Q1 2025 OFG Bancorp Earnings Call Transcript
Key Points
- OFG Bancorp (OFG) reported a strong start to the year with solid overall performance, generating earnings per share diluted of $1.
- The company's Digital First strategy is driving innovation, with significant growth in digital enrollments and transactions.
- OFG Bancorp (OFG) launched three new digital tools, including an omnichannel online mobile app and Apple Pay, enhancing customer experience.
- The company increased its dividend by 20% and bought back $23.4 million of shares, supported by strong capital generation.
- Credit quality remains stable with a well-managed portfolio, and the company maintains a strong capital position with a CET1 ratio of 14.27%.
- Total interest income declined by $941,000 due to two fewer business days, negatively affecting interest income by $3 million.
- Total banking and financial service revenues decreased by $3.6 million, impacted by annual insurance fees and MSR valuation changes.
- Net charge-offs increased by $4.5 million, including a partial charge-off of a previously reserved commercial loan.
- The company faces higher levels of volatility due to macroeconomic and geopolitical events, which could impact economic conditions.
- The power grid in Puerto Rico remains fragile, with ongoing challenges in achieving sustainable and cheaper power solutions.
Good morning. Thank you for joining OFG Bancorp's conference call. My name is Madison. I will be your operator today. Our speakers are José Rafael Fernández, Chief Executive Officer and Chairman of the Board of Directors; Maritza Arizmendi, Chief Financial Officer; and Cesar Ortiz, Chief Risk Officer.
A presentation accompanies today's remarks. It can be found on the homepage of the OFG website under the first quarter 2025 section. This call may feature certain forward-looking statements about management's goals, plans and expectations. These statements are subject to risks and uncertainties outlined in the Risk Factors section of OFG's SEC filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call. (Operator Instructions)
I would now like to turn the call over to Mr. Fernandez.
Good morning, and thank you for joining us. We are pleased to report our first
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