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Dec 31, 2020
OFG Bancorp Q4 2020 Earnings Report
OFG Bancorp's earnings increased and revenues grew due to solid loan production, lower cost of funds, and higher non-interest income.
Key Takeaways
OFG Bancorp reported strong Q4 2020 results, marked by increased earnings and revenues driven by solid loan production, lower cost of funds, higher non-interest income, and reduced expenses. The company completed the integration of the Scotiabank acquisition and related cost-savings during the quarter.
EPS diluted of $0.42 compared to a loss of $0.05 in 4Q19, reflecting pre-tax merger and restructuring charges.
Total core revenues were $132.8 million versus $98.4 million in 4Q19.
New loan originations totaled $485.4 million compared to $404.9 million in 4Q19.
Tangible book value per share increased to $16.97 compared to 4Q19, and CET1 capital increased to $894.1 million.
Forward Guidance
OFG Bancorp anticipates realizing the full benefits of its larger scale in 2021, with vaccine inoculations expected to reduce the threat of COVID-19 and the economies of Puerto Rico and USVI projected to expand due to federal reconstruction and stimulus.
Positive Outlook
- Realizing full benefits of larger scale in 2021.
- Vaccine inoculations reducing the threat of COVID-19.
- Economies of Puerto Rico and USVI expanding from federal reconstruction and stimulus.
- Strong performance in core businesses.
- Completion of Scotiabank integration and related cost savings.
Challenges Ahead
- Potential impact of damages from future hurricanes, earthquakes and other natural disasters in Puerto Rico.
- Possible legislative, tax or regulatory changes.
- Severity, magnitude and duration of the COVID-19 pandemic.
- Changes in interest rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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