NYSE$OFG

Ofg Bancorp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported results for the second quarter, demonstrating resilience amidst Covid-19 challenges.

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.

Headline financials

Total Revenue

$132M

Previous: $104M+27.1%
EPS (adj)

$0.39

Previous: $0.43-9.3%
Net Interest Margin

4.8%

No prior period
Efficiency Ratio

66.7%

No prior period
CET1 Ratio

12.0%

No prior period
Capital Expenditures

-$7.34M

Previous: -$6.33M-16.0%
Free Cash Flow

$14.4M

Previous: $17.6M-18.2%
Net Income

$21.8M

Previous: $24M-9.1%
Operating Income

$57.3M

Previous: $48M+19.4%
Gross Profit

$115M

Previous: $86.3M+32.7%
Cash & Equivalents

$1.9B

Previous: $676M+180.8%
Total Assets

$9.93B

Previous: $6.46B+53.7%
Stock-Based Comp

$822K

Previous: $540K+52.2%

Revenue & EPS history

OFG Bancorp · Revenue · Quarterly

$132M

Q2 2020+27.1%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+3.9%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+16.3%

Q4 2017

Best reaction

-9.5%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.0%+7.0%+5.7%
Q4 2025-8.2%-11.0%+0.2%
Q3 2025-6.5%-7.4%-5.7%
Q2 2025-0.1%-1.1%+0.7%
Q1 2025+1.2%+7.2%+14.3%
Q4 2024-1.4%-3.8%-6.9%
Q3 2024-7.3%-11.5%-2.4%
Q2 2024+1.4%+8.8%+0.4%
Q1 2024+4.3%+8.6%+13.3%
Q4 2023+5.2%+6.1%+0.1%
Q3 2023-3.2%-3.8%+13.1%
Q2 2023+8.6%+7.5%+0.7%
Q1 2023+2.9%+0.1%-2.8%
Q4 2022+1.9%+3.8%+9.5%
Q3 2022+0.1%+1.7%+2.2%
Q2 2022-1.9%-1.4%+8.6%
Q1 2022-4.6%-5.1%-2.0%
Q4 2021-8.1%-7.8%-8.0%
Q3 2021+3.0%+7.4%+4.7%
Q2 2021+5.7%+7.7%+14.3%
Q1 2021+1.6%+6.1%+11.3%
Q4 2020-9.0%-10.2%+3.7%
Q3 2020-3.9%-9.7%+7.2%
Q2 2020-5.2%-4.7%-11.7%
Q1 2020-2.4%-9.8%-5.7%
Q4 2019-0.1%-1.4%-17.9%
Q3 2019-9.3%-11.7%-14.6%
Q2 2019-4.7%-0.4%-10.9%
Q1 2019-2.5%+1.0%-0.4%
Q4 2018+2.5%+3.1%+16.4%
Q3 2018+14.7%+9.8%+20.5%
Q2 2018+11.3%+11.0%+20.5%
Q1 2018+7.6%+14.0%+20.8%
Q4 2017+16.3%+18.4%+11.7%
Q3 2017+12.9%+4.3%+14.7%
Q2 2017+5.6%+2.5%-9.6%
Q1 2017+4.5%+9.5%-12.7%
Q4 2016+1.9%+3.5%+2.3%
Q3 2016+8.4%+6.4%+36.8%
Q2 2016+8.1%+12.7%+15.1%
Q1 2016+10.6%
Q4 2015-9.4%
Q3 2015+10.2%
Q2 2015-6.3%
Q1 2015-9.5%
Q4 2014+11.5%
Q3 2014-2.3%
Q2 2014+1.6%
Q1 2014+1.4%
Q4 2013+3.0%
Q3 2013-4.5%
Q2 2013-0.5%
Q1 2013+4.2%
Q4 2010-0.9%
Q4 2012-0.3%
Q3 2012+11.0%
Q4 2011+1.2%
Q2 2012-1.2%
Q1 2011-0.3%
Q1 2012+1.7%
Q4 2009+1.7%
Q3 2010+4.3%
Q3 2011+4.3%
Q2 2010-6.3%
Q2 2011-6.3%
Q1 2010+8.3%

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