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. In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" withi ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-12647 OFG Bancorp 254 Muñoz Rivera Avenue 00918 San Juan, Puerto Rico (Zip code) (Address of princ ...

Financial Data and Key Metrics Changes - Earnings per share diluted was $0.93, up 11% year-over-year [8] - Core revenues increased 17% to $170.5 million [8] - Net interest margin was 5.9% [8] - Provision for credit losses totaled $15 million [8] - Non-interest expenses were $89 million, with pre-provision net revenues totaling $80.8 million, up 22% year-over-year [8][17] - Return on average asset was 1.76%, and return on average tangible common equity was 17.67% [19] Business Line Data and Key Metrics Changes - New loan production increased 23% from the first quarter to approximately $692 million [9][21] - Banking and wealth management revenues were $31 million, up $2 million from the first quarter [15] - Average loan balances increased $136 million from the first quarter [20] - Non-interest expenses are expected to average about $90 million to $92 million per quarter for the rest of the year [18] Market Data and Key Metrics Changes - Customer deposits were approximately $8.5 billion [9] - Loans held for investment totaled $7.1 billion, up 3.8% from the first quarter [9] - Retail deposits declined $136 million, while government deposits increased $130 million [22] - Cumulative deposit beta was 16%, expected to reach about 25% through the cycle [23] Company Strategy and Development Direction - The company is focused on a digital-first strategy, showing excellent progress with higher sales service actions and lower branch visits [6][12] - Investments in technology are aimed at improving customer experience and operational efficiency [12][102] - The company aims to maintain a strong loan-to-deposit ratio while managing deposits effectively [40][44] Management's Comments on Operating Environment and Future Outlook - The economy in Puerto Rico continues to show resilience, with retail sales and wages rising [30][31] - Management is optimistic about the strength of Puerto Rico's economy despite potential risks from interest rate changes and inflation [31] - The company anticipates continued strong loan production and stable core deposit balances [32] Other Important Information - The CET1 ratio was 14.0%, and the company bought back about 565,000 shares during the second quarter [10] - The efficiency ratio improved to 52.13%, reflecting increased operating leverage [17] Q&A Session Summary Question: Loan-to-deposit ratio outlook - Management noted high levels of liquidity and capital, indicating a strong position in the current banking environment [36][37] Question: Commercial loan growth and pipeline - Management confirmed a strong pipeline for commercial loans and expressed confidence in replicating first-half performance in the second half [40] Question: Deposit beta guidance - Management indicated that the deposit beta guidance remains at 25%, which is considered conservative given current levels [45] Question: Credit portfolio specifics - Management clarified that specific issues with three U.S. commercial loans do not affect the overall diversified portfolio [48][49] Question: Efficiency ratio guidance - Management expects non-interest expenses to remain stable, with technology investments driving future efficiency [54][55] Question: Auto loan market outlook - Management expressed surprise at the strength of auto loan growth and noted that consumer confidence is driving purchases [56][59] Question: Capital management and buyback activity - Management is focused on loan growth, dividends, and share repurchase programs, with $19 million remaining for buybacks [60][61] Question: Deposit pressure trends - Management observed lower non-interest-bearing deposit balances as consumers deploy liquidity for purchases [68][70] Question: Digital strategy updates - Management emphasized a customer-centric approach in their digital strategy, with ongoing investments in technology [102][103]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-12647 OFG Bancorp (Exact name of registrant as specified in its charter) Commonwealth of Puerto R ...

Forward Looking Statements Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes and other natural disasters; (iv) competition in the financial services industry; and (v) the severity, magnitude and duration of the COVID-19 pandemic, and its impact on our operations, personnel, and customers. In addition to our financial information presented in ac ...

OFG Bancorp (NYSE:OFG) Q1 2023 Earnings Conference Call April 20, 2023 10:00 AM ET Company Participants José Rafael Fernández - Vice Chair, Board and CEO Maritza Arizmendi - Chief Financial Officer Conference Call Participants Timur Braziler - Wells Fargo Brett Rabatin - Hovde Group Alex Twerdahl - Piper Sandler Kelly Motta - KBW Operator Please standby. Your program is about to begin. [Operator Instructions] Good morning. Thank you for joining OFG Bancorp’s Conference Call. My name is Melinda. I will be yo ...

Financial Performance - In the fourth quarter of 2022, total core revenue grew by 7.3% compared to the third quarter of 2022, reaching $168.3 million[220]. - Earnings per share (EPS) diluted increased to $0.97 in the fourth quarter of 2022, up from $0.87 in the third quarter of 2022 and $0.66 in the fourth quarter of 2021[220]. - Net interest income for the fourth quarter of 2022 was $135.3 million, compared to $126.5 million in the third quarter of 2022 and $104.2 million in the fourth quarter of 2021[221]. - The net interest margin expanded to 5.69% in the fourth quarter of 2022, up from 5.23% in the third quarter of 2022, reflecting Federal Reserve interest rate increases[221]. - Diluted EPS for 2022 was $3.44, up from $2.81 in 2021, with total core revenues increasing to $607.8 million from $536.6 million[234]. - Non-interest income totaled $131.7 million, a slight decrease of 1.1% from $133.2 million in 2021[249]. - Total assets increased to $10.8 billion in 2022 from $9.9 billion in 2021, reflecting growth in the company's balance sheet[258]. Credit and Loan Performance - Provision for credit losses in the fourth quarter of 2022 was $8.8 million, compared to $7.1 million in the third quarter of 2022 and $7.2 million in the fourth quarter of 2021[226]. - Net charge-offs for Q4 2022 were $11.2 million, a slight decrease from $11.3 million in Q3 2022 and a significant drop from $32.5 million in Q4 2021[227]. - Total loans outstanding under the payment accommodations program amounted to $33.1 million as of December 31, 2022[200]. - The total loan portfolio stood at $6.835 billion as of December 31, 2022, with various categories including mortgage, commercial, consumer, and auto loans[278]. - Total charge-offs for 2022 amounted to $63.8 million, a decrease of 26.3% compared to $86.5 million in 2021[304]. - Non-performing assets decreased by 10.3% to $115.7 million in 2022 from $129.0 million in 2021[311]. Expenses and Efficiency - Non-interest expenses increased to $91.6 million in Q4 2022, up from $87.5 million in Q3 2022 and $86.5 million in Q4 2021, primarily due to higher compensation expenses and technology staffing[228]. - The efficiency ratio improved to 56.85% in 2022 from 60.70% in 2021, indicating better cost management[237]. - Non-interest expenses increased by 6.1% to $345.5 million in 2022 from $325.8 million in 2021, driven by a $9.5 million increase in compensation and employee benefits[253]. Capital and Dividends - The Board of Directors approved an increase in the regular quarterly cash dividend to $0.20 per common share starting from the quarter ended September 30, 2022[201]. - Stockholders' equity was $1.042 billion at December 31, 2022, a 3% decrease from $1.069 billion in 2021[318]. - Cash dividends declared increased by 63.8% from $20,505 thousand in 2021 to $33,593 thousand in 2022, with a payout ratio of 20.35%[326]. Risk Management - The company’s risk management program is overseen by the Chief Risk and Compliance Officer and includes a comprehensive credit policy to monitor loan portfolio quality[6]. - OFG's interest rate risk management strategy incorporates the use of derivative instruments to minimize fluctuations in earnings caused by interest rate volatility[7]. - The Board of Directors has established policies to manage liquidity risk, ensuring sufficient cash generation to meet obligations[10]. Market and Economic Conditions - The Puerto Rico Economic Activity Index has been increasing for over a year, indicating a stable upward trend in the local economy despite the impacts of Hurricane Fiona[205]. - The Federal Reserve increased the federal funds rate seven times during fiscal year 2022, with the last increase of 50 basis points on December 14, 2022[204]. Shareholder Actions - The company repurchased 2.4 million shares of common stock for $64.1 million by December 31, 2022, under a $100 million stock repurchase program[202]. - As of December 31, 2022, OFG has $35.9 million remaining under the $100 million stock buyback program, allowing for the purchase of approximately 1,302,242 shares at a closing price of $27.56[2].

Financial Data and Key Metrics Changes - The company reported strong performance for the fourth quarter and fiscal year 2022, reflecting significant progress in executing its strategies [3] - The financial results indicate a solid position as a challenger bank, differentiating from competitors through technology deployment and network expansion [3] Business Line Data and Key Metrics Changes - The company has expanded its self-service banking options, now offering seven self-service banking kiosks and 23 Interactive Teller Machines, enhancing customer experience [8] Market Data and Key Metrics Changes - The company is focusing on a digital-first business transformation, which is expected to solidify its market position and improve competitiveness [3] Company Strategy and Development Direction - The company is committed to investing in technology and talent, aiming to enhance its service offerings and operational efficiency [3] - The strategic focus on digital transformation is intended to differentiate the company from traditional banks and improve customer engagement [3] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the company's achievements over the past year and emphasized the importance of ongoing investments in technology and customer service [3] Other Important Information - The call included forward-looking statements regarding management's goals and expectations, with a disclaimer about potential risks and uncertainties [4] Q&A Session Summary Question: What are the company's future growth strategies? - Management highlighted the focus on digital transformation and enhancing customer service as key growth strategies moving forward [3]

January 26, 2023 Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes and other natural disasters; (iv) competition in the financial services industry; and (v) the severity, magnitude and duration of the COVID-19 pandemic, and its impact on our operations, personnel, and customers. Quarterly Results 4Q22 Conference Call Forward Looking Statements ...

Financial Performance - For the quarter ended September 30, 2022, OFG reported total core revenue growth of 7.2% quarter-over-quarter, with total core revenues reaching $156.8 million compared to $146.3 million in the second quarter of 2022[231]. - Earnings per share diluted increased to $0.87 from $0.84 in the second quarter of 2022 and $0.81 in the third quarter of 2021[232]. - Net interest income was $126.5 million, up from $115.1 million in the second quarter of 2022, with a net interest margin expanding to 5.23% from 4.80%[233]. - Non-interest income was $30.6 million, down from $36.2 million in the second quarter of 2022, impacted by Hurricane Fiona's effect on economic activity[236]. - Total investments grew to $2.04 billion at September 30, 2022, compared to $1.73 billion at June 30, 2022, due to the purchase of $410.0 million in short-term US Treasury securities[244]. - The regular quarterly cash dividend was increased to $0.20 per common share in the third quarter of 2022, up from $0.15 in the second quarter of 2022[220]. - Return on average assets (ROA) improved to 1.65% for the quarter ended September 30, 2022, compared to 1.59% in the prior year[247]. - Total stockholders' equity decreased by 7.0% to $993,867,000 as of September 30, 2022, from $1,069,160,000 a year earlier[248]. Credit Quality - Provision for credit losses was $7.1 million, compared to $6.7 million in the second quarter of 2022, including $8.0 million for higher auto and consumer loan balances[238]. - Provision for credit losses showed a significant increase of 242.5%, amounting to $7,120,000 for the quarter, compared to a recapture of $(4,997,000) in the same quarter of 2021[247]. - Non-performing assets decreased by 6.0% to $121.3 million, representing 1.21% of total assets, down from 1.30% at December 31, 2021[308]. - The allowance coverage ratio to non-performing loans improved to 150.0% as of September 30, 2022, compared to 139.2% at December 31, 2021[309]. - Non-performing loans decreased to $103.438 million, down 7.7% from $112.008 million at December 31, 2021[335]. - The charge-off rate on non-performing loans decreased to 94.21%, down 44.7% from 170.31%[335]. Asset Management - Total assets as of September 30, 2022, amounted to $10.06 billion, reflecting stable asset management[280]. - Total assets increased by 1.6% to $10,058.2 million as of September 30, 2022, compared to $9,899.7 million at December 31, 2021[297]. - The investment portfolio increased by $1.147 billion, or 128.0%, primarily due to purchases of agency mortgage-backed securities and US Treasury securities[290]. - Cash and due from banks decreased by $1.204 billion, reflecting cash used for securities purchases and loan disbursements[292]. - Total assets managed by OFG's trust division and retirement plan administration subsidiary amounted to $3.091 billion, down from $3.759 billion at December 31, 2021[293]. Capital Position - CET1 ratio improved to 13.38% as of September 30, 2022, up from 12.80% at June 30, 2022[246]. - The common equity tier 1 capital ratio decreased to 13.38% from 13.77% year-over-year, while the actual common equity tier 1 capital increased by 3.2% to $995.3 million[345][349]. - The total risk-based capital ratio decreased to 14.63% from 15.52% year-over-year, with total risk-based capital slightly increasing by 0.2% to $1.088 billion[345][349]. - The leverage capital ratio increased to 9.82% from 9.69% year-over-year, exceeding the minimum requirement of 4%[346][349]. - The market capitalization at the end of the period decreased by 9.3% to $1.195 billion from $1.318 billion[345]. Operational Efficiency - Total non-interest expenses increased by 10.9% to $87.5 million from $78.9 million, driven by higher information technology and employee compensation expenses[268]. - The efficiency ratio improved to 55.80% from 58.59% year-over-year, indicating better cost management[268]. - Average loans per employee increased to $2,981, up from $2,872 in the previous year, reflecting growth in the loan portfolio[268]. - Compensation and employee benefits increased by $5.5 million, driven by higher minimum wages and annual salaries[273]. Market Conditions - The Federal Reserve increased the federal funds rate six times in 2022, with the current target rate range at 3.75% to 4.00%[222]. - The Puerto Rico Economic Activity Index has been increasing for over a year, indicating a stable upward trend in the economy[223].