EX-99 2 ex99.htm EX-99  

 

Exhibit 99

 

 

OFG Bancorp 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.

CEO Comment

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 Interest Expense 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 Credit Losses 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 Financial Service 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 Net Revenues were $56.3 million compared to $51.8 million in 2Q21 and $47.4 million in 3Q20.

Loans Held for Investment 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 57th 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 contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our September 30, 2021 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.

  
 

 

 

 

 

 

 

  

Table of Contents

  

 

 

 

 

Pages

  

 

 

 

 

 

 

  

 

OFG Bancorp (Consolidated Financial Information)

 

 

  

 

Table  1:

 

Financial and Statistical Summary - Consolidated

 

2-3

  

 

Table  2:

 

Consolidated Statements of Operations

 

4-5

  

 

Table  3:

 

Consolidated Statements of Financial Condition

 

6

  

 

Table  4:

 

Information on Loan Portfolio and Production

 

7-8

  

 

Table  5:

 

Average Balances, Net Interest Income and Net Interest Margin

 

9-10

  

 

Table  6:

 

Loan Information and Performance Statistics

 

11-13

  

 

Table  7:

 

Allowance for Credit Losses

 

14

  

 

Table  8:

 

Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital

 

15-16

  

 

Table  9:

 

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

 

 

  

 

 

 

  Financial Statements (Tables 1-8)

 

17

  

  

OFG Bancorp (NYSE: OFG)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1-1: Financial and Statistical Summary - Consolidated

 

 

 

2021

 

2021

 

2021

 

2020

 

2020

 

(Dollars in thousands, except per share data) (unaudited)

 

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

 

Statement of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

102,705

 

 $  

102,257

 

 $  

98,204

 

 $  

98,738

 

 $  

99,533

 

Non-interest income, net (core)

(2)

 

 

32,012

 

 

31,048

 

 

29,452

 

 

34,047

 

 

27,486

 

Total core revenues

 

 

 

134,717

 

 

133,305

 

 

127,656

 

 

132,785

 

 

127,019

 

Non-interest expense

 

 

 

78,924

(a)

 

82,676

 

 

77,666

 

 

89,039

 

 

83,444

 

Pre-provision net revenues

(22)

 

 

56,298

 

 

51,772

 

 

50,945

 

 

44,123

 

 

47,415

 

Total provision for credit losses

 

 

 

(4,997)

 

 

(8,305)

(d)

 

6,324

 

 

14,176

 

 

13,669

 

Net income before income taxes

 

 

 

61,295

 

 

60,077

 

 

44,621

 

 

29,947

 

 

33,746

 

Income tax expense

 

 

 

19,624

 

 

19,250

 

 

14,248

 

 

6,646

 

 

6,308

 

Net income available to common stockholders

 

 

 

41,671

 

 

40,827

 

 

29,118

 

 

21,673

 

 

25,810

 

Common Share Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share - basic

(3)

 

$

0.82

 

$

0.79

 

$

0.57

 

$

0.42

 

$

0.50

 

Earnings (loss) per common share - diluted

(4)

 

$

0.81

 

$

0.78

 

$

0.56

 

$

0.42

 

$

0.50

 

Average common shares outstanding

 

 

 

51,063

 

 

51,636

 

 

51,397

 

 

51,350

 

 

51,342

 

Average common shares outstanding and equivalents

 

 

 

51,516

 

 

52,048

 

 

51,752

 

 

51,618

 

 

51,527

 

Cash dividends per common share

 

 

$

0.12

 (b)   

$

0.08

 

$

0.08

 

$

0.07

 

$

0.07

 

Book value per common share (period end)

 

 

$

21.08

 

$

20.59

 

$

19.90

 

$

19.54

 

$

19.13

 

Tangible book value per common share (period end)

(5)

 

$

18.59

 

$

18.13

 

$

17.39

 

$

16.97

 

$

16.51

 

Balance Sheet (Average Balances)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

(6)

 

$

6,465,874

 

$

6,598,569

 

$

6,635,908

 

$

6,708,284

 

$

6,787,022

 

Interest-earning assets

 

 

 

9,879,687

 

 

9,726,905

 

 

9,358,377

 

 

9,270,739

 

 

9,218,717

 

Total assets

 

 

 

10,492,502

 

 

10,356,879

 

 

10,004,047

 

 

9,921,254

 

 

9,918,410

 

Core deposits

 

 

 

9,103,221

 

 

8,963,336

 

 

8,535,678

 

 

8,451,308

 

 

8,376,623

 

Total deposits

 

 

 

9,114,587

 

 

8,997,842

 

 

8,581,633

 

 

8,515,646

 

 

8,517,039

 

Interest-bearing 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' equity

 

 

 

1,068,618

 

 

1,083,452

 

 

1,101,046

 

 

1,083,423

 

 

1,062,460

 

Common stockholders' equity

 

 

 

1,066,361

 

 

1,046,835

 

 

1,019,176

 

 

1,001,553

 

 

980,590

 

Performance Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

(7)

 

 

4.12%

 

 

4.22%

 

 

4.26%

 

 

4.24%

 

 

4.30%

 

Return on average assets

(8)

 

 

1.59%

 

 

1.58%

 

 

1.21%

 

 

0.94%

 

 

1.11%

 

Return on average tangible common stockholders' equity

(9)

 

 

17.72%

 

 

17.78%

 

 

13.11%

 

 

9.99%

 

 

12.23%

 

Efficiency ratio

(10)

 

 

58.59%

 

 

62.02%

 

 

60.84%

 

 

67.06%

 

 

65.69%

 

Full-time equivalent employees, period end

 

 

 

2,274

 

 

2,231

 

 

2,238

 

 

2,275

 

 

2,332

 

Credit Quality Metrics

(1)(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

$

180,872

 

$

191,717

   (d)  

$

201,973

 

$

204,809

   (e)   

 $  

235,313

 

Allowance as a % of loans held for investment

 

 

 

2.82%

 

 

2.95%

 (d)  

 

3.06%

 

 

3.07%

 (e)   

 

3.48%

 

Net charge-offs

 

 

$

6,051

 (e)     

$

2,118

   (d)  

$

9,105

 

$

44,814

   (e)   

$

10,570

 

Net charge-off rate

(11)

 

 

0.37%

(e)  

 

0.13%

 (d)  

 

0.55%

 

 

2.67%

 (e)   

 

0.62%

 

Early delinquency rate (30 - 89 days past due)

 

 

 

2.06%

 

 

1.86%

   (d)  

 

2.15%

 

 

2.68%

 

 

2.50%

 

Total delinquency rate (30 days and over)

 

 

 

3.82%

 

 

3.90%

 (d)  

 

4.65%

 

 

5.74%

 

 

5.67%

 

Capital Ratios (Non-GAAP)

(12)(20)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leverage ratio

 

 

 

9.33%

(b)(c)

 

9.84%

(c)

 

10.48%

 

 

10.30%

 

 

10.00%

 

Common equity Tier 1 capital ratio

 

 

 

13.52%

  (b) 

 

13.95%

 

 

13.56%

 

 

13.08%

 

 

12.55%

 

Tier 1 risk-based capital ratio

 

 

 

14.03%

(b)(c)

 

14.70%

 (c)  

 

15.28%

 

 

14.78%

 

 

14.25%

 

Total risk-based capital ratio

 

 

 

15.28%

  (b)(c) 

 

15.95%

   (c)  

 

16.54%

 

 

16.04%

 

 

15.50%

 

Tangible common equity ("TCE") ratio

 

 

 

8.86%

 (b)  

 

9.06%

 

 

8.95%

 

 

9.00%

 

 

8.58%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) During 3Q 2021, foreclosed real estate and other repossessed assets (income) expenses benefited from gain in real estate owned sales.

(b) During 3Q 2021, the Company repurchased $40.2 million common stock from of our $50.0 million share buyback program and increased its common stock dividend to $0.12 per share.

(c) During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q 2021, the Company redeemed Series A and B Preferred Stock.

(d) During 2Q 2021 asset quality trends improved consistently.

(e) During 3Q 2021, the Company charged-off $6.5 million for a previously reserved amount on a commercial loan. During 4Q 2020, the Company charged-off $31.2 million for two commercial PCD loans.

2

OFG Bancorp (NYSE: OFG)

 

 

 

 

 

 

 

 

Table 1-2: Financial and Statistical Summary - Consolidated (Continued)

 

 

 

 

2021

 

2020

 

(Dollars in thousands, except per share data) (unaudited)

 

 

YTD

 

YTD

 

Statement of Operations

 

 

 

 

 

 

 

 

Net interest income

 

 

 $  

303,166

 

 $  

309,694

 

Non-interest income, net (core)

(2)

 

 

92,512

 

 

76,825

 

Total core revenues

 

 

 

395,678

 

 

386,519

 

Non-interest expense

 

 

 

239,266

 

 

256,247

 

Pre-provision net revenues

(22)

 

 

159,015

 

 

143,375

 

Total provision for credit losses

 

 

 

(6,978)

(b)

 

78,496

(c)

Net income before income taxes

 

 

 

165,993

 

 

64,879

 (c)   

Income tax expense

 

 

 

53,122

 

 

13,853

 

Net income available to common stockholders

 

 

 

111,616

 

 

46,142

 (c)   

Common Share Statistics

 

 

 

 

 

 

 

 

Earnings (loss) per common share - basic

(3)

 

$

2.18

 

$

0.90

 (c)   

Earnings (loss) per common share - diluted

(4)

 

$

2.15

 

$

0.89

(c)

Average common shares outstanding

 

 

 

51,364

 

 

51,361

 

Average common shares outstanding and equivalents

 

 

 

51,748

 

 

51,563

 

Cash dividends per common share

 

 

$

0.28

 (a)   

$

0.21

 

Book value per common share (period end)

 

 

$

21.08

 

$

19.13

 

Tangible book value per common share (period end)

(5)

 

$

18.59

 

$

16.51

 

Balance Sheet (Average Balances)

 

 

 

 

 

 

 

 

Loans

(6)

 

$

6,566,100

 

$

6,771,904

 

Interest-earning assets

 

 

 

9,656,838

 

 

8,874,886

 

Total assets

 

 

 

10,286,265

 

 

9,586,931

 

Core deposits

 

 

 

8,869,399

 

 

7,916,869

 

Total deposits

 

 

 

8,899,881

 

 

8,120,648

 

Interest-bearing deposits

 

 

 

6,364,459

 

 

6,133,437

 

Borrowings

 

 

 

99,941

 

 

177,189

 

Stockholders' equity

 

 

 

1,084,253

 

 

1,047,766

 

Common stockholders' equity

 

 

 

1,044,297

 

 

965,896

 

Performance Metrics

 

 

 

 

 

 

 

 

Net interest margin

(7)

 

 

4.20%

 

 

4.65%

 

Return on average assets

(8)

 

 

1.46%

 

 

0.71%

(c)

Return on average tangible common stockholders' equity

(9)

 

 

16.25%

 

 

7.44%

 (c)   

Efficiency ratio

(10)

 

 

60.47%

 

 

66.30%

 

Full-time equivalent employees, period end

 

 

 

2,274

 

 

2,332

 

Credit Quality Metrics

(1)(21)

 

 

 

 

 

 

 

Allowance for credit losses

 

 

$

180,872

 (b)   

$

235,313

 

Allowance as a % of loans held for investment

 

 

 

2.82%

(b)

 

3.48%

 

Net charge-offs

 

 

$

17,274

 (b)   

$

50,354

 

Net charge-off rate

(11)

 

 

0.35%

(b)

 

0.99%

 

Early delinquency rate (30 - 89 days past due)

 

 

 

2.06%

 (b)   

 

2.50%

 

Total delinquency rate (30 days and over)

 

 

 

3.82%

(b)

 

5.67%

 

 

 

 

 

 

 

 

 

 

(a) During 3Q 2021, the Company increased its common stock quarterly dividend to $0.12 per share, from $0.08 in 2Q 2021 and 1Q 2021, and $0.07 in 2020.

(b) During 2Q 2021 asset quality trends improved consistently.

(c) During 1Q 2020 and 2Q 2020, the Company increased its provision for credit losses by $34.1 million and $5 million, respectively, as a result of the Covid-19 pandemic. Core revenues were also negatively impacted by the pandemic during these quarters as a result of lockdown measures by the local Government.

3

OFG Bancorp (NYSE: OFG)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2-1: Consolidated Statements of Operations

 

 

 

 

Quarter Ended

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

(Dollars in thousands, except per share data) (unaudited)

 

 

2021

 

2021

 

2021

 

2020

 

2020

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Non-PCD loans

 

 

$

85,032

 

$

85,181

 

$

82,936

 

$

81,171

 

$

83,029

 

    PCD 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 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 expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Core 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 interest income

 

 

 

102,705

 

 

102,257

 

 

98,204

 

 

98,738

 

 

99,533

 

(Recapture) provision for credit losses, excluding PCD loans

(1)

 

 

(2,351)

 

 

(7,726)

 

 

2,998

 

 

15,464

 

 

13,845

 

(Recapture) provision for credit losses on PCD loans

 (1)  

 

 

(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 income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banking service revenues

 

 

 

18,198

 

 

18,248

 

 

16,493

 

 

16,901

 

 

16,297

 

Wealth management revenues

 

 

 

7,619

 

 

8,263

 

 

7,388

 

 

10,865

(d)

 

7,272

 

Mortgage 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 purchase from Scotiabank PR & USVI acquisition

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

3,465

 (e)   

Other 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 expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

 

33,745

 

 

32,919

 

 

32,618

 

 

30,921

 

 

31,955

 

Occupancy, equipment and infrastructure costs

 

 

 

12,078

 

 

12,528

 

 

13,128

 

 

12,064

 

 

11,943

 

General and administrative expenses

 

 

 

34,041

 

 

35,370

(c)

 

30,201

 

 

33,454

 

 

33,452

 

Foreclosed real estate and other repossessed assets (income) expenses

 

 

 

(2,163)

(a)

 

328

 

 

(50)

 

 

1,004

 

 

1,323

 

Merger and restructuring charges

 

 

 

-

 

 

-

 

 

-

 

 

10,092

 (f)  

 

2,681

 (f)  

COVID 19 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 before income taxes

 

 

 

61,295

 

 

60,077

 

 

44,621

 

 

29,947

 

 

33,746

 

Income tax expense

 

 

 

19,624

 

 

19,250

 

 

14,248

 

 

6,646

 

 

6,308

 

Net income

 

 

 

41,671

 

 

40,827

 

 

30,373

 

 

23,301

 

 

27,438

 

Less:  dividends on preferred stock

 

 

 

-

 

 

-

 

 

(1,255)

 

 

(1,628)

 

 

(1,628)

 

Net income available to common shareholders

 

 

$

41,671

 

$

40,827

 

$

29,118

 

$

21,673

 

$

25,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) During 3Q 2021, foreclosed real estate and other repossessed assets (income) expenses benefited from gain in real estate owned sales.

(b) During 2Q 2021 asset quality trends improved consistently.

(c) During 2Q 2021, includes a technology project write-down amounting to $2.2 million.

(d) During 4Q 2020, the Company recognized annual insurance contingent commissions amounting to $4.0 million.

(e) During 3Q 2020, the Company increased the Bargain purchase from Scotiabank PR & USVI acquisition by $3.5 million as part of remeasurement period adjustments.

(f) On December 31, 2019, the Company acquired Scotiabank's Puerto Rico and USVI operations, incurring in merger and restructuring charges of $2.7 million during 3Q 2020 and $10.1 million during 4Q 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

OFG Bancorp (NYSE: OFG)

 

 

 

 

 

 

 

 

Table 2-2: Consolidated Statements of Operations (Continued)

 

 

 

 

 

 

 

 

Nine-Months Ended

 

 

 

 

September 30,

 

September 30,

 

(Dollars in thousands, except per share data) (unaudited)

 

 

2021

 

2020

 

Interest income:

 

 

 

 

 

 

 

 

Loans

(1)

 

 

 

 

 

 

 

    Non-PCD loans

 

 

$

253,149

 

$

254,343

 

    PCD loans

 

 

 

73,060

 

 

92,671

(d)

           Total interest income from loans

 

 

 

326,209

 

 

347,014

 

Investment securities

 

 

 

10,375

 

 

13,312

 

           Total interest income

 

 

 

336,584

 

 

360,326

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

    Core 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 interest income

 

 

 

303,166

 

 

309,694

 

(Recapture) provision for credit losses, excluding PCD loans

(1)

 

 

(7,079)

 

 

70,023

 

Provision for credit losses on PCD loans

 (1)  

 

 

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 income:

 

 

 

 

 

 

 

 

Banking service revenues

 

 

 

52,939

 

 

45,678

 

Wealth management revenues

 

 

 

23,270

 

 

20,924

 

Mortgage banking activities

 

 

 

16,303

 

 

10,223

 

          Total banking and financial service revenues

 

 

 

92,512

 

 

76,825

(e)

Bargain purchase from Scotiabank PR & USVI acquisition

 

 

 

-

 

 

7,336

(f)

Other income, net

 

 

 

2,603

 

 

5,767

 

           Total non-interest income, net

 

 

 

95,115

 

 

89,928

 

Non-interest expense:

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

 

99,282

 

 

102,005

 

Occupancy, equipment and infrastructure costs

 

 

 

37,734

 

 

35,219

 

General and administrative expenses

 

 

 

99,612

 

 

101,978

 

Foreclosed real estate and other repossessed assets (income) expenses

 

 

 

(1,885)

 

 

6,763

 

Merger and restructuring charges

 

 

 

-

 

 

5,991

 (g)   

COVID 19 expenses

 

 

 

4,523

 

 

4,291

 

           Total non-interest expense

 

 

 

239,266

 

 

256,247

 

Income before income taxes

 

 

 

165,993

 

 

64,879

 

Income tax expense

 

 

 

53,122

 

 

13,853

 

Net income

 

 

 

112,871

 

 

51,026

 

Less:  dividends on preferred stock

 

 

 

(1,255)

 (c)   

 

(4,884)

 

Net income available to common shareholders

 

 

$

111,616

 

$

46,142

 

 

 

 

 

 

 

 

 

 

(a) During 2021, the Company had lower cost of core deposits, mainly from lower rates and time deposit maturities.

(b) During 2Q 2021 asset quality trends improved consistently.

(c) During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q 2021, the Company redeemed Series A and B Preferred Stock.

(d) During 2Q 2020 and 3Q 2020, the Company recognized interest recoveries on SOP loans acquired in the Scotiabank PR & USVI acquisition collected subsequently to the acquisition date amounting to $6.0 million and $469 thousand, respectively.

(e) During 1Q 2020 and 2Q2020, the Company increased its provision for credit losses by $34.1 million and $5 million, respectively, as a result of the Covid-19 pandemic. Core revenues were also negatively impacted by the pandemic during these quarters as a result of lockdown measures by the local Government.

(f) During 2Q 2020 and 3Q 2020, the Company increased the Bargain purchase from Scotiabank PR & USVI acquisition by $3.5 million and $3.5 million, respectively, as part of remeasurement period adjustments.

(g) On December 31, 2019, the Company acquired Scotiabank's Puerto Rico and USVI operations, incurring in merger and restructuring charges of $3.0 million during 2Q 2020 and $2.7 million during 3Q 2020.

 

 

 

 

 

 

 

 

 

5

OFG Bancorp (NYSE: OFG)

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 3: Consolidated Statements of Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

(Dollars in thousands) (unaudited)

 

 

2021

 

2021

 

2021

 

2020

 

2020

 

Cash and cash equivalents

 

 

$

2,755,691

 

$

2,767,693

 

$

2,409,416

 

$

2,155,577

 

$

2,283,050

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading securities

 

 

 

22

 

 

29

 

 

23

 

 

22

 

 

22

 

Investment securities available-for-sale, at fair value,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  with amortized cost of $497,450 (June 30, 2021 - $491,321;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  March 31, 2021 - $462,115; December 31, 2020 - $432,175;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   September 30, 2020 - $412,899;   no allowance for credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  losses for any period)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Mortgage-backed securities

 

 

 

494,727

 

 

487,014

 

 

457,673

 

 

432,935

 

 

329,719

 

    US 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 securities held-to-maturity, at amortized cost,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

no allowance for credit losses for any period

 

 

 

375,214

 

 

125,138

 

 

126,767

 

 

-

 

 

-

 

Federal Home Loan Bank (FHLB) stock, at cost

 

 

 

7,496

 

 

7,541

 

 

8,233

 

 

8,278

 

 

8,322

 

Other investments

 

 

 

10,434

 

 

9,168

 

 

5,557

 

 

3,962

 

 

2,205

 

          Total investments

 

 

 

902,273

 

 

643,495

 

 

611,589

 

 

458,700

 

 

434,364

 

Loans, net

 

 

 

6,282,485

 

 

6,354,040

 

 

6,432,079

 

 

6,501,259

 

 

6,579,140

 

Other assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

 

65,003

 

 

61,678

 

 

58,348

 

 

61,416

 

 

54,583

 

Deferred tax asset, net

 

 

 

128,663

 

 

144,799

 

 

154,540

 

 

162,478

 

 

178,957

 

Foreclosed real estate and repossessed properties

 

 

 

15,433

 

 

16,818

 

 

18,366

 

 

13,412

 

 

21,374

 

Premises 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 use assets

 

 

 

30,625

 

 

32,621

 

 

32,714

 

 

31,383

 

 

35,900

 

Core deposit, customer relationship intangible and other intangibles

 

 

 

38,545

 

 

40,995

 

 

43,445

 

 

45,896

 

 

48,650

 

Servicing asset

 

 

 

48,227

 

 

47,712

 

 

47,911

 

 

47,295

 

 

47,242

 

Accounts receivable and other assets

 

 

 

166,870

 

 

179,900

 

 

175,109

 

 

178,740

 

 

166,392

 

Total assets

 

 

$

10,606,865

 

$

10,461,813

 

$

10,153,342

 

$

9,826,011

 

$

10,018,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

$

5,531,124

 

$

5,337,691

 

$

4,889,759

 

$

4,619,395

 

$

4,689,512

 

Savings accounts

 

 

 

2,378,211

 

 

2,277,296

(c)

 

2,138,125

 

 

1,914,239

 

 

1,913,338

 

Time deposits

 

 

 

1,323,688

 

 

1,464,134

 

 

1,693,924

 

 

1,832,891

 

 

1,933,517

 

Brokered 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 from FHLB and other borrowings

 

 

 

62,934

 

 

63,867

 

 

65,013

 

 

66,268

 

 

66,781

 

Subordinated 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 liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities purchased but not yet received

 

 

 

31,565

 

 

-

 

 

-

 

 

-

 

 

-

 

Derivative liabilities

 

 

 

1,136

 

 

1,293

 

 

1,465

 

 

1,712

 

 

1,895

 

Acceptances outstanding

 

 

 

24,371

 

 

27,703

 

 

24,389

 

 

33,349

 

 

18,291

 

Lease liability

 

 

 

32,167

 

 

34,052

 

 

34,017

 

 

32,566

 

 

37,029

 

Accrued 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' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

-

(a)

 

24,000

(a)

 

92,000

 

 

92,000

 

 

92,000

 

Common stock

 

 

 

59,885

 

 

59,885

 

 

59,885

 

 

59,885

 

 

59,885

 

Additional paid-in capital

 

 

 

635,808

 

 

626,995

 

 

622,935

 

 

622,652

 

 

621,978

 

Legal surplus

 

 

 

114,485

 

 

110,235

 

 

106,165

 

 

103,269

 

 

101,233

 

Retained earnings 

 

 

 

375,729

 

 

352,001

 

 

322,202

 

 

300,096

 

 

284,053

 

Treasury stock, at cost

 

 

 

(140,862)

 (b)  

 

(100,719)

 

 

(100,994)

 

 

(102,949)

 

 

(103,095)

 

Accumulated 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) During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q 2021, the Company redeemed Series A and B Preferred Stock.

(b) During 3Q 2021, the Company repurchased $40.2 million common stock from our $50.0 million share buyback program.

(c) During 2Q 2021, money market deposit accounts amounting to $23.8 million were reclassified from brokered deposits to savings account, as a result of an FDIC exemption from the brokered deposit definition.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

OFG Bancorp (NYSE: OFG)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 4-1: Information on Loan Portfolio and Production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

(Dollars in thousands) (unaudited)

 

 

2021

 

2021

 

2021

 

2020

 

2020

 

Non-PCD:

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      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)

(23)

 

 

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:

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      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

(1)

 

 

(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 loans held for investment

 

 

 

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 loans held for sale

 

 

 

17,463

 

 

9,780

 

 

2,306

 

 

2,281

 

 

-

 

Total loans, net

 

 

$

6,282,485

 

$

6,354,040

 

$

6,432,079

 

$

6,501,259

 

$

6,579,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Portfolio Summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Loans 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)

(23)

 

 

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 loans held for sale

 

 

 

17,463

 

 

9,780

 

 

2,306

 

 

2,281

 

 

-

 

Total loans, net

 

 

$

6,282,485

 

$

6,354,040

 

$

6,432,079

 

$

6,501,259

 

$

6,579,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) During 4Q 2020, the Company charged-off $31.2 million for two commercial PCD loans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

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 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 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 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 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 rate spread

 

 

 

 

 

$

102,705

 

4.09

%

 

 

 

 

$

102,257

 

4.19

%

 

 

 

 

$

98,204

 

4.21

%

 

 

 

 

$

98,738

 

4.19

%

 

 

 

 

$

99,534

 

4.25

%

Net 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 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 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 interest-bearing liabilities

 

 

$

8,999,822

 

$

33,418

 

0.50

%

 

$

8,297,837

 

$

50,632

 

0.81

%

Interest rate spread

 

 

 

 

 

$

303,166

 

4.16

%

 

 

 

 

$

309,694

 

4.60

%

Net 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 Information and Performance Statistics (1)

 

 

 

 

 

 

 

2021

 

2021

 

2021

 

2020

 

2020

 

(Dollars in thousands) (unaudited)

 

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

 

Net Charge-offs

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Net Charge-offs

 

 

$

6,051

 

$

2,118

 

$

9,105

 

$

44,814

 

$

10,570

 

Net Charge-off Rates

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Loans Held For Investment

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) During 3Q 2021, the Company charged-off $6.5 million for a previously reserved amount on a commercial loan. During 4Q 2020, the Company charged-off $31.2 million for two commercial PCD loans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

  

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 real estate

 

 

 

13,904

 

 

15,093

 

 

15,598

 

 

11,596

 

 

19,456

 

Other 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 Information and Performance Statistics (1)

 

 

 

2021

 

2021

 

2021

 

2020

 

2020

(Dollars in thousands) (unaudited)

 

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

Nonperforming PCD Loans

(14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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 PCD Loans Held for Investment

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 in thousands) (unaudited)

 

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

Total Nonperforming Loans

(14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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 Loans Held for Investment

(21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) During 3Q 2021, the Company charged-off $6.5 million for a previously reserved amount on a commercial loan. During 4Q 2020, the Company charged-off $31.2 million for two commercial PCD loans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

  

  

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 coverage ratio

 

 

 

2.34%

 

 

1.90%

 

 

4.77%

 

 

4.24%

 

 

2.82%

Allowance 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: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital

 

In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and TCE ratio. The table below provides the details of the calculation of our regulatory capital and non-GAAP capital measures. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2021

 

2021

 

2020

 

2020

(Dollars in thousands) (unaudited)

 

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

Stockholders' Equity to Non-GAAP Tangible Common Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

$

1,053,665

(a)(b)

$

1,079,997

(a)

$

1,108,423

 

$

1,085,975

 

$

1,064,322

Less:  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 common equity

 

 

$

929,051

 

$

936,386

 

$

897,039

 

$

872,140

 

$

847,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

 

 

49,977

 

 

51,661

 

 

51,579

 

 

51,387

 

 

51,345

Tangible book value per common share (Non-GAAP)

 

 

$

18.59

 

$

18.13

 

$

17.39

 

$

16.97

 

$

16.51

Total Assets to Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets  

 

 

$

10,606,865

 

$

10,461,813

 

$

10,153,342

 

$

9,826,011

 

$

10,018,991

Less:  Intangible assets

 

 

 

(124,614)

 

 

(127,064)

 

 

(129,514)

 

 

(131,965)

 

 

(134,719)

Tangible assets (Non-GAAP)

 

 

$

10,482,251

 

$

10,334,749

 

$

10,023,828

 

$

9,694,046

 

$

9,884,272

Non-GAAP TCE Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

 

$

929,051

 

$

936,386

 

$

897,039

 

$

872,140

 

$

847,733

Tangible assets

 

 

 

10,482,251

 

 

10,334,749

 

 

10,023,828

 

 

9,694,046

 

 

9,884,272

TCE ratio

 

 

 

8.86%

 

 

9.06%

 

 

8.95%

 

 

9.00%

 

 

8.58%

Average Equity to Non-GAAP Average Tangible Common Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

 

$

1,068,618

(a)(b)

$

1,083,452

(a)

$

1,101,046

 

$

1,083,423

 

$

1,062,460

Less:  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 total common stockholders' equity

 

 

$

1,066,361

 

$

1,046,835

 

$

1,019,176

 

$

1,001,553

 

$

980,590

Less:  Average intangible assets

 

 

 

(125,723)

 

 

(128,311)

 

 

(130,767)

 

 

(133,542)

 

 

(136,138)

Average tangible common equity

 

 

$

940,638

 

$

918,524

 

$

888,409

 

$

868,011

 

$

844,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q 2021, the Company redeemed Series A and B Preferred Stock.

(b) During 3Q 2021, the Company repurchased $40.2 million common stock from of our $50.0 million share buyback program.

 

15

OFG Bancorp (NYSE: OFG)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)

 

 

 

 

 

 

BASEL III

 

 

 

 

Standardized

 

 

 

 

2021

 

2021

 

2021

 

2020

 

2020

 

(Dollars in thousands) (unaudited)

 

 

Q3

 

Q2

 

Q1

 

Q4

 

Q3

 

Regulatory Capital Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital

 

 

$

931,884

(b)

$

957,238

 

$

919,856

 

$

894,074

 

$

862,636

 

Tier 1 capital

 

 

 

966,884

(a)(b)

 

1,008,785

(a)

 

1,036,726

 

 

1,010,944

 

 

979,506

 

Total risk-based capital

(15)

 

 

1,053,184

(a)(b)

 

1,094,786

(a)

 

1,121,830

 

 

1,096,764

 

 

1,065,744

 

Risk-weighted assets

 

 

 

6,893,254

 

 

6,861,890

 

 

6,782,685

 

 

6,837,846

 

 

6,875,108

 

Regulatory Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio

(16)

 

 

13.52%

 

 

13.95%

 

 

13.56%

 

 

13.08%

 

 

12.55%

 

Tier 1 risk-based capital ratio

(17)

 

 

14.03%

 

 

14.70%

 

 

15.28%

 

 

14.78%

 

 

14.25%

 

Total risk-based capital ratio

(18)

 

 

15.28%

 

 

15.95%

 

 

16.54%

 

 

16.04%

 

 

15.50%

 

Leverage ratio

(19)

 

 

9.33%

 

 

9.84%

 

 

10.48%

 

 

10.30%

 

 

10.00%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

(1)

 

$

1,053,665

(a)(b)

$

1,079,997

(a)

$

1,108,423

 

$

1,085,975

 

$

1,064,322

 

Plus: CECL transition adjustment

(20)

 

 

29,111

 

 

31,471

 

 

33,637

 

 

34,646

 

 

33,494

 

Less:  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:    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 equity Tier 1 capital

 

 

 

931,884

 

 

957,238

 

 

919,856

 

 

894,074

 

 

862,636

 

Plus:  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 capital

 

 

 

966,884

 

 

1,008,785

 

 

1,036,726

 

 

1,010,944

 

 

979,506

 

Plus tier 2 capital:  Qualifying allowance for loan and lease losses

 

 

 

86,300

 

 

86,001

 

 

85,104

 

 

85,820

 

 

86,238

 

Total risk-based capital

 

 

$

1,053,184

 

$

1,094,786

 

$

1,121,830

 

$

1,096,764

 

$

1,065,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) During 3Q 2021, the Company redeemed Series D Preferred Stock. During 2Q 2021, the Company redeemed Series A and B Preferred Stock.

 

(b) During 3Q 2021, the Company repurchased $40.2 million common stock from of our $50.0 million share buyback program.

 

16

 

  

OFG Bancorp (NYSE: OFG)

 

 

 

Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

We used the terms "PCI" and "SOP" to refer to loans acquired with credit deterioration from the Scotiabank acquisition (December 31, 2019), the BBVAPR acquisition (December 18, 2012) and the Eurobank FDIC-Assisted acquisition (April 30, 2010), recorded at fair value at acquisition. On January 1, 2020, the Company implemented ASU No. 2016-13: Measurement of Credit Losses on Financial Instruments "(CECL)" using the modified retrospective approach. CECL replaces the concept of purchased credit impaired loans (PCI) with the concept of purchased financial assets with credit deterioration (PCD). PCD accounting is called ‘gross-up accounting’ because, at acquisition, an entity grosses up the amortized cost basis of the PCD asset for the initial estimate of credit losses. This Day 1 allowance for credit losses is established without an income statement effect. The Company elected to maintain previously existing pools on adoption, therefore the pool continues to be the unit of account, and the allowance and non-credit discount or premium is not allocated to the individual assets. These loans are not classified as delinquent or nonperforming even though the customer may be contractually past due because we expect that we will fully collect the carrying value of these loans.

(2)

Total banking and financial service revenues.

(3)

Calculated based on net income available to common shareholders divided by average common shares outstanding for the period.

(4)

Calculated based on net income available to common shareholders plus the preferred dividends on the convertible preferred stock, divided by total average common shares outstanding and equivalents for the period as if converted.

(5)

Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Table 9: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.

(6)

Information includes all loans held for investment, including PCD loans.

(7)

Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(8)

Calculated based on annualized income, net of tax, for the period divided by average total assets for the period.

(9)

Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period.

(10)

Calculated based on non-interest expense for the period divided by total net interest income and total banking and financial services revenues for the period.

(11)

Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(12)

Non-GAAP ratios. See "Table 9: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.

(13)

Production of new loans (excluding renewals).

(14)

Most PCD loans are considered to be performing due to the application of the accretion method, in which these loans will accrete interest income over the remaining life of the loans using estimated cash flow analyses. Therefore, they are not included as non-performing loans. PCD loan pools that are not accreting interest income are deemed to be non-performing loans and presented separately.

(15)

Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.

(16)

Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.

(17)

Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

(18)

Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.

(19)

Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.

(20)

In March 2020, in light of recent strains on the U.S. economy as a result of the coronavirus disease 2019 (COVID-19), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. In addition, for the first two years, a uniform 25% “scaling factor” is introduced to approximate the portion of the post day-one allowance attributable to CECL relative to the incurred loss methodology. The 25% scaling factor is calibrated to approximate an overall after-tax impact of differences in allowances under CECL vs the incurred loss methodology.

(21)

CECL replaces the concept of purchased credit impaired loans (PCI assets) with the concept of purchased financial assets with credit deterioration (PCD assets). An entity records a PCD asset at the purchase price plus the allowance for credit losses expected at the time of acquisition. Under this method, there is no credit loss expense affecting net income on acquisition. Changes in estimates of expected credit losses after acquisition are recognized as credit loss expense (or reversal of credit loss expense) in subsequent periods as they arise.

(22)

Pre-provision net revenues is a non-GAAP measure calculated based on net interest income plus total non-interest income, net, less total non-interest expenses for the period.

(23)

PPP loans are fully guaranteed by the SBA and risk-weighted at 0%.

 

 

 

 

 

 

 

 

 

 

 

 

 

17