Insider Trading Watch List: OFG Bancorp (OFG)

OFG Bancorp (NYSE:OFG) insider has recently participated in insider trading activity.      CFO & EVP, Kumar Ganesh bought5,000 shares for $24,733 via one transaction Feb 11. Following the transaction, the insider now owns 10,000 shares in total, priced at $52,000 as of Friday. Another notable insider trading was done by the same insider on Feb 11. Colon Jorge acquired 2,000 shares at an average price of $4.79 for a total of $9,579. Moreover, Pena Radamescarried out a buy of 5,000 shares at $4.69 each on Feb 11. The transaction amounted to $23,450. Director Colon Jorge bought 2,000 shares for $10,290 through one transaction Feb 10. Following this sale, this insider’s stake in the company comprises 16,950 shares, priced at $88,140 as of Friday.

The stock has experienced a total of 35 insider trades in the past three months. These trades include 7 sell activities and 28 buy trades. Furthermore, over the past 12 months, the stock was traded 55 times by insiders. In 13 of these trades, the insider was a seller while an employee of the company was the buyer in just 42 instances.

OFG Bancorp (OFG) on February 1, 2016 reported results for the fourth quarter and the year ended December 31, 2015.

4Q15 Highlights

• All components of our business continued strong as in previous quarters:


• Pre-Provision Net Revenues of $36.4 million compared to an average of $38.3 million the last two quarters.


• New loan production at $236.8 million compared to an average of $254.0 million the last four quarters.


• Banking and wealth management fee revenues at $19.3 million compared to an average of $19.6 million the last four quarters.


• Tangible book value per common share of $14.53 and tangible common equity (TCE) ratio of 9.10% at December 31, 2015.


• OFG’s focus on cost control brought non-interest expenses down 5.4% from 4Q14, largely due to proactive rightsizing.


• Asset quality trends were encouraging. Early and total delinquency rates fell to 3.70% and 6.94% of loans, respectively, from 4.91% and 8.99% in 4Q14. The non-performing loan rate (excluding PREPA) at 3.63% was the lowest it has been in five quarters.

2015 Summary

• A loss of ($16.4) million, or ($0.37) per share, compared to net income of $71.3 million, or $1.50 per share diluted, for 2014.


• Results reflected significant de-risking steps, including the following:


• Puerto Rico central government and public corporation loan balances fell 47.8% to $211.9 million at December 31, 2015, from $406.1 million a year ago. Loans to Puerto Rico municipalities declined 4.4% to $203.5 million, and Puerto Rico securities balance came down 15.0% to $17.8 million.


• Successful negotiation and termination of the FDIC commercial shared loss agreement. This resulted in a $10.2 million increase in share loss amortization in 2Q15, but a reduction of approximately $10 million a quarter going forward.


• Successful bulk sale of $235.2 million in unpaid principal balances of acquired NPAs. This resulted in a charge of $20.2 million pre-tax in 3Q15.


• In all, the de-risking resulted in normalization of net interest margin to 5.03% from 5.84%, primarily reflecting contraction from the steep reduction in tax exempt, high yield, government related loans.


• Growth of the Oriental retail franchise through new customers, products and services.

José Rafael Fernández, President, Chief Executive Officer, and Vice Chairman of the Board, commented:

“Our core business performed well this past quarter and year, given the challenging economy and Puerto Rico’s fiscal situation. We maintained good levels of interest and non-interest revenues and loan production, while retaining a solid capital position. This enabled us to take decisive de-risking actions to further strengthen our balance sheet. Non-interest expenses declined, most credit metrics improved, and we continued to expand the Oriental franchise.