OFG Bancorp reports Q2 EPS 93c, consensus 88c

Reports Q2 revenue $170.5M, consensus $135.79M. Reports Net Interest Income of $139.6M compared to $135.9 million in 1Q23 and $115.1 million in 2Q22. 2Q23 reflected the full effect of 1Q23’s 50 basis point increase in the Federal Reserve Board’s funds rate and a partial effect of 2Q23’s 25 bps increase. Jose Rafael Fernandez, Chief Executive Officer, said: “The second quarter generated year-over-year increases of 16.5% in total core revenues and 10.7% in earnings per share. The period was highlighted by strong loan production, stable core deposits along with low cumulative deposit beta of 16% and increased operating leverage. Customer liquidity and the Puerto Rico economy continued at high levels. We also repurchased 565,299 shares of OFG stock as part of our buyback program.” “Our ‘Digital First’ strategy continues to show excellent progress. We launched a first to market, self-service portal that enables customers to manage quickly and easily all their loan and deposit accounts in one place. Customers are increasingly adopting this and other self-service tools. Use of brick and mortar channels is down and digital is up, leading to an overall 5% increase in customer transaction activity in June year-over-year. This is freeing more Oriental team members to provide value-added service and develop new business. As always, thanks to our team for helping our customers and the communities we serve.”