OFG Bancorp(US:OFG)2022-02-25 20:32Financial Performance - OFG's diluted EPS for the fourth quarter of 2021 was $0.66, down from $0.81 in the third quarter of 2021 and up from $0.42 in the fourth quarter of 2020[230]. - Net income for 2021 was $146,151,000, representing a significant increase of 96.5% compared to $74,327,000 in 2020[244]. - Comprehensive income for 2021 was $140.289 million, up from $86.357 million in 2020, indicating a growth of 62.4%[405]. - Earnings per common share increased to $2.85 in 2021, up from $1.32 in 2020, representing a growth of 116.7%[403]. - Cash dividends declared per common share increased to $0.40 in 2021 from $0.28 in 2020, marking a 42.9% increase[244]. Revenue and Income - Total core revenues for the year ended December 31, 2021, were $536.6 million, compared to $519.3 million in 2020[241]. - Interest income for 2021 was $449,199,000, a decrease of 5.1% from $473,347,000 in 2020[244]. - Net interest income after provision for loan and lease losses increased to $407,149,000 in 2021 from $315,760,000 in 2020, reflecting a growth of 29%[244]. - Non-interest income rose to $133,210,000 in 2021, up 7.5% from $124,352,000 in 2020[244]. - Total non-interest income increased by 7.1%, reaching $133.2 million in 2021 compared to $124.4 million in 2020[259]. Assets and Liabilities - Total assets increased to $9,899,720,000 as of December 31, 2021, compared to $9,826,011,000 in 2020, reflecting a growth of approximately 0.74%[397]. - Total liabilities were $8.831 billion, a 1.0% increase from $8.740 billion in 2020[317]. - Customer deposits totaled $8.59 billion at December 31, 2021, a decrease of $641.3 million from the previous quarter[235]. - Total deposits increased to $8,603,118,000 in 2021, up from $8,415,640,000 in 2020, indicating an increase of about 2.23%[399]. Credit Quality - The provision for credit losses in the fourth quarter of 2021 was $7.2 million, which included $9.7 million related to the sale of past due loans[236]. - The non-performing loan rate decreased to 1.75% from 2.08% in the third quarter of 2021[236]. - Non-performing assets decreased by 22.1% to $129.0 million, representing 1.30% of total assets, compared to $165.6 million or 1.69% of total assets at December 31, 2020[295]. - The allowance for credit losses for loans was $156 million as of December 31, 2021, reflecting the company's assessment of credit risk[383]. - Total net credit losses decreased by 47.7% to $49,755,000 in 2021 from $95,167,000 in 2020[311]. Capital and Equity - Total stockholders' equity decreased slightly to $1,069,160,000 in 2021 from $1,085,975,000 in 2020[246]. - Common equity tier 1 capital ratio improved to 13.77%, up from 13.08% in 2020, reflecting an increase in retained earnings[325]. - Book value per common share increased to $21.54 in 2021, up from $19.54 in 2020, reflecting an increase of 10.2%[246]. - Market capitalization at the end of 2021 was $1.318 billion, a 38.4% increase from $952.716 million in 2020[325]. - The tangible common equity to tangible total assets ratio increased from 9.00% to 9.69% from 2020 to 2021[320]. Operational Efficiency - Total non-interest expenses decreased by 5.7% to $325.8 million in 2021 from $345.3 million in 2020[260]. - The efficiency ratio improved to 60.70% in 2021 from 66.49% in 2020, indicating better cost management[260]. - Average loans per average employee increased to $2,904 in 2021 from $2,831 in 2020, reflecting enhanced productivity[260]. - The average compensation per employee rose to $59.28 in 2021 from $55.76 in 2020, reflecting adjustments in employee remuneration[260]. Risk Management - OFG's credit risk management includes a comprehensive credit policy and proactive collection practices to mitigate potential losses[346]. - The company has established a Business Continuity Plan to manage operational disruptions, particularly those arising from the Covid-19 pandemic[363]. - OFG's liquidity risk management practices have been effective, allowing the company to navigate market stress from the Covid-19 pandemic[357]. - The Chief Risk and Compliance Officer oversees regulatory compliance and the implementation of a company-wide compliance program, including anti-money laundering measures[364]. - The company has faced increasing regulatory scrutiny, necessitating enhancements to its compliance procedures[364].