OFG Bancorp Reports 4Q20 & 2020 Results

OFG Bancorp (NYSE:OFG), the financial holding company for Oriental Bank, reported results for the fourth quarter and year ended December 31, 2020.

CEO Comment

José Rafael Fernández, President, Chief Executive Officer, and Vice Chairman of the Board, said: “We had another quarter of strong performance in our core businesses, reflecting our larger scale, solid levels of new loan production, lower cost of funds, higher non-interest income, and reduced expenses.

“On a macro-basis, we are benefitting from the improved economic environment in Puerto Rico and the U.S. Virgin Islands due to the continuing nascent rebound from the easing of COVID-19 restrictions and from pandemic-related stimulus.

“Within this environment, Oriental’s success continues to be driven by resiliency, agility, and being more than ready to help customers and communities with their changing product and service needs. During the fourth quarter, we also completed the integration of the Scotiabank acquisition and related cost-savings.

“We look forward to realizing the full benefits of our larger scale over the course of 2021. The vaccine inoculations should reduce the threat of COVID-19, and the economies of Puerto Rico and USVI should expand from all the pending federal reconstruction and stimulus.

“2020 was another challenging year for Puerto Rico, USVI and Oriental. As in years past, we successfully worked our way through it. Our heartfelt thanks go to our team members who helped customers by swiftly processing loan deferrals; implementing an easy-to-use, fully online Paycheck Protection Program; managing the rapid influx of deposits; and providing contactless and in-person services in a COVID-safe manner. Thanks also to the many team members who had to successfully adapt to working from home and implement the Scotiabank integration in the middle of a pandemic.”

4Q20 Highlights

Increased Earnings & Revenues: EPS diluted of $0.42 compared to a loss of $0.05 in 4Q19. Results reflected pre-tax merger and restructuring charges of $10.1 million compared to $21.5 million in 4Q19. Total core revenues were $132.8 million versus $98.4 million in 4Q19. Net interest income of $98.7 million increased 24.7%. Non-interest income of $34.0 million increased 77.4%. Net interest margin was 4.24% compared to 5.34% in 4Q19.