Eye Catching Insider Trading: OFG Bancorp (OFG)

OFG Bancorp (NYSE:OFG) insider has recently participated in insider trading activity. Director, Colon Jorge bought 2,000 shares for $ 9,579 via one transaction Feb 11. Following the transaction, the insider now owns 18,950 shares in total, priced at $109720.5 as of Tuesday. Another notable insider trading was done by the same insider on Feb 10. Colon Jorge acquired 2,000 shares at an average price of $5.14 for a total of $10,290. Moreover, Pena Radames carried out a sale of 5,000 shares at $4.69 each on Feb 11. The transaction amounted to $23,450.             CFO & EVP Kumar Ganesh bought 5,000 shares for $24,733 through one transaction Feb 11. Following this sale, this insider’s stake in the company comprises 10,000 shares, priced at $57900 as of Tuesday.

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.

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

4Q15 Results

• A loss of ($4.4) million, or ($0.10) per share fully diluted. This compares to net income of $1.1 million, or $0.03 per share diluted, in the preceding quarter, and $17.1 million, or $0.36 per share diluted, in the same quarter a year ago.


• Results included:
  
  
  
  • An additional $30.4 million provision on the $200 million participation in a syndicated fuel line of credit to the Puerto Rico Electric Power Authority (PREPA), reflecting continued hurdles in restructuring the credit. Currently in non-accrual status, interest payments are being credited to the payment of principal. The unpaid principal balance, net of allowances, was $135.9 million, or 68.5% of the total outstanding credit, at December 31, 2015.
  
  
  • $9.2 million in other quarter-specific charges or expenses, consisting of $4.9 million impairment during the annual recasting of a BBVA PR loan pool, $1.5 million in additional legal fees related to PREPA negotiations, $1.6 million in final adjustments to the 2Q15 settlement of the Eurobank commercial shared loss agreement with the FDIC, and $1.2 million in an Other Than Temporary Impairment (OTTI) related to a $11.0 million Puerto Rico Industrial Development Company (PRIDCO) bond.
  
  
  • $19.9 million in tax benefits primarily resulting from the 4Q15 loss.
  
  
  
  


• Adjusted for the above listed factors, OFG earned $9.1 million, or $0.21 per share fully diluted, assuming an effective tax rate of 33%.*

OFG Bancorp, a financial holding company, provides various banking and financial services primarily in Puerto Rico. It operates in three segments: Banking, Wealth Management, and Treasury. The Banking segment offers checking and savings accounts; mortgage, commercial, and consumer lending products; financial planning, insurance, financial service, and investment brokerage; and corporate and individual trust and retirement services. This segment operates 53 branches in Puerto Rico. The Wealth Management segment offers securities brokerage, trust, retirement planning, insurance, pension administration, and other financial services. Its securities brokerage services cover various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients.