TSX runs higher on rate cut expectations
In a recent shareholder meeting, OFG Bancorp (NYSE:OFG), a commercial bank based in Puerto Rico with a market capitalization of $1.85 billion and an impressive return on equity of 15%, presented several key proposals for voting, as detailed in an 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the bank currently appears slightly overvalued based on its Fair Value assessment. The annual meeting took place on April 30, 2025, where shareholders elected directors, approved executive compensation, and ratified the appointment of an independent accounting firm.
The election of directors resulted in all nominees from the proxy statement being elected to serve a one-year term. The detailed voting outcomes for each nominee showed a significant majority in favor, with a relatively small number of votes withheld and no broker non-votes influencing the outcome.
Shareholders also cast their votes on the advisory proposal regarding executive compensation, which was described in the proxy statement. A majority approved the compensation of the company’s named executive officers. The vote count revealed a substantial number of votes for the proposal, with fewer against and some abstentions.
Additionally, the selection of KPMG LLP as OFG Bancorp’s independent registered public accountants for the fiscal year ending December 31, 2025, was ratified by the shareholders. The approval saw an overwhelming number of votes in favor, with some votes against and a few abstentions.
The voting results reflect shareholder confidence in the company’s leadership and financial oversight practices, supported by the bank’s strong financial health score of "GREAT" according to InvestingPro metrics. The 8-K filing confirms that all proposals presented at the annual meeting were passed as recommended by the board of directors. This information is based on the press release statement provided by OFG Bancorp, which currently trades at a P/E ratio of 9.73.
In other recent news, OFG Bancorp reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.00, compared to the forecasted $0.96. The company’s revenue also exceeded projections, reaching $178.3 million against a forecast of $174.72 million. Additionally, OFG Bancorp’s long-term issuer credit rating was upgraded by S&P Global Ratings from ’B+’ to ’BB-’, reflecting its steady performance and stable outlook. The bank’s operating subsidiary, Oriental Bank, also saw its rating increased from ’BB’ to ’BB+’. Furthermore, OFG Bancorp declared a regular quarterly cash dividend of $0.30 per common share for the quarter ending June 30, 2025.
In other developments, OFG Bancorp authorized a new $100 million stock repurchase plan, adding to its existing buyback program. The company did not specify a timeline for the repurchases. Meanwhile, Keefe, Bruyette & Woods adjusted their outlook on OFG Bancorp, reducing the price target to $48.00 from $53.00, yet maintaining an Outperform rating due to the bank’s robust profitability and solid capital foundation. These updates come as OFG Bancorp continues to demonstrate strong financial metrics, including a return on tangible common equity of 15% and a common equity Tier 1 ratio of 14%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.