Page 1

OFGBancorp OFG Bancorp Reports 1Q21 Results SAN JUAN , Puerto Rico , April 21 , 2021 - OFG Bancorp ( NYSE : OFG ) , the financial holding company for Oriental Bank , reported results for the first quarter ended March 31 , 2021 . CEO Comment José Rafael Fernández , Chief Executive Officer , said : “ First quarter results reflected strong core performance based on the continued success of our strategies focusing on agility and service . Our results also reflected the federal stimulus , increased liquidity , and an improving Puerto Rico economy as more people get vaccinated . " We benefitted from strong new loan generation and deposit growth , significantly reduced cost of funds , a more efficient operating structure , and the release of some COVID - related loan reserves . " We followed up last year's efforts to help small businesses and their employees with another $ 126 million in Paycheck Protection Program loans . Our proprietary PPP portal enables clients to apply for funds , receive them , and then apply for forgiveness , quickly and easily , and all online . " Performance metrics improved with a loan yield of 6.61 % , return on average assets of 1.21 % , return on average tangible common stockholders ' equity of 13.11 % , and an efficiency ratio of 60.84 % . Credit metrics also improved as net charge - offs , delinquency rates , and loan deferrals all fell . " Our capital strategies are working well . In January , we increased the regular quarterly cash dividend 14 % . In March , we announced the redemption of all three outstanding series of preferred stock , which will improve our capital structure , enable us to effectively deploy excess liquidity , and increase net income available to shareholders . As of 1Q21 , we more than earned back all the tangible book value per common share dilution involved in the Scotiabank acquisition significantly ahead of schedule . " As Puerto Rico and USVI continue experiencing stronger signs of economic revival , at OFG we are strategically well - positioned to benefit from and play a major part in this long - awaited development . Thanks to all our team members who are más que listo ( more than ready ) to help our customers achieve their goals and aspirations through the pandemic and beyond . " 1Q21 Highlights Earnings : EPS diluted was $ 0.56 compared to $ 0.42 in 4Q20 and $ 0.00 in 1Q20 , which was the first quarter to be impacted by the pandemic . Revenues : Total core revenues were $ 127.7 million compared to $ 132.8 million in 4Q20 . 4Q20 benefited from $ 3.9 million in seasonal annual insurance commissions , $ 2.0 million in mortgage sales held back from 3Q20 , and $ 3.1 million interest income from acquired loan pre - payments . 1Q21 included $ 1.6 million in interest income from unamortized yield from approximately $ 92 million of forgiven PPP loans and benefitted from $ 1.4 million lower cost of deposits . 1