SAN JUAN, Puerto Rico, April 20, 2018 – OFG Bancorp (NYSE: OFG) today reported results for the first quarter ended March 31, 2018, reflecting continued strong recovery following hurricanes Irma and Maria, which struck the island in September 2017.
1Q18 Summary
Net income available to shareholders was $13.5 million, or $0.29 per fully diluted share. This was in line with 4Q17’s $13.6 million, or $0.30 per share, and exceeded the year ago quarter’s $11.7 million, or $0.26 per share.
CEO Comment
José Rafael Fernández, Chief Executive Officer, and Vice Chairman of the Board, commented: “Our first quarter results reflect the success of our strategies and Puerto Rico’s emerging recovery.
“For the second quarter in a row, originated loan growth outpaced the pay down of acquired loans, resulting in a net increase of $77.1 million from December 31, 2017—close to 8% on an annualized basis. Auto, consumer and mortgage lending at $192.3 million increased 52% from 4Q17 and more than 11% from 1Q17, with auto lending at a record level. Commercial loan production in Puerto Rico rose more than 13% year over year. With nearly all of our loan moratoriums expiring, 1Q18 credit quality remained stable.
“Fee revenues rebounded with a 24% sequential increase in Banking Services and a 43% increase in Mortgage Banking. Customer deposits (excluding brokered) increased 2% from the end of 2017 and 5% from a year ago. Net Interest Margin expanded to 5.22%, and net new customer accounts grew at an annualized rate of 8%, significantly exceeding 2017’s hurricanes affected 2% rise.
“Our effort to differentiate Oriental through superior service and digital banking technology is proving effective. Our team of dedicated bankers continually reaching out to customers and clients is clearly working. And during 1Q18, we introduced another new service—My Payments (Mis Pagos), which enables loan-only customers to pay online instead of standing in line. While we remain cautious due to the uncertain economic environment, we are confident positive momentum will prevail for both OFG and Puerto Rico.”
About OFG Bancorp
Now in its 54th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S. and Puerto Rico banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services and technology, primarily in Puerto Rico. Investor information can be found at www.ofgbancorp.com.
