OFG Bancorp (NYSE: OFG) today reported results for the third quarter ended September 30, 2019.
Highlights 3Q19 vs. 3Q18
- Net income available to shareholders of $5.8 million, or $0.11 per share fully diluted, reflects the impact of several strategic transactions, compared to $19.6 million, or $0.42 per share fully diluted, in 3Q18. Book value per common share grew 3.1% to $18.84. Tangible Book Value per common share expanded 5.4% to $17.11.
- 3Q19 included $40.5 million pre-tax from items that negatively affected results, primarily due to the decision to sell mostly non-performing loans, partially offset by $13.0 million pre-tax from items that benefited results, such as the sale of available-for-sale mortgage-backed securities (MBS). Excluding these items, 3Q19 adjusted net income available to shareholders was $24.9 million, or $0.48 per share fully diluted.
- Loans at September 30, 2019 increased 1.2% to $4.41 billion. Average core deposits rose 3.4% to $4.56 billion. New loan origination of $291.4 million reflected Oriental Bank’s success in targeting small business customers and our growing consumer banking business. Net Interest Margin remained strong at 5.35%, total delinquency rate improved, and capital metrics continued to climb to new multi-year highs.
“Our core operations continue to deliver excellent results,” 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. Small business, auto and consumer loan production; core deposit growth, credit quality, and capital; and number of net new clients confirm the success of our customer focused approach to banking – Fácil, Rápido, Hecho. As a result, we generated a 14% year over year increase in adjusted earnings per share.
“During the quarter, we also took advantage of market conditions and sold MBS and fully charged off loans at a profit, and decided to sell a good portion of our remaining non-performing loans. This reduced non-performing loans 40% year over year, which will enable us to free up resources, reduce related expenses, and increase operating flexibility. We now have close to $1 billion in cash to fund our growth plans, including our $560 million acquisition of Scotiabank’s PR and USVI operations.
“Once the acquisition closes, Oriental will further consolidate its position as the premier retail bank on the island with the second largest market shares in core deposits, branches, automated and interactive teller machines, mortgage servicing, and insurance brokerage. As always, thanks to our team for their commitment, and to our retail and commercial customers for their loyalty.”