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OFG Bancorp

NYSE:OFG
Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OFG
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

OFG Bancorp, a financial holding company, provides various banking and financial services. The last earnings update was 73 days ago. More info.


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OFG Share Price and Events
7 Day Returns
-1.9%
NYSE:OFG
-0.6%
US Banks
-0.3%
US Market
1 Year Returns
59.9%
NYSE:OFG
-7.3%
US Banks
3.4%
US Market
OFG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
OFG Bancorp (OFG) -1.9% 10.1% 18.4% 59.9% 144.7% 34.8%
US Banks -0.6% 2.9% -1.2% -7.3% 44.2% 45.2%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • OFG outperformed the Banks industry which returned -7.3% over the past year.
  • OFG outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
OFG
Industry
5yr Volatility vs Market

OFG Value

 Is OFG Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of OFG Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for OFG Bancorp.

NYSE:OFG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $22.22 * 9.6%
$2.13
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $22.22
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:OFG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.594 (1 + (1- 21%) (47.75%))
0.878
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.878 * 5.96%)
7.97%

Discounted Cash Flow Calculation for NYSE:OFG using Excess Returns Model Model

The calculations below outline how an intrinsic value for OFG Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:OFG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.6% – 7.97%) * $22.22)
$0.36
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.36 / (7.97% - 2.73%)
$6.79
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $22.22 + $6.79
$29.01
NYSE:OFG Discount to Share Price
Calculation Result
Value per share (USD) From above. $29.01
Current discount Discount to share price of $23.34
= -1 x ($23.34 - $29.01) / $29.01
19.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price OFG Bancorp is available for.
Intrinsic value
20%
Share price is $23.34 vs Future cash flow value of $29.01
Current Discount Checks
For OFG Bancorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • OFG Bancorp's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • OFG Bancorp's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for OFG Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are OFG Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:OFG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.71
NYSE:OFG Share Price ** NYSE (2019-07-18) in USD $23.34
United States of America Banks Industry PE Ratio Median Figure of 594 Publicly-Listed Banks Companies 12.69x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of OFG Bancorp.

NYSE:OFG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:OFG Share Price ÷ EPS (both in USD)

= 23.34 ÷ 1.71

13.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OFG Bancorp is overvalued based on earnings compared to the US Banks industry average.
  • OFG Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does OFG Bancorp's expected growth come at a high price?
Raw Data
NYSE:OFG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
20.6%per year
United States of America Banks Industry PEG Ratio Median Figure of 271 Publicly-Listed Banks Companies 1.22x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:OFG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.65x ÷ 20.6%

0.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OFG Bancorp is good value based on expected growth next year.
Price based on value of assets
What value do investors place on OFG Bancorp's assets?
Raw Data
NYSE:OFG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.10
NYSE:OFG Share Price * NYSE (2019-07-18) in USD $23.34
United States of America Banks Industry PB Ratio Median Figure of 594 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:OFG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:OFG Share Price ÷ Book Value per Share (both in USD)

= 23.34 ÷ 18.10

1.29x

* Primary Listing of OFG Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • OFG Bancorp is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess OFG Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. OFG Bancorp has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

OFG Future Performance

 How is OFG Bancorp expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is OFG Bancorp expected to grow at an attractive rate?
  • OFG Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • OFG Bancorp's earnings growth is expected to exceed the United States of America market average.
  • OFG Bancorp's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:OFG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:OFG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 20.6%
NYSE:OFG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 37.1%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 2%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:OFG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:OFG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 120
2020-12-31 617 127 2
2019-12-31 407 88 3
NYSE:OFG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 345 119 81
2018-12-31 335 133 72
2018-09-30 317 119 63
2018-06-30 312 194 43
2018-03-31 305 162 41
2017-12-31 302 151 39
2017-09-30 309 138 37
2017-06-30 301 53 49
2017-03-31 301 80 46
2016-12-31 313 79 45
2016-09-30 272 77 29
2016-06-30 273 82 18

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • OFG Bancorp's earnings are expected to grow significantly at over 20% yearly.
  • OFG Bancorp's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:OFG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from OFG Bancorp Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:OFG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.40 2.40 2.40 1.00
2020-12-31 2.47 2.80 1.76 4.00
2019-12-31 1.68 1.77 1.44 4.00
NYSE:OFG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.71
2018-12-31 1.59
2018-09-30 1.43
2018-06-30 0.98
2018-03-31 0.92
2017-12-31 0.88
2017-09-30 0.85
2017-06-30 1.12
2017-03-31 1.05
2016-12-31 1.03
2016-09-30 0.66
2016-06-30 0.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • OFG Bancorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess OFG Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
OFG Bancorp has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

OFG Past Performance

  How has OFG Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare OFG Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • OFG Bancorp's year on year earnings growth rate has been positive over the past 5 years.
  • OFG Bancorp's 1-year earnings growth exceeds its 5-year average (99.2% vs 2.3%)
  • OFG Bancorp's earnings growth has exceeded the US Banks industry average in the past year (99.2% vs 40.8%).
Earnings and Revenue History
OFG Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from OFG Bancorp Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:OFG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 345.03 80.78 142.48
2018-12-31 334.88 72.39 142.11
2018-09-30 317.11 62.88 142.85
2018-06-30 312.16 43.10 144.24
2018-03-31 304.61 40.55 145.45
2017-12-31 302.20 38.78 145.26
2017-09-30 308.76 37.27 143.75
2017-06-30 301.09 49.07 141.76
2017-03-31 301.12 46.30 139.10
2016-12-31 313.17 45.32 138.92
2016-09-30 272.09 28.79 140.44
2016-06-30 272.63 18.24 143.27
2016-03-31 260.71 0.79 146.56
2015-12-31 228.45 -16.37 147.01
2015-09-30 279.99 5.20 150.89
2015-06-30 292.87 20.17 149.63
2015-03-31 322.55 44.58 150.33
2014-12-31 365.16 71.32 156.09
2014-09-30 371.02 70.82 156.39
2014-06-30 373.36 70.91 161.72
2014-03-31 355.68 87.14 167.59
2013-12-31 352.81 84.58 173.19
2013-09-30 317.72 44.64 156.95
2013-06-30 303.89 43.21 139.45
2013-03-31 275.91 22.89 119.17
2012-12-31 185.72 14.62 95.76
2012-09-30 177.91 24.85 93.39

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • OFG Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • OFG Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if OFG Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess OFG Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
OFG Bancorp has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

OFG Health

 How is OFG Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of OFG Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from OFG Bancorp Company Filings, last reported 3 months ago.

NYSE:OFG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,021.19 549.49 506.48
2018-12-31 999.88 570.76 447.74
2018-09-30 969.89 488.67 545.42
2018-06-30 957.82 552.95 376.85
2018-03-31 946.85 355.09 363.55
2017-12-31 945.11 330.03 486.17
2017-09-30 937.63 420.93 721.82
2017-06-30 938.97 629.17 478.56
2017-03-31 931.43 674.36 481.71
2016-12-31 920.41 797.79 512.12
2016-09-30 924.93 804.61 511.15
2016-06-30 915.89 1,042.74 519.32
2016-03-31 903.80 1,078.94 680.83
2015-12-31 897.08 1,377.70 540.02
2015-09-30 907.89 1,446.33 530.07
2015-06-30 911.60 1,607.47 558.70
2015-03-31 936.38 1,375.72 686.08
2014-12-31 942.20 1,431.23 583.13
2014-09-30 930.00 1,463.49 681.37
2014-06-30 925.20 1,490.72 607.66
2014-03-31 896.49 1,489.58 642.41
2013-12-31 884.91 1,722.37 703.64
2013-09-30 879.73 1,736.86 765.99
2013-06-30 870.92 1,751.83 770.18
2013-03-31 870.24 2,137.89 646.47
2012-12-31 863.61 2,512.92 963.68
2012-09-30 771.69 3,032.11 805.50
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • OFG Bancorp has an acceptable proportion of non-loan assets held.
  • OFG Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at OFG Bancorp are broadly funded by customer deposits.
  • OFG Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • OFG Bancorp has a sufficient allowance for bad loans.
  • OFG Bancorp has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess OFG Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. OFG Bancorp has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

OFG Dividends

 What is OFG Bancorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.2%
Current annual income from OFG Bancorp dividends. Estimated to be 1.35% next year.
If you bought $2,000 of OFG Bancorp shares you are expected to receive $24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • OFG Bancorp's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • OFG Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:OFG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 479 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:OFG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.38 1.00
2020-12-31 0.33 4.00
2019-12-31 0.29 4.00
NYSE:OFG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-24 0.280 1.355
2019-02-27 0.280 1.408
2018-11-28 0.280 1.557
2018-08-22 0.240 1.436
2018-05-23 0.240 1.578
2018-02-28 0.240 1.955
2017-11-29 0.240 2.434
2017-08-23 0.240 2.716
2017-05-24 0.240 2.451
2017-02-23 0.240 2.105
2016-11-30 0.240 1.794
2016-08-24 0.240 2.227
2016-03-15 0.360 4.244
2016-02-01 0.360 6.238
2015-09-01 0.400 5.104
2015-05-27 0.400 4.117
2015-02-25 0.400 2.571
2014-11-19 0.400 2.479
2014-08-27 0.320 2.097
2014-05-28 0.320 1.857
2014-02-26 0.320 1.871
2013-12-05 0.320 2.028
2013-08-29 0.240 1.477
2013-05-23 0.240 1.331
2013-02-26 0.240 1.521
2013-02-07 0.240 1.606
2012-08-23 0.240 2.011
2012-05-23 0.240 2.274
2012-02-29 0.240 2.061
2011-11-30 0.240 2.021
2011-08-31 0.200 1.949
2011-05-26 0.200 1.703
2011-02-23 0.200 1.626
2010-11-24 0.200 1.661
2010-08-25 0.160 1.227
2010-06-02 0.160 1.207
2010-03-02 0.160 1.160
2009-12-17 0.160 1.469
2009-08-27 0.160 1.385
2009-06-24 0.160 1.385
2009-03-12 0.160 2.405
2008-11-25 0.560 13.957
2008-08-20 0.560 3.838

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of OFG Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.2x coverage).
X
Income/ dividend checks
We assess OFG Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can OFG Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. OFG Bancorp has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

OFG Management

 What is the CEO of OFG Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
José Fernández
COMPENSATION $2,800,477
AGE 55
TENURE AS CEO 15.5 years
CEO Bio

Mr. José Rafael Fernández, also known as Jos, has been the Chief Executive Officer and President of OFG Bancorp since 2004. Mr. Fernández has been President of Oriental Financial Services Corp., a subsidiary of Oriental Financial Group Inc. since June 2001. He is the Chief Executive Officer and President at Oriental Insurance Inc. and Oriental Bank. He serves as Chairman and President of Puerto Rico Growth Fund Inc. He served as Senior Executive Vice President of Oriental Financial Group Inc. from June 2001 to December 2004. He served as Executive Vice President of Oriental Financial Services Corp. from 1999 to 2001 and Senior Vice President of such entity from 1997 to 1999. Mr. Fernández served as the Vice President of Sales and Marketing of Oriental Financial Services Corp. from 1993 to 1997. He served as Chief Operating Officer of Oriental Financial Group Inc., from January 2003 to 2004 and has held increasingly important positions at Oriental since joining the Group in 1991. He spearheaded the highly successful implementation of the Group's “Oriental Way“ program, designed to take Oriental Financial Group Inc. to the next level of product/service innovation and growth. In that position, he guided the team that is expanding Oriental's commercial and consumer loan business and effectively managing its investment portfolio. He joined the Oriental Bank in 1991 as an Assistant Vice President of the Treasury Department and in 1992 was in charge of its sales and marketing efforts for individual retirement accounts. Mr. Fernández was an investment executive in Puerto Rico, New York and Buenos Aires. He serves as Vice Chairman of the Board of Directors of Caribbean Pension Consultants, Inc. He is the Chairman of Oriental Financial Services Corp. and Oriental Insurance, Inc. He is the Vice Chairman of OFG Bancorp since June 18, 2008 and has been its Executive Director since 2005. He is also the Vice Chairman of the Board and Director of Oriental Bank. He is a member of the Board of Directors of Advanced Imaging Interventional Center Inc. He is also a member of the Board of Trustees of the María Reina Academy. In 2008, he was elected a Director of Museo de Arte de Puerto Rico (Puerto Rico Arts Museum) and named a Trustee of Universidad del Sagrado Corazon in Santurce, Puerto Rico. He was a member of the Board of Trustees of the Sacred Heart University from 1998 to 2004. He has been President of the Puerto Rico Center for Social Concerns (non-profit organization) since 1998. Mr. Fernández holds a Bachelor of Science Degree from the University of Notre Dame and an MBA, with majors in Finance and Marketing, from the University of Michigan.

CEO Compensation
  • José's compensation has been consistent with company performance over the past year, both up more than 20%.
  • José's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the OFG Bancorp management team in years:

10.5
Average Tenure
55
Average Age
  • The average tenure for the OFG Bancorp management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

José Fernández

TITLE
Vice Chairman
COMPENSATION
$3M
AGE
55
TENURE
15.5 yrs

Maritza Arizmendi Díaz

TITLE
Executive VP & CFO
COMPENSATION
$622K
AGE
51
TENURE
2.3 yrs

Ganesh Kumar

TITLE
Senior EVP
COMPENSATION
$2M
AGE
55
TENURE
2.3 yrs

Rafael Cruz

TITLE
Senior VP and Chief Risk & Compliance Officer
COMPENSATION
$343K
AGE
63
TENURE
9.5 yrs

Cesar Ortiz

TITLE
Senior VP and Director of Commercial Credit & Operations
COMPENSATION
$396K
AGE
44
TENURE
12.1 yrs

Ramón Rosado-Linera

TITLE
Senior VP & Director of the U.S. Loan Program
COMPENSATION
$387K
AGE
55

Steven Anreder

TITLE
Investor Relations Contact

Carlos Souffront

TITLE
Executive VP
TENURE
11.5 yrs

Jennifer Nazario

TITLE
Senior Vice President of Human Resources

Luis Alejandro

TITLE
Senior Vice President and Senior Vice President of Branch Administration
AGE
58
Board of Directors Tenure

Average tenure and age of the OFG Bancorp board of directors in years:

7
Average Tenure
65
Average Age
  • The tenure for the OFG Bancorp board of directors is about average.
Board of Directors

Julian Inclán

TITLE
Chairman of the Board
COMPENSATION
$166K
AGE
71
TENURE
7 yrs

José Fernández

TITLE
Vice Chairman
COMPENSATION
$3M
AGE
55
TENURE
11.1 yrs

Juan Aguayo

TITLE
Independent Director
COMPENSATION
$88K
AGE
55
TENURE
14.8 yrs

Pedro Morazzani Ferrer

TITLE
Independent Director
COMPENSATION
$108K
AGE
66
TENURE
12.7 yrs

Jorge Colón Gerena

TITLE
Independent Director
COMPENSATION
$78K
AGE
52
TENURE
5.2 yrs

Néstor de Jesús

TITLE
Independent Director
COMPENSATION
$78K
AGE
67
TENURE
3.5 yrs

Edwin Pérez

TITLE
Independent Director
COMPENSATION
$11K
AGE
65
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Dec 18 Buy Julian Inclán Individual 26. Dec 18 26. Dec 18 3,000 $15.48 $46,440
21. Dec 18 Buy José Fernández Individual 19. Dec 18 19. Dec 18 3,000 $15.18 $45,528
X
Management checks
We assess OFG Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. OFG Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

OFG News

Simply Wall St News

Did Business Growth Power OFG Bancorp's (NYSE:OFG) Share Price Gain of 141%?

For instance the OFG Bancorp (NYSE:OFG) share price is 141% higher than it was three years ago. … OFG Bancorp was able to grow its EPS at 356% per year over three years, sending the share price higher. … NYSE:OFG Past and Future Earnings, July 18th 2019 We know that OFG Bancorp has improved its bottom line over the last three years, but what does the future have in store?

Simply Wall St -

Is OFG Bancorp's (NYSE:OFG) Stock Available For A Good Price After Accounting For Growth?

OFG Bancorp is available at a price-to-earnings ratio of 13.79x, showing us it is undervalued relative to the current US market average of 18.18x , and overvalued based on current earnings compared to the Banks industry average of 12.87x. … NYSE:OFG Price Estimation Relative to Market, July 5th 2019 After looking at OFG's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … A PE ratio of 13.79x and expected year-on-year earnings growth of 21% give OFG Bancorp a very low PEG ratio of 0.67x.

Simply Wall St -

Does OFG Bancorp's (NYSE:OFG) CEO Pay Matter?

View our latest analysis for OFG Bancorp How Does José Fernández's Compensation Compare With Similar Sized Companies? … While we always look at total compensation first, we note that the salary component is less, at US$865k. … NYSE:OFG CEO Compensation, June 22nd 2019 Is OFG Bancorp Growing?

Simply Wall St -

Only 4 Days Left To Cash In On OFG Bancorp (NYSE:OFG) Dividend

NYSE:OFG Historical Dividend Yield, June 22nd 2019 Have Earnings And Dividends Been Growing? … Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. … See what the four analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow We wouldn't recommend just buying the first dividend stock you see, though.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand OFG Bancorp (NYSE:OFG)

Check out our latest analysis for OFG Bancorp How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for OFG Bancorp: P/E of 11.3 = $19.32 ÷ $1.71 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … So it doesn't have as many options as it would with net cash, but its debt would not have much of an impact on its P/E ratio.

Simply Wall St -

Should You Buy OFG Bancorp (NYSE:OFG) For Its Dividend?

Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … OFG Bancorp's dividend payments have fluctuated, so it hasn't grown 5.8% every year, but the CAGR is a useful rule of thumb for approximating the historical growth. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. While there may be fluctuations in the past , OFG Bancorp's earnings per share have basically not grown from where they were five years ago. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Read This Before Selling OFG Bancorp (NYSE:OFG) Shares

So we'll take a look at whether insiders have been buying or selling shares in OFG Bancorp (NYSE:OFG). … Over the last year, we can see that insiders have bought 31667 shares worth US$455k … In the last twelve months OFG Bancorp insiders were buying shares, but not selling

Simply Wall St -

Here's Why We Think OFG Bancorp (NYSE:OFG) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … OFG Bancorp's Earnings Per Share Are Growing. … Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS?

Simply Wall St -

Is OFG Bancorp (NYSE:OFG) Over-Exposed To Risk?

Economic growth impacts the stability of salaries and interest rate level which in turn affects borrowers’ demand for, and ability to repay, their loans. … Risk associate with repayment is measured by the level of bad debt which is an expense written off OFG Bancorp’s bottom line. … Today I will take you through some bad debt and liability measures to analyse the level of risky assets held by the bank.

Simply Wall St -

Should You Worry About OFG Bancorp's (NYSE:OFG) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does José Fernández's Compensation Compare With Similar Sized Companies. … According to our data, OFG Bancorp has a market capitalization of US$1.0b, and pays its CEO total annual compensation worth US$2.3m.

Simply Wall St -

OFG Company Info

Description

OFG Bancorp, a financial holding company, provides various banking and financial services. It operates in three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending products; financial planning, insurance, financial services, and investment brokerage; and corporate and individual trust, and retirement services. It also offers securities brokerage services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; separately-managed accounts and mutual fund asset allocation programs; and trust, retirement planning, pension administration, and other financial services. In addition, the company is involved in the management and participation in public offerings and private placements of debt and equity securities; insurance agency business; and administration of retirement plans. Further, it is involved in various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and money market instruments. The company operates through a network of 37 branches in Puerto Rico. OFG Bancorp was founded in 1964 and is based in San Juan, Puerto Rico.

Details
Name: OFG Bancorp
OFG
Exchange: NYSE
Founded: 1964
$1,198,028,919
51,329,431
Website: http://www.ofgbancorp.com
Address: OFG Bancorp
254 Muñoz Rivera Avenue,
San Juan,
Puerto Rico, 00918,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE OFG Common Stock New York Stock Exchange US USD 19. Jun 1992
DB OFP Common Stock Deutsche Boerse AG DE EUR 19. Jun 1992
NYSE OFG.PRD PERP PFD-D New York Stock Exchange US USD 06. Nov 2012
NYSE OFG.PRB 7% PFD SER B New York Stock Exchange US USD 26. Apr 2013
Number of employees
Current staff
Staff numbers
1,394
OFG Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:51
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/07
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.