Exhibit 99
ofg_logo.jpg
OFG Bancorp Reports 3Q22 Results
SAN JUAN, Puerto Rico, October 20, 2022 – OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the third quarter ended September 30, 2022. EPS diluted was $0.87 compared to $0.84 in 2Q22 and $0.81 in 3Q21. Total core revenues were $156.8 million compared to $146.3 million in 2Q22 and $134.7 million in 3Q21. The regular quarterly cash dividend was increased to $0.20 per common share in 3Q22 from $0.15 in 2Q22 and $0.12 in 3Q21.
CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “This was OFG’s strongest quarter year to date, driven by total core revenue growth of 7.2% quarter-over-quarter. All our key performance metrics improved compared to 2Q22 and 3Q21, with return on average assets of 1.65%, return on average tangible common stockholders’ equity of 18.05%, and an efficiency ratio of 55.80%.

“Thanks to the resilience of our dedicated staff and our digital first banking model, OFG performed well, and we were able to fully support the needs of our customers under a very challenging environment following Hurricane Fiona. Our hearts go out to all those affected. Thankfully, business activity has begun to return to pre-hurricane levels. We look forward to seeing Puerto Rico’s economy continue its economic growth path.”

3Q22 Highlights

Net Interest Income of $126.5 million compared to $115.1 million in 2Q22 and $102.7 million in 3Q21. Net interest margin expanded to 5.23% from 4.80% in 2Q22 due to increased volume of loans and investments and FRB rate hikes.

Interest Income of $134.7 million compared to $122.2 million in 2Q22 and $112.1 million in 3Q21. Compared to 2Q22, 3Q22 interest income benefited from higher yields on higher average balances of loans and of investment securities, and higher average yields on lower cash balances.

Total Interest Expense of $8.2 million compared to $7.1 million in 2Q22 and $9.4 million in 3Q21. Compared to 2Q22, 3Q22 interest expense reflected a 4 basis point cost increase.

Non-Interest Income of $30.6 million compared to $36.2 million in 2Q22 and $32.5 million in 3Q21. Compared to 2Q22, 3Q22 banking service revenues declined $0.9 million due to Fiona’s effect on economic activity and fee waivers. 2Q22 included a $4.7 million gain on sale of a legacy branch building.

Pre-Provision Net Revenues of $69.6 million compared to $66.0 million in 2Q22 and $56.3 million in 3Q21.

Provision for Credit Losses of $7.1 million compared to $6.7 million in 2Q22 and a net benefit of $5.0 million in 3Q21. 3Q22 non-PCD provision included $8.0 million for higher auto and consumer loan balances and a $1.3 million increase in qualitative adjustment for anticipated Fiona-related


losses. 3Q22 PCD recapture of $2.8 million was due to reduced balances and improved performance of residential mortgage loans.

Credit Quality: Net charge offs were $11.3 million compared to $4.5 million in 2Q22 and $6.1 million in 3Q21. 3Q22 charge-offs included $6.6 million, of which $5.5 million was previously reserved for two commercial loans, and $5.5 million related to auto and consumer loans.

Non-Interest Expense of $87.5 million compared to $85.3 million in 2Q22 and $78.9 million in 3Q21. 3Q22 included $1.4 million Fiona related expenses and $0.6 million of expenses for real estate owned versus $1.4 million in income in 2Q22.

Loans Held for Investment (EOP) of $6.68 billion compared to $6.70 billion in 2Q22 and $6.41 billion in 3Q21. Loans declined 0.3% or $17.7 million from 2Q22, reflecting paydowns of residential mortgages and seasonal commercial lines of credit as well as PPP loan forgiveness, mostly offset by increases in auto and consumer loans. Year over year, loans increased 4.3% or $274.1 million.

New Loan Origination of $511.3 million compared to $587.2 million in 2Q22 and $556.2 million in 3Q21. 3Q22 included a record level of auto originations at $219.9 million.

Total Investments (EOP) of $2.04 billion compared to $1.73 billion in 2Q22 and $902.3 million in 3Q21. Investments grew $315.3 million from 2Q22 as OFG purchased $410.0 million in short-term US Treasury Notes, taking advantage of the higher yield environment.

Customer Deposits (EOP) of $8.84 billion compared to $9.02 billion in 2Q22 and $9.23 billion in 3Q21. 3Q22 core deposits declined $174.4 million from 2Q22.

Total Assets (EOP) of $10.06 billion compared to $10.25 billion in 2Q22 and $10.61 billion in 3Q21.

Capital: CET1 ratio of 13.34% compared to 12.80% in 2Q22 and 13.52% in 3Q21. Tangible book value per share of $18.46 compared to $18.86 in 2Q22 and $18.59 in 3Q21. The decline from 2Q22 reflected reduced other comprehensive income, partially offset by increased retained earnings.
Conference Call, Financial Supplement & Presentation

A conference call to discuss 3Q22 results, outlook and related matters will be held today at 10:00 AM ET. Phone (800) 225-9448 or (203) 518-9708. Conference ID: OFGQ322. The call can also be accessed live on  www.ofgbancorp.com with webcast replay shortly thereafter.
OFG’s Financial Supplement, with full financial tables for the quarter ended September 30, 2022, and the 3Q22 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; (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, 2021, 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 58th 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 www.ofgbancorp.com. 
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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, 2022 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.
Table of Contents
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OFG Bancorp (Consolidated Financial Information)
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OFG Bancorp (NYSE: OFG)
Table 1-1: Financial and Statistical Summary - Consolidated

2022
2022
2022
2021
2021
(Dollars in thousands, except per share data) (unaudited)
Q3
Q2
Q1
Q4
Q3
Statement of Operations
Net interest income $126,510(a)$115,094$105,194$104,199$102,701
Non-interest income, net (core)(2)30,29831,21431,20136,75132,016
Total core revenues(3)156,808(a)146,308136,395140,950134,717
Non-interest expense 87,49285,25881,15586,49078,924
Pre-provision net revenues(22)69,63866,04655,64555,80956,298
Total provision for (recapture of) credit losses 7,120(b)6,6911,5517,199(4,997)
Net income before income taxes 62,51859,35554,09448,61061,295
Income tax expense 20,59918,92316,57315,33019,624
Net income available to common stockholders 41,91940,43237,52133,28041,671
Common Share Statistics      
Earnings per common share - basic(4)$0.88$0.84$0.77$0.67$0.82
Earnings per common share - diluted(5)$0.87$0.84$0.76$0.66$0.81
Average common shares outstanding 47,55848,05348,96849,74651,063
Average common shares outstanding and equivalents 47,92648,38949,48450,29951,516
Cash dividends per common share $0.20(c)$0.15$0.15$0.12$0.12
Book value per common share (period end) $20.90$21.34$21.37$21.54$21.08
Tangible book value per common share (period end)(6)$18.46$18.86$18.90$19.08$18.59
Balance Sheet (Average Balances)      
Loans(7)$6,697,900$6,640,440$6,519,119$6,452,128$6,465,874
Interest-earning assets 9,597,6709,613,3279,540,2669,897,0739,879,687
Total assets 10,181,00010,207,57910,113,75010,418,27410,492,502
Core deposits 8,924,0898,946,5178,808,5479,084,2829,103,221
Total deposits 8,935,4558,957,8838,819,9139,095,6489,114,587
Interest-bearing deposits 6,296,1426,266,1876,271,9366,435,2466,474,977
Borrowings 27,27527,72644,26275,97098,943
Stockholders' equity 1,045,7921,032,2701,066,2781,066,7641,068,618
Common stockholders' equity 1,045,7921,032,2701,066,2781,066,7641,066,361
Performance Metrics      
Net interest margin(8)5.23 %(a)4.80 %4.47 %4.18 %4.12 %
Return on average assets(9)1.65 %1.58 %1.48 %1.28 %1.59 %
Return on average tangible common stockholders' equity(10)18.05 %17.70 %15.88 %14.11 %17.72 %
Efficiency ratio(11)55.80 %58.27 %59.50 %61.36 %58.59 %
Full-time equivalent employees, period end 2,247 2,230 2,244 2,269 2,274 
Credit Quality Metrics(1)     
Allowance for credit losses$155,162$159,039$157,075$155,937$180,872
Allowance as a % of loans held for investment2.32 %2.37 %2.40 %2.44 %2.82 %
Net charge-offs$11,347(d)$4,543$577$32,482$6,051
Net charge-off rate(12)0.68 %(d)0.27 %0.04 %2.01 %0.37 %
Early delinquency rate (30 - 89 days past due)2.75 %2.20 %1.97 %2.34 %2.06 %
Total delinquency rate (30 days and over)4.35 %3.68 %3.17 %3.71 %3.82 %
Capital Ratios (period end) (Non-GAAP)(13)(21)
Leverage ratio9.82 %9.46 %9.54 %9.69 %9.33 %
Common equity Tier 1 capital ratio13.34 %12.80 %13.24 %13.77 %13.52 %
Tier 1 risk-based capital ratio13.34 %12.80 %13.24 %14.27 %14.03 %
Total risk-based capital ratio14.59 %14.05 %14.49 %15.52 %15.28 %
Tangible common equity ("TCE") ratio8.83 %8.85 %9.14 %9.69 %8.86 %
(a)During 3Q 2022, the Company purchased $400 million short-term US Treasury Notes available for sale.
(b)During 3Q 2022, the non-PCD provision included a $1.3 million increase in qualitative adjustment for anticipated Fiona-related losses.
(c)During 3Q 2022, the Company increased its common stock quarterly dividend to $0.20 per share.
(d)During 3Q 2022, the Company charged-off $6.6 million, of which $5.5 million was previously reserved for two commercial loans; one was subsequently sold on October 7th, 2022. At September 30, 2022, this loan was included as held for sale and amounted $3.3 million.

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OFG Bancorp (NYSE: OFG)
Table 1-2: Financial and Statistical Summary - Consolidated (Continued)
September 2022
September 2021
(Dollars in thousands, except per share data) (unaudited)YTDYTD
Statement of Operations
Net interest income$346,798 (a)$303,150 
Non-interest income, net (core)(2)92,713 92,528 
Total core revenues(3)439,511 (a)395,678 
Non-interest expense253,905 239,266 
Pre-provision net revenues(22)191,329 159,015 
Total provision for (recapture of) credit losses15,362 (6,978)
Net income before income taxes175,967 165,993 
Income tax expense56,095 53,122 
Net income available to common stockholders119,872 111,616 
Common Share Statistics
Earnings per common share - basic(4)$2.49 $2.18 
Earnings per common share - diluted(5)$2.47 $2.15 
Average common shares outstanding48,188 (b)51,364 
Average common shares outstanding and equivalents48,594 (b)51,748 
Cash dividends per common share$0.50 (c)$0.28 
Book value per common share (period end)$20.90 $21.08 
Tangible book value per common share (period end)(6)$18.46 $18.59 
Balance Sheet (Average Balances)
Loans(7)$6,619,808 $6,566,100 
Interest-earning assets9,583,964 9,656,838 
Total assets10,163,386 10,286,265 
Core deposits8,893,473 8,869,399 
Total deposits8,904,839 8,899,881 
Interest-bearing deposits6,278,176 6,364,459 
Borrowings33,025 (d)99,941 
Stockholders' equity1,047,954 (b)1,084,253 
Common stockholders' equity1,047,954 (b)1,044,297 
Performance Metrics
Net interest margin(8)4.84 %4.20 %
Return on average assets(9)1.57 %1.46 %
Return on average tangible common stockholders' equity(10)17.20 %16.25 %
Efficiency ratio(11)57.77 %60.47 %
Full-time equivalent employees, period end2,247 2,274 
Credit Quality Metrics(1)
Allowance for credit losses$155,162 $180,872 
Allowance as a % of loans held for investment2.32 %2.82 %
Net charge-offs$16,467 $17,274 
Net charge-off rate(12)0.33 %0.35 %
Early delinquency rate (30 - 89 days past due)2.75 %2.06 %
Total delinquency rate (30 days and over)4.35 %3.82 %
(a)During the nine-month period ended September 30, 2022, the Company purchased $773 million mortgage backed securities available for sale, $400 million US Treasury Notes available for sale and $200 million US Treasury Notes held to maturity.
(b)During the nine-month period ended September 30, 2022, the Company repurchased $64.1 million of shares pursuant to its $100.0 million share buyback program.
(c)During the nine-month period ended September 30, 2022, the Company increased its common stock quarterly dividend to $0.15 per share for the first and second quarter and to $0.20 per share for the third quarter.
(d)During the nine-month period ended September 30, 2022, the Company redeemed all outstanding $36.1 million subordinated capital notes prior to maturity.





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OFG Bancorp (NYSE: OFG)
Table 2-1: Consolidated Statements of Operations
Quarter Ended
(Dollars in thousands, except per share data) (unaudited) September 30, 2022June 30, 2022March 31,
2022		December 31,
2021		September 30,
2021
Interest income: 
Loans(1)
Non-PCD loans $97,677 $91,788 $86,631 $84,914 $85,028 
PCD loans 18,563 19,569 20,934 22,660 22,905 
Total interest income from loans 116,240 111,357 107,565 107,574 107,933 
Investment securities 18,435 (a)10,865 5,384 5,036 4,202 
Total interest income 134,675 122,222 112,949 112,610 112,135 
Interest expense:
Deposits
Core deposits 7,978 6,935 7,033 7,830 8,681 
Brokered deposits 9 9 8 9 10 
Total deposits 7,987 6,944 7,041 7,839 8,691 
Borrowings 178 184 714 572 743 
Total interest expense 8,165 7,128 7,755 8,411 9,434 
Net interest income 126,510 115,094 105,194 104,199 102,701 
Provision for (recapture of) credit losses, excluding PCD loans(1)9,897 (b)12,486 8,399 (461)(2,351)
(Recapture of) provision for credit losses on PCD loans(1)(2,777)(5,795)(6,848)7,660 (2,646)
Total provision for (recapture of) credit losses 7,120 (b)6,691 1,551 7,199 (4,997)
Net interest income after provision for credit losses 119,390 108,403 103,643 97,000 107,698 
Non-interest income:      
Banking service revenues 17,234 18,141 17,562 18,770 18,200 
Wealth management revenues 8,173 8,270 7,857 11,774 7,619 
Mortgage banking activities 4,891 4,803 5,782 6,207 6,197 
Total banking and financial service revenues 30,298 31,214 31,201 36,751 32,016 
Other income, net 322 4,996 405 1,349 505 
Total non-interest income, net 30,620 36,210 31,606 38,100 32,521 
Non-interest expense:
Compensation and employee benefits 35,332 34,730 34,768 34,160 33,745 
Occupancy, equipment and infrastructure costs 12,638 12,861 11,916 12,424 12,078 
General and administrative expenses 37,523 39,071 35,953 41,028 35,264 
Foreclosed real estate and other repossessed assets (income) expenses 573 (1,404)(1,482)(1,122)(2,163)
Climate events expenses 1,426 (c)— — — — 
Total non-interest expense 87,492 85,258 81,155 86,490 78,924 
Income before income taxes 62,518 59,355 54,094 48,610 61,295 
Income tax expense 20,599 18,923 16,573 15,330 19,624 
Net income available to common shareholders $41,919 $40,432 $37,521 $33,280 $41,671 
(a)Refer to “(a)” in Table 1-1.
(b)Refer to “(b)” in Table 1-1.
(c)During 3Q 2022, the Company recognized $1.4 million expenses related to hurricane Fiona.




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OFG Bancorp (NYSE: OFG)
Table 2-2: Consolidated Statements of Operations (Continued)
(Dollars in thousands, except per share data) (unaudited)Nine-Month Period Ended
September 30, 2022
September 30, 2021
Interest income:
Loans(1)
Non-PCD loans$276,096 $253,133 
PCD loans59,066 73,060 
Total interest income from loans335,162 326,193 
Investment securities34,684 (a)10,375 
Total interest income369,846 336,568 
Interest expense:
Deposits
Core deposits21,946 30,978 
Brokered deposits26 197 
Total deposits21,972 31,175 
Borrowings1,076 2,243 
Total interest expense23,048 33,418 
Net interest income346,798 303,150 
Provision for (recapture of) credit losses, excluding PCD loans(1)30,782 (7,079)
(Recapture of) provision for credit losses on PCD loans(1)(15,420)101 
Total provision for (recapture of) credit losses15,362 (b)(6,978)
Net interest income after provision for credit losses331,436 310,128 
Non-interest income:  
Banking service revenues52,937 52,948 
Wealth management revenues24,300 23,270 
Mortgage banking activities15,476 16,310 
Total banking and financial service revenues92,713 92,528 
Other income, net5,723 (c)2,603 
Total non-interest income, net98,436 95,131 
Non-interest expense:
Compensation and employee benefits104,830 99,282 
Occupancy, equipment and infrastructure costs37,415 37,734 
General and administrative expenses112,547 (d)104,135 
Foreclosed real estate and other repossessed assets (income) expenses(2,313)(1,885)
Climate events expenses1,426 (e)— 
Total non-interest expense253,905 239,266 
Income before income taxes175,967 165,993 
Income tax expense56,095 53,122 
Net income119,872 112,871 
Less:  dividends on preferred stock— (1,255)
Net income available to common shareholders$119,872 $111,616 
(a)Refer to “a” in Table 1-2.
(b)During the nine-month period ended September 30, 2022, the Company grew its loan portfolio balances, requiring higher provision for credit losses, among other factors evaluated.
(c)During the nine-month period ended September 30, 2022, the Company recognized $4.6 million in other income from the sale of a legacy branch building.
(d)During the nine-month period ended September 30, 2022, the Company recognized $2.3 million higher costs in electronic banking and $4.9 million higher compliance-related professional expenses due to greater levels of business activity.
(e)Refer to “c” in Table 2-1.


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OFG Bancorp (NYSE: OFG)
Table 3: Consolidated Statements of Financial Condition
(Dollars in thousands) (unaudited)
September 30, 2022
June 30, 2022
March 31, 2022
December 31, 2021
September 30, 2021
Cash and cash equivalents$815,433 (a)$1,307,281 $1,855,729 $2,023,650 $2,755,691 
Investments:
Trading securities11 13 18 20 22 
Investment securities available-for-sale, at fair value, no allowance for credit losses for any period
Mortgage-backed securities1,075,838 1,146,459 867,191 496,310 494,727 
US treasury notes401,414 (a)10,733 10,763 10,825 10,875 
Other investment securities1,157 2,378 2,384 3,578 3,505 
Total investment securities available-for-sale1,478,409 (a)1,159,570 880,338 510,713 509,107 
Investment securities held-to-maturity, at amortized cost, no allowance for credit losses for any period
Mortgage-backed securities343,549 351,016 359,806 367,507 375,214 
US treasury notes197,225 196,816 — — — 
Total investment securities held-to-maturity540,774 547,832 359,806 367,507 375,214 
Equity securities23,372 19,848 18,556 17,578 17,930 
Total investments2,042,566 (a)1,727,263 1,258,718 895,818 902,273 
Loans, net6,591,028 6,585,210 6,449,130 6,329,311 6,282,485 
Other assets:
Prepaid expenses69,535 65,327 56,513 60,856 65,003 
Deferred tax asset, net66,121 76,101 87,608 99,063 128,663 
Foreclosed real estate and repossessed properties17,868 17,594 17,922 16,984 15,433 
Premises and equipment, net106,025 101,848 97,403 92,124 86,981 
Goodwill86,069 86,069 86,069 86,069 86,069 
Other intangibles29,662 31,800 33,947 36,093 38,545 
Right of use assets26,192 27,699 28,576 28,846 30,625 
Servicing asset50,061 49,280 49,446 48,973 48,227 
Accounts receivable and other assets157,619 172,302 169,059 181,933 166,870 
Total assets$10,058,179 $10,247,774 $10,190,120 $9,899,720 $10,606,865 
Deposits:
Demand deposits$5,416,309 $5,459,104 $5,504,640 $5,204,340 $5,531,124 
Savings accounts2,345,673 2,433,819 2,295,113 2,177,780 2,378,211 
Time deposits1,081,769 1,125,276 1,167,103 1,209,627 1,323,688 
Brokered deposits11,366 11,371 11,366 11,371 11,366 
Total deposits8,855,117 9,029,570 8,978,222 8,603,118 9,244,389 
Borrowings:     
Advances from FHLB and other borrowings27,263 27,618 28,035 28,488 62,934 
Subordinated capital notes— — — 36,083 36,083 
Total borrowings27,263 27,618 28,035 64,571 99,017 
Other liabilities:     
Securities purchased but not yet received— — — — 31,565 
Acceptances outstanding29,245 27,150 29,858 35,329 24,371 
Lease liability28,114 29,538 30,287 30,498 32,167 
GNMA buy-back option program liability(23)29,050 33,431 9,664 14,511 19,944 
Accrued expenses and other liabilities95,523 85,655 74,019 82,533 101,747 
Total liabilities9,064,312 9,232,962 9,150,085 8,830,560 9,553,200 
Stockholders' equity:
Common stock59,885 59,885 59,885 59,885 59,885 
Additional paid-in capital635,523 634,612 633,796 637,061 635,808 
Legal surplus129,429 125,365 121,389 117,677 114,485 
Retained earnings 484,057 455,590 426,320 399,949 375,729 
Treasury stock, at cost(211,138)(211,138)(180,717)(150,572)(140,862)
Accumulated other comprehensive income, net(103,889)(49,502)(20,638)5,160 8,620 
Total stockholders' equity993,867 1,014,812 1,040,035 1,069,160 1,053,665 
Total liabilities and stockholders' equity$10,058,179 $10,247,774 $10,190,120 $9,899,720 $10,606,865 
(a)Refer to “(a)” in Table 1-1.


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OFG Bancorp (NYSE: OFG)
Table 4-1: Information on Loan Portfolio and Production
(Dollars in thousands) (unaudited)
September 30, 2022
June 30, 2022
March 31, 2022
December 31, 2021
September 30, 2021
Non-PCD:(1)
Mortgage$650,781 $675,324 $694,613 $704,337 $731,445 
Mortgage GNMA buy-back option program(23)29,050 33,431 9,664 14,511 19,944 
Commercial2,363,299 2,388,281 2,256,011 2,088,106 1,954,804 
Commercial Paycheck Protection Program (PPP Loans)(24)14,082 33,304 53,277 86,889 136,698 
Consumer520,183 498,404 454,959 408,759 373,672 
Auto1,877,945 1,791,052 1,732,859 1,693,029 1,667,113 
5,455,340 5,419,796 5,201,383 4,995,631 4,883,676 
Less:  Allowance for credit losses(142,417)(143,896)(137,344)(132,065)(138,874)
Total non- PCD loans held for investment, net5,312,923 5,275,900 5,064,039 4,863,566 4,744,802 
PCD:(1)
Mortgage1,059,448 1,099,097 1,144,364 1,188,423 1,270,854 
Commercial162,287 174,282 190,626 204,335 239,554 
Consumer738 698 833 916 959 
Auto7,152 8,788 10,765 13,281 15,820 
1,229,625 1,282,865 1,346,588 1,406,955 1,527,187 
Less:  Allowance for credit losses(1)(12,745)(15,143)(19,731)(23,872)(41,998)
Total PCD loans held for investment, net1,216,880 1,267,722 1,326,857 1,383,083 1,485,189 
Total loans held for investment6,529,803 6,543,622 6,390,896 6,246,649 6,229,991 
Mortgage loans held for sale43,262 26,947 26,761 51,096 35,031 
Other loans held for sale17,963 (a)14,641 31,473 31,566 17,463 
Total loans, net$6,591,028 $6,585,210 $6,449,130 $6,329,311 $6,282,485 
Loan Portfolio Summary:
Loans held for investment:
Mortgage$1,710,229 $1,774,421 $1,838,977 $1,892,760 $2,002,299 
Mortgage GNMA buy-back option program(23)29,050 33,431 9,664 14,511 19,944 
Commercial2,525,586 2,562,563 2,446,637 2,292,441 2,194,358 
Commercial Paycheck Protection Program (PPP Loans)(24)14,082 33,304 53,277 86,889 136,698 
Consumer520,921 499,102 455,792 409,675 374,631 
Auto1,885,097 1,799,840 1,743,624 1,706,310 1,682,933 
6,684,965 6,702,661 6,547,971 6,402,586 6,410,863 
Less:  Allowance for credit losses(155,162)(159,039)(157,075)(155,937)(180,872)
Total loans held for investment, net6,529,803 6,543,622 6,390,896 6,246,649 6,229,991 
Mortgage loans held for sale43,262 26,947 26,761 51,096 35,031 
Other loans held for sale17,963 (a)14,641 31,473 31,566 17,463 
Total loans, net$6,591,028 $6,585,210 $6,449,130 $6,329,311 $6,282,485 

(a)Refer to “(d)” in Table 1-1.
7

OFG Bancorp (NYSE: OFG)
Table 4-2: Information on Loan Portfolio and Production
  Quarter EndedNine-Month Period Ended
(Dollars in thousands) (unaudited)
September 30, 2022
June 30, 2022
March 31, 2022
December 31, 2021
September 30, 2021
September 30, 2022
September 30, 2021
Loan production(14)
Mortgage $38,945 $62,835 $63,883 $78,991 $85,535 $165,663 $285,223 
Commercial 123,429 143,796 175,531 238,356 154,146 442,756 456,391 
Commercial PPP Loans — — — — 16 — 158,994 
Commercial US Loans 55,984 90,952 108,390 79,264 100,066 255,326 254,429 
Consumer 73,045 96,571 97,108 80,688 50,630 266,724 116,160 
Auto 219,910 193,031 178,288 155,390 165,854 591,229 486,315 
Total $511,313 $587,185 $623,200 $632,689 $556,247 $1,721,698 $1,757,512 
8

OFG Bancorp (NYSE: OFG)
Table 5-1: Average Balances, Net Interest Income and Net Interest Margin
2022 Q3
2022 Q2
2022 Q1
2021 Q4
2021 Q3
(Dollars in thousands) (unaudited)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest earning assets:
Cash equivalents$1,016,561 $5,661 2.21 %$1,546,036 $2,984 0.77 %$2,072,112 $929 0.18 %$2,553,118 $944 0.15 %$2,699,144 $986 0.14 %
Investment securities1,883,209 12,774 2.71 %1,426,851 7,881 2.21 %949,035 4,455 1.88 %891,827 4,092 1.84 %714,669 3,216 1.80 %
Loans held for investment
(1)
Non-PCD loans5,428,852 97,677 7.14 %5,315,401 91,788 6.93 %5,113,715 86,631 6.87 %4,953,279 84,914 6.80 %4,899,312 85,028 6.89 %
PCD loans1,269,048 18,563 5.85 %1,325,039 19,569 5.91 %1,405,404 20,934 5.96 %1,498,849 22,660 6.05 %1,566,562 22,905 5.85 %
Total loans6,697,900 116,240 6.89 %6,640,440 111,357 6.73 %6,519,119 107,565 6.69 %6,452,128 107,574 6.62 %6,465,874 107,933 6.62 %
Total interest-earning assets$9,597,670 $134,675 5.57 %$9,613,327 $122,222 5.10 %$9,540,266 $112,949 4.80 %$9,897,073 $112,610 4.51 %$9,879,687 $112,135 4.50 %
Interest bearing liabilities:          
Deposits          
NOW accounts$2,799,234 $2,927 0.41 %$2,811,396 $2,174 0.31 %$2,813,037 $2,140 0.31 %$2,792,966 $2,239 0.32 %$2,754,985 $2,288 0.33 %
Savings accounts2,388,072 1,733 0.29 %2,296,903 1,289 0.23 %2,248,193 1,198 0.22 %2,359,959 1,289 0.22 %2,330,121 1,639 0.28 %
Time deposits1,097,470 1,679 0.61 %1,146,522 1,834 0.64 %1,199,340 2,057 0.70 %1,270,955 2,464 0.77 %1,378,505 2,916 0.84 %
Brokered deposits11,366 9 0.30 %11,366 9 0.30 %11,366 8 0.30 %11,366 9 0.30 %11,366 10 0.34 %
 6,296,142 6,348 0.40 %6,266,187 5,306 0.34 %6,271,936 5,403 0.35 %6,435,246 6,001 0.37 %6,474,977 6,853 0.42 %
Non-interest bearing deposit accounts2,639,313 — — 2,691,696 — — 2,547,977 — — 2,660,402 — — 2,639,610 — — 
Fair value premium and core deposit intangible amortization— 1,639 — — 1,638 — — 1,638 — — 1,838 — — 1,838 — 
Total deposits8,935,455 7,987 0.35 %8,957,883 6,944 0.31 %8,819,913 7,041 0.32 %9,095,648 7,839 0.34 %9,114,587 8,691 0.38 %
Borrowings
Advances from FHLB and other borrowings27,275 178 2.59 %27,726 184 2.66 %28,184 193 2.77 %39,887 279 2.78 %62,860 450 2.84 %
Subordinated capital notes— — — %— — — %16,078 521 13.15 %36,083 293 3.23 %36,083 293 3.21 %
Total borrowings27,275 178 2.59 %27,726 184 2.66 %44,262 714 6.54 %75,970 572 2.99 %98,943 743 2.98 %
Total interest-bearing liabilities$8,962,730 $8,165 0.36 %$8,985,609 $7,128 0.32 %$8,864,175 $7,755 0.35 %$9,171,618 $8,411 0.36 %$9,213,530 $9,434 0.41 %
Interest rate spread $126,510 5.21 % $115,094 4.78 % $105,194 4.45 % $104,199 4.15 % $102,701 4.09 %
Net interest margin  5.23 %  4.80 %  4.47 %  4.18 %  4.12 %
Core deposits: (Non-GAAP)               
Deposits               
NOW accounts$2,799,234 $2,927 0.41 %$2,811,396 $2,174 0.31 %$2,813,037 $2,140 0.31 %$2,792,966 $2,239 0.32 %$2,754,985 $2,288 0.33 %
Savings accounts2,388,072 1,733 0.29 %2,296,903 1,289 0.23 %2,248,193 1,198 0.22 %2,359,959 1,289 0.22 %2,330,121 1,639 0.28 %
Time deposits1,097,470 1,679 0.61 %1,146,522 1,834 0.64 %1,199,340 2,057 0.70 %1,270,955 2,464 0.77 %1,378,505 2,916 0.84 %
 6,284,776 6,339 0.40 %6,254,821 5,297 0.34 %6,260,570 5,395 0.35 %6,423,880 5,992 0.37 %6,463,611 6,843 0.42 %
Non-interest bearing deposit accounts2,639,313 — — 2,691,696 — — 2,547,977 — — 2,660,402 — — 2,639,610 — — 
Total core deposits$8,924,089 $6,339 0.28 %$8,946,517 $5,297 0.24 %$8,808,547 $5,395 0.25 %$9,084,282 $5,992 0.26 %$9,103,221 $6,843 0.30 %

9

OFG Bancorp (NYSE: OFG)
Table 5-2: Average Balances, Net Interest Income and Net Interest Margin (Continued)
2022 YTD2021 YTD
(Dollars in thousands) (unaudited)Average
Balance		Interest
Income/
Expense		Yield/
Rate		Average
Balance		Interest
Income/
Expense		Yield/
Rate
Interest earning assets:
Cash equivalents$1,541,036 $9,574 0.83 %$2,476,139 $2,287 0.12 %
Investment securities1,423,120 25,110 2.35 %614,599 8,088 1.75 %
Loans held for investment(1)
Non-PCD loans5,287,144 276,096 6.98 %4,910,218 253,133 6.89 %
PCD loans1,332,664 59,066 5.91 %1,655,882 73,060 5.88 %
Total loans6,619,808 335,162 6.77 %6,566,100 326,193 6.64 %
Total interest-earning assets$9,583,964 $369,846 5.16 %$9,656,838 $336,568 4.66 %
Interest bearing liabilities:
Deposits
NOW accounts$2,807,838 $7,241 0.34 %$2,566,201 $6,940 0.36 %
Savings accounts2,311,568 4,220 0.24 %2,191,316 5,859 0.36 %
Time deposits1,147,404 5,570 0.65 %1,576,460 12,664 1.07 %
Brokered deposits11,366 26 0.30 %30,482 197 0.86 %
6,278,176 17,057 0.36 %6,364,459 25,660 0.54 %
Non-interest bearing deposit accounts2,626,663 — — 2,535,422 — — %
Fair value premium and core deposit intangible amortization— 4,915 — — 5,515 — 
Total deposits8,904,839 21,972 0.33 %8,899,881 31,175 0.47 %
Borrowings
Advances from FHLB and other borrowings27,725 555 2.67 %63,858 1,361 2.85 %
Subordinated capital notes5,300 521 13.15 %36,083 882 3.26 %
Total borrowings33,025 1,076 4.35 %99,941 2,243 3.00 %
Total interest-bearing liabilities$8,937,864 $23,048 0.34 %$8,999,822 $33,418 0.50 %
Interest rate spread$346,798 4.82 %$303,150 4.16 %
Net interest margin 4.84 %4.20 %
Core deposits: (Non-GAAP)
Deposits
NOW accounts$2,807,838 $7,241 0.34 %$2,566,201 $6,940 0.36 %
Savings accounts2,311,568 4,220 0.24 %2,191,316 5,859 0.36 %
Time deposits1,147,404 5,570 0.65 %1,576,460 12,664 1.07 %
6,266,810 17,031 0.36 %6,333,977 25,463 0.54 %
Non-interest bearing deposit accounts2,626,663 — — %2,535,422 — — %
Total core deposits$8,893,473 $17,031 0.26 %$8,869,399 $25,463 0.38 %
10

OFG Bancorp (NYSE: OFG)
Table 6-1: Loan Information and Performance Statistics (1)
20222022202220212021
(Dollars in thousands) (unaudited)Q3Q2Q1Q4Q3
Net Charge-offs
Non-PCD
Mortgage:
Charge-offs$14 $259 $3 $4,573 $160 
Recoveries(280)(335)(2,074)(416)(419)
Total mortgage(266)(76)(2,071)4,157 (259)
Commercial:
Charge-offs6,485 (a)2,907 544 550 7,518 
Recoveries(214)(456)(192)(418)(558)
Total commercial6,271 2,451 352 132 6,960 
Consumer:     
Charge-offs4,163 3,307 2,659 2,144 2,370 
Recoveries(732)(795)(655)(743)(894)
Total consumer3,431 2,512 2,004 1,401 1,476 
Auto:     
Charge-offs7,964 6,428 7,890 7,288 4,989 
Recoveries(5,674)(5,565)(4,891)(6,282)(5,874)
Total auto2,290 863 2,999 1,006 (885)
Total$11,726 $5,750 $3,284 $6,696 $7,292 
PCD
Mortgage:
Charge-offs$270 $183 $1,134 $15,010 $1,008 
Recoveries(191)(1,026)(845)(452)(641)
Total mortgage79 (843)289 14,558 367 
Commercial:     
Charge-offs23 — 34 12,123 68 
Recoveries(268)(249)(3,023)(746)(1,316)
Total commercial(245)(249)(2,989)11,377 (1,248)
Consumer:     
Charge-offs9 8 39 — — 
Recoveries(47)(13)(23)(42)(219)
Total consumer(38)(5)16 (42)(219)
Auto:     
Charge-offs56 75 114 140 124 
Recoveries(231)(185)(137)(247)(265)
Total auto(175)(110)(23)(107)(141)
Total$(379)$(1,207)$(2,707)$25,786 $(1,241)
Total Net Charge-offs$11,347 $4,543 $577 $32,482 $6,051 
Net Charge-off Rates     
Mortgage-0.04 %-0.20 %-0.38 %3.79 %0.02 %
Commercial0.94 %(a)0.34 %-0.43 %1.95 %0.97 %
Consumer2.52 %1.98 %1.75 %1.29 %1.26 %
Auto0.46 %0.17 %0.69 %0.21 %-0.25 %
Total0.68 %0.27 %0.04 %2.01 %0.37 %
Average Loans Held For Investment     
Mortgage$1,757,897 $1,809,228 $1,885,159 $1,972,889 $2,047,272 
Commercial2,560,849 2,555,575 2,450,177 2,362,120 2,360,642 
Consumer538,898 506,588 461,890 421,824 400,582 
Auto1,840,256 1,769,049 1,721,893 1,695,295 1,657,378 
Total$6,697,900 $6,640,440 $6,519,119 $6,452,128 $6,465,874 
(a)Refer to “(d)” in Table 1-1.



11

OFG Bancorp (NYSE: OFG)
Table 6-2: Loan Information and Performance Statistics (Excludes PCD Loans) (1)
20222022202220212021
(Dollars in thousands) (unaudited)Q3Q2Q1Q4Q3
Early Delinquency (30 - 89 days past due)     
Mortgage$15,769 $13,941 $13,788 $16,565 $15,233 
Commercial13,223 6,001 2,600 4,736 4,150 
Consumer9,280 7,766 6,485 5,273 4,985 
Auto111,637 91,407 79,491 90,272 76,262 
Total $149,909 $119,115 $102,364 $116,846 $100,630 
Early Delinquency Rates (30 - 89 days past due)     
Mortgage2.32 %1.97 %1.96 %2.30 %2.03 %
Commercial0.56 %0.25 %0.12 %0.23 %0.21 %
Consumer1.78 %1.56 %1.43 %1.29 %1.33 %
Auto5.94 %5.10 %4.59 %5.33 %4.57 %
Total2.75 %2.20 %1.97 %2.34 %2.06 %
Total Delinquency (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation$39,577 $36,178 $39,004 $45,521 $58,146 
GNMA's buy-back option program(23)29,050 33,431 9,664 14,511 19,944 
Total mortgage68,627 69,609 48,668 60,032 78,090 
Commercial24,343 13,243 16,061 14,129 13,742 
Consumer11,956 9,744 8,446 7,246 6,987 
Auto132,507 106,637 91,855 103,733 87,672 
Total$237,433 $199,233 $165,030 $185,140 $186,491 
Total Delinquency Rates (30 days and over past due)
Mortgage:
Traditional, Non traditional, and Loans under Loss Mitigation5.82 %5.10 %5.54 %6.33 %7.74 %
GNMA's buy-back option program(23)4.27 %4.72 %1.37 %2.02 %2.65 %
Total mortgage10.09 %9.82 %6.91 %8.35 %10.39 %
Commercial1.03 %0.55 %0.71 %0.68 %0.70 %
Consumer2.30 %1.96 %1.86 %1.77 %1.87 %
Auto7.06 %5.95 %5.30 %6.13 %5.26 %
Total4.35 %3.68 %3.17 %3.71 %3.82 %
Nonperforming Assets(15)
Mortgage$33,225 $33,344 $36,775 $39,394 $51,612 
Commercial36,612 47,206 34,892 37,603 28,472 
Consumer2,725 1,987 2,030 2,303 2,203 
Auto20,870 15,329 12,495 19,829 12,055 
Total nonperforming loans93,432 97,866 86,192 99,129 94,342 
Foreclosed real estate14,561 15,061 15,297 15,039 13,904 
Other repossessed assets3,307 2,533 2,625 1,945 1,528 
Total nonperforming assets$111,300 $115,460 $104,114 $116,113 $109,774 
Nonperforming Loan Rates     
Mortgage4.89 %4.70 %5.22 %5.48 %6.87 %
Commercial1.55 %1.98 %1.55 %1.80 %1.46 %
Consumer0.52 %0.40 %0.45 %0.56 %0.59 %
Auto1.11 %0.86 %0.72 %1.17 %0.72 %
Total loans1.71 %1.81 %1.66 %1.98 %1.93 %
12

OFG Bancorp (NYSE: OFG)
Table 6-3: Loan Information and Performance Statistics (1)
 20222022202220212021
(Dollars in thousands) (unaudited) Q3Q2Q1Q4Q3
Nonperforming PCD Loans(15)
Mortgage $260 $261 $310 $334 $2,030 
Commercial 9,746 10,057 10,877 12,545 36,798 
Total nonperforming loans $10,006 $10,318 $11,187 $12,879 $38,828 
Nonperforming PCD Loan Rates      
Mortgage 0.02 %0.02 %0.03 %0.03 %0.16 %
Commercial 6.01 %5.77 %5.71 %6.14 %15.36 %
Total 0.81 %0.80 %0.83 %0.92 %2.54 %
Total PCD Loans Held for Investment     
Mortgage $1,059,448 $1,099,097 $1,144,364 $1,188,423 $1,270,854 
Commercial 162,287 174,282 190,626 204,335 239,554 
Consumer 738 698 833 916 959 
Auto7,152 8,788 10,765 13,281 15,820 
Total loans $1,229,625 $1,282,865 $1,346,588 $1,406,955 $1,527,187 
 20222022202220212021
(Dollars in thousands) (unaudited) Q3Q2Q1Q4Q3
Total Nonperforming Loans(15)     
Mortgage $33,485 $33,605 $37,085 $39,728 $53,642 
Commercial 46,358 57,263 45,769 50,148 65,270 
Consumer 2,725 1,987 2,030 2,303 2,203 
Auto 20,870 15,329 12,495 19,829 12,055 
Total nonperforming loans $103,438 $108,184 $97,379 $112,008 $133,170 
Total Nonperforming Loan Rates 
Mortgage 1.93 %1.86 %2.01 %2.08 %2.65 %
Commercial 1.83 %2.21 %1.83 %2.11 %2.80 %
Consumer 0.52 %0.40 %0.45 %0.56 %0.59 %
Auto 1.11 %0.85 %0.72 %1.16 %0.72 %
Total 1.55 %1.61 %1.49 %1.75 %2.08 %
Total Loans Held for Investment     
Mortgage $1,739,279 $1,807,852 $1,848,641 $1,907,271 $2,022,243 
Commercial 2,539,668 2,595,867 2,499,914 2,379,330 2,331,056 
Consumer 520,921 499,102 455,792 409,675 374,631 
Auto 1,885,097 1,799,840 1,743,624 1,706,310 1,682,933 
Total loans $6,684,965 $6,702,661 $6,547,971 $6,402,586 $6,410,863 


13

OFG Bancorp (NYSE: OFG)
Table 7: Allowance for Credit Losses (1)
Quarter Ended September 30, 2022
(Dollars in thousands) (unaudited)MortgageCommercialConsumerAutoTotal
Allowance for credit losses Non-PCD:     
Balance at beginning of period$11,906 $42,014 $23,109 $66,867 $143,896 
(Recapture of) provision for credit losses(1,741)3,108 4,555 4,325 10,247 
Charge-offs(14)(6,485)(a)(4,163)(7,964)(18,626)
Recoveries280 214 732 5,674 6,900 
Balance at end of period$10,431 $38,851 $24,233 $68,902 $142,417 
Allowance for credit losses PCD:
Balance at beginning of period$12,541 $2,427 $20 $155 $15,143 
(Recapture of) provision for credit losses(1,735)(786)(40)(216)(2,777)
Charge-offs(270)(23)(9)(56)(358)
Recoveries191 268 47 231 737 
Balance at end of period$10,727 $1,886 $18 $114 $12,745 
Allowance for credit losses summary:
Balance at beginning of period$24,447 $44,441 $23,129 $67,022 $159,039 
(Recapture of) provision for credit losses(3,476)2,322 4,515 4,109 7,470 
Charge-offs(284)(6,508)(a)(4,172)(8,020)(18,984)
Recoveries471 482 779 5,905 7,637 
Balance at end of period$21,158 $40,737 $24,251 $69,016 $155,162 
Allowance coverage ratio1.22 %1.60 %4.66 %3.66 %2.32 %
(a)Refer to “(d)” in Table 1-1.

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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.
20222022202220212021
(Dollars in thousands) (unaudited)Q3Q2Q1Q4Q3
Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity$993,867 $1,014,812 $1,040,035 $1,069,160 $1,053,665 
Less:  Intangible assets(115,731)(117,869)(120,016)(122,162)(124,614)
Noncumulative perpetual preferred stock— ————
Noncumulative perpetual preferred stock issuance costs— ————
Tangible common equity$878,136 $896,943$920,019$946,998$929,051
     
Common shares outstanding at end of period47,563 47,554 48,673 49,636 49,977 
Tangible book value per common share (Non-GAAP)$18.46 $18.86 $18.90 $19.08 $18.59 
Total Assets to Tangible Assets     
Total assets  $10,058,179 $10,247,774 $10,190,120 $9,899,720 $10,606,865 
Less:  Intangible assets(115,731)(117,869)(120,016)(122,162)(124,614)
Tangible assets (Non-GAAP)$9,942,448 $10,129,905 $10,070,104 $9,777,558 $10,482,251 
Non-GAAP TCE Ratio     
Tangible common equity$878,136 $896,943$920,019$946,998$929,051
Tangible assets9,942,448 10,129,905 10,070,104 9,777,558 10,482,251 
TCE ratio8.83 %8.85 %9.14 %9.69 %8.86 %
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity$1,045,792 $1,032,270 $1,066,278 $1,066,764 $1,068,618 
Less: Average noncumulative perpetual preferred stock— — — — (3,391)
Average noncumulative perpetual preferred stock issuance costs— — — — 1,134 
Average total common stockholders' equity$1,045,792 $1,032,270 $1,066,278 $1,066,764 $1,066,361 
Less:  Average intangible assets(116,612)(118,750)(120,874)(123,201)(125,723)
Average tangible common equity$929,180 $913,520$945,404$943,563$940,638



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OFG Bancorp (NYSE: OFG)
Table 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures (Continued)
BASEL III
Standardized
20222022 202220212021
(Dollars in thousands) (unaudited)Q3Q2 Q1Q4Q3
Regulatory Capital Metrics      
Common equity Tier 1 capital$995,342$960,015$955,221$964,284$931,884
Tier 1 capital995,342960,015955,221999,284966,884
Total risk-based capital(16)1,088,5841,053,7661,045,4371,086,8971,053,184
Risk-weighted assets7,459,3267,499,1717,214,6927,004,8766,893,254
Regulatory Capital Ratios
Common equity Tier 1 capital ratio(17)13.34 %12.80 %13.24 %13.77 %13.52 %
Tier 1 risk-based capital ratio(18)13.34 %12.80 %13.24 %14.27 %14.03 %
Total risk-based capital ratio(19)14.59 %14.05 %14.49 %15.52 %15.28 %
Leverage ratio(20)9.82 %9.46 %9.54 %9.69 %9.33 %
 
Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach
Total stockholders' equity$993,867$1,014,812 $1,040,035 (a)$1,069,160 $1,053,665 
Plus: CECL transition adjustment(21)20,55720,55720,55727,40929,111
Less: Unrealized losses (gains) on available-for-sale securities, net of income tax104,14549,60620,522(5,663)(9,330)
Unrealized (gains) losses on cash flow hedges, net of income tax(256)(104)116503710
1,118,3131,084,8711,081,2301,091,4091,074,156
Less: Disallowed goodwill(86,069)(86,069)(86,069)(86,069)(86,069)
Disallowed other intangible assets, net(21,617)(22,997)(24,384)(25,771)(26,938)
Disallowed deferred tax assets, net(15,285)(15,790)(15,556)(15,285)(29,265)
Common equity Tier 1 capital995,342960,015955,221964,284931,884
Plus: Subordinated capital notes———35,00035,000
Tier 1 capital995,342960,015955,221999,284966,884
Plus tier 2 capital:  Qualifying allowance for credit losses93,24293,75190,21687,61386,300
Total risk-based capital$1,088,584$1,053,766 $1,045,437 $1,086,897 $1,053,184 

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OFG Bancorp (NYSE: OFG)
Table 9: Notes to Financial Summary, Selected Metrics, Loans, and Consolidated Financial Statements (Tables 1 - 8)
(1)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. 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. 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)Net interest income plus non-interest income, net (core)
(4)Calculated based on net income available to common shareholders divided by average common shares outstanding for the period.
(5)Calculated based on net income available to common shareholders divided by total average common shares outstanding and equivalents for the period as if converted.
(6)Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.
(7)Information includes all loans held for investment, including PCD loans.
(8)Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
(9)Calculated based on annualized income, net of tax, for the period divided by average total assets for the period.
(10)Calculated based on annualized income available to common shareholders for the period divided by average tangible common equity for the period.
(11)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.
(12)Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
(13)Non-GAAP ratios. See "Tables 8-1 and 8-2: Reconciliation of GAAP to Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.
(14)Production of new loans (excluding renewals).
(15)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.
(16)Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(17)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.
(18)Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(19)Total risk-based capital ratio is a regulatory capital measure calculated based on Total risk-based capital divided by risk-weighted assets.
(20)Leverage capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
(21)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 versus the incurred loss methodology.
(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)Under the GNMA program, issuers such as OFG Bancorp have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected (rebooked) on the financial statements of the Company with an offsetting liability.
(24)PPP loans are fully guaranteed by the SBA and risk-weighted at 0%.
17