EX-99 2 ofg-20221qxexx99.htm EX-99 Document

Exhibit 99
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OFG Bancorp Reports 1Q22 Results
SAN JUAN, Puerto Rico, April 21, 2022 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the first quarter ended March 31, 2022. EPS diluted was $0.76 compared to $0.66 in 4Q21 and $0.56 in 1Q21. Total core revenues were $136.4 million compared to $141.0 million in 4Q21 and $127.7 million in 1Q21.
CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “We had a great start to 2022. During the first quarter, our core business demonstrated strong momentum. We experienced solid loan and deposit growth, NIM expansion, and lower provision. Total assets reached $10.2 billion, expenses remained in line, and we repurchased $33.5 million of shares as part of our $100 million buyback program. The Puerto Rico economic environment continues to trend positively, while we continue to focus on improving the customer experience and growing together with our clients and the communities we serve. During 1Q22, for example, we introduced fully proprietary digital processes to apply for consumer loans and to open and contribute into our IRA fund.”
1Q22 Highlights

Net Interest Income was $105.2 million compared to $104.2 million in 4Q21 and $98.2 million in 1Q21. NIM expanded to 4.47% from 4.18% in 4Q21 primarily due to increased volume of loans and investments.

Interest Income totaled $112.9 million compared to $112.6 million in 4Q21 and $111.0 million in 1Q21. Compared to 4Q21, 1Q22 interest income benefited from higher yields on higher average balances of loans and investment securities, and higher average yields on cash, which was offset by two fewer days that reduced Interest Income by $1.7 million.

Total Interest Expense of $7.8 million compared to $8.4 million in 4Q21 and $12.8 million in 1Q21. Compared to 4Q21, 1Q22 interest expense reflected lower average balances and costs of deposits and borrowings, partially offset by $0.4 million to expense unamortized issuance costs as a result of the early termination of $36.1 million in 3.23% variable rate subordinated notes.

Banking and Financial Service Revenues of $31.2 million compared to $29.5 million in 1Q21 and $36.8 million in 4Q21, which included $4.3 million in annual insurance commissions. 1Q22 reflected higher levels of banking service, mortgage banking, and wealth management revenues compared to 1Q21.

Pre-Provision Net Revenues totaled $55.6 million compared to $55.8 million in 4Q21 and $50.9 million in 1Q21.

Provision for Credit Losses of $1.6 million compared to $7.2 million in 4Q21 and $6.3 million in 1Q21. 1Q22 included a provision of $3.7 million related to growth of loan balances and an increase of $4.2 million for a commercial loan previously placed in non-accrual, partially offset by a $5.7 million reduction in qualitative adjustment due to improved economic conditions. 4Q21 included a provision of $9.7 million related to transferring past due loans to held for sale.


Credit Quality: Net charge off rate and early and total delinquency rates fell to 0.04%, 1.97% and 3.17%, respectively, compared to the previous and year ago quarters. 1Q22 NCOs included a $2.8 million recovery from an acquired PCD loan and a $1.1 million recovery as part of the final settlement of the non-performing mortgage loans sale contracted for in 4Q21.

Non-Interest Expenses totaled $81.2 million compared to $86.5 million in 4Q21 and $77.7 million in 1Q21. The $5.3 million reduction from 4Q21 primarily reflected lower legal reserve provisions ($2.4 million) and lower combination of other items (totaling $2.1 million), including operational losses, technology related expenses, and training costs.

Loans Held for Investment (EOP) were $6.55 billion compared to $6.40 billion in 4Q21 and $6.59 billion in 1Q21. Loans grew $145.4 million from 4Q21, reflecting increases in commercial loans (net of PPP forgiveness) as well as increases in consumer and auto loans.

New Loan Origination of $623.2 million compared to $632.7 million in 4Q21 and $527.6 million in 1Q21, which included $126.3 million of PPP loans. 1Q22 reflected continued, high levels of auto lending, commercial lending in Puerto Rico and US, and increased demand for consumer lending.

Customer Deposits (EOP) totaled $8.97 billion compared to $8.59 billion in 4Q21 and $8.72 billion in 1Q21. Core deposits grew $375.1 million from 4Q21, reflecting increases in commercial and retail accounts.

Capital: CET1 ratio was 13.24% compared to 13.77% in 4Q21 and 13.56% in 1Q21. Tangible book value per share was $18.90 compared to $19.08 in 4Q21 and $17.39 in 1Q21. The decline in CET1 and TBVPS from 4Q21 reflected the repurchase of 1.2 million shares of common stock and reduction in other comprehensive income, partially offset by an increase in retained earnings.
Conference Call, Financial Supplement & Presentation
A conference call to discuss 1Q22 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 459-5346 or (203) 518-9544. Conference ID: OFGQ122. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter.
OFG’s Financial Supplement, with full financial tables for the quarter ended March 31, 2022, and the 1Q22 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.
Forward Looking Statements
The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements.


Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, and other natural disasters; (iv) competition in the financial services industry; and (v) the severity, magnitude and duration of the COVID-19 pandemic, and its impact on our operations, personnel, and customers.
For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2021, 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 58th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at www.ofgbancorp.com. 
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Contacts
Puerto Rico & USVI: Idalis Montalvo (idalis.montalvo@orientalbank.com) at (787) 777-2847
US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder (sanreder@ofgbancorp.com) at (212) 532-3232


OFG Bancorp
Financial Supplement
The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our March 31, 2022 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.


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

2022
2021
2021
2021
2021
(Dollars in thousands, except per share data) (unaudited)
Q1
Q4
Q3
Q2
Q1
Statement of Operations
Net interest income $105,194$104,199$102,701$102,251$98,198
Non-interest income, net (core)(2)31,20136,75132,01631,05429,458
Total core revenues(3)136,395140,950(c)134,717133,305127,656
Non-interest expense 81,15586,49078,92482,67677,666
Pre-provision net revenues(23)55,64555,80956,29851,77250,945
Total provision for (recapture of) credit losses 1,5517,199(d)(4,997)(8,305)6,324
Net income before income taxes 54,09448,61061,29560,07744,621
Income tax expense 16,57315,33019,62419,25014,248
Net income available to common stockholders 37,52133,28041,67140,82729,118
Common Share Statistics      
Earnings per common share - basic(4)$0.77$0.67$0.82$0.79$0.57
Earnings per common share - diluted(5)$0.76$0.66$0.81$0.78$0.56
Average common shares outstanding 48,968(a)49,746(a)51,063(a)51,63651,397
Average common shares outstanding and equivalents 49,484(a)50,299(a)51,516(a)52,04851,752
Cash dividends per common share $0.15(b)$0.12$0.12(b)$0.08$0.08
Book value per common share (period end) $21.37$21.54$21.08$20.59$19.90
Tangible book value per common share (period end)(6)$18.90$19.08$18.59$18.13$17.39
Balance Sheet (Average Balances)      
Loans(7)$6,519,119$6,452,128$6,465,874$6,598,569$6,635,908
Interest-earning assets 9,540,2669,897,0739,879,6879,726,9059,358,377
Total assets 10,113,75010,418,27410,492,50210,356,87910,004,047
Core deposits 8,808,5479,084,2829,103,2218,963,3368,535,678
Total deposits 8,819,9139,095,6489,114,5878,997,8428,581,633
Interest-bearing deposits 6,271,9366,435,2466,474,9776,392,2196,223,419
Borrowings 44,26275,97098,94399,950100,951
Stockholders' equity 1,066,278(a)1,066,764(a)1,068,618(a)(e)1,083,452(e)1,101,046
Common stockholders' equity 1,066,2781,066,7641,066,3611,046,8351,019,176
Performance Metrics      
Net interest margin(8)4.47 %4.18 %4.12 %4.22 %4.26 %
Return on average assets(9)1.48 %1.28 %1.59 %1.58 %1.21 %
Return on average tangible common stockholders' equity(10)15.88 %14.11 %17.72 %17.78 %13.11 %
Efficiency ratio(11)59.50 %61.36 %58.59 %62.02 %60.84 %
Full-time equivalent employees, period end 2,244 2,269 2,274 2,231 2,238 
Credit Quality Metrics(1)(22)     
Allowance for credit losses$157,075$155,937(d)$180,872$191,717$201,973
Allowance as a % of loans held for investment2.40 %2.44 %2.82 %2.95 %3.06 %
Net charge-offs$577$32,482(d)$6,051$2,118$9,105
Net charge-off rate(12)0.04 %2.01 %(d)0.37 %0.13 %0.55 %
Early delinquency rate (30 - 89 days past due)1.97 %2.34 %2.06 %1.86 %2.15 %
Total delinquency rate (30 days and over)3.17 %3.71 %3.82 %3.90 %4.65 %
Capital Ratios (period end) (Non-GAAP)(13)(21)
Leverage ratio9.54 %(a)9.69 %9.33 %(a)(e)9.84 %(e)10.48 %
Common equity Tier 1 capital ratio13.24 %(a)13.77 %13.52 %(a)13.95 %13.56 %
Tier 1 risk-based capital ratio13.24 %(a)14.27 %14.03 %(a)(e)14.70 %(e)15.28 %
Total risk-based capital ratio14.49 %(a)15.52 %15.28 %(a)(e)15.95 %(e)16.54 %
Tangible common equity ("TCE") ratio9.14 %(a)9.69 %8.86 %(a)9.06 %8.95 %
(a)During 1Q 2022, the Company announced a $100 million share buyback program and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(b)During 1Q 2022 and 3Q 2021, the Company increased its common stock dividend to $0.15 and $0.12 per share, respectively.
(c)During 4Q 2021, the Company recognized annual insurance contingent commissions amounting to $4.3 million.
(d)During 4Q 2021, the Company decided to sell past due loans and recognized $30.1 million in net charge-offs and an additional provision of $9.7 million.
(e)During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q 2021, the Company redeemed Series A and B Preferred Stock.
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OFG Bancorp (NYSE: OFG)
Table 2: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited) March 31, 2022December 31, 2021September 30,
2021		June 30,
2021		March 31,
2021
Interest income: 
Loans(1)
Non-PCD loans $86,631 $84,914 $85,028 $85,175 $82,930 
PCD loans 20,934 22,660 22,905 24,880 25,275 
Total interest income from loans 107,565 107,574 107,933 110,055 108,205 
Investment securities 5,384 5,036 4,202 3,402 2,771 
Total interest income 112,949 112,610 112,135 113,457 110,976 
Interest expense:
Deposits
Core deposits 7,033 7,830 8,681 10,436 11,861 
Brokered deposits 8 9 10 24 163 
Total deposits 7,041 7,839 8,691 10,460 12,024 
Borrowings 714 (a)572 743 746 754 
Total interest expense 7,755 8,411 9,434 11,206 12,778 
Net interest income 105,194 104,199 102,701 102,251 98,198 
Provision for (recapture of) credit losses, excluding PCD loans(1)8,399 (461)(2,351)(7,726)2,998 
(Recapture of) provision for credit losses on PCD loans(1)(6,848)7,660 (2,646)(579)3,326 
Total provision for (recapture of) credit losses 1,551 7,199 (b)(4,997)(8,305)6,324 
Net interest income after provision for credit losses 103,643 97,000 107,698 110,556 91,874 
Non-interest income:      
Banking service revenues 17,562 18,770 18,200 18,251 16,497 
Wealth management revenues 7,857 11,774 (c)7,619 8,263 7,388 
Mortgage banking activities 5,782 6,207 6,197 4,540 5,573 
Total banking and financial service revenues 31,201 36,751 32,016 31,054 29,458 
Other income, net 405 1,349 (d)505 1,143 955 
Total non-interest income, net 31,606 38,100 32,521 32,197 30,413 
Non-interest expense:
Compensation and employee benefits 34,768 34,160 33,745 32,919 32,618 
Occupancy, equipment and infrastructure costs 11,916 12,424 12,078 12,528 13,128 
General and administrative expenses 35,072 39,920 (e)34,041 35,370 (f)30,201 
Foreclosed real estate and other repossessed assets (income) expenses (1,482)(1,122)(2,163)328 (50)
COVID 19 expenses 881 1,108 1,223 1,531 1,769 
Total non-interest expense 81,155 86,490 78,924 82,676 77,666 
Income before income taxes 54,094 48,610 61,295 60,077 44,621 
Income tax expense 16,573 15,330 19,624 19,250 14,248 
Net income 37,521 33,280 41,671 40,827 30,373 
Less:  dividends on preferred stock — — — (1,255)
Net income available to common shareholders $37,521 $33,280 $41,671 $40,827 $29,118 
(a)During 1Q 2022, the Company redeemed all outstanding $36.1 million subordinated capital notes prior to maturity, and as a result, it wrote off $0.4 million in unamortized issuance costs.
(b)During 4Q 2021, the Company decided to sell past due loans and recognized an additional provision of $9.7 million.
(c)During 4Q 2021, the Company recognized annual insurance contingent commissions amounting to $4.3 million.
(d)During 4Q 2021, the Company recognized $2.3 million in other income from a warrant payment, partially offset by $1.5 million loss on early termination of FHLB advances.
(e)During 4Q 2021, the Company recognized $2.4 million for a legal reserve and to cover operational losses, and $2.0 million in technology enhancements.
(f)During 2Q 2021, the Company recognized a technology project write-down amounting $2.2 million.



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OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Cash and cash equivalents$1,855,729 $2,023,650 $2,755,691 $2,767,693 $2,409,416 
Investments:
Trading securities18 20 22 29 23 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities867,191 496,310 494,727 487,014 457,673 
US treasury notes10,763 10,825 10,875 10,910 10,946 
Other investment securities2,384 3,578 3,505 3,695 2,390 
Total investment securities available-for-sale880,338 510,713 509,107 501,619 471,009 
Mortgage-backed securities held-to-maturity, at amortized cost, no allowance for credit losses for any period359,806 367,507 375,214 125,138 126,767 
Equity securities18,556 17,578 17,930 16,709 13,790 
Total investments1,258,718 895,818 902,273 643,495 611,589 
Loans, net6,449,130 6,329,311 6,282,485 6,354,040 6,432,079 
Other assets:
Prepaid expenses56,513 60,856 65,003 61,678 58,348 
Deferred tax asset, net87,608 99,063 128,663 144,799 154,540 
Foreclosed real estate and repossessed properties17,922 16,984 15,433 16,818 18,366 
Premises and equipment, net97,403 92,124 86,981 85,993 83,756 
Goodwill86,069 86,069 86,069 86,069 86,069 
Right of use assets28,576 28,846 30,625 32,621 32,714 
Core deposit, customer relationship intangible and other intangibles33,947 36,093 38,545 40,995 43,445 
Servicing asset49,446 48,973 48,227 47,712 47,911 
Accounts receivable and other assets169,059 181,933 (a)166,870 179,900 175,109 
Total assets$10,190,120 $9,899,720 $10,606,865 $10,461,813 $10,153,342 
Deposits:
Demand deposits$5,504,640 $5,204,340 $5,531,124 $5,337,691 $4,889,759 
Savings accounts2,295,113 2,177,780 2,378,211 2,277,296 2,138,125 
Time deposits1,167,103 1,209,627 1,323,688 1,464,134 1,693,924 
Brokered deposits11,366 11,371 11,366 11,371 34,954 
Total deposits8,978,222 8,603,118 9,244,389 9,090,492 8,756,762 
Borrowings:     
Advances from FHLB and other borrowings28,035 28,488 (c)62,934 63,867 65,013 
Subordinated capital notes— (a)36,083 36,083 36,083 36,083 
Total borrowings28,035 64,571 99,017 99,950 101,096 
Other liabilities:     
Securities purchased but not yet received— — 31,565 — — 
Derivative liabilities191 804 1,136 1,293 1,465 
Acceptances outstanding29,858 35,329 24,371 27,703 24,389 
Lease liability30,287 30,498 32,167 34,052 34,017 
Accrued expenses and other liabilities83,492 96,240 120,555 128,326 127,190 
Total liabilities9,150,085 8,830,560 9,553,200 9,381,816 9,044,919 
Stockholders' equity:
Preferred stock— — — (d)24,000 (d)92,000 
Common stock59,885 59,885 59,885 59,885 59,885 
Additional paid-in capital633,796 637,061 635,808 626,995 622,935 
Legal surplus121,389 117,677 114,485 110,235 106,165 
Retained earnings 426,320 399,949 375,729 352,001 322,202 
Treasury stock, at cost(180,717)(b)(150,572)(b)(140,862)(b)(100,719)(100,994)
Accumulated other comprehensive income, net(20,638)5,160 8,620 7,600 6,230 
Total stockholders' equity1,040,035 1,069,160 1,053,665 1,079,997 1,108,423 
Total liabilities and stockholders' equity$10,190,120 $9,899,720 $10,606,865 $10,461,813 $10,153,342 
(a)During 1Q 2022, the Company redeemed all outstanding $36.1 million subordinated capital notes prior to maturity. At December 31, 2021, a $17.3 million payment was already in process and therefore included in other assets.
(b)During 1Q 2022, the Company announced a $100 million share buyback program and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(c)During 4Q2021, the Company repaid $33.3 million FHLB advances prior to maturity.
(d)During 2Q 2021 and 3Q 2021, the Company redeemed Series A and B Preferred Stock, and Series D Preferred Stock, respectively.
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OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Non-PCD:(1)
Mortgage$704,277 $718,848 (a)$751,389 $775,606 $814,433 
Commercial2,256,011 2,088,106 1,954,804 1,903,866 1,827,102 
Commercial Paycheck Protection Program (PPP Loans)(24)53,277 86,889 136,698 228,677 311,823 
Consumer454,959 408,759 373,672 366,037 371,702 
Auto1,732,859 1,693,029 1,667,113 1,618,788 1,565,473 
5,201,383 4,995,631 4,883,676 4,892,974 4,890,533 
Less:  Allowance for credit losses(137,344)(132,065)(a)(138,874)(148,314)(156,978)
Total non- PCD loans held for investment, net5,064,039 4,863,566 4,744,802 4,744,660 4,733,555 
PCD:(1)
Mortgage1,144,364 1,188,423 (a)1,270,854 1,324,274 1,406,044 
Commercial190,626 204,335 (a)239,554 260,627 272,793 
Consumer833 916 959 981 1,120 
Auto10,765 13,281 15,820 19,236 23,036 
1,346,588 1,406,955 1,527,187 1,605,118 1,702,993 
Less:  Allowance for credit losses(1)(19,731)(23,872)(a)(41,998)(43,403)(44,995)
Total PCD loans held for investment, net1,326,857 1,383,083 1,485,189 1,561,715 1,657,998 
Total loans held for investment6,390,896 6,246,649 6,229,991 6,306,375 6,391,553 
Mortgage loans held for sale26,761 (b)51,096 (b)35,031 37,885 38,220 
Other loans held for sale31,473 31,566 (b)17,463 9,780 2,306 
Total loans, net$6,449,130 $6,329,311 $6,282,485 $6,354,040 $6,432,079 
Loan Portfolio Summary:
Loans held for investment:
Mortgage$1,848,641 $1,907,271 $2,022,243 $2,099,880 $2,220,477 
Commercial2,446,637 2,292,441 2,194,358 2,164,493 2,099,895 
Commercial Paycheck Protection Program (PPP Loans)(24)53,277 86,889 136,698 228,677 311,823 
Consumer455,792 409,675 374,631 367,018 372,822 
Auto1,743,624 1,706,310 1,682,933 1,638,024 1,588,509 
6,547,971 6,402,586 6,410,863 6,498,092 6,593,526 
Less:  Allowance for credit losses(157,075)(155,937)(a)(180,872)(191,717)(201,973)
Total loans held for investment, net6,390,896 6,246,649 6,229,991 6,306,375 6,391,553 
Mortgage loans held for sale26,761 (b)51,096 (b)35,031 37,885 38,220 
Other loans held for sale31,473 31,566 (b)17,463 9,780 2,306 
Total loans, net$6,449,130 $6,329,311 $6,282,485 $6,354,040 $6,432,079 
(a)During 4Q 2021, the Company transferred to held for sale past due residential mortgage loans with reporting balance of $39.8 million and a PCD commercial loan with reporting balance of $20.9 million, and recognized $30.1 million in net charge-offs and an additional provision of $9.7 million, decreasing the allowance for credit losses by $20.4 million.
(b)At December 31, 2021, the mortgage loans transferred to held for sale referred in (a) had a reporting balance of $22.3 million and the commercial loan had a reporting balance of $9.7 million. During 1Q 2022, the Company sold the past due residential mortgage loans.


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OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
  Quarter Ended
(Dollars in thousands) (unaudited)
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Loan production(14)
Mortgage 63,883 $78,991 $85,535 $103,837 $95,851 
Commercial 175,531 238,356 154,146 218,425 83,820 
Commercial PPP Loans — — 16 32,712 126,266 
Commercial US Loans 108,390 79,264 100,066 109,522 44,841 
Consumer 97,108 80,688 50,630 38,038 27,492 
Auto 178,288 155,390 165,854 171,104 149,357 
Total $623,200 $632,689 $556,247 $673,638 $527,627 
6

OFG Bancorp (NYSE: OFG)
Table 5: Average Balances, Net Interest Income and Net Interest Margin
2022 Q1
2021 Q4
2021 Q3
2021 Q2
2021 Q1
(Dollars in thousands) (unaudited)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest earning assets:
Cash equivalents$2,072,112 $929 0.18 %$2,553,118 $944 0.15 %$2,699,144 $986 0.14 %$2,519,406 $706 0.11 %$2,204,431 $595 0.11 %
Investment securities949,035 4,455 1.88 %891,827 4,092 1.84 %714,669 3,216 1.80 %608,930 2,696 1.77 %518,038 2,176 1.68 %
Loans held for investment
(1)
               
Non-PCD loans5,113,715 86,631 6.87 %4,953,279 84,914 6.80 %4,899,312 85,028 6.89 %4,937,602 85,175 6.92 %4,893,874 82,930 6.87 %
PCD loans1,405,404 20,934 5.96 %1,498,849 22,660 6.05 %1,566,562 22,905 5.85 %1,660,967 24,880 5.99 %1,742,034 25,275 5.80 %
Total loans6,519,119 107,565 6.69 %6,452,128 107,574 6.62 %6,465,874 107,933 6.62 %6,598,569 110,055 6.69 %6,635,908 108,205 6.61 %
Total interest-earning assets$9,540,266 $112,949 4.80 %$9,897,073 $112,610 4.51 %$9,879,687 $112,135 4.50 %$9,726,905 $113,457 4.68 %$9,358,377 $110,976 4.81 %
Interest bearing liabilities:               
Deposits               
NOW accounts$2,813,037 $2,140 0.31 %$2,792,966 $2,239 0.32 %$2,754,985 $2,288 0.33 %$2,542,018 $2,259 0.36 %$2,397,673 $2,393 0.40 %
Savings accounts2,248,193 1,198 0.22 %2,359,959 1,289 0.22 %2,330,121 1,639 0.28 %2,236,281 2,097 0.38 %2,003,963 2,124 0.43 %
Time deposits1,199,340 2,057 0.70 %1,270,955 2,464 0.77 %1,378,505 2,916 0.84 %1,579,414 4,243 1.07 %1,775,828 5,507 1.24 %
Brokered deposits11,366 8 0.30 %11,366 9 0.30 %11,366 10 0.34 %34,506 24 0.28 %45,955 163 1.44 %
 6,271,936 5,403 0.35 %6,435,246 6,001 0.37 %6,474,977 6,853 0.42 %6,392,219 8,623 0.54 %6,223,419 10,187 0.66 %
Non-interest bearing deposit accounts2,547,977 — — 2,660,402 — — 2,639,610 — — 2,605,623 — — 2,358,214 — — 
Fair value premium and core deposit intangible amortization— 1,638 — — 1,838 — — 1,838 — — 1,837 — — 1,837 — 
Total deposits8,819,913 7,041 0.32 %9,095,648 7,839 0.34 %9,114,587 8,691 0.38 %8,997,842 10,460 4.46 %8,581,633 12,024 0.56 %
Borrowings
Advances from FHLB and other borrowings28,184 193 2.77 %39,887 279 2.78 %62,860 450 2.84 %63,867 452 2.84 %64,868 459 2.87 %
Subordinated capital notes16,078 521 13.15 %36,083 293 3.23 %36,083 293 3.21 %36,083 294 3.27 %36,083 295 3.31 %
Total borrowings44,262 714 6.54 %75,970 572 2.99 %98,943 743 2.98 %99,950 746 2.99 %100,951 754 3.03 %
Total interest-bearing liabilities$8,864,175 $7,755 0.35 %$9,171,618 $8,411 0.36 %$9,213,530 $9,434 0.41 %$9,097,792 $11,206 0.49 %$8,682,584 $12,778 0.60 %
Interest rate spread $105,194 4.45 % $104,199 4.15 % $102,701 4.09 % $102,251 4.19 % $98,198 4.21 %
Net interest margin  4.47 %  4.18 %  4.12 %  4.22 %  4.26 %
Core deposits: (Non-GAAP)               
Deposits               
NOW accounts$2,813,037 $2,140 0.31 %$2,792,966 $2,239 0.32 %$2,754,985 $2,288 0.33 %$2,542,018 $2,259 0.36 %$2,397,673 $2,393 0.40 %
Savings accounts2,248,193 1,198 0.22 %2,359,959 1,289 0.22 %2,330,121 1,639 0.28 %2,236,281 2,097 0.38 %2,003,963 2,124 0.43 %
Time deposits1,199,340 2,057 0.70 %1,270,955 2,464 0.77 %1,378,505 2,916 0.84 %1,579,414 4,243 1.07 %1,775,828 5,507 1.24 %
 6,260,570 5,395 0.35 %6,423,880 5,992 0.37 %6,463,611 6,843 0.42 %6,357,713 8,599 0.54 %6,177,464 10,024 0.66 %
Non-interest bearing deposit accounts2,547,977 — — 2,660,402 — — 2,639,610 — — 2,605,623 — — 2,358,214 — — 
Total core deposits$8,808,547 $5,395 0.25 %$9,084,282 $5,992 0.26 %$9,103,221 $6,843 0.30 %$8,963,336 $8,599 0.38 %$8,535,678 $10,024 0.47 %

7

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics (1)
20222021202120212021
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Net Charge-offs(22)
Non-PCD
Mortgage:
Charge-offs$3 $4,573 (b)$160 $268  $787 
Recoveries(2,074)(b)(416)(419)(193) (615)
Total mortgage(2,071)4,157 (259)75  172 
Commercial:
Charge-offs544 550 7,518 (c)653  68 
Recoveries(192)(418)(558)(996) (430)
Total commercial352 132 6,960 (343) (362)
Consumer:      
Charge-offs2,659 2,144 2,370 2,897  4,469 
Recoveries(655)(743)(894)(697) (565)
Total consumer2,004 1,401 1,476 2,200  3,904 
Auto:      
Charge-offs7,890 7,288 4,989 5,170  9,083 
Recoveries(4,891)(6,282)(5,874)(5,997) (5,817)
Total auto2,999 1,006 (885)(827) 3,266 
Total$3,284 $6,696 $7,292 $1,105  $6,980 
PCD
Mortgage:
Charge-offs$1,134 $15,010 (b)$1,008 $1,742  $2,590 
Recoveries(845)(452)(641)(184) (146)
Total mortgage289 14,558 367 1,558  2,444 
Commercial:      
Charge-offs34 12,123 (b)68 6 43 
Recoveries(3,023)(a)(746)(1,316)(430) (436)
Total commercial(2,989)11,377 (1,248)(424) (393)
Consumer:      
Charge-offs39 — — —  22 
Recoveries(23)(42)(219)(33) (21)
Total consumer16 (42)(219)(33) 1 
Auto:      
Charge-offs114 140 124 226  456 
Recoveries(137)(247)(265)(314) (383)
Total auto(23)(107)(141)(88) 73 
Total$(2,707)$25,786 $(1,241)$1,013  $2,125 
Total Net Charge-offs$577 $32,482 $6,051 $2,118  $9,105 
Net Charge-off Rates(22)      
Mortgage-0.38 %(b)3.79 %(b)0.02 %0.30 % 0.47 %
Commercial-0.43 %(a)1.95 %(b)0.97 %(c)-0.13 %-0.13 %
Consumer1.75 %1.29 %1.26 %2.17 %3.78 %
Auto0.69 %0.21 %-0.25 %-0.23 %0.85 %
Total0.04 %2.01 %0.37 %0.13 %0.55 %
Average Loans Held For Investment(22)      
Mortgage$1,885,159 $1,972,889 $2,047,272 $2,147,927  $2,243,303 
Commercial2,450,177 2,362,120 2,360,642 2,443,407  2,405,419 
Consumer461,890 421,824 400,582 400,365  413,191 
Auto1,721,893 1,695,295 1,657,378 1,606,870  1,573,995 
Total$6,519,119 $6,452,128 $6,465,874 $6,598,569  $6,635,908 
(a)During 1Q 2022, the Company recognized a $2.8 million loan recovery from an acquired PCD commercial loan repaid during the quarter.
(b)During 4Q 2021, the Company transferred to held for sale past due residential mortgage loans and a PCD commercial loan, and recognized $30.1 million in net charge-offs. Subsequently, during 1Q 2022, the Company sold the past due residential mortgage loans and recognized a $1.1 million recovery as part of the final settlement.
(c)During 3Q 2021, the Company charged-off $6.5 million for a previously reserved amount on a commercial loan.
8

OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans) (1)
20212021202120212021
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Early Delinquency (30 - 89 days past due)     
Mortgage$13,788 $16,565 $15,233 $16,556 $17,541 
Commercial2,600 4,736 4,150 3,715 3,911 
Consumer6,485 5,273 4,985 4,885 8,059 
Auto79,491 90,272 76,262 66,068 75,449 
Total $102,364 $116,846 $100,630 $91,224 $104,960 
Early Delinquency Rates (30 - 89 days past due)     
Mortgage1.96 %2.30 %2.03 %2.13 %2.15 %
Commercial0.12 %0.23 %0.21 %0.20 %0.21 %
Consumer1.43 %1.29 %1.33 %1.33 %2.17 %
Auto4.59 %5.33 %4.57 %4.08 %4.82 %
Total1.97 %2.34 %2.06 %1.86 %2.15 %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation$39,004 $45,521 $58,146 $60,892 $63,057 
GNMA's buy-back option program9,664 14,511 19,944 28,118 40,777 
Total mortgage48,668 60,032 78,090 89,010 103,834 
Commercial16,061 14,129 13,742 21,549 26,065 
Consumer8,446 7,246 6,987 7,200 10,812 
Auto91,855 103,733 87,672 73,259 86,918 
Total$165,030 $185,140 $186,491 $191,018 $227,629 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation5.54 %6.33 %7.74 %7.85 %7.74 %
GNMA's buy-back option program1.37 %2.02 %2.65 %3.63 %5.01 %
Total mortgage6.91 %8.35 %10.39 %11.48 %12.75 %
Commercial0.71 %0.68 %0.70 %1.13 %1.43 %
Consumer1.86 %1.77 %1.87 %1.97 %2.91 %
Auto5.30 %6.13 %5.26 %4.53 %5.55 %
Total3.17 %3.71 %3.82 %3.90 %4.65 %
Nonperforming Assets(15)
Mortgage$36,775 $39,394 (a)$51,612 $52,773 $50,998 
Commercial34,892 37,603 28,472 37,858 42,778 
Consumer2,030 2,303 2,203 2,466 2,835 
Auto12,495 19,829 12,055 7,606 11,842 
Total nonperforming loans86,192 99,129 94,342 100,703 108,453 
Foreclosed real estate15,297 15,039 13,904 15,093 15,598 
Other repossessed assets2,625 1,945 1,528 1,725 2,768 
Total nonperforming assets$104,114 $116,113 $109,774 $117,521 $126,819 
Nonperforming Loan Rates     
Mortgage5.22 %5.48 %(a)6.87 %6.80 %6.26 %
Commercial1.55 %1.80 %1.46 %1.99 %2.34 %
Consumer0.45 %0.56 %0.59 %0.67 %0.76 %
Auto0.72 %1.17 %0.72 %0.47 %0.76 %
Total loans1.66 %1.98 %1.93 %2.06 %2.22 %
9

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics (1)
 20222021202120212021
(Dollars in thousands) (unaudited) Q1Q4Q3Q2Q1
Nonperforming PCD Loans(15)
Mortgage $310 $334 $2,030 $2,067 $958 
Commercial 10,877 12,545 (a)36,798 34,502 34,906 
Consumer — — — — — 
Total nonperforming loans $11,187 $12,879 $38,828 $36,569 $35,864 
Nonperforming PCD Loan Rates      
Mortgage 0.03 %0.03 %0.16 %0.16 %0.07 %
Commercial 5.71 %6.14 %(a)15.36 %13.24 %12.80 %
Consumer 0.00 %0.00 %0.00 %0.00 %0.00 %
Total 0.83 %0.92 %2.54 %2.28 %2.11 %
Total PCD Loans Held for Investment(22)     
Mortgage $1,144,364 $1,188,423 $1,270,854 $1,324,274 $1,406,044 
Commercial 190,626 204,335 239,554 260,627 272,793 
Consumer 833 916 959 981 1,120 
Total loans $1,335,823 $1,393,674 $1,511,367 $1,585,882 $1,679,957 
 20222021202120212021
(Dollars in thousands) (unaudited) Q1Q4Q3Q2Q1
Total Nonperforming Loans(15)     
Mortgage $37,085 $39,728 (a)$53,642 $54,840 $51,891 
Commercial 45,769 50,148 (a)65,270 (b)72,360 77,684 
Consumer 2,030 2,303 2,203 2,466 2,900 
Auto 12,495 19,829 12,055 7,606 11,842 
Total nonperforming loans $97,379 $112,008 $133,170 $137,272 $144,317 
Total Nonperforming Loan Rates 
Mortgage 2.01 %2.08 %(a)2.65 %2.63 %2.36 %
Commercial 1.83 %2.11 %(a)2.80 %(b)3.02 %3.22 %
Consumer 0.45 %0.56 %0.59 %0.64 %0.73 %
Auto 0.72 %1.16 %0.72 %0.46 %0.75 %
Total 1.49 %1.75 %2.08 %2.11 %2.19 %
Total Loans Held for Investment(22)     
Mortgage $1,848,641 $1,907,271 $2,022,243 $2,084,442 $2,197,106 
Commercial 2,499,914 2,379,330 2,331,056 2,393,170 2,411,718 
Consumer 455,792 409,675 374,631 382,456 396,193 
Auto 1,743,624 1,706,310 1,682,933 1,638,024 1,588,509 
Total loans $6,547,971 $6,402,586 $6,410,863 $6,498,092 $6,593,526 
(a)During 4Q 2021, the Company transferred to held for sale past due residential mortgage loans with reporting balance of $39.8 million and a PCD commercial loan with reporting balance of $20.9 million.
(b)During 3Q 2021, the Company charged-off $6.5 million for a previously reserved amount on a commercial loan.

10

OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses (1)
Quarter Ended March 31, 2022
(Dollars in thousands) (unaudited)MortgageCommercialConsumerAutoTotal
Allowance for credit losses Non-PCD:     
Balance at beginning of period$15,299 $32,262 $19,141 $65,363 $132,065 
(Recapture of) provision for credit losses(2,418)5,187 3,963 1,831 8,563 
Charge-offs(3)(544)(2,659)(7,890)(11,096)
Recoveries2,074 192 655 4,891 7,812 
Balance at end of period$14,952 $37,097 $21,100 $64,195 $137,344 
Allowance for credit losses PCD:
Balance at beginning of period$19,018 $4,508 $34 $312 $23,872 
(Recapture of) provision for credit losses(2,848)(3,875)13 (138)(6,848)
Charge-offs(1,134)(34)(39)(114)(1,321)
Recoveries845 3,023 23 137 4,028 
Balance at end of period$15,881 $3,622 $31 $197 $19,731 
Allowance for credit losses summary:
Balance at beginning of period$34,317 $36,770 $19,175 $65,675 $155,937 
(Recapture of) provision for credit losses(5,266)1,312 3,976 1,693 1,715 
Charge-offs(1,137)(578)(2,698)(8,004)(12,417)
Recoveries2,919 3,215 678 5,028 11,840 
Balance at end of period$30,833 $40,719 $21,131 $64,392 $157,075 
Allowance coverage ratio1.67 %1.63 %4.64 %3.69 %2.40 %
Allowance coverage ratio excluding PPP loans (Non-GAAP)1.67 %1.66 %4.64 %3.69 %2.42 %

11

OFG Bancorp (NYSE: OFG)
Table 8-1: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital
In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and TCE ratio. The table below provides the details of the calculation of our regulatory capital and non-GAAP capital measures. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.
20222021202120212021
(Dollars in thousands) (unaudited)Q1Q4Q3Q2Q1
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity$1,040,035 (a)(b)$1,069,160 (a)$1,053,665 (a)(c)$1,079,997 (c)$1,108,423 
Less:  Intangible assets(120,016)(122,162)(124,614)(127,064)(129,514)
Noncumulative perpetual preferred stock— — — (24,000)(c)(92,000)
Noncumulative perpetual preferred stock issuance costs— — — 7,453 (c)10,130 
Tangible common equity$920,019 $946,998 $929,051 $936,386 $897,039 
     
Common shares outstanding at end of period48,673 (a)49,636 (a)49,977 (a)51,661 51,579 
Tangible book value per common share (Non-GAAP)$18.90 (a)(b)$19.08 (a)$18.59 (a)$18.13 $17.39 
Total Assets to Tangible Assets     
Total assets  $10,190,120 $9,899,720 $10,606,865 $10,461,813 $10,153,342 
Less:  Intangible assets(120,016)(122,162)(124,614)(127,064)(129,514)
Tangible assets (Non-GAAP)$10,070,104 $9,777,558 $10,482,251 $10,334,749 $10,023,828 
Non-GAAP TCE Ratio     
Tangible common equity$920,019 (a)(b)$946,998 (a)$929,051(a)$936,386 $897,039 
Tangible assets10,070,104 9,777,558 10,482,251 10,334,749 10,023,828 
TCE ratio9.14 %9.69 %8.86 %9.06 %8.95 %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity$1,066,278 (a)$1,066,764 (a)$1,068,618 (a)(c)$1,083,452 (c)$1,101,046 
Less: Average noncumulative perpetual preferred stock— — (3,391)(c)(44,923)(c)(92,000)
Average noncumulative perpetual preferred stock issuance costs— — 1,134 (c)8,306 (c)10,130 
Average total common stockholders' equity$1,066,278 $1,066,764 $1,066,361 $1,046,835 $1,019,176 
Less:  Average intangible assets(120,874)(123,201)(125,723)(128,311)(130,767)
Average tangible common equity$945,404 $943,563 $940,638 $918,524 $888,409 
(a)During 1Q 2022, the Company announced a $100 million share buyback program and and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(b)During 1Q 2022, the Company recognized a $25.8 million other comprehensive loss from changes in market interest rates as a result of recent developments in the U.S. economy.
(c)During 2Q 2021 and 3Q 2021, the Company redeemed Series A and B Preferred Stock, and Series D Preferred Stock, respectively.
12

OFG Bancorp (NYSE: OFG)
Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)
BASEL III
Standardized
2022 2021 202120212021
(Dollars in thousands) (unaudited)Q1 Q4 Q3Q2Q1
Regulatory Capital Metrics       
Common equity Tier 1 capital$955,221 (a)$964,284 (a)$931,884 (a)$957,238 $919,856 
Tier 1 capital955,221 (a)999,284 (a)966,884 (a)(c)1,008,785 (c)1,036,726 
Total risk-based capital(16)1,045,437 (a)1,086,897 (a)1,053,184 (a)(c)1,094,786 (c)1,121,830 
Risk-weighted assets7,214,692  7,004,876 6,893,254 6,861,890 6,782,685 
Regulatory Capital Ratios
Common equity Tier 1 capital ratio(17)13.24 % 13.77 %13.52 %13.95 %13.56 %
Tier 1 risk-based capital ratio(18)13.24 % 14.27 %14.03 %14.70 %15.28 %
Total risk-based capital ratio(19)14.49 % 15.52 %15.28 %15.95 %16.54 %
Leverage ratio(20)9.54 % 9.69 %9.33 %9.84 %10.48 %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity(1)$1,040,035 (a)$1,069,160 (a)$1,053,665 (a)(c)$1,079,997 (c)$1,108,423 
Plus:CECL transition adjustment(21)20,55727,40929,11131,47133,637
Less:Noncumulative perpetual preferred stock———(c)(24,000)(c)(92,000)
Noncumulative perpetual preferred stock issuance costs———(c)7,453(c)10,130
Unrealized gains on available-for-sale securities, net of income tax20,522(5,663)(9,330)(8,408)(7,146)
Unrealized losses on cash flow hedges, net of income tax116503710808916
1,081,2301,091,4091,074,1561,087,3211,053,960
Less:Disallowed goodwill(86,069)(86,069)(86,069)(86,069)(86,069)
Disallowed other intangible assets, net(24,384)(25,771)(26,938)(28,555)(30,172)
Disallowed deferred tax assets, net(15,556)(15,285)(29,265)(15,459)(17,863)
Common equity Tier 1 capital955,221964,284931,884957,238919,856
Plus:Qualifying noncumulative perpetual preferred stock———(c)24,000(c)92,000
Qualifying noncumulative perpetual preferred stock issuance costs———(c)(7,453)(c)(10,130)
Subordinated capital notes—(b)35,00035,00035,00035,000
Tier 1 capital955,221 999,284966,8841,008,7851,036,726
Plus tier 2 capital:  Qualifying allowance for loan and lease losses90,216 87,61386,30086,00185,104
Total risk-based capital$1,045,437  $1,086,897 $1,053,184 $1,094,786 $1,121,830 
(a)During 1Q 2022, the Company announced a $100 million share buyback program and and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(b)During 1Q 2022, the Company redeemed all outstanding $36.1 million subordinated capital notes prior to maturity.
(c)During 2Q 2021 and 3Q 2021, the Company redeemed Series A and B Preferred Stock, and Series D Preferred Stock, respectively.
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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)We used the term "PCI" to refer to loans acquired with credit deterioration from the Scotiabank Acquisition (December 31, 2019), the BBVAPR Acquisition (December 18, 2012) and the Eurobank FDIC-Assisted Acquisition (April 30, 2010), recorded at fair value at acquisition. On January 1, 2020, the Company implemented ASU No. 2016-13: Measurement of Credit Losses on Financial Instruments "(CECL)" using the modified retrospective approach. CECL replaces the concept of purchased credit impaired loans (PCI) with the concept of purchased financial assets with credit deterioration (PCD). PCD accounting is called ‘gross-up accounting’ because, at acquisition, an entity grosses up the amortized cost basis of the PCD asset for the initial estimate of credit losses. This Day 1 allowance for credit losses is established without an income statement effect. The Company elected to maintain previously existing pools on adoption, therefore the pool continues to be the unit of account, and the allowance and non-credit discount or premium is not allocated to the individual assets. These loans are not classified as delinquent or nonperforming even though the customer may be contractually past due because we expect that we will fully collect the carrying value of these loans.
(2)Total banking and financial service revenues.
(3)Net interest income plus non-interest income, net (core)
(4)Calculated based on net income available to common shareholders divided by average common shares outstanding for the period.
(5)Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted.
(6)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.
(7)Information includes all loans held for investment, including PCD loans.
(8)Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(9)Calculated based on annualized income, net of tax, for the period divided by average total assets for the period.
(10)Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period.
(11)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.
(12)Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(13)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.
(14)Production of new loans (excluding renewals).
(15)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.
(16)Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(17)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.
(18)Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(19)Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.
(20)Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
(21)In March 2020, in light of recent strains on the U.S. economy as a result of the coronavirus disease 2019 (COVID-19), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. In addition, for the first two years, a uniform 25% “scaling factor” is introduced to approximate the portion of the post day-one allowance attributable to CECL relative to the incurred loss methodology. The 25% scaling factor is calibrated to approximate an overall after-tax impact of differences in allowances under CECL vs the incurred loss methodology.
(22)CECL replaced the concept of purchased credit impaired loans (PCI assets) with the concept of purchased financial assets with credit deterioration (PCD assets). An entity records a PCD asset at the purchase price plus the allowance for credit losses expected at the time of acquisition. Under this method, there is no credit loss expense affecting net income on acquisition. Changes in estimates of expected credit losses after acquisition are recognized as credit loss expense (or reversal of credit loss expense) in subsequent periods as they arise.
(23)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.
(24)PPP loans are fully guaranteed by the SBA and risk-weighted at 0%.
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