Reported Q: Q3 2024 Rev YoY: +28.0% EPS YoY: +6.3% Move: +0.38%
OFG Bancorp
OFG
$41.99 0.38%
Exchange NYSE Sector Financial Services Industry Banks Regional
Q3 2024
Published: Nov 6, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for OFG

Reported

Report Date

Nov 6, 2024

Quarter Q3 2024

Revenue

204.86M

YoY: +28.0%

EPS

1.00

YoY: +6.3%

Market Move

+0.38%

Previous quarter: Q2 2024

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Earnings Highlights

  • Revenue of $204.86M up 28% year-over-year
  • EPS of $1.00 increased by 6.3% from previous year
  • Gross margin of 69.5%
  • Net income of 47.00M
  • ""It was another solid performance. Earnings per share were 5.3% year-over-year, or up 5.3% year-over-year on a 1.1% increase in total core revenues."" - Jose Rafael Fernandez
OFG
Company OFG

Executive Summary

OFG Bancorp delivered a solid Q3 2024 performance with 1) total core revenues up 1.1% YoY and earnings per share up 5.3% YoY, supported by a 1.1% rise in core revenues and ongoing digital adoption. Reported net income of $47.0 million on revenue of $204.9 million produced a net income margin of 22.9% and EPS of $1.01 (diluted $1.00). 2) Balance sheet momentum continued, with loans held for investment up meaningfully versus the prior year and a diversified funding base. Average core deposits were $9.6 billion, with end-of-period deposits largely stable, while cash at period-end totaled $680.6 million. 3) The company continued to emphasize its Digital First strategy (high digital utilization: 95% routine retail transactions and 97% of retail deposits via digital channels; 30% of retail clients transacting via the Oriental Servicing Portal by end-September) and expanded servicing capabilities via a late-Q3 acquisition of mortgage servicing rights for a $1.7 billion Puerto Rico portfolio, strengthening the servicing book and cross-sell opportunities. 4) Near-term margin headwinds remain as the balance sheet has expanded and the firm adjusts to a lower-rate environment. Management guided Q4 NIM in a narrow range (5.3%–5.4%), reflecting a larger balance sheet and a larger investment portfolio; they also signaled ongoing investment in the investment portfolio to reduce asset sensitivity and prepare for a low-rate cycle. 5) Puerto Rico remains the primary growth engine with a positive macro backdrop, while the US lending pipeline is expected to strengthen as inflation continues to ease. The management team underscored capital allocation as a priority and noted ongoing board discussions on dividends and buybacks.

Key Performance Indicators

Revenue
Increasing
204.86M
QoQ: -7.23% | YoY: 27.95%
Gross Profit
Decreasing
142.34M
69.48% margin
QoQ: -35.34% | YoY: -17.48%
Operating Income
Decreasing
61.78M
QoQ: -13.30% | YoY: -6.24%
Net Income
Increasing
47.00M
QoQ: -8.08% | YoY: 4.74%
EPS
Increasing
1.01
QoQ: -7.34% | YoY: 6.32%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 218.74 1.00 +2.7% View
Q4 2024 210.06 1.08 +29.2% View
Q3 2024 204.86 1.00 +28.0% View
Q2 2024 220.82 1.08 +40.1% View
Q1 2024 213.02 1.05 +0.0% View