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SAN JUAN - OFG Bancorp (NYSE:OFG), a diversified financial holding company, has declared a regular quarterly cash dividend of $0.25 per common share for the quarter ending December 31, 2024. Shareholders on record as of December 31, 2024, will be eligible for the dividend payment scheduled for January 15, 2025.
This announcement marks a consistent shareholder return policy by the company, which is currently celebrating its 60th year in operation. OFG Bancorp's business includes a range of financial services such as retail and commercial banking, lending, and wealth management, mainly focused on the markets of Puerto Rico and the U.S. Virgin Islands.
The declaration of the dividend follows the company's established schedule, with the ex-dividend date also set for December 31, 2024. This means that investors who purchase OFG Bancorp shares before this date will be entitled to receive the dividend.
OFG Bancorp's subsidiaries, which include Oriental Bank, Oriental Financial Services, and Oriental Insurance, offer various banking and financial products and services, aiming to facilitate progress for their customers, employees, shareholders, and the communities they serve.
The company's commitment to its mission and stakeholders remains central to its operations, as it continues to provide a robust financial platform in its service regions.
This dividend distribution reflects OFG Bancorp's financial health and its ability to generate sufficient cash flow to return capital to its shareholders. It is a signal of the company's stability and confidence in its financial position.
As a matter of transparency, this information is based on a press release statement from OFG Bancorp. Investors and the market at large often view such dividend announcements as an indicator of a company's performance and its management's outlook on future earnings.
OFG Bancorp's shares trade on the New York Stock Exchange, and this dividend declaration is part of the company's regular financial reporting and shareholder communication.
In other recent news, OFG Bancorp reported a 5.3% year-over-year increase in earnings per share to $1.00 for the third quarter of 2024. The company's core revenues reached a commendable $174.1 million, and its total assets saw a growth of 12% to $11.5 billion. The bank's new loan production reached $572 million, with 95% of retail transactions conducted digitally. OFG Bancorp also acquired a servicing portfolio, expected to generate approximately $900,000 in quarterly mortgage banking fees.
Piper Sandler has maintained its Overweight rating on OFG Bancorp, despite the company's third-quarter earnings not meeting expectations. The firm anticipates only a slight adjustment to its projections, citing a smaller net interest margin being largely counterbalanced by an expanded balance sheet. OFG Bancorp's management remains optimistic about the Puerto Rican economy and has expressed confidence in loan growth.
Looking ahead, OFG Bancorp anticipates two additional Federal Reserve rate cuts and continued loan growth, particularly in Puerto Rico and the U.S. The net interest margin for the fourth quarter is projected between 5.3% and 5.4%, and non-interest expenses are expected to range from $91 million to $93 million. These are all recent developments that investors should keep an eye on.
InvestingPro Insights
OFG Bancorp's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 2.57% and has impressively maintained dividend payments for 33 consecutive years. This consistency underscores OFG's commitment to shareholder value, which is further reinforced by an InvestingPro Tip highlighting that the company has raised its dividend for three consecutive years.
The bank's financial health appears robust, with a P/E ratio of 9.41, suggesting it may be undervalued compared to its peers. This valuation metric, combined with OFG's profitability over the last twelve months and analysts' predictions of continued profitability this year, paints a picture of a stable financial institution.
However, investors should note that OFG's stock price has fallen significantly over the last three months, which could present a potential entry point for those bullish on the company's long-term prospects. This recent price movement is particularly interesting given the bank's strong return over the last five years, as noted in another InvestingPro Tip.
For a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable for investors considering OFG Bancorp's stock. The platform provides a total of 9 tips for OFG, which can offer a deeper understanding of the company's financial position and market performance.
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