OFG Bancorp (OFG) Q4 2024 earnings summary

Executive summary

• Q4 2024 EPS rose 11.2% year-over-year to $1.09, with full-year EPS up 10.4% to $4.23 and total core revenues at $709.6M, driven by strong operational growth and digital adoption.

• Digital-first strategy led to 96% of routine retail transactions and 97% of retail deposits being digital or self-service, with 12% digital enrollment growth and 5% customer growth year-over-year.

• Share buybacks totaled $46M in Q4 and 1.8M shares for the year, with $29.7M remaining authorized; quarterly dividend increased 14% to $0.25 per share.

• Total assets were $11.5B, customer deposits $9.4B, and loans held for investment $7.8B at year-end.

Financial highlights

• Q4 diluted EPS was $1.09 on $182M in core revenues; net interest margin was 5.40% in Q4 and 5.43% for the year.

• Pre-provision net revenues reached $83M; total assets were $11.5B, up 1.4% year-over-year.

• Provision for credit losses was $30.2M in Q4, up from $21.4M in Q3, reflecting higher loan volume and specific reserves.

• Non-interest expense rose to $99.7M in Q4, reflecting higher G&A and compensation costs.

• Tangible book value per share was $25.43 at year-end.

Outlook and guidance

• Net interest margin guidance for 2025 is 5.30%-5.40%, with asset sensitivity mitigated by investment portfolio extension.

• Non-interest expense expected to average $95-$96M per quarter in 2025, reflecting ongoing investments in technology and people.

• Provision for credit losses anticipated at $18-$20M per quarter, maintaining current allowance coverage.

• Effective tax rate forecasted at 26% for 2025.

• Management expects continued loan, deposit, and customer growth, supported by digital strategy and economic expansion in Puerto Rico.