OFG Bancorp (NYSE: OFG), the financial holding company for
Oriental Bank, reported results for the fourth quarter and year
ended Dec. 31, 2021.
Summary
4Q21: EPS diluted was $0.66 compared to $0.81 in 3Q21 and
$0.42 in 4Q20. 4Q21 results were impacted by the strategic decision
to sell $65.5 million of past due loans, which had been partially
reserved, but required $9.7 million in additional provision. Total
core revenues were $141.0 million compared to $134.7 million in
3Q21 and $132.8 million in 4Q20.
2021: EPS diluted was $2.81 compared to $1.32 in 2020.
Total core revenues were $536.6 million compared to $519.3 million.
OFG completed the $92.0 million redemption of its outstanding
preferred stock and its $50.0 million common stock repurchase plan.
Tangible Book Value per share of $19.08 grew 12.4% year over
year.
CEO Comment
José Rafael Fernández, Chief Executive Officer, said: “Our core
business demonstrated strong momentum as we ended 2021 and enter
2022. Results for the fourth quarter and year underscore our
opportunities for the future. We are extremely proud of our
accomplishments in 2021 and look forward to continuing to invest in
improving the customer experience and growing together with our
clients and the communities we serve.”
4Q21 Highlights
Net Interest Income of $104.2 million compared to $102.7
million in 3Q21 and $98.7 million in 4Q20. Compared to 3Q21, 4Q21
NII reflected level interest income from loans and cash, increased
income from investment securities, and lower cost of deposits and
borrowings.
Loans Held for Investment totaled $6.40 billion at
12/31/21 compared to $6.41 billion at 9/30/21 and $6.66 billion at
12/31/20. The 4Q21 net decrease of $8.3 million included a
reduction of $65.5 million from the previously mentioned decision
to sell past due loans.
New Loan Origination totaled $632.7 million compared to
$556.2 million in 3Q21 and $485.3 million in 4Q20. 4Q21 reflected
continued high levels of auto, commercial, and mortgage lending,
and increased demand for consumer loans.
Total Interest Expense was $8.4 million compared to $9.4
million in 3Q21 and $14.3 million in 4Q20. 4Q21 reflected lower
cost of core deposits (26 bps vs. 30 bps in 3Q21 and 53 bps in
4Q20) due to generally lower rates and CD maturities. 4Q21 also
reflected lower borrowings with the early termination of $33.3
million in 2.98% FHLB advances.
Customer Deposits totaled $8.59 billion at 12/31/21
compared to $9.23 billion at 9/30/21 and $8.37 billion at 12/31/20.
The $641.3 million sequential decline from 3Q21 reflected
withdrawals at year-end by government-related and institutional
commercial clients, partially offset by increased retail
deposits.
Provision for Credit Losses of $7.2 million included $9.7
million for the previously mentioned decision to sell past due
loans and $2.7 million in net reserve releases. This compares to a
net benefit of $5.0 million in 3Q21 and a net expense of $14.2
million in 4Q20. 4Q21’s net charge-offs of $32.5 million primarily
related to the decision to sell past due loans. Total
non-performing loan rate fell to 1.75% from 2.08% in 3Q21 and 2.28%
in 4Q20.
Banking and Financial Service Revenues were $36.7 million
compared to $32.0 million in 3Q21 and $34.0 million in 4Q20. 4Q21
reflected higher levels of banking service, mortgage banking
activity, and wealth management, which included $4.3 million in
annual insurance commissions.
Non-Interest Expenses were $86.5 million compared to
$78.9 million in 3Q21 and $89.0 million in 4Q20. 4Q21 included
increased compensation related investment in people, $2.4 million
for a legal reserve and to cover operational losses, $2.0 million
in technology enhancements, $1.0 million lower gains on sales of
real estate owned compared to 3Q21, and costs related to higher
levels of business activity.
Pre-Provision Net Revenues were $55.8 million compared to
$56.3 million in 3Q21 and $44.1 million in 4Q20.
Capital: CET1 ratio was 13.77% compared to 13.52% in 3Q21
and 13.08% in 4Q20.
Conference Call, Financial Supplement &
Presentation
A conference call to discuss 4Q21 results, outlook and related
matters will be held today at 10:00 AM ET. Phone (800) 459-5346 or
(203) 518-9544. Conference ID: OFGQ421. The call can also be
accessed live on www.ofgbancorp.com with webcast replay shortly
thereafter.
OFG’s Financial Supplement, with full financial tables for the
quarter and year ended December 31, 2021, and the 4Q21 Conference
Call Presentation, can be found on the Quarterly Results page on
OFG’s Investor Relations website at www.ofgbancorp.com.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance
with GAAP, management uses certain “non-GAAP financial measures”
within the meaning of SEC Regulation G, to clarify and enhance
understanding of past performance and prospects for the future.
Please refer to Tables 8-1 and 8-2 in OFG’s above-mentioned
Financial Supplement for a reconciliation of GAAP to non-GAAP
measures and calculations.
Forward Looking Statements
The information included in this document contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management’s current expectations and involve certain
risks and uncertainties that may cause actual results to differ
materially from those expressed in the forward-looking
statements.
Factors that might cause such a difference include but are not
limited to (i) general business and economic conditions, including
changes in interest rates; (ii) cybersecurity breaches; (iii)
hurricanes, earthquakes, and other natural disasters in Puerto
Rico; (iv) competition in the financial services industry; and (v)
the severity, magnitude and duration of the COVID-19 pandemic, and
its impact on our operations, personnel, and customers.
For a discussion of such factors and certain risks and
uncertainties to which OFG is subject, please refer to OFG’s annual
report on Form 10-K for the year ended December 31, 2020, as well
as its other filings with the U.S. Securities and Exchange
Commission. Other than to the extent required by applicable law,
including the requirements of applicable securities laws, OFG
assumes no obligation to update any forward-looking statements to
reflect occurrences or unanticipated events or circumstances after
the date of such statements.
About OFG Bancorp
Now in its 58th year in business, OFG Bancorp is a diversified
financial holding company that operates under U.S., Puerto Rico and
U.S. Virgin Islands 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 and U.S. Virgin
Islands. Visit us at www.ofgbancorp.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220118005959/en/
Puerto Rico & USVI: Idalis Montalvo
(idalis.montalvo@orientalbank.com) at (787) 777-2847 US:
Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder
(sanreder@ofgbancorp.com) at (212) 532-3232
OFG Bancorp (NYSE:OFG)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
OFG Bancorp (NYSE:OFG)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024