OFG Bancorp's Q3 EPS rises on commercial loan growth

Overview

• Bank's Q3 core revenue up 1% yr/yr to $185.7 mln

• Q3 diluted EPS rose 14.7% yr/yr to $1.33

• Company repurchased $13.5 mln of common shares in Q3

Outlook

• Company says digital banking initiatives are attracting new clients and deepening relationships

Result Drivers

• COMMERCIAL LOAN GROWTH - Co said results were supported by continued momentum in commercial loan growth

• CREDIT LOSS PROVISION - Higher provision for credit losses in Q3 mainly reflected increased loan volume and seasonal auto delinquency adjustment

• EXPENSE MANAGEMENT - Q3 non-interest expense declined sequentially due to absence of prior quarter's operational charges

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for OFG Bancorp is $57.00, about 7.6% above its October 20 closing price of $52.95

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 20 - Hancock Whitney Q3 adjusted EPS meets estimates driven by OFB Bancshares

• Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

• Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)