,124,599			1,086,587			1,063,919
Total risk-based capital	(15)	1,309,893			1,278,537			1,224,963			1,183,793			1,158,744
Risk-weighted assets		8,338,168			8,317,802			8,000,711			7,742,933			7,559,166
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)	6,852			13,704			13,704			13,704			13,704


Plus (Less): Unrealized losses on available-for-sale securities, net of income tax		81,731			67,013			127,677			89,639			78,512
Unrealized (gains) losses on cash flow hedges, net of income tax		—			—			—			(75)			(172)
Total adjusted stockholders’equity		1,304,236			1,274,197			1,236,844			1,203,019			1,181,554
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 capital		1,205,231			1,174,205			1,124,599			1,086,587			1,063,919




Plus Tier 2 capital: Qualifying allowance for credit losses		104,662			104,332			100,364			97,206			94,825
Total risk-based capital		$	1,309,893		$	1,278,537		$	1,224,963		$	1,183,793		$	1,158,744

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.

OFG Bancorp (OFG) 8-KOFG Bancorp Reports 1Q24 Results