Ofg Bancorp · NYSE:OFG
Ofg Bancorp — Q1 2020 Earnings Presentation
25 slides from Ofg Bancorp's earnings presentation, Apr 29, 2020
Slide 1: Quarterly Results 1Q20 Conference Call
Quarterly Results 1Q20 Conference Call April 29, 2020
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: Covid-19 Response
Covid-19 Response Employees Customers Businesses • Enhanced workplace safety. Providing • Uninterrupted and superior levels of service. • Extensive outreach. Contacted more than 90% protective gear. Increased sanitation. Remote Achieved through all channels – phone, digital, of commercial clients by
Slide 4: Customer Technology & PPP Trends
Customer Technology & PPP Trends • Our teams quickly Mobile Banking Customers People Pay Transactions % Digital Payments implemented unique and Active User Growth Since 1Q17 Growth Since 1Q17 Of All Loan & Credit Card Payments first to market digital tools 57% to apply for forbearance 43% 43% 53% an
Slide 5: 1Q20 Summary
1Q20 Summary Income Statement (YoY) Balance Sheet (YoY) Regulatory Capital Ratios • EPS of $0.00 vs. $0.42 • Loans $6.5B up 49% • CET1 of 11.67% • Net Core Revenues of $131M up 33% • New Production $280M up 1% • Leverage of 10.14% • Net Interest Income of $105M up 29% • Cash $1.3B up 160% (total ava
Slide 6: Financial Highlights
Financial Highlights Net Core Revenues ($M) EPS TBV Per Common Share $131.3 $17.03 $17.11 $16.56 $16.15 $15.96 $101.3 $99.3 $99.2 $99.3 $98.4 $0.45 $15.60 $0.42 $0.43 $0.11 ($0.05) $0.00 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Efficiency Ratio* ROAA*
Slide 7: Operational Highlights
Operational Highlights Loans ($B) Core Deposits ($B) Loan Generation ($M) Average Balances Average Balances $7.52 $6.69 $405 $4.46 $4.50 $4.51 $4.54 $4.50 $323 $327 $4.46 $4.39 $4.47 $4.56 $4.58 $291 $276 $280 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Slide 8: Credit Quality & Capital Strength
Credit Quality & Capital Strength NCO Rate Provision ($M) NPL Rate Excludes PCD Loans $48.5 $43.8 3.56% 3.28% 3.38% 2.94% $23.1 2.01% 2.07% 1.79% 1.18% 1.36% 1.36% 1.48% 1.44% $17.7 $11.3 $12.2 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 CET1 Ratio Total
Slide 9: Reserve Build
Reserve Build $ in millions Auto Consumer Mortgage Commercial Total Allowance 12/31/2019 $32.8 $18.4 $30.4 $34.9 $116.5 CECL Impact 16.6 8.6 18.8 45.7 89.7 Allowance 1/1/2020 49.4 27.0 49.2 80.6 206.2 Build Reserves 1Q20 (net of provision, NCOs and recoveries) 5.1 1.0 1.1 17.4 24.6 Allowance 3/31/20
Slide 10: Capital: Fortress Balance Sheet
Capital: Fortress Balance Sheet Delta Basel III Standardized ($ in millions except per share) 1Q19 4Q19 1Q20 (1Q20 vs. 4Q19) CET1 Capital $832.9 $735.4 $816.4 CET1 Capital Ratio 17.09% 10.91% 11.67% 0.76% Tier 1 Capital 949.8 852.3 933.2 Tier 1 Capital Ratio 19.49% 12.64% 13.34% 0.70% Total Capital
Slide 11: Loan Moratoriums & Escalated Monitoring
Loan Moratoriums & Escalated Monitoring Moratoriums Retail Moratoriums Loan Amounts ($M) # Loans % of Portfolio • Retail: Moratoriums granted on 29,948 loans, Auto $455.8 21,937 29.9% totaling $721M, equal to 16.9% of the combined Consumer & Credit Cards $84.0 6,595 16.9% portfolio (as of 4/27/20) R
Slide 12: Conclusion
Conclusion Managed Challenging Environment Well • First and only bank in Puerto Rico to provide Covid-19 related digital solutions to help individual and business customers bank online • Uninterrupted and superior levels of service through all channels while maintaining employee/customer safety/soci
Slide 13: Appendix
Appendix
Slide 14: Financial Snapshot (March 31, 2020)
Financial Snapshot (March 31, 2020) • Total Assets: $9.2 billion Branches and/or ATMs in All Major Puerto Rico Markets* • Loans: $6.8 billion * Former Scotiabank branches in grey • Deposits: $7.6 billion – $1.7 billion non-interest bearing • Wealth Management: $4.9 billion AUM • Total Stockholders’
Slide 15: Residential Mortgage Loans ($M)
Residential Mortgage Loans ($M) Portfolio New Production *Scotia acquisition $2,489 added $1.45B in $2,450 loans at 12/31/19 $1,236 $1,197 $1,173 $1,083 $33 $31 $23 $22 $24 $24 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Non-Performing Loans (excludes PCD) NCO Rat
Slide 16: Commercial Loans ($M)
Commercial Loans ($M) Portfolio New Production *Scotia acquisition added $406M in loans at 12/31/19 $229 $2,222 $2,301 $1,830 $1,795 $1,835 $1,778 $124 $120 $101 $92 $78 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Non-Performing Loans (excludes PCD) NCO Rate* $51
Slide 17: Auto Loans ($M)
Auto Loans ($M) Portfolio New Production *Scotia acquisition added $233M in loans at 12/31/19 $1,523 $1,530 $142 $136 $1,281 $1,190 $1,226 $1,149 $124 $120 $110 $109 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Non-Performing Loans (excludes PCD) NCO Rate* 2.54% 2.
Slide 18: Consumer Loans ($M)
Consumer Loans ($M) Portfolio New Production *Scotia acquisition added $121M in $505 loans at 12/31/19 $485 $374 $374 $389 $385 $48 $48 $42 $41 $42 $39 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Non-Performing Loans (excludes PCD) NCO Rate* 5.05% 5.16% 4.45% 4.60
Slide 19: Core Non-Interest Income ($M)
Core Non-Interest Income ($M) Notes $26.2 • Banking services enhanced through financial technology offerings $3.2 • Mortgage banking reflects production levels, amounts sold into the secondary market, $19.3 servicing fees, and MSR valuation $18.5 $19.2 $18.1 $7.3 $0.8 $17.6 • 1Q20 growth due to bene
Slide 20: Credit Quality
Credit Quality Excludes acquired loans Net Charge Off Rate* Non-Performing Loan Rate (excludes PCD) 3.56% 1.36% 1.36% 1.48% 1.44% 1.18% 3.28% 3.38% 2.94% 2.01% 1.79% 2.07% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Notes Total Delinquency Rate • 1Q20 did not experience much of an af
Slide 21: Tangible Common Equity
Tangible Common Equity TBV Per Common Share TCE Ratio $17.11 14.07% $17.03 13.71% $16.56 13.05% $16.15 12.76% $15.96 $15.60 8.96% 8.80% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Tangible Common Equity ($M) $874 $879 $850 $829 $821 $800 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 21
Slide 22: Income Statement Highlights: 1Q20 vs. 1Q19
Income Statement Highlights: 1Q20 vs. 1Q19 $ in millions 1Q20 1Q19 Δ Comment Total Interest Income • Loans $116.5 $84.2 +$32.3 • Scotiabank loans partially offset by impact of rate cuts on variable commercial loans • Cash 2.8 2.4 +0.4 • Higher balances partially offset by rate cuts • Investment Secu
Slide 23: Income Statement Highlights: 1Q20 vs. 4Q19
Income Statement Highlights: 1Q20 vs. 4Q19 $ in millions 1Q20 4Q19 Δ Comment Total Interest Income • Loans $116.5 $84.9 +$31.6 • Scotiabank loans partially offset by impact of rate cuts on variable commercial loans • Cash 2.8 3.7 -0.9 • Higher balances partially offset by rate cuts • Investment Secu
Slide 24: 6 Quarter Trend
6 Quarter Trend $ in thousands, except per share data 1Q201 4Q192 3Q193 2Q19 1Q19 4Q18 Loans (average balances) $6,687,987 $4,500,075 $4,539,045 $4,514,030 $4,504,725 $4,460,002 Interest-earning assets (average balances) $8,556,533 $5,886,383 $5,981,756 $6,034,338 $6,152,202 $6,170,455 Net interest
Slide 25: Thank you.
Thank you. Contact: IR Coordinator Gary Fishman gfishman@ofgbancorp.com 212-532-3232 Steven Anreder sanreder@ofgbancorp.com 212-532-3232