OFG Bancorp Reports 2Q23 Results - Seite 2

Pre-Provision Net Revenues of $80.8 million compared to $74.6 million in 1Q23 and $66.0 million in 2Q22.

Total Provision for Credit Losses of $15.0 million compared to $9.4 million in 1Q23 and $6.7 million in 2Q22. 2Q23 included $9.1 million for a specific reserve for three US commercial loans and $6.3 million due to increased loan volume.

Credit Quality: Net charge-offs of $6.6 million compared to $10.1 million in 1Q23 and $4.5 million in 2Q22. 2Q23 included a recovery of $3.7 million from the sale of older, fully charged off auto and consumer loans. 2Q23 delinquency and non-performing loan rates rose slightly from reduced levels in 1Q23.

Total Non-Interest Expense of $88.9 million compared to $90.2 million in 1Q23 and $85.3 million in 2Q22. Compared to 1Q23, 2Q23 operating expenses increased $1.8 million, which was more than offset by $3.1 million from (i) a higher gain on foreclosed real estate and (ii) lower credit expenses.

Loans Held for Investment (EOP) of $7.12 billion compared to $6.85 billion in 1Q23 and $6.70 billion in 2Q22. Loans increased 15.4% annualized from the previous quarter and 6.2% year-over-year. Compared to 1Q23, 2Q23 reflected increases in commercial, auto, and consumer loans. This was partially offset by regular paydowns of residential mortgages.

New Loan Production of $691.8 million compared to $561.3 million in 1Q23 and $587.2 million in 2Q22. 2Q23 reflected strong levels of commercial lending in Puerto Rico and the US as well as auto, consumer, and residential mortgage lending.

Total Investments (EOP) of $1.70 billion compared to $1.92 billion in 1Q23 and $1.73 billion in 2Q22. 2Q23 investments declined $214.0 million from 1Q23 primarily due to the previously mentioned sale of a Treasury note.

Customer Deposits (EOP) of $8.54 billion compared to $8.57 billion in 1Q23 and $9.02 billion in 2Q22.

Total Borrowings (EOP) of $226.5 million compared to $226.8 million in 1Q23 and $27.6 million in 2Q22.

Cash & Cash Equivalents (EOP) of $799.0 million compared to $847.5 million in 1Q23 and $1.31 billion in 2Q22.

Total Assets (EOP) of $10.03 billion compared to $10.06 billion in 1Q23 and $10.25 billion in 2Q22.

Capital: CET1 ratio of 14.01% compared to 14.07% in 1Q23 and 12.80% in 2Q22. The Tangible Common Equity ratio was 9.99% compared to 9.85% in 1Q23 and 8.85% in 2Q22. Tangible Book Value per share of $21.06 compared to $20.57 in 1Q23 and $18.86 in 2Q22.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 2Q23 results, outlook and related matters will be held today at 10:00 AM ET. Phone [phone] or [phone]. Conference ID: OFGQ223. The call can also be accessed live on www.ofgbancorp.com with webcast replay shortly thereafter.