OFG Bancorp revealed that for the second quarter ended June 30, 2018, it had net income available to shareholders of $16.2 million, or $0.35 per fully diluted share, compared to the first quarter’s $13.5 million and $13.6 million, equal to $0.30 per share, for the second quarter of 2017.
Bank officials said the results reflected the third straight quarter of “continued strong recovery following hurricanes that struck the island in September 2017.”
“On behalf of OFG’s entire team, we are extremely proud to announce yet another quarter of superior results across all facets of our business,” said OFG President José Rafael Fernández.
“The second quarter 2018 EPS is up more than 17 percent sequentially and more than 16 percent year over year. Virtually every one of our metrics confirms the success of our strategies, people and technology,” he said.
Average loan balances of $4.3 billion increased 3.0 percent from the preceding quarter as growth of originated loans is consistently outpacing the anticipated runoff of acquired loans.
New loan production of $432.1 million grew 39.7 percent from 1Q18 with sequential increases across the board in all categories.
“For the third quarter in a row, loan growth, new loan production, and return on average tangible common stockholders’ equity are up, while credit quality remained stable. For two quarters in a row, customer count, banking and financial service revenues, core retail deposits and NIM increased, and delinquency rates fell below pre-hurricane levels,” he said.
Average core deposit balances of $4.4 billion rose 1.6 percent from the first quarter 2018 with a 6.2 percent increase in non-interest bearing accounts to a record high $1.1 billion.
Customer count grew 1 percent from 1Q18 and 3 percent year over year as our strategy of differentiation, delivering superior customer convenience with innovative technology solutions, continues to be successful.
“Our effort to differentiate Oriental through superior service and technology is working. During 2Q18, we launched Oriental SmallBiz, another banking first for Puerto Rico, where new and existing customers can apply online for commercial credit,” Fernández said.
“Services like these enable us to step up our ability to reach out to customers and clients fácil, rápido, hecho (easy, fast, done,)” he said.
Total provision for loan and lease losses of $14.7 million dropped 4.6 percent from the preceding quarter as credit quality remains stable.
All key performance metrics improved from 1Q18 with net interest margin at 5.24 percent, return on average assets at 1.23 percent, return on average tangible common stockholders’ equity at 9.20 percent, and the efficiency ratio at 54.49 percent.
Tangible book value per common share of $15.96 at June 30, 2018 increased 6.4 percent annualized from March 31, 2018.
“We are also encouraged as OFG continues to build solid capital, with tangible book value per common share at $15.96, up sequentially more than 6 percent on an annualized basis. All indicators are positive, positioning us well to continue this trend for the rest of 2018.
“While Puerto Rico faces similar challenges as before, now that insurance and federal funds are flowing, economic activity and optimism are gaining momentum,” Fernández said.
“Based on what we have seen to date, we are confident about OFG and Oriental’s ability to continue to grow, deliver great customer experience and performance, and help Puerto Rico recover,” he added.