EX-99 2 ofg-20232qxexx99.htm EX-99 Document

Exhibit 99

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OFG Bancorp Reports 2Q23 Results
SAN JUAN, Puerto Rico, July 20, 2023 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the second quarter ended June 30, 2023. EPS diluted of $0.93 compared to $0.96 in 1Q23 and $0.84 in 2Q22. Total core revenues of $170.5 million compared to $164.4 million in 1Q23 and $146.3 million in 2Q22.
CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “The second quarter generated year-over-year increases of 16.5% in total core revenues and 10.7% in earnings per share. The period was highlighted by strong loan production, stable core deposits along with low cumulative deposit beta of 16% and increased operating leverage. Customer liquidity and the Puerto Rico economy continued at high levels. We also repurchased 565,299 shares of OFG stock as part of our buyback program.”

“Our ‘Digital First’ strategy continues to show excellent progress. We launched a first to market, self-service portal that enables customers to manage quickly and easily all their loan and deposit accounts in one place. Customers are increasingly adopting this and other self-service tools. Use of brick and mortar channels is down and digital is up, leading to an overall 5% increase in customer transaction activity in June year-over-year. This is freeing more Oriental team members to provide value-added service and develop new business. As always, thanks to our team for helping our customers and the communities we serve.”

2Q23 Highlights

Performance Metrics: Net interest margin of 5.90%, return on average assets of 1.76%, return on average tangible common stockholders’ equity of 17.67%, and efficiency ratio of 52.13%.

Net Interest Income of $139.6 million compared to $135.9 million in 1Q23 and $115.1 million in 2Q22. 2Q23 reflected the full effect of 1Q23’s 50 basis point increase in the Federal Reserve Board’s funds rate and a partial effect of 2Q23’s 25 bps increase.

Total Interest Income of $158.0 million compared to $149.0 million in 1Q23 and $122.2 million in 2Q22. Compared to 1Q23, 2Q23 primarily reflected higher yields on increased average balances of loans and cash.

Total Interest Expense of $18.3 million compared to $13.1 million in 1Q23 and $7.1 million in 2Q22. Compared to 1Q23, 2Q23 reflected higher cost of funds on increased average balances of interest bearing liabilities, including the full quarter effect of a $200 million mid-March Federal Home Loan Bank advance.

Total Banking & Financial Service Revenues of $30.9 million compared to $28.5 million in 1Q23 and $31.2 million in 2Q22. Compared to 1Q23, 2Q23 primarily reflected increased wealth management and mortgage servicing revenues. Non-interest income also included a loss of $0.8 million due primarily to the sale of a short-term Treasury note.



Pre-Provision Net Revenues of $80.8 million compared to $74.6 million in 1Q23 and $66.0 million in 2Q22.

Total Provision for Credit Losses of $15.0 million compared to $9.4 million in 1Q23 and $6.7 million in 2Q22. 2Q23 included $9.1 million for a specific reserve for three US commercial loans and $6.3 million due to increased loan volume.

Credit Quality: Net charge-offs of $6.6 million compared to $10.1 million in 1Q23 and $4.5 million in 2Q22. 2Q23 included a recovery of $3.7 million from the sale of older, fully charged off auto and consumer loans. 2Q23 delinquency and non-performing loan rates rose slightly from reduced levels in 1Q23.

Total Non-Interest Expense of $88.9 million compared to $90.2 million in 1Q23 and $85.3 million in 2Q22. Compared to 1Q23, 2Q23 operating expenses increased $1.8 million, which was more than offset by $3.1 million from (i) a higher gain on foreclosed real estate and (ii) lower credit expenses.

Loans Held for Investment (EOP) of $7.12 billion compared to $6.85 billion in 1Q23 and $6.70 billion in 2Q22. Loans increased 15.4% annualized from the previous quarter and 6.2% year-over-year. Compared to 1Q23, 2Q23 reflected increases in commercial, auto, and consumer loans. This was partially offset by regular paydowns of residential mortgages.

New Loan Production of $691.8 million compared to $561.3 million in 1Q23 and $587.2 million in 2Q22. 2Q23 reflected strong levels of commercial lending in Puerto Rico and the US as well as auto, consumer, and residential mortgage lending.

Total Investments (EOP) of $1.70 billion compared to $1.92 billion in 1Q23 and $1.73 billion in 2Q22. 2Q23 investments declined $214.0 million from 1Q23 primarily due to the previously mentioned sale of a Treasury note.

Customer Deposits (EOP) of $8.54 billion compared to $8.57 billion in 1Q23 and $9.02 billion in 2Q22.

Total Borrowings (EOP) of $226.5 million compared to $226.8 million in 1Q23 and $27.6 million in 2Q22.

Cash & Cash Equivalents (EOP) of $799.0 million compared to $847.5 million in 1Q23 and $1.31 billion in 2Q22.

Total Assets (EOP) of $10.03 billion compared to $10.06 billion in 1Q23 and $10.25 billion in 2Q22.

Capital: CET1 ratio of 14.01% compared to 14.07% in 1Q23 and 12.80% in 2Q22. The Tangible Common Equity ratio was 9.99% compared to 9.85% in 1Q23 and 8.85% in 2Q22. Tangible Book Value per share of $21.06 compared to $20.57 in 1Q23 and $18.86 in 2Q22.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 2Q23 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 579-2543 or (785) 424-1789. Conference ID: OFGQ223. The call can also be accessed live on  www.ofgbancorp.com with webcast replay shortly thereafter.


OFG’s Financial Supplement, with full financial tables for the quarter ended June 30, 2023, and the 2Q23 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.
Forward Looking Statements
The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements.

Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, pandemics, and other natural disasters; and (iv) competition in the financial services industry.
For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2022, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
About OFG Bancorp
Now in its 59th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at www.ofgbancorp.com. 
# # #
Contacts
Puerto Rico & USVI: Idalis Montalvo (idalis.montalvo@orientalbank.com) at (787) 777-2847
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 June 30, 2023 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.


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

2023
2023
2022
2022
2022
(Dollars in thousands, except per share data) (unaudited)
Q2
Q1
Q4
Q3
Q2
Statement of Operations
Net interest income $139,644$135,897$135,282$126,510$115,094
Non-interest income, net (core)(1)30,85928,53133,01230,29831,214
Total core revenues(2)170,503164,428168,294156,808146,308
Non-interest expense 88,88890,22091,64187,49285,258
Pre-provision net revenues(21)80,82974,57876,89569,63866,046
Total provision for credit losses 15,0449,4458,7577,1206,691
Net income before income taxes 65,78565,13368,13862,51859,355
Income tax expense 21,61218,90421,77120,59918,923
Net income available to common stockholders 44,17346,22946,36741,91940,432
Common Share Statistics      
Earnings per common share - basic(3)$0.93$0.97$0.97$0.88$0.84
Earnings per common share - diluted(4)$0.93$0.96$0.97$0.87$0.84
Average common shares outstanding 47,266(a)47,60047,57247,55848,053
Average common shares outstanding and equivalents 47,490(a)47,94447,96447,92648,389
Cash dividends per common share $0.22$0.22$0.20$0.20$0.15
Book value per common share (period end) $23.36$22.88$21.91$20.90$21.34
Tangible book value per common share (period end)(5)$21.06$20.57$19.56$18.46$18.86
Balance Sheet (Average Balances)      
Loans(6)$7,002,971$6,866,586$6,770,341$6,697,900$6,640,440
Interest-earning assets 9,492,8619,359,2119,425,5909,597,6709,613,327
Total assets 10,020,9409,900,4099,989,29310,181,00010,207,579
Core deposits 8,531,5838,594,3928,759,0808,924,0898,946,517
Total deposits 8,531,5838,604,6218,770,4468,935,4558,957,883
Interest-bearing deposits 5,955,6115,950,4816,059,6436,296,1426,266,187
Borrowings 226,25664,16826,82027,27527,726
Stockholders' equity 1,108,8801,077,7031,025,1321,045,7921,032,270
Performance Metrics      
Net interest margin(7)5.90 %5.89 %5.69 %5.23 %4.80 %
Return on average assets(8)1.76 %1.87 %1.86 %1.65 %1.58 %
Return on average tangible common stockholders' equity(9)17.67 %19.13 %20.36 %18.05 %17.70 %
Efficiency ratio(10)52.13 %54.87 %54.45 %55.80 %58.27 %
Full-time equivalent employees, period end 2,265 2,249 2,253 2,247 2,230 
Credit Quality Metrics     
Allowance for credit losses$159,923$151,884$152,673$155,162$159,039
Allowance as a % of loans held for investment2.25 %2.22 %2.23 %2.32 %2.37 %
Net charge-offs$6,605$10,120$11,205$11,347$4,543
Net charge-off rate(11)0.38 %0.59 %0.66 %0.68 %0.27 %
Early delinquency rate (30 - 89 days past due)2.53 %2.11 %2.46 %2.75 %2.20 %
Total delinquency rate (30 days and over)3.67 %3.40 %4.04 %4.35 %3.68 %
Capital Ratios (period end) (Non-GAAP)(12)(20)
Leverage ratio10.85 %10.75 %10.36 %9.82 %9.46 %
Common equity Tier 1 capital ratio14.01 %14.07 %13.64 %13.38 %12.80 %
Tier 1 risk-based capital ratio14.01 %14.07 %13.64 %13.38 %12.80 %
Total risk-based capital ratio15.27 %15.33 %14.89 %14.63 %14.05 %
Tangible common equity ("TCE") ratio9.99 %9.85 %9.59 %8.83 %8.85 %

(a)During 2Q 2023, the Company repurchased 565 thousand shares for $13.6 million pursuant to its $100.0 million share buyback program.

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OFG Bancorp (NYSE: OFG)
Table 1-2: Financial and Statistical Summary - Consolidated (Continued)
2023
2022
(Dollars in thousands, except per share data) (unaudited)YTDYTD
Statement of Operations
Net interest income$275,541 $220,288 
Non-interest income, net (core)(1)59,390 62,415 
Total core revenues(2)334,931 282,703 
Non-interest expense179,108 166,413 
Pre-provision net revenues(21)155,407 121,691 
Total provision for credit losses24,489 8,242 
Net income before income taxes130,918 113,449 
Income tax expense40,516 35,496 
Net income available to common stockholders90,402 77,953 
Common Share Statistics
Earnings per common share - basic(3)$1.91 $1.61 
Earnings per common share - diluted(4)$1.89 $1.59 
Average common shares outstanding47,432 48,508 
Average common shares outstanding and equivalents47,716 48,933 
Cash dividends per common share$0.44 $0.30 
Book value per common share (period end)$23.36 $21.34 
Tangible book value per common share (period end)(5)$21.06 $18.86 
Balance Sheet (Average Balances)
Loans(6)$6,935,155 $6,580,115 
Interest-earning assets9,426,405 9,576,999 
Total assets9,961,007 10,160,924 
Core deposits8,562,231 8,877,913 
Total deposits8,567,317 8,889,279 
Interest-bearing deposits5,952,477 6,269,046 
Borrowings145,660 (a)35,948 
Stockholders' equity1,093,377 1,049,180 
Common stockholders' equity1,093,377 1,049,180 
Performance Metrics
Net interest margin(7)5.89 %4.64 %
Return on average assets(8)1.82 %1.53 %
Return on average tangible common stockholders' equity(9)18.39 %16.78 %
Efficiency ratio(10)53.48 %58.86 %
Full-time equivalent employees, period end2,265 2,230 
Credit Quality Metrics
Allowance for credit losses$159,923 $159,039 
Allowance as a % of loans held for investment2.25 %2.37 %
Net charge-offs$16,725 $5,120 
Net charge-off rate(11)0.48 %0.16 %
Early delinquency rate (30 - 89 days past due)2.53 %2.20 %
Total delinquency rate (30 days and over)3.67 %3.68 %

(a)During the six-month period ended June 30, 2023, the Company took a two-year FHLB advance amounting to $200.0 million.

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OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited) June 30, 2023March 31, 2023December 31,
2022		September 30,
2022		June 30,
2022
Interest income: 
Loans
Non-PCD loans $116,699 $109,330 $105,238 $97,677 $91,788 
PCD loans 18,819 18,981 19,762 18,563 19,569 
Total interest income from loans 135,518 128,311 125,000 116,240 111,357 
Investment securities and cash 22,470 20,674 20,727 18,435 10,865 
Total interest income 157,988 148,985 145,727 134,675 122,222 
Interest expense:
Deposits
Core deposits 15,916 12,489 10,258 7,978 6,935 
Brokered deposits — 8 9 9 9 
Total deposits 15,916 12,497 10,267 7,987 6,944 
Borrowings 2,428 (a)591 178 178 184 
Total interest expense 18,344 13,088 10,445 8,165 7,128 
Net interest income 139,644 135,897 135,282 126,510 115,094 
Provision for credit losses, excluding PCD loans16,650 (b)8,146 11,347 9,897 12,486 
(Recapture of) provision for credit losses on PCD loans(1,606)1,299 (2,590)(2,777)(5,795)
Total provision for credit losses 15,044 9,445 8,757 7,120 6,691 
Net interest income after provision for credit losses 124,600 126,452 126,525 119,390 108,403 
Non-interest income:      
Banking service revenues 17,440 17,513 18,224 17,234 18,141 
Wealth management revenues 8,194 7,120 8,335 8,173 8,270 
Mortgage banking activities 5,225 3,898 6,453 4,891 4,803 
Total banking and financial service revenues 30,859 28,531 33,012 30,298 31,214 
Other income (loss), net (786)(c)370 242 322 4,996 
Total non-interest income, net 30,073 28,901 33,254 30,620 36,210 
Non-interest expense:
Compensation and employee benefits 37,841 38,473 38,100 35,332 34,730 
Occupancy, equipment and infrastructure costs 14,362 14,257 13,893 12,638 12,861 
General and administrative expenses 39,005 36,693 39,261 37,523 39,071 
Foreclosed real estate and other repossessed assets (income) expenses  (2,320)793 239 573 (1,404)
Climate events expenses — 4 148 1,426 — 
Total non-interest expense 88,888 90,220 91,641 87,492 85,258 
Income before income taxes 65,785 65,133 68,138 62,518 59,355 
Income tax expense 21,612 18,904 21,771 20,599 18,923 
Net income available to common shareholders $44,173 $46,229 $46,367 $41,919 $40,432 

(a)Refer to “(a)” in Table 1-2.
(b)During 2Q 2023, the Company recognized higher provision for credit losses driven by a specific reserve for three Commercial US loans amounting $9.1 million.
(c)During 2Q 2023, the Company recognized a $1.1 million loss on the sale of a $205.0 million short-term US treasury note available for sale.

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OFG Bancorp (NYSE: OFG)
Table 2-2: Consolidated Statements of Operations (Continued)
(Dollars in thousands, except per share data) (unaudited)Six-Month Period Ended
June 30, 2023
June 30, 2022
Interest income:
Loans
Non-PCD loans$226,029 $178,419 
PCD loans37,800 40,503 
Total interest income from loans263,829 218,922 
Investment securities and cash43,144 16,249 
Total interest income306,973 235,171 
Interest expense:
Deposits
Core deposits28,405 13,968 
Brokered deposits8 17 
Total deposits28,413 13,985 
Borrowings3,019 (a)898 
Total interest expense31,432 14,883 
Net interest income275,541 220,288 
Provision for credit losses, excluding PCD loans30,163 (b)20,885 
Recapture of provision for credit losses on PCD loans(5,674)(12,643)
Total provision for credit losses24,489 8,242 
Net interest income after provision for credit losses251,052 212,046 
Non-interest income:  
Banking service revenues34,953 35,703 
Wealth management revenues15,314 16,127 
Mortgage banking activities9,123 10,585 
Total banking and financial service revenues59,390 62,415 
Other income, net(416)(c)5,401 
Total non-interest income, net58,974 67,816 
Non-interest expense:
Compensation and employee benefits76,314 69,498 
Occupancy, equipment and infrastructure costs28,619 24,777 
General and administrative expenses75,698 75,024 
Foreclosed real estate and other repossessed assets income(1,527)(2,886)
Climate events expenses4 — 
Total non-interest expense179,108 166,413 
Income before income taxes130,918 113,449 
Income tax expense40,516 35,496 
Net income available to common shareholders$90,402 $77,953 
(a)Refer to “(a)” in Table 1-2.
(b)Refer to “(b)” in Table 2-1.
(c)Refer to “(c)” in Table 2-1.



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OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
Cash and cash equivalents$798,973 $847,494 $550,464 $815,433 $1,307,281 
Investments:
Trading securities13 10 9 11 13 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities1,139,996 1,109,889 1,102,501 1,075,838 1,146,459 
US treasury notes748 (a)242,098 309,133 401,414 10,733 
Other investment securities1,101 1,119 1,142 1,157 2,378 
Total investment securities available-for-sale1,141,845 1,353,106 1,412,776 1,478,409 1,159,570 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities326,935 332,852 337,435 343,549 351,016 
US treasury notes198,478 198,028 197,635 197,225 196,816 
Total investment securities held-to-maturity525,413 530,880 535,070 540,774 547,832 
Equity securities35,946 33,218 23,667 23,372 19,848 
Total investments1,703,217 1,917,214 1,971,522 2,042,566 1,727,263 
Loans, net6,988,244 6,735,281 6,723,236 6,591,028 6,585,210 
Other assets:
Prepaid expenses67,966 59,125 54,641 69,535 65,327 
Deferred tax asset, net20,306 37,372 55,485 66,121 76,101 
Foreclosed real estate and repossessed properties14,643 13,813 15,831 17,868 17,594 
Premises and equipment, net104,166 104,851 106,820 106,025 101,848 
Goodwill84,241 84,241 84,241 86,069 86,069 
Other intangibles24,143 25,868 27,593 29,662 31,800 
Right of use assets21,840 23,897 25,363 26,192 27,699 
Servicing asset49,966 49,345 50,921 50,061 49,280 
Accounts receivable and other assets153,842 159,080 152,663 157,619 172,302 
Total assets$10,031,547 $10,057,581 $9,818,780 $10,058,179 $10,247,774 
Deposits:
Demand deposits$5,008,521 $5,038,122 $5,176,758 $5,416,386 $5,459,121 
Savings accounts2,222,326 2,271,774 2,227,965 2,345,596 2,433,802 
Time deposits1,307,179 1,255,525 1,152,270 1,081,769 1,125,276 
Brokered deposits— — 11,371 11,366 11,371 
Total deposits8,538,026 8,565,421 8,568,364 8,855,117 9,029,570 
Borrowings:     
Advances from FHLB and other borrowings226,507 226,789 27,034 27,263 27,618 
Total borrowings226,507 226,789 27,034 27,263 27,618 
Other liabilities:     
Acceptances outstanding35,945 30,094 28,607 29,245 27,150 
Lease liability24,031 25,990 27,370 28,114 29,538 
GNMA buy-back option program liability(22)18,417 26,348 32,590 29,050 33,431 
Accrued expenses and other liabilities88,870 93,429 92,409 95,523 85,655 
Total liabilities8,931,796 8,968,071 8,776,374 9,064,312 9,232,962 
Stockholders' equity:
Common stock59,885 59,885 59,885 59,885 59,885 
Additional paid-in capital636,051 634,785 636,793 635,523 634,612 
Legal surplus142,567 138,333 133,901 129,429 125,365 
Retained earnings 577,042 547,641 516,371 484,057 455,590 
Treasury stock, at cost(226,230)(b)(212,794)(211,135)(211,138)(211,138)
Accumulated other comprehensive income, net(89,564)(78,340)(93,409)(103,889)(49,502)
Total stockholders' equity1,099,751 1,089,510 1,042,406 993,867 1,014,812 
Total liabilities and stockholders' equity$10,031,547 $10,057,581 $9,818,780 $10,058,179 $10,247,774 
(a)Refer to “(c)” in Table 2-1.
(b)Refer to “(a)” in Table 1-1.



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OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
Non-PCD:
Mortgage, excluding GNMA buy-back option program$623,138 $634,799 $643,203 $650,781 $675,324 
Mortgage GNMA buy-back option program(22)18,417 26,348 32,590 29,050 33,431 
Commercial, excluding Commercial US1,952,178 1,808,379 1,828,644 1,754,999 1,797,778 
Commercial US669,332 617,574 642,133 622,382 623,807 
Consumer593,122 564,365 536,619 520,183 498,404 
Auto2,124,076 2,034,676 1,958,257 1,877,945 1,791,052 
5,980,263 5,686,141 5,641,446 5,455,340 5,419,796 
Less:  Allowance for credit losses(150,167)(141,385)(141,841)(142,417)(143,896)
Total non-PCD loans held for investment, net5,830,096 5,544,756 5,499,605 5,312,923 5,275,900 
PCD:
Mortgage980,833 1,007,751 1,028,428 1,059,448 1,099,097 
Commercial152,888 155,614 159,152 162,287 174,282 
Consumer568 607 638 738 698 
Auto3,319 4,367 5,658 7,152 8,788 
1,137,608 1,168,339 1,193,876 1,229,625 1,282,865 
Less:  Allowance for credit losses(9,756)(10,499)(10,832)(12,745)(15,143)
Total PCD loans held for investment, net1,127,852 1,157,840 1,183,044 1,216,880 1,267,722 
Total loans held for investment6,957,948 6,702,596 6,682,649 6,529,803 6,543,622 
Mortgage loans held for sale11,397 13,616 19,499 43,262 26,947 
Other loans held for sale18,899 (a)19,069 21,088 17,963 14,641 
Total loans, net$6,988,244 $6,735,281 $6,723,236 $6,591,028 $6,585,210 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program$1,603,971 $1,642,550 $1,671,631 $1,710,229 $1,774,421 
Mortgage GNMA buy-back option program(22)18,417 26,348 32,590 29,050 33,431 
Commercial, excluding Commercial US2,105,066 1,963,993 1,987,796 1,917,286 1,972,060 
Commercial US669,332 617,574 642,133 622,382 623,807 
Consumer593,690 564,972 537,257 520,921 499,102 
Auto2,127,395 2,039,043 1,963,915 1,885,097 1,799,840 
7,117,871 6,854,480 6,835,322 6,684,965 6,702,661 
Less:  Allowance for credit losses(159,923)(151,884)(152,673)(155,162)(159,039)
Total loans held for investment, net6,957,948 6,702,596 6,682,649 6,529,803 6,543,622 
Mortgage loans held for sale11,397 13,616 19,499 43,262 26,947 
Other loans held for sale18,899 19,069 21,088 17,963 14,641 
Total loans, net$6,988,244 $6,735,281 $6,723,236 $6,591,028 $6,585,210 

7

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
  Quarter EndedSix-Month Period Ended
(Dollars in thousands) (unaudited)
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
June 30, 2023
June 30, 2022
Loan production(13)
Mortgage $35,932 $30,344 $35,242 $38,945 $62,835 $66,276 $126,718 
Commercial 220,746 98,300 209,078 123,429 143,796 319,046 319,327 
Commercial US 111,817 124,074 83,162 55,984 90,952 235,891 199,342 
Consumer 87,062 86,284 67,515 73,045 96,571 173,346 193,679 
Auto 236,283 222,325 221,369 219,910 193,031 458,608 371,319 
Total $691,840 $561,327 $616,366 $511,313 $587,185 $1,253,167 $1,210,385 
8

OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2023 Q2
2023 Q1
2022 Q4
2022 Q3
2022 Q2
(Dollars in thousands) (unaudited)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest earning assets:
Cash equivalents$693,373 $9,029 5.22 %$552,635 $6,445 4.73 %$551,555 $5,115 3.68 %$1,016,561 $5,661 2.21 %$1,546,036 $2,984 0.77 %
Investment securities1,796,517 13,441 2.99 %1,939,990 14,229 2.93 %2,103,694 15,612 2.97 %1,883,209 12,774 2.71 %1,426,851 7,881 2.21 %
Loans held for investment
Non-PCD loans5,840,860 116,699 8.01 %5,670,966 109,330 7.82 %5,542,986 105,238 7.53 %5,428,852 97,677 7.14 %5,315,401 91,788 6.93 %
PCD loans1,162,111 18,819 6.48 %1,195,620 18,981 6.35 %1,227,355 19,762 6.44 %1,269,048 18,563 5.85 %1,325,039 19,569 5.91 %
Total loans7,002,971 135,518 7.76 %6,866,586 128,311 7.58 %6,770,341 125,000 7.32 %6,697,900 116,240 6.89 %6,640,440 111,357 6.73 %
Total interest-earning assets$9,492,861 $157,988 6.68 %$9,359,211 $148,985 6.46 %$9,425,590 $145,727 6.13 %$9,597,670 $134,675 5.57 %$9,613,327 $122,222 5.10 %
Interest bearing liabilities:          
Deposits          
NOW accounts$2,455,040 $4,973 0.81 %$2,497,917 $4,212 0.68 %$2,624,602 $4,050 0.61 %$2,799,234 $2,927 0.41 %$2,811,396 $2,174 0.31 %
Savings accounts2,222,710 4,129 0.75 %2,232,903 3,135 0.57 %2,291,884 2,250 0.39 %2,388,072 1,733 0.29 %2,296,903 1,289 0.23 %
Time deposits1,277,861 5,493 1.72 %1,209,432 3,821 1.28 %1,131,791 2,373 0.83 %1,097,470 1,679 0.61 %1,146,522 1,834 0.64 %
Brokered deposits— — — %10,229 8 0.30 %11,366 9 0.30 %11,366 9 0.30 %11,366 9 0.30 %
 5,955,611 14,595 0.98 %5,950,481 11,176 0.76 %6,059,643 8,682 0.57 %6,296,142 6,348 0.40 %6,266,187 5,306 0.34 %
Non-interest bearing deposit accounts2,575,972 — — 2,654,140 — — 2,710,803 — — 2,639,313 — — 2,691,696 — — 
Fair value premium and core deposit intangible amortization— 1,321 — — 1,321 — — 1,585 — — 1,639 — — 1,638 — 
Total deposits8,531,583 15,916 0.75 %8,604,621 12,497 0.59 %8,770,446 10,267 0.46 %8,935,455 7,987 0.35 %8,957,883 6,944 0.31 %
Borrowings
Advances from FHLB and other borrowings226,256 2,428 4.30 %64,168 591 3.74 %26,820 178 2.64 %27,275 178 2.59 %27,726 184 2.66 %
Total borrowings226,256 2,428 4.30 %64,168 591 3.74 %26,820 178 2.64 %27,275 178 2.59 %27,726 184 2.66 %
Total interest-bearing liabilities$8,757,839 $18,344 0.84 %$8,668,789 $13,088 0.61 %$8,797,266 $10,445 0.47 %$8,962,730 $8,165 0.36 %$8,985,609 $7,128 0.32 %
Interest rate spread $139,644 5.84 % $135,897 5.85 % $135,282 5.66 % $126,510 5.21 % $115,094 4.78 %
Net interest margin  5.90 %  5.89 %  5.69 %  5.23 %  4.80 %
Core deposits: (Non-GAAP)               
Deposits               
NOW accounts$2,455,040 $4,973 0.81 %$2,497,917 $4,212 0.68 %$2,624,602 $4,050 0.61 %$2,799,234 $2,927 0.41 %$2,811,396 $2,174 0.31 %
Savings accounts2,222,710 4,129 0.75 %2,232,903 3,135 0.57 %2,291,884 2,250 0.39 %2,388,072 1,733 0.29 %2,296,903 1,289 0.23 %
Time deposits1,277,861 5,493 1.72 %1,209,432 3,821 1.28 %1,131,791 2,373 0.83 %1,097,470 1,679 0.61 %1,146,522 1,834 0.64 %
 5,955,611 14,595 0.98 %5,940,252 11,168 0.76 %6,048,277 8,673 0.57 %6,284,776 6,339 0.40 %6,254,821 5,297 0.34 %
Non-interest bearing deposit accounts2,575,972 — — 2,654,140 — — 2,710,803 — — 2,639,313 — — 2,691,696 — — 
Total core deposits$8,531,583 $14,595 0.69 %$8,594,392 $11,168 0.53 %$8,759,080 $8,673 0.39 %$8,924,089 $6,339 0.28 %$8,946,517 $5,297 0.24 %

9

OFG Bancorp (NYSE: OFG)
Table 5-2: Average Balances, Net Interest Income and Net Interest Margin (Continued)
2023 YTD2022 YTD
(Dollars in thousands) (unaudited)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest earning assets:
Cash equivalents$623,393 $15,475 5.01 %$1,807,621 $3,913 0.44 %
Investment securities1,867,857 27,669 2.96 %1,189,263 12,336 2.07 %
Loans held for investment
Non-PCD loans5,756,382 226,029 7.92 %5,215,115 178,419 6.90 %
PCD loans1,178,773 37,800 6.41 %1,365,000 40,503 5.93 %
Total loans6,935,155 263,829 7.67 %6,580,115 218,922 6.71 %
Total interest-earning assets$9,426,405 $306,973 6.57 %$9,576,999 $235,171 4.95 %
Interest bearing liabilities:
Deposits
NOW accounts$2,476,360 $9,187 0.75 %$2,812,212 $4,314 0.31 %
Savings accounts2,227,196 7,264 0.66 %2,272,683 2,487 0.22 %
Time deposits1,243,835 9,313 1.51 %1,172,785 3,891 0.67 %
Brokered deposits5,086 8 0.30 %11,366 17 0.30 %
5,952,477 25,772 0.87 %6,269,046 10,709 0.34 %
Non-interest bearing deposit accounts2,614,840 — — %2,620,233 — — %
Fair value premium and core deposit intangible amortization— 2,641 — — 3,276 — 
Total deposits8,567,317 28,413 0.67 %8,889,279 13,985 0.32 %
Borrowings
Advances from FHLB and other borrowings145,660 3,019 4.18 %27,954 377 2.71 %
Subordinated capital notes— — — %7,994 521 13.15 %
Total borrowings145,660 3,019 4.18 %35,948 898 5.04 %
Total interest-bearing liabilities$8,712,977 $31,432 0.73 %$8,925,227 $14,883 0.34 %
Interest rate spread$275,541 5.84 %$220,288 4.61 %
Net interest margin 5.89 %4.64 %
Core deposits: (Non-GAAP)
Deposits
NOW accounts$2,476,360 $9,187 0.75 %$2,812,212 $4,314 0.31 %
Savings accounts2,227,196 7,264 0.66 %2,272,683 2,487 0.22 %
Time deposits1,243,835 9,313 1.51 %1,172,785 3,891 0.67 %
5,947,391 25,764 0.87 %6,257,680 10,692 0.34 %
Non-interest bearing deposit accounts2,614,840 — — %2,620,233 — — %
Total core deposits$8,562,231 $25,764 0.61 %$8,877,913 $10,692 0.24 %
10

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
20232023202220222022
(Dollars in thousands) (unaudited)Q2Q1Q4Q3Q2
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs$191 $201 $8 $14 $259 
Recoveries(334)(216)(625)(280)(335)
Total mortgage(143)(15)(617)(266)(76)
Commercial:
Charge-offs3,496 1,375 3,444 6,485 2,907 
Recoveries(237)(326)(338)(214)(456)
Total commercial3,259 1,049 3,106 6,271 2,451 
Consumer:     
Charge-offs5,518 5,440 5,069 4,163 3,307 
Recoveries(2,003)(a)(866)(1,055)(732)(795)
Total consumer3,515 4,574 4,014 3,431 2,512 
Auto:     
Charge-offs9,169 9,479 10,380 7,964 6,428 
Recoveries(8,332)(a)(6,599)(5,001)(5,674)(5,565)
Total auto837 2,880 5,379 2,290 863 
Total$7,468 $8,488 $11,882 $11,726 $5,750 
PCD
Mortgage:
Charge-offs$1 $75 $108 $270 $183 
Recoveries(260)(247)(603)(191)(1,026)
Total mortgage(259)(172)(495)79 (843)
Commercial:     
Charge-offs— 2,104 12 23 — 
Recoveries(319)(489)(264)(268)(249)
Total commercial(319)1,615 (252)(245)(249)
Consumer:     
Charge-offs124 213 120 9 8 
Recoveries(42)(11)(11)(47)(13)
Total consumer82 202 109 (38)(5)
Auto:     
Charge-offs34 87 65 56 75 
Recoveries(401)(100)(104)(231)(185)
Total auto(367)(13)(39)(175)(110)
Total$(863)$1,632 $(677)$(379)$(1,207)
Total Net Charge-offs$6,605 $10,120 $11,205 $11,347 $4,543 
Net Charge-off Rates     
Mortgage-0.10 %-0.05 %-0.26 %-0.04 %-0.20 %
Commercial0.44 %0.41 %0.44 %0.94 %0.34 %
Consumer2.37 %(a)3.30 %2.95 %2.52 %1.98 %
Auto0.09 %(a)0.57 %1.11 %0.46 %0.17 %
Total0.38 %(a)0.59 %0.66 %0.68 %0.27 %
Average Loans Held For Investment     
Mortgage$1,616,873 $1,653,423 $1,699,923 $1,757,897 $1,809,228 
Commercial2,697,986 2,627,610 2,586,536 2,560,849 2,555,575 
Consumer606,842 579,467 558,809 538,898 506,588 
Auto2,081,270 2,006,086 1,925,073 1,840,256 1,769,049 
Total$7,002,971 $6,866,586 $6,770,341 $6,697,900 $6,640,440 

(a) During 2Q 2023, the Company had a $3.7 million recovery from the sale of older fully charged-off auto and consumer loans.




11

OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
20232023202220222022
(Dollars in thousands) (unaudited)Q2Q1Q4Q3Q2
Early Delinquency (30 - 89 days past due)     
Mortgage$13,976 $11,417 $15,115 $15,769 $13,941 
Commercial11,668 (a)3,898 2,750 13,223 6,001 
Consumer8,188 8,478 8,895 9,280 7,766 
Auto117,237 96,294 112,191 111,637 91,407 
Total $151,069 $120,087 $138,951 $149,909 $119,115 
Early Delinquency Rates (30 - 89 days past due)     
Mortgage2.18 %1.73 %2.24 %2.32 %1.97 %
Commercial0.45 %(a)0.16 %0.11 %0.56 %0.25 %
Consumer1.38 %1.50 %1.66 %1.78 %1.56 %
Auto5.52 %4.73 %5.73 %5.94 %5.10 %
Total2.53 %2.11 %2.46 %2.75 %2.20 %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation$31,189 $32,084 $39,239 $39,577 $36,178 
GNMA's buy-back option program(22)18,418 26,348 32,590 29,050 33,431 
Total mortgage49,607 58,432 71,829 68,627 69,609 
Commercial28,643 (a)12,881 12,122 24,343 13,243 
Consumer11,026 11,402 12,008 11,956 9,744 
Auto130,367 110,749 131,804 132,507 106,637 
Total$219,643 $193,464 $227,763 $237,433 $199,233 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation4.86 %4.85 %5.81 %5.82 %5.10 %
GNMA's buy-back option program(22)2.87 %3.99 %4.82 %4.27 %4.72 %
Total mortgage7.73 %8.84 %10.63 %10.09 %9.82 %
Commercial1.09 %(a)0.53 %0.49 %1.03 %0.55 %
Consumer1.86 %2.02 %2.24 %2.30 %1.96 %
Auto6.14 %5.44 %6.73 %7.06 %5.95 %
Total3.67 %3.40 %4.04 %4.35 %3.68 %
Nonperforming Assets(14)
Mortgage$27,600 $30,641 $33,512 $33,225 $33,344 
Commercial43,188 (a)27,025 34,432 36,612 47,206 
Consumer2,907 2,979 3,128 2,725 1,987 
Auto13,130 14,455 19,613 20,870 15,329 
Total nonperforming loans86,825 75,100 90,685 93,432 97,866 
Foreclosed real estate10,639 9,250 11,214 14,561 15,061 
Other repossessed assets4,004 4,563 4,617 3,307 2,533 
Total nonperforming assets$101,468 $88,913 $106,516 $111,300 $115,460 
Nonperforming Loan Rates     
Mortgage4.30 %4.63 %4.96 %4.89 %4.70 %
Commercial1.65 %(a)1.11 %1.40 %1.55 %1.98 %
Consumer0.49 %0.53 %0.58 %0.52 %0.40 %
Auto0.62 %0.71 %1.00 %1.11 %0.86 %
Total loans1.45 %1.32 %1.61 %1.71 %1.81 %
(a) Refer to “(b)” in Table 2-1.
12

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
 20232022202220222022
(Dollars in thousands) (unaudited) Q2Q1Q4Q3Q2
Nonperforming PCD Loans(14)
Mortgage $256 $258 $259 $260 $261 
Commercial 8,104 8,446 8,927 9,746 10,057 
Total nonperforming loans $8,360 $8,704 $9,186 $10,006 $10,318 
Nonperforming PCD Loan Rates      
Mortgage 0.03 %0.03 %0.03 %0.02 %0.02 %
Commercial 5.30 %5.43 %5.61 %6.01 %5.77 %
Total 0.73 %0.74 %0.77 %0.81 %0.80 %
Total PCD Loans Held for Investment     
Mortgage $980,833 $1,007,751 $1,028,428 $1,059,448 $1,099,097 
Commercial 152,888 155,614 159,152 162,287 174,282 
Consumer 568 607 638 738 698 
Auto3,319 4,367 5,658 7,152 8,788 
Total loans $1,137,608 $1,168,339 $1,193,876 $1,229,625 $1,282,865 
 20232023202220222022
(Dollars in thousands) (unaudited) Q2Q1Q4Q3Q2
Total Nonperforming Loans(14)     
Mortgage $27,856 $30,899 $33,771 $33,485 $33,605 
Commercial 51,292 35,471 43,359 46,358 57,263 
Consumer 2,907 2,979 3,128 2,725 1,987 
Auto 13,130 14,455 19,613 20,870 15,329 
Total nonperforming loans $95,185 $83,804 $99,871 $103,438 $108,184 
Total Nonperforming Loan Rates 
Mortgage 1.72 %1.85 %1.98 %1.93 %1.86 %
Commercial 1.85 %1.37 %1.65 %1.83 %2.21 %
Consumer 0.49 %0.53 %0.58 %0.52 %0.40 %
Auto 0.62 %0.71 %1.00 %1.11 %0.85 %
Total 1.34 %1.22 %1.46 %1.55 %1.61 %
Total Loans Held for Investment     
Mortgage $1,622,388 $1,668,898 $1,704,221 $1,739,279 $1,807,852 
Commercial 2,774,398 2,581,567 2,629,929 2,539,668 2,595,867 
Consumer 593,690 564,972 537,257 520,921 499,102 
Auto 2,127,395 2,039,043 1,963,915 1,885,097 1,799,840 
Total loans $7,117,871 $6,854,480 $6,835,322 $6,684,965 $6,702,661 


13

OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended June 30, 2023
(Dollars in thousands) (unaudited)MortgageCommercialConsumerAutoTotal
Allowance for credit losses Non-PCD:     
Balance at beginning of period$9,083 $37,774 $24,664 $69,864 $141,385 
(Recapture of) provision for credit losses(556)14,089 4,517 (1,800)16,250 
Charge-offs(191)(3,496)(5,518)(9,169)(18,374)
Recoveries334 237 2,003 (a)8,332 (a)10,906 
Balance at end of period$8,670 $48,604 $25,666 $67,227 $150,167 
Allowance for credit losses PCD:
Balance at beginning of period$8,717 $1,693 $12 $77 $10,499 
(Recapture of) provision for credit losses(679)(604)78 (401)(1,606)
Charge-offs(1)— (124)(34)(159)
Recoveries260 319 42 401 1,022 
Balance at end of period$8,297 $1,408 $8 $43 $9,756 
Allowance for credit losses summary:
Balance at beginning of period$17,800 $39,467 $24,676 $69,941 $151,884 
(Recapture of) provision for credit losses(1,235)13,485 4,595 (2,201)14,644 
Charge-offs(192)(3,496)(5,642)(9,203)(18,533)
Recoveries594 556 2,045 (a)8,733 (a)11,928 
Balance at end of period$16,967 $50,012 $25,674 $67,270 $159,923 
Allowance coverage ratio1.05 %1.80 %4.32 %3.16 %2.25 %
(a)Refer to “(a)” in Table 6-1.

14

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.
20232023202220222022
(Dollars in thousands) (unaudited)Q2Q1Q4Q3Q2
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity$1,099,751 $1,089,510 $1,042,406 $993,867 $1,014,812 
Less:  Intangible assets(108,384)(110,109)(111,834)(115,731)(117,869)
Tangible common equity$991,367 $979,401$930,572$878,136$896,943
     
Common shares outstanding at end of period47,076 47,611 47,581 47,563 47,554 
Tangible book value per common share (Non-GAAP)$21.06 $20.57 $19.56 $18.46 $18.86 
Total Assets to Tangible Assets     
Total assets  $10,031,547 $10,057,581 $9,818,780 $10,058,179 $10,247,774 
Less:  Intangible assets(108,384)(110,109)(111,834)(115,731)(117,869)
Tangible assets (Non-GAAP)$9,923,163 $9,947,472 $9,706,946 $9,942,448 $10,129,905 
Non-GAAP TCE Ratio     
Tangible common equity$991,367 $979,401$930,572$878,136$896,943
Tangible assets9,923,163 9,947,472 9,706,946 9,942,448 10,129,905 
TCE ratio9.99 %9.85 %9.59 %8.83 %8.85 %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity$1,108,880 $1,077,703 $1,025,132 $1,045,792 $1,032,270 
Less:  Average intangible assets(109,130)(110,888)(114,412)(116,612)(118,750)
Average tangible common equity$999,750 $966,815$910,720$929,180$913,520



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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
20232023 202220222022
(Dollars in thousands) (unaudited)Q2Q1 Q4Q3Q2
Regulatory Capital Metrics      
Common equity Tier 1 capital$1,086,587$1,063,919$1,037,385$995,342$960,015
Tier 1 capital1,086,5871,063,9191,037,385995,342960,015
Total risk-based capital(15)1,183,9291,158,7441,132,6581,088,5841,053,766
Risk-weighted assets7,753,9287,559,1667,605,4667,440,4827,499,171
Regulatory Capital Ratios
Common equity Tier 1 capital ratio(16)14.01 %14.07 %13.64 %13.38 %12.80 %
Tier 1 risk-based capital ratio(17)14.01 %14.07 %13.64 %13.38 %12.80 %
Total risk-based capital ratio(18)15.27 %15.33 %14.89 %14.63 %14.05 %
Leverage ratio(19)10.85 %10.75 %10.36 %9.82 %9.46 %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity$1,099,751$1,089,510 $1,042,406 $993,867 (a)$1,014,812 
Plus: CECL transition adjustment(20)13,70413,70420,55720,55720,557
Less: Unrealized losses on available-for-sale securities, net of income tax89,63978,51293,663104,14549,606
Unrealized (gains) losses on cash flow hedges, net of income tax(75)(172)(254)(256)(104)
Total adjusted stockholders’equity1,203,0191,181,5541,156,3721,118,3131,084,871
Less: Disallowed goodwill(84,241)(84,241)(84,241)(86,069)(86,069)
Disallowed other intangible assets, net(18,015)(19,147)(20,279)(21,617)(22,997)
Disallowed deferred tax assets, net(14,176)(14,247)(14,467)(15,285)(15,790)
Common equity Tier 1 capital and Tier 1 capital1,086,5871,063,9191,037,385995,342960,015
Plus Tier 2 capital:  Qualifying allowance for credit losses97,34294,82595,27393,24293,751
Total risk-based capital$1,183,929$1,158,744 $1,132,658 $1,088,584 $1,053,766 



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OFG Bancorp (NYSE: OFG)
Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)
(1)Total banking and financial service revenues.
(2)Net interest income plus non-interest income, net (core)
(3)Calculated based on net income available to common shareholders divided by average common shares outstanding for the period.
(4)Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted.
(5)Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.
(6)Information includes all loans held for investment, including PCD loans.
(7)Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(8)Calculated based on annualized income, net of tax, for the period divided by average total assets for the period.
(9)Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period.
(10)Calculated based on non-interest expense for the period divided by total net interest income and total banking and financial services revenues for the period.
(11)Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(12)Non-GAAP ratios. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.
(13)Production of new loans (excluding renewals).
(14)Most PCD loans are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Therefore, they are not included as non-performing loans. PCD loan pools that are not accreting interest income are deemed to be non-performing loans and presented separately.
(15)Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(16)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.
(17)Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(18)Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.
(19)Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
(20)In March 2020, in light of recent strains on the U.S. economy as a result of the coronavirus disease 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 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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