Ofg Bancorp · NYSE:OFG
Ofg Bancorp — Q1 2024 Earnings Presentation
26 slides from Ofg Bancorp's earnings presentation, Apr 18, 2024
Slide 1: Quarterly Results 1Q24 Conference Call
Quarterly Results 1Q24 Conference Call April 18, 2024
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: 1Q24 Summary
1Q24 Summary Income Statement Balance Sheet (EOP) Capital Capital Actions • EPS $1.05 • Total Assets $11.2B • CET1 14.45% • Increased quarterly cash • Total Core Revenues • Customer Deposits $9.5B • Tier 1 Risk-Based dividend by 14%, to $174.2M 14.45% $0.25 from $0.22 per • Loans Held for share • NI
Slide 4: Our "Digital First" Strategy at Work
Our “Digital First” Strategy at Work Retail Digital/Self-Service Channel Use (1Q24) • 94% of all routine transactions • 96% of all deposit transactions • 64% of all loan payments Key Drivers (1Q24 vs. 1Q23) • 12% growth in digital enrollment • 68% growth in digital loan payments • 32% growth in virt
Slide 5: Financial Highlights
Financial Highlights Total Core Revenues ($M) EPS TBV Per Common Share $176 $1.05 $23.55 $174 $23.13 $172 $0.98 $171 $0.97 $0.96 $168 $0.93 $0.95 $21.06 $21.01 $164 $20.57 $19.56 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Efficiency Ratio ROAA ROATCE 1.
Slide 6: Operational Highlights
Operational Highlights Loans ($B) Core Deposits ($B) New Loan Origination ($M) Average Balances Average Balances $7.54 $9.53 $7.42 $682 $664 $616 $7.19 $8.76 $8.59 $8.62 $8.69 $561 $568 $7.00 $8.53 $537 $6.87 $6.77 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 7: Credit Quality & Capital Strength
Credit Quality & Capital Strength NCO Rate Provision ($M) NPL Rate Excludes PCD Loans $19.7 $16.4 $15.0 $15.1 1.61% 1.45% 1.05% 1.05% 1.32% 1.33% 0.88% 1.22% $9.4 1.10% 0.66% $8.8 0.59% 0.38% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 CET1 Ratio Total S
Slide 8: Outlook
Outlook Puerto Rico Macro • Ongoing flow of federal funds to rebuild infrastructure • Significant influx of private capital and good overall business activity unfolding • Keeping watchful eye on interest rate changes, inflation trends, possible mainland recession, and global conflicts • PR’s economy
Slide 9: Appendix
Appendix
Slide 10: Snapshot (March 31, 2024)
Snapshot (March 31, 2024) Branches, Kiosks, ATMs & ITMs in All Major PR & USVI Markets Value Proposition • Puerto Rico’s challenger bank Puerto Rico USVI Total Branches 42 2 44 • Target specific retail and commercial customer segments Self-Service Kiosks 10 0 10 ATMs 286 10 296 • “Más Que Listo (Mor
Slide 11: History of Capital Management & Growth
History of Capital Management & Growth • Organic growth and acquisitions have transformed Oriental into Assets ($B) Loans ($B) a full-service, island-wide $11.3 $7.4 financial institution $6.6 $6.5 $6.7 $6.3 • From 2002-2023, OFG’s local $9.8 $9.9 $9.8 deposits have expanded 8.5x $9.2 $9.3 $5.2 $5.0
Slide 12: 1Q24 Asset Balance Evolution ($M)
1Q24 Asset Balance Evolution ($M) 12
Slide 13: 1Q24 Loan Balance Evolution ($M)
1Q24 Loan Balance Evolution ($M) 13
Slide 14: 1Q24 Core Deposit Balance Evolution ($M)
1Q24 Core Deposit Balance Evolution ($M) 14
Slide 15: 1Q24 Deposit Balance Evolution: Retail vs. Commercial, Ex-Public Funds ($M)
1Q24 Deposit Balance Evolution: Retail vs. Commercial, Ex-Public Funds ($M) 15
Slide 16: Residential Mortgage Loans ($M)
Residential Mortgage Loans ($M) Portfolio New Loan Origination $1,704 $1,669 $1,622 $1,604 $1,563 $1,519 $35 $36 $33 $33 $30 $32 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 NPLs (excludes PCD) NCO Rate $34 $31 $28 $25 0.03% -0.05% -0.10% -0.09% -0.20% $20 $19 -0.2
Slide 17: Commercial Loans ($M)
Commercial Loans ($M) Portfolio New Loan Origination $755 $741 $669 $708 $642 $618 $57 $112 $2,322 $2,311 $83 $2,125 $286 $2,105 $1,988 $1,964 $17 $124 $211 $70 $209 $186 $150 $98 Puerto Rico US Puerto Rico US 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 NPLs (excl
Slide 18: Auto Loans ($M)
Auto Loans ($M) Portfolio New Loan Origination $2,341 $236 $237 $232 $2,274 $221 $222 $224 $2,212 $2,127 $2,039 $1,964 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 NPLs (excludes PCD) NCO Rate 1.72% 1.42% 1.11% 0.96% 0.57% $20 $19 $16 $14 $13 $15 0.09% 4Q22 1Q23 2Q
Slide 19: Consumer Loans ($M)
Consumer Loans ($M) Portfolio New Loan Origination $613 $620 $628 $594 $565 $86 $87 $537 $76 $68 $69 $64 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 NPLs (excludes PCD) NCO Rate 4.45% 3.95% 3.30% 3.33% 2.95% 2.37% $3 $3 $3 $3 $3 $4 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q
Slide 20: Credit Quality
Credit Quality NCO Rate NPL Rate (excludes PCD) 1.61% 1.05% 1.05% 0.88% 1.45% 0.66% 0.59% 1.32% 1.33% 1.10% 0.38% 1.22% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Early Delinquency Rate Total Delinquency Rate 4.04% 3.67% 3.78% 3.76% 3.40% 3.30% 2.75% 2.76% 2.46% 2.53% 2.41% 2.11% 4Q
Slide 21: Reserve
Reserve ACL / Total Loans Held for Investment 2.40% 2.37% 2.32% 2.23% 2.22% 2.25% 2.17% 2.14% 2.08% 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 ACL by % of Portfolio2. 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 Auto 3.69 3.72 3.66 3.56 3.4
Slide 22: Core Non-Interest Income ($M)
Core Non-Interest Income ($M) Total Banking Services $18.2 $17.8 $33.0 $17.5 $17.4 $17.3 $17.3 $32.1 $30.9 $30.4 $30.1 $28.5 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Wealth Management Mortgage Banking $10.0 $8.3 $8.2 $8.1 $7.7 $7.1 $6.5 $5.2 $5.4 $4.7 $4.3 $3.9 4Q22 1Q23 2Q23 3Q23
Slide 23: Capital: Fortress Balance Sheet
Capital: Fortress Balance Sheet Basel III Standardized ($ in millions except per share) 1Q24 4Q23 3Q23 2Q23 1Q23 CET1 Capital $1,205.2 $1,174.2 $1,124.6 $1,086.6 $1,063.9 CET1 Capital Ratio 14.45% 14.12% 14.06% 14.03% 14.07% Tier 1 Capital $1,205.2 $1,174.2 $1,124.6 $1,086.6 $1,063.9 Tier 1 Capital
Slide 24: Income Statement Highlights: 1Q24 vs. 4Q23
Income Statement Highlights: 1Q24 vs. 4Q23 $ in millions 1Q24 4Q23 Δ Comment Total Interest Income • Cash $8.0 $6.9 $1.1 • 16% higher average balance & 6 bps higher yield • Investment Securities 25.8 20.5 5.3 • 18% higher average balance & 23 bps higher yield • Loans 149.6 148.8 0.8 • 2% higher aver
Slide 25: Income Statement Highlights: 1Q24 vs. 1Q23
Income Statement Highlights: 1Q24 vs. 1Q23 $ in millions 1Q24 1Q23 Δ Comment Total Interest Income • Cash $8.0 $6.4 $1.6 • 9% higher average balance & 63 bps higher yield • Investment Securities 25.8 14.2 11.6 • 34% higher average balance & 105 bps higher yield • Loans 149.6 128.3 21.3 • 10% higher
Slide 26: Thank you.
Thank you. Contact: IR Coordinator Gary Fishman gfishman@ofgbancorp.com 212-532-3232 Steven Anreder sanreder@ofgbancorp.com 212-532-3232