8-K
OFG BANCORP (OFG)
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): April 21, 2022
________________
OFG BANCORP
(Exact Name of Registrant as Specified in Its Charter)
________________
Commonwealth of Puerto Rico
(State or Other Jurisdiction of Incorporation)
| 001-12647 | 66-0538893 |
|---|---|
| (Commission File Number) | (IRS Employer Identification No.) |
| Oriental Center, 15th Floor | |
| 254 Munoz Rivera Avenue | 00918 |
| San Juan, Puerto Rico | |
| (Address of Principal Executive Offices) | (Zip Code) |
(787) 771-6800
(Registrant’s Telephone Number, Including Area Code)
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common shares, par value $1.00 per share | OFG | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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 April 21, 2022, OFG Bancorp (the “Company”) announced the results for the quarter ended March 31, 2022. 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 | Press release by the Company dated April 21, 2022 |
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: April 21, 2022 | By: | /s/ Maritza Arizmendi |
|---|---|---|
| Maritza Arizmendi | ||
| Chief Financial Officer |
Document
Exhibit 99
OFG Bancorp Reports 1Q22 Results
SAN JUAN, Puerto Rico, April 21, 2022 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the first quarter ended March 31, 2022. EPS diluted was $0.76 compared to $0.66 in 4Q21 and $0.56 in 1Q21. Total core revenues were $136.4 million compared to $141.0 million in 4Q21 and $127.7 million in 1Q21.
CEO Comment
José Rafael Fernández, Chief Executive Officer, said: “We had a great start to 2022. During the first quarter, our core business demonstrated strong momentum. We experienced solid loan and deposit growth, NIM expansion, and lower provision. Total assets reached $10.2 billion, expenses remained in line, and we repurchased $33.5 million of shares as part of our $100 million buyback program. The Puerto Rico economic environment continues to trend positively, while we continue to focus on improving the customer experience and growing together with our clients and the communities we serve. During 1Q22, for example, we introduced fully proprietary digital processes to apply for consumer loans and to open and contribute into our IRA fund.”
1Q22 Highlights
Net Interest Income was $105.2 million compared to $104.2 million in 4Q21 and $98.2 million in 1Q21. NIM expanded to 4.47% from 4.18% in 4Q21 primarily due to increased volume of loans and investments.
Interest Income totaled $112.9 million compared to $112.6 million in 4Q21 and $111.0 million in 1Q21. Compared to 4Q21, 1Q22 interest income benefited from higher yields on higher average balances of loans and investment securities, and higher average yields on cash, which was offset by two fewer days that reduced Interest Income by $1.7 million.
Total Interest Expense of $7.8 million compared to $8.4 million in 4Q21 and $12.8 million in 1Q21. Compared to 4Q21, 1Q22 interest expense reflected lower average balances and costs of deposits and borrowings, partially offset by $0.4 million to expense unamortized issuance costs as a result of the early termination of $36.1 million in 3.23% variable rate subordinated notes.
Banking and Financial Service Revenues of $31.2 million compared to $29.5 million in 1Q21 and $36.8 million in 4Q21, which included $4.3 million in annual insurance commissions. 1Q22 reflected higher levels of banking service, mortgage banking, and wealth management revenues compared to 1Q21.
Pre-Provision Net Revenues totaled $55.6 million compared to $55.8 million in 4Q21 and $50.9 million in 1Q21.
Provision for Credit Losses of $1.6 million compared to $7.2 million in 4Q21 and $6.3 million in 1Q21. 1Q22 included a provision of $3.7 million related to growth of loan balances and an increase of $4.2 million for a commercial loan previously placed in non-accrual, partially offset by a $5.7 million reduction in qualitative adjustment due to improved economic conditions. 4Q21 included a provision of $9.7 million related to transferring past due loans to held for sale.
Credit Quality: Net charge off rate and early and total delinquency rates fell to 0.04%, 1.97% and 3.17%, respectively, compared to the previous and year ago quarters. 1Q22 NCOs included a $2.8 million recovery from an acquired PCD loan and a $1.1 million recovery as part of the final settlement of the non-performing mortgage loans sale contracted for in 4Q21.
Non-Interest Expenses totaled $81.2 million compared to $86.5 million in 4Q21 and $77.7 million in 1Q21. The $5.3 million reduction from 4Q21 primarily reflected lower legal reserve provisions ($2.4 million) and lower combination of other items (totaling $2.1 million), including operational losses, technology related expenses, and training costs.
Loans Held for Investment (EOP) were $6.55 billion compared to $6.40 billion in 4Q21 and $6.59 billion in 1Q21. Loans grew $145.4 million from 4Q21, reflecting increases in commercial loans (net of PPP forgiveness) as well as increases in consumer and auto loans.
New Loan Origination of $623.2 million compared to $632.7 million in 4Q21 and $527.6 million in 1Q21, which included $126.3 million of PPP loans. 1Q22 reflected continued, high levels of auto lending, commercial lending in Puerto Rico and US, and increased demand for consumer lending.
Customer Deposits (EOP) totaled $8.97 billion compared to $8.59 billion in 4Q21 and $8.72 billion in 1Q21. Core deposits grew $375.1 million from 4Q21, reflecting increases in commercial and retail accounts.
Capital: CET1 ratio was 13.24% compared to 13.77% in 4Q21 and 13.56% in 1Q21. Tangible book value per share was $18.90 compared to $19.08 in 4Q21 and $17.39 in 1Q21. The decline in CET1 and TBVPS from 4Q21 reflected the repurchase of 1.2 million shares of common stock and reduction in other comprehensive income, partially offset by an increase in retained earnings.
Conference Call, Financial Supplement & Presentation
A conference call to discuss 1Q22 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 459-5346 or (203) 518-9544. Conference ID: OFGQ122. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter.
OFG’s Financial Supplement, with full financial tables for the quarter ended March 31, 2022, and the 1Q22 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, management uses certain “non-GAAP financial measures” within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.
Forward Looking Statements
The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements.
Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, and other natural disasters; (iv) competition in the financial services industry; and (v) the severity, magnitude and duration of the COVID-19 pandemic, and its impact on our operations, personnel, and customers.
For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2021, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
About OFG Bancorp
Now in its 58th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at www.ofgbancorp.com.
#
Contacts
Puerto Rico & USVI: Idalis Montalvo (idalis.montalvo@orientalbank.com) at (787) 777-2847
US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder (sanreder@ofgbancorp.com) at (212) 532-3232
OFG Bancorp
Financial Supplement
The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our March 31, 2022 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.
| Table of Contents | ||
|---|---|---|
| Pages | ||
| OFG Bancorp (Consolidated Financial Information) | ||
| Table 1: | Financial and Statistical Summary - Consolidated | 2 |
| Table 2: | Consolidated Statements of Operations | 3 |
| Table 3: | Consolidated Statements of Financial Condition | 4 |
| Table 4: | Information on Loan Portfolio and Production | 5-6 |
| Table 5: | Average Balances, Net Interest Income and Net Interest Margin | 7 |
| Table 6: | Loan Information and Performance Statistics | 8-10 |
| Table 7: | Allowance for Credit Losses | 11 |
| Table 8: | Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital | 12-13 |
| Table 9: | Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1-8) | 14 |
OFG Bancorp (NYSE: OFG)
Table 1: Financial and Statistical Summary - Consolidated
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
| Statement of Operations | ||||||||||||||||||||
| Net interest income | $ | 105,194 | $ | 104,199 | $ | 102,701 | $ | 102,251 | $ | 98,198 | ||||||||||
| Non-interest income, net (core) | (2) | 31,201 | 36,751 | 32,016 | 31,054 | 29,458 | ||||||||||||||
| Total core revenues | (3) | 136,395 | 140,950 | (c) | 134,717 | 133,305 | 127,656 | |||||||||||||
| Non-interest expense | 81,155 | 86,490 | 78,924 | 82,676 | 77,666 | |||||||||||||||
| Pre-provision net revenues | (23) | 55,645 | 55,809 | 56,298 | 51,772 | 50,945 | ||||||||||||||
| Total provision for (recapture of) credit losses | 1,551 | 7,199 | (d) | (4,997) | (8,305) | 6,324 | ||||||||||||||
| Net income before income taxes | 54,094 | 48,610 | 61,295 | 60,077 | 44,621 | |||||||||||||||
| Income tax expense | 16,573 | 15,330 | 19,624 | 19,250 | 14,248 | |||||||||||||||
| Net income available to common stockholders | 37,521 | 33,280 | 41,671 | 40,827 | 29,118 | |||||||||||||||
| Common Share Statistics | ||||||||||||||||||||
| Earnings per common share - basic | (4) | $ | 0.77 | $ | 0.67 | $ | 0.82 | $ | 0.79 | $ | 0.57 | |||||||||
| Earnings per common share - diluted | (5) | $ | 0.76 | $ | 0.66 | $ | 0.81 | $ | 0.78 | $ | 0.56 | |||||||||
| Average common shares outstanding | 48,968 | (a) | 49,746 | (a) | 51,063 | (a) | 51,636 | 51,397 | ||||||||||||
| Average common shares outstanding and equivalents | 49,484 | (a) | 50,299 | (a) | 51,516 | (a) | 52,048 | 51,752 | ||||||||||||
| Cash dividends per common share | $ | 0.15 | (b) | $ | 0.12 | $ | 0.12 | (b) | $ | 0.08 | $ | 0.08 | ||||||||
| Book value per common share (period end) | $ | 21.37 | $ | 21.54 | $ | 21.08 | $ | 20.59 | $ | 19.90 | ||||||||||
| Tangible book value per common share (period end) | (6) | $ | 18.90 | $ | 19.08 | $ | 18.59 | $ | 18.13 | $ | 17.39 | |||||||||
| Balance Sheet (Average Balances) | ||||||||||||||||||||
| Loans | (7) | $ | 6,519,119 | $ | 6,452,128 | $ | 6,465,874 | $ | 6,598,569 | $ | 6,635,908 | |||||||||
| Interest-earning assets | 9,540,266 | 9,897,073 | 9,879,687 | 9,726,905 | 9,358,377 | |||||||||||||||
| Total assets | 10,113,750 | 10,418,274 | 10,492,502 | 10,356,879 | 10,004,047 | |||||||||||||||
| Core deposits | 8,808,547 | 9,084,282 | 9,103,221 | 8,963,336 | 8,535,678 | |||||||||||||||
| Total deposits | 8,819,913 | 9,095,648 | 9,114,587 | 8,997,842 | 8,581,633 | |||||||||||||||
| Interest-bearing deposits | 6,271,936 | 6,435,246 | 6,474,977 | 6,392,219 | 6,223,419 | |||||||||||||||
| Borrowings | 44,262 | 75,970 | 98,943 | 99,950 | 100,951 | |||||||||||||||
| Stockholders' equity | 1,066,278 | (a) | 1,066,764 | (a) | 1,068,618 | (a)(e) | 1,083,452 | (e) | 1,101,046 | |||||||||||
| Common stockholders' equity | 1,066,278 | 1,066,764 | 1,066,361 | 1,046,835 | 1,019,176 | |||||||||||||||
| Performance Metrics | ||||||||||||||||||||
| Net interest margin | (8) | 4.47 | % | 4.18 | % | 4.12 | % | 4.22 | % | 4.26 | % | |||||||||
| Return on average assets | (9) | 1.48 | % | 1.28 | % | 1.59 | % | 1.58 | % | 1.21 | % | |||||||||
| Return on average tangible common stockholders' equity | (10) | 15.88 | % | 14.11 | % | 17.72 | % | 17.78 | % | 13.11 | % | |||||||||
| Efficiency ratio | (11) | 59.50 | % | 61.36 | % | 58.59 | % | 62.02 | % | 60.84 | % | |||||||||
| Full-time equivalent employees, period end | 2,244 | 2,269 | 2,274 | 2,231 | 2,238 | |||||||||||||||
| Credit Quality Metrics | (1)(22) | |||||||||||||||||||
| Allowance for credit losses | $ | 157,075 | $ | 155,937 | (d) | $ | 180,872 | $ | 191,717 | $ | 201,973 | |||||||||
| Allowance as a % of loans held for investment | 2.40 | % | 2.44 | % | 2.82 | % | 2.95 | % | 3.06 | % | ||||||||||
| Net charge-offs | $ | 577 | $ | 32,482 | (d) | $ | 6,051 | $ | 2,118 | $ | 9,105 | |||||||||
| Net charge-off rate | (12) | 0.04 | % | 2.01 | % | (d) | 0.37 | % | 0.13 | % | 0.55 | % | ||||||||
| Early delinquency rate (30 - 89 days past due) | 1.97 | % | 2.34 | % | 2.06 | % | 1.86 | % | 2.15 | % | ||||||||||
| Total delinquency rate (30 days and over) | 3.17 | % | 3.71 | % | 3.82 | % | 3.90 | % | 4.65 | % | ||||||||||
| Capital Ratios (period end) (Non-GAAP) | (13)(21) | |||||||||||||||||||
| Leverage ratio | 9.54 | % | (a) | 9.69 | % | 9.33 | % | (a)(e) | 9.84 | % | (e) | 10.48 | % | |||||||
| Common equity Tier 1 capital ratio | 13.24 | % | (a) | 13.77 | % | 13.52 | % | (a) | 13.95 | % | 13.56 | % | ||||||||
| Tier 1 risk-based capital ratio | 13.24 | % | (a) | 14.27 | % | 14.03 | % | (a)(e) | 14.70 | % | (e) | 15.28 | % | |||||||
| Total risk-based capital ratio | 14.49 | % | (a) | 15.52 | % | 15.28 | % | (a)(e) | 15.95 | % | (e) | 16.54 | % | |||||||
| Tangible common equity ("TCE") ratio | 9.14 | % | (a) | 9.69 | % | 8.86 | % | (a) | 9.06 | % | 8.95 | % |
(a)During 1Q 2022, the Company announced a $100 million share buyback program and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(b)During 1Q 2022 and 3Q 2021, the Company increased its common stock dividend to $0.15 and $0.12 per share, respectively.
(c)During 4Q 2021, the Company recognized annual insurance contingent commissions amounting to $4.3 million.
(d)During 4Q 2021, the Company decided to sell past due loans and recognized $30.1 million in net charge-offs and an additional provision of $9.7 million.
(e)During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q 2021, the Company redeemed Series A and B Preferred Stock.
OFG Bancorp (NYSE: OFG)
Table 2: Consolidated Statements of Operations
| Quarter Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) (unaudited) | March 31, 2022 | December 31, 2021 | September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | |||||||||
| Interest income: | ||||||||||||||
| Loans | (1) | |||||||||||||
| Non-PCD loans | $ | 86,631 | $ | 84,914 | $ | 85,028 | $ | 85,175 | $ | 82,930 | ||||
| PCD loans | 20,934 | 22,660 | 22,905 | 24,880 | 25,275 | |||||||||
| Total interest income from loans | 107,565 | 107,574 | 107,933 | 110,055 | 108,205 | |||||||||
| Investment securities | 5,384 | 5,036 | 4,202 | 3,402 | 2,771 | |||||||||
| Total interest income | 112,949 | 112,610 | 112,135 | 113,457 | 110,976 | |||||||||
| Interest expense: | ||||||||||||||
| Deposits | ||||||||||||||
| Core deposits | 7,033 | 7,830 | 8,681 | 10,436 | 11,861 | |||||||||
| Brokered deposits | 8 | 9 | 10 | 24 | 163 | |||||||||
| Total deposits | 7,041 | 7,839 | 8,691 | 10,460 | 12,024 | |||||||||
| Borrowings | 714 | (a) | 572 | 743 | 746 | 754 | ||||||||
| Total interest expense | 7,755 | 8,411 | 9,434 | 11,206 | 12,778 | |||||||||
| Net interest income | 105,194 | 104,199 | 102,701 | 102,251 | 98,198 | |||||||||
| Provision for (recapture of) credit losses, excluding PCD loans | (1) | 8,399 | (461) | (2,351) | (7,726) | 2,998 | ||||||||
| (Recapture of) provision for credit losses on PCD loans | (1) | (6,848) | 7,660 | (2,646) | (579) | 3,326 | ||||||||
| Total provision for (recapture of) credit losses | 1,551 | 7,199 | (b) | (4,997) | (8,305) | 6,324 | ||||||||
| Net interest income after provision for credit losses | 103,643 | 97,000 | 107,698 | 110,556 | 91,874 | |||||||||
| Non-interest income: | ||||||||||||||
| Banking service revenues | 17,562 | 18,770 | 18,200 | 18,251 | 16,497 | |||||||||
| Wealth management revenues | 7,857 | 11,774 | (c) | 7,619 | 8,263 | 7,388 | ||||||||
| Mortgage banking activities | 5,782 | 6,207 | 6,197 | 4,540 | 5,573 | |||||||||
| Total banking and financial service revenues | 31,201 | 36,751 | 32,016 | 31,054 | 29,458 | |||||||||
| Other income, net | 405 | 1,349 | (d) | 505 | 1,143 | 955 | ||||||||
| Total non-interest income, net | 31,606 | 38,100 | 32,521 | 32,197 | 30,413 | |||||||||
| Non-interest expense: | ||||||||||||||
| Compensation and employee benefits | 34,768 | 34,160 | 33,745 | 32,919 | 32,618 | |||||||||
| Occupancy, equipment and infrastructure costs | 11,916 | 12,424 | 12,078 | 12,528 | 13,128 | |||||||||
| General and administrative expenses | 35,072 | 39,920 | (e) | 34,041 | 35,370 | (f) | 30,201 | |||||||
| Foreclosed real estate and other repossessed assets (income) expenses | (1,482) | (1,122) | (2,163) | 328 | (50) | |||||||||
| COVID 19 expenses | 881 | 1,108 | 1,223 | 1,531 | 1,769 | |||||||||
| Total non-interest expense | 81,155 | 86,490 | 78,924 | 82,676 | 77,666 | |||||||||
| Income before income taxes | 54,094 | 48,610 | 61,295 | 60,077 | 44,621 | |||||||||
| Income tax expense | 16,573 | 15,330 | 19,624 | 19,250 | 14,248 | |||||||||
| Net income | 37,521 | 33,280 | 41,671 | 40,827 | 30,373 | |||||||||
| Less: dividends on preferred stock | — | — | — | (1,255) | ||||||||||
| Net income available to common shareholders | $ | 37,521 | $ | 33,280 | $ | 41,671 | $ | 40,827 | $ | 29,118 |
(a)During 1Q 2022, the Company redeemed all outstanding $36.1 million subordinated capital notes prior to maturity, and as a result, it wrote off $0.4 million in unamortized issuance costs.
(b)During 4Q 2021, the Company decided to sell past due loans and recognized an additional provision of $9.7 million.
(c)During 4Q 2021, the Company recognized annual insurance contingent commissions amounting to $4.3 million.
(d)During 4Q 2021, the Company recognized $2.3 million in other income from a warrant payment, partially offset by $1.5 million loss on early termination of FHLB advances.
(e)During 4Q 2021, the Company recognized $2.4 million for a legal reserve and to cover operational losses, and $2.0 million in technology enhancements.
(f)During 2Q 2021, the Company recognized a technology project write-down amounting $2.2 million.
OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
| (Dollars in thousands) (unaudited) | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | $ | 1,855,729 | $ | 2,023,650 | $ | 2,755,691 | $ | 2,767,693 | $ | 2,409,416 | ||||
| Investments: | ||||||||||||||
| Trading securities | 18 | 20 | 22 | 29 | 23 | |||||||||
| Investment securities available-for-sale, at fair value, no allowance for credit losses for any period | ||||||||||||||
| Mortgage-backed securities | 867,191 | 496,310 | 494,727 | 487,014 | 457,673 | |||||||||
| US treasury notes | 10,763 | 10,825 | 10,875 | 10,910 | 10,946 | |||||||||
| Other investment securities | 2,384 | 3,578 | 3,505 | 3,695 | 2,390 | |||||||||
| Total investment securities available-for-sale | 880,338 | 510,713 | 509,107 | 501,619 | 471,009 | |||||||||
| Mortgage-backed securities held-to-maturity, at amortized cost, no allowance for credit losses for any period | 359,806 | 367,507 | 375,214 | 125,138 | 126,767 | |||||||||
| Equity securities | 18,556 | 17,578 | 17,930 | 16,709 | 13,790 | |||||||||
| Total investments | 1,258,718 | 895,818 | 902,273 | 643,495 | 611,589 | |||||||||
| Loans, net | 6,449,130 | 6,329,311 | 6,282,485 | 6,354,040 | 6,432,079 | |||||||||
| Other assets: | ||||||||||||||
| Prepaid expenses | 56,513 | 60,856 | 65,003 | 61,678 | 58,348 | |||||||||
| Deferred tax asset, net | 87,608 | 99,063 | 128,663 | 144,799 | 154,540 | |||||||||
| Foreclosed real estate and repossessed properties | 17,922 | 16,984 | 15,433 | 16,818 | 18,366 | |||||||||
| Premises and equipment, net | 97,403 | 92,124 | 86,981 | 85,993 | 83,756 | |||||||||
| Goodwill | 86,069 | 86,069 | 86,069 | 86,069 | 86,069 | |||||||||
| Right of use assets | 28,576 | 28,846 | 30,625 | 32,621 | 32,714 | |||||||||
| Core deposit, customer relationship intangible and other intangibles | 33,947 | 36,093 | 38,545 | 40,995 | 43,445 | |||||||||
| Servicing asset | 49,446 | 48,973 | 48,227 | 47,712 | 47,911 | |||||||||
| Accounts receivable and other assets | 169,059 | 181,933 | (a) | 166,870 | 179,900 | 175,109 | ||||||||
| Total assets | $ | 10,190,120 | $ | 9,899,720 | $ | 10,606,865 | $ | 10,461,813 | $ | 10,153,342 | ||||
| Deposits: | ||||||||||||||
| Demand deposits | $ | 5,504,640 | $ | 5,204,340 | $ | 5,531,124 | $ | 5,337,691 | $ | 4,889,759 | ||||
| Savings accounts | 2,295,113 | 2,177,780 | 2,378,211 | 2,277,296 | 2,138,125 | |||||||||
| Time deposits | 1,167,103 | 1,209,627 | 1,323,688 | 1,464,134 | 1,693,924 | |||||||||
| Brokered deposits | 11,366 | 11,371 | 11,366 | 11,371 | 34,954 | |||||||||
| Total deposits | 8,978,222 | 8,603,118 | 9,244,389 | 9,090,492 | 8,756,762 | |||||||||
| Borrowings: | ||||||||||||||
| Advances from FHLB and other borrowings | 28,035 | 28,488 | (c) | 62,934 | 63,867 | 65,013 | ||||||||
| Subordinated capital notes | — | (a) | 36,083 | 36,083 | 36,083 | 36,083 | ||||||||
| Total borrowings | 28,035 | 64,571 | 99,017 | 99,950 | 101,096 | |||||||||
| Other liabilities: | ||||||||||||||
| Securities purchased but not yet received | — | — | 31,565 | — | — | |||||||||
| Derivative liabilities | 191 | 804 | 1,136 | 1,293 | 1,465 | |||||||||
| Acceptances outstanding | 29,858 | 35,329 | 24,371 | 27,703 | 24,389 | |||||||||
| Lease liability | 30,287 | 30,498 | 32,167 | 34,052 | 34,017 | |||||||||
| Accrued expenses and other liabilities | 83,492 | 96,240 | 120,555 | 128,326 | 127,190 | |||||||||
| Total liabilities | 9,150,085 | 8,830,560 | 9,553,200 | 9,381,816 | 9,044,919 | |||||||||
| Stockholders' equity: | ||||||||||||||
| Preferred stock | — | — | — | (d) | 24,000 | (d) | 92,000 | |||||||
| Common stock | 59,885 | 59,885 | 59,885 | 59,885 | 59,885 | |||||||||
| Additional paid-in capital | 633,796 | 637,061 | 635,808 | 626,995 | 622,935 | |||||||||
| Legal surplus | 121,389 | 117,677 | 114,485 | 110,235 | 106,165 | |||||||||
| Retained earnings | 426,320 | 399,949 | 375,729 | 352,001 | 322,202 | |||||||||
| Treasury stock, at cost | (180,717) | (b) | (150,572) | (b) | (140,862) | (b) | (100,719) | (100,994) | ||||||
| Accumulated other comprehensive income, net | (20,638) | 5,160 | 8,620 | 7,600 | 6,230 | |||||||||
| Total stockholders' equity | 1,040,035 | 1,069,160 | 1,053,665 | 1,079,997 | 1,108,423 | |||||||||
| Total liabilities and stockholders' equity | $ | 10,190,120 | $ | 9,899,720 | $ | 10,606,865 | $ | 10,461,813 | $ | 10,153,342 |
(a)During 1Q 2022, the Company redeemed all outstanding $36.1 million subordinated capital notes prior to maturity. At December 31, 2021, a $17.3 million payment was already in process and therefore included in other assets.
(b)During 1Q 2022, the Company announced a $100 million share buyback program and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(c)During 4Q2021, the Company repaid $33.3 million FHLB advances prior to maturity.
(d)During 2Q 2021 and 3Q 2021, the Company redeemed Series A and B Preferred Stock, and Series D Preferred Stock, respectively.
OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
| (Dollars in thousands) (unaudited) | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-PCD: | (1) | ||||||||||||
| Mortgage | $ | 704,277 | $ | 718,848 | (a) | $ | 751,389 | $ | 775,606 | $ | 814,433 | ||
| Commercial | 2,256,011 | 2,088,106 | 1,954,804 | 1,903,866 | 1,827,102 | ||||||||
| Commercial Paycheck Protection Program (PPP Loans) | (24) | 53,277 | 86,889 | 136,698 | 228,677 | 311,823 | |||||||
| Consumer | 454,959 | 408,759 | 373,672 | 366,037 | 371,702 | ||||||||
| Auto | 1,732,859 | 1,693,029 | 1,667,113 | 1,618,788 | 1,565,473 | ||||||||
| 5,201,383 | 4,995,631 | 4,883,676 | 4,892,974 | 4,890,533 | |||||||||
| Less: Allowance for credit losses | (137,344) | (132,065) | (a) | (138,874) | (148,314) | (156,978) | |||||||
| Total non- PCD loans held for investment, net | 5,064,039 | 4,863,566 | 4,744,802 | 4,744,660 | 4,733,555 | ||||||||
| PCD: | (1) | ||||||||||||
| Mortgage | 1,144,364 | 1,188,423 | (a) | 1,270,854 | 1,324,274 | 1,406,044 | |||||||
| Commercial | 190,626 | 204,335 | (a) | 239,554 | 260,627 | 272,793 | |||||||
| Consumer | 833 | 916 | 959 | 981 | 1,120 | ||||||||
| Auto | 10,765 | 13,281 | 15,820 | 19,236 | 23,036 | ||||||||
| 1,346,588 | 1,406,955 | 1,527,187 | 1,605,118 | 1,702,993 | |||||||||
| Less: Allowance for credit losses | (1) | (19,731) | (23,872) | (a) | (41,998) | (43,403) | (44,995) | ||||||
| Total PCD loans held for investment, net | 1,326,857 | 1,383,083 | 1,485,189 | 1,561,715 | 1,657,998 | ||||||||
| Total loans held for investment | 6,390,896 | 6,246,649 | 6,229,991 | 6,306,375 | 6,391,553 | ||||||||
| Mortgage loans held for sale | 26,761 | (b) | 51,096 | (b) | 35,031 | 37,885 | 38,220 | ||||||
| Other loans held for sale | 31,473 | 31,566 | (b) | 17,463 | 9,780 | 2,306 | |||||||
| Total loans, net | $ | 6,449,130 | $ | 6,329,311 | $ | 6,282,485 | $ | 6,354,040 | $ | 6,432,079 | |||
| Loan Portfolio Summary: | |||||||||||||
| Loans held for investment: | |||||||||||||
| Mortgage | $ | 1,848,641 | $ | 1,907,271 | $ | 2,022,243 | $ | 2,099,880 | $ | 2,220,477 | |||
| Commercial | 2,446,637 | 2,292,441 | 2,194,358 | 2,164,493 | 2,099,895 | ||||||||
| Commercial Paycheck Protection Program (PPP Loans) | (24) | 53,277 | 86,889 | 136,698 | 228,677 | 311,823 | |||||||
| Consumer | 455,792 | 409,675 | 374,631 | 367,018 | 372,822 | ||||||||
| Auto | 1,743,624 | 1,706,310 | 1,682,933 | 1,638,024 | 1,588,509 | ||||||||
| 6,547,971 | 6,402,586 | 6,410,863 | 6,498,092 | 6,593,526 | |||||||||
| Less: Allowance for credit losses | (157,075) | (155,937) | (a) | (180,872) | (191,717) | (201,973) | |||||||
| Total loans held for investment, net | 6,390,896 | 6,246,649 | 6,229,991 | 6,306,375 | 6,391,553 | ||||||||
| Mortgage loans held for sale | 26,761 | (b) | 51,096 | (b) | 35,031 | 37,885 | 38,220 | ||||||
| Other loans held for sale | 31,473 | 31,566 | (b) | 17,463 | 9,780 | 2,306 | |||||||
| Total loans, net | $ | 6,449,130 | $ | 6,329,311 | $ | 6,282,485 | $ | 6,354,040 | $ | 6,432,079 |
(a)During 4Q 2021, the Company transferred to held for sale past due residential mortgage loans with reporting balance of $39.8 million and a PCD commercial loan with reporting balance of $20.9 million, and recognized $30.1 million in net charge-offs and an additional provision of $9.7 million, decreasing the allowance for credit losses by $20.4 million.
(b)At December 31, 2021, the mortgage loans transferred to held for sale referred in (a) had a reporting balance of $22.3 million and the commercial loan had a reporting balance of $9.7 million. During 1Q 2022, the Company sold the past due residential mortgage loans.
OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
| Quarter Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) (unaudited) | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||
| Loan production | (14) | ||||||||||
| Mortgage | 63,883 | $ | 78,991 | $ | 85,535 | $ | 103,837 | $ | 95,851 | ||
| Commercial | 175,531 | 238,356 | 154,146 | 218,425 | 83,820 | ||||||
| Commercial PPP Loans | — | — | 16 | 32,712 | 126,266 | ||||||
| Commercial US Loans | 108,390 | 79,264 | 100,066 | 109,522 | 44,841 | ||||||
| Consumer | 97,108 | 80,688 | 50,630 | 38,038 | 27,492 | ||||||
| Auto | 178,288 | 155,390 | 165,854 | 171,104 | 149,357 | ||||||
| Total | $ | 623,200 | $ | 632,689 | $ | 556,247 | $ | 673,638 | $ | 527,627 |
OFG Bancorp (NYSE: OFG)
Table 5: Average Balances, Net Interest Income and Net Interest Margin
| 2022 Q1 | 2021 Q4 | 2021 Q3 | 2021 Q2 | 2021 Q1 | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) (unaudited) | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Rate | ||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||||||||||
| Cash equivalents | $ | 2,072,112 | $ | 929 | 0.18 | % | $ | 2,553,118 | $ | 944 | 0.15 | % | $ | 2,699,144 | $ | 986 | 0.14 | % | $ | 2,519,406 | $ | 706 | 0.11 | % | $ | 2,204,431 | $ | 595 | 0.11 | % | |
| Investment securities | 949,035 | 4,455 | 1.88 | % | 891,827 | 4,092 | 1.84 | % | 714,669 | 3,216 | 1.80 | % | 608,930 | 2,696 | 1.77 | % | 518,038 | 2,176 | 1.68 | % | |||||||||||
| Loans held for investment | (1) | ||||||||||||||||||||||||||||||
| Non-PCD loans | 5,113,715 | 86,631 | 6.87 | % | 4,953,279 | 84,914 | 6.80 | % | 4,899,312 | 85,028 | 6.89 | % | 4,937,602 | 85,175 | 6.92 | % | 4,893,874 | 82,930 | 6.87 | % | |||||||||||
| PCD loans | 1,405,404 | 20,934 | 5.96 | % | 1,498,849 | 22,660 | 6.05 | % | 1,566,562 | 22,905 | 5.85 | % | 1,660,967 | 24,880 | 5.99 | % | 1,742,034 | 25,275 | 5.80 | % | |||||||||||
| Total loans | 6,519,119 | 107,565 | 6.69 | % | 6,452,128 | 107,574 | 6.62 | % | 6,465,874 | 107,933 | 6.62 | % | 6,598,569 | 110,055 | 6.69 | % | 6,635,908 | 108,205 | 6.61 | % | |||||||||||
| Total interest-earning assets | $ | 9,540,266 | $ | 112,949 | 4.80 | % | $ | 9,897,073 | $ | 112,610 | 4.51 | % | $ | 9,879,687 | $ | 112,135 | 4.50 | % | $ | 9,726,905 | $ | 113,457 | 4.68 | % | $ | 9,358,377 | $ | 110,976 | 4.81 | % | |
| Interest bearing liabilities: | |||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||
| NOW accounts | $ | 2,813,037 | $ | 2,140 | 0.31 | % | $ | 2,792,966 | $ | 2,239 | 0.32 | % | $ | 2,754,985 | $ | 2,288 | 0.33 | % | $ | 2,542,018 | $ | 2,259 | 0.36 | % | $ | 2,397,673 | $ | 2,393 | 0.40 | % | |
| Savings accounts | 2,248,193 | 1,198 | 0.22 | % | 2,359,959 | 1,289 | 0.22 | % | 2,330,121 | 1,639 | 0.28 | % | 2,236,281 | 2,097 | 0.38 | % | 2,003,963 | 2,124 | 0.43 | % | |||||||||||
| Time deposits | 1,199,340 | 2,057 | 0.70 | % | 1,270,955 | 2,464 | 0.77 | % | 1,378,505 | 2,916 | 0.84 | % | 1,579,414 | 4,243 | 1.07 | % | 1,775,828 | 5,507 | 1.24 | % | |||||||||||
| Brokered deposits | 11,366 | 8 | 0.30 | % | 11,366 | 9 | 0.30 | % | 11,366 | 10 | 0.34 | % | 34,506 | 24 | 0.28 | % | 45,955 | 163 | 1.44 | % | |||||||||||
| 6,271,936 | 5,403 | 0.35 | % | 6,435,246 | 6,001 | 0.37 | % | 6,474,977 | 6,853 | 0.42 | % | 6,392,219 | 8,623 | 0.54 | % | 6,223,419 | 10,187 | 0.66 | % | ||||||||||||
| Non-interest bearing deposit accounts | 2,547,977 | — | — | 2,660,402 | — | — | 2,639,610 | — | — | 2,605,623 | — | — | 2,358,214 | — | — | ||||||||||||||||
| Fair value premium and core deposit intangible amortization | — | 1,638 | — | — | 1,838 | — | — | 1,838 | — | — | 1,837 | — | — | 1,837 | — | ||||||||||||||||
| Total deposits | 8,819,913 | 7,041 | 0.32 | % | 9,095,648 | 7,839 | 0.34 | % | 9,114,587 | 8,691 | 0.38 | % | 8,997,842 | 10,460 | 4.46 | % | 8,581,633 | 12,024 | 0.56 | % | |||||||||||
| Borrowings | |||||||||||||||||||||||||||||||
| Advances from FHLB and other borrowings | 28,184 | 193 | 2.77 | % | 39,887 | 279 | 2.78 | % | 62,860 | 450 | 2.84 | % | 63,867 | 452 | 2.84 | % | 64,868 | 459 | 2.87 | % | |||||||||||
| Subordinated capital notes | 16,078 | 521 | 13.15 | % | 36,083 | 293 | 3.23 | % | 36,083 | 293 | 3.21 | % | 36,083 | 294 | 3.27 | % | 36,083 | 295 | 3.31 | % | |||||||||||
| Total borrowings | 44,262 | 714 | 6.54 | % | 75,970 | 572 | 2.99 | % | 98,943 | 743 | 2.98 | % | 99,950 | 746 | 2.99 | % | 100,951 | 754 | 3.03 | % | |||||||||||
| Total interest-bearing liabilities | $ | 8,864,175 | $ | 7,755 | 0.35 | % | $ | 9,171,618 | $ | 8,411 | 0.36 | % | $ | 9,213,530 | $ | 9,434 | 0.41 | % | $ | 9,097,792 | $ | 11,206 | 0.49 | % | $ | 8,682,584 | $ | 12,778 | 0.60 | % | |
| Interest rate spread | $ | 105,194 | 4.45 | % | $ | 104,199 | 4.15 | % | $ | 102,701 | 4.09 | % | $ | 102,251 | 4.19 | % | $ | 98,198 | 4.21 | % | |||||||||||
| Net interest margin | 4.47 | % | 4.18 | % | 4.12 | % | 4.22 | % | 4.26 | % | |||||||||||||||||||||
| Core deposits: (Non-GAAP) | |||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||
| NOW accounts | $ | 2,813,037 | $ | 2,140 | 0.31 | % | $ | 2,792,966 | $ | 2,239 | 0.32 | % | $ | 2,754,985 | $ | 2,288 | 0.33 | % | $ | 2,542,018 | $ | 2,259 | 0.36 | % | $ | 2,397,673 | $ | 2,393 | 0.40 | % | |
| Savings accounts | 2,248,193 | 1,198 | 0.22 | % | 2,359,959 | 1,289 | 0.22 | % | 2,330,121 | 1,639 | 0.28 | % | 2,236,281 | 2,097 | 0.38 | % | 2,003,963 | 2,124 | 0.43 | % | |||||||||||
| Time deposits | 1,199,340 | 2,057 | 0.70 | % | 1,270,955 | 2,464 | 0.77 | % | 1,378,505 | 2,916 | 0.84 | % | 1,579,414 | 4,243 | 1.07 | % | 1,775,828 | 5,507 | 1.24 | % | |||||||||||
| 6,260,570 | 5,395 | 0.35 | % | 6,423,880 | 5,992 | 0.37 | % | 6,463,611 | 6,843 | 0.42 | % | 6,357,713 | 8,599 | 0.54 | % | 6,177,464 | 10,024 | 0.66 | % | ||||||||||||
| Non-interest bearing deposit accounts | 2,547,977 | — | — | 2,660,402 | — | — | 2,639,610 | — | — | 2,605,623 | — | — | 2,358,214 | — | — | ||||||||||||||||
| Total core deposits | $ | 8,808,547 | $ | 5,395 | 0.25 | % | $ | 9,084,282 | $ | 5,992 | 0.26 | % | $ | 9,103,221 | $ | 6,843 | 0.30 | % | $ | 8,963,336 | $ | 8,599 | 0.38 | % | $ | 8,535,678 | $ | 10,024 | 0.47 | % |
OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics (1)
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||
| Net Charge-offs | (22) | ||||||||||||||||||
| Non-PCD | |||||||||||||||||||
| Mortgage: | |||||||||||||||||||
| Charge-offs | $ | 3 | $ | 4,573 | (b) | $ | 160 | $ | 268 | $ | 787 | ||||||||
| Recoveries | (2,074) | (b) | (416) | (419) | (193) | (615) | |||||||||||||
| Total mortgage | (2,071) | 4,157 | (259) | 75 | 172 | ||||||||||||||
| Commercial: | |||||||||||||||||||
| Charge-offs | 544 | 550 | 7,518 | (c) | 653 | 68 | |||||||||||||
| Recoveries | (192) | (418) | (558) | (996) | (430) | ||||||||||||||
| Total commercial | 352 | 132 | 6,960 | (343) | (362) | ||||||||||||||
| Consumer: | |||||||||||||||||||
| Charge-offs | 2,659 | 2,144 | 2,370 | 2,897 | 4,469 | ||||||||||||||
| Recoveries | (655) | (743) | (894) | (697) | (565) | ||||||||||||||
| Total consumer | 2,004 | 1,401 | 1,476 | 2,200 | 3,904 | ||||||||||||||
| Auto: | |||||||||||||||||||
| Charge-offs | 7,890 | 7,288 | 4,989 | 5,170 | 9,083 | ||||||||||||||
| Recoveries | (4,891) | (6,282) | (5,874) | (5,997) | (5,817) | ||||||||||||||
| Total auto | 2,999 | 1,006 | (885) | (827) | 3,266 | ||||||||||||||
| Total | $ | 3,284 | $ | 6,696 | $ | 7,292 | $ | 1,105 | $ | 6,980 | |||||||||
| PCD | |||||||||||||||||||
| Mortgage: | |||||||||||||||||||
| Charge-offs | $ | 1,134 | $ | 15,010 | (b) | $ | 1,008 | $ | 1,742 | $ | 2,590 | ||||||||
| Recoveries | (845) | (452) | (641) | (184) | (146) | ||||||||||||||
| Total mortgage | 289 | 14,558 | 367 | 1,558 | 2,444 | ||||||||||||||
| Commercial: | |||||||||||||||||||
| Charge-offs | 34 | 12,123 | (b) | 68 | 6 | 43 | |||||||||||||
| Recoveries | (3,023) | (a) | (746) | (1,316) | (430) | (436) | |||||||||||||
| Total commercial | (2,989) | 11,377 | (1,248) | (424) | (393) | ||||||||||||||
| Consumer: | |||||||||||||||||||
| Charge-offs | 39 | — | — | — | 22 | ||||||||||||||
| Recoveries | (23) | (42) | (219) | (33) | (21) | ||||||||||||||
| Total consumer | 16 | (42) | (219) | (33) | 1 | ||||||||||||||
| Auto: | |||||||||||||||||||
| Charge-offs | 114 | 140 | 124 | 226 | 456 | ||||||||||||||
| Recoveries | (137) | (247) | (265) | (314) | (383) | ||||||||||||||
| Total auto | (23) | (107) | (141) | (88) | 73 | ||||||||||||||
| Total | $ | (2,707) | $ | 25,786 | $ | (1,241) | $ | 1,013 | $ | 2,125 | |||||||||
| Total Net Charge-offs | $ | 577 | $ | 32,482 | $ | 6,051 | $ | 2,118 | $ | 9,105 | |||||||||
| Net Charge-off Rates | (22) | ||||||||||||||||||
| Mortgage | -0.38 | % | (b) | 3.79 | % | (b) | 0.02 | % | 0.30 | % | 0.47 | % | |||||||
| Commercial | -0.43 | % | (a) | 1.95 | % | (b) | 0.97 | % | (c) | -0.13 | % | -0.13 | % | ||||||
| Consumer | 1.75 | % | 1.29 | % | 1.26 | % | 2.17 | % | 3.78 | % | |||||||||
| Auto | 0.69 | % | 0.21 | % | -0.25 | % | -0.23 | % | 0.85 | % | |||||||||
| Total | 0.04 | % | 2.01 | % | 0.37 | % | 0.13 | % | 0.55 | % | |||||||||
| Average Loans Held For Investment | (22) | ||||||||||||||||||
| Mortgage | $ | 1,885,159 | $ | 1,972,889 | $ | 2,047,272 | $ | 2,147,927 | $ | 2,243,303 | |||||||||
| Commercial | 2,450,177 | 2,362,120 | 2,360,642 | 2,443,407 | 2,405,419 | ||||||||||||||
| Consumer | 461,890 | 421,824 | 400,582 | 400,365 | 413,191 | ||||||||||||||
| Auto | 1,721,893 | 1,695,295 | 1,657,378 | 1,606,870 | 1,573,995 | ||||||||||||||
| Total | $ | 6,519,119 | $ | 6,452,128 | $ | 6,465,874 | $ | 6,598,569 | $ | 6,635,908 |
(a)During 1Q 2022, the Company recognized a $2.8 million loan recovery from an acquired PCD commercial loan repaid during the quarter.
(b)During 4Q 2021, the Company transferred to held for sale past due residential mortgage loans and a PCD commercial loan, and recognized $30.1 million in net charge-offs. Subsequently, during 1Q 2022, the Company sold the past due residential mortgage loans and recognized a $1.1 million recovery as part of the final settlement.
(c)During 3Q 2021, the Company charged-off $6.5 million for a previously reserved amount on a commercial loan.
OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans) (1)
| 2021 | 2021 | 2021 | 2021 | 2021 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||
| Early Delinquency (30 - 89 days past due) | |||||||||||||||||
| Mortgage | $ | 13,788 | $ | 16,565 | $ | 15,233 | $ | 16,556 | $ | 17,541 | |||||||
| Commercial | 2,600 | 4,736 | 4,150 | 3,715 | 3,911 | ||||||||||||
| Consumer | 6,485 | 5,273 | 4,985 | 4,885 | 8,059 | ||||||||||||
| Auto | 79,491 | 90,272 | 76,262 | 66,068 | 75,449 | ||||||||||||
| Total | $ | 102,364 | $ | 116,846 | $ | 100,630 | $ | 91,224 | $ | 104,960 | |||||||
| Early Delinquency Rates (30 - 89 days past due) | |||||||||||||||||
| Mortgage | 1.96 | % | 2.30 | % | 2.03 | % | 2.13 | % | 2.15 | % | |||||||
| Commercial | 0.12 | % | 0.23 | % | 0.21 | % | 0.20 | % | 0.21 | % | |||||||
| Consumer | 1.43 | % | 1.29 | % | 1.33 | % | 1.33 | % | 2.17 | % | |||||||
| Auto | 4.59 | % | 5.33 | % | 4.57 | % | 4.08 | % | 4.82 | % | |||||||
| Total | 1.97 | % | 2.34 | % | 2.06 | % | 1.86 | % | 2.15 | % | |||||||
| Total Delinquency (30 days and over past due) | |||||||||||||||||
| Mortgage: | |||||||||||||||||
| Traditional, Non traditional, and Loans under Loss Mitigation | $ | 39,004 | $ | 45,521 | $ | 58,146 | $ | 60,892 | $ | 63,057 | |||||||
| GNMA's buy-back option program | 9,664 | 14,511 | 19,944 | 28,118 | 40,777 | ||||||||||||
| Total mortgage | 48,668 | 60,032 | 78,090 | 89,010 | 103,834 | ||||||||||||
| Commercial | 16,061 | 14,129 | 13,742 | 21,549 | 26,065 | ||||||||||||
| Consumer | 8,446 | 7,246 | 6,987 | 7,200 | 10,812 | ||||||||||||
| Auto | 91,855 | 103,733 | 87,672 | 73,259 | 86,918 | ||||||||||||
| Total | $ | 165,030 | $ | 185,140 | $ | 186,491 | $ | 191,018 | $ | 227,629 | |||||||
| Total Delinquency Rates (30 days and over past due) | |||||||||||||||||
| Mortgage: | |||||||||||||||||
| Traditional, Non traditional, and Loans under Loss Mitigation | 5.54 | % | 6.33 | % | 7.74 | % | 7.85 | % | 7.74 | % | |||||||
| GNMA's buy-back option program | 1.37 | % | 2.02 | % | 2.65 | % | 3.63 | % | 5.01 | % | |||||||
| Total mortgage | 6.91 | % | 8.35 | % | 10.39 | % | 11.48 | % | 12.75 | % | |||||||
| Commercial | 0.71 | % | 0.68 | % | 0.70 | % | 1.13 | % | 1.43 | % | |||||||
| Consumer | 1.86 | % | 1.77 | % | 1.87 | % | 1.97 | % | 2.91 | % | |||||||
| Auto | 5.30 | % | 6.13 | % | 5.26 | % | 4.53 | % | 5.55 | % | |||||||
| Total | 3.17 | % | 3.71 | % | 3.82 | % | 3.90 | % | 4.65 | % | |||||||
| Nonperforming Assets | (15) | ||||||||||||||||
| Mortgage | $ | 36,775 | $ | 39,394 | (a) | $ | 51,612 | $ | 52,773 | $ | 50,998 | ||||||
| Commercial | 34,892 | 37,603 | 28,472 | 37,858 | 42,778 | ||||||||||||
| Consumer | 2,030 | 2,303 | 2,203 | 2,466 | 2,835 | ||||||||||||
| Auto | 12,495 | 19,829 | 12,055 | 7,606 | 11,842 | ||||||||||||
| Total nonperforming loans | 86,192 | 99,129 | 94,342 | 100,703 | 108,453 | ||||||||||||
| Foreclosed real estate | 15,297 | 15,039 | 13,904 | 15,093 | 15,598 | ||||||||||||
| Other repossessed assets | 2,625 | 1,945 | 1,528 | 1,725 | 2,768 | ||||||||||||
| Total nonperforming assets | $ | 104,114 | $ | 116,113 | $ | 109,774 | $ | 117,521 | $ | 126,819 | |||||||
| Nonperforming Loan Rates | |||||||||||||||||
| Mortgage | 5.22 | % | 5.48 | % | (a) | 6.87 | % | 6.80 | % | 6.26 | % | ||||||
| Commercial | 1.55 | % | 1.80 | % | 1.46 | % | 1.99 | % | 2.34 | % | |||||||
| Consumer | 0.45 | % | 0.56 | % | 0.59 | % | 0.67 | % | 0.76 | % | |||||||
| Auto | 0.72 | % | 1.17 | % | 0.72 | % | 0.47 | % | 0.76 | % | |||||||
| Total loans | 1.66 | % | 1.98 | % | 1.93 | % | 2.06 | % | 2.22 | % |
OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics (1)
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||||
| Nonperforming PCD Loans | (15) | ||||||||||||||||||||||||||||||||||||
| Mortgage | $ | 310 | $ | 334 | $ | 2,030 | $ | 2,067 | $ | 958 | |||||||||||||||||||||||||||
| Commercial | 10,877 | 12,545 | (a) | 36,798 | 34,502 | 34,906 | |||||||||||||||||||||||||||||||
| Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Total nonperforming loans | $ | 11,187 | $ | 12,879 | $ | 38,828 | $ | 36,569 | $ | 35,864 | |||||||||||||||||||||||||||
| Nonperforming PCD Loan Rates | |||||||||||||||||||||||||||||||||||||
| Mortgage | 0.03 | % | 0.03 | % | 0.16 | % | 0.16 | % | 0.07 | % | |||||||||||||||||||||||||||
| Commercial | 5.71 | % | 6.14 | % | (a) | 15.36 | % | 13.24 | % | 12.80 | % | ||||||||||||||||||||||||||
| Consumer | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||||||||||
| Total | 0.83 | % | 0.92 | % | 2.54 | % | 2.28 | % | 2.11 | % | |||||||||||||||||||||||||||
| Total PCD Loans Held for Investment | (22) | ||||||||||||||||||||||||||||||||||||
| Mortgage | $ | 1,144,364 | $ | 1,188,423 | $ | 1,270,854 | $ | 1,324,274 | $ | 1,406,044 | |||||||||||||||||||||||||||
| Commercial | 190,626 | 204,335 | 239,554 | 260,627 | 272,793 | ||||||||||||||||||||||||||||||||
| Consumer | 833 | 916 | 959 | 981 | 1,120 | ||||||||||||||||||||||||||||||||
| Total loans | $ | 1,335,823 | $ | 1,393,674 | $ | 1,511,367 | $ | 1,585,882 | $ | 1,679,957 | 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||||
| Total Nonperforming Loans | (15) | ||||||||||||||||||||||||||||||||||||
| Mortgage | $ | 37,085 | $ | 39,728 | (a) | $ | 53,642 | $ | 54,840 | $ | 51,891 | ||||||||||||||||||||||||||
| Commercial | 45,769 | 50,148 | (a) | 65,270 | (b) | 72,360 | 77,684 | ||||||||||||||||||||||||||||||
| Consumer | 2,030 | 2,303 | 2,203 | 2,466 | 2,900 | ||||||||||||||||||||||||||||||||
| Auto | 12,495 | 19,829 | 12,055 | 7,606 | 11,842 | ||||||||||||||||||||||||||||||||
| Total nonperforming loans | $ | 97,379 | $ | 112,008 | $ | 133,170 | $ | 137,272 | $ | 144,317 | |||||||||||||||||||||||||||
| Total Nonperforming Loan Rates | |||||||||||||||||||||||||||||||||||||
| Mortgage | 2.01 | % | 2.08 | % | (a) | 2.65 | % | 2.63 | % | 2.36 | % | ||||||||||||||||||||||||||
| Commercial | 1.83 | % | 2.11 | % | (a) | 2.80 | % | (b) | 3.02 | % | 3.22 | % | |||||||||||||||||||||||||
| Consumer | 0.45 | % | 0.56 | % | 0.59 | % | 0.64 | % | 0.73 | % | |||||||||||||||||||||||||||
| Auto | 0.72 | % | 1.16 | % | 0.72 | % | 0.46 | % | 0.75 | % | |||||||||||||||||||||||||||
| Total | 1.49 | % | 1.75 | % | 2.08 | % | 2.11 | % | 2.19 | % | |||||||||||||||||||||||||||
| Total Loans Held for Investment | (22) | ||||||||||||||||||||||||||||||||||||
| Mortgage | $ | 1,848,641 | $ | 1,907,271 | $ | 2,022,243 | $ | 2,084,442 | $ | 2,197,106 | |||||||||||||||||||||||||||
| Commercial | 2,499,914 | 2,379,330 | 2,331,056 | 2,393,170 | 2,411,718 | ||||||||||||||||||||||||||||||||
| Consumer | 455,792 | 409,675 | 374,631 | 382,456 | 396,193 | ||||||||||||||||||||||||||||||||
| Auto | 1,743,624 | 1,706,310 | 1,682,933 | 1,638,024 | 1,588,509 | ||||||||||||||||||||||||||||||||
| Total loans | $ | 6,547,971 | $ | 6,402,586 | $ | 6,410,863 | $ | 6,498,092 | $ | 6,593,526 |
(a)During 4Q 2021, the Company transferred to held for sale past due residential mortgage loans with reporting balance of $39.8 million and a PCD commercial loan with reporting balance of $20.9 million.
(b)During 3Q 2021, the Company charged-off $6.5 million for a previously reserved amount on a commercial loan.
OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses (1)
| Quarter Ended March 31, 2022 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) (unaudited) | Mortgage | Commercial | Consumer | Auto | Total | ||||||||||
| Allowance for credit losses Non-PCD: | |||||||||||||||
| Balance at beginning of period | $ | 15,299 | $ | 32,262 | $ | 19,141 | $ | 65,363 | $ | 132,065 | |||||
| (Recapture of) provision for credit losses | (2,418) | 5,187 | 3,963 | 1,831 | 8,563 | ||||||||||
| Charge-offs | (3) | (544) | (2,659) | (7,890) | (11,096) | ||||||||||
| Recoveries | 2,074 | 192 | 655 | 4,891 | 7,812 | ||||||||||
| Balance at end of period | $ | 14,952 | $ | 37,097 | $ | 21,100 | $ | 64,195 | $ | 137,344 | |||||
| Allowance for credit losses PCD: | |||||||||||||||
| Balance at beginning of period | $ | 19,018 | $ | 4,508 | $ | 34 | $ | 312 | $ | 23,872 | |||||
| (Recapture of) provision for credit losses | (2,848) | (3,875) | 13 | (138) | (6,848) | ||||||||||
| Charge-offs | (1,134) | (34) | (39) | (114) | (1,321) | ||||||||||
| Recoveries | 845 | 3,023 | 23 | 137 | 4,028 | ||||||||||
| Balance at end of period | $ | 15,881 | $ | 3,622 | $ | 31 | $ | 197 | $ | 19,731 | |||||
| Allowance for credit losses summary: | |||||||||||||||
| Balance at beginning of period | $ | 34,317 | $ | 36,770 | $ | 19,175 | $ | 65,675 | $ | 155,937 | |||||
| (Recapture of) provision for credit losses | (5,266) | 1,312 | 3,976 | 1,693 | 1,715 | ||||||||||
| Charge-offs | (1,137) | (578) | (2,698) | (8,004) | (12,417) | ||||||||||
| Recoveries | 2,919 | 3,215 | 678 | 5,028 | 11,840 | ||||||||||
| Balance at end of period | $ | 30,833 | $ | 40,719 | $ | 21,131 | $ | 64,392 | $ | 157,075 | |||||
| Allowance coverage ratio | 1.67 | % | 1.63 | % | 4.64 | % | 3.69 | % | 2.40 | % | |||||
| Allowance coverage ratio excluding PPP loans (Non-GAAP) | 1.67 | % | 1.66 | % | 4.64 | % | 3.69 | % | 2.42 | % |
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.
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||
| Stockholders' Equity to Non-GAAP Tangible Common Equity | |||||||||||||||||||
| Total stockholders' equity | $ | 1,040,035 | (a)(b) | $ | 1,069,160 | (a) | $ | 1,053,665 | (a)(c) | $ | 1,079,997 | (c) | $ | 1,108,423 | |||||
| Less: Intangible assets | (120,016) | (122,162) | (124,614) | (127,064) | (129,514) | ||||||||||||||
| Noncumulative perpetual preferred stock | — | — | — | (24,000) | (c) | (92,000) | |||||||||||||
| Noncumulative perpetual preferred stock issuance costs | — | — | — | 7,453 | (c) | 10,130 | |||||||||||||
| Tangible common equity | $ | 920,019 | $ | 946,998 | $ | 929,051 | $ | 936,386 | $ | 897,039 | |||||||||
| Common shares outstanding at end of period | 48,673 | (a) | 49,636 | (a) | 49,977 | (a) | 51,661 | 51,579 | |||||||||||
| Tangible book value per common share (Non-GAAP) | $ | 18.90 | (a)(b) | $ | 19.08 | (a) | $ | 18.59 | (a) | $ | 18.13 | $ | 17.39 | ||||||
| Total Assets to Tangible Assets | |||||||||||||||||||
| Total assets | $ | 10,190,120 | $ | 9,899,720 | $ | 10,606,865 | $ | 10,461,813 | $ | 10,153,342 | |||||||||
| Less: Intangible assets | (120,016) | (122,162) | (124,614) | (127,064) | (129,514) | ||||||||||||||
| Tangible assets (Non-GAAP) | $ | 10,070,104 | $ | 9,777,558 | $ | 10,482,251 | $ | 10,334,749 | $ | 10,023,828 | |||||||||
| Non-GAAP TCE Ratio | |||||||||||||||||||
| Tangible common equity | $ | 920,019 | (a)(b) | $ | 946,998 | (a) | $ | 929,051 | (a) | $ | 936,386 | $ | 897,039 | ||||||
| Tangible assets | 10,070,104 | 9,777,558 | 10,482,251 | 10,334,749 | 10,023,828 | ||||||||||||||
| TCE ratio | 9.14 | % | 9.69 | % | 8.86 | % | 9.06 | % | 8.95 | % | |||||||||
| Average Equity to Non-GAAP Average Tangible Common Equity | |||||||||||||||||||
| Average total stockholders' equity | $ | 1,066,278 | (a) | $ | 1,066,764 | (a) | $ | 1,068,618 | (a)(c) | $ | 1,083,452 | (c) | $ | 1,101,046 | |||||
| Less: Average noncumulative perpetual preferred stock | — | — | (3,391) | (c) | (44,923) | (c) | (92,000) | ||||||||||||
| Average noncumulative perpetual preferred stock issuance costs | — | — | 1,134 | (c) | 8,306 | (c) | 10,130 | ||||||||||||
| Average total common stockholders' equity | $ | 1,066,278 | $ | 1,066,764 | $ | 1,066,361 | $ | 1,046,835 | $ | 1,019,176 | |||||||||
| Less: Average intangible assets | (120,874) | (123,201) | (125,723) | (128,311) | (130,767) | ||||||||||||||
| Average tangible common equity | $ | 945,404 | $ | 943,563 | $ | 940,638 | $ | 918,524 | $ | 888,409 |
(a)During 1Q 2022, the Company announced a $100 million share buyback program and and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(b)During 1Q 2022, the Company recognized a $25.8 million other comprehensive loss from changes in market interest rates as a result of recent developments in the U.S. economy.
(c)During 2Q 2021 and 3Q 2021, the Company redeemed Series A and B Preferred Stock, and Series D Preferred Stock, respectively.
OFG Bancorp (NYSE: OFG)
Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)
| BASEL III | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Standardized | ||||||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| (Dollars in thousands) (unaudited) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
| Regulatory Capital Metrics | ||||||||||||||||||||
| Common equity Tier 1 capital | $ | 955,221 | (a) | $ | 964,284 | (a) | $ | 931,884 | (a) | $ | 957,238 | $ | 919,856 | |||||||
| Tier 1 capital | 955,221 | (a) | 999,284 | (a) | 966,884 | (a)(c) | 1,008,785 | (c) | 1,036,726 | |||||||||||
| Total risk-based capital | (16) | 1,045,437 | (a) | 1,086,897 | (a) | 1,053,184 | (a)(c) | 1,094,786 | (c) | 1,121,830 | ||||||||||
| Risk-weighted assets | 7,214,692 | 7,004,876 | 6,893,254 | 6,861,890 | 6,782,685 | |||||||||||||||
| Regulatory Capital Ratios | ||||||||||||||||||||
| Common equity Tier 1 capital ratio | (17) | 13.24 | % | 13.77 | % | 13.52 | % | 13.95 | % | 13.56 | % | |||||||||
| Tier 1 risk-based capital ratio | (18) | 13.24 | % | 14.27 | % | 14.03 | % | 14.70 | % | 15.28 | % | |||||||||
| Total risk-based capital ratio | (19) | 14.49 | % | 15.52 | % | 15.28 | % | 15.95 | % | 16.54 | % | |||||||||
| Leverage ratio | (20) | 9.54 | % | 9.69 | % | 9.33 | % | 9.84 | % | 10.48 | % | |||||||||
| Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach | ||||||||||||||||||||
| Total stockholders' equity | (1) | $ | 1,040,035 | (a) | $ | 1,069,160 | (a) | $ | 1,053,665 | (a)(c) | $ | 1,079,997 | (c) | $ | 1,108,423 | |||||
| Plus:CECL transition adjustment | (21) | 20,557 | 27,409 | 29,111 | 31,471 | 33,637 | ||||||||||||||
| Less:Noncumulative perpetual preferred stock | — | — | — | (c) | (24,000) | (c) | (92,000) | |||||||||||||
| Noncumulative perpetual preferred stock issuance costs | — | — | — | (c) | 7,453 | (c) | 10,130 | |||||||||||||
| Unrealized gains on available-for-sale securities, net of income tax | 20,522 | (5,663) | (9,330) | (8,408) | (7,146) | |||||||||||||||
| Unrealized losses on cash flow hedges, net of income tax | 116 | 503 | 710 | 808 | 916 | |||||||||||||||
| 1,081,230 | 1,091,409 | 1,074,156 | 1,087,321 | 1,053,960 | ||||||||||||||||
| Less:Disallowed goodwill | (86,069) | (86,069) | (86,069) | (86,069) | (86,069) | |||||||||||||||
| Disallowed other intangible assets, net | (24,384) | (25,771) | (26,938) | (28,555) | (30,172) | |||||||||||||||
| Disallowed deferred tax assets, net | (15,556) | (15,285) | (29,265) | (15,459) | (17,863) | |||||||||||||||
| Common equity Tier 1 capital | 955,221 | 964,284 | 931,884 | 957,238 | 919,856 | |||||||||||||||
| Plus:Qualifying noncumulative perpetual preferred stock | — | — | — | (c) | 24,000 | (c) | 92,000 | |||||||||||||
| Qualifying noncumulative perpetual preferred stock issuance costs | — | — | — | (c) | (7,453) | (c) | (10,130) | |||||||||||||
| Subordinated capital notes | — | (b) | 35,000 | 35,000 | 35,000 | 35,000 | ||||||||||||||
| Tier 1 capital | 955,221 | 999,284 | 966,884 | 1,008,785 | 1,036,726 | |||||||||||||||
| Plus tier 2 capital: Qualifying allowance for loan and lease losses | 90,216 | 87,613 | 86,300 | 86,001 | 85,104 | |||||||||||||||
| Total risk-based capital | $ | 1,045,437 | $ | 1,086,897 | $ | 1,053,184 | $ | 1,094,786 | $ | 1,121,830 |
(a)During 1Q 2022, the Company announced a $100 million share buyback program and and repurchased 1.2 million shares of common stock for $33.5 million. During 4Q 2021 and 3Q 2021, the Company repurchased $9.7 million and $40.2 million common stock, respectively, from its previous $50.0 million share buyback program.
(b)During 1Q 2022, the Company redeemed all outstanding $36.1 million subordinated capital notes prior to maturity.
(c)During 2Q 2021 and 3Q 2021, the Company redeemed Series A and B Preferred Stock, and Series D Preferred Stock, respectively.
OFG Bancorp (NYSE: OFG)
Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)
| (1) | We used the term "PCI" to refer to loans acquired with credit deterioration from the Scotiabank Acquisition (December 31, 2019), the BBVAPR Acquisition (December 18, 2012) and the Eurobank FDIC-Assisted Acquisition (April 30, 2010), recorded at fair value at acquisition. On January 1, 2020, the Company implemented ASU No. 2016-13: Measurement of Credit Losses on Financial Instruments "(CECL)" using the modified retrospective approach. CECL replaces the concept of purchased credit impaired loans (PCI) with the concept of purchased financial assets with credit deterioration (PCD). PCD accounting is called ‘gross-up accounting’ because, at acquisition, an entity grosses up the amortized cost basis of the PCD asset for the initial estimate of credit losses. This Day 1 allowance for credit losses is established without an income statement effect. The Company elected to maintain previously existing pools on adoption, therefore the pool continues to be the unit of account, and the allowance and non-credit discount or premium is not allocated to the individual assets. These loans are not classified as delinquent or nonperforming even though the customer may be contractually past due because we expect that we will fully collect the carrying value of these loans. |
|---|---|
| (2) | Total banking and financial service revenues. |
| (3) | Net interest income plus non-interest income, net (core) |
| (4) | Calculated based on net income available to common shareholders divided by average common shares outstanding for the period. |
| (5) | Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted. |
| (6) | Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information. |
| (7) | Information includes all loans held for investment, including PCD loans. |
| (8) | Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period. |
| (9) | Calculated based on annualized income, net of tax, for the period divided by average total assets for the period. |
| (10) | Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period. |
| (11) | Calculated based on non-interest expense for the period divided by total net interest income and total banking and financial services revenues for the period. |
| (12) | Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period. |
| (13) | Non-GAAP ratios. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios. |
| (14) | Production of new loans (excluding renewals). |
| (15) | Most PCD loans are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Therefore, they are not included as non-performing loans. PCD loan pools that are not accreting interest income are deemed to be non-performing loans and presented separately. |
| (16) | Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital. |
| (17) | Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets. |
| (18) | Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. |
| (19) | Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets. |
| (20) | Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments. |
| (21) | In March 2020, in light of recent strains on the U.S. economy as a result of the coronavirus disease 2019 (COVID-19), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. In addition, for the first two years, a uniform 25% “scaling factor” is introduced to approximate the portion of the post day-one allowance attributable to CECL relative to the incurred loss methodology. The 25% scaling factor is calibrated to approximate an overall after-tax impact of differences in allowances under CECL vs the incurred loss methodology. |
| (22) | CECL replaced the concept of purchased credit impaired loans (PCI assets) with the concept of purchased financial assets with credit deterioration (PCD assets). An entity records a PCD asset at the purchase price plus the allowance for credit losses expected at the time of acquisition. Under this method, there is no credit loss expense affecting net income on acquisition. Changes in estimates of expected credit losses after acquisition are recognized as credit loss expense (or reversal of credit loss expense) in subsequent periods as they arise. |
| (23) | Pre-provision net revenues is a non-GAAP measure calculated based on net interest income plus total non-interest income, net, less total non-interest expenses for the period. |
| (24) | PPP loans are fully guaranteed by the SBA and risk-weighted at 0%. |
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