Ofg Bancorp · NYSE:OFG
Ofg Bancorp — Q4 2024 Earnings Presentation
27 slides from Ofg Bancorp's earnings presentation, Jan 22, 2025
Slide 1: Quarterly Results 4Q24 Conference Call
Quarterly Results 4Q24 Conference Call January 22, 2025
Slide 2: Forward Looking Statements
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 tha
Slide 3: 4Q24 Summary
4Q24 Summary Income Statement Balance Sheet (EOP) Capital Capital Actions • EPS $1.09 • Total Assets $11.5B • CET1 14.26% • Buybacks: $45.9M of • Total Core Revenues • Customer Deposits $9.4B • Tier 1 Risk-Based 14.26% common shares, leaving $181.9M $29.7M remaining • Loans Held for Investment • Tot
Slide 4: 2024 Summary
2024 Summary Income Statement Balance Sheet (EOP) Capital Capital Management • EPS $4.23 • Total Assets $11.5B • CET1 14.26% • Average Interest Earning • Total Core Revenues • Customer Deposits $9.4B • Tier 1 Risk-Based 14.26% Assets: +11.8% $709.6M • Loans Held for Investment • Total Risk-Based 15.
Slide 5: Our "Digital First" Strategy at Work
Our “Digital First” Strategy at Work Retail Digital/Self-Service Channel Use (4Q24) • 96% of all routine transactions • 97% of all deposit transactions • 68% of all loan payments Key Drivers (4Q24 vs. 4Q23) • 12% growth in digital enrollment • 54% growth in digital loan payments • 34% growth in virt
Slide 6: Financial Highlights
Financial Highlights Total Core Revenues ($M) EPS TBV Per Common Share $182 $179 $176 $26.15 $174 $174 $25.43 $172 $1.08 $1.09 $1.05 $23.55 $24.18 $0.98 $1.00 $23.13 $0.95 $21.01 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Efficiency Ratio ROAA ROATCE 17
Slide 7: Operational Highlights
Operational Highlights Loans ($B) Core Deposits ($B) New Loan Origination ($M) Average Balances Average Balances $664 $7.72 $9.53 $9.60 $9.59 $9.56 $7.61 $7.63 $609 $7.54 $589 $7.42 $8.69 $568 $572 $8.62 $537 $7.19 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24
Slide 8: Credit Quality & Capital Strength
Credit Quality & Capital Strength NCO Rate Provision ($M) NPL Rate $30.2 $21.4 $19.7 1.05% 1.05% 1.22% 0.90% 0.82% $16.4 $15.6 1.13% $15.1 1.03% 1.01% 1.03% 1.06% 0.88% 0.79% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 CET1 Ratio Total Stockholder's Equi
Slide 9: Outlook
Outlook Puerto Rico Macro • Economy growing: Infrastructure projects and business investments continue to expand • Closely monitoring pivotal factors that could affect business: prolonged high market interest rates, inflation trends, new mainland economic policies, and global conflicts OFG • Well-po
Slide 10: Appendix
Appendix
Slide 11: Snapshot (December 31, 2024)
Snapshot (December 31, 2024) Branches, Kiosks, ATMs & ITMs in All Major PR & USVI Markets Value Proposition Puerto Rico USVI Total • Puerto Rico’s challenger bank Branches 42 2 44 • Target specific retail and commercial customer Self-Service Kiosks 14 0 14 segments ATMs 307 12 319 • “Más Que Listo (
Slide 12: History of Capital Management & Growth
History of Capital Management & Growth • Organic growth and acquisitions have transformed OFG's Oriental into a full- Assets ($B) Loans ($B) service, island-wide financial institution $11.5 $11.3 $7.4 $7.6 • From 2002-2023, our local $6.6 $6.7 $6.5 deposits have expanded 8.5x $9.8 $9.9 $9.8 $6.3 whi
Slide 13: 4Q24 Asset Balance Evolution ($M)
4Q24 Asset Balance Evolution ($M) $111 $133 $29 $11,501 $11,461 $102 $27 $(60) $(9) $(91) $11,259 6/30/2024 Loans Other Investment Cash 9/30/2024 Loans Other Investment Cash 12/31/2024 13
Slide 14: 4Q24 Loan Balance Evolution ($M)
4Q24 Loan Balance Evolution ($M) $65 $7,792 $56 $7,751 $4 $20 $36 $(13) $7,640 $(15) $(1) 6/30/2024 Mortgage Commercial Consumer Auto 9/30/2024 Mortgage Commercial Consumer Auto 12/31/2024 14
Slide 15: 4Q24 Core Deposit Balance Evolution ($M)
4Q24 Core Deposit Balance Evolution ($M) $68 $17 $103 $46 $9,605 $9,533 $9,449 $(157) $(233) 6/30/2024 Time Savings Demand 9/30/2024 Time Savings Demand 12/31/2024 15
Slide 16: 4Q24 Deposit Balance Evolution: Retail vs. Commercial
4Q24 Deposit Balance Evolution: Retail vs. Commercial, Ex-Public Funds ($M) 8,028 28.0 $8,004 7,959 17.0 (39.0) (30.0) 6/30/2024 Retail Commercial 9/30/2024 Retail Commercial 12/31/2024 16
Slide 17: Residential Mortgage Loans ($M)
Residential Mortgage Loans ($M) Portfolio New Loan Origination $1,604 $1,563 $43 $1,519 $1,485 $1,484 $1,471 $39 $37 $33 $33 $32 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 NPLs NCO Rate 0.03% -0.09% -0.06% $25.6 -0.16% -0.14% -0.20% $20.3 $19.3 $19.0 $17.6 $17.2
Slide 18: Commercial Loans ($M)
Commercial Loans ($M) Portfolio New Loan Origination $57 $755 $741 $662 $680 $704 $708 $286 $44 $2,420 $2,438 $2,399 $17 $27 $2,322 $2,311 $70 $2,125 $67 $211 $186 $192 $150 $150 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 NPLs NCO Rate 0.27% $20 $19 P.R. -0.01% 0
Slide 19: Auto Loans ($M)
Auto Loans ($M) Portfolio New Loan Origination $2,484 $2,549 $251 $2,428 $237 $242 $2,274 $2,341 $232 $232 $2,212 $224 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 NPLs NCO Rate $20.1 $19.1 $16.7 $17.0 $16.3 1.72% 1.63% $14.5 1.42% 1.11% 1.64% 0.96% 3Q23 4Q23 1Q24
Slide 20: Consumer Loans ($M)
Consumer Loans ($M) Portfolio New Loan Origination $664 $669 $87 $628 $644 $613 $620 $80 $76 $69 $69 $64 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 NPLs NCO Rate 4.70% 4.45% 4.42% $4.2 $3.9 3.95% $3.6 $3.4 $3.4 $3.3 3.33% 3.72% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23
Slide 21: Credit Quality
Credit Quality NCO Rate NPL Rate 1.22% 1.13% 1.05% 1.05% 1.03% 1.03% 1.06% 1.01% 0.88% 0.90% 0.79% 0.82% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Early Delinquency Rate Total Delinquency Rate* 2.95% 4.38% 2.75% 2.76% 2.81% 2.78% 4.10% 3.78% 3.76% 3.71% 2.41% 3.30% 3Q23 4Q23 1Q24 2
Slide 22: Allowance
Allowance ACL / Total Loans Held for Investment 2.23% 2.22% 2.25% 2.26% 2.17% 2.14% 2.08% 2.06% 2.08% 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 ACL by % of Portfolio 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 Auto 3.56 % 3.43 % 3.16 %
Slide 23: Core Non-Interest Income ($M)
Core Non-Interest Income ($M) Total Banking Services $18.8 $17.8 $17.3 $17.3 $32.1 $32.1 $32.8 $30.4 $30.1 $15.6 $15.3 $26.3 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Wealth Management Mortgage Banking $6.8 $10.6 $5.4 $10.0 $4.9 $4.7 $8.1 $8.4 $8.4 $4.3 $7.7 $2.3 3Q23 4Q23 1Q24 2Q2
Slide 24: Capital: Fortress Balance Sheet
Capital: Fortress Balance Sheet Basel III Standardized ($ in millions except per share) 4Q23 1Q24 2Q24 3Q24 4Q24 CET1 Capital $ 1,174.2 $ 1,205.2 $ 1,223.0 $ 1,260.9 $ 1,256.9 CET1 Capital Ratio 14.12 % 14.45 % 14.29 % 14.37 % 14.26 % Tier 1 Capital $ 1,174.2 $ 1,205.2 $ 1,223.0 $ 1,260.9 $ 1,256.9
Slide 25: Income Statement Highlights: 4Q24 vs. 3Q24
Income Statement Highlights: 4Q24 vs. 3Q24 $ in millions 4Q24 3Q24 Δ Comment Total Interest Income • Cash $ 6.5 $ 8.4 $ (1.9) • 11% lower average balance & 63 bps lower yield • Investment Securities 28.3 26.3 2.0 • 5% higher average balance & 10 bps higher yield • Loans 155.3 154.4 0.9 • 1% higher a
Slide 26: Income Statement Highlights: 4Q24 vs. 4Q23
Income Statement Highlights: 4Q24 vs. 4Q23 $ in millions 4Q24 4Q23 Δ Comment Total Interest Income • Cash $ 6.5 $ 6.9 $ (0.4) • 8% higher average balance & 66 bps lower yield • Investment Securities 28.3 20.5 7.8 • 23% higher average balance & 44 bps higher yield • Loans 155.3 148.8 6.5 • 4% higher
Slide 27: Thank you.
Thank you. Contact: IR Coordinator Gary Fishman gfishman@ofgbancorp.com 212-532-3232 Steven Anreder sanreder@ofgbancorp.com 212-532-3232