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0001030469FALSE00010304692024-10-162024-10-16

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

FORM 8-K
________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 16, 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 October 16, 2024, OFG Bancorp (the “Company”) announced the results for the quarter ended September 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: October 16, 2024
 By: /s/ Maritza Arizmendi
Maritza Arizmendi
Chief Financial Officer

EX-99 2 ofg-20243qxexx99.htm EX-99 Document


Exhibit 99
ofgbancorplogoa.jpg
OFG Bancorp Reports 3Q24 Results
SAN JUAN, Puerto Rico, October 16, 2024 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the third quarter ended September 30, 2024. EPS diluted of $1.00 compared to $1.08 in 2Q24 and $0.95 in 3Q23. Total core revenues of $174.1 million compared to $179.4 million in 2Q24 and $172.2 million in 3Q23.
CEO Comment
José Rafael Fernández, Chief Executive Officer, said: “The third quarter was another solid quarter of performance with EPS-diluted up 5.3% year-over-year on a 1.1% increase in total core revenues. We continued to produce consistent, core operating results, and digital adoption of our new and upgraded products, services, and self-service tools keeps steadily growing. Today we celebrate our 60th anniversary in business by renewing our commitment to bring progress to our customers, employees, shareholders, and the communities we serve. Thanks to all our team members for always being more than ready to help our customers today and tomorrow.”
3Q24 Highlights
Performance Metrics: Net interest margin of 5.43%, return on average assets of 1.66%, return on average tangible common stockholders’ equity of 15.94%, and efficiency ratio of 52.60%.
Total Interest Income of $189.0 million compared to $187.7 million in 2Q24 and $165.7 million in 3Q23. Compared to 2Q24, 3Q24 increased $1.4 million, primarily reflecting higher balances of investment securities and yields, higher balances of loans, and the absence of a $2.1 million loan recovery in 2Q24.
Total Interest Expense of $41.2 million compared to $40.3 million in 2Q24 and $23.9 million in 3Q23. Compared to 2Q24, 3Q24 increased $0.8 million, reflecting higher average balances of higher-cost borrowings and brokered deposits and slightly reduced average core deposit balances and cost.
Total Banking & Financial Service Revenues of $26.3 million compared to $32.1 million in 2Q24 and $30.4 million in 3Q23. 3Q24 primarily reflected $2.7 million in reduced interchange fees due to the Durbin Amendment, $2.1 million reduced MSR valuation due to lower long-term rates, and $0.3 million revenue from the acquisition in late August of a $1.7 billion Puerto Rico residential mortgage servicing portfolio.
Pre-Provision Net Revenues of $83.1 million compared to $86.8 million in 2Q24 and $82.3 million in 3Q23.
Total Provision for Credit Losses of $21.4 million compared to $15.6 million in 2Q24 and $16.4 million in 3Q23. 3Q24 primarily reflected $18.7 million for increased loan volume; $5.2 million related to the annual update of auto risk drivers and consumer loan loss factors, and the extension of cash flows in a PR commercial loan up for renewal; and a $2.7 million reserve release mainly due to an improved U.S. macroeconomic perspective.


Credit Quality: Net charge-offs of $17.1 million (0.90% of average loans) compared to $15.0 million (0.79%) in 2Q24 and $18.8 million (1.05%) in 3Q23. 3Q24 early and total delinquency rates were 2.78% and 4.10%, respectively. The nonperforming loan rate was 1.11%. The 3Q24 total delinquency rate increased sequentially due to booking of the GNMA buy-back option program related to the previously mentioned mortgage servicing portfolio acquisition.
Total Non-Interest Expense of $91.6 million compared to $93.0 million in 2Q24 and $90.2 million in 3Q23. 3Q24 included a $2.3 million credit and debit card processing business contract renewal rebate and $1.3 million in expenses related to sales of repossessed assets.
Effective Tax Rate of 23.9% compared to 28.2% in 2Q24 and 31.9% in 3Q23. Lower 3Q24 ETR reflected an estimated 2024 ETR of 26.8% due to higher forecasted business activities with preferential tax treatment under the Puerto Rico tax code, coupled with discrete benefits of $3.1 million mainly related to stock vested in 1Q24 and tax credit purchases.
Loans Held for Investment (EOP) of $7.75 billion compared to $7.64 billion in 2Q24 and $7.26 billion in 3Q23. Compared to 2Q24, 3Q24 increased 1.5%, reflecting growth in Puerto Rico and U.S. commercial loans and Puerto Rico auto and consumer loans, and regular paydowns and securitization of residential mortgages. Year over year, 3Q24 loans increased 6.7%.
New Loan Production of $572.2 million compared to $589.0 million in 2Q24 and $567.5 million in 3Q23. Compared to 2Q24, 3Q24 production reflected increases in U.S. commercial and Puerto Rico consumer lending, and decreases in Puerto Rico commercial and auto lending.
Total Investments (EOP) of $2.61 billion compared to $2.48 billion in 2Q24 and $2.07 billion in 3Q23.
Customer Deposits (EOP) of $9.53 billion compared to $9.60 billion in 2Q24 and $8.54 billion in 3Q23. Compared to 2Q24, 3Q24 reflected increases in savings and time deposits, and lower demand deposits.
Total Borrowings & Brokered Deposits (EOP) of $346.5 million compared to $201.2 million in 2Q24 and $454.4 million in 3Q23.
Cash & Cash Equivalents (EOP) of $680.6 million compared to $740.4 million in 2Q24 and $532.7 million in 3Q23.
Capital: CET1 ratio was 14.37% compared to 14.29% in 2Q24 and 14.06% in 3Q23. The Tangible Common Equity ratio was 10.72% compared to 10.09% in 2Q24 and 9.74% in 3Q23. Tangible Book Value per share increased to $26.15 compared to $24.18 in 2Q24 and $21.01 in 3Q23.
Conference Call, Financial Supplement & Presentation
A conference call to discuss 3Q24 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 225-9448 or (203) 518-9708. Conference ID: OFGQ324. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter. OFG’s Financial Supplement, with full financial tables for the quarter ended September 30, 2024, and the 3Q24 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: Lumarie Vega López (lumarie.vega@orientalbank.com) and Victoria Maldonado Rodríguez (victoria.maldonado@orientalbank.com) at (787) 771-6800
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 September 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
2024
2023
2023
(Dollars in thousands, except per share data) (unaudited)
Q3
Q2
Q1
Q4
Q3
Statement of Operations
Net interest income   $ 147,875 $ 147,325 $ 144,102 $ 143,542 $ 141,787
Non-interest income, net (core) (1) 26,271 (a) 32,085 30,059 32,061 30,404
Total core revenues (2) 174,146 (a) 179,410 174,161 175,603 172,191
Non-interest expense   91,600 92,960 91,412 94,099 90,158
Pre-provision net revenues (21) 83,143 86,841 83,038 88,151 82,328
Total provision for credit losses   21,359 15,581 15,121 19,719 16,430
Net income before income taxes   61,784 71,260 67,917 68,432 65,898
Income tax expense   14,784 20,129 18,225 21,835 21,025
Net income available to common stockholders   47,000 51,131 49,692 46,597 44,873
Common Share Statistics            
Earnings per common share - basic (3) $ 1.01 $ 1.09 $ 1.06 $ 0.99 $ 0.95
Earnings per common share - diluted (4) $ 1.00 $ 1.08 $ 1.05 $ 0.98 $ 0.95
Average common shares outstanding   46,560 46,952 47,096 47,061 47,114
Average common shares outstanding and equivalents   46,846 47,131 47,343 47,386 47,392
Cash dividends per common share   $ 0.25 $ 0.25 $ 0.25 $ 0.22 $ 0.22
Book value per common share (period end)   $ 28.31 $ 26.37 $ 25.75 $ 25.36 $ 23.28
Tangible book value per common share (period end) (5) $ 26.15 $ 24.18 $ 23.55 $ 23.13 $ 21.01
Balance Sheet (Average Balances)            
Loans (6) $ 7,634,511 $ 7,612,407 $ 7,541,757 $ 7,417,084 $ 7,191,243
Interest-earning assets   10,837,380 10,758,623 10,739,590 10,129,061 9,702,167
Total assets   11,347,795 11,233,202 11,199,867 10,588,584 10,180,931
Core deposits   9,588,752 9,599,842 9,532,790 8,691,516 8,621,652
Total deposits   9,609,820 9,601,408 9,591,527 8,834,234 8,624,052
Interest-bearing deposits   7,042,467 7,023,192 7,055,207 6,282,916 6,042,165
Borrowings   241,062 219,903 220,773 459,315 263,981
Stockholders' equity   1,280,760 1,223,669 1,213,469 1,128,747 1,127,602
Performance Metrics            
Net interest margin (7) 5.43  % 5.51  % 5.40  % 5.62  % 5.80  %
Return on average assets (8) 1.66  % 1.82  % 1.77  % 1.76  % 1.76  %
Return on average tangible common stockholders' equity (9) 15.94  % 18.24  % 17.92  % 18.22  % 17.59  %
Efficiency ratio (10) 52.60  % 51.81  % 52.49  % 53.59  % 52.36  %
Full-time equivalent employees, period end   2,236  2,239  2,230  2,248  2,264 
Credit Quality Metrics          
Allowance for credit losses $ 161,500 $ 157,301 $ 156,563 $ 161,106 $ 157,529
Allowance as a % of loans held for investment 2.08  % 2.06  % 2.08  % 2.14  % 2.17  %
Net charge-offs $ 17,103 $ 15,013 $ 19,812 $ 16,282 $ 18,836
Net charge-off rate (11) 0.90  % 0.79  % 1.05  % 0.88  % 1.05  %
Early delinquency rate (30 - 89 days past due) 2.78  % 2.81  % 2.41  % 2.76  % 2.75  %
Total delinquency rate (30 days and over) 4.10  % (b) 3.71  % 3.30  % 3.76  % 3.78  %
Capital Ratios (period end) (Non-GAAP) (12)(20)
Leverage ratio 11.12  % 10.86  % 10.76  % 11.03  % 11.03  %
Common equity Tier 1 capital ratio 14.37  % 14.29  % 14.45  % 14.12  % 14.06  %
Tier 1 risk-based capital ratio 14.37  % 14.29  % 14.45  % 14.12  % 14.06  %
Total risk-based capital ratio 15.63  % 15.54  % 15.71  % 15.37  % 15.31  %
Tangible common equity ("TCE") ratio 10.72  % 10.09  % 10.06  % 9.68  % 9.74  %

(a)During 3Q 2024, the Durbin Amendment became applicable to the Company as a result of crossing the $10 billion asset threshold in December 31, 2023, reducing debit card interchange fees in the quarter by $2.7 million.
(b)During 3Q 2024, the Company acquired the servicing rights of a $1.7 billion mortgage loan portfolio being subserviced. At September 30, 2024, the fair value of its servicing rights of $21.5 million was included as servicing asset. Defaulted loans under the GNMA buy-back option program corresponding to this servicing portfolio and reported as delinquent loans, along with its corresponding liability, amounted to $24.2 million.
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 $ 439,302  $ 417,328 
Non-interest income, net (core) (1) 88,415  (a) 89,794 
Total core revenues (2) 527,717  (a) 507,122 
Non-interest expense 275,972  269,266 
Pre-provision net revenues (21) 253,022  237,735 
Total provision for credit losses 52,061  40,919 
Net income before income taxes 200,961  196,816 
Income tax expense 53,138  61,541 
Net income available to common stockholders 147,823  135,275 
Common Share Statistics
Earnings per common share - basic (3) $ 3.15  $ 2.86 
Earnings per common share - diluted (4) $ 3.14  $ 2.84 
Average common shares outstanding 46,868  47,325 
Average common shares outstanding and equivalents 47,111  47,605 
Cash dividends per common share $ 0.75  $ 0.66 
Book value per common share (period end) $ 28.31  $ 23.28 
Tangible book value per common share (period end) (5) $ 26.15  $ 21.01 
Balance Sheet (Average Balances)
Loans (6) $ 7,596,365  $ 7,021,456 
Interest-earning assets 10,778,878  9,539,389 
Total assets 11,259,969  10,035,121 
Core deposits 9,573,850  8,582,642 
Total deposits 9,600,952  8,586,823 
Interest-bearing deposits 7,040,298  5,983,088 
Borrowings 227,296  185,534 
Stockholders' equity 1,239,451  1,104,911 
Performance Metrics
Net interest margin (7) 5.44  % 5.85  %
Return on average assets (8) 1.75  % 1.80  %
Return on average tangible common stockholders' equity (9) 17.34  % 18.11  %
Efficiency ratio (10) 52.30  % 53.10  %
Full-time equivalent employees, period end 2,236  2,264 
Credit Quality Metrics
Allowance for credit losses $ 161,500  $ 157,529 
Allowance as a % of loans held for investment 2.08  % 2.17  %
Net charge-offs $ 51,928  $ 35,562 
Net charge-off rate (11) 0.91  % 0.68  %
Early delinquency rate (30 - 89 days past due) 2.78  % 2.75  %
Total delinquency rate (30 days and over) 4.10  % (b) 3.78  %
(a)Refer to “(a)” in Table 1-1.
(b)Refer to “(b)” in Table 1-1.




3

OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited)   September 30, 2024 June 30, 2024 March 31,
2024		 December 31,
2023		 September 30,
2023
Interest income:  
Loans
Non-PCD loans   $ 139,358  $ 137,741  $ 132,972  $ 131,167  $ 124,847 
PCD loans   15,052  16,516  16,622  17,609  17,292 
Total interest income from loans   154,410  154,257  149,594  148,776  142,139 
Investment securities and cash   34,620  33,401  33,832  27,423  23,569 
Total interest income   189,030  187,658  183,426  176,199  165,708 
Interest expense:
Deposits
Core deposits   38,123  37,791  35,989  24,753  20,787 
Brokered deposits   221  21  803  1,980  32 
Total deposits   38,344  37,812  36,792  26,733  20,819 
Borrowings   2,811  2,521  2,532  5,924  3,102 
Total interest expense   41,155  40,333  39,324  32,657  23,921 
Net interest income   147,875  147,325  144,102  143,542  141,787 
Provision for credit losses, excluding PCD loans 21,070  16,913  16,605  20,681  16,648 
Provision for (recapture of) credit losses on PCD loans 289  (1,332) (1,484) (962) (218)
Total provision for credit losses   21,359  15,581  15,121  19,719  16,430 
Net interest income after provision for credit losses   126,516  131,744  128,981  123,823  125,357 
Non-interest income:            
Banking service revenues   15,554  (a) 18,781  17,259  17,822  17,303 
Wealth management revenues   8,449  8,440  8,107  9,985  7,691 
Mortgage banking activities   2,268  4,864  4,693  4,254  5,410 
Total banking and financial service revenues   26,271  32,085  30,059  32,061  30,404 
Other income, net   597  391  289  6,647  295 
Total non-interest income, net   26,868  32,476  30,348  38,708  30,699 
Non-interest expense:
Compensation and employee benefits   38,468  38,467  39,816  41,418  38,095 
Occupancy, equipment and infrastructure costs   15,124  14,393  14,322  15,729  14,887 
General and administrative expenses   36,736  40,831  36,606  35,803  37,203 
Foreclosed real estate and other repossessed assets expenses (income), net   1,272  (731) 668  1,149  (27)
Total non-interest expense   91,600  92,960  91,412  94,099  90,158 
Income before income taxes   61,784  71,260  67,917  68,432  65,898 
Income tax expense   14,784  20,129  18,225  21,835  21,025 
Net income available to common shareholders   $ 47,000  $ 51,131  $ 49,692  $ 46,597  $ 44,873 
(a)Refer to “(a)” in Table 1-1.
4

OFG Bancorp (NYSE: OFG)
Table 2-2: Consolidated Statements of Operations (Continued)
(Dollars in thousands, except per share data) (unaudited) Nine-month period ended
September 30, 2024
September 30, 2023
Interest income:
Loans
Non-PCD loans $ 410,071  $ 350,876 
PCD loans 48,190  55,092 
Total interest income from loans 458,261  405,968 
Investment securities and cash 101,853  66,713 
Total interest income 560,114  472,681 
Interest expense:
Deposits
Core deposits 111,903  49,192 
Brokered deposits 1,045  40 
Total deposits 112,948  49,232 
Borrowings 7,864  6,121 
Total interest expense 120,812  55,353 
Net interest income 439,302  417,328 
Provision for credit losses, excluding PCD loans 54,588  44,034 
Recapture of credit losses on PCD loans (2,527) (3,115)
Total provision for credit losses 52,061  40,919 
Net interest income after provision for credit losses 387,241  376,409 
Non-interest income:    
Banking service revenues 51,594  (a) 52,256 
Wealth management revenues 24,996  23,005 
Mortgage banking activities 11,825  14,533 
Total banking and financial service revenues 88,415  89,794 
Other income (loss), net 1,277  (121)
Total non-interest income, net 89,692  89,673 
Non-interest expense:
Compensation and employee benefits 116,751  114,409 
Occupancy, equipment and infrastructure costs 43,839  43,506 
General and administrative expenses 114,173  112,905 
Foreclosed real estate and other repossessed assets expenses (income), net 1,209  (1,554)
Total non-interest expense 275,972  269,266 
Income before income taxes 200,961  196,816 
Income tax expense 53,138  61,541 
Net income available to common shareholders $ 147,823  $ 135,275 
(a)Refer to “(a)” in Table 1-1.
(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)
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Cash and cash equivalents $ 680,587  $ 740,429  $ 754,392  $ 748,173  $ 532,699 
Investments:
Trading securities 18  16  14  13  14 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities 2,228,399  1,895,067  1,746,195  1,801,849  1,511,779 
US treasury securities
 1,136  200,658  150,915  296,799  739 
Other investment securities 567  581  597  616  635 
Total investment securities available-for-sale 2,230,102  2,096,306  1,897,707  2,099,264  1,513,153 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities 297,713  303,621  309,764  314,710  320,249 
US treasury securities
 —  —  199,727  199,314  198,896 
Other investment securities 35,000  35,000  35,000  35,000  — 
Total investment securities held-to-maturity 332,713  338,621  544,491  549,024  519,145 
Equity securities 45,692  41,074  40,162  38,469  42,162 
Total investments 2,608,525  2,476,017  2,482,374  2,686,770  2,074,474 
Loans, net 7,604,700  (a) 7,503,142  7,411,378  7,401,618  7,130,052 
Other assets:
Prepaid expenses 98,755  88,137  61,916  62,858  67,191 
Deferred tax asset, net 4,130  4,094  4,379  4,923  11,121 
Foreclosed real estate and repossessed properties 11,388  12,239  17,694  14,812  13,987 
Premises and equipment, net 105,279  104,384  104,980  104,102  103,040 
Goodwill 84,241  84,241  84,241  84,241  84,241 
Other intangibles 16,260  17,738  19,216  20,694  22,419 
Right of use assets 20,355  20,298  21,606  21,725  20,011 
Servicing asset 68,512  (a) 49,789  49,553  49,520  50,601 
Accounts receivable and other assets 158,650  158,577  147,506  145,017  147,302 
Total assets $ 11,461,382  $ 11,259,085  $ 11,159,235  $ 11,344,453  $ 10,257,138 
Deposits:
Demand deposits $ 5,859,787  $ 6,017,364  $ 6,036,891  $ 6,050,428  $ 4,894,958 
Savings accounts 2,019,832  2,002,342  2,001,770  2,088,102  2,216,162 
Time deposits 1,653,402  1,585,126  1,507,037  1,461,459  1,427,497 
Brokered deposits 75,631  418  2,576  162,180  2,936 
Total deposits 9,608,652  9,605,250  9,548,274  9,762,169  8,541,553 
Borrowings:          
Securities sold under agreements to repurchase —  —  —  —  150,701 
Advances from FHLB and other borrowings 270,827  200,741  200,766  200,770  300,774 
Total borrowings 270,827  200,741  200,766  200,770  451,475 
Other liabilities:          
Acceptances outstanding 26,055  28,504  25,826  25,576  30,984 
Lease liability 22,604  22,605  23,969  24,029  22,269 
GNMA buy-back option program liability (22) 41,801  (a) 19,008  18,510  19,401  18,227 
Deferred tax liability, net
 57,503  33,873  22,876  22,444  — 
Accrued expenses and other liabilities 115,808  121,402  103,361  96,584  97,167 
Total liabilities 10,143,250  10,031,383  9,943,582  10,150,973  9,161,675 
Stockholders' equity:
Common stock 59,885  59,885  59,885  59,885  59,885 
Additional paid-in capital 639,487  637,895  636,208  638,667  637,389 
Legal surplus 164,990  160,560  155,732  150,967  146,774 
Retained earnings  737,815  706,807  672,455  639,324  607,466 
Treasury stock, at cost (251,055) (250,951) (226,896) (228,350) (228,374)
Accumulated other comprehensive loss, net (32,990) (86,494) (81,731) (67,013) (127,677)
Total stockholders' equity 1,318,132  1,227,702  1,215,653  1,193,480  1,095,463 
Total liabilities and stockholders' equity $ 11,461,382  $ 11,259,085  $ 11,159,235  $ 11,344,453  $ 10,257,138 

(a)Refer to “(b)” in Table 1-1.
6

OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Non-PCD:
Mortgage, excluding GNMA buy-back option program $ 577,320  $ 581,023  $ 591,429  $ 609,846  $ 630,187 
Mortgage GNMA buy-back option program (22) 41,801  (a) 19,008  18,510  19,401  18,227 
Commercial PR 2,318,964  2,291,753  2,178,748  2,186,228  1,985,535 
Commercial US 680,388  662,026  740,665  755,228  707,593 
Consumer 663,748  643,572  627,436  619,894  612,623 
Auto 2,483,611  2,427,089  2,339,836  2,272,530  2,208,993 
6,765,832  6,624,471  6,496,624  6,463,127  6,163,158 
Less:  Allowance for credit losses (155,133) (150,849) (148,767) (152,610) (148,210)
Total non-PCD loans held for investment, net 6,610,699  6,473,622  6,347,857  6,310,517  6,014,948 
PCD:
Mortgage 864,491  885,096  909,106  933,362  955,596 
Commercial PR 119,029  128,584  132,035  135,447  139,857 
Consumer 560  605  544  552  572 
Auto 664  951  1,358  1,891  2,552 
984,744  1,015,236  1,043,043  1,071,252  1,098,577 
Less:  Allowance for credit losses (6,367) (6,452) (7,796) (8,496) (9,319)
Total PCD loans held for investment, net 978,377  1,008,784  1,035,247  1,062,756  1,089,258 
Total loans held for investment 7,589,076  7,482,406  7,383,104  7,373,273  7,104,206 
Mortgage loans held for sale 10,908  8,375  9,370  —  564 
Other loans held for sale 4,716  12,361  18,904  28,345  25,282 
Total loans, net $ 7,604,700  $ 7,503,142  $ 7,411,378  $ 7,401,618  $ 7,130,052 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program $ 1,441,811  $ 1,466,119  $ 1,500,535  $ 1,543,208  $ 1,585,783 
Mortgage GNMA buy-back option program (22) 41,801  (a) 19,008  18,510  19,401  18,227 
Commercial PR 2,437,993  2,420,337  2,310,783  2,321,675  2,125,392 
Commercial US 680,388  662,026  740,665  755,228  707,593 
Consumer 664,308  644,177  627,980  620,446  613,195 
Auto 2,484,275  2,428,040  2,341,194  2,274,421  2,211,545 
7,750,576  7,639,707  7,539,667  7,534,379  7,261,735 
Less:  Allowance for credit losses (161,500) (157,301) (156,563) (161,106) (157,529)
Total loans held for investment, net 7,589,076  7,482,406  7,383,104  7,373,273  7,104,206 
Mortgage loans held for sale 10,908  8,375  9,370  —  564 
Other loans held for sale 4,716  12,361  18,904  28,345  25,282 
Total loans, net $ 7,604,700  $ 7,503,142  $ 7,411,378  $ 7,401,618  $ 7,130,052 
(a)Refer to “(b)” in Table 1-1.
7

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
    Quarter Ended Nine-month period ended
(Dollars in thousands) (unaudited)
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
September 30, 2024
September 30, 2023
Loan production (13)
Mortgage   $ 37,091  $ 38,501  $ 32,180  $ 33,332  $ 33,346  $ 107,772  $ 99,622 
Commercial PR   149,856  192,122  186,412  285,517  150,105  528,390  464,151 
Commercial US   67,133  27,402  17,106  57,442  70,311  111,641  306,202 
Consumer   86,575  80,348  68,591  63,785  76,465  235,514  249,811 
Auto   231,573  250,638  232,314  223,780  237,290  714,525  695,898 
Total   $ 572,228  $ 589,011  $ 536,603  $ 663,856  $ 567,517  $ 1,697,842  $ 1,815,684 
8

OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2024 Q3
2024 Q2
2024 Q1
2023 Q4
2023 Q3
(Dollars in thousands) (unaudited) Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Yield/
Rate
Interest earning assets:
Cash equivalents $ 630,836  $ 8,362  5.27  % $ 656,728  $ 8,735  5.35  % $ 600,291  $ 7,996  5.36  % $ 517,025  $ 6,906  5.30  % $ 680,864  $ 9,025  5.26  %
Investment securities 2,572,033  26,258  4.08  % 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  %
Loans held for investment
Non-PCD loans 6,634,043  139,358  8.36  % 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  %
PCD loans 1,000,468  15,052  6.02  % 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  %
Total loans 7,634,511  154,410  8.05  % 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  %
Total interest-earning assets $ 10,837,380  $ 189,030  6.94  % $ 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  %
Interest bearing liabilities:                    
Deposits                    
NOW accounts $ 3,395,425  $ 20,013  2.34  % $ 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  %
Savings accounts 2,009,028  4,777  0.95  % 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  %
Time deposits 1,616,946  12,202  3.00  % 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  %
Brokered deposits 21,068  221  4.17  % 1,566  21  5.28  % 58,737  803  5.50  % 142,718  1,980  5.50  % 2,400  32  5.30  %
  7,042,467  37,213  2.10  % 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  %
Non-interest bearing deposit accounts 2,567,353  —  —  2,578,216  —  —  2,536,320  —  —  2,551,318  —  —  2,581,887  —  — 
Fair value premium and core deposit intangible amortization —  1,131  —  —  1,131  —  —  1,132  —  —  1,321  —  —  1,321  — 
Total deposits 9,609,820  38,344  1.59  % 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  %
Borrowings
Securities sold under agreements to repurchase —  —  —  % —  —  —  % —  —  —  % 183,858  2,578  5.56  % 52,365  728  5.52  %
Advances from FHLB and other borrowings 241,062  2,811  4.64  % 219,903  2,521  4.61  % 220,773  2,532  4.61  % 275,457  3,346  4.82  % 211,616  2,374  4.45  %
Total borrowings 241,062  2,811  4.64  % 219,903  2,521  4.61  % 220,773  2,532  4.61  % 459,315  5,924  5.12  % 263,981  3,102  4.66  %
Total interest-bearing liabilities $ 9,850,882  $ 41,155  1.66  % $ 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  %
Interest rate spread   $ 147,875  5.28  %   $ 147,325  5.36  %   $ 144,102  5.26  %   $ 143,542  5.51  %   $ 141,787  5.71  %
Net interest margin     5.43  %     5.51  %     5.40  %     5.62  %     5.80  %
Core deposits: (Non-GAAP)                              
NOW accounts $ 3,395,425  $ 20,013  2.34  % $ 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  %
Savings accounts 2,009,028  4,777  0.95  % 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  %
Time deposits 1,616,946  12,202  3.00  % 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  %
  7,021,399  36,992  2.10  % 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  %
Non-interest bearing deposit accounts 2,567,353  —  —  2,578,216  —  —  2,536,320  —  —  2,551,318  —  —  2,581,887  —  — 
Total core deposits $ 9,588,752  $ 36,992  1.53  % $ 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  %
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings
 $ 241,062  $ 2,811  4.64  % $ 219,903  $ 2,521  4.61  % $ 220,773  $ 2,532  4.61  % $ 459,315  $ 5,924  5.12  % $ 263,981  $ 3,102  4.66  %
Brokered deposits
 21,068  221  4.17  % 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
 $ 262,130  $ 3,032  4.60  % $ 221,469  $ 2,542  4.62  % $ 279,510  $ 3,335  4.80  % $ 602,033  $ 7,904  5.21  % $ 266,381  $ 3,134  4.67  %
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 $ 629,423  $ 25,093  5.33  % $ 662,813  $ 24,499  4.94  %
Investment securities 2,553,090  76,760  4.01  % 1,855,120  42,214  3.03  %
Loans held for investment
Non-PCD loans 6,562,504  410,071  8.35  % 5,860,662  350,876  8.00  %
PCD loans 1,033,861  48,190  6.21  % 1,160,794  55,092  6.33  %
Total loans 7,596,365  458,261  8.06  % 7,021,456  405,968  7.73  %
Total interest-earning assets $ 10,778,878  $ 560,114  6.94  % $ 9,539,389  $ 472,681  6.62  %
Interest bearing liabilities:
Deposits
NOW accounts $ 3,438,649  $ 61,490  2.39  % $ 2,466,113  $ 16,160  0.88  %
Savings accounts 2,024,127  13,782  0.91  % 2,238,866  12,742  0.76  %
Time deposits 1,550,420  33,235  2.86  % 1,273,928  16,328  1.71  %
Brokered deposits 27,102  1,045  5.15  % 4,181  40  1.27  %
7,040,298  109,552  2.08  % 5,983,088  45,270  1.01  %
Non-interest bearing deposit accounts 2,560,654  —  —  % 2,603,735  —  —  %
Fair value premium and core deposit intangible amortization —  3,396  —  —  3,962  — 
Total deposits 9,600,952  112,948  1.57  % 8,586,823  49,232  0.77  %
Borrowings
Securities sold under agreements to repurchase —  —  —  % 17,647  728  5.52  %
Advances from FHLB and other borrowings 227,296  7,864  4.62  % 167,887  5,393  4.29  %
Total borrowings 227,296  7,864  4.62  % 185,534  6,121  4.41  %
Total interest-bearing liabilities $ 9,828,248  $ 120,812  1.64  % $ 8,772,357  $ 55,353  0.84  %
Interest rate spread $ 439,302  5.30  % $ 417,328  5.78  %
Net interest margin   5.44  % 5.85  %
Core deposits: (Non-GAAP)
NOW accounts $ 3,438,649  $ 61,490  2.39  % $ 2,466,113  $ 16,160  0.88  %
Savings accounts 2,024,127  13,782  0.91  % 2,238,866  12,742  0.76  %
Time deposits 1,550,420  33,235  2.86  % 1,273,928  16,328  1.71  %
7,013,196  108,507  2.07  % 5,978,907  45,230  1.01  %
Non-interest bearing deposit accounts 2,560,654  —  —  % 2,603,735  —  —  %
Total core deposits $ 9,573,850  $ 108,507  1.51  % $ 8,582,642  $ 45,230  0.70  %
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings
 $ 227,296  $ 7,864  4.62  % $ 185,534  $ 6,121  4.41  %
Brokered deposits
 27,102  1,045  5.15  % 4,181  40  1.27  %
Total borrowings and brokered deposits
 $ 254,398  279,510  $ 8,909  4.68  % $ 189,715  150,746  $ 6,161  3,027  4.34  %
10

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
2024 2024 2024 2023 2023
(Dollars in thousands) (unaudited) Q3 Q2 Q1 Q4 Q3
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs $ 37  $ 1  $ 64  $ 150  $ 218 
Recoveries (72) (540) (267) (483) (185)
Total mortgage (35) (539) (203) (333) 33 
Commercial PR:
Charge-offs 139  160  3,567  377  1,404 
Recoveries (1,455) (111) (52) (114) (156)
Total commercial PR (1,316) 49  3,515  263  1,248 
Commercial US:
Charge-offs —  1,574  1,749  689  6,850 
Recoveries (24) (45) —  (23) (18)
Total commercial US (24) 1,529  1,749  666  6,832 
Consumer:          
Charge-offs 8,863  8,180  7,981  6,799  5,894 
Recoveries (830) (851) (693) (650) (655)
Total consumer 8,033  7,329  7,288  6,149  5,239 
Auto:          
Charge-offs 16,371  12,559  14,218  14,658  10,458 
Recoveries (6,300) (5,926) (5,971) (4,982) (5,193)
Total auto 10,071  6,633  8,247  9,676  5,265 
Total $ 16,729  $ 15,001  $ 20,596  $ 16,421  $ 18,617 
PCD
Mortgage:
Charge-offs $ 66  $ 29  $ 83  $ 94  $ 148 
Recoveries (250) (93) (638) (111) (80)
Total mortgage (184) (64) (555) (17) 68 
Commercial PR:          
Charge-offs 663  265  —  —  690 
Recoveries (70) (158) (157) (315) (494)
Total commercial PR 593  107  (157) (315) 196 
Consumer:          
Charge-offs —  —  —  244  39 
Recoveries (19) (7) (23) (19) (23)
Total consumer (19) (7) (23) 225  16 
Auto:          
Charge-offs 9  6  9  12  37 
Recoveries (25) (30) (58) (44) (98)
Total auto (16) (24) (49) (32) (61)
Total $ 374  $ 12  $ (784) $ (139) $ 219 
Total Net Charge-offs $ 17,103  $ 15,013  $ 19,812  $ 16,282  $ 18,836 
Net Charge-off Rates          
Mortgage -0.06  % -0.16  % -0.20  % -0.09  % 0.03  %
Commercial PR -0.12  % 0.03  % 0.58  % -0.01  % 0.27  %
Commercial US -0.01  % 0.85  % 0.92  % 0.36  % 3.96  %
Consumer 4.70  % 4.42  % 4.45  % 3.95  % 3.33  %
Auto 1.64  % 1.11  % 1.42  % 1.72  % 0.96  %
Total 0.90  % 0.79  % 1.05  % 0.88  % 1.05  %
Average Loans Held For Investment          
Mortgage $ 1,446,855  $ 1,479,583  $ 1,511,281  $ 1,562,135  $ 1,576,637 
Commercial PR 2,393,891  2,363,831  2,312,561  2,230,342  2,122,169 
Commercial US 658,908  716,989  756,409  736,640  690,105 
Consumer 681,391  663,315  652,843  644,834  630,492 
Auto 2,453,466  2,389,589  2,308,663  2,243,133  2,171,840 
Total $ 7,634,511  $ 7,613,307  $ 7,541,757  $ 7,417,084  $ 7,191,243 
11



OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
2024 2024 2024 2023 2023
(Dollars in thousands) (unaudited) Q3 Q2 Q1 Q4 Q3
Early Delinquency (30 - 89 days past due)          
Mortgage $ 10,822  $ 12,767  $ 13,080  $ 15,703  $ 14,380 
Commercial 2,426  7,781  6,128  3,653  5,666 
Consumer 13,485  13,102  10,901  11,366  10,160 
Auto 161,025  152,817  126,704  147,681  139,278 
Total  $ 187,758  $ 186,467  $ 156,813  $ 178,403  $ 169,484 
Early Delinquency Rates (30 - 89 days past due)          
Mortgage 1.75  % 2.13  % 2.14  % 2.50  % 2.22  %
Commercial 0.08  % 0.26  % 0.21  % 0.12  % 0.21  %
Consumer 2.03  % 2.04  % 1.74  % 1.83  % 1.66  %
Auto 6.48  % 6.30  % 5.42  % 6.50  % 6.31  %
Total 2.78  % 2.81  % 2.41  % 2.76  % 2.75  %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation $ 22,954  $ 23,443  $ 25,985  $ 27,859  $ 30,661 
GNMA's buy-back option program (22) 41,801  (a) 19,008  18,509  19,401  18,227 
Total mortgage 64,755  (a) 42,451  44,494  47,260  48,888 
Commercial 17,460  17,703  14,171  14,298  15,109 
Consumer 17,094  16,405  14,760  14,742  13,422 
Auto 178,003  169,506  141,220  166,737  155,579 
Total $ 277,312  (a) $ 246,065  $ 214,645  $ 243,037  $ 232,998 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation 3.71  % 3.91  % 4.26  % 4.43  % 4.73  %
GNMA's buy-back option program (22) 6.75  % (a) 3.17  % 3.03  % 3.08  % 2.81  %
Total mortgage 10.46  % (a) 7.07  % 7.29  % 7.51  % 7.54  %
Commercial 0.58  % 0.60  % 0.49  % 0.49  % 0.56  %
Consumer 2.58  % 2.55  % 2.35  % 2.38  % 2.19  %
Auto 7.17  % 6.98  % 6.04  % 7.34  % 7.04  %
Total 4.10  % (a) 3.71  % 3.30  % 3.76  % 3.78  %
Nonperforming Assets (14)
Mortgage $ 18,723  $ 17,325  $ 19,044  $ 20,007  $ 25,354 
Commercial 36,099  34,477  33,794  36,096  36,649 
Consumer 3,627  3,329  3,893  3,376  3,359 
Auto 16,978  16,689  14,516  19,056  16,301 
Total nonperforming loans 75,427  71,820  71,247  78,535  81,663 
Foreclosed real estate 4,419  6,526  10,850  10,780  9,555 
Other repossessed assets 6,969  5,713  6,844  4,032  4,432 
Total nonperforming assets $ 86,815  $ 84,059  $ 88,941  $ 93,347  $ 95,650 
Nonperforming Loan Rates          
Mortgage 3.02  % 2.89  % 3.12  % 3.18  % 3.91  %
Commercial 1.20  % 1.17  % 1.16  % 1.23  % 1.36  %
Consumer 0.55  % 0.52  % 0.62  % 0.54  % 0.55  %
Auto 0.68  % 0.69  % 0.62  % 0.84  % 0.74  %
Total loans 1.11  % 1.08  % 1.10  % 1.22  % 1.33  %
(a)Refer to “(b)” in Table 1-1.
12

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
  2024 2024 2024 2023 2023
(Dollars in thousands) (unaudited)   Q3 Q2 Q1 Q4 Q3
Nonperforming PCD Loans (14)
Mortgage   $ 241  $ 244  $ 247  $ 250  $ 253 
Commercial   3,920  4,748  5,969  6,424  6,688 
Consumer   —  —  —  —  7 
Total nonperforming loans   $ 4,161  $ 4,992  $ 6,216  $ 6,674  $ 6,948 
Nonperforming PCD Loan Rates            
Mortgage   0.03  % 0.03  % 0.03  % 0.03  % 0.03  %
Commercial   3.29  % 3.69  % 4.52  % 4.74  % 4.78  %
Consumer   0.00  % 0.00  % 0.00  % 0.00  % 1.22  %
Total   0.42  % 0.49  % 0.60  % 0.62  % 0.63  %
Total PCD Loans Held for Investment          
Mortgage   $ 864,491  $ 885,096  $ 909,106  $ 933,362  $ 955,596 
Commercial   119,029  128,584  132,035  135,447  139,857 
Consumer   560  605  544  552  572 
Auto 664  951  1,358  1,891  2,552 
Total loans   $ 984,744  $ 1,015,236  $ 1,043,043  $ 1,071,252  $ 1,098,577 
  2024 2024 2024 2023 2023
(Dollars in thousands) (unaudited)   Q3 Q2 Q1 Q4 Q3
Total Nonperforming Loans (14)          
Mortgage   $ 18,964  $ 17,569  $ 19,291  $ 20,257  $ 25,607 
Commercial   40,019  39,225  39,763  42,520  43,337 
Consumer   3,627  3,329  3,893  3,376  3,366 
Auto   16,978  16,689  14,516  19,056  16,301 
Total nonperforming loans   $ 79,588  $ 76,812  $ 77,463  $ 85,209  $ 88,611 
Total Nonperforming Loan Rates  
Mortgage   1.28  % 1.18  % 1.27  % 1.30  % 1.60  %
Commercial   1.28  % 1.27  % 1.30  % 1.38  % 1.53  %
Consumer   0.55  % 0.52  % 0.62  % 0.54  % 0.55  %
Auto   0.68  % 0.69  % 0.62  % 0.84  % 0.74  %
Total   1.03  % 1.01  % 1.03  % 1.13  % 1.22  %
Total Loans Held for Investment          
Mortgage   $ 1,483,612  $ 1,485,127  $ 1,519,045  $ 1,562,609  $ 1,604,010 
Commercial   3,118,381  3,082,363  3,051,448  3,076,903  2,832,985 
Consumer   664,308  644,177  627,980  620,446  613,195 
Auto   2,484,275  2,428,040  2,341,194  2,274,421  2,211,545 
Total loans   $ 7,750,576  $ 7,639,707  $ 7,539,667  $ 7,534,379  $ 7,261,735 


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OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended September 30, 2024
(Dollars in thousands) (unaudited) Mortgage Commercial Consumer Auto Total
Allowance for credit losses Non-PCD:          
Balance at beginning of period $ 6,886  $ 33,809  $ 29,432  $ 80,722  $ 150,849 
(Recapture of) provision for credit losses (31) 928  9,904  10,212  21,013 
Charge-offs (37) (139) (8,863) (16,371) (25,410)
Recoveries 72  1,479  830  6,300  8,681 
Balance at end of period $ 6,890  $ 36,077  $ 31,303  $ 80,863  $ 155,133 
Allowance for credit losses PCD:
Balance at beginning of period $ 5,642  $ 789  $ 8  $ 13  $ 6,452 
(Recapture of) provision for credit losses (424) 751  (16) (22) 289 
Charge-offs (66) (663) —  (9) (738)
Recoveries 250  70  19  25  364 
Balance at end of period $ 5,402  $ 947  $ 11  $ 7  $ 6,367 
Allowance for credit losses summary:
Balance at beginning of period $ 12,528  $ 34,598  $ 29,440  $ 80,735  $ 157,301 
(Recapture of) provision for credit losses (455) 1,679  9,888  10,190  21,302 
Charge-offs (103) (802) (8,863) (16,380) (26,148)
Recoveries 322  1,549  849  6,325  9,045 
Balance at end of period $ 12,292  $ 37,024  $ 31,314  $ 80,870  $ 161,500 
Allowance coverage ratio 0.83  % 1.19  % 4.71  % 3.26  % 2.08  %


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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 2024 2023 2023
(Dollars in thousands) (unaudited) Q3 Q2 Q1 Q4 Q3
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity $ 1,318,132  $ 1,227,702  $ 1,215,653  $ 1,193,480  $ 1,095,463 
Less:  Intangible assets (100,501) (101,979) (103,457) (104,935) (106,660)
Tangible common equity $ 1,217,631  $ 1,125,723 $ 1,112,196 $ 1,088,545 $ 988,803
         
Common shares outstanding at end of period 46,559  46,562  47,217  47,065  47,058 
Tangible book value per common share (Non-GAAP) $ 26.15  $ 24.18  $ 23.55  $ 23.13  $ 21.01 
Total Assets to Tangible Assets          
Total assets   $ 11,461,382  $ 11,259,085  $ 11,159,235  $ 11,344,453  $ 10,257,138 
Less:  Intangible assets (100,501) (101,979) (103,457) (104,935) (106,660)
Tangible assets (Non-GAAP) $ 11,360,881  $ 11,157,106  $ 11,055,778  $ 11,239,518  $ 10,150,478 
Non-GAAP TCE Ratio          
Tangible common equity $ 1,217,631  $ 1,125,723 $ 1,112,196 $ 1,088,545 $ 988,803
Tangible assets 11,360,881  11,157,106  11,055,778  11,239,518  10,150,478 
TCE ratio 10.72  % 10.09  % 10.06  % 9.68  % 9.74  %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity $ 1,280,760  $ 1,223,669  $ 1,213,469  $ 1,128,747  $ 1,127,602 
Less:  Average intangible assets (101,042) (102,499) (103,988) (105,560) (107,291)
Average tangible common equity $ 1,179,718  $ 1,121,170 $ 1,109,481 $ 1,023,187 $ 1,020,311



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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   2024 2023 2023
(Dollars in thousands) (unaudited) Q3 Q2   Q1 Q4 Q3
Regulatory Capital Metrics            
Common equity Tier 1 capital $ 1,260,944 $ 1,223,031 $ 1,205,231 $ 1,174,205 $ 1,124,599
Tier 1 capital 1,260,944 1,223,031 1,205,231 1,174,205 1,124,599
Total risk-based capital (15) 1,371,041 1,330,474 1,309,893 1,278,537 1,224,963
Risk-weighted assets 8,772,207 8,561,549 8,338,168 8,317,802 8,000,711
Regulatory Capital Ratios
Common equity Tier 1 capital ratio (16) 14.37  % 14.29  % 14.45  % 14.12  % 14.06  %
Tier 1 risk-based capital ratio (17) 14.37  % 14.29  % 14.45  % 14.12  % 14.06  %
Total risk-based capital ratio (18) 15.63  % 15.54  % 15.71  % 15.37  % 15.31  %
Leverage ratio (19) 11.12  % 10.86  % 10.76  % 11.03  % 11.03  %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity $ 1,318,132 $ 1,227,702  $ 1,215,653  $ 1,193,480  $ 1,095,463 
Plus: CECL transition adjustment (20) 6,852 6,852 6,852 13,704 13,704
Plus: Unrealized losses on available-for-sale securities, net of
                    income tax		 32,990 86,494 81,731 67,013 127,677
Total adjusted stockholders’equity 1,357,974 1,321,048 1,304,236 1,274,197 1,236,844
Less: Disallowed goodwill (84,241) (84,241) (84,241) (84,241) (84,241)
  Disallowed other intangible assets, net (12,789) (13,776) (14,764) (15,751) (16,883)
  Disallowed deferred tax assets, net — — — — (11,121)
Common equity Tier 1 capital and Tier 1 capital 1,260,944 1,223,031 1,205,231 1,174,205 1,124,599
Plus Tier 2 capital:  Qualifying allowance for credit losses 110,097 107,443 104,662 104,332 100,364
Total risk-based capital $ 1,371,041 $ 1,330,474  $ 1,309,893  $ 1,278,537  $ 1,224,963 



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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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