OFG Bancorp Reports 3Q18 Results

OFG Bancorp (NYSE: OFG) reported results for the third quarter ended September 30, 2018.

Net income available to shareholders was $19.6 million or $0.42 per fully diluted share, compared to 2Q18’s $16.2 million or $0.35 per fully diluted share and breakeven results in the year ago third quarter due to a special hurricanes related loan loss provision.

“EPS growth reflects another quarter of strong, consistent core growth based on the success of our strategy of differentiation – providing superior customer service, convenience and technology – coupled with Puerto Rico’s continued rebound following hurricanes that struck in September 2017,” said José Rafael Fernández, President, Chief Executive Officer, and Vice Chairman of the Board.

Highlights

• All key performance metrics improved, including net interest margin at 5.38%, return on average assets at 1.42%, return on average tangible common stockholders’ equity at 10.94%, and efficiency ratio at 50.58%.
• Increased profitability was driven by new loan production of $354 million, higher average loan yields of 7.55%, annualized increase in average loan balances of 9.7%; and lower non-interest expenses.
• Core deposit balances of $4.56 billion rose 3.2% from 2Q18 as customer count grew 1.2% sequentially and 4.0% year over year.
• Tangible book value per common share of $16.23 at September 30, 2018 increased 6.8% annualized from June 30, 2018.
• Regulatory capital is expected to benefit by $84.0 million as a result of the announcement in 3Q18 of the mandatory conversion effective Monday, October 22^nd, of the Series C 8.750% Non-Cumulative Convertible Perpetual Preferred Stock.

Conference Call

A conference call to discuss OFG’s 3Q18 results, outlook and related matters will be held today at 10:00 AM Eastern Time. The call can be accessed live by dialing [phone] or [phone]. Use conference ID 758-9354. The call can also be accessed live on OFG’s website at www.ofgbancorp.com. Access the webcast link in advance to download any necessary software. A replay of the webcast will be available shortly thereafter.

CEO Comments

Mr. Fernández stated: “On behalf of OFG’s entire team, we are extremely proud to report another quarter of superior core growth across all facets of our business.

“3Q18 EPS is up more than 20% sequentially and significantly better year over year. All financial metrics continued to build strong momentum going forward.

“Key to our success has been the effectiveness of strategies we have been working on for years. This has enabled us to get closer to our commercial and retail customers through value-added service, increased convenience and highly efficient technology.