OFG Bancorp (OFG) Bundle
A Brief History of OFG Bancorp
Company Overview
OFG Bancorp, a financial holding company, provides a wide range of banking and financial services to individuals and businesses primarily in Puerto Rico and the mainland United States. As of September 30, 2024, OFG reported total assets of $11.461 billion, reflecting an increase of $116.9 million compared to $11.344 billion at December 31, 2023.
Financial Performance
For the quarter ended September 30, 2024, OFG recorded:
- Interest Income: $189.03 million, an increase of 14.1% year-over-year.
- Interest Expense: $41.16 million, a rise of 72.0% compared to the same period in 2023.
- Net Interest Income: $147.88 million, up 4.3% year-over-year.
- Provision for Credit Losses: $21.36 million, representing a 30.0% increase from the previous year.
- Net Income: $61.78 million.
Loan Portfolio Composition
As of September 30, 2024, OFG's loan portfolio comprised:
| Loan Type | Amount (in millions) | Percentage of Total Loans |
|---|---|---|
| Commercial Loans | 2,393.89 | 31.3% |
| Residential Mortgage Loans | 1,446.86 | 18.9% |
| Consumer Loans | 681.39 | 8.6% |
| Auto Loans | 2,453.47 | 32.1% |
Credit Quality Metrics
OFG's credit quality metrics as of September 30, 2024, included:
- Net Charge-Offs: $17.1 million, representing 0.90% of average loans.
- Non-Performing Loans: $79.59 million, down 6.6% from the prior year.
- Delinquency Rate: 4.10%.
Deposits and Borrowings
As of September 30, 2024, OFG's total deposits were $9.53 billion, a decrease of 1.6% from the previous quarter. Borrowings increased by 34.9% to $270.83 million.
Stockholder's Equity and Capital Ratios
OFG's stockholder's equity stood at $1.318 billion, marking a 10.4% increase from the previous year. Key capital ratios included:
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 14.37% | 14.12% |
| Total Risk-Based Capital Ratio | 15.63% | 15.37% |
| Leverage Capital Ratio | 11.12% | 11.03% |
Recent Developments
In January 2024, OFG announced a $50 million stock repurchase program. As of September 30, 2024, the company had executed a total of $24.4 million in stock buybacks.
A Who Owns OFG Bancorp (OFG)
Major Shareholders
As of 2024, OFG Bancorp has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 9.5% |
| Institutional Investor | BlackRock, Inc. | 8.1% |
| Mutual Fund | Invesco Ltd. | 5.4% |
| Institutional Investor | State Street Corporation | 4.7% |
| Individual Investor | Top executives and board members | 3.2% |
| Other | Public Float | 69.1% |
Stock Performance and Market Capitalization
OFG Bancorp's stock is traded on the New York Stock Exchange under the ticker symbol "OFG." As of September 30, 2024, the market capitalization of OFG Bancorp was approximately $2.091 billion, with a share price of $44.92. The following table provides a snapshot of the stock's performance:
| Date | High Price | Low Price | Closing Price | Market Capitalization |
|---|---|---|---|---|
| September 30, 2024 | $46.84 | $36.77 | $44.92 | $2.091 billion |
| June 30, 2024 | $38.16 | $33.37 | $37.48 | $1.764 billion |
| March 31, 2024 | $38.51 | $34.78 | $37.00 | N/A |
Insider Ownership
Insider ownership is a critical factor in understanding the governance of OFG Bancorp. As of September 30, 2024, insiders owned approximately 3.2% of the company's total shares, indicating a significant alignment of interests between management and shareholders.
Institutional Ownership Trends
Institutional ownership has been on an upward trend, reflecting growing confidence among institutional investors. As of September 30, 2024, institutional investors collectively owned approximately 31.5% of the company. The following table summarizes the changes in institutional ownership over the past year:
| Period | Institutional Ownership Percentage |
|---|---|
| Q3 2024 | 31.5% |
| Q3 2023 | 28.8% |
| Q3 2022 | 27.0% |
Ownership by Geography
The ownership of OFG Bancorp is also influenced by geographical factors, with a significant portion of shares held by investors based in Puerto Rico and the mainland United States. The following table illustrates the geographic distribution of ownership:
| Geography | Ownership Percentage |
|---|---|
| Puerto Rico | 40% |
| Mainland United States | 50% |
| International | 10% |
Recent Shareholder Changes
Recent developments have seen an increase in retail investor participation, with retail ownership rising to approximately 69.1% of total shares outstanding. This trend reflects a broader movement towards democratization of investment opportunities. The following table outlines the changes in shareholder composition:
| Shareholder Type | Percentage Change |
|---|---|
| Institutional Investors | +2.7% |
| Retail Investors | +5.1% |
| Insiders | -0.3% |
OFG Bancorp (OFG) Mission Statement
Mission Statement Overview
OFG Bancorp's mission is centered around providing comprehensive financial services that enhance the lives of their customers, employees, and communities. The company emphasizes a commitment to progress and innovation in banking, aiming to deliver exceptional service and value to all stakeholders.
Key Elements of the Mission Statement
- Customer Commitment: Focused on delivering personalized banking solutions.
- Employee Engagement: Creating a supportive and empowering work environment.
- Community Focus: Investing in community development and social responsibility initiatives.
Financial Performance Indicators
As of September 30, 2024, OFG Bancorp has demonstrated robust financial performance, which supports its mission of sustainable growth and community support. Below are key financial metrics relevant to the company's operations:
| Metric | Value |
|---|---|
| Total Assets | $11.461 billion |
| Total Stockholders' Equity | $1.318 billion |
| Earnings per Share (EPS) | $1.00 |
| Return on Average Assets (ROAA) | 1.66% |
| Return on Average Equity (ROAE) | 15.94% |
| Net Interest Margin | 5.43% |
| Market Capitalization | $2.091 billion |
Strategic Goals Aligned with Mission
OFG Bancorp's strategic goals are closely aligned with its mission statement, focusing on innovation, customer satisfaction, and community development.
- Innovation: Enhancing digital banking services and adopting new technologies.
- Customer Satisfaction: Improving customer service metrics and feedback loops.
- Community Development: Increasing investments in local initiatives and partnerships.
Recent Strategic Initiatives
In 2024, OFG Bancorp has launched several initiatives to further its mission:
- Acquisition of a $1.7 billion Puerto Rico residential mortgage servicing portfolio.
- Implementation of new self-service tools to enhance customer experience.
- Expansion of community outreach programs focused on financial literacy.
Conclusion of Financial Highlights
The financial data reflects OFG Bancorp's commitment to its mission through consistent growth and community engagement. The bank's focus on innovation and customer service positions it well for future challenges and opportunities.
How OFG Bancorp (OFG) Works
Corporate Structure and Operations
OFG Bancorp operates primarily through its subsidiary, Oriental Bank, which provides various banking and financial services in Puerto Rico and the United States. As of September 30, 2024, OFG's total assets reached approximately $11.461 billion, an increase from $11.344 billion at December 31, 2023.
Financial Performance
In the third quarter of 2024, OFG reported diluted earnings per share (EPS) of $1.00, a 5.3% increase year-over-year. Total core revenues were $174.1 million, showing slight growth from $172.2 million in the same quarter of 2023.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Earnings per Share (Diluted) | $1.00 | $1.08 | $0.95 |
| Total Core Revenues | $174.1 million | $179.4 million | $172.2 million |
| Total Interest Income | $189.0 million | $187.7 million | $165.7 million |
| Total Interest Expense | $41.2 million | $40.3 million | $23.9 million |
| Net Interest Margin | 5.43% | N/A | N/A |
| Return on Average Assets | 1.66% | N/A | N/A |
| Return on Average Tangible Common Stockholders’ Equity | 15.94% | N/A | N/A |
| Efficiency Ratio | 52.60% | N/A | N/A |
Loan Portfolio Composition
As of September 30, 2024, OFG's loan portfolio exhibited significant diversification, with the following breakdown:
- Auto loans: $2.484 billion (32.1% of gross loan portfolio)
- Consumer loans: $664.3 million (8.6% of gross loan portfolio)
- Residential mortgage loans: Focused on fixed-rate, fully amortizing loans
- Commercial loans: Significant portion secured by real estate
Deposits and Funding
At September 30, 2024, OFG reported total deposits of approximately $9.6 billion, with uninsured deposits constituting 52% of total deposits. The weighted average interest rate for deposits was 1.51%.
| Deposit Type | Amount (as of Sept 30, 2024) |
|---|---|
| Total Deposits | $9.6 billion |
| Uninsured Deposits | $5.005 billion |
| Weighted Average Interest Rate | 1.51% |
Capital Structure
OFG maintains a strong capital position, with total stockholders' equity of $1.318 billion as of September 30, 2024, reflecting a 10.4% increase from $1.193 billion at December 31, 2023. The capital ratios are as follows:
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 14.37% | 14.12% |
| Tier 1 Risk-Based Capital Ratio | 14.37% | 14.12% |
| Total Risk-Based Capital Ratio | 15.63% | 15.37% |
| Leverage Ratio | 11.12% | 11.03% |
Market Performance
OFG's common stock is traded on the New York Stock Exchange under the symbol "OFG". Its market capitalization was approximately $2.091 billion, with a share price of $44.92 as of September 30, 2024.
| Quarter | High Price | Low Price | Dividend per Share |
|---|---|---|---|
| Q3 2024 | $46.84 | $36.77 | $0.25 |
| Q2 2024 | $38.16 | $33.37 | $0.25 |
| Q1 2024 | $38.51 | $34.78 | $0.25 |
Credit Losses and Non-Performing Assets
OFG's allowance for credit losses (ACL) reflects a proactive approach to managing credit risk. As of September 30, 2024, the allowance coverage ratio to non-performing loans was 202.9%. Non-performing loans include:
- Commercial loans: $40.0 million
- Mortgage loans: $19.0 million
- Consumer loans: $3.6 million
Stock Repurchase Program
In January 2024, OFG announced a stock repurchase program totaling $50 million. By September 30, 2024, OFG repurchased 671,800 shares for a total of $24.4 million.
How OFG Bancorp (OFG) Makes Money
Revenue Sources
OFG Bancorp generates revenue through multiple segments, primarily banking services, wealth management, and mortgage banking activities.
Banking Services
For the third quarter of 2024, total interest income reached $189.0 million, an increase from $165.7 million in the same quarter of 2023. This growth was driven by higher loan balances and yields from investment securities.
Total interest expense for the same period was $41.2 million, up from $23.9 million year-over-year. The net interest margin was recorded at 5.43%.
Non-Interest Income
OFG’s non-interest income for the third quarter of 2024 totaled $26.3 million, compared to $30.4 million in the prior year. This decrease was attributed to reduced interchange fees resulting from the Durbin Amendment and a decline in mortgage servicing rights valuation.
Wealth Management
The wealth management segment reported net income before taxes of $3.5 million for the third quarter of 2024, slightly up from $3.4 million in the previous quarter.
Wealth management revenue includes commissions and fees from fiduciary activities, securities brokerage, and insurance activities.
Loan Portfolio Composition
As of September 30, 2024, OFG’s net loan portfolio was valued at approximately $7.7 billion, with the following breakdown:
| Loan Type | Amount (in billions) | Percentage of Total Portfolio |
|---|---|---|
| Auto Loans | $2.484 | 32.1% |
| Commercial Loans | $2.134 | 27.7% |
| Residential Mortgages | $1.492 | 19.4% |
| Consumer Loans | $0.664 | 8.6% |
| Other Loans | $0.896 | 11.6% |
Expenses and Provisions
In the third quarter of 2024, total provision for credit losses amounted to $21.4 million, compared to $16.4 million in Q3 2023. This increase reflects growth in loan balances and adjustments for risk drivers.
Non-interest expenses for the quarter were $90.2 million, with increases in compensation, employee benefits, and advertising, partially offset by decreases in compliance-related expenses.
Market Capitalization and Stock Performance
As of September 30, 2024, OFG Bancorp's market capitalization was approximately $2.091 billion, with a stock price of $44.92 per share. The company has a tangible book value per share of $26.15.
During the nine-month period ended September 30, 2024, OFG repurchased 671,800 shares for a total of $24.4 million as part of its stock repurchase program.
Regulatory Capital Ratios
As of September 30, 2024, OFG's capital ratios were as follows:
| Capital Measure | Ratio |
|---|---|
| Common Equity Tier 1 Capital | 14.37% |
| Tier 1 Capital | 14.37% |
| Total Risk-Based Capital | 15.63% |
Overall Financial Performance
OFG Bancorp reported earnings per share of $1.00 for the third quarter of 2024, compared to $0.95 for the same period in 2023. The return on average assets was 1.66%, and the efficiency ratio stood at 52.60%.
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Resources:
- OFG Bancorp (OFG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OFG Bancorp (OFG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OFG Bancorp (OFG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.