Ofg Bancorp · NYSE:OFG
Ofg Bancorp — Q1 2025 Earnings Presentation
26 slides from Ofg Bancorp's earnings presentation, Apr 23, 2025
Slide 1: Quarterly Results 1Q25 Conference Call
Quarterly Results 1Q25 Conference Call April 23, 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: 1Q25 Summary
1Q25 Summary Income Statement Balance Sheet (EOP) Capital Capital Actions • EPS $1.00 • Total Assets $11.7B • CET1 14.27% • Increased quarterly cash • Total Core Revenues • Customer Deposits $9.8B • Tier 1 Risk-Based 14.27% dividend by 20%, to $0.30 $178.3M from $0.25 per share • Loans Held for Inve
Slide 4: Our "Digital First" Strategy at Work
Our “Digital First” Strategy at Work First for Puerto Rico Retail Digital/Self-Service Channel Use (1Q25) • 96% of all routine transactions • 97% of all deposit transactions • 68% of all loan payments Key Drivers (1Q25 vs. 1Q24) • 12% growth digital enrollment • 21% growth digital loan payments • 40
Slide 5: Financial Highlights
Financial Highlights Total Core Revenues ($M) EPS TBV Per Common Share $182 $1.08 $1.09 $26.66 $179 $178 $1.05 $26.15 $176 $1.00 $1.00 $25.43 $174 $174 $0.98 $24.18 $23.13 $23.55 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Efficiency Ratio ROAA ROATCE 54
Slide 6: Operational Highlights
Operational Highlights Loans ($B, Avg. Balance) Core Deposits ($B, Avg. Balance) New Loan Origination ($M) $7.78 $9.53 $9.60 $9.59 $9.56 $9.62 $7.72 $664 $7.61 $7.63 $7.54 $7.42 $8.69 $609 $589 $572 $559 $537 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 L
Slide 7: Credit Quality & Capital Strength
Credit Quality & Capital Strength NCO Rate Provision ($M) NPL Rate $30.2 $25.7 $21.4 $19.7 1.05% 0.88% 0.79% 0.82% $15.6 1.13% 1.06% 1.11% $15.1 1.03% 1.01% 1.03% 1.05% 0.90% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 CET1 Ratio Total Stockholder's Equi
Slide 8: Outlook: Navigating an Uncertain Environment
Outlook: Navigating an Uncertain Environment Puerto Rico • Wages and employment are at historically high levels • Business environment is constructively positive • Investments in public and private projects continuing to flow • Closely monitoring increased global economic and geopolitical volatility
Slide 9: Appendix
Appendix
Slide 10: Snapshot (March 31, 2025)
Snapshot (March 31, 2025) Branches, Kiosks, ATMs & ITMs in All Major PR & USVI Markets Value Proposition Puerto Rico USVI Total • Puerto Rico’s challenger bank Branches 42 2 44 • Target specific retail and commercial customer Self-Service Kiosks 16 2 18 segments ATMs 303 12 315 • “Más Que Listo (Mor
Slide 11: History of Capital Management & Growth
History of Capital Management & Growth • Organic growth and acquisitions have transformed OFG's Oriental into a full- Assets ($B) Loans ($B) service, island-wide financial institution $11.7 $11.5 $7.7 $11.3 $7.4 $7.6 • From 2002-2024, our local $6.6 $6.7 $6.5 deposits have expanded 9.6x $9.8 $9.9 $9
Slide 12: 1Q25 Asset Balance Evolution ($M)
1Q25 Asset Balance Evolution ($M) $119 $11,729 $111 $66 $54 $11,461 $29 $11,501 $(91) $(11) $(9) 9/30/2024 Loans Other Investment Cash 12/31/2024 Loans Other Investment Cash 3/31/2025 12
Slide 13: 1Q25 Loan Balance Evolution ($M)
1Q25 Loan Balance Evolution ($M) $44 $7,853 $50 $2 $65 $7,792 $7,751 $4 $(35) $(13) $(15) 9/30/2024 Mortgage Commercial Consumer Auto 12/31/2024 Mortgage Commercial Consumer Auto 3/31/2025 13
Slide 14: 1Q25 Core Deposit Balance Evolution ($M)
1Q25 Core Deposit Balance Evolution ($M) $46 $214 $9,757 $103 $9,533 $9,449 $52 $42 $(233) 9/30/2024 Time Savings Demand 12/31/2024 Time Savings Demand 3/31/2025 14
Slide 15: 1Q25 Deposit Balance Evolution: Retail vs. Commercial
1Q25 Deposit Balance Evolution: Retail vs. Commercial, Ex-Public Funds ($M) 153.0 $8,220 63.0 7,959 17.0 28.0 8,004 9/30/2024 Retail Commercial 12/31/2024 Retail Commercial 3/31/2025 15
Slide 16: Residential Mortgage Loans ($M)
Residential Mortgage Loans ($M) Portfolio New Loan Origination $1,563 $43 $1,519 $1,485 $1,484 $1,471 $1,436 $39 $37 $37 $33 $32 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 NPLs NCO Rate -0.09% -0.06% -0.14% -0.20% -0.16% -0.14% $20.3 $19.3 $19.0 $17.6 $17.2 $17.1
Slide 17: Commercial Loans ($M)
Commercial Loans ($M) Portfolio New Loan Origination $57 $755 $741 $662 $680 $704 $727 $286 $44 $2,420 $2,438 $2,399 $2,426 $17 $27 $2,322 $2,311 $67 $211 $58 $186 $192 $163 $150 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 NPLs NCO Rate $31 0.58% $19 P.R. -0.01% -
Slide 18: Auto Loans ($M)
Auto Loans ($M) Portfolio New Loan Origination $2,549 $2,593 $2,428 $2,484 $251 $242 $2,274 $2,341 $232 $232 $233 $224 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 NPLs NCO Rate $20.1 $19.1 $16.7 $17.0 1.72% 1.64% 1.63% $14.5 $14.0 1.42% 1.11% 1.63% 4Q23 1Q24 2Q24
Slide 19: Consumer Loans ($M)
Consumer Loans ($M) Portfolio New Loan Origination $664 $669 $671 $628 $644 $87 $620 $80 $69 $69 $68 $64 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 NPLs NCO Rate 4.70% 4.45% 4.42% $4.2 $3.9 3.95% $3.6 $3.5 3.72% 4.34% $3.4 $3.3 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23
Slide 20: Credit Quality
Credit Quality NCO Rate NPL Rate 1.13% 1.11% 1.05% 1.05% 1.03% 1.03% 1.06% 1.01% 0.88% 0.90% 0.79% 0.82% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Early Delinquency Rate Total Delinquency Rate* 2.95% 4.38% 2.76% 2.81% 2.78% 4.10% 3.76% 3.71% 2.41% 3.49% 2.19% 3.30% 4Q23 1Q24 2Q24 3
Slide 21: Allowance
Allowance ACL / Total Loans Held for Investment 2.26% 2.31% 2.22% 2.25% 2.17% 2.14% 2.08% 2.06% 2.08% 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 ACL by % of Portfolio 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 Auto 3.43 % 3.16 % 3.25 % 3.
Slide 22: Core Non-Interest Income ($M)
Core Non-Interest Income ($M) Total Banking Services $18.8 $17.8 $17.3 $32.1 $32.1 $32.8 $16.0 $30.1 $15.6 $15.3 $29.2 $26.3 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Wealth Management Mortgage Banking $6.8 $10.6 $10.0 $4.9 $4.7 $4.8 $8.1 $8.4 $8.4 $8.5 $4.3 $2.3 4Q23 1Q24 2Q24 3Q2
Slide 23: Capital: Fortress Balance Sheet
Capital: Fortress Balance Sheet Basel III Standardized ($ in millions except per share) 1Q24 2Q24 3Q24 4Q24 1Q25 CET1 Capital $ 1,205.2 $ 1,223.0 $ 1,260.9 $ 1,256.9 $ 1,261.7 CET1 Capital Ratio 14.45 % 14.29 % 14.37 % 14.26 % 14.27 % Tier 1 Capital $ 1,205.2 $ 1,223.0 $ 1,260.9 $ 1,256.9 $ 1,261.7
Slide 24: Income Statement Highlights: 1Q25 vs. 4Q24
Income Statement Highlights: 1Q25 vs. 4Q24 $ in millions 1Q25 4Q24 Δ Comment Total Interest Income • Cash $ 6.3 $ 6.5 $ (0.2) • 6% higher average balance & 32 bps lower yield • Investment Securities 29.5 28.3 1.2 • 3% higher average balance & 7 bps higher yield • Loans 153.4 155.3 (1.9) • 1% higher
Slide 25: Income Statement Highlights: 1Q25 vs. 1Q24
Income Statement Highlights: 1Q25 vs. 1Q24 $ in millions 1Q25 1Q24 Δ Comment Total Interest Income • Cash $ 6.3 $ 8.0 $ (1.7) • 1% lower average balance & 104 bps lower yield • Investment Securities 29.5 25.8 3.7 • 7% higher average balance & 27 bps higher yield • Loans 153.4 149.6 3.8 • 3% higher a
Slide 26: Thank you.
Thank you. Contact: IR Coordinators Gary Fishman gfishman@ofgbancorp.com Michael Wichman mwichman@ofgbancorp.com 212-532-3232