OFG Bancorp reports $179.4M in Q2 core revenue
The bank also moved ahead with its share buyback program, implementing close to the $50 million approved by its board.
OFG Bancorp, the financial holding company for Oriental Bank, reported second quarter results that include core revenue of $179.4 million for the period ended June 30, 2024, compared to the $170.5 million reported in the same year-ago quarter.
The San Juan-based financial institution compared the most recent results to the $174.2 million on record for the first quarter of the year.
The bank also reported earnings per share diluted of $1.08 for the second quarter, compared to $1.05 in the first quarter and $0.93 in the second quarter of 2023.
“The second quarter continued to demonstrate the strength of our strategies and franchise. EPS-diluted increased 16.1% year-over-year on a 5.2% increase in total core revenues. We generated strong performance metrics through consistent growth; increased loans, deposits and non-interest income; and stable credit quality,” said OFG CEO José Rafael Fernández.
New loan production for the quarter stood at $589 million compared to $536.6 million in the first quarter of 2024 and $681.8 million in the second quarter of 2023. Compared to the first quarter of this year, the bank stated that loan production, led by auto, reflected increases in all categories during the most recent three-month period.
OFG reported customer deposits of $9.6 billion during the most recent quarter, remaining virtually flat when compared to $9.55 billion in the first three-month period of the year, but up year-over-year from the $8.54 billion reported for the same quarter in 2023.
The quarter-over-quarter growth reflected an increase in commercial deposits partially offset by a decline in retail deposits, the bank stated.
During the quarter, OFG also moved ahead with its share buyback program, implementing close to the $50 million approved by its board, Fernández said.
“We purchased $24.3 million of OFG shares in the open market,” he said, noting the shares were picked up at $36, and are now trading at $43. “So, it turned out very well for us.”
“At the same time, Puerto Rico’s economy continued to grow and steadily decouple from mainland economic uncertainties. Thanks to our team members for their commitment to making progress possible for our customers, employees, shareholders and the communities we serve,” Fernández said.
Puerto Rico, USVI issues at forefront of FHLBNY
In response to questions from News is my Business during a call with reporters, Fernández expanded on what he believes his role will be as newly designated director on the Federal Home Loan Bank of New York’s (FHLBNY) board.
“For me it’s a source of great satisfaction to be able to represent Puerto Rico and the Virgin Islands on that board because my responsibility is nothing other than to bring the issues of Puerto Rico to the forefront, and we can take advantage of the initiatives that the [FHLBNY] has to help the communities that need help, because — apart from providing that liquidity to the banking system — the FHLBNY has programs through which it can help communities in Puerto Rico and the Virgin Islands that qualify for certain low-cost financing,” said Fernández, who succeeded Carlos Vázquez, who retired from his post at Popular Inc. and opened the slot on the board for the region.
“I will be the spokesperson for Puerto Rico on that board and for the Virgin Islands and will identify communities to help them receive those benefits,” said Fernández, who as part of his designation, rejoins FHLBNY President José Ramón González, who worked at Oriental until his designation in 2013.
“Certainly, reconnecting again with José Ramón, who was an important part of our leadership here in Oriental is also a reason for great joy,” he said. “I’m very proud and very happy to be able to make a contribution, representing Oriental.”
