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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): January 24, 2024
________________
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 January 24, 2024, OFG Bancorp (the “Company”) announced the results for the quarter ended December 31, 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: January 24, 2024
 By: /s/ Maritza Arizmendi
Maritza Arizmendi
Chief Financial Officer

EX-99 2 ofg-20234qxexx99.htm EX-99 Document

Exhibit 99
ofgbancorplogo.jpg
OFG Bancorp Reports 4Q23 & 2023 Results
SAN JUAN, Puerto Rico, January 24, 2024 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the fourth quarter and year ended December 31, 2023.

4Q23: EPS diluted of $0.98 compared to $0.95 in 3Q23 and $0.97 in 4Q22. Total core revenues of $175.6 million compared to $172.2 million in 3Q23 and $168.3 million in 4Q22.

Full Year 2023: EPS diluted of $3.83 compared to $3.44 in 2022. Total core revenues of $682.7 million compared to $607.8 million.
CEO Comment
José Rafael Fernández, Chief Executive Officer, said: “2023 was an outstanding year. We are proud of our accomplishments and thank the entire team for making it possible. We ended 2023 with record levels of loans, customer deposits, assets, and stockholders’ equity. Year-end commercial loan balances exceeded $3 billion and tangible common equity was more than $1 billion, both for the first time. Our ‘Digital First Strategy’ continues to empower our retail customers to complete 93% of routine transactions through self-service channels. While consumer credit has begun to normalize post-pandemic, consumer liquidity and employment as well as commercial clients and the economy continue to be strong in Puerto Rico.”
4Q23 Results Included:
Gain on Sale of Non-Performing Puerto Rico Small Business Loans: Resulted in a $6.3 million pre-tax gain in other non-interest income.

Workforce Early Retirement & Rightsizing: Resulted in $3.2 million in severance and lease cancellation costs in non-interest compensation and infrastructure expenses.

Large Public Funds Deposit: $1.2 billion deposited mid-December.

4Q23 Highlights
Performance Metrics: Net interest margin of 5.62%, return on average assets of 1.76%, return on average tangible common stockholders’ equity of 18.22%, and efficiency ratio of 53.59%.

Total Interest Income of $176.2 million compared to $165.7 million in 3Q23 and $145.7 million in 4Q22. Compared to 3Q23, 4Q23 primarily reflected higher average balances and yields on loans and investment securities.

Total Interest Expense of $32.7 million compared to $23.9 million in 3Q23 and $10.4 million in 4Q22. Compared to 3Q23, 4Q23 reflected increases of $4.0 million in the cost of average core deposits and $4.8 million in the cost of average wholesale funding, primarily due to temporarily higher balances of borrowings and brokered deposits during the quarter.

Total Banking & Financial Service Revenues of $32.1 million compared to $30.4 million in 3Q23 and $33.0 million in 4Q22. Compared to 3Q23, 4Q23 reflected annual insurance commission recognition of $2.5 million in wealth management revenues and lower mortgage servicing revenues.



Pre-Provision Net Revenues of $88.2 million compared to $82.3 million in 3Q23 and $76.9 million in 4Q22.

Total Provision for Credit Losses of $19.7 million compared to $16.4 million in 3Q23 and $8.8 million in 4Q22. 4Q23 provision primarily reflected increased loan volume.

Credit Quality: Net charge-offs of $16.3 million compared to $18.8 million in 3Q23 and $11.2 million in 4Q22. 4Q23 early and total delinquency rates were 2.76% and 3.76%, respectively, in line with 3Q23. The nonperforming loan rate of 1.22% was the lowest over the last five quarters.

Total Non-Interest Expense of $94.1 million compared to $90.2 million in 3Q23 and $91.6 million in 4Q22.

Loans Held for Investment (EOP) of $7.53 billion compared to $7.26 billion in 3Q23 and $6.84 billion in 4Q22. Loans increased 3.8% from 3Q23 and 10.2% year-over-year, reflecting increases in commercial loans, and retail auto and consumer loans. This was partially offset by regular paydowns of residential mortgages and securitization and sale of conforming loans.

New Loan Production of $663.9 million compared to $567.5 million in 3Q23 and $616.4 million in 4Q22. 4Q23 primarily reflected increased Puerto Rico commercial lending.

Total Investments (EOP) of $2.69 billion compared to $2.07 billion in 3Q23 and $1.97 billion in 4Q22. 4Q23 investments reflected purchases of $300 million of short-term US Treasury bills and $250 million of long-term government insured, mortgage-backed securities.

Customer Deposits (EOP) of $9.60 billion compared to $8.54 billion in 3Q23 and $8.56 billion in 4Q22.

Total Borrowings & Brokered Deposits (EOP) of $363.0 million compared to $454.4 million in 3Q23 and $38.4 million in 4Q22. The average balance of such wholesale funding was $602.0 million in 4Q23 compared to $266.4 million in 3Q23. The 12/31/23 balance reflected repayment of $250 million of borrowings and the addition of $160 million of brokered deposits, most of which will mature in early 1Q24.

Cash & Cash Equivalents (EOP) of $748.2 million compared to $532.7 million in 3Q23 and $550.5 million in 4Q22.

Total Assets (EOP) of $11.34 billion compared to $10.26 billion in 3Q23 and $9.82 billion in 4Q22.

Capital: CET1 ratio was 14.12% compared to 14.06% in 3Q23 and 13.64% in 4Q22. The Tangible Common Equity ratio was 9.68% compared to 9.74% in 3Q23 and 9.59% in 4Q22. Tangible Book Value (TBV) of $23.13 per share compared to $21.01 in 3Q23 and $19.56 in 4Q22. 4Q23 TBV reflected increased retained earnings and Accumulated Other Comprehensive Income.

Conference Call, Financial Supplement & Presentation


A conference call to discuss 4Q23 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 267-6316 or (203) 518-9783. Conference ID: OFGQ423. 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 and year ended December 31, 2023, and the 4Q23 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 60th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at www.ofgbancorp.com. 
# # #
Contacts
Puerto Rico & USVI: Idalis Montalvo (idalis.montalvo@orientalbank.com) at (787) 777-2847
(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 December 31, 2023 Annual Report on Form 10-K 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
2023
2022
(Dollars in thousands, except per share data) (unaudited)
Q4
Q3
Q2
Q1
Q4
Statement of Operations
Net interest income   $ 143,542 $ 141,787 $ 139,644 $ 135,897 $ 135,282
Non-interest income, net (core) (1) 32,061 30,404 30,859 28,531 33,012
Total core revenues (2) 175,603 172,191 170,503 164,428 168,294
Non-interest expense   94,099 90,158 88,888 90,220 91,641
Pre-provision net revenues (21) 88,151 82,328 80,829 74,578 76,895
Total provision for credit losses   19,719 16,430 15,044 9,445 8,757
Net income before income taxes   68,432 65,898 65,785 65,133 68,138
Income tax expense   21,835 21,025 21,612 18,904 21,771
Net income available to common stockholders   46,597 44,873 44,173 46,229 46,367
Common Share Statistics            
Earnings per common share - basic (3) $ 0.99 $ 0.95 $ 0.93 $ 0.97 $ 0.97
Earnings per common share - diluted (4) $ 0.98 $ 0.95 $ 0.93 $ 0.96 $ 0.97
Average common shares outstanding   47,061 47,114 47,266 47,600 47,572
Average common shares outstanding and equivalents   47,386 47,392 47,490 47,944 47,964
Cash dividends per common share   $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.20
Book value per common share (period end)   $ 25.36 $ 23.28 $ 23.36 $ 22.88 $ 21.91
Tangible book value per common share (period end) (5) $ 23.13 $ 21.01 $ 21.06 $ 20.57 $ 19.56
Balance Sheet (Average Balances)            
Loans (6) $ 7,417,084 $ 7,191,243 $ 7,002,971 $ 6,866,586 $ 6,770,341
Interest-earning assets   10,129,061 9,702,167 9,492,861 9,359,211 9,425,590
Total assets   10,588,584 10,180,931 10,020,940 9,900,409 9,989,293
Core deposits   8,691,516 8,621,652 8,531,583 8,594,392 8,759,080
Total deposits   8,834,234 8,624,052 8,531,583 8,604,621 8,770,446
Interest-bearing deposits   6,282,916 6,042,165 5,955,611 5,950,481 6,059,643
Borrowings   459,315 263,981 226,256 64,168 26,820
Stockholders' equity   1,128,747 1,127,602 1,108,880 1,077,703 1,025,132
Performance Metrics            
Net interest margin (7) 5.62  % 5.80  % 5.90  % 5.89  % 5.69  %
Return on average assets (8) 1.76  % 1.76  % 1.76  % 1.87  % 1.86  %
Return on average tangible common stockholders' equity (9) 18.22  % 17.59  % 17.67  % 19.13  % 20.36  %
Efficiency ratio (10) 53.59  % 52.36  % 52.13  % 54.87  % 54.45  %
Full-time equivalent employees, period end   2,248  2,264  2,265  2,249  2,253 
Credit Quality Metrics          
Allowance for credit losses $ 161,106 $ 157,529 $ 159,923 $ 151,884 $ 152,673
Allowance as a % of loans held for investment 2.14  % 2.17  % 2.25  % 2.22  % 2.23  %
Net charge-offs $ 16,282 $ 18,836 $ 6,606 $ 10,120 $ 11,205
Net charge-off rate (11) 0.88  % 1.05  % 0.38  % 0.59  % 0.66  %
Early delinquency rate (30 - 89 days past due) 2.76  % 2.75  % 2.53  % 2.11  % 2.46  %
Total delinquency rate (30 days and over) 3.76  % 3.78  % 3.67  % 3.40  % 4.04  %
Capital Ratios (period end) (Non-GAAP) (12)(20)
Leverage ratio 11.03  % 11.03  % 10.85  % 10.75  % 10.36  %
Common equity Tier 1 capital ratio 14.12  % 14.06  % 14.03  % 14.07  % 13.64  %
Tier 1 risk-based capital ratio 14.12  % 14.06  % 14.03  % 14.07  % 13.64  %
Total risk-based capital ratio 15.37  % 15.31  % 15.29  % 15.33  % 14.89  %
Tangible common equity ("TCE") ratio 9.68  % 9.74  % 9.99  % 9.85  % 9.59  %


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 $ 560,870  $ 482,080 
Non-interest income, net (core) (1) 121,855  125,725 
Total core revenues (2) 682,725  607,805 
Non-interest expense 363,365  345,546 
Pre-provision net revenues (21) 325,886  268,224 
Total provision for credit losses 60,638  24,119 
Net income before income taxes 265,248  244,105 
Income tax expense 83,376  77,866 
Net income available to common stockholders 181,872  166,239 
Common Share Statistics
Earnings per common share - basic (3) $ 3.85  $ 3.46 
Earnings per common share - diluted (4) $ 3.83  $ 3.44 
Average common shares outstanding 47,258  48,033 
Average common shares outstanding and equivalents 47,552  48,436 
Cash dividends per common share $ 0.88  $ 0.70 
Book value per common share (period end) $ 25.36  $ 21.91 
Tangible book value per common share (period end) (5) $ 23.13  $ 19.56 
Balance Sheet (Average Balances)
Loans (6) $ 7,121,176  $ 6,657,760 
Interest-earning assets 9,688,019  9,544,055 
Total assets 10,174,624  10,119,505 
Core deposits 8,610,084  8,859,600 
Total deposits 8,649,184  8,870,966 
Interest-bearing deposits 6,058,661  6,223,095 
Borrowings 254,541  31,461 
Stockholders' equity 1,110,919  1,042,202 
Performance Metrics
Net interest margin (7) 5.79  % 5.05  %
Return on average assets (8) 1.79  % 1.64  %
Return on average tangible common stockholders' equity (9) 18.14  % 17.98  %
Efficiency ratio (10) 53.22  % 56.85  %
Full-time equivalent employees, period end 2,248  2,253 
Credit Quality Metrics
Allowance for credit losses $ 161,106  $ 152,673 
Allowance as a % of loans held for investment 2.14  % 2.23  %
Net charge-offs $ 51,844  $ 27,672 
Net charge-off rate (11) 0.73  % 0.42  %
Early delinquency rate (30 - 89 days past due) 2.76  % 2.46  %
Total delinquency rate (30 days and over) 3.76  % 4.04  %



3

OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited)   December 31, 2023 September 30, 2023 June 30,
2023		 March 31,
2023		 December 31,
2022
Interest income:  
Loans
Non-PCD loans   $ 131,167  $ 124,847  $ 116,699  $ 109,330  $ 105,238 
PCD loans   17,609  17,292  18,819  18,981  19,762 
Total interest income from loans   148,776  142,139  135,518  128,311  125,000 
Investment securities and cash   27,423  23,569  22,470  20,674  20,727 
Total interest income   176,199  165,708  157,988  148,985  145,727 
Interest expense:
Deposits
Core deposits   24,753  20,787  15,916  12,489  10,258 
Brokered deposits   1,980  32  —  8  9 
Total deposits   26,733  20,819  15,916  12,497  10,267 
Borrowings   5,924  3,102  2,428  591  178 
Total interest expense   32,657  23,921  18,344  13,088  10,445 
Net interest income   143,542  141,787  139,644  135,897  135,282 
Provision for credit losses, excluding PCD loans 20,681  16,648  16,650  8,146  11,347 
(Recapture of) provision for credit losses on PCD loans (962) (218) (1,606) 1,299  (2,590)
Total provision for credit losses   19,719  16,430  15,044  9,445  8,757 
Net interest income after provision for credit losses   123,823  125,357  124,600  126,452  126,525 
Non-interest income:            
Banking service revenues   17,822  17,303  17,440  17,513  18,224 
Wealth management revenues   9,985  (a) 7,691  8,194  7,120  8,335 
Mortgage banking activities   4,254  (b) 5,410  5,225  3,898  6,453 
Total banking and financial service revenues   32,061  30,404  30,859  28,531  33,012 
Other income (loss), net   6,647  (c) 295  (786) 370  242 
Total non-interest income, net   38,708  30,699  30,073  28,901  33,254 
Non-interest expense:
Compensation and employee benefits   41,418  (d) 38,095  37,841  38,473  38,100 
Occupancy, equipment and infrastructure costs   15,729  14,887  14,362  14,257  13,893 
General and administrative expenses   35,803  37,203  39,005  36,697  39,409 
Foreclosed real estate and other repossessed assets expenses (income), net   1,149  (27) (2,320) 793  239 
Total non-interest expense   94,099  90,158  88,888  90,220  91,641 
Income before income taxes   68,432  65,898  65,785  65,133  68,138 
Income tax expense   21,835  21,025  21,612  18,904  21,771 
Net income available to common shareholders   $ 46,597  $ 44,873  $ 44,173  $ 46,229  $ 46,367 
(a) During 4Q 2023, annual insurance contingent commissions amounted to $2.5 million, $1.3 million higher than a year ago due to last year’s Hurricane Fiona’s related claims.
(b) During 4Q 2023, the Company recognized a reduction of $1.1 million in mortgage servicing asset valuation.
(c) During 4Q 2023, the Company recognized a $6.3 million gain on the sale of commercial non-performing loans held-for-sale amounting to $4.3 million, with an unpaid principal balance of $25.3 million.
(d) During 4Q 2023, the Company recognized higher compensation expenses by $2.8 million from a voluntary retirement program launched during the quarter and other rightsizing initiatives.
4

OFG Bancorp (NYSE: OFG)
Table 2-2: Consolidated Statements of Operations (Continued)
(Dollars in thousands, except per share data) (unaudited) Year Ended
December 31, 2023
December 31, 2022
Interest income:
Loans
Non-PCD loans $ 482,043  $ 381,334 
PCD loans 72,701  78,828 
Total interest income from loans 554,744  460,162 
Investment securities and cash 94,136  55,411 
Total interest income 648,880  515,573 
Interest expense:
Deposits
Core deposits 73,945  32,204 
Brokered deposits 2,020  35 
Total deposits 75,965  32,239 
Borrowings 12,045  1,254 
Total interest expense 88,010  33,493 
Net interest income 560,870  482,080 
Provision for credit losses, excluding PCD loans 62,125  42,129 
Recapture of credit losses on PCD loans (1,487) (18,010)
Total provision for credit losses 60,638  24,119 
Net interest income after provision for credit losses 500,232  457,961 
Non-interest income:    
Banking service revenues 70,078  71,161 
Wealth management revenues 32,990  (a) 32,635 
Mortgage banking activities 18,787  (b) 21,929 
Total banking and financial service revenues 121,855  125,725 
Other income, net 6,526  (c) 5,965 
Total non-interest income, net 128,381  131,690 
Non-interest expense:
Compensation and employee benefits 155,827  (d) 142,930 
Occupancy, equipment and infrastructure costs 59,235  51,308 
General and administrative expenses 148,708  153,382 
Foreclosed real estate and other repossessed assets income, net of expenses (405) (2,074)
Total non-interest expense 363,365  345,546 
Income before income taxes 265,248  244,105 
Income tax expense 83,376  77,866 
Net income available to common shareholders $ 181,872  $ 166,239 
(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.



5

OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
Cash and cash equivalents $ 748,173  (a) $ 532,699  $ 798,973  $ 847,494  $ 550,464 
Investments:
Trading securities 13  14  13  10  9 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities 1,801,849  (a) 1,511,779  1,139,996  1,109,889  1,102,501 
US treasury notes 296,799  (a) 739  748  242,098  309,133 
Other investment securities 616  635  1,101  1,119  1,142 
Total investment securities available-for-sale 2,099,264  1,513,153  1,141,845  1,353,106  1,412,776 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities 314,710  320,249  326,935  332,852  337,435 
US treasury notes 199,314  198,896  198,478  198,028  197,635 
Other investment securities 35,000  —  —  —  — 
Total investment securities held-to-maturity 549,024  519,145  525,413  530,880  535,070 
Equity securities 38,469  42,162  35,946  33,218  23,667 
Total investments 2,686,770  2,074,474  1,703,217  1,917,214  1,971,522 
Loans, net 7,401,618  7,130,052  6,988,244  6,735,281  6,723,236 
Other assets:
Prepaid expenses 62,858  67,191  67,966  59,125  54,641 
Deferred tax asset, net 4,923  11,121  20,306  37,372  55,485 
Foreclosed real estate and repossessed properties 14,812  13,987  14,643  13,813  15,831 
Premises and equipment, net 104,102  103,040  104,166  104,851  106,820 
Goodwill 84,241  84,241  84,241  84,241  84,241 
Other intangibles 20,694  22,419  24,143  25,868  27,593 
Right of use assets 21,725  20,011  21,840  23,897  25,363 
Servicing asset 49,520  50,601  49,966  49,345  50,921 
Accounts receivable and other assets 145,017  147,302  153,842  159,080  152,663 
Total assets $ 11,344,453  $ 10,257,138  $ 10,031,547  $ 10,057,581  $ 9,818,780 
Deposits:
Demand deposits $ 6,050,428  (a) $ 4,894,958  $ 5,008,521  $ 5,038,122  $ 5,176,758 
Savings accounts 2,088,102  2,216,162  2,222,326  2,271,774  2,227,965 
Time deposits 1,461,459  1,427,497  1,307,179  1,255,525  1,152,270 
Brokered deposits 162,180  2,936  —  —  11,371 
Total deposits 9,762,169  8,541,553  8,538,026  8,565,421  8,568,364 
Borrowings:          
Securities sold under agreements to repurchase —  (a) 150,701  —  —  — 
Advances from FHLB and other borrowings 200,770  300,774  226,507  226,789  27,034 
Total borrowings 200,770  451,475  226,507  226,789  27,034 
Other liabilities:          
Acceptances outstanding 25,576  30,984  35,945  30,094  28,607 
Lease liability 24,029  22,269  24,031  25,990  27,370 
GNMA buy-back option program liability (22) 19,401  18,227  18,417  26,348  32,590 
Deferred tax liability, net
 22,444  —  —  —  — 
Accrued expenses and other liabilities 96,584  97,167  88,870  93,429  92,409 
Total liabilities 10,150,973  9,161,675  8,931,796  8,968,071  8,776,374 
Stockholders' equity:
Common stock 59,885  59,885  59,885  59,885  59,885 
Additional paid-in capital 638,667  637,389  636,051  634,785  636,793 
Legal surplus 150,967  146,774  142,567  138,333  133,901 
Retained earnings  639,324  607,466  577,042  547,641  516,371 
Treasury stock, at cost (228,350) (228,374) (226,230) (212,794) (211,135)
Accumulated other comprehensive income (loss), net
 (67,013) (127,677) (89,564) (78,340) (93,409)
Total stockholders' equity 1,193,480  1,095,463  1,099,751  1,089,510  1,042,406 
Total liabilities and stockholders' equity $ 11,344,453  $ 10,257,138  $ 10,031,547  $ 10,057,581  $ 9,818,780 

(a) During 4Q 2023, the Company received a Puerto Rico government deposit amounting to $1.2 billion; and purchased $300 million short-term US treasury bills, $250 million long-term government insured mortgage-backed securities, and repaid at maturity $150 million repurchase agreements.
6

OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
Non-PCD:
Mortgage, excluding GNMA buy-back option program $ 609,846  $ 630,187  $ 623,138  $ 634,799  $ 643,203 
Mortgage GNMA buy-back option program (22) 19,401  18,227  18,417  26,348  32,590 
Commercial, excluding Commercial US 2,186,228  1,985,535  1,952,178  1,808,379  1,828,644 
Commercial US 755,228  707,593  669,332  617,574  642,133 
Consumer 619,894  612,623  593,122  564,365  536,619 
Auto 2,272,530  2,208,993  2,124,076  2,034,676  1,958,257 
6,463,127  6,163,158  5,980,263  5,686,141  5,641,446 
Less:  Allowance for credit losses (152,610) (148,210) (150,167) (141,385) (141,841)
Total non-PCD loans held for investment, net 6,310,517  6,014,948  5,830,096  5,544,756  5,499,605 
PCD:
Mortgage 933,362  955,596  980,833  1,007,751  1,028,428 
Commercial 135,447  139,857  152,888  155,614  159,152 
Consumer 552  572  568  607  638 
Auto 1,891  2,552  3,319  4,367  5,658 
1,071,252  1,098,577  1,137,608  1,168,339  1,193,876 
Less:  Allowance for credit losses (8,496) (9,319) (9,756) (10,499) (10,832)
Total PCD loans held for investment, net 1,062,756  1,089,258  1,127,852  1,157,840  1,183,044 
Total loans held for investment 7,373,273  7,104,206  6,957,948  6,702,596  6,682,649 
Mortgage loans held for sale —  564  11,397  13,616  19,499 
Other loans held for sale 28,345  25,282  18,899  19,069  21,088 
Total loans, net $ 7,401,618  $ 7,130,052  $ 6,988,244  $ 6,735,281  $ 6,723,236 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program $ 1,543,208  $ 1,585,783  $ 1,603,971  $ 1,642,550  $ 1,671,631 
Mortgage GNMA buy-back option program (22) 19,401  18,227  18,417  26,348  32,590 
Commercial, excluding Commercial US 2,321,675  2,125,392  2,105,066  1,963,993  1,987,796 
Commercial US 755,228  707,593  669,332  617,574  642,133 
Consumer 620,446  613,195  593,690  564,972  537,257 
Auto 2,274,421  2,211,545  2,127,395  2,039,043  1,963,915 
7,534,379  7,261,735  7,117,871  6,854,480  6,835,322 
Less:  Allowance for credit losses (161,106) (157,529) (159,923) (151,884) (152,673)
Total loans held for investment, net 7,373,273  7,104,206  6,957,948  6,702,596  6,682,649 
Mortgage loans held for sale —  564  11,397  13,616  19,499 
Other loans held for sale 28,345  25,282  18,899  19,069  21,088 
Total loans, net $ 7,401,618  $ 7,130,052  $ 6,988,244  $ 6,735,281  $ 6,723,236 
7

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
    Quarter Ended Year Ended
(Dollars in thousands) (unaudited)
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Loan production (13)
Mortgage   $ 33,332  $ 33,346  $ 35,932  $ 30,344  $ 35,242  $ 132,954  $ 200,905 
Commercial   285,517  150,105  210,746  98,300  209,078  744,668  651,834 
Commercial US   57,442  70,311  111,817  124,074  83,162  363,644  338,488 
Consumer   63,785  76,465  87,062  86,284  67,515  313,596  334,239 
Auto   223,780  237,290  236,283  222,325  221,369  919,678  812,598 
Total   $ 663,856  $ 567,517  $ 681,840  $ 561,327  $ 616,366  $ 2,474,540  $ 2,338,064 
8

OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2023 Q4
2023 Q3
2023 Q2
2023 Q1
2022 Q4
(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 $ 517,025  $ 6,906  5.30  % $ 680,864  $ 9,025  5.26  % $ 693,373  $ 9,029  5.22  % $ 552,635  $ 6,445  4.73  % $ 551,555  $ 5,115  3.68  %
Investment securities 2,194,952  20,517  3.74  % 1,830,060  14,544  3.18  % 1,796,517  13,441  2.99  % 1,939,990  14,229  2.93  % 2,103,694  15,612  2.97  %
Loans held for investment
Non-PCD loans 6,320,321  131,167  8.23  % 6,065,822  124,847  8.17  % 5,840,860  116,699  8.01  % 5,670,966  109,330  7.82  % 5,542,986  105,238  7.53  %
PCD loans 1,096,763  17,609  6.42  % 1,125,421  17,292  6.15  % 1,162,111  18,819  6.48  % 1,195,620  18,981  6.35  % 1,227,355  19,762  6.44  %
Total loans 7,417,084  148,776  7.96  % 7,191,243  142,139  7.84  % 7,002,971  135,518  7.76  % 6,866,586  128,311  7.58  % 6,770,341  125,000  7.32  %
Total interest-earning assets $ 10,129,061  $ 176,199  6.90  % $ 9,702,167  $ 165,708  6.78  % $ 9,492,861  $ 157,988  6.68  % $ 9,359,211  $ 148,985  6.46  % $ 9,425,590  $ 145,727  6.13  %
Interest bearing liabilities:                    
Deposits                    
NOW accounts $ 2,559,135  $ 9,551  1.48  % $ 2,445,955  $ 6,974  1.13  % $ 2,455,040  $ 4,973  0.81  % $ 2,497,917  $ 4,212  0.68  % $ 2,624,602  $ 4,050  0.61  %
Savings accounts 2,141,230  4,986  0.92  % 2,260,678  5,478  0.96  % 2,222,710  4,129  0.75  % 2,232,903  3,135  0.57  % 2,291,884  2,250  0.39  %
Time deposits 1,439,833  8,895  2.45  % 1,333,132  7,014  2.09  % 1,277,861  5,493  1.72  % 1,209,432  3,821  1.28  % 1,131,791  2,373  0.83  %
Brokered deposits 142,718  1,980  5.50  % 2,400  32  5.30  % —  —  —  % 10,229  8  0.30  % 11,366  9  0.30  %
  6,282,916  25,412  1.60  % 6,042,165  19,498  1.28  % 5,955,611  14,595  0.98  % 5,950,481  11,176  0.76  % 6,059,643  8,682  0.57  %
Non-interest bearing deposit accounts 2,551,318  —  —  2,581,887  —  —  2,575,972  —  —  2,654,140  —  —  2,710,803  —  — 
Fair value premium and core deposit intangible amortization —  1,321  —  —  1,321  —  —  1,321  —  —  1,321  —  —  1,585  — 
Total deposits 8,834,234  26,733  1.20  % 8,624,052  20,819  0.96  % 8,531,583  15,916  0.75  % 8,604,621  12,497  0.59  % 8,770,446  10,267  0.46  %
Borrowings
Securities sold under agreements to repurchase 183,858  2,578  5.56  % 52,365  728  5.52  % —  —  —  % —  —  —  % —  —  —  %
Advances from FHLB and other borrowings 275,457  3,346  4.82  % 211,616  2,374  4.45  % 226,256  2,428  4.30  % 64,168  591  3.74  % 26,820  178  2.64  %
Total borrowings 459,315  5,924  5.12  % 263,981  3,102  4.66  % 226,256  2,428  4.30  % 64,168  591  3.74  % 26,820  178  2.64  %
Total interest-bearing liabilities $ 9,293,549  $ 32,657  1.39  % $ 8,888,033  $ 23,921  1.07  % $ 8,757,839  $ 18,344  0.84  % $ 8,668,789  $ 13,088  0.61  % $ 8,797,266  $ 10,445  0.47  %
Interest rate spread   $ 143,542  5.51  %   $ 141,787  5.71  %   $ 139,644  5.84  %   $ 135,897  5.85  %   $ 135,282  5.66  %
Net interest margin     5.62  %     5.80  %     5.90  %     5.89  %     5.69  %
Core deposits: (Non-GAAP)                              
NOW accounts $ 2,559,135  $ 9,551  1.48  % $ 2,445,955  $ 6,974  1.13  % $ 2,455,040  $ 4,973  0.81  % $ 2,497,917  $ 4,212  0.68  % $ 2,624,602  $ 4,050  0.61  %
Savings accounts 2,141,230  4,986  0.92  % 2,260,678  5,478  0.96  % 2,222,710  4,129  0.75  % 2,232,903  3,135  0.57  % 2,291,884  2,250  0.39  %
Time deposits 1,439,833  8,895  2.45  % 1,333,132  7,014  2.09  % 1,277,861  5,493  1.72  % 1,209,432  3,821  1.28  % 1,131,791  2,373  0.83  %
  6,140,198  23,432  1.51  % 6,039,765  19,466  1.28  % 5,955,611  14,595  0.98  % 5,940,252  11,168  0.76  % 6,048,277  8,673  0.57  %
Non-interest bearing deposit accounts 2,551,318  —  —  2,581,887  —  —  2,575,972  —  —  2,654,140  —  —  2,710,803  —  — 
Total core deposits $ 8,691,516  $ 23,432  1.07  % $ 8,621,652  $ 19,466  0.90  % $ 8,531,583  $ 14,595  0.69  % $ 8,594,392  $ 11,168  0.53  % $ 8,759,080  $ 8,673  0.39  %
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings
 $ 459,315  $ 5,924  5.12  % $ 263,981  $ 3,102  4.66  % $ 226,256  $ 2,428  4.30  % $ 64,168  $ 591  3.74  % $ 26,820  $ 178  2.64  %
Brokered deposits
 142,718  1,980  5.50  % 2,400  32  5.30  % —  —  —  % 10,229  8  0.30  % 11,366  9  0.30  %
Total borrowings and brokered deposits
 $ 602,033  $ 7,904  5.21  % $ 266,381  266,381  $ 3,134  3,134  4.67  % $ 226,256  226,256  $ 2,428  2,428  4.30  % $ 74,397  74,397  $ 599  599  3.27  % $ 38,186  38,186  $ 187  187  1.94  %
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 $ 626,067  $ 31,406  5.02  % $ 1,291,633  $ 14,689  1.14  %
Investment securities 1,940,776  62,730  3.23  % 1,594,662  40,722  2.55  %
Loans held for investment
Non-PCD loans 5,976,521  482,043  8.07  % 5,351,639  381,334  7.13  %
PCD loans 1,144,655  72,701  6.35  % 1,306,121  78,828  6.04  %
Total loans 7,121,176  554,744  7.79  % 6,657,760  460,162  6.91  %
Total interest-earning assets $ 9,688,019  $ 648,880  6.70  % $ 9,544,055  $ 515,573  5.40  %
Interest bearing liabilities:
Deposits
NOW accounts $ 2,489,560  $ 25,710  1.03  % $ 2,761,653  $ 11,291  0.41  %
Savings accounts 2,214,256  17,727  0.80  % 2,306,607  6,470  0.28  %
Time deposits 1,315,745  25,225  1.92  % 1,143,469  7,943  0.69  %
Brokered deposits 39,100  2,020  5.16  % 11,366  35  0.30  %
6,058,661  70,682  1.17  % 6,223,095  25,739  0.41  %
Non-interest bearing deposit accounts 2,590,523  —  —  % 2,647,871  —  —  %
Fair value premium and core deposit intangible amortization —  5,283  —  —  6,500  — 
Total deposits 8,649,184  75,965  0.88  % 8,870,966  32,239  0.36  %
Borrowings
Securities sold under agreements to repurchase 59,541  3,305  5.55  % —  —  —  %
Advances from FHLB and other borrowings 195,000  8,740  4.48  % 27,497  733  2.67  %
Total borrowings 254,541  12,045  4.73  % 31,461  1,254  3.99  %
Total interest-bearing liabilities $ 8,903,725  $ 88,010  0.99  % $ 8,902,427  $ 33,493  0.38  %
Interest rate spread $ 560,870  5.71  % $ 482,080  5.02  %
Net interest margin   5.79  % 5.05  %
Core deposits: (Non-GAAP)
NOW accounts $ 2,489,560  $ 25,710  1.03  % $ 2,761,653  $ 11,291  0.41  %
Savings accounts 2,214,256  17,727  0.80  % 2,306,607  6,470  0.28  %
Time deposits 1,315,745  25,225  1.92  % 1,143,469  7,943  0.69  %
6,019,561  68,662  1.14  % 6,211,729  25,704  0.41  %
Non-interest bearing deposit accounts 2,590,523  —  —  % 2,647,871  —  —  %
Total core deposits $ 8,610,084  $ 68,662  0.80  % $ 8,859,600  $ 25,704  0.29  %
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings
 $ 254,541  $ 12,045  4.73  % $ 31,461  $ 1,254  3.99  %
Brokered deposits
 39,100  2,020  5.16  % 11,366  35  0.30  %
Total borrowings and brokered deposits
 $ 293,641  293,641  $ 14,065  4.79  % $ 42,827  42,827  $ 1,289  1,289  3.01  %
10

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
2023 2023 2023 2023 2022
(Dollars in thousands) (unaudited) Q4 Q3 Q2 Q1 Q4
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs $ 150  $ 218  $ 191  $ 200  $ 8 
Recoveries (483) (185) (333) (216) (625)
Total mortgage (333) 33  (142) (16) (617)
Commercial:
Charge-offs 1,066  8,254  3,496  1,375  3,444 
Recoveries (137) (174) (237) (326) (338)
Total commercial 929  8,080  3,259  1,049  3,106 
Consumer:          
Charge-offs 6,799  5,894  5,518  5,444  5,069 
Recoveries (650) (655) (2,003) (867) (1,055)
Total consumer 6,149  5,239  3,515  4,577  4,014 
Auto:          
Charge-offs 14,658  10,458  9,170  9,478  10,380 
Recoveries (4,982) (5,193) (8,332) (6,600) (5,001)
Total auto 9,676  5,265  838  2,878  5,379 
Total $ 16,421  $ 18,617  $ 7,470  $ 8,488  $ 11,882 
PCD
Mortgage:
Charge-offs $ 94  $ 148  $ 1  $ 74  $ 108 
Recoveries (111) (80) (260) (247) (603)
Total mortgage (17) 68  (259) (173) (495)
Commercial:          
Charge-offs —  690  —  2,104  12 
Recoveries (315) (494) (319) (490) (264)
Total commercial (315) 196  (319) 1,614  (252)
Consumer:          
Charge-offs 244  39  123  215  120 
Recoveries (19) (23) (43) (11) (11)
Total consumer 225  16  80  204  109 
Auto:          
Charge-offs 12  37  35  86  65 
Recoveries (44) (98) (401) (99) (104)
Total auto (32) (61) (366) (13) (39)
Total $ (139) $ 219  $ (864) $ 1,632  $ (677)
Total Net Charge-offs $ 16,282  $ 18,836  $ 6,606  $ 10,120  $ 11,205 
Net Charge-off Rates          
Mortgage -0.09  % 0.03  % -0.10  % -0.05  % -0.26  %
Commercial 0.08  % 1.18  % 0.44  % 0.41  % 0.44  %
Consumer 3.95  % 3.33  % 2.37  % 3.30  % 2.95  %
Auto 1.72  % 0.96  % 0.09  % 0.57  % 1.11  %
Total 0.88  % 1.05  % 0.38  % 0.59  % 0.66  %
Average Loans Held For Investment          
Mortgage $ 1,562,135  $ 1,576,637  $ 1,616,873  $ 1,653,423  $ 1,699,923 
Commercial 2,966,982  2,812,274  2,697,986  2,627,610  2,586,536 
Consumer 644,834  630,492  606,842  579,467  558,809 
Auto 2,243,133  2,171,840  2,081,270  2,006,086  1,925,073 
Total $ 7,417,084  $ 7,191,243  $ 7,002,971  $ 6,866,586  $ 6,770,341 






11

OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
2023 2023 2023 2023 2022
(Dollars in thousands) (unaudited) Q4 Q3 Q2 Q1 Q4
Early Delinquency (30 - 89 days past due)          
Mortgage $ 15,703  $ 14,380  $ 13,976  $ 11,417  $ 15,115 
Commercial 3,653  5,666  11,668  3,898  2,750 
Consumer 11,366  10,160  8,188  8,478  8,895 
Auto 147,681  139,278  117,237  96,294  112,191 
Total  $ 178,403  $ 169,484  $ 151,069  $ 120,087  $ 138,951 
Early Delinquency Rates (30 - 89 days past due)          
Mortgage 2.50  % 2.22  % 2.18  % 1.73  % 2.24  %
Commercial 0.12  % 0.21  % 0.45  % 0.16  % 0.11  %
Consumer 1.83  % 1.66  % 1.38  % 1.50  % 1.66  %
Auto 6.50  % 6.31  % 5.52  % 4.73  % 5.73  %
Total 2.76  % 2.75  % 2.53  % 2.11  % 2.46  %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation $ 27,859  $ 30,661  $ 31,189  $ 32,084  $ 39,239 
GNMA's buy-back option program (22) 19,401  18,227  18,418  26,348  32,590 
Total mortgage 47,260  48,888  49,607  58,432  71,829 
Commercial 14,298  15,109  28,643  12,881  12,122 
Consumer 14,742  13,422  11,026  11,402  12,008 
Auto 166,737  155,579  130,367  110,749  131,804 
Total $ 243,037  $ 232,998  $ 219,643  $ 193,464  $ 227,763 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation 4.43  % 4.73  % 4.86  % 4.85  % 5.81  %
GNMA's buy-back option program (22) 3.08  % 2.81  % 2.87  % 3.99  % 4.82  %
Total mortgage 7.51  % 7.54  % 7.73  % 8.84  % 10.63  %
Commercial 0.49  % 0.56  % 1.09  % 0.53  % 0.49  %
Consumer 2.38  % 2.19  % 1.86  % 2.02  % 2.24  %
Auto 7.34  % 7.04  % 6.14  % 5.44  % 6.73  %
Total 3.76  % 3.78  % 3.67  % 3.40  % 4.04  %
Nonperforming Assets (14)
Mortgage $ 20,007  $ 25,354  $ 27,600  $ 30,641  $ 33,512 
Commercial 36,096  36,649  43,188  27,025  34,432 
Consumer 3,376  3,359  2,907  2,979  3,128 
Auto 19,056  16,301  13,130  14,455  19,613 
Total nonperforming loans 78,535  81,663  86,825  75,100  90,685 
Foreclosed real estate 10,780  9,555  10,639  9,250  11,214 
Other repossessed assets 4,032  4,432  4,004  4,563  4,617 
Total nonperforming assets $ 93,347  $ 95,650  $ 101,468  $ 88,913  $ 106,516 
Nonperforming Loan Rates          
Mortgage 3.18  % 3.91  % 4.30  % 4.63  % 4.96  %
Commercial 1.23  % 1.36  % 1.65  % 1.11  % 1.40  %
Consumer 0.54  % 0.55  % 0.49  % 0.53  % 0.58  %
Auto 0.84  % 0.74  % 0.62  % 0.71  % 1.00  %
Total loans 1.22  % 1.33  % 1.45  % 1.32  % 1.61  %

12

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
  2023 2023 2023 2023 2022
(Dollars in thousands) (unaudited)   Q4 Q3 Q2 Q1 Q4
Nonperforming PCD Loans (14)
Mortgage   $ 250  $ 253  $ 256  $ 258  $ 259 
Commercial   6,424  6,688  8,104  8,446  8,927 
Consumer   —  7  —  —  — 
Total nonperforming loans   $ 6,674  $ 6,948  $ 8,360  $ 8,704  $ 9,186 
Nonperforming PCD Loan Rates            
Mortgage   0.03  % 0.03  % 0.03  % 0.03  % 0.03  %
Commercial   4.74  % 4.78  % 5.30  % 5.43  % 5.61  %
Consumer   0.00  % 1.22  % 0.00  % 0.00  % 0.00  %
Total   0.62  % 0.63  % 0.73  % 0.74  % 0.77  %
Total PCD Loans Held for Investment          
Mortgage   $ 933,362  $ 955,596  $ 980,833  $ 1,007,751  $ 1,028,428 
Commercial   135,447  139,857  152,888  155,614  159,152 
Consumer   552  572  568  607  638 
Auto 1,891  2,552  3,319  4,367  5,658 
Total loans   $ 1,071,252  $ 1,098,577  $ 1,137,608  $ 1,168,339  $ 1,193,876 
  2023 2023 2023 2023 2022
(Dollars in thousands) (unaudited)   Q4 Q3 Q2 Q1 Q4
Total Nonperforming Loans (14)          
Mortgage   $ 20,257  $ 25,607  $ 27,856  $ 30,899  $ 33,771 
Commercial   42,520  43,337  51,292  35,471  43,359 
Consumer   3,376  3,366  2,907  2,979  3,128 
Auto   19,056  16,301  13,130  14,455  19,613 
Total nonperforming loans   $ 85,209  $ 88,611  $ 95,185  $ 83,804  $ 99,871 
Total Nonperforming Loan Rates  
Mortgage   1.30  % 1.60  % 1.72  % 1.85  % 1.98  %
Commercial   1.38  % 1.53  % 1.85  % 1.37  % 1.65  %
Consumer   0.54  % 0.55  % 0.49  % 0.53  % 0.58  %
Auto   0.84  % 0.74  % 0.62  % 0.71  % 1.00  %
Total   1.13  % 1.22  % 1.34  % 1.22  % 1.46  %
Total Loans Held for Investment          
Mortgage   $ 1,562,609  $ 1,604,010  $ 1,622,388  $ 1,668,898  $ 1,704,221 
Commercial   3,076,903  2,832,985  2,774,398  2,581,567  2,629,929 
Consumer   620,446  613,195  593,690  564,972  537,257 
Auto   2,274,421  2,211,545  2,127,395  2,039,043  1,963,915 
Total loans   $ 7,534,379  $ 7,261,735  $ 7,117,871  $ 6,854,480  $ 6,835,322 


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OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended December 31, 2023
(Dollars in thousands) (unaudited) Mortgage Commercial Consumer Auto Total
Allowance for credit losses Non-PCD:          
Balance at beginning of period $ 8,364  $ 41,627  $ 26,453  $ 71,766  $ 148,210 
Provision for (recapture of) credit losses (699) 3,343  6,782  11,395  20,821 
Charge-offs (150) (1,066) (6,799) (14,658) (22,673)
Recoveries 483  137  650  4,982  6,252 
Balance at end of period $ 7,998  $ 44,041  $ 27,086  $ 73,485  $ 152,610 
Allowance for credit losses PCD:
Balance at beginning of period $ 8,003  $ 1,272  $ 7  $ 37  $ 9,319 
(Recapture of) provision for credit losses (669) (474) 225  (44) (962)
Charge-offs (94) —  (244) (12) (350)
Recoveries 111  315  19  44  489 
Balance at end of period $ 7,351  $ 1,113  $ 7  $ 25  $ 8,496 
Allowance for credit losses summary:
Balance at beginning of period $ 16,367  $ 42,899  $ 26,460  $ 71,803  $ 157,529 
Provision for (recapture of) credit losses (1,368) 2,869  7,007  11,351  19,859 
Charge-offs (244) (1,066) (7,043) (14,670) (23,023)
Recoveries 594  452  669  5,026  6,741 
Balance at end of period $ 15,349  $ 45,154  $ 27,093  $ 73,510  $ 161,106 
Allowance coverage ratio 0.98  % 1.47  % 4.37  % 3.23  % 2.14  %


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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 2023 2022
(Dollars in thousands) (unaudited) Q4 Q3 Q2 Q1 Q4
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity $ 1,193,480  $ 1,095,463  $ 1,099,751  $ 1,089,510  $ 1,042,406 
Less:  Intangible assets (104,935) (106,660) (108,384) (110,109) (111,834)
Tangible common equity $ 1,088,545  $ 988,803 $ 991,367 $ 979,401 $ 930,572
         
Common shares outstanding at end of period 47,065  47,058  47,076  47,611  47,581 
Tangible book value per common share (Non-GAAP) $ 23.13  $ 21.01  $ 21.06  $ 20.57  $ 19.56 
Total Assets to Tangible Assets          
Total assets   $ 11,344,453  $ 10,257,138  $ 10,031,547  $ 10,057,581  $ 9,818,780 
Less:  Intangible assets (104,935) (106,660) (108,384) (110,109) (111,834)
Tangible assets (Non-GAAP) $ 11,239,518  $ 10,150,478  $ 9,923,163  $ 9,947,472  $ 9,706,946 
Non-GAAP TCE Ratio          
Tangible common equity $ 1,088,545  $ 988,803 $ 991,367 $ 979,401 $ 930,572
Tangible assets 11,239,518  10,150,478  9,923,163  9,947,472  9,706,946 
TCE ratio 9.68  % 9.74  % 9.99  % 9.85  % 9.59  %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity $ 1,128,747  $ 1,127,602  $ 1,108,880  $ 1,077,703  $ 1,025,132 
Less:  Average intangible assets (105,560) (107,291) (109,130) (110,888) (114,412)
Average tangible common equity $ 1,023,187  $ 1,020,311 $ 999,750 $ 966,815 $ 910,720



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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 2023 2022
(Dollars in thousands) (unaudited) Q4 Q3   Q2 Q1 Q4
Regulatory Capital Metrics            
Common equity Tier 1 capital $ 1,174,205 $ 1,124,599 $ 1,086,587 $ 1,063,919 $ 1,037,385
Tier 1 capital 1,174,205 1,124,599 1,086,587 1,063,919 1,037,385
Total risk-based capital (15) 1,278,537 1,224,963 1,183,793 1,158,744 1,132,658
Risk-weighted assets 8,317,802 8,000,711 7,742,933 7,559,166 7,605,466
Regulatory Capital Ratios
Common equity Tier 1 capital ratio (16) 14.12  % 14.06  % 14.03  % 14.07  % 13.64  %
Tier 1 risk-based capital ratio (17) 14.12  % 14.06  % 14.03  % 14.07  % 13.64  %
Total risk-based capital ratio (18) 15.37  % 15.31  % 15.29  % 15.33  % 14.89  %
Leverage ratio (19) 11.03  % 11.03  % 10.85  % 10.75  % 10.36  %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity $ 1,193,480 $ 1,095,463  $ 1,099,751  $ 1,089,510  $ 1,042,406 
Plus: CECL transition adjustment (20) 13,704 13,704 13,704 13,704 20,557
Less: Unrealized losses on available-for-sale securities, net of income tax 67,013 127,677 89,639 78,512 93,663
  Unrealized (gains) losses on cash flow hedges, net of income tax — — (75) (172) (254)
Total adjusted stockholders’equity 1,274,197 1,236,844 1,203,019 1,181,554 1,156,372
Less: Disallowed goodwill (84,241) (84,241) (84,241) (84,241) (84,241)
  Disallowed other intangible assets, net (15,751) (16,883) (18,015) (19,147) (20,279)
  Disallowed deferred tax assets, net — (11,121) (14,176) (14,247) (14,467)
Common equity Tier 1 capital and Tier 1 capital 1,174,205 1,124,599 1,086,587 1,063,919 1,037,385
Plus Tier 2 capital:  Qualifying allowance for credit losses 104,332 100,364 97,206 94,825 95,273
Total risk-based capital $ 1,278,537 $ 1,224,963  $ 1,183,793  $ 1,158,744  $ 1,132,658 



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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 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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