OFG Bancorp Reports 1Q24 Results

OFG Bancorp (NYSE: OFG), the financial holding company for Oriental Bank, today reported results for the first quarter ended March 31, 2024. EPS diluted of $1.05 compared to $0.98 in 4Q23 and $0.96 in 1Q23. Total core revenues of $174.2 million compared to $175.6 million in 4Q23 and $164.4 million in 1Q23.

CEO Comment

José Rafael Fernández, Chief Executive Officer, said: “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.”

1Q24 Highlights

Performance Metrics: Net interest margin of 5.40%, return on average assets of 1.77%, return on average tangible common stockholders’ equity of 17.92%, and efficiency ratio of 52.49%.

Total Interest Income of $183.4 million compared to $176.2 million in 4Q23 and $149.0 million in 1Q23. Compared to 4Q23, 1Q24 primarily reflected higher average balances and yields on investment securities, cash and loans. 1Q24 included one fewer day than 4Q23, which reduced interest income by about $1.4 million.

Total Interest Expense of $39.3 million compared to $32.7 million in 4Q23 and $13.1 million in 1Q23. Compared to the previous quarter, 1Q24 core deposit average balances increased 10% and the cost increased 40 basis points reflecting the full effect of the $1.2B in government funds deposited late in 4Q23.

Total Banking & Financial Service Revenues of $30.1 million compared to $32.1 million in 4Q23 and $28.5 million in 1Q23. 1Q24 reflected one fewer day compared to 4Q23, which included $2.5 million of annual insurance recognition.

Pre-Provision Net Revenues of $83.0 million compared to $88.2 million in 4Q23 and $74.6 million in 1Q23. 4Q23 included $8.8 million from a gain on the sale of nonperforming commercial loans and from annual insurance recognition revenues.

Total Provision for Credit Losses of $15.1 million compared to $19.7 million in 4Q23 and $9.4 million in 1Q23. 1Q24 provision reflected $15.1 million related to loan volume and $1.7 million as a result of the strategic sale of a performing U.S. commercial loan. This was partially offset by $1.7 million mainly due to a reduction in specific reserves for payments received on substantially reserved U.S. commercial loans.