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0001030469FALSE00010304692024-07-182024-07-18

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): July 18, 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 July 18, 2024, OFG Bancorp (the “Company”) announced the results for the quarter ended June 30, 2024. 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: July 18, 2024
 By: /s/ Maritza Arizmendi
Maritza Arizmendi
Chief Financial Officer

EX-99 2 ofg-20242qxexx99.htm EX-99 Document


Exhibit 99
ofgbancorplogo.jpg
OFG Bancorp Reports 2Q24 Results
SAN JUAN, Puerto Rico, July 18, 2024 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the second quarter ended June 30, 2024. EPS diluted of $1.08 compared to $1.05 in 1Q24 and $0.93 in 2Q23. Total core revenues of $179.4 million compared to $174.2 million in 1Q24 and $170.5 million in 2Q23.
CEO Comment
José Rafael Fernández, Chief Executive Officer, said: “The second quarter continued to demonstrate the strength of our strategies and franchise. EPS-diluted increased 16.1% year-over-year on a 5.2% increase in total core revenues. We generated strong performance metrics through consistent growth; increased loans, deposits, and non-interest income; and stable credit quality. Our ‘Digital First’ strategy continues to help us expand our retail and business relationships through new and upgraded products, services, and self-service tools. In addition, we implemented close to half of our $50 million share buyback program, purchasing $24.3 million of OFG shares in the open market. At the same time, Puerto Rico’s economy continued to grow and steadily decouple from mainland economic uncertainties. Thanks to our team members for their commitment to making progress possible for our customers, employees, shareholders, and the communities we serve.”
2Q24 Highlights
Performance Metrics: Net interest margin of 5.51%, return on average assets of 1.82%, return on average tangible common stockholders’ equity of 18.24%, and efficiency ratio of 51.81%.
Total Interest Income of $187.7 million compared to $183.4 million in 1Q24 and $158.0 million in 2Q23. Compared to 1Q24, 2Q24 primarily reflected higher average balances and yields on loans. 2Q24 included $2.1 million from the recovery of a non-accrual U.S. commercial loan paid in full.
Total Interest Expense of $40.3 million compared to $39.3 million in 1Q24 and $18.3 million in 2Q23. Compared to 1Q24, 2Q24 reflected higher average core deposits and a 7 basis point increase in rates, partially offset by lower average wholesale funding and rate.
Total Banking & Financial Service Revenues of $32.1 million compared to $30.1 million in 1Q24 and $30.9 million in 2Q23. Compared to 1Q24, 2Q24 reflected higher banking service, wealth management and mortgage banking revenues. Banking service revenues included $0.6 million prepayment fees on U.S. loans, while wealth management included $0.5 million in annual recognition of certain commercial insurance commissions.
Pre-Provision Net Revenues of $86.8 million compared to $83.0 million in 1Q24 and $80.8 million in 2Q23.
Total Provision for Credit Losses of $15.6 million compared to $15.1 million in 1Q24 and $15.0 million in 2Q23. 2Q24 provision primarily reflected increased loan volume.


Credit Quality: Net charge-offs of $15.0 million compared to $19.8 million in 1Q24 and $6.6 million in 2Q23. 2Q24 early and total delinquency rates were 2.81% and 3.71%, respectively. The nonperforming loan rate of 1.08% was the lowest over the last five quarters.
Total Non-Interest Expense of $93.0 million compared to $91.4 million in 1Q24 and $88.9 million in 2Q23. Compared to 1Q24, 2Q24 included increases of $1.3 million in electronic banking expenses, $1.1 million in professional services fees, and $0.4 million for increased FDIC insurance now that Oriental exceeds $10 billion in assets. This was partially offset by reductions of $1.4 million in foreclosed real estate costs and in FICA payroll related expenses relative to the prior quarter.
Effective Tax Rate of 28.2% compared to 26.8% in 1Q24 and 32.9% in 2Q23. 2Q24 reflected an expected 2024 ETR of 29.0% due to higher forecasted business activities with preferential tax treatment under the Puerto Rico tax code, coupled with a $0.8 million tax benefit credit in 2Q24 compared to $1.1 million discrete benefit for stock vested in 1Q24.
Loans Held for Investment (EOP) of $7.64 billion compared to $7.54 billion in 1Q24 and $7.12 billion in 2Q23. Compared to 1Q24, 2Q24 increased 1.3%, reflecting growth in Puerto Rico commercial, auto and consumer loans, partially offset by regular paydowns of residential mortgages and prepayment of U.S. commercial loans. Compared to 2Q23, 2Q24 loans increased 7.3%.
New Loan Production of $589.0 million compared to $536.6 million in 1Q24 and $681.8 million in 2Q23. Compared to 1Q24, 2Q24 loan production, led by auto, reflected increases in all categories.
Total Investments (EOP) of $2.48 billion compared to $2.48 billion in 1Q24 and $1.70 billion in 2Q23.
Customer Deposits (EOP) of $9.60 billion compared to $9.55 billion in 1Q24 and $8.54 billion in 2Q23. Compared to 1Q24, 2Q24 reflected an increase in commercial deposits partially offset by a decline in retail deposits.
Total Borrowings & Brokered Deposits (EOP) of $201.2 million compared to $203.3 million in 1Q24 and $226.5 million in 2Q23.
Cash & Cash Equivalents (EOP) of $740.4 million compared to $754.4 million in 1Q24 and $799.0 million in 2Q23.
Capital: CET1 ratio was 14.29% compared to 14.45% in 1Q24 and 14.03% in 2Q23. The Tangible Common Equity ratio was 10.09% compared to 10.06% in 1Q24 and 9.99% in 2Q23. Tangible Book Value of $24.18 per share compared to $23.55 in 1Q24 and $21.06 in 2Q23.
Conference Call, Financial Supplement & Presentation
A conference call to discuss 2Q24 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 245-3047 or (203) 518-9708. Conference ID: OFGQ224. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter.
OFG’s Financial Supplement, with full financial tables for the quarter ended June 30, 2024, and the 2Q24 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.





Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.
Forward Looking Statements
The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements.
Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, pandemics, and other natural disasters; and (iv) competition in the financial services industry.
For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
About OFG Bancorp
Now in its 60th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Our mission is to make progress possible for our customers, employees, shareholders, and the communities we serve. Visit us at www.ofgbancorp.com. 
# # #
Contacts
Puerto Rico & USVI: Idalis Montalvo (idalis.montalvo@orientalbank.com) at (787) 777-2847
US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder (sanreder@ofgbancorp.com) at (212) 532-3232 The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our June 30, 2024 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.



OFG Bancorp
Financial Supplement


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

2024
2024
2023
2023
2023
(Dollars in thousands, except per share data) (unaudited)
Q2
Q1
Q4
Q3
Q2
Statement of Operations
Net interest income   $ 147,325 $ 144,102 $ 143,542 $ 141,787 $ 139,644
Non-interest income, net (core) (1) 32,085 30,059 32,061 30,404 30,859
Total core revenues (2) 179,410 174,161 175,603 172,191 170,503
Non-interest expense   92,960 91,412 94,099 90,158 88,888
Pre-provision net revenues (21) 86,841 83,038 88,151 82,328 80,829
Total provision for credit losses   15,581 15,121 19,719 16,430 15,044
Net income before income taxes   71,260 67,917 68,432 65,898 65,785
Income tax expense   20,129 18,225 21,835 21,025 21,612
Net income available to common stockholders   51,131 49,692 46,597 44,873 44,173
Common Share Statistics            
Earnings per common share - basic (3) $ 1.09 $ 1.06 $ 0.99 $ 0.95 $ 0.93
Earnings per common share - diluted (4) $ 1.08 $ 1.05 $ 0.98 $ 0.95 $ 0.93
Average common shares outstanding   46,952 47,096 47,061 47,114 47,266
Average common shares outstanding and equivalents   47,131 47,343 47,386 47,392 47,490
Cash dividends per common share   $ 0.25 $ 0.25 $ 0.22 $ 0.22 $ 0.22
Book value per common share (period end)   $ 26.37 $ 25.75 $ 25.36 $ 23.28 $ 23.36
Tangible book value per common share (period end) (5) $ 24.18 $ 23.55 $ 23.13 $ 21.01 $ 21.06
Balance Sheet (Average Balances)            
Loans (6) $ 7,612,407 $ 7,541,757 $ 7,417,084 $ 7,191,243 $ 7,002,971
Interest-earning assets   10,758,623 10,739,590 10,129,061 9,702,167 9,492,861
Total assets   11,233,202 11,199,867 10,588,584 10,180,931 10,020,940
Core deposits   9,599,842 9,532,790 8,691,516 8,621,652 8,531,583
Total deposits   9,601,408 9,591,527 8,834,234 8,624,052 8,531,583
Interest-bearing deposits   7,023,192 7,055,207 6,282,916 6,042,165 5,955,611
Borrowings   219,903 220,773 459,315 263,981 226,256
Stockholders' equity   1,223,669 1,213,469 1,128,747 1,127,602 1,108,880
Performance Metrics            
Net interest margin (7) 5.51  % 5.40  % 5.62  % 5.80  % 5.90  %
Return on average assets (8) 1.82  % 1.77  % 1.76  % 1.76  % 1.76  %
Return on average tangible common stockholders' equity (9) 18.24  % 17.92  % 18.22  % 17.59  % 17.67  %
Efficiency ratio (10) 51.81  % 52.49  % 53.59  % 52.36  % 52.13  %
Full-time equivalent employees, period end   2,239  2,230  2,248  2,264  2,265 
Credit Quality Metrics          
Allowance for credit losses $ 157,301 $ 156,563 $ 161,106 $ 157,529 $ 159,923
Allowance as a % of loans held for investment 2.06  % 2.08  % 2.14  % 2.17  % 2.25  %
Net charge-offs $ 15,013 $ 19,812 $ 16,282 $ 18,836 $ 6,606
Net charge-off rate (11) 0.79  % 1.05  % 0.88  % 1.05  % 0.38  %
Early delinquency rate (30 - 89 days past due) 2.81  % 2.41  % 2.76  % 2.75  % 2.53  %
Total delinquency rate (30 days and over) 3.71  % 3.30  % 3.76  % 3.78  % 3.67  %
Capital Ratios (period end) (Non-GAAP) (12)(20)
Leverage ratio 10.86  % 10.76  % 11.03  % 11.03  % 10.85  %
Common equity Tier 1 capital ratio 14.29  % 14.45  % 14.12  % 14.06  % 14.03  %
Tier 1 risk-based capital ratio 14.29  % 14.45  % 14.12  % 14.06  % 14.03  %
Total risk-based capital ratio 15.54  % 15.71  % 15.37  % 15.31  % 15.29  %
Tangible common equity ("TCE") ratio 10.09  % 10.06  % 9.68  % 9.74  % 9.99  %


2

OFG Bancorp (NYSE: OFG)
Table 1-2: Financial and Statistical Summary - Consolidated (Continued)
2024
2023
(Dollars in thousands, except per share data) (unaudited) YTD YTD
Statement of Operations
Net interest income $ 291,427  $ 275,541 
Non-interest income, net (core) (1) 62,144  59,390 
Total core revenues (2) 353,571  334,931 
Non-interest expense 184,372  179,108 
Pre-provision net revenues (21) 169,879  155,407 
Total provision for credit losses 30,702  24,489 
Net income before income taxes 139,177  130,918 
Income tax expense 38,354  40,516 
Net income available to common stockholders 100,823  90,402 
Common Share Statistics
Earnings per common share - basic (3) $ 2.14  $ 1.91 
Earnings per common share - diluted (4) $ 2.13  $ 1.89 
Average common shares outstanding 47,024  47,432 
Average common shares outstanding and equivalents 47,244  47,716 
Cash dividends per common share $ 0.50  $ 0.44 
Book value per common share (period end) $ 26.37  $ 23.36 
Tangible book value per common share (period end) (5) $ 24.18  $ 21.06 
Balance Sheet (Average Balances)
Loans (6) $ 7,577,082  $ 6,935,155 
Interest-earning assets 10,749,306  9,426,405 
Total assets 11,215,573  9,961,007 
Core deposits 9,566,316  8,562,231 
Total deposits 9,596,468  8,567,317 
Interest-bearing deposits 7,039,200  5,952,477 
Borrowings 220,338  145,660 
Stockholders' equity 1,218,569  1,093,377 
Performance Metrics
Net interest margin (7) 5.45  % 5.89  %
Return on average assets (8) 1.80  % 1.82  %
Return on average tangible common stockholders' equity (9) 18.08  % 18.39  %
Efficiency ratio (10) 52.15  % 53.48  %
Full-time equivalent employees, period end 2,239  2,265 
Credit Quality Metrics
Allowance for credit losses $ 157,301  $ 159,923 
Allowance as a % of loans held for investment 2.06  % 2.25  %
Net charge-offs $ 34,825  $ 16,725 
Net charge-off rate (11) 0.92  % 0.48  %
Early delinquency rate (30 - 89 days past due) 2.81  % 2.53  %
Total delinquency rate (30 days and over) 3.71  % 3.67  %



3

OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited)   June 30, 2024 March 31, 2024 December 31,
2023		 September 30,
2023		 June 30,
2023
Interest income:  
Loans
Non-PCD loans   $ 137,741  $ 132,972  $ 131,167  $ 124,847  $ 116,699 
PCD loans   16,516  16,622  17,609  17,292  18,819 
Total interest income from loans   154,257  149,594  148,776  142,139  135,518 
Investment securities and cash   33,401  33,832  27,423  23,569  22,470 
Total interest income   187,658  183,426  176,199  165,708  157,988 
Interest expense:
Deposits
Core deposits   37,791  35,989  24,753  20,787  15,916 
Brokered deposits   21  803  1,980  32  — 
Total deposits   37,812  36,792  26,733  20,819  15,916 
Borrowings   2,521  2,532  5,924  3,102  2,428 
Total interest expense   40,333  39,324  32,657  23,921  18,344 
Net interest income   147,325  144,102  143,542  141,787  139,644 
Provision for credit losses, excluding PCD loans 16,913  16,605  20,681  16,648  16,650 
(Recapture of) provision for credit losses on PCD loans (1,332) (1,484) (962) (218) (1,606)
Total provision for credit losses   15,581  15,121  19,719  16,430  15,044 
Net interest income after provision for credit losses   131,744  128,981  123,823  125,357  124,600 
Non-interest income:            
Banking service revenues   18,781  17,259  17,822  17,303  17,440 
Wealth management revenues   8,440  8,107  9,985  7,691  8,194 
Mortgage banking activities   4,864  4,693  4,254  5,410  5,225 
Total banking and financial service revenues   32,085  30,059  32,061  30,404  30,859 
Other income (loss), net   391  289  6,647  295  (786)
Total non-interest income, net   32,476  30,348  38,708  30,699  30,073 
Non-interest expense:
Compensation and employee benefits   38,467  39,816  41,418  38,095  37,841 
Occupancy, equipment and infrastructure costs   14,393  14,322  15,729  14,887  14,362 
General and administrative expenses   40,831  36,606  35,803  37,203  39,005 
Foreclosed real estate and other repossessed assets expenses (income), net   (731) 668  1,149  (27) (2,320)
Total non-interest expense   92,960  91,412  94,099  90,158  88,888 
Income before income taxes   71,260  67,917  68,432  65,898  65,785 
Income tax expense   20,129  18,225  21,835  21,025  21,612 
Net income available to common shareholders   $ 51,131  $ 49,692  $ 46,597  $ 44,873  $ 44,173 
(
4

OFG Bancorp (NYSE: OFG)
Table 2-2: Consolidated Statements of Operations (Continued)
(Dollars in thousands, except per share data) (unaudited)
Six-month period ended
June 30, 2024
June 30, 2023
Interest income:
Loans
Non-PCD loans $ 270,713  $ 226,029 
PCD loans 33,138  37,800 
Total interest income from loans 303,851  263,829 
Investment securities and cash 67,233  43,144 
Total interest income 371,084  306,973 
Interest expense:
Deposits
Core deposits 73,780  28,405 
Brokered deposits 824  8 
Total deposits 74,604  28,413 
Borrowings 5,053  3,019 
Total interest expense 79,657  31,432 
Net interest income 291,427  275,541 
Provision for credit losses, excluding PCD loans 34,698  30,163 
Recapture of credit losses on PCD loans (3,996) (5,674)
Total provision for credit losses 30,702  24,489 
Net interest income after provision for credit losses 260,725  251,052 
Non-interest income:    
Banking service revenues 36,040  34,953 
Wealth management revenues 16,547  15,314 
Mortgage banking activities 9,557  9,123 
Total banking and financial service revenues 62,144  59,390 
Other income, net 680  (416)
Total non-interest income, net 62,824  58,974 
Non-interest expense:
Compensation and employee benefits 78,283  76,314 
Occupancy, equipment and infrastructure costs 28,715  28,619 
General and administrative expenses 77,437  75,702 
Foreclosed real estate and other repossessed assets income, net of expenses (63) (1,527)
Total non-interest expense 184,372  179,108 
Income before income taxes 139,177  130,918 
Income tax expense 38,354  40,516 
Net income available to common shareholders $ 100,823  $ 90,402 
(a)Refer to “(a)” in Table 2-1.
(b)Refer to “(b)” in Table 2-1.
(c)Refer to “(c)” in Table 2-1.
(d)Refer to “(d)” in Table 2-1. During the year ended December 31, 2023, salaries increased by $6.7 million.



5

OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
Cash and cash equivalents $ 740,429  $ 754,392  $ 748,173  $ 532,699  $ 798,973 
Investments:
Trading securities 16  14  13  14  13 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities 1,895,067  1,746,195  1,801,849  1,511,779  1,139,996 
US treasury securities
 200,658  150,915  296,799  739  748 
Other investment securities 581  597  616  635  1,101 
Total investment securities available-for-sale 2,096,306  1,897,707  2,099,264  1,513,153  1,141,845 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities 303,621  309,764  314,710  320,249  326,935 
US treasury securities
 —  199,727  199,314  198,896  198,478 
Other investment securities 35,000  35,000  35,000  —  — 
Total investment securities held-to-maturity 338,621  544,491  549,024  519,145  525,413 
Equity securities 41,074  40,162  38,469  42,162  35,946 
Total investments 2,476,017  2,482,374  2,686,770  2,074,474  1,703,217 
Loans, net 7,503,142  7,411,378  7,401,618  7,130,052  6,988,244 
Other assets:
Prepaid expenses 88,137  61,916  62,858  67,191  67,966 
Deferred tax asset, net 4,094  4,379  4,923  11,121  20,306 
Foreclosed real estate and repossessed properties 12,239  17,694  14,812  13,987  14,643 
Premises and equipment, net 104,384  104,980  104,102  103,040  104,166 
Goodwill 84,241  84,241  84,241  84,241  84,241 
Other intangibles 17,738  19,216  20,694  22,419  24,143 
Right of use assets 20,298  21,606  21,725  20,011  21,840 
Servicing asset 49,789  49,553  49,520  50,601  49,966 
Accounts receivable and other assets 158,577  147,506  145,017  147,302  153,842 
Total assets $ 11,259,085  $ 11,159,235  $ 11,344,453  $ 10,257,138  $ 10,031,547 
Deposits:
Demand deposits $ 6,017,364  $ 6,036,891  $ 6,050,428  $ 4,894,958  $ 5,008,521 
Savings accounts 2,002,342  2,001,770  2,088,102  2,216,162  2,222,326 
Time deposits 1,585,126  1,507,037  1,461,459  1,427,497  1,307,179 
Brokered deposits 418  2,576  162,180  2,936  — 
Total deposits 9,605,250  9,548,274  9,762,169  8,541,553  8,538,026 
Borrowings:          
Securities sold under agreements to repurchase —  —  —  150,701  — 
Advances from FHLB and other borrowings 200,741  200,766  200,770  300,774  226,507 
Total borrowings 200,741  200,766  200,770  451,475  226,507 
Other liabilities:          
Acceptances outstanding 28,504  25,826  25,576  30,984  35,945 
Lease liability 22,605  23,969  24,029  22,269  24,031 
GNMA buy-back option program liability (22) 19,008  18,510  19,401  18,227  18,417 
Deferred tax liability, net
 33,873  22,876  22,444  —  — 
Accrued expenses and other liabilities 121,402  103,361  96,584  97,167  88,870 
Total liabilities 10,031,383  9,943,582  10,150,973  9,161,675  8,931,796 
Stockholders' equity:
Common stock 59,885  59,885  59,885  59,885  59,885 
Additional paid-in capital 637,895  636,208  638,667  637,389  636,051 
Legal surplus 160,560  155,732  150,967  146,774  142,567 
Retained earnings  706,807  672,455  639,324  607,466  577,042 
Treasury stock, at cost (250,951) (226,896) (228,350) (228,374) (226,230)
Accumulated other comprehensive income (loss), net
 (86,494) (81,731) (67,013) (127,677) (89,564)
Total stockholders' equity 1,227,702  1,215,653  1,193,480  1,095,463  1,099,751 
Total liabilities and stockholders' equity $ 11,259,085  $ 11,159,235  $ 11,344,453  $ 10,257,138  $ 10,031,547 

6

OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
Non-PCD:
Mortgage, excluding GNMA buy-back option program $ 581,023  $ 591,429  $ 609,846  $ 630,187  $ 623,138 
Mortgage GNMA buy-back option program (22) 19,008  18,510  19,401  18,227  18,417 
Commercial PR 2,291,753  2,178,748  2,186,228  1,985,535  1,952,178 
Commercial US 662,026  740,665  755,228  707,593  669,332 
Consumer 643,572  627,436  619,894  612,623  593,122 
Auto 2,427,089  2,339,836  2,272,530  2,208,993  2,124,076 
6,624,471  6,496,624  6,463,127  6,163,158  5,980,263 
Less:  Allowance for credit losses (150,849) (148,767) (152,610) (148,210) (150,167)
Total non-PCD loans held for investment, net 6,473,622  6,347,857  6,310,517  6,014,948  5,830,096 
PCD:
Mortgage 885,096  909,106  933,362  955,596  980,833 
Commercial PR 128,584  132,035  135,447  139,857  152,888 
Consumer 605  544  552  572  568 
Auto 951  1,358  1,891  2,552  3,319 
1,015,236  1,043,043  1,071,252  1,098,577  1,137,608 
Less:  Allowance for credit losses (6,452) (7,796) (8,496) (9,319) (9,756)
Total PCD loans held for investment, net 1,008,784  1,035,247  1,062,756  1,089,258  1,127,852 
Total loans held for investment 7,482,406  7,383,104  7,373,273  7,104,206  6,957,948 
Mortgage loans held for sale 8,375  9,370  —  564  11,397 
Other loans held for sale 12,361  18,904  28,345  25,282  18,899 
Total loans, net $ 7,503,142  $ 7,411,378  $ 7,401,618  $ 7,130,052  $ 6,988,244 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program $ 1,466,119  $ 1,500,535  $ 1,543,208  $ 1,585,783  $ 1,603,971 
Mortgage GNMA buy-back option program (22) 19,008  18,510  19,401  18,227  18,417 
Commercial PR 2,420,337  2,310,783  2,321,675  2,125,392  2,105,066 
Commercial US 662,026  740,665  755,228  707,593  669,332 
Consumer 644,177  627,980  620,446  613,195  593,690 
Auto 2,428,040  2,341,194  2,274,421  2,211,545  2,127,395 
7,639,707  7,539,667  7,534,379  7,261,735  7,117,871 
Less:  Allowance for credit losses (157,301) (156,563) (161,106) (157,529) (159,923)
Total loans held for investment, net 7,482,406  7,383,104  7,373,273  7,104,206  6,957,948 
Mortgage loans held for sale 8,375  9,370  —  564  11,397 
Other loans held for sale 12,361  18,904  28,345  25,282  18,899 
Total loans, net $ 7,503,142  $ 7,411,378  $ 7,401,618  $ 7,130,052  $ 6,988,244 
7

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
    Quarter Ended
Six-month period ended
(Dollars in thousands) (unaudited)
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
June 30, 2024
June 30, 2023
Loan production (13)
Mortgage   $ 38,501  $ 32,180  $ 33,332  $ 33,346  $ 35,932  $ 70,681  $ 66,276 
Commercial PR   192,122  186,412  285,517  150,105  210,746  378,534  309,046 
Commercial US   27,402  17,106  57,442  70,311  111,817  44,508  235,891 
Consumer   80,348  68,591  63,785  76,465  87,062  148,939  173,346 
Auto   250,638  232,314  223,780  237,290  236,283  482,952  458,608 
Total   $ 589,011  $ 536,603  $ 663,856  $ 567,517  $ 681,840  $ 1,125,614  $ 1,243,167 
8

OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2024 Q2
2024 Q1
2023 Q4
2023 Q3
2023 Q2
(Dollars in thousands) (unaudited) Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate
Interest earning assets:
Cash equivalents $ 656,728  $ 8,735  5.35  % $ 600,291  $ 7,996  5.36  % $ 517,025  $ 6,906  5.30  % $ 680,864  $ 9,025  5.26  % $ 693,373  $ 9,029  5.22  %
Investment securities 2,489,488  24,666  3.96  % 2,597,542  25,836  3.98  % 2,194,952  20,517  3.74  % 1,830,060  14,544  3.18  % 1,796,517  13,441  2.99  %
Loans held for investment
Non-PCD loans 6,576,634  137,741  8.42  % 6,476,048  132,972  8.26  % 6,320,321  131,167  8.23  % 6,065,822  124,847  8.17  % 5,840,860  116,699  8.01  %
PCD loans 1,035,773  16,516  6.38  % 1,065,709  16,622  6.24  % 1,096,763  17,609  6.42  % 1,125,421  17,292  6.15  % 1,162,111  18,819  6.48  %
Total loans 7,612,407  154,257  8.15  % 7,541,757  149,594  7.98  % 7,417,084  148,776  7.96  % 7,191,243  142,139  7.84  % 7,002,971  135,518  7.76  %
Total interest-earning assets $ 10,758,623  $ 187,658  7.02  % $ 10,739,590  $ 183,426  6.87  % $ 10,129,061  $ 176,199  6.90  % $ 9,702,167  $ 165,708  6.78  % $ 9,492,861  $ 157,988  6.68  %
Interest bearing liabilities:                    
Deposits                    
NOW accounts $ 3,448,144  $ 20,964  2.45  % $ 3,472,852  $ 20,516  2.38  % $ 2,559,135  $ 9,551  1.48  % $ 2,445,955  $ 6,974  1.13  % $ 2,455,040  $ 4,973  0.81  %
Savings accounts 2,020,653  4,587  0.91  % 2,042,865  4,417  0.87  % 2,141,230  4,986  0.92  % 2,260,678  5,478  0.96  % 2,222,710  4,129  0.75  %
Time deposits 1,552,829  11,109  2.88  % 1,480,753  9,924  2.70  % 1,439,833  8,895  2.45  % 1,333,132  7,014  2.09  % 1,277,861  5,493  1.72  %
Brokered deposits 1,566  21  5.28  % 58,737  803  5.50  % 142,718  1,980  5.50  % 2,400  32  5.30  % —  —  —  %
  7,023,192  36,681  2.10  % 7,055,207  35,660  2.03  % 6,282,916  25,412  1.60  % 6,042,165  19,498  1.28  % 5,955,611  14,595  0.98  %
Non-interest bearing deposit accounts 2,578,216  —  —  2,536,320  —  —  2,551,318  —  —  2,581,887  —  —  2,575,972  —  — 
Fair value premium and core deposit intangible amortization —  1,131  —  —  1,132  —  —  1,321  —  —  1,321  —  —  1,321  — 
Total deposits 9,601,408  37,812  1.58  % 9,591,527  36,792  1.54  % 8,834,234  26,733  1.20  % 8,624,052  20,819  0.96  % 8,531,583  15,916  0.75  %
Borrowings
Securities sold under agreements to repurchase —  —  —  % —  —  —  % 183,858  2,578  5.56  % 52,365  728  5.52  % —  —  —  %
Advances from FHLB and other borrowings 219,903  2,521  4.61  % 220,773  2,532  4.61  % 275,457  3,346  4.82  % 211,616  2,374  4.45  % 226,256  2,428  4.30  %
Total borrowings 219,903  2,521  4.61  % 220,773  2,532  4.61  % 459,315  5,924  5.12  % 263,981  3,102  4.66  % 226,256  2,428  4.30  %
Total interest-bearing liabilities $ 9,821,311  $ 40,333  1.65  % $ 9,812,300  $ 39,324  1.61  % $ 9,293,549  $ 32,657  1.39  % $ 8,888,033  $ 23,921  1.07  % $ 8,757,839  $ 18,344  0.84  %
Interest rate spread   $ 147,325  5.36  %   $ 144,102  5.26  %   $ 143,542  5.51  %   $ 141,787  5.71  %   $ 139,644  5.84  %
Net interest margin     5.51  %     5.40  %     5.62  %     5.80  %     5.90  %
Core deposits: (Non-GAAP)                              
NOW accounts $ 3,448,144  $ 20,964  2.45  % $ 3,472,852  $ 20,516  2.38  % $ 2,559,135  $ 9,551  1.48  % $ 2,445,955  $ 6,974  1.13  % $ 2,455,040  $ 4,973  0.81  %
Savings accounts 2,020,653  4,587  0.91  % 2,042,865  4,417  0.87  % 2,141,230  4,986  0.92  % 2,260,678  5,478  0.96  % 2,222,710  4,129  0.75  %
Time deposits 1,552,829  11,109  2.88  % 1,480,753  9,924  2.70  % 1,439,833  8,895  2.45  % 1,333,132  7,014  2.09  % 1,277,861  5,493  1.72  %
  7,021,626  36,660  2.10  % 6,996,470  34,857  2.00  % 6,140,198  23,432  1.51  % 6,039,765  19,466  1.28  % 5,955,611  14,595  0.98  %
Non-interest bearing deposit accounts 2,578,216  —  —  2,536,320  —  —  2,551,318  —  —  2,581,887  —  —  2,575,972  —  — 
Total core deposits $ 9,599,842  $ 36,660  1.54  % $ 9,532,790  $ 34,857  1.47  % $ 8,691,516  $ 23,432  1.07  % $ 8,621,652  $ 19,466  0.90  % $ 8,531,583  $ 14,595  0.69  %
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings
 $ 219,903  $ 2,521  4.61  % $ 220,773  $ 2,532  4.61  % $ 459,315  $ 5,924  5.12  % $ 263,981  $ 3,102  4.66  % $ 226,256  $ 2,428  4.30  %
Brokered deposits
 1,566  21  5.28  % 58,737  803  5.50  % 142,718  1,980  5.50  % 2,400  32  5.30  % —  —  —  %
Total borrowings and brokered deposits
 $ 221,469  $ 2,542  4.62  % $ 279,510  $ 3,335  4.80  % $ 602,033  $ 7,904  5.21  % $ 266,381  $ 3,134  4.67  % $ 226,256  $ 2,428  4.30  %
9

OFG Bancorp (NYSE: OFG)
Table 5-2: Average Balances, Net Interest Income and Net Interest Margin (Continued)
2024 YTD 2023 YTD
(Dollars in thousands) (unaudited) Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate
Interest earning assets:
Cash equivalents $ 628,709  $ 16,731  5.35  % $ 623,393  $ 15,475  5.01  %
Investment securities 2,543,515  50,502  3.97  % 1,867,857  27,669  2.96  %
Loans held for investment
Non-PCD loans 6,526,341  270,713  8.34  % 5,756,382  226,029  7.92  %
PCD loans 1,050,741  33,138  6.31  % 1,178,773  37,800  6.41  %
Total loans 7,577,082  303,851  8.06  % 6,935,155  263,829  7.67  %
Total interest-earning assets $ 10,749,306  $ 371,084  6.94  % $ 9,426,405  $ 306,973  6.57  %
Interest bearing liabilities:
Deposits
NOW accounts $ 3,460,498  $ 41,479  2.41  % $ 2,476,360  $ 9,187  0.75  %
Savings accounts 2,031,759  9,004  0.89  % 2,227,196  7,264  0.66  %
Time deposits 1,516,791  21,032  2.79  % 1,243,835  9,313  1.51  %
Brokered deposits 30,152  824  5.50  % 5,086  8  0.30  %
7,039,200  72,339  2.07  % 5,952,477  25,772  0.87  %
Non-interest bearing deposit accounts 2,557,268  —  —  % 2,614,840  —  —  %
Fair value premium and core deposit intangible amortization —  2,264  —  —  2,641  — 
Total deposits 9,596,468  74,603  1.56  % 8,567,317  28,413  0.67  %
Borrowings
Securities sold under agreements to repurchase —  —  —  % —  —  —  %
Advances from FHLB and other borrowings 220,338  5,054  4.61  % 145,660  3,019  4.18  %
Total borrowings 220,338  5,054  4.61  % 145,660  3,019  4.18  %
Total interest-bearing liabilities $ 9,816,806  $ 79,657  1.63  % $ 8,712,977  $ 31,432  0.73  %
Interest rate spread $ 291,427  5.31  % $ 275,541  5.84  %
Net interest margin   5.45  % 5.89  %
Core deposits: (Non-GAAP)
NOW accounts $ 3,460,498  $ 41,479  2.41  % $ 2,476,360  $ 9,187  0.75  %
Savings accounts 2,031,759  9,004  0.89  % 2,227,196  7,264  0.66  %
Time deposits 1,516,791  21,032  2.79  % 1,243,835  9,313  1.51  %
7,009,048  71,515  2.05  % 5,947,391  25,764  0.87  %
Non-interest bearing deposit accounts 2,557,268  —  —  % 2,614,840  —  —  %
Total core deposits $ 9,566,316  $ 71,515  1.50  % $ 8,562,231  $ 25,764  0.61  %
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings
 $ 220,338  $ 5,054  4.61  % $ 145,660  $ 3,019  4.18  %
Brokered deposits
 30,152  824  5.50  % 5,086  8  0.30  %
Total borrowings and brokered deposits
 $ 250,490  279,510  $ 5,878  4.72  % $ 150,746  150,746  $ 3,027  3,027  4.04  %
10

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
2024 2024 2023 2023 2023
(Dollars in thousands) (unaudited) Q2 Q1 Q4 Q3 Q2
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs $ 1  $ 64  $ 150  $ 218  $ 191 
Recoveries (540) (267) (483) (185) (333)
Total mortgage (539) (203) (333) 33  (142)
Commercial PR:
Charge-offs 160  3,567  377  1,404  523 
Recoveries (111) (52) (114) (156) (237)
Total commercial PR 49  3,515  263  1,248  286 
Commercial US:
Charge-offs 1,574  1,749  689  6,850  2,973 
Recoveries (45) —  (23) (18) — 
Total commercial US 1,529  1,749  666  6,832  2,973 
Consumer:          
Charge-offs 8,180  7,981  6,799  5,894  5,518 
Recoveries (851) (693) (650) (655) (2,003)
Total consumer 7,329  7,288  6,149  5,239  3,515 
Auto:          
Charge-offs 12,559  14,218  14,658  10,458  9,170 
Recoveries (5,926) (5,971) (4,982) (5,193) (8,332)
Total auto 6,633  8,247  9,676  5,265  838 
Total $ 15,001  $ 20,596  $ 16,421  $ 18,617  $ 7,470 
PCD
Mortgage:
Charge-offs $ 29  $ 83  $ 94  $ 148  $ 1 
Recoveries (93) (638) (111) (80) (260)
Total mortgage (64) (555) (17) 68  (259)
Commercial PR:          
Charge-offs 265  —  —  690  — 
Recoveries (158) (157) (315) (494) (319)
Total commercial PR 107  (157) (315) 196  (319)
Consumer:          
Charge-offs —  —  244  39  123 
Recoveries (7) (23) (19) (23) (43)
Total consumer (7) (23) 225  16  80 
Auto:          
Charge-offs 6  9  12  37  35 
Recoveries (30) (58) (44) (98) (401)
Total auto (24) (49) (32) (61) (366)
Total $ 12  $ (784) $ (139) $ 219  $ (864)
Total Net Charge-offs $ 15,013  $ 19,812  $ 16,282  $ 18,836  $ 6,606 
Net Charge-off Rates          
Mortgage -0.16  % -0.20  % -0.09  % 0.03  % -0.10  %
Commercial PR 0.03  % 0.58  % -0.01  % 0.27  % -0.01  %
Commercial US 0.85  % 0.92  % 0.36  % 3.96  % 1.81  %
Consumer 4.42  % 4.45  % 3.95  % 3.33  % 2.37  %
Auto 1.11  % 1.42  % 1.72  % 0.96  % 0.09  %
Total 0.79  % 1.05  % 0.88  % 1.05  % 0.38  %
Average Loans Held For Investment          
Mortgage $ 1,479,583  $ 1,511,281  $ 1,562,135  $ 1,576,637  $ 1,616,873 
Commercial PR 2,363,831  2,312,561  2,230,342  2,122,169  2,040,547 
Commercial US 716,089  756,409  736,640  690,105  657,439 
Consumer 663,315  652,843  644,834  630,492  606,842 
Auto 2,389,589  2,308,663  2,243,133  2,171,840  2,081,270 
Total $ 7,612,407  $ 7,541,757  $ 7,417,084  $ 7,191,243  $ 7,002,971 
11



OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
2024 2024 2023 2023 2023
(Dollars in thousands) (unaudited) Q2 Q1 Q4 Q3 Q2
Early Delinquency (30 - 89 days past due)          
Mortgage $ 12,767  $ 13,080  $ 15,703  $ 14,380  $ 13,976 
Commercial 7,781  6,128  3,653  5,666  11,668 
Consumer 13,102  10,901  11,366  10,160  8,188 
Auto 152,817  126,704  147,681  139,278  117,237 
Total  $ 186,467  $ 156,813  $ 178,403  $ 169,484  $ 151,069 
Early Delinquency Rates (30 - 89 days past due)          
Mortgage 2.13  % 2.14  % 2.50  % 2.22  % 2.18  %
Commercial 0.26  % 0.21  % 0.12  % 0.21  % 0.45  %
Consumer 2.04  % 1.74  % 1.83  % 1.66  % 1.38  %
Auto 6.30  % 5.42  % 6.50  % 6.31  % 5.52  %
Total 2.81  % 2.41  % 2.76  % 2.75  % 2.53  %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation $ 23,443  $ 25,985  $ 27,859  $ 30,661  $ 31,189 
GNMA's buy-back option program (22) 19,008  18,509  19,401  18,227  18,418 
Total mortgage 42,451  44,494  47,260  48,888  49,607 
Commercial 17,703  14,171  14,298  15,109  28,643 
Consumer 16,405  14,760  14,742  13,422  11,026 
Auto 169,506  141,220  166,737  155,579  130,367 
Total $ 246,065  $ 214,645  $ 243,037  $ 232,998  $ 219,643 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation 3.91  % 4.26  % 4.43  % 4.73  % 4.86  %
GNMA's buy-back option program (22) 3.17  % 3.03  % 3.08  % 2.81  % 2.87  %
Total mortgage 7.07  % 7.29  % 7.51  % 7.54  % 7.73  %
Commercial 0.60  % 0.49  % 0.49  % 0.56  % 1.09  %
Consumer 2.55  % 2.35  % 2.38  % 2.19  % 1.86  %
Auto 6.98  % 6.04  % 7.34  % 7.04  % 6.14  %
Total 3.71  % 3.30  % 3.76  % 3.78  % 3.67  %
Nonperforming Assets (14)
Mortgage $ 17,325  $ 19,044  $ 20,007  $ 25,354  $ 27,600 
Commercial 34,477  33,794  36,096  36,649  43,188 
Consumer 3,329  3,893  3,376  3,359  2,907 
Auto 16,689  14,516  19,056  16,301  13,130 
Total nonperforming loans 71,820  71,247  78,535  81,663  86,825 
Foreclosed real estate 6,526  10,850  10,780  9,555  10,639 
Other repossessed assets 5,713  6,844  4,032  4,432  4,004 
Total nonperforming assets $ 84,059  $ 88,941  $ 93,347  $ 95,650  $ 101,468 
Nonperforming Loan Rates          
Mortgage 2.89  % 3.12  % 3.18  % 3.91  % 4.30  %
Commercial 1.17  % 1.16  % 1.23  % 1.36  % 1.65  %
Consumer 0.52  % 0.62  % 0.54  % 0.55  % 0.49  %
Auto 0.69  % 0.62  % 0.84  % 0.74  % 0.62  %
Total loans 1.08  % 1.10  % 1.22  % 1.33  % 1.45  %

12

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
  2024 2024 2023 2023 2023
(Dollars in thousands) (unaudited)   Q2 Q1 Q4 Q3 Q2
Nonperforming PCD Loans (14)
Mortgage   $ 244  $ 247  $ 250  $ 253  $ 256 
Commercial   4,748  5,969  6,424  6,688  8,104 
Consumer   —  —  —  7  — 
Total nonperforming loans   $ 4,992  $ 6,216  $ 6,674  $ 6,948  $ 8,360 
Nonperforming PCD Loan Rates            
Mortgage   0.03  % 0.03  % 0.03  % 0.03  % 0.03  %
Commercial   3.69  % 4.52  % 4.74  % 4.78  % 5.30  %
Consumer   0.00  % 0.00  % 0.00  % 1.22  % 0.00  %
Total   0.49  % 0.60  % 0.62  % 0.63  % 0.73  %
Total PCD Loans Held for Investment          
Mortgage   $ 885,096  $ 909,106  $ 933,362  $ 955,596  $ 980,833 
Commercial   128,584  132,035  135,447  139,857  152,888 
Consumer   605  544  552  572  568 
Auto 951  1,358  1,891  2,552  3,319 
Total loans   $ 1,015,236  $ 1,043,043  $ 1,071,252  $ 1,098,577  $ 1,137,608 
  2024 2024 2023 2023 2023
(Dollars in thousands) (unaudited)   Q2 Q1 Q4 Q3 Q2
Total Nonperforming Loans (14)          
Mortgage   $ 17,569  $ 19,291  $ 20,257  $ 25,607  $ 27,856 
Commercial   39,225  39,763  42,520  43,337  51,292 
Consumer   3,329  3,893  3,376  3,366  2,907 
Auto   16,689  14,516  19,056  16,301  13,130 
Total nonperforming loans   $ 76,812  $ 77,463  $ 85,209  $ 88,611  $ 95,185 
Total Nonperforming Loan Rates  
Mortgage   1.18  % 1.27  % 1.30  % 1.60  % 1.72  %
Commercial   1.27  % 1.30  % 1.38  % 1.53  % 1.85  %
Consumer   0.52  % 0.62  % 0.54  % 0.55  % 0.49  %
Auto   0.69  % 0.62  % 0.84  % 0.74  % 0.62  %
Total   1.01  % 1.03  % 1.13  % 1.22  % 1.34  %
Total Loans Held for Investment          
Mortgage   $ 1,485,127  $ 1,519,045  $ 1,562,609  $ 1,604,010  $ 1,622,388 
Commercial   3,082,363  3,051,448  3,076,903  2,832,985  2,774,398 
Consumer   644,177  627,980  620,446  613,195  593,690 
Auto   2,428,040  2,341,194  2,274,421  2,211,545  2,127,395 
Total loans   $ 7,639,707  $ 7,539,667  $ 7,534,379  $ 7,261,735  $ 7,117,871 


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OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended June 30, 2024
(Dollars in thousands) (unaudited) Mortgage Commercial Consumer Auto Total
Allowance for credit losses Non-PCD:          
Balance at beginning of period $ 7,627  $ 37,371  $ 27,453  $ 76,316  $ 148,767 
(Recapture of) provision for credit losses (1,280) (1,984) 9,308  11,039  17,083 
Charge-offs (1) (1,734) (8,180) (12,559) (22,474)
Recoveries 540  156  851  5,926  7,473 
Balance at end of period $ 6,886  $ 33,809  $ 29,432  $ 80,722  $ 150,849 
Allowance for credit losses PCD:
Balance at beginning of period $ 6,638  $ 1,133  $ 7  $ 18  $ 7,796 
Recapture of credit losses (1,060) (237) (6) (29) (1,332)
Charge-offs (29) (265) —  (6) (300)
Recoveries 93  158  7  30  288 
Balance at end of period $ 5,642  $ 789  $ 8  $ 13  $ 6,452 
Allowance for credit losses summary:
Balance at beginning of period $ 14,265  $ 38,504  $ 27,460  $ 76,334  $ 156,563 
(Recapture of) provision for credit losses (2,340) (2,221) 9,302  11,010  15,751 
Charge-offs (30) (1,999) (8,180) (12,565) (22,774)
Recoveries 633  314  858  5,956  7,761 
Balance at end of period $ 12,528  $ 34,598  $ 29,440  $ 80,735  $ 157,301 
Allowance coverage ratio 0.84  % 1.12  % 4.57  % 3.33  % 2.06  %


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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.
2024 2024 2023 2023 2023
(Dollars in thousands) (unaudited) Q2 Q1 Q4 Q3 Q2
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity $ 1,227,702  $ 1,215,653  $ 1,193,480  $ 1,095,463  $ 1,099,751 
Less:  Intangible assets (101,979) (103,457) (104,935) (106,660) (108,384)
Tangible common equity $ 1,125,723  $ 1,112,196 $ 1,088,545 $ 988,803 $ 991,367
         
Common shares outstanding at end of period 46,562  47,217  47,065  47,058  47,076 
Tangible book value per common share (Non-GAAP) $ 24.18  $ 23.55  $ 23.13  $ 21.01  $ 21.06 
Total Assets to Tangible Assets          
Total assets   $ 11,259,085  $ 11,159,235  $ 11,344,453  $ 10,257,138  $ 10,031,547 
Less:  Intangible assets (101,979) (103,457) (104,935) (106,660) (108,384)
Tangible assets (Non-GAAP) $ 11,157,106  $ 11,055,778  $ 11,239,518  $ 10,150,478  $ 9,923,163 
Non-GAAP TCE Ratio          
Tangible common equity $ 1,125,723  $ 1,112,196 $ 1,088,545 $ 988,803 $ 991,367
Tangible assets 11,157,106  11,055,778  11,239,518  10,150,478  9,923,163 
TCE ratio 10.09  % 10.06  % 9.68  % 9.74  % 9.99  %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity $ 1,223,669  $ 1,213,469  $ 1,128,747  $ 1,127,602  $ 1,108,880 
Less:  Average intangible assets (102,499) (103,988) (105,560) (107,291) (109,130)
Average tangible common equity $ 1,121,170  $ 1,109,481 $ 1,023,187 $ 1,020,311 $ 999,750



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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
2024 2024   2023 2023 2023
(Dollars in thousands) (unaudited) Q2 Q1   Q4 Q3 Q2
Regulatory Capital Metrics            
Common equity Tier 1 capital $ 1,223,031 $ 1,205,231 $ 1,174,205 $ 1,124,599 $ 1,086,587
Tier 1 capital 1,223,031 1,205,231 1,174,205 1,124,599 1,086,587
Total risk-based capital (15) 1,330,474 1,309,893 1,278,537 1,224,963 1,183,793
Risk-weighted assets 8,561,549 8,338,168 8,317,802 8,000,711 7,742,933
Regulatory Capital Ratios
Common equity Tier 1 capital ratio (16) 14.29  % 14.45  % 14.12  % 14.06  % 14.03  %
Tier 1 risk-based capital ratio (17) 14.29  % 14.45  % 14.12  % 14.06  % 14.03  %
Total risk-based capital ratio (18) 15.54  % 15.71  % 15.37  % 15.31  % 15.29  %
Leverage ratio (19) 10.86  % 10.76  % 11.03  % 11.03  % 10.85  %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity $ 1,227,702 $ 1,215,653  $ 1,193,480  $ 1,095,463  $ 1,099,751 
Plus: CECL transition adjustment (20) 6,852 6,852 13,704 13,704 13,704
Plus (Less): Unrealized losses on available-for-sale securities, net of
                    income tax		 86,494 81,731 67,013 127,677 89,639
           Unrealized (gains) losses on cash flow hedges, net of
           income tax		 — — — — (75)
Total adjusted stockholders’equity 1,321,048 1,304,236 1,274,197 1,236,844 1,203,019
Less: Disallowed goodwill (84,241) (84,241) (84,241) (84,241) (84,241)
  Disallowed other intangible assets, net (13,776) (14,764) (15,751) (16,883) (18,015)
  Disallowed deferred tax assets, net — — — (11,121) (14,176)
Common equity Tier 1 capital and Tier 1 capital 1,223,031 1,205,231 1,174,205 1,124,599 1,086,587
Plus Tier 2 capital:  Qualifying allowance for credit losses 107,443 104,662 104,332 100,364 97,206
Total risk-based capital $ 1,330,474 $ 1,309,893  $ 1,278,537  $ 1,224,963  $ 1,183,793 



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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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