OFG Bancorp (OFG) Q3 2024 earnings summary

Executive summary

• Reported Q3 2024 diluted EPS of $1.00, up 5.3% year-over-year, with core revenues rising 1.1% and net income of $47.0 million.

• Digital adoption and engagement continued to grow, with digital enrollment up 13% year-over-year and 95% of routine retail transactions now digital.

• Celebrated 60th anniversary and approved a new $50 million stock repurchase program in October 2024.

• Board increased the quarterly dividend to $0.25 per share, reflecting confidence in capital strength.

Financial highlights

• Total assets reached $11.5 billion, customer deposits $9.53 billion, and loans held for investment $7.8 billion as of Q3 2024.

• Net interest margin was 5.43%; return on average assets 1.66%; return on average tangible common equity 15.94%; efficiency ratio 52.60%.

• Tangible book value per share increased to $26.15, up 13.1% year-to-date.

• Pre-provision net revenues were $83.1 million.

• Non-interest income for Q3 2024 was $26.9 million, down 12.5% year-over-year, mainly due to lower interchange fees and mortgage banking activities.

Outlook and guidance

• Management expects continued solid performance, supported by resilient Puerto Rico economic conditions and ongoing digital transformation.

• Fourth quarter NIM expected between 5.3% and 5.4%, reflecting recent Fed rate cuts.

• Non-interest expense projected at $91–$93 million, with efficiency ratio stable.

• Effective tax rate for 2024 expected to be 26.8%, reflecting preferential tax treatment and discrete benefits.

• Expects deposit stabilization and growth into 2025 as rates decline.