0001030469FALSE00010304692023-10-202023-10-20

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

FORM 8-K
________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 20, 2023
________________
OFG BANCORP
(Exact name of registrant as specified in its charter)
________________

    Commonwealth of Puerto Rico
001-1264766-0538893
(State or other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification No.)
Oriental Center, 15th Floor
254 Munoz Rivera Avenue
San Juan, Puerto Rico
00918
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (787) 771-6800
Not applicable
(Former name or former address, if changed since last report)
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, par value $1.00 per shareOFGNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
On October 20, 2023, OFG Bancorp (the “Company”) announced the results for the quarter ended September 30, 2023. A copy of the Company’s press release is attached as an exhibit to this report.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.Description of Document
99


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
OFG BANCORP
Date: October 20, 2023
By:/s/ Maritza Arizmendi
Maritza Arizmendi
Chief Financial Officer


Exhibit 99

ofgbancorplogo.jpg
OFG Bancorp Reports 3Q23 Results
SAN JUAN, Puerto Rico, October 20, 2023 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the third quarter ended September 30, 2023. EPS diluted of $0.95 compared to $0.93 in 2Q23 and $0.87 in 3Q22. Total core revenues of $172.2 million compared to $170.5 million in 2Q23 and $156.8 million in 3Q22.
CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “Third quarter results reflected year-over-year increases of 10% in core revenues and 9% in EPS. Highlights include continued loan growth, stable core deposits, low cumulative deposit beta of 19%, increased operating leverage, and strong performance metrics. We also benefited from overall higher interest rates and benign credit conditions as economic activity in Puerto Rico continues to do well.”

“Oriental’s self-service portal, launched earlier this year as part of our ‘Digital First’ strategy, has been expanded to include more features and is rapidly being adopted by our customers. This is resulting in a growing number of digital transactions, enabling us to better meet the needs of the customers and communities we serve.”

“Our results could not have been possible without the hard work and commitment of all our team members. We are thankful to them for executing our corporate vision.”

3Q23 Highlights

Performance Metrics: Net interest margin of 5.80%, return on average assets of 1.76%, return on average tangible common stockholders’ equity of 17.59%, and efficiency ratio of 52.36%.

Net Interest Income of $141.8 million compared to $139.6 million in 2Q23 and $126.5 million in 3Q22. 3Q23 reflected the full effect of 2Q23’s 25 basis point increase in the Federal Reserve Board’s funds rate and a partial effect of 3Q23’s 25 bps increase.

Total Interest Income of $165.7 million compared to $158.0 million in 2Q23 and $134.7 million in 3Q22. Compared to 2Q23, 3Q23 primarily reflected higher yields (7.84% vs. 7.76%) on increased average balances of loans and higher yields on variable rate loans.

Total Interest Expense of $23.9 million compared to $18.3 million in 2Q23 and $8.2 million in 3Q22. Compared to 2Q23, 3Q23 reflected higher cost of funds (1.07% vs. 0.84%) on increased average balances of deposits and borrowings.

Total Banking & Financial Service Revenues of $30.4 million compared to $30.9 million in 2Q23 and $30.3 million in 3Q22.

Pre-Provision Net Revenues of $82.3 million compared to $80.8 million in 2Q23 and $69.6 million in 3Q22.



Total Provision for Credit Losses of $16.4 million compared to $15.0 million in 2Q23 and $7.1 million in 3Q22. 3Q23 included $11.4 million due to increased loan volume, $4.1 million in qualitative adjustment, and $0.7 million for a specific reserve for the sale of a small portfolio of non-performing Puerto Rico small business commercial loans.

Credit Quality: Net Charge-offs of $18.8 million compared to $6.6 million in 2Q23 and $11.3 million in 3Q22. 3Q23 included $6.9 million for two loans previously and substantially reserved. 2Q23 included a recovery of $3.7 million from the sale of older, fully charged off auto and consumer loans. Early and total delinquency rates were 2.75% and 3.78%, respectively, and the nonperforming loan rate of 1.33% was in the lower ranges seen over the last five quarters.

Total Non-Interest Expense of $90.2 million compared to $88.9 million in 2Q23 and $87.5 million in 3Q22. Compared to 2Q23, 3Q23 operating expense decreased $1.3 million, due to a lower gain on sale of foreclosed real estate partially offset by lower general and administrative expenses.

Loans Held for Investment (EOP) of $7.26 billion compared to $7.12 billion in 2Q23 and $6.68 billion in 3Q22. Loans increased 2.0% from 2Q23 and 8.6% year-over-year, reflecting increases in Puerto Rico and US commercial loans and retail auto and consumer loans. This was partially offset by regular paydowns of residential mortgages.

New Loan Production of $562.5 million compared to $691.8 million in 2Q23 and $511.3 million in 3Q22. 3Q23 reflected continued high levels of auto, commercial and consumer lending.

Total Investments (EOP) of $2.07 billion compared to $1.70 billion in 2Q23 and $2.04 billion in 3Q22. 3Q23 investments increased from 2Q23 reflecting the purchase of $450 million fixed-rate mortgage-backed securities partly offset by regular repayments.

Customer Deposits (EOP) of $8.54 billion compared to $8.54 billion in 2Q23 and $8.84 billion in 3Q22.

Total Borrowings (EOP) of $451.5 million compared to $226.5 million in 2Q23 and $27.3 million in 3Q22.

Cash & Cash Equivalents (EOP) of $532.7 million compared to $799.0 million in 2Q23 and $815.4 million in 3Q22. Compared to 2Q23, 3Q23 cash reflected new purchases of MBS.

Total Assets (EOP) of $10.26 billion compared to $10.03 billion in 2Q23 and $10.06 billion in 3Q22.

Capital: CET1 ratio of 14.03% level with 2Q23 and 13.38% in 3Q22. The Tangible Common Equity ratio was 9.74% compared to 9.99% in 2Q23 and 8.83% in 3Q22. Tangible Book Value per share of $21.01 compared to $21.06 in 2Q23 and $18.46 in 3Q22.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 3Q23 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 579-2543 or (785) 424-1789. Conference ID: OFGQ323. 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, 2023, and the 3Q23 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 September 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
2023
2022
2022
(Dollars in thousands, except per share data) (unaudited)
Q3
Q2
Q1
Q4
Q3
Statement of Operations
Net interest income $141,787$139,644$135,897$135,282$126,510
Non-interest income, net (core)(1)30,40430,85928,53133,01230,298
Total core revenues(2)172,191170,503164,428168,294156,808
Non-interest expense 90,15888,88890,22091,64187,492
Pre-provision net revenues(21)82,32880,82974,57876,89569,638
Total provision for credit losses 16,43015,0449,4458,7577,120
Net income before income taxes 65,89865,78565,13368,13862,518
Income tax expense 21,02521,61218,90421,77120,599
Net income available to common stockholders 44,87344,17346,22946,36741,919
Common Share Statistics      
Earnings per common share - basic(3)$0.95$0.93$0.97$0.97$0.88
Earnings per common share - diluted(4)$0.95$0.93$0.96$0.97$0.87
Average common shares outstanding 47,11447,26647,60047,57247,558
Average common shares outstanding and equivalents 47,39247,49047,94447,96447,926
Cash dividends per common share $0.22$0.22$0.22$0.20$0.20
Book value per common share (period end) $23.28$23.36$22.88$21.91$20.90
Tangible book value per common share (period end)(5)$21.01$21.06$20.57$19.56$18.46
Balance Sheet (Average Balances)      
Loans(6)$7,191,243$7,002,971$6,866,586$6,770,341$6,697,900
Interest-earning assets 9,702,1679,492,8619,359,2119,425,5909,597,670
Total assets 10,180,93110,020,9409,900,4099,989,29310,181,000
Core deposits 8,621,6528,531,5838,594,3928,759,0808,924,089
Total deposits 8,624,0528,531,5838,604,6218,770,4468,935,455
Interest-bearing deposits 6,042,1655,955,6115,950,4816,059,6436,296,142
Borrowings 263,981226,25664,16826,82027,275
Stockholders' equity 1,127,6021,108,8801,077,7031,025,1321,045,792
Performance Metrics      
Net interest margin(7)5.80 %5.90 %5.89 %5.69 %5.23 %
Return on average assets(8)1.76 %1.76 %1.87 %1.86 %1.65 %
Return on average tangible common stockholders' equity(9)17.59 %17.67 %19.13 %20.36 %18.05 %
Efficiency ratio(10)52.36 %52.13 %54.87 %54.45 %55.80 %
Full-time equivalent employees, period end 2,264 2,265 2,249 2,253 2,247 
Credit Quality Metrics     
Allowance for credit losses$157,529$159,923$151,884$152,673$155,162
Allowance as a % of loans held for investment2.17 %2.25 %2.22 %2.23 %2.32 %
Net charge-offs$18,836(a)$6,606$10,120$11,205$11,347
Net charge-off rate(11)1.05 %0.38 %0.59 %0.66 %0.68 %
Early delinquency rate (30 - 89 days past due)2.75 %2.53 %2.11 %2.46 %2.75 %
Total delinquency rate (30 days and over)3.78 %3.67 %3.40 %4.04 %4.35 %
Capital Ratios (period end) (Non-GAAP)(12)(20)
Leverage ratio11.01 %10.85 %10.75 %10.36 %9.82 %
Common equity Tier 1 capital ratio14.03 %14.03 %14.07 %13.64 %13.38 %
Tier 1 risk-based capital ratio14.03 %14.03 %14.07 %13.64 %13.38 %
Total risk-based capital ratio15.29 %15.29 %15.33 %14.89 %14.63 %
Tangible common equity ("TCE") ratio9.74 %9.99 %9.85 %9.59 %8.83 %

a) During 3Q 2023, the Company charged-off $6.9 million for two commercial loans, $6.0 million previously provisioned, and $906 thousand for commercial nonperforming loans that were transferred to the held for sale category during the quarter.
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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$417,328 $346,798 
Non-interest income, net (core)(1)89,794 92,713 
Total core revenues(2)507,122 439,511 
Non-interest expense269,266 253,905 
Pre-provision net revenues(21)237,735 191,329 
Total provision for credit losses40,919 15,362 
Net income before income taxes196,816 175,967 
Income tax expense61,541 56,095 
Net income available to common stockholders135,275 119,872 
Common Share Statistics
Earnings per common share - basic(3)$2.86 $2.49 
Earnings per common share - diluted(4)$2.84 $2.47 
Average common shares outstanding47,325 48,188 
Average common shares outstanding and equivalents47,605 48,594 
Cash dividends per common share$0.66 $0.50 
Book value per common share (period end)$23.28 $20.90 
Tangible book value per common share (period end)(5)$21.01 $18.46 
Balance Sheet (Average Balances)
Loans(6)$7,021,456 $6,619,808 
Interest-earning assets9,539,389 9,583,964 
Total assets10,035,121 10,163,386 
Core deposits8,582,642 8,893,473 
Total deposits8,586,823 8,904,839 
Interest-bearing deposits5,983,088 6,278,176 
Borrowings185,534 (a)33,025 
Stockholders' equity1,104,911 1,047,954 
Performance Metrics
Net interest margin(7)5.85 %4.84 %
Return on average assets(8)1.80 %1.57 %
Return on average tangible common stockholders' equity(9)18.11 %17.20 %
Efficiency ratio(10)53.10 %57.77 %
Full-time equivalent employees, period end2,264 2,247 
Credit Quality Metrics
Allowance for credit losses$157,529 $155,162 
Allowance as a % of loans held for investment2.17 %2.32 %
Net charge-offs$35,562 $16,467 
Net charge-off rate(11)0.68 %0.33 %
Early delinquency rate (30 - 89 days past due)2.75 %2.75 %
Total delinquency rate (30 days and over)3.78 %4.35 %

(a)During the nine-month period ended September 30, 2023, the Company took a two-year FHLB advance amounting to $200.0 million and increased its FHLB overnight advance to $100.0 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) September 30, 2023June 30, 2023March 31,
2023		December 31,
2022		September 30,
2022
Interest income: 
Loans
Non-PCD loans $124,847 $116,699 $109,330 $105,238 $97,677 
PCD loans 17,292 18,819 18,981 19,762 18,563 
Total interest income from loans 142,139 135,518 128,311 125,000 116,240 
Investment securities and cash 23,569 22,470 20,674 20,727 18,435 
Total interest income 165,708 157,988 148,985 145,727 134,675 
Interest expense:
Deposits
Core deposits 20,787 15,916 12,489 10,258 7,978 
Brokered deposits 32 — 8 9 9 
Total deposits 20,819 15,916 12,497 10,267 7,987 
Borrowings 3,102 2,428 591 178 178 
Total interest expense 23,921 18,344 13,088 10,445 8,165 
Net interest income 141,787 139,644 135,897 135,282 126,510 
Provision for credit losses, excluding PCD loans16,648 16,650 8,146 11,347 9,897 
(Recapture of) Provision for credit losses on PCD loans(218)(1,606)1,299 (2,590)(2,777)
Total provision for credit losses 16,430 15,044 9,445 8,757 7,120 
Net interest income after provision for credit losses 125,357 124,600 126,452 126,525 119,390 
Non-interest income:      
Banking service revenues 17,303 17,440 17,513 18,224 17,234 
Wealth management revenues 7,691 8,194 7,120 8,335 8,173 
Mortgage banking activities 5,410 5,225 3,898 6,453 4,891 
Total banking and financial service revenues 30,404 30,859 28,531 33,012 30,298 
Other income (loss), net 295 (786)370 242 322 
Total non-interest income, net 30,699 30,073 28,901 33,254 30,620 
Non-interest expense:
Compensation and employee benefits 38,095 37,841 38,473 38,100 35,332 
Occupancy, equipment and infrastructure costs 14,887 14,362 14,257 13,893 12,638 
General and administrative expenses 37,203 39,005 36,693 39,261 37,523 
Foreclosed real estate and other repossessed assets (income) expenses  (27)(2,320)793 239 573 
Climate events expenses — — 4 148 1,426 
Total non-interest expense 90,158 88,888 90,220 91,641 87,492 
Income before income taxes 65,898 65,785 65,133 68,138 62,518 
Income tax expense 21,025 21,612 18,904 21,771 20,599 
Net income available to common shareholders $44,873 $44,173 $46,229 $46,367 $41,919 


4

OFG Bancorp (NYSE: OFG)
Table 2-2: Consolidated Statements of Operations (Continued)
(Dollars in thousands, except per share data) (unaudited)Nine-Month Period Ended
September 30, 2023
September 30, 2022
Interest income:
Loans
Non-PCD loans$350,876 $276,096 
PCD loans55,092 59,066 
Total interest income from loans405,968 335,162 
Investment securities and cash66,713 34,684 
Total interest income472,681 369,846 
Interest expense:
Deposits
Core deposits49,192 21,946 
Brokered deposits40 26 
Total deposits49,232 21,972 
Borrowings6,121 (a)1,076 
Total interest expense55,353 23,048 
Net interest income417,328 346,798 
Provision for credit losses, excluding PCD loans44,034 30,782 
(Recapture of) Provision for credit losses on PCD loans(3,115)(15,420)
Total provision for credit losses40,919 15,362 
Net interest income after provision for credit losses376,409 331,436 
Non-interest income:  
Banking service revenues52,256 52,937 
Wealth management revenues23,005 24,300 
Mortgage banking activities14,533 15,476 
Total banking and financial service revenues89,794 92,713 
Other (loss) income, net(121)5,723 
Total non-interest income, net89,673 98,436 
Non-interest expense:
Compensation and employee benefits114,409 104,830 
Occupancy, equipment and infrastructure costs43,506 37,415 
General and administrative expenses112,905 112,547 
Foreclosed real estate and other repossessed assets income, net of expenses(1,554)(2,313)
Climate events expenses— 1,426 
Total non-interest expense269,266 253,905 
Income before income taxes196,816 175,967 
Income tax expense61,541 56,095 
Net income available to common shareholders$135,275 $119,872 
(a)Refer to “(a)” in Table 1-2.



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OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
Cash and cash equivalents$532,699 (a)$798,973 $847,494 $550,464 $815,433 
Investments:
Trading securities14 13 10 9 11 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities1,511,779 (a)1,139,996 1,109,889 1,102,501 1,075,838 
US treasury notes739 748 242,098 309,133 401,414 
Other investment securities635 1,101 1,119 1,142 1,157 
Total investment securities available-for-sale1,513,153 1,141,845 1,353,106 1,412,776 1,478,409 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities320,249 326,935 332,852 337,435 343,549 
US treasury notes198,896 198,478 198,028 197,635 197,225 
Total investment securities held-to-maturity519,145 525,413 530,880 535,070 540,774 
Equity securities42,162 35,946 33,218 23,667 23,372 
Total investments2,074,474 1,703,217 1,917,214 1,971,522 2,042,566 
Loans, net7,130,052 6,988,244 6,735,281 6,723,236 6,591,028 
Other assets:
Prepaid expenses67,191 67,966 59,125 54,641 69,535 
Deferred tax asset, net11,121 20,306 37,372 55,485 66,121 
Foreclosed real estate and repossessed properties13,987 14,643 13,813 15,831 17,868 
Premises and equipment, net103,040 104,166 104,851 106,820 106,025 
Goodwill84,241 84,241 84,241 84,241 86,069 
Other intangibles22,419 24,143 25,868 27,593 29,662 
Right of use assets20,011 21,840 23,897 25,363 26,192 
Servicing asset50,601 49,966 49,345 50,921 50,061 
Accounts receivable and other assets147,302 153,842 159,080 152,663 157,619 
Total assets$10,257,138 $10,031,547 $10,057,581 $9,818,780 $10,058,179 
Deposits:
Demand deposits$4,894,958 $5,008,521 $5,038,122 $5,176,758 $5,416,386 
Savings accounts2,216,162 2,222,326 2,271,774 2,227,965 2,345,596 
Time deposits1,427,497 1,307,179 1,255,525 1,152,270 1,081,769 
Brokered deposits2,936 — — 11,371 11,366 
Total deposits8,541,553 8,538,026 8,565,421 8,568,364 8,855,117 
Borrowings:     
Securities sold under agreements to repurchase150,701 (a)— — — — 
Advances from FHLB and other borrowings300,774 (b)226,507 226,789 27,034 27,263 
Total borrowings451,475 226,507 226,789 27,034 27,263 
Other liabilities:     
Acceptances outstanding30,984 35,945 30,094 28,607 29,245 
Lease liability22,269 24,031 25,990 27,370 28,114 
GNMA buy-back option program liability(22)18,227 18,417 26,348 32,590 29,050 
Accrued expenses and other liabilities97,167 88,870 93,429 92,409 95,523 
Total liabilities9,161,675 8,931,796 8,968,071 8,776,374 9,064,312 
Stockholders' equity:
Common stock59,885 59,885 59,885 59,885 59,885 
Additional paid-in capital637,389 636,051 634,785 636,793 635,523 
Legal surplus146,774 142,567 138,333 133,901 129,429 
Retained earnings 607,466 577,042 547,641 516,371 484,057 
Treasury stock, at cost(228,374)(226,230)(212,794)(211,135)(211,138)
Accumulated other comprehensive income, net(127,677)(89,564)(78,340)(93,409)(103,889)
Total stockholders' equity1,095,463 1,099,751 1,089,510 1,042,406 993,867 
Total liabilities and stockholders' equity$10,257,138 $10,031,547 $10,057,581 $9,818,780 $10,058,179 
(a)During 3Q 2023, the Company purchased $450 million of mortgage-backed securities and sold $150 million securities under agreements to repurchase.
(b)Refer to “(a)” in Table 1-2.
6

OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
Non-PCD:
Mortgage, excluding GNMA buy-back option program$630,187 $623,138 $634,799 $643,203 $650,781 
Mortgage GNMA buy-back option program(22)18,227 18,417 26,348 32,590 29,050 
Commercial, excluding Commercial US1,985,535 1,952,178 1,808,379 1,828,644 1,754,999 
Commercial US707,593 669,332 617,574 642,133 622,382 
Consumer612,623 593,122 564,365 536,619 520,183 
Auto2,208,993 2,124,076 2,034,676 1,958,257 1,877,945 
6,163,158 5,980,263 5,686,141 5,641,446 5,455,340 
Less:  Allowance for credit losses(148,210)(150,167)(141,385)(141,841)(142,417)
Total non-PCD loans held for investment, net6,014,948 5,830,096 5,544,756 5,499,605 5,312,923 
PCD:
Mortgage955,596 980,833 1,007,751 1,028,428 1,059,448 
Commercial139,857 152,888 155,614 159,152 162,287 
Consumer572 568 607 638 738 
Auto2,552 3,319 4,367 5,658 7,152 
1,098,577 1,137,608 1,168,339 1,193,876 1,229,625 
Less:  Allowance for credit losses(9,319)(9,756)(10,499)(10,832)(12,745)
Total PCD loans held for investment, net1,089,258 1,127,852 1,157,840 1,183,044 1,216,880 
Total loans held for investment7,104,206 6,957,948 6,702,596 6,682,649 6,529,803 
Mortgage loans held for sale564 11,397 13,616 19,499 43,262 
Other loans held for sale25,282 18,899 19,069 21,088 17,963 
Total loans, net$7,130,052 $6,988,244 $6,735,281 $6,723,236 $6,591,028 
Loan Portfolio Summary:
Loans held for investment:
Mortgage, excluding GNMA buy-back option program$1,585,783 $1,603,971 $1,642,550 $1,671,631 $1,710,229 
Mortgage GNMA buy-back option program(22)18,227 18,417 26,348 32,590 29,050 
Commercial, excluding Commercial US2,125,392 2,105,066 1,963,993 1,987,796 1,917,286 
Commercial US707,593 669,332 617,574 642,133 622,382 
Consumer613,195 593,690 564,972 537,257 520,921 
Auto2,211,545 2,127,395 2,039,043 1,963,915 1,885,097 
7,261,735 7,117,871 6,854,480 6,835,322 6,684,965 
Less:  Allowance for credit losses(157,529)(159,923)(151,884)(152,673)(155,162)
Total loans held for investment, net7,104,206 6,957,948 6,702,596 6,682,649 6,529,803 
Mortgage loans held for sale564 11,397 13,616 19,499 43,262 
Other loans held for sale25,282 18,899 19,069 21,088 17,963 
Total loans, net$7,130,052 $6,988,244 $6,735,281 $6,723,236 $6,591,028 
7

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
  Quarter EndedNine-Month Period Ended
(Dollars in thousands) (unaudited)
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
September 30, 2022
September 30, 2023
September 30, 2022
Loan production(13)
Mortgage $33,346 $35,932 $30,344 $35,242 $38,945 $99,622 $165,663 
Commercial 145,105 220,746 98,300 209,078 123,429 464,151 442,756 
Commercial US 70,311 111,817 124,074 83,162 55,984 306,202 255,326 
Consumer 76,465 87,062 86,284 67,515 73,045 249,811 266,724 
Auto 237,290 236,283 222,325 221,369 219,910 695,898 591,229 
Total $562,517 $691,840 $561,327 $616,366 $511,313 $1,815,684 $1,721,698 
8

OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2023 Q3
2023 Q2
2023 Q1
2022 Q4
2022 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$680,864 $9,025 5.26 %$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 %
Investment securities1,830,060 14,544 3.18 %1,796,517 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 %
Loans held for investment
Non-PCD loans6,065,822 124,847 8.17 %5,840,860 116,699 8.01 %5,670,966 109,330 7.82 %5,542,986 105,238 7.53 %5,428,852 97,677 7.14 %
PCD loans1,125,421 17,292 6.15 %1,162,111 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 %
Total loans7,191,243 142,139 7.84 %7,002,971 135,518 7.76 %6,866,586 128,311 7.58 %6,770,341 125,000 7.32 %6,697,900 116,240 6.89 %
Total interest-earning assets$9,702,167 $165,708 6.78 %$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 %
Interest bearing liabilities:          
Deposits          
NOW accounts$2,445,955 $6,974 1.13 %$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 %
Savings accounts2,260,678 5,478 0.96 %2,222,710 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 %
Time deposits1,333,132 7,014 2.09 %1,277,861 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 %
Brokered deposits2,400 32 5.30 %— — — %10,229 8 0.30 %11,366 9 0.30 %11,366 9 0.30 %
 6,042,165 19,498 1.28 %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 %
Non-interest bearing deposit accounts2,581,887 — — 2,575,972 — — 2,654,140 — — 2,710,803 — — 2,639,313 — — 
Fair value premium and core deposit intangible amortization— 1,321 — — 1,321 — — 1,321 — — 1,585 — — 1,639 — 
Total deposits8,624,052 20,819 0.96 %8,531,583 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 %
Borrowings
Securities sold under agreements to repurchase52,365 728 5.52 %— — — %— — — %— — — %— — — %
Advances from FHLB and other borrowings211,616 2,374 4.45 %226,256 2,428 4.30 %64,168 591 3.74 %26,820 178 2.64 %27,275 178 2.59 %
Total borrowings263,981 3,102 4.66 %226,256 2,428 4.30 %64,168 591 3.74 %26,820 178 2.64 %27,275 178 2.59 %
Total interest-bearing liabilities$8,888,033 $23,921 1.07 %$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 %
Interest rate spread $141,787 5.71 % $139,644 5.84 % $135,897 5.85 % $135,282 5.66 % $126,510 5.21 %
Net interest margin  5.80 %  5.90 %  5.89 %  5.69 %  5.23 %
Core deposits: (Non-GAAP)               
Deposits               
NOW accounts$2,445,955 $6,974 1.13 %$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 %
Savings accounts2,260,678 5,478 0.96 %2,222,710 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 %
Time deposits1,333,132 7,014 2.09 %1,277,861 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 %
 6,039,765 19,466 1.28 %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 %
Non-interest bearing deposit accounts2,581,887 — — 2,575,972 — — 2,654,140 — — 2,710,803 — — 2,639,313 — — 
Total core deposits$8,621,652 $19,466 0.90 %$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 %

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$662,813 $24,499 4.94 %$1,541,036 $9,574 0.83 %
Investment securities1,855,120 42,214 3.03 %1,423,120 25,110 2.35 %
Loans held for investment
Non-PCD loans5,860,662 350,876 8.00 %5,287,144 276,096 6.98 %
PCD loans1,160,794 55,092 6.33 %1,332,664 59,066 5.91 %
Total loans7,021,456 405,968 7.73 %6,619,808 335,162 6.77 %
Total interest-earning assets$9,539,389 $472,681 6.62 %$9,583,964 $369,846 5.16 %
Interest bearing liabilities:
Deposits
NOW accounts$2,466,113 $16,160 0.88 %$2,807,838 $7,241 0.34 %
Savings accounts2,238,866 12,742 0.76 %2,311,568 4,220 0.24 %
Time deposits1,273,928 16,328 1.71 %1,147,404 5,570 0.65 %
Brokered deposits4,181 40 1.27 %11,366 26 0.30 %
5,983,088 45,270 1.01 %6,278,176 17,057 0.36 %
Non-interest bearing deposit accounts2,603,735 — — %2,626,663 — — %
Fair value premium and core deposit intangible amortization— 3,962 — — 4,915 — 
Total deposits8,586,823 49,232 0.77 %8,904,839 21,972 0.33 %
Borrowings
Securities sold under agreements to repurchase17,647 728 5.52 %— — — %
Advances from FHLB and other borrowings167,887 5,393 4.29 %27,725 555 2.67 %
Total borrowings185,534 6,121 4.41 %33,025 1,076 4.35 %
Total interest-bearing liabilities$8,772,357 $55,353 0.84 %$8,937,864 $23,048 0.34 %
Interest rate spread$417,328 5.78 %$346,798 4.82 %
Net interest margin 5.85 %4.84 %
Core deposits: (Non-GAAP)
Deposits
NOW accounts$2,466,113 $16,160 0.88 %$2,807,838 $7,241 0.34 %
Savings accounts2,238,866 12,742 0.76 %2,311,568 4,220 0.24 %
Time deposits1,273,928 16,328 1.71 %1,147,404 5,570 0.65 %
5,978,907 45,230 1.01 %6,266,810 17,031 0.36 %
Non-interest bearing deposit accounts2,603,735 — — %2,626,663 — — %
Total core deposits$8,582,642 $45,230 0.70 %$8,893,473 $17,031 0.26 %
10

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics
20232023202320222022
(Dollars in thousands) (unaudited)Q3Q2Q1Q4Q3
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs$218 $191 $200 $8 $14 
Recoveries(185)(333)(216)(625)(280)
Total mortgage33 (142)(16)(617)(266)
Commercial:
Charge-offs8,254 (a)3,496 1,375 3,444 6,485 
Recoveries(174)(237)(326)(338)(214)
Total commercial8,080 3,259 1,049 3,106 6,271 
Consumer:     
Charge-offs5,894 5,518 5,444 5,069 4,163 
Recoveries(655)(2,003)(867)(1,055)(732)
Total consumer5,239 3,515 4,577 4,014 3,431 
Auto:     
Charge-offs10,458 9,170 9,478 10,380 7,964 
Recoveries(5,193)(8,332)(6,600)(5,001)(5,674)
Total auto5,265 838 2,878 5,379 2,290 
Total$18,617 $7,470 $8,488 $11,882 $11,726 
PCD
Mortgage:
Charge-offs$148 $1 $74 $108 $270 
Recoveries(80)(260)(247)(603)(191)
Total mortgage68 (259)(173)(495)79 
Commercial:     
Charge-offs690 — 2,104 12 23 
Recoveries(494)(319)(490)(264)(268)
Total commercial196 (319)1,614 (252)(245)
Consumer:     
Charge-offs39 123 215 120 9 
Recoveries(23)(43)(11)(11)(47)
Total consumer16 80 204 109 (38)
Auto:     
Charge-offs37 35 86 65 56 
Recoveries(98)(401)(99)(104)(231)
Total auto(61)(366)(13)(39)(175)
Total$219 $(864)$1,632 $(677)$(379)
Total Net Charge-offs$18,836 (a)$6,606 $10,120 $11,205 $11,347 
Net Charge-off Rates     
Mortgage0.03 %-0.10 %-0.05 %-0.26 %-0.04 %
Commercial1.18 %(a)0.44 %0.41 %0.44 %0.94 %
Consumer3.33 %2.37 %3.30 %2.95 %2.52 %
Auto0.96 %0.09 %0.57 %1.11 %0.46 %
Total1.05 %0.38 %0.59 %0.66 %0.68 %
Average Loans Held For Investment     
Mortgage$1,576,637 $1,616,873 $1,653,423 $1,699,923 $1,757,897 
Commercial2,812,274 2,697,986 2,627,610 2,586,536 2,560,849 
Consumer630,492 606,842 579,467 558,809 538,898 
Auto2,171,840 2,081,270 2,006,086 1,925,073 1,840,256 
Total$7,191,243 $7,002,971 $6,866,586 $6,770,341 $6,697,900 

(a) Refer to “(a)” in Table 1-1.




11

OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans)
20232023202320222022
(Dollars in thousands) (unaudited)Q3Q2Q1Q4Q3
Early Delinquency (30 - 89 days past due)     
Mortgage$14,380 $13,976 $11,417 $15,115 $15,769 
Commercial5,666 (a)11,668 3,898 2,750 13,223 
Consumer10,160 8,188 8,478 8,895 9,280 
Auto139,278 117,237 96,294 112,191 111,637 
Total $169,484 $151,069 $120,087 $138,951 $149,909 
Early Delinquency Rates (30 - 89 days past due)     
Mortgage2.22 %2.18 %1.73 %2.24 %2.32 %
Commercial0.21 %(a)0.45 %0.16 %0.11 %0.56 %
Consumer1.66 %1.38 %1.50 %1.66 %1.78 %
Auto6.31 %5.52 %4.73 %5.73 %5.94 %
Total2.75 %2.53 %2.11 %2.46 %2.75 %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation$30,661 $31,189 $32,084 $39,239 $39,577 
GNMA's buy-back option program(22)18,227 18,418 26,348 32,590 29,050 
Total mortgage48,888 49,607 58,432 71,829 68,627 
Commercial15,109 (a)28,643 12,881 12,122 24,343 
Consumer13,422 11,026 11,402 12,008 11,956 
Auto155,579 130,367 110,749 131,804 132,507 
Total$232,998 $219,643 $193,464 $227,763 $237,433 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation4.73 %4.86 %4.85 %5.81 %5.82 %
GNMA's buy-back option program(22)2.81 %2.87 %3.99 %4.82 %4.27 %
Total mortgage7.54 %7.73 %8.84 %10.63 %10.09 %
Commercial0.56 %(a)1.09 %0.53 %0.49 %1.03 %
Consumer2.19 %1.86 %2.02 %2.24 %2.30 %
Auto7.04 %6.14 %5.44 %6.73 %7.06 %
Total3.78 %3.67 %3.40 %4.04 %4.35 %
Nonperforming Assets(14)
Mortgage$25,354 $27,600 $30,641 $33,512 $33,225 
Commercial36,649 (a)43,188 27,025 34,432 36,612 
Consumer3,359 2,907 2,979 3,128 2,725 
Auto16,301 13,130 14,455 19,613 20,870 
Total nonperforming loans81,663 86,825 75,100 90,685 93,432 
Foreclosed real estate9,555 10,639 9,250 11,214 14,561 
Other repossessed assets4,432 4,004 4,563 4,617 3,307 
Total nonperforming assets$95,650 $101,468 $88,913 $106,516 $111,300 
Nonperforming Loan Rates     
Mortgage3.91 %4.30 %4.63 %4.96 %4.89 %
Commercial1.36 %(a)1.65 %1.11 %1.40 %1.55 %
Consumer0.55 %0.49 %0.53 %0.58 %0.52 %
Auto0.74 %0.62 %0.71 %1.00 %1.11 %
Total loans1.33 %1.45 %1.32 %1.61 %1.71 %
(a) Refer to “(a)” in Table 1-1.
12

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics
 20232023202320222022
(Dollars in thousands) (unaudited) Q3Q2Q1Q4Q3
Nonperforming PCD Loans(14)
Mortgage $253 $256 $258 $259 $260 
Commercial 6,688 8,104 8,446 8,927 9,746 
Consumer 7 — — — — 
Total nonperforming loans $6,948 $8,360 $8,704 $9,186 $10,006 
Nonperforming PCD Loan Rates      
Mortgage 0.03 %0.03 %0.03 %0.03 %0.02 %
Commercial 4.78 %5.30 %5.43 %5.61 %6.01 %
Consumer 1.22 %0.00 %0.00 %0.00 %0.00 %
Total 0.63 %0.73 %0.74 %0.77 %0.81 %
Total PCD Loans Held for Investment     
Mortgage $955,596 $980,833 $1,007,751 $1,028,428 $1,059,448 
Commercial 139,857 152,888 155,614 159,152 162,287 
Consumer 572 568 607 638 738 
Auto2,552 3,319 4,367 5,658 7,152 
Total loans $1,098,577 $1,137,608 $1,168,339 $1,193,876 $1,229,625 
 20232023202320222022
(Dollars in thousands) (unaudited) Q3Q2Q1Q4Q3
Total Nonperforming Loans(14)     
Mortgage $25,607 $27,856 $30,899 $33,771 $33,485 
Commercial 43,337 51,292 35,471 43,359 46,358 
Consumer 3,366 2,907 2,979 3,128 2,725 
Auto 16,301 13,130 14,455 19,613 20,870 
Total nonperforming loans $88,611 $95,185 $83,804 $99,871 $103,438 
Total Nonperforming Loan Rates 
Mortgage 1.60 %1.72 %1.85 %1.98 %1.93 %
Commercial 1.53 %1.85 %1.37 %1.65 %1.83 %
Consumer 0.55 %0.49 %0.53 %0.58 %0.52 %
Auto 0.74 %0.62 %0.71 %1.00 %1.11 %
Total 1.22 %1.34 %1.22 %1.46 %1.55 %
Total Loans Held for Investment     
Mortgage $1,604,010 $1,622,388 $1,668,898 $1,704,221 $1,739,279 
Commercial 2,832,985 2,774,398 2,581,567 2,629,929 2,539,668 
Consumer 613,195 593,690 564,972 537,257 520,921 
Auto 2,211,545 2,127,395 2,039,043 1,963,915 1,885,097 
Total loans $7,261,735 $7,117,871 $6,854,480 $6,835,322 $6,684,965 


13

OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses
Quarter Ended September 30, 2023
(Dollars in thousands) (unaudited)MortgageCommercialConsumerAutoTotal
Allowance for credit losses Non-PCD:     
Balance at beginning of period$8,670 $48,604 $25,666 $67,227 $150,167 
Provision for (recapture of) credit losses(273)1,103 6,026 9,804 16,660 
Charge-offs(218)(8,254)(a)(5,894)(10,458)(24,824)
Recoveries185 174 655 5,193 6,207 
Balance at end of period$8,364 $41,627 $26,453 $71,766 $148,210 
Allowance for credit losses PCD:
Balance at beginning of period$8,297 $1,408 $8 $43 $9,756 
Provision for (recapture of) credit losses(226)60 15 (67)(218)
Charge-offs(148)(690)(39)(37)(914)
Recoveries80 494 23 98 695 
Balance at end of period$8,003 $1,272 $7 $37 $9,319 
Allowance for credit losses summary:
Balance at beginning of period$16,967 $50,012 $25,674 $67,270 $159,923 
Provision for (recapture of) credit losses(499)1,163 6,041 9,737 16,442 
Charge-offs(366)(8,944)(a)(5,933)(10,495)(25,738)
Recoveries265 668 678 5,291 6,902 
Balance at end of period$16,367 $42,899 $26,460 $71,803 $157,529 
Allowance coverage ratio1.02 %1.51 %4.32 %3.25 %2.17 %
(a)Refer to “(a)” in Table 1-1.

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.
20232023202320222022
(Dollars in thousands) (unaudited)Q3Q2Q1Q4Q3
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity$1,095,463 $1,099,751 $1,089,510 $1,042,406 $993,867 
Less:  Intangible assets(106,660)(108,384)(110,109)(111,834)(115,731)
Tangible common equity$988,803 $991,367$979,401$930,572$878,136
     
Common shares outstanding at end of period47,058 47,076 47,611 47,581 47,563 
Tangible book value per common share (Non-GAAP)$21.01 $21.06 $20.57 $19.56 $18.46 
Total Assets to Tangible Assets     
Total assets  $10,257,138 $10,031,547 $10,057,581 $9,818,780 $10,058,179 
Less:  Intangible assets(106,660)(108,384)(110,109)(111,834)(115,731)
Tangible assets (Non-GAAP)$10,150,478 $9,923,163 $9,947,472 $9,706,946 $9,942,448 
Non-GAAP TCE Ratio     
Tangible common equity$988,803 $991,367$979,401$930,572$878,136
Tangible assets10,150,478 9,923,163 9,947,472 9,706,946 9,942,448 
TCE ratio9.74 %9.99 %9.85 %9.59 %8.83 %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity$1,127,602 $1,108,880 $1,077,703 $1,025,132 $1,045,792 
Less:  Average intangible assets(107,291)(109,130)(110,888)(114,412)(116,612)
Average tangible common equity$1,020,311 $999,750$966,815$910,720$929,180



15

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 202320222022
(Dollars in thousands) (unaudited)Q3Q2 Q1Q4Q3
Regulatory Capital Metrics      
Common equity Tier 1 capital$1,121,944$1,086,587$1,063,919$1,037,385$995,342
Tier 1 capital1,121,9441,086,5871,063,9191,037,385995,342
Total risk-based capital(15)1,222,2251,183,7931,158,7441,132,6581,088,584
Risk-weighted assets7,993,9917,742,9337,559,1667,605,4667,440,482
Regulatory Capital Ratios
Common equity Tier 1 capital ratio(16)14.03 %14.03 %14.07 %13.64 %13.38 %
Tier 1 risk-based capital ratio(17)14.03 %14.03 %14.07 %13.64 %13.38 %
Total risk-based capital ratio(18)15.29 %15.29 %15.33 %14.89 %14.63 %
Leverage ratio(19)11.01 %10.85 %10.75 %10.36 %9.82 %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity$1,095,463$1,099,751 $1,089,510 $1,042,406 $993,867 
Plus: CECL transition adjustment(20)13,70413,70413,70420,55720,557
Less: Unrealized losses on available-for-sale securities, net of income tax127,67789,63978,51293,663104,145
Unrealized (gains) losses on cash flow hedges, net of income tax—(75)(172)(254)(256)
Total adjusted stockholders’equity1,236,8441,203,0191,181,5541,156,3721,118,313
Less: Disallowed goodwill(84,241)(84,241)(84,241)(84,241)(86,069)
Disallowed other intangible assets, net(16,883)(18,015)(19,147)(20,279)(21,617)
Disallowed deferred tax assets, net(13,776)(14,176)(14,247)(14,467)(15,285)
Common equity Tier 1 capital and Tier 1 capital1,121,9441,086,5871,063,9191,037,385995,342
Plus Tier 2 capital:  Qualifying allowance for credit losses100,28197,20694,82595,27393,242
Total risk-based capital$1,222,225$1,183,793 $1,158,744 $1,132,658 $1,088,584 



16

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 (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.
17
v3.23.3
Cover page
Oct. 20, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 20, 2023
Entity Registrant Name OFG BANCORP
Entity Incorporation, State or Country Code PR
Entity File Number 001-12647
Entity Tax Identification Number 66-0538893
Entity Address, Address Line One Oriental Center
Entity Address, Address Line Two 15th Floor
Entity Address, Address Line Three 254 Munoz Rivera Avenue
Entity Address, City or Town San Juan
Entity Address, Country PR
Entity Address, Postal Zip Code 00918
City Area Code 787
Local Phone Number 771-6800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common shares, par value $1.00 per share
Trading Symbol OFG
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001030469
Amendment Flag false
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