UNITED STATES

SECURITIES AND EXCHANGE

COMMISSION

Washington, D.C. 20549

FORM

8-K/A

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, 2021

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, 15

Floor

254 Munoz Rivera Avenue

San Juan

Puerto Rico

00918

(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

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

7.125% Noncumulative Monthly Income Preferred

Stock, Series A ($25.00 liquidation preference

per share)

OFG.PRA

New York Stock Exchange

7.0% Noncumulative Monthly Income Preferred

Stock, Series B ($25.00 liquidation preference

per share)

OFG.PRB

New York Stock Exchange

7.125% Noncumulative Perpetual Preferred Stock,

Series D ($25.00 liquidation preference per

share)

OFG.PRD

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.

☐

Explanatory Note

OFG Bancorp is filing this Amendment to its Form 8-K for the quarter ended March 31, 2021 originally filed with

the Securities and Exchange Commission on April 21, 2021 (the “8-K”) solely to include the eXtensible Business

Reporting Language (“XBRL”), which was inadvertently omitted from the Form 8-K because of a technical error in

the submission. Except for such correction, this amendment does not update, modify or amend any disclosure set

forth in the Form 8-K as originally filed.

Item 2.02. Results of Operations

and Financial Condition.

On April 21,

2021,

OFG Bancorp (the “Company”)

announced the results for the quarter

ended March 31, 2021.

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

Press release by the Company dated April 21, 2021.

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,

2021

By:

/s/ Maritza Arizmendi

Maritza Arizmendi

Executive Vice President and Chief Financial Officer

ofg8kexhibit991q21

Exhibit 99

OFG Bancorp Reports 1Q21 Results

SAN JUAN, Puerto Rico, April 21,

2021 – OFG Bancorp (NYSE: OFG), the financial holding company

for Oriental Bank, reported

results for the first quarter ended March 31, 2021.

CEO Comment

José Rafael

Fernández, Chief

Executive Officer,

said: “First

quarter results

reflected strong

core performance

based on the

continued success of our

strategies focusing

on agility and service.

Our results also

reflected the federal

stimulus, increased

liquidity, and an improving Puerto Rico economy as more people get vaccinated.

“We benefitted

from strong

new loan generation

and deposit growth,

significantly reduced

cost of funds,

a more

efficient

operating structure, and the release of some COVID-related loan reserves.

“We followed

up last

year’s efforts

to help

small businesses

and their

employees with

another $126

million in

Paycheck

Protection Program

loans. Our

proprietary PPP

portal enables

clients to

apply for

funds, receive

them, and

then apply

for

forgiveness, quickly and easily, and all online.

“Performance metrics

improved with

a loan

yield of

6.61%, return on

average assets

of 1.21%,

return on

average tangible

common stockholders’ equity

of 13.11%, and

an efficiency ratio

of 60.84%. Credit

metrics also improved

as net charge

-offs,

delinquency rates, and loan deferrals all fell.

“Our capital

strategies are

working well.

In January,

we increased

the regular

quarterly cash

dividend 14%.

In March,

announced the redemption of all three outstanding series of preferred stock,

which will improve our capital structure, enable

us to effectively deploy excess liquidity,

and increase net income available to shareholders. As of 1Q21, we more

than earned

back all

the tangible

book value

per common

share dilution

involved in

the Scotiabank

acquisition significantly

ahead of

schedule.

“As Puerto Rico

and USVI continue experiencing stronger signs of economic revival, at OFG we are

strategically well-

positioned to benefit from and play

a major part in this long-awaited

development. Thanks to all our team members

who are

más que

listo

(more than

ready) to

help our

customers achieve

their goals

and aspirations

through the

pandemic and

beyond.”

1Q21 Highlights

Earnings:

EPS diluted was $0.56 compared to $0.42 in 4Q20 and $0.00 in 1Q20, which was the first quarter to be impacted by

the pandemic.

Revenues:

Total core

revenues were $127.7 million compared

to $132.8 million in 4Q20. 4Q20 benefited from

$3.9 million in

seasonal annual

insurance commissions,

$2.0 million

in mortgage

sales held

back from

3Q20, and

$3.1 million

interest

income from

acquired loan

pre-payments. 1Q21

included $1.6

million in

interest income

from unamortized

yield from

approximately $92 million of forgiven PPP loans and benefitted from $1.4 million lower cost of deposits.

Expenses:

Non-interest expenses

were $77.7

million compared

to $89.0

million in

4Q20 and

$87.3 million

in 1Q20.

4Q20

included $10.1 million

in merger

and restructuring

expenses. 1Q21

reflected previously

-announced cost savings

as well

$1.8 million primarily in gains

on sales as well

as improved valuations of

foreclosed properties. The efficiency ratio

improved

to 60.84% from 67.06% in 4Q20 and 66.49% in 1Q20.

Pre-Provision Net Revenues:

PPNR was $50.9 million compared to $44.1 million in 4Q20 and $49.2 million in 1Q20.

Provision:

Provision for

credit losses

was $6.3

million compared

to $14.2

million in

4Q20 and $47.1

million in

1Q20. 1Q21

included a

$3.7 million

release of

last year’s

COVID-19 related

loan reserves

and $3.5

million for

a commercial

loan in

workout prior to the pandemic. 1Q20 included $34.1 million related to the pandemic.

Loan Generation

and Balances:

New loan

originations totaled

$527.6 million

($401.4 million

excluding PPP),

compared to

$485.3 million in 4Q20

and $280.8 million

in 1Q20. In addition

to PPP loans,

1Q21 was driven year

-over-year by increases

mortgage, auto, and

commercial lending. Net loans

were $6.43 billion at

3/31/21 compared to $6.50 billion

at 12/31/20 and

$6.54 billion at 3/31/20. Net interest margin was 4.26% compared to 4.24% in 4Q20 and 4.94% in 1Q20.

Deposit Balances and Cost of Funds:

Customer deposits at 3/31/21 were $8.72 billion

compared to $8.37 billion at

12/31/20

and $7.56

billion at

3/31/20. Cost

of funds

was 48

bps compared

to 53

bps in

4Q20 and

69 bps

in 1Q20.

Total interest

expense was $12.8 million compared to $14.3 million in 4Q20 and $18.6 million in 1Q20.

Asset Quality:

Net charge-offs were

$9.1 million compared to $44.8 million

in 4Q20 and $24.0 million in 1Q20. The

nonperforming loan

rate was

2.22% compared

to 2.35%

in 4Q20

and 2.07%

in 1Q20.

Total delinquency

rate was

2.15%

compared to 2.68% in 4Q20 and 3.16% in 1Q20.

Capital:

Tangible book

value per

share was

$17.39 compared

to $16.97

in 4Q20

and $15.60

in 1Q20.

The CET1

ratio was

13.56% compared to 13.08% in 4Q20 and 11.69% in 1Q20.

Conference

Call, Financial Supplement & Presentation

A conference call

to discuss 1Q21 results,

outlook and related

matters will

be held today

at 10:00 AM

ET.

Phone (888) 562-

3356 or

(973) 582-2700.

Conference ID:

319-4111. The

call can

also be

accessed live

www.ofgbancorp.com.

Webcast

replay will be available shortly thereafter.

OFG’s Financial

Supplement, with full

financial tables for

the quarter ended

March 31, 2021,

and the 1Q21

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

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)

the rate

of growth

in the

economy and

employment levels,

as well

as general

business and

economic conditions;

(ii) changes

in interest

rates, as

well as

the

magnitude of such changes; (iii) changes to the financial condition of the government of Puerto Rico; (iv) the potential impact

of damages

from future

hurricanes, earthquakes

and other

natural disasters

in Puerto

Rico; (v)

the fiscal

and monetary

policies of the federal

government and its agencies;

(vi) the performance of the

stock and bond markets;

(vii) competition in

the financial

services industry;

(viii) possible

legislative, tax

or regulatory

changes; and

(ix) the

severity, magnitude

and

duration of the COVID

-19 pandemic, including impacts of the

pandemic and of responses of federal,

state and local

governments on our branches, operations and personnel, and on our customers and their businesses.

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, 2020, 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

circumstances after the date of such statements.

About OFG Bancorp

Now in its 57

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, 2021 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

Financial and Statistical Summary - Consolidated

Table

Consolidated Statements of Operations

Table

Consolidated Statements of Financial Condition

Table

Information on Loan Portfolio and Production

5-6

Table

Average Balances, Net Interest Income and Net Interest Margin

Table

Loan Information and Performance Statistics

8-10

Table

Allowance for Credit Losses

Table

Reconciliation of GAAP to Non-GAAP Measures and

Calculation of Regulatory Capital

12-13

Table

Notes to Financial Summary, Selected Metrics, Loans, and Consolidated

Financial Statements (Tables 1-8)

OFG Bancorp (NYSE: OFG)

Table 1: Financial and Statistical Summary - Consolidated

2021

2020

(Dollars in thousands, except

per share data) (unaudited)

Statement of Operations

Net interest income

98,204

98,738

99,533

105,060

105,101

Non-interest income,

net (core)

(2)

29,452

34,047

27,486

23,106

26,233

Total core

revenues

127,656

132,785

127,019

128,166

131,334

Non-interest expense

77,666

89,039

83,444

85,481

87,322

Pre-provision net revenues

(22)

50,945

44,123

47,415

46,731

49,229

Total provision

for credit losses

6,324

14,176

13,669

17,696

(e)

47,131

(e)

Net income before income

taxes

44,621

29,947

33,746

29,035

2,098

Income tax expense

14,248

6,646

6,308

7,248

297

Net income available to

common stockholders

29,118

21,673

25,810

20,159

173

Common Share Statistics

Earnings (loss) per common

share - basic

(3)

0.57

0.42

0.50

0.39

Earnings (loss) per common

share - diluted

(4)

0.56

0.42

0.50

0.39

Average common

shares outstanding

51,397

51,350

51,342

51,336

51,404

Average common

shares outstanding

and equivalents

51,616

51,618

51,527

51,470

51,713

Cash dividends per common share

0.08

0.07

Book value per common share

(period end)

19.90

19.54

19.13

18.69

18.33

(d)

Tangible book

value per common share

(period end)

(5)

17.39

16.97

16.51

16.01

15.60

(d)

Balance Sheet (Average

Balances)

Loans

(6)

6,635,908

(b)

6,708,284

(b)

6,787,022

(b)

6,840,650

(b)

6,687,875

(d)

Interest-earning assets

9,358,377

9,270,739

9,218,717

8,845,744

8,556,421

Total assets

10,004,323

9,921,254

9,918,381

9,512,129

9,326,627

Core deposits

8,535,678

8,451,308

8,376,623

7,852,495

7,516,438

Total deposits

8,581,633

8,515,646

8,517,039

8,088,106

7,752,446

Interest-bearing deposits

6,223,419

6,199,929

6,240,639

6,105,014

6,053,482

Borrowings

100,951

101,930

102,916

157,669

271,800

Stockholders' equity

1,101,046

1,083,423

1,062,460

1,037,195

1,043,481

(d)

Common stockholders'

equity

1,019,176

1,001,553

980,590

955,325

961,611

(d)

Performance Metrics

Net interest margin

(7)

4.26%

4.24%

4.30%

4.78%

4.94%

Return on average

assets

(8)

1.21%

0.94%

1.11%

0.92%

0.08%

Return on average

tangible common stockholders'

equity

(9)

13.11%

9.99%

12.23%

9.88%

0.08%

Efficiency ratio

(10)

60.84%

67.06%

65.69%

66.70%

66.49%

Full-time equivalent employees,

period end

2,238

2,275

2,332

2,373

2,449

Credit Quality Metrics

(1)(21)

Allowance for loan and lease

losses

201,973

204,809

(a)

235,313

232,701

230,755

(d)(e)

Allowance as a % of loans held for

investment

3.06%

(b)

3.07%

(a)(b)

3.48%

(b)

3.35%

(b)

3.41%

Net charge-offs

9,105

44,814

(a)

10,570

15,750

24,034

Net charge-off rate

(11)

0.55%

2.67%

(a)

0.62%

0.92%

1.44%

Early delinquency rate

(30 - 89 days past

due)

2.15%

2.68%

2.50%

2.64%

3.16%

Total delinquency

rate (30 days and

over)

4.65%

5.74%

5.67%

5.56%

6.38%

Capital Ratios (Non-GAAP)

(12)(20)

Leverage ratio

10.48%

10.30%

10.00%

10.16%

10.14%

(c)(d)

Common equity Tier 1 capital

ratio

13.56%

13.08%

12.55%

12.03%

11.69%

(c)(d)

Tier 1 risk-based capital ratio

15.28%

14.78%

14.25%

13.71%

13.36%

(c)(d)

Total risk-based

capital ratio

16.54%

16.04%

15.50%

14.96%

14.62%

(c)(d)

Tangible common

equity ("TCE") ratio

8.95%

9.00%

8.58%

8.39%

8.80%

(a) During 4Q 2020, the Company

charged-off $31.2 million

for two commercial

PCD loans.

(b) At June 30, 2020, September

30, 2020, December 31, 2020

and March 31, 2021, the Company

had PPP loans amounting to

$278.1 million, $289.2 million, $282.7

million and

$336.7 million, respectively.

These loans are fully guaranteed

by the SBA and risk-weighted

at 0%.

implemented Simplifications

to the Capital Rule, which

increased common

equity tier 1 (CET1) capital

threshold deductions

from 10 percent

to 25 percent and removed

the aggregate 15 percent

CET1 threshold deduction.

(d) On January 1, 2020, the Company

implemented ASU No. 2016

-13: Measurement of Credit

Losses on Financial Instruments

"(CECL)" using the modified retrospective

approach. As

a result, a $39.2 million allowance

for credit losses

was recorded for Non-PCD

loans and $0.2 million for

unused commitments with

the corresponding adjustment

reducing retained

earnings, net of a $13.9 million deferred

tax effect.

For PCD loans, the adjustment

amounting to $50.5 million

was made through

the allowance and loan balances

with no impact in

capital. The Company elected

to phase-in the January 1,

2020 (“day 1”)

impact to retained

earnings to regulatory

capital over the five

-year transition period

beginning in 2020.

(e) During 1Q 2020 and 2Q2020,

the Company increased

its provision for credit

losses by $34.1 million and

$5 million, respectively,

as a result of the Covid-19

pandemic.

OFG Bancorp (NYSE: OFG)

Table 2: Consolidated Statements of Operations

Quarter Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands, except

per share data) (unaudited)

2021

2020

Interest income:

Loans

(1)

Non-PCD loans

82,936

81,171

83,029

83,832

87,482

PCD loans

25,275

29,250

29,018

(b)

34,700

(b)

28,953

Total

interest income from

loans

108,211

110,421

112,047

118,532

116,435

Investment securities

2,771

2,600

2,890

3,160

7,262

Total

interest income

110,982

113,021

114,937

121,692

123,697

Interest expense:

Deposits

Core deposits

11,861

13,225

13,808

13,999

15,034

Brokered deposits

163

288

812

1,446

1,586

Total deposits

12,024

13,513

14,620

15,445

16,620

Borrowings

754

770

784

1,187

1,976

Total interest

expense

12,778

14,283

15,404

16,632

18,596

Net interest income

98,204

98,738

99,533

105,060

105,101

Provision for credit losses,

excluding PCD loans

(1)

2,998

15,464

13,845

15,227

40,951

Provision (recapture)

for credit losses on PCD

loans

(1)

3,326

(1,288)

(176)

2,469

6,180

Total provision

for credit losses

6,324

14,176

13,669

17,696

(d)

47,131

(d)

Net interest income

after provision for

loan and lease losses

91,880

84,562

85,864

87,364

57,970

Non-interest income:

Banking service revenues

16,493

16,901

16,297

13,668

15,713

Wealth management

revenues

7,388

10,865

(a)

7,272

6,366

7,286

Mortgage banking activities

5,571

6,281

3,917

3,072

3,234

Total banking

and financial service revenues

29,452

34,047

27,486

23,106

26,233

Bargain purchase from

Scotiabank PR & USVI acquisition

3,465

(c)

3,462

(c)

409

(c)

Other income, net

955

377

375

584

4,808

(f)

Total

non-interest income,

net

30,407

34,424

31,326

27,152

31,450

Non-interest expense:

Compensation and employee benefits

32,618

30,921

31,955

34,506

35,544

Occupancy, equipment

and infrastructure

costs

13,128

12,064

11,943

11,837

11,439

General and administrative

expenses

30,201

33,454

33,452

31,181

37,345

Net (gain) loss on sale of foreclosed

real estate and

other repossessed assets

(1,770)

(300)

(866)

316

(193)

Credit related expenses

1,720

1,304

2,189

2,602

2,715

Merger and restructuring

charges

10,092

(e)

2,681

(e)

3,006

(e)

304

COVID 19 expenses

1,769

1,504

2,090

2,033

168

Total non-interest

expense

77,666

89,039

83,444

85,481

87,322

Income before income taxes

44,621

29,947

33,746

29,035

2,098

Income tax expense

14,248

6,646

6,308

7,248

297

Net income

30,373

23,301

27,438

21,787

1,801

Less:

dividends on preferred

stock

(1,255)

(1,628)

Net income available to

common shareholders

29,118

21,673

25,810

20,159

173

(a) During 4Q 2020, the Company

recognized annual

insurance contingent

commissions amounting

to $4.0 million.

(b) During 2Q 2020 and 3Q 2020, the

Company recognized

interest recoveries

on SOP loans acquired in the

Scotiabank PR & USVI

acquisition collected subsequently

to the acquisition

date amounting to $6.0 million

and $469 thousand, respectively.

3Q2020, the Company increased

the Bargain purchase

from Scotiabank PR &

USVI acquisition by $

0.4 million, $3.5 million

and $3.5 million,

respectively, as

part of remeasurement

period adjustments.

(d) During 1Q 2020 and 2Q2020, the Company

increased its provision

for credit losses

by $34.1 million and $5 million,

respectively,

as a result of the Covid-19

pandemic.

(e) On December 31, 2019, the Company

acquired Scotiabank's

Puerto Rico and USVI operations,

incurring in merger and restructuring

charges of $3.0 million during

2Q 2020, $2.7

million during 3Q 2020, and $10.1 million

during 4Q 2020.

(f) During 1Q 2020, the Company

sold $316 million available

-for-sale mortgage

-backed securities and recognized

a gain in the sale of

$4.7 million.

OFG Bancorp (NYSE: OFG)

Table 3: Consolidated Statements of Financial Condition

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands) (unaudited)

2021

2020

Cash and cash equivalents

2,409,416

2,155,577

2,283,050

1,900,037

1,325,941

Investments:

Trading securities

Investment securities

available-for-sale, at

fair value,

with amortized cost

of $462,115 ( December 31, 2020

$432,175;

September 30, 2020 -

$412,899; June 30, 2020 - $529,985;

March 31, 2020 - $648,565; no allowance

for credit

losses for any

period)

Mortgage-backed securities

457,673

432,935

329,719

340,192

355,637

US treasury notes

10,946

10,983

91,531

197,340

298,986

Other investment

securities

2,390

2,520

2,565

2,707

2,837

Total investment

securities available

-for-sale

471,009

446,438

423,815

540,239

657,460

Mortgage-backed securities

held-to-maturity,

at amortized cost,

no allowance for credit

losses

126,767

Federal Home Loan Bank

(FHLB) stock, at cost

8,233

8,278

8,322

8,366

10,301

Other investments

5,557

3,962

2,205

1,076

973

Total investments

611,589

458,700

434,364

549,703

668,763

Loans, net

6,432,079

6,501,259

6,579,140

6,739,243

6,541,174

Other assets:

Prepaid expenses

58,348

61,416

54,583

40,119

44,633

Deferred tax asset, net

154,540

162,478

178,957

186,730

196,129

Foreclosed real estate

and repossessed properties

18,366

13,412

21,374

26,152

30,388

Premises and equipment, net

83,756

83,786

83,270

82,234

81,834

Goodwill

86,069

Right of use assets

32,714

31,383

35,900

34,692

36,844

Core deposit, customer relationship

intangible and other intangibles

43,445

45,896

48,650

51,406

54,174

Servicing asset

47,911

47,295

47,242

47,926

49,287

Accounts receivable and other

assets

175,109

178,740

166,392

188,408

(a)

123,335

Total assets

10,153,342

9,826,011

10,018,991

9,932,719

9,238,571

Deposits:

Demand deposits

4,885,311

4,613,309

4,682,991

4,370,419

3,711,492

Savings accounts

2,142,573

1,920,325

1,919,859

1,978,118

1,829,054

Time deposits

1,693,924

1,832,891

1,933,517

1,975,223

2,023,211

Brokered deposits

34,954

49,115

96,090

218,166

255,514

Total deposits

8,756,762

8,415,640

8,632,457

8,541,926

7,819,271

Borrowings:

Securities sold under agreements

to repurchase

50,103

Advances from FHLB and other

borrowings

65,013

66,268

66,781

68,340

77,601

Subordinated capital

notes

36,083

Total borrowings

101,096

102,351

102,864

104,423

163,787

Other liabilities:

Derivative liabilities

1,465

1,712

1,895

2,078

2,059

Acceptances outstanding

24,389

33,349

18,291

20,034

11,763

Lease liability

34,017

32,566

37,029

35,694

37,702

Accrued expenses and other

liabilities

127,190

154,418

162,133

187,280

181,395

Total liabilities

9,044,919

8,740,036

8,954,669

8,891,435

8,215,977

Stockholders' equity:

Preferred stock

92,000

Common stock

59,885

Additional paid-in capital

622,935

622,652

621,978

621,860

621,206

Legal surplus

106,165

103,269

101,233

98,347

95,945

Retained earnings

322,202

300,096

284,053

264,725

250,557

Treasury stock,

at cost

(100,994)

(102,949)

(103,095)

(103,121)

(103,289)

Accumulated other comprehensive

(loss) income, net

6,230

11,022

8,268

7,588

6,290

Total stockholders'

equity

1,108,423

1,085,975

1,064,322

1,041,284

1,022,594

Total liabilities

and stockholders' equity

10,153,342

9,826,011

10,018,991

9,932,719

9,238,571

(a) During 2Q 2020, the Company

offered several

deferral programs

to clients impacted by

the Covid-19, which contributed

to the increase of accrued

interest receivable

approximately $40 million.

OFG Bancorp (NYSE: OFG)

Table 4-1: Information on Loan Portfolio and

Production

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands) (unaudited)

2021

2020

Non-PCD:

(1)

Mortgage

791,062

823,443

847,671

874,286

887,950

Commercial

1,827,102

1,836,137

1,785,022

1,918,424

1,910,192

Commercial Paycheck

Protection Program

(PPP Loans)

311,823

282,713

289,218

278,059

Consumer

395,073

413,552

434,546

458,714

481,710

Auto

1,565,473

1,534,269

1,511,829

1,454,987

1,487,701

4,890,533

4,890,114

4,868,286

4,984,470

4,767,553

Less:

Allowance for credit

losses

(156,978)

(161,015)

(156,409)

(151,507)

(149,961)

Total non-

PCD loans held for investment,

net

4,733,555

4,729,099

4,711,877

4,832,963

4,617,592

PCD:

(1)

Mortgage

1,406,044

1,459,932

1,504,914

1,541,637

1,561,557

Commercial

272,793

283,160

(a)

352,555

386,046

391,158

Consumer

1,120

1,394

2,336

2,950

3,350

Auto

23,036

27,533

31,836

37,409

42,466

1,702,993

1,772,019

1,891,641

1,968,042

1,998,531

Less:

Allowance

for credit losses

(1)

(44,995)

(43,794)

(a)

(78,904)

(81,194)

(80,794)

Total PCD

loans held for investment,

net

1,657,998

1,728,225

1,812,737

1,886,848

1,917,737

Total loans held

for investment

6,391,553

6,457,324

6,524,614

6,719,811

6,535,329

Mortgage loans held for sale

38,220

41,654

54,526

19,432

5,845

Other loans held for sale

2,306

2,281

Total loans,

net

6,432,079

6,501,259

6,579,140

6,739,243

6,541,174

Loan Portfolio Summary:

Loans held for investment:

Mortgage

2,197,106

2,283,375

2,352,585

2,415,923

2,449,507

Commercial

2,411,718

2,402,010

2,426,795

2,582,529

2,301,350

Consumer

396,193

414,946

436,882

461,664

485,060

Auto

1,588,509

1,561,802

1,543,665

1,492,396

1,530,167

6,593,526

6,662,133

6,759,927

6,952,512

6,766,084

Less:

Allowance for credit

losses

(201,973)

(204,809)

(235,313)

(232,701)

(230,755)

Total loans

held for investment,

net

6,391,553

6,457,324

6,524,614

6,719,811

6,535,329

Mortgage loans held for sale

38,220

41,654

54,526

19,432

5,845

Other loans held for

sale

2,306

2,281

Total loans,

net

6,432,079

6,501,259

6,579,140

6,739,243

6,541,174

(a) During 4Q 2020, the Company

charged-off $31.2 million

for two commercial

PCD loans.

OFG Bancorp (NYSE: OFG)

Table 4-2: Information on Loan Portfolio and

Production

Quarter Ended

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in thousands) (unaudited)

2021

2020

Loan production

(13)

Mortgage

95,851

97,656

93,650

23,744

30,988

Commercial

83,820

174,894

83,488

98,558

54,113

Commercial PPP Loans

126,266

10,318

286,420

US Loan Programs

44,841

49,221

90,878

35,711

47,125

Consumer

27,492

25,984

23,540

14,231

39,199

Auto

149,357

137,545

155,880

47,374

109,344

Total

527,627

485,300

457,754

506,038

280,769

OFG Bancorp (NYSE: OFG)

Table 5: Average

Balances, Net Interest Income and Net Interest Margin

2021 Q1

2020 Q4

2020 Q3

2020 Q2

2020 Q1

Interest

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

(Dollars in thousands) (unaudited)

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Interest earning assets:

Cash equivalents

2,204,431

595

0.11

2,091,458

613

0.12

1,929,024

613

0.13

1,393,187

359

0.10

943,581

2,788

1.19

Investment securities

518,038

2,176

1.68

470,997

1,986

1.69

502,671

2,278

1.81

611,907

2,801

1.83

924,965

4,474

1.93

Loans held for investment

(1)

Non-PCD loans

4,893,874

82,936

6.87

4,863,902

81,171

6.64

4,870,753

83,029

6.78

4,857,281

83,832

6.94

4,613,878

87,482

7.63

PCD loans

1,742,034

25,275

5.80

1,844,382

29,250

6.34

1,916,269

29,018

6.06

1,983,369

34,700

7.00

2,073,997

28,953

5.58

Total

loans

6,635,908

108,211

6.61

6,708,284

110,421

6.55

6,787,022

112,047

6.57

6,840,650

118,532

6.97

6,687,875

116,435

7.00

Total interest

-earning assets

9,358,377

110,982

4.81

9,270,739

113,020

4.85

9,218,717

114,938

4.96

8,845,744

121,692

5.53

8,556,421

123,697

5.81

Interest bearing liabilities:

Deposits

NOW accounts

2,397,673

2,393

0.40

2,344,903

2,258

0.38

2,227,687

2,247

0.40

2,069,247

2,138

0.42

1,980,505

2,389

0.48

Savings accounts

2,003,963

2,124

0.43

1,897,618

1,954

0.41

1,927,680

2,010

0.41

1,809,517

1,976

0.44

1,797,658

2,440

0.55

Time deposits

1,775,828

5,507

1.26

1,893,070

6,975

1.47

1,944,856

7,512

1.54

1,990,639

7,835

1.58

2,039,311

8,131

1.60

Brokered

deposits

45,955

163

1.44

64,338

289

1.78

140,416

812

2.30

235,611

1,446

2.47

236,008

1,586

2.70

6,223,419

10,187

0.66

6,199,929

11,476

0.74

6,240,639

12,581

0.80

6,105,014

13,395

0.88

6,053,482

14,546

0.97

Non-interest bearing

deposit accounts

2,358,214

2,315,717

2,276,400

1,983,092

1,698,964

Fair value premium amortization

and

core deposit intangible amortization

1,837

2,037

2,039

2,051

2,074

Total

deposits

8,581,633

12,024

0.57

8,515,646

13,513

0.63

8,517,039

14,620

0.68

8,088,106

15,446

0.77

7,752,446

16,620

0.86

Borrowings

Securities sold under agreements

repurchase

46,154

334

2.91

158,462

1,002

2.54

Advances from FHLB and

other

borrowings

64,868

459

2.87

65,847

468

2.83

66,833

476

2.83

75,432

505

2.69

77,255

539

2.81

Subordinated capital

notes

36,083

295

3.31

36,083

301

3.34

36,083

308

3.39

36,083

347

3.87

36,083

435

4.85

Total

borrowings

100,951

754

3.03

101,930

769

3.01

102,916

784

3.03

157,669

1,186

3.03

271,800

1,976

2.92

Total interest

-bearing liabilities

8,682,584

12,778

0.60

8,617,576

14,282

0.66

8,619,955

15,404

0.71

8,245,775

16,632

0.81

8,024,246

18,596

0.93

Interest rate spread

98,204

4.21

98,738

4.19

99,534

4.25

105,060

4.72

105,101

4.88

Net interest margin

4.26

4.24

4.30

4.78

4.94

Core deposits: (Non-GAAP)

Deposits

NOW accounts

2,397,673

2,393

0.40

2,344,903

2,258

0.38

2,227,687

2,247

0.40

2,069,247

2,138

0.42

1,980,505

2,389

0.48

Savings accounts

2,003,963

2,124

0.43

1,897,618

1,954

0.41

1,927,680

2,010

0.41

1,809,517

1,976

0.44

1,797,658

2,440

0.55

Time deposits

1,775,828

5,507

1.26

1,893,070

6,975

1.47

1,944,856

7,512

1.54

1,990,639

7,835

1.58

2,039,311

8,131

1.60

6,177,464

10,024

0.66

6,135,591

11,187

0.73

6,100,223

11,769

0.77

5,869,403

11,949

0.82

5,817,474

12,960

0.91

Non-interest bearing

deposit accounts

2,358,214

2,315,717

2,276,400

1,983,092

1,698,964

Total

core deposits

8,535,678

10,024

0.48

8,451,308

11,187

0.53

8,376,623

11,769

0.56

7,852,495

11,949

0.61

7,516,438

12,960

0.69

OFG Bancorp (NYSE: OFG)

Table 6-1: Loan Information and Performance Statistics (1)

2021

2020

(Dollars in thousands) (unaudited)

Net Charge-offs

(21)

Non-PCD

Mortgage:

Charge-offs

787

225

185

418

Recoveries

(615)

(79)

(269)

(9)

(249)

Total

mortgage

173

146

(213)

176

169

Commercial:

Charge-offs

413

298

497

3,771

Recoveries

(430)

(334)

(253)

(631)

(1,522)

Total

commercial

(363)

(134)

2,249

Consumer:

Charge-offs

4,469

6,456

5,114

4,187

6,015

Recoveries

(565)

(1,832)

(663)

(443)

(644)

Total

consumer

3,903

4,624

4,451

3,744

5,371

Auto:

Charge-offs

9,083

12,071

10,123

13,300

13,053

Recoveries

(5,817)

(5,928)

(5,950)

(3,405)

(4,211)

Total

auto

3,266

6,143

4,173

9,895

8,842

Total

6,980

10,992

8,456

13,681

16,631

PCD

Mortgage:

Charge-offs

2,590

1,344

1,677

2,178

5,143

Recoveries

(146)

(63)

(89)

(580)

(122)

Total

mortgage

2,444

1,281

1,588

1,598

5,021

Commercial:

Charge-offs

33,061

(a)

293

386

2,357

Recoveries

(436)

(234)

(91)

(286)

(375)

Total

commercial

(393)

32,827

202

100

1,982

Consumer:

Charge-offs

431

Recoveries

(21)

(200)

(30)

(63)

Total

consumer

(179)

368

Auto:

Charge-offs

456

574

474

600

375

Recoveries

(383)

(681)

(211)

(229)

(343)

Total

auto

(107)

263

371

Total

2,125

33,822

(a)

2,114

2,069

7,403

Total Net

Charge-offs

9,105

44,814

10,570

15,750

24,034

Net Charge-off Rates

(21)

Mortgage

0.47%

0.25%

0.24%

0.30%

0.86%

Commercial

-0.13%

5.45%

(a)

0.04%

-0.01%

0.76%

Consumer

3.78%

4.09%

3.94%

3.12%

4.63%

Auto

0.85%

1.56%

1.17%

2.72%

2.31%

Total

0.55%

2.67%

(a)

0.62%

0.92%

1.44%

Average Loans Held

For Investment

(21)

Mortgage

2,243,303

2,305,495

2,325,756

2,366,600

2,414,685

Commercial

2,405,419

2,416,703

2,484,977

2,484,573

2,239,684

Consumer

413,191

434,565

457,620

479,957

496,313

Auto

1,573,995

1,551,521

1,518,669

1,509,521

1,537,193

Total

6,635,908

6,708,284

6,787,022

6,840,651

6,687,875

(a) During 4Q 2020, the Company

charged-off $31.2 million

for two commercial

PCD loans.

Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans) (1)

OFG Bancorp (NYSE: OFG)

2021

2020

(Dollars in thousands) (unaudited)

Early Delinquency (30 - 89 days

past due)

Mortgage

17,350

22,339

16,783

15,665

20,518

Commercial

3,911

8,043

5,151

7,704

6,074

Consumer

8,250

12,230

12,032

18,254

13,127

Auto

75,449

88,357

87,912

89,825

110,959

Total

104,960

130,969

121,878

131,448

150,678

Early Delinquency Rates (30

89 days past due)

Mortgage

2.19%

2.71%

1.98%

1.79%

2.31%

Commercial

0.21%

0.44%

0.29%

0.40%

0.32%

Consumer

2.09%

2.96%

2.77%

3.98%

2.73%

Auto

4.82%

5.76%

5.81%

6.17%

7.46%

Total

2.15%

2.68%

2.50%

2.64%

3.16%

Total Delinquency

(30 days and over past

due)

Mortgage:

Traditional,

Non traditional, and Loans

under Loss Mitigation

62,827

67,671

51,123

40,719

46,768

GNMA's buy-back option program

40,777

56,193

62,651

75,091

75,314

Total mortgage

103,604

123,864

113,774

115,810

122,082

Commercial

26,065

30,604

35,596

38,258

33,746

Consumer

11,042

17,147

17,080

22,796

16,808

Auto

86,918

108,842

109,735

100,027

131,715

Total

227,629

280,457

276,185

276,891

304,351

Total Delinquency

Rates (30 days and

over past due)

Mortgage:

Traditional,

Non traditional, and Loans

under Loss Mitigation

7.94%

8.22%

6.03%

4.66%

5.27%

GNMA's buy-back option program

5.15%

6.82%

7.39%

8.59%

8.48%

Total mortgage

13.10%

15.04%

13.42%

13.25%

13.75%

Commercial

1.43%

1.67%

1.99%

1.77%

Consumer

2.79%

4.15%

3.93%

4.97%

3.49%

Auto

5.55%

7.09%

7.26%

6.87%

8.85%

Total

4.65%

5.74%

5.67%

5.56%

6.38%

Nonperforming Assets

(14)

Mortgage

50,933

46,967

40,477

30,491

31,073

Commercial

42,778

41,999

44,941

44,187

42,668

Consumer

2,900

4,987

5,206

4,933

3,690

Auto

11,842

20,766

22,583

10,539

21,147

Total nonperforming

loans

108,453

114,719

113,207

90,150

98,578

Foreclosed real estate

15,598

11,596

19,456

24,792

27,292

Other repossessed assets

2,768

1,816

1,918

1,360

3,096

Total nonperforming

assets

126,819

128,131

134,581

116,302

128,966

Nonperforming Loan Rates

Mortgage

6.44%

5.70%

4.78%

3.49%

3.50%

Commercial

2.34%

2.29%

2.52%

2.30%

2.23%

Consumer

0.73%

1.21%

1.20%

1.08%

0.77%

Auto

0.76%

1.35%

1.49%

0.72%

1.42%

Total loans

2.22%

2.35%

2.33%

1.81%

2.07%

OFG Bancorp (NYSE: OFG)

Table 6-3: Loan Information and Performance Statistics (1)

2021

2020

(Dollars in thousands) (unaudited)

Nonperforming PCD Loans

(14)

Mortgage

958

1,003

1,373

1,341

Commercial

34,906

36,470

(a)

79,631

81,064

82,411

Consumer

Total nonperforming

loans

35,864

37,474

(a)

80,638

82,449

83,762

Nonperforming PCD Loan Rates

Mortgage

0.07%

0.09%

Commercial

12.80%

12.88%

(a)

22.59%

21.00%

21.07%

Consumer

0.00%

0.07%

0.17%

0.41%

0.30%

Total

2.11%

(a)

4.26%

4.19%

Total PCD Loans

Held for Investment

(21)

Mortgage

1,406,044

1,459,932

1,504,914

1,541,637

1,561,557

Commercial

272,793

283,160

352,555

386,046

391,158

Consumer

1,120

1,394

2,336

2,950

3,350

Total loans

1,679,957

1,744,486

1,859,805

1,930,633

1,956,065

2021

2020

(Dollars in thousands) (unaudited)

Total Nonperforming

Loans

(14)

Mortgage

51,891

47,970

41,480

31,864

32,414

Commercial

77,684

78,469

(a)

124,572

125,251

125,079

Consumer

2,900

4,988

5,210

4,945

3,700

Auto

11,842

20,766

22,583

10,539

21,147

Total nonperforming

loans

144,317

152,193

(a)

193,845

172,599

182,340

Total Nonperforming

Loan Rates

Mortgage

2.36%

2.10%

1.76%

1.32%

Commercial

3.22%

3.27%

(a)

5.13%

4.85%

5.44%

Consumer

0.73%

1.20%

1.19%

1.07%

0.76%

Auto

0.75%

1.33%

1.46%

0.71%

1.38%

Total

2.19%

2.28%

(a)

2.87%

2.48%

2.69%

Total Loans Held

for Investment

(21)

Mortgage

2,197,106

2,283,375

2,352,585

2,415,923

2,449,507

Commercial

2,411,718

2,402,010

2,426,795

2,582,529

2,301,350

Consumer

396,193

414,946

436,882

461,664

485,060

Auto

1,588,509

1,561,802

1,543,665

1,492,396

1,530,167

Total loans

6,593,526

6,662,133

6,759,927

6,952,512

6,766,084

(a) During 4Q 2020, the Company

charged-off $31.2 million

for two commercial

PCD loans.

OFG Bancorp (NYSE: OFG)

Table 7: Allowance for Credit Losses (1)

Quarter Ended March 31, 2021

(Dollars in thousands) (unaudited)

Mortgage

Commercial

Consumer

Auto

Total

Allowance for credit losses

Non-PCD:

Balance at beginning of period

19,687

45,779

25,253

70,296

161,015

(Recapture) provision

for credit losses

(2,480)

1,542

(158)

4,039

2,943

Charge-offs

(787)

(68)

(4,469)

(9,083)

(14,407)

Recoveries

615

430

565

5,817

7,427

Balance at end of period

17,035

47,683

21,191

71,069

156,978

Allowance for credit losses

PCD:

Balance at beginning of period

26,388

16,406

943

43,794

Provision (recapture)

for credit losses

5,994

(2,492)

(4)

(172)

3,326

Charge-offs

(2,590)

(43)

(22)

(456)

(3,111)

Recoveries

146

436

383

986

Balance at end of period

29,938

14,307

698

44,995

Allowance for credit

losses summary:

Balance at beginning of period

46,075

62,185

25,310

71,239

204,809

Provision (recapture)

for credit losses

3,514

(950)

(162)

3,867

6,269

Charge-offs

(3,377)

(111)

(4,491)

(9,539)

(17,518)

Recoveries

761

866

586

6,200

8,413

Balance at end of period

46,973

61,990

21,243

71,767

201,973

Allowance coverage ratio

2.14%

2.57%

5.36%

4.52%

3.06%

Allowance coverage ratio

excluding PPP loans (Non-GAAP)

2.14%

2.95%

5.36%

4.52%

3.22%

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.

2021

2020

(Dollars in thousands) (unaudited)

Stockholders' Equity to Non

-GAAP Tangible

Common Equity

Total stockholders'

equity

1,108,423

1,085,975

1,064,322

1,041,284

1,022,594

Less:

Intangible assets

(129,514)

(131,965)

(134,719)

(137,475)

(140,243)

Noncumulative perpetual

preferred stock

(92,000)

Noncumulative perpetual

preferred stock

issuance costs

10,130

Tangible common

equity

897,039

872,140

847,733

821,939

800,481

Common shares outstanding

at end of period

51,579

51,387

51,345

51,342

51,327

Tangible book

value per common share

(Non-GAAP)

17.39

16.97

16.51

16.01

15.60

Total Assets

to Tangible Assets

Total assets

10,153,342

9,826,011

10,018,991

9,932,719

9,238,571

Less:

Intangible assets

(129,514)

(131,965)

(134,719)

(137,475)

(140,243)

Tangible assets

(Non-GAAP)

10,023,828

9,694,046

9,884,272

9,795,244

9,098,328

Non-GAAP TCE Ratio

Tangible common

equity

897,039

872,140

847,733

821,939

800,481

Tangible assets

10,023,828

9,694,046

9,884,272

9,795,244

9,098,328

TCE ratio

8.95%

9.00%

8.58%

8.39%

8.80%

Average Equity to

Non-GAAP Average

Tangible Common

Equity

Average total stockholders'

equity

1,101,046

1,083,423

1,062,460

1,037,195

1,043,481

Less:

Average noncumulative

perpetual preferred

stock

(92,000)

Average noncumulative

perpetual preferred

stock issuance costs

10,130

Average total common

stockholders' equity

1,019,176

1,001,553

980,590

955,325

961,611

Less:

Average intangible

assets

(130,767)

(133,542)

(136,138)

(139,094)

(141,875)

Average tangible

common equity

888,409

868,011

844,452

816,231

819,736

OFG Bancorp (NYSE: OFG)

Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation

of Regulatory Capital Measures (Continued)

BASEL III

Standardized

2021

2020

(Dollars in thousands) (unaudited)

Regulatory Capital Metrics

Common equity Tier 1 capital

919,856

894,074

862,636

836,899

816,356

Tier 1 capital

1,036,726

1,010,944

979,506

953,769

933,226

Total risk-based

capital

(15)

1,121,832

1,096,764

1,065,744

1,040,987

1,020,748

Risk-weighted assets

6,782,921

6,837,846

6,875,108

6,957,906

6,983,626

(a)

Regulatory Capital Ratios

Common equity Tier 1 capital

ratio

(16)

13.56%

13.08%

12.55%

12.03%

11.69%

Tier 1 risk-based capital ratio

(17)

15.28%

14.78%

14.25%

13.71%

13.36%

Total risk-based

capital ratio

(18)

16.54%

16.04%

15.50%

14.96%

14.62%

Leverage ratio

(19)

10.48%

10.30%

10.00%

10.16%

10.14%

Common Equity Tier 1 Capital Ratio

Under Basel III Standardized

Approach

Total stockholders'

equity

(1)

1,108,423

1,085,975

1,064,322

1,041,284

1,022,594

Plus: CECL transition adjustment

(20)

33,637

34,646

33,494

32,269

31,882

Less:

Noncumulative perpetual

preferred stock

(92,000)

Noncumulative perpetual

preferred stock

issuance costs

10,130

Unrealized gains on available

-for-sale securities, net

of income tax

(7,146)

(12,091)

(9,453)

(8,885)

(7,576)

Unrealized losses on

cash flow hedges, net of income

tax

916

1,069

1,185

1,297

1,286

1,053,960

1,027,729

1,007,678

984,095

966,316

Less:

Disallowed goodwill

(86,069)

Disallowed other intangible

assets, net

(30,172)

(32,073)

(33,810)

(35,563)

(37,241)

Disallowed deferred

tax assets, net

(17,863)

(15,513)

(25,163)

(25,564)

(26,650)

(a)

Common equity Tier 1 capital

919,856

894,074

862,636

836,899

816,356

Plus:

Qualifying noncumulative perpetual

preferred stock

92,000

Qualifying noncumulative perpetual

preferred stock

issuance costs

(10,130)

Subordinated capital

notes

35,000

Tier 1 capital

1,036,726

1,010,944

979,506

953,769

933,226

Plus tier 2 capital:

Qualifying allowance for

loan and lease losses

85,106

85,820

86,238

87,218

87,522

Total risk-based

capital

1,121,832

1,096,764

1,065,744

1,040,987

1,020,748

(a) During 1Q 2020, the Company

early implemented Simplifications

to the Capital Rule, which

increased common

equity tier 1 (CET1) capital

threshold deductions

from 10 percent

to 25 percent and removed

the aggregate 15 percent

CET1 threshold deduction.

OFG Bancorp (NYSE: OFG)

Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial

Statements (Tables 1 - 8)

(1)

We used the terms "PCI"

and "SOP" 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 lo

ans.

(2)

Total banking

and financial service revenues.

(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 plus the preferred

dividends on the convertible

preferred stock,

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 "Table

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 "Table

9: Reconciliation

of GAAP to Non-GAAP Measures

and Calculation of Regulatory

Capital Measures" for information

on the calculation of

each of these ratios.

(13)

Production of new loans (excluding

renewals).

(14)

Most PCD loans are considered

to be performing due

to the application of the

accretion method, in which

these loans will accrete

interest income over

the remaining

life of the loans using estimated

cash flow analyses. Therefore,

they are not included as non-performing

loans. PCD loan pools that

are not accreting interest

income

are deemed to be non-performing

loans and presented

separately.

(15)

Total risk-based

capital equals the sum

of Tier 1 capital and Tier

2 capital.

(16)

Common equity Tier 1 capital

ratio is a regulatory

capital measure calculated

based on Common equity Tier

1 capital divided by risk

-weighted assets.

(17)

Tier 1 risk-based capital ratio

is a regulatory capital

measure calculated based

on Tier 1 capital divided

by risk-weighted

assets.

(18)

Total risk-based

capital ratio is a

regulatory capital measure

calculated based on Total

risk-based capital divided

by risk-weighted assets.

(19)

Leverage capital ratio

is a regulatory capital

measure calculated based on

Tier 1 capital divided

by average assets,

after certain

adjustments.

(20)

In March 2020, in light of recent

strains on the U.S.

economy as a result of the

coronavirus disease 2019

(COVID-19), the

Board of Governors

of the Federal Reserve

System, the Federal

Deposit Insurance Corporation,

and the Office of the Comptroller

of the Currency issued an interim

final rule that provided

the option to

temporarily delay the

effects of CECL

on regulatory capital

for two years,

followed by a three

-year transition period.

In addition, for the first

two years, a uniform

25%

“scaling factor” is introduced

to approximate

the portion of the post day

-one allowance attributable

to CECL relative to

the incurred loss methodology.

The 25% scaling

factor is calibrated

to approximate

an overall after

-tax impact of differences

in allowances under CECL vs

the incurred loss methodology.

(21)

CECL replaces 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.

(22)

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.