Financial Performance - The diluted earnings per share (EPS) for the year ended December 31, 2024, was 4.23,anincreaseof10.43.83 in 2023[223]. - Total net income for 2024 was 198.2million,upfrom181.9 million in 2023[223]. - In the fourth quarter of 2024, diluted EPS was 1.09,comparedto0.98 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,representinga9.0181,872,000 in 2023[240]. - Basic EPS increased to 4.25,upfrom3.85 in 2023, marking a growth of 10.4%[240]. - Total stockholders' equity increased by 5.1% to 1.254billion,reflectinganetincomeof198.2 million[316]. - Market capitalization at the end of 2024 was 1.923billion,a9.01.764 billion in 2023[324]. Income and Expenses - Total interest income for the fourth quarter of 2024 was 190.2million,comparedto176.2 million in the fourth quarter of 2023, marking an increase of 8.5%[225]. - Interest income for 2024 increased to 750,277,000,up15.6648,880,000 in 2023[240]. - Net interest income after provision for credit losses rose to 506,189,000,comparedto500,232,000 in 2023, reflecting a slight increase of 1.9%[240]. - Non-interest income decreased to 123.2millionin2024,downby5.2 million from 128.4millionin2023,primarilyduetoadeclineinbankingservicerevenues[254].−Totalnon−interestexpensesincreasedby3.4375.7 million in 2024, up from 363.4millionin2023,largelyduetohighercompensationandemployeebenefits[256].LoansandCreditQuality−Loansheldforinvestmentincreasedto7.79 billion in the fourth quarter of 2024, up 3.4% from 7.53billioninthefourthquarterof2023[233].−Newloanproductionforthefourthquarterof2024was609.0 million, compared to 663.9millioninthefourthquarterof2023,reflectingadecreaseof8.215.9 million, or 0.82% of average loans, down from 16.3million(0.8821.7 million to 82.3millionin2024,drivenbygrowthinloanbalancesandspecificreserves[258].−TotalAllowanceforCreditLosses(ACL)increasedto175.9 million in 2024, up 9.2% from 161.1millionin2023[304].−Non−performingassetsdecreasedby6.493.6 million (0.81% of total assets) from 100.0million(0.889.45 billion in the fourth quarter of 2024, down from 9.60billioninthefourthquarterof2023[236].−Totaldepositsdecreasedby157.5 million or 1.6%, with a notable decrease in demand deposits by 423.0million[313].−TotalpublicfunddepositsfromPuertoRicogovernmententitiesdecreasedfrom1.618 billion in 2023 to 1.445billionin2024[314].−Borrowingsrosesignificantlyby99.8401.2 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,upfrom0.88 in 2023, reflecting a growth of 13.6%[240]. - Cash dividends declared increased to 46,931thousandin2024,up12.141,853 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].
OFG Bancorp(OFG)2025-02-26 23:45