OFG - NYSE

OFG Bancorp

OFG Bancorp

OFG·NYSE

$44.73

-1.8%
Financial ServicesBanks - Regional

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities. Further, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

StatementsValue Model

At a Glance

Live Snapshot
Market Cap$1.89B
EPS4.5300
P/E Ratio9.87
Earnings Date07/16/2026

Earnings Call Transcript

OFG • 2024 • Q1

Operator
Thank you. [Operator Instructions] We'll go first to Brett Rabatin with Hovde Group.
Operator
We'll go next to Alex Twerdahl with Piper Sandler.
Alex Twerdahl
Yeah. I'm sure there's nothing you can do about it, so no worries.
Operator
[Operator Instructions] We'll go next to Kelly Motta with KBW.
Kelly Motta
The tax rate was lowered this quarter, and I know you had a discrete benefit in there, but it also, as you mentioned, was related to the mix of tax advantage activities that you partook in or business mix. So just wondering how we should be thinking about the overall tax rate as we look ahead if prior year is still a good run rate or if given a shift in mix, it might be a bit lower?
Maritza Arizmendi
Well, hi, Kelly. Thanks for the question. And as I shared in my prepared remarks, we are now expecting 29% effective tax rate for the full year. So that's a decrease from what we saw last year. So, yeah, we see a lower tax rate for the full year at 29%.
Kelly Motta
Got it. That's really helpful. I guess, final question for me. I mean, it seems like the margin outlook is somewhat better than what we had been expecting before with growth from here. As we look ahead, I know you had said the efficiency ratio low to mid-50s. It seems net-net given your expense outlook hasn't changed that we may be in the lower part of that range versus the higher end. Just wondering kind of how you're thinking about as we look ahead kind of where we could fall out and how you're managing what could get us to the higher or lower end of that range? Thanks.
Maritza Arizmendi
Yes. Well, I think, I understand very well your question. At the end we haven't expected better NIM. But when we think about expenses, we think also about timing and when the investments are going to be deployed. And I think we will continue to be in that range and probably most of the time would be in the lower of that range. But in other instances [Technical Difficulty] the high end of that rate. So, I think, we continue to see the expenses as I mentioned $90 million to $92 million, we need to continue investing in our strategy. And I think that's the range, I don't see anyway, of course, being lower than that.
Operator
[Operator Instructions] We'll return to Alex Twerdahl with Piper Sandler.
Transcript from April 18, 2024

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