OFG Bancorp Reports 2Q21 Results - Seite 2

New Loan Origination totaled $673.6 million compared to $527.6 million in 1Q21 and $506.0 million in 2Q20. 2Q21 increased 27.7% from 1Q21 due to gains in all major categories, led by commercial and auto lending.

Total Interest Expense was $11.2 million compared to $12.8 million in 1Q21 and $16.6 million in 2Q20. 2Q21 declined 12.3% from 1Q21 primarily due to lower cost of core deposits, which was 38 bps compared to 47 bps in 1Q21 and 61 bps in 2Q20. Average customer deposit balances were $8.96 billion compared to $8.54 billion in 1Q21 and $7.85 billion in 2Q20.

Asset Quality and Provision for Credit Losses: 2Q21 reflected continued improvement in asset quality trends with the rates for net charge offs (0.13%) and early (1.86%) and total (3.90%) delinquency at their lowest levels in five quarters. Provision for credit losses was a net benefit of $8.3 million, resulting from $2.1 million net charge-offs and $10.4 million net reserve releases, compared to a provision expense of $6.3 million in 1Q21 and $17.7 million in 2Q20.

Banking and Financial Services Revenues were $31.0 million compared to $29.5 million in 1Q21 and $23.1 million in 2Q20. 2Q21 increased 5.4% from 1Q21 and 34.4% from 2Q20 primarily due to increased activity as pandemic related economic restrictions have subsided.

Non-Interest Expenses were $82.7 million compared to $77.7 million in 1Q21 and $85.5 million in 2Q20. 2Q21 reflected previously announced cost savings, a $2.2 million technology project write down, and higher variable expenses related to higher revenues.

Pre-Provision Net Revenues were $51.8 million, which includes the above non-cash write down, compared to $50.9 million in 1Q21 and $46.7 million in 2Q20.

Capital: Tangible book value per share was $18.13 compared to $17.39 in 1Q21 and $16.01 in 2Q20. CET1 ratio was 13.95% compared to 13.56% in 1Q21 and 12.03% in 2Q21.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 2Q21 results, outlook and related matters will be held today at 10:00 AM ET. Phone [phone] or [phone]. Conference ID: 573-9736. 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 June 30, 2021, and the 2Q21 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at www.ofgbancorp.com.