OFG reports $13.6M in net income in 4Q17
OFG Bancorp reported results for the fourth quarter and year ended Dec. 31, 2017, which reflected net income available to shareholders increased to $13.6 million, or $0.30 per share fully diluted, from a net loss of $146,000, or $0.00 per share, in 3Q17. OFG reported net income of $12.1 million, or $0.27 per share fully diluted, in 4Q16.
Bank executives concluded that the latest results reflected “a strong recovery” following hurricanes Irma and María, which struck the island in September 2017.
“You can see from our performance that our recovery is well underway and that we’re playing a significant role in helping businesses and consumers recover,” said OFG CEO José Rafael Fernández.
“Customer deposits increased in excess of $260 million from the pre-hurricane levels, new loan generation was more than $250 million up 33 percent, originated loan balances were up more than $110 million, net new customer acquisition return in December to the rates we saw before María and Irma,” he said.
Fernández told analysts that all continuing operations, branches and ATMs are back to normal. Furthermore, he said the bank not seen noticeable signs of out migration in its customer base or staff.
“We are encouraged with how our commercial clients and retail customers have responded. Total net loans increased more than $90 million from 3Q17. December-ended loan payment moratoriums are showing encouraging trends in all portfolios,” he said.
During 2017, OFG, parent company of Oriental, was busy introducing new technologies — five in total — designed to attract customers with a noticeably different and higher level of service at a reasonable cost, he said.
“The technologies and innovations like this prove their effectiveness, resulting in a 2 percent increase this past year in net new customers, a net increase of $127 million in originated loans and a net increase of $193 million in customer deposits,” he said.
By mid-year, the bank had eliminated all central government-related debt and after several years of preparation it launched its U.S. commercial loan program in October.
“The former will eliminate a drag on our loan book while the stateside initiative has already begun to add new loans using the same criteria that we have so successfully employed in Puerto Rico,” Fernández said.
During the fourth quarter of 2017, the bank’s results included $5.4 million in loan loss provision, pre-tax, based on new data available on the potential impact of the hurricanes. Excluding that additional provision, the quarter’s adjusted net income available to shareholders totaled $16.9 million, or $0.37 per share fully diluted.
Net income available to shareholders in 2017 was $38.8 million, or $0.86 per share fully diluted, compared to $45.3 million, or $1.03 per share, in 2016. Last year’s results included a $32.4 million loan loss provision, pre-tax, related to the hurricanes. Excluding that special provision, full year adjusted net income available to shareholders totaled $61 million, or $1.34 per share fully diluted.