OFG Bancorp(OFG) - 2024 Q3 - Quarterly Report

Earnings Performance - Earnings per share diluted of $1.00, up 5.3% year-over-year, with total core revenues of$ 174.1 million, a 1.1% increase from the previous year[261] - Net income available to common shareholders for Q3 2024 was $47,000 thousand, representing a 4.7% increase from$ 44,873 thousand in Q3 2023[276] - Basic EPS for Q3 2024 was $1.01, up 6.3% from$ 0.95 in the same quarter last year[276] Interest Income and Expenses - Total interest income of $189.0 million, an increase from$ 165.7 million in Q3 2023, reflecting higher principal balances and yields of investment securities[263] - Total interest expense for Q3 2024 was $41.2 million, significantly higher than$ 23.9 million in Q3 2023, indicating a 72.0% increase[264] - Interest income for Q3 2024 increased to $189,030 thousand, up 14.1% from$ 165,708 thousand in Q3 2023[276] Credit Losses and Charge-offs - Total provision for credit losses of $21.4 million, compared to$ 16.4 million in Q3 2023, primarily due to increased loan volume and updates to risk drivers[267] - Net charge-offs of $17.1 million, representing 0.90% of average loans, with total delinquency rates at 4.10% and a nonperforming loan rate of 1.11%[268] - Provision for credit losses increased by$ 4.9 million to $21.4 million, driven by growth in loan balances and updates to risk factors[312] Loan and Deposit Growth - Loans held for investment increased to$ 7.75 billion, a 6.7% increase from Q3 2023, driven by growth in Puerto Rico and U.S. commercial loans[271] - Customer deposits totaled $9.53 billion, reflecting a decrease from$ 9.60 billion in Q2 2024, with increases in savings and time deposits[273] - New loan production of $572.2 million, slightly down from$ 589.0 million in Q2 2024, with increases in U.S. commercial and Puerto Rico consumer lending[272] Capital and Equity - CET1 ratio improved to 14.37%, up from 14.06% in Q3 2023, indicating a stronger capital position[275] - Total stockholders' equity increased by 10.4% to $1,318,132 thousand from$ 1,193,480 thousand at the end of 2023[278] - Book value per common share rose to $28.31, an 11.6% increase from$ 25.36 at the end of 2023[278] Non-Interest Income - Non-interest income decreased by 12.5% to $26,868 thousand from$ 30,699 thousand in the prior year quarter[276] - The company experienced a $3.1 million drop in mortgage banking activities and a$ 1.7 million decrease in banking service revenues[299] - Wealth management revenue increased by 9.9% to $8.4 million, up from$ 7.7 million in the prior year[297] Asset Management - Total assets managed decreased by 8.2% to $4,554,024 thousand from$ 4,958,161 thousand in the previous period[278] - Total assets as of September 30, 2024, amounted to $11.461 billion, compared to$ 10.257 billion as of September 30, 2023[318] - The average balance of interest-earning assets increased to $10,778.9 million in September 2024 from$ 9,539.4 million in September 2023[1] Market and Economic Indicators - The Puerto Rico Economic Activity Index registered 126.9 points in August 2024, a decrease of 0.8% compared to the previous year, while total non-farm payroll employment increased by 1.9% year-over-year[257] - The effective tax rate for the quarter ended September 30, 2024, was 26.8%, down from 31.9% in the same quarter of 2023[327] Stock Repurchase Program - The company announced a new $50.0 million stock repurchase program in October 2024, in addition to a previously approved program[255] - During the nine-month period ended September 30, 2024, OFG repurchased 671,800 shares for a total of$ 24.4 million at an average price of $36.30 per share[396]