Slide 1: Quarterly Results 2Q24 Conference Call
Quarterly Results 2Q24 Conference Call July 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: 2Q24 Summary
2Q24 Summary Income Statement Balance Sheet (EOP) Capital Capital Actions • EPS $1.08 • Total Assets $11.3B • CET1 14.29% • Acquired $24.3M of • Total Core Revenues • Customer Deposits $9.6B • Tier 1 Risk-Based shares in the open $179.4M 14.29% market • Loans Held for • NIM 5.51% Investment $7.6B •
Slide 4: Our "Digital First" Strategy at Work
Our “Digital First” Strategy at Work • Retail Digital/Self-Service Channel Use (2Q24) – 94% of all routine transactions – 96% of all deposit transactions – 66% of all loan payments • Key Drivers (2Q24 vs. 2Q23) – 13% growth in digital enrollment – 69% growth in digital loan payments – 26% growth in
Slide 5: Financial Highlights
Financial Highlights Total Core Revenues ($M) EPS TBV $1.08 Per Common Share $179 $1.05 $24.18 $176 $23.55 $174 $0.98 $23.13 $0.96 $0.95 $172 $0.93 $171 $21.06 $21.01 $164 $20.57 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Efficiency Ratio ROAA ROATCE 1.
Slide 6: Operational Highlights
Operational Highlights Loans ($B) Core Deposits ($B) New Loan Origination ($M) Average Balances Average Balances $9.60 $7.61 $9.53 $7.54 $682 $664 $7.42 $589 $7.19 $8.59 $8.62 $8.69 $561 $568 $8.53 $537 $7.00 $6.87 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 7: Credit Quality & Capital Strength
Credit Quality & Capital Strength NCO Rate Provision ($M) NPL Rate Excludes PCD Loans $19.7 $16.4 $15.0 $15.1 $15.6 1.45% 1.05% 1.05% 1.32% 1.33% 0.88% 1.22% 0.79% $9.4 1.10% 1.08% 0.59% 0.38% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 CET1 Ratio Total
Slide 8: Outlook
Outlook Puerto Rico Macro • PR’s economy growing and steadily decoupling from mainland economic uncertainties • Island's infrastructure projects and business investments continue to expand • Keeping watchful eye on interest rate changes, inflation trends, possible mainland recession, and global conf
Slide 9: Appendix
Appendix
Slide 10: Snapshot (June 30, 2024)
Snapshot (June 30, 2024) Branches, Kiosks, ATMs & ITMs in All Major PR & USVI Markets Value Proposition • Puerto Rico’s challenger bank Puerto Rico USVI Total Branches 42 2 44 • Target specific retail and commercial customer segments Self-Service Kiosks 10 0 10 ATMs 299 12 311 • “Más Que Listo (More
Slide 11: History of Capital Management & Growth
History of Capital Management & Growth • Organic growth and acquisitions have transformed Oriental into Assets ($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 $5.2 deposits have expanded 8.5x $9.2 $9.3 $5.0
Slide 12: 2Q24 Asset Balance Evolution ($M)
2Q24 Asset Balance Evolution ($M) 12
Slide 13: 2Q24 Loan Balance Evolution ($M)
2Q24 Loan Balance Evolution ($M) 13
Slide 14: 2Q24 Core Deposit Balance Evolution ($M)
2Q24 Core Deposit Balance Evolution ($M) 14
Slide 15: 2Q24 Deposit Balance Evolution: Retail vs. Commercial
2Q24 Deposit Balance Evolution: Retail vs. Commercial, Ex-Public Funds ($M) 15
Slide 16: Residential Mortgage Loans ($M)
Residential Mortgage Loans ($M) Portfolio New Loan Origination $1,669 $1,622 $1,604 $1,563 $1,519 $1,485 $36 $39 $30 $33 $33 $32 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 NPLs (excludes PCD) NCO Rate $31 $28 $25 0.03% -0.05% -0.10% -0.09% -0.20% -0.16% $20 $19 $1
Slide 17: Commercial Loans ($M)
Commercial Loans ($M) Portfolio New Loan Origination $755 $741 $662 $669 $708 $618 $57 $2,420 $112 $2,322 $2,311 $2,125 $286 $2,105 $17 $27 $1,964 $124 $211 $70 $186 $192 $150 $98 Puerto Rico US Puerto Rico US 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 NPLs (exclu
Slide 18: Auto Loans ($M)
Auto Loans ($M) Portfolio New Loan Origination $2,428 $251 $2,341 $236 $237 $232 $2,274 $222 $224 $2,212 $2,127 $2,039 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 NPLs (excludes PCD) NCO Rate 1.72% 1.42% 1.11% 0.96% $19 0.57% $16 $17 0.09% $14 $13 $15 1Q23 2Q23 3Q2
Slide 19: Consumer Loans ($M)
Consumer Loans ($M) Portfolio New Loan Origination $644 $613 $620 $628 $594 $86 $87 $565 $80 $76 $69 $64 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 NPLs (excludes PCD) NCO Rate 4.45% 4.42% 3.95% 3.30% 3.33% 2.37% $3 $3 $3 $3 $4 $3 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q2
Slide 20: Credit Quality
Credit Quality NCO Rate NPL Rate (excludes PCD) 1.05% 1.05% 0.88% 1.45% 0.79% 0.59% 1.32% 1.33% 1.10% 1.08% 0.38% 1.22% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Early Delinquency Rate Total Delinquency Rate 3.67% 3.78% 3.76% 3.71% 3.40% 3.30% 2.75% 2.76% 2.81% 2.53% 2.41% 2.11% 1Q
Slide 21: Reserve
Reserve ACL / Total Loans Held for Investment 2.37% 2.32% 2.23% 2.22% 2.25% 2.17% 2.14% 2.08% 2.06% 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 ACL by % of Portfolio 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 Auto 3.72 3.66 3.56 3.43 3.16
Slide 22: Core Non-Interest Income ($M)
Core Non-Interest Income ($M) Total Banking Services $18.8 $17.5 $17.4 $17.3 $17.8 $17.3 $32.1 $32.1 $30.9 $30.4 $30.1 $28.5 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Wealth Management Mortgage Banking $10.0 $8.2 $8.1 $8.4 $7.7 $7.1 $5.2 $5.4 $4.7 $4.9 $4.3 $3.9 1Q23 2Q23 3Q23 4Q23
Slide 23: Capital: Fortress Balance Sheet
Capital: Fortress Balance Sheet Basel III Standardized ($ in millions except per share) 2Q23 3Q23 4Q23 1Q24 2Q24 CET1 Capital $1,086.6 $1,124.6 $1,174.2 $1,205.2 $1,223.0 CET1 Capital Ratio 14.03% 14.06% 14.12% 14.45% 14.29% Tier 1 Capital $1,086.6 $1,124.6 $1,174.2 $1,205.2 $1,223.0 Tier 1 Capital
Slide 24: Income Statement Highlights: 2Q24 vs. 1Q24
Income Statement Highlights: 2Q24 vs. 1Q24 $ in millions 2Q24 1Q24 Δ Comment Total Interest Income • Cash $8.7 $8.0 $0.7 • 9% higher average balance & 1 bp lower yield • Investment Securities 24.7 25.8 -1.1 • 4% lower average balance & 2 bps lower yield • Loans 154.3 149.6 4.7 • 1% higher average ba
Slide 25: Income Statement Highlights: 2Q24 vs. 2Q23
Income Statement Highlights: 2Q24 vs. 2Q23 $ in millions 2Q24 2Q23 Δ Comment Total Interest Income • Cash $8.7 $9.0 -$0.3 • 5% lower average balance & 13 bps higher yield • Investment Securities 24.7 13.4 11.3 • 39% higher average balance & 97 bps higher yield • Loans 154.3 135.5 18.8 • 9% higher av
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