OFG Q3 Net Surges On Credit Loss Reserve Reversal

(RTTNews) - OFG Bancorp (OFG), the financial holding company for Oriental Bank, reported third quarter income that increased more than 61 percent, primarily due to a reversal of provision for credit losses.

Net Income for the period was $41.7 million or $0.81 per share as compared to $25.8 million or $0.50 per share in the third quarter of 2020. Net Interest Income increased to $102.7 million from $99.5 million in the year-ago period.

Total interest expenses declined to $9.4 million from $15.4 million in the prior period as cost of core deposits declined to 30 bps from 56 bps, primarily due to generally lower rates. Total non-interest income increased marginally to $32.5 million from $31.3 million in the previous year. Total non-interest expenses declined to $78.9 million from $83.4 million in the third quarter of 2020. The latest third quarter reflected a $2.2 million benefit in credit related expenses from gains on sales of real estate owned, previously announced cost savings, and increased compensation.

Provision for credit losses was a net benefit of $5 million as compared to an expense of $13.7 million in the corresponding quarter of 2020 reflecting continued improvement in asset quality trends.

Average customer deposit balances were $9.10 billion compared to $8.38 billion in the third quarter of 2020. Average loan balances were $6.47 billion compared to $6.79 billion in the third quarter of 2020.

OFG closed Tuesday's trading at $25.41, up $0.02 or 0.08 percent from previous close. It is currently trading in pre-market at $25.70, up $0.29 or 1.14 percent from previous close.