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OFG Bancorp Reports 3Q21 Results

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SAN JUAN, Puerto Rico, October 20, 2021--(BUSINESS WIRE)--OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, reported results for the third quarter ended September 30, 2021.

CEO Comment

José Rafael Fernández, Chief Executive Officer, said: "We had another strong overall quarterly performance as we continue to execute our strategic plan.

"Results reflect consistently growing recurring net income, our larger scale, our focus on increasing digital utilization and customer service differentiation, and Puerto Rico’s nascent economic and post-pandemic recovery.

"3Q21 new loan origination remained strong at $556 million. Compared to 2Q21, loans ex-PPP increased, cost of funds declined 17%, customer deposits increased $154 million, and net interest income continued to steadily grow.

"Provision for credit losses was a $5 million net benefit as asset quality continued to trend to levels closer to US peer banks. Total banking and financial service revenues rose 3%, and non-interest expenses fell 5%, reflecting in part reduced credit related expenses.

"During 3Q21, we also successfully executed on our buyback program, acquiring $40.2 million of shares as part of our previously announced $50.0 million authorization.

"Return on Average Assets and Average Equity was 1.59% and 17.72%, respectively.

"OFG is strategically well-positioned to continue to benefit from and play a major role supporting the economic development of the communities we serve. Thanks to all our team members who have been more than ready to help our customers achieve their goals."

3Q21 Highlights

Summary: Earnings per share diluted of $0.81 compared to $0.78 in 2Q21 and $0.50 in 3Q20. Total core revenues of $134.7 million compared to $133.3 million in 2Q21 and $127.0 million in 3Q20. Net interest margin of 4.12% compared to 4.22% in 2Q21 and 4.30% in 3Q20.

Total Interest Income of $112.1 million compared to $113.5 million in 2Q21. 3Q21 reflected mortgage paydowns and PPP loan forgiveness mostly offset by increased income from auto and commercial loans, and investment securities. Average loan balances were $6.47 billion compared to $6.60 billion in 2Q21 and $6.79 billion in 3Q20.

New Loan Origination totaled $556.2 million compared to $673.6 million in 2Q21 and $457.8 million in 3Q20. 3Q21 reflected continued high levels of auto, commercial, consumer, and mortgage lending.

Total Interest Expense was $9.4 million compared to $11.2 million in 2Q21 and $15.4 million in 3Q20. 3Q21 reflected lower cost of core deposits (30 bps compared to 38 bps in 2Q21 and 56 bps in 3Q20) primarily due to generally lower rates and CD maturities. Average customer deposit balances were $9.10 billion compared to $8.96 billion in 2Q21 and $8.38 billion in 3Q20.

Provision for Credit Losses was a net benefit of $5.0 million, reflecting $4.3 million in net reserve releases. This compares to a net benefit of $8.3 million in 2Q21 and a net expense of $13.7 million in 3Q20. 3Q21 reflected continued improvement in asset quality trends. 3Q21 net charge-offs of $6 million included $6.5 million for a previously reserved amount on a commercial loan.

Banking and Financial Service Revenues were $32.0 million compared to $31.0 million in 2Q21 and $27.5 million in 3Q20. 3Q21 reflected continued higher levels of banking service, wealth management, and mortgage banking activity as pandemic-related restrictions have subsided.

Non-Interest Expenses were $78.9 million compared to $82.7 million in 2Q21 and $83.4 million in 3Q20. 3Q21 reflected a $2.2 million benefit in credit related expenses from gains on sales of real estate owned, previously announced cost savings, and increased compensation. 2Q21 included a $2.2 million technology project write down.

Pre-Provision Net Revenues were $56.3 million compared to $51.8 million in 2Q21 and $47.4 million in 3Q20.

Loans Held for Investment totaled $6.41 billion at 9/30/21 compared to $6.50 billion at 6/30/21 and $6.76 billion at 9/30/20. Excluding PPP loans, loans held for investment of $6.27 billion increased $5.0 million compared to 2Q21.

Capital: Tangible book value per share was $18.59 compared to $18.13 in 2Q21 and $16.51 in 3Q20. CET1 ratio was 13.52% compared to 13.95% 2Q21 and 12.55% in 3Q20.

Conference Call, Financial Supplement & Presentation

A conference call to discuss 3Q21 results, outlook and related matters will be held today at 10:00 AM ET. Phone (877) 876-9174 or (785) 424-1669. Conference ID: OFGQ321. The call can also be accessed live on Webcast replay will be available shortly thereafter.

OFG’s Financial Supplement, with full financial tables for the quarter ended September 30, 2021, and the 3Q21 Conference Call Presentation, can be found on the Quarterly Results page on OFG’s Investor Relations website at

Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations.

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 that may cause actual results to differ materially from those expressed in the forward-looking statements.

Factors that might cause such a difference include but are not limited to (i) general business and economic conditions, including changes in interest rates; (ii) cybersecurity breaches; (iii) hurricanes, earthquakes, and other natural disasters in Puerto Rico; (iv) competition in the financial services industry; and (v) the severity, magnitude and duration of the COVID-19 pandemic, and its impact on our operations, personnel, and customers.

For a discussion of such factors and certain risks and uncertainties to which OFG is subject, please refer to OFG’s annual report on Form 10-K for the year ended December 31, 2020, as well as its other filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, OFG assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

About OFG Bancorp

Now in its 57th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at

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Puerto Rico & USVI: Idalis Montalvo ( at (787) 777-2847

US: Gary Fishman ( and Steven Anreder ( at (212) 532-3232

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