SAN JUAN, Puerto Rico, July 21, 2017 – OFG Bancorp (NYSE: OFG) today reported results for the second quarter ended June 30, 2017.
- Net income available to shareholders increased. OFG reported $13.6 million, or $0.30 per share fully diluted, compared to $11.7 million, or $0.26 per share fully diluted, in 1Q17 and $10.9 million, or $0.25 per share fully diluted, in the year ago 2Q16.
- Municipality exposure reduced. OFG opportunistically sold a $38.0 million performing term loan with a municipality, reducing OFG’s exposure to this sector by approximately 27%, to $140.8 million.
- Balance sheet de-levered further. OFG unwound a $100.0 million repurchase agreement and sold $166.0 million in related mortgage backed securities, resulting in a $6.9 million gain.
- Net interest margin (NIM) improved. Due to a significant reduction in borrowing costs and higher yields on variable rate loans, NIM increased 8 basis points from 1Q17 to 5.18%.
- Major performance metrics remained solid. Return on average assets was 1.09% and return on average tangible common stockholders’ equity was 8.01%. All major capital ratios advanced.
CEO Comment
José Rafael Fernández, President, CEO, and Vice Chairman of the Board, commented: “We have pro-actively managed the environment, as evident from the resiliency in our results. We continue to be committed to delivering stable results.
“Our retail franchise continued to grow, with increases in loan generation and customer base. We were the first in the market to emphasize superior customer experience through innovation, which seems to be in everyone else’s vocabulary now.
As part of our continuing leadership in bringing innovative customer facing solutions to Puerto Rico, Oriental released a new and re-designed version of our mobile banking app. We also finished deploying deposit taking capabilities in all 47 on premise ATMs. We are highly encouraged with customer adoption levels and feedback.”
About OFG Bancorp
Now in its 53rd 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, through 48 financial centers. Investor information can be found at www.ofgbancorp.com.
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