OFG Bancorp (NYSE:OFG) Q1 2018 Earnings Conference Call Transcript
Apr 20, 2018 • 10:00 am ET
Good morning. My name is Crystal and I will be your conference operator today. Thank you for joining us for this conference call for OFG Bancorp. Our speakers are Jose Rafael Fernandez, President, Chief Executive Officer and Vice Chairman; Ganesh Kumar, Senior Executive Vice President and Chief Operating Officer; and Maritza Arizmendi, Executive Vice President and Chief Financial Officer.
A presentation accompanies today's remarks. It can be found on the Investor Relations website on the homepage in the What's New Box or on the Webcasts, Presentations and Other Files page. This call may feature certain forward-looking statements about management's goals, plans and expectations. These statements are subject to various risks and uncertainties outlined in the risks factor section of OFG's Securities and Exchange Commission filings. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call, as a result of developments which may occur afterwards. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question-and-answer session.
I'd now like to turn the call over to Mr. Fernandez.
Jose Rafael Fernandez
Good morning. Thank you for joining us today. I will review the quarter's results. Ganesh and Maritza will join us for the Q&A. As we've done in recent calls, we'll focus our prepared remarks on key highlights and then we'll open the call for questions.
Please turn to Slide 3. This morning, we reported strong first quarter results. Earnings were $0.29 per share, that is similar to fourth quarter and 12% higher than a year ago. We experienced strong performance across the board. Net loans grew 8% on an annualized basis from the last quarter. New loan generation was more than $300 million in the quarter. Customer deposits increased 2% from December 31st, and net interest margin expanded 14 basis points.
Credit also performed well. Nearly all of our loan moratoriums expired during the quarter. Most of our credit metrics were better than or returned to, pre-hurricanes levels. Our strong capital position continue to build. Tangible book value per common share increased 2.5% year-over-year to $15.71. Total risk-based capital ratio continue to exceed 20%.
Please turn to Slide 4. Our first quarter results reflected both the success of our strategies and Puerto Rico's emerging recovery. Today marks seven months since Maria hit the island. Puerto Rico is now benefiting from a wide variety of factors, loan payment moratoriums by Oriental and other banks, increased availability of electric power, improvement in communications, all of which has led to return of day-to-day stability. In addition, the island is benefiting from rebuild spending by FEMA, the start of payments of insurance claims, and the prospect of a growing amount of federal funds. This has enabled OFG to return to our performance prior to the hurricanes and is setting the stage for potential future growth.
Please turn to Slide 5. Nearly every metric in the first quarter confirmed our progress. For the second quarter in a row,