While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of ...

Financial Data and Key Metrics Changes - Earnings per share diluted was reported at $1, driven by strong operating execution and loan and deposit growth [5] - Core revenues totaled $178 million, with total interest income at $189 million, a decline of $941,000 due to two fewer business days [11][12] - Total interest expense decreased to $40 million, down $874,000, reflecting the same two fewer business days [12] - Non-interest expense totaled $93.5 million, down $6.3 million, aligning with guidance for the quarter [14][15] - Efficiency ratio was 52.2%, return on average assets was 1.56%, and return on tangible common equity was 15.28% [16] Business Line Data and Key Metrics Changes - Average loan balances were $7.8 billion, up close to 1%, with end-of-period loans held for investment totaling $7.9 billion, up 4.2% year-over-year [17][18] - New loan origination was $559 million, down 9.3% from the fourth quarter but up 4.2% year-over-year [19] - Average core deposits were $9.6 billion, up close to 1%, with end-of-period balances increasing by $308 million or 3.3% quarter-over-quarter [20] Market Data and Key Metrics Changes - Total assets were $11.7 billion, up 5% from a year ago and 2% from the fourth quarter [17] - Cash increased by 20% to $710.6 million, while investments totaled $2.8 billion, up 2% [23] - Net interest margin was reported at 5.42%, slightly higher than the previous quarter [24] Company Strategy and Development Direction - The company continues to invest in technology through a digital-first strategy, enhancing customer relations and operational efficiency [6][34] - New digital tools were launched, including an omni-channel online mobile app and smart banking insights, reinforcing the company's innovative position in the Puerto Rican banking market [8][9] - The management emphasized the importance of adapting to macroeconomic and geopolitical events while maintaining a strong balance sheet [32][34] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economy in Puerto Rico is growing, it is experiencing higher volatility due to external factors [32] - The Digital First strategy is proving effective, with expectations for continued investment in customer innovations [34] - The management expressed confidence in consumer credit trends and the overall stability of credit quality [34][30] Other Important Information - The company bought back $23.4 million of shares and raised its dividend by 20% during the quarter [16] - The CET1 ratio was reported at 14.27%, with stockholders' equity totaling $1.3 billion, up about $41 million [28] Q&A Session Summary Question: Digital channel deposit account openings - Management confirmed that approximately 25%-26% of checking accounts and certificates of deposits are opened through the digital channel, with increasing trends observed [41] Question: Deposit growth and seasonality - Management acknowledged seasonal components affecting deposits in the first quarter, including tax refunds and the Child Tax Credit, and expressed optimism for continued deposit growth [43] Question: Consumer charge-offs normalization - The Chief Risk Officer indicated expectations for stabilization in consumer charge-offs, particularly in the auto portfolio, with a positive trend noted [52] Question: Bond book duration and cash flow - The duration of the bond book is around five to six years, with repayments of $84 million noted for the quarter [60] Question: Fee income outlook - Management expects banking fees to remain in the range of $29 million to $30 million for the year, with higher activity in debit card transactions noted [78] Question: Competitive environment in Puerto Rico - Management described the competitive landscape as relentless, with a focus on deepening customer relationships and growing deposits [92]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1, driven by strong operating execution and loan and deposit growth [4] - Core revenues totaled $178 million, with total interest income at $189 million, reflecting a decline of $941,941 due to two fewer business days [9] - Total interest expense decreased to $40 million, down $874,000, primarily due to the same two fewer business days [10] - The efficiency ratio was 52.42%, return on average assets was 1.56%, and return on tangible common equity was 15.28% [12] Business Line Data and Key Metrics Changes - Average loan balances were $7.8 billion, up nearly 1%, with loans held for investment totaling $7.9 billion, up 44.2% year-over-year [13] - New loan origination was $559 million, down 9.3% from the fourth quarter but up 4.2% year-over-year [14] - Average core deposits were $9.6 billion, up nearly 1%, with end-of-period balances increasing by $308 million or 3.3% quarter-over-quarter [15] Market Data and Key Metrics Changes - The company experienced a 12% year-over-year growth in digital enrollment and a 21% increase in digital loan payments [6] - The net charge-off rate was 1.05%, up 23 basis points sequentially, with consumer net charge-off ratio increasing to 4.34% [19][20] Company Strategy and Development Direction - The company continues to invest in technology through a digital-first strategy, enhancing customer relationships and operational efficiency [5][25] - The management emphasized the importance of adapting to the economic environment in Puerto Rico, with a focus on consumer credit trends and maintaining a strong balance sheet [24][25] Management's Comments on Operating Environment and Future Outlook - The management noted that while the business environment in Puerto Rico is positive, there are concerns about macroeconomic and geopolitical volatility impacting the economy [24] - The company is committed to methodically executing its business plan and supporting clients and communities [25] Other Important Information - The company bought back $23.4 million of shares and raised its dividend by 20% during the quarter [12] - The CET1 ratio was 14.27%, indicating a strong capital position [21] Q&A Session Summary Question: Digital channel deposit account openings - The company confirmed that approximately 25% to 26% of checking accounts and certificates of deposits are opened through digital channels [32] Question: Deposit growth and seasonality - The management acknowledged that the first quarter has seasonal components affecting deposits, including tax refunds [34] Question: Consumer charge-offs normalization - The Chief Risk Officer indicated expectations for stabilization in consumer charge-offs, particularly in the auto portfolio [42] Question: Bond book duration and cash flow - The duration of the bond book is around five to six years, with repayments of $84 million this quarter [49] Question: Margin trajectory - The management expects the net interest margin to remain in the range of 5.3% to 5.4% for the year, depending on funding side dynamics [50] Question: Competitive environment in Puerto Rico - The management noted that competition remains high, but they are pleased with core performance in deposits [79] Question: Onshoring opportunities in pharmaceuticals - The management expressed optimism about potential onshoring opportunities for pharmaceuticals but noted it is too early to see significant movement [82]

In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Please refer to Tables 8-1 and 8-2 in OFG's Financial Supplement for a reconciliation of GAAP to non-GAAP measures and calculations for the quarter ended March 31, 2025 at www.ofgbancorp.com. Forward Looking Statements The information included in this ...

Company Performance - OFG Bancorp reported quarterly earnings of $1 per share, missing the Zacks Consensus Estimate of $1.02 per share, and down from $1.05 per share a year ago, representing an earnings surprise of -1.96% [1] - The company posted revenues of $178.59 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.86% and up from $174.16 million year-over-year [2] - Over the last four quarters, OFG has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - OFG shares have declined approximately 14.1% since the beginning of the year, compared to a decline of -10.1% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $178.85 million, and for the current fiscal year, it is $4.18 on revenues of $719.96 million [7] Industry Outlook - The Zacks Industry Rank for Banks - Northeast, to which OFG belongs, is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

Financial Performance - 1Q25 diluted EPS was $1.00, down from $1.09 in 4Q24 and $1.05 in 1Q24[1] - Total core revenues for 1Q25 were $178.3 million, compared to $181.9 million in 4Q24 and $174.2 million in 1Q24[1] - Net income available to common stockholders for Q1 2025 was $45,572, down from $50,347 in Q4 2024, a decline of 15.0%[28] - The efficiency ratio improved to 52.42% in Q1 2025 from 54.82% in Q4 2024[26] Interest Income and Margin - Net interest margin for 1Q25 was 5.42%, with a return on average assets of 1.56% and return on average tangible common equity of 15.28%[3] - Total interest income decreased to $189.2 million in 1Q25 from $190.2 million in 4Q24, impacted by two fewer business days[4] - Net interest income for Q1 2025 was $149,071, a slight decrease from $149,138 in Q4 2024[26] Loans and Credit Losses - Total provision for credit losses was $25.7 million in 1Q25, compared to $30.2 million in 4Q24, reflecting increased loan volume[7] - New loan production for 1Q25 was $558.9 million, down from $609.0 million in 4Q24, with seasonal declines in Puerto Rico lending[12] - Total loans held for investment increased to $7,852,644 thousand in Q1 2025 from $7,791,962 thousand in Q4 2024, representing a growth of 0.78%[37] - The net charge-off rate for Q1 2025 was 1.05%, up from 0.82% in Q4 2024[26] Deposits and Capital - Customer deposits increased by $308.4 million to $9.76 billion in 1Q25, driven by growth in demand, savings, and time deposits[13] - CET1 ratio was 14.3% in 1Q25, reflecting strong capital levels[2] - The company repurchased $23.4 million of common shares and increased the common dividend by 20% during the quarter[2] Asset and Equity Growth - Total assets increased to $11,729,257 thousand as of March 31, 2025, up from $11,500,734 thousand in the previous quarter, representing a growth of 1.99%[29] - Total stockholders' equity increased to $1,295,361,000 in Q1 2025 from $1,254,371,000 in Q4 2024, indicating a growth of approximately 3.4%[42] - Book value per common share increased to $28.83 in Q1 2025 from $27.60 in Q4 2024[26] Nonperforming Loans and Delinquency - Total nonperforming loans decreased to $87,484 thousand in Q1 2025 from $82,983 thousand in Q4 2024, indicating a reduction of 5.69%[37] - The total delinquency rate (30 days and over past due) for all loans was 3.49% in Q4 2024, down from 4.38% in Q3 2024, showing a decline of 20.27%[35] - Early delinquency rates (30 - 89 days past due) for auto loans were 4.96% in Q1 2025, down from 6.67% in Q4 2024, a decrease of 25.66%[35] Charge-Offs - Total net charge-offs for Q1 2025 were $20,370,000, an increase from $15,862,000 in Q4 2024, representing a 28.5% rise[33] - Consumer charge-offs in Q1 2025 reached $8,252,000, slightly up from $8,242,000 in Q4 2024, indicating a marginal increase of 0.1%[33] - Total mortgage charge-offs in Q1 2025 were $23,000, compared to $24,000 in Q4 2024, indicating a decrease of 4.2%[33] Ratios and Capital Calculations - The tangible common equity (TCE) ratio for Q1 2025 was reported at 10.30%, an increase from 10.13% in Q4 2024[41] - Common equity Tier 1 capital ratio is calculated based on Common equity Tier 1 capital divided by risk-weighted assets [16] - Total risk-based capital ratio is calculated based on Total risk-based capital divided by risk-weighted assets [18]

Group 1 - The offer for subscription by Octopus Future Generations VCT plc has closed to new applications after reaching £5 million [1]

Financial Performance - The diluted earnings per share (EPS) for the year ended December 31, 2024, was $4.23, an increase of 10.4% compared to $3.83 in 2023[223]. - Total net income for 2024 was $198.2 million, up from $181.9 million in 2023[223]. - In the fourth quarter of 2024, diluted EPS was $1.09, compared to $0.98 in the fourth quarter of 2023, reflecting an increase of 11.2% year-over-year[224]. - Net income available to common shareholders reached $198,170,000, representing a 9.0% increase from $181,872,000 in 2023[240]. - Basic EPS increased to $4.25, up from $3.85 in 2023, marking a growth of 10.4%[240]. - Total stockholders' equity increased by 5.1% to $1.254 billion, reflecting a net income of $198.2 million[316]. - Market capitalization at the end of 2024 was $1.923 billion, a 9.0% increase from $1.764 billion in 2023[324]. Income and Expenses - Total interest income for the fourth quarter of 2024 was $190.2 million, compared to $176.2 million in the fourth quarter of 2023, marking an increase of 8.5%[225]. - Interest income for 2024 increased to $750,277,000, up 15.6% from $648,880,000 in 2023[240]. - Net interest income after provision for credit losses rose to $506,189,000, compared to $500,232,000 in 2023, reflecting a slight increase of 1.9%[240]. - Non-interest income decreased to $123.2 million in 2024, down by $5.2 million from $128.4 million in 2023, primarily due to a decline in banking service revenues[254]. - Total non-interest expenses increased by 3.4% to $375.7 million in 2024, up from $363.4 million in 2023, largely due to higher compensation and employee benefits[256]. Loans and Credit Quality - Loans held for investment increased to $7.79 billion in the fourth quarter of 2024, up 3.4% from $7.53 billion in the fourth quarter of 2023[233]. - New loan production for the fourth quarter of 2024 was $609.0 million, compared to $663.9 million in the fourth quarter of 2023, reflecting a decrease of 8.2%[234]. - Net charge-offs (NCOs) for the fourth quarter of 2024 were $15.9 million, or 0.82% of average loans, down from $16.3 million (0.88%) in the fourth quarter of 2023[230]. - Provision for credit losses increased by $21.7 million to $82.3 million in 2024, driven by growth in loan balances and specific reserves[258]. - Total Allowance for Credit Losses (ACL) increased to $175.9 million in 2024, up 9.2% from $161.1 million in 2023[304]. - Non-performing assets decreased by 6.4% to $93.6 million (0.81% of total assets) from $100.0 million (0.88%) at December 31, 2023[291]. Deposits and Funding - Customer deposits totaled $9.45 billion in the fourth quarter of 2024, down from $9.60 billion in the fourth quarter of 2023[236]. - Total deposits decreased by $157.5 million or 1.6%, with a notable decrease in demand deposits by $423.0 million[313]. - Total public fund deposits from Puerto Rico government entities decreased from $1.618 billion in 2023 to $1.445 billion in 2024[314]. - Borrowings rose significantly by 99.8% to $401.2 million, driven by new FHLB advances and securities sold under agreements to repurchase[315]. Capital and Ratios - The Common Equity Tier 1 (CET1) ratio was 14.26% as of December 31, 2024, compared to 14.12% in the fourth quarter of 2023[238]. - Total risk-based capital ratio increased to 15.52% in 2024 from 15.37% in 2023, reflecting a 1.0% improvement[321]. - The allowance for credit losses to non-accrual loans improved to 225.53% in 2024 from 202.91% in 2023[310]. - The capital ratios continue to exceed the minimum requirements for being "well-capitalized" under Basel III standards[317]. Shareholder Returns - Cash dividends declared per common share increased to $1.00, up from $0.88 in 2023, reflecting a growth of 13.6%[240]. - Cash dividends declared increased to $46,931 thousand in 2024, up 12.1% from $41,853 thousand in 2023[326]. - The number of outstanding common shares decreased to 45,440,269 in 2024, down 3.5% from 47,065,156 in 2023[320]. Risk Management - Liquidity risk management practices have allowed OFG to effectively manage market volatility, with liquidity supported by federal stimulus programs following natural disasters[353]. - OFG's credit risk management processes are embedded in its risk culture, with a focus on systematic identification and assessment of credit risks[344]. - Concentration risk remains significant, with most of OFG's credit exposure concentrated in Puerto Rico, which may adversely affect profitability during economic downturns or natural disasters[361].

Group 1 - OFG Bancorp is a digital-first bank that has experienced growth in recent years [1] - The company was rated a 'hold' in June of the previous year, indicating a cautious outlook [1] Group 2 - Crude Value Insights provides an investment service focused on the oil and natural gas sector [1] - The service emphasizes cash flow and identifies companies with value and growth potential [1] - Subscribers have access to a stock model account, cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - Octopus Future Generations VCT plc has made 4 new investments since June 30, 2024, including 2 new investments and 2 follow-on investments into existing companies [1] - The total cash and cash equivalents of the Company as of December 31, 2024, is £20,084,000 [2] Investment Details - Drift Energy Ltd received an investment of £87,000, focusing on building a sustainable planet [2] - Nanosyrinx Ltd received an investment of £420,000, aimed at revitalizing healthcare [2] - Little Journey Limited received an investment of £250,000, also focused on revitalizing healthcare [2] - Apheris AI GmbH received an investment of £240,000, with a theme of empowering people [2] Disposals - Since June 30, 2024, the Company has completed 2 disposals [2]