8-K
OFG BANCORP (OFG)
8-K
2021-10-20
For: 2021-10-20
View Original
Added on
April 04, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
October 20, 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
th
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 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 October 20, 2021, OFG Bancorp (the “Company”) announced the results for
the quarter ended September 30,
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
99
Press release by the Company dated October 20, 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: October 20, 2021
By:
/s/ Maritza Arizmendi
Maritza Arizmendi
Chief Financial Officer
Exhibit 99
OFGBancorp Reports 3Q21 Results
SAN JUAN, Puerto Rico, October 20, 2021 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the third quarter ended September 30, 2021.
CEOComment
José Rafael Fernández, Chief Executive Officer, said: “We had another strong overall quarterly performance as we continue to execute our strategic plan.
“Results reflect consistently growing recurring net income, our larger scale, our focus on increasing digital utilization and customer service differentiation, and Puerto Rico’s nascent economic and post-pandemic recovery.
“3Q21 new loan origination remained strong at $556 million. Compared to 2Q21, loans ex-PPP increased, cost of funds declined 17%, customer deposits increased $154 million, and net interest income continued to steadily grow.
“Provision for credit losses was a $5 million net benefit as asset quality continued to trend to levels closer to US peer banks. Total banking and financial service revenues rose 3%, and non-interest expenses fell 5%, reflecting in part reduced credit related expenses.
“During 3Q21, we also successfully executed on our buyback program, acquiring $40.2 million of shares as part of our previously announced $50.0 million authorization.
“Return on Average Assets and Average Equity was 1.59% and 17.72%, respectively.
“OFG is strategically well-positioned to continue to benefit from and play a major role supporting the economic development of the communities we serve. Thanks to all our team members who have been more than ready to help our customers achieve their goals.”
3Q21 Highlights
Summary: Earnings per share diluted of $0.81 compared to $0.78 in 2Q21 and $0.50 in 3Q20. Total core revenues of $134.7 million compared to $133.3 million in 2Q21 and $127.0 million in 3Q20. Net interest margin of 4.12% compared to 4.22% in 2Q21 and 4.30% in 3Q20.
Total Interest Income of $112.1 million compared to $113.5 million in 2Q21. 3Q21 reflected mortgage paydowns and PPP loan forgiveness mostly offset by increased income from auto and commercial loans, and investment securities. Average loan balances were $6.47 billion compared to $6.60 billion in 2Q21 and $6.79 billion in 3Q20.
New Loan Origination totaled $556.2 million compared to $673.6 million in 2Q21 and $457.8 million in 3Q20. 3Q21 reflected continued high levels of auto, commercial, consumer, and mortgage lending.
Total InterestExpense was $9.4 million compared to $11.2 million in 2Q21 and $15.4 million in 3Q20. 3Q21 reflected lower cost of core deposits (30 bps compared to 38 bps in 2Q21 and 56 bps in 3Q20) primarily due to generally lower rates and CD maturities. Average customer deposit balances were $9.10 billion compared to $8.96 billion in 2Q21 and $8.38 billion in 3Q20.
Provision for CreditLosses was a net benefit of $5.0 million, reflecting $4.3 million in net reserve releases. This compares to a net benefit of $8.3 million in 2Q21 and a net expense of $13.7 million in 3Q20. 3Q21 reflected continued improvement in asset quality trends. 3Q21 net charge-offs of $6 million included $6.5 million for a previously reserved amount on a commercial loan.
Banking and FinancialService Revenues were $32.0 million compared to $31.0 million in 2Q21 and $27.5 million in 3Q20. 3Q21 reflected continued higher levels of banking service, wealth management, and mortgage banking activity as pandemic-related restrictions have subsided.
Non-Interest Expenses were $78.9 million compared to $82.7 million in 2Q21 and $83.4 million in 3Q20. 3Q21 reflected a $2.2 million benefit in credit related expenses from gains on sales of real estate owned, previously announced cost savings, and increased compensation. 2Q21 included a $2.2 million technology project write down.
Pre-Provision NetRevenues were $56.3 million compared to $51.8 million in 2Q21 and $47.4 million in 3Q20.
Loans Held forInvestment totaled $6.41 billion at 9/30/21 compared to $6.50 billion at 6/30/21 and $6.76 billion at 9/30/20. Excluding PPP loans, loans held for investment of $6.27 billion increased $5.0 million compared to 2Q21.
Capital: Tangible book value per share was $18.59 compared to $18.13 in 2Q21 and $16.51 in 3Q20. CET1 ratio was 13.52% compared to 13.95% 2Q21 and 12.55% in 3Q20.
Conference Call,
Financial Supplement & Presentation
A conference call to discuss 3Q21 results, outlook and related matters will be held today at 10:00 AM ET. Phone (877) 876-9174 or (785) 424-1669. Conference ID: OFGQ321. The call can also be accessed live on www.ofgbancorp.com. Webcast replay will be available shortly thereafter.
OFG’s Financial Supplement, with full financial tables for the quarter ended September 30, 2021, and the 3Q21 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 in Puerto Rico; (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, 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 or circumstances after the date of such statements.
About OFG Bancorp
Now in its 57^th^ 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 **Error! Hyperlink reference not valid.**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<br> contained in this Financial Supplement is preliminary and based on data available<br> at the time of the earnings presentation, and investors should refer to our<br> September 30, 2021 Quarterly Report on Form 10-Q once it is filed with the<br> Securities and Exchange Commission. | |||||||||||||
| Table of Contents | |||||||||||||
| Pages | |||||||||||||
| OFG Bancorp (Consolidated Financial Information) | |||||||||||||
| Table 1: | Financial and<br> Statistical Summary - Consolidated | 2-3 | |||||||||||
| Table 2: | Consolidated Statements<br> of Operations | 4-5 | |||||||||||
| Table 3: | Consolidated Statements<br> of Financial Condition | 6 | |||||||||||
| Table 4: | Information on Loan<br> Portfolio and Production | 7-8 | |||||||||||
| Table 5: | Average Balances, Net<br> Interest Income and Net Interest Margin | 9-10 | |||||||||||
| Table 6: | Loan Information and<br> Performance Statistics | 11-13 | |||||||||||
| Table 7: | Allowance for Credit<br> Losses | 14 | |||||||||||
| Table 8: | Reconciliation of GAAP<br> to Non-GAAP Measures and Calculation of Regulatory Capital | 15-16 | |||||||||||
| Table 9: | Notes to Financial<br> Summary, Selected Metrics, Loans, and Consolidated | ||||||||||||
| Financial Statements<br> (Tables 1-8) | 17 | ||||||||||||
| OFG Bancorp (NYSE: OFG) | **** | **** | **** | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Table 1-1: Financial and<br> Statistical Summary - Consolidated | |||||||||||||
| 2021 | **** | 2021 | 2021 | 2020 | 2020 | ||||||||
| (Dollars<br> in thousands, except per share data) (unaudited) | Q3 | **** | Q2 | Q1 | Q4 | Q3 | |||||||
| Statement<br> of Operations | **** | **** | **** | ||||||||||
| Net<br> interest income | $ | 102,705 | **** | $ | 102,257 | **** | $ | 98,204 | $ | 98,738 | $ | 99,533 | |
| Non-interest<br> income, net (core) | **** | 32,012 | **** | 31,048 | **** | 29,452 | 34,047 | 27,486 | |||||
| Total<br> core revenues | **** | 134,717 | **** | 133,305 | **** | 127,656 | 132,785 | 127,019 | |||||
| Non-interest<br> expense | **** | 78,924 | (a) | 82,676 | **** | 77,666 | 89,039 | 83,444 | |||||
| Pre-provision<br> net revenues | **** | 56,298 | **** | 51,772 | **** | 50,945 | 44,123 | 47,415 | |||||
| Total<br> provision for credit losses | **** | (4,997) | **** | (8,305) | (d) | 6,324 | 14,176 | 13,669 | |||||
| Net<br> income before income taxes | **** | 61,295 | **** | 60,077 | **** | 44,621 | 29,947 | 33,746 | |||||
| Income<br> tax expense | **** | 19,624 | **** | 19,250 | **** | 14,248 | 6,646 | 6,308 | |||||
| Net<br> income available to common stockholders | **** | 41,671 | **** | 40,827 | **** | 29,118 | 21,673 | 25,810 | |||||
| Common<br> Share Statistics | **** | **** | **** | **** | |||||||||
| Earnings<br> (loss) per common share - basic | $ | 0.82 | **** | $ | 0.79 | **** | $ | 0.57 | $ | 0.42 | $ | 0.50 | |
| Earnings<br> (loss) per common share - diluted | $ | 0.81 | **** | $ | 0.78 | **** | $ | 0.56 | $ | 0.42 | $ | 0.50 | |
| Average<br> common shares outstanding | **** | 51,063 | **** | 51,636 | **** | 51,397 | 51,350 | 51,342 | |||||
| Average<br> common shares outstanding and equivalents | **** | 51,516 | **** | 52,048 | **** | 51,752 | 51,618 | 51,527 | |||||
| Cash<br> dividends per common share | $ | 0.12 | (b) | $ | 0.08 | **** | $ | 0.08 | $ | 0.07 | $ | 0.07 | |
| Book<br> value per common share (period end) | $ | 21.08 | **** | $ | 20.59 | **** | $ | 19.90 | $ | 19.54 | $ | 19.13 | |
| Tangible<br> book value per common share (period end) | $ | 18.59 | **** | $ | 18.13 | **** | $ | 17.39 | $ | 16.97 | $ | 16.51 | |
| Balance<br> Sheet (Average Balances) | **** | **** | **** | **** | |||||||||
| Loans | $ | 6,465,874 | $ | 6,598,569 | $ | 6,635,908 | $ | 6,708,284 | $ | 6,787,022 | |||
| Interest-earning<br> assets | **** | 9,879,687 | **** | 9,726,905 | **** | 9,358,377 | 9,270,739 | 9,218,717 | |||||
| Total<br> assets | **** | 10,492,502 | **** | 10,356,879 | **** | 10,004,047 | 9,921,254 | 9,918,410 | |||||
| Core<br> deposits | **** | 9,103,221 | **** | 8,963,336 | **** | 8,535,678 | 8,451,308 | 8,376,623 | |||||
| Total<br> deposits | **** | 9,114,587 | **** | 8,997,842 | **** | 8,581,633 | 8,515,646 | 8,517,039 | |||||
| Interest-bearing<br> deposits | **** | 6,474,977 | **** | 6,392,219 | **** | 6,223,419 | 6,199,929 | 6,240,639 | |||||
| Borrowings | **** | 98,943 | **** | 99,950 | **** | 100,951 | 101,930 | 102,916 | |||||
| Stockholders'<br> equity | **** | 1,068,618 | **** | 1,083,452 | **** | 1,101,046 | 1,083,423 | 1,062,460 | |||||
| Common<br> stockholders' equity | **** | 1,066,361 | **** | 1,046,835 | **** | 1,019,176 | 1,001,553 | 980,590 | |||||
| Performance<br> Metrics | **** | **** | **** | ||||||||||
| Net<br> interest margin | **** | 4.12% | **** | 4.22% | 4.26% | 4.24% | 4.30% | ||||||
| Return<br> on average assets | **** | 1.59% | **** | 1.58% | 1.21% | 0.94% | 1.11% | ||||||
| Return<br> on average tangible common stockholders' equity | **** | 17.72% | **** | 17.78% | 13.11% | 9.99% | 12.23% | ||||||
| Efficiency<br> ratio | **** | 58.59% | **** | 62.02% | 60.84% | 67.06% | 65.69% | ||||||
| Full-time<br> equivalent employees, period end | **** | 2,274 | **** | 2,231 | 2,238 | 2,275 | 2,332 | ||||||
| Credit<br> Quality Metrics | **** | **** | **** | ||||||||||
| Allowance<br> for credit losses | $ | 180,872 | **** | $ | 191,717 | (d) | $ | 201,973 | $ | 204,809 | (e) | $ | 235,313 |
| Allowance<br> as a % of loans held for investment | **** | 2.82% | **** | 2.95% | (d) | **** | 3.06% | 3.07% | (e) | 3.48% | |||
| Net<br> charge-offs | $ | 6,051 | (e) | $ | 2,118 | (d) | $ | 9,105 | $ | 44,814 | (e) | $ | 10,570 |
| Net<br> charge-off rate | **** | 0.37% | (e) | 0.13% | (d) | 0.55% | 2.67% | (e) | 0.62% | ||||
| Early<br> delinquency rate (30 - 89 days past due) | **** | 2.06% | **** | 1.86% | (d) | 2.15% | 2.68% | 2.50% | |||||
| Total<br> delinquency rate (30 days and over) | **** | 3.82% | **** | 3.90% | (d) | 4.65% | 5.74% | 5.67% | |||||
| Capital<br> Ratios (Non-GAAP) | **** | **** | **** | ||||||||||
| Leverage<br> ratio | **** | 9.33% | (b)(c) | 9.84% | (c) | 10.48% | 10.30% | 10.00% | |||||
| Common<br> equity Tier 1 capital ratio | **** | 13.52% | (b) | 13.95% | 13.56% | 13.08% | 12.55% | ||||||
| Tier 1<br> risk-based capital ratio | **** | 14.03% | (b)(c) | 14.70% | (c) | 15.28% | 14.78% | 14.25% | |||||
| Total<br> risk-based capital ratio | **** | 15.28% | (b)(c) | 15.95% | (c) | 16.54% | 16.04% | 15.50% | |||||
| Tangible<br> common equity ("TCE") ratio | **** | 8.86% | (b) | 9.06% | 8.95% | 9.00% | 8.58% | ||||||
| (a)<br> During 3Q 2021, foreclosed real estate and other repossessed assets (income)<br> expenses benefited from gain in real estate owned sales. | |||||||||||||
| (b)<br> During 3Q 2021, the Company repurchased 40.2 million common stock from of<br> our 50.0 million share buyback program and increased its common stock<br> dividend to 0.12 per share. | |||||||||||||
| (c)<br> During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q<br> 2021, the Company redeemed Series A and B Preferred Stock. | |||||||||||||
| (d)<br> During 2Q 2021 asset quality trends improved consistently. | |||||||||||||
| (e) During 3Q 2021, the Company charged-off 6.5 million for a<br> previously reserved amount on a commercial loan. During 4Q 2020, the Company<br> charged-off 31.2 million for two commercial PCD loans. | |||||||||||||
| 2 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | **** | **** | **** | |||
|---|---|---|---|---|---|---|
| Table 1-2: Financial and<br> Statistical Summary - Consolidated (Continued) | **** | |||||
| 2021 | **** | 2020 | ||||
| (Dollars<br> in thousands, except per share data) (unaudited) | YTD | **** | YTD | |||
| Statement<br> of Operations | **** | **** | **** | |||
| Net<br> interest income | $ | 303,166 | **** | $ | 309,694 | |
| Non-interest<br> income, net (core) | **** | 92,512 | **** | 76,825 | ||
| Total<br> core revenues | **** | 395,678 | **** | 386,519 | ||
| Non-interest<br> expense | **** | 239,266 | **** | 256,247 | ||
| Pre-provision<br> net revenues | **** | 159,015 | **** | 143,375 | ||
| Total<br> provision for credit losses | **** | (6,978) | (b) | 78,496 | (c) | |
| Net<br> income before income taxes | **** | 165,993 | **** | 64,879 | (c) | |
| Income<br> tax expense | **** | 53,122 | **** | 13,853 | ||
| Net<br> income available to common stockholders | **** | 111,616 | **** | 46,142 | (c) | |
| Common<br> Share Statistics | **** | **** | **** | |||
| Earnings<br> (loss) per common share - basic | $ | 2.18 | **** | $ | 0.90 | (c) |
| Earnings<br> (loss) per common share - diluted | $ | 2.15 | **** | $ | 0.89 | (c) |
| Average<br> common shares outstanding | **** | 51,364 | **** | 51,361 | ||
| Average<br> common shares outstanding and equivalents | **** | 51,748 | **** | 51,563 | ||
| Cash<br> dividends per common share | $ | 0.28 | (a) | $ | 0.21 | |
| Book<br> value per common share (period end) | $ | 21.08 | **** | $ | 19.13 | |
| Tangible<br> book value per common share (period end) | $ | 18.59 | **** | $ | 16.51 | |
| Balance<br> Sheet (Average Balances) | **** | **** | **** | |||
| Loans | $ | 6,566,100 | **** | $ | 6,771,904 | |
| Interest-earning<br> assets | **** | 9,656,838 | **** | 8,874,886 | ||
| Total assets | **** | 10,286,265 | **** | 9,586,931 | ||
| Core<br> deposits | **** | 8,869,399 | **** | 7,916,869 | ||
| Total<br> deposits | **** | 8,899,881 | **** | 8,120,648 | ||
| Interest-bearing<br> deposits | **** | 6,364,459 | **** | 6,133,437 | ||
| Borrowings | **** | 99,941 | **** | 177,189 | ||
| Stockholders'<br> equity | **** | 1,084,253 | **** | 1,047,766 | ||
| Common<br> stockholders' equity | **** | 1,044,297 | **** | 965,896 | ||
| Performance<br> Metrics | **** | **** | **** | |||
| Net<br> interest margin | **** | 4.20% | **** | 4.65% | ||
| Return<br> on average assets | **** | 1.46% | **** | 0.71% | (c) | |
| Return<br> on average tangible common stockholders' equity | **** | 16.25% | **** | 7.44% | (c) | |
| Efficiency<br> ratio | **** | 60.47% | **** | 66.30% | ||
| Full-time<br> equivalent employees, period end | **** | 2,274 | **** | 2,332 | ||
| Credit<br> Quality Metrics | **** | **** | **** | |||
| Allowance<br> for credit losses | $ | 180,872 | (b) | $ | 235,313 | |
| Allowance<br> as a % of loans held for investment | **** | 2.82% | (b) | 3.48% | ||
| Net<br> charge-offs | $ | 17,274 | (b) | $ | 50,354 | |
| Net<br> charge-off rate | **** | 0.35% | (b) | 0.99% | ||
| Early<br> delinquency rate (30 - 89 days past due) | **** | 2.06% | (b) | 2.50% | ||
| Total<br> delinquency rate (30 days and over) | **** | 3.82% | (b) | 5.67% | ||
| (a)<br> During 3Q 2021, the Company increased its common stock quarterly dividend to<br> 0.12 per share, from 0.08 in 2Q 2021 and 1Q 2021, and 0.07 in 2020. | ||||||
| (b)<br> During 2Q 2021 asset quality trends improved consistently. | ||||||
| (c)<br> During 1Q 2020 and 2Q 2020, the Company increased its provision for credit<br> losses by 34.1 million and 5 million, respectively, as a result of the<br> Covid-19 pandemic. Core revenues were also negatively impacted by the<br> pandemic during these quarters as a result of lockdown measures by the local<br> Government. | ||||||
| 3 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | **** | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Table 2-1: Consolidated<br> Statements of Operations | ||||||||||||||
| Quarter Ended | ||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||
| (Dollars<br> in thousands, except per share data) (unaudited) | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||
| Interest<br> income: | ||||||||||||||
| Loans | ||||||||||||||
| Non-PCD loans | $ | 85,032 | $ | 85,181 | $ | 82,936 | $ | 81,171 | $ | 83,029 | ||||
| PCD<br> loans | **** | 22,905 | **** | 24,880 | 25,275 | 29,250 | 29,018 | |||||||
| Total interest income from loans | **** | 107,937 | 110,061 | 108,211 | 110,421 | 112,047 | ||||||||
| Investment<br> securities | 4,202 | 3,402 | 2,771 | 2,600 | 2,890 | |||||||||
| Total interest income | 112,139 | 113,463 | 110,982 | 113,021 | 114,937 | |||||||||
| Interest<br> expense: | **** | |||||||||||||
| Deposits | **** | |||||||||||||
| Core<br> deposits | 8,681 | **** | 10,436 | **** | 11,861 | 13,225 | 13,808 | |||||||
| Brokered deposits | 10 | 24 | 163 | 288 | 812 | |||||||||
| Total deposits | 8,691 | 10,460 | 12,024 | 13,513 | 14,620 | |||||||||
| Borrowings | 743 | 746 | 754 | 770 | 784 | |||||||||
| Total interest expense | 9,434 | 11,206 | 12,778 | 14,283 | 15,404 | |||||||||
| Net<br> interest income | **** | 102,705 | 102,257 | 98,204 | 98,738 | 99,533 | ||||||||
| (Recapture)<br> provision for credit losses, excluding PCD loans | (2,351) | (7,726) | 2,998 | 15,464 | 13,845 | |||||||||
| (Recapture)<br> provision for credit losses on PCD loans | (2,646) | (579) | 3,326 | (1,288) | (176) | |||||||||
| Total (recapture) provision for credit losses | **** | (4,997) | **** | (8,305) | (b) | 6,324 | 14,176 | 13,669 | ||||||
| Net interest income after provision for credit losses | 107,702 | 110,562 | 91,880 | 84,562 | 85,864 | |||||||||
| Non-interest<br> income: | **** | |||||||||||||
| Banking<br> service revenues | 18,198 | 18,248 | 16,493 | 16,901 | 16,297 | |||||||||
| Wealth<br> management revenues | 7,619 | **** | 8,263 | 7,388 | 10,865 | (d) | 7,272 | |||||||
| Mortgage<br> banking activities | 6,195 | **** | 4,537 | 5,571 | 6,281 | 3,917 | ||||||||
| Total banking and financial service revenues | **** | 32,012 | 31,048 | 29,452 | 34,047 | 27,486 | ||||||||
| Bargain<br> purchase from Scotiabank PR & USVI acquisition | - | **** | - | - | - | 3,465 | (e) | |||||||
| Other<br> income, net | 505 | **** | 1,143 | 955 | 377 | 375 | ||||||||
| Total non-interest income, net | 32,517 | 32,191 | 30,407 | 34,424 | 31,326 | |||||||||
| Non-interest<br> expense: | **** | |||||||||||||
| Compensation<br> and employee benefits | 33,745 | **** | 32,919 | 32,618 | 30,921 | 31,955 | ||||||||
| Occupancy,<br> equipment and infrastructure costs | 12,078 | **** | 12,528 | 13,128 | 12,064 | 11,943 | ||||||||
| General<br> and administrative expenses | 34,041 | **** | 35,370 | (c) | 30,201 | 33,454 | 33,452 | |||||||
| Foreclosed<br> real estate and other repossessed assets (income) expenses | (2,163) | (a) | 328 | (50) | 1,004 | 1,323 | ||||||||
| Merger<br> and restructuring charges | - | **** | - | **** | - | 10,092 | (f) | 2,681 | (f) | |||||
| COVID 19<br> expenses | 1,223 | **** | 1,531 | **** | 1,769 | 1,504 | 2,090 | |||||||
| Total non-interest expense | **** | 78,924 | 82,676 | 77,666 | 89,039 | 83,444 | ||||||||
| Income<br> before income taxes | **** | 61,295 | 60,077 | 44,621 | 29,947 | 33,746 | ||||||||
| Income<br> tax expense | 19,624 | 19,250 | 14,248 | 6,646 | 6,308 | |||||||||
| Net<br> income | **** | 41,671 | 40,827 | 30,373 | 23,301 | 27,438 | ||||||||
| Less: <br> dividends on preferred stock | **** | - | **** | - | **** | (1,255) | (1,628) | (1,628) | ||||||
| Net<br> income available to common shareholders | $ | 41,671 | $ | 40,827 | $ | 29,118 | $ | 21,673 | $ | 25,810 | ||||
| (a)<br> During 3Q 2021, foreclosed real estate and other repossessed assets (income)<br> expenses benefited from gain in real estate owned sales. | ||||||||||||||
| (b)<br> During 2Q 2021 asset quality trends improved consistently. | ||||||||||||||
| (c)<br> During 2Q 2021, includes a technology project write-down amounting to 2.2<br> million. | ||||||||||||||
| (d)<br> During 4Q 2020, the Company recognized annual insurance contingent commissions<br> amounting to 4.0 million. | ||||||||||||||
| (e)<br> During 3Q 2020, the Company increased the Bargain purchase from Scotiabank PR<br> & USVI acquisition by 3.5 million as part of remeasurement period<br> adjustments. | ||||||||||||||
| (f) On<br> December 31, 2019, the Company acquired Scotiabank's Puerto Rico and USVI<br> operations, incurring in merger and restructuring charges of 2.7 million<br> during 3Q 2020 and 10.1 million during 4Q 2020. | ||||||||||||||
| 4 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | **** | |||||
|---|---|---|---|---|---|---|
| Table 2-2: Consolidated<br> Statements of Operations (Continued) | **** | |||||
| Nine-Months Ended | ||||||
| September 30, | **** | September 30, | ||||
| (Dollars<br> in thousands, except per share data) (unaudited) | 2021 | **** | 2020 | |||
| Interest<br> income: | **** | |||||
| Loans | **** | |||||
| Non-PCD loans | $ | 253,149 | **** | $ | 254,343 | |
| PCD<br> loans | **** | 73,060 | **** | 92,671 | (d) | |
| Total interest income from loans | **** | 326,209 | **** | **** | 347,014 | |
| Investment<br> securities | 10,375 | **** | 13,312 | |||
| Total interest income | 336,584 | **** | **** | 360,326 | ||
| Interest<br> expense: | **** | **** | ||||
| Deposits | **** | **** | ||||
| Core<br> deposits | 30,978 | (a) | 42,841 | |||
| Brokered deposits | 197 | **** | 3,844 | |||
| Total deposits | 31,175 | **** | 46,685 | |||
| Borrowings | 2,243 | **** | 3,947 | |||
| Total interest expense | 33,418 | **** | **** | 50,632 | ||
| Net<br> interest income | **** | 303,166 | **** | **** | 309,694 | |
| (Recapture)<br> provision for credit losses, excluding PCD loans | (7,079) | **** | 70,023 | |||
| Provision<br> for credit losses on PCD loans | 101 | **** | 8,473 | |||
| Total (recapture) provision for credit losses | **** | (6,978) | (b) | **** | 78,496 | (e) |
| Net interest income after provision for loan and lease losses | 310,144 | **** | **** | 231,198 | ||
| Non-interest<br> income: | **** | **** | **** | |||
| Banking<br> service revenues | 52,939 | **** | 45,678 | |||
| Wealth<br> management revenues | 23,270 | **** | **** | 20,924 | ||
| Mortgage<br> banking activities | 16,303 | **** | **** | 10,223 | ||
| Total banking and financial service revenues | **** | 92,512 | **** | **** | 76,825 | (e) |
| Bargain<br> purchase from Scotiabank PR & USVI acquisition | - | **** | **** | 7,336 | (f) | |
| Other<br> income, net | 2,603 | **** | **** | 5,767 | ||
| Total non-interest income, net | 95,115 | **** | **** | 89,928 | ||
| Non-interest<br> expense: | **** | **** | ||||
| Compensation<br> and employee benefits | 99,282 | **** | **** | 102,005 | ||
| Occupancy,<br> equipment and infrastructure costs | 37,734 | **** | **** | 35,219 | ||
| General<br> and administrative expenses | 99,612 | **** | **** | 101,978 | ||
| Foreclosed<br> real estate and other repossessed assets (income) expenses | (1,885) | **** | **** | 6,763 | ||
| Merger<br> and restructuring charges | - | **** | **** | 5,991 | (g) | |
| COVID 19<br> expenses | 4,523 | **** | **** | 4,291 | ||
| Total non-interest expense | 239,266 | **** | **** | 256,247 | ||
| Income<br> before income taxes | 165,993 | **** | **** | 64,879 | ||
| Income<br> tax expense | 53,122 | **** | **** | 13,853 | ||
| Net<br> income | 112,871 | **** | **** | 51,026 | ||
| Less: <br> dividends on preferred stock | (1,255) | (c) | **** | (4,884) | ||
| Net<br> income available to common shareholders | $ | 111,616 | **** | $ | 46,142 | |
| (a)<br> During 2021, the Company had lower cost of core deposits, mainly from lower<br> rates and time deposit maturities. | ||||||
| (b)<br> During 2Q 2021 asset quality trends improved consistently. | ||||||
| (c)<br> During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q<br> 2021, the Company redeemed Series A and B Preferred Stock. | ||||||
| (d)<br> During 2Q 2020 and 3Q 2020, the Company recognized interest recoveries on SOP<br> loans acquired in the Scotiabank PR & USVI acquisition collected<br> subsequently to the acquisition date amounting to 6.0 million and 469<br> thousand, respectively. | ||||||
| (e)<br> During 1Q 2020 and 2Q2020, the Company increased its provision for credit<br> losses by 34.1 million and 5 million, respectively, as a result of the<br> Covid-19 pandemic. Core revenues were also negatively impacted by the<br> pandemic during these quarters as a result of lockdown measures by the local<br> Government. | ||||||
| (f)<br> During 2Q 2020 and 3Q 2020, the Company increased the Bargain purchase from<br> Scotiabank PR & USVI acquisition by 3.5 million and 3.5 million,<br> respectively, as part of remeasurement period adjustments. | ||||||
| (g) On<br> December 31, 2019, the Company acquired Scotiabank's Puerto Rico and USVI<br> operations, incurring in merger and restructuring charges of 3.0 million<br> during 2Q 2020 and 2.7 million during 3Q 2020. | ||||||
| 5 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | **** | **** | **** | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Table 3: Consolidated<br> Statements of Financial Condition | **** | **** | **** | ||||||||
| **** | June 30, | March 31, | December 31, | September 30, | |||||||
| (Dollars<br> in thousands) (unaudited) | **** | 2021 | 2021 | 2020 | 2020 | ||||||
| Cash and<br> cash equivalents | 2,755,691 | **** | $ | 2,767,693 | $ | 2,409,416 | $ | 2,155,577 | $ | 2,283,050 | |
| Investments: | **** | **** | |||||||||
| Trading<br> securities | 22 | **** | 29 | 23 | 22 | 22 | |||||
| Investment<br> securities available-for-sale, at fair value, | **** | **** | |||||||||
| with<br> amortized cost of 497,450 (June 30, 2021 - 491,321; | **** | **** | |||||||||
| March<br> 31, 2021 - 462,115; December 31, 2020 - 432,175; | **** | **** | |||||||||
| September 30, 2020 - 412,899; no allowance for credit | **** | **** | |||||||||
| losses<br> for any period) | **** | **** | |||||||||
| Mortgage-backed securities | 494,727 | **** | 487,014 | 457,673 | 432,935 | 329,719 | |||||
| US<br> treasury notes | 10,875 | **** | 10,910 | 10,946 | 10,983 | 91,531 | |||||
| Other investment securities | 3,505 | **** | 3,695 | 2,390 | 2,520 | 2,565 | |||||
| Total investment securities available-for-sale | 509,107 | **** | 501,619 | 471,009 | 446,438 | 423,815 | |||||
| Mortgage-backed<br> securities held-to-maturity, at amortized cost, | **** | **** | |||||||||
| no<br> allowance for credit losses for any period | 375,214 | **** | 125,138 | 126,767 | - | - | |||||
| Federal<br> Home Loan Bank (FHLB) stock, at cost | 7,496 | **** | 7,541 | 8,233 | 8,278 | 8,322 | |||||
| Other<br> investments | 10,434 | **** | 9,168 | 5,557 | 3,962 | 2,205 | |||||
| Total investments | 902,273 | **** | 643,495 | 611,589 | 458,700 | 434,364 | |||||
| Loans,<br> net | 6,282,485 | **** | 6,354,040 | 6,432,079 | 6,501,259 | 6,579,140 | |||||
| Other<br> assets: | **** | **** | |||||||||
| Prepaid<br> expenses | 65,003 | **** | 61,678 | 58,348 | 61,416 | 54,583 | |||||
| Deferred<br> tax asset, net | 128,663 | **** | 144,799 | 154,540 | 162,478 | 178,957 | |||||
| Foreclosed<br> real estate and repossessed properties | 15,433 | **** | 16,818 | 18,366 | 13,412 | 21,374 | |||||
| Premises<br> and equipment, net | 86,981 | **** | 85,993 | 83,756 | 83,786 | 83,270 | |||||
| Goodwill | 86,069 | **** | 86,069 | 86,069 | 86,069 | 86,069 | |||||
| Right of<br> use assets | 30,625 | **** | 32,621 | 32,714 | 31,383 | 35,900 | |||||
| Core<br> deposit, customer relationship intangible and other intangibles | 38,545 | **** | 40,995 | 43,445 | 45,896 | 48,650 | |||||
| Servicing<br> asset | 48,227 | **** | 47,712 | 47,911 | 47,295 | 47,242 | |||||
| Accounts<br> receivable and other assets | 166,870 | **** | 179,900 | 175,109 | 178,740 | 166,392 | |||||
| Total<br> assets | 10,606,865 | **** | $ | 10,461,813 | $ | 10,153,342 | $ | 9,826,011 | $ | 10,018,991 | |
| Deposits: | **** | **** | |||||||||
| Demand<br> deposits | 5,531,124 | **** | $ | 5,337,691 | $ | 4,889,759 | $ | 4,619,395 | $ | 4,689,512 | |
| Savings<br> accounts | 2,378,211 | **** | 2,277,296 | (c) | 2,138,125 | 1,914,239 | 1,913,338 | ||||
| Time<br> deposits | 1,323,688 | **** | 1,464,134 | 1,693,924 | 1,832,891 | 1,933,517 | |||||
| Brokered<br> deposits | 11,366 | **** | 11,371 | (c) | 34,954 | 49,115 | 96,090 | ||||
| Total deposits | 9,244,389 | **** | 9,090,492 | 8,756,762 | 8,415,640 | 8,632,457 | |||||
| Borrowings: | **** | **** | |||||||||
| Advances<br> from FHLB and other borrowings | 62,934 | **** | 63,867 | 65,013 | 66,268 | 66,781 | |||||
| Subordinated<br> capital notes | 36,083 | **** | 36,083 | 36,083 | 36,083 | 36,083 | |||||
| Total borrowings | 99,017 | **** | 99,950 | 101,096 | 102,351 | 102,864 | |||||
| Other<br> liabilities: | **** | **** | |||||||||
| Securities<br> purchased but not yet received | 31,565 | **** | - | - | - | - | |||||
| Derivative<br> liabilities | 1,136 | **** | 1,293 | 1,465 | 1,712 | 1,895 | |||||
| Acceptances<br> outstanding | 24,371 | **** | 27,703 | 24,389 | 33,349 | 18,291 | |||||
| Lease<br> liability | 32,167 | **** | 34,052 | 34,017 | 32,566 | 37,029 | |||||
| Accrued<br> expenses and other liabilities | 120,555 | **** | 128,326 | 127,190 | 154,418 | 162,133 | |||||
| Total liabilities | 9,553,200 | **** | 9,381,816 | 9,044,919 | 8,740,036 | 8,954,669 | |||||
| Stockholders'<br> equity: | **** | **** | |||||||||
| Preferred<br> stock | - | (a) | 24,000 | (a) | 92,000 | 92,000 | 92,000 | ||||
| Common<br> stock | 59,885 | **** | 59,885 | 59,885 | 59,885 | 59,885 | |||||
| Additional<br> paid-in capital | 635,808 | **** | 626,995 | 622,935 | 622,652 | 621,978 | |||||
| Legal<br> surplus | 114,485 | **** | 110,235 | 106,165 | 103,269 | 101,233 | |||||
| Retained<br> earnings | 375,729 | **** | 352,001 | 322,202 | 300,096 | 284,053 | |||||
| Treasury<br> stock, at cost | (140,862) | (b) | (100,719) | (100,994) | (102,949) | (103,095) | |||||
| Accumulated<br> other comprehensive income, net | 8,620 | **** | 7,600 | 6,230 | 11,022 | 8,268 | |||||
| Total stockholders' equity | 1,053,665 | **** | 1,079,997 | 1,108,423 | 1,085,975 | 1,064,322 | |||||
| Total liabilities and stockholders' equity | 10,606,865 | $ | 10,461,813 | $ | 10,153,342 | $ | 9,826,011 | $ | 10,018,991 | ||
| (a)<br> During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q<br> 2021, the Company redeemed Series A and B Preferred Stock. | |||||||||||
| (b) During 3Q 2021, the Company repurchased 40.2 million common<br> stock from our 50.0 million share buyback program. | |||||||||||
| (c)<br> During 2Q 2021, money market deposit accounts amounting to 23.8 million were<br> reclassified from brokered deposits to savings account, as a result of an<br> FDIC exemption from the brokered deposit definition. | |||||||||||
| 6 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Table 4-1: Information<br> on Loan Portfolio and Production | |||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||
| (Dollars<br> in thousands) (unaudited) | 2021 | 2021 | 2021 | 2020 | 2020 | ||||||
| Non-PCD: | **** | **** | |||||||||
| Mortgage | $ | 751,389 | $ | 760,168 | $ | 791,062 | $ | 823,443 | $ | 847,671 | |
| Commercial | 1,954,804 | 1,903,866 | 1,827,102 | 1,836,137 | 1,785,022 | ||||||
| Commercial Paycheck Protection Program (PPP Loans) | 136,698 | 228,677 | 311,823 | 282,713 | 289,218 | ||||||
| Consumer | 373,672 | 381,475 | 395,073 | 413,552 | 434,546 | ||||||
| Auto | 1,667,113 | 1,618,788 | 1,565,473 | 1,534,269 | 1,511,829 | ||||||
| 4,883,676 | 4,892,974 | 4,890,533 | 4,890,114 | 4,868,286 | |||||||
| Less: Allowance for credit losses | (138,874) | (148,314) | (156,978) | (161,015) | (156,409) | ||||||
| Total non- PCD loans held for investment, net | 4,744,802 | 4,744,660 | 4,733,555 | 4,729,099 | 4,711,877 | ||||||
| PCD: | **** | **** | |||||||||
| Mortgage | 1,270,854 | 1,324,274 | 1,406,044 | 1,459,932 | 1,504,914 | ||||||
| Commercial | 239,554 | 260,627 | 272,793 | 283,160 | (a) | 352,555 | |||||
| Consumer | 959 | 981 | 1,120 | 1,394 | 2,336 | ||||||
| Auto | 15,820 | 19,236 | 23,036 | 27,533 | 31,836 | ||||||
| 1,527,187 | 1,605,118 | 1,702,993 | 1,772,019 | 1,891,641 | |||||||
| Less: Allowance for credit losses | (41,998) | (43,403) | (44,995) | (43,794) | (a) | (78,904) | |||||
| Total PCD loans held for investment, net | **** | 1,485,189 | **** | 1,561,715 | 1,657,998 | 1,728,225 | 1,812,737 | ||||
| Total<br> loans held for investment | **** | 6,229,991 | **** | 6,306,375 | 6,391,553 | 6,457,324 | 6,524,614 | ||||
| Mortgage<br> loans held for sale | 35,031 | 37,885 | 38,220 | 41,654 | 54,526 | ||||||
| Other<br> loans held for sale | 17,463 | 9,780 | 2,306 | 2,281 | - | ||||||
| Total<br> loans, net | $ | 6,282,485 | $ | 6,354,040 | $ | 6,432,079 | $ | 6,501,259 | $ | 6,579,140 | |
| Loan<br> Portfolio Summary: | **** | **** | |||||||||
| Loans<br> held for investment: | **** | **** | |||||||||
| Mortgage | $ | 2,022,243 | $ | 2,084,442 | $ | 2,197,106 | $ | 2,283,375 | $ | 2,352,585 | |
| Commercial | **** | 2,194,358 | 2,164,493 | 2,099,895 | 2,119,297 | (a) | 2,137,577 | ||||
| Commercial Paycheck Protection Program (PPP Loans) | **** | 136,698 | 228,677 | 311,823 | 282,713 | 289,218 | |||||
| Consumer | **** | 374,631 | 382,456 | 396,193 | 414,946 | 436,882 | |||||
| Auto | **** | 1,682,933 | 1,638,024 | 1,588,509 | 1,561,802 | 1,543,665 | |||||
| **** | 6,410,863 | 6,498,092 | 6,593,526 | 6,662,133 | 6,759,927 | ||||||
| Less: Allowance for credit losses | **** | (180,872) | (191,717) | (201,973) | (204,809) | (a) | (235,313) | ||||
| Total loans held for investment, net | **** | 6,229,991 | 6,306,375 | 6,391,553 | 6,457,324 | 6,524,614 | |||||
| Mortgage loans held for sale | **** | 35,031 | 37,885 | 38,220 | 41,654 | 54,526 | |||||
| Other<br> loans held for sale | **** | 17,463 | 9,780 | 2,306 | 2,281 | - | |||||
| Total<br> loans, net | $ | 6,282,485 | $ | 6,354,040 | $ | 6,432,079 | $ | 6,501,259 | $ | 6,579,140 | |
| (a)<br> During 4Q 2020, the Company charged-off 31.2 million for two commercial PCD<br> loans. | |||||||||||
| 7 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | |||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Table 4-2: Information on Loan Portfolio and Production | |||||||||||||||||||||||||||||||
| Quarter Ended | Nine-Months Ended | ||||||||||||||||||||||||||||||
| **** | **** | September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | **** | 2021 | 2021 | 2021 | 2020 | 2020 | **** | 2021 | 2020 | ||||||||||||||||||||||
| Loan production | (13) | **** | |||||||||||||||||||||||||||||
| Mortgage | **** | $ | 85,535 | $ | 103,837 | $ | 95,851 | $ | 97,656 | $ | 93,650 | $ | 285,223 | $ | 148,382 | ||||||||||||||||
| Commercial | **** | 154,146 | 218,425 | 83,820 | 174,894 | 83,488 | 456,391 | 236,159 | |||||||||||||||||||||||
| Commercial PPP Loans | **** | 16 | 32,712 | 126,266 | - | 10,318 | 158,994 | 296,738 | |||||||||||||||||||||||
| US<br> Loan Programs | **** | 100,066 | 109,522 | 44,841 | 49,221 | 90,878 | 254,429 | 173,714 | |||||||||||||||||||||||
| Consumer | **** | 50,630 | 38,038 | 27,492 | 25,984 | 23,540 | 116,160 | 76,970 | |||||||||||||||||||||||
| Auto | **** | 165,854 | 171,104 | 149,357 | 137,545 | 155,880 | 486,315 | 312,598 | |||||||||||||||||||||||
| Total | **** | $ | 556,247 | $ | 673,638 | $ | 527,627 | $ | 485,300 | $ | 457,754 | $ | 1,757,512 | $ | 1,244,561 | ||||||||||||||||
| 8 | |||||||||||||||||||||||||||||||
| OFG Bancorp (NYSE: OFG) | |||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Table 5-1: Average Balances, Net Interest Income and Net Interest Margin | |||||||||||||||||||||||||||||||
| 2021 Q3 | 2021 Q2 | 2021 Q1 | 2020 Q4 | 2020 Q3 | |||||||||||||||||||||||||||
| Interest | Interest | Interest | Interest | 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<br> equivalents | $ | 2,699,144 | $ | 986 | 0.14 | % | $ | 2,519,406 | $ | 706 | 0.11 | % | $ | 2,204,431 | $ | 595 | 0.11 | % | $ | 2,091,458 | $ | 613 | 0.12 | % | $ | 1,929,024 | $ | 613 | 0.13 | % | |
| Investment securities | 714,669 | 3,216 | 1.80 | % | 608,930 | 2,696 | 1.77 | % | 518,038 | 2,176 | 1.68 | % | 470,997 | 1,986 | 1.69 | % | 502,671 | 2,278 | 1.81 | % | |||||||||||
| Loans held for investment | (1) | **** | **** | **** | |||||||||||||||||||||||||||
| Non-PCD loans | 4,899,312 | 85,032 | 6.89 | % | 4,937,602 | 85,181 | 6.92 | % | 4,893,874 | 82,936 | 6.87 | % | 4,863,902 | 81,171 | 6.64 | % | 4,870,753 | 83,029 | 6.78 | % | |||||||||||
| PCD loans | 1,566,562 | 22,905 | 5.85 | % | 1,660,967 | 24,880 | 5.99 | % | 1,742,034 | 25,275 | 5.80 | % | 1,844,382 | 29,250 | 6.34 | % | 1,916,269 | 29,018 | 6.06 | % | |||||||||||
| Total loans | 6,465,874 | 107,937 | 6.62 | % | 6,598,569 | 110,061 | 6.69 | % | 6,635,908 | 108,211 | 6.61 | % | 6,708,284 | 110,421 | 6.55 | % | 6,787,022 | 112,047 | 6.57 | % | |||||||||||
| Total<br> interest-earning assets | $ | 9,879,687 | $ | 112,139 | 4.50 | % | $ | 9,726,905 | $ | 113,463 | 4.68 | % | $ | 9,358,377 | $ | 110,982 | 4.81 | % | $ | 9,270,739 | $ | 113,020 | 4.85 | % | $ | 9,218,717 | $ | 114,938 | 4.96 | % | |
| Interest bearing liabilities: | **** | **** | **** | ||||||||||||||||||||||||||||
| Deposits | **** | **** | **** | ||||||||||||||||||||||||||||
| NOW accounts | $ | 2,754,985 | $ | 2,288 | 0.33 | % | $ | 2,542,018 | $ | 2,259 | 0.36 | % | $ | 2,397,673 | $ | 2,393 | 0.40 | % | $ | 2,344,903 | $ | 2,258 | 0.38 | % | $ | 2,227,687 | $ | 2,247 | 0.40 | % | |
| Savings accounts | **** | 2,330,121 | 1,639 | 0.28 | % | 2,236,281 | 2,097 | 0.38 | % | 2,003,963 | 2,124 | 0.43 | % | 1,897,618 | 1,954 | 0.41 | % | 1,927,680 | 2,010 | 0.41 | % | ||||||||||
| Time deposits | **** | 1,378,505 | 2,916 | 0.84 | % | 1,579,414 | 4,243 | 1.07 | % | 1,775,828 | 5,507 | 1.24 | % | 1,893,070 | 6,975 | 1.47 | % | 1,944,856 | 7,512 | 1.54 | % | ||||||||||
| Brokered deposits | 11,366 | 10 | 0.34 | % | 34,506 | 24 | 0.28 | % | 45,955 | 163 | 1.44 | % | 64,338 | 289 | 1.78 | % | 140,416 | 812 | 2.30 | % | |||||||||||
| 6,474,977 | 6,853 | 0.42 | % | 6,392,219 | 8,623 | 0.54 | % | 6,223,419 | 10,187 | 0.66 | % | 6,199,929 | 11,476 | 0.74 | % | 6,240,639 | 12,581 | 0.80 | % | ||||||||||||
| Non-interest bearing deposit accounts | 2,639,610 | - | - | **** | 2,605,623 | - | - | 2,358,214 | - | - | 2,315,717 | - | - | 2,276,400 | - | - | |||||||||||||||
| Fair value premium amortization and core deposit intangible amortization | - | 1,838 | - | **** | - | 1,837 | - | - | 1,837 | - | - | 2,037 | - | - | 2,039 | - | |||||||||||||||
| Total deposits | 9,114,587 | 8,691 | 0.38 | % | 8,997,842 | 10,460 | 0.46 | % | 8,581,633 | 12,024 | 0.56 | % | 8,515,646 | 13,513 | 0.63 | % | 8,517,039 | 14,620 | 0.68 | % | |||||||||||
| Borrowings | **** | **** | **** | ||||||||||||||||||||||||||||
| Advances from FHLB and other borrowings | 62,860 | 450 | 2.84 | % | 63,867 | 452 | 2.84 | % | 64,868 | 459 | 2.87 | % | 65,847 | 468 | 2.83 | % | 66,833 | 476 | 2.83 | % | |||||||||||
| Subordinated capital notes | 36,083 | 293 | 3.21 | % | 36,083 | 294 | 3.27 | % | 36,083 | 295 | 3.31 | % | 36,083 | 301 | 3.34 | % | 36,083 | 308 | 3.39 | % | |||||||||||
| Total borrowings | 98,943 | 743 | 2.98 | % | 99,950 | 746 | 2.99 | % | 100,951 | 754 | 3.03 | % | 101,930 | 769 | 3.01 | % | 102,916 | 784 | 3.03 | % | |||||||||||
| Total<br> interest-bearing liabilities | $ | 9,213,530 | $ | 9,434 | 0.41 | % | $ | 9,097,792 | $ | 11,206 | 0.49 | % | $ | 8,682,584 | $ | 12,778 | 0.60 | % | $ | 8,617,576 | $ | 14,282 | 0.66 | % | $ | 8,619,955 | $ | 15,404 | 0.71 | % | |
| Interest<br> rate spread | **** | $ | 102,705 | 4.09 | % | $ | 102,257 | 4.19 | % | $ | 98,204 | 4.21 | % | $ | 98,738 | 4.19 | % | $ | 99,534 | 4.25 | % | ||||||||||
| Net<br> interest margin | 4.12 | % | 4.22 | % | 4.26 | % | 4.24 | % | 4.30 | % | |||||||||||||||||||||
| Core deposits: (Non-GAAP) | **** | **** | |||||||||||||||||||||||||||||
| Deposits | **** | **** | |||||||||||||||||||||||||||||
| NOW accounts | $ | 2,754,985 | $ | 2,288 | 0.33 | % | $ | 2,542,018 | $ | 2,259 | 0.36 | % | $ | 2,397,673 | $ | 2,393 | 0.40 | % | $ | 2,344,903 | $ | 2,258 | 0.38 | % | $ | 2,227,687 | $ | 2,247 | 0.40 | % | |
| Savings accounts | 2,330,121 | **** | 1,639 | 0.28 | % | 2,236,281 | 2,097 | 0.38 | % | 2,003,963 | 2,124 | 0.43 | % | 1,897,618 | 1,954 | 0.41 | % | 1,927,680 | 2,010 | 0.41 | % | ||||||||||
| Time deposits | 1,378,505 | **** | 2,916 | 0.84 | % | 1,579,414 | 4,243 | 1.07 | % | 1,775,828 | 5,507 | 1.24 | % | 1,893,070 | 6,975 | 1.47 | % | 1,944,856 | 7,512 | 1.54 | % | ||||||||||
| 6,463,611 | **** | 6,843 | 0.42 | % | 6,357,713 | 8,599 | 0.54 | % | 6,177,464 | 10,024 | 0.66 | % | 6,135,591 | 11,187 | 0.73 | % | 6,100,223 | 11,769 | 0.77 | % | |||||||||||
| Non-interest bearing deposit accounts | 2,639,610 | **** | - | - | **** | 2,605,623 | - | - | 2,358,214 | - | - | 2,315,717 | - | - | 2,276,400 | - | - | ||||||||||||||
| Total core deposits | $ | 9,103,221 | $ | 6,843 | 0.30 | % | $ | 8,963,336 | $ | 8,599 | 0.38 | % | $ | 8,535,678 | $ | 10,024 | 0.47 | % | $ | 8,451,308 | $ | 11,187 | 0.53 | % | $ | 8,376,623 | $ | 11,769 | 0.56 | % | |
| 9 | |||||||||||||||||||||||||||||||
| OFG Bancorp (NYSE: OFG) | |||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||
| Table 5-2: Average Balances, Net Interest Income and Net Interest Margin (Continued) | |||||||||||||||||||||||||||||||
| 2021 YTD | 2020 YTD | ||||||||||||||||||||||||||||||
| Interest | Interest | ||||||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||||||||||
| Cash<br> equivalents | $ | 2,476,139 | $ | 2,287 | 0.12 | % | $ | 1,423,781 | $ | 3,760 | 0.35 | % | |||||||||||||||||||
| Investment securities | 614,599 | 8,088 | 1.75 | % | 679,201 | 9,552 | 1.88 | % | |||||||||||||||||||||||
| Loans held for investment | **** | **** | **** | ||||||||||||||||||||||||||||
| Non-PCD loans | 4,910,218 | 253,149 | 6.89 | % | 4,780,966 | 254,343 | 7.09 | % | |||||||||||||||||||||||
| PCD loans | 1,655,882 | 73,060 | 5.88 | % | 1,990,938 | 92,671 | 6.21 | % | |||||||||||||||||||||||
| Total loans | 6,566,100 | 326,209 | 6.64 | % | 6,771,904 | 347,014 | 6.83 | % | |||||||||||||||||||||||
| Total<br> interest-earning assets | $ | 9,656,838 | $ | 336,584 | 4.66 | % | $ | 8,874,886 | $ | 360,326 | 5.41 | % | |||||||||||||||||||
| Interest bearing liabilities: | **** | **** | **** | ||||||||||||||||||||||||||||
| Deposits | **** | **** | **** | ||||||||||||||||||||||||||||
| NOW accounts | $ | 2,566,201 | $ | 6,940 | 0.36 | % | $ | 2,092,973 | $ | 6,772 | 0.43 | % | |||||||||||||||||||
| Savings accounts | **** | 2,191,316 | 5,859 | 0.36 | % | 1,845,253 | 6,426 | 0.46 | % | ||||||||||||||||||||||
| Time deposits | **** | 1,576,460 | 12,664 | 1.07 | % | 1,991,432 | 23,480 | 1.57 | % | ||||||||||||||||||||||
| Brokered deposits | 30,482 | 197 | 0.86 | % | 203,779 | 3,844 | 2.51 | % | |||||||||||||||||||||||
| 6,364,459 | 25,660 | 0.54 | % | 6,133,437 | 40,522 | 0.88 | % | ||||||||||||||||||||||||
| Non-interest bearing deposit accounts | 2,535,422 | - | - | **** | 1,987,211 | - | - | % | |||||||||||||||||||||||
| Fair value premium amortization and core deposit intangible amortization | - | 5,515 | - | **** | - | 6,163 | - | ||||||||||||||||||||||||
| Total deposits | 8,899,881 | 31,175 | 0.47 | % | 8,120,648 | 46,685 | 0.77 | % | |||||||||||||||||||||||
| Borrowings | **** | **** | **** | ||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | - | - | - | % | 67,956 | 1,335 | 2.62 | % | |||||||||||||||||||||||
| Advances from FHLB and other borrowings | 63,858 | 1,362 | 2.85 | % | 73,150 | 1,521 | 2.77 | % | |||||||||||||||||||||||
| Subordinated capital notes | 36,083 | 881 | 3.26 | % | 36,083 | 1,091 | 4.02 | % | |||||||||||||||||||||||
| Total borrowings | 99,941 | 2,243 | 3.00 | % | 177,189 | 3,947 | 2.97 | % | |||||||||||||||||||||||
| Total<br> interest-bearing liabilities | $ | 8,999,822 | $ | 33,418 | 0.50 | % | $ | 8,297,837 | $ | 50,632 | 0.81 | % | |||||||||||||||||||
| Interest<br> rate spread | **** | $ | 303,166 | 4.16 | % | $ | 309,694 | 4.60 | % | ||||||||||||||||||||||
| Net<br> interest margin | 4.20 | % | 4.65 | % | |||||||||||||||||||||||||||
| Core deposits: (Non-GAAP) | **** | **** | |||||||||||||||||||||||||||||
| Deposits | **** | **** | |||||||||||||||||||||||||||||
| NOW accounts | $ | 2,566,201 | $ | 6,940 | 0.36 | % | $ | 2,092,973 | $ | 6,772 | 0.43 | % | |||||||||||||||||||
| Savings accounts | 2,191,316 | **** | 5,859 | 0.36 | % | 1,845,253 | 6,426 | 0.46 | % | ||||||||||||||||||||||
| Time deposits | 1,576,460 | **** | 12,664 | 1.07 | % | 1,991,432 | 23,480 | 1.57 | % | ||||||||||||||||||||||
| 6,333,977 | **** | 25,463 | 0.54 | % | 5,929,658 | 36,678 | 0.83 | % | |||||||||||||||||||||||
| Non-interest bearing deposit accounts | 2,535,422 | **** | - | - | % | 1,987,211 | - | - | % | ||||||||||||||||||||||
| Total core deposits | $ | 8,869,399 | $ | 25,463 | 0.38 | % | $ | 7,916,869 | $ | 36,678 | 0.62 | % | |||||||||||||||||||
| 10 | |||||||||||||||||||||||||||||||
| OFG Bancorp (NYSE: OFG) | **** | **** | |||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||
| Table 6-1: Loan<br> Information and Performance Statistics (1) | |||||||||||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||||||||||||||||
| (Dollars<br> in thousands) (unaudited) | Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||||||||||||
| Net<br> Charge-offs | **** | **** | |||||||||||||||||||||||||||||
| Non-PCD | **** | **** | |||||||||||||||||||||||||||||
| Mortgage: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | $ | 160 | $ | 268 | $ | 787 | $ | 225 | $ | 56 | |||||||||||||||||||||
| Recoveries | **** | (419) | (193) | (615) | (79) | (269) | |||||||||||||||||||||||||
| Total mortgage | **** | (259) | 75 | 172 | 146 | (213) | |||||||||||||||||||||||||
| Commercial: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | **** | 7,518 | (a) | 653 | 68 | 413 | 298 | ||||||||||||||||||||||||
| Recoveries | **** | (558) | (996) | (430) | (334) | (253) | |||||||||||||||||||||||||
| Total commercial | **** | 6,960 | (343) | (362) | 79 | 45 | |||||||||||||||||||||||||
| Consumer: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | **** | 2,370 | 2,897 | 4,469 | 6,456 | 5,114 | |||||||||||||||||||||||||
| Recoveries | **** | (894) | (697) | (565) | (1,832) | (663) | |||||||||||||||||||||||||
| Total consumer | **** | 1,476 | 2,200 | 3,904 | 4,624 | 4,451 | |||||||||||||||||||||||||
| Auto: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | **** | 4,989 | 5,170 | 9,083 | 12,071 | 10,123 | |||||||||||||||||||||||||
| Recoveries | **** | (5,874) | (5,997) | (5,817) | (5,928) | (5,950) | |||||||||||||||||||||||||
| Total auto | **** | (885) | (827) | 3,266 | 6,143 | 4,173 | |||||||||||||||||||||||||
| Total | $ | 7,292 | $ | 1,105 | $ | 6,980 | $ | 10,992 | $ | 8,456 | |||||||||||||||||||||
| PCD | **** | **** | |||||||||||||||||||||||||||||
| Mortgage: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | $ | 1,008 | $ | 1,742 | $ | 2,590 | $ | 1,344 | $ | 1,677 | |||||||||||||||||||||
| Recoveries | **** | (641) | (184) | (146) | (63) | (89) | |||||||||||||||||||||||||
| Total mortgage | **** | 367 | 1,558 | 2,444 | 1,281 | 1,588 | |||||||||||||||||||||||||
| Commercial: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | **** | 68 | **** | 6 | 43 | 33,061 | (a) | 293 | |||||||||||||||||||||||
| Recoveries | **** | (1,316) | (430) | (436) | (234) | (91) | |||||||||||||||||||||||||
| Total commercial | **** | (1,248) | (424) | (393) | 32,827 | 202 | |||||||||||||||||||||||||
| Consumer: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | **** | - | - | 22 | 21 | 60 | |||||||||||||||||||||||||
| Recoveries | **** | (219) | (33) | (21) | (200) | 1 | |||||||||||||||||||||||||
| Total consumer | **** | (219) | (33) | 1 | (179) | 61 | |||||||||||||||||||||||||
| Auto: | **** | **** | |||||||||||||||||||||||||||||
| Charge-offs | **** | 124 | 226 | 456 | 574 | 474 | |||||||||||||||||||||||||
| Recoveries | **** | (265) | (314) | (383) | (681) | (211) | |||||||||||||||||||||||||
| Total auto | **** | (141) | (88) | 73 | (107) | 263 | |||||||||||||||||||||||||
| Total | $ | (1,241) | **** | $ | 1,013 | $ | 2,125 | $ | 33,822 | $ | 2,114 | ||||||||||||||||||||
| Total<br> Net Charge-offs | $ | 6,051 | $ | 2,118 | $ | 9,105 | $ | 44,814 | $ | 10,570 | |||||||||||||||||||||
| Net<br> Charge-off Rates | **** | **** | |||||||||||||||||||||||||||||
| Mortgage | **** | 0.02% | 0.30% | 0.47% | 0.25% | 0.24% | |||||||||||||||||||||||||
| Commercial | **** | 0.97% | (a) | -0.13% | -0.13% | 5.45% | (a) | 0.04% | |||||||||||||||||||||||
| Consumer | **** | 1.26% | 2.17% | 3.78% | 4.09% | 3.94% | |||||||||||||||||||||||||
| Auto | **** | -0.25% | -0.23% | 0.85% | 1.56% | 1.17% | |||||||||||||||||||||||||
| Total | **** | 0.37% | (a) | 0.13% | 0.55% | 2.67% | (a) | 0.62% | |||||||||||||||||||||||
| Average<br> Loans Held For Investment | **** | **** | |||||||||||||||||||||||||||||
| Mortgage | $ | 2,047,272 | $ | 2,147,927 | $ | 2,243,303 | $ | 2,305,495 | $ | 2,325,756 | |||||||||||||||||||||
| Commercial | **** | 2,360,642 | 2,443,407 | 2,405,419 | 2,416,703 | 2,484,977 | |||||||||||||||||||||||||
| Consumer | **** | 400,582 | 400,365 | 413,191 | 434,565 | 457,620 | |||||||||||||||||||||||||
| Auto | **** | 1,657,378 | 1,606,870 | 1,573,995 | 1,551,521 | 1,518,669 | |||||||||||||||||||||||||
| Total | $ | 6,465,874 | $ | 6,598,569 | $ | 6,635,908 | $ | 6,708,284 | $ | 6,787,022 | |||||||||||||||||||||
| (a)<br> During 3Q 2021, the Company charged-off 6.5 million for a previously<br> reserved amount on a commercial loan. During 4Q 2020, the Company charged-off<br> 31.2 million for two commercial PCD loans. | |||||||||||||||||||||||||||||||
| 11 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | **** | **** | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans) (1) | ||||||||||||
| **** | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||
| (Dollars in thousands) (unaudited) | **** | Q3 | Q2 | Q1 | Q4 | Q3 | ||||||
| Early Delinquency (30 - 89 days past due) | **** | **** | ||||||||||
| Mortgage | $ | 15,233 | $ | 15,512 | $ | 17,350 | $ | 22,339 | $ | 16,783 | ||
| Commercial | **** | 4,150 | 3,715 | 3,911 | 8,043 | 5,151 | ||||||
| Consumer | **** | 4,985 | 5,929 | 8,250 | 12,230 | 12,032 | ||||||
| Auto | **** | 76,262 | 66,068 | 75,449 | 88,357 | 87,912 | ||||||
| Total | $ | 100,630 | $ | 91,224 | $ | 104,960 | $ | 130,969 | $ | 121,878 | ||
| Early Delinquency Rates (30 - 89 days past due) | **** | **** | ||||||||||
| Mortgage | **** | 2.03% | 2.04% | 2.19% | 2.71% | 1.98% | ||||||
| Commercial | **** | 0.21% | 0.20% | 0.21% | 0.44% | 0.29% | ||||||
| Consumer | **** | 1.33% | 1.55% | 2.09% | 2.96% | 2.77% | ||||||
| Auto | **** | 4.57% | 4.08% | 4.82% | 5.76% | 5.81% | ||||||
| Total | **** | 2.06% | 1.86% | 2.15% | 2.68% | 2.50% | ||||||
| Total Delinquency (30 days and over past due) | **** | **** | ||||||||||
| Mortgage: | **** | **** | ||||||||||
| Traditional, Non traditional, and Loans under Loss Mitigation | $ | 58,146 | $ | 59,848 | $ | 62,827 | $ | 67,671 | $ | 51,123 | ||
| GNMA's buy-back option program | **** | 19,944 | 28,118 | 40,777 | 56,193 | 62,651 | ||||||
| Total mortgage | **** | 78,090 | 87,966 | 103,604 | 123,864 | 113,774 | ||||||
| Commercial | **** | 13,742 | 21,549 | 26,065 | 30,604 | 35,596 | ||||||
| Consumer | **** | 6,987 | 8,244 | 11,042 | 17,147 | 17,080 | ||||||
| Auto | **** | 87,672 | 73,259 | 86,918 | 108,842 | 109,735 | ||||||
| Total | $ | 186,491 | $ | 191,018 | $ | 227,629 | $ | 280,457 | $ | 276,185 | ||
| Total Delinquency Rates (30 days and over past due) | **** | **** | ||||||||||
| Mortgage: | **** | **** | ||||||||||
| Traditional, Non traditional, and Loans under Loss Mitigation | **** | 7.74% | 7.87% | 7.94% | 8.22% | 6.03% | ||||||
| GNMA's buy-back option program | **** | 2.65% | 3.70% | 5.15% | 6.82% | 7.39% | ||||||
| Total mortgage | **** | 10.39% | 11.57% | 13.10% | 15.04% | 13.42% | ||||||
| Commercial | **** | 0.70% | 1.13% | 1.43% | 1.67% | 1.99% | ||||||
| Consumer | **** | 1.87% | 2.16% | 2.79% | 4.15% | 3.93% | ||||||
| Auto | **** | 5.26% | 4.53% | 5.55% | 7.09% | 7.26% | ||||||
| Total | **** | 3.82% | 3.90% | 4.65% | 5.74% | 5.67% | ||||||
| Nonperforming Assets | (14) | **** | **** | |||||||||
| Mortgage | $ | 51,612 | $ | 52,773 | $ | 50,933 | $ | 46,967 | $ | 40,477 | ||
| Commercial | **** | 28,472 | 37,858 | 42,778 | 41,999 | 44,941 | ||||||
| Consumer | **** | 2,203 | 2,466 | 2,900 | 4,987 | 5,206 | ||||||
| Auto | **** | 12,055 | 7,606 | 11,842 | 20,766 | 22,583 | ||||||
| Total nonperforming loans | **** | 94,342 | 100,703 | 108,453 | 114,719 | 113,207 | ||||||
| Foreclosed<br> real estate | **** | 13,904 | 15,093 | 15,598 | 11,596 | 19,456 | ||||||
| Other<br> repossessed assets | **** | 1,528 | 1,725 | 2,768 | 1,816 | 1,918 | ||||||
| Total nonperforming assets | $ | 109,775 | $ | 117,521 | $ | 126,819 | $ | 128,131 | $ | 134,581 | ||
| Nonperforming Loan Rates | **** | **** | ||||||||||
| Mortgage | **** | 6.87% | 6.94% | 6.44% | 5.70% | 4.78% | ||||||
| Commercial | **** | 1.46% | 1.99% | 2.34% | 2.29% | 2.52% | ||||||
| Consumer | **** | 0.59% | 0.65% | 0.73% | 1.21% | 1.20% | ||||||
| Auto | **** | 0.72% | 0.47% | 0.76% | 1.35% | 1.49% | ||||||
| Total loans | **** | 1.93% | 2.06% | 2.22% | 2.35% | 2.33% | ||||||
| 12 | ||||||||||||
| OFG Bancorp (NYSE: OFG) | **** | **** | **** | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Table 6-3: Loan<br> Information and Performance Statistics (1) | ||||||||||||
| 2021 | **** | 2021 | 2021 | 2020 | 2020 | |||||||
| (Dollars<br> in thousands) (unaudited) | Q3 | **** | Q2 | Q1 | Q4 | Q3 | ||||||
| Nonperforming<br> PCD Loans | **** | **** | **** | |||||||||
| Mortgage | $ | 2,030 | **** | $ | 2,067 | $ | 958 | $ | 1,003 | $ | 1,003 | |
| Commercial | **** | 36,798 | (a) | 34,502 | 34,906 | 36,470 | (a) | 79,631 | ||||
| Consumer | **** | - | **** | - | - | 1 | 4 | |||||
| Total nonperforming loans | $ | 38,828 | **** | $ | 36,569 | $ | 35,864 | $ | 37,474 | $ | 80,638 | |
| Nonperforming<br> PCD Loan Rates | **** | **** | **** | |||||||||
| Mortgage | **** | 0.16% | **** | 0.16% | 0.07% | 0.07% | 0.07% | |||||
| Commercial | **** | 15.36% | (a) | 13.24% | 12.80% | 12.88% | (a) | 22.59% | ||||
| Consumer | **** | 0.00% | **** | 0.00% | 0.00% | 0.07% | 0.17% | |||||
| Total | **** | 2.54% | (a) | 2.28% | 2.11% | 2.11% | (a) | 4.26% | ||||
| Total<br> PCD Loans Held for Investment | **** | **** | **** | |||||||||
| Mortgage | $ | 1,270,854 | **** | $ | 1,324,274 | $ | 1,406,044 | $ | 1,459,932 | $ | 1,504,914 | |
| Commercial | **** | 239,554 | **** | 260,627 | 272,793 | 283,160 | 352,555 | |||||
| Consumer | **** | 959 | **** | 981 | 1,120 | 1,394 | 2,336 | |||||
| Total loans | $ | 1,511,367 | **** | $ | 1,585,882 | $ | 1,679,957 | $ | 1,744,486 | $ | 1,859,805 | |
| 2021 | **** | 2021 | 2021 | 2020 | 2020 | |||||||
| (Dollars<br> in thousands) (unaudited) | Q3 | **** | Q2 | Q1 | Q4 | Q3 | ||||||
| Total<br> Nonperforming Loans | **** | **** | **** | |||||||||
| Mortgage | $ | 53,642 | **** | $ | 54,840 | $ | 51,891 | $ | 47,970 | $ | 41,480 | |
| Commercial | **** | 65,270 | (a) | 72,360 | 77,684 | 78,469 | (a) | 124,572 | ||||
| Consumer | **** | 2,203 | **** | 2,466 | 2,900 | 4,988 | 5,210 | |||||
| Auto | **** | 12,055 | **** | 7,606 | 11,842 | 20,766 | 22,583 | |||||
| Total nonperforming loans | $ | 133,170 | **** | $ | 137,272 | $ | 144,317 | $ | 152,193 | $ | 193,845 | |
| Total<br> Nonperforming Loan Rates | **** | **** | **** | |||||||||
| Mortgage | **** | 2.65% | **** | 2.63% | 2.36% | 2.10% | 1.76% | |||||
| Commercial | **** | 2.80% | (a) | 3.02% | 3.22% | 3.27% | (a) | 5.13% | ||||
| Consumer | **** | 0.59% | **** | 0.64% | 0.73% | 1.20% | 1.19% | |||||
| Auto | **** | 0.72% | **** | 0.46% | 0.75% | 1.33% | 1.46% | |||||
| Total | **** | 2.08% | (a) | 2.11% | 2.19% | 2.28% | (a) | 2.87% | ||||
| Total<br> Loans Held for Investment | **** | **** | **** | |||||||||
| Mortgage | $ | 2,022,243 | **** | $ | 2,084,442 | $ | 2,197,106 | $ | 2,283,375 | $ | 2,352,585 | |
| Commercial | **** | 2,331,056 | **** | 2,393,170 | 2,411,718 | 2,402,010 | 2,426,795 | |||||
| Consumer | **** | 374,631 | **** | 382,456 | 396,193 | 414,946 | 436,882 | |||||
| Auto | **** | 1,682,933 | **** | 1,638,024 | 1,588,509 | 1,561,802 | 1,543,665 | |||||
| Total loans | $ | 6,410,863 | **** | $ | 6,498,092 | $ | 6,593,526 | $ | 6,662,133 | $ | 6,759,927 | |
| (a)<br> During 3Q 2021, the Company charged-off 6.5 million for a previously<br> reserved amount on a commercial loan. During 4Q 2020, the Company charged-off<br> 31.2 million for two commercial PCD loans. | ||||||||||||
| 13 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Table 7: Allowance for Credit Losses (1) | **** | **** | |||||||||
| **** | Quarter Ended September 30, 2021 | ||||||||||
| (Dollars in thousands) (unaudited) | Mortgage | Commercial | Consumer | Auto | Total | ||||||
| Allowance for credit losses Non-PCD: | **** | **** | |||||||||
| Balance at beginning of period | $ | 16,368 | $ | 43,523 | $ | 19,065 | $ | 69,358 | $ | 148,314 | |
| Provision (recapture) for credit losses | **** | 240 | (3,323) | 259 | 676 | (2,148) | |||||
| Charge-offs | **** | (160) | (7,518) | (2,370) | (4,989) | (15,037) | |||||
| Recoveries | **** | 419 | 558 | 894 | 5,874 | 7,745 | |||||
| Balance at end of period | $ | 16,867 | $ | 33,240 | $ | 17,848 | $ | 70,919 | $ | 138,874 | |
| Allowance for credit losses PCD: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | |
| Balance at beginning of period | $ | 30,108 | $ | 12,756 | $ | 38 | $ | 501 | $ | 43,403 | |
| Provision (recapture) for credit losses | **** | 649 | (2,838) | (220) | (237) | (2,646) | |||||
| Charge-offs | **** | (1,008) | (68) | - | (124) | (1,200) | |||||
| Recoveries | **** | 641 | 1,316 | 219 | 265 | 2,441 | |||||
| Balance at end of period | $ | 30,390 | $ | 11,166 | $ | 37 | $ | 405 | $ | 41,998 | |
| Allowance for credit losses summary: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | |
| Balance at beginning of period | $ | 46,476 | $ | 56,279 | $ | 19,103 | $ | 69,859 | $ | 191,717 | |
| Provision (recapture) for credit losses | **** | 889 | (6,161) | 39 | 439 | (4,794) | |||||
| Charge-offs | **** | (1,168) | (7,586) | (2,370) | (5,113) | (16,237) | |||||
| Recoveries | **** | 1,060 | 1,874 | 1,113 | 6,139 | 10,186 | |||||
| Balance at end of period | $ | 47,257 | $ | 44,406 | $ | 17,885 | $ | 71,324 | $ | 180,872 | |
| Allowance<br> coverage ratio | **** | 2.34% | **** | 1.90% | **** | 4.77% | **** | 4.24% | **** | 2.82% | |
| Allowance<br> coverage ratio excluding PPP loans (Non-GAAP) | **** | 2.34% | **** | 2.02% | **** | 4.77% | **** | 4.24% | **** | 2.88% | |
| 14 | |||||||||||
| OFG Bancorp (NYSE: OFG) | **** | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Table 8-1:<br> Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory<br> Capital | |||||||||||
| In<br> addition to disclosing required regulatory capital measures, we also report<br> certain non-GAAP capital measures that management uses in assessing its<br> capital adequacy. These non-GAAP measures include tangible common equity<br> ("TCE") and TCE ratio. The table below provides the details of the<br> calculation of our regulatory capital and non-GAAP capital measures. While<br> our non-GAAP capital measures are widely used by investors, analysts and bank<br> regulatory agencies to assess the capital position of financial services<br> companies, they may not be comparable to similarly titled measures reported<br> by other companies. | |||||||||||
| 2021 | 2021 | 2020 | 2020 | ||||||||
| (Dollars<br> in thousands) (unaudited) | Q2 | Q1 | Q4 | Q3 | |||||||
| Stockholders'<br> Equity to Non-GAAP Tangible Common Equity | **** | ||||||||||
| Total<br> stockholders' equity | 1,053,665 | (a)(b) | $ | 1,079,997 | (a) | $ | 1,108,423 | $ | 1,085,975 | $ | 1,064,322 |
| Less: <br> Intangible assets | (124,614) | (127,064) | (129,514) | (131,965) | (134,719) | ||||||
| Noncumulative perpetual preferred stock | - | (a) | (24,000) | (a) | (92,000) | (92,000) | (92,000) | ||||
| Noncumulative perpetual preferred stock issuance costs | - | (a) | 7,453 | (a) | 10,130 | 10,130 | 10,130 | ||||
| Tangible<br> common equity | 929,051 | $ | 936,386 | $ | 897,039 | $ | 872,140 | $ | 847,733 | ||
| Common<br> shares outstanding at end of period | 49,977 | 51,661 | 51,579 | 51,387 | 51,345 | ||||||
| Tangible<br> book value per common share (Non-GAAP) | 18.59 | $ | 18.13 | $ | 17.39 | $ | 16.97 | $ | 16.51 | ||
| Total<br> Assets to Tangible Assets | **** | ||||||||||
| Total<br> assets | 10,606,865 | $ | 10,461,813 | $ | 10,153,342 | $ | 9,826,011 | $ | 10,018,991 | ||
| Less: <br> Intangible assets | (124,614) | (127,064) | (129,514) | (131,965) | (134,719) | ||||||
| Tangible<br> assets (Non-GAAP) | 10,482,251 | $ | 10,334,749 | $ | 10,023,828 | $ | 9,694,046 | $ | 9,884,272 | ||
| Non-GAAP<br> TCE Ratio | **** | ||||||||||
| Tangible<br> common equity | 929,051 | $ | 936,386 | $ | 897,039 | $ | 872,140 | $ | 847,733 | ||
| Tangible<br> assets | 10,482,251 | 10,334,749 | 10,023,828 | 9,694,046 | 9,884,272 | ||||||
| TCE<br> ratio | 8.86% | 9.06% | 8.95% | 9.00% | 8.58% | ||||||
| Average<br> Equity to Non-GAAP Average Tangible Common Equity | **** | ||||||||||
| Average<br> total stockholders' equity | 1,068,618 | (a)(b) | $ | 1,083,452 | (a) | $ | 1,101,046 | $ | 1,083,423 | $ | 1,062,460 |
| Less: <br> Average noncumulative perpetual preferred stock | (3,391) | (a) | (44,923) | (a) | (92,000) | (92,000) | (92,000) | ||||
| Average noncumulative perpetual preferred stock issuance costs | 1,134 | (a) | 8,306 | (a) | 10,130 | 10,130 | 10,130 | ||||
| Average<br> total common stockholders' equity | 1,066,361 | $ | 1,046,835 | $ | 1,019,176 | $ | 1,001,553 | $ | 980,590 | ||
| Less: <br> Average intangible assets | (125,723) | (128,311) | (130,767) | (133,542) | (136,138) | ||||||
| Average<br> tangible common equity | 940,638 | $ | 918,524 | $ | 888,409 | $ | 868,011 | $ | 844,452 | ||
| (a)<br> During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q<br> 2021, the Company redeemed Series A and B Preferred Stock. | |||||||||||
| (b)<br> During 3Q 2021, the Company repurchased 40.2 million common stock from of our<br> 50.0 million share buyback program. | |||||||||||
| 15 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | **** | **** | **** | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Table 8-2:<br> Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory<br> Capital Measures (Continued) | ||||||||||||
| BASEL III | ||||||||||||
| Standardized | ||||||||||||
| 2021 | **** | 2021 | 2021 | 2020 | 2020 | |||||||
| (Dollars<br> in thousands) (unaudited) | Q3 | **** | Q2 | Q1 | Q4 | Q3 | ||||||
| Regulatory<br> Capital Metrics | **** | **** | **** | |||||||||
| Common<br> equity Tier 1 capital | $ | 931,884 | (b) | $ | 957,238 | $ | 919,856 | $ | 894,074 | $ | 862,636 | |
| Tier 1<br> capital | **** | 966,884 | (a)(b) | 1,008,785 | (a) | 1,036,726 | 1,010,944 | 979,506 | ||||
| Total<br> risk-based capital | **** | 1,053,184 | (a)(b) | 1,094,786 | (a) | 1,121,830 | 1,096,764 | 1,065,744 | ||||
| Risk-weighted<br> assets | **** | 6,893,254 | **** | 6,861,890 | 6,782,685 | 6,837,846 | 6,875,108 | |||||
| Regulatory<br> Capital Ratios | **** | **** | **** | |||||||||
| Common<br> equity Tier 1 capital ratio | **** | 13.52% | **** | 13.95% | 13.56% | 13.08% | 12.55% | |||||
| Tier 1<br> risk-based capital ratio | **** | 14.03% | **** | 14.70% | 15.28% | 14.78% | 14.25% | |||||
| Total<br> risk-based capital ratio | **** | 15.28% | **** | 15.95% | 16.54% | 16.04% | 15.50% | |||||
| Leverage<br> ratio | **** | 9.33% | **** | 9.84% | 10.48% | 10.30% | 10.00% | |||||
| Common<br> Equity Tier 1 Capital Ratio Under Basel III Standardized Approach | **** | **** | **** | |||||||||
| Total<br> stockholders' equity | $ | 1,053,665 | (a)(b) | $ | 1,079,997 | (a) | $ | 1,108,423 | $ | 1,085,975 | $ | 1,064,322 |
| Plus:<br> CECL transition adjustment | **** | 29,111 | **** | 31,471 | 33,637 | 34,646 | 33,494 | |||||
| Less: <br> Noncumulative perpetual preferred stock | **** | - | (a) | (24,000) | (a) | (92,000) | (92,000) | (92,000) | ||||
| Noncumulative perpetual preferred stock issuance costs | **** | - | (a) | 7,453 | (a) | 10,130 | 10,130 | 10,130 | ||||
| Unrealized gains on available-for-sale securities, net of income tax | **** | (9,330) | **** | (8,408) | (7,146) | (12,091) | (9,453) | |||||
| Unrealized losses on cash flow hedges, net of income tax | **** | 710 | **** | 808 | 916 | 1,069 | 1,185 | |||||
| **** | 1,074,156 | **** | 1,087,321 | 1,053,960 | 1,027,729 | 1,007,678 | ||||||
| Less: <br> Disallowed goodwill | **** | (86,069) | **** | (86,069) | (86,069) | (86,069) | (86,069) | |||||
| Disallowed other intangible assets, net | **** | (26,938) | **** | (28,555) | (30,172) | (32,073) | (33,810) | |||||
| Disallowed deferred tax assets, net | **** | (29,265) | **** | (15,459) | (17,863) | (15,513) | (25,163) | |||||
| Common<br> equity Tier 1 capital | **** | 931,884 | **** | 957,238 | 919,856 | 894,074 | 862,636 | |||||
| Plus: <br> Qualifying noncumulative perpetual preferred stock | **** | - | (a) | 24,000 | (a) | 92,000 | 92,000 | 92,000 | ||||
| Qualifying noncumulative perpetual preferred stock issuance costs | **** | - | (a) | (7,453) | (a) | (10,130) | (10,130) | (10,130) | ||||
| Subordinated capital notes | **** | 35,000 | **** | 35,000 | 35,000 | 35,000 | 35,000 | |||||
| Tier 1<br> capital | **** | 966,884 | **** | 1,008,785 | 1,036,726 | 1,010,944 | 979,506 | |||||
| Plus<br> tier 2 capital: Qualifying allowance for loan and lease losses | **** | 86,300 | **** | 86,001 | 85,104 | 85,820 | 86,238 | |||||
| Total<br> risk-based capital | $ | 1,053,184 | **** | $ | 1,094,786 | $ | 1,121,830 | $ | 1,096,764 | $ | 1,065,744 | |
| (a)<br> During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q<br> 2021, the Company redeemed Series A and B Preferred Stock. | ||||||||||||
| (b)<br> During 3Q 2021, the Company repurchased 40.2 million common stock from of<br> our 50.0 million share buyback program. | ||||||||||||
| 16 |
All values are in US Dollars.
| OFG Bancorp (NYSE: OFG) | |
|---|---|
| Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8) | |
| (1) | We used<br> the terms "PCI" and "SOP" to refer to loans acquired with<br> credit deterioration from the Scotiabank acquisition (December 31, 2019), the<br> BBVAPR acquisition (December 18, 2012) and the Eurobank FDIC-Assisted<br> acquisition (April 30, 2010), recorded at fair value at acquisition. On<br> January 1, 2020, the Company implemented ASU No. 2016-13: Measurement of<br> Credit Losses on Financial Instruments "(CECL)" using the modified<br> retrospective approach. CECL replaces the concept of purchased credit<br> impaired loans (PCI) with the concept of purchased financial assets with<br> credit deterioration (PCD). PCD accounting is called ‘gross-up accounting’<br> because, at acquisition, an entity grosses up the amortized cost basis of the<br> PCD asset for the initial estimate of credit losses. This Day 1 allowance for<br> credit losses is established without an income statement effect. The Company<br> elected to maintain previously existing pools on adoption, therefore the pool<br> continues to be the unit of account, and the allowance and non-credit<br> discount or premium is not allocated to the individual assets. These loans<br> are not classified as delinquent or nonperforming even though the customer<br> may be contractually past due because we expect that we will fully collect<br> the carrying value of these loans. |
| (2) | Total<br> banking and financial service revenues. |
| (3) | Calculated<br> based on net income available to common shareholders divided by average<br> common shares outstanding for the period. |
| (4) | Calculated<br> based on net income available to common shareholders plus the preferred<br> dividends on the convertible preferred stock, divided by total average common<br> shares outstanding and equivalents for the period as if converted. |
| (5) | Tangible<br> book value per common share is a non-GAAP measure calculated based on<br> tangible common equity divided by common shares outstanding. See "Table<br> 9: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory<br> Capital Measures" for additional information. |
| (6) | Information<br> includes all loans held for investment, including PCD loans. |
| (7) | Calculated<br> based on annualized net interest income for the period divided by average<br> interest-earning assets for the period. |
| (8) | Calculated<br> based on annualized income, net of tax, for the period divided by average<br> total assets for the period. |
| (9) | Calculated<br> based on annualized income available to common shareholders for the period<br> divided by average tangible common equity for the period. |
| (10) | Calculated<br> based on non-interest expense for the period divided by total net interest<br> income and total banking and financial services revenues for the period. |
| (11) | Calculated<br> based on annualized net charge-offs for the period divided by average loans<br> held for investment for the period. |
| (12) | Non-GAAP<br> ratios. See "Table 9: Reconciliation of GAAP to Non-GAAP Measures and<br> Calculation of Regulatory Capital Measures" for information on the<br> calculation of each of these ratios. |
| (13) | Production<br> of new loans (excluding renewals). |
| (14) | Most PCD<br> loans are considered to be performing due to the application of the accretion<br> method, in which these loans will accrete interest income over the remaining<br> life of the loans using estimated cash flow analyses. Therefore, they are not<br> included as non-performing loans. PCD loan pools that are not accreting<br> interest income are deemed to be non-performing loans and presented<br> separately. |
| (15) | Total<br> risk-based capital equals the sum of Tier 1 capital and Tier 2 capital. |
| (16) | Common<br> equity Tier 1 capital ratio is a regulatory capital measure calculated based<br> on Common equity Tier 1 capital divided by risk-weighted assets. |
| (17) | Tier 1<br> risk-based capital ratio is a regulatory capital measure calculated based on<br> Tier 1 capital divided by risk-weighted assets. |
| (18) | Total<br> risk-based capital ratio is a regulatory capital measure calculated based on<br> Total risk-based capital divided by risk-weighted assets. |
| (19) | Leverage<br> capital ratio is a regulatory capital measure calculated based on Tier 1<br> capital divided by average assets, after certain adjustments. |
| (20) | In March<br> 2020, in light of recent strains on the U.S. economy as a result of the<br> coronavirus disease 2019 (COVID-19), the Board of Governors of the Federal<br> Reserve System, the Federal Deposit Insurance Corporation, and the Office of<br> the Comptroller of the Currency issued an interim final rule that provided<br> the option to temporarily delay the effects of CECL on regulatory capital for<br> two years, followed by a three-year transition period. In addition, for the<br> first two years, a uniform 25% “scaling factor” is introduced to approximate<br> the portion of the post day-one allowance attributable to CECL relative to<br> the incurred loss methodology. The 25% scaling factor is calibrated to<br> approximate an overall after-tax impact of differences in allowances under<br> CECL vs the incurred loss methodology. |
| (21) | CECL<br> replaces the concept of purchased credit impaired loans (PCI assets) with the<br> concept of purchased financial assets with credit deterioration (PCD assets).<br> An entity records a PCD asset at the purchase price plus the allowance for<br> credit losses expected at the time of acquisition. Under this method, there<br> is no credit loss expense affecting net income on acquisition. Changes in<br> estimates of expected credit losses after acquisition are recognized as<br> credit loss expense (or reversal of credit loss expense) in subsequent<br> periods as they arise. |
| (22) | Pre-provision<br> net revenues is a non-GAAP measure calculated based on net interest income<br> plus total non-interest income, net, less total non-interest expenses for the<br> period. |
| (23) | PPP<br> loans are fully guaranteed by the SBA and risk-weighted at 0%. |
| 17 |