Slide 1: Quarterly Results 2Q23 Conference Call
Quarterly Results 2Q23 Conference Call July 20, 2023
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: 2Q23 Summary
2Q23 Summary Income Statement Balance Sheet (EOP) Capital • EPS $0.93 • Total Assets $10.0B • CET1 14.01% • Total Core Revenues $170.5M • Customer Deposits $8.5B • Tier 1 Risk-Based 14.01% • NIM 5.90% • Loans Held for Investment $7.1B • Total Risk-Based 15.27% • Provision $15.0M • New Loan Productio
Slide 4: Our "Digital First" Strategy at Work
Our “Digital First” Strategy at Work (comparisons are June 2023 vs. June 2022) Digital Enrollment • Up 10% Transactions • 6% growth in digital self-service channels • 14% growth in kiosk use • 17% growth in digital loan payments • 5% total overall growth Oriental Servicing Portal • Launched in April
Slide 5: Financial Highlights
Financial Highlights Total Core Revenues ($M) EPS TBV Per Common Share $171 $0.97 $0.96 $21.06 $168 $164 $0.93 $20.57 $0.87 $157 $0.84 $19.56 $146 $0.76 $18.90 $18.86 $18.46 $136 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Efficiency Ratio ROAA ROATCE 59
Slide 6: Operational Highlights
Operational Highlights Loans ($B) Core Deposits ($B) New Loan Origination ($M) Average Balances Average Balances $7.00 $692 $8.95 $8.92 $623 $616 $6.87 $8.81 $8.76 $587 $8.59 $8.53 $561 $6.77 $511 $6.70 $6.64 $6.52 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23
Slide 7: Credit Quality & Capital Strength
Credit Quality & Capital Strength NCO Rate Provision ($M) NPL Rate Excludes PCD Loans $15.0 1.81% 1.66% 1.71% $9.4 1.61% $8.8 1.45% 1.32% $7.1 0.68% 0.66% $6.7 0.59% 0.38% 0.27% 0.04% $1.6 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 CET1 Ratio Total Stoc
Slide 8: Outlook
Outlook Puerto Rico Macro • Economy demonstrating resilience and growth • Private sector expanding • Wages rising • Labor participation rate increasing • Continuing flow of federal funds to rebuild infrastructure • Keeping a watchful eye on interest rate changes, inflation, and possible mainland rec
Slide 9: Appendix
Appendix
Slide 10: Snapshot (June 30, 2023)
Snapshot (June 30, 2023) Branches, ATMs and/or ITMs in All Major PR & USVI Markets Value Proposition • Puerto Rico’s challenger bank Puerto Rico USVI Total Branches 41 2 43 • Target specific retail and commercial customer segments Self-Service Kiosks 7 -- 7 ATMs 289 15 304 • “Más Que Listo (More tha
Slide 11: History of Capital Management & Growth
History of Capital Management & Growth • Organic growth and acquisitions have transformed Oriental into Assets ($B) Loans ($B) a full-service, island-wide financial institution $9.8 $9.9 $9.8 $6.6 $6.7 $6.5 • From 2002-2022, while local $9.2 $9.3 $6.3 deposits have increased 2.2x, $5.2 $5.0 OFG’s ma
Slide 12: 2Q23 Asset Balance Evolution ($M)
2Q23 Asset Balance Evolution ($M) 12
Slide 13: 2Q23 Loan Balance Evolution ($M)
2Q23 Loan Balance Evolution ($M) 13
Slide 14: 2Q23 Core Deposit Balance Evolution ($M)
2Q23 Core Deposit Balance Evolution ($M) 14
Slide 15: 2Q23 Deposit Balance Evolution: Retail vs. Commercial
2Q23 Deposit Balance Evolution: Retail vs. Commercial, Ex-Public Funds ($M) 15
Slide 16: Residential Mortgage Loans ($M)
Residential Mortgage Loans ($M) Portfolio New Loan Origination $1,849 $1,808 $1,739 $1,704 $1,669 $1,622 $64 $63 $39 $36 $35 $30 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 NPLs (excludes PCD) NCO Rate $37 $33 $33 $34 $31 $28 -0.20% -0.04% -0.05% -0.10% -0.38% -0.2
Slide 17: Commercial Loans ($M)
Commercial Loans ($M) Portfolio New Loan Origination $669 $624 $642 $618 $525 $622 $112 $2,105 $83 $1,975 $1,972 $1,917 $1,988 $1,964 $108 $91 $124 $221 $209 $176 $56 $144 $123 $98 Puerto Rico US Puerto Rico US 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 NPLs (excl
Slide 18: Auto Loans ($M)
Auto Loans ($M) Portfolio New Loan Origination $2,127 $236 $220 $221 $222 $2,039 $193 $1,964 $178 $1,885 $1,800 $1,744 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 NPLs (excludes PCD) NCO Rate 1.11% $21 0.69% 0.57% $20 0.46% $15 0.17% $14 $13 0.09% $12 1Q22 2Q22 3Q2
Slide 19: Consumer Loans ($M)
Consumer Loans ($M) Portfolio New Loan Origination $594 $97 $97 $565 $537 $86 $87 $521 $499 $456 $73 $68 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 NPLs (excludes PCD) NCO Rate 3.30% 2.95% 2.52% 2.37% 1.98% 1.75% $2 $2 $3 $3 $3 $3 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q2
Slide 20: Credit Quality
Credit Quality NCO Rate NPL Rate (excludes PCD) 1.81% 1.71% 1.66% 1.61% 1.45% 0.27% 0.68% 0.66% 0.59% 1.32% 0.04% 0.38% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Early Delinquency Rate Total Delinquency Rate 4.35% 4.04% 3.68% 3.67% 3.40% 3.17% 2.75% 2.46% 2.53% 2.20% 2.11% 1.97% 1Q
Slide 21: Reserve
Reserve ACL / Total Loans Held for Investment 2.95% 2.82% 2.44% 2.40% 2.37% 2.32% 2.25% 2.23% 2.22% 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 ACL by % of Portfolio 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Auto 4.26 4.24 3.85 3.69 3.72
Slide 22: Core Non-Interest Income ($M)
Core Non-Interest Income ($M) Total Banking Services $18.1 $18.2 $33.0 $17.5 $17.2 $17.5 $17.4 $31.2 $31.2 $30.3 $30.9 $28.5 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Wealth Management Mortgage Banking $8.3 $8.2 $8.3 $8.2 $7.9 $7.1 $6.5 $5.8 $4.9 $5.2 $4.8 $3.9 1Q22 2Q22 3Q22 4Q22
Slide 23: Capital: Fortress Balance Sheet
Capital: Fortress Balance Sheet Basel III Standardized ($ in millions except per share) 2Q23 1Q23 4Q22 3Q22 2Q22 CET1 Capital $ 1,086.6 $1,063.9 $1,037.4 $995.3 $960.0 CET1 Capital Ratio 14.01% 14.07% 13.64% 13.38% 12.80% Tier 1 Capital $1,086.6 $1,063.9 $1,037.4 $995.3 $960.0 Tier 1 Capital Ratio 1
Slide 24: Income Statement Highlights: 2Q23 vs. 1Q23
Income Statement Highlights: 2Q23 vs. 1Q23 $ in millions 2Q23 1Q23 Δ Comment Total Interest Income • Cash $9.0 $6.4 $2.6 • 25% higher average balance and 49 bps higher yield • Investment Securities 13.4 14.2 (0.8) • 7% lower average balance and 6 bps higher yield • Loans 135.5 128.3 7.2 • 2% higher
Slide 25: Income Statement Highlights: 2Q23 vs. 2Q22
Income Statement Highlights: 2Q23 vs. 2Q22 $ in millions 2Q23 2Q22 Δ Comment Total Interest Income • Cash $9.0 $3.0 $6.0 • 55% lower average balances and 445 bps higher yield • Investment Securities 13.4 7.9 5.5 • 26% higher average balances and 78 bps higher yield • Loans 135.5 111.4 24.1 • 6% high
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