OFG Bancorp Upped to Strong Buy
On Aug 3, 2013, Zacks Investment Research upgraded OFG Bancorp (OFG) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
OFG Bancorp has been witnessing rising earnings estimates on the back of strong second-quarter results. Moreover, the company has an expected long-term earnings growth rate of 8.00%.
On Jul 22, 2013, OFG Bancorp reported second-quarter earnings of 68 cents per share, significantly surpassing the Zacks Consensus Estimate as well as the prior-quarter earnings of 37 cents.
The sequential improvement was driven by top-line growth, partially offset by higher operating expenses. Moreover, asset quality and capital ratios showed improvement.
OFG Bancorp’s total revenue came in at $113.2 million, up 9.1% from $103.7 in the prior quarter. However, total expenses increased 3.7% to $63.5 million.
Moreover, OFG Bancorp’s asset quality showed an improvement in the reported quarter. Non-performing loans stood at $88.5 million as of Jun 30, 2013 compared with $130.5 million as of Mar 31, 2013. Allowance for loans and lease losses as a percentage of loans held for investments was 2.57% as of Jun 30, 2013 compared with 2.89% as of Mar 31, 2013.
Capital ratios also showed improvement. As of Jun 30, 2013, Tier 1 common ratio stood at 9.85% compared with 9.20% as of Mar 31, 2013. Tier 1 risk-based capital ratio was 13.79% as of Jun 30, 2013 compared with 13.01% as of Mar 31, 2013. Total risk-based capital ratio stood at 15.83% as of Jun 30, 2013 compared with 15.03% as of Mar 31, 2013.
Over the last 30 days, the Zacks Consensus Estimate for 2013 went up by 21.4% to $1.87 per share. However, for 2014, the Zacks Consensus Estimate remained stable at $1.97 per share over the same time frame.
Other Stocks to Consider
Other stocks that are also worth considering with a Zacks Rank #1 (Strong Buy) include CNB Financial Corp. (CCNE), Eagle Bancorp, Inc. (EGBN) and Metro Bancorp, Inc. (METR).
Read the Full Research Report on OFG
Read the Full Research Report on EGBN
Read the Full Research Report on METR
Read the Full Research Report on CCNE
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