In This Article:
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Earnings Per Share (EPS): $1, up 5.3% year-over-year.
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Total Core Revenues: $174.1 million, up 1.1% year-over-year.
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Net Interest Margin: 5.43%.
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Provision for Credit Losses: $21.4 million.
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Noninterest Expenses: $91.6 million.
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Pre-Provision Net Revenues: $83.1 million.
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Total Assets: $11.5 billion, up 12% year-over-year.
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Customer Deposits: $9.5 billion.
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Loans Held for Investment: $7.8 billion.
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New Loan Production: $572 million.
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Investments: $2.6 billion, up 26% year-over-year.
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Cash: $681 million, up 28% year-over-year.
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CET1 Ratio: 14.37%.
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Return on Average Assets: 1.66%.
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Return on Tangible Common Equity: 15.94%.
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Tangible Book Value Per Share: $26.15, up 8% from the second quarter.
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Loan Yield: 8.05%.
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Net Charge-Offs: $17 million.
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Core Deposit Cost: 153 basis points.
Release Date: October 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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OFG Bancorp (NYSE:OFG) reported a 5.3% year-over-year increase in earnings per share, driven by a 1.1% rise in total core revenues.
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Digital adoption continues to grow, with 95% of routine retail transactions conducted through digital and self-service channels.
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Total assets increased by 12% year-over-year, reaching $11.5 billion, with significant growth in investments and cash.
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The CET1 ratio stands strong at 14.37%, indicating robust capital strength.
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OFG Bancorp (NYSE:OFG) acquired servicing rights to a $1.7 billion Puerto Rico residential mortgage loan portfolio, enhancing its servicing capabilities.
Negative Points
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Debit card interchange fees were reduced by $2.7 million due to the Durbin amendment, impacting banking and financial service revenues.
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Total banking and financial service revenues decreased by $5.8 million from the second quarter, partly due to reduced MSR valuation and absence of certain fees.
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Net charge-offs increased by $2 million from the second quarter, with consumer net charge-offs resuming higher traditional levels.
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Provision for credit losses rose by $5.8 million, reflecting increased loan volume and other factors.
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Demand deposits decreased, reflecting a shift towards time and savings deposits, which may affect liquidity management.
Q & A Highlights
Q: Can you provide insights on the strong loan growth, particularly in auto and commercial sectors, and the outlook for loan growth in Puerto Rico and the US? A: Jose Fernandez, CEO: The economic activity in Puerto Rico supports strong growth in commercial, auto, and consumer loans. We have a strong pipeline in Puerto Rico, with some commercial loans delayed to the fourth quarter. In the US, we are more encouraged by the economic conditions, such as inflation coming down and steady growth, which should strengthen our lending pipeline. Overall, we expect to finish the year strong and start 2025 with momentum.