OFG Bancorp (NYSE:OFG) Q2 2024 Earnings Conference Call July 18, 2024 10:00 AM ET Company Participants Jose Rafael Fernandez - Chairman and Chief Executive Officer Maritza Arizmendi - Chief Financial Officer Cesar Ortiz - Chief Risk Officer Conference Call Participants Timur Braziler - Wells Fargo Brett Rabatin - Hovde Group Kelly Motta - KBW Operator Good morning. Thank you for joining OFG Bancorp's Conference Call. My name is Savannah, I will be your operator today. Our speakers are Jose Rafael Fernández, ...

Time Savings Demand 6/30/24 ■ Increase ■ Decrease ■ Total 14 OFGBancorp 2Q24 Deposit Balance Evolution: Retail vs. Commercial, Ex-Public Funds ($M) ■ Increase ■ Decrease ■ Total $7,984 12/31/23 $125 $8,028 $20 $7,956 $(48) $(53) Retail 3/31/24 Retail Commercial Commercial 6/30/24 12 Residential Mortgage Loans ($M) $1,669 $1,622 $1,604 $1,563 $1,519 $1,485 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 Portfolio New Loan Origination NPLs (excludes PCD) NCO Rate $20 $19 $17 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 $31 ...

This quarterly report represents an earnings surprise of 11.34%. A quarter ago, it was expected that this financial holding company would post earnings of $0.95 per share when it actually produced earnings of $1.05, delivering a surprise of 10.53%. OFG shares have added about 14.9% since the beginning of the year versus the S&P 500's gain of 17.2%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does th ...

José Rafael Fernández, Chief Executive Officer, said: "The second quarter continued to demonstrate the strength of our strategies and franchise. EPS-diluted increased 16.1% year-over-year on a 5.2% increase in total core revenues. We generated strong performance metrics through consistent growth; increased loans, deposits, and non-interest income; and stable credit quality. Our 'Digital First' strategy continues to help us expand our retail and business relationships through new and upgraded products, servi ...

OFG Bancorp (OFG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investors ...

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, 2024 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 ...

Financial Data and Key Metrics Changes - Total assets decreased by 2% quarter-over-quarter to $11.2 billion but increased by 11% year-over-year [4] - Earnings per share diluted increased by more than 9% year-over-year to $1.05, with total core revenues rising by close to 6% to $174.2 million [15] - Net interest margin was reported at 5.4%, with a provision for credit losses totaling $15.1 million [15][22] - Return on average assets was 1.77%, and return on average tangible common equity was 17.92% [20] Business Line Data and Key Metrics Changes - Total banking and financial service revenues were $30 million, down from $32 million in the previous quarter [8] - Mortgage banking revenues increased by $400,000 due to higher MSR valuation [8] - Average loan balances remained stable at $7.5 billion, with growth in auto and consumer loans offset by declines in commercial and residential mortgages [9] Market Data and Key Metrics Changes - Customer deposits totaled $9.5 billion, reflecting a significant increase due to $1.2 billion in public funds deposited [4][30] - Core deposit costs increased to 147 basis points from 107 basis points in the previous quarter [10] - The non-performing loan rate was reported at 1.10%, the lowest in the last five quarters [24] Company Strategy and Development Direction - The company continues to focus on its Digital First strategy, with 94% of routine retail transactions conducted through digital channels [5][31] - The strategy aims to enhance customer experience and operational efficiency while increasing staff dedicated to business development [6] - The company is optimistic about Puerto Rico's economic growth and plans to continue investing in technology and customer-friendly services [35][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic recovery of Puerto Rico, highlighting the influx of federal funds and private capital [46][51] - The company anticipates continued growth in loan production and expects net charge-offs to remain below pre-pandemic levels [49][64] - The effective tax rate is expected to decrease to 29% for the full year, reflecting a favorable business mix [95] Other Important Information - The CET1 ratio increased to 14.45% from 14.12% in the previous quarter [29] - The company announced a 14% increase in the quarterly cash dividend to $0.25 per share and a new $50 million stock repurchase authorization [29][62] - Non-interest expenses were reported at $91 million, down from the previous quarter, with an efficiency ratio of 52.49% [27] Q&A Session Summary Question: Impact of interest-bearing funds cost increase - Management acknowledged the impact of rising funding costs but clarified that the margin guidance is now 5.45% to 5.55% [39][42] Question: Credit quality and net charge-offs - Management noted that while net charge-offs are expected to increase, the auto portfolio has shown strong performance due to strategic improvements made in 2022 [43][44] Question: Economic developments in Puerto Rico - Management highlighted the positive flow of federal funds and private investments in Puerto Rico, contributing to economic growth [46][51] Question: Long-term growth strategy and capital deployment - Management confirmed ongoing investment in Puerto Rico while also exploring opportunities in the US market [63][130] Question: Consumer credit outlook - Management indicated that consumer credit trends are expected to remain stable, with no significant deterioration anticipated [78][79]

Core Non-Interest Income ($M) $8.3 $7.1 $8.2 $7.7 $10.0 $8.1 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 22 Income Statement Highlights: 1Q24 vs. 4Q23 | --- | --- | --- | --- | --- | |------------------------------------------------------------------------|-----------------|-----------------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

OFG Bancorp Reports 1Q24 Results José Rafael Fernández, Chief Executive Officer, said: "First quarter EPS-diluted increased 9.4% year-over-year on a 5.9% increase in total core revenues, reflecting an overall solid performance across all businesses in line with our plans. Our Digital First strategy continues to drive customer acquisition and engagement. Puerto Rico business activity and consumer liquidity looks good. Our balance sheet is well positioned for a higher for longer interest rate environment. Tha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or o 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 Rico 66-0538893 ( ...