How did OFG's Q4 earnings surprise investors?

OFG Bancorp's (OFG) Q4 2024 earnings report exceeded investor expectations in terms of EPS, revenue, and share buybacks, reflecting strong financial performance and strategic capital management.

1. **Earnings Per Share (EPS) Surprise**: OFG reported an EPS of $1.09 for Q4 2024, which was a significant upside from the estimated EPS of $0.98. This indicates that the bank's profitability exceeded market expectations, likely due to strong operational efficiency or better-than-anticipated interest income or non-interest income.

2. **Revenue Surprise**: The actual revenue for Q4 2024 was $181.9 million, surpassing the estimated revenue of $176.95 million. This suggests that OFG's core banking operations performed well, potentially driven by higher interest income or strong fee income.

3. **Share Buybacks**: OFG executed share buybacks worth $45.9 million in Q4, enhancing shareholder value and indicating confidence in the company's financial stability and future prospects. This move is likely to be viewed positively by investors, as it can signal a commitment to returning value to shareholders.
4. **Broad-Based Financial Strength**: The company's total interest income for Q4 was $190.2 million, representing a slight increase from the previous quarter. This, combined with the revenue surge, points to a robust loan portfolio and effective interest rate risk management. The bank's core revenue growth reflects its ability to generate income in a competitive market environment.

In summary, OFG's Q4 earnings exceeded investor expectations due to strong EPS and revenue performance, along with significant share buybacks. These factors contribute to a positive market perception and may lead to increased investor confidence in the bank's future growth prospects.