Overview

• Puerto Rico financial holding firm's Q2 core revenue rose 4.5% yr/yr

• Diluted EPS for Q2 increased 20.9% yr/yr

• Company cites loan growth, deposit strength, and stable credit trends as key drivers

Outlook

• Company says Puerto Rico economy remains stable with federal funds and strong labor market

• Company expects operational strength and customer focus to support long-term growth opportunities

Result Drivers

• LOAN GROWTH AND HIGHER RATES - Co said higher average loan balances at increased rates and payoffs of several commercial loans boosted interest income

• DEPOSIT GROWTH - Sequential deposit growth from government, commercial and retail customers contributed to liquidity and cash balances

• HIGHER BANKING AND WEALTH MANAGEMENT FEES - Increase in banking service and wealth management revenues, including insurance and annuity fees, offset lower mortgage banking revenues

Company press release: ID:nBw8CxsxWa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Core Revenue		$190.30 mln
Q2 EPS		$1.39
Q2 CET1 Capital Ratio		14.07%

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 $50.50, about 1% above its July 20 closing price of $50.00

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 21 - Atlantic Union Bankshares beats Q2 EPS estimates on loan growth

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - KeyCorp quarterly profit rises on interest income strength

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