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Jun 30, 2020
OFG Bancorp Q2 2020 Earnings Report
Reported results for the second quarter, demonstrating resilience amidst Covid-19 challenges.
Key Takeaways
OFG Bancorp reported a net income of $20.2 million, or $0.39 per share, for the second quarter of 2020. The results reflect the bank's ability to manage challenges related to the Covid-19 pandemic, with loan production exceeding $500 million, including $286 million in PPP loans.
Net income available to common shareholders totaled $20.2 million or $0.39 per share fully diluted.
Total core revenues were $128.2 million, including $6.0 million in one-time interest recoveries from acquired SOP Scotiabank loans.
Loan production totaled $503.4 million, including $286.4 million in Paycheck Protection Plan (PPP) commercial loans.
Total assets of $9.93 billion increased 7.5% from 1Q20, with customer deposits of $8.32 billion increasing $760.0 million or 10.0% from 1Q20.
OFG Bancorp
OFG Bancorp
Forward Guidance
OFG Bancorp expects to complete the integration of Scotiabank operations by the end of the year, improve efficiencies, and continue to invest for the future. While uncertainty remains regarding Covid-19, the company is in a strong financial position to assist customers.
Positive Outlook
- Complete the integration of Scotiabank operations as planned by the end of the year.
- Improve efficiencies.
- Continue to invest for the future.
- Further simplify operations.
- Enhance our ability to serve customers.
Challenges Ahead
- Face much uncertainty regarding Covid-19.
- Impact on the economy from Covid-19.
- Governments in Puerto Rico and U.S. Virgin Islands shut down their respective economies in mid-March.
- Restrictions eased in late May, but recent spikes in contagiousness have forced Puerto Rico to scale down the flexibility.
- Results were also impacted by the Federal Reserve Bank 150 bps rate cut in March.