OFG Bancorp(US:OFG)2025-02-26 23:45Financial 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].