Ofg Bancorp · NYSE:OFG
Ofg Bancorp — Oriental Financial Group — Shareholder Meeting (April 2013)
19 slides from Ofg Bancorp's shareholder meeting presentation, Apr 24, 2013
Slide 1: Oriental Financial Group Annual Meeting April 24, 2013
ORIENTALMEETING ANNUAL FINANCIAL APRIL GROUP 24, 2013
Slide 2: Forward Looking Statements
FORWARD The expectations Factors (ii) conditions; supervisory stock For Securities 2statements the ainformation discussion and amounts that bond and to(iv) policies, might LOOKING and reflect Exchange markets; changes by of included involve cause which such occurrences including in STATEMENTS factor
Slide 3: Diversified Financial Holding Company Highlights
DIVERSIFIED HIGHLIGHTS •FINANCIALS1 64 Auto/ 9% Covered Deposits Loans Consumer Institutional 31% Mortgage Residential 25% 11% (1) 73% 3Retail A Assets: Wealth Commercial Insurance Loans: Deposits: Market Branches Balance leading 16% Commercial $5.2 Management $9.1 leader Cap: 35% $5.7 bank Brokerag
Slide 4: Complete Transformation Today
COMPLETE Growth 2007 BBVA December Eurobank April 4•TODAY Secondary Niche Full #1 Earnings Reliance in2010 service PR auto products &Acquisition Acquisition Deleveraging on 2012 driven increasingly loans bank TRANSFORMATION commercial-consumer repos core and by among deposits investment services dri
Slide 5: OFG Today: Key Performance Indicators
OFG •KEY STRONG At Total Loans Deposits Net TBV NCL/Average Commercial 5Branches Successfully Financially Recognition: orInterest Per TODAY Assets POINTS for as year as % Share 64 PERFORMANCE % of Margin $9.1 Bankers 23 strongest ended Loans managed of Interest Benefitting $13.59 178% Interest B $6.
Slide 6: Major Growth Opportunities
MAJOR Financial Strategic Tactical 6•Business Target Exploit Expand Employ Cross Restore PR Continue Once market integration sell +1% GROWTH larger TBV market operating developing wealth lacks ROA, from scale share differentiation efforts management leverage +12% OPPORTUNITIES dilution and our in pl
Slide 7: Summary of Management Team
SUMMARY MANAGEMENT Position President, José Chairman PR service SEVP 3C •in EVP BBVA General Carlos 7Secretary Team Managed Director Former orporate Puerto R. – –PR CFO Chief O. has companies Fernández Banking Counsel Name President OFG Rico, of Souffront of wealth CEO, Development each successfully
Slide 8: Puerto Rico Banking Economy
PUERTO BANKING 8•ECONOMY Feweronly Other Now Local Expect Government economy than banks, minimal RICO two OFG, addressing less foreign stabilizing growth all irrational local banks fiscal banks competition, onissues the currently Islandresulting constrained in part by TARP, from FDIC MOU,ledcapital
Slide 9: Oriental Financial Group Financial Update as of 12/31/12
ORIENTAL FINANCIAL FINANCIAL UPDATE ASGROUP OF 12/31/12
Slide 10: Loan Book $5.2B Net Increase
LOAN $5.2B Net Increase 25% 20% 30% 56% 40% 50% 60% 12/31/11 10% Improved % Commercial Residential Auto/Consumer Total 10 Total Loans 26% net 100% 225% BOOK 12/31/12% in loans 9/30/12 Diversity as total Mortgage 100% 38% %atof net 27% 12/31/12 12/31/12, 28% Total Total loans among 7% 35%Assets 9/30/
Slide 11: Deposit Base $5.7B Increase
DEPOSIT 157% $5.7B Increase Deposits 30% 40% 50% 60% 70% Liabilities 12/31/11 20% Improved 12/31/12 Non-interest Interest Time Total 11 41% deposits 100% 46%bearing in as 9/30/12 %Diversity 43% BASE 41% total % Total 100% bearing at ofsavings deposits, 12/31/12, Interest-Bearing 12/31/12 9/30/12 amo
Slide 12: Loan Yields and Cost of Deposits
LOAN Yields Loan Cost 5.70% 6.23% 5.90% 6.10% 6.30% 5.50% 5.98% 5.30% 0.80% 1.20% 1.60% 2.00% 1.42% 4Q11 0.00% 0.40% 1.12% 6.00% 2012 12 of Loan Yield 1Q12 Rising, 6.05% 5.76% 1.72% 1.32% +20 YIELD Deposits Yield 1.33% (not 2Q12 5.74% 1.58% Costs &covered) YoY COST 3Q12 -47Falling BPS4Q12 OFChange D
Slide 13: Investment Yield and Cost of Borrowings
INVESTMENT NIM Investment 2.80% 2.23% 1.81% Cost 1.50% 2.85% 2.00% 2.50% 3.00% 2.17% 4Q11 0.50% 1.00% 2.34% 2012 13 of Would Investment 1Q12 2.44% 2.25% 2.49% 1.98% -107 Borrowings Yield 2Q12 2.27% Expand 2.34% YIELD Yield 3Q12 -62 with YoY & 4Q12 Continued COST BPS Change OFDeleveraging BORROWINGS
Slide 14: Net Interest Margin: Key Points
NET 2012 •KEY Continued Guidance 3.00% 4Q11 1.00% 1.78% 1.50% 2.28% 2.59% 2.77% Last 2.17% 2.65% 2.00% 2.50% 2008 1.00% 1.86% 14 INTEREST NIM, POINTS +46 2.97% Five 1Q12Quarters of exceeded improvement 2.19% 2009 3.90% Years 2Q12 2.03% 2010 MARGIN for YoY 3Q12 2011 2014 2008-2012 BPSdue 4Q12 2012 im
Slide 15: Credit Quality: Strong NCLs/Average Loans
CREDIT Strong NCLs/Average 0.50% 1.25% 1.00% 1.50% 2.00% 2.50% 0.00% 0.63% $Total 4Q11 0.82% 2012 156.0 NCLs/Average 5.0 4.0 3.0 3.8 2.0 1.9 1.0 $NCLs 1Q12 0.89% 0 Credit 2.7 $10.9 QUALITY $2Q12 2.7 0.88% Culture, $1.3 Loans $ 3Q12 2.7YoY 0.88% Outstanding Minor 4Q12 BPSYoY Change Change 2012 ($Tota
Slide 16: Continued Core Non-Interest Income Growth
CORE Continued Core $11.7 $12.2 $9.0 $14.7 $11.0 $13.0 $15.0 16 4Q11 $5.0 $7.0 $AssetsNon-Interest 5,500 4,500 3,500 3,871 2,500 2,902 1,500NON-INTEREST 12/31/11 $49 2012 13%$$11.7 Core 1Q12 UnderGrowth $11.3 3/31/12 14% 5,237 4,142 3,088 Income in Recurring Non-Interest 2Q12 Management 41%6/30/12 3
Slide 17: Progressing Integration and Lower Estimated Cost
PROGRESSING INTEGRATION •LOWER 17 Approximately Total Combined Loan Plan 12.5% Balance for acquisition/integration volumes less ESTIMATED converting to organizations be than expensed/amortized and $19 SMOOTHLY original deposits and million COST consolidating $40 starting capitalized July now million
Slide 18: Strong Capital Position Highlights
STRONG 6.42% Leverage •HIGHLIGHTS 18 All Oriental Includes Our ratios capital 12.94% Capital continues $77 CAPITAL better ratios million 15.15% than Ratio are, toPOSITION expected in be 6.74% Tier and new well are 1 capital risk-based capitalized anticipated compared raised Total in to toinexcess or
Slide 19: Corporate Name Change Highlights
CORPORATE Today’s •HIGHLIGHTS 19 Better symbol Stock reflects Vote NAME “OFG” the transformation CHANGE and the names of the of principal Company,operating and its future subsidiaries growth–plans Oriental Bank, Oriental Financial Services and Oriental Insurance – remain unchanged
Oriental Financial Group — Shareholder Meeting (April 2013) on 6ix