OFG Bancorp 8K Reports 2Q24 Results | OFG 18 Jul 24

Exhibit 99

OFG Bancorp Reports 2Q24 Results

SAN JUAN, Puerto Rico, July 18, 2024 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the second quarter ended June 30, 2024. EPS diluted of $1.08 compared to $1.05 in 1Q24 and $0.93 in 2Q23. Total core revenues of $179.4 million compared to $174.2 million in 1Q24 and $170.5 million in 2Q23.

CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “The second quarter continued to demonstrate the strength of our strategies and franchise. EPS-diluted increased 16.1% year-over-year on a 5.2% increase in total core revenues. We generated strong performance metrics through consistent growth; increased loans, deposits, and non-interest income; and stable credit quality. Our ‘Digital First’ strategy continues to help us expand our retail and business relationships through new and upgraded products, services, and self-service tools. In addition, we implemented close to half of our $50 million share buyback program, purchasing $24.3 million of OFG shares in the open market. At the same time, Puerto Rico’s economy continued to grow and steadily decouple from mainland economic uncertainties. Thanks to our team members for their commitment to making progress possible for our customers, employees, shareholders, and the communities we serve.”

2Q24 Highlights

Performance Metrics: Net interest margin of 5.51%, return on average assets of 1.82%, return on average tangible common stockholders’ equity of 18.24%, and efficiency ratio of 51.81%.

Total Interest Income of $187.7 million compared to $183.4 million in 1Q24 and $158.0 million in 2Q23. Compared to 1Q24, 2Q24 primarily reflected higher average balances and yields on loans. 2Q24 included $2.1 million from the recovery of a non-accrual U.S. commercial loan paid in full.

Total Interest Expense of $40.3 million compared to $39.3 million in 1Q24 and $18.3 million in 2Q23. Compared to 1Q24, 2Q24 reflected higher average core deposits and a 7 basis point increase in rates, partially offset by lower average wholesale funding and rate.

Total Banking & Financial Service Revenues of $32.1 million compared to $30.1 million in 1Q24 and $30.9 million in 2Q23. Compared to 1Q24, 2Q24 reflected higher banking service, wealth management and mortgage banking revenues. Banking service revenues included $0.6 million prepayment fees on U.S. loans, while wealth management included $0.5 million in annual recognition of certain commercial insurance commissions.

Pre-Provision Net Revenues of $86.8 million compared to $83.0 million in 1Q24 and $80.8 million in 2Q23.

Total Provision for Credit Losses of $15.6 million compared to $15.1 million in 1Q24 and $15.0 million in 2Q23. 2Q24 provision primarily reflected increased loan volume.

Credit Quality: Net charge-offs of $15.0 million compared to $19.8 million in 1Q24 and $6.6 million in 2Q23. 2Q24 early and total delinquency rates were 2.81% and 3.71%, respectively. The nonperforming loan rate of 1.08% was the lowest over the last five quarters.

Total Non-Interest Expense of $93.0 million compared to $91.4 million in 1Q24 and $88.9 million in 2Q23. Compared to 1Q24, 2Q24 included increases of $1.3 million in electronic banking expenses, $1.1 million in professional services fees, and $0.4 million for increased FDIC insurance now that Oriental exceeds $10 billion in assets. This was partially offset by reductions of $1.4 million in foreclosed real estate costs and in FICA payroll related expenses relative to the prior quarter.

Effective Tax Rate of 28.2% compared to 26.8% in 1Q24 and 32.9% in 2Q23. 2Q24 reflected an 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 $0.8 million tax benefit credit in 2Q24 compared to $1.1 million discrete benefit for stock vested in 1Q24.

Loans Held for Investment (EOP) of $7.64 billion compared to $7.54 billion in 1Q24 and $7.12 billion in 2Q23. Compared to 1Q24, 2Q24 increased 1.3%, reflecting growth in Puerto Rico commercial, auto and consumer loans, partially offset by regular paydowns of residential mortgages and prepayment of U.S. commercial loans. Compared to 2Q23, 2Q24 loans increased 7.3%.

New Loan Production of $589.0 million compared to $536.6 million in 1Q24 and $681.8 million in 2Q23. Compared to 1Q24, 2Q24 loan production, led by auto, reflected increases in all categories.

Total Investments (EOP) of $2.48 billion compared to $2.48 billion in 1Q24 and $1.70 billion in 2Q23.

Customer Deposits (EOP) of $9.60 billion compared to $9.55 billion in 1Q24 and $8.54 billion in 2Q23. Compared to 1Q24, 2Q24 reflected an increase in commercial deposits partially offset by a decline in retail deposits.

Total Borrowings & Brokered Deposits (EOP) of $201.2 million compared to $203.3 million in 1Q24 and $226.5 million in 2Q23.

Cash & Cash Equivalents (EOP) of $740.4 million compared to $754.4 million in 1Q24 and $799.0 million in 2Q23.

Capital: CET1 ratio was 14.29% compared to 14.45% in 1Q24 and 14.03% in 2Q23. The Tangible Common Equity ratio was 10.09% compared to 10.06% in 1Q24 and 9.99% in 2Q23. Tangible Book Value of $24.18 per share compared to $23.55 in 1Q24 and $21.06 in 2Q23.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 2Q24 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 245-3047 or (203) 518-9708. Conference ID: OFGQ224. 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 June 30, 2024, and the 2Q24 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. Our mission is to make progress possible for our customers, employees, shareholders, and the communities we serve. 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 June 30, 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			2024			2023			2023			2023
(Dollars in thousands, except per share data) (unaudited)		Q2			Q1			Q4			Q3			Q2
Statement of Operations
Net interest income		$	147,325		$	144,102		$	143,542		$	141,787		$	139,644
Non-interest income, net (core)	(1)	32,085			30,059			32,061			30,404			30,859
Total core revenues	(2)	179,410			174,161			175,603			172,191			170,503
Non-interest expense		92,960			91,412			94,099			90,158			88,888
Pre-provision net revenues	(21)	86,841			83,038			88,151			82,328			80,829
Total provision for credit losses		15,581			15,121			19,719			16,430			15,044
Net income before income taxes		71,260			67,917			68,432			65,898			65,785
Income tax expense		20,129			18,225			21,835			21,025			21,612
Net income available to common stockholders		51,131			49,692			46,597			44,873			44,173
Common Share Statistics
Earnings per common share - basic	(3)	$	1.09		$	1.06		$	0.99		$	0.95		$	0.93
Earnings per common share - diluted	(4)	$	1.08		$	1.05		$	0.98		$	0.95		$	0.93
Average common shares outstanding		46,952			47,096			47,061			47,114			47,266
Average common shares outstanding and equivalents		47,131			47,343			47,386			47,392			47,490
Cash dividends per common share		$	0.25		$	0.25		$	0.22		$	0.22		$	0.22
Book value per common share (period end)		$	26.37		$	25.75		$	25.36		$	23.28		$	23.36
Tangible book value per common share (period end)	(5)	$	24.18		$	23.55		$	23.13		$	21.01		$	21.06
Balance Sheet (Average Balances)
Loans	(6)	$	7,612,407		$	7,541,757		$	7,417,084		$	7,191,243		$	7,002,971
Interest-earning assets		10,758,623			10,739,590			10,129,061			9,702,167			9,492,861
Total assets		11,233,202			11,199,867			10,588,584			10,180,931			10,020,940
Core deposits		9,599,842			9,532,790			8,691,516			8,621,652			8,531,583
Total deposits		9,601,408			9,591,527			8,834,234			8,624,052			8,531,583
Interest-bearing deposits		7,023,192			7,055,207			6,282,916			6,042,165			5,955,611
Borrowings		219,903			220,773			459,315			263,981			226,256
Stockholders' equity		1,223,669			1,213,469			1,128,747			1,127,602			1,108,880

Performance Metrics
Net interest margin	(7)	5.51		%	5.40		%	5.62		%	5.80		%	5.90		%
Return on average assets	(8)	1.82		%	1.77		%	1.76		%	1.76		%	1.76		%
Return on average tangible common stockholders' equity	(9)	18.24		%	17.92		%	18.22		%	17.59		%	17.67		%
Efficiency ratio	(10)	51.81		%	52.49		%	53.59		%	52.36		%	52.13		%
Full-time equivalent employees, period end		2,239			2,230			2,248			2,264			2,265
Credit Quality Metrics
Allowance for credit losses		$	157,301		$	156,563		$	161,106		$	157,529		$	159,923
Allowance as a % of loans held for investment		2.06		%	2.08		%	2.14		%	2.17		%	2.25		%
Net charge-offs		$	15,013		$	19,812		$	16,282		$	18,836		$	6,606
Net charge-off rate	(11)	0.79		%	1.05		%	0.88		%	1.05		%	0.38		%
Early delinquency rate (30 - 89 days past due)		2.81		%	2.41		%	2.76		%	2.75		%	2.53		%
Total delinquency rate (30 days and over)		3.71		%	3.30		%	3.76		%	3.78		%	3.67		%
Capital Ratios (period end) (Non-GAAP)	(12)(20)
Leverage ratio		10.86		%	10.76		%	11.03		%	11.03		%	10.85		%
Common equity Tier 1 capital ratio		14.29		%	14.45		%	14.12		%	14.06		%	14.03		%
Tier 1 risk-based capital ratio		14.29		%	14.45		%	14.12		%	14.06		%	14.03		%
Total risk-based capital ratio		15.54		%	15.71		%	15.37		%	15.31		%	15.29		%
Tangible common equity ("TCE") ratio		10.09		%	10.06		%	9.68		%	9.74		%	9.99		%

OFG Bancorp (NYSE: OFG)

Table 1-2: Financial and Statistical Summary - Consolidated (Continued)


		2024			2023
(Dollars in thousands, except per share data) (unaudited)		YTD			YTD
Statement of Operations
Net interest income		$	291,427		$	275,541
Non-interest income, net (core)	(1)	62,144			59,390
Total core revenues	(2)	353,571			334,931
Non-interest expense		184,372			179,108
Pre-provision net revenues	(21)	169,879			155,407
Total provision for credit losses		30,702			24,489
Net income before income taxes		139,177			130,918
Income tax expense		38,354			40,516
Net income available to common stockholders		100,823			90,402
Common Share Statistics
Earnings per common share - basic	(3)	$	2.14		$	1.91
Earnings per common share - diluted	(4)	$	2.13		$	1.89
Average common shares outstanding		47,024			47,432
Average common shares outstanding and equivalents		47,244			47,716
Cash dividends per common share		$	0.50		$	0.44
Book value per common share (period end)		$	26.37		$	23.36
Tangible book value per common share (period end)	(5)	$	24.18		$	21.06
Balance Sheet (Average Balances)
Loans	(6)	$	7,577,082		$	6,935,155
Interest-earning assets		10,749,306			9,426,405
Total assets		11,215,573			9,961,007
Core deposits		9,566,316			8,562,231
Total deposits		9,596,468			8,567,317
Interest-bearing deposits		7,039,200			5,952,477
Borrowings		220,338			145,660
Stockholders' equity		1,218,569			1,093,377

Performance Metrics
Net interest margin	(7)	5.45		%	5.89		%
Return on average assets	(8)	1.80		%	1.82		%
Return on average tangible common stockholders' equity	(9)	18.08		%	18.39		%
Efficiency ratio	(10)	52.15		%	53.48		%
Full-time equivalent employees, period end		2,239			2,265
Credit Quality Metrics
Allowance for credit losses		$	157,301		$	159,923
Allowance as a % of loans held for investment		2.06		%	2.25		%
Net charge-offs		$	34,825		$	16,725
Net charge-off rate	(11)	0.92		%	0.48		%
Early delinquency rate (30 - 89 days past due)		2.81		%	2.53		%
Total delinquency rate (30 days and over)		3.71		%	3.67		%

OFG Bancorp (NYSE: OFG)

Table 2-1: Consolidated Statements of Operations


	Quarter Ended
(Dollars in thousands, except per share data) (unaudited)	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Interest income:
Loans
Non-PCD loans	$	137,741	$	132,972	$	131,167	$	124,847	$	116,699
PCD loans	16,516		16,622		17,609		17,292		18,819
Total interest income from loans	154,257		149,594		148,776		142,139		135,518
Investment securities and cash	33,401		33,832		27,423		23,569		22,470
Total interest income	187,658		183,426		176,199		165,708		157,988
Interest expense:
Deposits
Core deposits	37,791		35,989		24,753		20,787		15,916
Brokered deposits	21		803		1,980		32		—
Total deposits	37,812		36,792		26,733		20,819		15,916
Borrowings	2,521		2,532		5,924		3,102		2,428
Total interest expense	40,333		39,324		32,657		23,921		18,344
Net interest income	147,325		144,102		143,542		141,787		139,644
Provision for credit losses, excluding PCD loans	16,913		16,605		20,681		16,648		16,650
(Recapture of) provision for credit losses on PCD loans	(1,332)		(1,484)		(962)		(218)		(1,606)
Total provision for credit losses	15,581		15,121		19,719		16,430		15,044
Net interest income after provision for credit losses	131,744		128,981		123,823		125,357		124,600
Non-interest income:
Banking service revenues	18,781		17,259		17,822		17,303		17,440
Wealth management revenues	8,440		8,107		9,985		7,691		8,194
Mortgage banking activities	4,864		4,693		4,254		5,410		5,225
Total banking and financial service revenues	32,085		30,059		32,061		30,404		30,859

Other income (loss), net	391		289		6,647		295		(786)
Total non-interest income, net	32,476		30,348		38,708		30,699		30,073
Non-interest expense:
Compensation and employee benefits	38,467		39,816		41,418		38,095		37,841
Occupancy, equipment and infrastructure costs	14,393		14,322		15,729		14,887		14,362
General and administrative expenses	40,831		36,606		35,803		37,203		39,005
Foreclosed real estate and other repossessed assets expenses (income), net	(731)		668		1,149		(27)		(2,320)


Total non-interest expense	92,960		91,412		94,099		90,158		88,888
Income before income taxes	71,260		67,917		68,432		65,898		65,785
Income tax expense	20,129		18,225		21,835		21,025		21,612


Net income available to common shareholders	$	51,131	$	49,692	$	46,597	$	44,873	$	44,173

(

OFG Bancorp (NYSE: OFG)

Table 2-2: Consolidated Statements of Operations (Continued)


(Dollars in thousands, except per share data) (unaudited)	Six-month period ended
	June 30, 2024		June 30, 2023
Interest income:
Loans
Non-PCD loans	$	270,713	$	226,029
PCD loans	33,138		37,800
Total interest income from loans	303,851		263,829
Investment securities and cash	67,233		43,144
Total interest income	371,084		306,973
Interest expense:
Deposits
Core deposits	73,780		28,405
Brokered deposits	824		8
Total deposits	74,604		28,413
Borrowings	5,053		3,019
Total interest expense	79,657		31,432
Net interest income	291,427		275,541
Provision for credit losses, excluding PCD loans	34,698		30,163
Recapture of credit losses on PCD loans	(3,996)		(5,674)
Total provision for credit losses	30,702		24,489
Net interest income after provision for credit losses	260,725		251,052
Non-interest income:
Banking service revenues	36,040		34,953
Wealth management revenues	16,547		15,314
Mortgage banking activities	9,557		9,123
Total banking and financial service revenues	62,144		59,390

Other income, net	680		(416)
Total non-interest income, net	62,824		58,974
Non-interest expense:
Compensation and employee benefits	78,283		76,314
Occupancy, equipment and infrastructure costs	28,715		28,619
General and administrative expenses	77,437		75,702
Foreclosed real estate and other repossessed assets income, net of expenses	(63)		(1,527)


Total non-interest expense	184,372		179,108
Income before income taxes	139,177		130,918
Income tax expense	38,354		40,516


Net income available to common shareholders	$	100,823	$	90,402

(a)Refer to “(a)” in Table 2-1.

(b)Refer to “(b)” in Table 2-1.

(c)Refer to “(c)” in Table 2-1.

(d)Refer to “(d)” in Table 2-1. During the year ended December 31, 2023, salaries increased by $6.7 million.

OFG Bancorp (NYSE: OFG)

Table 3: Consolidated Statements of Financial Condition


(Dollars in thousands) (unaudited)		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Cash and cash equivalents		$	740,429	$	754,392	$	748,173	$	532,699	$	798,973
Investments:
Trading securities		16		14		13		14		13
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities		1,895,067		1,746,195		1,801,849		1,511,779		1,139,996
US treasury securities		200,658		150,915		296,799		739		748
Other investment securities		581		597		616		635		1,101
Total investment securities available-for-sale		2,096,306		1,897,707		2,099,264		1,513,153		1,141,845

Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities		303,621		309,764		314,710		320,249		326,935
US treasury securities		—		199,727		199,314		198,896		198,478
Other investment securities		35,000		35,000		35,000		—		—
Total investment securities held-to-maturity		338,621		544,491		549,024		519,145		525,413
Equity securities		41,074		40,162		38,469		42,162		35,946
Total investments		2,476,017		2,482,374		2,686,770		2,074,474		1,703,217
Loans, net		7,503,142		7,411,378		7,401,618		7,130,052		6,988,244
Other assets:

Prepaid expenses		88,137		61,916		62,858		67,191		67,966
Deferred tax asset, net		4,094		4,379		4,923		11,121		20,306
Foreclosed real estate and repossessed properties		12,239		17,694		14,812		13,987		14,643
Premises and equipment, net		104,384		104,980		104,102		103,040		104,166
Goodwill		84,241		84,241		84,241		84,241		84,241
Other intangibles		17,738		19,216		20,694		22,419		24,143
Right of use assets		20,298		21,606		21,725		20,011		21,840
Servicing asset		49,789		49,553		49,520		50,601		49,966
Accounts receivable and other assets		158,577		147,506		145,017		147,302		153,842
Total assets		$	11,259,085	$	11,159,235	$	11,344,453	$	10,257,138	$	10,031,547

Deposits:
Demand deposits		$	6,017,364	$	6,036,891	$	6,050,428	$	4,894,958	$	5,008,521
Savings accounts		2,002,342		2,001,770		2,088,102		2,216,162		2,222,326
Time deposits		1,585,126		1,507,037		1,461,459		1,427,497		1,307,179
Brokered deposits		418		2,576		162,180		2,936		—
Total deposits		9,605,250		9,548,274		9,762,169		8,541,553		8,538,026
Borrowings:
Securities sold under agreements to repurchase		—		—		—		150,701		—
Advances from FHLB and other borrowings		200,741		200,766		200,770		300,774		226,507

Total borrowings		200,741		200,766		200,770		451,475		226,507
Other liabilities:


Acceptances outstanding		28,504		25,826		25,576		30,984		35,945
Lease liability		22,605		23,969		24,029		22,269		24,031
GNMA buy-back option program liability	(22)	19,008		18,510		19,401		18,227		18,417
Deferred tax liability, net		33,873		22,876		22,444		—		—
Accrued expenses and other liabilities		121,402		103,361		96,584		97,167		88,870
Total liabilities		10,031,383		9,943,582		10,150,973		9,161,675		8,931,796
Stockholders' equity:

Common stock		59,885		59,885		59,885		59,885		59,885
Additional paid-in capital		637,895		636,208		638,667		637,389		636,051
Legal surplus		160,560		155,732		150,967		146,774		142,567
Retained earnings		706,807		672,455		639,324		607,466		577,042
Treasury stock, at cost		(250,951)		(226,896)		(228,350)		(228,374)		(226,230)
Accumulated other comprehensive income (loss), net		(86,494)		(81,731)		(67,013)		(127,677)		(89,564)
Total stockholders' equity		1,227,702		1,215,653		1,193,480		1,095,463		1,099,751
Total liabilities and stockholders' equity		$	11,259,085	$	11,159,235	$	11,344,453	$	10,257,138	$	10,031,547

OFG Bancorp (NYSE: OFG)

Table 4-1: Information on Loan Portfolio and Production


(Dollars in thousands) (unaudited)		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Non-PCD:
Mortgage, excluding GNMA buy-back option program		$	581,023	$	591,429	$	609,846	$	630,187	$	623,138
Mortgage GNMA buy-back option program	(22)	19,008		18,510		19,401		18,227		18,417

Commercial PR		2,291,753		2,178,748		2,186,228		1,985,535		1,952,178
Commercial US		662,026		740,665		755,228		707,593		669,332
Consumer		643,572		627,436		619,894		612,623		593,122
Auto		2,427,089		2,339,836		2,272,530		2,208,993		2,124,076
		6,624,471		6,496,624		6,463,127		6,163,158		5,980,263
Less: Allowance for credit losses		(150,849)		(148,767)		(152,610)		(148,210)		(150,167)
Total non-PCD loans held for investment, net		6,473,622		6,347,857		6,310,517		6,014,948		5,830,096

PCD:
Mortgage		885,096		909,106		933,362		955,596		980,833
Commercial PR		128,584		132,035		135,447		139,857		152,888
Consumer		605		544		552		572		568
Auto		951		1,358		1,891		2,552		3,319
		1,015,236		1,043,043		1,071,252		1,098,577		1,137,608
Less: Allowance for credit losses		(6,452)		(7,796)		(8,496)		(9,319)		(9,756)
Total PCD loans held for investment, net		1,008,784		1,035,247		1,062,756		1,089,258		1,127,852
Total loans held for investment		7,482,406		7,383,104		7,373,273		7,104,206		6,957,948
Mortgage loans held for sale		8,375		9,370		—		564		11,397
Other loans held for sale		12,361		18,904		28,345		25,282		18,899
Total loans, net		$	7,503,142	$	7,411,378	$	7,401,618	$	7,130,052	$	6,988,244

Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program		$	1,466,119	$	1,500,535	$	1,543,208	$	1,585,783	$	1,603,971
Mortgage GNMA buy-back option program	(22)	19,008		18,510		19,401		18,227		18,417

Commercial PR		2,420,337		2,310,783		2,321,675		2,125,392		2,105,066
Commercial US		662,026		740,665		755,228		707,593		669,332
Consumer		644,177		627,980		620,446		613,195		593,690
Auto		2,428,040		2,341,194		2,274,421		2,211,545		2,127,395
		7,639,707		7,539,667		7,534,379		7,261,735		7,117,871
Less: Allowance for credit losses		(157,301)		(156,563)		(161,106)		(157,529)		(159,923)
Total loans held for investment, net		7,482,406		7,383,104		7,373,273		7,104,206		6,957,948
Mortgage loans held for sale		8,375		9,370		—		564		11,397
Other loans held for sale		12,361		18,904		28,345		25,282		18,899
Total loans, net		$	7,503,142	$	7,411,378	$	7,401,618	$	7,130,052	$	6,988,244

OFG Bancorp (NYSE: OFG)

Table 4-2: Information on Loan Portfolio and Production


		Quarter Ended										Six-month period ended
(Dollars in thousands) (unaudited)		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		June 30, 2024		June 30, 2023
Loan production	(13)
Mortgage		$	38,501	$	32,180	$	33,332	$	33,346	$	35,932	$	70,681	$	66,276
Commercial PR		192,122		186,412		285,517		150,105		210,746		378,534		309,046
Commercial US		27,402		17,106		57,442		70,311		111,817		44,508		235,891
Consumer		80,348		68,591		63,785		76,465		87,062		148,939		173,346
Auto		250,638		232,314		223,780		237,290		236,283		482,952		458,608
Total		$	589,011	$	536,603	$	663,856	$	567,517	$	681,840	$	1,125,614	$	1,243,167

OFG Bancorp (NYSE: OFG)

Table 5-1: Average Balances, Net Interest Income and Net Interest Margin


	2024 Q2						2024 Q1						2023 Q4						2023 Q3						2023 Q2
(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	$	656,728	$	8,735	5.35	%	$	600,291	$	7,996	5.36	%	$	517,025	$	6,906	5.30	%	$	680,864	$	9,025	5.26	%	$	693,373	$	9,029	5.22	%
Investment securities	2,489,488		24,666		3.96	%	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	%
Loans held for investment
Non-PCD loans	6,576,634		137,741		8.42	%	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	%
PCD loans	1,035,773		16,516		6.38	%	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	%
Total loans	7,612,407		154,257		8.15	%	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	%
Total interest-earning assets	$	10,758,623	$	187,658	7.02	%	$	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	%

Interest bearing liabilities:
Deposits
NOW accounts	$	3,448,144	$	20,964	2.45	%	$	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	%
Savings accounts	2,020,653		4,587		0.91	%	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	%
Time deposits	1,552,829		11,109		2.88	%	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	%
Brokered deposits	1,566		21		5.28	%	58,737		803		5.50	%	142,718		1,980		5.50	%	2,400		32		5.30	%	—		—		—	%
	7,023,192		36,681		2.10	%	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	%
Non-interest bearing deposit accounts	2,578,216		—		—		2,536,320		—		—		2,551,318		—		—		2,581,887		—		—		2,575,972		—		—
Fair value premium and core deposit intangible amortization	—		1,131		—		—		1,132		—		—		1,321		—		—		1,321		—		—		1,321		—
Total deposits	9,601,408		37,812		1.58	%	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	%
Borrowings
Securities sold under agreements to repurchase	—		—		—	%	—		—		—	%	183,858		2,578		5.56	%	52,365		728		5.52	%	—		—		—	%
Advances from FHLB and other borrowings	219,903		2,521		4.61	%	220,773		2,532		4.61	%	275,457		3,346		4.82	%	211,616		2,374		4.45	%	226,256		2,428		4.30	%

Total borrowings	219,903		2,521		4.61	%	220,773		2,532		4.61	%	459,315		5,924		5.12	%	263,981		3,102		4.66	%	226,256		2,428		4.30	%
Total interest-bearing liabilities	$	9,821,311	$	40,333	1.65	%	$	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	%
Interest rate spread			$	147,325	5.36	%			$	144,102	5.26	%			$	143,542	5.51	%			$	141,787	5.71	%			$	139,644	5.84	%
Net interest margin					5.51	%					5.40	%					5.62	%					5.80	%					5.90	%

Core deposits: (Non-GAAP)

NOW accounts	$	3,448,144	$	20,964	2.45	%	$	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	%
Savings accounts	2,020,653		4,587		0.91	%	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	%
Time deposits	1,552,829		11,109		2.88	%	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	%
	7,021,626		36,660		2.10	%	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	%
Non-interest bearing deposit accounts	2,578,216		—		—		2,536,320		—		—		2,551,318		—		—		2,581,887		—		—		2,575,972		—		—
Total core deposits	$	9,599,842	$	36,660	1.54	%	$	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	%
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings	$	219,903	$	2,521	4.61	%	$	220,773	$	2,532	4.61	%	$	459,315	$	5,924	5.12	%	$	263,981	$	3,102	4.66	%	$	226,256	$	2,428	4.30	%
Brokered deposits	1,566		21		5.28	%	58,737		803		5.50	%	142,718		1,980		5.50	%	2,400		32		5.30	%	—		—		—	%
Total borrowings and brokered deposits	$	221,469	$	2,542	4.62	%	$	279,510	$	3,335	4.80	%	$	602,033	$	7,904	5.21	%	$	266,381	$	3,134	4.67	%	$	226,256	$	2,428	4.30	%

OFG Bancorp (NYSE: OFG)

Table 5-2: Average Balances, Net Interest Income and Net Interest Margin (Continued)


	2024 YTD							2023 YTD
(Dollars in thousands) (unaudited)	Average Balance			Interest Income/ Expense		Yield/ Rate		Average Balance			Interest Income/ Expense			Yield/ Rate

Interest earning assets:
Cash equivalents	$	628,709		$	16,731	5.35	%	$	623,393		$	15,475		5.01	%
Investment securities	2,543,515			50,502		3.97	%	1,867,857			27,669			2.96	%
Loans held for investment
Non-PCD loans	6,526,341			270,713		8.34	%	5,756,382			226,029			7.92	%
PCD loans	1,050,741			33,138		6.31	%	1,178,773			37,800			6.41	%
Total loans	7,577,082			303,851		8.06	%	6,935,155			263,829			7.67	%
Total interest-earning assets	$	10,749,306		$	371,084	6.94	%	$	9,426,405		$	306,973		6.57	%

Interest bearing liabilities:
Deposits
NOW accounts	$	3,460,498		$	41,479	2.41	%	$	2,476,360		$	9,187		0.75	%
Savings accounts	2,031,759			9,004		0.89	%	2,227,196			7,264			0.66	%
Time deposits	1,516,791			21,032		2.79	%	1,243,835			9,313			1.51	%
Brokered deposits	30,152			824		5.50	%	5,086			8			0.30	%
	7,039,200			72,339		2.07	%	5,952,477			25,772			0.87	%
Non-interest bearing deposit accounts	2,557,268			—		—	%	2,614,840			—			—	%
Fair value premium and core deposit intangible amortization	—			2,264		—		—			2,641			—
Total deposits	9,596,468			74,603		1.56	%	8,567,317			28,413			0.67	%
Borrowings
Securities sold under agreements to repurchase	—			—		—	%	—			—			—	%
Advances from FHLB and other borrowings	220,338			5,054		4.61	%	145,660			3,019			4.18	%

Total borrowings	220,338			5,054		4.61	%	145,660			3,019			4.18	%
Total interest-bearing liabilities	$	9,816,806		$	79,657	1.63	%	$	8,712,977		$	31,432		0.73	%
Interest rate spread				$	291,427	5.31	%				$	275,541		5.84	%
Net interest margin						5.45	%							5.89	%

Core deposits: (Non-GAAP)

NOW accounts	$	3,460,498		$	41,479	2.41	%	$	2,476,360		$	9,187		0.75	%
Savings accounts	2,031,759			9,004		0.89	%	2,227,196			7,264			0.66	%
Time deposits	1,516,791			21,032		2.79	%	1,243,835			9,313			1.51	%
	7,009,048			71,515		2.05	%	5,947,391			25,764			0.87	%
Non-interest bearing deposit accounts	2,557,268			—		—	%	2,614,840			—			—	%
Total core deposits	$	9,566,316		$	71,515	1.50	%	$	8,562,231		$	25,764		0.61	%
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings	$	220,338		$	5,054	4.61	%	$	145,660		$	3,019		4.18	%
Brokered deposits	30,152			824		5.50	%	5,086			8			0.30	%
Total borrowings and brokered deposits	$	250,490	279,510	$	5,878	4.72	%	$	150,746	150,746	$	3,027	3,027	4.04	%

OFG Bancorp (NYSE: OFG)

Table 6-1: Loan Information and Performance Statistics


	2024			2024			2023			2023			2023
(Dollars in thousands) (unaudited)	Q2			Q1			Q4			Q3			Q2
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs	$	1		$	64		$	150		$	218		$	191
Recoveries	(540)			(267)			(483)			(185)			(333)
Total mortgage	(539)			(203)			(333)			33			(142)
Commercial PR:
Charge-offs	160			3,567			377			1,404			523
Recoveries	(111)			(52)			(114)			(156)			(237)
Total commercial PR	49			3,515			263			1,248			286
Commercial US:
Charge-offs	1,574			1,749			689			6,850			2,973
Recoveries	(45)			—			(23)			(18)			—
Total commercial US	1,529			1,749			666			6,832			2,973
Consumer:
Charge-offs	8,180			7,981			6,799			5,894			5,518
Recoveries	(851)			(693)			(650)			(655)			(2,003)
Total consumer	7,329			7,288			6,149			5,239			3,515
Auto:
Charge-offs	12,559			14,218			14,658			10,458			9,170
Recoveries	(5,926)			(5,971)			(4,982)			(5,193)			(8,332)
Total auto	6,633			8,247			9,676			5,265			838
Total	$	15,001		$	20,596		$	16,421		$	18,617		$	7,470

PCD
Mortgage:
Charge-offs	$	29		$	83		$	94		$	148		$	1
Recoveries	(93)			(638)			(111)			(80)			(260)
Total mortgage	(64)			(555)			(17)			68			(259)
Commercial PR:
Charge-offs	265			—			—			690			—
Recoveries	(158)			(157)			(315)			(494)			(319)
Total commercial PR	107			(157)			(315)			196			(319)
Consumer:
Charge-offs	—			—			244			39			123
Recoveries	(7)			(23)			(19)			(23)			(43)
Total consumer	(7)			(23)			225			16			80
Auto:
Charge-offs	6			9			12			37			35
Recoveries	(30)			(58)			(44)			(98)			(401)
Total auto	(24)			(49)			(32)			(61)			(366)
Total	$	12		$	(784)		$	(139)		$	219		$	(864)

Total Net Charge-offs	$	15,013		$	19,812		$	16,282		$	18,836		$	6,606
Net Charge-off Rates
Mortgage	-0.16		%	-0.20		%	-0.09		%	0.03		%	-0.10		%
Commercial PR	0.03		%	0.58		%	-0.01		%	0.27		%	-0.01		%
Commercial US	0.85		%	0.92		%	0.36		%	3.96		%	1.81		%
Consumer	4.42		%	4.45		%	3.95		%	3.33		%	2.37		%
Auto	1.11		%	1.42		%	1.72		%	0.96		%	0.09		%
Total	0.79		%	1.05		%	0.88		%	1.05		%	0.38		%
Average Loans Held For Investment
Mortgage	$	1,479,583		$	1,511,281		$	1,562,135		$	1,576,637		$	1,616,873
Commercial PR	2,363,831			2,312,561			2,230,342			2,122,169			2,040,547
Commercial US	716,089			756,409			736,640			690,105			657,439
Consumer	663,315			652,843			644,834			630,492			606,842
Auto	2,389,589			2,308,663			2,243,133			2,171,840			2,081,270
Total	$	7,612,407		$	7,541,757		$	7,417,084		$	7,191,243		$	7,002,971

OFG Bancorp (NYSE: OFG)

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


		2024			2024			2023			2023			2023
(Dollars in thousands) (unaudited)		Q2			Q1			Q4			Q3			Q2
Early Delinquency (30 - 89 days past due)
Mortgage		$	12,767		$	13,080		$	15,703		$	14,380		$	13,976
Commercial		7,781			6,128			3,653			5,666			11,668

Consumer		13,102			10,901			11,366			10,160			8,188
Auto		152,817			126,704			147,681			139,278			117,237
Total		$	186,467		$	156,813		$	178,403		$	169,484		$	151,069
Early Delinquency Rates (30 - 89 days past due)
Mortgage		2.13		%	2.14		%	2.50		%	2.22		%	2.18		%
Commercial		0.26		%	0.21		%	0.12		%	0.21		%	0.45		%

Consumer		2.04		%	1.74		%	1.83		%	1.66		%	1.38		%
Auto		6.30		%	5.42		%	6.50		%	6.31		%	5.52		%
Total		2.81		%	2.41		%	2.76		%	2.75		%	2.53		%
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation		$	23,443		$	25,985		$	27,859		$	30,661		$	31,189
GNMA's buy-back option program	(22)	19,008			18,509			19,401			18,227			18,418
Total mortgage		42,451			44,494			47,260			48,888			49,607
Commercial		17,703			14,171			14,298			15,109			28,643

Consumer		16,405			14,760			14,742			13,422			11,026
Auto		169,506			141,220			166,737			155,579			130,367
Total		$	246,065		$	214,645		$	243,037		$	232,998		$	219,643
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation		3.91		%	4.26		%	4.43		%	4.73		%	4.86		%
GNMA's buy-back option program	(22)	3.17		%	3.03		%	3.08		%	2.81		%	2.87		%
Total mortgage		7.07		%	7.29		%	7.51		%	7.54		%	7.73		%
Commercial		0.60		%	0.49		%	0.49		%	0.56		%	1.09		%

Consumer		2.55		%	2.35		%	2.38		%	2.19		%	1.86		%
Auto		6.98		%	6.04		%	7.34		%	7.04		%	6.14		%
Total		3.71		%	3.30		%	3.76		%	3.78		%	3.67		%
Nonperforming Assets	(14)
Mortgage		$	17,325		$	19,044		$	20,007		$	25,354		$	27,600
Commercial		34,477			33,794			36,096			36,649			43,188

Consumer		3,329			3,893			3,376			3,359			2,907
Auto		16,689			14,516			19,056			16,301			13,130
Total nonperforming loans		71,820			71,247			78,535			81,663			86,825
Foreclosed real estate		6,526			10,850			10,780			9,555			10,639
Other repossessed assets		5,713			6,844			4,032			4,432			4,004
Total nonperforming assets		$	84,059		$	88,941		$	93,347		$	95,650		$	101,468
Nonperforming Loan Rates
Mortgage		2.89		%	3.12		%	3.18		%	3.91		%	4.30		%
Commercial		1.17		%	1.16		%	1.23		%	1.36		%	1.65		%

Consumer		0.52		%	0.62		%	0.54		%	0.55		%	0.49		%
Auto		0.69		%	0.62		%	0.84		%	0.74		%	0.62		%
Total loans		1.08		%	1.10		%	1.22		%	1.33		%	1.45		%

OFG Bancorp (NYSE: OFG)

Table 6-3: Loan Information and Performance Statistics


		2024			2024			2023			2023			2023
(Dollars in thousands) (unaudited)		Q2			Q1			Q4			Q3			Q2
Nonperforming PCD Loans	(14)
Mortgage		$	244		$	247		$	250		$	253		$	256
Commercial		4,748			5,969			6,424			6,688			8,104
Consumer		—			—			—			7			—
Total nonperforming loans		$	4,992		$	6,216		$	6,674		$	6,948		$	8,360
Nonperforming PCD Loan Rates
Mortgage		0.03		%	0.03		%	0.03		%	0.03		%	0.03		%
Commercial		3.69		%	4.52		%	4.74		%	4.78		%	5.30		%
Consumer		0.00		%	0.00		%	0.00		%	1.22		%	0.00		%
Total		0.49		%	0.60		%	0.62		%	0.63		%	0.73		%
Total PCD Loans Held for Investment
Mortgage		$	885,096		$	909,106		$	933,362		$	955,596		$	980,833
Commercial		128,584			132,035			135,447			139,857			152,888
Consumer		605			544			552			572			568
Auto		951			1,358			1,891			2,552			3,319
Total loans		$	1,015,236		$	1,043,043		$	1,071,252		$	1,098,577		$	1,137,608


		2024			2024			2023			2023			2023
(Dollars in thousands) (unaudited)		Q2			Q1			Q4			Q3			Q2
Total Nonperforming Loans	(14)
Mortgage		$	17,569		$	19,291		$	20,257		$	25,607		$	27,856
Commercial		39,225			39,763			42,520			43,337			51,292

Consumer		3,329			3,893			3,376			3,366			2,907
Auto		16,689			14,516			19,056			16,301			13,130
Total nonperforming loans		$	76,812		$	77,463		$	85,209		$	88,611		$	95,185
Total Nonperforming Loan Rates
Mortgage		1.18		%	1.27		%	1.30		%	1.60		%	1.72		%
Commercial		1.27		%	1.30		%	1.38		%	1.53		%	1.85		%

Consumer		0.52		%	0.62		%	0.54		%	0.55		%	0.49		%
Auto		0.69		%	0.62		%	0.84		%	0.74		%	0.62		%
Total		1.01		%	1.03		%	1.13		%	1.22		%	1.34		%
Total Loans Held for Investment
Mortgage		$	1,485,127		$	1,519,045		$	1,562,609		$	1,604,010		$	1,622,388
Commercial		3,082,363			3,051,448			3,076,903			2,832,985			2,774,398

Consumer		644,177			627,980			620,446			613,195			593,690
Auto		2,428,040			2,341,194			2,274,421			2,211,545			2,127,395
Total loans		$	7,639,707		$	7,539,667		$	7,534,379		$	7,261,735		$	7,117,871

OFG Bancorp (NYSE: OFG)

Table 7: Allowance for Credit Losses


	Quarter Ended June 30, 2024
(Dollars in thousands) (unaudited)	Mortgage			Commercial			Consumer			Auto			Total
Allowance for credit losses Non-PCD:
Balance at beginning of period	$	7,627		$	37,371		$	27,453		$	76,316		$	148,767
(Recapture of) provision for credit losses	(1,280)			(1,984)			9,308			11,039			17,083
Charge-offs	(1)			(1,734)			(8,180)			(12,559)			(22,474)
Recoveries	540			156			851			5,926			7,473
Balance at end of period	$	6,886		$	33,809		$	29,432		$	80,722		$	150,849

Allowance for credit losses PCD:
Balance at beginning of period	$	6,638		$	1,133		$	7		$	18		$	7,796
Recapture of credit losses	(1,060)			(237)			(6)			(29)			(1,332)
Charge-offs	(29)			(265)			—			(6)			(300)
Recoveries	93			158			7			30			288
Balance at end of period	$	5,642		$	789		$	8		$	13		$	6,452

Allowance for credit losses summary:
Balance at beginning of period	$	14,265		$	38,504		$	27,460		$	76,334		$	156,563
(Recapture of) provision for credit losses	(2,340)			(2,221)			9,302			11,010			15,751
Charge-offs	(30)			(1,999)			(8,180)			(12,565)			(22,774)
Recoveries	633			314			858			5,956			7,761
Balance at end of period	$	12,528		$	34,598		$	29,440		$	80,735		$	157,301
Allowance coverage ratio	0.84		%	1.12		%	4.57		%	3.33		%	2.06		%

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			2024			2023			2023			2023
(Dollars in thousands) (unaudited)	Q2			Q1			Q4			Q3			Q2
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity	$	1,227,702		$	1,215,653		$	1,193,480		$	1,095,463		$	1,099,751
Less: Intangible assets	(101,979)			(103,457)			(104,935)			(106,660)			(108,384)


Tangible common equity	$	1,125,723		$	1,112,196		$	1,088,545		$	988,803		$	991,367

Common shares outstanding at end of period	46,562			47,217			47,065			47,058			47,076
Tangible book value per common share (Non-GAAP)	$	24.18		$	23.55		$	23.13		$	21.01		$	21.06
Total Assets to Tangible Assets
Total assets	$	11,259,085		$	11,159,235		$	11,344,453		$	10,257,138		$	10,031,547
Less: Intangible assets	(101,979)			(103,457)			(104,935)			(106,660)			(108,384)
Tangible assets (Non-GAAP)	$	11,157,106		$	11,055,778		$	11,239,518		$	10,150,478		$	9,923,163
Non-GAAP TCE Ratio
Tangible common equity	$	1,125,723		$	1,112,196		$	1,088,545		$	988,803		$	991,367
Tangible assets	11,157,106			11,055,778			11,239,518			10,150,478			9,923,163
TCE ratio	10.09		%	10.06		%	9.68		%	9.74		%	9.99		%
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity	$	1,223,669		$	1,213,469		$	1,128,747		$	1,127,602		$	1,108,880



Less: Average intangible assets	(102,499)			(103,988)			(105,560)			(107,291)			(109,130)
Average tangible common equity	$	1,121,170		$	1,109,481		$	1,023,187		$	1,020,311		$	999,750

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			2024			2023			2023			2023
(Dollars in thousands) (unaudited)		Q2			Q1			Q4			Q3			Q2
Regulatory Capital Metrics
Common equity Tier 1 capital		$	1,223,031		$	1,205,231		$	1,174,205		$	1,124,599		$	1,086,587
Tier 1 capital		1,223,031			1,205,231			1,174,205			1,124,599			1,086,587
Total risk-based capital	(15)	1,330,474			1,309,893			1,278,537			1,224,963			1,183,793
Risk-weighted assets		8,561,549			8,338,168			8,317,802			8,000,711			7,742,933
Regulatory Capital Ratios
Common equity Tier 1 capital ratio	(16)	14.29		%	14.45		%	14.12		%	14.06		%	14.03		%
Tier 1 risk-based capital ratio	(17)	14.29		%	14.45		%	14.12		%	14.06		%	14.03		%
Total risk-based capital ratio	(18)	15.54		%	15.71		%	15.37		%	15.31		%	15.29		%
Leverage ratio	(19)	10.86		%	10.76		%	11.03		%	11.03		%	10.85		%

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity		$	1,227,702		$	1,215,653		$	1,193,480		$	1,095,463		$	1,099,751
Plus: CECL transition adjustment	(20)	6,852			6,852			13,704			13,704			13,704


Plus (Less): Unrealized losses on available-for-sale securities, net of income tax		86,494			81,731			67,013			127,677			89,639
Unrealized (gains) losses on cash flow hedges, net of income tax		—			—			—			—			(75)
Total adjusted stockholders’equity		1,321,048			1,304,236			1,274,197			1,236,844			1,203,019
Less: Disallowed goodwill		(84,241)			(84,241)			(84,241)			(84,241)			(84,241)
Disallowed other intangible assets, net		(13,776)			(14,764)			(15,751)			(16,883)			(18,015)
Disallowed deferred tax assets, net		—			—			—			(11,121)			(14,176)
Common equity Tier 1 capital and Tier 1 capital		1,223,031			1,205,231			1,174,205			1,124,599			1,086,587




Plus Tier 2 capital: Qualifying allowance for credit losses		107,443			104,662			104,332			100,364			97,206
Total risk-based capital		$	1,330,474		$	1,309,893		$	1,278,537		$	1,224,963		$	1,183,793

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 2Q24 Results