OFG Bancorp (NYSE:OFG) Q3 2022 Earnings Conference Call October 20, 2022 10:00 AM ET Company Participants Jose Fernandez - Chief Executive Officer & Vice Chairman Maritza Arizmendi - Chief Financial Officer Conference Call Participants Alex Twerdahl - Piper Sandler Kelly Motta - KBW Brett Rabatin - Hovde Group Timur Braziler - Wells Fargo Securities Operator [Call starts abruplty] Higher yield. This accounted for 43% of the increase in net interest income. Two, the increase in higher-yielding investment sec ...

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 June 30, 2022 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 Ri ...

OFG Bancorp (NYSE:OFG) Q2 2022 Earnings Conference Call July 21, 2022 10:00 AM ET Company Participants Jose Fernandez - CEO & Vice Chair Maritza Arizmendi - CFO Conference Call Participants Brett Rabatin - Hovde Group Timur Braziler - Wells Fargo Alex Twerdahl - Piper Sandler Kelly Motta - KBW Operator Good morning. Thank you for joining the OFG Bancorp's Conference Call. My name is Katie and I will be your conference operator today. Our speakers are Jose Rafael Fernandez, Chief Executive Officer, and Vice ...

Quarterly Results 2Q22 Conference Call July 21, 2022 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 ...

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 For the quarterly period ended March 31, 2022 or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Indicate by c ...

OFG Bancorp (NYSE:OFG) Q1 2022 Earnings Conference Call April 21, 2022 10:00 AM ET Company Participants Jose Rafael Fernandez - CEO & Vice Chair Maritza Arizmendi - CFO Conference Call Participants Alex Twerdahl - Piper Sandler Kelly Motta - KBW Brett Rabatin - Hovde Group Timur Braziler - Wells Fargo Alex Twerdahl - Piper Sandler Operator Good morning. Thank you for joining OFG Bancorp's Conference Call. My name is Gretchen. I will be your operator today. Our speakers are Jose Rafael Fernandez, Chief Execu ...

Quarterly Results 1Q22 Conference Call April 21, 2022 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 ...

Financial Performance - OFG's diluted EPS for the fourth quarter of 2021 was $0.66, down from $0.81 in the third quarter of 2021 and up from $0.42 in the fourth quarter of 2020[230]. - Net income for 2021 was $146,151,000, representing a significant increase of 96.5% compared to $74,327,000 in 2020[244]. - Comprehensive income for 2021 was $140.289 million, up from $86.357 million in 2020, indicating a growth of 62.4%[405]. - Earnings per common share increased to $2.85 in 2021, up from $1.32 in 2020, representing a growth of 116.7%[403]. - Cash dividends declared per common share increased to $0.40 in 2021 from $0.28 in 2020, marking a 42.9% increase[244]. Revenue and Income - Total core revenues for the year ended December 31, 2021, were $536.6 million, compared to $519.3 million in 2020[241]. - Interest income for 2021 was $449,199,000, a decrease of 5.1% from $473,347,000 in 2020[244]. - Net interest income after provision for loan and lease losses increased to $407,149,000 in 2021 from $315,760,000 in 2020, reflecting a growth of 29%[244]. - Non-interest income rose to $133,210,000 in 2021, up 7.5% from $124,352,000 in 2020[244]. - Total non-interest income increased by 7.1%, reaching $133.2 million in 2021 compared to $124.4 million in 2020[259]. Assets and Liabilities - Total assets increased to $9,899,720,000 as of December 31, 2021, compared to $9,826,011,000 in 2020, reflecting a growth of approximately 0.74%[397]. - Total liabilities were $8.831 billion, a 1.0% increase from $8.740 billion in 2020[317]. - Customer deposits totaled $8.59 billion at December 31, 2021, a decrease of $641.3 million from the previous quarter[235]. - Total deposits increased to $8,603,118,000 in 2021, up from $8,415,640,000 in 2020, indicating an increase of about 2.23%[399]. Credit Quality - The provision for credit losses in the fourth quarter of 2021 was $7.2 million, which included $9.7 million related to the sale of past due loans[236]. - The non-performing loan rate decreased to 1.75% from 2.08% in the third quarter of 2021[236]. - Non-performing assets decreased by 22.1% to $129.0 million, representing 1.30% of total assets, compared to $165.6 million or 1.69% of total assets at December 31, 2020[295]. - The allowance for credit losses for loans was $156 million as of December 31, 2021, reflecting the company's assessment of credit risk[383]. - Total net credit losses decreased by 47.7% to $49,755,000 in 2021 from $95,167,000 in 2020[311]. Capital and Equity - Total stockholders' equity decreased slightly to $1,069,160,000 in 2021 from $1,085,975,000 in 2020[246]. - Common equity tier 1 capital ratio improved to 13.77%, up from 13.08% in 2020, reflecting an increase in retained earnings[325]. - Book value per common share increased to $21.54 in 2021, up from $19.54 in 2020, reflecting an increase of 10.2%[246]. - Market capitalization at the end of 2021 was $1.318 billion, a 38.4% increase from $952.716 million in 2020[325]. - The tangible common equity to tangible total assets ratio increased from 9.00% to 9.69% from 2020 to 2021[320]. Operational Efficiency - Total non-interest expenses decreased by 5.7% to $325.8 million in 2021 from $345.3 million in 2020[260]. - The efficiency ratio improved to 60.70% in 2021 from 66.49% in 2020, indicating better cost management[260]. - Average loans per average employee increased to $2,904 in 2021 from $2,831 in 2020, reflecting enhanced productivity[260]. - The average compensation per employee rose to $59.28 in 2021 from $55.76 in 2020, reflecting adjustments in employee remuneration[260]. Risk Management - OFG's credit risk management includes a comprehensive credit policy and proactive collection practices to mitigate potential losses[346]. - The company has established a Business Continuity Plan to manage operational disruptions, particularly those arising from the Covid-19 pandemic[363]. - OFG's liquidity risk management practices have been effective, allowing the company to navigate market stress from the Covid-19 pandemic[357]. - The Chief Risk and Compliance Officer oversees regulatory compliance and the implementation of a company-wide compliance program, including anti-money laundering measures[364]. - The company has faced increasing regulatory scrutiny, necessitating enhancements to its compliance procedures[364].

Financial Data and Key Metrics Changes - Fourth quarter diluted earnings per share was $0.66, down from $0.81 in the third quarter and up from $0.42 year-over-year [4] - Core revenues totaled $141 million, an increase of 5% quarter-over-quarter and 6% year-over-year [4] - Pre-provision net revenues were $56 million, similar to the third quarter but 26% greater than the previous year [5] - Total assets at year-end were $9.9 billion, with customer deposits declining by $641 million to $8.6 billion [6] - The CET1 ratio increased by 69 basis points, indicating a strong capital position [10] Business Line Data and Key Metrics Changes - Loan growth in priority areas included a 5% increase in commercial loans (excluding PPP), a 9% increase in consumer loans, and a 1% increase in auto loans [7] - New loan origination for the quarter was $633 million, reflecting strong demand across various loan types [7] - Total core revenue growth was driven by a $4.7 million increase in banking and wealth management revenue [13] Market Data and Key Metrics Changes - Customer deposits decreased due to withdrawals by government-related and institutional clients, partially offset by increased retail deposits [6] - Average loan balances totaled $6.5 billion, reflecting a decline of $14 million from the third quarter [16] - The net interest margin increased to 4.18%, driven by a decrease in the cost of interest paid [19] Company Strategy and Development Direction - The company is focused on digital transformation, enhancing customer experience, and investing in technology [11] - There is an emphasis on building a culture of excellence and customer service, with ongoing investments in talent and technology [11] - The company aims to leverage the economic momentum in Puerto Rico and deploy excess liquidity for loan growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the economic growth cycle in Puerto Rico, anticipating continued loan growth [23][30] - The exit from bankruptcy is expected to improve Puerto Rico's standing in the business community and facilitate infrastructure investments [39] - The company plans to maintain a strong capital return strategy while focusing on loan growth and community support [41] Other Important Information - The company completed a $50 million share buyback and increased its common stock dividend to $0.12 per share [10] - Non-interest expenses increased by $8 million, primarily due to investments in people and technology [5][14] - The efficiency ratio for the fourth quarter was 61.4%, up from 58.6% in the third quarter, with expectations to remain in the low 50% range in 2022 [15] Q&A Session Summary Question: Commentary on loan growth and expectations for the next quarters - Management confirmed strong commercial loan growth and expressed optimism for continued growth in 2022, particularly in consumer loans and commercial lending [30][33] Question: Expectations for PPP forgiveness and related fees - Management expects the remaining $87 million in PPP loans to be forgiven by mid-year, with $2.3 million in fees recognized this quarter [34][35] Question: Implications of exiting bankruptcy for the company - Exiting bankruptcy is seen as a positive development, allowing for infrastructure investments and improved access to markets [39] Question: Capital return expectations for 2022 - Management indicated no reason to expect a reduction in capital returns, with a focus on loan growth and maintaining dividends [40][41] Question: Impact of deposit decline on margin and future expectations - Management anticipates a gradual increase in margin due to changes in deposit mix and continued investment in loan balances [78] Question: Technology spending and its impact on expenses - Technology spending is expected to increase as part of the company's strategy to enhance customer service and operational efficiency [81]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 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 Incorporated in the Commonwealth of Puerto Rico, IRS Employer Identification ...