-1.52%
0.92%
6.06%
-5.97%
16.15%
54.35%
116.69%

Company Description

OFG Bancorp, a financial holding company, provides a range of banking and financial services.It operates through 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 services; financial planning and insurance services; and corporate and individual trust, and retirement services.


It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs.In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities.Further, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings.


The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI.OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

Market Data

Last Price 42.71
Change Percentage -1.52%
Open 43.49
Previous Close 43.37
Market Cap ( Millions) 1960
Volume 418166
Year High 47.66
Year Low 33.19
M A 50 43.54
M A 200 41.28

Financial Ratios

FCF Yield 12.95%
Dividend Yield 2.34%
ROE 15.69%
Debt / Equity 22.26%
Net Debt / EBIDTA 138.95%
Price To Book 1.51
Price Earnings Ratio 10.23
Price To FCF 7.72
Price To sales 2.41
EV / EBITDA 10.67

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Banking

Expected Growth : 6.5 %

What the company do ?

OFG Bancorp's banking segment provides a range of financial services, including consumer and commercial lending, deposit-taking, and mortgage banking in Puerto Rico and US Virgin Islands.

Why we expect these perspectives ?

OFG Bancorp's 6.5% growth is driven by strong loan growth, fueled by a robust Puerto Rico economy, and strategic expansion into the US mainland. Additionally, the bank's focus on digital transformation, cost savings initiatives, and a solid capital position have contributed to its growth momentum.

Segment nΒ°2 -> Treasury

Expected Growth : 6.8 %

What the company do ?

The Treasury from OFG Bancorp is a department that manages the financial institution's cash, investments, and funding to ensure liquidity and mitigate risk.

Why we expect these perspectives ?

Treasury growth of 6.8% at OFG Bancorp is driven by increasing deposit base, effective asset liability management, and strategic investments in digital banking platforms, resulting in higher fee income and improved operating leverage.

Segment nΒ°3 -> Wealth Management

Expected Growth : 7.2 %

What the company do ?

Wealth Management from OFG Bancorp offers investment and financial planning services to individuals, businesses, and institutions, providing tailored solutions for wealth creation and preservation.

Why we expect these perspectives ?

Wealth Management growth of 7.2% at OFG Bancorp is driven by increasing demand for investment services, strategic partnerships, and expansion into new markets. Additionally, the segment benefits from a strong brand reputation, experienced financial advisors, and a diversified product portfolio, including brokerage, insurance, and retirement planning services.

Ofg Bancorp Products

Product Range What is it ?
Mortgage Loans OFG Bancorp offers a range of mortgage loan options for individuals and families, including fixed-rate and adjustable-rate loans, government-backed loans, and jumbo loans.
Consumer Loans OFG Bancorp provides personal loans, auto loans, and credit cards for individuals, as well as lines of credit for small businesses.
Commercial Loans OFG Bancorp offers commercial loans and lines of credit for businesses, including term loans, construction loans, and asset-based lending.
Deposit Accounts OFG Bancorp offers a range of deposit accounts, including checking and savings accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs).
Investment Services OFG Bancorp provides investment services, including brokerage services, investment advice, and wealth management.
Insurance Services OFG Bancorp offers insurance services, including life insurance, disability insurance, and long-term care insurance.

OFG Bancorp's Porter Forces

The threat of substitutes for OFG Bancorp is medium due to the presence of alternative financial institutions and digital payment platforms.

The bargaining power of customers is low due to the lack of concentration of buyers and the presence of multiple banking options.

The bargaining power of suppliers is low due to the presence of multiple suppliers and the lack of concentration of suppliers.

The threat of new entrants is medium due to the presence of regulatory barriers and the need for significant capital investment to enter the market.

The intensity of rivalry is high due to the presence of multiple competitors and the need to differentiate products and services to attract customers.

Capital Structure

Value
Debt Weight 14.91%
Debt Cost 5.67%
Equity Weight 85.09%
Equity Cost 9.40%
WACC 8.85%
Leverage 17.52%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
IBCP Independent Bank Corporation operates as the bank holding company for Independent Bank that provides various banking services to individuals and businesses. The company offers checking and savings accounts, commercial lending, …
PEBK Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various commercial and consumer banking products and services to individuals and small to …
ORRF Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, …
CHMG Chemung Financial Corporation operates as the holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, …
THFF First Financial Corporation, through its subsidiaries, provides various financial services. It offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. The company also provides commercial loans primarily to …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
42.71$
Current Price
42.71$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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