OFG Bancorp (NYSE: OFG) today reported results for the second quarter ended June 30, 2019.
Highlights 2Q19 vs. 2Q18
- Net revenues increased 3.3% to $99.2 million from $96.0 million. Increased interest income from Originated Loans and Cash more than offset pay downs of Acquired Loans and lower Investment Securities balances.
- Earnings per diluted share increased 22.9% to $0.43 compared to $0.35. Book value per common share grew 4.2% to $18.76. Tangible Book Value per common share expanded 6.7% to $17.03.
- Loans increased 3.7% to $4.47 billion, while core deposits rose 3.1% to $4.56 billion. New loan origination of $326.6 million included the continued success of our Oriental Bank’s strategic targeting of small business customers. Net Interest Margin increased 14 basis points to 5.37%.
- Credit quality and the efficiency ratio improved. Return on Average Assets increased 25 basis points to 1.48%. Return on Average Tangible Common Equity expanded 112 basis points to 10.32%. Capital metrics continued at new multi-year highs.
CEO Comments
“We are extremely pleased with our second quarter results as OFG continues to deliver on all fronts,” said José Rafael Fernández, President, Chief Executive Officer, and Vice Chairman of the Board.
“Our strategies are proving highly effective in capturing the positive economic shift taking place in Puerto Rico as OFG builds excellent momentum for growth now and into the future. Our levels of small business, auto and consumer loan production; core deposit growth, credit quality, and capital; and number of customers confirm the success of our Vive la Diferencia (Live the Difference) strategy. As a result, we generated a 23% increase in earnings per share on a more than 3% increase in net revenue, with return on assets, net interest margin, and efficiency ratios all at levels similar to top performing peer mainland banks.”
“Looking ahead, Oriental will further consolidate its position as the premier retail bank on the island when the recently announced Scotiabank Puerto Rico and US Virgin Island acquisition is closed as we become the second largest in core deposits, branches, automated and interactive teller machines, and mortgage servicing in Puerto Rico, and the third largest bank in US Virgin Islands. Thanks to our entire team for their commitment and dedication, and to all our retail and commercial customers for their support and loyalty.”
