OFG Bancorp Reports Strong 2024 Financial Performance

OFG Bancorp ( (OFG) ) has released its Q4 earnings. Here is a breakdown of the information OFG Bancorp presented to its investors.

OFG Bancorp, a diversified financial holding company, offers retail and commercial banking, lending, and wealth management services across Puerto Rico and the U.S. Virgin Islands through its subsidiaries like Oriental Bank.

For the fourth quarter and full year of 2024, OFG Bancorp reported an increase in earnings per share (EPS) and total core revenues, marking a strong financial performance. The company achieved a diluted EPS of $1.09 in 4Q24, up from $1.00 in the previous quarter, and $4.23 for the full year, compared to $3.83 in 2023. Total core revenues rose to $181.9 million in 4Q24 and $709.6 million for the year.

Key financial metrics for the quarter included a net interest margin of 5.40% and a return on average assets of 1.75%. The company experienced growth in total interest income, which was reported at $190.2 million, while interest expenses slightly decreased to $41.0 million. OFG Bancorp also saw a notable rise in its banking and financial service revenues, driven by insurance commission recognition and favorable mortgage servicing rights valuation.

Despite increased provisions for credit losses, reflecting higher loan volumes and specific reserves, the company managed a healthy credit quality with net charge-offs decreasing slightly. Non-interest expenses rose due to strategic business activities, including early retirement initiatives. The company also completed significant share buybacks, enhancing its tangible book value.

Looking ahead, OFG Bancorp remains optimistic about its operational execution and market expansion, supported by its Digital First strategy. Management emphasizes continued focus on delivering value to stakeholders while navigating economic uncertainties.