OFG Bancorp closes 2024 with record growth, strategic gains

The bank remains committed to driving growth through digital transformation and strategic investments.
OFG Bancorp, the financial holding company for Oriental Bank, capped off its 60th anniversary with solid financial performance in 2024, despite challenging market conditions. The bank reported a 10.4% year-over-year increase in earnings per share (EPS) and 3.9% growth in core revenues, among other results.
In the fourth quarter (Q4) of 2024, the bank posted diluted EPS of $1.09, an 11.2% increase from Q4 2023. Total core revenues reached $181.9 million for the quarter and $709.6 million for the year. Net interest margin stood at 5.4%, while return on average assets and tangible equity were 1.75% and 16.71%, respectively.
“The fourth quarter and last year reflected solid performance with strong financial results,” said José Rafael Fernández, OFG’s CEO. “We demonstrated consistent and excellent operational execution on our plans, with our ‘Digital First’ strategy helping to grow our banking franchise and market share. Results also benefited from lower taxes, and we bought back 1.8 million shares in 2024.”
“Thanks to our team members for their hard work and dedication. This is a great way to conclude the celebration of our 60th year in business, bringing progress to all our stakeholders,” he said.
Loans held for investment grew 3.4% year-over-year to $7.79 billion, driven by gains in auto, consumer and U.S. commercial lending. New loan production in Q4 reached $609 million, reflecting increased activity in Puerto Rico’s commercial and residential mortgage sectors.
Investments also grew, with $264 million in mortgage-backed securities yielding 5.3% added to the portfolio. However, deposits declined to $9.45 billion, largely due to reduced government deposits.
Despite strong financial results, OFG faced higher credit loss provisions, rising to $30.2 million in Q4 2024 from $19.7 million in Q4 2023, driven by increased loan volume and delinquency trends. Noninterest expenses also rose to $99.7 million, reflecting early retirements, business rightsizing and performance incentives.
As OFG enters 2025, it remains focused on leveraging digital transformation and strategic investments to drive growth. With $29.7 million remaining in its share repurchase authorization and a strong capital position, the bank is well-equipped to navigate the evolving economic landscape.
As for the changes in government administrations both in Puerto Rico and the U.S. mainland, Fernández said while they bring a “degree of uncertainty, they also bring a degree of opportunities.”
“Puerto Rico’s economy is on a solid foundation and continues to benefit from federal funds. There is investment at the private company level, and there is optimism among entrepreneurs,” he said in a call with local reporters. “The level of federal funds coming in may begin to drop, but they are replaced by private investments that arrive on the island.”
“For me the challenge the local government has is to achieve a transition from an economy based on federal investments to one relying on private investments. They need to address the energy issue, which requires a lot more confidence in the energy system; they must address the issue of permits,” he said.
“So, these aren’t new issues; they’re the same ones we have had for the last 10 or 12 years. But little by little, slower than one would like — much slower than one would like — they’re beginning to be addressed, and we hope that they will be resolved in a positive way,” Fernández concluded.