Company Overview - OFG Bancorp (OFG) currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for investors [4] - The stock has a Forward P/E ratio of 10.32, which is lower than the industry average of 11.05, suggesting it may be undervalued [4] - Over the past year, OFG's Forward P/E has fluctuated between a high of 11.82 and a low of 8.71, with a median of 9.84 [4] Financial Metrics - OFG has a P/CF ratio of 9.04, significantly lower than the industry's average P/CF of 24.79, indicating a favorable valuation based on cash flow [5] - The P/CF ratio for OFG has ranged from a high of 10.28 to a low of 7.60 over the past 52 weeks, with a median of 8.78 [5] - These metrics contribute to OFG's strong Value grade, suggesting that the stock is likely undervalued at present [6] Investment Outlook - Considering the strength of OFG's earnings outlook, it is positioned as an impressive value stock currently [6]

Group 1 - OFG Bancorp's earnings are expected to remain flat this year due to various factors affecting performance [1] - Anticipated loan growth and normalization of provisioning expenses are expected to positively impact earnings [1] - A decline in net interest margin and growth in operating expenses are projected to restrain earnings [1]

Financial Data and Key Metrics Changes - Earnings per share increased by 11.2% year-over-year, driven by a 3.6% rise in total core revenues [5]. Business Line Data and Key Metrics Changes - The company demonstrated consistent operational growth aligned with its Digital First strategy, contributing to an increase in banking market share [5]. Market Data and Key Metrics Changes - Digital adoption of new and upgraded products, services, and self-service tools continued to grow steadily, indicating a positive trend in customer engagement and market penetration [5]. Company Strategy and Development Direction - The company is focused on enhancing its Digital First strategy, which is integral to its operational growth and market share expansion [5]. Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the performance in the fourth quarter and throughout 2024, highlighting the successful execution of strategic plans [4]. Other Important Information - The call included a disclaimer regarding forward-looking statements, emphasizing the inherent risks and uncertainties associated with management's goals and expectations [2]. Q&A Session Summary - No specific questions or answers from the Q&A session were provided in the available content.

Forward Looking Statements Quarterly Results 4Q24 Conference Call January 22, 2025 The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. Factors that might cause such a difference include b ...

OFG Bancorp (OFG) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.37%. A quarter ago, it was expected that this financial holding company would post earnings of $1.07 per share when it actually produced earnings of $1, delivering a surprise of -6.54%.Over the last four quarters, th ...

Financial Performance - 4Q24 diluted EPS was $1.09, up 11.2% year-over-year, with total core revenues of $181.9 million, a 3.6% increase from 4Q23[1][3] - Full year 2024 diluted EPS reached $4.23, reflecting a 10.4% increase from 2023, with total core revenues of $709.6 million, up 3.9% year-over-year[2][3] - Net income available to common stockholders for Q4 2024 was $50,347 thousand, compared to $46,597 thousand in Q4 2023, reflecting an increase of 8.5%[28] - The net income for the year ended December 31, 2024, was $150,334 thousand, compared to $132,954 thousand for the previous year, reflecting an increase of 13.06%[42] Revenue and Income - Total interest income for 4Q24 was $190.2 million, a slight increase from $189.0 million in 3Q24 and a significant rise from $176.2 million in 4Q23[5] - Net interest income for Q4 2024 was $149,138 thousand, an increase from $143,542 thousand in Q4 2023, representing a growth of 3.7% year-over-year[28] - For the year ended December 31, 2024, total interest income reached $750.277 million, a 15.6% increase from $648.880 million in 2023[36] - The net interest income for the year ended December 31, 2024, was $588.440 million, compared to $560.870 million in 2023, reflecting a growth of 4.9%[36] Expenses and Provisions - Total non-interest expense for 4Q24 was $99.7 million, an increase from $91.6 million in 3Q24 and $94.1 million in 4Q23[10] - Total provision for credit losses in 4Q24 was $30.2 million, compared to $21.4 million in 3Q24 and $19.7 million in 4Q23, primarily due to increased loan volume[8] - The provision for credit losses for YTD 2024 was $82,251 thousand, significantly higher than $60,638 thousand in YTD 2023, marking a 35.5% increase[31] Asset and Loan Growth - Loans held for investment at the end of 4Q24 were $7.79 billion, a 0.5% increase from 3Q24 and a 3.4% increase year-over-year[12] - New loan production in 4Q24 was $609.0 million, up from $572.2 million in 3Q24 but down from $663.9 million in 4Q23[13] - Total assets as of Q4 2024 were $11,523,140 thousand, an increase from $10,588,584 thousand in Q4 2023, reflecting a growth of 8.8%[28] - Total loans held for investment reached $7,616,099 thousand, a slight increase from $7,373,273 thousand year-over-year, reflecting a growth of 3.30%[40] Capital Ratios and Equity - CET1 ratio was 14.26% in 4Q24, slightly down from 14.37% in 3Q24 but up from 14.12% in 4Q23[16] - The tangible common equity (TCE) ratio for Q4 2024 was 10.13%, a decrease from 10.72% in Q3 2024[56] - Common equity Tier 1 capital stood at $1,256,906 thousand, slightly down from $1,260,944 thousand in the previous quarter[57] - The total stockholders' equity decreased to $1,254,371 thousand from $1,193,480 thousand, a decline of 5.10%[39] Delinquency and Credit Quality - Total early delinquency for Q4 2024 reached $202,550 thousand, an increase of 7.4% from Q3 2024's $187,758 thousand[48] - The early delinquency rate for total loans in Q4 2024 was 2.95%, up from 2.78% in Q3 2024[48] - Total nonperforming loans amounted to $82,983 thousand in Q4 2024, a slight increase from $79,588 thousand in Q3 2024[50] - The nonperforming loan rate for total loans was 1.06% in Q4 2024, compared to 1.03% in Q3 2024[50] Shareholder Returns - Cash dividends per common share for YTD 2024 were $1.00, up from $0.88 in YTD 2023, representing a 13.6% increase[31] - Share buybacks totaled $45.9 million in 4Q24, with $29.7 million remaining in repurchase authorization as of December 31, 2024[15] Regulatory and Accounting Notes - The Board of Governors of the Federal Reserve System issued an interim final rule to delay the effects of CECL on regulatory capital for two years[20] - 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]

Earnings Performance - Earnings per share diluted of $1.00, up 5.3% year-over-year, with total core revenues of $174.1 million, a 1.1% increase from the previous year[261] - Net income available to common shareholders for Q3 2024 was $47,000 thousand, representing a 4.7% increase from $44,873 thousand in Q3 2023[276] - Basic EPS for Q3 2024 was $1.01, up 6.3% from $0.95 in the same quarter last year[276] Interest Income and Expenses - Total interest income of $189.0 million, an increase from $165.7 million in Q3 2023, reflecting higher principal balances and yields of investment securities[263] - Total interest expense for Q3 2024 was $41.2 million, significantly higher than $23.9 million in Q3 2023, indicating a 72.0% increase[264] - Interest income for Q3 2024 increased to $189,030 thousand, up 14.1% from $165,708 thousand in Q3 2023[276] Credit Losses and Charge-offs - Total provision for credit losses of $21.4 million, compared to $16.4 million in Q3 2023, primarily due to increased loan volume and updates to risk drivers[267] - Net charge-offs of $17.1 million, representing 0.90% of average loans, with total delinquency rates at 4.10% and a nonperforming loan rate of 1.11%[268] - Provision for credit losses increased by $4.9 million to $21.4 million, driven by growth in loan balances and updates to risk factors[312] Loan and Deposit Growth - Loans held for investment increased to $7.75 billion, a 6.7% increase from Q3 2023, driven by growth in Puerto Rico and U.S. commercial loans[271] - Customer deposits totaled $9.53 billion, reflecting a decrease from $9.60 billion in Q2 2024, with increases in savings and time deposits[273] - New loan production of $572.2 million, slightly down from $589.0 million in Q2 2024, with increases in U.S. commercial and Puerto Rico consumer lending[272] Capital and Equity - CET1 ratio improved to 14.37%, up from 14.06% in Q3 2023, indicating a stronger capital position[275] - Total stockholders' equity increased by 10.4% to $1,318,132 thousand from $1,193,480 thousand at the end of 2023[278] - Book value per common share rose to $28.31, an 11.6% increase from $25.36 at the end of 2023[278] Non-Interest Income - Non-interest income decreased by 12.5% to $26,868 thousand from $30,699 thousand in the prior year quarter[276] - The company experienced a $3.1 million drop in mortgage banking activities and a $1.7 million decrease in banking service revenues[299] - Wealth management revenue increased by 9.9% to $8.4 million, up from $7.7 million in the prior year[297] Asset Management - Total assets managed decreased by 8.2% to $4,554,024 thousand from $4,958,161 thousand in the previous period[278] - Total assets as of September 30, 2024, amounted to $11.461 billion, compared to $10.257 billion as of September 30, 2023[318] - The average balance of interest-earning assets increased to $10,778.9 million in September 2024 from $9,539.4 million in September 2023[1] Market and Economic Indicators - The Puerto Rico Economic Activity Index registered 126.9 points in August 2024, a decrease of 0.8% compared to the previous year, while total non-farm payroll employment increased by 1.9% year-over-year[257] - The effective tax rate for the quarter ended September 30, 2024, was 26.8%, down from 31.9% in the same quarter of 2023[327] Stock Repurchase Program - The company announced a new $50.0 million stock repurchase program in October 2024, in addition to a previously approved program[255] - During the nine-month period ended September 30, 2024, OFG repurchased 671,800 shares for a total of $24.4 million at an average price of $36.30 per share[396]

Group 1 - OFG Bancorp's earnings are expected to grow strongly due to decent loan growth [1] - The net interest margin is likely to dip slightly, which may restrict earnings growth [1] - Overall earnings growth is anticipated to be 9%, reaching $4.19 per share [1]

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OFG Bancorp (OFG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Individ ...