EX-99 2 ofg-20231qxexx99.htm EX-99 Document

Exhibit 99

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OFG Bancorp Reports 1Q23 Results
SAN JUAN, Puerto Rico, April 20, 2023 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the first quarter ended March 31, 2023. EPS diluted of $0.96 compared to $0.97 in 4Q22 and $0.76 in 1Q22. Total core revenues of $164.4 million compared to $168.3 million in 4Q22 and $136.4 million in 1Q22.

CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “The first quarter continued to reflect high levels of liquidity and capital, putting OFG in a strong position in today’s banking environment. Our financial results also demonstrated solid core revenues, net interest margin, credit quality, operating leverage, and customer acquisition trends. Deposit balances were stable with a cumulative beta of approximately 10%. In addition, we continued to execute our ‘digital first’ strategy, placing more banking kiosks and interactive teller machines in the field, and client digital adoption increased 10% year-over-year. With Puerto Rico businesses and consumers remaining in good financial health, we look forward to ongoing progress in 2023. Thanks to our team for their excellent execution, dedication, and drive in helping customers and the communities we serve to achieve their financial goals.”

1Q23 Highlights

Performance Metrics: Net interest margin of 5.89%, return on average assets of 1.87%, return on average tangible common stockholders’ equity of 19.13%, and efficiency ratio of 54.87%.

Net Interest Income of $135.9 million compared to $135.3 million in 4Q22 and $105.2 million in 1Q22. 1Q23 reflected the full effect of 4Q22’s 50 basis point increase in the federal funds rate and the partial effect of 1Q23’s 50 bps increase. Two fewer days compared to 4Q22 reduced Net Interest Income by $2.2 million.

Total Interest Income of $149.0 million compared to $145.7 million in 4Q22 and $112.9 million in 1Q22. Compared to 4Q22, 1Q23 reflected higher yields on increased average loans, in particular auto, commercial, and consumer.

Total Interest Expense of $13.1 million compared to $10.4 million in 4Q22 and $7.8 million in 1Q22. Compared to 4Q22, 1Q23 reflected a 14 basis point cost increase and a 1.5% decline in average interest bearing liabilities.

Total Banking & Financial Service Revenues of $28.5 million compared to $33.0 million in 4Q22 and $31.2 million in 1Q22. Compared to 4Q22, 1Q23 reflected a reduction of $2.0 million in mortgage servicing rights valuation, $1.0 million in annual insurance fees, and $0.5 million from the sale of the retirement plan administration business at the end of 2022.

Pre-Provision Net Revenues of $74.6 million compared to $76.9 million in 4Q22 and $55.6 million in 1Q22. The sequential quarterly decline was mostly due to the change in banking and financial service revenues.



Total Provision for Credit Losses of $9.4 million compared to $8.8 million in 4Q22 and $1.6 million in 1Q22. 1Q23 included $6.2 million due to increased loan volume, $2.1 million for a commercial loan held for sale, and $1.1 million increase in the qualitative adjustment due to the reduced macroeconomic environment outlook in the US.

Credit Quality: Net charge-offs of $10.1 million compared to $11.2 million in 4Q22 and $0.6 million in 1Q22. 1Q23 primarily reflected a reduction of auto loan NCOs compared to 4Q22. 1Q23 delinquency and non-performing loan rates fell across the board compared to 4Q22.

Total Non-Interest Expense of $90.2 million compared to $91.6 million in 4Q22 and $81.2 million in 1Q22. Compared to 4Q22, 1Q23 general and administrative costs were lower, including a $0.5 million reduction from the above-mentioned sale of the retirement plan administration business.

Loans Held for Investment (EOP) of $6.85 billion compared to $6.84 billion in 4Q22 and $6.55 billion in 1Q22. Loans increased 1.1% annualized from the previous quarter and 4.7% year-over-year. Compared to 4Q22, 1Q23 reflected increases in auto and consumer loans and paydowns of residential mortgages and commercial lines of credit.

New Loan Production of $561.3 million compared to $616.4 million in 4Q22 and $623.2 million in 1Q22. Compared to 4Q22, 1Q23 reflected continued high levels of auto lending, increased commercial-US and consumer lending, and reduced commercial-PR lending.

Total Investments (EOP) of $1.92 billion compared to $1.97 billion in 4Q22 and $1.26 billion in 1Q22. 1Q23 investments declined $54.3 million from 4Q22 due to the maturity of Treasury Bills and paydowns of mortgage-backed securities.

Customer Deposits (EOP) of $8.57 billion compared to $8.56 billion in 4Q22 and $8.97 billion in 1Q22.

Total Borrowings (EOP) of $226.8 million compared to $27.0 million in 4Q22 and $28.0 million in 1Q22. 1Q23 included a $200.0 million, 2-year advance from the Federal Home Loan Bank.

Cash & Cash Equivalents (EOP) of $847.5 million compared to $550.5 million in 4Q22 and $1.9 billion in 1Q22. 1Q23 cash increased $297.0 million compared to the previous quarter.

Total Assets (EOP) of $10.06 billion compared to $9.82 billion in 4Q22 and $10.19 billion in 1Q22.

Capital: CET1 ratio of 14.07% compared to 13.64% in 4Q22 and 13.24% in 1Q22. Compared to 4Q22, 1Q23 reflected increased retained earnings and lower risked weighted assets. The Tangible Common Equity ratio was 9.85% compared to 9.59% in 4Q22 and 9.14% in 1Q22. Compared to 4Q22, 1Q23 reflected increased retained earnings and a lower other comprehensive loss. Tangible Book Value per share of $20.57 compared to $19.56 in 4Q22 and $18.90 in 1Q22.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 1Q23 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 225-9448 or (203) 518-9708. Conference ID: OFGQ123. 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, 2023, and the 1Q23 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, and other natural disasters; (iv) competition in the financial services industry; and (v) the severity, magnitude and duration of the COVID-19 pandemic, and its impact on our operations, personnel, and customers.
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, 2022, 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 59th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at www.ofgbancorp.com. 
# # #
Contacts
Puerto Rico & USVI: Idalis Montalvo (idalis.montalvo@orientalbank.com) at (787) 777-2847
US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder (sanreder@ofgbancorp.com) at (212) 532-3232


OFG Bancorp
Financial Supplement
The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our March 31, 2023 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.


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

2023
2022
2022
2022
2022
(Dollars in thousands, except per share data) (unaudited)
Q1
Q4
Q3
Q2
Q1
Statement of Operations
Net interest income $135,897$135,282$126,510$115,094$105,194
Non-interest income, net (core)(1)28,53133,01230,29831,21431,201
Total core revenues(2)164,428168,294156,808146,308136,395
Non-interest expense 90,22091,64187,49285,25881,155
Pre-provision net revenues(21)74,57876,89569,63866,04655,645
Total provision for credit losses 9,4458,7577,1206,6911,551
Net income before income taxes 65,13368,13862,51859,35554,094
Income tax expense 18,90421,77120,59918,92316,573
Net income available to common stockholders 46,22946,36741,91940,43237,521
Common Share Statistics      
Earnings per common share - basic(3)$0.97$0.97$0.88$0.84$0.77
Earnings per common share - diluted(4)$0.96$0.97$0.87$0.84$0.76
Average common shares outstanding 47,60047,57247,55848,05348,968
Average common shares outstanding and equivalents 47,94447,96447,92648,38949,484
Cash dividends per common share $0.22$0.20$0.20$0.15$0.15
Book value per common share (period end) $22.88$21.91$20.90$21.34$21.37
Tangible book value per common share (period end)(5)$20.57$19.56$18.46$18.86$18.90
Balance Sheet (Average Balances)      
Loans(6)$6,866,586$6,770,341$6,697,900$6,640,440$6,519,119
Interest-earning assets 9,359,2119,425,5909,597,6709,613,3279,540,266
Total assets 9,900,4099,989,29310,181,00010,207,57910,113,750
Core deposits 8,594,3928,759,0808,924,0898,946,5178,808,547
Total deposits 8,604,6218,770,4468,935,4558,957,8838,819,913
Interest-bearing deposits 5,950,4816,059,6436,296,1426,266,1876,271,936
Borrowings 64,16826,82027,27527,72644,262
Stockholders' equity 1,077,7031,025,1321,045,7921,032,2701,066,278
Performance Metrics      
Net interest margin(7)5.89 %(a)5.69 %5.23 %4.80 %4.47 %
Return on average assets(8)1.87 %1.86 %1.65 %1.58 %1.48 %
Return on average tangible common stockholders' equity(9)19.13 %20.36 %18.05 %17.70 %15.88 %
Efficiency ratio(10)54.87 %54.45 %55.80 %58.27 %59.50 %
Full-time equivalent employees, period end 2,249 2,253 2,247 2,230 2,244 
Credit Quality Metrics     
Allowance for credit losses$151,884$152,673$155,162$159,039$157,075
Allowance as a % of loans held for investment2.22 %2.23 %2.32 %2.37 %2.40 %
Net charge-offs$10,120(b)$11,205$11,347$4,543$577
Net charge-off rate(11)0.59 %(b)0.66 %0.68 %0.27 %0.04 %
Early delinquency rate (30 - 89 days past due)2.11 %2.46 %2.75 %2.20 %1.97 %
Total delinquency rate (30 days and over)3.40 %4.04 %4.35 %3.68 %3.17 %
Capital Ratios (period end) (Non-GAAP)(12)(20)
Leverage ratio10.75 %10.36 %9.82 %9.46 %9.54 %
Common equity Tier 1 capital ratio14.07 %13.64 %13.38 %12.80 %13.24 %
Tier 1 risk-based capital ratio14.07 %13.64 %13.38 %12.80 %13.24 %
Total risk-based capital ratio15.33 %14.89 %14.63 %14.05 %14.49 %
Tangible common equity ("TCE") ratio9.85 %9.59 %8.83 %8.85 %9.14 %

(a)During 1Q 2023, the Federal Reserve System (“FRB”) increased the federal funds rate 50 basis points.
(b)During 1Q 2023, the Company charged-off $2.1 million of a commercial loan held for sale.
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OFG Bancorp (NYSE: OFG)
Table 2: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited) March 31, 2023December 31, 2022September 30,
2022		June 30,
2022		March 31,
2022
Interest income: 
Loans
Non-PCD loans $109,330 $105,238 $97,677 $91,788 $86,631 
PCD loans 18,981 19,762 18,563 19,569 20,934 
Total interest income from loans 128,311 125,000 116,240 111,357 107,565 
Investment securities 20,674 20,727 18,435 10,865 5,384 
Total interest income 148,985 (a)145,727 134,675 122,222 112,949 
Interest expense:
Deposits
Core deposits 12,489 10,258 7,978 6,935 7,033 
Brokered deposits 8 9 9 9 8 
Total deposits 12,497 10,267 7,987 6,944 7,041 
Borrowings 591 178 178 184 714 
Total interest expense 13,088 (a)10,445 8,165 7,128 7,755 
Net interest income 135,897 135,282 126,510 115,094 105,194 
Provision for credit losses, excluding PCD loans8,146 11,347 9,897 12,486 8,399 
Provision for (recapture of) credit losses on PCD loans1,299 (2,590)(2,777)(5,795)(6,848)
Total provision for credit losses 9,445 8,757 7,120 6,691 1,551 
Net interest income after provision for credit losses 126,452 126,525 119,390 108,403 103,643 
Non-interest income:      
Banking service revenues 17,513 18,224 17,234 18,141 17,562 
Wealth management revenues 7,120 8,335 8,173 8,270 7,857 
Mortgage banking activities 3,898 (b)6,453 4,891 4,803 5,782 
Total banking and financial service revenues 28,531 33,012 30,298 31,214 31,201 
Other income, net 370 242 322 4,996 405 
Total non-interest income, net 28,901 33,254 30,620 36,210 31,606 
Non-interest expense:
Compensation and employee benefits 38,473 38,100 35,332 34,730 34,768 
Occupancy, equipment and infrastructure costs 14,257 13,893 12,638 12,861 11,916 
General and administrative expenses 36,693 39,261 37,523 39,071 35,953 
Foreclosed real estate and other repossessed assets expenses (income) 793 239 573 (1,404)(1,482)
Climate events expenses 4 148 1,426 — — 
Total non-interest expense 90,220 91,641 87,492 85,258 81,155 
Income before income taxes 65,133 68,138 62,518 59,355 54,094 
Income tax expense 18,904 21,771 20,599 18,923 16,573 
Net income available to common shareholders $46,229 $46,367 $41,919 $40,432 $37,521 

(a)Refer to “(a)” in Table 1.
(b)During 1Q 2023, the valuation of mortgage servicing asset decreased by $2.0 million.

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OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
March 31, 2022
Cash and cash equivalents$847,494 (a)$550,464 $815,433 $1,307,281 $1,855,729 
Investments:
Trading securities10 9 11 13 18 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities1,109,889 1,102,501 1,075,838 1,146,459 867,191 
US treasury notes242,098 309,133 401,414 10,733 10,763 
Other investment securities1,119 1,142 1,157 2,378 2,384 
Total investment securities available-for-sale1,353,106 1,412,776 1,478,409 1,159,570 880,338 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities332,852 337,435 343,549 351,016 359,806 
US treasury notes198,028 197,635 197,225 196,816 — 
Total investment securities held-to-maturity530,880 535,070 540,774 547,832 359,806 
Equity securities33,218 23,667 23,372 19,848 18,556 
Total investments1,917,214 1,971,522 2,042,566 1,727,263 1,258,718 
Loans, net6,735,281 6,723,236 6,591,028 6,585,210 6,449,130 
Other assets:
Prepaid expenses59,125 54,641 69,535 65,327 56,513 
Deferred tax asset, net37,372 55,485 66,121 76,101 87,608 
Foreclosed real estate and repossessed properties13,813 15,831 17,868 17,594 17,922 
Premises and equipment, net104,851 106,820 106,025 101,848 97,403 
Goodwill84,241 84,241 86,069 86,069 86,069 
Other intangibles25,868 27,593 29,662 31,800 33,947 
Right of use assets23,897 25,363 26,192 27,699 28,576 
Servicing asset49,345 50,921 50,061 49,280 49,446 
Accounts receivable and other assets159,080 152,663 157,619 172,302 169,059 
Total assets$10,057,581 $9,818,780 $10,058,179 $10,247,774 $10,190,120 
Deposits:
Demand deposits$5,038,122 $5,176,758 $5,416,309 $5,459,104 $5,504,640 
Savings accounts2,271,774 2,227,965 2,345,673 2,433,819 2,295,113 
Time deposits1,255,525 1,152,270 1,081,769 1,125,276 1,167,103 
Brokered deposits— (b)11,371 11,366 11,371 11,366 
Total deposits8,565,421 8,568,364 8,855,117 9,029,570 8,978,222 
Borrowings:     
Advances from FHLB and other borrowings226,789 (a)27,034 27,263 27,618 28,035 
Total borrowings226,789 27,034 27,263 27,618 28,035 
Other liabilities:     
Acceptances outstanding30,094 28,607 29,245 27,150 29,858 
Lease liability25,990 27,370 28,114 29,538 30,287 
GNMA buy-back option program liability(22)26,348 32,590 29,050 33,431 9,664 
Accrued expenses and other liabilities93,429 92,409 95,523 85,655 74,019 
Total liabilities8,968,071 8,776,374 9,064,312 9,232,962 9,150,085 
Stockholders' equity:
Common stock59,885 59,885 59,885 59,885 59,885 
Additional paid-in capital634,785 636,793 635,523 634,612 633,796 
Legal surplus138,333 133,901 129,429 125,365 121,389 
Retained earnings 547,641 516,371 484,057 455,590 426,320 
Treasury stock, at cost(212,794)(211,135)(211,138)(211,138)(180,717)
Accumulated other comprehensive income, net(78,340)(93,409)(103,889)(49,502)(20,638)
Total stockholders' equity1,089,510 1,042,406 993,867 1,014,812 1,040,035 
Total liabilities and stockholders' equity$10,057,581 $9,818,780 $10,058,179 $10,247,774 $10,190,120 
(a)During 1Q 2023, the Company took a two-year FHLB advance amounting to $200.0 million.
(b) During 1Q 2023, all outstanding brokered certificates of deposit matured.



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OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
March 31, 2022
Non-PCD:
Mortgage, excluding GNMA buy-back option program$634,799 $643,203 $650,781 $675,324 $694,613 
Mortgage GNMA buy-back option program(22)26,348 32,590 29,050 33,431 9,664 
Commercial US617,574 642,133 622,382 623,807 524,868 
Commercial, excluding Commercial US1,808,379 1,828,644 1,754,999 1,797,778 1,784,420 
Consumer564,365 536,619 520,183 498,404 454,959 
Auto2,034,676 1,958,257 1,877,945 1,791,052 1,732,859 
5,686,141 5,641,446 5,455,340 5,419,796 5,201,383 
Less:  Allowance for credit losses(141,385)(141,841)(142,417)(143,896)(137,344)
Total non-PCD loans held for investment, net5,544,756 5,499,605 5,312,923 5,275,900 5,064,039 
PCD:
Mortgage1,007,751 1,028,428 1,059,448 1,099,097 1,144,364 
Commercial155,614 159,152 162,287 174,282 190,626 
Consumer607 638 738 698 833 
Auto4,367 5,658 7,152 8,788 10,765 
1,168,339 1,193,876 1,229,625 1,282,865 1,346,588 
Less:  Allowance for credit losses(10,499)(10,832)(12,745)(15,143)(19,731)
Total PCD loans held for investment, net1,157,840 1,183,044 1,216,880 1,267,722 1,326,857 
Total loans held for investment6,702,596 6,682,649 6,529,803 6,543,622 6,390,896 
Mortgage loans held for sale13,616 19,499 43,262 26,947 26,761 
Other loans held for sale19,069 (a)21,088 17,963 14,641 31,473 
Total loans, net$6,735,281 $6,723,236 $6,591,028 $6,585,210 $6,449,130 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program$1,642,550 $1,671,631 $1,710,229 $1,774,421 $1,838,977 
Mortgage GNMA buy-back option program(22)26,348 32,590 29,050 33,431 9,664 
Commercial US617,574 642,133 622,382 623,807 524,868 
Commercial, excluding Commercial US1,963,993 1,987,796 1,917,286 1,972,060 1,975,046 
Consumer564,972 537,257 520,921 499,102 455,792 
Auto2,039,043 1,963,915 1,885,097 1,799,840 1,743,624 
6,854,480 6,835,322 6,684,965 6,702,661 6,547,971 
Less:  Allowance for credit losses(151,884)(152,673)(155,162)(159,039)(157,075)
Total loans held for investment, net6,702,596 6,682,649 6,529,803 6,543,622 6,390,896 
Mortgage loans held for sale13,616 19,499 43,262 26,947 26,761 
Other loans held for sale19,069 (a)21,088 17,963 14,641 31,473 
Total loans, net$6,735,281 $6,723,236 $6,591,028 $6,585,210 $6,449,130 

(a) Refer to “(b)” in Table 1.


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OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
  Quarter Ended
(Dollars in thousands) (unaudited)
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
March 31, 2022
Loan production(13)
Mortgage $30,344 $35,242 $38,945 $62,835 $63,883 
Commercial 98,300 209,078 123,429 143,796 175,531 
Commercial US 124,074 83,162 55,984 90,952 108,390 
Consumer 86,284 67,515 73,045 96,571 97,108 
Auto 222,325 221,369 219,910 193,031 178,288 
Total $561,327 $616,366 $511,313 $587,185 $623,200 
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OFG Bancorp (NYSE: OFG)
Table 5: Average Balances, Net Interest Income and Net Interest Margin
2023 Q1
2022 Q4
2022 Q3
2022 Q2
2022 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$552,635 $6,445 4.73 %$551,555 $5,115 3.68 %$1,016,561 $5,661 2.21 %$1,546,036 $2,984 0.77 %$2,072,112 $929 0.18 %
Investment securities1,939,990 14,229 2.93 %2,103,694 15,612 2.97 %1,883,209 12,774 2.71 %1,426,851 7,881 2.21 %949,035 4,455 1.88 %
Loans held for investment
Non-PCD loans5,670,966 109,330 7.82 %5,542,986 105,238 7.53 %5,428,852 97,677 7.14 %5,315,401 91,788 6.93 %5,113,715 86,631 6.87 %
PCD loans1,195,620 18,981 6.35 %1,227,355 19,762 6.44 %1,269,048 18,563 5.85 %1,325,039 19,569 5.91 %1,405,404 20,934 5.96 %
Total loans6,866,586 128,311 7.58 %6,770,341 125,000 7.32 %6,697,900 116,240 6.89 %6,640,440 111,357 6.73 %6,519,119 107,565 6.69 %
Total interest-earning assets$9,359,211 $148,985 6.46 %$9,425,590 $145,727 6.13 %$9,597,670 $134,675 5.57 %$9,613,327 $122,222 5.10 %$9,540,266 $112,949 4.80 %
Interest bearing liabilities:          
Deposits          
NOW accounts$2,497,917 $4,212 0.68 %$2,624,602 $4,050 0.61 %$2,799,234 $2,927 0.41 %$2,811,396 $2,174 0.31 %$2,813,037 $2,140 0.31 %
Savings accounts2,232,903 3,135 0.57 %2,291,884 2,250 0.39 %2,388,072 1,733 0.29 %2,296,903 1,289 0.23 %2,248,193 1,198 0.22 %
Time deposits1,209,432 3,821 1.28 %1,131,791 2,373 0.83 %1,097,470 1,679 0.61 %1,146,522 1,834 0.64 %1,199,340 2,057 0.70 %
Brokered deposits10,229 8 0.30 %11,366 9 0.30 %11,366 9 0.30 %11,366 9 0.30 %11,366 8 0.30 %
 5,950,481 11,176 0.76 %6,059,643 8,682 0.57 %6,296,142 6,348 0.40 %6,266,187 5,306 0.34 %6,271,936 5,403 0.35 %
Non-interest bearing deposit accounts2,654,140 — — 2,710,803 — — 2,639,313 — — 2,691,696 — — 2,547,977 — — 
Fair value premium and core deposit intangible amortization— 1,321 — — 1,585 — — 1,639 — — 1,638 — — 1,638 — 
Total deposits8,604,621 12,497 0.59 %8,770,446 10,267 0.46 %8,935,455 7,987 0.35 %8,957,883 6,944 0.31 %8,819,913 7,041 0.32 %
Borrowings
Advances from FHLB and other borrowings64,168 591 3.74 %26,820 178 2.64 %27,275 178 2.59 %27,726 184 2.66 %28,184 193 2.77 %
Subordinated capital notes— — — %— — — %— — — %— — — %16,078 521 13.15 %
Total borrowings64,168 591 3.74 %26,820 178 2.64 %27,275 178 2.59 %27,726 184 2.66 %44,262 714 6.54 %
Total interest-bearing liabilities$8,668,789 $13,088 0.61 %$8,797,266 $10,445 0.47 %$8,962,730 $8,165 0.36 %$8,985,609 $7,128 0.32 %$8,864,175 $7,755 0.35 %
Interest rate spread $135,897 5.85 % $135,282 5.66 % $126,510 5.21 % $115,094 4.78 % $105,194 4.45 %
Net interest margin  5.89 %  5.69 %  5.23 %  4.80 %  4.47 %
Core deposits: (Non-GAAP)               
Deposits               
NOW accounts$2,497,917 $4,212 0.68 %$2,624,602 $4,050 0.61 %$2,799,234 $2,927 0.41 %$2,811,396 $2,174 0.31 %$2,813,037 $2,140 0.31 %
Savings accounts2,232,903 3,135 0.57 %2,291,884 2,250 0.39 %2,388,072 1,733 0.29 %2,296,903 1,289 0.23 %2,248,193 1,198 0.22 %
Time deposits1,209,432 3,821 1.28 %1,131,791 2,373 0.83 %1,097,470 1,679 0.61 %1,146,522 1,834 0.64 %1,199,340 2,057 0.70 %
 5,940,252 11,168 0.76 %6,048,277 8,673 0.57 %6,284,776 6,339 0.40 %6,254,821 5,297 0.34 %6,260,570 5,395 0.35 %
Non-interest bearing deposit accounts2,654,140 — — 2,710,803 — — 2,639,313 — — 2,691,696 — — 2,547,977 — — 
Total core deposits$8,594,392 $11,168 0.53 %$8,759,080 $8,673 0.39 %$8,924,089 $6,339 0.28 %$8,946,517 $5,297 0.24 %$8,808,547 $5,395 0.25 %

7

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
20232022202220222022
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs$201 $8 $14 $259 $3 
Recoveries(216)(625)(280)(335)(2,074)
Total mortgage(15)(617)(266)(76)(2,071)
Commercial:
Charge-offs1,375 3,444 6,485 2,907 544 
Recoveries(326)(338)(214)(456)(192)
Total commercial1,049 3,106 6,271 2,451 352 
Consumer:     
Charge-offs5,440 5,069 4,163 3,307 2,659 
Recoveries(866)(1,055)(732)(795)(655)
Total consumer4,574 4,014 3,431 2,512 2,004 
Auto:     
Charge-offs9,479 10,380 7,964 6,428 7,890 
Recoveries(6,599)(5,001)(5,674)(5,565)(4,891)
Total auto2,880 5,379 2,290 863 2,999 
Total$8,488 $11,882 $11,726 $5,750 $3,284 
PCD
Mortgage:
Charge-offs$75 $108 $270 $183 $1,134 
Recoveries(247)(603)(191)(1,026)(845)
Total mortgage(172)(495)79 (843)289 
Commercial:     
Charge-offs2,104 (a)12 23 — 34 
Recoveries(489)(264)(268)(249)(3,023)
Total commercial1,615 (252)(245)(249)(2,989)
Consumer:     
Charge-offs213 120 9 8 39 
Recoveries(11)(11)(47)(13)(23)
Total consumer202 109 (38)(5)16 
Auto:     
Charge-offs87 65 56 75 114 
Recoveries(100)(104)(231)(185)(137)
Total auto(13)(39)(175)(110)(23)
Total$1,632 $(677)$(379)$(1,207)$(2,707)
Total Net Charge-offs$10,120 $11,205 $11,347 $4,543 $577 
Net Charge-off Rates     
Mortgage-0.05 %-0.26 %-0.04 %-0.20 %-0.38 %
Commercial0.41 %(a)0.44 %0.94 %0.34 %-0.43 %
Consumer3.30 %2.95 %2.52 %1.98 %1.75 %
Auto0.57 %1.11 %0.46 %0.17 %0.69 %
Total0.59 %0.66 %0.68 %0.27 %0.04 %
Average Loans Held For Investment     
Mortgage$1,653,423 $1,699,923 $1,757,897 $1,809,228 $1,885,159 
Commercial2,627,610 2,586,536 2,560,849 2,555,575 2,450,177 
Consumer579,467 558,809 538,898 506,588 461,890 
Auto2,006,086 1,925,073 1,840,256 1,769,049 1,721,893 
Total$6,866,586 $6,770,341 $6,697,900 $6,640,440 $6,519,119 

(a) Refer to “(b)” in Table 1.




8

OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
20232022202220222022
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Early Delinquency (30 - 89 days past due)     
Mortgage$11,417 $15,115 $15,769 $13,941 $13,788 
Commercial3,898 2,750 13,223 6,001 2,600 
Consumer8,478 8,895 9,280 7,766 6,485 
Auto96,294 112,191 111,637 91,407 79,491 
Total $120,087 $138,951 $149,909 $119,115 $102,364 
Early Delinquency Rates (30 - 89 days past due)     
Mortgage1.73 %2.24 %2.32 %1.97 %1.96 %
Commercial0.16 %0.11 %0.56 %0.25 %0.12 %
Consumer1.50 %1.66 %1.78 %1.56 %1.43 %
Auto4.73 %5.73 %5.94 %5.10 %4.59 %
Total2.11 %2.46 %2.75 %2.20 %1.97 %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation$32,084 $39,239 $39,577 $36,178 $39,004 
GNMA's buy-back option program(22)26,348 32,590 29,050 33,431 9,664 
Total mortgage58,432 71,829 68,627 69,609 48,668 
Commercial12,881 12,122 24,343 13,243 16,061 
Consumer11,402 12,008 11,956 9,744 8,446 
Auto110,749 131,804 132,507 106,637 91,855 
Total$193,464 $227,763 $237,433 $199,233 $165,030 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation4.85 %5.81 %5.82 %5.10 %5.54 %
GNMA's buy-back option program(22)3.99 %4.82 %4.27 %4.72 %1.37 %
Total mortgage8.84 %10.63 %10.09 %9.82 %6.91 %
Commercial0.53 %0.49 %1.03 %0.55 %0.71 %
Consumer2.02 %2.24 %2.30 %1.96 %1.86 %
Auto5.44 %6.73 %7.06 %5.95 %5.30 %
Total3.40 %4.04 %4.35 %3.68 %3.17 %
Nonperforming Assets(14)
Mortgage$30,641 $33,512 $33,225 $33,344 $36,775 
Commercial27,025 34,432 36,612 47,206 34,892 
Consumer2,979 3,128 2,725 1,987 2,030 
Auto14,455 19,613 20,870 15,329 12,495 
Total nonperforming loans75,100 90,685 93,432 97,866 86,192 
Foreclosed real estate9,250 11,214 14,561 15,061 15,297 
Other repossessed assets4,563 4,617 3,307 2,533 2,625 
Total nonperforming assets$88,913 $106,516 $111,300 $115,460 $104,114 
Nonperforming Loan Rates     
Mortgage4.63 %4.96 %4.89 %4.70 %5.22 %
Commercial1.11 %1.40 %1.55 %1.98 %1.55 %
Consumer0.53 %0.58 %0.52 %0.40 %0.45 %
Auto0.71 %1.00 %1.11 %0.86 %0.72 %
Total loans1.32 %1.61 %1.71 %1.81 %1.66 %
9

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
 20232022202220222022
(Dollars in thousands) (unaudited) Q1Q4Q3Q2Q1
Nonperforming PCD Loans(14)
Mortgage $258 $259 $260 $261 $310 
Commercial 8,446 8,927 9,746 10,057 10,877 
Total nonperforming loans $8,704 $9,186 $10,006 $10,318 $11,187 
Nonperforming PCD Loan Rates      
Mortgage 0.03 %0.03 %0.02 %0.02 %0.03 %
Commercial 5.43 %5.61 %6.01 %5.77 %5.71 %
Total 0.74 %0.77 %0.81 %0.80 %0.83 %
Total PCD Loans Held for Investment     
Mortgage $1,007,751 $1,028,428 $1,059,448 $1,099,097 $1,144,364 
Commercial 155,614 159,152 162,287 174,282 190,626 
Consumer 607 638 738 698 833 
Auto4,367 5,658 7,152 8,788 10,765 
Total loans $1,168,339 $1,193,876 $1,229,625 $1,282,865 $1,346,588 
 20232022202220222022
(Dollars in thousands) (unaudited) Q1Q4Q3Q2Q1
Total Nonperforming Loans(14)     
Mortgage $30,899 $33,771 $33,485 $33,605 $37,085 
Commercial 35,471 43,359 46,358 57,263 45,769 
Consumer 2,979 3,128 2,725 1,987 2,030 
Auto 14,455 19,613 20,870 15,329 12,495 
Total nonperforming loans $83,804 $99,871 $103,438 $108,184 $97,379 
Total Nonperforming Loan Rates 
Mortgage 1.85 %1.98 %1.93 %1.86 %2.01 %
Commercial 1.37 %1.65 %1.83 %2.21 %1.83 %
Consumer 0.53 %0.58 %0.52 %0.40 %0.45 %
Auto 0.71 %1.00 %1.11 %0.85 %0.72 %
Total 1.22 %1.46 %1.55 %1.61 %1.49 %
Total Loans Held for Investment     
Mortgage $1,668,898 $1,704,221 $1,739,279 $1,807,852 $1,848,641 
Commercial 2,581,567 2,629,929 2,539,668 2,595,867 2,499,914 
Consumer 564,972 537,257 520,921 499,102 455,792 
Auto 2,039,043 1,963,915 1,885,097 1,799,840 1,743,624 
Total loans $6,854,480 $6,835,322 $6,684,965 $6,702,661 $6,547,971 


10

OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended March 31, 2023
(Dollars in thousands) (unaudited)MortgageCommercialConsumerAutoTotal
Allowance for credit losses Non-PCD:     
Balance at beginning of period$9,571 $39,158 $23,264 $69,848 $141,841 
(Recapture of) provision for credit losses(503)(335)5,974 2,896 8,032 
Charge-offs(201)(1,375)(5,440)(9,479)(16,495)
Recoveries216 326 866 6,599 8,007 
Balance at end of period$9,083 $37,774 $24,664 $69,864 $141,385 
Allowance for credit losses PCD:
Balance at beginning of period$9,359 $1,388 $14 $71 $10,832 
(Recapture of) provision for credit losses(814)1,920 200 (7)1,299 
Charge-offs(75)(2,104)(a)(213)(87)(2,479)
Recoveries247 489 11 100 847 
Balance at end of period$8,717 $1,693 $12 $77 $10,499 
Allowance for credit losses summary:
Balance at beginning of period$18,930 $40,546 $23,278 $69,919 $152,673 
(Recapture of) provision for credit losses(1,317)1,585 6,174 2,889 9,331 
Charge-offs(276)(3,479)(5,653)(9,566)(18,974)
Recoveries463 815 877 6,699 8,854 
Balance at end of period$17,800 $39,467 $24,676 $69,941 $151,884 
Allowance coverage ratio1.07 %1.53 %4.37 %3.43 %2.22 %
(a)Refer to “(b)” in Table 1.

11

OFG Bancorp (NYSE: OFG)
Table 8-1: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital
In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and TCE ratio. The table below provides the details of the calculation of our regulatory capital and non-GAAP capital measures. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.
20232022202220222022
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity$1,089,510 $1,042,406 $993,867 $1,014,812 $1,040,035 
Less:  Intangible assets(110,109)(111,834)(115,731)(117,869)(120,016)
Tangible common equity$979,401 $930,572$878,136$896,943$920,019
     
Common shares outstanding at end of period47,611 47,581 47,563 47,554 48,673 
Tangible book value per common share (Non-GAAP)$20.57 $19.56 $18.46 $18.86 $18.90 
Total Assets to Tangible Assets     
Total assets  $10,057,581 $9,818,780 $10,058,179 $10,247,774 $10,190,120 
Less:  Intangible assets(110,109)(111,834)(115,731)(117,869)(120,016)
Tangible assets (Non-GAAP)$9,947,472 $9,706,946 $9,942,448 $10,129,905 $10,070,104 
Non-GAAP TCE Ratio     
Tangible common equity$979,401 $930,572$878,136$896,943$920,019
Tangible assets9,947,472 9,706,946 9,942,448 10,129,905 10,070,104 
TCE ratio9.85 %9.59 %8.83 %8.85 %9.14 %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity$1,077,703 $1,025,132 $1,045,792 $1,032,270 $1,066,278 
Less:  Average intangible assets(110,888)(114,412)(116,612)(118,750)(120,874)
Average tangible common equity$966,815 $910,720$929,180$913,520$945,404



12

OFG Bancorp (NYSE: OFG)
Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)
BASEL III
Standardized
20232022 202220222022
(Dollars in thousands) (unaudited)Q1Q4 Q3Q2Q1
Regulatory Capital Metrics      
Common equity Tier 1 capital$1,063,919$1,037,385$995,342$960,015$955,221
Tier 1 capital1,063,9191,037,385995,342960,015955,221
Total risk-based capital(15)1,158,7441,132,6581,088,5841,053,7661,045,437
Risk-weighted assets7,559,1667,605,4667,440,4827,499,1717,214,692
Regulatory Capital Ratios
Common equity Tier 1 capital ratio(16)14.07 %13.64 %13.38 %12.80 %13.24 %
Tier 1 risk-based capital ratio(17)14.07 %13.64 %13.38 %12.80 %13.24 %
Total risk-based capital ratio(18)15.33 %14.89 %14.63 %14.05 %14.49 %
Leverage ratio(19)10.75 %10.36 %9.82 %9.46 %9.54 %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity$1,089,510$1,042,406 $993,867 $1,014,812 (a)$1,040,035 
Plus: CECL transition adjustment(20)13,70420,55720,55720,55720,557
Less: Unrealized losses on available-for-sale securities, net of income tax78,51293,663104,14549,60620,522
Unrealized (gains) losses on cash flow hedges, net of income tax(172)(254)(256)(104)116
Total adjusted stockholders’equity1,181,5541,156,3721,118,3131,084,8711,081,230
Less: Disallowed goodwill(84,241)(84,241)(86,069)(86,069)(86,069)
Disallowed other intangible assets, net(19,147)(20,279)(21,617)(22,997)(24,384)
Disallowed deferred tax assets, net(14,247)(14,467)(15,285)(15,790)(15,556)
Common equity Tier 1 capital and Tier 1 capital1,063,9191,037,385995,342960,015955,221
Plus Tier 2 capital:  Qualifying allowance for credit losses94,82595,27393,24293,75190,216
Total risk-based capital$1,158,744$1,132,658 $1,088,584 $1,053,766 $1,045,437 



13

OFG Bancorp (NYSE: OFG)
Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)
(1)Total banking and financial service revenues.
(2)Net interest income plus non-interest income, net (core)
(3)Calculated based on net income available to common shareholders divided by average common shares outstanding for the period.
(4)Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted.
(5)Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.
(6)Information includes all loans held for investment, including PCD loans.
(7)Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(8)Calculated based on annualized income, net of tax, for the period divided by average total assets for the period.
(9)Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period.
(10)Calculated based on non-interest expense for the period divided by total net interest income and total banking and financial services revenues for the period.
(11)Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(12)Non-GAAP ratios. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.
(13)Production of new loans (excluding renewals).
(14)Most PCD loans are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Therefore, they are not included as non-performing loans. PCD loan pools that are not accreting interest income are deemed to be non-performing loans and presented separately.
(15)Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(16)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.
(17)Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(18)Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.
(19)Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
(20)In March 2020, in light of recent strains on the U.S. economy as a result of the coronavirus disease 2019 (COVID-19), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. In addition, for the first two years, a uniform 25% “scaling factor” is introduced to approximate the portion of the post day-one allowance attributable to CECL relative to the incurred loss methodology. The 25% scaling factor is calibrated to approximate an overall after-tax impact of differences in allowances under CECL versus the incurred loss methodology.
(21)Pre-provision net revenues is a non-GAAP measure calculated based on net interest income plus total non-interest income, net, less total non-interest expenses for the period.
(22)Under the GNMA program, issuers such as OFG Bancorp have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of the Company with an offsetting liability.
14