Ynyra Bohan's questions to OFG Bancorp (OFG) leadership • Q4 2024
Question
Ynyra Bohan of Hovde Group asked for guidance on the company's effective tax rate for 2025 and sought clarification on the sustainable run rate for noninterest income, with a specific focus on mortgage banking activities.
Answer
CFO Maritza Arizmendi responded, forecasting a 26% effective tax rate (ETR) for 2025, following a ~24% ETR in 2024 which benefited from activities with preferential tax treatment. Regarding noninterest income, Arizmendi clarified that Q4 mortgage banking results included a positive MSR valuation adjustment and that a sustainable run rate should exclude that item, while also noting the recurring ~$1 million quarterly contribution from a recent MSR portfolio acquisition.