OFG Bancorp delivered a solid Q4 2024 performance characterized by earnings per share of $1.09 on total core revenues of $182 million, with a net interest margin (NIM) of 5.40% and a pre-provision net revenue (PPNR) of $83 million. Full-year 2024 earnings per share reached $4.23, up 10.4% year over year, supported by a 3.9% increase in total core revenues to $710 million. The quarter featured targeted capital management, with a $46 million share repurchase that reduced share count and strengthened capital ratios, and the CET1 ratio stood at 14.26%. The quarter and year benefited from a Digital First strategy that accelerated digital adoption (96% of routine retail transactions and 68% of retail loan payments executed through digital/self-service channels) and contributed to steady deposit growth and improved customer engagement.
The Puerto Rico operating environment remained constructive, with economic activity and employment at high levels, reinforcing OFG’s franchise strength in both Puerto Rico and the U.S. Virgin Islands. Credit quality remained stable, though the company booked a modest provision for credit losses ($30.2 million in Q4) and a specific reserve related to four U.S. commercial loans, along with a qualitative auto delinquency reserve. Management signaled confidence in a positive 2025, guided by a NIM range of 5.30%–5.40% (net of the full-year impact of higher 2024 costs) and a 26% effective tax rate for 2025. Expense discipline remains a core focus, with projected quarterly non-interest expenses of $95–$96 million for 2025 to fund technology investments and digital initiatives while maintaining operating leverage.
Overall, OFG’s 2024 results underscore a well-capitalized bank with a diversified revenue mix, meaningful Digital First milestones, and an actionable plan to drive loan and deposit growth while navigating a modestly evolving rate environment and macro risks in Puerto Rico and the broader U.S. market.