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0001030469FALSE00010304692023-10-202023-10-20

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 20, 2023
________________
OFG BANCORP
(Exact name of registrant as specified in its charter)
________________

    Commonwealth of Puerto Rico
 001-12647 66-0538893
(State or other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)
Oriental Center, 15th Floor
254 Munoz Rivera Avenue
San Juan, Puerto Rico
 00918
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (787) 771-6800
Not applicable
(Former name or former address, if changed since last report)
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common shares, par value $1.00 per share OFG New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
On October 20, 2023, OFG Bancorp (the “Company”) announced the results for the quarter ended September 30, 2023. A copy of the Company’s press release is attached as an exhibit to this report.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description of Document
99


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
OFG BANCORP
Date: October 20, 2023
 By: /s/ Maritza Arizmendi
Maritza Arizmendi
Chief Financial Officer

EX-99 2 ofg-20233qxexx99.htm EX-99 Document

Exhibit 99

ofgbancorplogo.jpg
OFG Bancorp Reports 3Q23 Results
SAN JUAN, Puerto Rico, October 20, 2023 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the third quarter ended September 30, 2023. EPS diluted of $0.95 compared to $0.93 in 2Q23 and $0.87 in 3Q22. Total core revenues of $172.2 million compared to $170.5 million in 2Q23 and $156.8 million in 3Q22.
CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “Third quarter results reflected year-over-year increases of 10% in core revenues and 9% in EPS. Highlights include continued loan growth, stable core deposits, low cumulative deposit beta of 19%, increased operating leverage, and strong performance metrics. We also benefited from overall higher interest rates and benign credit conditions as economic activity in Puerto Rico continues to do well.”

“Oriental’s self-service portal, launched earlier this year as part of our ‘Digital First’ strategy, has been expanded to include more features and is rapidly being adopted by our customers. This is resulting in a growing number of digital transactions, enabling us to better meet the needs of the customers and communities we serve.”

“Our results could not have been possible without the hard work and commitment of all our team members. We are thankful to them for executing our corporate vision.”

3Q23 Highlights

Performance Metrics: Net interest margin of 5.80%, return on average assets of 1.76%, return on average tangible common stockholders’ equity of 17.59%, and efficiency ratio of 52.36%.

Net Interest Income of $141.8 million compared to $139.6 million in 2Q23 and $126.5 million in 3Q22. 3Q23 reflected the full effect of 2Q23’s 25 basis point increase in the Federal Reserve Board’s funds rate and a partial effect of 3Q23’s 25 bps increase.

Total Interest Income of $165.7 million compared to $158.0 million in 2Q23 and $134.7 million in 3Q22. Compared to 2Q23, 3Q23 primarily reflected higher yields (7.84% vs. 7.76%) on increased average balances of loans and higher yields on variable rate loans.

Total Interest Expense of $23.9 million compared to $18.3 million in 2Q23 and $8.2 million in 3Q22. Compared to 2Q23, 3Q23 reflected higher cost of funds (1.07% vs. 0.84%) on increased average balances of deposits and borrowings.

Total Banking & Financial Service Revenues of $30.4 million compared to $30.9 million in 2Q23 and $30.3 million in 3Q22.

Pre-Provision Net Revenues of $82.3 million compared to $80.8 million in 2Q23 and $69.6 million in 3Q22.



Total Provision for Credit Losses of $16.4 million compared to $15.0 million in 2Q23 and $7.1 million in 3Q22. 3Q23 included $11.4 million due to increased loan volume, $4.1 million in qualitative adjustment, and $0.7 million for a specific reserve for the sale of a small portfolio of non-performing Puerto Rico small business commercial loans.

Credit Quality: Net Charge-offs of $18.8 million compared to $6.6 million in 2Q23 and $11.3 million in 3Q22. 3Q23 included $6.9 million for two loans previously and substantially reserved. 2Q23 included a recovery of $3.7 million from the sale of older, fully charged off auto and consumer loans. Early and total delinquency rates were 2.75% and 3.78%, respectively, and the nonperforming loan rate of 1.33% was in the lower ranges seen over the last five quarters.

Total Non-Interest Expense of $90.2 million compared to $88.9 million in 2Q23 and $87.5 million in 3Q22. Compared to 2Q23, 3Q23 operating expense decreased $1.3 million, due to a lower gain on sale of foreclosed real estate partially offset by lower general and administrative expenses.

Loans Held for Investment (EOP) of $7.26 billion compared to $7.12 billion in 2Q23 and $6.68 billion in 3Q22. Loans increased 2.0% from 2Q23 and 8.6% year-over-year, reflecting increases in Puerto Rico and US commercial loans and retail auto and consumer loans. This was partially offset by regular paydowns of residential mortgages.

New Loan Production of $562.5 million compared to $691.8 million in 2Q23 and $511.3 million in 3Q22. 3Q23 reflected continued high levels of auto, commercial and consumer lending.

Total Investments (EOP) of $2.07 billion compared to $1.70 billion in 2Q23 and $2.04 billion in 3Q22. 3Q23 investments increased from 2Q23 reflecting the purchase of $450 million fixed-rate mortgage-backed securities partly offset by regular repayments.

Customer Deposits (EOP) of $8.54 billion compared to $8.54 billion in 2Q23 and $8.84 billion in 3Q22.

Total Borrowings (EOP) of $451.5 million compared to $226.5 million in 2Q23 and $27.3 million in 3Q22.

Cash & Cash Equivalents (EOP) of $532.7 million compared to $799.0 million in 2Q23 and $815.4 million in 3Q22. Compared to 2Q23, 3Q23 cash reflected new purchases of MBS.

Total Assets (EOP) of $10.26 billion compared to $10.03 billion in 2Q23 and $10.06 billion in 3Q22.

Capital: CET1 ratio of 14.03% level with 2Q23 and 13.38% in 3Q22. The Tangible Common Equity ratio was 9.74% compared to 9.99% in 2Q23 and 8.83% in 3Q22. Tangible Book Value per share of $21.01 compared to $21.06 in 2Q23 and $18.46 in 3Q22.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 3Q23 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 579-2543 or (785) 424-1789. Conference ID: OFGQ323. 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 September 30, 2023, and the 3Q23 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, 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
(sanreder@ofgbancorp.com) at (212) 532-3232




OFG Bancorp
Financial Supplement
US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder 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 September 30, 2023 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

2023
2023
2023
2022
2022
(Dollars in thousands, except per share data) (unaudited)
Q3
Q2
Q1
Q4
Q3
Statement of Operations
Net interest income   $ 141,787 $ 139,644 $ 135,897 $ 135,282 $ 126,510
Non-interest income, net (core) (1) 30,404 30,859 28,531 33,012 30,298
Total core revenues (2) 172,191 170,503 164,428 168,294 156,808
Non-interest expense   90,158 88,888 90,220 91,641 87,492
Pre-provision net revenues (21) 82,328 80,829 74,578 76,895 69,638
Total provision for credit losses   16,430 15,044 9,445 8,757 7,120
Net income before income taxes   65,898 65,785 65,133 68,138 62,518
Income tax expense   21,025 21,612 18,904 21,771 20,599
Net income available to common stockholders   44,873 44,173 46,229 46,367 41,919
Common Share Statistics            
Earnings per common share - basic (3) $ 0.95 $ 0.93 $ 0.97 $ 0.97 $ 0.88
Earnings per common share - diluted (4) $ 0.95 $ 0.93 $ 0.96 $ 0.97 $ 0.87
Average common shares outstanding   47,114 47,266 47,600 47,572 47,558
Average common shares outstanding and equivalents   47,392 47,490 47,944 47,964 47,926
Cash dividends per common share   $ 0.22 $ 0.22 $ 0.22 $ 0.20 $ 0.20
Book value per common share (period end)   $ 23.28 $ 23.36 $ 22.88 $ 21.91 $ 20.90
Tangible book value per common share (period end) (5) $ 21.01 $ 21.06 $ 20.57 $ 19.56 $ 18.46
Balance Sheet (Average Balances)            
Loans (6) $ 7,191,243 $ 7,002,971 $ 6,866,586 $ 6,770,341 $ 6,697,900
Interest-earning assets   9,702,167 9,492,861 9,359,211 9,425,590 9,597,670
Total assets   10,180,931 10,020,940 9,900,409 9,989,293 10,181,000
Core deposits   8,621,652 8,531,583 8,594,392 8,759,080 8,924,089
Total deposits   8,624,052 8,531,583 8,604,621 8,770,446 8,935,455
Interest-bearing deposits   6,042,165 5,955,611 5,950,481 6,059,643 6,296,142
Borrowings   263,981 226,256 64,168 26,820 27,275
Stockholders' equity   1,127,602 1,108,880 1,077,703 1,025,132 1,045,792
Performance Metrics            
Net interest margin (7) 5.80  % 5.90  % 5.89  % 5.69  % 5.23  %
Return on average assets (8) 1.76  % 1.76  % 1.87  % 1.86  % 1.65  %
Return on average tangible common stockholders' equity (9) 17.59  % 17.67  % 19.13  % 20.36  % 18.05  %
Efficiency ratio (10) 52.36  % 52.13  % 54.87  % 54.45  % 55.80  %
Full-time equivalent employees, period end   2,264  2,265  2,249  2,253  2,247 
Credit Quality Metrics          
Allowance for credit losses $ 157,529 $ 159,923 $ 151,884 $ 152,673 $ 155,162
Allowance as a % of loans held for investment 2.17  % 2.25  % 2.22  % 2.23  % 2.32  %
Net charge-offs $ 18,836 (a) $ 6,606 $ 10,120 $ 11,205 $ 11,347
Net charge-off rate (11) 1.05  % 0.38  % 0.59  % 0.66  % 0.68  %
Early delinquency rate (30 - 89 days past due) 2.75  % 2.53  % 2.11  % 2.46  % 2.75  %
Total delinquency rate (30 days and over) 3.78  % 3.67  % 3.40  % 4.04  % 4.35  %
Capital Ratios (period end) (Non-GAAP) (12)(20)
Leverage ratio 11.01  % 10.85  % 10.75  % 10.36  % 9.82  %
Common equity Tier 1 capital ratio 14.03  % 14.03  % 14.07  % 13.64  % 13.38  %
Tier 1 risk-based capital ratio 14.03  % 14.03  % 14.07  % 13.64  % 13.38  %
Total risk-based capital ratio 15.29  % 15.29  % 15.33  % 14.89  % 14.63  %
Tangible common equity ("TCE") ratio 9.74  % 9.99  % 9.85  % 9.59  % 8.83  %

a) During 3Q 2023, the Company charged-off $6.9 million for two commercial loans, $6.0 million previously provisioned, and $906 thousand for commercial nonperforming loans that were transferred to the held for sale category during the quarter.
2

OFG Bancorp (NYSE: OFG)
Table 1-2: Financial and Statistical Summary - Consolidated (Continued)
2023
2022
(Dollars in thousands, except per share data) (unaudited) YTD YTD
Statement of Operations
Net interest income $ 417,328  $ 346,798 
Non-interest income, net (core) (1) 89,794  92,713 
Total core revenues (2) 507,122  439,511 
Non-interest expense 269,266  253,905 
Pre-provision net revenues (21) 237,735  191,329 
Total provision for credit losses 40,919  15,362 
Net income before income taxes 196,816  175,967 
Income tax expense 61,541  56,095 
Net income available to common stockholders 135,275  119,872 
Common Share Statistics
Earnings per common share - basic (3) $ 2.86  $ 2.49 
Earnings per common share - diluted (4) $ 2.84  $ 2.47 
Average common shares outstanding 47,325  48,188 
Average common shares outstanding and equivalents 47,605  48,594 
Cash dividends per common share $ 0.66  $ 0.50 
Book value per common share (period end) $ 23.28  $ 20.90 
Tangible book value per common share (period end) (5) $ 21.01  $ 18.46 
Balance Sheet (Average Balances)
Loans (6) $ 7,021,456  $ 6,619,808 
Interest-earning assets 9,539,389  9,583,964 
Total assets 10,035,121  10,163,386 
Core deposits 8,582,642  8,893,473 
Total deposits 8,586,823  8,904,839 
Interest-bearing deposits 5,983,088  6,278,176 
Borrowings 185,534  (a) 33,025 
Stockholders' equity 1,104,911  1,047,954 
Performance Metrics
Net interest margin (7) 5.85  % 4.84  %
Return on average assets (8) 1.80  % 1.57  %
Return on average tangible common stockholders' equity (9) 18.11  % 17.20  %
Efficiency ratio (10) 53.10  % 57.77  %
Full-time equivalent employees, period end 2,264  2,247 
Credit Quality Metrics
Allowance for credit losses $ 157,529  $ 155,162 
Allowance as a % of loans held for investment 2.17  % 2.32  %
Net charge-offs $ 35,562  $ 16,467 
Net charge-off rate (11) 0.68  % 0.33  %
Early delinquency rate (30 - 89 days past due) 2.75  % 2.75  %
Total delinquency rate (30 days and over) 3.78  % 4.35  %

(a)During the nine-month period ended September 30, 2023, the Company took a two-year FHLB advance amounting to $200.0 million and increased its FHLB overnight advance to $100.0 million.



3

OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited)   September 30, 2023 June 30, 2023 March 31,
2023		 December 31,
2022		 September 30,
2022
Interest income:  
Loans
Non-PCD loans   $ 124,847  $ 116,699  $ 109,330  $ 105,238  $ 97,677 
PCD loans   17,292  18,819  18,981  19,762  18,563 
Total interest income from loans   142,139  135,518  128,311  125,000  116,240 
Investment securities and cash   23,569  22,470  20,674  20,727  18,435 
Total interest income   165,708  157,988  148,985  145,727  134,675 
Interest expense:
Deposits
Core deposits   20,787  15,916  12,489  10,258  7,978 
Brokered deposits   32  —  8  9  9 
Total deposits   20,819  15,916  12,497  10,267  7,987 
Borrowings   3,102  2,428  591  178  178 
Total interest expense   23,921  18,344  13,088  10,445  8,165 
Net interest income   141,787  139,644  135,897  135,282  126,510 
Provision for credit losses, excluding PCD loans 16,648  16,650  8,146  11,347  9,897 
(Recapture of) Provision for credit losses on PCD loans (218) (1,606) 1,299  (2,590) (2,777)
Total provision for credit losses   16,430  15,044  9,445  8,757  7,120 
Net interest income after provision for credit losses   125,357  124,600  126,452  126,525  119,390 
Non-interest income:            
Banking service revenues   17,303  17,440  17,513  18,224  17,234 
Wealth management revenues   7,691  8,194  7,120  8,335  8,173 
Mortgage banking activities   5,410  5,225  3,898  6,453  4,891 
Total banking and financial service revenues   30,404  30,859  28,531  33,012  30,298 
Other income (loss), net   295  (786) 370  242  322 
Total non-interest income, net   30,699  30,073  28,901  33,254  30,620 
Non-interest expense:
Compensation and employee benefits   38,095  37,841  38,473  38,100  35,332 
Occupancy, equipment and infrastructure costs   14,887  14,362  14,257  13,893  12,638 
General and administrative expenses   37,203  39,005  36,693  39,261  37,523 
Foreclosed real estate and other repossessed assets (income) expenses   (27) (2,320) 793  239  573 
Climate events expenses   —  —  4  148  1,426 
Total non-interest expense   90,158  88,888  90,220  91,641  87,492 
Income before income taxes   65,898  65,785  65,133  68,138  62,518 
Income tax expense   21,025  21,612  18,904  21,771  20,599 
Net income available to common shareholders   $ 44,873  $ 44,173  $ 46,229  $ 46,367  $ 41,919 


4

OFG Bancorp (NYSE: OFG)
Table 2-2: Consolidated Statements of Operations (Continued)
(Dollars in thousands, except per share data) (unaudited) Nine-Month Period Ended
September 30, 2023
September 30, 2022
Interest income:
Loans
Non-PCD loans $ 350,876  $ 276,096 
PCD loans 55,092  59,066 
Total interest income from loans 405,968  335,162 
Investment securities and cash 66,713  34,684 
Total interest income 472,681  369,846 
Interest expense:
Deposits
Core deposits 49,192  21,946 
Brokered deposits 40  26 
Total deposits 49,232  21,972 
Borrowings 6,121  (a) 1,076 
Total interest expense 55,353  23,048 
Net interest income 417,328  346,798 
Provision for credit losses, excluding PCD loans 44,034  30,782 
(Recapture of) Provision for credit losses on PCD loans (3,115) (15,420)
Total provision for credit losses 40,919  15,362 
Net interest income after provision for credit losses 376,409  331,436 
Non-interest income:    
Banking service revenues 52,256  52,937 
Wealth management revenues 23,005  24,300 
Mortgage banking activities 14,533  15,476 
Total banking and financial service revenues 89,794  92,713 
Other (loss) income, net (121) 5,723 
Total non-interest income, net 89,673  98,436 
Non-interest expense:
Compensation and employee benefits 114,409  104,830 
Occupancy, equipment and infrastructure costs 43,506  37,415 
General and administrative expenses 112,905  112,547 
Foreclosed real estate and other repossessed assets income, net of expenses (1,554) (2,313)
Climate events expenses —  1,426 
Total non-interest expense 269,266  253,905 
Income before income taxes 196,816  175,967 
Income tax expense 61,541  56,095 
Net income available to common shareholders $ 135,275  $ 119,872 
(a)Refer to “(a)” in Table 1-2.



5

OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
Cash and cash equivalents $ 532,699  (a) $ 798,973  $ 847,494  $ 550,464  $ 815,433 
Investments:
Trading securities 14  13  10  9  11 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities 1,511,779  (a) 1,139,996  1,109,889  1,102,501  1,075,838 
US treasury notes 739  748  242,098  309,133  401,414 
Other investment securities 635  1,101  1,119  1,142  1,157 
Total investment securities available-for-sale 1,513,153  1,141,845  1,353,106  1,412,776  1,478,409 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities 320,249  326,935  332,852  337,435  343,549 
US treasury notes 198,896  198,478  198,028  197,635  197,225 
Total investment securities held-to-maturity 519,145  525,413  530,880  535,070  540,774 
Equity securities 42,162  35,946  33,218  23,667  23,372 
Total investments 2,074,474  1,703,217  1,917,214  1,971,522  2,042,566 
Loans, net 7,130,052  6,988,244  6,735,281  6,723,236  6,591,028 
Other assets:
Prepaid expenses 67,191  67,966  59,125  54,641  69,535 
Deferred tax asset, net 11,121  20,306  37,372  55,485  66,121 
Foreclosed real estate and repossessed properties 13,987  14,643  13,813  15,831  17,868 
Premises and equipment, net 103,040  104,166  104,851  106,820  106,025 
Goodwill 84,241  84,241  84,241  84,241  86,069 
Other intangibles 22,419  24,143  25,868  27,593  29,662 
Right of use assets 20,011  21,840  23,897  25,363  26,192 
Servicing asset 50,601  49,966  49,345  50,921  50,061 
Accounts receivable and other assets 147,302  153,842  159,080  152,663  157,619 
Total assets $ 10,257,138  $ 10,031,547  $ 10,057,581  $ 9,818,780  $ 10,058,179 
Deposits:
Demand deposits $ 4,894,958  $ 5,008,521  $ 5,038,122  $ 5,176,758  $ 5,416,386 
Savings accounts 2,216,162  2,222,326  2,271,774  2,227,965  2,345,596 
Time deposits 1,427,497  1,307,179  1,255,525  1,152,270  1,081,769 
Brokered deposits 2,936  —  —  11,371  11,366 
Total deposits 8,541,553  8,538,026  8,565,421  8,568,364  8,855,117 
Borrowings:          
Securities sold under agreements to repurchase 150,701  (a) —  —  —  — 
Advances from FHLB and other borrowings 300,774  (b) 226,507  226,789  27,034  27,263 
Total borrowings 451,475  226,507  226,789  27,034  27,263 
Other liabilities:          
Acceptances outstanding 30,984  35,945  30,094  28,607  29,245 
Lease liability 22,269  24,031  25,990  27,370  28,114 
GNMA buy-back option program liability (22) 18,227  18,417  26,348  32,590  29,050 
Accrued expenses and other liabilities 97,167  88,870  93,429  92,409  95,523 
Total liabilities 9,161,675  8,931,796  8,968,071  8,776,374  9,064,312 
Stockholders' equity:
Common stock 59,885  59,885  59,885  59,885  59,885 
Additional paid-in capital 637,389  636,051  634,785  636,793  635,523 
Legal surplus 146,774  142,567  138,333  133,901  129,429 
Retained earnings  607,466  577,042  547,641  516,371  484,057 
Treasury stock, at cost (228,374) (226,230) (212,794) (211,135) (211,138)
Accumulated other comprehensive income, net (127,677) (89,564) (78,340) (93,409) (103,889)
Total stockholders' equity 1,095,463  1,099,751  1,089,510  1,042,406  993,867 
Total liabilities and stockholders' equity $ 10,257,138  $ 10,031,547  $ 10,057,581  $ 9,818,780  $ 10,058,179 
(a)During 3Q 2023, the Company purchased $450 million of mortgage-backed securities and sold $150 million securities under agreements to repurchase.
(b)Refer to “(a)” in Table 1-2.
6

OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
Non-PCD:
Mortgage, excluding GNMA buy-back option program $ 630,187  $ 623,138  $ 634,799  $ 643,203  $ 650,781 
Mortgage GNMA buy-back option program (22) 18,227  18,417  26,348  32,590  29,050 
Commercial, excluding Commercial US 1,985,535  1,952,178  1,808,379  1,828,644  1,754,999 
Commercial US 707,593  669,332  617,574  642,133  622,382 
Consumer 612,623  593,122  564,365  536,619  520,183 
Auto 2,208,993  2,124,076  2,034,676  1,958,257  1,877,945 
6,163,158  5,980,263  5,686,141  5,641,446  5,455,340 
Less:  Allowance for credit losses (148,210) (150,167) (141,385) (141,841) (142,417)
Total non-PCD loans held for investment, net 6,014,948  5,830,096  5,544,756  5,499,605  5,312,923 
PCD:
Mortgage 955,596  980,833  1,007,751  1,028,428  1,059,448 
Commercial 139,857  152,888  155,614  159,152  162,287 
Consumer 572  568  607  638  738 
Auto 2,552  3,319  4,367  5,658  7,152 
1,098,577  1,137,608  1,168,339  1,193,876  1,229,625 
Less:  Allowance for credit losses (9,319) (9,756) (10,499) (10,832) (12,745)
Total PCD loans held for investment, net 1,089,258  1,127,852  1,157,840  1,183,044  1,216,880 
Total loans held for investment 7,104,206  6,957,948  6,702,596  6,682,649  6,529,803 
Mortgage loans held for sale 564  11,397  13,616  19,499  43,262 
Other loans held for sale 25,282  18,899  19,069  21,088  17,963 
Total loans, net $ 7,130,052  $ 6,988,244  $ 6,735,281  $ 6,723,236  $ 6,591,028 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program $ 1,585,783  $ 1,603,971  $ 1,642,550  $ 1,671,631  $ 1,710,229 
Mortgage GNMA buy-back option program (22) 18,227  18,417  26,348  32,590  29,050 
Commercial, excluding Commercial US 2,125,392  2,105,066  1,963,993  1,987,796  1,917,286 
Commercial US 707,593  669,332  617,574  642,133  622,382 
Consumer 613,195  593,690  564,972  537,257  520,921 
Auto 2,211,545  2,127,395  2,039,043  1,963,915  1,885,097 
7,261,735  7,117,871  6,854,480  6,835,322  6,684,965 
Less:  Allowance for credit losses (157,529) (159,923) (151,884) (152,673) (155,162)
Total loans held for investment, net 7,104,206  6,957,948  6,702,596  6,682,649  6,529,803 
Mortgage loans held for sale 564  11,397  13,616  19,499  43,262 
Other loans held for sale 25,282  18,899  19,069  21,088  17,963 
Total loans, net $ 7,130,052  $ 6,988,244  $ 6,735,281  $ 6,723,236  $ 6,591,028 
7

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
    Quarter Ended Nine-Month Period Ended
(Dollars in thousands) (unaudited)
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
September 30, 2023
September 30, 2022
Loan production (13)
Mortgage   $ 33,346  $ 35,932  $ 30,344  $ 35,242  $ 38,945  $ 99,622  $ 165,663 
Commercial   145,105  220,746  98,300  209,078  123,429  464,151  442,756 
Commercial US   70,311  111,817  124,074  83,162  55,984  306,202  255,326 
Consumer   76,465  87,062  86,284  67,515  73,045  249,811  266,724 
Auto   237,290  236,283  222,325  221,369  219,910  695,898  591,229 
Total   $ 562,517  $ 691,840  $ 561,327  $ 616,366  $ 511,313  $ 1,815,684  $ 1,721,698 
8

OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2023 Q3
2023 Q2
2023 Q1
2022 Q4
2022 Q3
(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 $ 680,864  $ 9,025  5.26  % $ 693,373  $ 9,029  5.22  % $ 552,635  $ 6,445  4.73  % $ 551,555  $ 5,115  3.68  % $ 1,016,561  $ 5,661  2.21  %
Investment securities 1,830,060  14,544  3.18  % 1,796,517  13,441  2.99  % 1,939,990  14,229  2.93  % 2,103,694  15,612  2.97  % 1,883,209  12,774  2.71  %
Loans held for investment
Non-PCD loans 6,065,822  124,847  8.17  % 5,840,860  116,699  8.01  % 5,670,966  109,330  7.82  % 5,542,986  105,238  7.53  % 5,428,852  97,677  7.14  %
PCD loans 1,125,421  17,292  6.15  % 1,162,111  18,819  6.48  % 1,195,620  18,981  6.35  % 1,227,355  19,762  6.44  % 1,269,048  18,563  5.85  %
Total loans 7,191,243  142,139  7.84  % 7,002,971  135,518  7.76  % 6,866,586  128,311  7.58  % 6,770,341  125,000  7.32  % 6,697,900  116,240  6.89  %
Total interest-earning assets $ 9,702,167  $ 165,708  6.78  % $ 9,492,861  $ 157,988  6.68  % $ 9,359,211  $ 148,985  6.46  % $ 9,425,590  $ 145,727  6.13  % $ 9,597,670  $ 134,675  5.57  %
Interest bearing liabilities:                    
Deposits                    
NOW accounts $ 2,445,955  $ 6,974  1.13  % $ 2,455,040  $ 4,973  0.81  % $ 2,497,917  $ 4,212  0.68  % $ 2,624,602  $ 4,050  0.61  % $ 2,799,234  $ 2,927  0.41  %
Savings accounts 2,260,678  5,478  0.96  % 2,222,710  4,129  0.75  % 2,232,903  3,135  0.57  % 2,291,884  2,250  0.39  % 2,388,072  1,733  0.29  %
Time deposits 1,333,132  7,014  2.09  % 1,277,861  5,493  1.72  % 1,209,432  3,821  1.28  % 1,131,791  2,373  0.83  % 1,097,470  1,679  0.61  %
Brokered deposits 2,400  32  5.30  % —  —  —  % 10,229  8  0.30  % 11,366  9  0.30  % 11,366  9  0.30  %
  6,042,165  19,498  1.28  % 5,955,611  14,595  0.98  % 5,950,481  11,176  0.76  % 6,059,643  8,682  0.57  % 6,296,142  6,348  0.40  %
Non-interest bearing deposit accounts 2,581,887  —  —  2,575,972  —  —  2,654,140  —  —  2,710,803  —  —  2,639,313  —  — 
Fair value premium and core deposit intangible amortization —  1,321  —  —  1,321  —  —  1,321  —  —  1,585  —  —  1,639  — 
Total deposits 8,624,052  20,819  0.96  % 8,531,583  15,916  0.75  % 8,604,621  12,497  0.59  % 8,770,446  10,267  0.46  % 8,935,455  7,987  0.35  %
Borrowings
Securities sold under agreements to repurchase 52,365  728  5.52  % —  —  —  % —  —  —  % —  —  —  % —  —  —  %
Advances from FHLB and other borrowings 211,616  2,374  4.45  % 226,256  2,428  4.30  % 64,168  591  3.74  % 26,820  178  2.64  % 27,275  178  2.59  %
Total borrowings 263,981  3,102  4.66  % 226,256  2,428  4.30  % 64,168  591  3.74  % 26,820  178  2.64  % 27,275  178  2.59  %
Total interest-bearing liabilities $ 8,888,033  $ 23,921  1.07  % $ 8,757,839  $ 18,344  0.84  % $ 8,668,789  $ 13,088  0.61  % $ 8,797,266  $ 10,445  0.47  % $ 8,962,730  $ 8,165  0.36  %
Interest rate spread   $ 141,787  5.71  %   $ 139,644  5.84  %   $ 135,897  5.85  %   $ 135,282  5.66  %   $ 126,510  5.21  %
Net interest margin     5.80  %     5.90  %     5.89  %     5.69  %     5.23  %
Core deposits: (Non-GAAP)                              
Deposits                              
NOW accounts $ 2,445,955  $ 6,974  1.13  % $ 2,455,040  $ 4,973  0.81  % $ 2,497,917  $ 4,212  0.68  % $ 2,624,602  $ 4,050  0.61  % $ 2,799,234  $ 2,927  0.41  %
Savings accounts 2,260,678  5,478  0.96  % 2,222,710  4,129  0.75  % 2,232,903  3,135  0.57  % 2,291,884  2,250  0.39  % 2,388,072  1,733  0.29  %
Time deposits 1,333,132  7,014  2.09  % 1,277,861  5,493  1.72  % 1,209,432  3,821  1.28  % 1,131,791  2,373  0.83  % 1,097,470  1,679  0.61  %
  6,039,765  19,466  1.28  % 5,955,611  14,595  0.98  % 5,940,252  11,168  0.76  % 6,048,277  8,673  0.57  % 6,284,776  6,339  0.40  %
Non-interest bearing deposit accounts 2,581,887  —  —  2,575,972  —  —  2,654,140  —  —  2,710,803  —  —  2,639,313  —  — 
Total core deposits $ 8,621,652  $ 19,466  0.90  % $ 8,531,583  $ 14,595  0.69  % $ 8,594,392  $ 11,168  0.53  % $ 8,759,080  $ 8,673  0.39  % $ 8,924,089  $ 6,339  0.28  %

9

OFG Bancorp (NYSE: OFG)
Table 5-2: Average Balances, Net Interest Income and Net Interest Margin (Continued)
2023 YTD 2022 YTD
(Dollars in thousands) (unaudited) Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate
Interest earning assets:
Cash equivalents $ 662,813  $ 24,499  4.94  % $ 1,541,036  $ 9,574  0.83  %
Investment securities 1,855,120  42,214  3.03  % 1,423,120  25,110  2.35  %
Loans held for investment
Non-PCD loans 5,860,662  350,876  8.00  % 5,287,144  276,096  6.98  %
PCD loans 1,160,794  55,092  6.33  % 1,332,664  59,066  5.91  %
Total loans 7,021,456  405,968  7.73  % 6,619,808  335,162  6.77  %
Total interest-earning assets $ 9,539,389  $ 472,681  6.62  % $ 9,583,964  $ 369,846  5.16  %
Interest bearing liabilities:
Deposits
NOW accounts $ 2,466,113  $ 16,160  0.88  % $ 2,807,838  $ 7,241  0.34  %
Savings accounts 2,238,866  12,742  0.76  % 2,311,568  4,220  0.24  %
Time deposits 1,273,928  16,328  1.71  % 1,147,404  5,570  0.65  %
Brokered deposits 4,181  40  1.27  % 11,366  26  0.30  %
5,983,088  45,270  1.01  % 6,278,176  17,057  0.36  %
Non-interest bearing deposit accounts 2,603,735  —  —  % 2,626,663  —  —  %
Fair value premium and core deposit intangible amortization —  3,962  —  —  4,915  — 
Total deposits 8,586,823  49,232  0.77  % 8,904,839  21,972  0.33  %
Borrowings
Securities sold under agreements to repurchase 17,647  728  5.52  % —  —  —  %
Advances from FHLB and other borrowings 167,887  5,393  4.29  % 27,725  555  2.67  %
Total borrowings 185,534  6,121  4.41  % 33,025  1,076  4.35  %
Total interest-bearing liabilities $ 8,772,357  $ 55,353  0.84  % $ 8,937,864  $ 23,048  0.34  %
Interest rate spread $ 417,328  5.78  % $ 346,798  4.82  %
Net interest margin   5.85  % 4.84  %
Core deposits: (Non-GAAP)
Deposits
NOW accounts $ 2,466,113  $ 16,160  0.88  % $ 2,807,838  $ 7,241  0.34  %
Savings accounts 2,238,866  12,742  0.76  % 2,311,568  4,220  0.24  %
Time deposits 1,273,928  16,328  1.71  % 1,147,404  5,570  0.65  %
5,978,907  45,230  1.01  % 6,266,810  17,031  0.36  %
Non-interest bearing deposit accounts 2,603,735  —  —  % 2,626,663  —  —  %
Total core deposits $ 8,582,642  $ 45,230  0.70  % $ 8,893,473  $ 17,031  0.26  %
10

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
2023 2023 2023 2022 2022
(Dollars in thousands) (unaudited) Q3 Q2 Q1 Q4 Q3
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs $ 218  $ 191  $ 200  $ 8  $ 14 
Recoveries (185) (333) (216) (625) (280)
Total mortgage 33  (142) (16) (617) (266)
Commercial:
Charge-offs 8,254  (a) 3,496  1,375  3,444  6,485 
Recoveries (174) (237) (326) (338) (214)
Total commercial 8,080  3,259  1,049  3,106  6,271 
Consumer:          
Charge-offs 5,894  5,518  5,444  5,069  4,163 
Recoveries (655) (2,003) (867) (1,055) (732)
Total consumer 5,239  3,515  4,577  4,014  3,431 
Auto:          
Charge-offs 10,458  9,170  9,478  10,380  7,964 
Recoveries (5,193) (8,332) (6,600) (5,001) (5,674)
Total auto 5,265  838  2,878  5,379  2,290 
Total $ 18,617  $ 7,470  $ 8,488  $ 11,882  $ 11,726 
PCD
Mortgage:
Charge-offs $ 148  $ 1  $ 74  $ 108  $ 270 
Recoveries (80) (260) (247) (603) (191)
Total mortgage 68  (259) (173) (495) 79 
Commercial:          
Charge-offs 690  —  2,104  12  23 
Recoveries (494) (319) (490) (264) (268)
Total commercial 196  (319) 1,614  (252) (245)
Consumer:          
Charge-offs 39  123  215  120  9 
Recoveries (23) (43) (11) (11) (47)
Total consumer 16  80  204  109  (38)
Auto:          
Charge-offs 37  35  86  65  56 
Recoveries (98) (401) (99) (104) (231)
Total auto (61) (366) (13) (39) (175)
Total $ 219  $ (864) $ 1,632  $ (677) $ (379)
Total Net Charge-offs $ 18,836  (a) $ 6,606  $ 10,120  $ 11,205  $ 11,347 
Net Charge-off Rates          
Mortgage 0.03  % -0.10  % -0.05  % -0.26  % -0.04  %
Commercial 1.18  % (a) 0.44  % 0.41  % 0.44  % 0.94  %
Consumer 3.33  % 2.37  % 3.30  % 2.95  % 2.52  %
Auto 0.96  % 0.09  % 0.57  % 1.11  % 0.46  %
Total 1.05  % 0.38  % 0.59  % 0.66  % 0.68  %
Average Loans Held For Investment          
Mortgage $ 1,576,637  $ 1,616,873  $ 1,653,423  $ 1,699,923  $ 1,757,897 
Commercial 2,812,274  2,697,986  2,627,610  2,586,536  2,560,849 
Consumer 630,492  606,842  579,467  558,809  538,898 
Auto 2,171,840  2,081,270  2,006,086  1,925,073  1,840,256 
Total $ 7,191,243  $ 7,002,971  $ 6,866,586  $ 6,770,341  $ 6,697,900 

(a) Refer to “(a)” in Table 1-1.




11

OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
2023 2023 2023 2022 2022
(Dollars in thousands) (unaudited) Q3 Q2 Q1 Q4 Q3
Early Delinquency (30 - 89 days past due)          
Mortgage $ 14,380  $ 13,976  $ 11,417  $ 15,115  $ 15,769 
Commercial 5,666  (a) 11,668  3,898  2,750  13,223 
Consumer 10,160  8,188  8,478  8,895  9,280 
Auto 139,278  117,237  96,294  112,191  111,637 
Total  $ 169,484  $ 151,069  $ 120,087  $ 138,951  $ 149,909 
Early Delinquency Rates (30 - 89 days past due)          
Mortgage 2.22  % 2.18  % 1.73  % 2.24  % 2.32  %
Commercial 0.21  % (a) 0.45  % 0.16  % 0.11  % 0.56  %
Consumer 1.66  % 1.38  % 1.50  % 1.66  % 1.78  %
Auto 6.31  % 5.52  % 4.73  % 5.73  % 5.94  %
Total 2.75  % 2.53  % 2.11  % 2.46  % 2.75  %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation $ 30,661  $ 31,189  $ 32,084  $ 39,239  $ 39,577 
GNMA's buy-back option program (22) 18,227  18,418  26,348  32,590  29,050 
Total mortgage 48,888  49,607  58,432  71,829  68,627 
Commercial 15,109  (a) 28,643  12,881  12,122  24,343 
Consumer 13,422  11,026  11,402  12,008  11,956 
Auto 155,579  130,367  110,749  131,804  132,507 
Total $ 232,998  $ 219,643  $ 193,464  $ 227,763  $ 237,433 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation 4.73  % 4.86  % 4.85  % 5.81  % 5.82  %
GNMA's buy-back option program (22) 2.81  % 2.87  % 3.99  % 4.82  % 4.27  %
Total mortgage 7.54  % 7.73  % 8.84  % 10.63  % 10.09  %
Commercial 0.56  % (a) 1.09  % 0.53  % 0.49  % 1.03  %
Consumer 2.19  % 1.86  % 2.02  % 2.24  % 2.30  %
Auto 7.04  % 6.14  % 5.44  % 6.73  % 7.06  %
Total 3.78  % 3.67  % 3.40  % 4.04  % 4.35  %
Nonperforming Assets (14)
Mortgage $ 25,354  $ 27,600  $ 30,641  $ 33,512  $ 33,225 
Commercial 36,649  (a) 43,188  27,025  34,432  36,612 
Consumer 3,359  2,907  2,979  3,128  2,725 
Auto 16,301  13,130  14,455  19,613  20,870 
Total nonperforming loans 81,663  86,825  75,100  90,685  93,432 
Foreclosed real estate 9,555  10,639  9,250  11,214  14,561 
Other repossessed assets 4,432  4,004  4,563  4,617  3,307 
Total nonperforming assets $ 95,650  $ 101,468  $ 88,913  $ 106,516  $ 111,300 
Nonperforming Loan Rates          
Mortgage 3.91  % 4.30  % 4.63  % 4.96  % 4.89  %
Commercial 1.36  % (a) 1.65  % 1.11  % 1.40  % 1.55  %
Consumer 0.55  % 0.49  % 0.53  % 0.58  % 0.52  %
Auto 0.74  % 0.62  % 0.71  % 1.00  % 1.11  %
Total loans 1.33  % 1.45  % 1.32  % 1.61  % 1.71  %
(a) Refer to “(a)” in Table 1-1.
12

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
  2023 2023 2023 2022 2022
(Dollars in thousands) (unaudited)   Q3 Q2 Q1 Q4 Q3
Nonperforming PCD Loans (14)
Mortgage   $ 253  $ 256  $ 258  $ 259  $ 260 
Commercial   6,688  8,104  8,446  8,927  9,746 
Consumer   7  —  —  —  — 
Total nonperforming loans   $ 6,948  $ 8,360  $ 8,704  $ 9,186  $ 10,006 
Nonperforming PCD Loan Rates            
Mortgage   0.03  % 0.03  % 0.03  % 0.03  % 0.02  %
Commercial   4.78  % 5.30  % 5.43  % 5.61  % 6.01  %
Consumer   1.22  % 0.00  % 0.00  % 0.00  % 0.00  %
Total   0.63  % 0.73  % 0.74  % 0.77  % 0.81  %
Total PCD Loans Held for Investment          
Mortgage   $ 955,596  $ 980,833  $ 1,007,751  $ 1,028,428  $ 1,059,448 
Commercial   139,857  152,888  155,614  159,152  162,287 
Consumer   572  568  607  638  738 
Auto 2,552  3,319  4,367  5,658  7,152 
Total loans   $ 1,098,577  $ 1,137,608  $ 1,168,339  $ 1,193,876  $ 1,229,625 
  2023 2023 2023 2022 2022
(Dollars in thousands) (unaudited)   Q3 Q2 Q1 Q4 Q3
Total Nonperforming Loans (14)          
Mortgage   $ 25,607  $ 27,856  $ 30,899  $ 33,771  $ 33,485 
Commercial   43,337  51,292  35,471  43,359  46,358 
Consumer   3,366  2,907  2,979  3,128  2,725 
Auto   16,301  13,130  14,455  19,613  20,870 
Total nonperforming loans   $ 88,611  $ 95,185  $ 83,804  $ 99,871  $ 103,438 
Total Nonperforming Loan Rates  
Mortgage   1.60  % 1.72  % 1.85  % 1.98  % 1.93  %
Commercial   1.53  % 1.85  % 1.37  % 1.65  % 1.83  %
Consumer   0.55  % 0.49  % 0.53  % 0.58  % 0.52  %
Auto   0.74  % 0.62  % 0.71  % 1.00  % 1.11  %
Total   1.22  % 1.34  % 1.22  % 1.46  % 1.55  %
Total Loans Held for Investment          
Mortgage   $ 1,604,010  $ 1,622,388  $ 1,668,898  $ 1,704,221  $ 1,739,279 
Commercial   2,832,985  2,774,398  2,581,567  2,629,929  2,539,668 
Consumer   613,195  593,690  564,972  537,257  520,921 
Auto   2,211,545  2,127,395  2,039,043  1,963,915  1,885,097 
Total loans   $ 7,261,735  $ 7,117,871  $ 6,854,480  $ 6,835,322  $ 6,684,965 


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OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended September 30, 2023
(Dollars in thousands) (unaudited) Mortgage Commercial Consumer Auto Total
Allowance for credit losses Non-PCD:          
Balance at beginning of period $ 8,670  $ 48,604  $ 25,666  $ 67,227  $ 150,167 
Provision for (recapture of) credit losses (273) 1,103  6,026  9,804  16,660 
Charge-offs (218) (8,254) (a) (5,894) (10,458) (24,824)
Recoveries 185  174  655  5,193  6,207 
Balance at end of period $ 8,364  $ 41,627  $ 26,453  $ 71,766  $ 148,210 
Allowance for credit losses PCD:
Balance at beginning of period $ 8,297  $ 1,408  $ 8  $ 43  $ 9,756 
Provision for (recapture of) credit losses (226) 60  15  (67) (218)
Charge-offs (148) (690) (39) (37) (914)
Recoveries 80  494  23  98  695 
Balance at end of period $ 8,003  $ 1,272  $ 7  $ 37  $ 9,319 
Allowance for credit losses summary:
Balance at beginning of period $ 16,967  $ 50,012  $ 25,674  $ 67,270  $ 159,923 
Provision for (recapture of) credit losses (499) 1,163  6,041  9,737  16,442 
Charge-offs (366) (8,944) (a) (5,933) (10,495) (25,738)
Recoveries 265  668  678  5,291  6,902 
Balance at end of period $ 16,367  $ 42,899  $ 26,460  $ 71,803  $ 157,529 
Allowance coverage ratio 1.02  % 1.51  % 4.32  % 3.25  % 2.17  %
(a)Refer to “(a)” in Table 1-1.

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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.
2023 2023 2023 2022 2022
(Dollars in thousands) (unaudited) Q3 Q2 Q1 Q4 Q3
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity $ 1,095,463  $ 1,099,751  $ 1,089,510  $ 1,042,406  $ 993,867 
Less:  Intangible assets (106,660) (108,384) (110,109) (111,834) (115,731)
Tangible common equity $ 988,803  $ 991,367 $ 979,401 $ 930,572 $ 878,136
         
Common shares outstanding at end of period 47,058  47,076  47,611  47,581  47,563 
Tangible book value per common share (Non-GAAP) $ 21.01  $ 21.06  $ 20.57  $ 19.56  $ 18.46 
Total Assets to Tangible Assets          
Total assets   $ 10,257,138  $ 10,031,547  $ 10,057,581  $ 9,818,780  $ 10,058,179 
Less:  Intangible assets (106,660) (108,384) (110,109) (111,834) (115,731)
Tangible assets (Non-GAAP) $ 10,150,478  $ 9,923,163  $ 9,947,472  $ 9,706,946  $ 9,942,448 
Non-GAAP TCE Ratio          
Tangible common equity $ 988,803  $ 991,367 $ 979,401 $ 930,572 $ 878,136
Tangible assets 10,150,478  9,923,163  9,947,472  9,706,946  9,942,448 
TCE ratio 9.74  % 9.99  % 9.85  % 9.59  % 8.83  %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity $ 1,127,602  $ 1,108,880  $ 1,077,703  $ 1,025,132  $ 1,045,792 
Less:  Average intangible assets (107,291) (109,130) (110,888) (114,412) (116,612)
Average tangible common equity $ 1,020,311  $ 999,750 $ 966,815 $ 910,720 $ 929,180



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OFG Bancorp (NYSE: OFG)
Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)
BASEL III
Standardized
2023 2023   2023 2022 2022
(Dollars in thousands) (unaudited) Q3 Q2   Q1 Q4 Q3
Regulatory Capital Metrics            
Common equity Tier 1 capital $ 1,121,944 $ 1,086,587 $ 1,063,919 $ 1,037,385 $ 995,342
Tier 1 capital 1,121,944 1,086,587 1,063,919 1,037,385 995,342
Total risk-based capital (15) 1,222,225 1,183,793 1,158,744 1,132,658 1,088,584
Risk-weighted assets 7,993,991 7,742,933 7,559,166 7,605,466 7,440,482
Regulatory Capital Ratios
Common equity Tier 1 capital ratio (16) 14.03  % 14.03  % 14.07  % 13.64  % 13.38  %
Tier 1 risk-based capital ratio (17) 14.03  % 14.03  % 14.07  % 13.64  % 13.38  %
Total risk-based capital ratio (18) 15.29  % 15.29  % 15.33  % 14.89  % 14.63  %
Leverage ratio (19) 11.01  % 10.85  % 10.75  % 10.36  % 9.82  %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity $ 1,095,463 $ 1,099,751  $ 1,089,510  $ 1,042,406  $ 993,867 
Plus: CECL transition adjustment (20) 13,704 13,704 13,704 20,557 20,557
Less: Unrealized losses on available-for-sale securities, net of income tax 127,677 89,639 78,512 93,663 104,145
Unrealized (gains) losses on cash flow hedges, net of income tax — (75) (172) (254) (256)
Total adjusted stockholders’equity 1,236,844 1,203,019 1,181,554 1,156,372 1,118,313
Less: Disallowed goodwill (84,241) (84,241) (84,241) (84,241) (86,069)
Disallowed other intangible assets, net (16,883) (18,015) (19,147) (20,279) (21,617)
Disallowed deferred tax assets, net (13,776) (14,176) (14,247) (14,467) (15,285)
Common equity Tier 1 capital and Tier 1 capital 1,121,944 1,086,587 1,063,919 1,037,385 995,342
Plus Tier 2 capital:  Qualifying allowance for credit losses 100,281 97,206 94,825 95,273 93,242
Total risk-based capital $ 1,222,225 $ 1,183,793  $ 1,158,744  $ 1,132,658  $ 1,088,584 



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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 (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.
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