OFG Bancorp Announces New $50 Million Share Repurchase Plan

Rhea-AI Summary

OFG Bancorp (NYSE: OFG) has announced that its Board of Directors has approved a new $50 million stock repurchase authorization plan. This open-ended plan is supplementary to the company's previously authorized stock repurchase program and is part of OFG's broader capital actions strategy.

Positive

• New $50 million share repurchase authorization indicates strong financial position
• Additional buyback program suggests confidence in company value
• Open-ended timeline provides flexibility in execution

Negative

• Capital expenditure of $50 million reduces cash available for other investments
• Share repurchase may limit funds available for business expansion

Insights

Financial Analyst

The new $50 million share repurchase program is a significant capital return initiative that signals management's confidence in OFG Bancorp's financial health and future prospects. This open-ended authorization provides flexibility in timing and execution, enabling the bank to opportunistically buy back shares when valuations are attractive.

Share repurchases typically support stock price by reducing the number of outstanding shares, which can increase earnings per share and return on equity metrics. For OFG, with its current market cap of about $1.8 billion, this program represents approximately 2.7% of market value - a meaningful size that could provide substantial support for shareholders.

The fact that this comes as an addition to an existing buyback program, rather than a replacement, demonstrates strong capital position and commitment to shareholder returns. For regional banks, maintaining robust capital return programs while meeting regulatory requirements indicates sound balance sheet management.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)-- OFG Bancorp (NYSE: OFG) today announced its Board of Directors approved a new $50 million stock repurchase authorization plan as part of OFG’s capital actions. The new plan, which is open-ended, is in addition to the previously authorized stock repurchase plan.

About OFG Bancorp

Now in its 60^th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services, and technology, primarily in Puerto Rico and U.S. Virgin Islands. Our mission is to make progress possible for our customers, employees, shareholders, and the communities we serve. Visit us at www.ofgbancorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241025133718/en/

Puerto Rico & USVI: Lumarie Vega López (lumarie.vega@orientalbank.com) and Victoria Maldonado Rodríguez (victoria.maldonado@orientalbank.com) at (787) 771-6800

US: Gary Fishman (gfishman@ofgbancorp.com) and Steven Anreder (sanreder@ofgbancorp.com) at (212) 532-3232

Source: OFG Bancorp

FAQ

What is the size of OFG Bancorp's new share repurchase plan announced in 2024?

OFG Bancorp announced a new $50 million share repurchase authorization plan.

Is there a time limit on OFG's new $50 million share repurchase plan?

No, the new $50 million share repurchase plan is open-ended with no specified time limit.

Does OFG's new buyback plan replace their previous repurchase authorization?

No, the new $50 million repurchase plan is in addition to the previously authorized stock repurchase plan.

Who approved OFG Bancorp's new share repurchase plan?

OFG Bancorp's Board of Directors approved the new $50 million stock repurchase authorization plan.