OFG: Growing Loan Originations, Reduced NPAs and Favorable Balance Sheet Moves Help Offset NIM Pressures; Raising Target Price; Upgrading to Outperform Rating.
OFG reported 2Q19 net income to common shareholders of $22.4 million, up 2.3% compared to the $21.8 million posted in 1Q19. On a per share basis, 2Q19 results were $0.43 compared to $0.42 in the prior quarter. Reported 2Q19 results exceeded our $0.41 estimate but matched the $0.43 median Street estimate. Driving the better-than-expected results versus our estimate were a $480 million gain on the sale of MBS during the quarter, offset by a higher-than-expected loan loss provision, and a lower net interest income and non-interest expenses than we anticipated.