OFG Bancorp Q4 2020 Earnings Report
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.
OFG Bancorp
OFG Bancorp
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.
- Changes to the financial condition of the government of Puerto Rico.