NYSE$OFG

Ofg Bancorp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

OFG Bancorp's earnings increased and revenues grew due to solid loan production, lower cost of funds, and higher non-interest income.

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.

Headline financials

Total Revenue

$98.7M

Previous: $79.2M+24.7%
EPS (adj)

$0.42

Previous: $0.53-20.8%
Net Interest Margin

4.2%

Previous: 5.3%-20.6%
CET1 Ratio

13.1%

Previous: 10.9%+19.9%
Capital Expenditures

$3.75M

Previous: $3.81M-1.4%
Free Cash Flow

-$80.1M

Previous: $64.8M-223.6%
Net Income

$23.3M

Previous: -$643K+3723.8%
Operating Income

$29.9M

No prior period
Cash & Equivalents

$2.16B

Previous: $851M+153.2%
Total Assets

$9.83B

Previous: $9.3B+5.7%
Stock-Based Comp

$702K

Previous: $567K+23.8%

Revenue & EPS history

OFG Bancorp · Revenue · Quarterly

$98.7M

Q4 2020+24.7%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2020

Historical avgQ4 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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