Document

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

Exhibit 99

OFG Bancorp Reports 3Q24 Results

SAN JUAN, Puerto Rico, October 16, 2024 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the third quarter ended September 30, 2024. EPS diluted of $1.00 compared to $1.08 in 2Q24 and $0.95 in 3Q23. Total core revenues of $174.1 million compared to $179.4 million in 2Q24 and $172.2 million in 3Q23.

CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “The third quarter was another solid quarter of performance with EPS-diluted up 5.3% year-over-year on a 1.1% increase in total core revenues. We continued to produce consistent, core operating results, and digital adoption of our new and upgraded products, services, and self-service tools keeps steadily growing. Today we celebrate our 60th anniversary in business by renewing our commitment to bring progress to our customers, employees, shareholders, and the communities we serve. Thanks to all our team members for always being more than ready to help our customers today and tomorrow.”

3Q24 Highlights

Performance Metrics: Net interest margin of 5.43%, return on average assets of 1.66%, return on average tangible common stockholders’ equity of 15.94%, and efficiency ratio of 52.60%.

Total Interest Income of $189.0 million compared to $187.7 million in 2Q24 and $165.7 million in 3Q23. Compared to 2Q24, 3Q24 increased $1.4 million, primarily reflecting higher balances of investment securities and yields, higher balances of loans, and the absence of a $2.1 million loan recovery in 2Q24.

Total Interest Expense of $41.2 million compared to $40.3 million in 2Q24 and $23.9 million in 3Q23. Compared to 2Q24, 3Q24 increased $0.8 million, reflecting higher average balances of higher-cost borrowings and brokered deposits and slightly reduced average core deposit balances and cost.

Total Banking & Financial Service Revenues of $26.3 million compared to $32.1 million in 2Q24 and $30.4 million in 3Q23. 3Q24 primarily reflected $2.7 million in reduced interchange fees due to the Durbin Amendment, $2.1 million reduced MSR valuation due to lower long-term rates, and $0.3 million revenue from the acquisition in late August of a $1.7 billion Puerto Rico residential mortgage servicing portfolio.

Pre-Provision Net Revenues of $83.1 million compared to $86.8 million in 2Q24 and $82.3 million in 3Q23.

Total Provision for Credit Losses of $21.4 million compared to $15.6 million in 2Q24 and $16.4 million in 3Q23. 3Q24 primarily reflected $18.7 million for increased loan volume; $5.2 million related to the annual update of auto risk drivers and consumer loan loss factors, and the extension of cash flows in a PR commercial loan up for renewal; and a $2.7 million reserve release mainly due to an improved U.S. macroeconomic perspective.

Credit Quality: Net charge-offs of $17.1 million (0.90% of average loans) compared to $15.0 million (0.79%) in 2Q24 and $18.8 million (1.05%) in 3Q23. 3Q24 early and total delinquency rates were 2.78% and 4.10%, respectively. The nonperforming loan rate was 1.11%. The 3Q24 total delinquency rate increased sequentially due to booking of the GNMA buy-back option program related to the previously mentioned mortgage servicing portfolio acquisition.

Total Non-Interest Expense of $91.6 million compared to $93.0 million in 2Q24 and $90.2 million in 3Q23. 3Q24 included a $2.3 million credit and debit card processing business contract renewal rebate and $1.3 million in expenses related to sales of repossessed assets.

Effective Tax Rate of 23.9% compared to 28.2% in 2Q24 and 31.9% in 3Q23. Lower 3Q24 ETR reflected an estimated 2024 ETR of 26.8% due to higher forecasted business activities with preferential tax treatment under the Puerto Rico tax code, coupled with discrete benefits of $3.1 million mainly related to stock vested in 1Q24 and tax credit purchases.

Loans Held for Investment (EOP) of $7.75 billion compared to $7.64 billion in 2Q24 and $7.26 billion in 3Q23. Compared to 2Q24, 3Q24 increased 1.5%, reflecting growth in Puerto Rico and U.S. commercial loans and Puerto Rico auto and consumer loans, and regular paydowns and securitization of residential mortgages. Year over year, 3Q24 loans increased 6.7%.

New Loan Production of $572.2 million compared to $589.0 million in 2Q24 and $567.5 million in 3Q23. Compared to 2Q24, 3Q24 production reflected increases in U.S. commercial and Puerto Rico consumer lending, and decreases in Puerto Rico commercial and auto lending.

Total Investments (EOP) of $2.61 billion compared to $2.48 billion in 2Q24 and $2.07 billion in 3Q23.

Customer Deposits (EOP) of $9.53 billion compared to $9.60 billion in 2Q24 and $8.54 billion in 3Q23. Compared to 2Q24, 3Q24 reflected increases in savings and time deposits, and lower demand deposits.

Total Borrowings & Brokered Deposits (EOP) of $346.5 million compared to $201.2 million in 2Q24 and $454.4 million in 3Q23.

Cash & Cash Equivalents (EOP) of $680.6 million compared to $740.4 million in 2Q24 and $532.7 million in 3Q23.

Capital: CET1 ratio was 14.37% compared to 14.29% in 2Q24 and 14.06% in 3Q23. The Tangible Common Equity ratio was 10.72% compared to 10.09% in 2Q24 and 9.74% in 3Q23. Tangible Book Value per share increased to $26.15 compared to $24.18 in 2Q24 and $21.01 in 3Q23.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 3Q24 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 225-9448 or (203) 518-9708. Conference ID: OFGQ324. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter. OFG’s Financial Supplement, with full financial tables for the quarter ended September 30, 2024, and the 3Q24 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.

Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.

Forward Looking Statements

The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, pandemics, and other natural disasters; and (iv) competition in the financial services industry. For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

About OFG Bancorp

Now in its 60th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services, and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Our mission is to make progress possible for our customers, employees, shareholders, and the communities we serve. Visit us at www.ofgbancorp.com.

# # #

Contacts

Puerto Rico & USVI: Lumarie Vega López (lumarie.vega@orientalbank.com) and Victoria Maldonado Rodríguez (victoria.maldonado@orientalbank.com) at (787) 771-6800

US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder (sanreder@ofgbancorp.com) at (212) 532-3232

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 September 30, 2024 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.


	Table of Contents
		Pages

OFG Bancorp (Consolidated Financial Information)
Table 1:	Financial and Statistical Summary - Consolidated	2
Table 2:	Consolidated Statements of Operations	4
Table 3:	Consolidated Statements of Financial Condition	6
Table 4:	Information on Loan Portfolio and Production	7
Table 5:	Average Balances, Net Interest Income and Net Interest Margin	9
Table 6:	Loan Information and Performance Statistics	11
Table 7:	Allowance for Credit Losses	14
Table 8:	Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital	15
Table 9:	Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1-8)	17

OFG Bancorp (NYSE: OFG)

Table 1-1: Financial and Statistical Summary - Consolidated


		2024				2024			2024			2023			2023
(Dollars in thousands, except per share data) (unaudited)		Q3				Q2			Q1			Q4			Q3
Statement of Operations
Net interest income		$	147,875			$	147,325		$	144,102		$	143,542		$	141,787
Non-interest income, net (core)	(1)	26,271			(a)	32,085			30,059			32,061			30,404
Total core revenues	(2)	174,146			(a)	179,410			174,161			175,603			172,191
Non-interest expense		91,600				92,960			91,412			94,099			90,158
Pre-provision net revenues	(21)	83,143				86,841			83,038			88,151			82,328
Total provision for credit losses		21,359				15,581			15,121			19,719			16,430
Net income before income taxes		61,784				71,260			67,917			68,432			65,898
Income tax expense		14,784				20,129			18,225			21,835			21,025
Net income available to common stockholders		47,000				51,131			49,692			46,597			44,873
Common Share Statistics
Earnings per common share - basic	(3)	$	1.01			$	1.09		$	1.06		$	0.99		$	0.95
Earnings per common share - diluted	(4)	$	1.00			$	1.08		$	1.05		$	0.98		$	0.95
Average common shares outstanding		46,560				46,952			47,096			47,061			47,114
Average common shares outstanding and equivalents		46,846				47,131			47,343			47,386			47,392
Cash dividends per common share		$	0.25			$	0.25		$	0.25		$	0.22		$	0.22
Book value per common share (period end)		$	28.31			$	26.37		$	25.75		$	25.36		$	23.28
Tangible book value per common share (period end)	(5)	$	26.15			$	24.18		$	23.55		$	23.13		$	21.01
Balance Sheet (Average Balances)
Loans	(6)	$	7,634,511			$	7,612,407		$	7,541,757		$	7,417,084		$	7,191,243
Interest-earning assets		10,837,380				10,758,623			10,739,590			10,129,061			9,702,167
Total assets		11,347,795				11,233,202			11,199,867			10,588,584			10,180,931
Core deposits		9,588,752				9,599,842			9,532,790			8,691,516			8,621,652
Total deposits		9,609,820				9,601,408			9,591,527			8,834,234			8,624,052
Interest-bearing deposits		7,042,467				7,023,192			7,055,207			6,282,916			6,042,165
Borrowings		241,062				219,903			220,773			459,315			263,981
Stockholders' equity		1,280,760				1,223,669			1,213,469			1,128,747			1,127,602

Performance Metrics
Net interest margin	(7)	5.43		%		5.51		%	5.40		%	5.62		%	5.80		%
Return on average assets	(8)	1.66		%		1.82		%	1.77		%	1.76		%	1.76		%
Return on average tangible common stockholders' equity	(9)	15.94		%		18.24		%	17.92		%	18.22		%	17.59		%
Efficiency ratio	(10)	52.60		%		51.81		%	52.49		%	53.59		%	52.36		%
Full-time equivalent employees, period end		2,236				2,239			2,230			2,248			2,264
Credit Quality Metrics
Allowance for credit losses		$	161,500			$	157,301		$	156,563		$	161,106		$	157,529
Allowance as a % of loans held for investment		2.08		%		2.06		%	2.08		%	2.14		%	2.17		%
Net charge-offs		$	17,103			$	15,013		$	19,812		$	16,282		$	18,836
Net charge-off rate	(11)	0.90		%		0.79		%	1.05		%	0.88		%	1.05		%
Early delinquency rate (30 - 89 days past due)		2.78		%		2.81		%	2.41		%	2.76		%	2.75		%
Total delinquency rate (30 days and over)		4.10		%	(b)	3.71		%	3.30		%	3.76		%	3.78		%
Capital Ratios (period end) (Non-GAAP)	(12)(20)
Leverage ratio		11.12		%		10.86		%	10.76		%	11.03		%	11.03		%
Common equity Tier 1 capital ratio		14.37		%		14.29		%	14.45		%	14.12		%	14.06		%
Tier 1 risk-based capital ratio		14.37		%		14.29		%	14.45		%	14.12		%	14.06		%
Total risk-based capital ratio		15.63		%		15.54		%	15.71		%	15.37		%	15.31		%
Tangible common equity ("TCE") ratio		10.72		%		10.09		%	10.06		%	9.68		%	9.74		%

(a)During 3Q 2024, the Durbin Amendment became applicable to the Company as a result of crossing the $10 billion asset threshold in December 31, 2023, reducing debit card interchange fees in the quarter by $2.7 million.

(b)During 3Q 2024, the Company acquired the servicing rights of a $1.7 billion mortgage loan portfolio being subserviced. At September 30, 2024, the fair value of its servicing rights of $21.5 million was included as servicing asset. Defaulted loans under the GNMA buy-back option program corresponding to this servicing portfolio and reported as delinquent loans, along with its corresponding liability, amounted to $24.2 million.

OFG Bancorp (NYSE: OFG)

Table 1-2: Financial and Statistical Summary - Consolidated (Continued)


		2024				2023
(Dollars in thousands, except per share data) (unaudited)		YTD				YTD
Statement of Operations
Net interest income		$	439,302			$	417,328
Non-interest income, net (core)	(1)	88,415			(a)	89,794
Total core revenues	(2)	527,717			(a)	507,122
Non-interest expense		275,972				269,266
Pre-provision net revenues	(21)	253,022				237,735
Total provision for credit losses		52,061				40,919
Net income before income taxes		200,961				196,816
Income tax expense		53,138				61,541
Net income available to common stockholders		147,823				135,275
Common Share Statistics
Earnings per common share - basic	(3)	$	3.15			$	2.86
Earnings per common share - diluted	(4)	$	3.14			$	2.84
Average common shares outstanding		46,868				47,325
Average common shares outstanding and equivalents		47,111				47,605
Cash dividends per common share		$	0.75			$	0.66
Book value per common share (period end)		$	28.31			$	23.28
Tangible book value per common share (period end)	(5)	$	26.15			$	21.01
Balance Sheet (Average Balances)
Loans	(6)	$	7,596,365			$	7,021,456
Interest-earning assets		10,778,878				9,539,389
Total assets		11,259,969				10,035,121
Core deposits		9,573,850				8,582,642
Total deposits		9,600,952				8,586,823
Interest-bearing deposits		7,040,298				5,983,088
Borrowings		227,296				185,534
Stockholders' equity		1,239,451				1,104,911

Performance Metrics
Net interest margin	(7)	5.44		%		5.85		%
Return on average assets	(8)	1.75		%		1.80		%
Return on average tangible common stockholders' equity	(9)	17.34		%		18.11		%
Efficiency ratio	(10)	52.30		%		53.10		%
Full-time equivalent employees, period end		2,236				2,264
Credit Quality Metrics
Allowance for credit losses		$	161,500			$	157,529
Allowance as a % of loans held for investment		2.08		%		2.17		%
Net charge-offs		$	51,928			$	35,562
Net charge-off rate	(11)	0.91		%		0.68		%
Early delinquency rate (30 - 89 days past due)		2.78		%		2.75		%
Total delinquency rate (30 days and over)		4.10		%	(b)	3.78		%

(a)Refer to “(a)” in Table 1-1.

(b)Refer to “(b)” in Table 1-1.

OFG Bancorp (NYSE: OFG)

Table 2-1: Consolidated Statements of Operations


	Quarter Ended
(Dollars in thousands, except per share data) (unaudited)	September 30, 2024			June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Interest income:
Loans
Non-PCD loans	$	139,358		$	137,741	$	132,972	$	131,167	$	124,847
PCD loans	15,052			16,516		16,622		17,609		17,292
Total interest income from loans	154,410			154,257		149,594		148,776		142,139
Investment securities and cash	34,620			33,401		33,832		27,423		23,569
Total interest income	189,030			187,658		183,426		176,199		165,708
Interest expense:
Deposits
Core deposits	38,123			37,791		35,989		24,753		20,787
Brokered deposits	221			21		803		1,980		32
Total deposits	38,344			37,812		36,792		26,733		20,819
Borrowings	2,811			2,521		2,532		5,924		3,102
Total interest expense	41,155			40,333		39,324		32,657		23,921
Net interest income	147,875			147,325		144,102		143,542		141,787
Provision for credit losses, excluding PCD loans	21,070			16,913		16,605		20,681		16,648
Provision for (recapture of) credit losses on PCD loans	289			(1,332)		(1,484)		(962)		(218)
Total provision for credit losses	21,359			15,581		15,121		19,719		16,430
Net interest income after provision for credit losses	126,516			131,744		128,981		123,823		125,357
Non-interest income:
Banking service revenues	15,554		(a)	18,781		17,259		17,822		17,303
Wealth management revenues	8,449			8,440		8,107		9,985		7,691
Mortgage banking activities	2,268			4,864		4,693		4,254		5,410
Total banking and financial service revenues	26,271			32,085		30,059		32,061		30,404

Other income, net	597			391		289		6,647		295
Total non-interest income, net	26,868			32,476		30,348		38,708		30,699
Non-interest expense:
Compensation and employee benefits	38,468			38,467		39,816		41,418		38,095
Occupancy, equipment and infrastructure costs	15,124			14,393		14,322		15,729		14,887
General and administrative expenses	36,736			40,831		36,606		35,803		37,203
Foreclosed real estate and other repossessed assets expenses (income), net	1,272			(731)		668		1,149		(27)


Total non-interest expense	91,600			92,960		91,412		94,099		90,158
Income before income taxes	61,784			71,260		67,917		68,432		65,898
Income tax expense	14,784			20,129		18,225		21,835		21,025


Net income available to common shareholders	$	47,000		$	51,131	$	49,692	$	46,597	$	44,873

(a)Refer to “(a)” in Table 1-1.

OFG Bancorp (NYSE: OFG)

Table 2-2: Consolidated Statements of Operations (Continued)


(Dollars in thousands, except per share data) (unaudited)	Nine-month period ended
	September 30, 2024			September 30, 2023
Interest income:
Loans
Non-PCD loans	$	410,071		$	350,876
PCD loans	48,190			55,092
Total interest income from loans	458,261			405,968
Investment securities and cash	101,853			66,713
Total interest income	560,114			472,681
Interest expense:
Deposits
Core deposits	111,903			49,192
Brokered deposits	1,045			40
Total deposits	112,948			49,232
Borrowings	7,864			6,121
Total interest expense	120,812			55,353
Net interest income	439,302			417,328
Provision for credit losses, excluding PCD loans	54,588			44,034
Recapture of credit losses on PCD loans	(2,527)			(3,115)
Total provision for credit losses	52,061			40,919
Net interest income after provision for credit losses	387,241			376,409
Non-interest income:
Banking service revenues	51,594		(a)	52,256
Wealth management revenues	24,996			23,005
Mortgage banking activities	11,825			14,533
Total banking and financial service revenues	88,415			89,794

Other income (loss), net	1,277			(121)
Total non-interest income, net	89,692			89,673
Non-interest expense:
Compensation and employee benefits	116,751			114,409
Occupancy, equipment and infrastructure costs	43,839			43,506
General and administrative expenses	114,173			112,905
Foreclosed real estate and other repossessed assets expenses (income), net	1,209			(1,554)


Total non-interest expense	275,972			269,266
Income before income taxes	200,961			196,816
Income tax expense	53,138			61,541


Net income available to common shareholders	$	147,823		$	135,275

(a)Refer to “(a)” in Table 1-1.

(a)Refer to “(a)” in Table 2-1.

(b)Refer to “(b)” in Table 2-1.

(c)Refer to “(c)” in Table 2-1.

(d)Refer to “(d)” in Table 2-1. During the year ended December 31, 2023, salaries increased by $6.7 million.

OFG Bancorp (NYSE: OFG)

Table 3: Consolidated Statements of Financial Condition


(Dollars in thousands) (unaudited)		September 30, 2024			June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Cash and cash equivalents		$	680,587		$	740,429	$	754,392	$	748,173	$	532,699
Investments:
Trading securities		18			16		14		13		14
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities		2,228,399			1,895,067		1,746,195		1,801,849		1,511,779
US treasury securities		1,136			200,658		150,915		296,799		739
Other investment securities		567			581		597		616		635
Total investment securities available-for-sale		2,230,102			2,096,306		1,897,707		2,099,264		1,513,153

Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities		297,713			303,621		309,764		314,710		320,249
US treasury securities		—			—		199,727		199,314		198,896
Other investment securities		35,000			35,000		35,000		35,000		—
Total investment securities held-to-maturity		332,713			338,621		544,491		549,024		519,145
Equity securities		45,692			41,074		40,162		38,469		42,162
Total investments		2,608,525			2,476,017		2,482,374		2,686,770		2,074,474
Loans, net		7,604,700		(a)	7,503,142		7,411,378		7,401,618		7,130,052
Other assets:

Prepaid expenses		98,755			88,137		61,916		62,858		67,191
Deferred tax asset, net		4,130			4,094		4,379		4,923		11,121
Foreclosed real estate and repossessed properties		11,388			12,239		17,694		14,812		13,987
Premises and equipment, net		105,279			104,384		104,980		104,102		103,040
Goodwill		84,241			84,241		84,241		84,241		84,241
Other intangibles		16,260			17,738		19,216		20,694		22,419
Right of use assets		20,355			20,298		21,606		21,725		20,011
Servicing asset		68,512		(a)	49,789		49,553		49,520		50,601
Accounts receivable and other assets		158,650			158,577		147,506		145,017		147,302
Total assets		$	11,461,382		$	11,259,085	$	11,159,235	$	11,344,453	$	10,257,138

Deposits:
Demand deposits		$	5,859,787		$	6,017,364	$	6,036,891	$	6,050,428	$	4,894,958
Savings accounts		2,019,832			2,002,342		2,001,770		2,088,102		2,216,162
Time deposits		1,653,402			1,585,126		1,507,037		1,461,459		1,427,497
Brokered deposits		75,631			418		2,576		162,180		2,936
Total deposits		9,608,652			9,605,250		9,548,274		9,762,169		8,541,553
Borrowings:
Securities sold under agreements to repurchase		—			—		—		—		150,701
Advances from FHLB and other borrowings		270,827			200,741		200,766		200,770		300,774

Total borrowings		270,827			200,741		200,766		200,770		451,475
Other liabilities:


Acceptances outstanding		26,055			28,504		25,826		25,576		30,984
Lease liability		22,604			22,605		23,969		24,029		22,269
GNMA buy-back option program liability	(22)	41,801		(a)	19,008		18,510		19,401		18,227
Deferred tax liability, net		57,503			33,873		22,876		22,444		—
Accrued expenses and other liabilities		115,808			121,402		103,361		96,584		97,167
Total liabilities		10,143,250			10,031,383		9,943,582		10,150,973		9,161,675
Stockholders' equity:

Common stock		59,885			59,885		59,885		59,885		59,885
Additional paid-in capital		639,487			637,895		636,208		638,667		637,389
Legal surplus		164,990			160,560		155,732		150,967		146,774
Retained earnings		737,815			706,807		672,455		639,324		607,466
Treasury stock, at cost		(251,055)			(250,951)		(226,896)		(228,350)		(228,374)
Accumulated other comprehensive loss, net		(32,990)			(86,494)		(81,731)		(67,013)		(127,677)
Total stockholders' equity		1,318,132			1,227,702		1,215,653		1,193,480		1,095,463
Total liabilities and stockholders' equity		$	11,461,382		$	11,259,085	$	11,159,235	$	11,344,453	$	10,257,138

(a)Refer to “(b)” in Table 1-1.

OFG Bancorp (NYSE: OFG)

Table 4-1: Information on Loan Portfolio and Production


(Dollars in thousands) (unaudited)		September 30, 2024			June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Non-PCD:
Mortgage, excluding GNMA buy-back option program		$	577,320		$	581,023	$	591,429	$	609,846	$	630,187
Mortgage GNMA buy-back option program	(22)	41,801		(a)	19,008		18,510		19,401		18,227

Commercial PR		2,318,964			2,291,753		2,178,748		2,186,228		1,985,535
Commercial US		680,388			662,026		740,665		755,228		707,593
Consumer		663,748			643,572		627,436		619,894		612,623
Auto		2,483,611			2,427,089		2,339,836		2,272,530		2,208,993
		6,765,832			6,624,471		6,496,624		6,463,127		6,163,158
Less: Allowance for credit losses		(155,133)			(150,849)		(148,767)		(152,610)		(148,210)
Total non-PCD loans held for investment, net		6,610,699			6,473,622		6,347,857		6,310,517		6,014,948

PCD:
Mortgage		864,491			885,096		909,106		933,362		955,596
Commercial PR		119,029			128,584		132,035		135,447		139,857
Consumer		560			605		544		552		572
Auto		664			951		1,358		1,891		2,552
		984,744			1,015,236		1,043,043		1,071,252		1,098,577
Less: Allowance for credit losses		(6,367)			(6,452)		(7,796)		(8,496)		(9,319)
Total PCD loans held for investment, net		978,377			1,008,784		1,035,247		1,062,756		1,089,258
Total loans held for investment		7,589,076			7,482,406		7,383,104		7,373,273		7,104,206
Mortgage loans held for sale		10,908			8,375		9,370		—		564
Other loans held for sale		4,716			12,361		18,904		28,345		25,282
Total loans, net		$	7,604,700		$	7,503,142	$	7,411,378	$	7,401,618	$	7,130,052

Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program		$	1,441,811		$	1,466,119	$	1,500,535	$	1,543,208	$	1,585,783
Mortgage GNMA buy-back option program	(22)	41,801		(a)	19,008		18,510		19,401		18,227

Commercial PR		2,437,993			2,420,337		2,310,783		2,321,675		2,125,392
Commercial US		680,388			662,026		740,665		755,228		707,593
Consumer		664,308			644,177		627,980		620,446		613,195
Auto		2,484,275			2,428,040		2,341,194		2,274,421		2,211,545
		7,750,576			7,639,707		7,539,667		7,534,379		7,261,735
Less: Allowance for credit losses		(161,500)			(157,301)		(156,563)		(161,106)		(157,529)
Total loans held for investment, net		7,589,076			7,482,406		7,383,104		7,373,273		7,104,206
Mortgage loans held for sale		10,908			8,375		9,370		—		564
Other loans held for sale		4,716			12,361		18,904		28,345		25,282
Total loans, net		$	7,604,700		$	7,503,142	$	7,411,378	$	7,401,618	$	7,130,052

(a)Refer to “(b)” in Table 1-1.

OFG Bancorp (NYSE: OFG)

Table 4-2: Information on Loan Portfolio and Production


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

OFG Bancorp (NYSE: OFG)

Table 5-1: Average Balances, Net Interest Income and Net Interest Margin


	2024 Q3						2024 Q2						2024 Q1						2023 Q4						2023 Q3
(Dollars in thousands) (unaudited)	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest earning assets:
Cash equivalents	$	630,836	$	8,362	5.27	%	$	656,728	$	8,735	5.35	%	$	600,291	$	7,996	5.36	%	$	517,025	$	6,906	5.30	%	$	680,864	$	9,025	5.26	%
Investment securities	2,572,033		26,258		4.08	%	2,489,488		24,666		3.96	%	2,597,542		25,836		3.98	%	2,194,952		20,517		3.74	%	1,830,060		14,544		3.18	%
Loans held for investment
Non-PCD loans	6,634,043		139,358		8.36	%	6,576,634		137,741		8.42	%	6,476,048		132,972		8.26	%	6,320,321		131,167		8.23	%	6,065,822		124,847		8.17	%
PCD loans	1,000,468		15,052		6.02	%	1,035,773		16,516		6.38	%	1,065,709		16,622		6.24	%	1,096,763		17,609		6.42	%	1,125,421		17,292		6.15	%
Total loans	7,634,511		154,410		8.05	%	7,612,407		154,257		8.15	%	7,541,757		149,594		7.98	%	7,417,084		148,776		7.96	%	7,191,243		142,139		7.84	%
Total interest-earning assets	$	10,837,380	$	189,030	6.94	%	$	10,758,623	$	187,658	7.02	%	$	10,739,590	$	183,426	6.87	%	$	10,129,061	$	176,199	6.90	%	$	9,702,167	$	165,708	6.78	%

Interest bearing liabilities:
Deposits
NOW accounts	$	3,395,425	$	20,013	2.34	%	$	3,448,144	$	20,964	2.45	%	$	3,472,852	$	20,516	2.38	%	$	2,559,135	$	9,551	1.48	%	$	2,445,955	$	6,974	1.13	%
Savings accounts	2,009,028		4,777		0.95	%	2,020,653		4,587		0.91	%	2,042,865		4,417		0.87	%	2,141,230		4,986		0.92	%	2,260,678		5,478		0.96	%
Time deposits	1,616,946		12,202		3.00	%	1,552,829		11,109		2.88	%	1,480,753		9,924		2.70	%	1,439,833		8,895		2.45	%	1,333,132		7,014		2.09	%
Brokered deposits	21,068		221		4.17	%	1,566		21		5.28	%	58,737		803		5.50	%	142,718		1,980		5.50	%	2,400		32		5.30	%
	7,042,467		37,213		2.10	%	7,023,192		36,681		2.10	%	7,055,207		35,660		2.03	%	6,282,916		25,412		1.60	%	6,042,165		19,498		1.28	%
Non-interest bearing deposit accounts	2,567,353		—		—		2,578,216		—		—		2,536,320		—		—		2,551,318		—		—		2,581,887		—		—
Fair value premium and core deposit intangible amortization	—		1,131		—		—		1,131		—		—		1,132		—		—		1,321		—		—		1,321		—
Total deposits	9,609,820		38,344		1.59	%	9,601,408		37,812		1.58	%	9,591,527		36,792		1.54	%	8,834,234		26,733		1.20	%	8,624,052		20,819		0.96	%
Borrowings
Securities sold under agreements to repurchase	—		—		—	%	—		—		—	%	—		—		—	%	183,858		2,578		5.56	%	52,365		728		5.52	%
Advances from FHLB and other borrowings	241,062		2,811		4.64	%	219,903		2,521		4.61	%	220,773		2,532		4.61	%	275,457		3,346		4.82	%	211,616		2,374		4.45	%

Total borrowings	241,062		2,811		4.64	%	219,903		2,521		4.61	%	220,773		2,532		4.61	%	459,315		5,924		5.12	%	263,981		3,102		4.66	%
Total interest-bearing liabilities	$	9,850,882	$	41,155	1.66	%	$	9,821,311	$	40,333	1.65	%	$	9,812,300	$	39,324	1.61	%	$	9,293,549	$	32,657	1.39	%	$	8,888,033	$	23,921	1.07	%
Interest rate spread			$	147,875	5.28	%			$	147,325	5.36	%			$	144,102	5.26	%			$	143,542	5.51	%			$	141,787	5.71	%
Net interest margin					5.43	%					5.51	%					5.40	%					5.62	%					5.80	%

Core deposits: (Non-GAAP)

NOW accounts	$	3,395,425	$	20,013	2.34	%	$	3,448,144	$	20,964	2.45	%	$	3,472,852	$	20,516	2.38	%	$	2,559,135	$	9,551	1.48	%	$	2,445,955	$	6,974	1.13	%
Savings accounts	2,009,028		4,777		0.95	%	2,020,653		4,587		0.91	%	2,042,865		4,417		0.87	%	2,141,230		4,986		0.92	%	2,260,678		5,478		0.96	%
Time deposits	1,616,946		12,202		3.00	%	1,552,829		11,109		2.88	%	1,480,753		9,924		2.70	%	1,439,833		8,895		2.45	%	1,333,132		7,014		2.09	%
	7,021,399		36,992		2.10	%	7,021,626		36,660		2.10	%	6,996,470		34,857		2.00	%	6,140,198		23,432		1.51	%	6,039,765		19,466		1.28	%
Non-interest bearing deposit accounts	2,567,353		—		—		2,578,216		—		—		2,536,320		—		—		2,551,318		—		—		2,581,887		—		—
Total core deposits	$	9,588,752	$	36,992	1.53	%	$	9,599,842	$	36,660	1.54	%	$	9,532,790	$	34,857	1.47	%	$	8,691,516	$	23,432	1.07	%	$	8,621,652	$	19,466	0.90	%
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings	$	241,062	$	2,811	4.64	%	$	219,903	$	2,521	4.61	%	$	220,773	$	2,532	4.61	%	$	459,315	$	5,924	5.12	%	$	263,981	$	3,102	4.66	%
Brokered deposits	21,068		221		4.17	%	1,566		21		5.28	%	58,737		803		5.50	%	142,718		1,980		5.50	%	2,400		32		5.30	%
Total borrowings and brokered deposits	$	262,130	$	3,032	4.60	%	$	221,469	$	2,542	4.62	%	$	279,510	$	3,335	4.80	%	$	602,033	$	7,904	5.21	%	$	266,381	$	3,134	4.67	%

OFG Bancorp (NYSE: OFG)

Table 5-2: Average Balances, Net Interest Income and Net Interest Margin (Continued)


	2024 YTD							2023 YTD
(Dollars in thousands) (unaudited)	Average Balance			Interest Income/ Expense		Yield/ Rate		Average Balance			Interest Income/ Expense			Yield/ Rate

Interest earning assets:
Cash equivalents	$	629,423		$	25,093	5.33	%	$	662,813		$	24,499		4.94	%
Investment securities	2,553,090			76,760		4.01	%	1,855,120			42,214			3.03	%
Loans held for investment
Non-PCD loans	6,562,504			410,071		8.35	%	5,860,662			350,876			8.00	%
PCD loans	1,033,861			48,190		6.21	%	1,160,794			55,092			6.33	%
Total loans	7,596,365			458,261		8.06	%	7,021,456			405,968			7.73	%
Total interest-earning assets	$	10,778,878		$	560,114	6.94	%	$	9,539,389		$	472,681		6.62	%

Interest bearing liabilities:
Deposits
NOW accounts	$	3,438,649		$	61,490	2.39	%	$	2,466,113		$	16,160		0.88	%
Savings accounts	2,024,127			13,782		0.91	%	2,238,866			12,742			0.76	%
Time deposits	1,550,420			33,235		2.86	%	1,273,928			16,328			1.71	%
Brokered deposits	27,102			1,045		5.15	%	4,181			40			1.27	%
	7,040,298			109,552		2.08	%	5,983,088			45,270			1.01	%
Non-interest bearing deposit accounts	2,560,654			—		—	%	2,603,735			—			—	%
Fair value premium and core deposit intangible amortization	—			3,396		—		—			3,962			—
Total deposits	9,600,952			112,948		1.57	%	8,586,823			49,232			0.77	%
Borrowings
Securities sold under agreements to repurchase	—			—		—	%	17,647			728			5.52	%
Advances from FHLB and other borrowings	227,296			7,864		4.62	%	167,887			5,393			4.29	%

Total borrowings	227,296			7,864		4.62	%	185,534			6,121			4.41	%
Total interest-bearing liabilities	$	9,828,248		$	120,812	1.64	%	$	8,772,357		$	55,353		0.84	%
Interest rate spread				$	439,302	5.30	%				$	417,328		5.78	%
Net interest margin						5.44	%							5.85	%

Core deposits: (Non-GAAP)

NOW accounts	$	3,438,649		$	61,490	2.39	%	$	2,466,113		$	16,160		0.88	%
Savings accounts	2,024,127			13,782		0.91	%	2,238,866			12,742			0.76	%
Time deposits	1,550,420			33,235		2.86	%	1,273,928			16,328			1.71	%
	7,013,196			108,507		2.07	%	5,978,907			45,230			1.01	%
Non-interest bearing deposit accounts	2,560,654			—		—	%	2,603,735			—			—	%
Total core deposits	$	9,573,850		$	108,507	1.51	%	$	8,582,642		$	45,230		0.70	%
Total borrowings and brokered deposits: (Non-GAAP)
Total borrowings	$	227,296		$	7,864	4.62	%	$	185,534		$	6,121		4.41	%
Brokered deposits	27,102			1,045		5.15	%	4,181			40			1.27	%
Total borrowings and brokered deposits	$	254,398	279,510	$	8,909	4.68	%	$	189,715	150,746	$	6,161	3,027	4.34	%

OFG Bancorp (NYSE: OFG)

Table 6-1: Loan Information and Performance Statistics


	2024			2024			2024			2023			2023
(Dollars in thousands) (unaudited)	Q3			Q2			Q1			Q4			Q3
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs	$	37		$	1		$	64		$	150		$	218
Recoveries	(72)			(540)			(267)			(483)			(185)
Total mortgage	(35)			(539)			(203)			(333)			33
Commercial PR:
Charge-offs	139			160			3,567			377			1,404
Recoveries	(1,455)			(111)			(52)			(114)			(156)
Total commercial PR	(1,316)			49			3,515			263			1,248
Commercial US:
Charge-offs	—			1,574			1,749			689			6,850
Recoveries	(24)			(45)			—			(23)			(18)
Total commercial US	(24)			1,529			1,749			666			6,832
Consumer:
Charge-offs	8,863			8,180			7,981			6,799			5,894
Recoveries	(830)			(851)			(693)			(650)			(655)
Total consumer	8,033			7,329			7,288			6,149			5,239
Auto:
Charge-offs	16,371			12,559			14,218			14,658			10,458
Recoveries	(6,300)			(5,926)			(5,971)			(4,982)			(5,193)
Total auto	10,071			6,633			8,247			9,676			5,265
Total	$	16,729		$	15,001		$	20,596		$	16,421		$	18,617

PCD
Mortgage:
Charge-offs	$	66		$	29		$	83		$	94		$	148
Recoveries	(250)			(93)			(638)			(111)			(80)
Total mortgage	(184)			(64)			(555)			(17)			68
Commercial PR:
Charge-offs	663			265			—			—			690
Recoveries	(70)			(158)			(157)			(315)			(494)
Total commercial PR	593			107			(157)			(315)			196
Consumer:
Charge-offs	—			—			—			244			39
Recoveries	(19)			(7)			(23)			(19)			(23)
Total consumer	(19)			(7)			(23)			225			16
Auto:
Charge-offs	9			6			9			12			37
Recoveries	(25)			(30)			(58)			(44)			(98)
Total auto	(16)			(24)			(49)			(32)			(61)
Total	$	374		$	12		$	(784)		$	(139)		$	219

Total Net Charge-offs	$	17,103		$	15,013		$	19,812		$	16,282		$	18,836
Net Charge-off Rates
Mortgage	-0.06		%	-0.16		%	-0.20		%	-0.09		%	0.03		%
Commercial PR	-0.12		%	0.03		%	0.58		%	-0.01		%	0.27		%
Commercial US	-0.01		%	0.85		%	0.92		%	0.36		%	3.96		%
Consumer	4.70		%	4.42		%	4.45		%	3.95		%	3.33		%
Auto	1.64		%	1.11		%	1.42		%	1.72		%	0.96		%
Total	0.90		%	0.79		%	1.05		%	0.88		%	1.05		%
Average Loans Held For Investment
Mortgage	$	1,446,855		$	1,479,583		$	1,511,281		$	1,562,135		$	1,576,637
Commercial PR	2,393,891			2,363,831			2,312,561			2,230,342			2,122,169
Commercial US	658,908			716,989			756,409			736,640			690,105
Consumer	681,391			663,315			652,843			644,834			630,492
Auto	2,453,466			2,389,589			2,308,663			2,243,133			2,171,840
Total	$	7,634,511		$	7,613,307		$	7,541,757		$	7,417,084		$	7,191,243

OFG Bancorp (NYSE: OFG)

Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)


		2024				2024			2024			2023			2023
(Dollars in thousands) (unaudited)		Q3				Q2			Q1			Q4			Q3
Early Delinquency (30 - 89 days past due)
Mortgage		$	10,822			$	12,767		$	13,080		$	15,703		$	14,380
Commercial		2,426				7,781			6,128			3,653			5,666

Consumer		13,485				13,102			10,901			11,366			10,160
Auto		161,025				152,817			126,704			147,681			139,278
Total		$	187,758			$	186,467		$	156,813		$	178,403		$	169,484
Early Delinquency Rates (30 - 89 days past due)
Mortgage		1.75		%		2.13		%	2.14		%	2.50		%	2.22		%
Commercial		0.08		%		0.26		%	0.21		%	0.12		%	0.21		%

Consumer		2.03		%		2.04		%	1.74		%	1.83		%	1.66		%
Auto		6.48		%		6.30		%	5.42		%	6.50		%	6.31		%
Total		2.78		%		2.81		%	2.41		%	2.76		%	2.75		%
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation		$	22,954			$	23,443		$	25,985		$	27,859		$	30,661
GNMA's buy-back option program	(22)	41,801			(a)	19,008			18,509			19,401			18,227
Total mortgage		64,755			(a)	42,451			44,494			47,260			48,888
Commercial		17,460				17,703			14,171			14,298			15,109

Consumer		17,094				16,405			14,760			14,742			13,422
Auto		178,003				169,506			141,220			166,737			155,579
Total		$	277,312		(a)	$	246,065		$	214,645		$	243,037		$	232,998
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation		3.71		%		3.91		%	4.26		%	4.43		%	4.73		%
GNMA's buy-back option program	(22)	6.75		%	(a)	3.17		%	3.03		%	3.08		%	2.81		%
Total mortgage		10.46		%	(a)	7.07		%	7.29		%	7.51		%	7.54		%
Commercial		0.58		%		0.60		%	0.49		%	0.49		%	0.56		%

Consumer		2.58		%		2.55		%	2.35		%	2.38		%	2.19		%
Auto		7.17		%		6.98		%	6.04		%	7.34		%	7.04		%
Total		4.10		%	(a)	3.71		%	3.30		%	3.76		%	3.78		%
Nonperforming Assets	(14)
Mortgage		$	18,723			$	17,325		$	19,044		$	20,007		$	25,354
Commercial		36,099				34,477			33,794			36,096			36,649

Consumer		3,627				3,329			3,893			3,376			3,359
Auto		16,978				16,689			14,516			19,056			16,301
Total nonperforming loans		75,427				71,820			71,247			78,535			81,663
Foreclosed real estate		4,419				6,526			10,850			10,780			9,555
Other repossessed assets		6,969				5,713			6,844			4,032			4,432
Total nonperforming assets		$	86,815			$	84,059		$	88,941		$	93,347		$	95,650
Nonperforming Loan Rates
Mortgage		3.02		%		2.89		%	3.12		%	3.18		%	3.91		%
Commercial		1.20		%		1.17		%	1.16		%	1.23		%	1.36		%

Consumer		0.55		%		0.52		%	0.62		%	0.54		%	0.55		%
Auto		0.68		%		0.69		%	0.62		%	0.84		%	0.74		%
Total loans		1.11		%		1.08		%	1.10		%	1.22		%	1.33		%

(a)Refer to “(b)” in Table 1-1.

OFG Bancorp (NYSE: OFG)

Table 6-3: Loan Information and Performance Statistics


		2024			2024			2024			2023			2023
(Dollars in thousands) (unaudited)		Q3			Q2			Q1			Q4			Q3
Nonperforming PCD Loans	(14)
Mortgage		$	241		$	244		$	247		$	250		$	253
Commercial		3,920			4,748			5,969			6,424			6,688
Consumer		—			—			—			—			7
Total nonperforming loans		$	4,161		$	4,992		$	6,216		$	6,674		$	6,948
Nonperforming PCD Loan Rates
Mortgage		0.03		%	0.03		%	0.03		%	0.03		%	0.03		%
Commercial		3.29		%	3.69		%	4.52		%	4.74		%	4.78		%
Consumer		0.00		%	0.00		%	0.00		%	0.00		%	1.22		%
Total		0.42		%	0.49		%	0.60		%	0.62		%	0.63		%
Total PCD Loans Held for Investment
Mortgage		$	864,491		$	885,096		$	909,106		$	933,362		$	955,596
Commercial		119,029			128,584			132,035			135,447			139,857
Consumer		560			605			544			552			572
Auto		664			951			1,358			1,891			2,552
Total loans		$	984,744		$	1,015,236		$	1,043,043		$	1,071,252		$	1,098,577


		2024			2024			2024			2023			2023
(Dollars in thousands) (unaudited)		Q3			Q2			Q1			Q4			Q3
Total Nonperforming Loans	(14)
Mortgage		$	18,964		$	17,569		$	19,291		$	20,257		$	25,607
Commercial		40,019			39,225			39,763			42,520			43,337

Consumer		3,627			3,329			3,893			3,376			3,366
Auto		16,978			16,689			14,516			19,056			16,301
Total nonperforming loans		$	79,588		$	76,812		$	77,463		$	85,209		$	88,611
Total Nonperforming Loan Rates
Mortgage		1.28		%	1.18		%	1.27		%	1.30		%	1.60		%
Commercial		1.28		%	1.27		%	1.30		%	1.38		%	1.53		%

Consumer		0.55		%	0.52		%	0.62		%	0.54		%	0.55		%
Auto		0.68		%	0.69		%	0.62		%	0.84		%	0.74		%
Total		1.03		%	1.01		%	1.03		%	1.13		%	1.22		%
Total Loans Held for Investment
Mortgage		$	1,483,612		$	1,485,127		$	1,519,045		$	1,562,609		$	1,604,010
Commercial		3,118,381			3,082,363			3,051,448			3,076,903			2,832,985

Consumer		664,308			644,177			627,980			620,446			613,195
Auto		2,484,275			2,428,040			2,341,194			2,274,421			2,211,545
Total loans		$	7,750,576		$	7,639,707		$	7,539,667		$	7,534,379		$	7,261,735

OFG Bancorp (NYSE: OFG)

Table 7: Allowance for Credit Losses


	Quarter Ended September 30, 2024
(Dollars in thousands) (unaudited)	Mortgage			Commercial			Consumer			Auto			Total
Allowance for credit losses Non-PCD:
Balance at beginning of period	$	6,886		$	33,809		$	29,432		$	80,722		$	150,849
(Recapture of) provision for credit losses	(31)			928			9,904			10,212			21,013
Charge-offs	(37)			(139)			(8,863)			(16,371)			(25,410)
Recoveries	72			1,479			830			6,300			8,681
Balance at end of period	$	6,890		$	36,077		$	31,303		$	80,863		$	155,133

Allowance for credit losses PCD:
Balance at beginning of period	$	5,642		$	789		$	8		$	13		$	6,452
(Recapture of) provision for credit losses	(424)			751			(16)			(22)			289
Charge-offs	(66)			(663)			—			(9)			(738)
Recoveries	250			70			19			25			364
Balance at end of period	$	5,402		$	947		$	11		$	7		$	6,367

Allowance for credit losses summary:
Balance at beginning of period	$	12,528		$	34,598		$	29,440		$	80,735		$	157,301
(Recapture of) provision for credit losses	(455)			1,679			9,888			10,190			21,302
Charge-offs	(103)			(802)			(8,863)			(16,380)			(26,148)
Recoveries	322			1,549			849			6,325			9,045
Balance at end of period	$	12,292		$	37,024		$	31,314		$	80,870		$	161,500
Allowance coverage ratio	0.83		%	1.19		%	4.71		%	3.26		%	2.08		%

OFG Bancorp (NYSE: OFG)

Table 8-1: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital

In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and TCE ratio. The table below provides the details of the calculation of our regulatory capital and non-GAAP capital measures. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.


	2024			2024			2024			2023			2023
(Dollars in thousands) (unaudited)	Q3			Q2			Q1			Q4			Q3
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity	$	1,318,132		$	1,227,702		$	1,215,653		$	1,193,480		$	1,095,463
Less: Intangible assets	(100,501)			(101,979)			(103,457)			(104,935)			(106,660)


Tangible common equity	$	1,217,631		$	1,125,723		$	1,112,196		$	1,088,545		$	988,803

Common shares outstanding at end of period	46,559			46,562			47,217			47,065			47,058
Tangible book value per common share (Non-GAAP)	$	26.15		$	24.18		$	23.55		$	23.13		$	21.01
Total Assets to Tangible Assets
Total assets	$	11,461,382		$	11,259,085		$	11,159,235		$	11,344,453		$	10,257,138
Less: Intangible assets	(100,501)			(101,979)			(103,457)			(104,935)			(106,660)
Tangible assets (Non-GAAP)	$	11,360,881		$	11,157,106		$	11,055,778		$	11,239,518		$	10,150,478
Non-GAAP TCE Ratio
Tangible common equity	$	1,217,631		$	1,125,723		$	1,112,196		$	1,088,545		$	988,803
Tangible assets	11,360,881			11,157,106			11,055,778			11,239,518			10,150,478
TCE ratio	10.72		%	10.09		%	10.06		%	9.68		%	9.74		%
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity	$	1,280,760		$	1,223,669		$	1,213,469		$	1,128,747		$	1,127,602



Less: Average intangible assets	(101,042)			(102,499)			(103,988)			(105,560)			(107,291)
Average tangible common equity	$	1,179,718		$	1,121,170		$	1,109,481		$	1,023,187		$	1,020,311

OFG Bancorp (NYSE: OFG)

Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)


		BASEL III
		Standardized
		2024			2024			2024			2023			2023
(Dollars in thousands) (unaudited)		Q3			Q2			Q1			Q4			Q3
Regulatory Capital Metrics
Common equity Tier 1 capital		$	1,260,944		$	1,223,031		$	1,205,231		$	1,174,205		$	1,124,599
Tier 1 capital		1,260,944			1,223,031			1,205,231			1,174,205			1,124,599
Total risk-based capital	(15)	1,371,041			1,330,474			1,309,893			1,278,537			1,224,963
Risk-weighted assets		8,772,207			8,561,549			8,338,168			8,317,802			8,000,711
Regulatory Capital Ratios
Common equity Tier 1 capital ratio	(16)	14.37		%	14.29		%	14.45		%	14.12		%	14.06		%
Tier 1 risk-based capital ratio	(17)	14.37		%	14.29		%	14.45		%	14.12		%	14.06		%
Total risk-based capital ratio	(18)	15.63		%	15.54		%	15.71		%	15.37		%	15.31		%
Leverage ratio	(19)	11.12		%	10.86		%	10.76		%	11.03		%	11.03		%

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity		$	1,318,132		$	1,227,702		$	1,215,653		$	1,193,480		$	1,095,463
Plus: CECL transition adjustment	(20)	6,852			6,852			6,852			13,704			13,704


Plus: Unrealized losses on available-for-sale securities, net of income tax		32,990			86,494			81,731			67,013			127,677

Total adjusted stockholders’equity		1,357,974			1,321,048			1,304,236			1,274,197			1,236,844
Less: Disallowed goodwill		(84,241)			(84,241)			(84,241)			(84,241)			(84,241)
Disallowed other intangible assets, net		(12,789)			(13,776)			(14,764)			(15,751)			(16,883)
Disallowed deferred tax assets, net		—			—			—			—			(11,121)
Common equity Tier 1 capital and Tier 1 capital		1,260,944			1,223,031			1,205,231			1,174,205			1,124,599




Plus Tier 2 capital: Qualifying allowance for credit losses		110,097			107,443			104,662			104,332			100,364
Total risk-based capital		$	1,371,041		$	1,330,474		$	1,309,893		$	1,278,537		$	1,224,963

OFG Bancorp (NYSE: OFG)

Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)


(1)			Total banking and financial service revenues.
(2)			Net interest income plus non-interest income, net (core)
(3)			Calculated based on net income available to common shareholders divided by average common shares outstanding for the period.
(4)			Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted.
(5)			Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.
(6)			Information includes all loans held for investment, including PCD loans.
(7)			Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(8)			Calculated based on annualized income, net of tax, for the period divided by average total assets for the period.
(9)			Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period.
(10)			Calculated based on non-interest expense for the period divided by total net interest income and total banking and financial services revenues for the period.
(11)			Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(12)			Non-GAAP ratios. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.
(13)			Production of new loans (excluding renewals).
(14)			Most PCD loans are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Therefore, they are not included as non-performing loans. PCD loan pools that are not accreting interest income are deemed to be non-performing loans and presented separately.
(15)			Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(16)			Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.
(17)			Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(18)			Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.
(19)			Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
(20)			In March 2020, in light of strains on the U.S. economy as a result of the coronavirus disease (COVID-19), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. In addition, for the first two years, a uniform 25% “scaling factor” is introduced to approximate the portion of the post day-one allowance attributable to CECL relative to the incurred loss methodology. The 25% scaling factor is calibrated to approximate an overall after-tax impact of differences in allowances under CECL versus the incurred loss methodology.
(21)			Pre-provision net revenues is a non-GAAP measure calculated based on net interest income plus total non-interest income, net, less total non-interest expenses for the period.
(22)			Under the GNMA program, issuers such as OFG Bancorp have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of the Company with an offsetting liability.