UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________________________
FORM 8-K
_________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February
1, 2016
OFG
Bancorp
(Exact Name of Registrant as Specified
in its Charter)
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Commonwealth of Puerto Rico
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001-12647
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66-0538893
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(State or other Jurisdiction of Incorporation)
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(Commission File No.)
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(I.R.S. Employer
Identification No.)
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Oriental Center, 15th Floor
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254 Muñoz Rivera Avenue
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San Juan, Puerto Rico
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00918
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(Address of Principal Executive
Offices)
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(Zip Code)
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Registrant’s
telephone number, including area code: (787) 771-6800
(Former Name or Former Address, if Changed Since
Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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☐
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Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02. Results of
Operations and Financial Condition.
On
February 1, 2016, OFG Bancorp (the “Company”) announced the results for the
quarter ended December 31, 2015. A copy of the Company’s press release is
attached as an exhibit to this report.
Item 9.01.
Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No.
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Description
of Document
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99
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Press
release by the Company dated February 1, 2016.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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OFG
BANCORP
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Date:
February 1, 2016
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By:
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/s/
Ganesh Kumar
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Ganesh
Kumar
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Executive
Vice President and Chief Financial Officer
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Exhibit 99
OFG
Bancorp Reports 4Q15 and 2015 Results
SAN JUAN, Puerto Rico,
February 1, 2016 – OFG Bancorp (NYSE: OFG) today reported results for the
fourth quarter and the year ended December 31, 2015.
4Q15 Results
• A loss of ($4.4) million, or
($0.10) per share fully diluted. This compares to net income of $1.1 million,
or $0.03 per share diluted, in the preceding quarter, and $17.1 million, or
$0.36 per share diluted, in the same quarter a year ago.
• Results included:
o
An
additional $30.4 million provision on the $200 million participation in a
syndicated fuel line of credit to the
Puerto Rico Electric Power Authority (PREPA), reflecting continued hurdles in
restructuring the credit. Currently in non-accrual status, interest payments
are being credited to the payment of principal. The unpaid principal balance,
net of allowances, was $135.9 million, or 68.5% of the total outstanding
credit, at December 31, 2015.
o
$9.2
million in other quarter-specific charges or expenses, consisting of $4.9
million impairment during the annual recasting of a BBVA PR loan pool, $1.5
million in additional legal fees related to PREPA negotiations, $1.6 million in
final adjustments to the 2Q15 settlement of the Eurobank commercial shared loss
agreement with the FDIC, and $1.2 million in an Other Than Temporary Impairment
(OTTI) related to a $11.0 million Puerto Rico Industrial Development Company
(PRIDCO) bond.
o
$19.9
million in tax benefits primarily resulting from the 4Q15 loss.
• Adjusted for the above listed
factors, OFG earned $9.1 million, or $0.21 per share fully diluted, assuming an
effective tax rate of 33%.*
4Q15 Highlights
• All components of our business
continued strong as in previous quarters:
o
Pre-Provision
Net Revenues of
$36.4 million compared to an average of $38.3 million the last two quarters.
o New loan production at $236.8
million compared to an average of $254.0 million the last four quarters.
o
Banking
and wealth management fee revenues at $19.3 million compared to an average of
$19.6 million the last four quarters.
o
Tangible
book value per common share of $14.53 and tangible common equity (TCE) ratio of
9.10% at December 31, 2015.
• OFG’s focus on cost control
brought non-interest expenses down 5.4% from 4Q14, largely due to proactive
rightsizing.
• Asset quality trends were
encouraging. Early and total delinquency rates fell to 3.70% and 6.94% of
loans, respectively, from 4.91% and 8.99% in 4Q14. The non-performing loan rate
(excluding PREPA) at 3.63% was the lowest it has been in five quarters.
2015 Summary
• A loss of ($16.4) million, or
($0.37) per share, compared to net income of $71.3 million, or $1.50 per share
diluted, for 2014.
• Results reflected significant
de-risking steps, including the following:
o
Puerto
Rico central government and public corporation loan balances fell 47.8% to
$211.9 million at December 31, 2015, from $406.1 million a year ago. Loans to
Puerto Rico municipalities declined 4.4% to $203.5 million, and Puerto Rico
securities balance came down 15.0% to $17.8 million.
o
Successful
negotiation and termination of the FDIC commercial shared loss agreement. This
resulted in a $10.2 million increase in share loss amortization in 2Q15, but a
reduction of approximately $10 million a quarter going forward.
o
Successful
bulk sale of $235.2 million in unpaid principal balances of acquired NPAs. This
resulted in a charge of $20.2
million pre-tax in 3Q15.
o
In all,
the de-risking resulted in normalization of net interest margin to 5.03% from
5.84%, primarily reflecting contraction from the steep reduction in tax exempt,
high yield, government related loans.
• Growth of the Oriental retail
franchise through new customers, products and services.
o
Oriental
Bank furthered its innovative edge in 3Q15 with the launch of MyStatus. The
industry-first mobile app updates home buyers on every step of their mortgage
application from origination through closing.
o MyStatus followed the
introduction of FOTOdepósito, People Pay, and Cuenta Libre (Freedom Account).
With Cuenta Libre, customers who access their accounts via mobile phone, tablet,
web, debit / credit card, or ATMs, do not have to pay ATM fees.
o
New
products and services like these helped Oriental Bank add 15,400 net new retail
customers, increasing its total customer base by 4.40%. New customers added
approximately $67 million in deposits, $115 million in loans, and $15 million
in wealth management assets.
o
In total,
new loan production of $1.0 billion increased 10.3% year over year, with
commercial up 38.9%, residential mortgage up 14.8%, and consumer up 17.3%, more
than offsetting a decline in auto.
CEO
Comment
José Rafael Fernández,
President, Chief Executive Officer, and Vice Chairman of the Board, commented:
“Our core business performed
well this past quarter and year, given the challenging economy and Puerto
Rico’s fiscal situation. We maintained good levels of interest and non-interest
revenues and loan production, while retaining a solid capital position. This
enabled us to take decisive de-risking actions to further strengthen our
balance sheet. Non-interest expenses declined, most credit metrics improved,
and we continued to expand the Oriental franchise.
“Clearly,
market valuations and sentiment regarding OFG outside of Puerto Rico appear to
be incongruent to our core performance and asset quality trends and positions.
“We
are cognizant of the high level of uncertainty regarding Puerto Rico’s future.
While lower fuel prices have significantly enhanced personal disposable income
and reduced operating costs for businesses, the Government lost an opportunity
to take a major step in solving the fiscal situation when the Legislature, for
a second time, delayed voting on the PREPA Revitalization Act.
“Despite
the difficult environment in which we operate, we remain steadfast in our long
standing management strategies: maintaining discipline in underwriting,
pricing, operations and expenses. Furthermore, we have shifted our capital
management strategy toward preserving and continuing to build excess capital.
We believe this is the prudent thing to do until we can get a better read on
the future.
“Looking
forward to 2016 and beyond, we expect to continue to perform well, although
somewhat affected by lower interest income from a smaller balance of acquired
loans. Ultimately, we look forward to putting our PREPA exposure behind us, to
better highlight our solid core business performance.
“As
for Puerto Rico itself, a comprehensive solution is needed to overcome the
fiscal challenges and to improve the island’s competitiveness. We are
encouraged by the attention Puerto Rico has received in Washington, but the
time for talk is over. Leadership needs to take tangible actions.”
4Q15
Income Statement Highlights
The following compares GAAP and
Non-GAAP Adjusted Results for the fourth quarter 2015 to the third quarter
2015.
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Quarter ended September
30, 2015
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Quarter ended December 31,
2015
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Loss on Bulk Sale
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Actual Results
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of Non-Performing
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Quarter Specific
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Non-Recurrent
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Adjusted Results
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Actual Results
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Quarter Specific
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Non-Recurrent
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(Dollars in thousands) (unaudited)
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(US GAAP)
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Loans and OREOs
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Items
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(Non-GAAP)
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(Non-GAAP)
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(US GAAP)
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Items
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(Non-GAAP)
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Interest income
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$
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107,247
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$
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7,058
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$
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3,180
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$
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97,009
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$
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92,907
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$
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-
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$
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92,907
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Interest expense
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(17,423)
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-
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-
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(17,423)
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(17,285)
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-
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(17,285)
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Net interest income
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89,824
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7,058
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3,180
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79,586
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75,622
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-
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75,622
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Provision for loan and lease losses, excluding acquired loans
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(10,459)
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-
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-
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(10,459)
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(45,012)
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(30,345)
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(14,667)
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Provision for acquired BBVAPR loan and lease losses
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(7,630)
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(5,175)
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-
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(2,455)
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(7,332)
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(4,900)
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(2,432)
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(Recapture) provision for acquired Eurobank loan and lease
losses
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(33,490)
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(32,855)
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-
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(635)
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154
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-
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154
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Total provision for loan and lease losses, net
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(51,579)
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(38,030)
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-
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(13,549)
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(52,190)
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(35,245)
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(16,945)
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Net interest income after provision for loan and leases
losess
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38,245
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(30,972)
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3,180
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66,037
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23,432
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(35,245)
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58,677
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Banking and wealth management revenues
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18,703
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-
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778
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17,925
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19,349
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-
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19,349
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Other-than-temporary impairment losses on investment securities
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(246)
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-
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(246)
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-
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(1,244)
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(1,244)
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-
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FDIC shared-loss expense, net
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(2,079)
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-
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-
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(2,079)
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(4,400)
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(1,589)
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(2,811)
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Gain on FDIC shared-loss coverage in sale of loans
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20,000
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20,000
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-
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-
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-
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-
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-
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Other (losses) gains, net
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(401)
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-
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-
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(401)
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565
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-
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565
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Total non-interest income
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35,977
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20,000
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532
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15,445
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14,270
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(2,833)
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17,103
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Compensation and employee benefits
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(21,015)
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-
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(917)
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(20,098)
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(18,717)
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-
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(18,717)
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Rent and occupancy costs
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(8,556)
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-
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-
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(8,556)
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(8,111)
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-
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(8,111)
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General and administrative expenses
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(39,519)
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(9,260)
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180
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(30,439)
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(31,714)
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(1,462)
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(30,252)
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Total non-interest expense
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(69,090)
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(9,260)
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(737)
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(59,093)
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(58,542)
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(1,462)
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(57,080)
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Income before taxes
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5,132
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(20,232)
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2,975
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22,389
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(20,840)
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(39,540)
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18,700
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Income tax expense (benefit)
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562
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7,388
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(19,863)
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6,171
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Net income
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4,570
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15,001
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(977)
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12,529
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Preferred stock dividends
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(3,465)
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(3,465)
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(3,466)
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(3,466)
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Net income (loss) available to common shareholders
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$
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1,105
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$
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11,535
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(4,443)
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$
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9,063
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Earnings (loss) per common share - basic
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$
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0.03
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$
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0.26
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$
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(0.10)
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$
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0.21
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Earnings (loss) per common share - diluted
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$
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0.03
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$
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0.26
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$
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(0.10)
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$
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0.21
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Performance Metrics
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Net interest margin
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5.29%
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4.68%
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4.55%
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4.55%
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Return on average assets
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0.25%
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0.82%
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-0.05%
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0.70%
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Return on average tangible common stockholders' equity
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0.68%
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7.08%
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-2.75%
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5.62%
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Efficiency ratio
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63.66%
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60.60%
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61.64%
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60.10%
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(1) 3Q15 results
included ($20.2) million pre-tax impact from the bulk sale of acquired NPAs,
reflecting: (i) $7.0 million cost recoveries, (ii) ($38.0) million impairment
provisions, (iii) $20.0 million FDIC receivable for its share of the loss, and
(iv) ($9.3) million loss on other real estate owned.
(2) 3Q15 results
also included other
quarter specific items, consisting of: (i) $3.2 million cost recovery in
interest income due to a prepayment, (ii) $778,000 fee revenue from a
prepayment penalty, (iii) ($246,000) in an OTTI charge, (iv) ($917,000)
additional severance accrual, and (v) $180,000 from a onetime vendor credit.
(3) 4Q15 results
included the following quarter specific items, as previously mentioned: ($30.4)
million provision related to the PREPA line, ($4.9) million impairment during
the annual recasting of a BBVA PR loan pool, ($1.5) million in legal fees
related to PREPA’s restructuring, ($1.6) million in a final settlement with the
FDIC related to the expiration of the commercial loss sharing agreement, ($1.2)
million in OTTI, and a $19.9 million tax benefit.
Adjusted for the above listed
factors:
• Interest Income declined $4.1 million to $92.9
million due to lower balances and yields in the BBVA PR acquired portfolio,
partially offset by higher interest income from a greater volume of originated loans.
• Interest Expense declined slightly to $17.3
million with the repayment of repurchase agreements used for temporary funding
in 3Q15.
• Total Provision for Loan and
Lease Losses
increased $3.4 million to $16.9 million. This included $2.5 million for originated
loans due to increased net charge offs and $1.0 million in re-yielding from the
annual evaluation
of certain acquired loan pools.
• Net Interest Margin was 4.55% compared to 4.68%,
primarily due to lower yields on acquired loans.
• Total banking and wealth
management revenues increased
$1.4 million to $19.3 million, primarily due to certain annual fees in wealth
management and an increase in fees arising from mortgage banking activities.
• Total Non-Interest Expenses declined $2.0 million to
$57.1 million, primarily due to reduced compensation and employee benefits.
December
31, 2015 Balance Sheet Highlights
The following compares data as
of December 31, 2015 to September 30, 2015 unless otherwise noted.
• Total loans declined to $4.43 billion from
$4.47 billion, as originated loans partially offset outflows in acquired loans.
• Total investments were approximately level at
$1.62 billion as mark to market and prepayments of mortgage backed
securities were mostly offset by purchases.
• Total deposits remained approximately level
at $4.72 billion with slightly lower savings and slightly higher short-term
brokered balances.
• Total borrowings declined to $1.37 billion from
$1.44 billion due to the previously mentioned repayment of short-term
repurchase agreements.
• Total stockholders’ equity declined to $897.1 million
from $907.9 million, reflecting a reduction in retained earnings and in
accumulated other comprehensive income, net.
Credit
Quality Highlights
The following compares data
for the fourth quarter 2015 to the third quarter 2015 unless otherwise noted.
• Net charge-off (NCO) rate at 1.67% increased 44 basis
points. The increase in commercial NCOs was primarily due to one loan, while
the increase in auto NCOs was from a year end push to reduce repo inventory.
• Early delinquency rate continued to fall to
3.70%, its lowest level in the last five quarters, due to measures taken to
proactively manage the environment in Puerto Rico.
• Non-performing loan rate at 9.74% declined 58 basis
points most notably due to commercial, auto and consumer, while holding nearly
flat in mortgage.
• Allowance for loan and lease
losses
increased $32.3 million to $112.6 million primarily due to the increased PREPA
provision. Coverage of loans held for investment increased to 3.62% from 2.65%.
Capital Position
The
following compares data for the fourth quarter 2015 to the third quarter 2015.
Regulatory
capital ratios continued to be significantly above requirements for a
well-capitalized institution.
• Tangible common equity to
total tangible assets at
9.10% declined one basis point.
• Common Equity Tier 1 Capital
Ratio (using Basel III methodology) increased
to 12.15% from 12.03%.
• Total risk-based capital ratio
increased to
17.30% from 16.93%.
Conference
Call
A conference
call to discuss OFG’s results for the fourth quarter 2015, outlook and related
matters will be held today, Monday, February 1, 2016 at 10:00 AM Eastern Time.
The call will be accessible live via a webcast on OFG’s Investor Relations
website at www.ofgbancorp.com. A webcast
replay will be available shortly thereafter. Access the webcast link in advance
to download any necessary software.
Financial
Supplement
OFG’s Financial Supplement,
with full financial tables for the fourth quarter ended December 31, 2015, can
be found on the Webcasts, Presentations & Other Files page, on OFG’s
Investor Relations website at www.ofgbancorp.com.
*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 the SEC Regulation G, to
clarify and enhance understanding of past performance and prospects for the
future.
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) the rate
of growth in the economy and employment levels, as well as general business and
economic conditions; (ii) changes in interest rates, as well as the magnitude
of such changes; (iii) a credit default by the government of Puerto Rico; (iv)
the fiscal and monetary policies of the federal government and its agencies;
(v) changes in federal bank regulatory and supervisory policies, including
required levels of capital; (vi) the relative strength or weakness of the
consumer and commercial credit sectors and of the real estate market in Puerto
Rico; (vii) the performance of the stock and bond markets; (viii) competition
in the financial services industry; and (ix) possible legislative, tax or regulatory
changes.
For a
discussion of such factors and certain risks and uncertainties to which OFG is
subject, see OFG’s annual report on Form 10-K for the year ended December 31,
2014, 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 52nd year in business, OFG Bancorp is a diversified financial
holding company that operates under U.S. and Puerto Rico banking laws and
regulations. Its three principal
subsidiaries,
Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a
full range of commercial, consumer and mortgage banking services, as well as
financial planning, trust, insurance, investment brokerage and investment
banking services, primarily in Puerto Rico, through 48 financial centers.
Investor information can be found at www.ofgbancorp.com.
# # #
Contacts
Puerto Rico:
Alexandra López (allopez@orientalbank.com) at (787) 522-6970
US:
Steven Anreder (sanreder@ofgbancorp.com) and Gary Fishman (gfishman@ofgbancorp.com) at (212) 532-3232
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OFG Bancorp
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Financial Supplement
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The information contained in this Financial Supplement is
preliminary and based on data available at the time of the earnings
presentation, and investors should refer to our December 31, 2015 Annual
Report on Form 10-K once it is filed with the Securities and Exchange
Commission.
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Table of Contents
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Pages
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OFG
Bancorp (Consolidated Financial Information)
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Table 1:
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Financial and Statistical Summary - Consolidated
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2
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Table 2:
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Consolidated Statements of Operations
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3
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Table 3:
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Consolidated Statements of Financial Condition
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4
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Table 4:
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Information on Loan Portfolio and Production
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5
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Table 5:
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Average Balances, Net Interest Income and Net Interest Margin
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6-7
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Table 6:
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Loan Information and Performance Statistics (Excluding Acquired
Loans)
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8-9
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Table 7:
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Allowance for Loan and Lease Losses
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10
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Table 8:
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Accretable Yield on Loans Accounted for Under ASC 310-30 (Loans
Acquired
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with Deteriorated Credit Quality, Including those by Analogy)
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11
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Table 9:
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Reconciliation of Non-GAAP Measures and Calculation of
Regulatory
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Capital Measures
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12-13
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Table 10:
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Notes to Financial Summary, Selected Metrics, Loans, and
Consolidated
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Financial Statements
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14
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OFG Bancorp (NYSE:
OFG)
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Table 1: Financial and Statistical
Summary - Consolidated
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2015
|
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2015
|
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2015
|
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2015
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2014
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2015
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2014
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(Dollars in thousands, except per
share data) (unaudited)
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Q4
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Q3
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Q2
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Q1
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Q4
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YTD
|
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YTD
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Earnings
|
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Net interest income
|
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$
|
75,622
|
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$
|
89,823
|
|
$
|
82,292
|
|
$
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89,635
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$
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97,128
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$
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337,372
|
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$
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408,475
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Non-interest income, net (core)
|
(2)
|
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19,349
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18,703
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19,359
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19,223
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|
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20,981
|
|
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76,634
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77,948
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Non-interest expense
|
|
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58,542
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69,090
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64,437
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56,332
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61,898
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|
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248,401
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|
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242,725
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Pre-provision net revenues
|
|
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36,429
|
|
|
39,436
|
|
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37,214
|
|
|
52,526
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|
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56,211
|
|
|
165,605
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|
|
243,698
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Provision for loan and lease losses
|
(3)(34)
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52,190
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|
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51,579
|
|
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15,539
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|
|
42,193
|
|
|
16,877
|
|
|
161,501
|
|
|
60,640
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FDIC shared-loss expense, net
|
(33)
|
|
|
4,400
|
|
|
2,079
|
|
|
23,245
|
|
|
13,084
|
|
|
11,980
|
|
|
42,808
|
|
|
65,756
|
Net (loss) income before income taxes
|
|
|
|
(20,840)
|
|
|
5,131
|
|
|
(2,340)
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|
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(2,009)
|
|
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27,449
|
|
|
(20,058)
|
|
|
122,433
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Net (loss) income
|
|
|
|
(976)
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|
|
4,569
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|
(3,109)
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|
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(2,988)
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20,593
|
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(2,504)
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85,181
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Net (loss) income available to common stockholders
|
|
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$
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(4,442)
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$
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1,104
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$
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(6,575)
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$
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(6,453)
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$
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17,127
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$
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(16,366)
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$
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71,319
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Common Share Statistics
|
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(Loss) earnings per common share - basic
|
(4)
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$
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(0.10)
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$
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0.03
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$
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(0.15)
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$
|
(0.14)
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$
|
0.38
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|
$
|
(0.37)
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$
|
1.58
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(Loss) earnings per common share - diluted
|
(5)
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$
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(0.10)
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$
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0.03
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$
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(0.15)
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$
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(0.14)
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$
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0.36
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$
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(0.37)
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$
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1.50
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Average common shares outstanding
|
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43,868
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43,929
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44,505
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44,634
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44,705
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|
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44,231
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45,024
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Average common shares outstanding and equivalents
|
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51,069
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51,146
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51,774
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51,977
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52,000
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|
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51,455
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52,326
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Cash dividends per common share
|
(6)
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$
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0.06
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$
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0.10
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$
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0.10
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$
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0.10
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$
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0.10
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$
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0.36
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$
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0.34
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Book value per common share (period end)
|
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$
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16.67
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$
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16.91
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$
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16.81
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$
|
17.25
|
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$
|
17.40
|
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$
|
16.67
|
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$
|
17.40
|
Tangible book value per common share (period end)
|
(7)
|
|
$
|
14.53
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$
|
14.76
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|
$
|
14.67
|
|
$
|
15.12
|
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$
|
15.25
|
|
$
|
14.53
|
|
$
|
15.25
|
Balance Sheet (Average Balances)
|
|
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Loans
|
(8)
|
|
$
|
4,552,234
|
|
$
|
4,654,135
|
|
$
|
4,748,145
|
|
$
|
4,794,433
|
|
$
|
4,856,143
|
|
$
|
4,704,277
|
|
$
|
4,966,708
|
Interest-earning assets
|
|
|
|
6,600,614
|
|
|
6,740,932
|
|
|
6,708,519
|
|
|
6,703,287
|
|
|
6,817,770
|
|
|
6,704,995
|
|
|
6,992,631
|
Total assets
|
|
|
|
7,158,275
|
|
|
7,326,901
|
|
|
7,329,899
|
|
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7,376,738
|
|
|
7,529,779
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|
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7,297,434
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|
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7,737,279
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Interest-bearing deposits
|
|
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3,931,009
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3,932,735
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|
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3,986,700
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|
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4,167,592
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|
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4,261,729
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|
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4,773,245
|
|
|
5,166,143
|
Borrowings
|
|
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|
1,394,171
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|
|
1,572,400
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|
|
1,466,103
|
|
|
1,378,344
|
|
|
1,431,076
|
|
|
1,453,126
|
|
|
1,497,447
|
Stockholders' equity
|
|
|
|
905,646
|
|
|
912,598
|
|
|
929,867
|
|
|
948,302
|
|
|
936,218
|
|
|
923,980
|
|
|
916,376
|
Common stockholders' equity
|
|
|
|
739,776
|
|
|
746,728
|
|
|
763,997
|
|
|
782,432
|
|
|
770,348
|
|
|
758,110
|
|
|
750,506
|
Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
(9)
|
|
|
4.55%
|
|
|
5.29%
|
|
|
4.92%
|
|
|
5.42%
|
|
|
5.65%
|
|
|
5.03%
|
|
|
5.84%
|
Return on average assets
|
(10)
|
|
|
-0.05%
|
|
|
0.25%
|
|
|
-0.17%
|
|
|
-0.16%
|
|
|
1.09%
|
|
|
-0.03%
|
|
|
1.10%
|
Return on average tangible common stockholders' equity
|
(11)
|
|
|
-2.75%
|
|
|
0.68%
|
|
|
-3.93%
|
|
|
-3.76%
|
|
|
10.16%
|
|
|
-2.47%
|
|
|
10.91%
|
Efficiency ratio
|
(12)
|
|
|
61.64%
|
|
|
63.66%
|
|
|
63.39%
|
|
|
51.75%
|
|
|
52.41%
|
|
|
60.00%
|
|
|
49.90%
|
Full-time equivalent employees, period end
|
|
|
|
1,466
|
|
|
1,491
|
|
|
1,507
|
|
|
1,510
|
|
|
1,567
|
|
|
1,466
|
|
|
1,567
|
Credit Quality Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding acquired loans:
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
(3)
|
|
$
|
112,626
|
|
$
|
80,351
|
|
$
|
78,989
|
|
$
|
76,759
|
|
$
|
51,441
|
|
$
|
112,626
|
|
$
|
51,441
|
Allowance as a % of loans held for investment
|
|
|
|
3.62%
|
|
|
2.65%
|
|
|
2.67%
|
|
|
2.64%
|
|
|
1.81%
|
|
|
3.62%
|
|
|
1.81%
|
Net charge-offs
|
|
|
$
|
12,737
|
|
$
|
9,097
|
|
$
|
7,723
|
|
$
|
8,592
|
|
$
|
8,640
|
|
$
|
38,149
|
|
$
|
29,069
|
Net charge-off rate
|
(13)
|
|
|
1.67%
|
|
|
1.23%
|
|
|
1.06%
|
|
|
1.21%
|
|
|
1.25%
|
|
|
1.30%
|
|
|
1.11%
|
Early delinquency rate (30 - 89 days past due)
|
|
|
|
3.70%
|
|
|
3.77%
|
|
|
4.84%
|
|
|
4.67%
|
|
|
4.91%
|
|
|
3.70%
|
|
|
4.91%
|
Total delinquency rate (30 days and over)
|
|
|
|
6.94%
|
|
|
7.06%
|
|
|
7.72%
|
|
|
8.60%
|
|
|
8.99%
|
|
|
6.94%
|
|
|
8.99%
|
Capital Ratios
|
(14)(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio
|
|
|
|
11.18%
|
|
|
10.93%
|
|
|
11.05%
|
|
|
11.23%
|
|
|
10.61%
|
|
|
11.18%
|
|
|
10.61%
|
Common equity Tier 1 capital ratio
|
|
|
|
12.15%
|
|
|
12.03%
|
|
|
12.26%
|
|
|
12.63%
|
|
|
N/A
|
|
|
12.15%
|
|
|
N/A
|
Tier 1 common equity ratio
|
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
11.88%
|
|
|
N/A
|
|
|
11.88%
|
Tier 1 risk-based capital ratio
|
|
|
|
15.99%
|
|
|
15.64%
|
|
|
15.85%
|
|
|
16.14%
|
|
|
16.02%
|
|
|
15.99%
|
|
|
16.02%
|
Total risk-based capital ratio
|
|
|
|
17.30%
|
|
|
16.93%
|
|
|
17.41%
|
|
|
17.69%
|
|
|
17.57%
|
|
|
17.30%
|
|
|
17.57%
|
Tangible common equity ("TCE") ratio
|
|
|
|
9.10%
|
|
|
9.11%
|
|
|
8.91%
|
|
|
9.29%
|
|
|
9.25%
|
|
|
9.10%
|
|
|
9.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2: Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
(Dollars in thousands, except per share data) (unaudited)
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans
|
|
|
$
|
47,261
|
|
$
|
46,036
|
|
$
|
44,238
|
|
$
|
46,285
|
|
$
|
45,592
|
|
$
|
183,820
|
|
$
|
171,661
|
Acquired BBVAPR loans
|
|
|
|
26,976
|
|
|
35,214
|
|
|
33,508
|
|
|
35,694
|
|
|
40,023
|
|
|
131,392
|
|
|
174,923
|
Acquired Eurobank loans
|
|
|
|
8,134
|
|
|
16,014
|
|
|
12,758
|
|
|
15,504
|
|
|
19,816
|
|
|
52,410
|
|
|
88,969
|
Total interest income from loans
|
|
|
|
82,371
|
|
|
97,264
|
|
|
90,504
|
|
|
97,483
|
|
|
105,431
|
|
|
367,622
|
|
|
435,553
|
Investment securities
|
|
|
|
10,536
|
|
|
9,983
|
|
|
8,909
|
|
|
9,518
|
|
|
10,551
|
|
|
38,946
|
|
|
49,704
|
Total interest income
|
|
|
|
92,907
|
|
|
107,247
|
|
|
99,413
|
|
|
107,001
|
|
|
115,982
|
|
|
406,568
|
|
|
485,257
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits
|
|
|
|
5,237
|
|
|
5,440
|
|
|
5,519
|
|
|
5,938
|
|
|
6,887
|
|
|
22,134
|
|
|
28,834
|
Brokered deposits
|
|
|
|
1,438
|
|
|
1,211
|
|
|
1,085
|
|
|
1,166
|
|
|
1,263
|
|
|
4,900
|
|
|
5,120
|
Total deposits
|
|
|
|
6,675
|
|
|
6,651
|
|
|
6,604
|
|
|
7,104
|
|
|
8,150
|
|
|
27,034
|
|
|
33,954
|
Borrowings
|
|
|
|
10,610
|
|
|
10,773
|
|
|
10,517
|
|
|
10,262
|
|
|
10,704
|
|
|
42,162
|
|
|
42,828
|
Total interest expense
|
|
|
|
17,285
|
|
|
17,424
|
|
|
17,121
|
|
|
17,366
|
|
|
18,854
|
|
|
69,196
|
|
|
76,782
|
Net interest income
|
|
|
|
75,622
|
|
|
89,823
|
|
|
82,292
|
|
|
89,635
|
|
|
97,128
|
|
|
337,372
|
|
|
408,475
|
Provision for loan and lease losses, excluding acquired
loans
|
(3)
|
|
|
45,012
|
|
|
10,459
|
|
|
9,952
|
|
|
33,913
|
|
|
9,802
|
|
|
99,336
|
|
|
31,427
|
Provision for acquired BBVAPR loan and lease losses
|
|
|
|
7,332
|
|
|
7,630
|
|
|
5,692
|
|
|
3,471
|
|
|
5,734
|
|
|
24,125
|
|
|
23,533
|
(Recapture) provision for acquired Eurobank loan and lease
losses
|
(1)(34)
|
|
|
(154)
|
|
|
33,490
|
|
|
(105)
|
|
|
4,809
|
|
|
1,341
|
|
|
38,040
|
|
|
5,680
|
Total provision for loan and lease losses, net
|
|
|
|
52,190
|
|
|
51,579
|
|
|
15,539
|
|
|
42,193
|
|
|
16,877
|
|
|
161,501
|
|
|
60,640
|
Net interest income after provision for loan and lease
losses
|
|
|
|
23,432
|
|
|
38,244
|
|
|
66,753
|
|
|
47,442
|
|
|
80,251
|
|
|
175,871
|
|
|
347,835
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking service revenues
|
|
|
|
10,223
|
|
|
10,826
|
|
|
10,212
|
|
|
10,205
|
|
|
10,407
|
|
|
41,466
|
|
|
40,712
|
Wealth management revenues
|
|
|
|
7,715
|
|
|
6,885
|
|
|
7,285
|
|
|
7,155
|
|
|
8,539
|
|
|
29,040
|
|
|
29,855
|
Mortgage banking activities
|
|
|
|
1,411
|
|
|
992
|
|
|
1,862
|
|
|
1,863
|
|
|
2,035
|
|
|
6,128
|
|
|
7,381
|
Total banking and wealth management revenues
|
|
|
|
19,349
|
|
|
18,703
|
|
|
19,359
|
|
|
19,223
|
|
|
20,981
|
|
|
76,634
|
|
|
77,948
|
FDIC shared-loss expense, net
|
(15)(20)(33)
|
|
|
(4,400)
|
|
|
(2,079)
|
|
|
(23,245)
|
|
|
(13,084)
|
|
|
(11,980)
|
|
|
(42,808)
|
|
|
(65,756)
|
Other-than-temporary impairment losses on investment securities
|
|
|
|
(1,244)
|
|
|
(246)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,490)
|
|
|
-
|
Reimbursement from FDIC shared-loss coverage in sale of loans
|
(34)
|
|
|
-
|
|
|
20,000
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
20,000
|
|
|
-
|
Other (losses) gains, net
|
|
|
|
565
|
|
|
(401)
|
|
|
(770)
|
|
|
742
|
|
|
95
|
|
|
136
|
|
|
5,131
|
Total non-interest income (loss), net
|
|
|
|
14,270
|
|
|
35,977
|
|
|
(4,656)
|
|
|
6,881
|
|
|
9,096
|
|
|
52,472
|
|
|
17,323
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
|
|
18,717
|
|
|
20,098
|
|
|
19,260
|
|
|
20,180
|
|
|
20,396
|
|
|
78,255
|
|
|
81,483
|
Rent and occupancy costs
|
|
|
|
8,111
|
|
|
8,556
|
|
|
8,883
|
|
|
8,636
|
|
|
9,026
|
|
|
34,186
|
|
|
34,710
|
Net loss on sale of foreclosed real estate and other repossessed
assets
|
(34)
|
|
|
4,096
|
|
|
14,172
|
|
|
8,339
|
|
|
3,838
|
|
|
2,619
|
|
|
30,445
|
|
|
16,435
|
General and administrative expenses
|
|
|
|
25,612
|
|
|
21,537
|
|
|
24,904
|
|
|
21,454
|
|
|
23,210
|
|
|
93,507
|
|
|
93,277
|
Total operating expenses
|
|
|
|
56,536
|
|
|
64,363
|
|
|
61,386
|
|
|
54,108
|
|
|
55,251
|
|
|
236,393
|
|
|
225,905
|
Credit related expenses
|
|
|
|
2,006
|
|
|
3,810
|
|
|
3,051
|
|
|
2,224
|
|
|
2,847
|
|
|
11,091
|
|
|
13,020
|
Other non-recurring expenses
|
(16)(17)
|
|
|
-
|
|
|
917
|
|
|
-
|
|
|
-
|
|
|
3,800
|
|
|
917
|
|
|
3,800
|
Total non-interest expense
|
|
|
|
58,542
|
|
|
69,090
|
|
|
64,437
|
|
|
56,332
|
|
|
61,898
|
|
|
248,401
|
|
|
242,725
|
(Loss) income before income taxes
|
|
|
|
(20,840)
|
|
|
5,131
|
|
|
(2,340)
|
|
|
(2,009)
|
|
|
27,449
|
|
|
(20,058)
|
|
|
122,433
|
Income tax (benefit) expense
|
(35)
|
|
|
(19,864)
|
|
|
562
|
|
|
769
|
|
|
979
|
|
|
6,856
|
|
|
(17,554)
|
|
|
37,252
|
Net (loss) income
|
|
|
|
(976)
|
|
|
4,569
|
|
|
(3,109)
|
|
|
(2,988)
|
|
|
20,593
|
|
|
(2,504)
|
|
|
85,181
|
Less: dividends on preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock
|
|
|
|
(1,837)
|
|
|
(1,838)
|
|
|
(1,837)
|
|
|
(1,838)
|
|
|
(1,838)
|
|
|
(7,350)
|
|
|
(7,350)
|
Other preferred stock
|
|
|
|
(1,629)
|
|
|
(1,627)
|
|
|
(1,629)
|
|
|
(1,627)
|
|
|
(1,628)
|
|
|
(6,512)
|
|
|
(6,512)
|
Net (loss) income available to common shareholders
|
|
|
$
|
(4,442)
|
|
$
|
1,104
|
|
$
|
(6,575)
|
|
$
|
(6,453)
|
|
$
|
17,128
|
|
$
|
(16,366)
|
|
$
|
71,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3: Consolidated Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
(Dollars in thousands) (unaudited)
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
Cash and cash equivalents
|
|
|
$
|
540,058
|
|
$
|
530,545
|
|
$
|
559,621
|
|
$
|
694,308
|
|
$
|
581,834
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities
|
|
|
|
288
|
|
|
583
|
|
|
786
|
|
|
964
|
|
|
1,594
|
Investment securities available-for-sale, at fair value, with
amortized cost of $955,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(September 30, 2015 - $982,754; June 30, 2015 - $1,023,573;
March 31, 2015 - $1,092,040;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 - $1,187,679)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities
|
|
|
|
953,213
|
|
|
985,554
|
|
|
1,020,493
|
|
|
1,099,814
|
|
|
1,190,391
|
Other investment securities
|
|
|
|
21,396
|
|
|
22,151
|
|
|
23,826
|
|
|
25,888
|
|
|
26,147
|
Total investment securities available-for-sale
|
|
|
|
974,609
|
|
|
1,007,705
|
|
|
1,044,319
|
|
|
1,125,702
|
|
|
1,216,538
|
Mortgage-backed securities held-to-maturity, at amortized cost,
with fair value of $614,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(September 30, 2015 - $595,148; June 30, 2015 - $547,776;
March 31, 1015 - $175,856;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 - $164,154)
|
|
|
|
620,189
|
|
|
594,639
|
|
|
550,553
|
|
|
172,847
|
|
|
162,752
|
Federal Home Loan Bank (FHLB) stock, at cost
|
|
|
|
20,783
|
|
|
20,804
|
|
|
20,826
|
|
|
21,148
|
|
|
21,169
|
Other investments
|
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
3
|
Total investments
|
|
|
|
1,615,872
|
|
|
1,623,734
|
|
|
1,616,487
|
|
|
1,320,664
|
|
|
1,402,056
|
Loans, net
|
(19)(34)
|
|
|
4,434,213
|
|
|
4,468,676
|
|
|
4,639,467
|
|
|
4,724,579
|
|
|
4,826,646
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC shared-loss indemnification asset
|
(33)
|
|
|
22,599
|
|
|
22,895
|
|
|
22,704
|
|
|
75,221
|
|
|
97,378
|
Derivative assets
|
|
|
|
3,025
|
|
|
3,290
|
|
|
4,376
|
|
|
6,211
|
|
|
8,107
|
Prepaid expenses
|
|
|
|
11,762
|
|
|
14,151
|
|
|
16,492
|
|
|
11,264
|
|
|
16,018
|
Deferred tax asset, net
|
|
|
|
145,901
|
|
|
143,935
|
|
|
138,406
|
|
|
121,930
|
|
|
108,708
|
Foreclosed real estate and repossessed properties
|
(34)
|
|
|
64,088
|
|
|
73,063
|
|
|
95,994
|
|
|
113,863
|
|
|
117,461
|
Premises and equipment, net
|
|
|
|
74,590
|
|
|
75,346
|
|
|
76,486
|
|
|
78,745
|
|
|
80,599
|
Goodwill
|
|
|
|
86,069
|
|
|
86,069
|
|
|
86,069
|
|
|
86,069
|
|
|
86,069
|
Accounts receivable and other assets
|
(18)(34)
|
|
|
100,972
|
|
|
162,118
|
|
|
142,223
|
|
|
131,302
|
|
|
124,233
|
Total assets
|
|
|
$
|
7,099,149
|
|
$
|
7,203,822
|
|
$
|
7,398,325
|
|
$
|
7,364,156
|
|
$
|
7,449,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
|
$
|
1,861,680
|
|
|
1,905,029
|
|
|
1,937,034
|
|
|
2,025,706
|
|
|
1,997,535
|
Savings accounts
|
|
|
|
1,107,618
|
|
|
1,217,098
|
|
|
1,250,460
|
|
|
1,336,209
|
|
|
1,292,698
|
Time deposits
|
|
|
|
964,588
|
|
|
941,821
|
|
|
956,829
|
|
|
965,196
|
|
|
1,014,863
|
Brokered deposits
|
|
|
|
782,973
|
|
|
653,126
|
|
|
605,361
|
|
|
567,122
|
|
|
619,310
|
Total deposits
|
|
|
|
4,716,859
|
|
|
4,717,074
|
|
|
4,749,684
|
|
|
4,894,233
|
|
|
4,924,406
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase
|
|
|
|
934,691
|
|
|
1,000,664
|
|
|
1,161,136
|
|
|
927,168
|
|
|
980,087
|
Advances from FHLB and other borrowings
|
|
|
|
334,210
|
|
|
334,670
|
|
|
335,481
|
|
|
335,597
|
|
|
338,334
|
Subordinated capital notes
|
|
|
|
102,633
|
|
|
102,371
|
|
|
102,109
|
|
|
101,846
|
|
|
101,584
|
Total borrowings
|
|
|
|
1,371,534
|
|
|
1,437,705
|
|
|
1,598,726
|
|
|
1,364,611
|
|
|
1,420,005
|
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities
|
|
|
|
6,162
|
|
|
8,622
|
|
|
8,739
|
|
|
11,113
|
|
|
11,221
|
Acceptances outstanding
|
|
|
|
14,582
|
|
|
19,083
|
|
|
16,040
|
|
|
21,848
|
|
|
17,989
|
Accrued expenses and other liabilities
|
|
|
|
92,935
|
|
|
113,450
|
|
|
113,537
|
|
|
135,972
|
|
|
133,291
|
Total liabilities
|
|
|
|
6,202,072
|
|
|
6,295,934
|
|
|
6,486,726
|
|
|
6,427,777
|
|
|
6,506,912
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
176,000
|
|
|
176,000
|
|
|
176,000
|
|
|
176,000
|
|
|
176,000
|
Common stock
|
|
|
|
52,626
|
|
|
52,626
|
|
|
52,626
|
|
|
52,626
|
|
|
52,626
|
Additional paid-in capital
|
|
|
|
540,512
|
|
|
540,088
|
|
|
539,669
|
|
|
539,222
|
|
|
539,311
|
Legal surplus
|
|
|
|
70,055
|
|
|
70,423
|
|
|
69,934
|
|
|
70,097
|
|
|
70,467
|
Retained earnings
|
|
|
|
149,266
|
|
|
155,974
|
|
|
159,737
|
|
|
170,605
|
|
|
181,152
|
Treasury stock, at cost
|
(21)
|
|
|
(105,379)
|
|
|
(105,379)
|
|
|
(100,668)
|
|
|
(96,495)
|
|
|
(97,070)
|
Accumulated other comprehensive income, net
|
|
|
|
13,997
|
|
|
18,156
|
|
|
14,301
|
|
|
24,324
|
|
|
19,711
|
Total stockholders' equity
|
|
|
|
897,077
|
|
|
907,888
|
|
|
911,599
|
|
|
936,379
|
|
|
942,197
|
Total liabilities and stockholders' equity
|
|
|
$
|
7,099,149
|
|
$
|
7,203,822
|
|
$
|
7,398,325
|
|
$
|
7,364,156
|
|
$
|
7,449,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4: Information on Loan Portfolio and Production
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
(Dollars in thousands) (unaudited)
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
Non-acquired loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
$
|
757,828
|
|
$
|
762,636
|
|
$
|
757,187
|
|
$
|
789,545
|
|
$
|
791,751
|
Commercial
|
|
|
|
1,441,649
|
|
|
1,389,353
|
|
|
1,363,851
|
|
|
1,324,904
|
|
|
1,289,732
|
Consumer
|
|
|
|
242,950
|
|
|
227,756
|
|
|
212,629
|
|
|
193,658
|
|
|
186,760
|
Auto
|
|
|
|
669,163
|
|
|
647,544
|
|
|
623,198
|
|
|
601,963
|
|
|
575,582
|
|
|
|
|
3,111,590
|
|
|
3,027,289
|
|
|
2,956,865
|
|
|
2,910,070
|
|
|
2,843,825
|
Less: Allowance for loan and lease losses
|
|
|
|
(112,626)
|
|
|
(80,351)
|
|
|
(78,989)
|
|
|
(76,759)
|
|
|
(51,439)
|
|
|
|
|
2,998,964
|
|
|
2,946,938
|
|
|
2,877,876
|
|
|
2,833,311
|
|
|
2,792,386
|
Deferred loan costs, net
|
|
|
|
4,203
|
|
|
4,571
|
|
|
3,877
|
|
|
4,433
|
|
|
4,282
|
Total non-acquired loans held for investment, net
|
|
|
|
3,003,167
|
|
|
2,951,509
|
|
|
2,881,753
|
|
|
2,837,744
|
|
|
2,796,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBVAPR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounted for under ASC 310-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
7,457
|
|
|
7,736
|
|
|
8,448
|
|
|
9,506
|
|
|
12,675
|
Consumer
|
|
|
|
38,385
|
|
|
39,774
|
|
|
41,505
|
|
|
42,922
|
|
|
45,344
|
Auto
|
|
|
|
106,911
|
|
|
124,120
|
|
|
142,570
|
|
|
162,194
|
|
|
184,782
|
|
|
|
|
152,753
|
|
|
171,630
|
|
|
192,523
|
|
|
214,622
|
|
|
242,801
|
Less: Allowance for loan and lease losses
|
|
|
|
(5,542)
|
|
|
(5,473)
|
|
|
(5,529)
|
|
|
(5,450)
|
|
|
(4,597)
|
|
|
|
|
147,211
|
|
|
166,157
|
|
|
186,994
|
|
|
209,172
|
|
|
238,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounted for under ASC 310-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
|
608,294
|
|
|
617,268
|
|
|
631,807
|
|
|
645,918
|
|
|
656,122
|
Commercial
|
|
|
|
375,491
|
|
|
395,637
|
|
|
499,710
|
|
|
519,809
|
|
|
558,562
|
Consumer
|
|
|
|
11,843
|
|
|
15,072
|
|
|
18,869
|
|
|
23,841
|
|
|
29,888
|
Auto
|
|
|
|
153,592
|
|
|
173,979
|
|
|
195,891
|
|
|
220,990
|
|
|
247,233
|
|
|
|
|
1,149,220
|
|
|
1,201,956
|
|
|
1,346,277
|
|
|
1,410,558
|
|
|
1,491,805
|
Less: Allowance for loan and lease losses
|
|
|
|
(25,785)
|
|
|
(19,986)
|
|
|
(18,359)
|
|
|
(14,166)
|
|
|
(13,481)
|
|
|
|
|
1,123,435
|
|
|
1,181,970
|
|
|
1,327,918
|
|
|
1,396,392
|
|
|
1,478,324
|
Total Acquired BBVAPR loans, net
|
|
|
|
1,270,646
|
|
|
1,348,127
|
|
|
1,514,912
|
|
|
1,605,564
|
|
|
1,716,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurobank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounted for under ASC 310-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
|
92,273
|
|
|
92,757
|
|
|
102,499
|
|
|
100,677
|
|
|
102,162
|
Commercial
|
|
|
|
142,377
|
|
|
144,704
|
|
|
187,692
|
|
|
223,734
|
|
|
256,488
|
Consumer
|
|
|
|
2,314
|
|
|
2,708
|
|
|
3,295
|
|
|
4,047
|
|
|
4,506
|
|
|
|
|
236,964
|
|
|
240,169
|
|
|
293,486
|
|
|
328,458
|
|
|
363,156
|
Less: Allowance for loan and lease losses
|
|
|
|
(90,178)
|
|
|
(90,332)
|
|
|
(71,452)
|
|
|
(70,651)
|
|
|
(64,245)
|
Total Acquired Eurobank loans, net
|
|
|
|
146,786
|
|
|
149,837
|
|
|
222,034
|
|
|
257,807
|
|
|
298,911
|
Total acquired loans, net
|
(34)
|
|
|
1,417,432
|
|
|
1,497,964
|
|
|
1,736,946
|
|
|
1,863,371
|
|
|
2,015,439
|
Total loans held for investment
|
|
|
|
4,420,599
|
|
|
4,449,473
|
|
|
4,618,699
|
|
|
4,701,115
|
|
|
4,812,107
|
Mortgage loans held for sale
|
|
|
|
13,614
|
|
|
19,203
|
|
|
20,768
|
|
|
23,464
|
|
|
14,539
|
Total loans, net
|
|
|
$
|
4,434,213
|
|
$
|
4,468,676
|
|
$
|
4,639,467
|
|
$
|
4,724,579
|
|
$
|
4,826,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
(Dollars in thousands) (unaudited)
|
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
Quarterly loan production
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
$
|
55,450
|
|
$
|
65,248
|
|
$
|
64,826
|
|
$
|
61,717
|
|
$
|
57,226
|
Commercial
|
|
|
|
75,775
|
|
|
83,243
|
|
|
120,500
|
|
|
85,664
|
|
|
83,430
|
Consumer
|
|
|
|
37,919
|
|
|
36,756
|
|
|
39,837
|
|
|
26,161
|
|
|
28,902
|
Auto and Leasing
|
|
|
|
67,633
|
|
|
65,743
|
|
|
61,545
|
|
|
65,907
|
|
|
69,335
|
Total
|
|
|
$
|
236,777
|
|
$
|
250,990
|
|
$
|
286,708
|
|
$
|
239,449
|
|
$
|
238,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5: Average Balances, Net Interest Income and Net Interest
Margin
|
|
|
|
|
|
2015 Q4
|
|
2015 Q3
|
|
2015 Q2
|
|
2015 Q1
|
|
2014 Q4
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
(Dollars in thousands) (unaudited)
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents and securities purchased under agreements
to resell
|
|
|
$
|
438,981
|
|
$
|
327
|
|
0.30
|
%
|
|
$
|
482,959
|
|
$
|
308
|
|
0.25
|
%
|
|
$
|
483,507
|
|
$
|
322
|
|
0.27
|
%
|
|
$
|
564,237
|
|
$
|
323
|
|
0.23
|
%
|
|
$
|
551,238
|
|
$
|
360
|
|
0.26
|
%
|
|
Investment securities
|
|
|
|
1,609,399
|
|
|
10,209
|
|
2.52
|
%
|
|
|
1,603,838
|
|
|
9,674
|
|
2.39
|
%
|
|
|
1,476,867
|
|
|
8,587
|
|
2.33
|
%
|
|
|
1,344,617
|
|
|
9,195
|
|
2.77
|
%
|
|
|
1,410,389
|
|
|
10,191
|
|
2.87
|
%
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans
|
|
|
|
3,043,109
|
|
|
47,261
|
|
6.16
|
%
|
|
|
2,959,961
|
|
|
46,036
|
|
6.17
|
%
|
|
|
2,927,347
|
|
|
44,239
|
|
6.06
|
%
|
|
|
2,832,658
|
|
|
46,284
|
|
6.63
|
%
|
|
|
2,765,531
|
|
|
45,925
|
|
6.59
|
%
|
|
Acquired BBVAPR loans
|
|
|
|
1,361,173
|
|
|
26,976
|
|
7.86
|
%
|
|
|
1,499,399
|
|
|
35,215
|
|
9.32
|
%
|
|
|
1,585,422
|
|
|
33,507
|
|
8.48
|
%
|
|
|
1,687,044
|
|
|
35,695
|
|
8.58
|
%
|
|
|
1,787,600
|
|
|
39,690
|
|
8.81
|
%
|
|
Acquired Eurobank loans
|
|
|
|
147,952
|
|
|
8,134
|
|
21.81
|
%
|
|
|
194,775
|
|
|
16,014
|
|
32.62
|
%
|
|
|
235,376
|
|
|
12,758
|
|
21.74
|
%
|
|
|
274,731
|
|
|
15,504
|
|
22.89
|
%
|
|
|
303,012
|
|
|
19,816
|
|
25.95
|
%
|
|
Total loans
|
|
|
|
4,552,234
|
|
|
82,371
|
|
7.18
|
%
|
|
|
4,654,135
|
|
|
97,265
|
|
8.29
|
%
|
|
|
4,748,145
|
|
|
90,504
|
|
7.65
|
%
|
|
|
4,794,433
|
|
|
97,483
|
|
8.25
|
%
|
|
|
4,856,143
|
|
|
105,431
|
|
8.61
|
%
|
|
Total interest-earning assets
|
|
|
$
|
6,600,614
|
|
$
|
92,907
|
|
5.58
|
%
|
|
$
|
6,740,932
|
|
$
|
107,247
|
|
6.31
|
%
|
|
$
|
6,708,519
|
|
$
|
99,413
|
|
5.94
|
%
|
|
$
|
6,703,287
|
|
$
|
107,001
|
|
6.47
|
%
|
|
$
|
6,817,770
|
|
$
|
115,982
|
|
6.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts
|
|
|
$
|
1,138,928
|
|
$
|
1,063
|
|
0.37
|
%
|
|
$
|
1,110,804
|
|
$
|
1,034
|
|
0.37
|
%
|
|
$
|
1,144,931
|
|
$
|
1,073
|
|
0.38
|
%
|
|
$
|
1,260,952
|
|
$
|
1,281
|
|
0.41
|
%
|
|
$
|
1,353,334
|
|
$
|
1,652
|
|
0.48
|
%
|
|
Savings accounts
|
|
|
|
1,180,220
|
|
|
1,516
|
|
0.51
|
%
|
|
|
1,234,772
|
|
|
1,592
|
|
0.51
|
%
|
|
|
1,300,001
|
|
|
1,662
|
|
0.51
|
%
|
|
|
1,314,360
|
|
|
1,734
|
|
0.54
|
%
|
|
|
1,224,708
|
|
|
1,829
|
|
0.59
|
%
|
|
Time deposits
|
|
|
|
938,291
|
|
|
2,456
|
|
1.04
|
%
|
|
|
939,076
|
|
|
2,613
|
|
1.10
|
%
|
|
|
969,818
|
|
|
2,624
|
|
1.09
|
%
|
|
|
990,091
|
|
|
2,976
|
|
1.22
|
%
|
|
|
1,052,552
|
|
|
3,426
|
|
1.29
|
%
|
|
Brokered deposits
|
|
|
|
673,570
|
|
|
1,438
|
|
0.85
|
%
|
|
|
648,083
|
|
|
1,211
|
|
0.74
|
%
|
|
|
571,950
|
|
|
1,085
|
|
0.76
|
%
|
|
|
602,189
|
|
|
1,166
|
|
0.79
|
%
|
|
|
631,135
|
|
|
1,331
|
|
0.84
|
%
|
|
|
|
|
|
3,931,009
|
|
|
6,473
|
|
0.65
|
%
|
|
|
3,932,735
|
|
|
6,450
|
|
0.65
|
%
|
|
|
3,986,700
|
|
|
6,444
|
|
0.65
|
%
|
|
|
4,167,592
|
|
|
7,157
|
|
0.70
|
%
|
|
|
4,261,729
|
|
|
8,238
|
|
0.77
|
%
|
|
Non-interest bearing deposit accounts
|
|
|
|
781,440
|
|
|
-
|
|
-
|
|
|
|
772,545
|
|
|
-
|
|
-
|
|
|
|
773,910
|
|
|
-
|
|
-
|
|
|
|
750,897
|
|
|
-
|
|
-
|
|
|
|
740,527
|
|
|
-
|
|
-
|
%
|
|
Fair value premium amortization and core deposit
intangible amortization
|
|
|
|
-
|
|
|
202
|
|
-
|
|
|
|
-
|
|
|
201
|
|
-
|
|
|
|
-
|
|
|
160
|
|
-
|
|
|
|
-
|
|
|
(53)
|
|
-
|
|
|
|
-
|
|
|
(88)
|
|
-
|
|
|
Total deposits
|
|
|
|
4,712,449
|
|
|
6,675
|
|
0.56
|
%
|
|
|
4,705,280
|
|
|
6,651
|
|
0.56
|
%
|
|
|
4,760,610
|
|
|
6,604
|
|
0.56
|
%
|
|
|
4,918,489
|
|
|
7,104
|
|
0.59
|
%
|
|
|
5,002,256
|
|
|
8,150
|
|
0.65
|
%
|
|
Borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase
|
|
|
|
957,680
|
|
|
7,404
|
|
3.07
|
%
|
|
|
1,132,373
|
|
|
7,605
|
|
2.66
|
%
|
|
|
1,020,077
|
|
|
7,394
|
|
2.91
|
%
|
|
|
939,377
|
|
|
7,164
|
|
3.09
|
%
|
|
|
990,932
|
|
|
7,415
|
|
2.97
|
%
|
|
Advances from FHLB and other borrowings
|
|
|
|
334,029
|
|
|
2,306
|
|
2.74
|
%
|
|
|
337,829
|
|
|
2,283
|
|
2.68
|
%
|
|
|
344,088
|
|
|
2,248
|
|
2.62
|
%
|
|
|
337,292
|
|
|
2,235
|
|
2.69
|
%
|
|
|
338,815
|
|
|
2,287
|
|
2.68
|
%
|
|
Subordinated capital notes
|
|
|
|
102,462
|
|
|
900
|
|
3.48
|
%
|
|
|
102,198
|
|
|
885
|
|
3.44
|
%
|
|
|
101,938
|
|
|
875
|
|
3.44
|
%
|
|
|
101,675
|
|
|
863
|
|
3.44
|
%
|
|
|
101,329
|
|
|
1,002
|
|
3.92
|
%
|
|
Total borrowings
|
|
|
|
1,394,171
|
|
|
10,610
|
|
3.02
|
%
|
|
|
1,572,400
|
|
|
10,773
|
|
2.72
|
%
|
|
|
1,466,103
|
|
|
10,517
|
|
2.88
|
%
|
|
|
1,378,344
|
|
|
10,262
|
|
3.02
|
%
|
|
|
1,431,076
|
|
|
10,704
|
|
2.97
|
%
|
|
Total interest-bearing liabilities
|
|
|
$
|
6,106,620
|
|
$
|
17,285
|
|
1.12
|
%
|
|
$
|
6,277,680
|
|
$
|
17,424
|
|
1.10
|
%
|
|
$
|
6,226,713
|
|
$
|
17,121
|
|
1.10
|
%
|
|
$
|
6,296,833
|
|
$
|
17,366
|
|
1.12
|
%
|
|
$
|
6,433,332
|
|
$
|
18,854
|
|
1.16
|
%
|
|
Interest rate spread
|
|
|
|
|
|
$
|
75,622
|
|
4.46
|
%
|
|
|
|
|
$
|
89,823
|
|
5.21
|
%
|
|
|
|
|
$
|
82,292
|
|
4.84
|
%
|
|
|
|
|
$
|
89,635
|
|
5.35
|
%
|
|
|
|
|
$
|
97,128
|
|
5.59
|
%
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
4.55
|
%
|
|
|
|
|
|
|
|
5.29
|
%
|
|
|
|
|
|
|
|
4.92
|
%
|
|
|
|
|
|
|
|
5.42
|
%
|
|
|
|
|
|
|
|
5.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 310-30 loan cost recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired BBVAPR loans
|
|
|
|
|
|
$
|
354
|
|
|
|
|
|
|
|
$
|
6,106
|
|
|
|
|
|
|
|
$
|
941
|
|
|
|
|
|
|
|
$
|
1,364
|
|
|
|
|
|
|
|
$
|
1,851
|
|
|
|
|
Acquired Eurobank loans
|
|
|
|
|
|
|
2,397
|
|
|
|
|
|
|
|
|
6,991
|
|
|
|
|
|
|
|
|
2,635
|
|
|
|
|
|
|
|
|
2,042
|
|
|
|
|
|
|
|
|
2,426
|
|
|
|
|
|
|
|
|
|
|
$
|
2,751
|
|
|
|
|
|
|
|
$
|
13,097
|
|
|
|
|
|
|
|
$
|
3,576
|
|
|
|
|
|
|
|
$
|
3,406
|
|
|
|
|
|
|
|
$
|
4,277
|
|
|
|
|
Adjusted excluding cost recoveries (Non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets
|
|
|
$
|
6,600,614
|
|
$
|
90,156
|
|
5.42
|
%
|
|
$
|
6,740,932
|
|
$
|
94,150
|
|
5.54
|
%
|
|
$
|
6,708,519
|
|
$
|
95,837
|
|
5.73
|
%
|
|
$
|
6,703,287
|
|
$
|
103,595
|
|
6.27
|
%
|
|
$
|
6,817,770
|
|
$
|
111,705
|
|
6.50
|
%
|
|
Interest rate spread
|
|
|
|
|
|
$
|
72,871
|
|
4.30
|
%
|
|
|
|
|
$
|
76,726
|
|
4.44
|
%
|
|
|
|
|
$
|
78,716
|
|
4.63
|
%
|
|
|
|
|
$
|
86,229
|
|
5.15
|
%
|
|
|
|
|
$
|
92,851
|
|
5.34
|
%
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
4.38
|
%
|
|
|
|
|
|
|
|
4.52
|
%
|
|
|
|
|
|
|
|
4.71
|
%
|
|
|
|
|
|
|
|
5.22
|
%
|
|
|
|
|
|
|
|
5.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5: Average Balances, Net Interest Income and Net Interest
Margin (Continued)
|
|
|
|
|
2015 YTD
|
|
2014 YTD
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
(Dollars in thousands) (unaudited)
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents and securities purchased under agreements
to resell
|
|
|
$
|
491,051
|
|
$
|
1,280
|
|
0.26
|
%
|
|
$
|
573,403
|
|
$
|
1,311
|
|
0.23
|
%
|
|
Investment securities
|
|
|
|
1,509,667
|
|
|
37,666
|
|
2.49
|
%
|
|
|
1,452,520
|
|
|
48,393
|
|
3.33
|
%
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-acquired loans
|
|
|
|
2,940,713
|
|
|
183,820
|
|
6.25
|
%
|
|
|
2,630,432
|
|
|
172,645
|
|
6.56
|
%
|
|
Acquired BBVAPR loans
|
|
|
|
1,550,356
|
|
|
131,392
|
|
8.47
|
%
|
|
|
2,003,007
|
|
|
173,939
|
|
8.68
|
%
|
|
Acquired Eurobank loans
|
|
|
|
213,208
|
|
|
52,410
|
|
24.58
|
%
|
|
|
333,269
|
|
|
88,969
|
|
26.70
|
%
|
|
Total loans
|
|
|
|
4,704,277
|
|
|
367,622
|
|
7.81
|
%
|
|
|
4,966,708
|
|
|
435,553
|
|
8.77
|
%
|
|
Total interest-earning assets
|
|
|
$
|
6,704,995
|
|
$
|
406,568
|
|
6.06
|
%
|
|
$
|
6,992,631
|
|
$
|
485,257
|
|
6.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts
|
|
|
$
|
1,163,424
|
|
$
|
4,451
|
|
0.38
|
%
|
|
$
|
1,417,272
|
|
$
|
8,001
|
|
0.56
|
%
|
|
Savings accounts
|
|
|
|
1,256,909
|
|
|
6,504
|
|
0.52
|
%
|
|
|
1,169,482
|
|
|
8,097
|
|
0.69
|
%
|
|
Time deposits
|
|
|
|
958,912
|
|
|
10,669
|
|
1.11
|
%
|
|
|
1,165,904
|
|
|
15,573
|
|
1.34
|
%
|
|
Brokered deposits
|
|
|
|
624,210
|
|
|
4,900
|
|
0.78
|
%
|
|
|
697,756
|
|
|
5,715
|
|
0.82
|
%
|
|
|
|
|
|
4,003,455
|
|
|
26,524
|
|
0.66
|
%
|
|
|
4,450,414
|
|
|
37,386
|
|
0.84
|
%
|
|
Non-interest bearing deposit accounts
|
|
|
|
769,790
|
|
|
-
|
|
-
|
|
|
|
715,729
|
|
|
-
|
|
-
|
%
|
|
Fair value premium amortization and core deposit
intangible amortization
|
|
|
|
-
|
|
|
510
|
|
-
|
|
|
|
-
|
|
|
(3,432)
|
|
-
|
|
|
Total deposits
|
|
|
|
4,773,245
|
|
|
27,034
|
|
0.57
|
%
|
|
|
5,166,143
|
|
|
33,954
|
|
0.66
|
%
|
|
Borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase
|
|
|
|
1,012,756
|
|
|
29,567
|
|
2.92
|
%
|
|
|
1,041,378
|
|
|
29,652
|
|
2.85
|
%
|
|
Advances from FHLB and other borrowings
|
|
|
|
338,299
|
|
|
9,072
|
|
2.68
|
%
|
|
|
355,322
|
|
|
9,184
|
|
2.58
|
%
|
|
Subordinated capital notes
|
|
|
|
102,071
|
|
|
3,523
|
|
3.45
|
%
|
|
|
100,747
|
|
|
3,992
|
|
3.96
|
%
|
|
Total borrowings
|
|
|
|
1,453,126
|
|
|
42,162
|
|
2.90
|
%
|
|
|
1,497,447
|
|
|
42,828
|
|
2.86
|
%
|
|
Total interest-bearing liabilities
|
|
|
$
|
6,226,371
|
|
$
|
69,196
|
|
1.11
|
%
|
|
$
|
6,663,590
|
|
$
|
76,782
|
|
1.15
|
%
|
|
Interest rate spread
|
|
|
|
|
|
$
|
337,372
|
|
4.95
|
%
|
|
|
|
|
$
|
408,475
|
|
5.79
|
%
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
5.03
|
%
|
|
|
|
|
|
|
|
5.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 310-30 loan cost recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired BBVAPR loans
|
|
|
|
|
|
$
|
8,765
|
|
|
|
|
|
|
|
|
6,644
|
|
|
|
|
Acquired Eurobank loans
|
|
|
|
|
|
|
14,065
|
|
|
|
|
|
|
|
|
16,362
|
|
|
|
|
|
|
|
|
|
|
$
|
22,830
|
|
|
|
|
|
|
|
$
|
23,006
|
|
|
|
|
Adjusted excluding cost recoveries (Non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets
|
|
|
$
|
6,704,995
|
|
$
|
383,738
|
|
5.72
|
%
|
|
$
|
6,992,631
|
|
$
|
462,251
|
|
6.61
|
%
|
|
Interest rate spread
|
|
|
|
|
|
$
|
314,542
|
|
4.61
|
%
|
|
|
|
|
$
|
385,469
|
|
5.46
|
%
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
4.69
|
%
|
|
|
|
|
|
|
|
5.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6: Loan Information and Performance Statistics (Excluding
Acquired Loans) (1)
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
(Dollars in thousands) (unaudited)
|
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
Net Charge-offs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
$
|
1,568
|
|
$
|
1,058
|
|
$
|
1,356
|
|
$
|
1,414
|
|
$
|
1,245
|
Recoveries
|
|
|
|
(53)
|
|
|
(270)
|
|
|
(67)
|
|
|
-
|
|
|
(54)
|
Total mortgage
|
|
|
|
1,515
|
|
|
788
|
|
|
1,289
|
|
|
1,414
|
|
|
1,191
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
3,229
|
|
|
828
|
|
|
497
|
|
|
992
|
|
|
381
|
Recoveries
|
|
|
|
(60)
|
|
|
(63)
|
|
|
(219)
|
|
|
(89)
|
|
|
(64)
|
Total commercial
|
|
|
|
3,169
|
|
|
765
|
|
|
278
|
|
|
903
|
|
|
317
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
2,227
|
|
|
2,471
|
|
|
2,309
|
|
|
1,676
|
|
|
1,962
|
Recoveries
|
|
|
|
(142)
|
|
|
(186)
|
|
|
(390)
|
|
|
(153)
|
|
|
(113)
|
Total consumer
|
|
|
|
2,085
|
|
|
2,285
|
|
|
1,919
|
|
|
1,523
|
|
|
1,849
|
Auto and Leasing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
|
9,068
|
|
|
8,510
|
|
|
7,662
|
|
|
8,136
|
|
|
8,047
|
Recoveries
|
|
|
|
(3,100)
|
|
|
(3,251)
|
|
|
(3,425)
|
|
|
(3,384)
|
|
|
(2,764)
|
Total auto and leasing
|
|
|
|
5,968
|
|
|
5,259
|
|
|
4,237
|
|
|
4,752
|
|
|
5,283
|
Total
|
|
|
$
|
12,737
|
|
$
|
9,097
|
|
$
|
7,723
|
|
$
|
8,592
|
|
$
|
8,640
|
Net Charge-off Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
|
0.80%
|
|
|
0.42%
|
|
|
0.66%
|
|
|
0.72%
|
|
|
0.61%
|
Commercial
|
|
|
|
0.91%
|
|
|
0.23%
|
|
|
0.08%
|
|
|
0.28%
|
|
|
0.10%
|
Consumer
|
|
|
|
3.68%
|
|
|
4.33%
|
|
|
3.99%
|
|
|
3.36%
|
|
|
4.23%
|
Auto and Leasing
|
|
|
|
3.59%
|
|
|
3.28%
|
|
|
2.74%
|
|
|
3.20%
|
|
|
3.73%
|
Total
|
|
|
|
1.67%
|
|
|
1.23%
|
|
|
1.06%
|
|
|
1.21%
|
|
|
1.25%
|
Average Loans Held For Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
$
|
756,530
|
|
$
|
758,689
|
|
$
|
782,753
|
|
$
|
787,330
|
|
$
|
787,121
|
Commercial
|
|
|
|
1,394,597
|
|
|
1,349,511
|
|
|
1,333,276
|
|
|
1,269,104
|
|
|
1,236,976
|
Consumer
|
|
|
|
226,783
|
|
|
210,933
|
|
|
192,572
|
|
|
181,464
|
|
|
175,049
|
Auto and Leasing
|
|
|
|
665,199
|
|
|
640,828
|
|
|
618,746
|
|
|
594,760
|
|
|
566,385
|
Total
|
|
|
$
|
3,043,109
|
|
$
|
2,959,961
|
|
$
|
2,927,347
|
|
$
|
2,832,658
|
|
$
|
2,765,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6: Loan Information and Performance Statistics (Excluding
Acquired Loans) (Continued) (1)
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
(Dollars in thousands) (unaudited)
|
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
Early Delinquency (30 - 89 days past due)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
$
|
36,092
|
|
$
|
37,377
|
*
|
$
|
68,515
|
|
$
|
63,060
|
|
$
|
68,671
|
Commercial
|
|
|
|
4,461
|
|
|
1,678
|
|
|
5,532
|
|
|
4,453
|
|
|
2,814
|
Consumer
|
|
|
|
4,128
|
|
|
3,585
|
|
|
3,089
|
|
|
3,957
|
|
|
3,525
|
Auto and Leasing
|
|
|
|
70,464
|
|
|
71,627
|
|
|
66,044
|
|
|
64,287
|
|
|
64,574
|
Total
|
|
|
$
|
115,145
|
|
$
|
114,267
|
|
$
|
143,180
|
|
$
|
135,757
|
|
$
|
139,584
|
Early Delinquency Rates (30 - 89 days past due)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
|
4.76%
|
|
|
4.90%
|
|
|
9.05%
|
|
|
7.99%
|
|
|
8.67%
|
Commercial
|
|
|
|
0.31%
|
|
|
0.12%
|
|
|
0.41%
|
|
|
0.34%
|
|
|
0.22%
|
Consumer
|
|
|
|
1.70%
|
|
|
1.57%
|
|
|
1.45%
|
|
|
2.04%
|
|
|
1.89%
|
Auto and Leasing
|
|
|
|
10.53%
|
|
|
11.06%
|
|
|
10.60%
|
|
|
10.68%
|
|
|
11.22%
|
Total
|
|
|
|
3.70%
|
|
|
3.77%
|
|
|
4.84%
|
|
|
4.67%
|
|
|
4.91%
|
Total Delinquency (30 days and over past due)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional, Non traditional, and Loans under Loss
Mitigation
|
|
|
$
|
102,988
|
|
$
|
104,355
|
|
$
|
127,609
|
|
$
|
122,597
|
|
$
|
124,559
|
GNMA's buy-back option program
|
(32)
|
|
|
7,945
|
|
|
6,993
|
|
|
6,961
|
|
|
37,458
|
|
|
42,243
|
Total mortgage
|
|
|
|
110,933
|
|
|
111,348
|
|
|
134,570
|
|
|
160,055
|
|
|
166,802
|
Commercial
|
|
|
|
21,138
|
|
|
17,014
|
|
|
16,062
|
|
|
13,518
|
|
|
12,164
|
Consumer
|
|
|
|
5,171
|
|
|
4,832
|
|
|
4,244
|
|
|
5,207
|
|
|
4,689
|
Auto and Leasing
|
|
|
|
78,757
|
|
|
80,613
|
|
|
73,464
|
|
|
71,482
|
|
|
71,994
|
Total
|
|
|
$
|
215,999
|
|
$
|
213,807
|
|
$
|
228,340
|
|
$
|
250,262
|
|
$
|
255,649
|
Total Delinquency Rates (30 days and over past due)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional, Non traditional, and Loans under Loss
Mitigation
|
|
|
|
13.59%
|
|
|
13.68%
|
|
|
16.85%
|
|
|
15.53%
|
|
|
15.73%
|
GNMA's buy-back option program
|
(32)
|
|
|
1.05%
|
|
|
0.92%
|
|
|
0.92%
|
|
|
4.74%
|
|
|
5.34%
|
Total mortgage
|
|
|
|
14.64%
|
|
|
14.60%
|
|
|
17.77%
|
|
|
20.27%
|
|
|
21.07%
|
Commercial
|
|
|
|
1.47%
|
|
|
1.22%
|
|
|
1.18%
|
|
|
1.02%
|
|
|
0.94%
|
Consumer
|
|
|
|
2.13%
|
|
|
2.12%
|
|
|
2.00%
|
|
|
2.69%
|
|
|
2.51%
|
Auto and Leasing
|
|
|
|
11.77%
|
|
|
12.45%
|
|
|
11.79%
|
|
|
11.87%
|
|
|
12.51%
|
Total
|
|
|
|
6.94%
|
|
|
7.06%
|
|
|
7.72%
|
|
|
8.60%
|
|
|
8.99%
|
Nonperforming Assets
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
$
|
77,875
|
|
$
|
78,148
|
|
$
|
74,528
|
|
$
|
76,662
|
|
$
|
72,815
|
Commercial
|
|
|
|
215,281
|
|
|
222,072
|
|
|
224,014
|
|
|
222,820
|
|
|
21,679
|
Consumer
|
|
|
|
1,631
|
|
|
2,004
|
|
|
1,512
|
|
|
1,605
|
|
|
1,590
|
Auto and Leasing
|
|
|
|
8,418
|
|
|
10,076
|
|
|
8,587
|
|
|
8,482
|
|
|
8,668
|
Total nonperforming loans
|
|
|
|
303,205
|
|
|
312,300
|
|
|
308,641
|
|
|
309,569
|
|
|
104,752
|
Foreclosed real estate
|
|
|
|
9,772
|
|
|
10,517
|
|
|
9,956
|
|
|
10,697
|
|
|
12,343
|
Other repossessed assets
|
|
|
|
3,845
|
|
|
5,134
|
|
|
8,624
|
|
|
10,332
|
|
|
11,107
|
Total nonperforming assets
|
|
|
$
|
316,822
|
|
$
|
327,951
|
|
$
|
327,221
|
|
$
|
330,598
|
|
$
|
128,202
|
Nonperforming Loan Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
|
10.28%
|
|
|
10.25%
|
|
|
9.84%
|
|
|
9.71%
|
|
|
9.20%
|
Commercial
|
|
|
|
14.93%
|
|
|
15.98%
|
|
|
16.43%
|
|
|
16.82%
|
|
|
1.68%
|
Consumer
|
|
|
|
0.67%
|
|
|
0.88%
|
|
|
0.71%
|
|
|
0.83%
|
|
|
0.85%
|
Auto and Leasing
|
|
|
|
1.26%
|
|
|
1.56%
|
|
|
1.38%
|
|
|
1.41%
|
|
|
1.51%
|
Total loans
|
|
|
|
9.74%
|
|
|
10.32%
|
|
|
10.44%
|
|
|
10.64%
|
|
|
3.68%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* During Q3 2015, the Company changed its early delinquency
reporting on mortgage loans from one scheduled payment due to two scheduled
payments due in order to comply with regulatory reporting instructions and be
comparable with local peers, except for troubled debt restructured loans
remain using one scheduled payment due.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 7: Allowance for Loan and Lease Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
2015
|
|
|
|
|
|
|
|
|
|
Auto and
|
|
|
|
|
(Dollars in thousands) (unaudited)
|
|
|
Mortgage
|
|
Commercial
|
|
Consumer
|
|
Leasing
|
|
Unallocated
|
|
Total
|
Non-acquired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
17,292
|
|
$
|
35,524
|
|
$
|
10,816
|
|
$
|
16,674
|
|
$
|
45
|
|
$
|
80,351
|
(Recapture) provision for loan and lease losses
|
|
|
|
2,575
|
|
|
32,436
|
|
|
2,466
|
|
|
7,555
|
|
|
(20)
|
|
|
45,012
|
Charge-offs
|
|
|
|
(1,568)
|
|
|
(3,229)
|
|
|
(2,227)
|
|
|
(9,068)
|
|
|
-
|
|
|
(16,092)
|
Recoveries
|
|
|
|
53
|
|
|
60
|
|
|
142
|
|
|
3,100
|
|
|
-
|
|
|
3,355
|
Balance at end of period
|
|
|
$
|
18,352
|
|
$
|
64,791
|
|
$
|
11,197
|
|
$
|
18,261
|
|
$
|
25
|
|
$
|
112,626
|
Allowance coverage ratio
|
|
|
|
2.42%
|
|
$
|
4.49%
|
|
$
|
4.61%
|
|
$
|
2.73%
|
|
$
|
0.00%
|
|
$
|
3.62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired BBVAPR loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans accounted for under ASC 310-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
|
|
|
$
|
22
|
|
$
|
3,057
|
|
$
|
2,394
|
|
$
|
-
|
|
$
|
5,473
|
(Recapture) provision for loan and lease losses
|
|
|
|
|
|
|
1
|
|
|
1,280
|
|
|
252
|
|
|
-
|
|
|
1,533
|
Charge-offs
|
|
|
|
|
|
|
(4)
|
|
|
(966)
|
|
|
(1,094)
|
|
|
-
|
|
|
(2,064)
|
Recoveries
|
|
|
|
|
|
|
7
|
|
|
58
|
|
|
535
|
|
|
-
|
|
|
600
|
Balance at end of period
|
|
|
|
|
|
$
|
26
|
|
$
|
3,429
|
|
$
|
2,087
|
|
$
|
-
|
|
$
|
5,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans accounted for under ASC 310-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
473
|
|
$
|
16,567
|
|
$
|
84
|
|
$
|
2,862
|
|
$
|
-
|
|
$
|
19,986
|
Provision for loan and lease losses, net
|
|
|
|
1,205
|
|
|
4,594
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,799
|
Balance at end of period
|
|
|
|
1,678
|
|
$
|
21,161
|
|
$
|
84
|
|
$
|
2,862
|
|
$
|
-
|
|
$
|
25,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired Eurobank loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
32,685
|
|
$
|
57,280
|
|
$
|
367
|
|
$
|
-
|
|
$
|
-
|
|
$
|
90,332
|
Provision for loan and lease losses, net
|
|
|
|
(61)
|
|
|
(93)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(154)
|
Balance at end of period
|
|
|
$
|
32,624
|
|
$
|
57,187
|
|
$
|
367
|
|
$
|
-
|
|
$
|
-
|
|
$
|
90,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
33,158
|
|
$
|
73,869
|
|
$
|
3,508
|
|
$
|
5,256
|
|
$
|
-
|
|
$
|
115,791
|
(Recapture) provision for loan and lease losses
|
|
|
|
1,144
|
|
|
4,502
|
|
|
1,280
|
|
|
252
|
|
|
-
|
|
|
7,178
|
Charge-offs
|
|
|
|
-
|
|
|
(4)
|
|
|
(966)
|
|
|
(1,094)
|
|
|
-
|
|
|
(2,064)
|
Recoveries
|
|
|
|
-
|
|
|
7
|
|
|
58
|
|
|
535
|
|
|
-
|
|
|
600
|
Balance at end of period
|
|
|
$
|
34,302
|
|
$
|
78,374
|
|
$
|
3,880
|
|
$
|
4,949
|
|
$
|
-
|
|
$
|
121,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8: Accretable Yield on Loans Accounted for Under ASC
310-30
|
|
|
|
Quarter Ended December 31,
2015
|
(Dollars in thousands) (unaudited)
|
|
|
Mortgage
|
|
Commercial
|
|
Construction
|
|
Auto
|
|
Consumer
|
|
Total
|
Accretable Yield and Non-Accretable Discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired BBVAPR loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretable Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
267,341
|
|
$
|
58,554
|
|
$
|
19,215
|
|
$
|
26,215
|
|
$
|
7,288
|
|
$
|
378,613
|
Change in expected cash flows
|
|
|
|
-
|
|
$
|
(4)
|
|
$
|
1,006
|
|
$
|
1
|
|
$
|
-
|
|
$
|
1,003
|
Accretion
|
|
|
|
(8,428)
|
|
|
(6,219)
|
|
|
(1,489)
|
|
|
(4,849)
|
|
|
(959)
|
|
|
(21,944)
|
Transfers from (to) non-accretable discount
|
|
|
|
9,881
|
|
|
(6,920)
|
|
|
883
|
|
|
211
|
|
|
(39)
|
|
|
4,016
|
Balance at end of period
|
|
|
$
|
268,794
|
|
$
|
45,411
|
|
$
|
19,615
|
|
$
|
21,578
|
|
$
|
6,290
|
|
$
|
361,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accretable Discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
386,848
|
|
$
|
5,130
|
|
$
|
8,132
|
|
$
|
22,987
|
|
$
|
19,006
|
|
$
|
442,103
|
Change in actual and expected losses
|
|
|
|
(2,184)
|
|
|
(269)
|
|
|
(485)
|
|
|
(737)
|
|
|
(211)
|
|
|
(3,886)
|
Transfers (to) from accretable yield
|
|
|
|
(9,881)
|
|
|
6,920
|
|
|
(883)
|
|
|
(211)
|
|
|
39
|
|
|
(4,016)
|
Balance at end of period
|
|
|
$
|
374,783
|
|
$
|
11,781
|
|
$
|
6,764
|
|
$
|
22,039
|
|
$
|
18,834
|
|
$
|
434,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction &
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Secured
|
|
|
|
|
Secured by
|
|
|
|
|
|
|
|
|
|
|
|
|
by 1-4 Family
|
|
Commercial
|
|
1-4 Family
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
and Other
|
|
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
Construction
|
|
Properties
|
|
Leasing
|
|
Consumer
|
|
Total
|
Acquired Eurobank loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretable Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
54,395
|
|
$
|
30,748
|
|
$
|
6,329
|
|
$
|
969
|
|
$
|
3,417
|
|
$
|
95,858
|
Change in expected cash flows
|
|
|
|
310
|
|
|
885
|
|
|
(4,299)
|
|
|
(321)
|
|
|
187
|
|
|
(3,238)
|
Accretion
|
|
|
|
(3,347)
|
|
|
(4,122)
|
|
|
(43)
|
|
|
(418)
|
|
|
(204)
|
|
|
(8,134)
|
Transfers from (to) non-accretable discount
|
|
|
|
596
|
|
|
(542)
|
|
|
268
|
|
|
(230)
|
|
|
(187)
|
|
|
(95)
|
Balance at end of period
|
|
|
$
|
51,954
|
|
$
|
26,969
|
|
$
|
2,255
|
|
$
|
-
|
|
$
|
3,213
|
|
$
|
84,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accretable Discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
13,582
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
8,093
|
|
$
|
21,675
|
Change in actual and expected losses
|
|
|
|
(117)
|
|
|
(542)
|
|
|
268
|
|
|
(230)
|
|
|
7
|
|
|
(614)
|
Transfers (to) from accretable yield
|
|
|
|
(596)
|
|
|
542
|
|
|
(268)
|
|
|
230
|
|
|
187
|
|
|
95
|
Balance at end of period
|
|
|
$
|
12,869
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
8,287
|
|
$
|
21,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9: Reconciliation of Non-GAAP Measures and Calculation of
Regulatory Capital Measures
|
|
In addition to disclosing required regulatory capital measures,
we also report certain non-GAAP capital measures that management uses in
assessing its capital adequacy. These non-GAAP measures include average
tangible common equity, tangible common equity ("TCE") and TCE
ratio. The table below provides the details of the calculation of our
regulatory capital and non-GAAP capital measures. While our non-GAAP capital
measures are widely used by investors, analysts and bank regulatory agencies
to assess the capital position of financial services companies, they may not
be comparable to similarly titled measures reported by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
(Dollars in thousands) (unaudited)
|
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
Average Equity to Non-GAAP Average Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total stockholders' equity
|
|
|
$
|
905,646
|
|
$
|
912,598
|
|
$
|
929,867
|
|
$
|
948,302
|
|
$
|
936,218
|
Less: Average noncumulative perpetual preferred stock
|
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
Average noncumulative perpetual preferred stock
issuance costs
|
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
Average total common stockholders' equity
|
|
|
$
|
739,776
|
|
$
|
746,728
|
|
$
|
763,997
|
|
$
|
782,432
|
|
$
|
770,348
|
Less: Average intangible assets
|
|
|
|
(94,217)
|
|
|
(94,697)
|
|
|
(95,168)
|
|
|
(95,616)
|
|
|
(96,164)
|
Average tangible common equity
|
|
|
$
|
645,559
|
|
$
|
652,031
|
|
$
|
668,829
|
|
$
|
686,816
|
|
$
|
674,184
|
Stockholders' Equity to Non-GAAP Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
$
|
897,077
|
|
$
|
907,888
|
|
$
|
911,599
|
|
$
|
936,379
|
|
$
|
942,197
|
Less: Intangible assets
|
|
|
|
(93,907)
|
|
|
(94,383)
|
|
|
(94,859)
|
|
|
(95,336)
|
|
|
(95,812)
|
Noncumulative perpetual preferred stock
|
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
Noncumulative perpetual preferred stock issuance
costs
|
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
Tangible common equity
|
|
|
$
|
637,300
|
|
$
|
647,635
|
|
$
|
650,870
|
|
$
|
675,173
|
|
$
|
680,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock outstanding at end of period
|
|
|
|
43,868
|
|
|
43,868
|
|
|
44,368
|
|
|
44,665
|
|
|
44,614
|
Tangible book value
|
|
|
$
|
14.53
|
|
$
|
14.76
|
|
$
|
14.67
|
|
$
|
15.12
|
|
$
|
15.25
|
Total Assets to Tangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
7,099,149
|
|
$
|
7,203,822
|
|
$
|
7,398,325
|
|
$
|
7,364,156
|
|
$
|
7,449,109
|
Less: Intangible assets
|
|
|
|
(93,907)
|
|
|
(94,383)
|
|
|
(94,859)
|
|
|
(95,336)
|
|
|
(95,812)
|
Tangible assets
|
|
|
$
|
7,005,242
|
|
$
|
7,109,439
|
|
$
|
7,303,466
|
|
$
|
7,268,820
|
|
$
|
7,353,297
|
Non-GAAP TCE Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
|
|
|
$
|
637,300
|
|
$
|
647,635
|
|
$
|
650,870
|
|
$
|
675,173
|
|
$
|
680,515
|
Tangible assets
|
|
|
|
7,005,242
|
|
|
7,109,439
|
|
|
7,303,466
|
|
|
7,268,820
|
|
|
7,353,297
|
TCE ratio
|
|
|
|
9.10%
|
|
|
9.11%
|
|
|
8.91%
|
|
|
9.29%
|
|
|
9.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9: Reconciliation of Non-GAAP Measures and Calculation of
Regulatory Capital Measures (Continued)
|
|
|
|
|
BASEL III
|
|
|
|
|
|
|
Standardized
|
|
BASEL I
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
(Dollars in thousands) (unaudited)
|
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
Regulatory Capital Metrics
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital
|
|
|
$
|
594,482
|
|
|
601,789
|
|
|
611,542
|
|
|
633,297
|
|
|
N/A
|
Tier 1 common equity capital
|
|
|
|
N/A
|
|
$
|
N/A
|
|
$
|
N/A
|
|
$
|
N/A
|
|
$
|
575,655
|
Tier 1 capital
|
|
|
|
782,912
|
|
|
782,561
|
|
|
790,936
|
|
|
809,652
|
|
|
776,525
|
Total risk-based capital
|
(25)
|
|
|
846,727
|
|
|
847,267
|
|
|
868,568
|
|
|
887,042
|
|
|
851,410
|
Risk-weighted assets
|
|
|
|
4,894,851
|
|
|
5,003,285
|
|
|
4,988,754
|
|
|
5,015,090
|
|
|
4,847,150
|
Regulatory Capital Ratios
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital ratio
|
(26)
|
|
|
12.15%
|
|
|
12.03%
|
|
|
12.26%
|
|
|
12.63%
|
|
|
N/A
|
Tier 1 common equity ratio
|
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
11.88%
|
Tier 1 risk-based capital ratio
|
(27)
|
|
|
15.99%
|
|
|
15.64%
|
|
|
15.85%
|
|
|
16.14%
|
|
|
16.02%
|
Total risk-based capital ratio
|
(28)
|
|
|
17.30%
|
|
|
16.93%
|
|
|
17.41%
|
|
|
17.69%
|
|
|
17.57%
|
Leverage ratio
|
(29)
|
|
|
11.18%
|
|
|
10.93%
|
|
|
11.05%
|
|
|
11.23%
|
|
|
10.61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Capital Ratio Under Basel III Standardized
Approach
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
$
|
897,077
|
|
$
|
907,888
|
|
|
911,599
|
|
|
936,379
|
|
|
|
Less: Noncumulative perpetual preferred stock
|
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
(176,000)
|
|
|
|
Noncumulative perpetual preferred stock issuance costs
|
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
|
|
10,130
|
|
|
|
Unrealized gains on available-for-sale securities, net
of income tax
|
(30)
|
|
|
(16,925)
|
|
|
(22,486)
|
|
|
(18,833)
|
|
|
(30,215)
|
|
|
|
Unrealized losses on cash flow hedges, net of income
tax
|
(30)
|
|
|
2,927
|
|
|
4,330
|
|
|
4,532
|
|
|
5,891
|
|
|
|
|
|
|
|
717,209
|
|
|
723,862
|
|
|
731,428
|
|
|
746,185
|
|
|
|
Less: Disallowed goodwill
|
|
|
|
(86,069)
|
|
|
(86,069)
|
|
|
(86,069)
|
|
|
(86,069)
|
|
|
|
Disallowed other intangible assets, net
|
(31)
|
|
|
(1,912)
|
|
|
(2,028)
|
|
|
(2,145)
|
|
|
(2,261)
|
|
|
|
Disallowed deferred tax assets, net
|
(31)
|
|
|
(34,746)
|
|
|
(33,976)
|
|
|
(31,672)
|
|
|
(24,558)
|
|
|
|
Common equity Tier 1 capital
|
|
|
|
594,482
|
|
|
601,789
|
|
|
611,542
|
|
|
633,297
|
|
|
|
Plus: Qualifying noncumulative perpetual preferred stock
|
|
|
|
176,000
|
|
|
176,000
|
|
|
176,000
|
|
|
176,000
|
|
|
|
Qualifying noncumulative perpetual preferred stock
issuance costs
|
|
|
|
(10,130)
|
|
|
(10,130)
|
|
|
(10,130)
|
|
|
(10,130)
|
|
|
|
Subordinated capital notes
|
|
|
|
35,000
|
|
|
35,000
|
|
|
35,000
|
|
|
35,000
|
|
|
|
Less: Disallowed deferred tax assets, net
|
|
|
|
(12,440)
|
|
|
(20,098)
|
|
|
(21,475)
|
|
|
(24,515)
|
|
|
|
Tier 1 capital
|
|
|
|
782,912
|
|
|
782,561
|
|
|
790,937
|
|
|
809,652
|
|
|
|
Plus: Long-term debt qualifying as Tier 2 capital
|
|
|
|
-
|
|
|
-
|
|
|
13,400
|
|
|
13,400
|
|
|
|
Qualifying allowance for loan and lease losses
|
|
|
|
63,815
|
|
|
64,706
|
|
|
64,232
|
|
|
63,990
|
|
|
|
Tier 2 capital
|
|
|
|
63,815
|
|
|
64,706
|
|
|
77,632
|
|
|
77,390
|
|
|
|
Total risk-based capital
|
|
|
$
|
846,727
|
|
$
|
847,267
|
|
|
868,569
|
|
|
887,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
OFG Bancorp (NYSE:
OFG)
|
|
|
|
Table 10: Notes to Financial Summary, Selected Metrics, Loans,
and Consolidated Financial Statements (Tables 1 - 9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We use the term "acquired loans" to refer to loans
acquired from the BBVAPR acquisition (December 18, 2012) and loans acquired
in the Eurobank FDIC-Assisted acquisition (April 30, 2010), recorded at fair
value at acquisition. The majority of these loans acquired are subsequently
accounted for based on estimated cash flows expected to be collected over the
life of the loans (under the accounting standard known as ASC 310-30).
Because the guidance takes into consideration future credit losses expected
to be incurred over the life of the loans, there are no charge-offs or an
allowance associated with this loans unless the estimated cash flows expected
to be collected decrease subsequent to acquisition. In addition, these loans
are not classified as delinquent or nonperforming even though the customer
may be contractually past due because we expect that we will fully collect
the carrying value of these loans. Acquired loans also include loans acquired
in the BBVAPR acquisition that were accounted for under the provisions of ASC
310-20, which at the end of the reporting period still have unamortized
premium or discount. The fair value of these loans already include a credit
mark for losses estimated on these loans. The allowance for loan and lease
losses for these loans consider such marks applied. The accounting and
classification of these loans may significantly alter some of our reported
credit quality metrics. We therefore supplement certain reported credit
quality metrics with metrics adjusted to exclude the impact of these acquired
loans. Loans acquired in the BBVAPR acquisition that were accounted for under
the provisions of ASC 310-20, which had fully amortized their premium or
discount recorded at the date of acquisition at the end of the reporting
period, are removed from the acquired loans category.
|
(2)
|
Total banking and wealth management revenues.
|
(3)
|
During Q1 2015, the Company placed its $200 million
participation in a fuel purchase line of credit with the Puerto Rico Electric
Power Authority (PREPA) on non-accrual status and recorded a $24.0 million
provision for loan and lease losses. During Q4 2015, the Company recorded an
additional $30.4 million provision for loan and lease losses related to
PREPA. Both were part of the overall quarterly provision for loan and lease
losses.
|
(4)
|
Calculated based on net (loss) income available to common
shareholders divided by average common shares outstanding for the period.
|
(5)
|
Calculated based on net (loss) income available to common
shareholders plus the preferred dividends on the convertible preferred stock,
divided by total average common shares outstanding and equivalents for the
period as if converted.
|
(6)
|
The Board of directors decreased OFG's regular quarterly
dividend per common share to $0.06 per share during Q4 2015.The Board of
directors had previously increased OFG's regular quarterly dividend per
common share to $0.10 per share during Q4 2014.
|
(7)
|
Tangible book value per common share is a non-GAAP measure calculated
based on tangible common equity divided by common shares outstanding. See
"Table 9: Reconciliation of Non-GAAP Measures and Calculation of
Regulatory Capital Measures" for additional information.
|
(8)
|
Information includes all loans held for investment, including
all acquired loans. Acquired loans, including those accounted for under ASC
310-30, are disclosed at carrying amount.
|
(9)
|
Calculated based on annualized net interest income for the
period divided by average interest-earning assets for the period.
|
(10)
|
Calculated based on annualized income, net of tax, for the
period divided by average total assets for the period.
|
(11)
|
Calculated based on annualized income available to common
shareholders for the period divided by average tangible common equity for the
period. See "Table 9: Reconciliation of Non-GAAP Measures and
Calculation of Regulatory Capital Measures" for additional information.
|
(12)
|
Calculated based on non-interest expense for the period divided
by total net interest income and total banking and financial services
revenues for the period.
|
(13)
|
Calculated based on annualized net charge-offs for the period
divided by average loans held for investment for the period.
|
(14)
|
Non-GAAP ratios. See "Table 9: Reconciliation of Non-GAAP
Measures and Calculation of Regulatory Capital Measures" for information
on the calculation of each of these ratios.
|
(15)
|
During Q4 2014, the FDIC and the Company agreed to a change in
the methodology for the determination of the fair value of covered assets.
The change resulted in higher claims to the FDIC and a lower amortization of
the indemnification asset was required during the quarter.
|
(16)
|
During Q4 2014, the Company offered a voluntary early retirement
program for qualified employees and accumulated additional compensation
expenses of $3.8 million related to this program.
|
(17)
|
During Q3 2015, the Company offered a voluntary early retirement
program for qualified employees and accumulated additional compensation
expenses of $917 thousand related to this program.
|
(18)
|
At September 30, 2015, amount includes a $25 million receivable
from Q2 2015 loss-share certifications for non-single family residential
mortgage loans and a $20 million receivable from the sale of non-performing covered
loans during Q3 2015, which were paid by the FDIC in December 2015.
|
(19)
|
Covered loans are no longer a material amount. Therefore, during
Q3 2015, the Company changed its presentation of loans to include the
following loan segments: "Non-acquired" loans, "Acquired
BBVAPR" loans and "Acquired Eurobank" loans.
|
(20)
|
During Q4 2015, the FDIC expense includes a charge of $2.2
million for the recovery period.
|
(21)
|
During Q4 2014, the Company purchased 446,498 shares under the
current stock repurchase program for a total of $6.5 million, at an average
price of $14.65 per share. During Q2 2015, the Company purchased 303,985
shares under the current stock repurchase program for a total of $4.2
million, at an average price of $13.91 per share. In addition, during Q3
2015, the Company purchased 500,000 shares under the current stock repurchase
program for a total of $4.7 million, at an average price of $9.39 per share.
|
(22)
|
Production of new loans (excluding renewals).
|
(23)
|
Loans accounted for under ASC 310-30 (Loans acquired with
deteriorated credit quality, including those by analogy), including Eurobank
acquired loans, are considered to be performing due to the application of the
accretion method, in which these loans will accrete interest income over the
remaining life of the loans using estimated cash flow analyses. Therefore,
they are not included as non-performing loans.
|
(24)
|
During Q1 2015, the Company implemented the New Capital Rules,
which incorporates Basel III Capital Requirements. The New Capital Rules
revise the definitions and the components of regulatory capital, as well as
address other issues affecting the numerator in banking institutions’
regulatory capital ratios. The New Capital Rules also address asset risk
weights and other matters affecting the denominator in banking institutions’
regulatory capital ratios and replace the existing general risk-weighting
approach with a more risk-sensitive approach. The New Capital Rules are
effective for OFG Bancorp and Oriental Bank on January 1, 2015, subject to
phase-in periods for certain of their components and other provisions. Among
other matters, the New Capital Rules: (i) introduce a new capital measure
called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio
of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of
CET1 and “Additional Tier 1 capital” instruments meeting certain revised
requirements; (iii) mandate that most deductions/adjustments to regulatory
capital measures be made to CET1 and not to the other components of capital;
and (iv) expand the scope of the deductions from and adjustments to capital
as compared to existing regulations.
|
(25)
|
Total risk-based capital equals the sum of Tier 1 capital and
Tier 2 capital.
|
(26)
|
Common equity Tier 1 capital ratio is a regulatory capital
measure calculated based on Common equity Tier 1 capital divided by
risk-weighted assets.
|
(27)
|
Tier 1 risk-based capital ratio is a regulatory capital measure
calculated based on Tier 1 capital divided by risk-weighted assets.
|
(28)
|
Total risk-based capital ratio is a regulatory capital measure
calculated based on Total risk-based capital divided by risk-weighted assets.
|
(29)
|
Leverage capital ratio is a regulatory capital measure
calculated based on Tier 1 capital divided by average assets, after certain
adjustments.
|
(30)
|
During Q1 2015, the Company decided to elect the opt-out option
to continue to exclude AOCI items from regulatory capital calculation.
|
(31)
|
Amounts based on transition provisions for regulatory capital
deductions and adjustments of 40% for 2015.
|
(32)
|
During Q2 2015, the Company sold mortgage servicing rights on
$653.5 million of mortgage loans to Scotiabank PR. As a result, the
delinquent GNMA's buy-back option program loans and corresponding liability
decreased $30.5 million from Q1 2015.
|
(33)
|
The FDIC loss share coverage for the commercial loans and other
non-single family loans was in effect until June 30, 2015. The FDIC granted
an extension of 120 days for the sale of part of this portfolio and agreed to
cover up to $20 million with respect to the aggregate loss resulting from
this sale. Therefore, the FDIC Indemnification Asset for projected claimable
losses on non-single family residential loans loss-share period expired at
June 30, 2015.
|
(34)
|
On September 28, 2015, the Company sold a portion of covered
non-performing commercial loans amounting to $197.1 million unpaid principal
balance ($100.0 million carrying amount). The sales price was 18.44% of UPB,
or $36.3 million. The FDIC agreed to cover $20.0 million of losses as part of
its loss-share agreement with the Company. As a result, a $20.0 million
reimbursement was recorded in the statement of operations. The Company also
recorded a $32.9 million provision for loan and lease losses for acquired
Eurobank loans, which was partially offset by $4.6 million in cost
recoveries. Also, as part of this transaction, the Company sold certain
non-performing commercial loans and real estate owned from the BBVAPR
acquisition amounting to $38.1 million unpaid principal balance ($9.9 million
carrying amount). The sales price was $5.2 million. As a result, a $5.2
million provision for loan and lease losses was recorded for BBVAPR acquired
loans, which was partially offset by $2.4 million in cost recoveries. In
addition, certain real estate owned with a carrying amount of $11.0 million
was sold for $1.7 million. At September 30 , 2015, the Company had a $13.0
million receivable related to this sale and a $20.0 million receivable from
the FDIC for the shared-loss portion, which were paid by the FDIC in December
2015.
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(35)
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During Q4 2015, the Company released $3.1 million of the company's
valuation allowance, increasing the deferred tax benefit for the period. This
was the result of a change in entity type of its insurance subsidiary,
Oriental Insurance Inc. to a limited liability corporation, now Oriental
Insurance LLC. In addition, the deferred tax tax benefit increased $9.0
million as a result of an increase in the allowance for loan and lease
losses.
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14
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OFG Bancorp (NYSE:OFG)
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