OFG Bancorp (OFG, Financial) released its 8-K filing on April 18, 2024, detailing robust financial results for the first quarter ended March 31, 2024. The company reported a diluted EPS of $1.05, a significant improvement from $0.98 in the previous quarter and $0.96 year-over-year. This performance reflects a solid 9.4% increase in EPS year-over-year, driven by a 5.9% rise in total core revenues to $174.2 million.
OFG Bancorp, a prominent financial holding entity operating through subsidiaries like Oriental Bank, offers a diverse range of banking and financial services. These services span across commercial, consumer, and mortgage lending, alongside wealth management and treasury operations, primarily serving the Puerto Rico and U.S. Virgin Islands markets.
Financial Highlights and Operational Performance
The company's net interest income saw an uptick to $144.1 million from $135.9 million in the same quarter last year, supported by higher average balances and yields on investment securities, cash, and loans. However, total interest expense increased to $39.3 million due to higher core deposit balances and costs, reflecting the full impact of $1.2 billion in government funds deposited late in the previous quarter.
OFG's strategic focus on digital engagement and customer acquisition continues to bear fruit, as evidenced by the growth in core revenues and the expansion of its loan portfolio, which stood at $7.54 billion at the end of the period, marking a 10% increase year-over-year.
The bank's credit quality remains robust with net charge-offs of $19.8 million, and early and total delinquency rates showing improvement from both the previous quarter and pre-pandemic levels. The nonperforming loan rate was notably the lowest over the last five quarters at 1.10%.
CEO José Rafael Fernández commented on the results, stating:
"First quarter EPS-diluted increased 9.4% year-over-year on a 5.9% increase in total core revenues, reflecting an overall solid performance across all businesses in line with our plans. Our Digital First strategy continues to drive customer acquisition and engagement. Puerto Rico business activity and consumer liquidity looks good. Our balance sheet is well positioned for a higher for longer interest rate environment. Thanks to our team members for their hard work and commitment to helping our customers and communities achieve progress."
With a capital adequacy that remains strong, evidenced by a CET1 ratio of 14.45%, and an efficiency ratio of 52.49%, OFG Bancorp is well-positioned to sustain its growth trajectory and continue delivering value to its stakeholders.
For more detailed financial information and future outlooks, stakeholders are encouraged to refer to the full earnings presentation available on OFG’s Investor Relations website.
Explore the complete 8-K earnings release (here) from OFG Bancorp for further details.
