OFG Bancorp Reports 1Q24 Results - Seite 2

Credit Quality: Net charge-offs of $19.8 million compared to $16.3 million in 4Q23 and $10.1 million in 1Q23. 1Q24 included $3.5 million from previously and fully reserved nonperforming PPP loans. 1Q24 early and total delinquency rates were 2.41% and 3.30%, respectively, lower than 4Q23 and pre-pandemic levels. The nonperforming loan rate of 1.10% was the lowest over the last five quarters.

Total Non-Interest Expense of $91.4 million compared to $94.1 million in 4Q23 and $90.2 million in 1Q23. 1Q24 included a higher level of FICA payments compared to 4Q23, which included $3.2 million in workforce early retirement and rightsizing costs.

Effective Tax Rate of 26.8% compared to 31.9% in 4Q23 and 1Q23. 1Q24 reflected expected 2024 ETR of 29.0% due to higher forecasted business activities with preferential tax treatment under the Puerto Rico tax code, coupled with a $1.1 million discrete benefit for stock vested in 1Q24.

Loans Held for Investment (EOP) of $7.54 billion compared to $7.53 billion in 4Q23 and $6.85 billion in 1Q23. Loans were approximately level with December 31, 2023 balances and up 10.0% year-over-year. Compared to 4Q23, 1Q24 loans reflected increases in retail auto and consumer, partially offset by regular paydowns of residential mortgages and securitization and sale of conforming loans as well as seasonal paydowns of commercial lines of credit.

New Loan Production of $536.6 million compared to $663.9 million in 4Q23 and $561.3 million in 1Q23. Compared to 4Q23, production reflected increased auto and consumer lending and lower commercial and residential mortgage lending.

Total Investments (EOP) of $2.48 billion compared to $2.69 billion in 4Q23 and $1.92 billion in 1Q23. 1Q24 primarily reflected the sale of a Treasury bill position.

Customer Deposits (EOP) of $9.55 billion compared to $9.60 billion in 4Q23 and $8.57 billion in 1Q23.

Total Borrowings & Brokered Deposits (EOP) of $203.3 million compared to $363.0 million in 4Q23 and $226.8 million in 1Q23. Compared to 4Q23, 1Q24 reflected a reduced need for wholesale funding.

Cash & Cash Equivalents (EOP) of $754.4 million compared to $748.2 million in 4Q23 and $847.5 million in 1Q23.

Capital: CET1 ratio was 14.45% compared to 14.12% in 4Q23 and 14.07% in 1Q23. The Tangible Common Equity ratio was 10.06% compared to 9.68% in 4Q23 and 9.85% in 1Q23. Tangible Book Value (TBV) of $23.55 per share compared to $23.13 in 4Q23 and $20.57 in 1Q23. 1Q24 TBV reflected increased retained earnings.